WTO

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  • AGRICULTURE: towards a market oriented structure; three pillar: domestic support, export competition, market access
    -INTERNAL SUPPORT REDUCTIONS
    -QRs ALLOWED: TO BE REDUCED
    -MINIMUM, CURRENT ACCESS CONCEPTS: TO BE EXPANDED
    Marrakesh protocol: incorporated negotiated tariff reductions into GATT 94 – five phases, latest in 4 years after entry into force
    TBT, SPS: encourages the adoption of international standards, no member to be prevented from applying standards but should not be disguised protectionism
  • GATS-BASIC DISCIPLINES
    - borrowing concepts from GATT; but quite different in certain aspects
    - no definition of service but trade in services; four modes of supply
    - foresees progressively higher levels of lib. through successive rounds of negotiations; bottom up approach; few general obligations (MFN, transparency); other obligations applying to sectors where Member has made a specific commitment
  • Basic principles applicable.
    Basic disciplines (standards)
    Provisions of other related Conventions incorporated indirectly
    Importance of enforcing mechanisms
  • WTO

    1. 1. Introduction to the WTO
    2. 2. From GATT to WTO From a provisional agreement to an Organisation:  Havana Charter  GATT (1 January 1948 – 31 December 1995)  23 Contracting Parties  123  8 Rounds of Negotiations  WTO (1 January 1995) 2
    3. 3. WTO: What is it? An international Organization:  Organization created by the Marrakesh Agreement  Sui generis organisation (independent from the United Nation system)  Replaces the GATT (created in 1947) 5
    4. 4. WTO: What is its purpose? WTO Objectives:  Raising standards of living  Ensuring full employment  Ensuring growth of real income and demand  Expanding production and trade  Sustainable development  Protection of the environment 6
    5. 5. WTO: What is its purpose? WTO Functions:  Administer and implement the WTO     agreements Forum for negotiations Administer Settlement of Disputes Administer Trade Policy Review Mechanism Technical Assistance to developing countries 7
    6. 6. WTO: How does it work? Set of rules The negotiated legal rules included in the various WTO agreements cover the following topics:  Trade in Goods  Trade in Services  Trade-related aspects of intellectual property rights  Dispute Settlement  Trade Policy Reviews 9
    7. 7. Marrakesh Agreement Annex 1 Annex 1A Agreement on Trade in Goods    Annex 1B Agreement on Trade in Services (GATS)   Annex 1C General Interpretative Note GATT 1994 - 6 Understandings (on the interpretation of various GATT provisions) - Marrakesh Protocol to the GATT 1994 + Schedules of Tariff Concessions Specific Agreements (11) Schedules of specific commitments MFN exemptions Trade-related aspects of Intellectual Property Rights (TRIPS) ! Refer also to pertinent Convention on Intellectual Property Rights (WIPO)  10
    8. 8. Marrakesh Agreement Annex 2 Understanding on Rules and Procedures Governing the Settlement of Disputes Annex 3 Trade Policy Review Mechanism Annex 4 Plurilateral Trade Agreements Decisions and Declarations adopted at Marrakesh  Decisions and Declarations adopted afterwards (-> Evolving legal framework)  Agreements hierarchy 11
    9. 9. WTO: How does it work? WTO Structure Appellate Body Ministerial Conference TPRB General Council Goods Council Services Council Committees Committees TRIPS Council Director-General Secretariat DSB Dispute Settlement Panels CTD (Development) CTE (Environment) CRTA (Regionalism) BOP Budget WG (Accessions, Investment, competition, Government Procurement) 13
    10. 10. WTO: How does it work? Secretariat  About 750 staff  Headed by a Director-General (DG)  Budget 2009: 190 millions Swiss francs + extra-budgetary funds (about 24 millions Swiss francs) 14
    11. 11. WTO: How does it work? Decision making  Member-driven organisation  Consensus (GATT practice), even if voting procedures exist  Consensus when no Member formally object to a decision  “Negative” consensus 16
    12. 12. WTO: How does it work? Meetings  Type of meetings (formal, informal, special sessions, consultations, multi- /pluri- /bilateral)  All WTO Bodies open to all Members (specificities for panels and Appellate Body) 17
    13. 13. WTO Coverage GATT 1994 Multilateral Agreements on Trade in Goods GATT 1947 Rectifications, amendments and modifications which entered into force before 1.1.1995 (Protocols, Decisions of the CONTRACTING PARTIES). Protocols of Accession (to GATT) Understandings on (Art. II:1b, XVII, XXIV, XXVIII, BOP provisions, Waivers) Marrakesh Protocol Schedules of Tariff Concessions Agreements on Agriculture Textiles and Clothing TRIMs Antidumping Subsidies and Countervailing Measures PSI Rules of Origin Safeguards Import Licensing Customs Valuation TBT SPS Decisions, Declarations 18
    14. 14. WTO Coverage General Agreement on Trade in Services GATS PART I (Scope and Definitions) PART II (General Obligations and Disciplines) PART III (Specific Commitments) Schedules on Specific Commitments PART IV (Progressive Liberalization) PART V (Institutional Provisions) ANNEXES Annex on Article II (MFN) exemptions) Lists of Art. II (MFN) Exemptions Annex on Movement of Natural Persons Supplying Services under the GATS 3rd Protocol (1995) Annex on Air Transport Services Annex on Financial Services 2nd, 5th Protocol (1995, 1997) Second Annex on Financial Services Annex on Negotiations on Maritime Transport Services Annex on Telecommunications Annex on Negotiations on Basic Telecommunications 4th Protocol (1997) Decisions, Declarations 19
