1

REGIONAL TRADE AGREEMENTS(RTAs)

INTRODUCTION

2

RTAs

• GATT rules on Regional Trade Agreements, as laid down in GATT Article XXIV and clarified in the Understanding on the provision, permit departures from the Most-Favoured Nation treatment as they allow parties to an RTA (involving developed countries) to grant each other trade preferences without multilateralising concessions.

3

RTAs

NORTH ATLANTIC FREE TRADE AREA(NAFTA)PREAMBLE

The Government of Canada, the Government of the United Mexican States and the Government of the United States of America, resolved to: • STRENGTHEN the special bonds of friendship and cooperation

among their nations; • CONTRIBUTE to the harmonious development and expansion of

world trade and provide a catalyst to broader international cooperation;

• CREATE an expanded and secure market for the goods and services produced in their territories;

• REDUCE distortions to trade;

RTAs

4

5

NAFTA

• ESTABLISH clear and mutually advantageous rules governing their trade;

• ENSURE a predictable commercial framework for business planning and investment;

• BUILD on their respective rights and obligations under the General Agreement on Tariffs and Trade and other multilateral and bilateral instruments of cooperation;

• ENHANCE the competitiveness of their firms in global markets;

• FOSTER creativity and innovation, and promote trade in goods and services that are the subject of intellectual property rights;

6

NAFTA

• CREATE new employment opportunities and improve working conditions and living standards in their respective territories;

• UNDERTAKE each of the preceding in a manner consistent with environmental protection and conservation;

• PRESERVE their flexibility to safeguard the public welfare;

• PROMOTE sustainable development; • STRENGTHEN the development and enforcement of

environmental laws and regulations; and • PROTECT, enhance and enforce basic workers' rights;

7

RTAs

Objectives

a) eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of the Parties;

b) promote conditions of fair competition in the free trade area;

c) increase substantially investment opportunities in the territories of the Parties;

8

RTAs

d) provide adequate and effective protection and enforcement of intellectual property rights in each Party's territory;

e) create effective procedures for the implementation and application of this Agreement, for its joint administration and for the resolution of disputes; and

f) establish a framework for further trilateral, regional and multilateral cooperation to expand and enhance the benefits of this Agreement.

9

RTAs

The Association of Southeast Asian Nations, or ASEAN

primary goal:

• to support sustainable economic growth and prosperity in the Asia-Pacific region,

• to build a dynamic and harmonious Asia-Pacific community by championing free and open trade and investment,

• promoting and accelerating regional economic integration

10

RTAs

• encouraging economic and technical cooperation,

• enhancing human security, and facilitating a favorable and sustainable business environment.

• turn policy goals into concrete results and agreements into tangible benefits.

11

RTAs

Achievements and Benefits

1.Since APEC's inception in 1989, APEC's total trade has grown 395%, significantly outpacing the rest of the world.

2. In the same period, GDP (in purchasing power parity terms) in the APEC region has tripled, while GDP in the rest of the world has less than doubled.

12

RTAs

Three main pillars of activity:

• Trade and Investment Liberalization, • Business Facilitation and • Economic and Technical Cooperation,

has helped drive this economic growth and improve employment opportunities and standards of living for the citizens of the region.

13

RTAs

Trade and Investment Liberalisation

• When APEC was established in 1989 average trade barriers in the region stood at 16.9%; by 2004 barriers had been reduced by approximately 70% to 5.5%.

14

RTAs

• Intra-APEC merchandise trade (exports and imports) has grown from US$1.7 trillion in 1989 to US$8.44 trillion in 2007 - an average increase of 8.5% per year; and merchandise trade within the region accounted for 67% of APEC's total merchandise trade in 2007.

15

RTAs

• Trade with the rest of the world has increased from US$3 trillion in 1989 to US$15 trillion in 2007, an average increase of 8.3% per year.

16

RTAs

• Trade in the rest of the world has increased at 7.6% over the same period.

• Over 30 bilateral free trade agreements (FTAs) have been concluded between APEC Member Economies.

