Tutorial 6: The Repetition Structure1 Tutorial 6 The Repetition Structure.
IB Tutorial 6
Transcript of IB Tutorial 6
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 1/18
“NEW REGIONALISM” IN ASIA: A
COMPARATIVE ANALYSIS OFEMERGING REGIONAL AND
BILATERAL TRADING AGREEMENTS
INVOLVING ASEAN, CHINA ANDINDIA
Rahul Sen
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 2/18
WHAT’S “NEW REGIONALISM”?
Resemblance of ongoing phenomenon
of proliferation of bilateral and regionaltrading agreements in the Asia-Pacific,
especially in the aftermath of theregional financial crisis.
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 3/18
INTRODUCTION
Rapid proliferation of wave of “newregionalism” among Asian economies over thepast decade
More diverse in scope and coverage thantraditional Free Trade Agreements (FTAs)
Phenomenal proliferation of bilateralism due to: Slow pace of progress of multilateral trades
negotiations in WTO
Bilateral trade serves key diplomatic and securityends
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 4/18
INTRODUCTION
Agreements aimed at ‘deeper integration’among trading partners – termed asEconomic Partnership Agreements (EPAs)
“Stumbling block” vs “building block”
Applying models of modern trade theory and
similar modelling techniques to understandthe phenomenon and its implications ischallenging
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 5/18
OBJECTIVE OF PAPER
Provides a comparative analysis of theongoing bilateral and regional initiativesinvolving ASEAN, China and India
Attempts to analyse the similarities anddifferences among ASEAN, China and Indiawith respect to the negotiating framework,coverage of issues and depth of its
commitments
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 6/18
KEY FINDINGS
Concerns from new regionalism
Discriminatory against non-members
Potential trade diversion
Inefficient utilisation of scarce resources thatcould be devoted towards multilateral
negotiations in WTO
Applicability and consistency in negotiatingframework of overlapping member countries
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 7/18
KEY FINDINGS
Perceived benefits from new regionalism
Act as catalyst in enhancing the pace of multilateral trade liberalisation
Facilitate government to initiate domesticeconomic reforms
Member countries are committed to maintainingpeace and stability amongst themselves
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 8/18
KEY FINDINGS
Trade in Goods
Exclusion of few products from tariff reductions isinsignificant
Non-tariff barriers are progressively reduced and canonly impose those permitted under the WTO
Rules of Origins (RoOs) differ across different FTAs thatcould increase compliance costs for adhering to these
RoOs
Application of RTA safeguard measures as part of FTA
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 9/18
KEY FINDINGS
Trade in Goods
Adhering to WTO principles on trade remediesfor most RTAs
Timelines for negotiations and implementationvary significantly across BTAs
Trade Facilitation
Facilitation of trade flows through closer customscooperation and mutual recognition of standardsand conformity assessment
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 10/18
KEY FINDINGS
Trade in Services
Allow foreign service providers to supply service toit’s RTAs partner
Enhance cooperation in services to improveefficiency and competitiveness
Diversify the supply and distribution of supply
Mutual recognition of qualification, certification andlicensing requirements
E.g. Singapore’s enforced RTAs with US and Australia
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 11/18
KEY FINDINGS
Mutual recognition of qualification & licensingrequirements e.g. S’pore’s enforced RTA with USA has provisions for
recognising degrees from certain US Law Schools that wouldallow their graduates to practise in S’pore
Temporary Movement of Natural Person Stay in partner countries extended
Government Procurement Private business in one country to sell goods and services
to governments to their RTAs partners
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 12/18
KEY FINDINGS
Investments BTA objective is to create a liberal, facilitative,
transparent & competitive investment regime
BTA investment negotiations focuses on:
1. Issues of market access
2. Treatment of foreign investments
3. Repatriation of profits
4. Expropriation & compensation5. Investor protection
6. Harmonisation of business laws
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 13/18
KEY FINDINGS
Intellectual Property Protection Relevant for countries with a huge emphasis on
innovation and R&D in InfoComm Technology
Should respect copyright rules & patent
protection to maintain a competitive advantage
E.g. S’pore – USSFTA prevents piracy of copyrighted works over the Internet,
criminalizing unauthorized reception &distribution of satellite signals & allowing allinventions to be patented
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 14/18
KEY FINDINGS
Competition Policy Prohibits anti-competitive business practices to
provide a level playing field for foreign investors
Exchange of info reagrding any prevailing anti-
competitive practices Periodic review of progress of competition
policies are conducted
E.g.. S’pore – USSFTA states that Govt Linked
Companies (GLC) will be commerically run & theS’pore govt will not interfere with commercialdecisions of GLCs (such as SingTel, SIA).
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 15/18
KEY FINDINGS
Dispute Resolution Mechanism
Provision for quick and efficient resolution of trade disputes in all agreements
Private sector allowed a limited role to invokedispute under investor-state dispute settlementin Singapore’s BTAs and TAFTA
Enforcement is crucial for businesses to minimizerisks from using such mechanism for bilateraldispute resolution
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 16/18
KEY FINDINGS
Broader Areas of Economic Cooperation
Strengthening bilateral economic cooperation in adiverse range of areas
Commitment towards developing longer-termcooperative relationship, enhancing trust andconfidence in each other
Significant for long-term strategic and socio-economicrelations among member countries
Basis for deeper economic integration
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 17/18
KEY FINDINGS
Convergence or Divergence?
Exhibit wide differences in scope and coverage of tradeliberalisation
Minimal degree of commonality is observed in some of the broad issues covered in the RTAs/BTAs
Unlikely for ASEAN to undertake common negotiatingpositions
Member countries undertake important domestic andexternal sector reforms, but unlikely to be welfareenhancing in their own end unless concomitantunilateral liberalisation is also pursued
8/14/2019 IB Tutorial 6
http://slidepdf.com/reader/full/ib-tutorial-6 18/18
CONCLUSION
Increasing recognition among Asian policy-makers thatgreater economic coordination and cooperation is essentialto manager globalisation challenges and to enhance its rolein world affairs
Multilateralism is indispensable to a well-ordered, open andrational international trading system, and cannot be ignoredat the expense of bilateralism to pursue global free trade
Pursual of unilateral liberalisation would be essential for
developing countries to gainfully benefit from tradeliberalisation at the bilateral and multilateral level