2004年-世界发展银行全球_Trade_Policies_in_South_Asia___An_Overview_Volume_3_Some_Key_Sectors_110页_8mb

Trade Policies in South Asia: An Overview (Volume III - Key Sectors)

Core Content

This document provides an overview of trade policies in South Asia, with a focus on agriculture, livestock, fisheries, and the fertilizer and textile sectors. It examines the evolution of these policies up to 1997 and the developments since then, highlighting the impact of trade liberalization, exchange rate fluctuations, and international agreements such as the Uruguay Round and the Agreement on Agriculture (AoA). The report also discusses the role of various domestic institutions and the challenges faced by the region in aligning with global trade practices.

Main Points

1. Agriculture, Livestock, and Fisheries

• Economic Significance: These sectors account for a large share of the workforce and GDP in South Asian countries, though their share has been declining with economic growth.
• India's Dominance: India has the largest agricultural economy in the region, contributing 77.2% of the total agricultural, livestock, and fisheries GDP in 2000.
• Pre-1997 Policies: Trade policies were highly protectionist and discriminatory against agriculture. Exchange rate overvaluation, export bans, and direct controls and taxes on agricultural exports hindered competitiveness.
• Impact of Green Revolution: Despite protectionist policies, green revolution technologies helped boost agricultural productivity and reduce domestic prices in the 1970s and 1980s.
• Trade Liberalization (1977-1997): Trade reforms in South Asian countries, especially Sri Lanka, had limited effects on agricultural trade policies. Exchange rate devaluations and manufacturing liberalization had a more significant impact on export competitiveness.
• WTO and AoA: South Asian countries (except Nepal and Bhutan) joined the WTO and signed the AoA, but the immediate impact was limited due to high tariffs and continued protectionist measures.
• Post-1997 Developments: Exchange rate devaluations supported export industries, but import policies remained restrictive. Some countries, like India, maintained import bans or strict licensing systems.

2. Fertilizer Policies

• Overview: Fertilizer policies in South Asia are influenced by the need for self-sufficiency and the role of public and private investments.
• Country-Specific Policies:
  • India: High levels of protection through subsidies and price controls.
  • Pakistan: Fertilizer import department (FID) and various subsidies.
  • Bangladesh: Fertilizer policies were less developed compared to India and Pakistan.
  • Nepal and Sri Lanka: Fertilizer policies were more limited and focused on local production and import controls.

3. Textiles, Garments, and the MFA Phaseout

• Setting: The textile and garment (T&C) industry is a major export sector in South Asia.
• Global Trends: The MFA (Multifibre Agreement) was phased out, leading to changes in trade policies.
• Domestic Protection: Countries like India, Pakistan, and Bangladesh continued to use high tariffs, QRs, and other measures to protect their T&C industries.
• Impact of MFA Phaseout: The phaseout led to increased competition and the need for policy adjustments to maintain competitiveness.
• Backward Linkages: The T&C industry is closely linked to other sectors, such as agriculture and manufacturing, and the protection of these linkages is crucial for the industry's survival.

Key Information

• Trade Liberalization: While trade liberalization started in the late 1970s, its impact on agriculture was limited due to continued protectionist measures.
• Exchange Rates: Real effective exchange rate devaluations had a significant effect on export competitiveness, particularly in the 1980s and 1990s.
• WTO Agreements: The AoA and other WTO agreements influenced trade policies, but their implementation was delayed or limited due to high tariffs and domestic regulations.
• Non-Tariff Barriers (NTBs): These were used extensively to protect domestic industries, including QRs, import licenses, and state trading monopolies.
• Sector-Specific Policies:
  • Agriculture: Protectionist policies were widespread, with high tariffs and subsidies.
  • Fertilizers: High levels of domestic support and limited import liberalization.
  • Textiles and Garments: Continued protection through tariffs, QRs, and state enterprises.

Conclusions and Recommendations

• Agricultural Protection: Despite trade liberalization, agricultural sectors in India, Pakistan, and Bangladesh remained highly protected.
• Exchange Rate Impact: Devaluations supported export competitiveness but did not significantly affect domestic prices due to insulation from world markets.
• Need for Reform: The report suggests that further reforms are necessary to align South Asian trade policies with global standards and to reduce protectionist measures that hinder economic growth and competitiveness.

Appendix Highlights

• VAT Exemptions: In Bangladesh, VAT exemptions or reductions had protective effects on domestic producers and distributors.
• Tariff Data: The document includes detailed tariff data for various agricultural and textile products across South Asian countries, highlighting the differences in protection levels.

Summary of Trade Policies

Key Terms and Abbreviations

• AoA: Agreement on Agriculture
• QRs: Quantitative Restrictions
• STEs: State Trading Enterprises
• MFN: Most Favoured Nation
• WTO: World Trade Organization
• MFA: Multifibre Arrangement
• GATT: General Agreement on Tariff and Trade
• NTBs: Non-Tariff Barriers
• CPI: Consumer Price Index
• ERP: Effective Rate of Protection
• TBT: Technical Barriers to Trade
• SPS: Sanitary and Phyto-Sanitary
• DEPB: Duty Exemption Passbook
• LDC: Least Developed Country
• SD: Non-supplementary Duty

Conclusion

The report emphasizes the continued protectionist nature of South Asian trade policies in agriculture and textiles, despite international commitments and regional trade agreements. It highlights the need for further liberalization and alignment with global trade practices to enhance competitiveness and economic growth.