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Regionalism: Policy Options For

India
By Pradeep S Mehta & Dr N C Pahariya
1
Paper presented at Conference on
Developing Countries & the Challenge of Regionalism:
Assessing the Options
Organised by
CARIS & SEI !ni"ersity of S#sse$
%&'() Septe*ber %))+
1
Mehta is the Secretary ,enera- of C!.S Internationa- /ps*0c#ts1org2 3hi-e Dr Pahariya
/ncp0c#ts1org2 is 4e--o3 C!.S Centre for Internationa- .rade Econo*ics & En"iron*ent 5aip#r1
Co**ents are in"ited1
1
Abstract
With the stalemate of the Doha Round of WTO negotiations as US not oneding to
provide the inreased mar!et aess as laimed "# the developing ountries$ the fous
of the developing ountries have shifted from pursuing glo"al trade through
multilateralism$ to formation of "ilateral trade agreements and regional trade "los%
The ountries inluding &ndia are on a 'ree Trade Agreement Spree (ith almost ever#
feasi"le and eonomiall# via"le ountr#% )o(ever (hether the ountries ould go
for shallo( or deeper eonomi integration among themselves depends on man#
fators li!e the level of institutional struture of the ountr#$ the effiien# of the
administrative s#stem and to a ma*imum e*tent on the politial (ill of the ountries%
+ut ho( muh the trade deisions are pro gro(th and development "ased on
livelihood and food seurit# onern or are politiall# motivated is a matter of
de"ate% The suess of these agreements also hinges upon the preparedness of the
eonom# in the areas of Rules of Origin$ sensitive lists of the ountries$ issues on
agriultural% Again (hether South,South eonomi ooperation or -orth,South
eonomi ooperation (ill lead to greater eonomi ooperation though is a issue to
"e pondered "ut (hat seems reasona"le from eonomi perspetive that the -orth.
South trade is to flourish more as the Southern ountries are e*peted to gain more as
the agreements are e*peted to eventuall# lead to greater flo( of foreign diret
investment and "uild their apaities (hih fators the gro(th and development of a
ountr# and are not e*peted to "e the same in South, South trade % )o(ever it has
its o(n onse/uenes that the southern ountries ma# "e side lined in man# issues
and have to go for ommitments$ (hih at times are "e#ond their apaities% +ut
overall (hat seems rational that the ountries need to go for these agreements to
enhaner trade till mulitaralism gains pae one again%
%
I. Introduction
India is pic6ing #p stea* on its proposed bi-atera- agree*ents 3ith Association of So#th East
Asian Nations /ASEAN2 and So#th 7orea1 Other trade treaties in the pipe-ine inc-#de a
co*prehensi"e agree*ent on goods in"est*ent and ser"ices 3ith the E#ropean !nion and a
bi-atera- agree*ent 3ith 5apan1 .he proposed treaties 3hen seen in the bac6drop of the
fai-#re of the Doha ro#nd of 8or-d .rade Organisation /8.O2 ta-6s co#-d no3 *o"e faster1
India E#ropean !nion /E!2 and Bra9i- ha"e obser"ed that the !nited State:s /!S2 ref#sa- to
ta6e on co**it*ents for red#cing far* s#bsidies 3as pri*ari-y responsib-e for the co--apse
of the Doha Ro#nd of trade ta-6s at the 8.O1 Most other *e*bers inc-#ding the E! had
agreed to the c#ts proposed by India and the other de"e-oping *e*ber'co#ntries of the ,'%)
gro#p1 Enco#raged by the state*ent *ade at St1Petersb#rg by the E! and !S at the ,'&
S#**it to bring in *ore f-e$ibi-ities in their trade ta-6s the 8.O director'genera- Pasca-
;a*y had con"ened the ,'+ *eeting /co*prising the !S the E! Bra9i- India 5apan and
A#stra-ia2 in ,ene"a on %%'%( 5#-y %))+1 After the co--apse of trade ta-6s Mr1 7a*a- Nath
the Indian .rade and Ind#stry Minister has conceded <.here is no road*ap as of no3 for the
trade ta-6s1 .he ta-6s are s#spended1 .he 8.O ta-6s ha"e fai-ed=1 >e added that India 3o#-d
no3 foc#s on bi-atera- and regiona- trade pacts as <b#i-ding b-oc6s= for the *#-ti-atera-
trading syste* i1e1 0ultilateralising Regionalism1
a. Economics of Regionalism
a. Shallow Integration PTA/FTA

It is so*eti*es arg#ed that there is nothing in econo*ic theory that says that preferentia-
trade bet3een co#ntries 3ith -o3 e$isting -e"e-s of trade is beneficia-1 Many econo*ists s#ch
as 7r#g*an S#**ers 4ran6e- etc1 ha"e /erroneo#s-y2 arg#ed ?#st the opposite to defend and
pro*ote P.As bet3een co#ntries that a-ready trade a -ot 3ith each other1 .hey arg#ed that if
t3o co#ntries trade a -ot 3ith each other they are <nat#ra- trading partners= and trade
di"ersion d#e to tariff preferences bet3een the* is not of serio#s concern1 Bhag3ati and
Panagariya /1@@+2 ha"e offered a syste*atic ana-ysis of 3hy one cannot infer anything as
regards the 3e-fare i*p-ications of tariff preferences fro* the e$isting -e"e-s of intra'#nion
trade 3hether high or -o31 .heir critiA#e is genera--y accepted by the econo*ists co**#nity
and the b-an6et assertions that high initia- "o-#*es of intra'regiona- trade *a6e P.As *ore
-i6e-y to be 3e-fare i*pro"ing are no -onger co**on1
.h#s theory and e*pirica- -iterat#re does not pro"ide s#fficient e"idence as to 3hether
engage*ent into 4.AsBR.As by So#th 3ith North or 3ith So#th is *ore beneficia-1 8hat is
i*portant is that the co#ntry sho#-d be ab-e to i*pro"e its econo*y 3ith so#nd
