Framework needed to analyse trade pact impacts, says official

A proper analytical framework is necessary to gauge the impact of several trade agreements signed by Viet Nam on the economy and society, a trade official says.

Nguyen Thi Hoang Thuy, deputy director of the Department of Multilateral Trade Policy under the Ministry of Industry and Trade, said it was also necessary to analyse trade agreements to use them effectively.

The country is party to seven free trade agreements (FTA) and is negotiating many others, she noted.

“Viet Nam’s economy is in a transformation stage and vulnerable to the disadvantages of global integration, so analysis is immensely significant for any FTA negotiation,” she said.

Thuy told a two-day workshop held by MUTRAP III in HCM City yesterday that the first benefit of FTA analysis is knowledge of the status quo in trade relations between countries, which could help measure the competitive pressure on Vietnamese products.

It could also help avoid negatives in negotiating new FTAs, she said.

MUTRAP III is a multilateral trade assistance project (3rd-phase) implemented by the European Commission to help Viet Nam prepare for, carry out and follow up on WTO membership obligations and opportunities.

The workshop was attended by governmental officials, trade experts and academics.

Dr Anna Strutt, a MUTRAP speaker at the workshop, said the international trade environment could change rapidly because international markets are continually evolving and the number of preferential trade agreements was increasing.

Strutt reiterated the importance of an analytical approach saying this should include an analysis of international trade statistics, detailed sectoral analysis, national and international modelling and discussion on broader issues.

According to Dr Thierry Coulet, an expert with MUTRAP, knowledge of products and markets, SWOT (strengths, weaknesses, opportunities and risks) analysis, strategies for each sector and transparency of commitments to trade partners are benefits gained from this approach.

These were significant in helping define appropriate negotiation positions and to measure impacts of existing and potential future market openings, Coulet said.

He called for more research on the dynamic relations between trade liberalisation impacts and capital accumulation, the nature and content of domestic reforms, and the impacts of FDI in services.

He said this was necessary as the nation proceeded to the next step of global trade integration.

Strutt outlined a seven-step strategy for FTA negotiations used by MUTRAP, emphasizing the steps of implementation and review, forecasting and detailed impact analysis. — VNS

Tags: Vietnam trade, Vietnam trade deficit 2010