introduction to the wto 14 april 2010

7/31/2019 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 [email protected]


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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 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)



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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



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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)



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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)


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


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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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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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)



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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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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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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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