1. 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

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

3. 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.

4. 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

5. 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

6. 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.