FOCUS GLOBAL SOUTH OCCASIONAL PAPER - JULY Asia and the Mega Free Trade

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1 ON THE FOCUS GLOBAL SOUTH OCCASIONAL PAPER - JULY 2017 Asia and the Mega Free Trade Agreements by Joseph Purugganan Very few people know about them, but new generation free trade agreements have become powerful instruments in shaping how development is pursued in the 21st Century. And rapidly growing Asia has become a major hub of FTA engagements. On May 10, 2017, more than 30 members of civil society and sectoral groups converged inside the Philippine International Convention Center (PICC) in Manila to participate in the Regional Comprehensive Economic Partnership (RCEP) Stakeholder Engagement a dialogue with trade negotiators from the 16 RCEP negotiating countries. The meeting, which ran for almost three hours, was an opportunity for civil society organizations (CSOs) to air not just concerns, but their collective opposition to RCEP. The fear from civil society is that the highly ambitious trade and investment agreement will impact negatively on jobs and people s livelihoods, on health services and access to affordable medicines, on farmers rights to seeds, and on small fishers access to marine resources. Concerns were also raised on broader issues like investments and the threats to public policies and regulations from the investor-state-dispute-settlement provisions in RCEP. THE RISE OF MEGA FTAs What trade campaigners are up against is a whole landscape of so-called mega regional trade and investment agreements. All the major trade powers- the United States, the European Union, China, and Japan- are aggressively pushing these deals to secure their respective economic and political interests. Over the past couple of years however, negotiations for these big trade deals have been faltering, prompting one analyst to declare that the era of the big trade deal is certainly in hibernation. The question now is whether it is dead altogether. 1 The difficulties in seeing these negotiations through can be attributed to a combination of factors. There is the complexity of the trade deals themselves covering so many chapters, and dealing with varying sets of rules,