*acroecono*ic f#nda*enta-s1 .his sho#-d be acco*panied by strong and efficient
infrastr#ct#re and instit#tiona- settings and 3e-- tho#ght o#t farsighted econo*ic po-icy
bac6ed by appropriate and adeA#ate research 3ith inp#ts fro* a-- re-e"ant sta6eho-ders1
b. Deep integration FTAs/RTAs
4or deep integration 4.AsBR.As by de"e-oping co#ntries 3hether 3ith de"e-oped or
de"e-oping co#ntries the prereA#isite is a strong and sensiti"e instit#tiona- str#ct#re efficient
and transparent ad*inistration and strong and s#stained po-itica- 3i-- 3hich are near-y absent
at present in *a?ority of de"e-oping co#ntries1 Moreo"er the e$isting *acroecono*ic
str#ct#re and the po-itica- en"iron*ent of these co#ntries do not per*it negotiations for deep
(
integration agree*ents1 >o3e"er 3hat is #rgent-y reA#ired at present for these co#ntries is to
3or6 rigoro#s-y and efficient-y to strea*-ine e$isting instit#tiona- ad*inistrati"e po-icy
fra*e3or6 to reap a-- benefits of sha--o3 integration #nder the 4.AsBR.As 3hich they ha"e
beenBare negotiating1
Box: 1 Deep Integration
Deep Integration: In econo*ic par-ance it indicates acA#isition of dyna*ic gains thro#gh
e$panded trade /both e$ports and i*ports2 a*ong the co#ntries1 It -eads to increase in the
econo*ic perfor*ance of the co#ntries fro* econo*ies of sca-e and increased intra'regiona-
in"est*ent after the f#-- -ibera-isation of goods and factor f-o3s in a sing-e *ar6et1 .he notion
is broad affecting *#ch econo*ic acti"ity both co**odity 3ise and sector 3ise in the
co#ntries1
i. India on Regionalism
India has been one of the %( origina- signatories to the Agree*ent estab-ishing the ,A.. in
1@CD1 Since then #pto no3 India has beenBis an ardent preacherBfo--o3er of the *#-ti-atera-
p-atfor* for trade -ibera-isation1 Pro*pted by the g-oba- 3a"e of preferentia- trading
arrange*ents and the e$tre*e-y s-o3 pace of progress of the *#-ti-atera- negotiations #nder
the aegis of the 8or-d .rade Organisation there is hard-y any co#ntry /-ate-y India as 3e--2 in
the 3or-d today 3hich is not e$p-oring s#ch arrange*ents1 .here are o"er %)) regiona- trade
agree*ents /R.As2 c#rrent-y in operationE*ore than the n#*ber of co#ntries E and it is
esti*ated that +)'D) percent of g-oba- trade 3i-- ta6e p-ace "ia s#ch pacts in the f#t#re1 .he
recent s#rge in regiona- trading agree*ents confir* 3hat Prof1 5agdish Bhag3ati once
re*ar6ed < regiona-is* this ti*e is here to stay for -ong=1 Not so -ong ago he c#rsed the* as
the spaghetti bo3- pheno*enon1
In the past India had adopted a "ery ca#tio#s approach to regiona-is* and 3as engaged in
on-y a fe3 bi-atera-Bregiona- initiati"es *ain-y thro#gh Preferentia- .rade Agree*ents
/P.As21 Recogni9ing that R.As 3o#-d contin#e to feat#re in 3or-d trade for a -ong ti*e and
3ith the intention of e$panding its e$port *ar6et India began conc-#ding in'princip-e
agree*ents as a possib-e step to3ards Co*prehensi"e Econo*ic Cooperation Agree*ents
/CECAs2 3hich co"er free trade in goods /9ero c#sto* d#ty regi*e 3ithin a fi$ed ti*e fra*e
on ite*s co"ering s#bstantia- trade and a re-ati"e-y s*a-- negati"e -ist of sensiti"e ite*s 3ith
no or -i*ited d#ty concessions2 ser"ices in"est*ent and identified areas of econo*ic
cooperation1 CECAs are in a 3ay in"o-"e <deeper integration= at the regiona- -e"e-1
a. The Free Trade Agreement FTA! Spree
.he trade agree*ents are ne3 pi--ars in India:s econo*ic dip-o*acy1 >a"ing rea-i9ed that free
trade pacts are a sine A#a non for the co#ntry:s econo*ic de"e-op*ent India has dra3n an
a*bitio#s agenda for negotiating trade and econo*ic cooperation agree*ents fro* co#ntries
in the 4ar East to those in ;atin A*erica and the E#ropean !nion1 India 3ants to en-arge its
trade and econo*ic engage*ent -i6e ne"er before and a ne3 thr#st has been gi"en by the
.rade and Econo*ic Re-ations Co**ittee /.ERC2 3ith Pri*e Minister Man Mohan Singh as
its chair*an 3ho be-ie"es that <.he ne3'fo#nd interest in regiona- arrange*ents is based
not ?#st on trade pro*otion b#t on e$p-oiting the potentia- of efficiency'see6ing restr#ct#ring
of ind#stry on a pan'regiona- basisF1
India has signed bi-atera- 4.As 3ith Sri ;an6a /1@@@2 .hai-and /%))C2 and Singapore
/%))G21 A-- these 4.As are no3 operationa-1 .he se"en *e*ber co#ntries of So#th Asian
C
Association for Regiona- Cooperation /SAARC2 signed the Agree*ent on So#th Asia 4ree
.rade Area /SA4.A2 in 5an#ary %))C1 Negotiations on a-- aspects of SA4.A 3ere conc-#ded
and the tariff -ibera-isation progra**e has been operationa-ised since 5#-y 1 %))+1
4ra*e3or6 Agree*ent on CECA 3ith ASEANH Bay of Benga- Initiati"e for M#-ti Sectora-
.echnica- and Econo*ic Cooperation /BIMS.EC2" MERCOS!REH So#th African C#sto*s
!nion /SAC!2H ,#-f Cooperation Co#nci- /,CC2 and Afghanistan 4.A on goods ser"ices
and in"est*ent are #nder negotiations1 5oint St#dy ,ro#ps ha"e been set'#p for 4.A
feasibi-ity 3ith respect to China 5apan So#th 7orea Chi-e Ma-aysia Indonesia and other
co#ntries1
b. The Roadblo#$s
D#ring the period bet3een 1@@& and %))G and especia--y after %))( India has aggressi"e-y
engaged herse-f in ta-6s for P.AsB4.As 3ith a -arge n#*ber of co#ntriesBregiona- gro#pings1
