TWN Info
Service on Free Trade Agreements
15 March 2009
TWN Preliminary Report on FTA/WTO and Financial Crisis
A TWN
report finds that North-South free trade agreements (FTAs), bilateral
investment treaties (BITs) and World Trade Organization (WTO) commitments
often contain a number of provisions that can increase the likelihood
of a financial crisis and make it more difficult to take the necessary
measures to deal with one once it occurs. This note briefly highlights
the main provisions in these agreements that can hamper the effective
implementation of recommendations to deal with the current crisis.
In particular,
it examines the effect of these provisions on the ability to effectively:
- Regulate the
operation of financial institutions/instruments
- Regulate capital
flows
- Carry out bailouts
- Implement stimulus
packages
It finds that some
areas covered in these agreements can make it difficult to effectively
carry out the measures above. Whilst most barriers are likely
to come from the services and investment chapters, the competition,
goods and government procurement chapters in North-South FTAs can also
have an effect.
The report
is available online at: http://www.ftamalaysia.org/article.php?aid=217
Best
wishes,
Third World Network
2-1, Jalan 31/70A
Desa Sri Hartamas
50480 Kuala Lumpur
Tel: +603-2300 2585
Fax: +603-2300 2595
email: twnkl@po.jaring.my
websites: www.twnside.org.sg, www.ftamalaysia.org
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