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6 lk h CNq3cjL3Njhja3jC3chj@jh<Cq3hcn,@hURs3ahjRh,RaURajCRNcYhBNhj@3h7R,nchCNj3aq3NjCRN.hs3hÔ,RLL3N030hj@3h388RajchR8h 8RahURIC,whcU,3hN,@Ra30hRNhj@3h<Rq3aNL3Njc jgcn<hhlra3h$in,30hn0h,njcrnchuuar,@hjrsa0chja03hn0hcnq3cjl3njhja3jc3cdhn0hj@jhun$ic,huric,c3cha3h l: hn3shuarurcihrnhbb/bh@chuua3njiwh$33nhj$i30h$whbn0rn3cchn0hj@3ht@cicuucn3c.hn0hj@cchuarurcih@ch$33nh,cj30hchh8,jrah,nccn<h8naj@3ah03iwchcnhj@3h`+2thjigcyh,,ra0cn<hjrhcncc03ac.hj@3huarurcihjrn,@3chrnhj@3h,rnc3njhuarqcccrnhn0hcchn,@ra30hrnhj@3hc03hj@jhcnq3cjrachlncjhc33ghj@3h,rnc3njhr8hbjj3chjrhnwhbb/bh,c3h cn$lccccrnhr8hh,iclhnn03ahj@3hb+bb/h+rnq3njcrnhn0hj@3hb+bb/h`ni3chr8htar,30na3h8raha$cjajcrnhtar,330cn<ch acc3cyõh BEYOND THE TEXT UC,jna3hN0hc33h@Rshj@3c3h03Ich8CjhCNjRhs@jhLNwh@q3ha383aa30hjRhchj@3hlScjh+3Njnawhja03hN0hCNq3cjL3Njh a3<cl3yhl9 +RNN3,jCqCjwh isrh$c<ha3<crnih$ir,c.hj@3hccht,c8c,h2,rnrlc,h ar0hn0hjancurajjcrnhn3jsragchchs3iihch$c<h3n3a<wdhcncjcjnjcrnih,rnn3,jcqcjwhcnqriqcn<hcjan,jnaiha38ralc.h U3RUI3h,RNN3,jCqCjwhs@C,@hCN,In03ch<3N0hRNhjRnaCcLh03q3IRUL3Nj.hI$RahLR$CICjw.hcjn03Njh3u,@N<3chLRN<h +RNN3,jCqCjwhnN03aICN3chchs3IIhj@3h#3IjhN0h`R0hBNCjCjCq3hR8h+@CN.hh@C<@IwhL$CjCRnch03q3IRUL3NjhUaRE3,jh 3cjCLj30hjRh,RcjhchLn,@hch1Ozzh$CIICRNYh ch cha3<crnih,irnjhjhhjcl3hs@3nh/rni0hianlu chmbhirrgchjrh$3h cj3uucn<h$,gh8arlhccyõhlf qacrnchun$ic,auacqj3huajn3ac@cuhc,@3l3chn0h8cnn,cn<haan<3l3njchscj@h+@cnhcnhuajc,niayh 6 Asia and the Mega Free Trade Agreements

7 ch8ra3c<nh03$jyh NhajC,I3hCNh7Ra$3chK<yCN3h$whURICjC,IhaCcGh l4 h +RaURaj3h+RNjaRIh NRj@3ahG3wh3I3L3NjhR8hj@3h<IR$Ihja03hN0hCNq3cjL3Njha3<CL3haCcCN<hhIRjhR8h,RN,3aNchCchj@3h,RaURaj3h,Ujna3hR8h 3,RNRLC,hURIC,C3cYh i@3hl3<h7icha3ua3c3njhhg3whjrrihunc@cn<hj@3h,rauraj3h<3n0yh ia03hdncjc,3htcicucnc.hh $ar0h,luc<nhuij8ralhrnhja03hn0hcnq3cjl3njhuric,c3chcnhj@3ht@cicuucn3c.hnn03ac,ra30hcjch,acjc\n3hr8hj@3h,rauraj3h<3n0hnn03aucnncn<h`+2thn0hrj@3ahn3sh<3n3ajcrnhja03hn0hcnq3cjl3njh<a33l3njcyh Ô`+2ThICG3hiTThCch0qN,CN<hh,RaURaj3h<3N0hj@jhsRnI0hj@a3j3NhUn$IC,h@3Ij@hN0hU3RUI3ch,,3cchjRh L30C,CN3cYhi@3hcjaRN<hUnc@h8aRLhDUNhN0hFRa3h8RahiTTAUaRqCcCRNchRNhCNj3II3,jnIhUaRU3ajwhaC<@jchCNhj@3h`+2Th N3<RjCjCRNchsCIIhLG3hCjh@a03ah8RahURRahU3RUI3hCNhj@3ha3<CRNhjRh,,3cch88Ra0$I3hL30C,CN3chUajC,nIaIwhIC83Ah cqcn<h0an<c.hn0h8rah<rq3anl3njchjrh0qn,3hun$ic,h@3ij@huric,c3ch8rahj@3h$3n38cjhr8hj@3hurrayh Ô`+2ThICG3hiTThCch0qN,CN<hj@3h,RaURaj3h<3N0h$whUnc@CN<h8RahNhCNq3cjL3Njha3<CL3hj@jhsCIIh<Cq3h,RaURajCRNch j@3hac<@jhjrhcn3hj@3h<rq3anl3njhrq3ahuric,c3chn0ha3<nijcrncyhmn03ahj@3hcn8lrnchbnq3cjrahbjj3h/ccunj3h b3jji3l3njhk3,@ncclhrahbb/b.h,raurajcrncha3h<cq3nhj@3hurs3ahjrhjg3hi3<ih,jcrnh<cncjhj@3hbjj3hcnhuacqj3h N0h3u,IncCq3hCNq3cjL3Njha$CjajCRNh,RnajcYh Bb/b.hs@C,@h@ch$33Nh@C<@Iwh,aCjC,Cy30hCNhj@3h,RNj3ujhR8hiTTh N3<RjCjCRNc.hc@RnI0h$3hcjaRN<Iwha3E3,j30hchs3IIh$wh<Rq3aNL3Njch,aRcchcChchNhCNcjanL3Njh8Rahs3G3NCN<hj@3h ac<@jhr8hbjj3hjrha3<nij3hcnq3cjl3njchcnhj@3hnl3hr8hj@3h<a3j3ahun$ic,hcnj3a3cjyh Ô`+2ThICG3hiTThsCIIh8naj@3ah,najCIhj@3hURs3ahR8h<Rq3aNL3NjchjRhnc3hUn$IC,hURIC,C3chjRh0qN,3h03q3IRUL3Njh <3N0h$whUnjjCN<hCNhUI,3hUaR@C$CjCRNchRNhU3a8RaLN,3ha3\nCa3L3Njhcn,@hchURIC,C3chRNh0RL3cjC,h,RNj3NjhN0h 3uURajha3cjaC,jCRNc.hURIC,C3chj@jh8qRah3LUIRwL3NjhR8hIR,IchRq3ah8Ra3C<NhsRaG3achRah3q3Nhj@Rc3hj@jhUnc@h8Rah j3,@nrir<whjanc83ayõh h lo?nlnh`c<@jch ia03hn0h@nlnhac<@jchcccn3ch@q3hicrh$33nhcnhj@3hcurjic<@jhcnhj@3hsg3hr8hsrac3ncn<h@nlnhac<@jch,rn0cjcrnch,arcchln,@hr8hccyh i@cch@chuarluj30hja03h0qr,j3chjrhsraghlra3h,irc3iwhscj@h@nlnhac<@jchn3jsragchcnh Unc@CN<hhja03hN0h@nLNhaC<@jch<3N0hj@jhCN,In03ch,IIch8Rahh,RLUa3@3NcCq3h@nLNhaC<@jchCLU,jhcc3ccL3Njh R8hja03hN0hCNq3cjL3Njh<a33L3NjcYh +CqCIhcR,C3jwh,RN,3aNch@q3h$33Nh3,@R30h$whI8a30h03hxwc.hhmNCj30h MjCRNchBN03U3N03Njh2uU3aj.hRNhj@3hUaRLRjCRNhR8hh03LR,ajC,hN0h3\nCj$I3hCNj3aNjCRNIhRa03aYh/3hxwchNRj3ch