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PREPARING FOR WTO ACCESSIONS:
INSIGHTS FROM DEVELOPING COUNTRIES
Country studies commissioned by
Simon J. Evenett
Draft prepared on 22 January 2005
Prepared for an IDRC-sponsored research project titled Evaluating and Preparing For WTO
Accessions. Project Leader: Simon J. Evenett, World Trade Institute, Bern, and the University
of Oxford. Comments on this draft document are welcome.
TABLE OF CONTENTS
ed studies 1
Camb
k Siphana
6
ary 6
Ethiopia
Mamo Esmelealem Mihretu
121
mary 122
172
Executive Summary 172
Horloo Oyuntsetseg
227
Nepa
Kanhaiya B. Mathema
239
Vietnam 279
Executive Summary 279
Please note that all authors are writing in their personal capacities.
Each country study is in draft form.
Terms of reference for commission
odia
H.E. So
Executive Summ
Executive Sum
Jordan
Riad al Khouri
Mongolia
l
Dang Nhu Van, Phan Chi Thanh, Le Kim Sa
1
PREPARING FOR A WTO ACCESSION NEGOTIATION
Terms of reference for the country studies to be commissioned
University of Oxford, [email protected]
hat has either
otiations to join the WTO or
Simon J. Evenett
This terms of reference refers to a study of a single nation or customs territory t
completed its neg is in the process of negotiating to join the
analyse the
f
ion—and the
2 ent to organise and prepare for its participation in WTO
3 e actors (such as companies, civil societies, and scholars) were
4 ers and when
5 government to prepare for the implementation of commitments
made during the WTO accession negotiations. (This may not yet be relevant for those
lateral donors
country. Moreover, it is perfectly
e than others.
T necessary to
address the above matters and, equally importantly, to draw broader lessons for other
WTO. For the nation/customs territory in question, the goal the paper is to
ollowing six matters:
1. The priorities that the nation identified as important for its WTO access
process by which those priorities were identified.
. The steps taken by the governm
accession negotiations.
. The ways in which non-stat
involved in the WTO accession process.
. The principal challenges faced when negotiating with existing WTO memb
dealing with the WTO secretariat.
. The steps taken by the
nations that are still negotiating their accessions to the WTO.)
6. The type, extent, and usefulness of any technical assistance received from bi
or international organisations.
Not all of the above six matters may be relevant to a given
acceptable for an author to present more material on some of the matters abov
here is no prescribed length for the paper. The paper should be as long as
developing countries concerning:
1. How best to form national priorities for the WTO accession effort.
2. How best to develop and organise the necessary governmental expertise, intra-
governmental departmental skills, offices, and procedures, and inter-department
2
and coordination, to participate in (and complete) WTO
3 of people outside of government (including
4 ssistance programmes to effectively assist developing
countries in their WTO accession efforts.
he purpose of
eparation and
ou do not have to answer all of these questions
procedures for consultation
accession negotiations.
. How best to involve, if at all, the expertise
business, scholars, civil society, foreign consultants.)
. How best to organise technical a
Suggested questions to address in the paper.
Please find below a list of specific questions that your paper might address. T
these questions is to make you think about many of the issues involved in pr
negotiation for WTO accession. Y . Moreover,
nothing stops you from addressing other issues that you think are relevant to the preparation
for and negotiation of a WTO accession.
. [Decision to join] Who made the decision to apply for WTO membership a
that decision made?
. [Rationale] What did the country hope to achieve by becoming a member of
what ways, if at all, was the d
1 nd when was
2 the WTO? In
ecision to join the WTO seen as an important part of the
lar benefits of
3 played a role
ere advanced
4 to apply for
ent
ions? What is
inistries and
esources does this office have available to it (noting that the level of
resources may change over time)? Did this government office have the consistent support
of senior political leaders?
5. [Trade policy expertise] After the decision to apply for WTO membership, did the country
take active measures to expand its trade policy expertise? If so, how? By how much? And
over what time frame?
country’s development/growth/poverty reduction strategy? Were any particu
joining the WTO identified as being of special importance for your country (such as
increasing foreign direct investment)?
. [Participation of non-state actors in decision] Which, if any, non-state actors
in debates over whether to apply for WTO membership? What arguments w
by those non-state actors?
. [Organisation of negotiating effort within government] After the decision
WTO membership was made, which government office or officials within the governm
was given primarily responsibility for planning and executing WTO negotiat
the relationship between this government office and other government m
agencies? What r
3
6. ent of
n on imports,
entation costs
ta was used?
studies made available to the public? (If so, please include them as an appendix
7.
tutions on the
.
8 of the studies (mentioned in question 7.
en during the
9. n-state
ion? These non-state actors could include
l institutions,
ation process
(identified in
1 trategy] Did the government consult with non-state
actors could
l institutions,
ation process
ally or on an ad hoc basis?
1 id any of the
reparation for
n negotiations? If so, why? If not, why
not?
13. [Problem identification] What important problems did the planning and consultation
process identify with respect to (i) planning WTO negotiations, (ii) conducting WTO
negotiations, and (iii) implementing WTO accession obligations (once negotiations were
completed)? In each case, describe what the problems were.
[Internal government studies] What studies, if any, were conducted by the governm
the effects of WTO accession? Were analyses of the effects of WTO accessio
exports, FDI, employment, demands for social protection, and future implem
undertaken? If so, what analytical approaches were taken? And what da
Where the
to this study.)
[Studies by non-state actors] What studies, if any, were conducted by university scholars
by or on behalf of bilateral aid agencies and the international financial insti
effects of WTO accession? Please include a list of these studies in your paper
. [Impact of studies by non-state actors] Did any
(above)) inform the government’s preparation for, goals for, or tactics tak
WTO accession negotiations? If so, why? If not, why not?
[Consultations over effects of WTO accession] Did the government consult with no
actors over the effects of WTO access
academics, trade unions, NGOs, business people, the international financia
and other friendly nations that have joined the WTO. Was the consult
organised formally or on an ad hoc basis?
10. [Impact of consultations with non-state actors] Did any of the consultations
question 9. (above)) inform the government’s preparation for and the objectives of the
WTO accession negotiations? If so, why? If not, why not?
1. [Consultations over negotiating s
actors over the negotiating strategy for WTO accession? These non-state
include private law firms—at home and abroad—the international financia
and other friendly nations that have joined the WTO. Was the consult
organised form
2. [Impact of consultations over negotiating strategy with non-state actors] D
consultations (identified in question 11 (above)) inform the government’s p
and tactics undertaken during the WTO accessio
4
14. (above),
dressed. If so, which government agency
1 question 13
If so, please provide
16. e problems
structure and
nefits of WTO accession? If so,
ents become
terwards?
TO members
1 current WTO
rs? How long did it take to assemble and write those documents? What resources
lp in drafting
ents? If so, who provided that help? Were you satisfied with the help that you
19. TO
2 ow quickly did the applicant government respond to the issues
the nature of
clude accommodation of requests or counterproposals?
ore they were
ow were any
come?
23. [Assistance from the WTO secretariat]. What assistance did you receive from the WTO
secretariat? Was all of the assistance from the WTO secretariat provided informally? If
not, please describe the formal assistance received.
24. [Geneva-based negotiating resources] How many resources (person-years and skills)
were used to conduct these negotiations?
[Problem resolution] For each of the important problems identified in question 13
please report whether the problem was ad
addressed the problem and what measures were taken?
5. [Further expertise] As a result of addressing the problems identified in
(above), did the government realise that it needed more expertise?
details and describe where the expertise was trained and who funded that training?
[Investments to bolster benefits of WTO accession] As a result of addressing th
identified in question 13 (above), did the government identify any infra
administrative investments that could enhance the be
where these investments made? If not, why not? When will those investm
operational—in time for WTO accession, before it, or af
17. [Actual negotiations] Describe the process of negotiations with the current W
in Geneva. What challenges were faced during those negotiations?
8. [Documentation] What documents did the government have to supply to
membe
were required to assemble those documents? Did your country receive any he
those docum
received?
[Issues raised by current WTO members] What important issues did the existing W
members raise?
0. [Response by applicant] H
raised by WTO members (and identified in question 19 (above))? What was
the response? Did any response in
21. [Length of negotiations] If applicable, how long did the negotiations take bef
successfully brought to an end?
22. [Facilitating closure] What factors brought the negotiations to an end? H
deadlocks in the negotiations over
5
er factors that they feel was pertinent to the
organisation of the country’s WTO accession negotiations.
The authors of these papers would be encouraged to go beyond these (rather detailed and
probably laborious!) questions and to include oth
6
PREPARING FOR A WTO ACCESSION NEGOTIATION
Cambodia Country Case Study
Secretary of State for Commerce, Cambodia
epal, was the TO since its constitutes a g, hectic and the accession do in order to
imply that a tween it and
ss, certain practices have evolved over time that provided reasonable guidance as regards to what an acceding country will have to do. Based on its recent
hare a few e process for
cession: It is e public and ot an aim by
e achieved at any cost. Cambodia has carefully considered efficient use
the long-term ould have to
development
h the various consultations
bodia could gotiations. A sion process,
e and during the negotiation stage, would generate the ent
e WTO, its
executive and legislative branches of government and effective public/private sector partnerships were also essential for a smooth accession process. As reflected in section 3 of this report, Cambodia has probably developed one of the most daring and pioneering approaches to policy dialogue consultations.
Stakeholder consultations, while necessary, should not take place in a vacuum. Acceding countries should frame their national priorities for WTO accession within the larger context of
Prepared by Sok Siphana, J.D.
Executive Summary:
Cambodia became a member of WTO on 13 October 2004 and, along with Nfirst and only 2 LDCs to have succeeded in their accessions to the Wtransformation from the GATT in 1995. Cambodia’s accession into the WTOmajor challenge for the country. The accession process is a complicated, londemanding exercise. There is really no miracle prescription that would render process easy. Moreover there is no official description of what a country has to join WTO. Article XII of the Marrakesh Agreement establishing the WTO states scountry that is not a member may become a member “on terms to be agreed bethe WTO. Nonethele
experiences with WTO accession process, Cambodia proposes to srecommendations that would set a minimum base and at least could facilitate thother acceding countries.
Recommendations on best practices to form national priorities for the WTO acnecessary for the acceding country to have a clear understanding, both in thprivate sector and by the civil sector at large, that accession to the WTO is nitself, and membership should not bthat the real terms of integration of Cambodia into the world economy, includingof advantages of membership in the WTO, will be determined, first of all, by development perspectives of the Cambodian economy as a whole. As such it wbe careful not to make concessions that would severely undermine its economicand unduly compromise strategic sectors.
To arrive at that, there has to be a clear commitment for policy dialogue witstakeholders. Forging effective partnerships with the private sector and frequent with all economic actors – including civil society groups - would ensure that Camformulate comprehensive and consolidated positions and arguments during its nenational consensus among, and engagement of, all concerned parties in the accesparticularly the private sector, befornecessary support and avoid internal problems at a later stage. The Cambodian Governmhas for that matter launched active public awareness campaigns about thagreements, the accession and implications of membership. Effective cooperation among the
7
arious policy cio-Economic y Framework but probably tudy (DTIS).
undertake and complete a diagnostic trade
governmental, and inter-nd complete) plicated and
cover a wide range of sectoral and cross-sectoral issues, it is necessary for acceding countries mentation of
r committee and agencies. otiators with e course of to act as the
ptember 1997 tee was made
fficials from every ministries and agencies complex, the g of over 110 irmanship of
l Council for aration of the s was highly liberalization
t importance iation process
bly impose pressure on the Government to mobilize additional specialized staff and consultants to assist it in coping with increasing workload. The core team, with its
g within the as follow up e to focus on
aking. In retrospect the strength of the core team lied more in its ability to act as catalyst and coordinator for the larger WTO negotiating team and task force.
At the task force level, Cambodia’s best practices were practically based on two basic principles of regular engagement and pro-activeness. During the WTO process the negotiating team were able to defer some sensitive issues to the task force for decision thus lessening the potential conflicts with other government agencies.
their national economic development strategies. In the case of Cambodia, vdocuments were referred to as guiding posts, i.e., the Five Year Plan (SoDevelopment Plan (SEDP I (1996-2000) and SEDP II (2001-2005), the PolicPaper (PFP), the Interim PRSP, the Pro-Poor Trade Sector Strategy, and lastly, the most useful one, the Integrated Framework diagnostic trade integration sCambodia was one of the first countries tointegration study in 2002.
Recommendations on best practices to develop and organise the necessary expertise, intra-governmental departmental skills, offices, and proceduresministerial procedures for consultation and coordination, to participate in (aWTO accession negotiations: Since WTO issues and agreements are rather com
to establish an institutional framework responsible for the coordinated implepolicies related to WTO commitments and WTO Agreements.
The proper institutional framework should ideally consist of one single body oconsisting of senior officials of all concerned government bodies, ministries Such a mechanism should be based on a core team of professional negcompetence on wide ranging issues, which will undoubtedly arise in thnegotiations. Initially the Government has appointed the Ministry of Commercefocal point for activities related to WTO accession. It has established also in Sean Inter-Ministerial Coordinating Committee on WTO Accession. This Commitup of 15 members at the policy level and three oinvolved in WTO activities at the working level. As the process became morePrime Minister has deemed necessary to establish a large task force comprisinsenior government officials – both political and technical level - under the chathe Minister of Commerce.
On the larger scale, Cambodia has another mechanism called the inter-ministeriaSocial Development (CSD). The work of the CSD is central in steering the prepNational Poverty Reduction Strategy (NPRS). For its part, the NPRS procesparticipatory and addressed a large number of sectoral issues, including trade and integration.
At the operational support level, the issue of building of a core team is of greaprior to engaging the WTO accession process. The resource demanding negotwill inevita
specialized capacity, can serve as a strong backbone for institutional buildinnegotiating team and can act very efficiently both as local support during, andfor, the accession process. Moreover it could free up the policy makers’ timsubstantive policy discourse and policy m
8
ple outside of support from and foreign e, at no cost
um use of the government’s limited resources and allow different partners to benefit from each other’s
investment, mbodia has a able to hold ime Minister, dress sector-
on an ongoing basis, namely: (i) Agriculture and Agro-Industry; (ii) Tourism; (iii) Manufacturing and Distribution; (iv) Legislation, Taxation, and Governance;
re; and (vii)
provement of cess was less m sector, the as no strong
interacting effectively with the Government
Cambodia’s objectives of
rty reduction ematically on ed in 2002 its C offered its onal research mpaign with international
conferences, seminars and special condensed lectures within the national academic circles. rgies thus far oC. By now e many civil
Cambodia the repreneurship
development at the grass root level are quite remarkable.
Another source of expertise can be found with consultancies, whether domestic or foreign. Many of them are working, or previously worked, in a number of projects related to trade development. Access to their expertise or at least their consultancy outputs could provide to the negotiating team additional insights on numerous critical issues. Another complementary approach is to draw on the combined strengths of both national and international consultants.
Recommendations on best practices to involve, if at all, the expertise of peogovernment: The process of accession represents a great opportunity to mobilize resources outside the government, i.e. business, scholars, civil society,consultants. Countries should make active use of these expertise, most of the timto the government. Such partnerships and collaboration would help to ensure optim
expertise, resources and networks.
Private sector operators can provide reliable feedback on the issues facingproduction and trade environment, both at the national and global level. Caformalized procedure through which the Government and private sector are dialogue. At the peak is the Government–Private Sector Forum chaired by the PrSeven business-government sectoral working groups have been formed to adspecific problems
(v) Services including Banking and Finance; (vi) Energy and InfrastructuProcessing for Export.
While these working groups have produced significant effects on the overall imthe climate for private sector development their effect on the WTO accession prothan desirable. With the exception of the financial and banking sector, the tourisrice sub-sector, and the legal and accounting professional services sector, there wprivate sector organizational structure capable ofor to translate their sector-specific business interests into Cambodian policy stances to be defended in regional and international trade negotiations. As such, enhancingprivate sector participation in trade policymaking has been one of the main Cambodia initial trade mainstreaming efforts.
Civil society groups, for their part, have played mostly an important role in poveinitiatives. Until the advent of Cambodia’s WTO negotiation, trade was not systtheir agenda. In fact Oxfam was the initiator of the trade issue when it introducpublication. “Rigged Rules and Double Standards: Make Trade Fair.” The Mosponsorship to launch the publication and engage the discourse with other natiinstitutes and local civil society groups. Since then, an extensive awareness caother civil society stakeholders was initiated, including the holding of
These initial efforts are impressive and provide a basis for deepening the synedeveloped among trade sector stakeholders under the leadership of the MCambodia has consciously extended this open and collaborative dialogue to thsociety organizations with shared objectives. For a least developed country like contributions of civil society organizations in skills building and ent
9
ants, some of is deficiency
sated with extensive exchanges with the Cambodian local
grammes to nsure proper he efforts and verything in a ssion process
assistance can help build trade capacity . Thus they
heme country Cs (“IF”) to
nowledge and ploit the improved market access for its exports.
a fast-track d in line with
y ownership. programmes
assistance and capacity building, to name the main ones: multilateral organisations (WTO, World Bank,
d specialized onvince each cally owned
d ownership.
party meeting, Cambodia was fortunate to have at its disposal the technical assistance provided by the United Nations Conference on Trade and Development (UNCTAD). UNCTAD experts have long experience in WTO accessions, and were able to brief the Cambodian negotiators on the way the negotiations were usually conducted, thus helping them better understand what to expect. They also were able to help put the accession process in a development perspective. They continued to assist the Cambodian team until the end of the negotiations.
* * * * *
Many missions have been comprised of highly qualified international consultwhom regrettably may not have had adequate knowledge of the local realities. Thcould nonetheless be compenconsultants and official counterparts.
Recommendations on best practices to organise technical assistance proeffectively assist developing countries in their WTO accession efforts: Ecompliance with the global trade rules is a mind-boggling task and despite all tpolitical will so far displayed Cambodia as an LDC just could not afford to do eshort timeframe. Some WTO members were of the view that Cambodia’s accewas an opportunity to identify areas where technicaland incorporate trade as part of Cambodia’s economic development programwould welcome Cambodia’s submission of a proposal for TA.
In that respect, Cambodia has benefited immensely from its status as a Pilot Scunder the Integrated Framework for Trade Related Technical Assistance for LDsecure some of the necessary trade-related capacity building both to improve kimplementation of trade rules, and to better exDeveloped nations have extended their Technical Assistance to Cambodia onbasis in some specific areas where immediate compliance to WTO rules is needetheir pledges made in numerous political statements.
The key to a successful co-ordination of donor assistance lies in the countrOwnership means making efforts and determination to better understand donor’sand activities who are extensively involved in providing trade-related technical
UNDP, UNCTAD, ESCAP, and ITC), regional development banks (ADB), anorganisations (WCO, WIPO, UNIDO, and ISO). The challenges next are to cone of them to support and operate within the framework of the country lostrategy in ways that respect and encourage strong commitment, participation, an
Throughout the preparatory stage and prior to each working
10
PREPARING FOR A WTO ACCESSION NEGOTIATION
Cambodia Country Case Study T 1]
ss to join the r developing ssion effort;
ertise, intra-l procedures
rticipate in (and complete) WTO accession negotiations; (iii) How best to involve, if at all, the expertise of people outside of government;
ctively assist
into six sections. The first section briefly describes the priorities that Cambodia has identified as important for its WTO accession—and the process by which those
and presents development
o through to government to organise and
prepare for its participation in WTO accession negotiations.
TO accession tation among
Section 4 highlights key challenges faced by Cambodia when negotiating with existing WTO nt difficulties
rly to problems related to al trade rules multilateral
Section 5 describes the various steps taken by the Cambodian government to prepare for the implementation of commitments made during the WTO accession negotiations.
The last section attempts to review and summarize the type, extent, and usefulness of technical assistance received from bilateral donors or international organisations. Focused on trade-related capacity building (TRCB)1 which Cambodia obtained, the paper stresses the
[DRAFPrepared by
Sok Siphana, J.D. Secretary of State for Commerce, Cambodia
The objective of this study is to provide a broad overview of Cambodia’s proceWTO. More specifically the study aims to draw broader lessons for othecountries concerning: (i) How best to form national priorities for the WTO acce(ii) How best to develop and organise the necessary governmental expgovernmental departmental skills, offices, and procedures, and inter-ministeriafor consultation and coordination, to pa
and (iv) How best to organise technical assistance programmes to effedeveloping countries in their WTO accession efforts.