/Appendi$121 >o3e"er soon po-itica- press#re started b#i-ding #p against the P.AB4.A spree
-ead by the -osers1 Concerns 3ere raised by the do*estic ind#stry against indiscri*inate
opening #p of the Indian *ar6et to i*ports1 5oining the* the Congress President Mrs1 Sonia
,andhi "oicing the concerns of the distressed do*estic far* sector had as6ed for caref#-
ana-ysis /scr#tiny2 of 4.As before s#ch pacts are conc-#ded1 Sonia:s inter"ention /Sonia
Effect as the *edia ca--s it2 has in fact had ca#sed A#ite a f-#tter and the entire process of
India:s 4.A or regiona- trading agree*ent /R.A2 has been p#t on the bac6b#rner1
.he re-oo6 at 4.As fo--o3s the gro3ing rea-isation that benefits accr#ing fro* s#ch
agree*ents are s6e3ed against India in *ost cases1 .he ASEAN 4.A for e$a*p-e has a high
-e"e- of asy**etry1 .he Ma-aysian Instit#te of Econo*ic Research and the Indian Instit#te of
4oreign .rade ha"e bro#ght o#t this asy**etry c-ear-y in a ?oint st#dy #sing an !NC.AD
*ethodo-ogy and historic data to pro?ect f#t#re gains for the t3o 4.A partners ha"e fo#nd
<.he aggregate trade potentia- is esti*ated at I1%1@ bi--ion1 India:s trade e$port potentia- is
esti*ated at I%1D bi--ion 3hi-e that of Asean'G at I1)1% bi--ion 3hich gi"es a ratio of a-*ost
1JC1 Indonesia and the Phi-ippines 3o#-d be the *a?or beneficiaries1 .his is pres#*ab-y d#e
to their c#rrent -o3 base of e$port trade 3ith India 1.he trade potentia- esti*ates are based on
the !NC.AD *ethodo-ogy that probab-y has an o"er'esti*ation bias1 If the esti*ates are
do3n3ard ad?#sted e"en by G)K to ta6e care of the bias the gains are sti-- s#bstantia- at I+
bi--ion1 >o3e"er this does not *a6e a difference to the asy**etry aspect as it has been
capt#red in the for* of a ratio1
.op go"ern*ent f#nctionaries no3 fee- that it:s not ?#st a *atter of agric#-t#re 3here
-i"e-ihood and food sec#rity concerns are para*o#ntH 3e can:t afford to ha"e 4.As 3ith ,#-f
co#ntries or 3ith China1 If 3e in6 a dea- 3ith ,CC o#r indigeno#s petroche*ica- ind#stries
3i-- s#ffer a -ot1 And the 3orse 3i-- happen if 3e ha"e an R.A 3ith China 3hich 3o#-d o#t
co*pete Indian *an#fact#red prod#cts1 S#ch re*ar6s are nothing b#t the ref-ections of the
o-d *ind set of the b#rea#cracy 3hich 3i-- ta6e so*e *ore ti*e to 3ean off1 >o3e"er s#ch
opinions in the higher eche-ons of po-itica- po3er p-ay a critica- ro-e in po-icy for*#-ation1
.he po-icy prescription of the go"ern*ent at the *o*ent appears to go "ery se-ecti"e-y in
fa"o#r of CECA1 .he go"ern*ent has no3 de"ised a strategy to concentrate on trade
agree*ents 3ith those b-ocs 3hich don:t ha"e any direct co*petition 3ith Indian goods1 <8e
3o#-d -i6e to -a#nch the negotiation process 3ith E! in October this year1 India and E! don:t
ha"e direct co*petition as s#ch1 E!:s te$ti-e prod#cts *ay not affect #s at a-- beca#se those
are rea--y of "ery high "a-#e=1 In addition to E! India *ay sti-- be interested to sign dea-s
3ith 7orea and 5apan1 .he process *ay ho3e"er be s-o3 in the bac6drop of India' ASEAN
4.A sta-e*ate1

G
#. Domesti# Preparedness
As the debate o"er 3hether 4.As are in o#r interest re"erts to the Centre'stage the A#estion
to be as6ed is 3hether the pace at 3hich 3e are proceeding is *atched by interna-
preparedness1 Is there a rationa- assess*ent based on so#nd researchL Are the to#gh -essons
-earnt in the past being factored inL At sta6e are not on-y the pacts 3ith Asean b#t a-so those
on the an"i- 3ith 5apan China and So#th 7orea1
O#r e$perience 3ith the Sri ;an6a and .hai-and 4.As s#ggests inadeA#ate preparedness as
in defining r#-es'of'origin /ROO2 and assessing the effecti"e rate of protection for "ario#s
sectors1 As a res#-t 3e ha"e had to considerab-y *oderate the "a-#e'addition reA#ire*ent for
ASEAN in spite of prob-e*s d#e to si*i-ar -o3 specifications in pre"io#s 4.As1 .his *eant
ris6 of goods fro* third co#ntries getting d#ty'free access 3ith *ini*a- processing in the
partner co#ntry1 Post'4.A India:s i*ports fro* .hai-and and Sri ;an6a ha"e gone #p far
*ore than e$ports to the*1 .here are cases of other Asian co#ntries ro#ting prod#cts thro#gh
the t3o destinations1 .he ROO criterion "aries across co#ntries and *onitoring and
co*p-iance costs are "ery high1 8hi-e prod#ct'specific r#-es at disaggregated -e"e-s *ay be
better safeg#ards these reA#ire detai-ed ana-ysis1
Negati"e -ists are a h#ge point of contention at the *o*ent1 It is *ost -i6e-y the 1G)) strong
-ist in case of India'ASEAN 4.A co#-d on-y be pr#ned do3n to @)) or -esser /"ery recent-y
India #nder the threat has f#rther red#ced the -ist toG+) ite*s2 based on ad hoc ?#dg*ents1
Pro*pted by the India:s 3i--ingness to pr#ne the n#*ber of ite*s in the negati"e -ist 3ith the
ASEAN Singapore is pressing India to c#t do3n n#*ber of ite*s in the negati"e -ist by at
-east DG% *ore ite*s1 Agreed one cannot stretch the infant ind#stry arg#*ent beyond a point1
B#t gen#ine "#-nerabi-ities ha"e to be factored in 3hich ha"e to be bac6ed by so#nd
e*pirica- ana-ysis1 Of co#rse as India has co**itted to f#rther -o3er c#sto*s tariffs her
ind#stry *#st be prepared for co*petition1 >ere the i*port tariffs sho#-d be *ore in -ine