j@jhôbjhcch@c<@hjcl3hjrhlcncja3lh@nlnhac<@jchcnjrhiihja03h<a33l3njchn0hrrai0hia03hqa<ncyjcrnhvriqwh ani3chn0ha3<nijcrnc.hcrhj@jhja03ha3ua3c3njjcq3chn0h0ccunj3ac3jji3achgnrshj@jhja03hcchn3cj@3ahh_cjn0hirn3_ a3<cl3hnrahnh3n0hcnhcjc3i8yõhkz PEOPLE'S RESISTANCE Qq3ahj@3hw3ac.hs3h@q3hc33NhU3RUI3 cha3cccjn,3hjrhja03h03ichnn03a<rhlerahnuchn0h0rsncyhbnhcc.hj@3a3h@q3h $33NhhNnL$3ahR8hG3whLRL3Njchs@3a3hcR,CIhLRq3L3Njc.h+bQc.hN0h,03LC,ch@q3h,RL3hjR<3j@3ahnN03ah$aR0h U3RUI3 chuij8ralch<cncjhj@3 riqyh i@3c3hcn,in03hj@3hbn0cnhtij8ralh<cncjhj@3hriqhn0hj@3hbjruhj@3hm3sh `RnN0h+RICjCRNhCNhj@3hT@CICUUCN3c.hj@jh@q3hLR$CICy30hj@RncN0chR8hsRaG3ac.h8aL3ac.h8Cc@3ac.hsRL3N.hN0 h Focus on the Global South 7

8 chicq3cyh h i@3h,jcrncharnn0hj@3hriqhkcnccj3acihk33jcn<hcnh?rn<hfrn<hcnhlzz9hs3a3hicrhhsj3ac@30hlrl3njh8rahj@3h NjCA<IR$ICyjCRNhLRq3L3NjhCNhcC.hch,jCqCcjch8aRLh,aRcchj@3ha3<CRNhERCN30hh,RN,3aj30h388RajhjRhUnc@h$,GhRNh j@3h/r@h`rnn0hn3<rjcjcrncyh h r@ci3hj@3hja03h,luc<nch,arcchj@3ha3<crnh@q3hsn30hccn,3hj@3n.hch<arnuch<auui30hscj@hj@3h,@ii3n<3hr8h,rn8arnjcn<hj@a3jch,rlcn<h8arlhlnijcui3h8arnjc.hcn,in0cn<hj@3h$aaa<3hr8h$cij3aihn0ha3<crnih7ic.hchs3iihch <arscn<h,rn,3anchrq3ah,iclj3h,@n<3.hj@3hunc@h8rahl3<h7ichcarnc,iiwh<q3hj@3hlrq3l3njhhn3sha3crnhjrh,rncric0j3hn0h@3c<@j3nhj@3ha3cccjn,3yh r3h@q3hc33nhha3qcjicyjcrnhr8hja03h,luc<nch,arcch2naru3.hn,@ra30h RNhj@3hRUURcjCRNhjRhj@3hiaNchjINjC,hia03hN0hBNq3cjL3NjhTajN3ac@CUh<a33L3NjhViiBTW.hN0hj@3h+N0A2mh 7ihV+2iW.hchs3IIhch,aRcchMRaj@hL3aC,hN0hj@3hT,C8C,hsCj@hj@3hiTT.hN0h,aRcchcChN0hj@3hT,C8C,hsCj@h `+2TYh MjCRNIhN0ha3<CRNIh,LUC<Ncha3h0asCN<hj@3hCNj3a3cjhN0hUajC,CUjCRNhR8hqaCRnchc3,jRachN0hLRq3L3Njch sragcn<hrnhcu3,c8c,hcccn3chn0hj@3ljc,h,rn,3ancyh i@3hac<@jhjrh@3ij@hn0h,,3cchjrhl30c,cn3ch@q3h$3,rl3hlerah,rn,3anchr8h,cqcihcr,c3jwhn3jsragchlrncjracn< qacrnchn3<rjcjcrnch8rah8a33hja03h<a33l3njchcnhbrnj@3cjhccyhpacrnchlnijcacjg3@ri03ahuij8ralchj@jhcn,in03h ja03h,luc<n3ac.h@3ij@h0qr,j3chn0hua,jcjcrn3ac.h,rncnl3ah<arnuc.hn0hcr,cihlrq3l3njch@q3h3l3a<30h,arcchj@3ha3<crnhjrhcu3a@30h,rn,3aj30h,luc<nchn0h,jcrnch<cncjhj@3c3huarqcccrnchn0hjrhcc3ajhj@3hac<@jhjrh