Transcript An Advocacy Agenda for Mainstreaming Consumer Interest in South Asian Regional Trade and Economic Cooperation

An Advocacy Agenda for Mainstreaming Consumer Interest
in
South Asian Regional Trade and Economic Cooperation
Bipul Chatterjee
CUTS International
Cost of Economic Non-Cooperation to Consumers in South Asia
Kathmandu, 3-4 February 2011
Results of the Study
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 Trade literature treats reciprocal exchange of import concessions for
export opportunities as an absolute necessity for the functioning of
trade agreements.
 Despite the prospects of consumer welfare gains to be had, imports are
generally viewed disapprovingly under the influence of protectionism.
 Evidence of protectionism as a major obstacle for South Asian Intraregional trade.
 Empirical evidence for significant consumer welfare gains from
enhanced intra-regional trade in South Asia.
Results of the Study
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 Various categories of South Asian stakeholders have very low
expectations in general about consumer welfare gains, owing to either
ignorance about the issue or negligence as an unimportant factor.
 Lack of reference to consumer welfare gains in the academic literature
as wells as in the popular media has heavily influenced the perceptions
of all categories of stakeholders.
 Despite its stagnant state, general perception is that South Asian
intraregional trade is under- performing currently and its potential is
highly under-rated. Stakeholders believe a turnaround is possible by
disentangling trade issues from non-trade issues plaguing the region.
Key Messages
Importance of Networking
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 Lack of awareness about consumer welfare gains and lack of
involvement of consumer organisations in trade issues are equally
important causes of oversight of gains from imports in the South Asian
context
 Build networks of consumer organisations in the region to discuss and
spread awareness about consumer welfare gains from intra-regional
trade liberalisation
 Organising regional workshops for relevant CSOs in various South
Asian Capital cities.
Key Messages
Importance of Research
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 It is crucial to inspire further detailed studies on the topic of loss of
consumer welfare gains and other trade costs owing to tariff and nontariff barriers in the region, generating more informed discussions and
subsequently mainstream the issue in policy making process.
 Trade economists from within and outside the region should be
inspired and supported to conduct more detailed research on benefits
from trade with specific reference to consumer welfare gains,
incorporating effects of trade facilitation and removal of NTBs.
 International academic seminars on specific topics with the intent to
attract research outputs from outstanding scholars.
Key Messages
Importance of Balancing Concerns of Producers and Consumers
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 Two of the most important concerns of the industry, (i) safeguards for
import sensitive sectors and (ii) non-tariff barriers faced by exporters,
should be taken into account for balanced negotiation process.
 Increase involvement of the SAARC Chamber of Commerce and
Industry in holding targeted consultations with chambers of
industry/producers/exporters from South Asian member states with
the objective of balancing interests of consumer and producer groups.
Key Messages
Importance of Inclusiveness
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 Concerns of consumers in trade matters should be adequately
represented at the national level and subsequently at the regional level.
 Increase the involvement of SAARC secretariat in facilitating balanced
representation using its channels of liaison with national trade policy
making bodies, chambers of industries and CSOs.
 Commissioning of a project for mapping inclusiveness in trade issues at
the regional and national level with the objective of framing strategies
for improvement.
Key Messages
Importance of Publicising
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
Publicising consumer welfare impact of intra-regional trade through
popular media is crucial for garnering support.

CUTS with the collaboration of partner organisations in five South
Asian countries to use press releases, an online discussion forum and
poster campaigns for popularising the topic.
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Thank You