Pacts should not encourage developing countries to relinquish policies supporting development
New Delhi: Multilateral agreements should not encourage or push developing countries like India to relinquish policies that support economic development, a report by United Nations body UNCTAD has said.
The report said that these pacts often come with stricter commitments which require policymakers to forsake the use of instruments that have proved effective in supporting industrialisation. Developing countries should take into account the loss of policy space when engaging in bilateral and regional trade and investment agreements, it has cautioned.
The post-2015 development agenda will not be feasible without the availability of more instruments and grea-ter flexibilities in policymaking, it said. It further suggested that in the longer run they can trap producers into commodity enclaves.
( Source : PTI )
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