introduction to the wto 14 april 2010
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Introductionto the WTO
Visit to the WTOStudy Tour Russian Member Universities ofUNCTADs Vi Network
14 April 2010
Gerardo T. ThielenCounsellorInstitute for Trainingand Technical Cooperationgerardo.thielen@wto.org
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From GATT to WTO
From a provisional agreement to anOrganisation:
Havana Charter
GATT (1 January 1948 31 December
1995)
23 Contracting Parties 123
8 Rounds of Negotiations
WTO (1 January 1995)
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WTO: What is it?
An international Organization:
Organization created by the
Marrakesh Agreement
Sui generis organisation (independent
from the United Nation system)
Replaces the GATT (created in 1947)
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WTO Functions:
Administer and implement the WTO
agreements
Forum for negotiations
Administer Settlement of Disputes
Administer Trade Policy Review Mechanism
Technical Assistance to developing countries
WTO: What is its purpose?
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Set of rules
The negotiated legal rules included inthe various WTO agreements cover the
following topics: Trade in Goods
Trade in Services
Trade-related aspects of intellectualproperty rights
Dispute Settlement
Trade Policy Reviews
WTO: How does it work?
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Marrakesh Agreement
Annex 1Annex 1A Agreement on Trade in Goods
General Interpretative Note
GATT 1994
- 6 Understandings (on the interpretation ofvarious GATT provisions)
- Marrakesh Protocol to the GATT 1994
+ Schedules of Tariff Concessions
Specific Agreements (11)
Annex 1B Agreement on Trade in Services (GATS) Schedules of specific commitments
MFN exemptionsAnnex 1C Trade-related aspects of Intellectual Property
Rights (TRIPS)
! Refer also to pertinent Convention onIntellectual Property Rights (WIPO)
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Annex 2 Understanding on Rules and Procedures Governingthe Settlement of Disputes
Annex 3 Trade Policy Review Mechanism
Annex 4 Plurilateral Trade Agreements
Decisions and Declarations adopted at Marrakesh
Decisions and Declarations adoptedafterwards (-> Evolving legal framework)
Agreements hierarchy
Marrakesh Agreement
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Ministerial Conference
Secretariat
AppellateBody
DisputeSettlement
Panels
Committees Committees
Goods Council Services Council
TRIPSCouncil
CTD (Development)CTE (Environment)CRTA (Regionalism)
BOPBudgetWG (Accessions,
Investment, competition,GovernmentProcurement)
General CouncilTPRB DSB
Director-General
WTO: How does it work?
WTO Structure
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Secretariat
About 750 staff
Headed by a Director-General (DG)
Budget 2009: 190 millions Swiss
francs + extra-budgetary funds
(about 24 millions Swiss francs)
WTO: How does it work?
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Decision making
Member-driven organisation
Consensus (GATT practice), even if
voting procedures exist
Consensus when no Member formally
object to a decision
Negative consensus
WTO: How does it work?
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Meetings
Type of meetings (formal, informal,
special sessions, consultations, multi-/pluri- /bilateral)
All WTO Bodies open to all Members(specificities for panels and AppellateBody)
WTO: How does it work?
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Multilateral Agreements on Trade in GoodsGATT 1994
GATT 1947Rectifications, amendments and modifications
which entered into force before 1.1.1995
(Protocols, Decisions of the CONTRACTING
PARTIES).Protocols of Accession (to GATT)
Understandings on (Art. II:1b, XVII, XXIV,XXVIII, BOP provisions, Waivers)Marrakesh Protocol Schedules of Tariff Concessions
Agreements on
Agriculture
SPS
Textiles and Clothing
TRIMs
AntidumpingCustoms Valuation
PSIRules of Origin
Import Licensing
Subsidies and Countervailing Measures
Safeguards
Decisions, Declarations
TBT
WTO Coverage
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General Agreement on Trade in Services
GATS
PART I (Scope and Definitions)PART II (General Obligations and Disciplines)PART III (Specific Commitments) Schedules on Specific CommitmentsPART IV (Progressive Liberalization)PART V (Institutional Provisions)
ANNEXESAnnex on Article II (MFN) exemptions) Lists of Art. II (MFN) ExemptionsAnnex on Movement of Natural Persons Supplying Services under the GATS
Annex on Air Transport ServicesAnnex on Financial ServicesSecond Annex on Financial Services
Annex on Negotiations on Maritime Transport ServicesAnnex on TelecommunicationsAnnex on Negotiations on Basic Telecommunications
3rd Protocol (1995)
Decisions, Declarations
2nd, 5th Protocol (1995, 1997)
4th Protocol (1997)
WTO Coverage
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Trade-Related Aspects of Intellectual Property Rights (TRIPS)
TRIPS
Section 1: Copyright and Related Rights
Decisions, Declarations
PART I (General Provisions and Basic Principles)PART II (Standards concerning the availability, scope and use of IPR)
Section 2: Trademarks
Section 3: Geographical Indications
Section 4: Industrial DesignsSection 5: PatentsSection 6: Layout-designs (Topographies) of Integrated Circuits
Section 7: Protection of Undisclosed Information (Trade Secrets)
Section 8: Control of Anti-competitive Practices in Contractual Licenses
PART III (Enforcement of IPR)
PART IV (Acquisition and Maintenance of IPR and related Inter Partes Procedures)PART V (Dispute Prevention and Settlement)PART VI (Transitional Arrangements)PART VII (Institutional arrangements: Final Provisions)
WTO Coverage
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Evolution of WTO framework
Decisions and Declarations(few examples)1996 Singapore ministerial conference
Singapore Topics
Trade Facilitation, Investments, Competition,Transparency in Government Procurement
Information Technology Initiative
1998 Geneva ministerial conference
Electronic Commerce1999 Seattle ministerial conference
2001 Doha ministerial conferenceDoha Development Agenda
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Doha Development Agenda
14 Nov. 2001: Doha Ministerial Declaration
Define the mandate for the negotiations on
various topics as well as other work
(implementation)
1 Feb. 2002: First TNC Meeting
Establish the structure and the main
principles for the negotiation
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Doha Development Agenda
14 Nov. 2001: Doha Ministerial Declaration
Define the mandate for the negotiations on
various topics as well as other work
(implementation)
47. [...] the conduct, conclusion and entry into force
of the outcome of the negotiations shall be
treated as parts of a single undertaking. [...]
