Ans1:
The TFA that was successfully agreed and implemented through WTO was a rare feat as such a multilateral negotiation came after long years of unsuccessful and frustrated attempts. In view of this, to pursue self interest and enhance and quicken trade the PTA or the FTA are in fashion.
CASE FOR FTAs
-improves the trade relationship with the agreeing nations
-imrpoves the economy
-brings in forex reserve
-creates interdependencies and interconnectedness
CASE AGAINST FTAs
-isolates the non agreeing countries
-hampers multilateral institutions where developing countries have some say
-indirectly hampers developing countries that cannnot become part of various multilateral FTAs like trans pacific partnership and trans atlantic partnership due to their stringent conditions that developing nations cant afford
-enhances regionalism on a enhanced scale
-becomes a ground for reactionary politics
given its positives and negatives FTAs are though beneficiary in a way should never be used a ploy to undermine multilateral forums which are truly representative in nature and are the platforms of equity and justice. the case for WTO remains strong amidst the storms and winds of FTAs
Ans2:
The success of multilateral trade platforms like the GATT and its successor, the WTO can be considered as unsatisfactory in light of the fact that presently, over half of the world’s trade is conducted through Regional Trade Agreements (RTAs). However, their accomplishments have been mixed.
Often RTAs overlap, involve complicated rules of origin and value-addition norms to discourage exploitation of such agreements by third-parties. They also include negative lists for sensitive products and create administrative problems due to multiple tariffs on different products.
Over the past few decades, three RTAs- the NAFTA, the EU and an East Asian block comprising Japan, China, Korea and ASEAN have gained prominence. In India’s case, its absence from any of these blocks holds the danger of its marginalization in case the other economies of the mentioned RTAs integrate. In many cases RTAs are based on political considerations rather than sound economic logic. India’s RTA with its South Asian neighbours is a case in point.
However, inspite of numerous backdraws, RTAs have provided a platform for bilateral trade between countries even in the absence of consensus in the WTO. It has allowed many smaller countries to negotiate rules and commitments that go beyond what was possible through multilateral negotiations. The integration of the smaller countries of South-East Asia into the ASEAN is an example. RTAs are the building blocks of a multilateral trade regime and hence, their importance currently cannot be ignored.
The TFA that was successfully agreed and implemented through WTO was a rare feat as such a multilateral negotiation came after long years of unsuccessful and frustrated attempts. In view of this, to pursue self interest and enhance and quicken trade the PTA or the FTA are in fashion.
CASE FOR FTAs
-improves the trade relationship with the agreeing nations
-imrpoves the economy
-brings in forex reserve
-creates interdependencies and interconnectedness
CASE AGAINST FTAs
-isolates the non agreeing countries
-hampers multilateral institutions where developing countries have some say
-indirectly hampers developing countries that cannnot become part of various multilateral FTAs like trans pacific partnership and trans atlantic partnership due to their stringent conditions that developing nations cant afford
-enhances regionalism on a enhanced scale
-becomes a ground for reactionary politics
given its positives and negatives FTAs are though beneficiary in a way should never be used a ploy to undermine multilateral forums which are truly representative in nature and are the platforms of equity and justice. the case for WTO remains strong amidst the storms and winds of FTAs
Ans2:
The success of multilateral trade platforms like the GATT and its successor, the WTO can be considered as unsatisfactory in light of the fact that presently, over half of the world’s trade is conducted through Regional Trade Agreements (RTAs). However, their accomplishments have been mixed.
Often RTAs overlap, involve complicated rules of origin and value-addition norms to discourage exploitation of such agreements by third-parties. They also include negative lists for sensitive products and create administrative problems due to multiple tariffs on different products.
Over the past few decades, three RTAs- the NAFTA, the EU and an East Asian block comprising Japan, China, Korea and ASEAN have gained prominence. In India’s case, its absence from any of these blocks holds the danger of its marginalization in case the other economies of the mentioned RTAs integrate. In many cases RTAs are based on political considerations rather than sound economic logic. India’s RTA with its South Asian neighbours is a case in point.
However, inspite of numerous backdraws, RTAs have provided a platform for bilateral trade between countries even in the absence of consensus in the WTO. It has allowed many smaller countries to negotiate rules and commitments that go beyond what was possible through multilateral negotiations. The integration of the smaller countries of South-East Asia into the ASEAN is an example. RTAs are the building blocks of a multilateral trade regime and hence, their importance currently cannot be ignored.
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