13th December 2005

Hong Kong Trade and Development Symposium Session P1: Regional and Bilateral Free Trade Agreements in Asia: Trends, Characteristics, and Implications for Development


Since January 1995, over 150 new regional Free Trade Agreements (FTA) have been notified to the World Trade Organization (WTO). On the one hand, the establishment of the WTO and its Single Undertaking has facilitated the expansion of FTAs by setting a set of common trade obligations, particularly the disciplines on non-tariff measures; on the other hand, setbacks in advancing the multilateral agenda through Ministerial Conferences have created new outlets for consideration of bilateral and regional options. Asia has been the last region to catch up with the trend and its countries are exerting renewed efforts to deepen as well as expand existing regional and sub-regional integration, as reflected by a remarkable scale of negotiating activity currently underway.

In addition to liberalizing most trade in goods and providing improved access for services, these agreements can be “WTO-plus,” involving a higher degree of obligation than provided in the multilateral trade agreements. Thus, while some FTAs can constitute a step towards greater regional integration in Asia, others may frustrate such efforts, and even undermine WTO rights of parties concerned. Further, there are implications of the resurgence of the political element in bilateral trade relations which are yet to be fully reckoned with. As most Asian countries are engaged in such negotiations, it is essential that the development implications of various models of FTAs with diverse trading partners are well grasped. For example, there are qualitative differences in scope, intent and implications between South-South FTAs and North-South FTAs, which warrant greater understanding.

This session will host a distinguished panel of speakers who will shed light on the phenomenon of the proliferation of FTAs and the underlying forces and motivations of key players at work. They will also address the impact of FTA explosion on policy choices from a human development lens in Asia. A detailed Policy Paper on FTAs, prepared by the UNDP Regional Centre, will also be launched and distributed during the session.

Agenda

Moderator: Dr. Manuel F. Montes

Speaker’s Bios

Professor Joseph E. Stiglitz, Columbia University

Hafiz Pasha, Regional Director for Asia and the Pacific, United Nations Development Programme

Dr. Mari Pangestu, Minister of Trade, Indonesia (invited)

Synopsis | Agenda | Speakers Bios | Organisers | Documents

Organisers

Asia-Pacific Trade and Investment Initiative, UNDP Regional Centre in Colombo