This volume is divided
priorities were identified. The paper addresses directly the policy coherence issuea detailed and coherent picture of the various supporting and complementarypolicies of the government.
Section 2 of this volume describes the process a non-member country must gbecome a member of WTO and the steps taken by the Cambodian
Section 3 describes the ways in which non-state actors were involved in the Wprocess. The paper gives major attention to partnership mechanisms for consulkey stakeholders, the private sector, civil society organizations and scholars.
members and when dealing with the WTO secretariat. The paper looks at inhereassociated with the accession process and focuses attention particulathe weak capacity of the Government in the understanding of the complex globon the one hand and the challenges facing Cambodia in their bilateral andnegotiations, on the other.
1 Trade Related Capacity Building refers to a coherent set of activities by donors (bilateral and multilateral) and partner countries designed to enhance the ability of policy-makers, enterprises and civil society actors in-country to improve trade performance through policy and institutional strengthening as part of a comprehensive approach to achieve a country’s overall development goals and poverty reduction strategies (DFID 2001, OECD 2001).
11
mpliance ed to enable al trade rules
tter address the supply side constraints and to exploit the improved market
mary of the various initiatives already undertaken, being implemented, or proposed by Cambodia with assistance from the 6 Integrated
core agencies and bilateral donors.
World Trade ber 1994. At its meeting on 21 December 1994, the Preparatory
Committee for the WTO established a Working Party to examine the application of the e Marrakech
e (MFTR) to er countries4
nd submitted vening of the eloni (Italy).
meetings with itted itself to 14 February
review of the
to review the cond version P opened the July 2003.
Cambodia submitted, on 22 July 2003, its acceptance of the terms and conditions of membership set out in the Accession Protocol which was approved by the Ministerial Conference on 11 September 2003 and signed by Cambodia subject to ratification. Ratification of this Protocol was made by the National Assembly and the Senate on September 2004 following the formation of the new Royal Government of Cambodia.5
need to have an effective delivery of TRCB both in the so-called "Trade rules cocapacity" and the "Trade competitiveness capacity". The former is needCambodia to improve knowledge and implementation of multilateral and regionand the latter to beaccess for its exports.
The paper concludes with an extensive sum
Framework (IF)2
INTRODUCTION
The Government of the Kingdom of Cambodia applied for accession to the Organization (WTO) in Octo 3
Government of Cambodia to accede to the WTO under Article XII of thAgreement establishing the WTO.
Cambodia submitted on 21 May 1999 its Memorandum on Foreign Trade Regimthe Accessions Division of the WTO based on which 4 main trading partnsubmitted a set of 179 questions. Cambodia completed answering the questions athem to the WTO Secretariat on 8 November 2000 opening the way for the conFirst Working Party (WP) under the Chairmanship of Ambassador Mr. Andrea MThe meeting took place on 22 May 2001 followed by a first round of bilateral some interested members. Motivated by these early successes Cambodia comman aggressive accession agenda with the second and third WP meetings held inand 14 November 2002 respectively. At the third WP the focus was on theFactual Summary. Cambodia returned to Geneva for the fourth WP in 16 April 2003 to review the accession report. An informal WP meeting was held on 26 June 2003 state of play of bilateral negotiations and focus on substantive discussions on a seof the Working Party Draft Accession Report. The conclusion of the informal Wway for the WP Chairman to set the timetable for the Final Working Party for 22
2 See also Capra-TFOC Consortium Report (August 2003) "Evaluation of the Revamped Integrated Framework for TRTA to the Least Developed Countries". Report presented to the Integrated Framework Steering Committee.
3 Letter of the Minister of Commerce No. 088/MC of 19 October 1994. 4 The four Members are Australia, EU, Japan, and USA. 5 Cambodia failed to ratify its WTO membership by deadline March 31, 2004 due to a one year long
protracted political negotiation which prevented the formation of the new government after the General Elections on July 2003. A formal extension request was send to WTO secretariat and new ratification deadline is extended to September 30, 2004. See also WTO News: 2004, Cambodia Membership Application, General Council, WTO members extend Cambodia’s ratification deadline, 11 February 2004. Available also on <http://www.wto.org.>
12
otified WTO the first and
have succeeded in their accessions to the WTO since its transformation from the GATT in 1995.6
PPROACH TO THE ACCESSION NEGOTIATIONS
m the outset,
growth and development. In order to maximize these benefits (and minimize any potential odia’s needs,
d outcomes.
ted with the
latively small , Cambodia’s e job market years ahead.
thus a major challenge facing Cambodia. of new jobs
key role in
ustrates the role that exports can play in incr i industry now
bs have been f jobs growth
and their
present situation is that the necessary increase in exports and employment can occur only if chnology are le to play in
bringing about the necessary expansion. Foreign direct investment has an especially critical role to play in expanding exports, since foreign firms know best foreign markets, and possess the technology, managerial experience and marketing channels that are needed to engage successfully in exporting.
Again, Cambodia’s experience with its garment industry provides a concrete illustration of the way in which foreign direct investment can be used to expand exports rapidly. Garment
Cambodia became a member of WTO on 13 October 2004 thirty days after it nthat its Parliament has ratified the protocol. Cambodia, along with Nepal, wasonly 2 LDCs t o
SECTION I: CAMBODIA’S A
A. Fundamental Considerations
Cambodia's accession to the WTO was a defining moment for the country. FroCambodia recognized that joining WTO could play an important role in accelerating its
disadvantages) it was necessary to devise a negotiation strategy that fit Camband that would lead to the kind of desire
1. Domestic realities: In formulating such a strategy, Cambodia starfundamental realities of present day Cambodia.
- A fast growing population: Cambodia is a small country with a repopulation, a large proportion of which is impoverished. At the same timepopulation has been growing rapidly. The number of young people entering thhas thus been growing, and will continue to grow at a rapid pace in the Expanding rapidly employment opportunities is Given the lack of purchasing power in the domestic economy, a rapid creationcan only result from producing for other, larger markets. In other words, Cambodia’s futuregrowth and development must be outward oriented, with exports playing acreating employment and reducing poverty.
Cambodia’s experience with its garment industry illeas ng employment rapidly and helping to alleviate poverty. The garment
employs directly some 260,000 people. Moreover, more than half of these jocreated during the past 5 years, making the industry by far the largest source oduring that period. The workers concerned are generally from low-income families,earnings usually flow back to these families in the countryside.
- The need to increase export and employment: A second reality of Cambodia’s
there is a rapid expansion of investment. Because adequate savings, skills and tenot always available within Cambodia, foreign investment has an important ro
6 See WTO News: 2004, Accessions: Cambodia raises WTO membership to 148, 13 October 2004. Available also on <http://www.wto.org.>
13
1.3 billion in quirements in
y any neglect development. ccount for a
t part of Cambodian employment (though still a small part of the growth of employm
al reality of nding directly or potentially s to be done,
petitiveness. nfrastructure,ssing of food dards. Here,
d foreign direct investment all have an important role to play. The development of Cambodia’s agriculture will be a long and
es reasonable t Cambodian
nd poverty in phasized the rdinated and
social sector governance.
remains a central challenge in Cambodia. In addressing its financing requirement toward achi i tal areas: (1)
and financial an engine of
growth; (5) capacity development; (6) debt management; and (7) addressing systemic and cross-cutting issues such as good governance and gender considerations.8
- Rebuilding a new image: But more importantly for Cambodia, accession to the WTO is seen as an additional step towards breaking away from its image as a poor, war-stricken country, isolated from the international community. According to one Cambodian
exports rose from $26 million in 1995 to $650 million in 1999 and more than $2003. The knowledge by foreign investing firms of marketing and other reforeign markets has obviously been a key element in allowing this rapid expansion of exports.
This emphasis on exports and foreign direct investment must not, however, implof the important role of small and medium sized enterprises in Cambodia’s These enterprises produce almost exclusively for the domestic market. They avery importan
ent) and are an important breeding ground for the development of indigenous entrepreneurship.
- Developing a rural society and economy: The third fundamentCambodia is that it is a rural society and economy, with most Cambodians depeor indirectly on agriculture for their livelihood. Cambodia is competitive competitive across a fairly wide range of agricultural sectors. Much remainhowever, to realize the full potential of this competitiveness and prospective comAchieving this will require, among other things, very large investments in rural iin agricultural extension services to improve producer skills, and improved proceproducts, for example the milling and grading of rice to international stanGovernment programs, the donor community an
complex process that needs to be backstopped by a trade policy that providprotection to domestic producers from agricultural imports, while ensuring thaagriculture that is competitive has access to markets abroad.
- Millennium Summit Development Goals (MDGs): Putting trade aperspectives: Cambodia has committed itself to achieving the MDGs7 which emimportance of efforts to integrate peace and development, and called for a coocomprehensive approach by all partners to support economic growth, investment, environmental protection, peace-building and the promotion of goodNonetheless meeting the MDGs is not without challenges for Cambodia. Poverty reduction
ev ng the MDGs, Cambodia needs to tackle simultaneously several pivoincreasing ODA flow; (2) mobilizing domestic resources through a sound fiscalsystem; (3) enhancing capital flows through FDIs; (4) using international trade as
7 The MDGs constitute eight basic poverty reduction goals ranging from access to social services and gender equity to environmental sustainability. More specifically they are: Goal 1: Eradicate extreme poverty and hunger; Goal 2: Achieve universal primary education; Goal 3: Promote gender equality and empower women; Goal 4: Reduce child mortality; Goal 5: Improve maternal health; Goal 6: Combat HIV/AIDS, malaria, and other diseases; Goal 7: Ensure environmental sustainability; Goal 8: Develop a global partnership for development.
8 Excerpt of Cambodia's Viewpoints Presented at the International Conference on Financing for Development (Monterrey, Mexico, March 18-22, 2002).
14
here is every as a means to
ic goals, one of which is to facilitate the peaceful re-emergence of
mbodia’s own mentioned.
th the WTO ents comes to estrictions on es have been dia’s garment members are
s of that date, Cambodia is not a
mem Cambodia’s 05 would put tors.9
scious on the ) substantive implementing l necessary in
infrastructures and analytical capacities required for accession negotiations; (iii) increasing demands by some WTO member, that require from acceding countries, in one way or another, a higher level of obligations and commitments than the level of obligations and commitments made by the original WTO members in the Uruguay Round, which thus affect the balance of their WTO rights and obligations.10
official Cambodia does not want only to be seen as “The Killing Fields”. Tindication that Cambodian policymakers see Cambodia’s accession to the WTO fulfilling broader strategCambodia as a trading nation.
2. External Realities: In addition to these fundamental realities regarding Ca situation, an important reality of the international trading regime needs to be
- The challenges of facing a quota-free world: In accordance wiAgreement on Textiles and Clothing, the special regime governing trade in garman end on 1 January 2005. This regime allowed countries to apply quantitative rimports of clothing. Accordingly, the garment exports of almost all countrisubject to quotas in major world markets, in particular the United States. Camboexports have also been subject to quotas. On 1 January 2005, however, WTO obliged to eliminate quotas on clothing imports from other WTO members. Aaccess to world markets will be unrestrained for WTO members. f I
ber on that date, countries will be free to continue to impose quotas onexports, and will undoubtedly do so. Thus, failure to join WTO by 1 January 20Cambodia’s garment industry at a significant disadvantage relative to its competi
- The challenges of the accession process: Cambodia was also condifficulties faced by countries seeking accession, particularly arisen from: (ipolicy issues relating to adjustments in their development strategies and instruments, economic and social goals, and legislative reforms - which are alcompliance with the WTO Agreements; (ii) insufficient knowledge, experience, resources,
9 For a full understanding of the Cambodian garment industry strategy see Ministry of Commerce (2002b). Available also on <http://www.moc.gov.kh.>
10 Based on recent accession experience, Tariffs, Agriculture, and Rules and Disciplines are the areas in which members typically request that acceding countries make more far reaching commitments than those made by many existing members at similar levels of development.
Tariffs. Acceding countries are requested to bind all tariffs, whereas many developing countries continue to have a large portion of their tariff schedule outside agriculture unbound. Ceiling bindings have been accepted, but there is pressure to bind close to applied rates.
Agriculture. In addition to binding the tariff schedule, commitments are expected on aggregate measures of support (AMS), export subsidies, and the like. Since many acceding countries did not provide substantial support to agriculture but, rather, penalized it, the requests they face for reductions in AMS may not be warranted, and in any case meaningful calculation of commitments in this area is subject to serious statistical difficulties.
Rules and Disciplines. Acceding countries are typically requested to meet all commitments at entry with regard to, for example, TRIPS, customs valuation, standards, and SPS regulations, without time limits such as those available to existing members at similar levels of development, and regardless of whether institutional weaknesses make it difficult for them to fulfil such commitments. Such weaknesses relate broadly to the operations of a market economy; it takes time to establish the institutional infrastructure that would enable the applicants to discharge their responsibilities properly under the WTO agreements. When such weaknesses are brought out in negotiations, members suggest that the applicant seek technical
15
B. Formulating an Accession Strategy
ating team to idelines were tent with the
l trade is playing, and can continue to play, in Cambodia’s economic development. The eight main building blocks around which the
d for a rapid t industry, as Cambodia’s uaranteed by neral Council id accession
ge number of ey also knew
that the decision by the General Council would allow Cambodia to do part of this after re dependent
y to adjust to tion.
ly 2003. The
with qualified human resources diverted and reshuffled, financial resources reallocated, and poli
pidly, and no
n, Cambodia reduced the harged a duty er tariff rates
ad previously been applied. The Cambodian policy-makers were persuaded that these redu to the overall
protection in inally, tariffs
contributed an important part of the budget revenue. For all of these reasons, the negotiators were determined during the WTO negotiations to avoid any commitment to reduce tariffs further.
3. Export orientation: In order to be competitive on world markets, an export industry needs to have access to raw materials and intermediate inputs at world market prices. Cambodia has always recognized this, and, under the Law on Investment, has provided export
For Cambodia, the considerations outlined above have allowed the WTO negotiformulate some broad negotiations guidelines with WTO members. These gudesigned to ensure that the country negotiating strategy at WTO was fully consisview of the important role that internationa
Cambodian strategy was constructed were as follows.
1. Timing: Cambodia targeted a rapid accession to WTO. The neeaccession was driven mainly by the 1 January 2005 deadline facing the garmenexplained above. But the Cambodian negotiators also believed that it was ininterests to achieve quickly the assured access to all export markets that is gWTO membership. Moreover, they believed that the decision by the WTO Geon the accession of Least Developed Countries, described below, made a rapfeasible. They understood that Cambodia would need to draft and adopt a larlaws so as to create a trade regime that was consistent with WTO rules. But th
accession. Further, Cambodia had not developed any domestic industries that wefor their survival on high tariff protection. Allowing time for domestic industrany tariff reductions that might be required by accession was thus not a considera
Another consideration was the holding of the national general elections of Junegotiators were of the belief that momentum would be lost during and after the elections,
cy focus possibly misplaced.
In short, timing wise, Cambodia saw a number of reasons for going forward raarguments in favour of a slower accession.
2. Tariff concessions: Shortly before negotiations with WTO begahad undertaken a reform of its tariffs on imports of goods. This reform hadnumber of tariff “bands” from 12 to 4, so that after the reform all goods were cof either 0, 7, 15, or 35 per cent. In the process, Cambodia eliminated some highthat h
ctions and simplifications had met the country’s needs and also contributedliberalization of world trade. They were also mindful of the need to keep someplace for the Cambodian small and medium sized enterprises and agriculture. F
assistance, available from a variety of bilateral and multilateral donors, and that it present a detailed plan regarding the particular aspects of the relevant WTO provisions in which weaknesses exist and how and within what time period it proposes to remedy them.
16
ds, and raw le with WTO
was essential port oriented
were thus determined to maintain this capacity to offer such advantages, despite WT
vestment: Asvestment, in
herefore, the central activeness of this.
o produce in an be certain gher than the
g from other because most ariff lines, a on his export rtain that his
r any kind of quantitative restraint in his export markets easons, WTO Cambodia for AN member
lace the legal een actively
onal Assembly the laws necessary for a ust have laws ted to trade. elcomed the proper legal
s to investors sinesses. This infrastructure
includes services such as telecommunications, transportation, banking, accounting and auditing. The investment environment is also enhanced by the availability of an educated and trained labour force. Cambodia saw the WTO accession negotiations on services as an opportunity to encourage foreign investment in key services infrastructure, and therefore as an opportunity to enhance the country’s overall environment for business. Likewise, foreign participation in adult education and training would help develop the skilled work force that is necessary to attract skill-based industries and to allow for increased wages.
industries with duty-free access to imported capital and intermediate goomaterials. The way in which Cambodia does this, however, is not fully compatibrules. Nevertheless, the negotiators understood that maintaining these privilegesto the Cambodian garment industry, and to their future ability to attract other exindustries. They
O rules.
4. Improving the investment climate and fostering foreign direct inmentioned earlier, increased exports and jobs will depend on increased inparticular foreign direct investment. The negotiators understood, timportance of using the accession to WTO as a means to increase the attrCambodia as a place to invest.11 WTO membership offers three main ways to do
First, WTO membership provides certain assurances for investors wishing tCambodia for export to other markets. This is because a Cambodian exporter cthat his goods will be charged a rate of duty in the importing country that is no hirate charged by the importing country on identical or similar goods cominexporting countries. This is called Most Favoured Nation Treatment. Moreover,WTO members have “bound” (i.e. set legal ceilings on) most of their tCambodian exporter will know the maximum legal duty that can be chargedgood in any WTO member country. Further, a Cambodian exporter can be ceexports will not be subject to quotas o(for garments, this will be true only after January 2005). For all of these rmembership reduces the uncertainty facing an investor who wants to produce in export to other markets. (Note, for investors who wish to export to other ASEcountries, the relevant ASEAN norms apply.)
Second, WTO membership requires an intensified effort by Cambodia to put in pframework required by business. The Royal Government has for some time bengaged in developing and submitting to the Natimodern, liberal, and business-friendly legal environment. A member of WTO mthat embody WTO rules concerning international trade and activities relaCambodia understood from the outset that this would be necessary, and wrequirement as a way of ordering and accelerating its efforts to create a framework for business that fully reflects international norms.
Third, Cambodia understood from the outset that the country’s attractivenesdepends on the availability of the infrastructure required by bu 12
11 See Siphana Sok. (2001a). 12 See World Bank and the Public-Private Infrastructure Advisory Facility. (2002).
17
ould advance re aware that the scope of
mitments to ress services
in a particular services sector would help move them toward their broader development obje es, ts.
et access and as well as ecial rules in ese rules are ncreased, and
ounts. They oducer across ded by other
Cambodia. As mentioned above, however, they understood that we would need to maintain mini l, b ht to provide
competitive. y.
ts Ministerial st Developed ion of patents implementing g the right to
ambodia, since it has icu d other major
o fight these t importance at the WTO
gotiations.
In view of the ast-developed xible in the special and arding least-
The problems were acknowledged by the WTO members in the Doha Ministerial Declaration. Accordingly, they agreed to work to facilitate and accelerate negotiation with acceding LDCs and reaffirmed the commitments undertaken in the Programme of Action for the Least Developed Countries for the Decade 2001 -2020 agreed at the Third United Nations Conference on the Least Developed Countries held in Brussels in May 2001. In the Programme of Action, development partners of LDCs agreed to facilitate the accession process of non-members "on the basis of terms that take into account their stage of
For these reasons, the negotiators understood that their negotiations on services cthe country’s overall strategy of improving the business environment. They wethe decision of the WTO General Council called for members to limit negotiations on services. However, rather than seeking to limit Cambodia’s comthe bare minimum referred to by the General Council, they preferred to addissues on a case-by-case basis, and when they were convinced that agreeing to liberalization
ctiv they were prepared to engage in negotiations and take on commitmen
5. Retaining policy options and flexibility on agriculture: Markimprovements in the investment environment will benefit agriculture manufacturing and services. The negotiators knew, however, that there were spWTO regarding the way governments can support their agricultural sector. Thdesigned to insure that support measures that distort trade are not introduced or ithat any existing measures that distort trade are gradually reduced to minimal ambelieve that Cambodia is a competitive or potentially competitive agricultural pra broad range of agricultural products. Rules that reduce the support provicountries to their less efficient producers will therefore ultimately be to the benefit of
ma ut adequate, tariff protection of agricultural products, and retain the rigsupport to domestic producers that genuinely assists them in becoming more Achieving these ends was an important element of Cambodia’s accession strateg
6. Securing LDC benefits with regard to public health: At iConference in Doha in 2001, WTO adopted a Declaration granting LeaCountries certain special privileges as regards WTO requirements for the protecton pharmaceutical products. The objective of the Declaration, and subsequent decisions, was to allow LDCs to have access to cheap drug products, includinimport cheap pharmaceuticals. This provision is particularly important for C
diff lt public health issues as regards HIV AIDS, tuberculosis, malaria, andiseases. At the same time, the country is dependent on imports of drugs tdiseases, and the financial resources available are limited. It is therefore of greathat it should have access to medicines at the lowest possible prices. Ensuring thDeclaration applied fully to Cambodia was thus an important objective of the ne
7. Securing maximum benefits special and differential treatment: difficulties Cambodia was facing, and bearing in mind its status as a leeconomy, Cambodia called on members of the Working Party to be flenegotiations to establish Cambodia's WTO commitments and to extend differential treatment as foreseen in the provisions of the WTO Agreements regdeveloped countries (LDCs).
