Regional Trade and Economic Cooperation: Analytical and Policy Issues

1
Regional Trade and Economic Cooperation
Analytical and Policy Issues

• Dr. Ram Upendra Das
• Fellow
• upendra900_at_gmail.com
• Presented at TERI Workshop on WTO-related Issues
  for Government officials in the SAARC Region,
• 03 May 2006
• New Delhi

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Introduction

• Broader Analytical Issues
• Trade-Industry-Investment-Development
  Relationship
• Policy Issues including Safeguard Mechanisms
• Rules of Origin

3
Broader Analytical Issues

• Regionalism and Multilateralism
• Level Playing Field and Efficiency Concerns
• Trade-Development Relationship
• Trade-Industry Linkages Process of
  Industrialization
• Trade-Investment Linkages
• Static and Dynamic Gains

4
Trade-Development Relationship

• Two-way Causality
• Trade Creation and Diversion
• Distribution of Trade Gains
• Rules of Origin
• Developmental Role
• Confusion w.r.t. Trade Deflection

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Trade-Investment Linkages

• Trade created by investments
• Investments necessitated/spurred by trade regimes
• Trade-Industry-Investment Linkages
• Efficiency-seeking industrial restructuring
• Horizontal and Vertical Integration
• Value Addition,Employment,Development
• Trade Account deficits and Capital A/c surplus

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Static and Dynamic Gains

• Tariff reduction Impact on Trade Volume
• Over time, Economies of scale and specialization
  Impact on Trade Volume through enhancing
  product-competitiveness
• Market Access to scale economies to
  competitiveness

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Policy Issues including Safeguard Mechanisms

• Policies to balance conflicting objectives
• Developmental Perspective as against Protection
• Balancing Liberalization and Safeguards
• Different Objectives Achieved Through Different
  Safeguards
• Safeguard Mechanisms
• Tariff Liberalization
• Sensitive List
• Tariff Rate Quota
• Rules of Origin
• Trade Remedial Measures
• Safeguards
• TBT/SPS/MRAs

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Rules of Origin (ROO)

• Rules of Origin Conceptual Issues
• Meaning
• Trade Diversion/Trade Deflection
• Checking Third Country Imports and not Imports
  per se
• Nuances of Different Modalities of Origin
  Determination
• Change in Tariff Classification
• Percentage Test
• Specific Process Test
• Merits and Demerits
• A Combined Approach
• Economic Effects of ROO
• Trade and Development
• Non-tariff barriers

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• Thank You