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Introduction to the WTO

Wednesday 2 April 2008 UNCTAD Elliott Paige, ITTC, WTO St. Petersburg/Moscow STUDY TOUR. Introduction to the WTO. 2. The GATT Years. 1. The modern Multilateral Trading System. 3. The WTO. 4. The GATT/WTO Basic Principles. 5. Doha Development Agenda. GATT 1947. 1949. “Annecy Round”.

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Introduction to the WTO

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  1. Wednesday 2 April 2008 UNCTAD Elliott Paige, ITTC, WTO St. Petersburg/Moscow STUDY TOUR Introduction to the WTO

  2. 2. The GATT Years 1. The modern Multilateral Trading System 3. The WTO 4. The GATT/WTO Basic Principles 5. Doha Development Agenda

  3. GATT 1947 1949 “Annecy Round” 1951 “Torquay Round” RULES (“Framework Agreements”) - CP Decisions 1956 “Geneva Round” 1960-62 “Dillon Round” - Geneva 1964-69 “Kennedy Round” - Geneva 1973-79 “Tokyo Round” - Geneva Plurilateral Agreements (TOKYO CODES) Sectorial Agreements (pluri.) Technical Barriers to Trade (TBT) “Enabling Clause” Dairy Products Trade in Civil Aircraft Memorandum on Dispute Settlement (Art. XXIII) Safeguards for development purposes (XVIII) “Subsidies Code” (Art. VI, XVI, XXIII) “Customs Valuation Code” (Art. VII) “Antidumping Code ” (Art. VI) Import Licensing Procedures Government Procurement Bovine Meat Declaration on BOP Measures (Art. XII, XVIII) 1 Jan. 1948 Entry into force of the GATT (Provisional application) TARIFF TARIFF TARIFF TARIFF NTMs - TARIFF NTMs - TARIFF

  4. GATT 1947 Accession Protocol to GATT A V M T Protocol PLURI Bovine Meat PLURI Dairy Products PLURI Civil Aircraft PLURI TBT PLURI Government Procurement PLURI SCM PLURI Import Licensing PLURI Antidumping Schedule of Tariff Concessions Schedule of Tariff Concessions Schedule of Tariff Concessions Schedule of Tariff Concessions GATT CP Decisions (1947-1994)

  5. GATT 1947 1949 “Annecy Round” 1951 “Torquay Round” Nov. 1982 First Attempt to expand GATT - Failure 1956 “Geneva Round” 1960-62 “Dillon Round” - Geneva Sep. 1986 Punta del Este Declaration (Uruguay) 1964-67 “Kennedy Round” - Geneva 1973-79 1986-93 1988 Mid-Term Review (Montreal) “Uruguay Round” “Tokyo Round” - Geneva Dec. 1990 Brussels Conference Dec. 1993 Conclusion of the Round (Adoption of the FINAL ACT) Apr. 1994 Marrakesh Ministerial Conference 1 Jan. 1995 Entry into force of the Marrakesh Agreement (WTO) 31. Dec 1995 End of GATT 1947 1 Jan. 1948 Entry into force of the GATT (Provisional application) TARIFF TARIFF TARIFF TARIFF NTMs - TARIFF NTMs - TARIFF

  6. 2. The GATT Years 1. The modern Multilateral Trading System 3. The WTO

  7. Marrakesh Agreement establishing the WTO Marrakesh Agreement establishing the World Trade Organization Signed in Marrakesh (April 1994) Ratified according to national procedures Entered into force in January 1995 Legally binding (engaging the responsibility of Governments)

  8. TRIPS Agreement General Agreement on Trade in Services Marrakesh Agreement establishing the WTO Trade Policy Review Mechanism Subsidies & Couterv. M Safeguards Import Licensing Rules of Origin PSI Customs valuation (VII) Agriculture Antidumping (GATT VI) TBT TRIMs SPS Textiles and Clothing GATT 1994 List of specific commitments Schedule of Tariff Concessions List of MFN Exemptions Decisions, Declarations, etc Plurilateral Agreements Dispute Settlement Understanding

  9. Marrakesh Agreement establishing the WTO Marrakesh Agreement establishing the World Trade Organization international trade Goods (GATT 1994 +) Services (GATS) Intellectual Property (TRIPS)