18
d differential treatment" and to "supportefforts of LDCs seeking to accede" in various ways, including:
(i nd tailored to O procedural
ns on special
(i financial and te, in seeking es in keeping
(i at are commensurate
(v tinuing to provide adequate and predictable assistance to LDCs for their ance;f accession to
In the case of LDCs, the Doha Ministerial conference pledged, in paragraph 42 of the Doha ins a priority ith acceding
TO agreed to:
d accelerated cluding these under:
- Market access: 1) WTO Members shall exercise restraint in seeking concessionsand m e
embers; 2) ents on trade
nd trade
: 1) SDT, as set out in the Multilateral Trade nts, shall be tive Protocols pecific WTO d obligations, development,
Another important breakthrough came about on 10 December 2002 when the WTO General Council, in pursuance of the Doha mandate, and in an attempt to mainstream the Brussels Programme of Action into WTO work and actions adopted Decision No. WT/L/508 on the Accession of LDCs. In the decision, Members agreed that they would be bound by certain restraints in dealing with LDCs seeking to join WTO. In particular, they agreed that they: 1) would not seek sharp reductions in tariff levels; 2) would require concessions on relatively
development and the basic principles of special an
) Ensuring that the accession process is more effective and less onerous atheir specific economic conditions, inter alia, by streamlining WTrequirements;
(ii) Providing for automatic eligibility of all acceding LDCs for all provisioand differential treatment in existing WTO agreements;
ii) In view of LDCs' special economic situation and their development, trade needs, WTO members should exercise restraint, where appropriaconcessions in the negotiations on market access for goods and servicwith the letter and spirit of the provisions of the Ministerial Decision on Measures in Favour of the Least Developed Countries;
v) Seeking from LDCs in the accession stage only commitments thwith their level of development;
) Conaccession process, including technical, financial or other forms of assist
(vi) Accelerating the accession process for LDCs that are in the process oWTO.
Declaration, to facilitate LDC accession to the WTO, “Accession of LDCs remafor the Membership. We agree to work to facilitate and accelerate negotiations wLDCs”. Implementing the Ministerial decision, the General Council of the W
- Negotiations for the accession of LDCs to the WTO, be facilitated anthrough simplified and streamlined accession procedures, with a view to connegotiations as quickly as possible, in accordance with the guidelines set out here
co mitments on trade in goods and services from acceding LDCs, taking into account thlevels of concessions and commitments undertaken by existing WTO LDC Macceding LDCs shall offer access through reasonable concessions and commitmin goods and services commensurate with their individual development, financial aneeds.
- Special and Differential TreatmentAgreements, Ministerial Decisions, and other relevant WTO legal instrumeapplicable to all acceding LDCs, from the date of entry into force of their respecof Accession; 2) transitional periods/transitional arrangements foreseen under sAgreements, to enable acceding LDCs to effectively implement commitments anshall be granted in accession negotiations taking into account individual financial and trade needs.
19
its laws and presented a
e in the years immediately following accession,
substantially rs in seeking
tments on trade in goods and services from acceding LDCs, and nt provisions
These, then, were the main considerations that guided the Cambodian negotiators throughout
is no official e Marrakech
member may e Ministerial s majority of criteria nor
tions between the any concrete be used for
ed over time ve to do.
ies and three aration of a
s in detail the onal trade; (b)
phase; and (c) the negotiation phase. The last two phases, while conceptually separate, tend to overlap in practice. Throughout, the applicant is faced with meeting WTO requirements and provisions, as well as demands by existing members. With very few exceptions, negotiation is in one direction only: the applicant is asked to demonstrate how it intends to meet the existing WTO provisions-it cannot change them. Existing members can ask the applicant to reduce the level of protection in its markets, but the reverse does not usually occur.
few services sectors; and 3) would allow an LDC to join WTO before all regulations were in full compliance with WTO rules, provided that the LDCdetailed work-plan for achieving compliancand committed itself to executing fully that program.
It was expected that the decision (which is also called "guidelines") wouldfacilitate LDC accessions, particularly by exercising restraint on WTO membeconcessions and commiallowing acceding LDCs to benefit from the special and differential treatmeunder the WTO Agreements.
their negotiations with WTO Members.13
SECTION 2: THE PROCESS OF ACCESSION
The process of accession to the WTO is demanding and lengthy.14 There description of what a country has to do in order to join WTO. Article XII of thAgreement establishing the WTO states simply that a country that is not a become a member “on terms to be agreed between it and the WTO. ThConference shall approve the agreement on the terms of accession by a two-thirdthe Members of the WTO.” Article XII does not stipulate any membershipprovide guidance on the 'terms to be agreed', these being left to the negotiaWTO Members and the Candidate. Furthermore, Article XII does not identify steps, nor does it provide any advice when it comes to the procedures to negotiating the terms of accession.15 Nonetheless, certain practices have evolvthat provided reasonable guidance as regards to what an acceding country will ha
The accession process can be divided into an introductory phase of formalitsubstantive phases. The three substantive phases are (a) the applicant's prepmemorandum on the foreign trade regime (the "memorandum"), which describecountry's policies and institutions that have a bearing on the conduct of internatithe members' fact finding
13 The section draws mostly from the presentation made by the Minister of Commerce at the National Assembly during the ratification of the Protocol of Accession on September 14, 2003.
14 See WTO (1999). 15 By early December 2004, more than 20 new members had joined the WTO since its establishment, bringing
membership to 148, including two LDCs (Cambodia and Nepal) and three separate customs territories (Taiwan, Penghu, Kinmen and Matsu [Chinese Taipei], Hong Kong [China], and Macau).
20
eas related to “bindings” or egotiate with t; (iii) it must an effect on
f an acceding l part of the itional MFN egotiation, of d result in a
specific commitments formatted appropriately in a table and annexed to the Accession. Finally, there is a “sub-tract”, which is concerned with plurilateral
ith interested
has provided e with WTO schedules of
along with the corresponding n, is prepared by the secretariat for
neral Council
ts own to the with France. accession to
as Cambodia ies of GATT ievement of contracting
y of its trade regime and fewer new commitments than did the ordinary accession process of GATT Article XXXIII. Cambodia qualified for this route to accession, insofar as France did apply GATT rules to Cambodian trade while the country was under a protectorate, and duly informed the GATT of this fact upon Cambodia’s independence. Nonetheless, Cambodia made a very serious effort to accede to GATT on its own, following the more difficult approach of negotiating under GATT Article XXXIII. The country took this approach in order to avoid adopting the tariff commitments that France had already made in GATT negotiations. The
Basically, a country seeking to join WTO must take on commitments in four arthe functions spelled out above: (i) it must negotiate with members a set of maximum levels of tariffs that it will apply on its imports of goods; (ii) it must nmembers conditions for access by foreign services suppliers to its services markeagree to limitations on those forms of support to agriculture that haveinternational trade; and (iv) it must bring its laws and regulations governing international trade into conformity with WTO rules before it joins WTO.
These negotiations are carried out bilaterally with the main trading, partners ocountry. The list of concessions in a WTO format (a table) forms an IntegraProtocol of Accession, and the concessions should be extended on an uncondbasis to all other WTO members. Market access in the services track involves ncommitments on trade in services, which are also conducted bilaterally anschedule ofProtocol ofdiscussions on agricultural domestic support and export subsidies commitment wWTO member.
When these negotiations are in the process of being finalized and the applicantassurances that the legislation and institutions that would permit compliancprovisions are in place, a draft report on accession, including the consolidatedconcessions of agreed commitments on goods and services documents that together stipulate the terms of accessioconsideration by the working party.16 After approval by the working party, the report is forwarded to the General Council. Following a favourable decision by the Ge(usually a formality), the country is invited to sign a protocol of accession.
A. What are the specifics of Cambodia’s accession process?
As a matter of historical perspective, Cambodia came very close to acceding on iGeneral Agreement on Tariffs and Trade (GATT), due to its former relationshipThe country’s previous colonial status could have facilitated Cambodia’s GATT.17 Under the terms of Article XXVI:5(c) of GATT 1947 countries suchwere permitted a relatively easy route for entry into GATT. Former coloncontracting parties could acquire de facto GATT status upon their achindependence. A country could then convert this de facto status into full GATTparty status by succession, a process that involved much less stringent scrutin
16 These bilateral schedules of commitments on Goods and Services once reviewed in the Working Party will be multilateralized thereafter, that is, extended on a most-favoured-nation (MFN) basis to all WTO members. In this way, these became part of the multilateral treaty terms of the acceding country's membership in the WTO.
17 See VanGrasstek (2000).
21
rties over theril 6, 1962.18
ompleted the have been a
of the GATT,e still outside the system — had to meet the
more rigorous requirements of WTO accession.
B e tings
orking PartyWTO was
nd, like allok place atn Geneva,
raditionallyteral track.n of the
d economicand their
the WTOimately the
t Protocol ofTO. This
e basis of theby Cambodiaquestions andvery of the
arty’s report and the Protocoletailed termsparty usuallyemorandumnd answers
ing party is open to all members of the WTO. In the case of applications by large countries such as China or Russia, manycountries participate; in the case of smaller countries like Cambodia, the working party is usually made up only of the "Quad" (Canada, the European
country went so far as to finalize negotiations with the existing contracting paterms of its protocol of accession, which were formally concluded on ApAlthough the Geneva side of the process was concluded, Phnom Penh never cdomestic ratification procedures. Had Cambodia did so, the country couldfounding member of the WTO. Unfortunately, the option expired with the endand Cambodia — like all other countries that ar
. Working Party M e
The first meeting of the Won Cambodia’s Accession toheld in May 2001, asubsequent meetings, toWTO Headquarters iSwitzerland. This track is tcalled the systemic or multilaIt provides for examinatioforeign trade regime ansystem of Cambodiacompatibility withAgreements - and ultpossible terms of a drafAccession to the Wexamination is made on thMemorandum submittedand subsequent rounds ofanswers as well as deliWorking Pof Accession setting out dof accession. The workingdoes not meet until the mand the initial questions ahave been distributed.
Membership in the work
18 See the “Protocol for the Accession of Cambodia,” in General Agreement on Tariffs and Trade, BasicInstruments and Selected Documents Eleventh Supplement (Geneva, Switzerland: GATT, 1963), pages 12-16. Note that this document does not include the annexes to the protocol (which would consist primarily ofthe tariff concessions that Cambodia made in the negotiations over its accession).
Status of Cambodia’s Acc ses ionWorking Party
1. Application Received 8 December 19942. Working Party Established
Chairperson: Mr. A. Meloni (Italy)21 December 1994
3. Memorandum 22 June 19994. Questions and Replies 4 January 20015. Meetings of the Working Party 22 May 2001
14 February 200214 November 200222 July 2003
6. Documentation (other)(a) Additional Questions & Replies 11 December 2001
29 July 20023 March 2003
(b) Agriculture (WT/ACC/4) 11 December 200126 July 2002
(c) Services (WT/ACC/5) 3 March 2003(d) SPS/TBT (WT/ACC/8) 11 December 2001
11 December 20013 March 2003
(e) TRIPS (WT/ACC/9) 11 December 200131 July 2002 3 March 2003
(f) Legislative Action Plan 11 December 200129 July 2002
7. Negotiations on Goods(a) Tariff Offers 11 December 2001
29 July 2002 3 March 200322 July 2003
(b) Draft Goods Schedule 8. Negotiations on Services
Draft Services Schedule 11 December 200129 July 2002 3 March 2003 18 July 2003
9. Factual Summary 30 October 200210. Draft Working Party Report 24 March 2003
19 June 2003 22 July 2003
22
ing countries orking Party tions, and to
WTO rules. fully the steps that it still had to take
Cambodia’s estions.20 As for additional the Working he question - l weaknesses ency between phase are also ions taken to e next round.
the WTO secretariat had drawn up in the areas of services, import licensing, intellectual ry and phyto-
epare offers of the concessions it
hey were sent
ebruary 2002 om acceding . This second held in 2002 an Opening
gress made by the Royal Government since the last Working Party.21 Cambodia emphasized the importance of this 2nd Working Party as the first Working Party of an LDC post-Doha 4th WTO Ministerial Conference. The Doha Ministerial Declaration (DMD) made specific reference to Para 42 where there are provisions highlighting the need to fast track and facilitate the accession of LDCs to the WTO. Cambodia reiterated to the Working Party that its accession is a test of the sincerity and the intention of developed countries with regard the DMD.
Union, Japan, and the United States) plus a number of other members, includthat are significant trading partners of the applicant.19 The purpose of the Wmeeting was to continue the examination of Cambodia’s trade laws and regulaallow Members to see the extent to which these laws were consistent withAnother purpose was to help Cambodia understand moreto bring its laws and regulations into compliance with WTO rules.
First Working Party: The first meeting consisted of an examination ofmemorandum, and of the answers that Cambodia had provided to Members’ quis always the case in all accessions, this examination gave rise to requests information. Cambodia was also requested to submit for the consideration of Party members relevant legislation on a variety of issues covered by the WTO. Tand- answer process is very time consuming. Cambodia's initial institutionaresulted in delays of nearly one year while the Government ascertained consistexisting legislation and regulations and WTO requirements. Delays during this frequent. If a member feels that the answers submitted to a question or the actremedy an inconsistency are inadequate, it simply resubmits the question for thMoreover Cambodia was requested to provide replies to standard detailed questionnaires that
property protection, support to agriculture, technical barriers to trade and sanitasanitary regulations. Cambodia was also requested to prwould be prepared to make on import tariffs and services.
Once all these materials had been prepared and approved by the Government, tto WTO and the stage was set for the second Working Party meeting.
Second Working Party: The Second Working Party meeting were held on 14 Fand attended by 22 Cambodian delegates, WTO members and observers frcountries and international organizations as well as staff of the WTO Secretariatmeeting established the format that would be used in all the subsequent meetingsand 2003. The head of the Cambodian Delegation was requested to makeStatement, which focused on the effort and pro
19 Working Parties Members included: Australia, Canada, China, EU, India, Japan, Rep. Korea, Malaysia, New Zealand, Panama, Singapore, Chinese Taipei, Thailand, United States and Venezuela Argentina, Bangladesh, Dijouti, Guinee.
20 The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the Foreign Trade Regime of Cambodia (document WT/ACC/KHM/2), the questions submitted by Members on the foreign trade regime of Cambodia, together with the replies thereto, and other information provided by the authorities of Cambodia (WT/ACC/KHM/3; WT/ACC/KHM/6; WT/ACC/KHM/7 and Revisions 1 and 2; WT/ACC/KHM/8; WT/ACC/KHM/9; WT/ACC/KHM/10 and Revisions 1 and 2; WT/ACC/KHM/12; WT/ACC/KHM/13 and Revision 1; WT/ACC/KHM/14 and Revision 1; WT/ACC/KHM/15 and Revision 1; WT/ACC/KHM/16 and Revision 1; WT/ACC/KHM/17 and Revision 1; WT/ACC/KHM/18; and WT/ACC/KHM/20), including the legislative texts and other documentation listed in Annex I.
21 See Annex V for a full length of an opening statement made by Cambodia.
23
14 November orking Party process has
time on the
terms of entry. The WTO Secretariat has drafted a Factual Summary which can be used as a
arty meeting and focus on ssion Report. and services, nal report, the gotiations. In TO Members
the meeting, participants agreed on rmal meeting schedules of
ia and WTO embership by
tries, of three
t of the WTO Working Party, in which all of the stency with the WTO
ffs. This also
C. Government institutional set up and mechanisms for policy coordination:
The Royal Government was aware that the complex task of preparing the memorandum and of managing the negotiations that would follow required new and special governmental machinery. The Government instructed the Ministry of Commerce to act as the focal point for
Third Working Party: Cambodia held its third Working Party meeting on 2002.22 The Chairman of the Working Party expressed that the outcome of this Wwill determine the next stage of the meeting. He felt that Cambodia accessionreached a critical stage as WTO members have begun focusing for the firstelements of a draft working party report and, thereby, concentrated on agreeing Cambodia’s
useful reference and can lead to the early drafting of the Accession Report.23
Fourth Working Party: On 16 April 2003, Cambodia held its fourth Working Pthe aim of which was to review the state of play of bilateral negotiations substantive discussions of a first version of the Working Party’s draft AcceSupporting documents submitted by Cambodia included revised offers of goodsaction plans, and the legislative program. By considering the first draft of its fichairman stated that the working party has moved into the final phase of the nethe concluding remarks, the Working Party Chairman has suggested that Wsubmit or propose commitment paragraphs. At the end ofthe July target for completing the Working Party’s Accession Report. An infowas proposed in June 2003 to consider a new draft, possibly together with draftcommitments for access to Cambodia’s goods and services markets.
Fifth Working Party: On 22 July 2003 Cambodia held its fifth and last Working Party where the Cambodia Working Party Accession Report was completed.24 Cambodmembers in the Working Party stated their optimism to complete Cambodia’s mthe Fifth WTO Ministerial Conference in Cancun, 10–14 September 2003.
The accession package for Cambodia consisted, as for any other acceding counajor parts:25m
(i) Protocol of Accession and the Repor"systemic" commitments and obligations (i.e. those reflecting consirules) are undertaken with reference to the WTO rules and disciplines;
(ii) Schedule of concessions on market access in goods, namely bound tariincludes data on domestic support measures export subsidies in agriculture;
(iii) Schedule of specific commitments in services.
22 Working Party members: Australia, Canada, China, European Union and member states, India , Japan, Korea, Republic of, Malaysia, New Zealand, Singapore, Chinese Taipei, Thailand, United States, Venezuela.
23 See WTO News: 2002, Cambodia membership negotiations, Cambodia aims for membership by Cancún meeting, 14 November 2002. Available also on <http://www.wto.org.>
24 Working party members: Australia, Canada, China, EU, India , Japan, Rep. Korea, Malaysia, New Zealand, Panama, Singapore, Chinese Taipei, Thailand, United States, Venezuela.
25 See WTO News: 2002, Cambodia membership negotiations, fifth Working Party meeting, Working Party completes Cambodia’s membership negotiation, 22 July 2003. Available also on <http://www.wto.org.>
24
in September as chaired by e policy level
activities at cession; (ii)
e necessary n; (iv) define the governments priorities related to foreign trade policies; (v)
ensure coordination among Ministries; (vi) report to the Prime Minister on issues related to
necessity and icials in the task force is
rised of officials – both at the wide ranging
nt mission in
g Committee to guide and strategy. The
the MoC and is composed of high level policy makers at the vice inister and under secretary of state level as nking and
er at the vice minister level (commerce) who nals recruited
l Council for with poverty
composed of ic and line ministries. The work of the CSD is central in steering
the preparation of the National Poverty Reduction Strategy (NPRS), and the monitoring of sectoral and
assessment of ocess and the er providing
ge number of y integrating in the NPRS
ade on the linkages between the trade sector and poverty alleviation in Cambodia, for example the need to focus on labour absorption, and facilitating income and employment generation for the rural poor.
