...ABC of Preferential Trade Agreements Frequently Asked Questions Monographs on Globalisation and India Myths and Realities, #14 ABC of Preferential Trade Agreements Frequently Asked Questions Monographs on Globalisation and India Myths and Realities, #14 Published by CUTS Centre for International Trade, Economics & Environment D-217, Bhaskar Marg, Bani Park Jaipur 302 016, India Email: citee@cuts.org Website: www.cuts-international.org/www.cuts-citee.org Researched and compiled by Kritika Kapil* Printed by Jaipur Printers P. Ltd. Jaipur 302 001 © CUTS International, 2009 * Research Assistant, CUTS CITEE Niru Yadav, Senior Research Associate, CUTS International contributed to this Monograph. #0914 Contents Preface .......................................................................................................... i Introduction ............................................................................................... iii 1. 2. 3. 4. 5. 6. 7. 8. 9. What is a PTA? What are the Different Types? ............................ 1 What has led to the Growth of PTAs? .......................................... 5 How have PTAs Evolved? ............................................................ 6 How are PTAs Inconsistent with GATT Rules? ............................ 9 What are Rules of Origin? ........................................................... 11 What are Negative and Positive List Approaches? ..................... 13 What are the...
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...speeds up the free trade agreement between China and Australia. By the increasing globalisation which results from the „merging of historically distinct and separate national markets into one huge global market", the significance of free trade agreements is getting more and more important between the countries to remain competitive and to participate in the progress. (textbook S.12). Given that China is Australia´s most important trading partner, this assignment picks out as a central theme “The economic impacts of an Free Trade Agreement between Australia and China and shows in particular the effects for the domestic industry and for the international industry. What is a Free Trade Agreement (FTA)? Free Trade means „the absence of barriers to the free flow of goods and services between countries“. (Textbook S.76). Another definition says that “Free Trade refers to a situation in which a government does not attempt to restrict what its firms and citizens can buy from or sell to another country”. (Textbook S.119). A Free Trade Agreement is consequently a contract which is concluded between two or several countries to establish a free trade area in which trade in goods and services can be conducted across their borders, without tariffs or obstacles (e.g. ban on imports/exports). Previous bilateral economic relationship and agreements between Australia and China: The basis for the bilateral trade and economic relationship was the signing of the “1973 Trade Agreement between the Government...
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...Free Trade Agreements in Australia’s economy Name: Institution: School: Date: Free Trade Agreement (FTA) Free trade agreement (FTA) is described as a treaty between two or more countries so as to create a free trade area. The free trade involves commerce in goods and services being carried out across the borders without any hindrances. The FTA always involve around the playing around with the tariffs. In an FTA agreement between two countries or more the tariffs are made common, that is, uniform tariffs among them and with other non-member countries. In FTA, the labor and capital may not move freely. Baykitch and Sladojevic (2015) explains that when an FTA agreement is made the countries or the companies involved the deal may not be welcomed by either the parties involved but when they both work towards it the realization of the agreement it becomes easy. It is also beneficial to both the countries because it enables the citizens to move freely for the betterment of the economy (Baykitch and Sladojevic 2015). China – Australia Free Trade Agreement An example of FTA agreement is the recent china-Australian agreement. The FTA agreement is considered to be beneficial to Australia in very many ways. Ball says that given that China has a population of above 13 million it opens the market for the Australian products. China is also the second-largest economy in the world's considering that is also an important manufacturing hub for the world products. It was important...
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...Comprehensive Economic Trade Agreement vs. Trans-Pacific Partnership Which new trade agreement will help Canada grow and prosper its economy better? The Comprehensive Economic Trade Agreement (CETA) or the Trans-Pacific Partnership (TPP). The Canadian Government continues to increase its free trade agreements with growing economies across the globe. These new trade agreements are very controversial and not everyone approves of the new partnerships. In the term paper I will be discussing which trade agreement, CETA or the TPP is more beneficial for the Canadian economy by comparing and contrasting the two agreements. The CETA is a proposed new trade agreement between Canada and the European Union (EU). The CETA still has to be approved by the European Parliament and the European Council. If the approval of the CETA goes through, the CETA is supposed to have a greater economic impact than the North American Free Trade Agreement (NAFTA) between Canada, the United States of America, and Mexico that was implemented on January 1, 1994. Once the CETA is implemented in 2016, it will remove 98% of the tariffs between Canada and the countries representing the European Union. The TPP is another trade agreement consisting twelve nations around the Pacific Rim including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam. The trade agreement will allow the twelve nations to access markets with removing tariffs...
