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BILATERAL and regional free trade agreements (FTAs) between developed and developing countries are proliferating. They usually contain tariff-reduction commitments and disciplines deeper than at the World Trade Organisation and also contain rules that are not in the WTO. This book argues that the comprehensive and strict obligations these FTAs impose will seriously constrain the developing-country party’s policy-making capacity to pursue national socioeconomic and development goals. As a result of this erosion of policy space and the drastic market-opening demanded by FTAs, no less than the country’s development prospects would be undermined. This book examines the development implications of FTAs for signatory developing countries in each of the major areas typically covered by these agreements, including trade in goods, trade in services, investment, government procurement, competition policy and intellectual property rights. In light of the very real risks posed, developing countries should assess the costs and benefits of an FTA before deciding whether to enter into or conclude negotiations. The book uses the typical FTA that the United States adopts with developing countries as the main basis of its analysis. FTAs adopted by other developed countries share many of the same features. ABOUT THE AUTHOR MARTIN KHOR is the Director of the Third World Network. An economist trained in Cambridge University, he is the author of several books and articles on trade, development and environment issue. Contents Chapter 1. Bilateral Free Trade and Economic Agreements Chapter 2. Disadvantages of FTAs Compared to Multilateral Trade Agreements Chapter 3. Changing Views on the Effects of Liberalisation Chapter 4. "Reciprocity" as a Principle in FTAs Chapter 5. Main Features of FTAs Between Developed and Developing Countries Chapter 6. Market Access in Goods Chapter 7. Services Does the degree of services liberalisation matter for development? Chapter 8. Investment: Liberalisation and Investor Protection The "Singapore issues" Background to investment issue Main design and features of the investment chapter Some implications of the investment chapter in FTAs The need for space and flexibility for investment and development policies and the effects of the FTA investment chapter Conclusions Chapter 9. Liberalisation of Government Procurement Government procurement in trade agreements Features of government procurement in FTAs involving the US National policy changes needed due to FTA Erosion of policy space and in the role of government procurement Limited gains from US procurement market access Effects of government procurement liberalisation under FTA Chapter 10. Competition Policy Background to the issue Towards a development framework on competition for developing countries The US proposal on competition in its FTAs: Anti-competitive business conduct, designated monopolies and government enterprises Development implications of the competition chapter Chapter 11. Intellectual Property Rights Background Patents and access to medicines The developing country will be obliged to sign up to many international IP treaties Effects on patenting of life, biodiversity, genetic resources, agriculture and farmers Patent Cooperation Treaty Scope of patentability Copyright Enforcement of IP Chapter 12. GMOs and Food Safety Chapter 13. The European Union's Economic Partnership Agreements Chapter 14. Need for Policy Framework and Assessment of Costs and Benefits References