The combination of the three mechanisms (WTO task force to deliver technical results and the IFSC to deliver on the necessary TA support and the NPRS for the overall overarching poverty reduction strategy) was critical, and in fact, has enabled the record time accession of Cambodia in the WTO.
activities related to WTO accession. In addition, the Government established 1997 an Inter-Ministerial Coordinating Committee on WTO Accession that wthe Minister of Commerce. This Committee was made up of 15 members at thand three officials from each of the 23 ministries and agencies involved in WTOthe working level. Its role was to (i) coordinate policy issues related to WTO acelaborate guidelines to implement WTO Agreements; (iii) prepare thdocumentatio
WTO accession.
As the negotiation was about to get started, the Prime Minister has felt the urgency to appoint a large think tank comprising of over 100 senior offgovernment to assist in matters related to Cambodia's accession to the WTO. Theunder the chairmanship of the Minister of Commerce is comppolitical and technical level – and professional negotiators with competence on issues. Moreover, Cambodia has also deemed essential to open a permaneGeneva to effectively promote and protect its economic and trade interests. Another coordination mechanism is the high-level Inter-Ministerial Steerin(IFSC) to coordinate trade related TA under the IF. The mandate of the IFSC ismonitor the formulation and implementation of a “mainstreamed” trade sector ISFC is also chaired bym well as representatives of the baprivate sector. The IF Focal Point is a policy makis supported by an active IF national core team composed of eight professiomostly from within the MoC.
D. Other Intra-governmental policy co-ordination.
On the larger scale, Cambodia has another mechanism called the inter-ministeriaSocial Development (CSD). The CSD is the Government’s agency mandated focused policy and programme design, and monitoring of implementation. It isrepresentatives from econom
process, inputs, intermediary outputs and outcomes in close co-ordination withlocal level monitoring systems. The work of the CSD includes ex-ante impact major policy reforms (macroeconomics, sectoral and budgetary). The WTO prIF work were closely co-ordinated with the work of the CSD with the formcritical policy-level sector inputs.
For its part, the NPRS process was highly participatory and addressed a larsectoral issues. Trade was successfully integrated in the NPRS. This took place bthe trade action plan matrix, which identifies trade objectives and priorities, action plan. Considerations were m
25
re team is of e demanding ize additional load. Already nstantly sent the shortage
capacity has as acted very ss. Moreover antive policy
MoC core team has even expanded their the various
committee or alue of their
on two basic nerships with ultations with
formulate comprehensive and the WTO negotiations. During the WTO process
s to the task force for decision thus lessening the the MoC lied
t is a legally t sets out not ny aspects of
regulation, legislation, judicial process and investment conditions within the new member.
d disciplines s members. It he markets of
rances of its ntation, over
les and disciplines and predictable terms of market access and investment.
As such, before starting the negotiations, Cambodia needed to consolidate its positions and lay out clear boundaries beyond which no further concessions are possible. Accession to the WTO should not take place at any price, but on the basis of reasonable terms and conditions. In this context, Cambodia needed to be aware of, and fully understand, the implications, both short- and long-term, of their commitments, obligations and concessions on the national economic development.
Core team building within the WTO Task Force: The issue of building of a cogreat importance prior to engaging the WTO accession process. The resourcnegotiation process will inevitably impose pressure on the Government to mobilspecialized staff and local consultants to assist it in coping with increasing workthe existing resources were strained by the fact that the few key officials were coabroad to attend international conferences or training seminars, thus accentuatingof staff and senior policy makers to push domestic agenda. This specializedserved as a strong backbone for institutional building within the MoC and hefficiently both as local support during, and as follow up for, the accession proceit has enabled the MoC policy makers to free up their time to focus on substdiscourse and policy making. Over time, the activities to undertake regular dissemination and awareness campaign tostakeholders both at the national and provincial level.
Sustaining the dynamism of the WTO Task Force and the IFSC: A steering task force is effective only to the extent that its members feel the relevance and vcontribution into the process. Cambodia’s best practices were practically basedprinciples of regular engagement and pro-activeness. Forging effective partother government agencies and the private sector, accompanied by frequent consall economic actors, has ensured that the MoC couldconsolidated positions and arguments during the MoC could defer some sensitive issuepotential conflicts with other government agencies. In retrospect the strength of more in its ability to act as catalyst and coordinator for the WTO team.
E. Impact of studies to the accession process
The WTO is not a club that governments can join simply by paying a fee. Ibinding contract between all existing members and the newcomer. The contracmerely the conditions of trade between the parties but understandings on ma
The contract offers Cambodia all the advantages and security of the rules anwhich make up the WTO’s legal system and which govern the actions of all itoffers firm and predictable treatment for Cambodia’s products and services in tall other members.
For the existing members of the WTO, Cambodia’s contract provides assucontinued commitment to economic and other reform, the adequate implemetime, of all WTO ru
26
rts in policy cio-Economic Government ), the Interim
, the Pro-Poor Trade Sector Strategy27, and lastly the diagnostic trade integration study
ut of the hree countries me under the bal trade and genda or “to
development plans and poverty reduction strategies of the beneficiary countries, to ensure that trade policy and Trade-Related Capacity
ned, and that
etween trade trade reform olicy agenda tcomes of the
de-related capacity building and e country’s overall development strategy. This
h the other 5 c ag e of the first countri
More s following:) rformance in
icplications of past surveys
(ii) otably WTO ere made by
the resource constraints faced by a . An analysis
cope for high protection while not much established industry depends on this protection; the question whether tariff could be simplified without sacrificing revenue; and the implications of tariff binding. The impact of trade reform (notably tariff reductions) was assessed using household survey data.
(iii) A review of trade facilitation undertaken in close consultation with the resident IMF customs advisor. The study surveyed “behind the border” constraints finding
In recent years Cambodia has, to a large extent, benefited from a sustained effomaking as translated in a series of policy documents such as: the SoDevelopment Plan (SEDP I (1996-2000) and SEDP II (2001-2005),26 the RoyalPlatform for the Second Term 1998-2003, the Policy Framework Paper (PFPPRSP(DTIS).
Outline of “Cambodia: Integration and Competitiveness Study”: The carrying oDTIS came about following the selection of Cambodia in May 2001 as one of t– the other two being Madagascar and Mauritania – to implement a Pilot Scherevitalized Integrated Framework in order to enhance LDCs’ participation in gloinvestment. The core feature of this new approach was to embed a trade amainstream trade” into overall national economic
Building (TRCB) are coherent with the trade policy aims of the country concerthey are prioritized with other development assistance needs.
The DTIS looked at a number of issues, including establishing the link bdevelopment on the one hand and poverty reduction on the other, the impact ofon economic growth and development in the country, the complementary pnecessary to support successful trade reform, and market access issues. The ouDTIS provided the basis for identification of prioritized tratechnical assistance needs that are linked to the cisxer e was undertaken in country, with the World Bank as lead agency, witore encies, the IMF, ITC, UNCTAD, UNDP and WTO. Cambodia was on
es to undertake and complete a diagnostic trade integration study.
pecifically the DTIS provided for the(i A review and analysis of the country's growth and integration pe
historical and international perspective and a review of the macroeconomenvironment covering issues such as dollarization and the imminimum wages specified in dollars based on analysis and (IMF/UNDP/Asia Development Bank).
An assessment of current trade regime and trade policy reform, naccession aspect, including legal obligations and other compliances, wUNCTAD and WTO. The study highlighted small country like Cambodia to comply with the WTO requirementsof the existing cascade tariff structure raised issues such as the s
26 The documents are available also at <http://www.moc.gov.kh.> 27 The documents are available also at <http://www.moc.gov.kh.>
27
dministration highlighted as priorities for the country with both policy
(iv) entrepreneurs, arket access.
ents and associated costs (notably satisfying rules of origin and product standard requirements) were highlighted, with accompanying
) tract with the
(vi) A sectoral analysis focused on what must be done to strengthen and develop a d agriculture,
ork and has sectoral sub-ain Analysis, ; and the Development mpetitiveness , Diversified
trategy; (iv) EU’s Assessment of the Agro-Industrial Situation in Cambodia; (v) Japan’s Study on
Study on the in Cambodia; 1: Matrix of
ating team as ing Cambodia
clear policy ely: (i) the needs to clearly define its economic and integration strategies
ii) in its bilateral negotiations with nduly compromised the long-term
f the process eds to clearly st accession
The systematic translation into Khmer of key trade related documents has provided for additional opportunities to strengthen the partnership framework and allow for informed dialogue with the larger Khmer audience. Available documents on trade in Khmer and English have been collected and provided to MoC Provincial offices as a starting point for a local information resource. The MoC has translated selected trade related documents and disseminated them through inter-ministerial workshops including sensibilization missions to
transport costs a significant deterrent. Improvements to customs aand trade facilitation wereand assistance recommendations.
For the assessment of competitiveness of Cambodian exporters and a survey of 100 firms was conducted covering competitiveness and mMarket access impedim
assistance recommendations.
(v A review of the investment climate was conducted under separate congovernment, involving extensive stakeholder discussions.
number of product-sectors for exports, including: rice, diversifiehandicrafts, fisheries, and garments, tourism, and labor services.
DTIS as a framework: The DTIS has been instrumental in providing the framewacted as a catalyst for the carrying out of many strategic development plans andstrategies initiatives in Cambodia, to name a few: (i) the World Bank’s Value Chthe Investment Climate, the Private Sector Development StrategyProvincial/Regional Diagnostic Trade and Integration Study; (ii) the Asian Bank’s Private Sector Assessment, SME development, and the Garment CoStudy; (iii) the ITC’s Export-led Poverty Reduction Programme (EPRP)Agriculture and Agro-Processing Supply Capacity Study; and the E-Trade Bridge S
Regional Development of the Phnom Penh – Sihanoukville Growth Corridor; Improvement of Marketing System and Post-Harvest Quality Control of Rice and the Feasibility study on the Establishments of a Paddy Market; (See AnnexComprehensive Trade Related Initiatives).
Taken as a package, these studies were extremely helpful to the WTO negotithey projected a larger holistic view of the various issues and opportunities facin the WTO accession process. Specifically they offered the team with considerations, namand policies and their compliance with WTO principles; (WTO Member States on market access, the need not to uinterests of the country; (iii) the special attention to be given to the continuation orelated to the development of relevant legislation after accession; and (iv) the nedefine the requirements for technical assistance during the pre and poimplementation period.
F. Other supporting documentation and materials developed
28
ents; ration; Trade
rm; Commercial and IPR Laws; Trade capacity building and Trade support
to keep all O accession
e IF process in Cambodia. A Web-site was established at and managed by the MoC core team where information on policies, trade issues, laws,
THE WTO ACCESSION PROCESS.
keholders
ational trade orting plan of
stakeholders: business sector actors, development partners, and civil society. To achieve such support requires a process of
ation process e full measure
ainstreaming conclusion of rams into the
one of the most daring and pioneering approaches to nment have launched active public awareness
campaigns about the WTO, its agreements, the accession and implications of membership. In f government l factor for a
B. Government and private sector partnership
Cambodia is considered to have one of the most favourable policy approaches towards the private sector. It has a formalized procedure through which the Government and private sector are able to hold dialogue. Importantly, the private sector believes that action does result from
the provinces. Specific topics include, among others: selected GATT and WTO documImplementation of the IF in Cambodia; MDGs; ASEAN and Regional integpolicy refonetwork; etc.
The core team has also produced a series of trade research newsletters stakeholders, including private sector representatives, informed on the WTprocess and the progress of th
development studies are now hosted.
SECTION 3: PARTICIPATION OF NON-STATE ACTORS IN
A. Cambodia’s partnership mechanisms for consultation among key sta
Lessons from other developing countries suggest that implementation of a nsector strategy is unlikely to be very successful unless that strategy and its suppaction have received a large measure of support from other key
strategy formulation that engages these key partners directly into the formulitself. It is only in this manner that stakeholders can identify realistic goals, takof their respective commitments, and become true “owners” of the strategy.28
Had it not been for the clear framework the accelerated pace of the trade mprocess would not have been achieved, from the preparation for accession to the the accession to the WTO, to the integration of pro-poor trade policies and progNational Poverty Reduction Strategy.
Cambodia has probably developed policy dialogue consultations.29 The Gover
retrospect, effective cooperation among the executive and legislative branches oand effective public/private sector partnerships was perceived as an essentiasmooth accession process.
28 Cambodia’s trade policy framework was inspired largely by the works of the OECD. 29 The Cambodian Government has established since 2000 seven public/private sector consultative working
groups: (i) Banking & Finance Working Group, (ii) Export Processing & Trade Facilitation Working Group, (iii) Manufacturing & SME Working Group, (iv) Agriculture & Agro-business Working Group, (v) Energy & Infrastructure Working Group, (vi) Law, Tax & Good Governance Working Group, (vii) Tourism Working Group. So far seven public forums were held under the chairmanship of the Prime Minister in the past two years to discuss issues raised at the working groups.
29
m chaired by r the last four
Industry; (ii) Governance;
(vi) Energy and Infrastructure; and (vii)
six from the ortunities for
ed leadership dialogue involving the Government and the business sector. The me assistance
provement of cess was less m sector, the
essional services sector, there was no strong Government stances to be
king has been r Cambodia’s odian private
ry’s WTO membership. Without such understanding, it is very unlikely that they will be able to design business strategies that take
d to draw benefits from their country’s accession to uts from the n the basis of
s – especially eveloping countries. This includes the formal Consultative Group
udes working s (e.g. fiscal ing legal and e critical in
from a shared
Interestingly enough, during the conduct of the DTIS, the study team met with a wide range of donors and found that a significant number among them would be prepared to support more pointed efforts for business sector development provided that a solid framework exists to ensure overall coherence of individual donors’ interventions. Generally, the donor community in Cambodia would agree that trade sector development has not been at the top of its agenda until the advent of the WTO accession negotiation. For the most part, the emphasis since 1993 has been more on other pressing issues like: governance and government
their participation in the fora. At the peak is the Government–Private Sector Foruthe Prime Minister, seven sessions of which have been held in Phnom Penh oveyears. Seven business-government sectoral working groups have been formed to addresssector-specific problems on an ongoing basis, namely: (i) Agriculture and Agro-Tourism; (iii) Manufacturing and Distribution; (iv) Legislation, Taxation, and (v) Services including Banking and Finance; Processing for Export.
Each sectoral working group is run by a committee including ten members: business community and four from the government. The fora do provide oppWTO relatsecretariat of the Government Private Sector Forum is currently receiving sofrom the IFC.
While these working groups have produced significant effects on the overall imthe climate for private sector development their effect on the WTO accession prothan desirable. With the exception of the financial and banking sector, the tourisrice sub-sector, and the legal and accounting profprivate sector organizational structure capable of interacting effectively with theor to translate their sector-specific business interests into Cambodian policy defended in regional and international trade negotiations.
Therefore, enhancing Cambodia’s private sector participation in trade policymaone of the main objectives of Cambodia initial trade mainstreaming efforts. Afteaccession to the WTO, it is indeed important – if not urgent - that the Cambsector fully understands implications from their count
advantage of international trade rules anthe WTO. Likewise, the Cambodian Government, on its side, will need inpCambodian private sector, in order to be able to define Cambodian positions oclear interests and to participate substantially in the Doha Round.
C. Government and Donors’ Partnership
Cambodia has developed a fairly intensive system of consultations with donorwhen compared to other d(CG) meetings and the bi-annual post CG consultations. The CG process inclgroups involving donors and government and focusing on specific reform areareform, social sectors, public sector reforms, demobilization, governance includjudiciary reform, and natural resources management). These mechanisms arensuring that national stakeholders and donors at all times develop and work vision of objectives and goals.
30
and national ces, and food lf. In general, co-operating
d multilateral nstreaming of trade and improved donor coordination within
a country-owned poverty reduction framework. Since 2002, the CG has formally integrated
t role in the e pulse of the ncerns to the ociation will rking Group rm programs ling with the
strative reform, governance, fiscal reform, natural resource management, including land management, social sector,
owever, the epresentation
genda of the ntroduced in
r.” The MoC ther national
ch institutes and local civil society groups. Since then, an extensive awareness campaign with other civil society stakeholders was initiated, including the holding of international conferences, seminars and special condensed lectures within the national academic circles. These initial efforts are impressive and provide a basis for deepening the synergies thus far developed among trade sector stakeholders under the leadership of the MoC.30
institution building, macro-economic structural reform, consolidating peace security following the end of internal strife, removal of mines and other ordinansecurity. To a large extent, the business community has been left to fend for itsethe IF sponsored DTIS was well received by development partners, donors andagencies alike. They have since expressed a strong interest in the IF as a promising platformthat, if implemented well as a shared responsibility among donors, recipients anagencies alike, can promote mai
the trade dimension in its work agenda.
D. Government and partnership with civil society groups
Since the peace process in 1993, the civil society has played an importanmonitoring of poverty reduction. NGOs can prepare report card survey to feel thpublic on certain important issues, such as decentralization and convey the copolicy makers. In the future, trade unions, ethnic associations and farmers' assplay an important role in this monitoring process. For that purpose a Womechanism was established in 1999 at the CG meeting to follow up refoimplemented by the RGC and to allow donors to speak in one voice in deagovernment. At present, there are eight working groups on admini
demobilization, health and education; and government-donor partnership. Hperformance of the working groups was mixed, due to limited participation and rof the RGC is some of the WGs and the lack of coordination between groups.
Until the advent of the WTO negotiation, trade was not systematically on the acivil society groups. In fact Oxfam was the initiator of the trade issue when it i2002 its publication. “Rigged Rules and Double Standards: Make Trade Faioffered its sponsorship to launch the publication and engage the discourse with oresear
30 Events of importance during pre-accession period included, inter alia, the following: (i) International conference on "Globalization: Perspectives on Business and Law", 26-27 June 2001, followed by a special condensed lecture at the Royal Academy of Cambodia. The Conference Proceedings of "Globalization: Business and Law" was published and widely circulated in Khmer and English; (ii) Debates on Intellectual Property Rights at the Faculty of Law and Economics, 1 August 2001; (iii) Conference on "Peace, National Reconciliation and Democracy Building: Ten Years after the Paris Peace Agreements" Organized by the Cambodian Institute for Peace and Cooperation with the Support and Collaboration of the Office of the Council of Ministers, the Ministry of Foreign Affairs and International Cooperation, the Permanent Committee for National and International Events, the Friedrich-Ebert Stiftung and the Konrad-Adenauer-Stiftung, Government Palace, 12 October 2001; (iv) Interactive debates on the World Trading System at the Royal Academy of Cambodia – 9 May 2002, the Economics and Finance Institute – 17 May 2002, the National Management Institute – 31 May 2002; (v) Interactive debates on “Market Access and Export of Agro Products” to the National Media Club, organized by the Konrad Adenauer Foundation, Sunway Hotel, 22 May 2002.
31
FACED BY CAMBODIA WHEN NEGOTIATING WITH EXISTING WTO MEMBERS.
however, that the process of at the WTO
officials involved in the process to familiarize themselves with on its
which did not sufficient human or material resources to address the issues that have to be discussed in
detail. Cambodia has had to seek assistance from outside experts funded by bilateral and the World
Generally the preparation of the memorandum on the foreign trade regime by an applicant of the range
The applicant
smooth and successful membership
nefits. A and reforms
s: With due regard to their sources, both the national rty meetings, tion services -
illingness to case may be
areas like intellectual property rights, TBT, SPS, and custom valuation, bearing in mind that, along with the “most favoured nations regime" and "national treatment",
of national reforms. Law
l as well as human resources. Consequently, Cambodia needed to pay due consideration to law enforcement and institutional issues, and allocate accordingly their limited budgetary resources efficiently.
Commitment for policy implementation: Since WTO issues and agreements are rather complicated and cover a wide range of sectoral and cross-sectoral issues such as customs tariffs and valuation, agriculture, intellectual property, standards, services, anti-dumping,
CHAPTER 4: CHALLENGES
A. Political commitments
Cambodia applied for membership in WTO in 1994, but it was not until 1997, Cambodia was in a position to undertake the very complex tasks required to set accession in motion. While the interval seemed rather long, the observer statuswas necessary for Cambodianthe institution before they could get properly organize to prepare a memorandumpolicies or taking subsequent steps.
The preparation of the memorandum presents serious difficulties for Cambodia have
multilateral aid agencies, particularly from the WTO itself, UNCTAD and fromBank.
country explaining its policies and institutions can be a demanding task becauseof issues that the memorandum has to address and the degree of detail required. is solely responsible for the preparation, or any delay, of the memorandum.
