Introduction and objectives

Transcription

1 Training-workshop on Enhancing the Contribution of Preferential Trade Agreements to Inclusive and Equitable Trade Mauritius, 4-6 November 2015 Introduction and objectives Simon Mevel (ECA)

2 UN-wide Project Project title: Enhancing the Contribution of Preferential Trade Agreements to Inclusive and Equitable Trade Jointly implemented by 3 UN Regional Commissions: Economic and Social Commission for Asia and the Pacific (ESCAP) Economic Commission for Africa (ECA) Economic Commission for Latin America and the Caribbean (ECLAC) With involvement of the United Nations Conference on Trade and Development (UNCTAD)

3 Important Concepts/Definitions Broad definition of Preferential Trade Agreements (PTAs) is used for this Project In that sense, Preferential Trade Agreements are: Agreements between two or more countries giving reciprocal preferential market access to each other on all or some products and services; reciprocity can be partial or full Synonymous with Regional Trade Agreements (RTAs) that are reciprocal trade agreements between two or more partners (WTO definition) Therefore, PTAs/RTAs include: free trade areas (FTAs), customs union, and other economic integration agreements (e.g. Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), Association of Southeast Asian Nations (ASEAN), Economic Partnership Agreements (EPAs), East African Community (EAC), etc.)

4 Important Concepts/Definitions Preferential Trade Agreements should not be confounded with Preferential Trade ARRANGEMENTS: Although both have the same acronym, Preferential Trade ARRANGEMENTS refer to strictly unilateral trade preferences (WTO definition) (e.g. Generalized System of Preferences (GSP), Everything but Arms (EBA) initiative, African Growth and Opportunity Act (AGOA), South Pacific Regional Trade and Cooperation Agreement, etc.) As opposed to Preferential Trade Agreements, Preferential Trade ARRANGEMENTS are non-reciprocal, not negotiated, and therefore outside the scope of this Project

5 Evolution of PTAs/RTAs PTAs and RTAs are against the principle of most-favoured nation (MFN) non-discriminatory treatment but have been tolerated by the WTO either through: Waivers (e.g. AGOA: not strictly based on development criteria and needs a waiver from WTO to operate), Enabling clause (i.e. PTAs between developing countries), Exceptions (e.g. FTAs, Customs Union and economic integration agreements). Since early 1990s, PTAs and RTAs have proliferated: Repeated blockages, variable negotiation powers and mitigated expected gains from the multilateral trading system have led countries to explore alternative routes to expend their trade (i.e. increased regionalism)

6 Evolution of PTAs/RTAs

7 Opportunities and challenges Multiplication of PTAs and RTAs can be explained by the fact that trade is seen as a viable channel to positively influence development With expected positive direct and indirect benefits on population (e.g. increased employment, higher incomes, poverty reduction, etc.) Although there is controversy about the causality between trade and economic growth, it is generally agreed that both are closely related Historically, few countries have grown without experiencing large trade expansion

8 Opportunities and challenges Evolution of growth rates of world merchandise trade and world GDP % Trade World GDP World Source: Author s calculation based on UNCTADStat (accessed on 22/10/2015) Periods with higher/lower GDP growth rates tend to correspond to high/low picks for merchandise trade growth rates

9 Opportunities and challenges However, economic growth response to trade reforms tends to vary greatly across countries For example, primary-export-led growth strongly depending on volatile commodity prices cannot be as sustainable as growth largely driven by exports of higher value-added content In average over the period (UNCATDStat), more than 70% of total exports from Africa to the World were just fuels, ores and other precious pearls and metals Also often unequal distribution of the gains from trade within a country (i.e. not everyone in the population benefits equally from trade)

10 Opportunities and challenges Developing countries (especially LDCs) often cannot get full benefits associated with trade expansion due to many challenges they face, such as: Inadequate productive capacities, Limited access to finance, High cost to trade across borders, Difficulties to comply with norms, standards and other rules and regulations (e.g. sanitary and phytosanitary measures, rules of origin, etc.), Growing informal sector employing significant share or women and youth often under precarious conditions, Lack of capacity and coordination to effectively design and/or negotiate trade agreements, etc Thereby, potential positive impacts of PTAs/RTAs often remain unrealized

11 Objectives of the Project Enhancing knowledge and capacities of the Project beneficiaries in the following three main areas: 1) Economic impacts of trade agreements, 2) Social impacts of trade agreements, 3) Preparing for and conducting trade negotiations at bilateral and multilateral levels.

12 Key Activities of the Project In each of the 3 regions where UN Regional Commissions involved in this Project operate, and on the same thematic Enhancing the Contribution of Preferential Trade Agreements to Inclusive and Equitable Trade are being organized: 2 training-workshops For the Africa region: Joint ECA-IORA regional training-workshop in Mauritius (4-6 November 2015 in Ebene) Joint ECA-Burkina Faso s Ministry of Trade national training-workshop (scheduled for January 2016 in Ouagadougou) 1 regional dialogue For the Africa region: Objective to share key learning from training-workshop activities with the whole region (first half 2016 to be tentatively held in Addis Ababa, Ethiopia)

13 Key Activities of the Project Creation of a knowledge-sharing platform: Providing a permanent repository of materials and guidance (e.g. all materials from the different activities in the three regions under this Project to be made available; indicators and dataset to be created to enable member States to tracking performance of PTAs/RTAs with respect to their effectiveness in stimulating jobs and inclusiveness {to be made freely available through ESCAP website}) Allowing the ongoing exchange of knowledge and expertise, both among countries and with a dedicated group of experts

14 ECA-IORA Training-Workshop A LITTLE OF THEORY AND DATA ABOUT TRADE AGREEMENTS Sessions 1 The theory of preferential/regional trade agreements from a and 2 theoretical perspective: historical evolution and recent trends BETTER TAKING ADVANTAGE OF POTENTIALS THAT TRADE AGREEMENTS HAVE TO OFFER Session 3 Key trade agreements and the importance of their sequencing for industrialization (focus on Africa) Session 4 Trade agreements from a business perspective

15 ECA-IORA Training-Workshop BETTER UNDERSTANDING SOCIAL IMPLICATIONS OF TRADE AGREEMENTS Session 5 Making PTAs inclusive and gender sensitive Session 6 PTAs/RTAs beyond the WTO framework (human rights, inclusiveness, etc.) TRADE NEGOTIATIONS Session 7 WTO: rules for PTAs/RTAs and negotiations Session 8 Trade negotiations Country experiences

16 Getting to know each other Going briefly around the table

17 Thank you very much for your kind attention! Website: