Beruflich Dokumente
Kultur Dokumente
Aparna Sawhney
Centre for International Trade and Development, JNU
Format of presentation
I. Looking at Asia and SAARC from without
- vis a vis the multilateral trading systems and other regional blocs
Asia
N America Europe Africa Middle East South-Central America CIS
2000
2005
Asia North America Europe Africa Middle East South Central Amercia CIS
2000
Aparna Sawhney, CITD, JNU
2005
In particular, South Asias share in global trade is a little over 1% Share in global merchandise exports increased from 0.9% in 1995 to 1.2% in 2005 Share in global commercial services exports increased from 0.87% in 1995 to 2.5% in 2005
Regionalism and production network across countries is increasingly reflected in the preferential rules of origin governing world trade:
- E.g. South Asia is recognized as a bloc in Europes GSP regional cumulation - applies to SAARC member countries (EC regulation 881/2003)
The world recognizes the potential strategic significance of a South Asian bloc
- keen participatory interest of the US, South Korea and EU in SAARC (to be observers, China & Japan became observers in 2005)
But in the regionalism race, SAARC is a veritable tortoise compared to the EU - latter looked beyond political differences + promoted cooperation in target economic sectors.
ITC-ICRIER, 28th March 2007 Aparna Sawhney, CITD, JNU
Despite slow progress of SAARC, launching of SAPTA and SAFTA in 1995 & 2006 resp. are political breakthroughs
ITC-ICRIER, 28th March 2007 Aparna Sawhney, CITD, JNU
Restrictions contained in the trade agreements SAPTA & SAFTA (e.g. limited
product coverage, existence of negative list, restrictive rules of origin and destination)
ranked 139th in the world ease of trading across borders compared to China at 38th.
All liberalization/ FTAs will fail to boost economic activities if conducting business is difficult.
ITC-ICRIER, 28th March 2007 Aparna Sawhney, CITD, JNU
Maldives 0%
India 79%
Services sector not covered in current trade agreements. Yet in Asia, the South Asian sub-region has a relatively larger share in services export compared to merchandise
For 22 years, Indias strategy in South Asian integration has been driven by her perception of gains, and based on reciprocity, despite her size advantage Positive experience in Sri Lanka-India FTA should encourage India to make a more aggressive move in promoting integration in South Asia
its own economic dynamism and size of its market urgent need to alleviate persistent poverty (47% of South Asians live on less than $1/day) and combat the growing terrorist threat
(development of the entire region necessary to improve living conditions inclusive growth.)
scope for greater FDI for the SAARC countries with a more stable and business conducive South Asia. all SAARC economies have been pursuing liberalization (minimizes risk of trade diversion) dynamic trade gains & overall positive experience with bilateral FTA with Sri Lanka
Aparna Sawhney, CITD, JNU
Concluding Remarks
Greater integration among SAARC countries critical for integration with greater Asia (connectivity aspect)
SAARC nations have been looking outwards evident from bilateral FTAs for greater flow of trade, commerce and investment across Asia.
Opportunity for India to demonstrate commitment to regional cooperation as incoming chair of SAARC
Aparna Sawhney, CITD, JNU