South Asia: Multilateral trade agreements and untapped regional trade integration

2020 ◽  
Author(s):  
Rakesh Kumar
Keyword(s):  
South Asia ◽  
Trade Agreements ◽  
Trade Integration ◽  
Regional Trade ◽  
Multilateral Trade

Impact of Belt and Road Initiative on India-south Asia Regional Trade Integration

2021 ◽  
pp. 9-14
Author(s):  
Mst. Sahiba Mahbub
Keyword(s):  
South Asia ◽  
South Asian ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Chinese Government ◽  
Belt And Road Initiative ◽  
Trade Integration ◽  
Regional Trade ◽  
Belt And Road ◽  
Integration Strategies

Belt and Road Initiative (BRI) is a standout amongst the latest and remarkable regional economic integration strategies of Chinese government. This initiative incorporates South Asia which is a piece of Asian territory. From past researches we came to know that regional trade intensity among south Asian nations is low. The majority of the analysts finished up by computing the general list at beneath 0.5. Notwithstanding various multilateral and reciprocal Free Trade Agreements (FTA) exchange coordination did not increment attractively. India has reciprocal FTAs with every south Asian nation. Also this sub region is among the significant exchange accomplices of India. There are double suppositions of India about Chinese BRI initiative. In this research we found an answer of an inquiry that, regardless of whether BRI has sway on trade coordination among India and south Asian nations. We utilized a blended gravity model equation from Hayakawa et.al (2015) and Weerehewa (2009) inquire about papers to assess the aftereffects of variables.

What Does Gravity Model Reveal About SAFTA?

2010 ◽  
Vol 6 (3) ◽  
pp. 185-197
Author(s):  
Renu Verma ◽  
Jaidev Dubey
Keyword(s):  
Sri Lanka ◽  
South Asia ◽  
South Asian ◽  
Regional Cooperation ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Asian Countries ◽  
The South ◽  
Regional Trade ◽  
Multilateral Trade

During last decade, the stalemate in multilateral trade negotiations under the framework of World Trade Organization (WTO) regime has provided impetus to the signing of regional trade agreements world over .South Asia is not an exception to this trend and has been involved in setting up its own bilateral and Regional Trade Agreements (RTAs). Most commonly cited cooperation agreements are Agreement on Trade and Commerce between India and Bhutan(1972), India-Nepal Bilateral Trade and Transit Treaties(1991), India–Sri Lanka Bilateral Free Trade Area(1998) Bangkok Agreement (1975),  Bangladesh, India, Myanmar, Sri Lanka, Thailand Economic Cooperation (BIMST-EC-2004) and the Indian Ocean Rim Association of Regional Cooperation (IOR-ARC-1997). One of  the most significant steps  towards regional economic cooperation in the history of South Asian countries, was taken with signing of The South Asian Association for Regional Cooperation (SAARC) formed in 1985 with the objective of exploiting “accelerated economic growth, social progress and cultural development in the region” for the welfare of the peoples of South Asia. And then seven South Asian countries—Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka—initiated a framework for region-wide integration under the South Asian Preferential Trade Agreement (SAPTA) in 1995. In order to further cement the regional economic relations and overcome some impediments of SAPTA, the South Asia Free Trade Agreement (SAFTA) was signed in early 2004, which came into force on 1st July 2006. The SAFTA is a parallel initiative to the multilateral trade liberalization commitments of the South Asian Association for Regional Cooperation (SAARC) member countries. SAFTA aims to reduce tariffs for intraregional trade among the seven SAARC member countries. It has been agreed that for the South Asian countries, Pakistan and India will eliminate all tariffs by 2012, Sri Lanka by 2013 and Bangladesh, Bhutan, Maldives and Nepal by 2015. The current paper is an attempt in assessing the potential trade in the region with latest dataset  with Gravity model approach.

The future of global trade and the WTO

foresight ◽  
2014 ◽  
Vol 16 (2) ◽  
pp. 109-125 ◽  
Author(s):  
Jean-Pierre Cling
Keyword(s):  
International Trade ◽  
World Trade ◽  
World Economy ◽  
Trade Agreements ◽  
Power Relationship ◽  
Trade Integration ◽  
Regional Trade ◽  
Content Type ◽  
Multilateral Trade ◽  
The World

Purpose – The global governance of trade is in a deadlock and the WTO is suffering from a long standing crisis of legitimacy. This paper aims to analyse the main issues which might influence the governance of world trade from now until 2030 and present quantitative projections of international trade. Design/methodology/approach – The research on the main issues which might influence the governance of world trade from now until 2030 draws on a detailed analysis of the WTO and trade policies. Four scenarios of the world economy are presented, which are derived from the international AUGUR research project “Challenges for Europe in the world in 2030” coordinated by Paris Nord University. The analysis takes into account econometric forecasting of world trade conducted in the framework of this project. Findings – First, the failure of the Doha Round of multilateral trade negotiations to reach its ambitious agenda derives from the discrepancy between the governance of world trade and the new power relationship prevailing in the world economy, with new emerging powers (China, India, etc.) rapidly increasing their share of world trade. Second, the continuous restructuring of world trade and economy, which goes together with new forms of globalization, will increase pressure for a profound reform of the governance of world trade in the next few years. Research limitations/implications – This paper calls for a reform of world trade governance, especially of the missions of WTO within a renovated economic world order. Future research could investigate more deeply the potential for regional trade integration, which is reinforced by international production networks. Regional trade agreements might be an increasing alternative to multilateral trade agreements. Originality/value – This paper brings new ideas by raising the issue of the governance of world trade using a prospective approach, with the aim to identify the key channels through which international trade integration will impact the world economy. This study bases its analysis on potential scenarios from now on until 2030, each of these scenarios corresponding to a specific institutional configuration.

