technical notes - wto

Technical notesComposition of regions and other economic groupingsRegionsnorth America Bermuda Canada* Mexico* UnitedStatesof

America*

Otherterritoriesintheregionnotelsewherespecified(n.e.s.)

south and Central America and the Caribbean AntiguaandBarbuda* Chile* ElSalvador* NetherlandsAntilles SaintVincentandthe

Grenadines*

Argentina* Colombia* Grenada* Nicaragua* Suriname*

Bahamas** CostaRica* Guatemala* Panama* TrinidadandTobago*

Barbados* Cuba* Guyana* Paraguay* Uruguay*

Belize* Dominica* Haiti* Peru* BolivarianRep.ofVenezuela*

Bolivia,PlurinationalStateof*

DominicanRepublic* Honduras* SaintKittsandNevis*

Brazil* Ecuador* Jamaica* SaintLucia*

Otherterritoriesintheregionn.e.s.

europe Andorra** Denmark* Iceland* Montenegro** Slovenia*

Austria* Estonia* Ireland* Netherlands* Spain*

Belgium* Finland* Italy* Norway* Sweden*

BosniaandHerzegovina**

France* Latvia* Poland* Switzerland*

Bulgaria* FYRMacedonia* Liechtenstein* Portugal* Turkey*

Croatia* Germany* Lithuania* Romania* UnitedKingdom*

Cyprus* Greece* Luxembourg* Serbia**

CzechRepublic* Hungary* Malta* SlovakRepublic*


Commonwealth of Independent states (CIs) a Armenia* Georgiaa Moldova* Turkmenistan

Azerbaijan** Kazakhstan** RussianFederation** Ukraine*

Belarus** KyrgyzRepublic* Tajikistan** Uzbekistan**


Africa Algeria** Congo* Guinea* Morocco* SouthAfrica*

Angola* Côted’Ivoire* Guinea-Bissau* Mozambique* Sudan**

Benin* Dem.Rep.oftheCongo*

Kenya* Namibia* Swaziland*

Botswana* Djibouti* Lesotho* Niger* Tanzania*

BurkinaFaso* Egypt* Liberia** Nigeria* Togo*

Burundi* EquatorialGuinea** LibyanArabJamahiriya** Rwanda* Tunisia*

Cameroon* Eritrea Madagascar* SãoToméandPríncipe** Uganda*

CapeVerde* Ethiopia** Malawi* Senegal* Zambia*

CentralAfricanRepublic* Gabon* Mali* Seychelles** Zimbabwe*

Chad* Gambia* Mauritania* SierraLeone*

Comoros** Ghana* Mauritius* Somalia


middle east Bahrain* Israel* LebaneseRepublic** SaudiArabia,Kingdomof* Yemen**

Iran,IslamicRep.of** Jordan* Oman* SyrianArabRepublic

Iraq** Kuwait* Qatar* UnitedArabEmirates*


Asia Afghanistan** HongKong,China* Malaysia* PapuaNewGuinea* TimorLeste

Australia* India* Maldives* Philippines* Tonga*

Bangladesh* Indonesia* Mongolia* Samoa** Tuvalu

* WTOmembers** Observergovernmentsa GeorgiaisnotamemberoftheCommonwealthofIndependentStatesbutisincludedinthisgroupforreasonsofgeographyandsimilarities

ineconomicstructure.239

teCHnICAL notes

WOrld Trade repOrT 2011

240

Composition of regions and other economic groupingsRegionsBhutan** Japan* Myanmar* Singapore* Vanuatu**

BruneiDarussalam* Kiribati Nepal* SolomonIslands* VietNam*

Cambodia* Korea,Republicof* NewZealand* SriLanka*

China* LaoPeople'sDem.Rep.**

Pakistan* Taipei,Chinese*

Fiji* Macao,China* Palau Thailand*


OtherGroupsACP (African, Caribbean and Pacific countries)Angola Cuba Haiti Niger SouthAfrica