Political will and commitment are thus an absolute requirement for accession. Without a clear government commitment to market reforms, WTOwill not be obtained and the process will likely result in frustrations rather than bestrong commitment may create a sound basis for ensuring that policies undertaken by the government are coherent with WTO rules and requirements.
Political commitments as reflected in budgetary allocationfinancial/economic constraints, Cambodia needed to mobilize the necessary refinancial and in kind, to fund the accession process. The necessary funds inbudget should be allocated for required travel associated with Working Pamissions, and bilateral consultations and negotiations in Geneva, costs of translaand possibly at times for revenue foregone as a result of concessions made.
Commitment for legislative changes: Cambodia needed to demonstrate their wparticipate in the world trading system by making new legislations, or as the amendments, in
the concept of "transparency,” - i.e. complete disclosure and predictabilitylegislation - should be the guiding principles for these legislative and regulatory implementation implies institutional changes, and hence requires adequate financia
32
ecessary for responsible for the coordinated
ple ents.
organization. d integration
of Cambodia d making its ndertaken by t further work Cambodia in
nical assistance to facilitate Cambodia's accession. Members looked forward to Cambodia's early accession on appropriate
rm dia's status as a least-developed country, and would
, questions and issues raised were
TT) and the g, (3) non-
abide by the ncy obligations, as contained in GATT Article X, across the board including
icial review. its Official hat practical published in
for comment protection of s appeared in s, as well as icial website.
he Cambodian court system although they recognized that the works on the drafting of the commercial court was a positive step. The outstanding issue then was that while works were ongoing the commercial court will not be in operation within the next few years, how Cambodia will be able to address the issue and how it intends to increase pace of the legal and judicial reforms, specifically on issues such as: breach of trust, lack of administrative chambers and appeals mechanism, enforcement of international commercial arbitration awards under the New York Convention to which Cambodia has ratified, and regular publication of full judicial decisions.
subsidies, foreign economic policy including regionalism and others, it was nCambodia to establish an institutional framework im mentation of policies related to WTO and WTO Agreem
B. General Observation from Working Party Members
Generally WTO Members welcomed the application from Cambodia to join theWTO membership was considered important for Cambodia's development aninto the world trading system. They were very impressed with the political willand its tremendous efforts in designing its path to accession to the WTO ansystem of laws consistent with WTO rules. Appreciating the efforts already uCambodia to achieve compliance with WTO rules and principles, they noted thawas needed in this regard. Members pledged to work constructively with accomplishing this task, and several Members would offer tech
te s. Some Members referred to Camboconsider this a relevant factor in establishing Cambodia's terms of accession.
C. Specific concerns from WTO members
Throughout Working Party meetings and bilateral sessionsnumerous and wide ranging. However, some common themes emerged mostly surrounding the five basic principles of the General Agreement on Tariffs and Trade (GAWTO, namely: (1) transparency and predictability, (2) market openindiscrimination, and (4) preferential treatment for developing countries.
Transparency and predictability: Members stressed the need for Cambodia toWTO's transparewith respect to uniform application of its trade regime and independent judSeveral members have inquired whether Cambodia would consider postingJournal on the internet to improve access to new laws and regulations, and wsteps could Cambodia take to better ensure that all new regulations are properlythe Official Journal.
As a WTO member, Cambodia has committed itself to provide at least 30 dayson all proposed new measures affecting trade in goods, services or the intellectual property. Further, no such measure will become effective until it hathe Official Journal. The body of all current laws, regulations and decreeadministrative and judicial rulings, relating to trade should be available on an off
Judicial enforcement: Some Members remained concerned on the status of t
33
ve requested and remedies, ; and criminal rs have urged
ude parallel provisions on IPR in its draft Civil Code, as this will
is one of the nd sectors of owing when Cambodia’s
quested for a he legislations to reflect the need to concentrate in the early phase of
accession. Others have stressed that most of the legislation slated in the Plan be adopted by an draft laws
a to date and sparency and
special trade areas, TRIPS, the custom code, the new custom tariff, TBT/SPS, and import licensing. Other Members have provided detailed
mbodia in its itical area of
n periods for timetable for
may consider ary technical
option process of various key legislations and regulations as committed under the National Legislation Action
bodia committing to using the appropriate international standards (i.e. Codex Alimentarius) during the transitional period
s requested to ndards.
l commitment are translated that purpose
lists over a two years period tasks by ministry and government agency, topic, WTO Working Party Report reference, deadline and need for specific technical assistance. The commitments and TA needs list covers transparency of regulation; accreditation for educational institutions and courses; draft competition policy; IPR (TRIPS border measures, patents law, plant variety protection, GIs); customs valuation; anti-smuggling equipment; banking, financial, insurance services regulation/legislation; SPS/Codex; TBT (enquiry point, standards, conformity assessment); immigration (Mode 4 horizontal commitments on temporary residence);
More specifically with regards to the TRIPS Agreement, some Members haCambodia to explain how it intended to provide for civil judicial procedures provisional measures; administrative procedures and remedies; border measuresprocedures to implement the enforcement provisions under the Agreement. OtheCambodia not to inclundermine its IPR regime.
Legislative development: Bringing the legislation in compliance with WTO rulesmost challenging tasks that Cambodia must achieve. It touches numerous areas athe economy. Some Members have requested Cambodia for a roadmap shCambodia envisaged the remaining legislation will be enacted as per commitment under the National Legislation Implementation Plan. Others have rereprioritization of t
the time of accession while a few others even insisted on reviewing Cambodiprior to their adoption.
Some Members expressed their appreciation for the laws supplied by Cambodilook forward to receiving additional legislation, in particular in the areas of trandue process, trading rights, free or
comments and questions on the various IPR drafts, and hoped that these help Caefforts to establish a TRIPS-consistent regime in IPR, in particular in the crCopyrights, Patents, and Industrial Designs.
Transition periods: Some Members were prepared to allow Cambodia transitioimplementing some obligations, although they insisted on the specificity of the these transition periods (end-point and milestones along the way). Cambodia the flexibility of the implementation of its legislation and ask for the necessassistance either bilaterally or multilaterally in order to speed up the ad
Plan. Some Members inquired the possibility of Cam
before which the provisions of the SPS and TBT Agreements are applied. Othersee an outline of the steps Cambodia plans to take to adopt these international sta
SECTION 5: STEPS TO IMPLEMENT WTO COMMITMENTS
The post WTO accession challenges are huge but not insurmountable. Nationaand ownership aside, Cambodia has to implement 29 legal commitments which into 98 separate tasks for the next few years. The Council of Ministers has for prepared and adopted a Work Action Plan to implement the accession commitments. The plan
34
equirements; law (TRIMs
ansport (implementing regulations for civil 31
h, notably, its n update and TIS would be and particular revised DTIS
terms of new eveloped and an, notably in
he horizontal onses. At the cross sectoral trengthen the tion between el the project
ry’s supply capacity in the identified export potential sectors in order to ent
t support and ings through
ensive policy ns for local
political deadlock in the post-election period and the delays in forming the government, acting upon the recommendations of the World Bank’s Investment Climate Report, a Special Inter-Ministerial Task Force on Trade Facilitation and Investment Climate was establish to address the most urgent impediments in trade facilitation. On 26 July 2004, the government established a Commission on Private Sector Development consisting of the following working groups:
architectural, construction, engineering services regulation to meet GATS rpharmaceutical import regulations; road transport regulations; investment compliance, notification of subsidies ; air tr)aviation, regulations for marketing air services).
Over the next several years Cambodia will be facing many changes among whicaccession to the WTO. The Government intents on undertaking a review, aadjustment of the DTIS which was prepared since 2001. The revision of the Dfacilitated by the findings of the many trade related initiatives mentioned above the IF “Capacity Building for Pro-Poor Trade Reforms” project (Phase I).32 The will identify and illustrate the reforms undertaken by the national authorities inlegislations and institutional changes, and will reveal the new partnerships dreport on the current status of integration of trade in the national development plthe annual NPRS updates. The IF project’s Phase II is designed to produce important outcomes both at tlevel (sustainable capacity building) and at the vertical level (supply side) resphorizontal level the project will develop the capacity of relevant actors on issues, involving local trade support institutions and ministries, in order to strade support network established under Phase I and further facilitate interacGovernment, trade support bodies and the business sector. At the vertical levwill enhance the countexpand Cambodia’s exports and present concrete and visible examples of employmgeneration through trade development. This will be realized by providing directechnical advice to pre-identified export-ready enterprises and disseminate findtheir business associations.
Moreover, Cambodia has used its WTO membership to implement a comprehreform agenda aimed at attracting FDI and creating favourable conditioinvestors.33 Despite the
31 See Annex 3 for the full Action Plan 32 The project which used $500,000 of fund earmarked by Japan to the IF UN Trust Fund, and UNDP funds,
aims at pursuing three priority objectives: (i) to promote a broader national constituency on trade and poverty through a strategic and information-based partnership development approach; (ii) to enhance opportunities for effective allocation of ODA towards trade, through the strengthening of supply side responses in three product sectors namely: diversified agriculture and agro business, fresh water fisheries, and handicraft; (iii) to further elaborating on the links between poverty reduction/ human development and trade expansion.
33 The reform agenda includes specifically: (i) promoting business membership organization and strengthening its advocacy capacity; (ii) reducing policy-based impediments to efficient transactions, particularly in such areas as trade facilitation and business transactions; (iii) rationalizing roles and responsibility of government agencies involved in the control of exportation and importation by introducing single window with flat fee; (iv) implementing customs streamlining programs; (v) introducing process automation; (vi) reducing entry barriers, such as unnecessary licenses and the high cost of registering business, and (vii) taking a supply chain approach to removing bottlenecks on a product basis.
35
¶ ticipation in Infrastructure
¶ rking Group on Trade Facilitation chaired by the Senior Minister, Minister of
¶ on Small and Medium Enterprise chaired by the Minister of
will require ambodia' has number of s. Cambodia
the “behind-the-border” institutional and regulatory constraints in order to maximize the developmental benefits of trade and investment liberalization. These "behind-the-border"
NCE
t of the IF in acity building
d in line with international
ssistance to LDCs, the most important ones were: The Millennium Development Goals (September, 2000)34, the Quad countries regarding WTO Rules and their implementations (May 2001)35, the WTO Fourth Ministerial Declaration in Doha, Qatar (November 2001)36, the Financing for Development (FfD) Conference (March, 2002)37, and possibly more at the next World Summit for Sustainable Development in Johannesburg, South Africa in August 200238.
The Working Group on Investment Climate and Private Par(PPI) chaired by the Senior Minister, Minister of Economy and Finance; The WoCommerce; The Working Group Industry, Mine and Energy.
These working groups would work at leveraging the benefits of market accessCambodia to undertake substantial reforms, which can go far beyond what Ccommitted during its negotiations. Cambodian domestic producers face aimpediments beyond tariffs that tend to undermine the benefits of market acceswill have to move to develop and implement coherent complementary policies to tackle
issues also feature prominently on the Doha Development Agenda.
SECTION 6: OVERVIEW OF TRADE RELATED TECHNICAL ASSISTA
Cambodia’s success story in the WTO was in large part attributed to the advenCambodia. The process of accession represents a great opportunity for local capin this respect. Developed nations have extended their support to Cambbasis in many specific areas where immediate compliance to WTO rules is needetheir pledges. The last four years have witnessed the convening of a series of conferences which have a direct bearing on the provisions of technical a
odia on a fast-track
34 The goal on the development of a Global Partnership for Development (Goal No. 8) points to the establishment of an inclusive and equitable globalization, which can be best achieved through a “human development paradigm”. The Millennium Declaration includes critical considerations on further developing an open, rule-based, predictable, non-discriminatory trading system, and a commitment to good governance, development, and poverty reduction — both nationally and internationally.
35 The QUAD statement reiterated the major four donors commitments to "make full use of the flexibility foreseen under the WTO Agreements for LDCs, like the granting of transitional periods for the full implementation of specific rules. While the goal should be the adoption of WTO provisions upon accession, these transitional periods may be applied to the acceding LDCs upon request and presentation of a detailed plan of action for assuring compliance with WTO rules, to be included in the protocol of accession. The implementation of the action plans could be supported by technical assistance."
36 The Doha Ministerial Declaration stressed that al cooperation and capacity building are core elements of the development dimension of the multilateral trading system. It provides the mandate and the resources to assist countries to mainstream trade into national plans for economic development and strategies for poverty reduction."
37 The FfD provided additional opportunities in addressing the capacity needs of LDCs in relation to trade and poverty reduction. It has moved the debate toward a new resource framework which goes beyond ODA and included, among others, mobilization of domestic resources, revenue generated by trade and FDI.
38 A solid program of action was firmed up after new resources were secured at Monterrey, following the European and American decisions to step up development aid.
"technic
36
international NCTAD, the nts of WTO an resource
both categories of public sector and va
TO accession to play a very
important role in the process of policy adjustmsolid noteworthy:
ents is very presented by en active part O and other
zations. Specialist knowledge and expertise for each specific WTO Ag specialists on
PS, Services,
ve continuity ectuating the
an acceding country and WTO members. In this respect an essential ost accession k of contacts
r the private e in the implementation of the
nd trade as a r lectures in te resolutions cial reference
n example for its effectiveness and good achievements in comparison to other countries that applied the same methodology and process. The strengths of the IF in Cambodia are: (i) a focused and comprehensive diagnostic analyses and a clear policy direction; (ii) strong local ownership and pro-active attitude – Cambodia has no “lead donor”-, in particular on the stakeholders dialogue; (iii) a strong commitment to follow up on the mobilization of the necessary funding to implement the technical assistance action plan; and (iv) the ability to mainstream the trade policy in the national poverty reduction and growth development strategy.
Cambodia has made active use of technical assistance and consultancies fromorganizations of the Integrated Framework (IF) initiative (IMF, ITC, UNDP, UWorld Bank, and WTO), other specialized UN agencies, and from governmemember countries in the preparation of required documentation, and humdevelopment. The target beneficiaries encompassed pri te sector decision-makers and the civil society stakeholders:
1. Capacity building for policy makers and trade negotiators: Because Wis a negotiation process where the public sector decision-makers will be asked
ents, Cambodia saw the need to pull together a and competent trade negotiating team. Two aspects of capacity building are
- Full knowledge of the rules: Detailed knowledge of the agreemimportant for effective negotiations with WTO members that are rehighly qualified specialists. As such the trade negotiating team have takin trade policy and other WTO-related courses organized by WTmultilateral organi
reement were developed, with particular attention paid to training of different WTO Agreements (TRIPs, TRIMS, Agriculture, TBT, and Sand custom valuation).
- Continuity of the trade negotiating team: Ensuring administratiand consistency in the negotiation process is very important for effactivities of both Cambodia ashaving and maintaining a stable and appropriately qualified team waselement to continue the momentum in the accession as well as in pimplementation process. Moreover Cambodia has maintained a networwith negotiators from other countries.
2. Capacity building for private sector operators: Capacity building fosector is a must as it is them who will directly participatagreements. They will be the ones who will change investment, production aresult of the new situation. For a start Cambodia has conducted courses oinstitutions of higher education on WTO legal principles, agreements and dispufollowed by specific seminars and courses. Preparation and distribution of spematerials on these issues as supporting tools were also undertaken.
The IF in Cambodia is considered by many as a
37
r inability of trade related not prevented
bilizing resources from these donors under the rubric of the larger trade mainstreaming theme.
* * * * *
The weaknesses of the Cambodian IF is more perceived from the willingness osome donors – aside from the six core agencies - to label and place theiractivities under the purview of IF umbrella. Nevertheless, this shortcoming has Cambodia from mo
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________. 2002c. “Memorandum UNCTAD M
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________. 2002e. “Mission Report: Road Map to Cancun. Cambodia 3rd Working Party for WTONovember 23.
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________. 2003g. “Minutes of meeting between Minister Cham Prasidh and WTO DG Supachai PanitchpGenev
________. 2003h. “Minutes of meeting between Minister Cham Prasidhrussels.” April 15.
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________. 2003m. “Recommendations of the Prime Minister for the outcay 16.
________. 2003n. “Minutes of the Meeting of the Informal Working
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the WTO, Geneva,
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on <http://www.moc.gov.kh.>
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ter for International LegalStudies, Salzbur
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________. 2003b. Technical notes on Audiovisual services, February 14.
________. 2003c. Notes on Questions linked to Agriculture policies, February 18.
________. 2003d. Internal memo re explanations on services with Panama, March 27.
VanGrasstek. 2000. “Laws and Policies of the United States of America Concerning the Accession of Cambodia to the World Trade Organization.” UNCTAD, February 8.
World Bank. 2001. Global Economic Prospects and the Developing Countries: Making Trade Work for the World’sPoor, (Washington DC)
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RGC (Royal Government of Cambodia). 2001. “Socio-Eco
________. 2003. “National Poverty Reduction Strategy.” Phnom Penh.
Sok, Siphana 2001a. "Foreign Investment in Cambodia." Background Paper presented at the Symposium on Investment for the Asean New Member Countries, Tokyo, February 15.
________. 2001b. “National Workshop on Trade Facilitation.” Opening Remarks, UN-ESCAP Phno26-27.
________. 2001c. "Globalization and Micro & Small Enterprises Development." Presented at the Wand Promoting MSE Development, Phnom Penh, February 26-
________. 2001d. “Cambodia Market Access Strategy.” Presented to the Cambodian Diplomatic Corps airs and International Cooperation, Phnom Penh, March 15.
Sok Siphana. 2001e. "Roundtable Discussion on Development and Poverty Reduction in Cambambodian Institute for Peace and Cooperation and the World Bank Institute, Phnom Penh, April
________. 2001f. "Globalization and Cambodia: History and Peronference: Business and Law Perspectives, Phnom Penh, June 27-28. Available also on <http://www.clrd
________. 2001g. "Mainstreaming Trade Strategy for Poverty Alleviation in Cambodia" Presented atConference of the Forum on Cambodia, Laos and Vietnam, Vientiane, June 19-21.
________. 2001h. Concluding Remarks at the Subregional Workshop on Facilitating Trade in Indothe 2nd Trade Facilitation Working Group, Phnom Penh, June 2
________. 2001i. "Development and Challenges for Cambodia in ICT." Keynote Speech at the 8th eAeeting, Siem Reap, July 6.
________. 2001j. “Opportunities, Challeng
________. 2001
________. 2001l. "Protection of Intellectual Property Rights: Global Trends & Marketplace." PaperFaculty of Laws and Economics, Phnom Penh, August 1.
________. 2002. Opening Statement at the 3rd Working Party Meeting on Cambodia's Accession toNovember 14.
_______eduction.” Paper presented at the World Bank Senior Policy Seminar for Cambodia and Lao PDR, P
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________. 2003b. “WTO Accession in Cambodia: Experiences in Dealing with Services and InvePresented at the Readiness for WTO Accession Conference, Hanoi,
________. 2003c. Opening Statement at the Infeneva, June 26.
Sarin, and Siphana Sok. 1998. “Legal System of Cambodia.” CLRDC, Phnom Penh, Ceng.
UNCTAD (United Nations Conference on Trade and Development). 2001. Duty and Quota Free MaLDCs: An Analysis of Quad Initiatives, (London and Geneva).
________. 2003a. Internal memo re explanations on services with Australia, Canada, EC, Japan, STerritory of Taiwan
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________. 2003. “Towards A Private Sector -Led Growth Strategy for Cambodia - Volume 1: Value Chain Analysis.”W
aft Copyright andard, in Particular, to its compatibility with the Agreement on
/ACC/ 7/Rev. 1, Geneva,November 19.
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M/3/Rev.1/Add.1, June
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________. 2003. “Report of the Working Party on the Accession of Cambodia, Annex A (Cambodia's offer on tariffs on goods).” WT/ACC/SPEC/KHM/1/Rev.3.
________. 2003g. “Report of the Working Party on the Accession of Cambodia, Annex B (Cambodia's commitments on services).” WT/ACC/SPEC/KHM/2/Rev.3.
ashington, DC.
