FTA Stealing the Limelight!
In recent past, we witnessed some violent protests in Seattle in 1999, Cancun in 2003 and Hong Kong in 2005. These protests were largely intended to prevent the world to push the liberal trade and economic agenda through the WTO (World Trade Organisation). Now, it seems that FTA (free trade agreements) negotiations have occupied the centre stage. This is not only in developing countries but in developed countries as well. Recent protests in South Korea over the import of US beef and the US Presidential hopeful Obama’s threat to renegotiate NAFTA if he gets elected are pointers to this. In India too concerns are being raised more on ongoing negotiations of the EU-India FTA as compared to the Doha Round of trade negotiations by the WTO Members.
Today, FTAs do not necessarily mean reduction in tariffs; issues relating to deep and comprehensive economic cooperation between and among countries are being discussed and agreed upon. All FTAs are WTO plus. Any shallow agreement focusing only on cross border reduction of tariffs hardly makes any sense when tariffs are being reduced on MFN (Most Favoured Nation) basis as per the WTO rules. Secondly, the US and now the EU are on FTA signing spree with developing countries. It is because of these reasons countries are more concerned about analyzing the impact of FTAs on their domestic economy rather than focusing more on the implications of the Doha agreement in future. Continued deadlock in the Doha Round of negotiations by the WTO Membrs has resulted in a significant dilution of ambitious trade liberalisation agenda as originally envisaged in 2001. In contrast, countries’ expectations from FTAs are increasing continuously.
Pranav Kumar, Policy Analyst, CUTS (June 20, 2008)
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