APTA: Membership Expansion and Future Roadmap

Dr. Ram Upendra Das Professor

[email protected]

Presented at APTA Business Forum Oragnised by UN ESCAP and FICCI 13 November 2014 New Delhi Introduction

Context: Stylized Facts APTA in Perspective Future Roadmap

 Membership Expansion

 Comprehensiveness of APTA

 New Areas

 Modalities and Work Programme Context: Stylized Facts Asian Century TTP and TTIP and RCEP Asian Regionalism De facto production integration: market-driven Production Fragmentation De jure process Comprehensive and deeper: Trade in goods, services and Investment Not in all sub-regions De jure: Policy-driven FTAs/RTAs Variable Geometry APTA in Perspective APTA is possibly one of the oldest Pan-Asian nature: Suitability Most inclusive sub-regions thus far Some of the Most dynamic economies

 China, South Korea, Institutional Paradox

 Structured Institutional Mechanism

 Progress in negotiations Potential of APTA: Enormous Intra-APTA Trade Failed Impact Future Roadmap Future Roadmap: Membership Expansion

Ministerial Mandate: APTA Expansion Mongolia Central Asia South Asia South-east Asia Developed countries of the region

Benefits of membership expansion assessed Future Roadmap: Comprehensiveness of APTA

From PTA to FTA

 Margin of preferences An Integrated Approach Trade in goods-services linkages Trade-investment linkages

 FDI flows to Trade: Trade-creating joint ventures

 Trade to FDI Trade in Services

 Movement of factors of production

 Capital (Mode III) and Labour (Mode IV) Trade and Investment

 Economic welfare

 Economic development Employment generation: Rules of Origin Income generation Poverty alleviation Trade in Goods, Services and Investment New Areas

Energy Security Digital Connectivity R&D, Innovation and High- Tech Exports Modalities and Work Programme Raise APTA to Summit Level

 Heads of State/Government APTA Secretariat Milestones, Actions and Timelines Statistical, Database and Online Access Systems

 Preference utilisation

 Certificate of Origin

 Projection of gains Thank You