17

RTAs

MEMBER COUNTRIESAustralia, Brunei Darussalam, Canada, Chile, People's Republic of China, Hong Kong, China, Indonesia, Japan , Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, The Philippines, Russia, Singapore, Chinese Taipei, Thailand, The United States, Viet Nam

18

RTAs

ESTABLISHMENT • The Association of Southeast Asian

Nations, or ASEAN, was established on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand.

19

RTAs

• Brunei Darussalam then joined on 8 January 1984, Viet Nam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999, making up what is today the ten Member States of ASEAN.

20

RTAs

AIMS AND PURPOSES• As set out in the ASEAN Declaration, the aims

and purposes of ASEAN are:• To accelerate the economic growth, social

progress and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian Nations;

21

RTAs

• To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries of the region and adherence to the principles of the United Nations Charter;

23

RTAs

• To collaborate more effectively for the greater utilisation of their agriculture and industries, the expansion of their trade, including the study of the problems of international commodity trade, the improvement of their transportation and communications facilities and the raising of the living standards of their peoples;

24

RTAs

• To promote Southeast Asian studies; and

• To maintain close and beneficial cooperation with existing international and regional organisations with similar aims and purposes, and explore all avenues for even closer cooperation among themselves.

25

RTAs

FUNDAMENTAL PRINCIPLES• In their relations with one another, the ASEAN

Member States have adopted the following fundamental principles, as contained in the Treaty of Amity and Cooperation in Southeast Asia (TAC) of 1976:

• Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations;

26

RTAs

• The right of every State to lead its national existence free from external interference, subversion or coercion;

• Non-interference in the internal affairs of one another;

• Settlement of differences or disputes by peaceful manner;

27

RTAs

• Renunciation of the threat or use of force; and

• Effective cooperation among themselves.

28

RTAs

BIMSTEC

• is bay of Bengal Initiative for Multi -Sectoral Technical Economic Cooperation.

• seven members; namely Bangladesh, India, Myanmar, Sri Lanka, Thailand, Nepal and Bhutan was formed in June, 1997 with four members- Bangladesh, India, Sri Lanka and Thailand.

29

RTAs

• Later, in November 1997, Myanmar was included as a member and in 2003 both Nepal and Bhutan were granted membership in the forum.

30

RTAs

Primary objectives of BIMSTEC

• To create an enabling environment for rapid economic development,

• To accelerate social progress in the sub-region, • To promote active collaboration and mutual

assistance on matters of common interest, • To provide assistance to each other in the form

of training and research facilities,

31

RTAs

• To cooperate more effectively in joint efforts that are supportive of,

• To complementary to national development plans of member states,

• To maintain close and beneficial cooperation with existing international and regional organizations, and

• To cooperate in projects that can be dealt with most productively on a sub-regional basis and which make best use of available synergies

32

BIMSTEC had two Summits: • The first one was held in Thailand in 2004 and • The second Summit was organized in New Delhi

in 2008.

It has identified fourteen priority areas where all

the member countries would cooperate with each

other;

33

RTAs

These areas are as follows:• Trade and Investment• Transport and Communication• Energy• Tourism• Technology• Fisheries• Agriculture• Public Health• Poverty Alleviation

34

• Counter Terrorism and trans-National Crime Protection of Bio-Diversities/Environment and Natural Disaster Management

• Culture

• People-to-people contact

• Climate Change

35

• BIMSTEC countries have signed a Framework

Agreement on Free Trade Area (BIMSTEC FTA)

which aims to create a free trade area within

BIMSTEC region by 2017 as a whole.

36

FTAs

• In December, 2009, Foreign Ministers of all the member countries have signed the Convention on Cooperation in Combating International Terrorism, Trans-National Organised Crime and Illicit Drug Trafficking.

37

• BIMSTEC is one of the youngest regional

sub-groupings in the region and it has

potentials to clear many dark clouds from

the regional sky.

38

RTAs

• It has emerged in 1997 and this is 2010,

hence, the governments of the member

countries should not forget their promises

and expectations of the people.