WTO Members Review Four Minor RTAs between Developing
Countries
WTO members reviewed on 29 September four regional trade agreements
concluded between developing countries at a dedicated session of the Committee on
Trade and Development
The peer
review of regional trade agreements among developing countries is carried out as
part of the WTO's Transparency Mechanism
for Regional Trade Agreements. Although deviating from the
WTO principle of non-discrimination, these agreements are allowed under the WTO 1979 Enabling Clause to help
developing countries meet their development objectives and further integrate into
the global economy. The consideration is based on a factual presentation prepared
by the WTO Secretariat and
questions and replies between WTO members.
The Chair
of the Committee, Ambassador Mohammad Qurban Haqjo of Afghanistan, urged the parties of the regional trade
agreements notified under the Enabling Clause to submit to the Secretariat the necessary
data and information to allow the preparation of the remaining factual presentations.
The full
list of notified regional trade agreements between WTO members can be found here.
The agreement
between the Southern Common Market (MERCOSUR) comprising Argentina, Brazil, Paraguay
and Uruguay, and the Southern African Customs Union (SACU) comprising Botswana,
Lesotho, Eswatini, Namibia and South Africa, entered into
force in April 2016. Since then, Argentina, Brazil, Paraguay and Uruguay liberalized
respectively 16.2 per cent, 15.8 per cent, 24.6 per cent and 23.5 per cent of their
tariffs on imports from the SACU members. Duties on over 63 per cent of SACU members'
tariff lines on goods from MERCOSUR were either eliminated or reduced. The agreement,
which aims to promote bilateral trade flows, also contains provisions on rules of
origin, safeguard measures, dispute settlement procedures
and customs cooperation.
The parties
noted that in 2017, MERCOSUR countries were SACU's ninth largest source of imports
and 27th destination for exports. SACU members were MERCOSUR's 33rd largest source
of imports and destination for exports in 2017.
The agreement
between the Association of Southeast Asian Nations (ASEAN) and Korea entered into
force in 2007. It provides for Korea to eliminate over 76 per cent of its tariffs
on imports from ASEAN countries and for ASEAN members to eliminate between 85 per
cent and 100 per cent of their tariffs on imports from Korea. The agreement also
includes provisions on rules of origin, safeguards and transparency. The agreement
on trade in services was considered in the Committee on Regional
Trade Agreements in 2018.
The parties
explained that trade between ASEAN and Korea has increased by over 178 per cent,
from over USD 56 billion in 2006 to over USD 156 billion in 2019. Speaking on behalf
of ASEAN, Thailand noted that Korea is ASEAN's fifth largest trading partner and
tenth largest source of foreign direct investment.
The agreement
entered into force in May 2003. Its objective is to expand trade and economic relations
between the two parties by removing barriers to trade in goods and ensuring fair
conditions of competition. The agreement also contains provisions on rules of origin,
safeguards, including for balance of payments reasons, and dispute settlement.
The parties
noted that Afghanistan eliminated tariffs on eight lines covering tea, sugar, certain
medicinal products and cement and India eliminated tariffs on 42 lines and reduced
tariffs on a further 31 lines by 50 per cent.
Egypt
joined the Common Market for Eastern and Southern Africa (COMESA) in February 1999.
Although not yet operational, the customs union was launched in June 2009. As a
result, tariffs on trade between Egypt and other COMESA member states were eliminated
for some parties and reduced for others. The agreement also includes provisions
on rules of origin, customs-related procedures and cooperation on different issues,
among other topics.
Egypt
said that joining COMESA was part of its ambition to further its economic integration
at regional and continental levels and that the trade bloc was at the forefront
of such developments in Africa.