AntiguaandBarbuda Dem.Rep.oftheCongo

Jamaica Nigeria Sudan

Bahamas Djibouti Kenya Niue Suriname

Barbados Dominica Kiribati Palau Swaziland

Belize DominicanRepublic Lesotho PapuaNewGuinea TimorLeste

Benin EquatorialGuinea Liberia Rwanda Togo

Botswana Eritrea Madagascar SaintKittsandNevis Tonga

BurkinaFaso Ethiopia Malawi SaintLucia TrinidadandTobago

Burundi Fiji Mali SaintVincentandtheGrenadines

Tuvalu

Cameroon Gabon MarshallIslands Samoa Uganda

CentralAfricanRepublic

Gambia Mauritania SãoToméandPríncipe UnitedRepublicofTanzania

Chad Ghana Mauritius Senegal Vanuatu

Comoros Grenada Micronesia Seychelles Zambia

Congo Guinea Mozambique SierraLeone Zimbabwe

CookIslands Guinea-Bissau Namibia SolomonIslands

Côted’Ivoire Guyana Nauru Somalia

AfricaNorth Africa

Algeria Egypt LibyanArabJamahiriya Morocco Tunisia

Sub-Saharan Africa

Western Africa Benin Gambia Guinea-Bissau Mauritania Senegal

BurkinaFaso Ghana Liberia Niger SierraLeone

CapeVerde Guinea Mali Nigeria Togo

Côted’Ivoire

Central Africa

Burundi CentralAfricanRepublic

Congo EquatorialGuinea Rwanda

Cameroon Chad Dem.Rep.oftheCongo Gabon SãoToméandPríncipe

Eastern Africa

Comoros Ethiopia Mauritius Somalia UnitedRepublicofTanzania

Djibouti Kenya Seychelles Sudan Uganda

Eritrea Madagascar

Southern Africa

Angola Lesotho Mozambique SouthAfrica Zambia

Botswana Malawi Namibia Swaziland Zimbabwe

TerritoriesinAfricanotelsewherespecified

AsiaEast Asia (including Oceania)

Australia Indonesia Mongolia Samoa Tuvalu

BruneiDarussalam Japan Myanmar Singapore Vanuatu

Cambodia Kiribati NewZealand SolomonIslands VietNam

China LaoPeople’sDem.Rep. PapuaNewGuinea Taipei,Chinese

Fiji Macao,China Philippines Thailand

HongKong,China Malaysia Korea,Republicof Tonga

West Asia

Afghanistan Bhutan Maldives Pakistan SriLanka

Bangladesh India Nepal

OthercountriesandterritoriesinAsiaandthePacificnotelsewherespecified

241

teCHnICAL notes

Composition of regions and other economic groupingsOtherGroupsLDCs (Least-developed countries) Afghanistan Comoros Kiribati Myanmar Sudan

Angola Congo,Dem.Rep.of LaoPeople’sDem.Rep. Nepal TimorLeste

Bangladesh Djibouti Lesotho Niger Togo

Benin EquatorialGuinea Liberia Rwanda Tuvalu

Bhutan Eritrea Madagascar Samoa Uganda

BurkinaFaso Ethiopia Malawi SãoToméandPríncipe UnitedRepublicofTanzania

Burundi Gambia Maldives Senegal Vanuatu

Cambodia Guinea Mali SierraLeone Yemen


Guinea-Bissau Mauritania SolomonIslands Zambia

Chad Haiti Mozambique Somalia

six east Asian tradersHongKong,China Korea,Republicof Singapore Taipei,Chinese Thailand

Malaysia

RegionalIntegrationAgreementsAndean Community (CAn) Bolivia,PlurinationalStateof

Colombia Ecuador Peru

AseAn (Association of south east Asian nations) / AFtA (AseAn Free trade Area) BruneiDarussalam Indonesia Malaysia Philippines Thailand

Cambodia LaoPeople'sDem.Rep. Myanmar Singapore VietNam

CACm (Central American Common market) CostaRica ElSalvador Guatemala Honduras Nicaragua

CARICom (Caribbean Community and Common market) AntiguaandBarbuda Belize Guyana Montserrat SaintVincentandthe

Grenadines

Bahamas Dominica Haiti SaintKittsandNevis Suriname

Barbados Grenada Jamaica SaintLucia TrinidadandTobago

CemAC (economic and monetary Community of Central Africa) Cameroon Chad Congo EquatorialGuinea Gabon


ComesA (Common market for eastern and southern Africa) Burundi Egypt LibyanArabJamahiriya Rwanda Uganda

Comoros Eritrea Madagascar Seychelles Zambia

Congo,Dem.Rep.of Ethiopia Malawi Sudan Zimbabwe

Djibouti Kenya Mauritius Swaziland

eCCAs (economic Community of Central African states) Angola CentralAfrican

RepublicDem.Rep.oftheCongo

Gabon SãoToméandPríncipe

Burundi Chad EquatorialGuinea Rwanda

Cameroon Congo

eCoWAs (economic Community of West African states) Benin Côted'Ivoire Guinea Mali Senegal

BurkinaFaso Gambia Guinea-Bissau Niger SierraLeone

CapeVerde Ghana Liberia Nigeria Togo

eFtA (european Free trade Association) Iceland Liechtenstein Norway Switzerland

european union (27) Austria Estonia Ireland Netherlands Spain

Belgium Finland Italy Poland Sweden

Bulgaria France Latvia Portugal UnitedKingdom

Cyprus Germany Lithuania Romania

CzechRepublic Greece Luxembourg SlovakRepublic

Denmark Hungary Malta Slovenia


242

Composition of regions and other economic groupingsRegionalIntegrationAgreementsGCC (Gulf Cooperation Council) Bahrain,Kingdomof Oman Qatar SaudiArabia,Kingdomof UnitedArabEmirates

Kuwait

meRCosuR (southern Common market) Argentina Brazil Paraguay Uruguay

nAFtA (north American Free trade Agreement) Canada Mexico UnitedStates

sAPtA (south Asian Preferential trade Arrangement) Bangladesh India Nepal Pakistan SriLanka

Bhutan Maldives

sADC (southern African Development Community) Angola Lesotho Mauritius SouthAfrica Zambia

Botswana Madagascar Mozambique Swaziland Zimbabwe

Congo,Dem.Rep.of Malawi Namibia UnitedRepublicofTanzania

WAemu (West African economic and monetary union) Benin Côted'Ivoire Mali Senegal Togo