Un$IC,h@3Ij@YhkS 7aL3ac hn0h8cc@3ac h<arnuch@q3h,rnjcnn30hjrhajc,nij3hcccn3charnn0hj@3hclu,jhr8hja03h03ichrnh<ac,nijna3.hj@3h <<a3cccq3hunc@hr8h,rauraj3h<ac,nijna3.hn0hj@3h388rajchjrhnn03alcn3h8al3ac hac<@jcyh i@3hcnj3anjcrnihu3cnjh LRq3L3NjhHhpCh+LU3cCN.h@ch$33Nhjhj@3h8Ra38aRNjhR8hja03h,LUC<NCN<h,aRcchcCYhHhpCh+LU3cCNh L3L$3ach@q3hNRjhRNIwhcU3a@3030h,LUC<Nch<CNcjhj@3hriQhjhNjCRNIhN0ha3<CRNIhI3q3Ic.hj@3wh,RNjCNn3hjRh $3hNhCNj3<aIhUajhR8hj@3h,naa3Njh388RajchjRhUnc@h$,GhN3sh<3N3ajCRNh7ic.hN0hU3a@UchLRa3hCLURajNjIwh,RNjCNn3h jrhunjh<ac,nijna3hn0h8rr0hcccn3chrnhj@3h<3n0yh i@3hu3cnjha3cccjn,3hjrhj@3c3hja03h03ichcchicrhn,@ra30hrnhh UaRURcIh8RahNhIj3aNjCq3-h<aR3,RIR<whjRsa0ch8RR0hcRq3a3C<NjwYh HhpCh+LU3cCNh,RNjCNn3chjRh0qN,3h kl <ar3,rir<whchhôg3wh8ralhr8ha3cccjn,3hjrhnh3,rnrlc,hcwcj3lhj@jhunjchuar8cjh$38ra3hic83yõh BNhKwhlzSf.hj@3hR88C,3hR8hj@3hmMhbU3,CIh`UURaj3nahRNhj@3h`C<@jchR8hBN0C<3NRnchT3RUI3c hvmmb`btwhra<ncy30hh,rncnijjcrnhlrn<hcn0c<3nrnch<arnuchn0hja03h,luc<n3achcnhj@3hccat,c8c,ha3<crnhrnhcnj3anjcrnih CNq3cjL3Njh<a33L3NjcYh mmb`bthpc,jrachinica+raunyh@0h3aic3ahcn$lcjj30hha3urajhjrhj@3hmmhb3,a3jawh ;3N3aIhRNhj@3hCLU,jhR8hCNj3aNjCRNIhCNq3cjL3NjhN0h8a33hja03hRNhj@3h@nLNhaC<@jchR8hCN0C<3NRnchU3RUI3cYh i@3h a3urajh0a3shjj3njcrnhjrhj@3h8,jhj@jhôcnq3cjl3njh,inc3chr8h8a33hja03h<a33l3njchn0h$cij3aihn0hlnijcij3aih CNq3cjL3Njhja3jC3c.hchj@3wha3h,naa3NjIwh,RN,3UjnICy30hN0hCLUI3L3Nj30.h@q3h,jnIhN0hURj3NjCIhN3<jCq3h CLU,jchRNhCN0C<3NRnchU3RUI3c hac<@jc.hcnhuajc,niahrnhj@3cahac<@jchjrhc3i8a03j3alcnjcrn.hin0c.hj3aacjrac3chn0h kk a3crna,3cdhuajc,cujcrndhn0h8a33huacra.hn0hcn8ral30h,rnc3njyõh hnhcn,a3ccn<hnnl$3ahr8hcn0c<3nrnchu3rui3ch Ra<NCyjCRNchN0hN3jsRaGch,RNjCNn3hjRh$3h3N<<30hCNh`+2ThN0hRj@3ahja03h,LUC<NcYh #ar0h,luc<nhuij8ralchjhj@3hnjcrnihi3q3ih@q3hicrh3l3a<30.hcn,@hchj@3h7ranlh<cncjh7ichcnhbn0c.h7ih rj,@hcnhi@cin0.hn0hj@3hia03hdncjc,3atcicucnchcnhj@3ht@cicuucn3c.hs@c,@hc3aq3hchl3,@ncclch8rahcr,cih LRq3L3Njc.hc3,jRaIh<aRnUchN0h+bQchjRh,RNcRIC0j3hURcCjCRNc.h3N<<3h<Rq3aNL3Njch,aRcchhsC03AaN<3hR8hCccn3c.h