Searching for the ‘Environment’ in
India’s RTAs
Pramod Dev M
CUTS Centre for International Trade Economics and Environment
19 June 2007, Tokyo
Environment in India’s Current & Future RTAs
Current FTA/PTAs
Direct 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 India’s 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 Agreements
Direct reference to action on
Environment and prospects
India - ASEAN
Yes. Weak
India- Thailand
Yes. Weak
India- South Africa Customs Union (SACU)
Not Available
Environment in India’s Current & Future RTAs
Joint Study Group (JSG)/
Joint Action Plan (JAP)
Direct reference to action on
Environment and prospects
India- EU JAP
Yes. Strong. Under more than one item
India - Japan
Yes. Strong. Under more than one item.
India - S. Korea
Yes. 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, India’s policy on PTAs was
influenced by political concerns; and with
Developing countries.

Official view- environment is beyond the agenda
of India’s negotiations on RTAs.

Consistency with India’s 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.

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.

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 debate & coverage in popular press is
poor.
Impact: Limited scope for assimilation of
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.

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 India’s 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.

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.

Multilateral Vs Regional or
Multilateral with Regional?
- Thank You -