BurkinaFaso Guinea-Bissau Niger

WTOmembersarefrequentlyreferredtoas“countries”,althoughsomemembersarenotcountriesintheusualsenseofthewordbut are officially “customs territories”. The definition ofgeographical and other groupings in this report does not implyan expression of opinion by the Secretariat concerning thestatusofanycountryorterritory,thedelimitationofitsfrontiers,northerightsandobligationsofanyWTOmemberinrespectofWTO agreements. The colours, boundaries, denominations andclassificationsinthemapsofthepublicationdonotimply,onthepartof theWTO,any judgementon the legalorotherstatusofanyterritory,oranyendorsementoracceptanceofanyboundary.

Throughout this report, South and Central America and theCaribbean is referred to as South and Central America. TheBolivarian Republic of Venezuela; Hong Kong SpecialAdministrativeRegionofChina; theRepublicofKorea; and theSeparate Customs Territory of Taiwan, Penghu, Kinmen andMatsu are referenced as Bolivarian Rep. of Venezuela; HongKong,China;Korea,Republicof;andTaipei,Chineserespectively.

243

abbreviations and symbolsACP African,CaribbeanandPacificGroupofStatesADB AsianDevelopmentBankAFAS ASEANFrameworkAgreementonServicesAFTA ASEANFreeTradeAreaAGOA AfricanGrowthandOpportunityActALADI LatinAmericanIntegrationAssociationALALC LatinAmericanAssociationofFreeCommerceAMU ArabMaghrebUnionAPEC AsiaPacificEconomicCooperationAPTA AsiaPacificTradeAgreementASEAN AssociationofSoutheastAsianNationsATC AgreementonTextilesandClothingAVE ad valoremequivalentBEC broadeconomiccategoriesBITs bilateralinvestmenttreatiesBOP balanceofpaymentCACM CentralAmericanCommonMarketCAFTA CentralAmericanFreeTradeAreaCAN ANDEANCommunityCARICOM CaribbeanCommunityandCommonMarketCBTPA CaribbeanBasinTradePartnershipActCBERA CaribbeanBasinEconomicRecoveryActCEFTA CentralEuropeanFreeTradeAreaCEPA CloserEconomicPartnershipArrangementsCER CloserEconomicRelationsCGE computablegeneralequilibriumCIS CommonwealthofIndependentStatesCOMECON CouncilforMutualEconomicAssistanceCOMESA CommonMarketforEasternandSouthernAfricaCRTA CommitteeonRegionalTradeAgreementsCTC changeintariffclassificationCUs customsunionsCUSFTA Canada-UnitedStatesFreeTradeAgreementDDA DohaDevelopmentAgendaDR-CAFTA DominicanRepublic-CentralAmericanFreeTradeAgreementDSU DisputeSettlementUnderstandingEAC EastAfricanCommunityECA EconomicCommissionforAfricaECCAS EconomicCommunityofCentralAfricanStatesECO EconomicCo-operationOrganizationECOWAS EconomicCommunityofWestAfricanStatesECSC EuropeanCoalandSteelCommunityEEA EuropeanEconomicAreaEEC EuropeanEconomicCommunityEFTA EuropeanFreeTradeAgreementEIA EconomicIntegrationAgreementEPA EconomicPartnershipAgreementEU EuropeanUnionFDI foreigndirectinvestmentf.o.b. freeonboardFTAA FreeTradeAreaoftheAmericasFTAs freetradeagreementsGATS GeneralAgreementonTradeinServicesGATT GeneralAgreementonTariffsandTradeGCC GulfCooperationCouncilGDP grossdomesticproductGPA GovernmentProcurementAgreementGSP GeneralizedSystemofPreferencesGSTP GlobalSystemofTradePreferencesHS HarmonizedSystemIDB Inter-AmericanDevelopmentBankIMF InternationalMonetaryFundIPRs intellectualpropertyrightsITA InformationTechnologyAgreementITC InternationalTradeCentreITO InternationalTradeOrganizationJETRO JapanExternalTradeOrganization

ABBRevIAtIons AnD symBoLs


244

LAIA LatinAmericanIntegrationAgreementLDCs least-developedcountriesLPA LagosPlanofActionMERCOSUR SouthernCommonMarketMFN most-favourednationMNC multi-nationalcorporationMTS multilateraltradingsystemNAFTA NorthAmericanFreeTradeAgreementNT nationaltreatmentOAU OrganizationofAfricanUnityPAFTA Pan-ArabFreeTradeAreaPECS Pan-EuropeanCumulationSystemPM preferencemarginPSA partialscopeagreementPTAs preferentialtradeagreementsPUR preferenceutilizationrateRCA revealedcomparativeadvantageREC regionaleconomiccommunityRIA regionalintegrationarrangementRoOs rulesoforiginRoW restoftheworldRPM relativepreferencemarginRTAA ReciprocalTradeAgreementActSACU SouthernAfricaCustomsUnionSADC SouthernAfricanDevelopmentCommunitySAFTA SouthAsianFreeTradeAreaSAPP SouthernAfricanPowerPoolSITC StandardInternationalTradeClassificationSMEs smallandmedium-sizedenterprisesSPS sanitaryandphytosanitaryTBTs technicalbarrierstotradeTPP Trans-PacificStrategicEconomicPartnershipTRIMs trade-relatedinvestmentmeasuresTRIPS trade-relatedaspectsofintellectualpropertyrightsUNCTAD UnitedNationsConferenceonTradeandDevelopmentUS UnitedStatesVC valuecontentVCLT ViennaConventionontheLawoftheTreatiesWITS WorldIntegratedTradeSystem

