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ASIA-PACIFICTRADEANDINVESTMENT
ASIA-PACIFICTRADEANDINVESTMENTTRENDS2024/2025ii
ASIA-PACIFICTRADEANDINVESTMENTTRENDS2024/2025iii
Acknowledgements
ThisBriefwaspreparedbyNatnichaSutthivanaunderthesupervisionandco-draftingeffortsofWitadaAnukoonwattaka,EconomicAffairsOfficerintheTradePolicyandFacilitationSection(TPFS)oftheTrade,Investment,andInnovationDivision(TIID)attheUnitedNationsEconomicandSocialCommissionforAsiaandthePacific(ESCAP).
ThedevelopmentoftheBriefwascarriedoutundertheoveralldirectionofYannDuval,Chief,TPFS,TIID,andRupaChanda,Director,TIID.TheauthorsaregratefulforthevaluablefeedbackfromMiaMikic,AdvisoratLarge,Asia-PacificResearchandTrainingNetworkonTrade(ARTNeT),aswellastheinsightssharedbyparticipantstotheExpertGroupMeetingonEmergingTrendsinRegionalTradeAgreements,heldon17December2024.NatnichaSutthivanaformattedthereport,withthecoverdesigncreatedbyNucharatTuntiwigit.
ASIA-PACIFICTRADEANDINVESTMENTTRENDS2024/2025iv
Contents
Highlights 1
1.Introduction 3
2.Deepertradeagreements 5
2.1IncreasingcomplexityofthePTAnoodlebowl 5
2.2Broadeningthescopeoftradenegotiations 8
2.3FocusAreas:Digitaltradeandsustainability 9
2.4Beyondformaltradeagreements 13
3.Sustainabledevelopmentanddigitalprovisions 16
4.TradewithPTApartners 22
5.Conclusion 24
References 25
ListofFiguresandTables
Figure1.NoodlebowlofAsia-PacificPTAs,1971-2024 4
Figure2.NewPTAssignedandnegotiatedafterJanuary2024 6
Figure3.PatternofsignedandinforceAsia-PacificPTAs,bysubregions,1971-2024
7
Figure4.EvolutioninthepolicycoverageofAsia-PacificPTAs,inselectedpolicy
areas,1971-2024 9
Figure5.Developmentofsustainabledevelopmentanddigitalprovisionsin
Asia-PacificPTAs,1971-2024 17
Figure6.Noodlebowlofdigitalprovisionswiththelevelofcommitment,2000-2024
19
Figure7.Shareoftradewithpartnersofthein-forcePTAsin2024 23
Table1.BreakdownelementsofdedicatedAIprovisionsunderDEAsandPTAs 21
ASIA-PACIFICTRADEANDINVESTMENTTRENDS2024/20251
Highlights
?TheAsia-Pacificregioncontinuestobethelargestcontributortotheworldwidebuild-upofpreferentialtradeagreements(PTAs),accountingfornearly60%ofPTAsinforceworldwide.PTAshavebecomebigger,deeper,andincreasinglycoveringissuesrelatedtodigitaltradeandsustainabledevelopment.
?TheAsia-Pacificregion's"noodlebowl"oftradeagreementsnowincludes374PTAswithatleastonepartyintheAsia-Pacific.Ofthese,229areinforce,27havebeensignedbutareawaitingratification,and100areundernegotiation.
?BetweenJanuaryandDecember2024,eightnewPTAsweresigned,whileelevenwereundernegotiation.MostofthesenewPTAsarebilateralagreementswitheconomiesoutsidetheregion.Thebilateralapproachreflectsagrowingpreferencefortailoredandflexibletradeandinvestmentterms,addingcomplexitytotheexistingnoodlebowlofagreements.Thechoiceofnewpartnershighlightsastrategicshifttowarddiversifyingtraderelationshipsalignedwiththedrivetoseekmoreresilientsupplychains.
?TradeamongPTApartnersaccountsforabouthalfofalltradebyAsiaandthePacificeconomies–approximately50percentofexportsand53percentofthetotalimports.Notably,thistrendissignificantlydrivenbyEastandNorth-EastAsia,andSouth-EastAsia,whichareactivelyengagedinnegotiatingtradeagreements.