  10. Marrakesh Agreement establishing the WTO Marrakesh Agreement establishing the World Trade Organization Member Driven (151) Serviced by a permanent Secretariat (625 staff) Budget CHF 182’000’000.- (2007) + Trust Funds Headquarters in Geneva - Switzerland

  11. Marrakesh Agreement establishing the WTO Marrakesh Agreement OBJECTIVES Preamble WTO Agr. Raising Standards of living Ensuring full employment Ensuring large and steadily growing volume of real income and effective demand Expanding the production of and trade in goods and services, while allowing for the optimal use of the world’s resources (sustainable development) … seeking both to protect and preserve the environment and to enhance the means for doing so in a a manner consistent with their (the Parties to the Agreement) respective needs and concerns at different levels of economic development.

  12. Marrakesh Agreement establishing the WTO Marrakesh Agreement FUNCTIONS (1) Art. III WTO Agr. Framework to facilitate the implementation, administration and operation of WTO Agreements Forum for multilateral trade negotiations (new rules and disciplines) Framework to administer the Understanding on Rules and Procedures Governing the Settlement of Dispute (DSU)

  13. Marrakesh Agreement establishing the WTO Marrakesh Agreement FUNCTIONS (2) Art. III WTO Agr. Framework to administer the Trade Policy Review Mechanism (TPRM) Co-operation with the IMF and the World Bank (coherence in global economic policy-making)

  14. GENERAL COUNCIL Panel TRIPS Council Committees Working Gr. Goods Council Services Council Marrakesh Agreement establishing the WTO Committees Committees WTO Secretariat STRUCTURE Art. IV WTO Agr. MINISTERIAL CONFERENCE Appellate Body TPRB DSB (WTO) Secretariat

  15. by consensus …. Otherwise, decisions are taken by a majority of the votes cast and on the basis of “one Member, one vote”, but … amendments to the provisions of the agreements only take effect for those Members who accept them. Marrakesh Agreement establishing the WTO How are decisions taken? Art. IX WTO Agr. Art. X WTO Agr.

  16. Other provisions • Accession (Art. XII) • Miscellaneous Provisions (Art. XVI) • ensure conformity of national laws, regulations and administrative procedures

  17. Director-General Pascal Lamy (France) in place since 1 Sept. 2005 for 4 years Deputy DG Alejandro Jara (Chile) Deputy DG Valentine S. Rugwabiza (Rwanda) Deputy DG Harsha Vardhana Singh (India) Deputy DG Rufus H. Yerxa (USA)

  18. Trade Negotiations Committee (TNC) AG Cttee (SS) NG on MA NG on Rules Decisions, Declarations, etc NEGOTIATING STRUCTURE DSB (SS) GATS Council (SS) TRIPS Council (SS) CTE (SS) CTD (SS)

  19. Dec. 1996 Ministerial Conference - 1st Session (Singapore) (Singapore) Ministerial Declaration Ministerial Declaration for the expansion of trade in information technology products (ITA I) Marrakesh Agreement establishing the WTO 2000-... 1997 Negotiations on Services, Agriculture, etc (Build-in Agenda) Conclusion of the negotiations concerning trade in financial services and in basic telecommunications Nov. 2001 May 1998 Ministerial Conference - 2nd Session (Geneva) Ministerial Conference - 4th Session (Doha) Ministerial Declaration (”Doha Development Agenda”) (Geneva) Ministerial Declaration Declaration on electronic commerce Declaration (TRIPS / Public Health) 1 Jan. 1995 Entry into force of the Marrkesh Agreement (WTO) Nov. 1999 Ministerial Conference - 3rd Session (Seattle)

  20. International agreement 23 CP in 1948 Weak Dispute Settlement Mechanism Rights and Obligations (goods) Decision by Consensus Provisional application Establishment of an Organization “Single Undertaking” Agriculture , etc... 151 Members in 2007 International agreement Voting procedure … but Decision by Consensus Unlimited application Rights and Obligations (trade-related IPRs) Rights and Obligations (services) Rights and Obligations (goods) Strong Dispute Settlement Mechanism GATT 1947 Marrakesh Agreement establishing the WTO