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WTO (World Trade Organization), 1999. "Technical Note on the Accession Process.” WT
________. 2001a. “Doha WTO M
________. 2001b. Seminar Proceeding on "The Policy-Relevance of Mainstreaming Trade Into CountS
________. 2002a. “Domestic Support and Export Subsidies in Agriculture.” WT/ACC/SPEC/KH13.
________. 2002b. “Revised Checklist of TRIPS Requirements and Implementation by thT/ACC/KHM/7/Rev.1, June 13.
_
________. 2002d. “WTO General Council on “Accession of Least Developed Countries.” December 1
________. 2003a. “Draft Report of the Working Party on the Accession of Cambodia.” WT/ACC/SPApril 30.
________. 2003b. “WTO Members’ Questions on Working Party Report during Informal WorkingAccession to WTO.” Geneva, June 26.
________. 2003c. “Draft Report of the Working Party on the Accession of Cambodia.” WT/ACC/SPJ
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________. 2003e. “Report of th
40
ANNEX 1: MATRIX OF COMPREHENSIVE TRADE RELATED INITIATIVES
Organization Project Title o Preventing Poverty and Empowering Female G
Affected by the Changing International Trade Environmo Financial Sector/Commercial Laws Componento (planned) SPS Capacity Building (Regional Prog
Lao PDR, Vietnam, Thailand) o Cambodia Australia Technical Assistance Facility (CATo Improving the Marketing System of Maize and Soybeans in Ca
Aust o International Standards and Technical Regulations (throo APEC/WTO Capacity Building InCanada -
CI o Legislation on Commercialo Technical Cooperation Action Plan (TCAP) o WTO accession - Telecom Reference Paper o Multilateral Trade Assistance Pro EC/ASEAN co-operation programme on Int
EC
o EC/ASEAN co-operation programme on Product Stando Geographicalo Drafting of Law on Geographical Indicationo Cambodian Rubber Certifo TrainForTrade project - Training on Multilatera
(through UNCTAD)o Drafting of Sanitary and Phytosanitary (SPS) Measureso Drafting of Law on Rule of Origino Secondment of long term trade expert. o Expoo Private Sector Donor coordinationo Export Processing and Trade working group - addresso Customs and Excise Department Support o Poverty Reduction Growth Facility (PRGF) 2003-200
assistanceo World Tr@de Neto IF Projects - Silk (part of the Capacity Building
Reforms Programme).o Export Led Poverty Reduction Prog
building and export promotion for production ofo Advisors for To Sihanoukville Growth Corridor Ao Feasibility stuo Study on the Improve
Quality Control of Rice in CambodiaTrade Promotion and Trade-related assis
arment Workersent
ADB
ramme - Cambodia,
AF)
Australia
mbodiaria ugh UNIDO)
itiativeDA Court and Commercial Arbitration Rules
DFID
ojectellectual Property Rights
ardsIndication of Origin Project
of Originication and Commercialization
l Trade Negotiations"
.
France
Germanyrt Processing and Trade working group coordination IFC
ing bottlenecksIMF
6 - trade-related
for Pre-Poor TradeITC
ramme - Entrepreneur capacity silk handicraft.
rade and Industrial Promotion.ssistance.
Japan - JICA
dy on the Establishments of a Paddy Marketment of Marketing System and Post-Harvest
MPDF o tanceo Financial facilities for trade and investments & Agreement on
Investment Protection Netherlands
o Technical Cooperation Action Plan (TCAP) o Phytosanitary project o Legal Metrology o WTO Customs Valuation
New Zealand
o (planned) Agricultural diversification/technology
41
Organization Project Title o
2Singapore o Cambodia-Singapore Training Centre - Trade Training PrSwitzer o Support to Trade Promo
of Cambodia, Laos and Vietnamo Koh Kong Industrial Estate o WTO Accession o TrainForTrade project - Training on Mo E-business: Strengthening the Capac
and Small and Medium Sized Enterprises (SMEs)o Capacity Building for Pre-Poor Trade Reformso E-Trade Bridge Strategy o Investment Guidelines and Capacity Developmo Formulation of the Private Financing of Infrastructure Fro Technical Cooperation Action Plan (TCAP)o Strengthening capacities of developing countries to ma
globalization through effective integsystem (Phase I and II)
o Development of Enabling Policies in Trade and Investmsector.
o Trade Policy Course and Regional SeminarsUNIDO o Industrial Standards and Technical RegulatiUS - USAI Support to the Integrated Fram
Norway International Standards and Technical Regulations - phase 1 and phase
ogramland tion and Export Development in the sub-region
Thailand
ultilateral Trade Negotiations UNCTAD
ity of Trade Support Institutions
ent for Cambodiaamework
UNDP
nageration into the multilateral trading
ent in the IT
UNESCAP
onsD o ework in Cambodia (SME component)
o Support to RCG's Private Sector Growth Strategy o Streamlining Trade Facilitation
WB
o Public-Private Infrastructure Advisory Facility (PPIAF)WB/IDA o Private Sector Investment Credit (loan
42
ANNEX 2: DESCRIPTION OF SELECTED TRADE RELATED INITIATIVES
aimed at icipation in the O Secretariat
r Cambodia’sited from the
om the IF team.
dia has benefited every year from both the WTO three-week cifically for
ovideeminate
greements.officials and private sector participants have regularly participated in specialized
isions, such astion, market access, trade and environment, TRIPS, and agriculture (mandated
bodia in
h support fromoC has established a "WTO Reference Centre" with modern data
processing facilities and better communication and information technology, including Internet
MF, ITC, OECD, UNCTAD, nce/workshop
d investment.in traderules
ms administration.
g training anddispatched on a
ission to the goods offer,
services offer, technical checklists (agriculture, TBT, SPS, and TRIPS), and various plans of action for all the WTO Working Party meetings.
Translation of Trade Negotiations Materials: The project involves the translation and publications in Khmer of 3 key documents: "Business Guide to the World Trading System"published by the ITC and the Commonwealth Secretariat, the "Tools for Multilateral Trade Negotiations on Agriculture," and the "Tools for Multilateral Trade Negotiations on Trade in Services." published by the UNCTAD’s Commercial Diplomacy Programme. The project was
WTO
In general the technical assistance provided to Cambodia by the WTO as beenhuman and institutional capacity-building for better understanding of and partmultilateral trading system. More specifically in the area of accession, the WThas been very efficient and proactive in the provision of technical support foWorking Party meetings. In the WTO accession process, Cambodia has benefadvice of the WTO trade policy review team and the dynamic support fr
Trade Policy Courses: CamboShort Trade Policy Course and the three month Trade Policy Courses speparticipants from LDCs in Geneva.
National Seminars: National seminars have also been organized by WTO to prCambodian officials an overview of the multilateral trading system and to dissinformation on the functioning, basic rules and principles of the WTO and its ACambodianregional seminars focusing in depth on specific WTO Agreements and provcustoms valuanegotiations).
Technical Missions: WTO has provided several technical missions to assist CamWTO accession.
Establishing modern data processing facilities ("WTO Reference Centre"): Witthe WTO Secretariat, the M
links. The Center was renovated and expanded to house extensive trade specific references obtained from various sources including the ADB, ESCAP, IUNDP, World Bank, and WTO materials. Other training materials and confereproceedings are also available.
United Nations Conference on Trade and Development (UNCTAD)
UNCTAD had been quite active in the provision of policy analysis on trade anTrade-related technical assistance provided so far includes training and supportnegotiations and implementation of commitments, WTO accessions advice andconsistency, ports management and custo
WTO Accession: Cambodia considers UNCTAD as the lead agency in providinsupport in trade negotiations and WTO accessions since 1997. Missions wereneed basis to assist the Government finalize the WTO documents prior to submWorking Party. Advice given covers the entire range from WTO replies, tariff of
43
quite timely and useful as the Cambodian delegation prepared for the third rnegotiation. Moreover a series of training workshops were held for key stakegovernment institutions involorganizations including academia.
Study Tours: In 2000-2001 UNCTAD has sponsored several study tours and tCambodian officials to in Geneva. Other activities include the launch the World InvestmReport in Cambodia, and participation a Seminar on Traditional Knowledge (I
Trainfortrade programme: The Trainfortrade programme, which started in 200strengthening training capacities in developing countries, particularly LDCs, ininternational trade and trade related services. The programme strategy consistspartnerships with other training institutions in order to enable a permanent exchinformation, courses, and teachers; developing, producing and updating high-qpackages that meet the needs of persons involved in international trade, and eboth state and private sectors; organizing national and regional seminars and tin the instituan international trade institute in partnership with the private sector and acadewas secured from the French Government to cover a four year program costs foand Lao PDR.
International Chamber of Cto Cambodia for the use of potential foreign investors.
EUROPEAN COMMISSION
Trade Sector Development: The Country Strategy Paper (CSP) for Cambodia hfinalized and covers the period 2005-2007. In addition, the EC is currently implerolling 3-year Indicative National Programme (2002-2004) with a contributionPriority areas for EU assistance are: institutional caprocedures and other procedures to make full use of the EBA initiative.
Other assistance is also being provided, inMoC and other authorities involved in international trade. The Institutional SupProgramme provides TA to the MoC, in addition to other tasks, assess the needEC support to assist Cambodia to enhance its trade capacity.
Support for Post WTO accession: Another major specific objective of thto assist Cambodia in post accession to the
that would ato achieve further economic co-operation by upgrading the ASEAN interights systems, and (ii) in the EC/ASEAN standards programme that aims at th
ound ofholders like
ved in the WTO, private sector participants, and civil society
raining for 12ent
P) in India.
4, is aimed at the field ofof developingange of
uality trainingxecutives fromraining courses
tional members of the network. The project also aims at helping MoC establish mia. Funding
r Cambodia
UNCTAD-ICC Investment Guides Project for Cambodia: UNCTAD in partnership with the ommerce (ICC) have prepared and launched an investment guide
as beenmenting a
of € 2 million.pacity building, trade facilitation/customs
particular, for human resource development in the portfor additional
e EU intervention is WTO.
IPR/SPS/TBT: At the regional level the EC has provided an additional € 1 million for actionsllow Cambodia’s integration: (i) into the EC/ASEAN IPR programme that aims
llectual propertye development
of technical regulations and standards, conformity assessment procedures and quality structures and practices compatible with EU ones.
SINGAPORE
As part of the Initiatives for ASEAN Integration (IAI) - Trade Training Program, the Government of Singapore has been conducting and continues to conduct a series of trainings
44
45
cials in the area of trade development, trade policy analysis, export promotion, and trade facilitation.
vided by the Government of Thailand to Cambodia during its preparation for the first and second Working Party meetings.
for Cambodian key economic offi
THAILAND
Trade negotiations and other WTO accession related capacity building were pro
Wor
k Pr
ogra
m o
f th
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ernm
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27 F
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2004
46
WT
O W
ork
Pro
gram
,200
4-
20
Che
cklis
t of t
asks
05
Top
icW
TO
Ref
eren
ceT
ask
Dea
dlin
eT
echn
ical
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
OF
FIC
E O
F C
OU
NC
IL O
F M
INIS
TE
RS
Tra
nsp
aren
cyP
Rep
or
par
a 21
639,
21740
nts
of
Off
icia
l Jo
urn
al o
n
the
Go
vern
men
tw
ebsi
te a
nd
kee
p
them
cu
rren
t
nee
ded
.M
ore
TA
N
eed
ed
Wt
Po
stco
nte
Asa
p
TA
48
39 I
n re
spon
se,
the
repr
esen
tativ
e of
Cam
bodi
a st
ated
tha
tC
ambo
dia
inte
nded
to
prov
ide
a re
ason
able
per
iod,
i.e
. no
les
s th
an 3
0 da
ys,
for
com
men
t to
the
app
ropr
iate
aut
hori
ties
befo
re m
easu
res
pert
aini
ng to
or
affe
ctin
g tr
ade
ingo
ods,
serv
ices
and
TR
IPS
are
adop
ted,
exc
ept
for
thos
e re
gula
tions
and
oth
er m
easu
res
invo
lvin
gna
tiona
l em
erge
ncy
or s
ecur
ity,
or f
or w
hich
the
pub
licat
ion
wou
ld i
mpe
de l
aw e
nfor
cem
ent.
The
pub
licat
ion
of s
uch
regu
latio
ns a
nd o
ther
mea
sure
s w
ould
inc
lude
the
eff
ectiv
e da
te o
f th
ese
mea
sure
s an
d, w
here
appr
opri
ate
or p
ossi
ble,
lis
t th
e pr
oduc
ts a
nd s
ervi
ces
affe
cted
by t
he p
artic
ular
mea
sure
, ide
ntif
ied
byap
prop
riat
e ta
riff
lin
e an
d cl
assi
fica
tion.
He
adde
d th
at C
ambo
dia
wou
ldpo
stth
e co
nten
ts o
f cu
rren
t and
past
edi
tions
of
the
Off
icia
l Jou
rnal
on
the
gove
rnm
ent w
ebsi
te a
nd k
eep
them
cur
rent
.
40 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
that
fro
m t
he d
ate
of a
cces
sion
all
law
s,re
gula
tions
, dec
rees
, jud
icia
l de
cisi
ons
and
adm
inis
trat
ive
rulin
gsof
gene
ral
appl
icat
ion
rela
ted
to tr
ade
wou
ldbe
pub
lishe
d in
a m
anne
r th
at f
ulfi
lsW
TO
req
uire
men
ts.
As
such
, no
law
or
regu
latio
n re
late
d to
inte
rnat
iona
ltra
de w
ould
beco
me
effe
ctiv
e pr
ior
to s
uch
publ
icat
ion
in th
e O
ffic
ial J
ourn
al.
He
furt
her
stat
ed th
at a
ll la
ws
whi
ch w
ere
amen
ded
to c
ompl
y w
ith th
eW
TO
Agr
eem
ents
con
tain
edpr
ovis
ions
whi
ch r
equi
re s
uch
publ
icat
ion.
Dec
rees
,sub
-D
ecre
es a
nd P
raka
s af
fect
ing
inte
rnat
iona
ltr
ade
wou
ld b
e pu
blis
hed
in t
he O
ffic
ial
Jour
nal.
Cam
bodi
a’s
Con
stitu
tion
and
the
law
s cu
rren
tly i
n pl
ace
or l
iste
d in
the
Atta
chm
ent
assl
ated
for
nea
r-te
rm e
nact
men
t w
ould
im
plem
ent
fully
Art
icle
X o
f th
e G
AT
T 1
994
and
the
othe
r tr
ansp
aren
cy r
equi
rem
ents
in
WT
OA
gree
men
ts r
equi
ring
not
ific
atio
nan
d
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Tra
nsp
aren
cy
WP
Rep
ort
7d
esig
nat
e O
ffic
ial
ebs
he
fn
set
c.ad
e
1 Ja
nu
ary
par
a21
Est
ablis
h o
r
Jou
rnal
or
wit
ed
edic
ated
tot
pu
blic
atio
no
reg
ula
tio
affe
ctin
gtr
2004
Ed
uca
tio
n
Ser
vice
s sc
hed
edu
cati
on
alse
rvic
es
Est
ain
dep
enac
cred
itin
gp
ro
TA
e
49
ule
: 41
blis
h den
tce
ss
Asa
pn
eded
publ
icat
ion.
H
e fu
rthe
r co
nfir
med
tha
t by
1 J
anua
ry 2
004,
Cam
bodi
aw
ould
est
ablis
hor
des
igna
te a
nof
fici
al j
ourn
al o
r w
ebsi
te, p
ublis
hed
orup
date
d on
a r
egul
ar b
asis
and
rea
dily
avai
labl
e to
WT
O M
embe
rs,
indi
vidu
als
and
ente
rpri
ses,
dedi
cate
dto
the
pub
licat
ion
of a
ll re
gula
tions
and
othe
r m
easu
res
pert
aini
ng t
o or
aff
ectin
g tr
ade
in g
oods
, se
rvic
es,
and
TR
IPS.
The
Wor
king
Par
ty to
okno
te o
f th
ese
com
mitm
ents
.
41 V.
ED
UC
AT
ION
AL
SER
VIC
ES
3.H
ighe
r ed
ucat
ion
serv
ices
(CPC
923
)4.
Adu
lt ed
ucat
ion
(CPC
924
)5.
Oth
er e
duca
tion
serv
ices
(CPC
929
)
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd e
xcep
t as
indi
cate
d in
the
hori
zont
alse
ctio
n
Cam
bodi
aw
ill s
eek
to e
stab
lish
anin
depe
nden
t nat
iona
lacc
redi
ting
proc
ess
for
mar
ketp
urpo
ses
ined
ucat
ion
and
prof
essi
onal
serv
ices
whi
chis
in k
eepi
ng w
ith g
loba
lpr
actic
e.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
MIN
IST
RY
OF
CO
MM
ER
CE
Inte
rmin
iste
ria
l mac
hin
ery
WP
Rep
ort
P
ara
3942
Re-
def
ine
the
Inte
r-M
inis
teri
alC
oo
rdin
atin
gC
om
mit
tee
Asa
pN
ot
nee
ded
Co
mm
erci
alC
ou
rtR
epo
rp
ara.
3543
com
mer
cial
co
urt
Jun
e 20
05
No
TA
nee
ded
. W
Pt
Pas
s la
wes
tab
lish
ing
th
e
50
Co
mp
etit
ion
WP
Rep
ort
D
raft
law
Asa
p A
dd
itio
nal
TA
42 T
he M
inis
try
of C
omm
erce
act
ed a
s th
efo
cal
poin
t fo
r ac
tiviti
esre
late
d to
WT
O a
cces
sion
.T
heW
TO
Off
ice
of t
he M
inis
try
had
10pr
ofes
sion
al s
taff
. I
n ad
ditio
n, a
n In
ter-
Min
iste
rial
Co-
ordi
natin
g C
omm
ittee
on
WT
OA
cces
sion
, cha
ired
by
the
Min
iste
rof
Com
mer
ce, h
adbe
en e
stab
lishe
d in
Sep
tem
ber
1997
.T
he r
ole
of th
is C
omm
ittee
, whi
chco
unte
d15
mem
bers
at
the
polic
y le
vel
and
thre
eof
fici
als
from
eac
h of
the
23
min
istr
ies
and
agen
cies
inv
olve
d in
WT
O a
ctiv
ities
at
the
wor
king
lev
el,
was
to
(i)
coor
dina
te p
olic
y is
sues
rela
ted
to W
TO
acc
essi
on;
(ii)
ela
bora
te g
uide
lines
to
impl
emen
t W
TO
Agr
eem
ents
;(i
ii) p
repa
re t
he n
eces
sary
doc
umen
tatio
n;(i
v)de
fine
the
Gov
ernm
ent's
pri
oriti
es r
elat
ed t
ofo
reig
n tr
ade
polic
ies;
(v
) en
sure
coo
rdin
atio
n am
ong
Min
istr
ies;
an
d (v
i) r
epor
t to
the
Pri
me
Min
iste
r on
iss
ues
rela
ted
toW
TO
acc
essi
on.
InA
ugus
t 20
01,
his
Gov
ernm
ent
had
appo
inte
d a
wor
king
gro
up c
ompr
isin
g m
ore
than
110
seni
orgo
vern
men
t off
icia
ls to
ass
ist i
n m
atte
rs r
elat
ed to
Cam
bodi
a's
acce
ssio
nto
the
WT
O.
43 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
that
the
Nat
iona
l Ass
embl
yan
d th
e Se
nate
had
adop
ted
a la
w r
atif
ying
the
New
Yor
k C
onve
ntio
n on
the
Enf
orce
men
t of
Fore
ign
Arb
itral
Aw
ards
in 2
002.
He
furt
her
conf
irm
ed th
at, a
s in
dica
ted
in d
ocum
ent W
T/A
CC
/KH
M/1
0/R
ev.2
, the
Min
istr
y of
Com
mer
ce w
as d
evel
opin
g a
draf
t "L
aw E
stab
lishi
ng th
e C
omm
erci
alC
ourt
" to
impl
emen
t the
Con
vent
ion.
The
draf
t law
had
been
app
rove
dby
the
Cou
ncil
of M
inis
ters
inM
arch
2003
and
was
cur
rent
ly b
eing
con
side
red
by P
arlia
men
t. H
e ex
pect
ed th
epr
oces
s of
ado
ptin
g an
d pr
omul
gatin
g th
e la
w t
o be
com
plet
ed b
y Ju
ne20
04.
He
note
d th
at C
ambo
dia
was
rec
eivi
ng s
ome
tech
nica
l ass
ista
nce
in t
his
area
, and
that
his
cou
ntry
was
seek
ing
mor
e ex
tens
ive
and
pred
icta
ble
assi
stan
ce.