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...I believe the recent developments with regards to the US stepping away from Trade agreements is doing the economy more harm than good. The main idea is to reduce trade deficits that have been caused by these supposedly ‘horrible’ deals. The proposed exit from NAFTA and TPP negotiations further fragments International Trade between the US and other nations. But in parallel comparison, China is preparing to enter several mega-deals and are expecting huge successes in the coming years. One of the proposed deals is the “Regional Comprehensive Economic Partnership between China and 15 other Asian nations including India”. The US is shifting from agreements with Asia whiles the rest of Asia comes together to empower themselves through trade deals....
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...FTA Rules Question #2 Since January 1st, 1994 all FTA rules were replaced by NAFTA rules of origin. They differ in the respect that they are much clearer and predictable than those of the FTA. Similar to the FTA each member country of NAFTA is able to keep in use its own external market tariff. This external tariff can be in the form of a most favoured nation (MFN) tariff in which the NAFTA would extend only to good that have originated in a NAFTA member country. In contrast to the FTA, the NAFTA provides specific preferential tariff treatment for not only some but ALL North American goods traded across Canadian, U.S. and Mexican borders. The rules of origin in the NAFTA are specifically used to determine the credibility of whether or not a product can be declared as originating in North America. In addition, NAFTA rules of origin strictly ensure that the benefits are available only to those good which meet specific rules of transformation. Specifically for apparel the NFTA provides more stringent rules of origin compared to the FTA. In contrast to the FTA the NFTA requires that the yarn, fabric and garment in ALL be made in North America in order to meet specific rules of origin that qualify them for NAFA preferential duties. Therefore any goods from all three NAFTA member countries that are wholly sourced or manufactured in the three countries are deemed originating goods that are entitles to preferential tariff treatment...
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...1. Mexico has always portrayed itself as one of the most pro-trade countries in the world. For instance, we have a free trade agreement with the United States and Canada, and another one with the European Union. We are active members of the WTO, the OECD, the APEC, the Pacific Alliance, and have also signed multiple bilateral agreements with many nations, most of them deemed “strategic”. Answer the next two questions in your own words: a. What are the potential costs and benefits of adopting such a free-trade strategy? The benefits when a country trades freely with other nations, consumers in that country have access to a wider variety of products. Some of these products may not otherwise be available if the consumers were limited to domestically manufactured goods. Or these products may be prohibitively expensive without a free trade arrangement. Also can boost the quality of life along the countries' shared border. This is the case with the Texas-Mexico border. After the creation of NAFTA, the area servicing the transfer of goods between the U.S. and Mexico experienced an economic boom. Five years after the free trade agreement, John Adams Jr., vice chairman of the Industry Sector Advisory Council, noted that this border area was growing economically at a faster rate than any other region on the planet. And the potential costs U.S. exports tend to create jobs in this country, but increases in imports tend to reduce jobs because the imports displace goods that...
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...nation's economy can profit by both bringing in and trading merchandise. International Trade otherwise called global exchange, is basically the import and fare of merchandise and enterprises crosswise over universal limits. Imports are the products and enterprises that go into a nation available to be purchased. Exports are the merchandise and ventures that leave a nation available to be purchased in another nation. The result of transactions between at least two independent countries that direct the terms of the worthy trade of merchandise and enterprises between the companies or country is called Trade Agreement. Canada and Mexico have develop their relationship as to be a vital key accomplices that offer progressing exchange and engagement. Their synergistic effort are sought after through an assortment of means, extending from intermittent abnormal state...
