BIMSTEC trade negotiation to begin today
Kathmandu Post, Nepal
BIMSTEC trade negotiation to begin today
20 December 2005
KATHMANDU, Dec 20 - Trade officials from seven South and Southeast Asian countries are convening in the capital from Wednesday for the 10th BIMSTEC Trade Negotiation Committee (TNC) meeting to finalize a free trade accord on trade in goods.
The TNC meeting, will also see officials start negotiations on FTA accord on service trade and investment, a senior government official told the Post.
So far, the TNC has been negotiating on provisions related to trade in goods only, as enforcement of FTA on trade in goods has been agreed from July 2006, a year earlier than the date of enforcement of FTA on trade in services.
"As a number of issues on commodity trade remains unsettled, negotiations on it will continue. We will also start negotiations on rules for service trade and investment," said the source. The negotiation is being done as per plans adopted by the TNC earlier.
The 10th TNC, according to the official, will mainly focus on slashing the negative list items to 20 percent of the total items traded in the region. It will also discuss issues such as trade facilitation and customs cooperation.
"The members will also exchange the list of products, which they will subject to fast track of tariff liberalization indicating that the remaining commodities will be subjected to the normal track of trade liberalization," said the source.
Although such exchange was scheduled for the eighth round, it has still not happened due to additional time sought by some of the members. Nepal has already forwarded its list.
In the FTA on trade in goods, the members have agreed to open trade under the ’fast track’ and ’normal track’ of trade liberalization.
Under the fast track of liberalization, the members are required to slash tariffs directly in a range of zero to 5 percent as agreed upon, while in the normal track, they will follow a gradual tariff liberalization program.
Furthermore, task force meetings of rules of origin (RoO) and dispute settlement mechanism will also be held parallel to the TNC to speedily settle differences.
So far, the members have agreed to put in place two separate RoO provisions - general rule for all products and product specific rule (PSR) for certain specified products.
While negotiation on PSR is still to gather momentum, members opine differently over the appropriate value addition criteria for the general rule.
Moreover, there are still some difference of opinions among members on providing derogation on RoO to least developed members. Nepal has sought 10 percent derogation on general rule of value addition, which apparently is likely to be set at 40 percent.
Also, it has sought special derogation for certain specified products for LDCs.
"On negotiation on dispute settlement mechanism, which is close to finalization, the members are expected to agree on formation of high-level arbitrary council to oversee trade related disputes," the source stated.
Nepal, India, Bangladesh, Bhutan, Sri Lanka, Myanmar and Thailand are members of BIMSTEC.
