Date:09/12/2004 URL: http://www.thehindubusinessline.com/2004/12/09/stories/2004120902110400.htm

Back `RTAs cannot be alternatives to multilateral liberalisation'

Our Bureau

New Delhi , Dec. 8

A WORLD Bank report has held that there is no truth in the arguments made in certain quarters that Regional Trade Agreements (RTAs) can be an alternative to multilateral liberalisation.

It has held that "gains for all developing countries from the RTAs, even under the most generous of assumptions, are usually only a fraction of those from full multilateral liberalisation."

The report — Global Economic Prospects 2005 - also stated that RTAs are most effective when they complement a unilateral and multilateral trade strategy and anchor domestic reforms programmes to improve competitiveness and reduce poverty.

Launching the report here, Mr Uri Dadush, World Bank Director (Economic Policy and Development Prospects Group), said while RTAs offer some benefits to some developing countries, it was imperative to keep these pacts "open" and "transparent" so as not to divert trade or cause market distortions that penalise other developing countries outside the ambit of the agreements.