Experts map strategies to boost trade negotiations, regional blocs

Trade experts from several Commonwealth countries have called for fresh approaches to strengthen regional trading groupings, and ways of enhancing their capacity to participate in international trade negotiations.

The experts, drawn from Commonwealth missions in Brussels, Geneva and London, as well as academics, trade analysts and representatives of other international organisations meeting in Hampshire, UK on 15 and 16 March 2010, noted that while regional integration is not a panacea for development, it presents huge opportunities for fighting poverty that need to be pursued carefully and harnessed properly.

Speaking at the opening of the roundtable discussions, Commonwealth Deputy Secretary-General Ransford Smith reinforced the value in regional integration, noting that “it creates new opportunities for trade, investment, diffusion of knowledge and can serve as a commitment device to enhance the credibility of domestic policy.”

Moreover, added Mr Smith, the beleaguered progress of the World Trade Organisation (WTO) Doha round of negotiations leaves a lacuna that regional trade agreements can fill.

He was however quick to point out that “simply joining a regional trade and integration initiative is no instant panacea. There are a range of issues that must be considered carefully,” such as ensuring fair distribution of the benefits amongst integrating countries, preferential treatment and managing tariffs and intellectual property issues.”

“Without adequate preparation, it is possible that these issues will not be treated in a manner that is conducive to the development needs of developing countries,” the Deputy Secretary-General said.

Speaking at the same roundtable, a specialist on trade relations between developed and developing countries said that it is important for developing countries to understand the structures and processes of their negotiation counterparts, notably, the European Union, reasoning that lack of adequate preparation has often limited the capacity of poor countries to get best deals for their citizens.

“You don’t buy an umbrella when it starts to rain. You buy it before it rains,” the expert said, referring to the need for advance planning and preparation before engaging in trade negotiations.

This was a point reinforced by Professor Ngaire Woods of Oxford University’s Global Economic Governance programme, who has undertaken extensive research on behalf of the Commonwealth.

Professor Woods said that she has found that many small developing countries do not take advantage of the opportunities available to them in trade negotiations because they are not clear on their goals and lack relevant and timely information and inadequate planning.

Participants noted that information and experience sharing amongst Commonwealth countries is critical for them to ensure that they fully realise the development potential of regional integration. Accordingly, they called on the Commonwealth Secretariat to continue to play a positive role in facilitating interactions between policymakers from across the Commonwealth.

There was also a call for new research to be undertaken regarding whether Small States are being further marginalised by regional trade initiatives, and which policy tools they need to maintain to ensure that they can retain control over their economies following the implementation of regional trade agreements.

Edwin Laurent, the Head of International Trade and Regional Cooperation at the Secretariat, convener of the roundtable, said that he was pleased the objective for which the meeting was organised - to provide a platform for sharing and analysing experiences on regional trade and integration in order to inform future policy making - was largely achieved.

Mr Laurent said that the Secretariat will continue to support member countries with policy analysis and advocacy, research, and capacity and skills building programmes to ensure that they get the best results from their regional integration initiatives.

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