NAIROBI, Dec 17: Mega regional trading agreements (RTAs) have become a threat to the World Trade Organisation (WTO) as well as multilateral trade regime, observed many trade ministers and experts while talking on the current ministerial conference (MC10) here.
Commerce Minister Tofail Ahmed expressed his fears over the current wave of mega RTAs like Trans-Pacific Partnership (TTP) which contained ‘WTO Plus’ obligations and intended to grossly discriminate many of the least developed countries (LDCs).
‘As regional trading blocs led by major trading partners proliferate, LDCs risk marginalisation in their markets,’ he said in his plenary speech on Wednesday without directly mentioning any name of such bloc. ‘These regional blocs need to ensure that export-interest of LDCs in their markets is not affected.’
The TPP comprises 12 Asia-Pacific countries. These are the United States, Canada, Mexico, Chile, Peru, Australia, New Zealand, Japan, Singapore, Malaysia, Vietnam and Brunei. This bloc encompasses 40 per cent of global Gross Domestic Product (GDP) with a population of 800 million.
The Transatlantic Trade and Investment Partnership (TTIP) between the EU and the US accounts for 30 per cent of global merchandise trade and 40 per cent of global service trade.
While TPP is already agreed upon by 12 members this year, TTIP is yet to be finalised.
Both the RTAs intend to emphasise greater trade openness, high 21st century standards, and regulatory harmonisation for their members, observed experts while talking at a side-event of the conference jointly organised on Wednesday by Friedrich-Ebert-Stiftung(FES), a Germany-based international organisation and India-based Consumer Unity and Trust Society (CUTS) International.
Ms Eveline Herfkens, former Minister for Development Cooperation of the Netherlands said mega RTAs are clearly intended to undermine the WTO. ‘These are displacing the WTO.’
‘Mega RTAs have sucked energy for multilateral trade negotiations,’ she said adding that the United States is at the centre of both TPP and TTIP and there is clearly geo-political intention to corner China.
Eveline also said that design of TPP is to marginalise poor countries which could get better treatment under the WTO framework.
‘Under the TPP, Vietnam will be given market benefit on clothing and textiles at the cost of Bangladesh Cambodia and Nepal,’ she added.
Cleared by Nilufer