Thefollowingsymbolsareusedinthispublication:… notavailable0 figureiszeroorbecamezeroduetorounding- notapplicableUS$ UnitedStatesdollars€ euro£ UKpound

245

LIst oF FIGuRes, tABLes, Boxes AnD mAPs

list of figures, tables, boxes and mapsI Worldtradein2010

Figures

Figure1 GrowthinvolumeofworldmerchandisetradeandGDP,2000-10 20

Figure2 Volumeofworldmerchandisetrade,1990-2010 21

Figure3 RatioofworldexportsofgoodsandcommercialservicestoGDP,1980-2010 25

Figure4 Worldexportsofmanufacturedgoodsbyproduct,2007-10 27

Figure5 Nominaldollarexchangerates,January2000-February2011 29

Tables

Table1 GDPandmerchandisetradebyregion,2007-10 22

Table2 Exportpricesofselectedprimaryproducts,2000-10 23

Table3 Worldexportsofmerchandiseandcommercialservices,2005-10 24

Table4 Exportsofautomotiveproductsbymajorexportingregions,2008-10 27

Appendix figure

App.Fig.1 Monthlymerchandiseexportsandimportsofselectedeconomies,January2006-January2011 37

Appendix tables

App.Table1 Worldmerchandisetradebyregionandselectedeconomies,2010 31

App.Table2 Worldexportsofcommercialservicesbyregionandselectedcountry,2010 32

App.Table3 Merchandisetrade:leadingexportersandimporters,2010 33

App.Table4 Merchandisetrade:leadingexportersandimporters(excludingintra-EU(27)trade),2010 34

App.Table5 Leadingexportersandimportersinworldtradeincommercialservices,2010 35

App.Table6 Leadingexportersandimportersofcommercialservicesexcludingintra-EU(27)trade,2010 36

II TheWTOandPreferentialTradeAgreements:Fromco-existencetocoherence

B. Historicalbackgroundandcurrenttrends

Figures

FigureB.1 CumulativenumberofPTAsinforce,1950-2010,notifiedandnon-notifiedPTAs, bycountrygroup 55

FigureB.1a AveragenumberofPTAsinforcepercountry,1950-2010,notifiedandnon-notifiedPTAs, bycountrygroup 55

FigureB1b AveragenumberofPTAparticipantsperWTOmember,1950-2010,notifiedPTAs 56

FigureB.2 Cumulativenumberofintra-andcross-regionalPTAsinforce,1950-2010, notifiedandnon-notifiedPTAs 58

FigureB.3 CumulativenumberofbilateralPTAsandtypesofplurilateralPTAsinforce,1950-2010, notifiedandnon-notifiedPTAs 60

FigureB.4 TypeofPTAsinforce,2010,notifiedandnon-notifiedPTAs 62

FigureB.5 CumulativenumberofPTAs,1950-2010,notifiedandnon-notifiedPTAs,byscopeofcoverage 62

FigureB.6 Shareofintra-PTAtradeinworldmerchandiseexports,1990-2008 64

FigureB.7 SharesofselectedPTAsintotalworldexportsbetweenPTAmembers,2008 68

FigureB.8 Intra-regionaltradesharesinworldbymanufacturingsector,1990-2009 71

FigureB.9 Sharesofintra-regionaltradeintotalimportsbyregion,1965-2005 72

FigureB.10 Preferentialtradebyimporter,2008,sharesbypreferencemarginsandMFNrates 74


246

FigureB.11 Preferentialtradebyexporter(30largestexporters),2008, sharesbypreferencemarginsandMFNrates 75

FigureB.12 Preferentialtradebyexporter(25exporterswithhighesttrade-weighted preferentialmargin),2008,preferencemargins 76

FigureB.13 Preferenceutilizationrate(PUR)ofUSpreferentialregimes (sortedbyeligibleexports),2008 80

FigureB.14 Preferenceutilizationrate(PUR)ofEUpreferentialregimes (sortedbyeligibleexports),2008 81

Tables

TableB.1 TotalandaveragenumberofPTAsinforce,2010,notifiedandnon-notifiedPTAs, byregion,regionaltypeandcountrygroup 57

TableB.2 “Network”ofPTAsinforce,2010,notifiedandnon-notifiedPTAs,byregion 59

TableB.3 Intra-andcross-regionalPTAsinforce,2010,notifiedandnon-notifiedPTAs, byregionandtimeperiod 59

TableB.4 NumberofbilateralPTAsandtypesofplurilateralPTAsinforce,2010, notifiedandnon-notifiedPTAs,bycountrygroupandregionaltype 61