He
furt
her
conf
irm
ed t
hat
a C
omm
erci
al C
ourt
sys
tem
with
tra
ined
jud
ges
and
staf
f es
sent
ial
to c
reat
e a
clim
ate
of t
rans
pare
ncy
and
pred
icta
bilit
y, o
r a
func
tiona
l equ
ival
ent,
shou
ld th
eref
ore
be in
pla
ceby
the
end
of 2
004.
Top
icW
TO
Ref
eren
ecT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Po
lic
par
a.28
y44
nee
ded
Co
mm
erci
alar
bit
rati
on
WP
Rep
ort
p
ara.
3345
,36
46
Dra
ftla
w o
n
com
mer
cial
arb
itra
tio
n
1 Ja
nu
ary
2005
No
TA
Nee
ded
Fir
st q
uar
ter
2005
An
ti-d
um
pin
g,
WP
Rep
51
safe
gu
ard
san
dco
un
terv
ailin
gm
easu
res
ort
par
a.10
647,
10848
Dra
ft le
gis
lati
on
1
Jan
uar
y20
05N
o T
A n
eed
ed
44 T
he r
epre
sent
ativ
e of
Cam
bodi
a sa
id th
at C
ambo
dia
did
not
have
a c
ompe
titio
n la
w, b
ut C
ambo
dia
was
see
king
ass
ista
nce
to d
raft
leg
isla
tion
to e
nsur
e fa
ir c
ompe
titio
n in
var
ious
busi
ness
act
iviti
es.
Ask
ed t
o pr
ovid
e in
form
atio
n on
how
Cam
bodi
aw
as a
ddre
ssin
g th
e pr
ovis
ions
of
Art
icle
VII
I of
the
GA
TS
conc
erni
ng m
onop
olie
s an
d ex
clus
ive
serv
ice
supp
liers
, he
said
that
inge
nera
l his
Gov
ernm
ent w
as p
ursu
ing
apo
licy
of g
radu
al li
bera
lizat
ion
ofpr
evio
usly
mon
opol
ized
serv
ices
to in
volv
e pr
ivat
e pa
rtic
ipat
ion,
incl
udin
gfo
reig
nco
mpe
titio
n.
45 A
s fo
r co
mm
erci
al d
ispu
tes,
the
Min
istr
y of
Jus
tice
toge
ther
with
the
Min
istr
y of
Com
mer
ce w
ere
prep
arin
g a
draf
t la
w e
stab
lishi
ng a
Com
mer
cial
Cou
rt.
In
the
inte
rim
,co
mm
erci
al c
ases
wer
e br
ough
t be
fore
pro
vinc
ial
and
mun
icip
al c
ourt
s. V
olun
tary
set
tlem
ent
of c
omm
erci
al d
ispu
tes
cam
e w
ithin
the
com
pete
nce
of t
he C
ham
ber
of C
omm
erce
,em
pow
ered
to
act
as a
n ar
bite
r un
der
Art
icle
9 o
f th
e 19
95 C
ham
ber
of C
omm
erce
Law
. C
ambo
dia
had
ratif
ied
the
New
Yor
k C
onve
ntio
non
the
Enf
orce
men
t of
For
eign
Arb
itral
Aw
ards
on 5
Jan
uary
1960
.T
he M
inis
try
of C
omm
erce
was
pre
pari
ng a
Law
on C
omm
erci
al A
rbitr
atio
n to
impl
emen
t the
New
Yor
k C
onve
ntio
n.
46 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
tha
t a
syst
em o
f ap
peal
fro
m a
dmin
istr
ativ
e de
cisi
ons
inm
atte
rs c
over
ed b
yW
TO
Agr
eem
ents
to
an i
ndep
ende
nt t
ribu
nal,
as p
rovi
ded
for
in A
rtic
le X
of
the
GA
TT
and
othe
rW
TO
Agr
eem
ents
, was
in
the
proc
ess
ofbe
ing
esta
blis
hed
in th
e dr
aft L
aw o
n Ju
dici
alO
rgan
izat
ion,
and
wou
ldbe
oper
atio
nal b
y D
ecem
ber
2004
. In
add
ition
, the
Com
mer
cial
Cou
rt s
yste
m w
ould
be e
stab
lishe
d by
1 Ja
nuar
y20
05.
The
Wor
king
Part
y to
ok n
ote
of th
is c
omm
itmen
t.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
An
ti-d
um
pin
g,
safe
gu
ard
san
dco
un
terv
ag
mea
sure
s
par
a.10
leg
isla
tio
nre
gu
lati
on
s to
WT
O
ado
pti
on
of
lw
sili
n
WP
Rep
ort
8
No
tify
rel
evan
t an
dA
sap
aft
er
a
No
TA
nee
ded
Leg
alW
P R
epo
rt
Dra
ftL
aw o
nfr
amew
ork
fo
r b
usi
nes
sA
nn
exI
Att
ach
men
tB
usi
nes
sE
nte
rpri
ses
Ear
ly 2
004
No
TA
nee
ded
Fir
stq
uar
ter
2005
47 T
he r
epre
sent
ativ
e of
Cam
bodi
a sa
id th
at C
ambo
dia
had
not y
et d
evel
oped
any
trad
e re
med
y le
gisl
atio
n. A
ccor
ding
to C
ambo
dia'
s le
gisl
atio
n ag
enda
, the
law
on
anti-
dum
ping
and
coun
terv
ailin
gm
easu
res
and
the
law
on
safe
guar
dm
easu
res
wer
e no
tex
pect
ed t
o be
app
rove
d un
til t
he s
econ
d ha
lfof
200
4.
He
adde
d th
at C
ambo
dia
wou
ld a
pply
saf
egua
rd, a
nti-
dum
ping
or
coun
terv
ailin
g m
easu
res
cons
iste
nt w
ith th
eW
TO
Agr
eem
ents
, inc
ludi
ng th
eir
proc
edur
al a
spec
ts, a
s a
Mem
ber
of th
eW
TO
.
48 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
that
Cam
bodi
a w
ould
not
app
ly a
ny a
nti-
dum
ping
, cou
nter
vaili
ng o
r sa
fegu
ard
mea
sure
unt
il it
had
notif
ied
and
impl
emen
ted
appr
opri
ate
law
s an
dre
gula
tions
in
conf
orm
ity w
ith t
hepr
ovis
ions
of
the
WT
O A
gree
men
ts o
n th
eIm
plem
enta
tion
ofA
rtic
le V
I, o
n Su
bsid
ies
and
Cou
nter
vaili
ng M
easu
res,
and
on S
afeg
uard
s.In
the
ela
bora
tion
of a
ny l
egis
latio
n co
ncer
ning
suc
h an
ti-du
mpi
ng,
coun
terv
ailin
g an
d sa
fegu
ard
mea
sure
s C
ambo
dia
wou
ld e
nsur
e th
eir
full
conf
orm
ity w
ith t
he r
elev
ant
WT
Opr
ovis
ions
, inc
ludi
ngA
rtic
les
VI
and
XIX
of
the
GA
TT
199
4 an
d th
eA
gree
men
ts o
n th
e Im
plem
enta
tion
of A
rtic
le V
I, th
e A
gree
men
t on
Subs
idie
s an
d C
ount
erva
iling
Mea
sure
s an
dth
e A
gree
men
t on
Saf
egua
rds.
A
fter
suc
h le
gisl
atio
n w
as i
mpl
emen
ted,
Cam
bodi
a w
ould
als
oon
ly a
pply
any
ant
i-du
mpi
ngdu
ties,
cou
nter
vaili
ngdu
ties
and
safe
guar
d m
easu
res
infu
ll co
nfor
mity
with
the
rele
vant
WT
O p
rovi
sion
s.T
heW
orki
ng P
arty
took
note
of th
ese
com
mitm
ents
.
52
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Sp
ecia
lE
con
om
icZ
on
es
WP
Rep
ort
p
ara.
15149
and
An
nex
IA
ttac
hm
ent
Dra
ft L
aw o
n E
xpo
rt
Pro
cess
ing
Zo
nes
(wit
h C
DC
an
d M
IME
)
Asa
pN
oT
Aee
ded
nIn
term
inis
teri
al m
eeti
ng
s –
28 D
ec 2
004.
Dra
ft
Ver
sio
n 4
Leg
alfr
amew
ork
fo
r b
usi
nes
s
WP
Rep
ort
An
nex
I A
ttac
hm
ent
Dra
ft In
solv
ency
Law
Asa
pN
o T
A n
eed
edP
end
ing
deb
ates
at
the
inte
rmin
iste
rial
mee
tin
g a
t th
e O
CM
-1st
qu
arte
r 20
05
Leg
alfr
amew
ork
fo
r b
usi
nes
s
WP
Rep
ort
An
nex
I A
ttac
hm
ent
Dra
ft S
ecu
red
T
ran
sact
ion
Law
Asa
pT
A is
bei
ng
p
rovi
ded
Pen
din
g d
ebat
es a
t th
e in
term
inis
teri
al m
eeti
ng
at
the
OC
M-1
st q
uar
ter
2005
Leg
al
bu
sin
ess
WP
Rep
ort
Att
ach
men
tfr
amew
ork
for
An
nex
ID
raft
Co
mm
erci
alC
on
trac
ts L
awA
sap
No
TA
nee
ded
Leg
alW
P R
epo
rt
53
fram
ewo
rk f
or
bu
sin
ess
An
nex
I A
ttac
hm
ent
Dra
ft C
om
mer
cial
Lea
sin
g L
aw20
05N
o T
A n
eed
ed
49 T
he r
epre
sent
ativ
e of
Cam
bodi
a sa
id th
at th
e fr
ee z
ones
or s
peci
al e
cono
mic
are
as, i
nclu
ding
spe
cial
prom
otio
n zo
nes
esta
blis
hed
in a
ccor
danc
ew
ith th
e L
aw o
n In
vest
men
t whi
chit
esta
blis
hed
wou
ldbe
ful
ly s
ubje
ct to
the
cove
rage
of
WT
O A
gree
men
ts a
nd it
s co
mm
itmen
ts in
its
Prot
ocol
of
Acc
essi
on to
the
WT
O A
gree
men
t and
that
Cam
bodi
a w
ould
ensu
reen
forc
emen
t of
its
WT
Oob
ligat
ions
in
thos
e zo
nes
or a
reas
.In
add
ition
, in
acco
rdan
ce w
ith t
he (
draf
t) L
awon
Indu
stri
al Z
ones
,fro
m t
he d
ate
of a
cces
sion
goo
dspr
oduc
ed i
n an
ysu
ch z
ones
or
area
s un
der
tax
and
tari
ffpr
ovis
ions
tha
t ex
empt
im
port
s an
d im
port
ed i
nput
sfr
om t
arif
fs a
nd c
erta
in t
axes
wou
ld b
e su
bjec
t to
nor
mal
cus
tom
s fo
rmal
ities
whe
nen
teri
ng th
ere
st o
f C
ambo
dia,
incl
udin
g th
eap
plic
atio
nof
tari
ffs
and
taxe
s. T
heW
orki
ng P
arty
took
note
of
thes
e co
mm
itmen
ts.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Leg
alfr
amew
ork
fo
r W
P R
epo
rt
An
nex
I D
raft
Co
mm
Ag
ency
bu
sin
ess
Att
ach
men
t
erci
al L
aw20
05N
o T
A n
eed
ed
TR
IPS
: M
arks
W
P R
epo
rt
par
a. 2
0650
and
Tab
le 1
2
Pu
tin
forc
esu
b-
dec
ree
imp
lem
enti
ng
th
e L
aw o
n M
arks
2004
TA
is b
ein
g
pro
vid
ed
TR
IPS
:IP
Rb
ord
erm
easu
res
WP
Rt
epo
rp
ara.
19951
Dra
ftsu
b-d
ecre
eim
ple
men
tin
gsp
ecia
lbo
rder
mea
sure
sco
nta
ined
in L
awo
nM
arks
)
2004
TA
nee
ded
Will
fin
ish
s
(wit
hM
EF
54
ub
-dec
ree
com
bin
ing
bo
th it
ems
by
En
d D
ecem
ber
200
4
TB
TW
P R
epo
rt
Ext
end
AS
EA
N
Asa
pN
o T
A n
eed
ed
Mer
ge
issu
e u
nd
er M
IME
res
po
nsi
bili
ties
50 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
tha
t C
ambo
dia
wou
ld a
pply
the
Agr
eem
ent
on T
rade
-Rel
ated
Asp
ects
of
Inte
llect
ual
Prop
erty
Rig
hts
no l
ater
tha
n 1
Janu
ary
2007
acco
rdin
g to
the
Act
ion
Plan
in T
able
12
with
the
unde
rsta
ndin
g th
at d
urin
g th
is p
erio
d pr
otec
tion
for
inte
llect
ual p
rope
rty
righ
ts li
sted
in p
arag
raph
s 20
4 an
d 20
5 w
ould
be
appl
ied
inC
ambo
dia.
The
Wor
king
Part
y to
okno
teof
this
com
mitm
ent.
51 T
he r
epre
sent
ativ
e of
Cam
bodi
asa
id t
hat
the
draf
t L
awon
Cus
tom
s di
d no
t in
clud
e pr
ovis
ions
on
bord
er m
easu
res
as r
equi
red
by A
rtic
le 5
1-60
of t
heT
RIP
SA
gree
men
t. T
hene
cess
ary
bord
er m
easu
res
had
been
inc
orpo
rate
d in
the
Law
on M
arks
, T
rade
Nam
es a
nd A
cts
ofU
nfai
r C
ompe
titio
n (A
rtic
les
35-4
7).
In
addi
tion,
the
Law
on
Cop
yrig
hts
and
Rel
ated
Rig
hts
(Art
icle
63)
incl
uded
, by
refe
renc
e, a
ll bo
rder
mea
sure
s in
clud
ed in
the
Law
on
Mar
ks, T
rade
Nam
es a
nd A
cts
of U
nfai
r C
ompe
titio
n. H
e sa
w n
o ne
ed to
con
solid
ate
thes
e m
easu
res
in t
he n
ew L
aw o
n C
usto
ms,
as
the
draf
t L
aw (
Art
icle
8)
expl
icitl
y re
quir
ed t
he c
usto
ms
auth
oriti
es t
o ex
ecut
e al
l la
ws
of C
ambo
dia,
and
thi
s pr
ovis
ion
wou
ld b
e un
derp
inne
dby
a s
ub-D
ecre
e to
bepr
epar
ed b
y th
e D
epar
tmen
t of
Cus
tom
s an
d E
xcis
es, i
n co
llabo
ratio
nw
ith th
e M
inis
trie
s re
spon
sibl
e fo
r th
epr
otec
tion
of in
telle
ctua
l pro
pert
y.
Top
icW
TO
Ref
eren
ecT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
par
a 12
7co
nfo
rmas
sess
men
tag
reem
ents
toW
TO
Mem
b
52it
y
all
ers
(wit
hM
OI)
TR
AD
INW
P R
epo
rt
Ver
ify
and
mth
at a
ll re
gis
tere
d
ded
Mo
H h
as p
ut
in it
s p
rio
riti
es. A
men
din
g
55
GR
IGH
TS
par
a 44
53
&50
54
ake
sure
com
pan
ies
cou
ld
Asa
pN
ot
nee
leg
isla
tio
ns.
Will
req
ues
t W
HO
exp
erti
se t
o c
om
e an
d h
elp
.
52 C
ambo
dia
had
been
a m
embe
rof
the
Int
erna
tiona
l O
rgan
izat
ion
for
Stan
dard
izat
ion
(ISO
) si
nce
1 Ja
nuar
y 19
95 a
ndha
d ra
tifie
d th
e A
SEA
N F
ram
ewor
kA
gree
men
t on
Mut
ual
Rec
ogni
tion
Arr
ange
men
ts.
Impo
rted
goo
ds w
ere
subj
ect
to t
he s
ame
insp
ectio
n pr
oces
s as
dom
estic
ally
-pro
duce
d go
ods,
and
Cam
bodi
a w
ould
ext
end
any
Con
form
ity A
sses
smen
tA
gree
men
ts,
in p
artic
ular
tho
se f
ores
een
unde
r th
eA
SEA
N,
to a
ll M
embe
rs o
f th
eW
TO
. C
ambo
dia
reco
gniz
ed c
ertif
icat
es f
rom
thi
rd c
ount
ries
' cer
tific
atio
n bo
dies
pro
vide
dth
atth
ese
bodi
es h
ad r
ecei
ved
form
al a
ccre
dita
tion
from
int
erna
tiona
l or
reg
iona
l ac
cred
itatio
n bo
dies
, or
wer
e si
gnat
orie
s to
a m
utua
l re
cogn
ition
arr
ange
men
t. I
n th
e ca
se o
fph
arm
aceu
tical
pro
duct
s, la
bora
tory
test
ing
in C
ambo
dia
was
req
uire
dpr
ior
to r
egis
trat
ion
to c
heck
the
conf
orm
ity o
f th
e sa
mpl
es.
53 A
pro
hibi
tion
on c
ompa
nies
with
les
s th
an 5
1pe
r ce
nt C
ambo
dian
owne
rshi
p to
eng
age
in i
mpo
rt/e
xpor
t ac
tiviti
es f
or t
he s
ole
purp
ose
of r
e-se
lling
good
s w
ithou
t tr
ansf
orm
atio
nha
dbe
en a
bolis
hed
purs
uant
to a
Dec
lara
tion
of t
he M
inis
try
of C
omm
erce
of 2
5Ja
nuar
y 20
00.
He
conf
irm
ed t
hat
all
firm
s, f
orei
gnan
d do
mes
tic,
prop
erly
reg
iste
red
with
the
Min
istr
y of
Com
mer
ce,
coul
d en
gage
in
impo
rt a
nd e
xpor
t ac
tiviti
es o
f al
l ty
pes
of g
oods
exc
ept
mili
tary
equ
ipm
ent
and
narc
otic
dru
gs.
Tra
de i
n fo
rest
ry p
rodu
cts
coul
d on
ly b
eco
nduc
ted
by l
icen
sed
conc
essi
onai
res
(dom
estic
or
fore
ign)
acc
ordi
ng t
oA
rtic
le4,
Cha
pter
2 o
f Su
b-D
ecre
e N
o. 0
5 of
7 F
ebru
ary
2000
. A
fir
m c
ould
am
end
its r
egis
trat
ion
toin
clud
e im
port
and
exp
ort a
ctiv
ities
by
filin
g an
app
licat
ion
toam
end
its M
emor
andu
m a
ndA
rtic
les
of A
ssoc
iatio
n to
the
Min
istr
y of
Com
mer
ce.
The
am
ende
d re
gist
ratio
nw
ould
be
depo
site
d at
the
Off
ice
of C
omm
erci
al R
egis
try
at th
e M
inis
try.
54 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
tha
t it
was
not
the
int
ent
ofhi
s G
over
nmen
t th
at t
he c
urre
nt r
equi
rem
ents
for
im
port
atio
n of
pha
rmac
eutic
als
or o
fve
teri
nary
med
icin
essh
ould
dis
crim
inat
e ag
ains
t im
port
s.
In t
his
rega
rd, h
e fu
rthe
r co
nfir
med
tha
t no
lat
er t
han
1 Ju
ne 2
005,
Cam
bodi
a w
ould
am
end
its l
egis
latio
n, e
.g.,
the
Law
on
Dru
g M
anag
emen
tan
d Pr
akas
No.
82
of 3
1 M
arch
199
9 on
"Pr
oced
ures
for
Exp
orts
and
Im
port
s of
Pha
rmac
eutic
als"
, so
as n
ot to
abr
idge
the
righ
t to
impo
rt a
nd to
exp
ort,
and
that
any
reg
iste
red
entit
yco
uld
be th
e im
port
er o
r ex
port
er o
fre
cord
. H
e co
nfir
med
that
fro
m th
at d
ate,
Cam
bodi
a w
ould
ens
ure
that
its
law
s an
d re
gula
tions
rela
ting
to th
eri
ght t
o tr
ade
ingo
ods
and
all f
ees,
ch
arge
s or
taxe
s le
vied
on s
uch
righ
tsw
ould
be in
ful
l con
form
ityw
ithits
WT
O o
blig
atio
ns,i
nclu
ding
Art
icle
s V
III:
I(a)
, XI:
I an
d II
I:2
and
4 of
the
GA
TT
1994
and
that
it w
ould
also
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
eng
age
ini
and
exp
ort
typ
es o
f g
omp
ort
of
all
od
s
MIN
IST
RY
OF
EC
ON
OM
YA
ND
FIN
AN
CE
Pri
vati
zati
on
WP
Re
tP
rep
are
rep
n
refo
rm
1 y
afte
rac
cess
ion
and
ref
orm
po
rp
ara.
