Petition updateDevelop a National Policy on International Trade Agreements prior to signing any AgreementGMOA Petition: Media Eye
GMOA
Jun 19, 2016 — http://www.ceylontoday.lk/columns20160321CT20170330.php?id=249 National policy on trade agreements a must Recently, the Government Medical Officers' Association (GMOA) launched a campaign to urge the government to formulate a national policy regarding international trade agreements. GMOA, one of the most powerful trade unions in the country which has been very active in the campaign against the Economic and Technology Cooperation Agreement (ETCA) proposed to be signed with India, has initiated signing an online petition urging the government to formulate a national policy regarding international trade agreements. Although, economics and trade are not the expertise of the doctors, their concern seems to be valid and appears to be a need of the hour. A government enters into trade agreements with other countries on behalf of its citizens; therefore, every citizen has a right to raise concerns about the trade agreements signed with other countries, or may be even regions. Thus far, Sri Lanka had entered into two bilateral trade agreements and one regional trade agreement. Indo-Sri Lanka Free Trade Agreement (ISFTA) came into effect in 2000 while Pakistan-Sri Lanka Free Trade Agreement (PSFTA) came in to effect in 2006. In addition to these two bilateral free trade agreements, South Asia Free Trade Area (SAFTA) came into effect after 2006. Further the government is talking about signing a free trade agreement with China as well. It is true that the free trade agreements had helped in enhancing not only bilateral trade, but also multilateral trade. However, it should also be noted that trade deficits with both these countries have widened. Although the increase of the trade deficit cannot be totally attributed to the trade agreements, it also reveals the continuous performance in exports. The country's exports, as a percentage of the GDP, are consistently declining over the years. In that context, we need to question ourselves whether we are in a strong position to enter into more and more trade agreements, because, if our exports are not rising at the same pace, as those of our competitors, it reflects nothing but the lack of comparative advantage in competing in international markets. Therefore, the government must ensure a win-win situation in trade deals, and formulating a national policy in trade agreements will help in ensuring a win-win situation when the country enters into trade deals. It should be noted that there are serious shortcomings in the existing trade agreements and successive governments had consistently failed to address such issues. In particular, professionals, academics as well as researchers had raised concerns regarding the failure of the government to address Non-Tariff Barriers (NTBs) which had hindered bilateral and regional trade and undermined the existence of free trade agreements. It is in that context, the government should have a policy set up in entering into international trade agreements. Once such policy exists the government would have the ability to deal with NTBs and any other form of barriers which are likely to hinder the expected return from free trade agreements. In developed countries, trade policy is a decisive factor in elections. However, it is not the case in Sri Lanka. Although the government talked about free trade agreements in its manifesto, it appears that the importance of a trade policy as well as the need for a national policy for trade agreements is almost ignored. In the upcoming US Election, Trans Pacific Partnership (TPP) is an important factor in manifestos indicating the emphasis given to trade policy. Sadly, Sri Lanka had not focused sufficiently on national policy on trade agreements though it is a national concern. One cannot disregard the importance of trade agreements. In the existing neoliberal economic system, trade agreements appear to be the best way to expand trade. However, such action should not be compromised for the long-term economic development of the country. Therefore, what we need is to identify our needs and set up a policy framework that would help us to gain benefits through trade agreements. Whether we like to admit or not, at present the country's economy is in bad shape. For that very reason, the country needs long-term sustainable policies. A national policy on trade agreements, too, appears to be one of such.
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