CNCjCj3hUn$IC,h30n,jCRN.hN0hI30hNjCRNIh,LUC<Nch<CNcjhj@3c3hnNEncjh<a33L3NjcYh ccnhlrq3l3njcha3hicrh,jcq3huiw3achcnh<ir$ih,luc<nchcn,@hchj@3h;ir$ih+luc<nhjrh`3,iclht3rui3ch brq3a3c<njw.h/cclnji3h+rauraj3htrs3ahn0hbjruhblunncjw.hhn3jsraghr8hrq3ahlzzhcr,cihlrq3l3njc.hn3jsragc.h Ra<NCyjCRNchN0h883,j30h,RLLnNCjC3cha3cCcjCN<hj@3hIN0h<a$c.h3uja,jCq3hLCNCN<.h3uUIRCjjCq3hs<3chN0 h 8 Asia and the Mega Free Trade Agreements

9 @jjuc-ggsssy8jy,rlg,rnj3njgk,,08lzzalf94ass3ea4fosa098e3z,0zsfyhuacihlzseyh c3nacnllcjgyhkzhuacihlzseyh 08jY<RqYngja03g<a33L3Njcga,3Ug0R,nL3Njcg<nC0CN<AUaCN,CUI3cAa,3UYU08h,,3cc30hKwhlzSeYh KwhlzSeh KwhlzSeh h <IR$IA,RLU3jCjCq3N3ccAa3URajAlzSfAlzSeASYhb3Uj3L$3ahlzSfYh VmMB/bWYhlzSlYhQNICN3-h@jjU-ggsssYnNC0cYRa<g3NgL30CgnNC0cg,RNj3Njcc3jcg0R,nL3NjcgnNC0cUn$IC,jCRNglzSlgD+lk:OoBccn3o#aC38o7a33Ah ia03a<a33l3njco3nyu08h c330ch SfYhTa3c3NjjCRNhNRj3chjh<aR3,RIR<wh2N,RnNj3ahR8hpCh+LU3cCNYhDnN3hlzSehCNhbaChHNGYh +RNq3NjCRNYhRNICN3-h@jjU-ggsssYnURqYCNjgL33jCN<cg3Ng0R,o03jCIcYEcU]L33jCN<oC05Sll4k0R,oC05e9fSlh chbnq3cjrahbjj3h/ccunj3hb3jji3l3njhk3,@ncclyhta3c3njjcrnhjhj@3h`+2thbjg3@ri03ah2n<<3l3njh lsyh7ac3n0chr8hj@3h2aj@hvlzsfwhi@3h?c003nh+rcjchr8h`+2thn0h+rauraj3hia03h/3ichcnhccyhrnicn3-h@jjuc-gg8r,ncs3$yra<g,rnj3njg@c003nah,rcjcaa,3uan0a,rauraj3aja03a03icacch chbnq3cjrahbjj3h/ccunj3hb3jji3l3njhk3,@ncclyhta3c3njjcrnhjhj@3h`+2thbjg3@ri03ah2n<<3l3njh lkyhtnan<<nn.hdrc3u@yhblu,jhr8h`+2t CNhKNCIYhUaCIhlzSeYhQNICN3-h@jjUc-gg8R,ncs3$YRa<g,RNj3Njg8R,ncA<IR$IAcRnj@AN3scI3jj3aAcU3,CIA30CjCRNAa,3Uh chbnq3cjrahbjj3h/ccunj3hb3jji3l3njhk3,@ncclyhta3c3njjcrnhjhj@3h`+2thbjg3@ri03ah2n<<3l3njh l9yh<a33l3njh2cj$icc@cn<hi@3hb2mancjaichm3shx3in0h7a33hia03ha3yhqnicn3-h lfyht@ciicuc.hirlhvlzsewhi@3h1ozz$nh\n3cjcrn-hr@jhcchj@3h#3ijhn0h`r0hcncjcjcq3]hi@3h;na0cnyhslhkwhlzseyhqnicn3-h Focus on the Global South 9 NOTES

10 @jjuc-gg8r,ncs3$yra<g,rnj3njg,,3cca03iw30a,,3cca03nc30aja03an0acjan<<i3ca,,3ccal30c,cn3ch <ar3,rir<wanw3i3ncalzs9gh 10 Asia and the Mega Free Trade Agreements