Small and Vulnerable Small and Vulnerable Economies in the Doha Economies in the Doha

RoundRound

Hans-Peter WernerHans-Peter Werner

CounsellorCounsellor

WTO Development DivisionWTO Development Division

The Doha Development The Doha Development AgendaAgenda

Doha, Qatar – November 2001Doha, Qatar – November 20012005 / 2006 / 2007 ?2005 / 2006 / 2007 ?

NEGOTIATIONSNEGOTIATIONS

Agriculture & Sub-Committee on Agriculture & Sub-Committee on CottonCotton

NAMANAMA ServicesServices Rules (AD, SCVMs, Fisheries & Rules (AD, SCVMs, Fisheries &

RTAs)RTAs) Special & Differential TreatmentSpecial & Differential Treatment

Negotiations continued ...Negotiations continued ...

Dispute SettlementDispute Settlement Trade and EnvironmentTrade and Environment TRIPs – Trade-related aspects TRIPs – Trade-related aspects

of intellectual property rights of intellectual property rights – CBD / GIs– CBD / GIs

Trade FacilitationTrade Facilitation

Doha DeclarationDoha Declaration

We agree to a work programme, We agree to a work programme, under the auspices of the General under the auspices of the General Council, to examine issues relating to Council, to examine issues relating to the trade of small economies ...the trade of small economies ...

Part of the Single Undertaking or not?Part of the Single Undertaking or not?

From SIDS (UN) to SVEs (WTO)From SIDS (UN) to SVEs (WTO)

...The objective of this work is to ...The objective of this work is to frame responses to the trade-related frame responses to the trade-related issues identified for the fuller issues identified for the fuller integration of small, vulnerable integration of small, vulnerable economies into the multilateral economies into the multilateral trading system, and not to create a trading system, and not to create a sub-category of WTO Members sub-category of WTO Members (WT/L/447). (WT/L/447).

...The General Council shall review ...The General Council shall review the work programme and make the work programme and make recommendations for action to the recommendations for action to the Fifth Session of the Ministerial Fifth Session of the Ministerial Conference.Conference.

Hong Kong Ministerial Hong Kong Ministerial DeclarationDeclaration

We reaffirm our commitment to the We reaffirm our commitment to the Work Programme on Small Economies Work Programme on Small Economies and urge Members to adopt specific and urge Members to adopt specific measures that would facilitate the measures that would facilitate the fuller integration of small, vulnerable fuller integration of small, vulnerable economies into the multilateral trading economies into the multilateral trading system, system, without creating a sub-without creating a sub-category of WTO Memberscategory of WTO Members. .

We instruct the Committee on Trade We instruct the Committee on Trade and Development, under the overall and Development, under the overall responsibility of the General Council, responsibility of the General Council, to continue the work in the Dedicated to continue the work in the Dedicated Session and Session and to monitor progress of to monitor progress of the small economies' proposals in the the small economies' proposals in the negotiating and other bodies,negotiating and other bodies, with the with the aim of providing responses to the aim of providing responses to the trade-related issues of small trade-related issues of small economies as soon as possible but no economies as soon as possible but no later than 31 December 2006. later than 31 December 2006.

Report to General Council Report to General Council 10/200610/2006

On the basis of the discussions that On the basis of the discussions that have been held on this matter, the CTD have been held on this matter, the CTD in Dedicated Session considers that in Dedicated Session considers that the the use by small, vulnerable economies of use by small, vulnerable economies of regional bodiesregional bodies to provide technical to provide technical support and assistance as necessary support and assistance as necessary could help them implement their could help them implement their obligations in the areas of SPS, TBT and obligations in the areas of SPS, TBT and TRIPS, and thereby facilitate their fuller TRIPS, and thereby facilitate their fuller integration into the multilateral trading integration into the multilateral trading system. system.

... the CTD in Dedicated Session ... the CTD in Dedicated Session recommends that the General recommends that the General Council agrees that small Council agrees that small economies are allowed to use economies are allowed to use such regional bodies to assist such regional bodies to assist them in the implementation of them in the implementation of their obligations under the SPS, their obligations under the SPS, TBT and TRIPS Agreements. TBT and TRIPS Agreements.