    15. 15. WTO Coverage Trade-Related Aspects of Intellectual Property Rights (TRIPS) TRIPS PART I (General Provisions and Basic Principles) PART II (Standards concerning the availability, scope and use of IPR) Section 1: Copyright and Related Rights Section 2: Trademarks Section 3: Geographical Indications Section 4: Industrial Designs Section 5: Patents Section 6: Layout-designs (Topographies) of Integrated Circuits Section 7: Protection of Undisclosed Information (Trade Secrets) Section 8: Control of Anti-competitive Practices in Contractual Licenses PART III (Enforcement of IPR) PART IV (Acquisition and Maintenance of IPR and related Inter Partes Procedures) PART V (Dispute Prevention and Settlement) PART VI (Transitional Arrangements) PART VII (Institutional arrangements: Final Provisions) Decisions, Declarations 20
    16. 16. Evolution of WTO framework Decisions and Declarations (few examples)  1996 Singapore ministerial conference  Singapore Topics  Trade Facilitation, Investments, Competition, Transparency in Government Procurement  « Information Technology » Initiative  1998 Geneva ministerial conference  Electronic Commerce  1999 Seattle ministerial conference  2001 Doha ministerial conference  Doha Development Agenda 21
    17. 17. Doha Development Agenda 14 Nov. 2001: Doha Ministerial Declaration Define the mandate for the negotiations on various topics as well as other work (implementation) 1 Feb. 2002: First TNC Meeting Establish the structure and the main principles for the negotiation 22
    18. 18. Doha Development Agenda 14 Nov. 2001: Doha Ministerial Declaration Define the mandate for the negotiations on various topics as well as other work (implementation) 47. [...] the conduct, conclusion and entry into force of the outcome of the negotiations shall be treated as parts of a single undertaking. [...] (DDA, paragraph 47) Single undertaking: “Nothing is agreed until everything is agreed” 23
    19. 19. Doha: Work Programme Implementation (§12) Agriculture (§13-14) Services (§15) Market Access for Non-Agricultural Products (§16) TRIPS (§17-19) Trade and Investment (§20-22) Trade and Competition Policy (§23-25) Transparency in Government Procurement (§26) Trade Facilitation (§27) WTO Rules (§28-29) Dispute Settlement (§30) Trade and Environment (§31-32) Electronic Commerce (§34) Small Economies (§35) Trade, Debt and Finance (§36) Trade and Transfer of Technology (§37) Technical Cooperation and Capacity Building (§38-41) Least-Developed Countries (§42-43) Special and Differential Treatment (§44) 24
    20. 20. Doha Negotiations: Negotiating groups meet during special sessions of existing WTO bodies, at the exception of (*) for which new Negotiating Groups have been created. Structure General Council Trade Negotiations Committee Chairman: WTO DG (ex officio) Goods - Agriculture Services - Services - NAMA (*) - Trade Facilitation (*) - Cotton TRIPS - Geographical Indications Other Issues - Dispute Settlement - Development - Environment July Decision - Rules (*) 25
    21. 21. Doha Development Agenda 14 Sep. 2003: Cancun Ministerial «Statement» « Mid-term review »: Existence of important divergences and delays in relation with program established at Doha Dec. 2003: General Council Decision Priority given to four issues:     Agriculture (modalities) Non agricultural Market Access [NAMA] (modalities) Singapore issues Cotton (initiative from 4 African countries) 26
    22. 22. Doha Development Agenda 1 August 2004: Adoption of the «July Package»  Negotiations start again (« framework »)  Singapore issues clarified (only trade facilitation included in Doha Round).  Cotton issue included in agricultural negotiations (Subcommittee) 27
    23. 23. Doha Development Agenda Dec. 2005: Hong Kong Ministerial Declaration Limited Progress but in the right direction… Deadline for all agricultural export subsidies  Agreement on cotton  Duty-free/quota-free access for the 32 LDC Members  Agriculture and NAMA: framework for full modalities  Progress in relation with services negotiations…  28
    24. 24. Doha Development Agenda June 2006: Decision on transparency for RTAs… July 2006: Negotiations suspended… December 2006: General Council Decision on transparency for RTAs February 2007: DG: “We have resumed negotiations fully across the board” 29
    25. 25. Doha Development Agenda April 2008: DG signals start of “horizontal process” May 2008: Services Chair issues report and draft text Since July 2007: Draft texts, and revisions, on modalities for Agriculture and NAMA circulated by the chairmen (2008...2009...2010) 30
    26. 26. Doha Development Agenda March 2010: “We are not where we wanted to be by now”  Informal consultations (regional groups, small groups in variable geometry and with individual Members)  Members committed to the mandate of the Round and to its successful conclusion. Value of the system (e.g. global economic crisis- MTS has prevented a descent into full scale protectionism.  Sense of frustration at the slow pace of the negotiations, but there is a clear catalogue of gaps Picture is more blurred is regarding the size of some of these gaps (Blue Box in agriculture or in Trade Facilitation). Size of gaps much less clear in NAMA or Fishery Subsidies.  Next steps: mix of technical and political preparations to start devising the contours of a package Need to build on what is already on the table (Chairs' texts), avoid backtracking, and maintaining the development dimension of the Round.  A "cocktail" approach: Chair-led processes within the Negotiating Groups, maintaining an overview of the entire negotiating landscape (transparency and inclusiveness), and smaller groups in variable geometry and bilateral contacts remain necessary and essential –moving towards a more horizontal view of the issues (negotiating groups and the TNC remaining the anchor of the negotiating process)  Ministerial involvement: make productive use of up-coming gatherings (e.g. Cairns Group, APEC and OECD) , possible Ministerial engagement if needed 31

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