?Asidefromtariffpreferences,themostcommonlyincludedprovisionsinAsia-PacificPTAsare‘tradefacilitationandcustomscooperation’,followedby‘competitionpolicy’,and‘intellectualproperty’.Theseprovisionsarepresentinmorethan
50percentofthesignedandenforcedPTAs.Since2003,theinclusionofprovisionssurroundingsustainabledevelopmentanddigitaltradeinAsia-PacificPTAshasalsoaccelerated.
?AsofDecember2024,ofthe256signedandinforcePTAs,thereare150PTAsthathavesustainabledevelopment-relatedprovisions(includingprovisionsrelatedtolabourprotection,humanrights,gender,health,education,environmentandSMEs).Anewtypeoftradeagreementsalsoseemstobeemerging,integratingelementsoftrade,investmentandenvironmentalsustainability.Thisincludesthe‘GreenEconomyAgreement’(GEA)”and‘AgreementonClimateChange,TradeandSustainability’(ACCTS),signedin2022andin2024,respectively.
ASIA-PACIFICTRADEANDINVESTMENTTRENDS2024/20252
?Meanwhile,120PTAshavedigitaltrade(e-commerce)provisions.Increasingly,theseagreementsincorporateprovisionsaddressingemergingtechnologiessuchasArtificialIntelligence(AI)andtheInternetofThings(IoTs).Thenumberofstand-alone‘digitaltradeagreements’(DTA)or‘digitaleconomyagreements’(DEA)intheAsia-Pacificregionalsoincreasedtoeightin2024.MembershipsintheDigitalEconomyPartnershipAgreement(DEPA),establishedbyChile,NewZealandandSingapore,isexpanding,potentiallyreducingtheriskofcreatinganew“digitalnoodlebowl.”Additionally,ASEANmemberstatesarenegotiatingtheDigitalEconomyFrameworkAgreement(DEFA),aimingtoestablishthefirstcomprehensivedigitaleconomyagreementwithintheASEANregion.
?AsofDecember2024,theWTOJointStatementInitiative(JSI)onElectronicCommercefinalizeda"stabilizedtext"fortheAgreementonElectronicCommerce,markingsignificantprogressafterfiveyearsofnegotiations.ThiscouldprovideausefulcommonbasisforfutureDTAsandDEAs.However,keyJSIparticipants,includingtheUnitedStates,Brazil,Indonesia,andTürkiye,haveraisedconcernsonthistext.IntegratingtheagreementintotheWTO'slegalframeworkalsoposeschallenges,asitrequiresconsensusfromallWTOmembers,includingnon-participantsintheJSI.
?Meanwhile,alternativeapproachestotradeandeconomiccooperationhavealsogrownsignificantly.Specifically,theIndo-PacificEconomicFrameworkforProsperity(IPEF)hasmadeprogress,whileBRICSmembershipcontinuestoexpand.Theseandotherregionaltradeinitiativesarelikelytoplayanincreasinglyimportantroleasthemultilateraltradingsystemcontinuestofaceheadwinds.
ASIA-PACIFICTRADEANDINVESTMENTTRENDS2024/20253
1.Introduction
TheAsia-Pacificregioncontinuestobethelargestcontributortotheworldwidebuild-upofpreferentialtradeagreements(PTAs),accountingfornearly60%ofallPTAsinforceworldwide
.1
Thesizeoftheregionalnoodle-bowlhasexpanded,encompassing374PTAsinvolvingatleastonepartyoftheAsia-Pacificregion.Amongthese,229arecurrentlyinforce,27aresignedandpendingratification,and100areundernegotiation(figure1)
.2
In2024,eightagreementsweresignedandelevennegotiationslaunched,mostofwhicharebilateraltradeagreementsinvolvingnon-Asia-Pacificeconomies.Notably,severalAsia-PacifichasformedtradeagreementswiththeUnitedArabEmirates,followedbyNewZealandandtheRepublicofKorea.ThesenewlysignedagreementsandnegotiationsunderscoretheAsia-Pacific’ssustaineddynamicsofformingextra-regionalandbilateralagreements.
