An early harvest scheme is a trade agreement between countries or regions that allows for the immediate liberalization (removal of trade barriers) of certain goods or services while leaving other items to be liberalized at a later date.
This allows for the partial liberalization of trade between the participating countries or regions and can serve as a stepping stone towards a more comprehensive free trade agreement.
It is a harbinger of a free trade agreement between two trading partners in order to help the countries identify certain products for tariff liberalization, pending the conclusion of an FTA negotiation.
Early harvest schemes can take a variety of forms and may involve the immediate liberalization of a limited number of goods or services, or the phased liberalization of a larger number of items over a period of time.
They may also involve the liberalization of trade in certain sectors, such as agriculture or manufacturing, while leaving other sectors, such as services or intellectual property, for later negotiations.
It is primarily a confidence-building measure between two trading partners.
However, the early harvest agreements can result in delaying comprehensive free trade agreements. Moreover, these agreements can be challenged in WTO as only FTAs are exempted from WTO rules.
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