Workshops

How to prepare for FTA negotiations (Part 1)

Mon, Feb 02 2009
Trade

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

Next entry: How to prepare for FTA negotiations (Part II)

These are resources that I hope you will find interesting and helpful. I am an independent analyst with a lot of experience in trade and public policy education (see my [bio]). If you need specific materials or would like to organize a workshop for your organization, please .(JavaScript must be enabled to view this email address)— I'm for hire.