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Transit Issues in WTO Negotiations on Trade Facilitation: Overview and Latest Developments

This document provides an overview of transit issues in WTO negotiations on trade facilitation, focusing on regulatory framework and Article V of the GATT. It also discusses the reflection in negotiations and the latest developments in this area.

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Transit Issues in WTO Negotiations on Trade Facilitation: Overview and Latest Developments

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  1. UNCTAD Expert Meeting on TTAs WTO Negotiations on Trade FacilitationTransit Issues at Stake Nora Neufeld, WTO Geneva 25/11/2004

  2. Overview • Transit issues in WTO work • Regulatory framework; GATT Art. V • Reflection in TF negotiations • Latest developments

  3. Part1 • Transit issues addressed in WTO work

  4. 1. Transit issues in WTO work • Main focus Goods area (Article V of the GATT 1994) Some relevance also in the services domain

  5. Part2 • Regulatory framework: Article V of the GATT Art. V

  6. 2. Article V of the GATT • Main features Aims at ensuring free transit of goods Adopted in 1947; no later alterations Focus of attention since the beginning of WTO work on TF in 1996 Suggested core element for envisaged TF negotiations since Seattle

  7. 2. Article V of the GATT • Main obligations

  8. 2.Article V of the GATT Each Member shall grantfreedom of transit • for goods (including baggage), vessels and other means of transport crossing its territory • via the routes most convenient for international transit • with no distinction based on (i) flag of vessel, (ii) origin, (iii) departure, (iv) entry, (v) exit, (vi) destination, or (vii) ownershipof goods, vessels or other means of transport

  9. 2.Article V of the GATT • (Except in cases of failure to comply with applicable customs laws and regulations): Prohibition to • Make such traffic in transit subject to any unnecessary delays or restrictions • Impose customs duties, transit duties or other charges imposed with respect of transit • except (i) charges for transportation, or (ii) those commensurate with administrative expenses entailed by transit, or (iii) with the cost of services rendered

  10. 2.Article V of the GATT All charges and regulations imposed ontraffic in transit shall be • Reasonable, having regard to the conditions of the traffic

  11. 2.Article V of the GATT MFN treatment for traffic in transit • With respect to all (i) charges, (ii) regulations, and (iii) formalities • Interpretative note: With respect to transportation charges, MFN requirement refers to like products being transported on the same route under like conditions

  12. Part3 • Reflection in negotiations and preceding Trade Facilitation work

  13. 3.Reflection in negotiations & preceding work • Early recognition as an area requiring further work Work on transit issues under the Singapore mandate

  14. 3.Reflection in negotiations & preceding work • Extended mandate from the Doha Ministerial Work on reviewing, clarifying and improving Article V

  15. 3.Reflection in negotiations & preceding work • Problems claimed by Members with respect to Article V Not specific enough Not fully operational Not fully enforceable Lack of transparency Too much room for discretion Lacking cooperation Others

  16. 3. Reflection in negotiations + preceding work • Suggestions on how to address them Proposals by Members in preparation for Cancun on how to improve & clarify Article V • Limitation and standardization of customs procedures and documentation requirements • Enhancement of non-discrimination requirement • Clarification and notification of applicable fees and charges • Enhancement of cooperation • Other

  17. 3. Reflection in WTO negotiations • Reflection in Modalities Scope Objective Reference point for work on other aspects

  18. 3. Reflection in WTO negotiations • Scope • Clarify and improve relevant aspects of GATT ArticlesV, VIII + X

  19. 3. Reflection in WTO negotiations • Objective • Further expedite the movement, release and clearance of goods, including goods in transit

  20. 3. Reflection in WTO negotiations • Reference point • Special and differential treatment • Special treatment of LDCs • Identification of TF needs & priorities • Analysis of cost implications • Technical assistance & support for CB • Cooperation with other organizations • Other

  21. Part4 • Latest developments

  22. 4. Latest developments • Establishment of a Negotiating Group • Appointment of a Chair

  23. 4. Latest developments • First meeting of the NG Agreement on a Work Plan … … and on a schedule of meetings (TN/TF/1)

  24. 4. Latest developments • Work Plan – Main features • Work to proceed on basis of Members’ contributions + other input requested • Agenda reflecting all elements of Annex D (§§ 1 – 9) • Relevant international organizations invited to attend on an ad hoc basis

  25. 4. Latest developments • Second meeting of the NG (22-23/11) Educational and stocktaking process • Briefs by other international organizations on their TF work and their TA programmes Contributions to regular items of the NG’s agenda

  26. 4. Latest developments • First substantive proposals on Art. V expected next year

  27. 4. Latest developments • Road ahead Next meeting of NG at the beginning of February 2005

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