This recommendation is without This recommendation is without prejudice both to the identification prejudice both to the identification of other specific measures in due of other specific measures in due course to facilitate the fuller course to facilitate the fuller integration of small economies into integration of small economies into the multilateral trading system the multilateral trading system and and to the use of regional bodies as to the use of regional bodies as described in this report by other described in this report by other developing country Members.developing country Members.

SVEs in the DDA - SVEs in the DDA - AgricultureAgriculture

Agriculture – June 2006 – Draft Agriculture – June 2006 – Draft

World merchandise trade – less World merchandise trade – less than 0.16% / NAMA trade – less than 0.16% / NAMA trade – less than 0.10% / Agriculture Trade – than 0.10% / Agriculture Trade – 0.4% or less 0.4% or less

AgricultureAgriculture Designation of certain percentages Designation of certain percentages

on special products on special products

Food security concerns / Livelihood Food security concerns / Livelihood security / Rural development needssecurity / Rural development needs

Special safeguard mechanismsSpecial safeguard mechanisms

AgricultureAgriculture

Preferential Market Access to Preferential Market Access to developed countries for exports developed countries for exports from SVEs from SVEs

Linear cuts no higher than 15% with Linear cuts no higher than 15% with minimum of 10% per line from the minimum of 10% per line from the bound rate ... No other concessions bound rate ... No other concessions sought from SVESsought from SVES

NAMANAMA

Members with share of NAMA trade Members with share of NAMA trade (exports and imports) of less than 0.1% of (exports and imports) of less than 0.1% of world trade (1999 to 2001) NOT A NEW world trade (1999 to 2001) NOT A NEW CATEGORY - Triggers eligibility CATEGORY - Triggers eligibility

Chairman: “Many Members oppose the Chairman: “Many Members oppose the use of such criteria but the treatment of use of such criteria but the treatment of SVEs in these negotiations does not SVEs in these negotiations does not create a precedent for future create a precedent for future negotiations”negotiations”

Current Bound Average %

Average % Cut

Final Bound Average %

0 – 30 10 0 – 27

31 – 40 15 26 – 34

41 – 50 20 33 – 40

51 - 60 25 38 – 45

61 - 30 43 -

NAMA 11NAMA 11

Argentina, Brazil. Egypt, India, Argentina, Brazil. Egypt, India, Indonesia, Namibia, Philippines, S. Indonesia, Namibia, Philippines, S. Africa, Tunisia and VenezuelaAfrica, Tunisia and Venezuela

““Once numbers in the modalities are Once numbers in the modalities are identified for developing countries, identified for developing countries, additional flexibilities will be additional flexibilities will be identified for SVEs”identified for SVEs”

NorwayNorway

0.1% of NAMA trade = SVE status0.1% of NAMA trade = SVE status

In exchange for 100% binding of all In exchange for 100% binding of all tariffstariffs

FIJIFIJI

In the specific case of Fiji with less In the specific case of Fiji with less than 50 per cent binding coverage, than 50 per cent binding coverage, Fiji shall be allowed to keep [5 per Fiji shall be allowed to keep [5 per cent] of their lines unbound while cent] of their lines unbound while binding the remaining [95 per cent] binding the remaining [95 per cent] at an average of [ ].at an average of [ ].

NAMANAMA

The implementation of the tariff The implementation of the tariff reduction commitments should be reduction commitments should be staged over a longer period than other staged over a longer period than other developing countries in order to ensure developing countries in order to ensure a smooth liberalisation process and not a smooth liberalisation process and not jeopardise the industrial and social jeopardise the industrial and social development prospects of the small, development prospects of the small, vulnerable economies.vulnerable economies.

Fisheries Subsidies – should Fisheries Subsidies – should not touch on ....not touch on ....

Any development assistance Any development assistance to developing coastal states;to developing coastal states;

Assistance to artisanal or Assistance to artisanal or small-scale fisheriessmall-scale fisheries. Needs. Needs consensus on the definition consensus on the definition of artisanal based on vessel of artisanal based on vessel size in metres etc. size in metres etc.

