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WTO-Related Aspects: Multilateral Policy and Relations

WTO-Related Aspects: Multilateral Policy and Relations. Screening Iceland Chapter 30, External Relations – Bilateral Brussels, 19 May 2011. Content. Iceland as a member of the WTO Agriculture Industrial products Trade in services Government Procurement Agreement Trade defence

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WTO-Related Aspects: Multilateral Policy and Relations

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  1. WTO-Related Aspects:Multilateral Policy and Relations Screening Iceland Chapter 30, External Relations – Bilateral Brussels, 19 May 2011

  2. Content • Iceland as a member of the WTO • Agriculture • Industrial products • Trade in services • Government Procurement Agreement • Trade defence • Doha Development Agenda • Dispute settlement • The EU acquis • Issues that require specific attention in the negotiations

  3. 1. Iceland as a Member of the WTO (1) • Party to the GATT (1968) • Founding member of the WTO (1995) • Member of the GPA (2001) • Strong supporter of the rules based system • Membership has served Iceland well • WTO affairs are dealt with by the entire government however the Ministry for Foreign Affairs is responsible for WTO Membership, and coordinates government positions

  4. 1. Iceland as a Member of the WTO (2) • Main legal acts implementing obligations: • Customs Act No 88/2005 • Act on Production Pricing and Sale of Agricultural products, 99/1993 • Various legislation on services • Various legislation on TRIPS implementation • Public Procurement Act No 84/2007 • EEA-obligations often reflect WTO rules

  5. 2. Agriculture (1) • Tarification in the Uruguay-round • High bound rates – lower applied rates • 62% of tariff lines are duty free (applied) • 66% of imports are duty free (value) • High tariffs (AVE 50-100%, >100%) are applied for 20% of tariff lines • Specific duty is applied for 18,2% of tariff lines

  6. 2. Agriculture (2) • Market access through quotas (current access and minimum access quotas) • Applied quotas on: meat, processed meat, butter, cheese, potted plants. • Administered by the Ministry for Fisheries and Agriculture • High in-quota tariffs are currently applied

  7. 2. Agriculture (3) • No export subsidies granted (bound at zero) • Bound AMS 130,1 million SDR • Influence upon Accession: • Customs Union and CAP

  8. 3. Industrial products • 77% of tariff lines are duty free • No applied tariffs above 15% • Most dutiable lines have 5-10% applied rates • Fish and marine products are duty free • Important raw materials for the industries are duty free • Iceland is a party to the Information Technology Agreement • Upon Accession: Customs Union

  9. 4. Services (1) • The level of commitments is comparable with that of the EU Member States • Iceland has undertaken commitments in 9 out of 12 services sectors • Business services; (tele)communications services; construction and related engineering services; distribution services; financial services; tourism and travel related services; environmental services; recreational, cultural and sporting services; and, transport services

  10. 4. Services (2) • No commitments on education services, health related and social services, other services • Commitments on gambling and betting services and maritime services • Commitments on energy services in line with MS commitments • No commitments on public utilities, audiovisual services, broadcasting services • The MFN exceptions are in line with those of the EC. • In principle , Iceland foresees no difficulties in adjusting its commitments upon Accession (horizontal or vertical)

  11. 5. Government Procurement Agreement • Iceland is a member to the WTO Agreement on Government Procurement (2001) • Legal framework • Act on Public Procurement, No 84/2007 • The act implements Directive 2004/18/EC on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts and Directive 2004/17/EC coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors • Icelandic law and commitments under the GPA are in line with the acquis and the commitments of the EU

  12. 6. Trade Defence: Anti-dumping, Subsidies and Countervailing Duties (1) • WTO Agreement on implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (anti-dumping) and the WTO Agreement on Subsidies and Countervailing Measures • Legal framework • Iceland - Article 133 of the Customs Act No. 88/2005 (Imposition of anti-dumping and countervailing duties) • Two complaints in the last 10 years • No actions taken

  13. 6. Trade Defence: Anti-dumping, Subsidies and Countervailing Duties (2) • Icelandic rules on anti-dumping, subsidies and countervailing measures are in accordance with the WTO Valuation Agreement and are therefore very similar to the rules of the EU • Council Regulations (EC) No 1225/2009 on protection against dumped imports and regulation (EC) No 597/2009 on protection against subsidized imports would take direct effect upon accession

  14. 7. Doha Development Agenda • Active participation • Agriculture: Member of the G-10, would undertake significant commitments • Industrial products: Favours ambition outcome; Co-sponsor of the sectoral on fisheries products • Rules: Advocate for stronger disciplines on fisheries subsidies, Friends of Fish • Services: Good level of binding – demandeur in certain sectors • GIs: Has co-sponsored initiatives from the EU (W52 sponsor)

  15. 8. Dispute settlement • Iceland has never been involved in a dispute • Has participated as a third party in 6 cases • Iceland has recently reserved third party rights in EU- Seal (DS400 and DS 401)

  16. 9. The EU Acquis • Council Regulation (EC) No 1061/2009 of 19 October 2009 establishing common rules for exports • Council Regulation (EC) No 260/2009 of 26 February 2009 on the common rules for imports • Council Regulation (EC) No 717/2008 of 15 July 2008 establishing a Community procedure for administering quantitative quotas • Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against dumped imports from countries not members of the European Community. • Council Regulation (EC) No 597/2009 of 11 June 2009 on protection against subsidised imports from countries not members of the European Community • Council Regulation (EC) No 3286/94 of 22 December 1994 laying down Community procedures in the field of the common commercial policy in order to ensure the exercise of the Community's rights under international trade rules, in particular those established under the auspices of the World Trade Organization • Council Regulation (EC) No 732/2008 of 22 July 2008 applying a scheme of generalised tariff preferences for the period from 1 January 2009 to 31 December 2011 • Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions of 4 October 2006 "Global Europe: Competing in the word" COM(2006) 567 final • Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions of 18 April 2007: "Global Europe: a stronger partnership to deliver market access for European exporters" COM(2007) 183 final

  17. 10. Issues that Require Specific Attention in the Negotiations • Securing Iceland'simportinterests, such as regarding raw material for industry and fish and related products for processing of fish and other marine products • Securing Iceland's interests in the import of services. • As the Common Commercial Policy reflects important internal policies, the outcome of this negotiating Chapter will have to take into consideration the outcome of other Chapters with respect to International Agreements and representation.

  18. Ministry of Finance http://ministryoffinance.is/ Ministry for Foreign Affairs http://www.mfa.is EU Application Website http://europe.mfa.is/

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