why RTA's are important as an bilateral agreements

1. REGIONAL TRADE
AGREEMENTS(RTAs)
Introduction

2. What is RTA
• GATT rules on Regional Trade Agreements, as
laid down in GATT Article XXIV and clarified in
the Understanding on the provision, permit
departures from the Most-Favoured Nation
treatment as they allow parties to an RTA
(involving developed countries) to grant each
other trade preferences without
multilateralising concessions.

3. RTAs
NORTH ATLANTIC FREE TRADE AREA(NAFTA)
PREAMBLE
The Government of Canada, the Government of the United
Mexican
States and the Government of the United States of America,
resolved
to:
• STRENGTHEN the special bonds of friendship and
cooperation among their nations;
• CONTRIBUTE to the harmonious development and
expansion of world trade and provide a catalyst to broader
international cooperation;
• CREATE an expanded and secure market for the goods and
services produced in their territories;
• REDUCE distortions to trade;

4. NAFTA
• ESTABLISH clear and mutually advantageous rules
governing their trade;
• ENSURE a predictable commercial framework for
business planning and investment;
• BUILD on their respective rights and obligations under
the General Agreement on Tariffs and Trade and other
multilateral and bilateral instruments of cooperation;
• ENHANCE the competitiveness of their firms in global
markets;
• FOSTER creativity and innovation, and promote trade
in goods and services that are the subject of
intellectual property rights;

5. NAFTA
• CREATE new employment opportunities and
improve working conditions and living standards
in their respective territories;
• UNDERTAKE each of the preceding in a manner
consistent with environmental protection and
conservation;
• PRESERVE their flexibility to safeguard the public
welfare;
• PROMOTE sustainable development;
• STRENGTHEN the development and enforcement
of environmental laws and regulations; and
• PROTECT, enhance and enforce basic workers'
rights;

6. RTAs
Objectives
a) eliminate barriers to trade in, and facilitate
the cross-border movement of, goods and
services between the territories of the Parties;
b) promote conditions of fair competition in the
free trade area;
c) increase substantially investment
opportunities in the territories of the Parties

7. RTAs
d) provide adequate and effective protection and
enforcement of intellectual property rights in
each Party's territory;
e) create effective procedures for the
implementation and application of this
Agreement, for its joint administration and for
the resolution of disputes; and
f) establish a framework for further trilateral,
regional and multilateral cooperation to expand
and enhance the benefits of this Agreement

8. RTAs
The Association of Southeast Asian Nations, or
ASEAN
primary goal:
• to support sustainable economic growth and
prosperity in the Asia-Pacific region,
• to build a dynamic and harmonious Asia-Pacific
community by championing free and open trade
and investment,
• promoting and accelerating regional economic
integration

9. RTAs
• encouraging economic and technical
cooperation,
• enhancing human security, and facilitating a
favorable and sustainable business
environment.
• turn policy goals into concrete results and
agreements into tangible benefits

10. RTAs
Achievements and Benefits
1.Since APEC's inception in 1989, APEC's total
trade has grown 395%, significantly
outpacing the rest of the world.
2. In the same period, GDP (in purchasing
power parity terms) in the APEC region has
tripled, while GDP in the rest of the world
has less than doubled.

11. RTAs
Three main pillars of activity:
• Trade and Investment Liberalization,
• Business Facilitation and
• Economic and Technical Cooperation,
has helped drive this economic growth and
improve
employment opportunities and standards of
living for
the citizens of the region.

12. RTAs
Trade and Investment Liberalisation
• When APEC was established in 1989 average
trade barriers in the region stood at 16.9%; by
2004 barriers had been reduced by
approximately 70% to 5.5%.

13. RTAs
• Intra-APEC merchandise trade (exports and
imports) has grown from US$1.7 trillion in
1989 to US$8.44 trillion in 2007 - an average
increase of 8.5% per year; and merchandise
trade within the region accounted for 67% of
APEC's total merchandise trade in 2007.