TableB.5 NumberofgoodsandservicesPTAsinforce,2010,notifiedandnon-notifiedPTAs, bycountrygroup,levelofparticipationandregionaltype 63

TableB.6 WorldmerchandisetradebetweenPTAs,1990 65

TableB.7 WorldmerchandisetradebetweenPTAs,2008 66

TableB.8 Preferentialtradebyagreement/typeofregime,2008,selectedregimes 77

TableB.9 Preferentialtradebycountrygroup,2008 78

TableB.10 Preferentialtradebyproductgroup,2008 79

TableB.11 Preferenceutilizationrate(PUR)byproductgroup,2008 82

TableB.12 Firms’utilizationofPTApreferences 83

Box

BoxB.1 RulesoforigininPTAs:transactioncostsandthespaghetti-bowlphenomenon 84

Maps

MapB.1 MembershipinPTAsinforce,2010,notifiedandnon-notifiedPTAs,bycountry 58

MapB.2 Intra-regionalandextra-regionalmerchandiseexportsofWTOregions,1990-2009 69

C. CausesandeffectsofPTAs:isitallaboutpreferences?

Figures

FigureC.1 ThePTAdiagram’stradepattern 100

FigureC.2 HomePTAwithPartner1:tradecreation 101

FigureC.3 HomePTAwithPartner2:tradediversion 102

FigureC.4 EffectsofPTAsinservices 104

Table

TableC.1 Shallowversusdeepintegration 110

Boxes

BoxC.1 PTAcasestudies 98

BoxC.2 Tradecreationandtradediversioneffects 101

BoxC.3 TheeffectsofPTAsinservices 103

BoxC.4 LessonsfromtheEUexperienceinrelaxingrulesoforigin(RoOs) 109

BoxC.5 Determinantsoftheregionalizationofproductionnetworks 112

247

Appendix figures

App.Fig.C.1 OpentradeandMFNtariffs 118

App.Fig.C.2 PTApriceandquantityeffects 118

App.Fig.C.3 Welfareeffectsofpreferentialliberalization 119

Appendix table

AppTableC.1 Empiricalfindingsontradecreationandtradediversion 120

D. Anatomyofpreferentialtradeagreements

Figures

FigureD.1 MFNtarifftrendsindevelopingcountriesbyregion 124

FigureD.2 WorldMFNappliedtarifftrends 125

FigureD.3 Preferentialreductionsoftariffratesabove15percent,2007 125

FigureD.4 Relativepreferencemarginsbyregion,2000and2007 128

FigureD.5 CoveredandenforceableWTO+provisionsovertime 131

FigureD.6 CoveredandenforceableWTO-Xprovisionsovertime 131

FigureD.7 NumberofagreementscoveringWTO+provisions 132

FigureD.8 NumberofagreementscoveringWTO-Xprovisions 132

FigureD.9 NumberofWTO+andWTO-Xprovisions 133

FigureD.10 SectorcoverageinPTAsincomparisonwithGATScommitmentsandDDAoffers 134

FigureD.11 ProportionofservicessubsectorssubjecttoneworimprovedcommitmentsinPTAs, comparedtoGATS(bymember) 135

FigureD.12 GATS+commitmentsinPTAsbysector,modes1and3 137

FigureD.13 ProportionofPTAswithselectedprovisionsininvestmentchapter 139

FigureD.14 Totalnumberofprovisionsininvestmentchapterovertime 139

FigureD.15 PercentageofPTAsbyTBTprovision 141

FigureD.16 AveragedegreeofTBTintegrationbylevelofdevelopment 141

FigureD.17 Sector-specificcompetitionprovisionsinPTAs 143

FigureD.18 CompetitiondisciplinesinPTAsovertime 144

FigureD.19 Shareofpartsandcomponentsinintra-regionaltrade 147

FigureD.20 FDIflowstoASEAN-5andasshareofFDItodevelopingcountries,1970-92 148

FigureD.21 CostaRica’sshareofUSFDIflowstoCentralAmerica,1982-2008 150

Tables

TableD.1 Shareoftarifflinesandtradebylevelofcompetition-adjustedpreferencemargin, 2000and2007 127

TableD.2 WTO+andWTO-XpolicyareasinPTAs 129

TableD.3 PatternsofTBTintegrationacrossregions(percentageofPTAsbyprovisionandregion) 142

TableD.4 ASEAN-5exports,1967-92 147

TableD.5 CostaRica’spreferentialtradeagreements 149

TableD.6 CostaRica’stwo-waytradewiththeUnitedStates,1995-2008 150

TableD.7 CostaRica’stwo-waytradewithChina,1995-2008 150

Boxes

BoxD.1 Measurementofthevalueofpreferences 126

BoxD.2 Legalenforceability 129

LIst oF FIGuRes, tABLes, Boxes AnD mAPs


248

Appendix figure

App.Fig.D.1 VariationsinthelevelofcommitmentsofferedindifferentPTAs:Australia,Chile, RepublicofKorea,SingaporeandUnitedStates 163