3ith Asean:sH e-se cost-ier i*port of inp#ts co#-d be a disad"antage1 4or sectors s#ch as edib-e
oi- spices tea 3e need to negotiate hard on -onger ti*e fra*es for d#ty c#ts and adeA#ate
safeg#ards1 .ho#gh it is tr#e that regiona- and bi-atera- pacts are the rea-ity today *#-ti-atera-
trade agree*ents are the tr#-y opti*a- ones1 Mean3hi-e to *a$i*i9e o#r gains a detai-ed
assess*ent'bac6ed positioning in contin#ing endea"ors on 4.As is of essence1
.h#s there is a c-ear need to stri6e a right ba-ance bet3een gen#ine-y'needed protection and
opening #p o#r negotiations need be bac6ed by a high -e"e- of do*estic preparedness1 .he
do*estic preparedness i*p-ies negotiation s6i--s of trade officia-s s#pported by so#nd
con"incing effecti"e -ogic and reasoning 3ith re-e"ant and adeA#ate data and research 3ith
inp#ts fro* a-- sta6eho-ders1 .his needs to be bac6ed #p by a strong po-itica- 3i-- and an
at*osphere created for accepting the -i6e-y changeBi*pact thro#gh p#b-ic *eetings *ass
*edia and po-itica- consens#s1 .he attendant econo*ic po-icy and instit#tiona- refor*s
appear to be sine A#a non for bi-atera-Bregiona- 4.As1
+
Box: % India & 'a(or Trade Agreements
1. Framewor$ Agreement on )omprehensi*e +#onomi# )o,operation between the
AS+A- and India: .he 4.A 3as signed in %))(1 ASEAN:s trade to India is at a "ery -o3
-e"e- acco#nting for on-y )1@ per cent of its g-oba- trade in %))% 3hi-e IndiaMs trade to
ASEAN co#ntries sti-- ho"ers aro#nd D per cent of its g-oba- trade1 >o3e"er the preferentia-
tariffs en?oyed by Asean *e*bers a*ong the*se-"es ha"e *ade IndiaMs e$ports to this region
#nco*petiti"e1 Asean is #n3i--ing to accept India:s fresh negati"e -ist in 3hich India offered
to red#ce the -ist fro* @@1 to &GC ite*s1 Asean proposing a negati"e -ist of +) ite*s
so*ething that is #ntenab-e to India gi"en the po-itica- sensiti"ities1 ASEAN a-so re?ected
India:s proposa- to #se tariff rate A#otas /.RNs2 for i*port of prod#cts -i6e pa-* oi- pepper
tea and coffee1
%. India.Srilan$a )omprehensi*e +#onomi# Partnership Agreement: .he IndiaESri
;an6a 4.A 3as signed on May %)))1 .he 4.A -ed increase in bi-atera- trade bet3een the
t3o co#ntries to to#ch t3o bi--ion do--ars in %))G1 I*ports to India of "anaspati Pepper
fro* Sri ;an6a 3hich 3ere a--o3ed d#ty free access is ho3e"er present-y being restricted
and India 3ants -o3er it to 1))))) *etric tonnes fro* %G)))) *etric tonnes a year1 .he
e$port of pepper fro* Sri ;an6a has a-so been restricted to %))) *etric tonnes a year fro*
D()) *etric tonne1 Other iss#es i*pacting the agree*ent inc-#ded to#gh RO reA#ire*ents
by India for so*e G+) Sri ;an6an prod#cts that set high -oca- "a-#e addition -e"e-s that Sri
;an6an *an#fact#rers find hard to *eet1 Sri ;an6a has a-so as6ed for d#ty free access for
se"era- pre'identified tariff -ines for appare- and deeper tariff c#ts on te$ti-es1 C#rrent tariff
preference for te$ti-es is %G per centH Sri ;an6a 3ants this to be deepened to G) per cent1
/. Framewor$ Agreement 0or establishing Free Trade between India and Thailand:
India'.hai-and trade agree*ent 3as signed in March %))( b#t the 4.A is yet to be
operationa-1 Indian cons#*ers hoped for cheaper co-o#r te-e"ision sets a#to parts and other
e-ectric goods 3hi-e .hai cons#*ers 3o#-d ha"e benefited fro* cheaper Indian agro
prod#cts1 .hai-and does not fig#re a*ong the .op %) trading partners of India1 It acco#nts for
on-y 11C per cent of India:s tota- *erchandise e$ports and for )1D per cent of India:s tota-
*erchandise i*ports1 .he negotiating parties of the t3o go"ern*ents are ho3e"er yet to
arri"e at an agree*ent on RO the n#*ber of ite*s in the <sensiti"e -ist= 3hich 3o#-d be
o#tside the scope of the 4.A1 India 3ants abo#t 1))) ite*s *ost cr#cia--y te$ti-es and a#to
co*ponents o#tside the 4.A p#r"ie3 3hi-e .hai-and has p#t its foot do3n to at *ost ())'
C)) ite*s *ost-y agro prod#cts1
1. India Singapore )+)A: .he Co*prehensi"e Econo*ic Cooperation Agree*ent /CECA2
3ith Singapore effecti"e fro* A#g#st 1 %))G is the first 3ith any co#ntry of India1 .he
agree*ent co"ers a 3ide ga*#t of areas -i6e trade ser"ices in"est*ent and ai*s at
enhancing bi-atera- regiona- and *#-ti-atera- ties1 In the CECA one of the 6ey iss#es is the
RO1 It too6 *#ch ti*e and negotiations before India and Singapore arri"ed at a co**on
position on RO in the agree*ent1 Most-y there is IndiaMs di-e**a that on one hand it 3ants to
-ibera-ise and beco*e a part of the process of g-oba-isation and on the other it fears that
opening #p its sectors 3o#-d f-ood its *ar6et 3ith cheap i*ports and pro"e disad"antageo#s
to Indian *an#fact#rers1
b. Agricultural Exports
4.As sho#-d pro"ide *eaningf#- access for 6ey agric#-t#ra- e$ports fro* de"e-oping
co#ntries shie-d poor prod#cers fro* disr#pti"e s#rges in i*ports and ref-ect food sec#rity
D
concerns #na*big#o#s-y1 4.As can pro"ide *ore co#ntry' and prod#cer'specific cooperation
to pre"ent poor prod#cers fro* being e$c-#ded fro* the *ar6et of the partner co#ntry1
4.As *ay pro"ide a better opport#nity for dea-ing 3ith iss#es 3hose technica- co*p-e$ity
i*pedes action at the *#-ti-atera- -e"e- s#ch as sanitary and phyto sanitary *eas#res /SPS2
