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Regional trade

Negotiating trade agreements: a formula to make it pro-poor

Is negotiation capacity a sufficient condition to protect the interests of poor?

Authors: S.M.A. Habib; A. Tanzin
Publisher: Development Research Network, 2008

Full text of document

This study deems that in order to make effective use of the regional and multilateral trading system, the less developed countries (LDCs) need to develop their own positive agenda. This, in turn, implies accumulating a joint effort towards capturing the initiative from the very beginning in the negotiation process. The specific objectives of the paper are:

  • to understand negotiation dynamics in trading arrangements
  • to identify interests of the poor
  • to understand trade negotiation capacity within government trade related machinery
  • to determine strategy for LDCs (particularly Bangladesh) in making trade negotiations pro-poor and development oriented
The paper states that the negotiation capacity is a necessary but not sufficient condition to protect the interests of marginalised people in trade negotiations. Thus, it points that the following issues appear crucial in formulating a pro-poor trade negotiation strategy in the context of LDCs:
  • governments must take steps to incorporate representations of civil society organisations in the formulation of policy documents and consultation processes of trade negotiations
  • systematic and regular research inputs must play their designated role in facilitating state negotiators with required inputs for protecting national interest
  • there must be strong coordination among concerned entities for understanding the trade related technical issues, reading the counterparts and taking right negotiation positions
  • the state must move on forming and strengthening alliances with like minded global economies
  • LDCs need strong support from civil society organisation and advocacy groups to raise their livelihood and poverty concerns to the global communities
In conclusion, the paper finds that success of a development oriented trade negotiation depends upon the capacity of government to translate it for the benefits of poor people. Moreover, it is not only the capacity to design trade policy or negotiation strategy, it is also about the capacity to trade.