Appendix tables

App.TableD.1 ListofPTAsandresultsofHMSmapping 157

App.TableD.2 Acronymsandmembers 160

App.TableD.3 Listofservicesagreementsinthedatabaseusedforthisreport 161

App.TableD.4 Theeffectsofdeepintegrationonproductionnetworks 162

App.TableD.5 Theeffectsoftradeinpartsandcomponentsondeepintegration 162

E. ThemultilateraltradingsystemandPTAs

Figures

FigureE.1 PTAsinforceatthetimeoftherequestforconsultations,1995-2010 176

FigureE.2 Intra-PTAanti-dumpinginitiations 180

Tables

TableE.1 Frequencyofrequestsforconsultations,bydevelopmentlevelandexistenceofPTAs inforcebetweentheparties,1995-2010 176

TableE.2 Requestsforconsultations,byyearandsubsequentprocedures,1995-2010 177

TableE.3 WTOAgreementscitedintherequestsforconsultations,1995-2010 178

TableE.4 Anti-dumpinginitiationsbyPTAstatus 180

Boxes

BoxE.1 Investmentprovisionsininternationalagreements:isthereapotentialforthird-party discrimination? 170

BoxE.2 Makingrulesoforiginmorecompatiblewiththemultilateraltradingsystem 172

BoxE.3 Methodology 179

Statisticalappendix

App.Table1 Merchandiseexportsandimportsofplurilateralpreferentialtradeagreements,2008 199

App.Table2.A MerchandiseexportsofASEANcountries,1992-2009 201

App.Table2.B MerchandiseimportsofASEANcountries,1992-2009 203

App.Table3.A MerchandiseexportsofCIScountries,2000-2009 205

App.Table3.B MerchandiseimportsofCIScountries,2000-2009 207

App.Table4.A MerchandiseexportsofEuropeanUnion(15)countries,1990-2009 209

App.Table4.B MerchandiseimportsofEuropeanUnion(15)countries,1990-2009 211

App.Table5.A MerchandiseexportsofMERCOSURcountries,1990-2009 213

App.Table5.B MerchandiseimportsofMERCOSURcountries,1990-2009 214

App.Table6.A MerchandiseexportsofNAFTAcountries,1990-2009 215

App.Table6.B MerchandiseimportsofNAFTAcountries,1990-2009 216

App.Table7 Worldmerchandiseexportsbyproductandregion,1990-2009 217

App.Table8 Preferentialtradebyimporter,preferentialmarginandMFNrate 224

App.Table9 Preferentialtradebyimporter,dutiesandaveragepreferencemargin 225

App.Table10 Preferentialtradebyexporter,30largestexporters 226

App.Table11 Sharesofpreferentialtradeanddutyreductionsfromreciprocalpreferenceschemesbyimporter 227

249

Wto memBeRs

WTO members (AsofendMay2011)

AlbaniaAngolaAntiguaandBarbudaArgentinaArmeniaAustraliaAustriaBahrain,KingdomofBangladeshBarbadosBelgiumBelizeBeninBolivia,PlurinationalStateofBotswanaBrazilBruneiDarussalamBulgariaBurkinaFasoBurundiCambodiaCameroonCanadaCapeVerdeCentralAfricanRepublicChadChileChinaColombiaCongoCostaRicaCôted’IvoireCroatiaCubaCyprusCzechRepublicDemocraticRepublicoftheCongoDenmarkDjiboutiDominicaDominicanRepublicEcuadorEgyptElSalvadorEstoniaEuropeanUnionFijiFinlandFormerYugoslavRepublicofMacedonia (FYROM)FranceGabonTheGambiaGeorgiaGermanyGhanaGreeceGrenadaGuatemalaGuineaGuineaBissauGuyanaHaitiHondurasHongKong,China

HungaryIcelandIndiaIndonesiaIrelandIsraelItalyJamaicaJapanJordanKenyaKorea,RepublicofKuwaitKyrgyzRepublicLatviaLesothoLiechtensteinLithuaniaLuxembourgMacao,ChinaMadagascarMalawiMalaysiaMaldivesMaliMaltaMauritaniaMauritiusMexicoMoldovaMongoliaMoroccoMozambiqueMyanmarNamibiaNepalNetherlandsNewZealandNicaraguaNigerNigeriaNorwayOmanPakistanPanamaPapuaNewGuineaParaguayPeruPhilippinesPolandPortugalQatarRomaniaRwandaSaintKittsandNevisSaintLuciaSaintVincentandtheGrenadinesSaudiArabia,KingdomofSenegalSierraLeoneSingaporeSlovakRepublicSloveniaSolomonIslandsSouthAfrica

SpainSriLankaSurinameSwazilandSwedenSwitzerlandChineseTaipeiTanzaniaThailandTogoTongaTrinidadandTobagoTunisiaTurkeyUgandaUkraineUnitedArabEmiratesUnitedKingdomUnitedStatesofAmericaUruguayVenezuela,BolivarianRepublicofVietNamZambiaZimbabwe


250

previous World Trade reportstrade in natural resources

2010

9 789287 037084

World Trade Report

The World Trade Report 2010 focuses on trade in natural resources, such as fuels, forestry, mining and fisheries. The Report examines the characteristics of trade in natural resources, the policy choices available to governments and the role of international cooperation, particularly of the WTO, in the proper management of trade in this sector.