and free access for agric#-t#ra- prod#cts of specia- e$port interest1 De"e-oped co#ntries can
pro"ide technica- and financia- assistance specia- faci-ities for testing and A#a-ity contro- and
*ore transparent and ine$pensi"e proced#res1 SPS pro"isions are fo#nd in a-*ost a--
agree*ents in Asia and e-se3here1 And *any 4.As inc-#de s#ch *echanis*s going beyond
the 8.O SPS Agree*ent designed to faci-itate appro"a- and to *ini*ise the trade'disr#pti"e
effect for non'appro"a-1
.he *ain iss#e affecting agric#-t#ra- trade the *assi"e s#bsidies app-ied by de"e-oped
co#ntries to their prod#ction and e$port doesn:t -end it to bi-atera- so-#tions1 De"e-oping
co#ntries: atte*pt to identify prod#cts dee*ed *ost cr#cia- for food sec#rity and -i"e-ihood
concerns and ens#re that they are inc-#ded on a -ist of e$ceptions /sensiti"eBnegati"e -ist21
Many 4.As inc-#de in addition to the standard safeg#ards a specia- agric#-t#ra- safeg#ard
c-a#se that borro3s e-e*ents of Artic-e G of the 8.O Agree*ent on Agric#-t#re1 8hi-e there
is no agree*ent on this in the Doha Ro#nd negotiations on agric#-t#re it is a de*and that
de"e-oping co#ntries 3i-- ha"e reco#rse to the <specia- safeg#ard *echanis*= and 3i-- be
ab-e to e$c-#de a -ist of <specia- prod#cts= It 3o#-d see* #n-i6e-y that de"e-oping co#ntries
3o#-d gi"e #p si*i-ar rights in bi-atera- 4.As
II. Rules of Origin
R#-es of Origin /ROO2 ens#re that i*ports fro* third parties do not benefit fro* negotiated
preferentia- treat*ent1 .here are three basic *ethods of deter*ining ROO for goods na*e-y
"a-#e'added changes in tariff c-assification and process definitions and often co*binations
of these1 Each *ethod has an econo*ic i*pact often pec#-iar to specific sectors1 .he 8or-d
Ban6 considers that restricti"e ROO can easi-y 3ipe o#t any *argin of preference generated
by an 4.A /8or-d Ban6 %))G p1+&'D)2 In e$tre*e cases as in te$ti-es and c-othing ROO can
be #sed to create capti"e *ar6ets for e$porters of ra3 and se*i'finished prod#cts1 .here is no
sing-e r#-e of origin fo#nd in 4.AsH rates are set at bet3een () and +) percent /of -oca-
content or "a-#e'addition reA#ire*ents2 depending on the prod#cts1 .his prod#ct'specific
approach is co*p-e$ 3ith a range of for*#-ae and tests app-ying to tho#sands of different
prod#cts in the parties: tariff sched#-es1 S#ch an approach *ay pro"ide opport#nities to
i*pose protection at e"ery point1
Beca#se ;DCs genera--y -ac6 *an#fact#ring and process capacity re-a$ed ROO can pro"ide
*eaningf#- Specia- and Differentiated .reat*ent /S&D.2 in their fa"o#r1 .hey tend to
respond fa"o#rab-y to s#ch concessions as indicated by the response of fo#r Asian ;DC
appare- e$porters to Canada after its Mar6et Access Initiati"e for ;DCs 3as -a#nched in %))(1
8ithin Asia ;DC *e*bers of SA4.A 3ere per*itted to en?oy a -oca- content reA#ire*ent
that 3as 1) percentage points -ess than stip#-ated for *ore ad"anced parties /C) percent "s1
() percent21 B#t genera--y ROO has been "ery contentio#s in 4.A negotiations1 .he India'
.hai-and 4ra*e3or6 Agree*ent pro"ides interi* ROO for Ear-y >ar"est -ist b#t -ea"es the
fina- ROO for f#t#re negotiation1 .he difference bet3een the parties is that .hai-and is
insisting on an across'the'board C) percent "a-#e'added r#-e 3hi-e India see6s that this be
s#pp-e*ented by an >S'C digit tariff ?#*p approach /si*i-ar to its 4.A 3ith Singapore21
ROO ha"e a-so fr#strated the .hai 4.A negotiations 3ith 5apan 3here 5apan is see6ing *ore
stringent criteria in the agric#-t#re and fisheries sectorsJ for e$a*p-e fish 3o#-d ha"e to be
ca#ght in .hai or 5apanese 3aters 3ith DG percent of cre3 *e*bers of .hai nationa-ity1

Regard-ess of the stringency of the ROO an additiona- barrier to trade is presented si*p-y by
the #se of different ROO in different 4.As1 .he -e"e-s of -oca- content and the #se of tariff
&
?#*p criteria "ary considerab-y1 .h#s the c#sto*s ad*inistration can be ob-iged to app-y
*any different ROO to assess 3hether the sa*e prod#ct A#a-ifies for preferentia- treat*ent
depending on its so#rce1
.he "ariety of ROO on ser"ices appears as co*p-e$ as for goods1 ROO for the ser"ices sector
are based on the definition of ser"ice pro"ider or nat#ra- person in"o-"ed in the pro"ision of
the ser"ices1 4or a nat#ra- person the definition is based on nationa-s or per*anent residents
of a co#ntry1 It sho#-d be noted the India'Singapore 4.A paraphrases ,A.S Artic-e O b#t
pro"ides *ore stringent r#-es for sensiti"e sectors s#ch as a#dio'"is#a- financia- ed#cation
and te-eco**#nications ser"ices 3here the additiona- criterion of citi9enship is added1
III. SouthSouth and !orthSouth Agreements:
.he *oot A#estion 3hether a regiona- 4.A is *ore beneficia- and 3or6ab-e 3hen for*ed
bet3een de"e-oping co#ntries /i1e1 so#th'so#th2 or bet3een de"e-oping and the de"e-oped
co#ntries /north'so#th2 .ho#gh there is no conc-#si"e e"idence abo#t it ho3e"er 8or-d
Ban6 ca#tions against So#th'So#th R.As in fa"o#r of North'So#th R.As1 Notab-e differences
are e*erging bet3een North'So#th bi-atera- agree*ents and So#th'So#th arrange*ents1
North'So#th agree*ents are considerab-y *ore a*bitio#s in content and co"erage than
