BIMSTEC to miss FTA enforcement deadline
2006-05-03
BIMSTEC to miss FTA enforcement deadline
Kantipur Report
KATHMANDU, May 4 - BIMSTEC, a bloc of seven countries from South and Southeast Asia, is all set to miss the date of implementing free trade accord, as differences on terms of trade is still wide and members have been failing to convene to discuss those.
The members, through the first Summit of the bloc held about two years ago, have agreed to put the bloc’s FTA in place from July 2006.
"The scheduled meeting of the bloc, which was supposed to finalize the crucial issues of the FTA arrangements, has been postponed yet again," said a government source.
He added that the postponement has raised serious questions over the finalization of the FTA accord on time, thereby posing threat to the timely enforcement of the accord.
Nepal, India, Bangladesh, Bhutan, Sri Lanka, Myanmar and Thailand - the members of BIMSTEC - had earlier agreed to hold the meeting in April.
The trade negotiation committee (TNC), a body authorized to finalize the framework agreement of the FTA, was mandated to finalize the accord for trade in goods by April.
However, the TNC has yet to settle key trading arrangements such as rules of origin, negative list for tariff reductions and list of items to be opened under the fast track of trade liberalization program.
Negotiation on a separate framework of dispute-settlement mechanism too is also due.
Besides FTA on trade in goods, BIMSTEC members have agreed to enforce the FTA agreement on trade in services and investment from July 2007. Negotiations to finalize its framework has just commenced from 2006.
The FTA on trade in goods would be implemented under ’fast track’ and ’normal track’ of trade liberalization.
In the fast track of liberalization, the members are required to bring down tariffs in a range of zero to 5 percent as agreed upon by June 2009 for developing countries and June 2011 for least developed countries.
In the normal track, however, they will follow a gradual tariff liberalization programs. The developing countries will have to comply with it by June 2010 for each other and 2012 for least developed members.
While for LDC members, the compliance deadline is July 2017 for developing countries and June 30, 2015 for others.