scholarly journals Regional trade and investment value chains in South Asia: Perspectives from Pakistani enterprises

2019 ◽  
Vol 1 (2) ◽  
pp. 165-180
Author(s):  
Syed Shujaat Ahmed ◽  
Asif Javed ◽  
Rabia Manzoor
Keyword(s):  
South Asia ◽  
Regional Integration ◽  
Single Channel ◽  
Political Stability ◽  
Business Community ◽  
Value Chains ◽  
Trade Integration ◽  
Regional Trade ◽  
Investment Volume ◽  
Trade And Investment

Background: South Asian countries still maintained barriers to trade including regulatory restrictions on Foreign Direct Investment, non-tariff barriers and lack of banking channels. These restrictions are not only affecting the regional trade integration but also affecting the transfer of skills and technology among the member countries. Objectives: This study examines the factors that are inhibiting the development of regional integration for Pakistan in South Asia. Methods: The study conducted interviews of business community in Karachi and Peshawar regarding regional trade, investment and value chains. Result: The results pointed out that political difference with neighboring countries affect the regional integration in the form of lower trade and investment volume. Engaging in value chains is a way forward to promote trade flows and regional integration which will be beneficial for the trading partners in terms of economic growth and employment. Conclusion: Pakistan contains weak investment outlay in South Asia as currently investment agreements with only Bangladesh and Sri Lanka existed. The reasons for lower FDI inflows in Pakistan include lack of political stability, inadequate infrastructure and non-transparent government regulations. Implications: This study provides tentative picture of regional trade and investment in South Asia and the result generated can be used by concerned authorities, investors of those areas. Recommendations: Simplifications in investment laws, piracy of intellectual property, relaxing current account restriction and single channel for streamlining information regarding support, opportunities, investment and market rules and regulations can enhance the investment volume.

Regionalism as a Building Block for Multilateralism

2011 ◽  
Vol 11 (1) ◽  
pp. 1850217 ◽  
Author(s):  
Bernhard Herz ◽  
Marco Wagner
Keyword(s):  
Trade Liberalization ◽  
Building Blocks ◽  
Trade Agreements ◽  
Regional Trade Agreements ◽  
Impulse Response Functions ◽  
Model Framework ◽  
Regional Trade ◽  
Data Set ◽  
Multilateral Trade ◽  
Multilateral Trade Liberalization

The well-known question whether regional trade agreements (RTAs) and the multilateral trading system (MTS) are “strangers, friends, or foes” (Bhagwati and Panagariya, 1996) has gained new importance with the widespread proliferation of RTAs in recent years. Based on an extensive data set which covers most of world trade over the past 60 years and about 240 regional trade agreements, we analyze the relationship between RTAs and the MTS by combining the gravity model framework with vector auto-regression analysis. Impulse-response-functions robustly suggest that multilateral trade liberalization responds in a significantly positive way to regional trade liberalization. We also find robust evidence that RTA liberalization Granger-causes GATT/WTO liberalization. Thus, our results indicate that RTAs do not undermine the MTS but serve as building blocks to multilateral trade liberalization.

scholarly journals THE GROUNDS OF PROTECTIONISM IN INTERNATIONAL TRADE IN THE 21st CENTURY IN THE CONTEXT OF MULTILATERAL TRADE NEGOTIATIONS

2021 ◽  
Author(s):  
Agnieszka Piekutowska ◽  
Keyword(s):  
21St Century ◽  
Trade Agreements ◽  
Regional Trade Agreements ◽  
Complex Data ◽  
Doha Round ◽  
Negative Consequences ◽  
Regional Trade ◽  
Multilateral Trade ◽  
Multilateral Negotiations ◽  
Wide Range

As the importance of tariffs diminishes, to avoid underestimation, analysis of the dynamics of protectionism implies the use of more complex data. Hence, this research explores the Global Trade Alert database, which covers a wide range of measures used by countries within trade policy. Once the dynamics of protectionism in trade is presented, the analysis of its grounds might be undertaken to answer the question: what are the reasons for high levels of protectionist tendencies in the 21 st century? Is this a post-crisis repercussion only? Or is the failure of multilateral negotiations under the auspices of the WTO which, in turn, makes space for increased levels of protectionism? While many analyses highlight the indisputable impact of the crisis on the growing protectionist tendencies in the 21 st century, it has been over ten years since the crisis, which requires a search for alternate or additional premises. The hypothesis was therefore adopted that the failure of multilateral negotiations within the Doha Round may make space for increased protectionism in the 21 st century. Taking into consideration all of the negative consequences of protectionism, the analysis of its causes has a justification. Successful treatment requires a diagnosis of the sources of the problem; only once these are identified can an appropriate action be undertaken. The main conclusion from the research is that because of the diversification within the WTO, the multilateral liberalization agenda has been limited. Hence, “next generation” issues are addressed elsewhere, like within regional trade agreements, which, as a result, became very popular after 2001. However, RTAs should not be perceived as an alternative to liberalization under the auspices of the WTO, as they are not free from protectionist tendencies.

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