Searching for the Environment in Indias RTAs Pramod Dev M CUTS Centre for International Trade Economics and Environment 19 June 2007, Tokyo

Environment in Indias Current & Future RTAs Current FTA/PTAsDirect reference to action on Environment and prospects India - Gulf Cooperation Council(GCC) None India-Chile None India-Mercosur PTA None* Asia Pacific Trade Agreement (APTA) None. India-Afghanistan PTA None India-Bhutan Trade Agreement None India-Nepal Treaty of Trade None India-Sri Lanka Free Trade Agreement None India and Bangladesh Trade Agreement None Trade Agreement between India and Maldives None Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Not Available South Asia Free Trade Area (SAFTA) Not Available

Environment in Indias Current & Future RTAs… Comprehensive Economic Cooperation Direct reference to action on Environment and prospects India-Singapore Yes. Weak. Under Standards India -Mauritius. Not available Framework AgreementsDirect reference to action on Environment and prospects India - ASEANYes. Weak India- ThailandYes. Weak India- South Africa Customs Union (SACU)Not Available

Environment in Indias Current & Future RTAs Joint Study Group (JSG)/ Joint Action Plan (JAP) Direct reference to action on Environment and prospects India- EU JAPYes. Strong. Under more than one item India - JapanYes. Strong. Under more than one item. India - S. KoreaYes. Weak India- China Not available India - Russia Not Available Israel- India Not Available India - Malaysia Not Available India - Indonesia Not Available

Why is the Environment Invisible in RTAs ? Historically, Indias policy on PTAs was influenced by political concerns; and with Developing countries. Historically, Indias policy on PTAs was influenced by political concerns; and with Developing countries. Official view- environment is beyond the agenda of Indias negotiations on RTAs. Official view- environment is beyond the agenda of Indias negotiations on RTAs. Consistency with Indias stand on non-tariff issues in the WTO, where clubbing of trade with environment, labour standards, and the like were resisted. Consistency with Indias stand on non-tariff issues in the WTO, where clubbing of trade with environment, labour standards, and the like were resisted.

Why is the Environment Invisible in RTAs ? Stakeholder perceptions in India also reinforce the idea that environment issues are used as an NTB by the developed countries. Stakeholder perceptions in India also reinforce the idea that environment issues are used as an NTB by the developed countries. India is playing it safe in RTA negotiations. Negotiations on tariff is acceptable, but not on contentious (unfamiliar) issues, unless there is pressure. India is playing it safe in RTA negotiations. Negotiations on tariff is acceptable, but not on contentious (unfamiliar) issues, unless there is pressure.

Impact of Omission of environment from RTAs Lost the chance to adopt the building blocks approach in non-tariff issues. Lost the chance to adopt the building blocks approach in non-tariff issues. Gains on sustainable regional economic cooperation could not be achieved, especially in contiguous countries. Gains on sustainable regional economic cooperation could not be achieved, especially in contiguous countries.

Domestic Consultation on RTAs Public consultations are limited in scope; if at all the practice exist. NGO involvement only if commissioned by the Government for research and support. Public consultations are limited in scope; if at all the practice exist. NGO involvement only if commissioned by the Government for research and support. Public debate & coverage in popular press is poor. Public debate & coverage in popular press is poor. Impact: Limited scope for assimilation of sustainability issues and environmental norms sustainability issues and environmental norms in RTA negotiations. Was it designed by the Government?

Why lack of Public Debate on RTAs in India? In India, WTO negotiations attract more attention from civil society and interest groups. In India, WTO negotiations attract more attention from civil society and interest groups. Issues related to RTAs are seldom widely understood and hardly any input or demand from civil society, including those working on environment. Issues related to RTAs are seldom widely understood and hardly any input or demand from civil society, including those working on environment.Impact: 1) Absence of domestic demand for Environmental norms. 2) RTAs/PTAs have WTO+ concessions and provisions.

Environment in Indias Future RTAs Based on Joint Study Group reports, environment could feature prominently in future agreements with Developed countries. It will be the real test for Indian trade negotiators. Based on Joint Study Group reports, environment could feature prominently in future agreements with Developed countries. It will be the real test for Indian trade negotiators. Going by the language and nature of activities proposed, the integration of the environment will be limited to areas that are less contentious and mutually beneficial, like CDM investments. Going by the language and nature of activities proposed, the integration of the environment will be limited to areas that are less contentious and mutually beneficial, like CDM investments. How far these steps could assuage the concerns on NTBs is not sure.

Post-Script Need to enhance local capacities in understanding RTAs and Environment, by encouraging public debate. Need to enhance local capacities in understanding RTAs and Environment, by encouraging public debate. Multilateral Vs Regional or Multilateral Vs Regional or Multilateral with Regional? - Thank You - - Thank You -