the multiple challenges in asian ftas ideas-gsei-itd asian regional workshop on ftas: towards...
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The Multiple Challenges
in Asian FTAs
IDEAs-GSEI-ITDAsian Regional Workshop on FTAs: Towards inclusive trade policies in post-crisis Asia8-9 December 2009Bangkok
Dr. Mia MikicTrade Policy SectionTrade and Investment Division
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Presentation Outline
Regionalism in Asia-PacificStatus
Main characteristics
ConcernsNational level
Regional level
Management of ‘noodle bowl”
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Status of Regionalism in Asia-PacificStatus of Regionalism in Asia-Pacific
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Singapore
Sri Sri LankaLanka
Bangladesh
IndiaRep. of KoreaLao
PDR
Thailand
Australia
Papua New
Guinea
Source: APTIAD, April 2008,
Bangkok Agreement
ASEAN
1977
Philippines
PATCRA
Malaysia
Indonesia
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Bhutan
Sri Sri LankaLanka
Maldives
Bangladesh
IndiaChina
New Zealand
Brunei Darussala
m
CambodiaIndonesi
a
Lao PDR
Myanmar
Philippines
Viet Nam
Nepal
Marshall Is. Micronesia
Palau
Tuvalu
Cook Is. Fiji Kiribati
Nauru Niue
Samoa Tonga
VanuatuSolomon
Is.
Australia
Singapore
Papua New
Guinea
USA
Chile
Japan
Hong Kong, China
Iran, Is. Rep.
Jordan
Bahrain
EU
Turkey
Afghanistan
© APTIAD, June 2009,
not all PTAs shown
Niger
GCC
MexicoPanama
Peru
Qatar
Canada
Georgia
Kyrgyzstan
Armenia
Kazakhstan
Ukraine
AzerbaijanTurkmenistan
Uzbekistan
Tajikistan
CISFTA
SAFTA
BIMSTEC
APTA
AFTA
EFTA
PICTA
SPARTECA
MSG
EurAsEC
NAFTA
MERCOSURSACU
Pakistan
Thailand
Malaysia
2009 ECOTA
Korea,
Rep.of.
Macao, China
Russian
Fed.BelarusMoldova
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RTAs explosion in Asia-Pacific
Asia-Pacific
0
2
4
6
8
10
12
14
16
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
PT
As
per
yea
r
0
20
40
60
80
100
120
140
Cu
mu
lati
ve
PTAs
Under Negotiation
Cumulative
Interest of countries in Asia-Pacific to negotiate had one peak in mid 1990s and then started to rise exponentially after 2002
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…increase in number of RTA in Asia-Pacific is in line with the global trend
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Characteristics of RTAs in Asia-PacificCharacteristics of RTAs in Asia-Pacific
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Architecture of Asia-Pacific RTAs
Notes: * “FTA & EIA” stands for Free Trade Agreement and Economic Integration Agreement- a category of agreements that are notified both under goods and services; * * includes six agreements between Central Asian countries and members of CIS not in ESCAP Source: Compiled from APTIAD, August 2009
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Number and make up of memberships:
• Only one Asian WTO Member (Mongolia) has no RTAs (as yet!)
•Asia-Pacific non-WTO members: from 1 to 11 RTAs
• Average per ESCAP 6 RTAs in implementation per economy, minimum=0 RTA, maximum= 22 RTA
•Often partners from outside the region
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RTA NTMs Investment
Services Competition
IPR TF
ASEAN-Australia-New Zealand FTA (AANZFTA)
-***
ANZCERTA1 * - Separate
Separate
- Separate
APTA2 - In progress In progress - - In progress
ASEAN (AFTA)2 Separate
Separate
ASEAN-China PTA2 -** -** Separate
- -*** -
BIMSTEC-FTA -** -** -** - - -**
India-Singapore BTA1 -***
PICTA - - - -***
SAFTA - -** - -** - -**
TRANS-PACIFIC SEP1 In progress
COVERAGE of areas
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Difference between RTAs in terms of coverage:
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
Competition Environment Investment Tradefacilitiation
Services IPR Procurement
% o
f ag
reem
ents
BTA RTA C-BSingapore issues
bilateral and country-bloc cover more sectors
NBTA=66NRTA=11NC-B=14
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Volume of trade covered
As shares of exports to PTA partners in total country’s exports
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Concerns - at national levels:
Disconnect in pursuit of trade liberalization through multilateral trade system and RTAs:
Policy space (investment, competition, services, IPRs, etc) Market access BUT restrictive Rules of Origin
Weak institutional dimensions- Consultative processes during negotiations- Monitoring and evaluation of implementation (no
appropriate bodies – joint committees but not always functioning well)
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Other concerns
Trade in Asia-Pacific has been more market-driven (growth-driven?) than PTA-driven: sustainability?Forging agreements with partners outside the region kept Asia as a relatively open bloc: helping global economy?RTAs in Asia not “economic integration”: weak regional institutions and lack of incentives for convergence?Given changes in global economy, is there a need / possibility for stronger regional trade governance / integration?
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Managing the “noodle bowl”Managing the “noodle bowl”
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Towards multilateralization of RTAs?
Global – WTO and rules for ensuring that RTAs are “building blocks”Regional – consolidation /enlargement of RTAs:
impact on members vis-à-vis non-members sectoral impacts
National – inclusive decision making for growth with more balanced effects (“Trade needs to be governed to produce benefits to all.” )
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Features of the ‘model’ FTA taking into account rules and needs of developing countries
GOODS SERVICES OTHERS
trade in goods, including trade remedies (safeguards, anti-dumping measures and countervailing duties)
customs procedures rules of origin technical barriers to trade sanitary and
phytosanitary measures
trade in services, and in particular:
o trade in financial serviceso trade in
telecommunications services
commercial presence movement of natural
persons
intellectual property competition policy government procurement trade facilitation investment
electronic commerce
transparent administration of laws and regulations consultations and dispute settlement and legal and institutional issues