Saturday, December 31, 2011

Free Trade the proliferation of agreements creates new opportunities

The current proliferation of free trade agreements, bilateral and regional trade is a new phenomenon

Everyone knows that the "development round". The Doha Round launched in November 2001 in the wake of the September 11 attacks to balance the economic and free trade relations between emerging and developed countries has since repeatedly interrupted and now seems stalled. The consequences of a failure of the WTO negotiations would certainly be disastrous for multilateral-ism in a tough economic climate in which art here and there a temptation of protectionism free trade

It is not clear that these consequences are too heavy for tariff reductions. Indeed since nature abhors a vacuum the bilateral or regional preferential agreements seem to have taken over from multilateral negotiations. Over a hundred agreements have been signed or renegotiated during the past 10 years whether unilateral as the Community GSP (generalized system of preferences was renewed late 2010) or reciprocal agreements such as free trade .

The "great" Asian Theater of these special agreements
The "great" Asia is going to Indonesia to Korea was the scene of special agreements. The desire for regional integration is at the origin of the free trade agreement - ACFTA (ASEAN-China Free Trade Area) - signed in 2004 between China and its partners in ASEAN (Association of Southeast Asian East). He joined in early 2010 a decisive phase by eliminating customs duties for more than 90% of revenue. This free trade area is now the first in the world by the number of inhabitants and the third by value of free  trading.
This agreement is far from isolated. ASEAN has signed other called to enter into force gradually over the next 15 years that between the ASEAN countries themselves (2010) with India (2021), Japan (2026) and Korea (2018). India has in turn signed February 2 current free trade agreements with Japan and Malaysia. For the latter the goal is to double free  trade in record time by 2015. The European Union is no exception, despite the failure of negotiations in July 2007 with seven of the 10 ASEAN countries and finally suspended in late 2009 because of difficulties related to the heterogeneity of the area. She preferred bilateral negotiations with Singapore and Malaysia which should result in 2011 in conjunction with the agreement with Canada. The agreement with South Korea approved February 17 with a safeguard clause shall enter into force in principle in July 2011. 

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