So#th'So#th arrange*ents and reach deep behind the border to inc-#de ser"ices protection of
in"est*ent r#-es and inte--ect#a- property rights1
a! So2th,So2th Agreements
So*e So#th'So#th agree*ents are better at foc#sing on *erchandise trade *ini*ising
e$c-#sions adopting -ess restricti"e RO and -o3ering the border costs1 >o3e"er So#th'
So#th Agree*ents ha"e not adhered to i*p-e*entation sched#-es and they s#ffer fro* their
s*a-- *ar6et si9e and econo*ic si*i-arity and a-so rare-y pro"ide for the te*porary
*o"e*ent of -abo#r1
.he sha--o3 integration R.As in"o-"ing *ost of the So#th'So#th 4.As and preferentia- trade
agree*ents are beset 3ith prob-e*s re-ating to their i*p-e*entation1 One of the reasons being
that parties to s#ch agree*ents ha"e not been transparent and open e"en a*ong the*se-"es1
8e--'designed agree*ents are of -i*ited "a-#e if they are not i*p-e*ented and *any R.As
ha"e *ore -ife on paper than in rea-ity1 .he g-aring e$a*p-e is that of SA4.A 3hich 3as
negotiated after -abyrinthine de-iberations o"er a-*ost a decade facing ro#gh 3eather since
the start fro* day one1 Pa6istan is "io-ating Artic-e %( of SA4.A by -i*iting trade 3ith India1
A -ot of ti*e effort and good faith 3ere in"ested 3hi-e negotiating SA4.A1 A-- that effort has
no3 beco*e infract#o#s beca#se Pa6istan has no intentions to hono#r an #nderstanding
so-e*n-y agreed to by a-- *e*ber co#ntries1 Pa6istan has neither reciprocated the M4N stat#s
to India /a binding condition #nder 8.O Agree*ent as both are its *e*bers2 and is stic6ing
to a positi"e -ist /as against a s*a-- sensiti"e -ist as agreed in the Agree*ent21 India has been
arg#ing that SA4.A 3o#-d -ag behind other regiona- organisations if it did not fo--o3 the
process of regiona- cooperation and econo*ic integration ta6ing p-ace in other regiona-
gro#pings1
Monitoring *echanis*s are often inadeA#ate and do not recei"e the s#stained high'-e"e-
po-itica- attention necessary to dri"e instit#tiona- i*pro"e*ents in for e$a*p-e adherence to
tariff red#ction sched#-es c#sto*s and border crossing1 .he effecti"eness of R.As is
se"era--y constrained by se"era- factors 3hich inter a-ia inc-#de the fo--o3ingJ conc-#sion of
agree*ents 3itho#t a fran6 disc#ssion of different approaches to the RO /3hich are cr#cia- to
deter*ine the e-igibi-ity of prod#cts and ser"ices for preferentia- treat*ent2H i*position of
non'trade barriers s#ch as technica- and phytosanitary standards and restriction of ports of
i*portsH "ag#eness in respect of enforce*ent agencies in *e*ber'co#ntriesH #nd#-y -ong
Pnegati"e -ists: of e$c-#ded prod#ctsH and abo"e a-- fai-#re to appreciate the need for gi"e'
@
and'ta6e1 In case of SA4.A the inabi-ity to p#t aside po-itica- differences is another *a?or
h#rd-e1 If they are to ser"e their proc-ai*ed ob?ecti"es R.As reA#ire a *odic#* of tr#st and
good3i-- bet3een *e*bers1
An in*erted d2t3 str2#t2re occ#rs 3hen the i*port d#ty on the ra3 *ateria- is higher than
that of the finished prod#ct or inter*ediates1 .he ,o"ern*entMs decisions to enter into
*#-tip-e free trade agree*ents often res#-t in sit#ations of in"erted d#ty str#ct#re for the
do*estic ind#stry1 .he do*estic ind#stry has been high-ighting that in"erted d#ty str#ct#re is
pre"a-ent in seg*ents s#ch as tyres co-o#r te-e"isions and cons#*er e-ectronics /3ith
especia- reference to the India'Singapore 4.A and India'.hai-and 4.A21 In the case of
"anaspati prod#cts fro* Sri ;an6a #nder the India'Sri-an6a 4.A one obser"es a si*i-ar
distortion1 One of the reasons for this pheno*enon is that trade negotiators are dispersed in
the Co**erce Ministry and hence 3hat is being done by those 3ho hand-e non'*#-ti-atera-
trade accords are not the sa*e peop-e 3ho hand-e M4N negotiations1 After so*e h#e and cry
the go"ern*ent is no3 addressing the prob-e*1
b! -orth,So2th Agreements
North'So#th agree*ents in genera- score better on i*p-e*entation than So#th'So#th
agree*ents1 Beca#se North'So#th agree*ents can integrate econo*ies 3ith distinct
techno-ogica- capabi-ities and other different factor proportions and beca#se they #s#a--y
res#-t in -arger post'agree*ent *ar6ets the potentia- gains are #s#a--y greater1 >o3e"er
tighter ROO *ore restricti"e e$c-#sions for partic#-ar sectors /s#ch as agric#-t#re2 and a
preocc#pation 3ith r#-es not ca-ibrated to de"e-op*ent priorities can #nderc#t these benefits1
North'So#th agree*ents partic#-ar-y those 3ith the !nited States ha"e been *ore effecti"e
in -oc6ing in ne3 ser"ices -ibera-isationH they ha"e pressed inte--ect#a- property rights beyond
the 8or-d .rade Organisation /8.O2 ob-igationsH and e$panded the sphere of in"est*ent
protectionH b#t they contain fe3 pro"isions to -ibera-ise the te*porary *o"e*ent of -abo#r1
Many de"e-oping co#ntries be-ie"e that ha"ing an 4.A 3ith de"e-oped co#ntries 3i-- res#-t in
/*#ch a3aited2 increased in"est*ent f-o3 b#t the e*pirica- basis for this "ie3 is
#ncon"incing1 .he 8or-d Ban6 points o#t that <co#ntries that had conc-#ded a Bi-atera-
In"est*ent .reaty /BI.2 3ere no *ore -i6e-y to recei"e additiona- 4DI than 3ere co#ntries
