During the July 5 meeting of the Committee on Regional Trade Agreements, WTO members examined five regional trade agreements (RTAs) and explored ways to enhance the committee’s effectiveness. Additionally, they considered a communication from China concerning these matters.
The Committee assessed the Free Trade Agreement between the member states of the Association of Southeast Asian Nations (ASEAN) and Hong Kong, China (Goods and Services) under the Transparency Mechanism for RTAs. The agreement gradually became effective for all parties from 2019 to 2021.
Representing ASEAN, Indonesia highlighted that the agreement aims to bolster regional economic integration and foster economic development. Hong Kong, China noted that the agreement creates business opportunities for enterprises and service providers from ASEAN, fostering an environment conducive to both economies’ development.
The Committee also examined the Free Trade Agreement between the European Free Trade Association (EFTA) States (Iceland, Liechtenstein, Norway, and Switzerland) and Türkiye (Goods and Services), which entered into force on October 1, 2021.
Norway, on behalf of EFTA, emphasized that the modernization of the agreement supports the expansion of each party’s business sectors. Türkiye mentioned that the modernization broadens the scope of the 1991 Agreement to adapt to changing trends in global trade.
The Committee addressed the entry into force for Peru of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Goods and Services, on September 19, 2021.
Peru’s ratification of the agreement is expected to facilitate businesses’ access to markets within an economic bloc accounting for 13% of the world’s GDP and 15% of global trade. Peru’s goals include attracting investment, enhancing competitiveness—particularly for small and medium-sized enterprises (SMEs)—and supporting women’s economic participation. Other objectives encompass promoting innovation, job creation, and sustainable economic development.
New Zealand, serving as the CPTPP’s President in 2023, provided members with updates on recent developments, including efforts to enhance digital trade facilitation, promote inclusive sustainable trade, and adapt business policies to changes in global trade. Expanding businesses, particularly integrating SMEs into global supply chains, remains a central objective.
Additionally, the Committee considered the Partnership, Trade, and Cooperation Agreement between the UK and North Macedonia (Goods and Services), which took effect on January 1, 2021.
The UK, speaking on behalf of both parties, stated that the agreement establishes continued trade preferences previously available under the EU’s agreement. The trade in goods and services between the UK and North Macedonia amounted to GBP 2.3 billion (CHF 2.6 billion) in the four quarters of 2022, with total bilateral trade more than quadrupling since 2013.
Under a separate agenda item, the Committee also assessed the Partnership, Trade, and Cooperation Agreement between the UK and Serbia (Goods and Services), which became effective on May 20, 2021.
The UK, also representing Serbia as a WTO observer, noted that the agreement largely replicates the EU-Serbia Stabilization and Association Agreement. It provides continuity and predictability for both countries’ businesses, and the total trade value between the UK and Serbia reached GBP 860 million (CHF 982 million) in the four quarters of 2022, more than doubling since 2013.
Notifications of RTAs The Committee acknowledged six new regional trade agreement notifications, including four new agreements and one terminated agreement.
Ambassador Clare Kelly of New Zealand, the Chair, announced the preparation of factual presentations for 52 RTAs involving WTO members and 35 involving non-members, with goods and services counted separately. The factual presentations for seven services agreements, one involving a non-member, are on hold pending the negotiation of services commitments. She also noted that 56 currently active RTAs have not been notified to the WTO, as indicated by the WTO Secretariat.
Enhancing Committee Work Members were commended by the Chair for their significant involvement in discussions to improve the Committee’s functioning, with ongoing discussions planned. The WTO Secretariat provided an updated work program presentation to members, to be accessible online at a later date. Members agreed that the Secretariat should be responsible for making appropriate procedural adjustments to enhance the Committee’s efficiency.
China’s communication to the Committee proposed reflection on the use of digital and other new tools, emphasizing the importance of reinforcing transparency by ensuring timely notifications of agreements by members. The communication also underscored support for developing economies in fulfilling their notification requirements, alluding to discussions initiated by the United States in January on improving the Committee’s operation.
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