17 March 2016 10:29 am Views - 3090
From left: International Institute on Sustainable Development Group Director Economic Law and Policy Nathalie Bernasconi-Osterwalder, DG Commerce Sonali Wijeratne, Industry and Commerce Minister Rishad Bathiudeen and Commonwealth Secretariat Head of Trade Competitiveness Rashmi Banga at yesterday’s session
A high-level trade confab in Colombo attended by reps from the Commonwealth, Canada’s International Institute on Sustainable Development (IISD), Netherland’s South Centre, New Delhi reps and top Lankan trade officials is to start mapping the way forward on multilateral trade play of developing countries.
Interestingly, the Trans Pacific Partnership (TPP) is to be a key discussion point in the confab while the Commonwealth Secretariat shall begin support work on the proposed Exim Bank of Sri Lanka during the Colombo sessions that opened yesterday. “The TPP has already become a reality. It appears that more and more countries have now begun to look at these mega free trade agreements (FTAs) due to disappointing World Trade Organisation (WTO) outcomes,” said Industry and Commerce Minister Rishad Bathiudeen. Bathiudeen was addressing the launch of the high-level trade confab organised by the Commonwealth Secretariat with the Commerce Department of Sri Lanka and partnered by the Institute of Policy Studies (IPS) and International Institute for Sustainable Development (IISD).
The three-day Colombo session ‘Boosting Trade Competitiveness Around Emerging New Issues in Multilateral Trade Agreements’ is set for an in-depth look at the way forward on global multilateral trade play – especially of the developing countries- in light of recent major developments as the Trans Pacific Partnership (TPP) and TTIP and disappointing WTO outcomes since Doha and Nairobi rounds.
“We all know that how mega agreements such as Trans the TPP, TTIP have been making headways slowly but steadily. In fact, the TPP has already become a reality. It appears that more and more countries have now begun to look at these mega FTAs since they seem to have little hope in the WTO-led multi-lateral trade negotiations,” said Bathiudeen. “Just like your own countries, Sri Lanka too has remained highly concerned over the extremely slow progress of the Doha Round of Multilateral Trade Negotiations or the Doha Development Agenda (DDA), spearheaded by the WTO. Due to the stalemate, which continues to plague the DDA since its launch in 2001, almost all the countries around the world have been resorting to bilateral and regional free-trade agreements, which we commonly refer to as Regional Trade Agreements (RTAs) for trade creation. It is learnt that as many as 625 such RTAs have been notified to the WTO as of last month, while more than 400 of them are actually in force,” he said. Head of Trade Competitiveness of Commonwealth Secretariat Rashmi Banga said that the Secretariat shall help draw formulate the proposed Exim Bank of Sri Lanka during the Colombo session. “Sri Lankan exporters need better export financingthey are on credit and they don’t have working capital so they have to look for bank overdrafts which the banks are reluctant to issue. The proposed Exim Bank will solve this greatly since SL Export Credit Insurance will guarantee the order and Exim Bank can finance it based on the guarantee.
Having learnt of the proposal we at Commonwealth Offices in London gave the first Exim Bank concept paper to the Government of Sri Lanka and we are now ready to give technical assistance to set up. Even the Indian Exim Bank was set up by our technical assistance.” IISD Group Director Economic Law and Policy Nathalie Bernasconi-Osterwalder said, “We are at an important point in the history of trade and investment policy making. At the multilateral level, after 15 years of slow progress on the Doha Development Agenda, some countries in the WTO Secretariat are wishing to bring new life to the WTO by introducing new issues that may be tabled for multilateral negotiations. Among the issues are 1996 Singapore Ministerial Conference effects-trade and investment, trade and competition policy, transparency in government procurement, and trade facilitation.
These issues are no longer about trade or what happens at border crossing but more about domestic policymaking. These emergent issues will be impacted by some of the new mega regional trade agreements such as TPP. The new issues for WTO are not so new for these mega FTAs. Now there is a race between governments as to who gets to write the agreement rules. As this