Asthenumberofagreementsgrows,tradeagreementsmovetowardsbroadeningtheirscope.Recentnegotiationsincreasinglyaddressvariouspolicyareas,includingsustainabledevelopmentandthedigitaleconomy.Atthesametime,alternativeframeworksfortradeandeconomiccooperationinvolvingAsia-Pacificeconomiesareincreasinglyprevalent.
1AsofDecember2024,thenumberofPTAsinforceintheAsia-Pacificregionis229agreements,whilethetotalnumberofagreementsinforcenotifiedtotheWorldTradeOrganizationis373agreements.SeetheWTO’sRegionalTradeAgreementsdatabase,
/UI/PublicMaintainRTAHome.aspx.
2Ofthe374Asia-PacificPTAs,therestincludesterminatedorsuspendedagreements.
ASIA-PACIFICTRADEANDINVESTMENTTRENDS2024/20254
Figure1.NoodlebowlofAsia-PacificPTAs,1971-2024
Source:APTIAD(accessed24December2024).
Note:*Notallmembersareshown.PlurilateralPTAsarenotrepresented,i.e.,Groupof8PreferentialTradeAgreement(D-8PTA),GlobalSystemofTradePreferences(GSTP),ProtocolonTradeNegotiations(PTN)andTradePreferentialSystemamongtheOrganizationoftheIslamicConference(TPS/OIC).TheeconomyunderagreyrectangleshapereferstoESCAPmembersandassociatemembers.
ASIA-PACIFICTRADEANDINVESTMENTTRENDS2024/20255
2.Deepertradeagreements
2.1IncreasingcomplexityofthePTAnoodlebowl
Thenumberofnewnegotiationsandnewlysignedtradeagreementscontinuestoflourish.EconomiesinSouth-EastAsia,andEastandNorth-EastAsiahavemadesignificantcontributionstotheincreaseinPTAsintheAsia-Pacificregion.Additionally,in2024,negotiationsfortheIndia-PeruandMalaysia-theRepublicofKoreaPTAsresumedafterbeingpausedin2019.
FromJanuarytoDecember2024,eightagreementshadbeensigned,andelevennewnegotiationshadbeenlaunched(figure2)
.3
Ofthe17agreementsintheAsia-PacificregionthathaveenteredintoforcebetweenJanuary2023andDecember2024,tenhavenotbeennotifiedtotheWTO
.4
TheseunnotifiedagreementsraiseconcernsaboutcompliancewithcrucialnotificationandtransparencyobligationsundertheWTOrules
.5
ThesenewagreementsreinforcealreadyexistingtrendinAsia-Pacifictradeagreementsofanincreasingpreferenceforsigningbilateraltradeagreementswitheconomiesoutsidetheregion.Asof2024,approximately55percentofallPTAsinforceinvolveeconomiesbeyondtheAsia-Pacificregion,and79percentarebilateraltradeagreements.AllAsia-Pacificsubregionsshareasimilartrend,withbilateraltradeagreementspredominating.
EastandNorth-EastAsialeading,followedbySouthandSouth-WestAsiaandSouth-EastAsiahaveasubstantialnumberofsignedandinforceextra-regionalPTAs.Unlikeothersubregions,whichoftenestablishmoreagreementswithpartnersoutsidetheAsia-Pacific,South-EastAsiaandthePacificPTAspredominantlyfocusonPTAswithAsia-Pacificpartners(figure3a).
3Theeightnewlysignedtradeagreementsin2024are:(1)Australia-UnitedArabEmirates;(2)HongKong,China-Peru;(3)India-EFTA;(4)Kyrgyzstan-EU;(5)NewZealand-UnitedArabEmirates;(6)SriLanka-Thailand;
(7)VietNam-UnitedArabEmirates;and(8)AgreementonClimateChange,TradeandSustainability(ACCTS).Moreover,the11newnegotiationsthatcommencedin2024are:(1)Bangladesh-theRepublicofKorea;
(2)China-ElSalvador;(3)Georgia-Israel;(4)Georgia-theRepublicofKorea;(5)Indonesia-GulfCooperationCouncil(GCC);(6)Indonesia-SriLanka;(7)Japan-UnitedArabEmirates;(8)NewZealand-UnitedArabEmirates;
(9)thePhilippines-Chile;(10)TheRepublicofKorea-Thailand;and(11)Türkiye-GCC.
