Enclavisation of
International Trade (TPP/TTIP/RCEPs) posing much greater threat to WTO as the
emphasis has moved away from Tariffs. How far can Multilateralism and thus WTO
stay relevant when such Plurilateral arrangements loom large over WTO's future?
very good qn...with one small correction the focus has moved
away from tariff is not entirely true...anyways lets take the larger argument
which will answer this qn as well
are regional trade agreements threat to wto?...arent they
violating the fundamental principle of national treatment and equal
treatment...and prevent evolution of a single global market?
this was the traditional understanding about regional trade
agreements...it gives advantage to a select few countries over others and hence
negates the basic tenet of WTO....they r seen as a threat to WTO because the
countries gain what they could gain from WTO through these arrangements itself
and have much less to give back or lose in regional agreements than in
WTO...This wud curtail the incemtives they have to join WTO or to negotiate to
execute it ...for these reasons regional agreements r seen as anti WTO
Arguments r thr which state these regional trade agreements
are stepping stones to reach a global market. reasons are:
1.
a country which is insulated gets used to
opening its market...in the domestic economy they get used to outside
competition and it kind of sets the ground... ie..basically the principle of
open competition gets acceptance...with WTO it wud be anybody and with RTAs it
wud be selct few countries...thats all..its the scale which varies but
principle is same
2.
its easy to settle discrepancies at regional
level than at global level...because u can focus....its like attending one
issue at a time...trouble shoooting them so that when the flood gates are
opened u have already handled most of the probable issues....for eg...INDIA
ASEAN trade agreement...INdia gained in terms of services but indian rubber
exporters were affected and they opposed...INdian govt was able to handle it as
they cud focus on the issue...also negotiating with a smaller group for
specific issues like this is easy....give and take is easier...
3.
morover these agreements are eveolving between
countries which have real trade....say whats the possibilty of srilanka trading
with peru or something like that...when u say WTO u r trying to solve all
issues at a time...it has to be accpetable to all....but these regional
agreements r between countries which r already involved in real
trade....right?...so it is argued that RTAs r stepping stones to WTO...or say
WTO getting executed in phases
again these r view points from both sides of the
debate....but steeping stone argument has gained more currency of late...
Sir didnt understd
difference between multilateralism and pluralist arrangements? Are they same?
In this context Multilateral means universal ie includes
everyone...plurilateral means its again a group of many but not all...WTO is
multilateral...ASEAN is plurilateral...
there is this book by john baylis and steve smith "the
globalization of world politics"...a must read for political science and
IR students...for others go to a library get the book and photocopy select
chapters...they have a brilliant chapter on WTO and RTAs....and few more which
r very relevant for all....i think its avail as pdf too
Can we conclude
regional trade can be dettrimental to wto,, bcoz mostly its worked on consensus
basis
There r arguments on both the sides...u can list them and
state whats going on...in these qns thr is no need to tell categorically whats
right or wrong...nothing is...thats the fact of life :)....
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