Info exchange on trade pact negotiations urged

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Info exchange on trade pact negotiations urged
Posted: 11:30 PM | Jun. 13, 2006
Ronnel W. Domingo
Inquirer

(Published on Page B9 of the June 14, 2006 issue of the Philippine Daily Inquirer)

THE ASIA-PACIFIC Economic Cooperation should continue to allow the free flow of information on the best way to negotiate trade pacts amid fears that such agreements might stunt the growth of developing members, according to Trade Secretary Peter B. Favila.

Favila, who recently met with counterparts at the Apec in Vietnam, said best practices in trade talks needed to be disseminated and adopted, especially with ongoing talks on various bilateral and regional trade pacts.

"I am particularly concerned that the spaghetti bowl effect [or having the world markets divided into numerous units through various separate pacts] may damage the growth of smaller players in the region," he said.

Further, the trade chief said the separate talks could undermine efforts to conclude a new round of talks in the World Trade Organization.

He said building on best practices within Apec could easily gather momentum since the group had adopted this means as a way to ensure that pacts outside WTO would be consistent with the aims of the WTO.

"But I can imagine that senior officials will have some challenging work here because we each have different experiences, motivations and capabilities which we all want to be reflected in the model measures," he said.

Still, he added that the Philippines welcomed the formulation of model measures to guide Apec members in future negotiations and to promote high quality agreements consistent with the WTO process.

"Model provisions are guides for members but should not prejudice ongoing negotiations nor be prescriptive to future negotiations entered into by the members," Favila said.

"By maintaining the nonbinding principle of Apec, possible conflict of interest among members who are negotiating with each other will be avoided," he added.

Also, Favila urged Apec to continue providing members with capacity-building aid on how to effectively negotiate bilateral or regional trade pacts.

"Apec should as well look into commissioning analytical research to better understand and analyze the impact and benefits that separate pacts might impose on both the welfare of the region and the achievement of Apec's goals," he said.