4TenPTAsenteredintoforcein2023,andanothersevenPTAsenteredintoforcein2024.Oftheseagreements,seventradeagreementshavebeennotifiedtotheWTO,i.e.,twoagreementsenteredintoforcein2023–Australia-theUnitedKingdomPTAandNewZealand-theUnitedKingdomPTA,andanotherfiveagreementsenteredintoforcein2024–China-EcuadorPTA,China-NicaraguaPTA,China-SerbiaPTA,NewZealand-EUPTA,andTürkiye-UkrainePTA.
5SeeWTOTransparencyMechanismsforRTAs,availableat
/english/tratop_e/region_e/trans_mecha_e.htm.
ASIA-PACIFICTRADEANDINVESTMENTTRENDS2024/20256
Figure2.NewPTAssignedandnegotiatedafterJanuary2024
Source:APTIAD(accessed24December2024).
Note:*Notallmembersareshown.GulfCooperationCouncil(GCC),EuropeanFreeTradeAgreement(EFTA)andEuropeanUnion(EU).TheAsia-PacificsubregionsincludeEastandNorth-EastAsia(ENEA),thePacific,South-EastAsia(SEA),NorthandCentralAsia(NCA),andSouthandSouth-WestAsia(SSWA).TheeconomyunderagreyrectangleshapereferstoESCAPmembersandassociatemembers.
Countryblocsandplurilateralagreementsaccountforapproximately10percentand11percent,respectively,ofthetotalagreementsinforce(figure3b).Althoughsmallinnumber,theireconomicsignificanceissubstantialandcontinuestogrow.TheComprehensiveandProgressiveAgreementforTrans-PacificPartnership(CPTPP)andtheRegionalComprehensiveEconomicPartnership(RCEP)–areprominentplurilateralagreements,oftenreferredtoas‘mega-regionaltradeagreements.’
Membershipsofplurilateralagreementscontinuetoexpand.TheRCEP,signedby15economiesin2020,isconsideredtheworld’slargesttradingbloc,representingapproximately30percentofworldGDP
.6
ByDecember2024,Chile,SriLankaandHongKong,ChinaformallyrequestedaccessiontotheRCEP
.7
TheCPTPP,initiallysignedby11economiesin2018
,8
hasexpandeditsmembershipbyone.TheUnitedKingdomwassuccessfullyaccededandofficiallystartedimplementingtheagreementinDecember2024,becomingthefirst(andnon-Pacific)partytotheCPTPPagreementsinceitsestablishment.
6The15RCEPmembersinclude10ASEANmembers(BruneiDarussalam,Cambodia,Indonesia,LaoPeople’sDemocraticRepublic,Malaysia,Myanmar,Philippines,Singapore,Thailand,andVietNam)andAustralia,China,Japan,NewZealandandtheRepublicofKorea.
7BangladeshandChilehaveexpressedinterestinbecomingRCEPmembers.
8The11CPTPPoriginalsignatoriesareAustralia,BruneiDarussalam,Canada,Chile,Japan,Malaysia,Mexico,NewZealand,Peru,SingaporeandVietNam.
ASIA-PACIFICTRADEANDINVESTMENTTRENDS2024/20257
Additionally,moreeconomies,includingChina,CostaRica,Ecuador,Indonesia,Ukraine,Uruguay,andTaiwanProvinceofChinahavesubmittedformalaccessionrequeststoCPTPP.Similarly,theGulfCooperationCouncil(GCC)hascommencedtwonewtradenegotiationswithIndonesiaandTürkiye.Overlappingmembershipswillgrow,furthercomplicatingthe“noodlebowl”oftradeagreements.
