introduction to the multilateral trading system introduction to the wto wednesday 2 april 2008...

Introduction to the Multilateral Trading SystemIntroduction to the Multilateral Trading System

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


4. The GATT/WTO Basic Principles

3. The WTO

2. The GATT Years

1. The modern Multilateral Trading System

5. Doha Development Agenda


RULES (“Framework Agreements”) - CP DecisionsRULES (“Framework Agreements”) - CP Decisions“Enabling Clause”Declaration on BOP Measures (Art. XII, XVIII)Safeguards for development purposes (XVIII)Memorandum on Dispute Settlement (Art. XXIII)

Plurilateral Agreements (TOKYO CODES) Plurilateral Agreements (TOKYO CODES) Technical Barriers to Trade (TBT)Government Procurement“Subsidies Code” (Art. VI, XVI, XXIII)“Customs Valuation Code” (Art. VII)Import Licensing Procedures“Antidumping Code ” (Art. VI)

Sectorial Agreements (pluri.)Sectorial Agreements (pluri.)Bovine MeatDairy ProductsTrade in Civil Aircraft

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““Annecy Round”Annecy Round”1949194919491949““Torquay Round”Torquay Round”1951195119511951““Geneva Round”Geneva Round”1956195619561956““Dillon Round” - GenevaDillon Round” - Geneva1960-621960-621960-621960-62““Kennedy Round” - GenevaKennedy Round” - Geneva1964-691964-691964-691964-69

Entry into force of the GATT (Provisional application)Entry into force of the GATT (Provisional application)1 Jan. 19481 Jan. 19481 Jan. 19481 Jan. 1948TARIFFTARIFF

TARIFFTARIFF

TARIFFTARIFF

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NTMs - NTMs - TARIFFTARIFFNTMsNTMs - - TARIFFTARIFF““Tokyo Round” - GenevaTokyo Round” - Geneva1973-791973-791973-791973-79


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““Annecy Round”Annecy Round”1949194919491949““Torquay Round”Torquay Round”1951195119511951““Geneva Round”Geneva Round”1956195619561956““Dillon Round” - GenevaDillon Round” - Geneva1960-621960-621960-621960-62““Kennedy Round” - GenevaKennedy Round” - Geneva1964-671964-671964-671964-67

Entry into force of the GATT (Provisional application)Entry into force of the GATT (Provisional application)1 Jan. 19481 Jan. 19481 Jan. 19481 Jan. 1948

TARIFFTARIFF

TARIFFTARIFFTARIFFTARIFFTARIFFTARIFF

NTMs - TARIFFNTMs - TARIFFNTMs - TARIFFNTMs - TARIFF

““Uruguay Round”Uruguay Round”1986-931986-931986-931986-93

““Tokyo Round” - GenevaTokyo Round” - Geneva1973-791973-791973-791973-79

First Attempt to expand GATT - FailureFirst Attempt to expand GATT - FailureNov. 1982Nov. 1982Nov. 1982Nov. 1982

Punta del Este Declaration (Uruguay) Punta del Este Declaration (Uruguay) Sep. 1986Sep. 1986Sep. 1986Sep. 1986

Mid-Term Review (Montreal)Mid-Term Review (Montreal)1988198819881988

Brussels ConferenceBrussels ConferenceDec. 1990Dec. 1990Dec. 1990Dec. 1990

Conclusion of the Round (Adoption of the FINAL ACT)Conclusion of the Round (Adoption of the FINAL ACT)Dec. 1993Dec. 1993Dec. 1993Dec. 1993

Marrakesh Ministerial ConferenceMarrakesh Ministerial ConferenceApr. 1994Apr. 1994Apr. 1994Apr. 1994

Entry into force of the Marrakesh Agreement (WTO)Entry into force of the Marrakesh Agreement (WTO)1 Jan. 19951 Jan. 19951 Jan. 19951 Jan. 1995

End of GATT 1947End of GATT 194731. Dec 199531. Dec 199531. Dec 199531. Dec 1995

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3. The WTO

2. The GATT Years



Marrakesh Agreementestablishing the World TradeOrganization

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WTO

WTO

Signed in Marrakesh (April 1994)Signed in Marrakesh (April 1994)

Ratified according to national proceduresRatified according to national procedures

Entered into force in January 1995Entered into force in January 1995

Legally binding (engaging the responsibility of Governments)Legally binding (engaging the responsibility of Governments)


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WTO

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WTO

WTO

international tradeinternational trade

Goods (GATT 1994 +)Goods (GATT 1994 +)

Services (GATS)Services (GATS)