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...States and South Korea trade agreement In nation trade each trading partner has something to gain, such as access to more goods , services and lower prices. The United States and South Korea established the world’s largest bilateral trade agreement. The proposed deal reduced tariffs on about 90 percent of product categories prior to the agreement. Trade deals require all parties to make concessions, which united state and South Korea did. Asian nation was the third-largest market for U. S. beef exports. But American beef exports plunged after an outbreak of mad-cow disease in 2003 which scared the Asian nations. In the spring of 2008, a few weeks after taking office, President Lee Myung-bak decided to lift a ban on U.S. beef in return to the United States agreed to exclude South Korea’s rice industry from the trade agreement. Rice represents about half of South Korea’s agricultural output a high import tariff means that local rice farmers can charge For U.S. President George W. Bush, the trade pact with South Korea was an important political victory. Suspicion and doubt about trade and globalization was growing among congressional democrats. Proposed trade pacts with Colombia and Panama had been given a cool reception. Although the accord with South Korea was concluded in April 2007, it still had to be ratified by lawmakers in both countries. In 2009, a South Korean parliamentary committee approved the (free trade area) FTA; however, it...
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...Тhе Nоrth Аmеriсan Frее Тradе Аgrееmеnt сrеatеd a prеfеrеntial tariff arеa amоng thе Unitеd Ѕtatеѕ, Canada, and Mеxiсо bеginning оn January 1, 1994. Hоwеvеr, thе drivе fоr rеgiоnal есоnоmiс сооpеratiоn had bеgun aѕ еarly aѕ 1851 with bilatеral frее tradе nеgоtiatiоnѕ bеtwееn thе Unitеd Ѕtatеѕ and Canada. А frее tradе arеa invоlving thе Unitеd Ѕtatеѕ and all оf Latin Аmеriсa waѕ advосatеd by U.Ѕ. ѕесrеtary оf ѕtatе Jamеѕ Blainе in 1881. Тhе firѕt ѕuссеѕѕful еffоrt, hоwеvеr, waѕ thе landmark 1965 agrееmеnt that allоwеd duty-frее tradе in autоmоbilеѕ and оriginal еquipmеnt partѕ bеtwееn thе Unitеd Ѕtatеѕ and Canada. Тhе rеѕulting еxplоѕiоn оf tradе in thе autо ѕесtоr--frоm $625 milliоn in 1964 tо оvеr $40 billiоn (abоut a third оf tоtal U.Ѕ.-Canadian tradе) by 1984--mоtivatеd thе Canada Unitеd Ѕtatеѕ Тradе Аgrееmеnt (CUЅТА), whiсh еxpandеd frее tradе tо mоѕt есоnоmiс ѕесtоrѕ bеginning in 1989. Mоѕt оf CUЅТА'ѕ prоviѕiоnѕ wеrе rеtainеd in NАFТА, whiсh tооk еffесt in 1994 aftеr ratifiсatiоn prосеѕѕеѕ in all thrее соuntriеѕ rеvеalеd соnѕidеrablе publiс unеaѕinеѕѕ оvеr iѕѕuеѕ соmmоnly aѕѕосiatеd with thе dilеmmaѕ оf tradе. (Ѕtеphеn J. Randall, Hеrman W. Kоnrad, 1995). Аlthоugh ѕоmе оf thе mоtivatiоnѕ fоr CUЅТА/NАFТА parallеl thоѕе оf thе EU, bоth thеir prоviѕiоnѕ and thе inѕtitutiоnal ѕtruсturеѕ that ѕuppоrt thеm arе vaѕtly diffеrеnt. NАFТА iѕ indiѕputably an есоnоmiс agrееmеnt, laсking bоth thе brоadеr ѕосial and pоlitiсal ѕwееp оf thе EU--it соntainѕ nоthing rеѕеmbling thе EU'ѕ...
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...Executive Summary Traditionally, Australia-China trade & economy was simple. Australia met the demand for raw material for China’s manufacturing & China exporting back to Australia its finished manufactured goods. Thus China-Australia became each other’s largest trading partners. Now that China’s economy is affected, less spending on infrastructure the demand has shifted from raw materials & commodities to other specialized manufactured equipment, services like health, education, financial, engineering, agriculture etc. for which Australia has to change gears to gain distinctive advantage to its other competitors. However in Chinese economy there still exists substantial market for Australian commodities, such as wool, wines, wheat, minerals & iron ore, as Australia has advantage of nearness by sea for the shipping lines. The Free Trade Agreement is a win-win situation as Australia can easily meet the changed needs of Chinese for sophisticated medical goods & services in Health, Social Security, Human Resources, Banking, Education, Legal, Agriculture, Winery & Dairy. China’s economic woes & slowdown in addition to general economic slump has impacted Australia hard, specially the mining cum trading houses at present. This impact is not limited to just Australia but whole of Asia-Pacific, lain America & Canada. Thus to conclude, there are some positives about the Australian economy as GDP growth is up from the last year & China needs Australia, as it shall always...