Figure3.PatternofsignedandinforceAsia-PacificPTAs,bysubregions,1971-2024
(a)Geographicalcoverage
(b)Scope
(c)Type
Source:APTIAD(accessed24December2024).
Note:TheAsia-PacificsubregionsincludeEastandNorth-EastAsia(ENEA),thePacific,South-EastAsia(SEA),NorthandCentralAsia(NCA)andSouthandSouth-WestAsia(SSWA).
ASIA-PACIFICTRADEANDINVESTMENTTRENDS2024/20258
2.2Broadeningthescopeoftradenegotiations
Whilethenumberofagreementscontinuestogrow,theirscopecontinuestoexpandbeyondtradeingoodsandtariffliberalization.MostofthePTAssignedoverthepastdecadesareFreeTradeAgreementsandEconomicIntegrationAgreements(FTAandEIA)(figure3c).Thesebroadeningtradeagreementsareoftencalledthe“ComprehensiveEconomicPartnershipAgreement(CEPA)”(ESCAP,2022).Accordingly,severalsignedandenforcedPTAsgobeyondtheliberalizationoftradeingoods,coveringservicesandinvestmentaswellasaddressingbehind-the-borderissues,suchasgovernmentprocurement,competition,intellectualproperty,environmentandSMEs.
ThistrendhasbeenprimarilydrivenbyeconomiesinEastandNorth-EastAsia,followedbySouth-EastAsiaandthePacific.AsofDecember2024,morethan50percentofthesignedandenforcedPTAsincludeprovisionson“tradefacilitationandcustomscooperation”(approximately70%),followedby“competitionpolicy”and“intellectualproperty”(figure4).Manynewtradeagreementnegotiationstendtoconcentrateonnon-tradetopics,incorporatingawidespectrumofdomesticissues,suchasaddressingsustainabledevelopmentissues(health,education,gender,humanrights,andenvironmentprovisions)andcross-cuttingissues,i.e.,digitaleconomy(dataprivacyprotection,cross-borderdataflows,onlineconsumerprotection,andcybersecurityprovisions).Thesustainableanddigitalprovisionsarediscussedindetailinthenextsection.
Inaddition,severallongstandingagreementshavebeenrenegotiatedandupgradedtomaketheirprovisions“fitforpurpose”andenhancetheirinclusivityandcomprehensiveness.ThekeyamendmentareasoftheupgradedagreementsbytheAsia-Pacificeconomiesareoftenfocusingonenhancingmarketaccesscommitmentsfor“tradeinservices”oraddressinganemergingissue,suchasincorporatingadditionale-commerceprovisions.Toadapttotheevolvingglobaleconomicarchitecture,sometradeagreementshaveundergonemultipleupgrades.
Forexample,theChinaandNewZealandPTA,whichis16yearsold,completedtheratificationprocessoftheUpgradeProtocolin2022andrelaunchedtheupgradednegotiationsthisyear.Inthepreviousupgradedround,thepartiesnotonlyfurtherreducedtariffratesandnon-tariffmeasures,butalsoincorporatednewchaptersone-commerce,competition,governmentprocurementandenvironment.The2024upgradeaimstofurtherliberalizeservicetradeandinvestmentbasedonthenegativelistmodel.Moreover,JapanandtheEuropeanUnionhaveconcludedruleson
ASIA-PACIFICTRADEANDINVESTMENTTRENDS2024/20259
cross-borderdataflowsintheirEconomicPartnershipAgreement(EPA),whichenteredintoforceinJuly2024.Thisdealensuresefficientdataflows,enablingbusinessestooperatewithoutcumbersomeadministrativeorstoragerequirements(EuropeanUnion,2024).
Figure4.EvolutioninthepolicycoverageofAsia-PacificPTAs,inselectedpolicyareas,1971-2024
250
NumberofPTAswithspecificpolicyareassigned(peryear)
200
150
100
50
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
0
GoodsServices
Investment——TradeFacilitation&CustomsCooperation
CompetitionPolicy——IntellectualProperty
——SustainableDevelopment*——E-commerce
Source:APTIAD(accessed24December2024).