Intellectual Property (TRIPS)Intellectual Property (TRIPS)



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WTO

WTO

Member Driven (151)Member Driven (151)

Serviced by a permanent Secretariat (625 staff)Serviced by a permanent Secretariat (625 staff)

Budget CHF 182’000’000.- (2007) + Trust FundsBudget CHF 182’000’000.- (2007) + Trust Funds

Headquarters in Geneva - SwitzerlandHeadquarters in Geneva - Switzerland

Introduction to the Multilateral Trading SystemIntroduction to the Multilateral Trading SystemM

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WTO

Marrakesh Agreement OBJECTIVESOBJECTIVES

Raising Standards of livingRaising Standards of living

Ensuring full employmentEnsuring full employment

Ensuring large and steadily growing volume of real income and effective demand

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)

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.

… 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.

PreambleWTO Agr.


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WTO

WTO

Marrakesh Agreement FUNCTIONS (1)FUNCTIONS (1)

Framework to facilitate the implementation, administration and operation of WTO Agreements

Framework to facilitate the implementation, administration and operation of WTO Agreements

Forum for multilateral trade negotiations (new rules and disciplines)Forum for multilateral trade negotiations (new rules and disciplines)

Framework to administer the Understanding on Rules and Procedures Governing the Settlement of Dispute (DSU)

Framework to administer the Understanding on Rules and Procedures Governing the Settlement of Dispute (DSU)

Art. IIIWTO Agr.


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WTO

WTO

Marrakesh Agreement FUNCTIONS (2)FUNCTIONS (2)

Framework to administer the Trade Policy Review Mechanism (TPRM)

Framework to administer the Trade Policy Review Mechanism (TPRM)

Co-operation with the IMF and the World Bank (coherence in global economic policy-making)

Co-operation with the IMF and the World Bank (coherence in global economic policy-making)

Art. IIIWTO Agr.


MINISTERIAL CONFERENCEMINISTERIAL CONFERENCEMINISTERIAL CONFERENCEMINISTERIAL CONFERENCE

(WTO) Secretariat(WTO) Secretariat(WTO) Secretariat(WTO) Secretariat

Appellate Appellate BodyBody

Appellate Appellate BodyBody

PanelPanelPanelPanel

CommitteesCommitteesCommitteesCommittees CommitteesCommitteesCommitteesCommittees

Goods Goods CouncilCouncilGoods Goods

CouncilCouncilServices Services CouncilCouncilServices Services CouncilCouncil

TRIPS TRIPS CouncilCouncilTRIPS TRIPS CouncilCouncil

Committees Committees Working Gr.Working Gr.Committees Committees Working Gr.Working Gr.

GENERAL COUNCILGENERAL COUNCILGENERAL COUNCILGENERAL COUNCILTPRBTPRBTPRBTPRB DSBDSBDSBDSB

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WTO

WTO

STRUCTURESTRUCTUREWTO Secretariat

Art. IVWTO Agr.


How are decisions taken?– 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.

Art. IXWTO Agr.

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WTO

Art. XWTO Agr.


Other provisions• Accession (Art. XII)

• Miscellaneous Provisions (Art. XVI)

– ensure conformity of national laws, regulations and administrative procedures


Director-GeneralPascal Lamy (France)in place since 1 Sept. 2005for 4 years

Director-GeneralPascal Lamy (France)in place since 1 Sept. 2005for 4 years

Deputy DGHarsha Vardhana Singh (India)

Deputy DGHarsha Vardhana Singh (India)

Deputy DGAlejandro Jara (Chile)

Deputy DGAlejandro Jara (Chile)

Deputy DG Rufus H. Yerxa (USA)

Deputy DG Rufus H. Yerxa (USA)

Deputy DG Valentine S. Rugwabiza (Rwanda)

Deputy DG Valentine S. Rugwabiza (Rwanda)

Introduction to the Multilateral Trading SystemIntroduction to the Multilateral Trading SystemD

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NEGOTIATING STRUCTURE

NEGOTIATING STRUCTURE

AG Cttee (SS)AG Cttee (SS)AG Cttee (SS)AG Cttee (SS)

TRIPS TRIPS Council (SS)Council (SS)

TRIPS TRIPS Council (SS)Council (SS)

DSB (SS)DSB (SS)DSB (SS)DSB (SS)

CTD (SS)CTD (SS)CTD (SS)CTD (SS)

NG on RulesNG on RulesNG on RulesNG on Rules

NG on MANG on MANG on MANG on MA

CTE (SS)CTE (SS)CTE (SS)CTE (SS)GATS GATS Council (SS)Council (SS)

