Arnoldshain Seminar XV
“The EU and Latin America Facing Globalization”
September 4 – 6, 2017

Khorana, Sangeeta, University of Bournemouth, and Badri G. Narayanan, Mega-Regional Trade Agreements: Costly Distractions for Developing Countries?
This paper examines how mega-regional agreements aim to liberalise ‘substantially all trade and investment’ and how this could potentially impact on global health through tariff elimination and stronger intellectual property commitments by partner countries? We analyse two interlinked policy concerns: first, how tariff reduction/elimination under mega regional agreements impact on the production of sugar. Second, how mega regional agreements with Trade-Related Aspects of Intellectual Property Rights (TRIPS) style and TRIPS-plus commitments could modify intellectual property rules among partner countries and impact on developing countries’ access to life saving drugs and access to medicines. Using a dynamic GTAP model we find there are significant health consequences of trade commitments undertaken by developing countries. Results show potential detrimental health effects on populations such that first, production of sugar increases and this alters consumption trends. Second, though there are stricter intellectual property rules that result in net global gains developing countries suffer in terms of adverse health impact and there is regulatory chill effect. Keywords: Government policy (I18); Economic Integration (F15); Trade Policy (F13)