Fisheries Subsidies should not Fisheries Subsidies should not touch touch

Access fees in fisheries Access fees in fisheries access agreements access agreements

Fiscal Incentives - to Fiscal Incentives - to facilitate the development facilitate the development of capabilities of small of capabilities of small vulnerable coastal statesvulnerable coastal states

Committee on Subsidies & CV Committee on Subsidies & CV MeasuresMeasures

Antigua and Barbuda, Barbados, Antigua and Barbuda, Barbados, Belize, Dominica, Dominican Belize, Dominica, Dominican Republic, El Salvador, Fiji, Grenada, Republic, El Salvador, Fiji, Grenada, Guatemala, Jamaica, Mauritius, Guatemala, Jamaica, Mauritius, Papua New Guinea, St. Kitts and Papua New Guinea, St. Kitts and Nevis, St. Lucia and St. Vincent and Nevis, St. Lucia and St. Vincent and the Grenadinesthe Grenadines

SCVMsSCVMs

Through the calendar yearThrough the calendar year 20182018, , subject to annual reviews during that subject to annual reviews during that period to verify that the transparency period to verify that the transparency and standstill requirements are being and standstill requirements are being fulfilled, Members of the Committee fulfilled, Members of the Committee shall agree to continue the shall agree to continue the extensions granted …extensions granted …

SCVMsSCVMs The extension procedures under Article The extension procedures under Article

27.4 would hence be applicable to all of 27.4 would hence be applicable to all of the members and the existing the members and the existing programmes referred to in programmes referred to in Annex A Annex A in in line with paragraph 2 of G/SCM/39. This line with paragraph 2 of G/SCM/39. This extension process would be applicable extension process would be applicable from the end of 2007 through to the end from the end of 2007 through to the end of of 20182018 with identical procedures as with identical procedures as indicated in G/SCM/39 paragraph 1(f) and indicated in G/SCM/39 paragraph 1(f) and 1(g).1(g).

SCVMs InformalsSCVMs Informals

25 April 2006, introduction of the proposal. 25 April 2006, introduction of the proposal. (G/SCM/M/57)(G/SCM/M/57)

23 June 2006, procedural discussion.23 June 2006, procedural discussion. 21 July 2006, first substantive discussion.21 July 2006, first substantive discussion. 13 October 2006, second substantive discussion.13 October 2006, second substantive discussion. 15 December 2006, third substantive discussion.15 December 2006, third substantive discussion. 15 February 2007, fourth substantive discussion.15 February 2007, fourth substantive discussion. 8 March 2007, fifth substantive discussion.8 March 2007, fifth substantive discussion.

Trade FacilitationTrade Facilitation

"Establish enquiry points at the "Establish enquiry points at the national level or in the case of national level or in the case of SVEs/developing countries involved SVEs/developing countries involved in a Customs Union/RTA/FTA, the in a Customs Union/RTA/FTA, the option of the establishment of option of the establishment of enquiry points at the regional level, enquiry points at the regional level, to provide relevant information on to provide relevant information on trade procedures to trade."trade procedures to trade."

Trade FacilitationTrade Facilitation

"Members and the WTO, within its "Members and the WTO, within its competence, shall provide technical competence, shall provide technical and financial assistance on mutually and financial assistance on mutually agreed terms to SVEs/developing agreed terms to SVEs/developing countries to support the countries to support the establishment, modification and establishment, modification and maintenance of these national and/or maintenance of these national and/or regional enquiry points."regional enquiry points."

Trade FacilitationTrade Facilitation

Special and Differential TreatmentSpecial and Differential Treatment SVEs/Developing countries/LDCs longer time SVEs/Developing countries/LDCs longer time

periods to implement any requirement on periods to implement any requirement on enquiry points. enquiry points.

Members of the Customs Union / RTA should Members of the Customs Union / RTA should maintain a national enquiry point if it is within maintain a national enquiry point if it is within their ability to do so but the existence of a their ability to do so but the existence of a regional enquiry point would preclude the regional enquiry point would preclude the obligation to maintain a national enquiry obligation to maintain a national enquiry point.point.

Aid for TradeAid for Trade

Regional efforts /development banksRegional efforts /development banks Address supply-side capacity and Address supply-side capacity and

trade-related infrastructuretrade-related infrastructure New and multi-year fundingNew and multi-year funding Priority to LDCs, SVEs and acceding Priority to LDCs, SVEs and acceding

small developing countriessmall developing countries