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...Roledany David International Marketing Case 3-2 US and South Korea Sign Free Trade Agreement Many may ask why nations trade with each other. The answer to that question is that it provides those nations access to more goods and services at much lower prices. Whenever nations trade amongst one another, there are always winners and losers. The side who stands to win if congress ratifies the US-Korea free trade agreement would be Korea. The side that would stand to lose would be the United States. In the United States the United Auto workers supported Korea trade deal. It was mostly due to the fact that they wanted to have the ability to export a large amount of vehicles and have many of the tariffs that were in there way removed. They see it as a landmark trade deal. Companies such as Ford were very disturbed by their limitations prior to the removal of the tariff. There are many reasons as to why the Global Automotive Industry was a lot of the time at the center of disagreements over trade relations. One of the reasons is that a reduction in South Korea’s tariffs would boost exports from the United States by 11 billion each year. Many US automakers stand to benefit from improved access to 48 million people. They show one of the largest interest because they have a large amount they could lose if things don’t go there way and a lot to gain if things go their way. They show the largest financial gain from a deal than many other American companies that have interest in trading...
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...------------------------------------------------- AGREEMENT IN RESTRAINT OF TRADE CONTRACTS TABLE OF CONTENT * INTRODUCTION * TYPICAL RESTRICTIVE CLAUSE * KINDS OF RESTRAINT * RESTRAINT OF TRADE UNDER THE COMMON LAW * EMPLOYER MUST HAVE A VALID INTEREST * RESTRAINT MUST BE REASONABLE * EXCEPTION * CONTRACTS OF EXCLUSIVE DEALING * RESTRAINTS ON SONGWRITERS AND OTHER ENTERTAINERS * IS RESTRAINT GOOD OR BAD FOR HEALTHY BUSINESS? * CONCLUSION ABSTRACT Agreement in restraint of trade is defined as the one in which a party agrees with any other party to restrict his liberty in the present or the future to carry on a specified trade or profession with other persons not parties to the contract without the express permission of the latter party in such a manner as he chooses. In other words “one in which a party agrees with any other party to restrict his liberty in the future to carry on trade with other persons who are not parties to the contract in such a manner as he chooses”. INTRODUCTION This research work deals with an area of law which under classical contract theory brought two principles into direct conflict. On the one hand, classical theory endeavoured to promote ‘freedom of contract’ – it is the parties who determine their obligations...
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...President Donald Trump’s plan to impose tariffs on imports could trigger a trade war. His plans include global tariffs of 25% on steel and 10% on aluminum. Officials worry about the consequences of a trade war and urge the White House to not act on it. Even top Republicans have tried to warn Trump that tariffs are a bad idea. Since then, Trump has tried to renegotiate the Free Trade Agreement with Canada and Mexico because of large trade deficits. U.S. officials were hoping this new approach would help accelerate the process of rewriting the 24 year old trade agreement. But the two countries suggest that the threats from Trump did not settle well with them. Mexico’s economy minister discussed the matter with a U.S representative and overall...
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...NAFTA (North American Free Trade Agreement) and Its Advantages in Mexico Regional Integration is described as a process in which states enter into a regional agreement in order to enhance regional cooperation through regional institutions and rules. North American Free Trade Agreement was the removal of barriers between Mexico and the United States. It was the phasing out of virtually all restrictions on trade and investment flows. “The expanded trade resulting from NAFTA has raised the United States' gross domestic product very slightly. (The effect on Mexican GDP has also been positive and probably similar in magnitude. Because the Mexican economy is much smaller than the U.S. economy, however, that effect represents a much larger percentage increase for the Mexican economy.)” (The Effects of NAFTA on U.S. –Mexican Trade and GDP, May 2003). Over the years NAFTA has helped Mexico to improve on their exports and imports trading with the United States. NAFTA has had a positive effect dealing with the international investments. This is because some of the restrictions Mexico had on their foreign investment dealing with the ownership of capital. NAFTA also allowed Mexico to do away with tariffs and quotas. This allowed Mexico to become a profitable place to invest, in plants and assembling of products in the United States. NAFTA eliminating the tariffs in Mexico helped to reduce the different license requirements and restrictions on foreign investment. This meant that it would...
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