BIMSTEC to set up body for FTA enforcement
Kathmandu Post, 14 Oct 2005
BIMSTEC to set up body for FTA enforcement
POST REPORT
KATHMANDU, Oct 14 - The ongoing eighth meeting of BIMSTEC trade-negotiation committee (TNC) has decided to set up a separate body to oversee the enforcement of free trade accord among the seven member states once it is finalized.
The body will exist as a joint committee of senior officials from the member countries to oversee the implementation and review progress of the FTA agreement, reported agencies quoting Bangladeshi officials.
The meeting had commenced on October 10 in Dhaka, the Bangladeshi capital city, and will last for six days. Some 50 senior officials from seven South and South East Asian countries are participating in the negotiation, which is expected to iron out numerous provisions of free trade accord for trade in goods through the meeting.
Nepal, India, Bangladesh, Bhutan, Sri Lanka, Myanmar and Thailand are the members of BIMSTEC. The TNC is a body authorized to finalize the framework agreement of the FTA, which was ratified in February 2004. The accord has separate framework for trade in goods and trade in services and investments.
The eighth meeting is scheduled as the third-last meeting for the TNC to finalize the FTA accord on trade in goods, as the members have already agreed to implement it from July 2006.
According to the agencies, the negotiations so far have dwelt on provisions related to the safeguards and anti-dumping measures. The trade experts are further negotiating on sensitive lists, lists of products to be opened under the fast track of trade liberalization and rules of origin.
Negotiations on a separate framework of dispute-settlement mechanism too were held during the first four days of the meeting.
Besides FTA on trade in goods, the BIMSTEC members have agreed to enforce the FTA agreement on trade in services and investment from July 2007. Negotiations to finalize its framework has been agreed to commence from 2006.
The FTA on trade in goods would be implemented under the ’fast track’ and ’normal track’ of trade liberalization.
In the fast track of liberalization, the members would bring down the 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 each other.
