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International development experts share their ideas on how wealthy countries can promote prosperity in developing countries. Follow at cgdev.org/cgd-podcast.

A TPPing Point on Trade? - Harsha Singh

Jul 21, 2014

TPP? TTIP? In the world of trade negotiations, there is no shortage of acronyms. And who better to break them down for us than Harsha Singh, former deputy director general at the World Trade Organization? Harsha recently visited CGD to join Kim Elliott in leading a roundtable to discuss with other trade experts the implications of these proposed mega-regional trading blocs for developing countries. After the roundtable, I invited Harsha to join me on the Wonkcast to explain the development implications of these trade deals to interested non-experts, with a particular focus on the impacts of smaller, poorer countries who are unlikely to be included.

Proposals for the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) arose in part out of frustration with the World Trade Organization’s Doha Round, Harsha explains. (The TPP is proposed to include the United States, Canada, Mexico, Peru, Chile, Australia, New Zealand, Brunei, Singapore, Vietnam, Malaysia, and Japan; TTIP would include the United States and the EU.)

The TPP and TTIP aim to enhance trade and investment among members, but they could also pose huge challenges for small, poor countries that find themselves excluded, he says. One of the primary concerns “is the diversion of markets away from their products to those who get preferential treatment as members of these mega-regionals.” Harsha says that while most of the focus has been on tariff preference erosion, nontariff barriers to market access may pose a much more serious problem. 

“The important thing is not just meeting the standards, but also the system which is used to determine that the standard actually is consistent with what is being demanded," Harsha explains. "That system can often be exclusionary.”

For more on these issues, read Kim Elliott's account of the roundtable discussion and listen to the Wonkcast. Among the topics we tackle: the impact of the mega-regional trade deals on the big emerging market economies, Brazil, China, and India, and the global value chain for an iconic 21st century product: the iPhone.

My thanks to Kristin Sadler for a first draft of this blog post and to Kristina Wilson for recording and editing the Wonkcast.