A key question is to what extent countries gain from open trade in natural resources. Some of the issues examined in the Report include the role of trade in providing access to natural resources, the effects of international trade on the sustainability of natural resources, the environmental impact of resources trade, the so-called natural resources curse, and resource price volatility.

The Report examines a range of key measures employed in natural resource sectors, such as export taxes, tariffs and subsidies, and provides information on their current use. It analyses in detail the effects of these policy tools on an economy and on its trading partners.

Finally, the Report provides an overview of how natural resources fit within the legal framework of the WTO and discusses other international agreements that regulate trade in natural resources. A number of challenges are addressed, including the regulation of export policy, the treatment of subsidies, trade facilitation, and the relationship between WTO rules and other international agreements.

“I believe not only that there is room for mutually beneficial negotiating trade-offs that encompass

natural resources trade, but also that a failure to address these issues could be a recipe for

growing tension in international trade relations. Well designed trade rules are key to ensuring

that trade is advantageous, but they are also necessary for the attainment of objectives such as

environmental protection and the proper management of natural resources in a domestic setting.”

Pascal Lamy, WTO Director-General

World

Trad

e Rep

ort 2010 T

rade in natural resources

World Trade Report 2010Trade in natural resources

TheWorldTradeReport2010focusesontradeinnaturalresources,suchasfuels,forestry,miningand fisheries. The Report examines the characteristics of trade in natural resources, the policychoicesavailabletogovernmentsandtheroleofinternationalcooperation,particularlyoftheWTO,inthepropermanagementoftradeinthissector

trade Policy Commitments and Contingency measures

2009

WORLD TRADE REPORT 2009

World Trade Report The World Trade Report is an annual publication that aims to deepen understanding about trends in trade, trade policy issues and the multilateral trading system. The theme of this year’s Report is “Trade policy commitments and contingency measures”. The Report examines the range of contingency measures available in trade agreements and the role that these measures play. Also referred to as escape clauses or safety valves, these measures allow governments a certain degree of flexibility within their trade commitments and can be used to address circumstances that could not have been foreseen when a trade commitment was made. Contingency measures seek to strike a balance between commitments and flexibility. Too much flexibility may undermine the value of commitments, but too little may render the rules unsustainable. The tension between credible commitments and flexibility is often close to the surface during trade negotiations. For example, in the July 2008 mini-ministerial meeting, which sought to agree negotiating modalities – or a final blueprint – for agriculture and non-agricultural market access (NAMA), the question of a “special safeguard mechanism” (the extent to which developing countries would be allowed to protect farmers from import surges) was crucial to the discussions. One of the main objectives of this Report is to analyze whether WTO provisions provide a balance between supplying governments with necessary flexibility to face difficult economic situations and adequately defining them in a way that limits their use for protectionist purposes. In analyzing this question, the Report focuses primarily on contingency measures available to WTO members when importing and exporting goods. These measures include the use of safeguards, such as tariffs and quotas, in specified circumstances, anti-dumping duties on goods that are deemed to be “dumped”, and countervailing duties imposed to offset subsidies. The Report also discusses alternative policy options, including the renegotiation of tariff commitments, the use of export taxes, and increases in tariffs up to their legal maximum ceiling or binding. The analysis includes consideration of legal, economic and political economy factors that influence the use of these measures and their associated benefits and costs.

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WORLD TRADE REPORT 2009 - Trade Policy Com

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Trade Policy Commitments and Contingency Measures

Cover photos (from left to right): Image copyright Quayside, 2009; Image copyright Christian Lagerek, 2009; Image copyright Guido Vrola, 2009;

The 2009 Report examines the range and role of contingency measures available in tradeagreements.Oneof theReport’smainobjectives is toanalysewhetherWTOprovisionsprovideabalance between supplying governments with the necessary flexibility to face difficult economicsituationsandadequatelydefiningtheseinawaythatlimitstheiruseforprotectionistpurposes.

trade in a Globalizing World

2008

Trade in a Globalizing World

WORLD TRADE REPORT 2008

World Trade Report The World Trade Report is an annual publication that aims to deepen understanding about trends in trade, trade policy issues and the multilateral trading system.

International trade is integral to the process of globalization. Over many years, governments in most countries have increasingly opened their economies to inter-national trade, whether through the multilateral trading system, increased regional cooperation or as part of domestic reform programmes. Trade and globalization more generally have brought enormous benefits to many countries and citizens. Trade has allowed nations to benefit from specialization and to produce more efficiently. It has raised productivity, supported the spread of knowledge and new technologies, and enriched the range of choices available to consumers. But deeper integration into the world economy has not always proved to be popular, nor have the benefits of trade and globalization necessarily reached all sections of society. As a result, trade scepticism is on the rise in certain quarters.

