• EU trade policy
• EPA
• Lome and Cotonou
• Everything but Arms

EU trade policy

This policy note states that north-south free trade agreements (FTAs), bilateral investment treaties (BTIs) and WTO commitments often contain a number of provisions that can increase the likelihood of a financial crisis. Moreover, these provisions make it more difficult to take the necessary measures to deal with such crisis once it occurs. Consequently, the paper highlights the main provisions in these agreements that can hamper the effective implementation of recommendations to deal with the current crisis.

The paper finds that most barriers are likely to come from the services and investment chapters. Furthermore, the competition, goods and government procurement chapters in north-south FTAs can also have an effect. Accordingly, the paper recommends the following:

• there should be a blanket review of relevant existing FTAs, BITs and WTO provisions to see which provisions of these rules are now inappropriate
• in such a review, recommendations should be made to adjust these existing agreements to make them in line with the new understanding and realities
• during this review process, the implementation of the parts of the existing FTAs that are linked to the new understanding about the downside of financial liberalisation should be suspended until the review and possible revisions are completed
• the financial services plurilateral negotiations at the WTO should be discontinued for the duration of the Doha Round
• all current FTA negotiations including economic partnership agreements (EPAs) should be frozen until a review is completed about their appropriateness in light of the current crisis conditions
• in addition, reviews should be made as to the appropriateness of existing financial services commitments by developing countries at the WTO, and revisions should be allowed

• Full text of document
• Publisher details
• Send to a friend