How to prepare for FTA negotiations (Part III)
Sun, Mar 08 2009Trade
In the third part of my 'checklist' for preparing an FTA negotiation I briefly cover the identification of relevant economic data (including hints on what to do if you can't find what you need), and; some topics that don't fit elsewhere but contain suggestions that arise from my own experience in negotiations including approaches to 'team management' for the negotiators. This section ends with a reminder that the benefits (and the costs) of a credible agreement are often anticipated by business and factored into their plans long before the end of the official 'implementation' period.
One topic in the outline remains a 'skeleton': the essential topic of collaboration. I have decided to make this a 'stand-alone' topic for the next workshop—and the concluding part of this series. So please check back here soon.
I hope you find this short series helpful. The final installment—which you can open in a new window by clicking here—contains the entire 'checklist' in outline format, minus the details on 'collaboration' (to be provided in Part IV).
Please note that you can expand the entire list and send it to your local printer using the icons at the top of the window.
How to prepare for FTA negotiations (Part II)
Sat, Feb 21 2009Trade
Resources
In the second part of my 'checklist' for preparing an FTA negotiation I cover Services, Investment and, briefly, two topics that are essential but cannot be taught: the creation of 'defensive' and 'offensive' briefs for the negotiators.
Ambitious international 'economic integration' agreements are measured by their provisions on investment and services. There are opportunities in these chapters of an FTA to greatly expand the range of export and import opportunities and even to harmonize national regulatory frameworks. Naturally, this needs careful preparation with domestic 'stakeholders' and detailed analysis by negotiators.
A negotiator should never sit down at the table until she/he has a pretty good idea of the 'bottom-line' for both sides. But it's a mistake to finalize either your 'offensive' or 'defensive' brief before you start. These brief sections of the Checklist explain why, and how to manage the briefs with your stakeholder community.
The 'checklist' is in the form of an outline that you can 'drill-down' through. This is the second of three parts covering sections 1 - 8 of the checklist (opens in a new window)
How to prepare for FTA negotiations (Part 1)
Mon, Feb 02 2009Trade
It isn't obvious before you start, but most "Free Trade Area" (FTA) negotiations are really two negotiations: one with foreigners and one with import-competing domestic industries, non-state actors including unions, non-trade 'NGO's, academic analysts and members of the parliament.
This 'checklist' is a sort of crib for your homework. I can't possibly cover everything you might want to do to prepare for an FTA negotiation. But it's a start. The 'checklist' is in the form of an outline that you can 'drill-down' through. I'll be presenting the checklist in three parts starting with sections 1-4 (opens in a new window Update : I have now included buttons to expand and collapse the entire outline. Apologies for not doing so from the outset).
- 1 Management & information
- An FTA negotiation can be a lengthy and expensive 'whole of government' enterprise that needs careful planning and top-level management to succeed.
- 2 Goods
- Usually portrayed as the 'heart' of the FTA agreement, but often the easiest (because most familiar) chapter to negotiate
- 3 Technical regulations and standards
- Better management of SPS standards, especially, is likely to hold the key to improved regional export opportunities
- 4 Customs administration
- Collaboration on Customs administration is important for to the trade facilitation benefits that an FTA can bring to regional trade
- 5 Services
- Most economies have a high potential to gain from improved export and import flows of services and associated investments
- 6 Investment
- Is it possible to reduce the cost of finance or to lift FDI contribution to growth through a regional investment agreement?
- 7 'Offensive' market access brief
- Preparations are not complete until you have an agreed list of 'requests'.
- 8 'Defensive' brief
- Never sit down to negotiate anything if you don't have a good idea what the other side wants and where your own 'resistance' points are.
- 9 Collaboration
- Somethings are not susceptible to 'negotiation'. Where there is no 'exchange' to be made, governments collaborate.
- 10 Economic data
- CGE modeling is the tool most commonly used to assess the scale and location of mutual gains
- 11 Overall approach
- Procedures and 'strategies' for a successful negotiation