GATS GATS Council (SS)Council (SS)

Trade Negotiations Committee (TNC)Trade Negotiations Committee (TNC)Trade Negotiations Committee (TNC)Trade Negotiations Committee (TNC)


Entry into force of the Marrkesh Agreement (WTO)Entry into force of the Marrkesh Agreement (WTO)1 Jan. 19951 Jan. 19951 Jan. 19951 Jan. 1995

Ministerial Conference - 1st Session (Singapore)Ministerial Conference - 1st Session (Singapore)Dec. 1996Dec. 1996Dec. 1996Dec. 1996

Ministerial Conference - 2nd Session (Geneva)Ministerial Conference - 2nd Session (Geneva)May 1998May 1998May 1998May 1998

Ministerial Conference - 3rd Session (Seattle)Ministerial Conference - 3rd Session (Seattle)Nov. 1999Nov. 1999Nov. 1999Nov. 1999

(Singapore) Ministerial Declaration Ministerial Declaration for the expansion of trade in information technology products (ITA I)

(Geneva) Ministerial Declaration Declaration on electronic commerce

Conclusion of the negotiations concerning trade in financial Conclusion of the negotiations concerning trade in financial services and in basic telecommunicationsservices and in basic telecommunications

1997199719971997

Negotiations on Services, Agriculture, etc (Build-in Agenda) Negotiations on Services, Agriculture, etc (Build-in Agenda) 2000-...2000-...2000-...2000-...

Ministerial Conference - 4th Session (Doha)Ministerial Conference - 4th Session (Doha)Nov. 2001Nov. 2001Nov. 2001Nov. 2001

Ministerial Declaration (”Doha Development Agenda”)

Declaration (TRIPS / Public Health)

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WTO

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Introduction to the Multilateral Trading SystemIntroduction to the Multilateral Trading SystemInternational agreementInternational agreementInternational agreementInternational agreement

Unlimited applicationUnlimited application Provisional applicationProvisional application

Establishment of an Establishment of an OrganizationOrganization

Rights and Obligations Rights and Obligations (goods)(goods)

Rights and Obligations Rights and Obligations (goods)(goods)

Rights and Obligations Rights and Obligations (services)(services)Rights and Obligations Rights and Obligations (trade-related IPRs)(trade-related IPRs)

Decision by ConsensusDecision by ConsensusVoting procedure … Voting procedure … but Decision by but Decision by ConsensusConsensus

Weak Dispute Settlement Weak Dispute Settlement MechanismMechanism

Strong Dispute Strong Dispute Settlement MechanismSettlement Mechanism

23 CP in 194823 CP in 1948151 Members in 2007151 Members in 2007

Agriculture , etc...Agriculture , etc...

““Single Undertaking”Single Undertaking”

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WTO

WTO



3. The WTO

2. The GATT Years


4.4 Special and Differential Treatment (S&D)

4.3 Possibility to correct distortions

4.2 Possibility to take “Adjustment measures”

4.1 Basic Disciplines

4.6 Other Principles

4.5 Horizontal Exceptions



3. The WTO

2. The GATT Years



Most-Favoured Nation Principle (MFN)Binding

General Prohibition of QRs

National Treatment



3. The WTO

2. The GATT Years



General Safeguard MeasuresBOP-related Safeguard Measures

Special Safeguards




3. The WTO

2. The GATT Years



Dumping and Antidumping MeasuresSubsidies and Countervailing Measures

Subsidies and Remedies



State Trading Enterprises



3. The WTO

2. The GATT Years







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)



3. The WTO

2. The GATT Years






4.5 Horizontal ExceptionsGeneral ExceptionsSecurity Exceptions

Waivers



4.6 Other Principles

Transparency

“Single Undertaking”

WTO Rules and Disciplines: an element of the international public LawPanels and Appellate Body: a delegated and limited jurisdiction

4.1 - 4.5 …..


• 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.


• 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)


• NAMA and Agriculture Chairs Circulated their blueprints for an Agreement (Feb 8 2008)

• AgricultureAgriculture– Domestic Support

– Market Access SensitiveSensitive Products Products –Special Products

– Export Competition

– Next Room E meeting 31 March (Cancelled)


• 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...


• 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).


• 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


SummaryMultilateral 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

introduction to the multilateral trading system introduction to the wto wednesday 2 april 2008...

Documents

geneva round

torquay round

dillon round geneva

kennedy round geneva

gatt gatt cp decisions

gatt years1

round adoption

gatt failure