Private Sector Perspectives of PTA Technical Workshop on International Merchandise Trade Statistics: Focusing on goods traded under the preferential trade agreements 26 Feb-3 March 2018 Venue: Pacific Islands Forum Secretariat, Suva UNCTAD, 2008

Content Outline PTA opportunities for the Private Sector Challenges: What hinders private sector exploitation of PTAS? What should be done? Fundamental issues

Opportunities for the Private Sector PTAs provide guaranteed and predictable market access conditions for the private sector: Good for investment decisions-capable enterprises! PTAs reduce market access tariff constraints, thus increase private sector profit margins. PTAs open doors for transfer of skills, knowledge and technology across countries. Hence, strengthening intra-regional value chains, and increasing private sector productivity.

PTA Challenges The number of regional and sub-regional PTAs is increasing: Countries multiple memberships in different PTAs rise compliance costs for the private sector. Dealers with non-PTA members face trade diversion, in favour of new PTA members Every PTA creates another set of trade policies (at times simpler than existing), which requires a shift in product production processes and procedures, to meet PTA market access requirements; Despite a decline in Tariffs, NTBs continue to limit business opportunities PIFS through the PT&I continue to assist private business over destination market access information asymmetry and constraints. UNCTAD, 2008

Challenges cont’d PTAs creates a bigger market demand, which require investment capacities to increase productivity. However, limited access to trade finance limits such investments and productive capacities-esp. for MSMEs. PTA language is technical and not common to non-trade policy professional; Simplified information on PTAs is rarely found in public domain, which creates information asymmetry, and associated transaction costs. UNCTAD, 2008

What Should Be Done: Fundamental issues PTAs should not be considered in isolation from other Business support services-including access to finance; Harmonisation of Business policies (for instance PICTA RoO) existing in the different PTAs is necessary; Action on NTBs is required; and Private Sector should be assertive and more engaged in the implementation of PTAs, through established national institutions, including: National Trade Development/ Facilitations Committees. Simplified versions of PTAs (at least RoO) should be in public domain-where possible, translated in popular national language.