3itho#t s#ch a pact=1 /8or-d Ban6 %))G p1@& and 1%@21 !NC.AD:s 8or-d De"e-op*ent
Report %))( a-so states that an aggregate statistica- ana-ysis does not re"ea- a significant
independent i*pact of BI.s in deter*ining 4DI f-o3s1 >o3e"er the <fear of e$c-#sion=
3or6s 3e-- in this area as those o#tside the 4.As are concerned that 4DI 3i-- be concentrated
in those co#ntries that sign 4.As 3ith the de"e-oped co#ntries1 B#t Nobe- ;a#reate 5oseph
Stig-it9:s re*ar6s are 3orth *entioning here <that for *ost /de"e-oping2 co#ntries bi-atera-
4.As *ere-y represent Pfa-se hopes and drea*s: for a torrent of in3ard in"est*ent=1
Box: / -orth,So2th FTAs
1. 4S,5ordan Free Trade Agreement: .he !nited States and the >ashe*ite 7ingdo* of
5ordan 4.A entered into force on %))11Since the agree*ent:s i*p-e*entation the appare-
*an#fact#ring ind#stry has boo*ed 3ith e$ports to the !nited States tota--ing I11% bi--ion in
%))Gor %) ti*es higher than %))11 >o3e"er the 4.A is not rea-ising its f#-- potentia-1 !1S1
and 5ordanian trade pri"i-eges depend #pon *#t#a- enforce*ent of do*estic -abo#r -a3s and
obser"ance of -abo#r standards described in the Internationa- ;abo#r Organi9ation:s
Dec-aration on 4#nda*enta- Princip-es and Rights at 8or61 In %))G tota- bi-atera- trade
increased by 1D1D percent o"er %))C reaching !S I 11@ bi--ion1 4or the sa*e period e$port to
the !S by 5ordan increased by 1G1@ percent1 .he ratio of e$port /do*estic and re e$port2 to
the !S to 5ordan:s 3or-d e$port increased fro* (1& percent in %))) to %@1+ percent in %))G1
1)
I*ports fro* the !1S1 increased by 1+1D percent co*pared to %))C 3hi-e i*ports fro* the
3or-d increased by %&11 percent1
%. 4S,)hile Free Trade Agreement: .he !S'Chi-e 4.A entered into force on 1 5an#ary
%))C and is the first co*prehensi"e 4.A signed bet3een the !SA and a So#th A*erican
go"ern*ent1 .i-- that date tariffs on @)K of !1S1 e$ports to Chi-e and @GK of Chi-ean
e$ports to the !nited States 3ere e-i*inated1 In the three *onths fo--o3ing the entry into
force of the !S'Chi-e 4.A tota- !S e$ports to Chi-e increased by %C percent co*pared
3ith the sa*e period of %))( gro3ing fro* I+1D1%@ *i--ion to ID++1D@ *i--ion1 !S
e$ports of *an#fact#red goods to Chi-e increased considerab-e1 Partic#-ar-y strong gro3th
3as registered in e$ports of constr#ction eA#ip*ent *edica- eA#ip*ent and paper1
E$ports of !1S1 agric#-t#ra- goods a-so gre3 by %%1+ percent fro* I%%1++ *i--ion to I%D1DD
*i--ion in the recent years1 !1S1 goods e$ports in %))C 3ere I(1+ bi--ion #p ((1G percent
fro* the pre"io#s year1 Corresponding !1S1 i*ports fro* Chi-e 3ere IC1D bi--ion #p %D1&
percent1
/. +4,+g3pt Free Trade Agreement: .he E!'Egypt 4.A ca*e into effect on 5#ne %))C1 E!
offers c-ose to free access for ind#stria- goods to Egypt1 .he E! is Egypt:s -argest trading
partner1 .ota- trade in %))( a*o#nted to *ore than I1) bi--ion1 Agric#-t#re *ade #p -ess than
1)K of tota- E! i*ports fro* Egypt1 .his is indeed an i*pro"e*ent as agric#-t#ra- i*ports
ha"e gro3n by G)K since %))) 3hi-e tota- i*ports gre3 ?#st %)K1
1. +4 So2th A0ri#a Free Trade Agreement: So#th Africa is the E!:s -argest trading partner
in S#b'Saharan Africa1 A-tho#gh So#th Africa is a *e*ber of the ACP ,ro#p of co#ntries the
.rade De"e-op*ent and Co'operation Agree*ent /.DCA2 that 3as signed in October 1@@@
go"erns its re-ationship 3ith the E! bi-atera--y1 Agric#-t#ra- prod#cts *a6e #p 111GK of a--
E! i*ports fro* So#th Africa1 8hi-e tota- i*ports ha"e increased %+K since %)))
agric#-t#ra- i*ports ha"e increased by GGK o"er the years1 E! e$ports to So#th Africa ha"e
increased as 3e-- C)1%K for tota- e$ports and %@1GK for agric#-t#ra- e$ports in the c#rrent
years1
6. +4 )aribbean +#onomi# Partnership Agreement +PA!: .he third phase of the
EPA negotiation bet3een the E! and Caribbean region has been initiated1 .he Econo*ic
Partnership Agree*ents are the trade and de"e-op*ent agree*ents that the E#ropean !nion is
c#rrent-y negotiating 3ith the + African Caribbean and Pacific /ACP2 regions to create a
sing-e Caribbean *ar6et1 .he third phase has -a#nched negotiations on the te$t of a fina-
agree*ent enco*passing the contin#ed integration of the Caribbean regiona- econo*y and
access to the E#ropean goods and ser"ices *ar6et1 Phase t3o of the EPA process in the
Caribbean 3as foc#sed on creating the conditions for regiona- integration and attracting ne3
regiona- in"est*ent and trade1 In phase three 3i-- a-so carry on the 3or6 of agreeing the ter*s
of *ar6et access for the t3o regions1 .he E! 3i-- see6 to f#rther i*pro"e the *ar6et access
a-ready e$tended to ACP co#ntriesH @DK of ACP i*ports a-ready enter the E! d#ty and tariff
free1
a. "he Policy Options
.he best option for de"e-oping co#ntries -i6e India is to pro*ote *#-ti-atera- trade
negotiations #nder the aegis of 8.O1 .here cannot be a better defence than 8.O for
these co#ntries1
.he present econo*ic and po-itica- conditions of de"e-oping co#rtiers do not fa"o#r
for any deep integration R.As1 .ho#gh the deep integration sho#-d be the #-ti*ate
11
goa- ho3e"er before e*bar6ing #pon it the reA#isite do*estic refor*s are to be
#nderta6en to rea-ise f#-- benefits1