(DDA, paragraph 47)
Single undertaking:Nothing is agreed until
everything is agreed
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Doha: Work Programme
Implementation (12)Agriculture (13-14)
Services (15)Market Access for Non-Agricultural Products (16)
TRIPS (17-19)Trade and Investment (20-22)
Trade and Competition Policy (23-25)Transparency in Government Procurement (26)
Trade Facilitation (27)WTO Rules (28-29)
Dispute Settlement (30)Trade and Environment (31-32)
Electronic Commerce (34)
Small Economies (35)Trade, Debt and Finance (36)
Trade and Transfer of Technology (37)Technical Cooperation and Capacity Building (38-41)
Least-Developed Countries (42-43)
Special and Differential Treatment (44)
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Doha Negotiations:Structure
General Council
Trade Negotiations Committee
Chairman: WTO DG (ex officio)
Goods Services TRIPS Other Issues
- Agriculture- NAMA (*)
- Services - GeographicalIndications - DisputeSettlement
- Development
- Environment
- Rules (*)
Negotiating groups meetduring special sessions of
existing WTO bodies, at the
exception of (*) for which
new Negotiating Groups
have been created.
- Trade Facilitation
(*)
- Cotton
July Decision
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Doha Development Agenda
14 Sep. 2003: Cancun Ministerial Statement Mid-term review : Existence of important
divergences and delays in relation with
program established at Doha
Dec. 2003: General Council Decision
Priority given to four issues:
Agriculture (modalities)
Non agricultural Market Access [NAMA](modalities)
Singapore issues
Cotton (initiative from 4 African countries)
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1 August 2004: Adoption of the JulyPackage
Negotiations start again
( framework )
Singapore issues clarified (only
trade facilitation included in Doha
Round). Cotton issue included in
agricultural negotiations
(Subcommittee)
Doha Development Agenda
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Doha Development Agenda
Dec. 2005: Hong Kong MinisterialDeclaration
Limited Progress but in the right direction
Deadline for all agricultural export subsidies Agreement on cotton
Duty-free/quota-free access for the 32 LDCMembers
Agriculture and NAMA: framework for fullmodalities
Progress in relation with servicesnegotiations
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Doha Development Agenda
June 2006:Decision on transparency for RTAs
July 2006:Negotiations suspended
December 2006: General Council Decision ontransparency for RTAs
February 2007:DG: We have resumednegotiations fully across the board
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Doha Development Agenda
April 2008: DG signals start of horizontalprocess
May 2008: Services Chair issues report and
draft text
Since July 2007: Draft texts, and revisions, onmodalities for Agriculture and NAMAcirculated by the chairmen
(2008...2009...2010)
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Doha Development AgendaMarch 2010: We are not where we wanted to be by now
Informal consultations (regional groups, small groups in variable geometry andwith individual Members)
Members committed to the mandate of the Round and to its successfulconclusion.Value of the system (e.g. global economic crisis- MTS has prevented a descentinto full scale protectionism.
Sense of frustration at the slow pace of the negotiations, but there is a clearcatalogue of gapsPicture is more blurred is regarding the size of some of these gaps (Blue Box inagriculture or in Trade Facilitation). Size of gaps much less clear in NAMA or FisherySubsidies.
Next steps: mix of technical and political preparations to start devising thecontours of a packageNeed to build on what is already on the table (Chairs' texts), avoid backtracking,and maintaining the development dimension of the Round.
A "cocktail" approach: Chair-led processes within the Negotiating Groups,maintaining an overview of the entire negotiating landscape (transparency andinclusiveness), and smaller groups in variable geometry and bilateral contactsremain necessary and essential moving towards a more horizontal view of theissues (negotiating groups and the TNC remaining the anchor of the negotiatingprocess)
Ministerial involvement: make productive use of up-coming gatherings (e.g.
Cairns Group, APEC and OECD) , possible Ministerial engagement if needed
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