Note:*Sustainabledevelopmentincorporatesthefollowingprovisions,includingprovisionsexplicitlymentioningtheterm“sustainabledevelopment”aswellasprovisionsrelatedtosevennon-tradesustainabledevelopment-relatedtopics,whicharehumanrights,health,SMEs,labourprotection,gender,environmentandeducation.
2.3FocusAreas:Digitaltradeandsustainability
Digitaltradeandthegreeneconomyhavebecomekeynegotiationtopics.Stand-aloneagreementsfocusingonspecificareas,particularlydigitaltradeandthegreeneconomy,haveemerged.DigitalTradeAgreements(DTAs),alsoknownasDigitalEconomyAgreements(DEAs),focusexclusivelyondigitaltrade.Similarly,environmentalagreementssuchastheGreenEconomyAgreement(GEA)andtheAgreementonClimateChange,Trade,andSustainability(ACCTS)havebeenintroduced.
IntheAsia-Pacificregion,thethreesubregionswithdeeptradeagreementsaretheleadingsignatoriesofthesedigitalandenvironmentalagreements.South-EastAsia,followedbyEastandNorth-EastAsiaandthePacific,haveengagedinatleastoneoftheeightoutoftenexistingDTAsglobally
.9
OftheseeightDTAs,fiveareinforce,andthreeareundernegotiation.TheDTAnegotiationbetweenSingaporeandthe
9Ofthe10DTAsglobally,Asia-Pacificeconomieshaveparticipatedineightofthem.Specifically,theeightDTAscomprisefiveinforceagreementsandthreependingnegotiations.Specifically,theJapan-UnitedStatesDigital
ASIA-PACIFICTRADEANDINVESTMENTTRENDS2024/202510
EuropeanUnionsubstantiallyconcludedthisyear.Similarly,South-EastAsiaandthePacificactivelycontributedtotheenvironmental-orientedagreements.
ThefirstDTAwassignedbetweenJapanandtheUnitedStatesin2019andenteredintoforcein2020.DTAsgenerallybuilduponexistingdigital(e-commerce)provisionsintraditionaltradeagreements.However,unlikedigitalprovisionsorchaptersundertradeagreements,theDTAsfacilitatedomesticregulatoryreformsand“soft”cross-bordercollaborationonawiderangeofissues,suchasdatainnovation,digitalidentities,cybersecurity,anddigitalinclusion(WarranandFan,2022).Theyfurtherencompassinclusivedigitaleconomyandsustainabledevelopmentprovisions,suchastheinclusionofspecialtreatmentandcooperationfromMSMEs,aswellasregionalcapacity-building.Theseconcludedprovisionsfurthercomplementmultilateralandregionaldigitaltradeframeworks.Notably,recentdevelopmentsin2024,suchastheproposedWTOE-commerceAgreementandASEANDigitalEconomyFrameworkAgreement(DEFA),areparticularlysignificant(Box1).
SingaporeisattheforefrontofnegotiatingDTAs,activelyparticipatinginmorethanhalfoftheestablishedDTAs.ApartnershipbetweenChile,NewZealand,andSingapore—theDigitalEconomyPartnershipAgreement(DEPA)hasexpanded.In2023,theRepublicofKoreaofficiallyaccededasthefirstnon-foundingmemberofthisplurilateralDTA.EligibleWTOmembers,Canada,China,CostaRica,andPeruareprogressingwiththeaccessionprocedures.TheUnitedArabEmirates,ElSalvadorandUkrainehaveappliedtojointheDEPA.TheDEPA’smodularapproach,wherepartiescanselectanyofthe16digitaleconomymodulestoimplement,couldenablemoreeconomiestoengage.Thesepolicyspacesofferpromisingprospectsinshapingtheharmonizeddigitaltraderulesandmitigatingtheriskofcreatinganew“digitalnoodlebowl”(ESCAP,UNCTAD,UNIDO,2023).