14. RTAs
Three main pillars of activity:
• Trade and Investment Liberalization,
• Business Facilitation and
• Economic and Technical Cooperation,
has helped drive this economic growth and
improve
employment opportunities and standards of
living for
the citizens of the region

15. RTAs
MEMBER COUNTRIES
Australia, Brunei Darussalam, Canada,
Chile, People's Republic of China, Hong
Kong, China, Indonesia, Japan , Republic of
Korea, Malaysia, Mexico, New Zealand,
Papua New Guinea, Peru, The Philippines,
Russia, Singapore, Chinese Taipei,
Thailand, The United States, Viet Nam

16. RTAs
ESTABLISHMENT
• The Association of Southeast Asian Nations, or
ASEAN, was established on 8 August 1967 in
Bangkok, Thailand, with the signing of the
ASEAN Declaration (Bangkok Declaration) by
the Founding Fathers of ASEAN, namely
Indonesia, Malaysia, Philippines, Singapore
and Thailand.

17. RTAs
• Brunei Darussalam then joined on 8 January
1984, Viet Nam on 28 July 1995, Lao PDR and
Myanmar on 23 July 1997, and Cambodia on
30 April 1999, making up what is today the ten
Member States of ASEAN.

18. RTAs
AIMS AND PURPOSES
• As set out in the ASEAN Declaration, the
aims and purposes of ASEAN are:
• To accelerate the economic growth, social
progress and cultural development in the
region through joint endeavours in the spirit
of equality and partnership in order to
strengthen the foundation for a prosperous
and peaceful community of Southeast Asian
Nations;

19. • To promote regional peace and stability
through abiding respect for justice and the
rule of law in the relationship among
countries of the region and adherence to the
principles of the United Nations Charter;

20. • To promote active collaboration and mutual
assistance on matters of common interest in
the economic, social, cultural, technical,
scientific and administrative fields;
• To provide assistance to each other in the
form of training and research facilities in the
educational, professional, technical and
administrative spheres

21. • To collaborate more effectively for the greater
utilisation of their agriculture and industries,
the expansion of their trade, including the
study of the problems of international
commodity trade, the improvement of their
transportation and communications facilities
and the raising of the living standards of their
peoples

22. • To promote Southeast Asian studies; and
• To maintain close and beneficial cooperation
with existing international and regional
organisations with similar aims and
purposes, and explore all avenues for even
closer cooperation among themselves

23. RTAs
FUNDAMENTAL PRINCIPLES
• In their relations with one another, the
ASEAN Member States have adopted the
following fundamental principles, as
contained in the Treaty of Amity and
Cooperation in Southeast Asia (TAC) of 1976:
• Mutual respect for the independence,
sovereignty, equality, territorial integrity, and
national identity of all nations;

24. • The right of every State to lead its national
existence free from external interference,
subversion or coercion;
• Non-interference in the internal affairs of one
another;
• Settlement of differences or disputes by
peaceful manner;

25. • Renunciation of the threat or use of force; and
• Effective cooperation among themselves.

26. RTAs
BIMSTEC
• is bay of Bengal Initiative for Multi -Sectoral
Technical Economic Cooperation.
• seven members; namely Bangladesh, India,
Myanmar, Sri Lanka, Thailand, Nepal and
Bhutan was formed in June, 1997 with four
members- Bangladesh, India, Sri Lanka and
Thailand.

27. • Later, in November 1997, Myanmar was
included as a member and in 2003 both Nepal
and Bhutan were granted membership in the
forum

28. RTAs
Primary objectives of BIMSTEC
• To create an enabling environment for rapid
economic development,
• To accelerate social progress in the sub-region,
• To promote active collaboration and mutual
assistance on matters of common interest,
• To provide assistance to each other in the
form of training and research facilities

29. • To cooperate more effectively in joint efforts
that are supportive of,
• To complementary to national development
plans of member states,
• To maintain close and beneficial cooperation
with existing international and regional
organizations, and
• To cooperate in projects that can be dealt with
most productively on a sub-regional basis and
which make best use of available synergies

30. RTAs
These areas are as follows:
• Trade and Investment
• Transport and Communication
• Energy
• Tourism
• Technology
• Fisheries
• Agriculture
• Public Health
• Poverty Alleviation

31. RTAs
• Counter Terrorism and trans-National Crime
Protection of Bio-Diversities/Environment and
Natural Disaster Management
• Culture
• People-to-people contact

32. RTAs
• BIMSTEC countries have signed a Framework
Agreement on Free Trade Area (BIMSTEC FTA)
which aims to create a free trade area within
BIMSTEC region by 2017 as a whole
Lakshya Hirwani
university of petroleum and energy studies
MBA international business