India being a -arge *#-ti'party de*ocratic co#ntry pop#-ar po-itica- s#pport and
reso-#tion of the sta6eho-ders: concerns are #rgent-y reA#ired for *#ch a3aited
econo*ic refor*s hindering disin"est*ents and foreign in"est*ent and bring in
-abo#r and -ega- refor*s c#rtai-ing fisca- deficits f-e$ib-e and transparent ta$ regi*e
etc for 3hich the go"ern*ents both at the Centre and the States ha"e to engage
different po-itica- parties in nationa- consens#s b#i-ding on econo*ic refor*s thro#gh
infor*a- *eetings p#b-ic debates se*inars streetBcorner *eetings etc1 .he ci"i-
society organisations acade*ics and *ass *edia sho#-d be enco#raged to p-ay
greater effecti"e positi"e ro-e in this endea"o#r1 .hese efforts are needed to c-ear the
pre"ai-ing thic6 air of s#spicion and fear and po-itica- opposition 3hich is fo#nded in
*any cases d#e to -ac6 of #nderstanding inadeA#ate research opaA#eness in decision
*a6ing process and pop#-ar e*otiona- senti*ents e$p-oited by "ested interests1
De"e-oped co#ntries on their part sho#-d he-p create conditions for deep integration
by de"e-oping co#ntries thro#gh a f-e$ib-e attit#de1 .hey need to assist the* in
capacity b#i-ding and techno-ogica- #p gradation1 .hey sho#-d red#ce far* s#bsidies
protecting their far*ers 3hich #nder*ine the co*petiti"e ad"antage and restrict
*ar6et access for de"e-oping co#ntries1
4or *a6ing 4.AsBR.As beneficia- the contracting parties sho#-d ha"e *ini*#*
ite*s in their sensiti"eBnegati"e -ists1 De"e-oping co#ntries sho#-d ha"e on-y those
co**oditiesBser"ices in their negati"e -ists 3hich are re-ated to the food sec#rity and
-i"e-ihood concerns inc-#ding nationa- sec#rity concerns1 De"e-oped co#ntries on
their part sho#-d not ha"e any negati"e -ist at a-- as they are ab-e to disp-ay greater
negotiating po3er and s6i--s especia--y at the bi-atera-Bregiona- -e"e-s1
.here is no conc-#si"e e*pirica- e"idence as to 3hether for*ation of 4.ABR.A by
the de"e-oping co#ntries 3ith de"e-oping co#ntries andBor 3ith de"e-oped co#ntries
or a co*bination thereof is *ore or -ess beneficia- to the partners1 B#t perhaps the
8or-d Ban6 has right-y opined that So#thENorth 4.As are *ore beneficia- to
de"e-oping co#ntries1 So India sho#-d go ahead 3ith the idea of for*ing an 4.A 3ith
the E!1 .ho#gh this reA#ires s#bstantia- research to esti*ate costs and benefits
ho3e"er 3hate"er -itt-eBscanty research findings a"ai-ab-e -ends s#pport for for*ation
of the India'E! R.A1
I#. $onclusions
8hether regiona- 4.As contrib#te to or #nder*ine the *#-ti-atera- trading syste* depends on
specific contents of each agree*ent1 .he origina- *oti"ations of *ost regiona- integration
efforts 3ere po-itica-1 .hese tendencies persist and are *ore apparent in bi-atera- 4.As1
Regiona-is* is a E#ropean in"ention1 Bhag3ati has #sed the ter* <spaghetti bo3-= to portray
3hat appears to be an incoherent often o"er-apping and see*ing-y rando* *a9e of 4.As1
.he h#b'and'spo6e ana-ogy is a-so #sed to describe the conste--ation of agree*ents centred
aro#nd the E! and the !S1 S#ch a config#ration can *argina-i9e the <spo6es= so the choice
of the Asia'Pacific co#ntries to acti"e-y pro*ote 4.As is part-y *oti"ated by the desire to
a"oid beco*ing <?#st= a spo6e /8or-d Ban6 %))G p1C)21 >o3e"er 4.As ha"e beco*e a too-
to p#rs#e A#ite coherent g-oba- po-itica- strategies by *a?or trading co#ntries engaged in the
<great ga*e= on the 3or-d stage1 !nfettered by *#-ti-atera- constraints *a?or po3ers are
p#rs#ing geopo-itica- ob?ecti"es thro#gh bi-atera- and regiona- trade negotiations 3hi-e
1%
s*a--er co#ntries str#gg-e to ens#re that their "ita- sectora- e$port interests are protected1
/!NDP %))G P11+21
1(
Appendix 1
India7s )2rrent FTA/RTA +ngagements
)o2ntr3 Partner Stat2s o0 the -egotiation Agreement T3pe
India ASEAN Negotiation in progress Bi-atera- 4.A
India Afghanistan %))( Bi-atera- R.A
India Bang6o6
Agree*ent
1@DG Regiona- .rade Agree*ent
India Bang-adesh Negotiation in progress Bi-atera- 4.A
India Bh#tan 1@@G Bi-atera- 4.A
India BIMS.EC %))C Regiona- .rade Agree*ent
India Chi-e Negotiation in progress Bi-atera- 4.A
India China !nder st#dy Bi-atera- 4.A
India Egypt Negotiation in progress Bi-atera- .rade Agree*ent
India ,CC !nder st#dy Bi-atera- 4.A
India ,S.P 1@&@ Inter'Regiona- .rade
Agree*ent
India Indonesia !nder st#dy Bi-atera- 4.A
India Ma#riti#s !nder st#dy Bi-atera- 4.A
India MERCOS!R %))G Bi-atera- 4.A
India Nepa- 1@@+ Bi-atera- 4.A
India SAARC /SA4.A2 %))+ Regiona- .rade Agree*ent
India SAC! Negotiation in progress Bi-atera- 4.A
India Singapore %))G Bi-atera- 4.A
India Sri ;an6a 1@@& Bi-atera- 4.A
India .hai-and %))( Bi-atera- 4.A
Soure: U-D1$ T)2 3R2AT 0A42 Regional and +ilateral 'TAs in Asia$ Trends$ Charateristis$
and &mpliations for )uman Development: 1oli# 1aper$ Asia,1aifi Trade and &nvestment &nitiative$
U-D1 Regional Centre in Colom"o$ Deem"er 5667$ Ta"le 8$ 1p%58,59%
1C
Re0eren#es
a% De Me--o 5ai*e & Ar"ind Panagariya The -e( Regionalism in Trade
1oli#$ an &nterpretive Summar# of Conferenes$ .he 8or-d Ban6 &
Centre for Po-icy Research /Page C2 1@@%
"% Mehta S1 Pradeep Competition Regimes in the World .A Civil Soiet#
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