  21. 2. The GATT Years 1. The modern Multilateral Trading System 3. The WTO 4. The GATT/WTO Basic Principles 4.1 Basic Disciplines 4.2 Possibility to take “Adjustment measures” 4.3 Possibility to correct distortions 4.4 Special and Differential Treatment (S&D) 4.5 Horizontal Exceptions 4.6 Other Principles

  22. 2. The GATT Years 1. The modern Multilateral Trading System Most-Favoured Nation Principle (MFN) Binding General Prohibition of QRs National Treatment 3. The WTO 4. The GATT/WTO Basic Principles 4.1 Basic Disciplines

  23. 2. The GATT Years 1. The modern Multilateral Trading System General Safeguard Measures BOP-related Safeguard Measures Special Safeguards 3. The WTO 4. The GATT/WTO Basic Principles 4.1 Basic Disciplines 4.2 Possibility to take “Adjustment measures”

  24. 2. The GATT Years 1. The modern Multilateral Trading System Dumping and Antidumping Measures Subsidies and Countervailing Measures Subsidies and Remedies State Trading Enterprises 3. The WTO 4. The GATT/WTO Basic Principles 4.1 Basic Disciplines 4.2 Possibility to take “Adjustment measures” 4.3 Possibility to correct distortions

  25. 2. The GATT Years 1. The modern Multilateral Trading System 3. The WTO 4. The GATT/WTO Basic Principles 4.1 Basic Disciplines 4.2 Possibility to take “Adjustment measures” 4.3 Possibility to correct distortions 4.4 Special and Differential Treatment (S&D)

  26. Developing Countries • Part IV of GATT (1947) – increased trade opportunities • “Enabling” Clause • Technical Cooperation and Training • UNCTAD/WTO International Trade Center (ITC) • Least Developed Countries (Ministerial Decision)

  27. 2. The GATT Years 1. The modern Multilateral Trading System General Exceptions Security Exceptions Waivers 3. The WTO 4. The GATT/WTO Basic Principles 4.1 Basic Disciplines 4.2 Possibility to take “Adjustment measures” 4.3 Possibility to correct distortions 4.4 Special and Differential Treatment (S&D) 4.5 Horizontal Exceptions

  28. Transparency “Single Undertaking” WTO Rules and Disciplines: an element of the international public Law 4. The GATT/WTO Basic Principles Panels and Appellate Body: a delegated and limited jurisdiction 4.1 - 4.5 ….. 4.6 Other Principles

  29. The work programme lists 21 subjects. The original deadline of 1 January 2005 was missed. So was the next unofficial target of the end of 2006... • September 2003, Cancun, Mexico, Ministerial Conference ended in discord • Dec 13-18 2005 - Hong Kong Ministerial Conference • July 24 2006, - Ministers gathered in Geneva – Talks stalled - Pascal Lamy formally suspends the negotiations.

  30. October 2006 - The US and Russia reach agreement in principle on a bilateral market access deal in the context of Russia's efforts to join the WTO! • Efforts now focused on trying to achieve a breakthrough in the DDA before late 2008… • Two main areas of concern are Agriculture and Non-agricultural Market Access (NAMA)

  31. NAMA and Agriculture Chairs Circulated their blueprints for an Agreement (Feb 8 2008) • Agriculture • Domestic Support • Market Access Sensitive Products –Special Products • Export Competition • Next Room E meeting 31 March (Cancelled)

  32. NAMA Swiss Formula Flexibilities , SVEs, RAMS, Paragraph 6 Services WPDR Market Access Safeguards Signalling Conference?? Next move would be a period for a 'horizontal' negotiation process of cross-sectoral tradeoffs between agriculture and manufacturing trade...

  33. Trade Facilitation clarify and improve GATT Article V (Freedom of Transit), Article VIII (Fees and Formalities connected with Importation and Exportation), and Article X (Publication and Administration of Trade Regulations).

  34. Rules Agreement on Implementation of Article VI of GATT 1994 (better known as the Anti-dumping Agreement); Agreement on Subsidies and Countervailing Measures WTO disciplines on fisheries subsidies; and WTO provisions applying to regional trade agreements

  35. Multilateral Framework of Rules Rules negotiated and accepted by all Members under the consensus decision-making process Maintaining a basic balance/equilibrium, between open and expanding markets; and needs and requirements of domestic economic policy: making domestic industries more competitive; protecting environment and consumers; operating an efficient economy; contribute to economic development and growth Summary

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