Regardinggreeneconomy-focusedagreements,boththeGEAandtheACCTaregroundbreakingagreementsthatencompasselementsoftrade,investmentandsustainabledevelopment.ThefirstGEAistheAustralia-SingaporeGEAsignedin2022.Additionally,theplurilateralACCTSwassignedin2024byCostaRica,Iceland,NewZealand,andSwitzerland.Theseagreementsseektoshapecommonstandardsontradeandinvestmentinenvironmentalgoodsandserviceswhilecomplementing
TradeAgreement(DTA)wassignedin2019,followedbytheAustralia-SingaporeDigitalEconomyPartnershipAgreement(DEA)(signedin2020),DigitalEconomyPartnershipAgreement(DEPA)(signedin2020),Singapore-UnitedKingdomDEA(signedin2022),andtheRepublicofKorea-SingaporeDigitalPartnershipAgreement(signedin2022).TheSingapore-EFTADEA(launchedinFebruary2023),theRepublicofKorea-EUDTA(launchedinOctober2023),andSingapore-EUDTA(launchedinJuly2023)areundernegotiation.Additionally,twoDTAsoutsideAsia-PacificareMERCOSURAgreementonElectronicCommerce(signedin2021)andtheUnitedKingdom-UkraineDTA(signedin2023).
themultilateralinitiatives.Theliberalizationoftradeinenvironmentalgoodsandservicesisakeycomponentoftheseagreements
.10
Forinstance,theACCTScoversover300environmentalgoodsandmorethan100environmentalandenvironmentallyrelatedservices.Eachagreementalsoaddressesspecificactions:theSingapore-AustraliaGEApromotesdecarbonizationandjobcreationingreensectors,whiletheACCTfocusesonaframeworktotackleharmfulfossilfuelsubsidiesandecolabelling.
TheGEA,similartotheDEA,isdevelopedfromanexistingbilateraltradeagreement.Incontrast,theACCTisanopenplurilateralagreementformedwitheconomiesthatdonothavepriortradeagreements.Currently,stand-aloneenvironmentalagreementsarefewbutholdsignificantpotentialforfutureexpansion.Forinstance,theACCTwillbeopenforWTOmemberstojoin,withNorwayactivelyconsideringbecomingasignatory.
Box1.ImportantdevelopmentsintheWTOE-CommerceAgreement
andASEANDEFA
TheAsia-Pacificeconomieshaveincreasinglyinfluencedthecraftingofdigitaltraderules.Australia,Japan,andSingaporeareco-convenersoftheWTOJointStatementInitiative(JSI)onE-commerce.TheJSIonE-commerceaimstoshapeglobaldigitaltraderules.AsofJune2024,91WTOmembersaccountingforover90percentofglobaltradehaveparticipated,with20ofthemfromtheAsia-Pacific(WTO,2024)
.11
AsofJuly2024,80membersagreedonthestabilizedtextfortheAgreementonE-commerce,althoughsomemembers,includingtheUnitedStates,Brazil,Indonesia,andTürkiye,expressedreservations.AmongthehighlightsinthestabilizedtextistheclausewhichprohibitsPartiesfromimposingcustomsdutiesonelectronictransmissions.Theprohibitionremainsindefiniteunlessamendedinafuturerevieworagreement.Moreover,thestabilizedtextalsoprovidesframeworksforpracticesinelectronictransactions,paperlesstrade,dataandconsumerprotection,cybersecurity,andtransparency
.12
10SeeGEAAnnexB1.1(EnvironmentalGoodsList),AnnexB1.2(EnvironmentalServicesList),availableat
.sg/sagea-text-full.pdf
.TheACCTAgreementtextisnotavailableasofOctober2024.
11The20Asia-PacificeconomiesareAustralia,BruneiDarussalam,China,Georgia,Indonesia,Japan,Kazakhstan,Kyrgyzstan,LaoPeople’sDemocraticRepublic,Malaysia,Mongolia,Myanmar,NewZealand,thePhilippines,theRepublicofKorea,theRussianFederation,Singapore,Thailand,Türkiye,andHongKong,China.
12TheWTOJSIonE-commercecoverssixk
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