The purpose of this year’s Report, whose main theme is “Trade in a Globalizing World”, is to remind ourselves of what we know about the gains from international trade and the challenges arising from higher levels of integration. The Report addresses a range of interlinking questions, starting with a consideration of what constitutes globalization, what drives it, what benefits does it bring, what challenges does it pose and what role does trade play in this world of ever-growing inter-dependency. The Report asks why some countries have managed to take advantage of falling trade costs and greater policy-driven trading opportunities while others have remained largely outside international commercial relations. It also considers who the winners and losers are from trade and what complementary action is needed from policy-makers to secure the benefits of trade for society at large. In examining these complex and multi-faceted questions, the Report reviews both the theoretical gains from trade and empirical evidence that can help to answer these questions.

ISBN 978-92-870-3454-0

WORLD TRADE REPORT 2008 - Trade in a Globalizing W

orld

The2008Reportprovidesareminderofwhatweknowaboutthegainsfrominternationaltradeandhighlightsthechallengesarisingfromhigherlevelsofintegration.Itaddressesthequestionofwhatconstitutesglobalization,whatdrivesit,whatbenefits itbrings,whatchallengesitposesandwhatroletradeplaysinthisworldofever-growinginter-dependency.

sixty years of the multilateral trading system : Achievements and Challenges

2007

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2007WORLD TRADE REPORT

On1January2008themultilateraltradingsystemcelebratedits60thanniversary.TheWorldTradeReport2007celebratesthislandmarkanniversarywithanin-depthlookattheGeneralAgreementon Tariffs and Trade (GATT) and its successor the World Trade Organization — their origins,achievements,thechallengestheyhavefacedandwhatthefutureholds.

exploring the Links between subsidies, trade and the Wto

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TheWorldTradeReport2006focusesonhowsubsidiesaredefined,whateconomictheorycantellusaboutsubsidies,whygovernmentsusesubsidies,themostprominentsectorsinwhichsubsidiesareappliedand theroleof theWTOAgreement in regulatingsubsidies in international trade.TheReportalsoprovidesbriefanalyticalcommentariesoncertaintopicaltradeissues.

trade, standards and the Wto

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TheWorldTradeReport2005seeks toshed lighton thevarious functionsandconsequencesofstandards,focusingontheeconomicsofstandardsininternationaltrade,theinstitutionalsettingforstandard-setting and conformity assessment, and the role of WTO agreements in reconciling thelegitimatepolicyusesofstandardswithanopen,non-discriminatorytradingsystem.

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Coherence

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TheWorldTradeReport2004focusesonthenotionofcoherenceintheanalysisofinterdependentpolicies:theinteractionbetweentradeandmacroeconomicpolicy,theroleofinfrastructureintradeandeconomicdevelopment,domesticmarketstructures,governanceandinstitutions,andtheroleofinternationalcooperationinpromotingpolicycoherence.

trade and Development

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TheWorldTradeReport2003focusesondevelopment.Itexplainstheoriginofthisissueandoffersaframeworkwithinwhichtoaddressthequestionoftherelationshipbetweentradeanddevelopment,therebycontributingtomoreinformeddiscussion.

This report is also available inFrench and Spanish.

To order, please contact:WTO Publications

World Trade Organization154, rue de Lausanne

CH-1211 Geneva 21Tel: (41 22) 739 52 08Fax: (41 22) 739 54 58

Email: [email protected] WTO bookshop:

http://onlinebookshop.wto.org

ISBN 978-92-870-3764-0Printed in Switzerland

Cover designed by triptik Report designed by Services Concept

© World Trade Organization 2011

Image credits (cover):Cover top left – Brian Jackson – iStockphoto

Cover left centre – Hande Guleryuz Yuce – iStockphotoCover bottom left – geopaul – iStockphoto

Cover bottom centre – Christian Lagereek – iStockphotoCover bottom right – René Mansi – iStockphoto

Cover image top right – Heather Sapey-Pertin

The World Trade Report is an annual publication that aims to deepen understanding about trends in trade, trade policy issues and the multilateral trading system.

The 2011 World Trade Report is split into two main parts. The first is a brief summary of the trade situation in 2010. The second part focuses on the special theme of preferential trade agreements.

Website: www.wto.orgGeneral enquiries: [email protected]: +41 (0)22 739 51 11

What is the World Trade Report?

Using this report

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World Trade Report 2011

The WTO and preferential trade agreements: From co-existence to coherence

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World Trade Report

The ever-growing number of preferential trade agreements (PTAs) is a prominent feature of international trade. The World Trade Report 2011 describes the historical development of PTAs and the current landscape of agreements. It examines why PTAs are established, their economic effects, and the contents of the agreements themselves. Finally it considers the interaction between PTAs and the multilateral trading system.

Accumulated trade opening – at the multilateral, regional and unilateral level – has reduced the scope for offering preferential tariffs under PTAs. As a result, only a small fraction of global merchandise trade receives preferences and preferential tariffs are becoming less important in PTAs.

The report reveals that more and more PTAs are going beyond preferential tariffs, with numerous non-tariff areas of a regulatory nature being included in the agreements.

Global production networks may be prompting the emergence of these “deep” PTAs as good governance on a range of regulatory areas is far more important to these networks than further reductions in already low tariffs. Econometric evidence and case studies support this link between production networks and deep PTAs.

The report ends by examining the challenge that deep PTAs present to the multilateral trading system and proposes a number of options for increasing coherence between these agreements and the trading system regulated by the WTO.

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technical notes - wto

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