2555
ort
op
riva
tiza
tio
n a
nd
ea
rN
o T
A n
eed
ed
Cu
sto
ms
WP
et
Pas
sC
us
y 20
04va
luat
ion
Rp
or
par
a. 8
456,
9357
tom
sL
awan
d a
do
pt
imp
lem
enti
ng
reg
ula
tio
ns
Ear
lT
A r
ecei
ved
. F
urt
her
TA
n
eed
ed
Will
be
ado
pte
d b
y N
A b
yM
id 2
005
impl
emen
t suc
h la
ws
and
regu
latio
ns in
ful
l con
form
ity w
ith th
ese
oblig
atio
ns.
He
conf
irm
ed in
part
icul
ar th
at th
isw
as r
ecog
nize
das
with
outp
reju
dice
to r
equi
rem
ents
that
mig
htbe
plac
ed o
n di
stri
buto
rs o
f do
mes
tican
dim
port
edpr
oduc
ts to
pre
serv
epl
ant,
anim
al o
r hu
man
hea
lth, l
ife,
or
safe
ty.
The
Wor
king
Par
ty to
okno
te o
f th
ese
com
mitm
ents
.
55 T
he r
epre
sent
ativ
e of
Cam
bodi
a st
ated
tha
t hi
s G
over
nmen
t w
ould
ens
ure
the
tran
spar
ency
of
its o
ngoi
ngpr
ivat
izat
ion
prog
ram
me
and
wou
ld k
eep
WT
O M
embe
rs i
nfor
med
of
prog
ress
in
the
refo
rm o
f its
econ
omic
and
tra
de r
egim
es.
He
stat
ed t
hat
his
Gov
ernm
ent
wou
ldpr
ovid
e pe
riod
ic r
epor
ts t
oW
TO
Mem
bers
on
deve
lopm
ents
in
its p
rogr
amm
e of
priv
atiz
atio
n as
lon
g as
the
pri
vatiz
atio
npr
ogra
mm
e w
ould
be i
n ex
iste
nce,
alo
ng t
he l
ines
ofth
at a
lrea
dy p
rovi
ded
to t
heW
orki
ng P
arty
.H
e al
so s
tate
d th
athi
s G
over
nmen
t w
ould
prov
ide
peri
odic
rep
orts
on o
ther
issu
es r
elat
ed to
its
econ
omic
ref
orm
as
rele
vant
to it
s ob
ligat
ions
unde
r th
eW
TO
. T
heW
orki
ng P
arty
took
note
of
thes
e co
mm
itmen
ts.
56 I
n re
ply,
the
rep
rese
ntat
ive
of C
ambo
dia
said
tha
t th
e ne
w d
raft
Law
on
Cus
tom
s ha
d be
en a
ppro
ved
by t
he C
ounc
il of
Min
iste
rsan
dw
as p
lann
edfo
r ad
optio
nby
the
Nat
iona
lA
ssem
bly
by J
uly
2004
. R
egul
atio
nsw
ould
be
deve
lope
dup
on c
ompl
etio
n of
the
draf
ting
of t
hene
w L
aw, i
nclu
ding
reg
ulat
ions
to
impl
emen
t A
rtic
les
17-2
4of
the
Agr
eem
ent,
as
wel
l as
the
Int
erpr
etat
ive
Not
es i
n A
nnex
Iof
the
Agr
eem
ent
and
wou
ld b
e m
ade
avai
labl
e to
WT
OM
embe
rs f
orre
view
.H
e em
phas
ized
tha
t C
ambo
dia
wou
ld s
eek
a tr
ansi
tion
peri
od.
An
Act
ion
Plan
for
the
Im
plem
enta
tion
of t
he C
usto
ms
Val
uatio
nA
gree
men
t w
as p
rovi
ded
in d
ocum
ent
WT
/AC
C/K
HM
/13,
and
a r
evis
ed a
ctio
n pl
an i
n do
cum
ent
WT
/AC
C/K
HM
/13/
Rev
.1.
56
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Cu
sto
mva
luat
ioW
P R
epo
rt
par
a.84
Su
bm
it C
ust
om
s L
awan
dim
ple
me
reg
ula
tio
ns
to W
TO
Asa
p a
fter
ad
op
tio
no
fl
reg
s
No
TA
ees n
nti
ng
aw a
nd
u
lati
on
nd
ed
Cu
sto
mva
luat
ion
WP
Rep
ort
p
ara.
91
Elim
inat
e va
luat
ion
o
fau
tom
oac
cord
ing
nat
ion
al o
rig
in
On
dat
e o
f N
oT
Aee
s58
bile
sto
acce
ssio
nn
ded
Cu
sto
ms
WP
Rep
ort
P
rep
are
Cu
Dec
emb
er
57
valu
atio
nT
able
7, p
ara
sto
ms
team
an
d
dep
artm
enta
l pla
n t
o
2003
So
me
TA
s re
ceiv
ed. M
ore
57 T
he r
epre
sent
ativ
e of
Cam
bodi
ast
ated
that
legi
slat
ion
onth
e va
luat
ion
of im
port
sfo
r cu
stom
s an
d ta
xatio
npu
rpos
esco
nfor
min
g to
the
requ
irem
ents
of
the
Agr
eem
ent o
n C
usto
ms
Val
uatio
n w
ould
be
enac
ted
by 1
Jul
y 20
04.
Cam
bodi
aw
ould
prog
ress
ivel
y im
plem
ent t
he A
gree
men
t on
Cus
tom
s V
alua
tion
in a
ccor
danc
e w
ith th
e ac
tion
plan
in T
able
7, a
nd w
ithth
e un
ders
tand
ing
that
duri
ng t
his
peri
od t
he s
cope
of i
mpl
emen
tatio
n of
oth
er a
spec
tsof
the
Agr
eem
ent,
as d
escr
ibed
in
para
grap
hs 8
9, 9
0an
d 91
wou
ldbe
appl
ied
byC
ambo
dia.
Full
impl
emen
tatio
nw
ill s
tart
fro
m 1
Jan
uary
200
9.T
he W
orki
ng P
arty
took
note
of
this
com
mitm
ent.
58 D
urin
g th
is p
erio
d, C
ambo
dia
wou
ld e
nsur
e th
at i
ts r
egul
atio
ns u
nder
cur
rent
leg
isla
tion
in p
lace
and
add
ition
al l
egis
latio
n im
plem
ente
d du
ring
the
tra
nsiti
onco
ncer
ning
cus
tom
sva
luat
ion
wou
ldbe
app
lied
on a
non
-dis
crim
inat
ory
basi
s to
all
impo
rts.
In
part
icul
ar, t
hepr
actic
e of
var
ying
the
met
hod
ofva
luat
ion
for
impo
rts
of a
utom
obile
s ba
sed
onna
tiona
lor
igin
wou
ld b
e el
imin
ated
fro
m t
he d
ate
of a
cces
sion
, an
d C
ambo
dia
wou
ldon
ly a
pply
cust
oms
dutie
s on
im
port
edgo
ods
on a
non
-dis
crim
inat
ory
basi
s fr
om a
ll W
TO
Mem
ber
coun
trie
s.A
ny c
hang
es m
ade
in it
s la
ws,
reg
ulat
ions
and
prac
tice
duri
ng th
e tr
ansi
tion
peri
odw
ould
not r
esul
t in
a le
sser
deg
ree
of c
onsi
sten
cy w
ith th
e pr
ovis
ions
of
the
Agr
eem
ent
on C
usto
ms
Val
uatio
n th
an e
xist
ed o
n th
e da
te o
f ac
cess
ion.
Cam
bodi
a w
ould
par
ticip
ate
inth
ew
ork
of th
e C
omm
ittee
on
Cus
tom
s V
alua
tion.
He
adde
d th
at C
ambo
dia
wou
ld s
eek
out a
ll av
aila
ble
tech
nica
l ass
ista
nce
to e
nsur
e th
at it
s ca
paci
ty to
ful
ly im
plem
ent t
he A
gree
men
t upo
n ex
pira
tion
of th
e tr
ansi
tion
peri
od is
ass
ured
.
Top
icW
TO
Ref
eren
ecT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
9359
imp
lem
ent
valu
tio
ntr
ansi
tio
np
lan
TA
req
au
ired
.
Cu
sto
ms n
WP
Rep
ort
60
Co
mp
lete
th
e re
form
20
04-2
005
Ad
dit
ion
alT
Aed
valu
atio
par
a 51
pro
gra
mn
eed
Cu
sto
mva
luat
ioW
P R
epo
rt
Tab
le 7
, par
a 93
s nco
ntr
act
req
ure
d
61,1
0562
If P
SI c
on
tin
ues
, ad
apt
new
toW
TO
rule
s
Dec
emb
er20
03N
ot
i
58
59 T
he r
epre
sent
ativ
e of
Cam
bodi
ast
ated
that
legi
slat
ion
onth
e va
luat
ion
of im
port
sfo
r cu
stom
s an
d ta
xatio
npu
rpos
esco
nfor
min
g to
the
requ
irem
ents
of
the
Agr
eem
ent o
n C
usto
ms
Val
uatio
n w
ould
be
enac
ted
by 1
Jul
y 20
04.
Cam
bodi
aw
ould
prog
ress
ivel
y im
plem
ent t
he A
gree
men
t on
Cus
tom
s V
alua
tion
in a
ccor
danc
e w
ith th
e ac
tion
plan
in T
able
7, a
nd w
ithth
e un
ders
tand
ing
that
duri
ng t
his
peri
od t
he s
cope
of i
mpl
emen
tatio
n of
oth
er a
spec
tsof
the
Agr
eem
ent,
as d
escr
ibed
in
para
grap
hs 8
9, 9
0an
d 91
wou
ldbe
appl
ied
byC
ambo
dia.
Full
impl
emen
tatio
nw
ill s
tart
fro
m 1
Jan
uary
200
9.T
he W
orki
ng P
arty
took
note
of
this
com
mitm
ent.
60 T
he r
epre
sent
ativ
e of
Cam
bodi
a sa
id t
hat
the
Cus
tom
s an
d E
xcis
eD
epar
tmen
t ha
d em
bark
edon
a C
usto
ms
Ref
orm
and
Mod
erni
zatio
nPr
ogra
mm
e ai
med
at
crea
ting
a m
oder
ncu
stom
s ad
min
istr
atio
n co
mbi
ning
eff
icie
ntre
venu
e co
llect
ion
and
prot
ectio
n at
the
bor
der
with
the
need
s of
the
pri
vate
sec
tor
for
fast
, str
aigh
tfor
war
d an
d re
liabl
e cu
stom
s se
rvic
es.
Maj
or e
lem
ents
of
the
refo
rm p
rogr
amm
e in
clud
ed s
tren
gthe
ning
of
the
lega
l fr
amew
ork,
rest
ruct
urin
gof
the
cus
tom
sta
riff
, mod
erni
zatio
n an
dst
ream
linin
gof
cus
tom
s pr
oced
ures
,ex
pans
ion
of in
tern
atio
nalr
elat
ions
, eff
ectiv
e en
forc
emen
t, au
tom
ated
sys
tem
s an
d pr
oced
ures
, mea
sure
s to
str
engt
hen
the
Cus
tom
s an
d E
xcis
eD
epar
tmen
t, be
tter
serv
ice
to th
epu
blic
and
trad
e fa
cilit
atio
n.A
sum
mar
y of
the
refo
rm s
trat
egy
was
pro
vide
d in
docu
men
tWT
/AC
C/K
HM
/6,A
nnex
IV.
61 T
he r
epre
sent
ativ
e of
Cam
bodi
ast
ated
that
legi
slat
ion
onth
e va
luat
ion
of im
port
sfo
r cu
stom
s an
d ta
xatio
npu
rpos
esco
nfor
min
g to
the
requ
irem
ents
of
the
Agr
eem
ent o
n C
usto
ms
Val
uatio
n w
ould
be
enac
ted
by 1
Jul
y 20
04.
Cam
bodi
aw
ould
prog
ress
ivel
y im
plem
ent t
he A
gree
men
t on
Cus
tom
s V
alua
tion
in a
ccor
danc
e w
ith th
e ac
tion
plan
in T
able
7, a
nd w
ithth
e un
ders
tand
ing
that
duri
ng t
his
peri
od t
he s
cope
of i
mpl
emen
tatio
n of
oth
er a
spec
tsof
the
Agr
eem
ent,
as d
escr
ibed
in
para
grap
hs 8
9, 9
0an
d 91
wou
ldbe
appl
ied
byC
ambo
dia.
Full
impl
emen
tatio
nw
ill s
tart
fro
m 1
Jan
uary
200
9.T
he W
orki
ng P
arty
took
note
of
this
com
mitm
ent.
62 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
that
fro
m th
e da
te o
f ac
cess
ion
his
Gov
ernm
ent w
ould
take
ful
l res
pons
ibili
ty to
ens
ure
that
the
oper
atio
nsof
the
pres
hipm
ent i
nspe
ctio
nco
mpa
nies
, if
reta
ined
by C
ambo
dia
mee
t th
e re
quir
emen
ts o
f th
eW
TO
Agr
eem
ents
, inc
ludi
ng t
he e
stab
lishm
ent
of c
harg
es a
nd f
ees
cons
iste
ntw
ith A
rtic
le V
III
of t
heG
AT
T19
94,
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Cu
sto
mva
luat
ion
WP
Rep
ort
T
able
7,p
raP
rovi
de
trai
ni
on
new
Cu
sto
man
dva
2004
T
A
sa
9363
ng
sL
awlu
atio
np
roce
du
res
nee
ded
Cu
sto
ms
WP
Rep
ort
Im
ple
men
t
59
valu
atio
nT
able
7, p
ara
9364
Po
stC
lear
ance
Au
dit
p
rog
ram
2004
T
A n
eed
ed
due
proc
ess
and
tran
spar
ency
req
uire
men
tsof
the
WT
O A
gree
men
ts,i
n pa
rtic
ular
Art
icle
X o
f th
e G
AT
T 1
994,
and
the
prov
isio
ns o
f th
e A
gree
men
t on
the
Impl
emen
tatio
n of
Art
icle
V
II o
f th
e G
AT
T 1
994
and
the
Agr
eem
ent
on P
resh
ipm
ent
Insp
ectio
n.H
e fu
rthe
r co
nfir
med
tha
t C
ambo
dia’
s pr
e-sh
ipm
ent
insp
ectio
n re
gim
e w
ould
be
tem
pora
ry a
nd w
ould
onl
yop
erat
e un
til s
uch
time
as t
he C
usto
ms
and
Exc
ise
Dep
artm
ent
was
abl
e to
car
ry o
ut t
he f
unct
ions
pre
sent
ly p
erfo
rmed
by
pre-
ship
men
t in
spec
tion
serv
ice
prov
ider
s.
The
Wor
king
Part
y to
ok n
ote
of th
ese
com
mitm
ents
.
63 T
he r
epre
sent
ativ
e of
Cam
bodi
ast
ated
that
legi
slat
ion
onth
e va
luat
ion
of im
port
sfo
r cu
stom
s an
d ta
xatio
npu
rpos
esco
nfor
min
g to
the
requ
irem
ents
of
the
Agr
eem
ent o
n C
usto
ms
Val
uatio
n w
ould
be
enac
ted
by 1
Jul
y 20
04.
Cam
bodi
aw
ould
prog
ress
ivel
y im
plem
ent t
he A
gree
men
t on
Cus
tom
s V
alua
tion
in a
ccor
danc
e w
ith th
e ac
tion
plan
in T
able
7, a
nd w
ithth
e un
ders
tand
ing
that
duri
ng t
his
peri
od t
he s
cope
of i
mpl
emen
tatio
n of
oth
er a
spec
tsof
the
Agr
eem
ent,
as d
escr
ibed
in
para
grap
hs 8
9, 9
0an
d 91
wou
ldbe
appl
ied
byC
ambo
dia.
Full
impl
emen
tatio
nw
ill s
tart
fro
m 1
Jan
uary
200
9.T
he W
orki
ng P
arty
took
note
of
this
com
mitm
ent.
64 T
he r
epre
sent
ativ
e of
Cam
bodi
ast
ated
that
legi
slat
ion
onth
e va
luat
ion
of im
port
sfo
r cu
stom
s an
d ta
xatio
npu
rpos
esco
nfor
min
g to
the
requ
irem
ents
of
the
Agr
eem
ent o
n C
usto
ms
Val
uatio
n w
ould
be
enac
ted
by 1
Jul
y 20
04.
Cam
bodi
aw
ould
prog
ress
ivel
y im
plem
ent t
he A
gree
men
t on
Cus
tom
s V
alua
tion
in a
ccor
danc
e w
ith th
e ac
tion
plan
in T
able
7, a
nd w
ithth
e un
ders
tand
ing
that
duri
ng t
his
peri
od t
he s
cope
of i
mpl
emen
tatio
n of
oth
er a
spec
tsof
the
Agr
eem
ent,
as d
escr
ibed
in
para
grap
hs 8
9, 9
0an
d 91
wou
ldbe
appl
ied
byC
ambo
dia.
Full
impl
emen
tatio
nw
ill s
tart
fro
m 1
Jan
uary
200
9.T
he W
orki
ng P
arty
took
note
of
this
com
mitm
ent.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Cu
sto
mva
luat
ion
WP
Rep
ort
T
able
7, p
ara
Pre
par
e an
dp
lish
s
93
ub o
nM
anu
alo
nL
awC
ust
om
san
dre
late
dR
egu
lati
on
s
2004
-200
5 N
ot
nee
ded
Cu
sto
ms
WP
Rep
ort
raB
egin
auto
mat
ecu
sto
ms
pro
ces
syst
em p
roj
2005
)
valu
atio
nT
able
7,p
a93
d sin
gec
t (t
o b
e co
mp
lete
d b
y en
d
2004
T
A n
eed
ed
Cu
sto
ms
valu
atio
nW
PR
epo
rT
able
7,p
a93
ou
trea
chrm
pri
vate
sec
tor
of
chan
ges
in v
alu
atio
n
2004
T
A n
eed
edt ra
Beg
intr
ade
pro
gra
mto
info
pro
ced
ure
s
Cu
sto
ms
valu
atio
nW
PR
epo
rT
able
7,p
a93
on
s
als,
firm
sti
ng
iden
tica
lla
rg
oo
ds,
and
imp
ort
ers
on
s
Dec
emb
er20
04N
o T
A n
eed
ed
t raA
pp
lytr
ansa
cti
valu
eto
larg
em
ult
inat
ion
imp
or
or
sim
i
enti
tled
to
ex
emp
ti
60
Cu
sto
ms
valu
atio
nW
P R
epo
rt
Tab
le 7
, par
a E
stab
lish
dat
a b
ase
of
com
plia
nt
valu
atio
ns
to
2005
S
om
e T
Are
ceiv
ed. M
ore
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
93
adm
inis
ter
am
on
ito
rva
lun
d atio
nis
sues
TA
nee
ded
Ru
les
of
Ori
gin
WP
Rep
ort
p
ara
9665
toW
TO
rule
so
fo
rig
inD
ecem
ber
2004
No
TA
nee
ded
M
oC
,ME
F t
o m
eet
to w
ork
ou
t th
e d
etai
ls
Co
nfo
rm
61
Sm
ug
glin
g
WP
Rep
ort
par
a 98
66E
qu
ip e
nfo
rcem
ent
team
sA
SA
P
TA
nee
ded
Sm
ug
glin
gan
d is
sues
of
cust
om
sad
min
istr
atio
n
WP
Rep
ort
p
ara.
9967
Est
ablis
h d
isp
ute
se
ttle
men
tm
ech
anis
m
Dec
emb
er20
04N
o T
A n
eed
ed
65 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
tha
thi
sG
over
nmen
t in
tend
ed t
o co
mpl
y fu
lly w
ith t
hepr
ovis
ions
of t
heW
TO
Agr
eem
ent
on R
ules
of
Ori
gin
inth
e ap
plic
atio
n of
pr
efer
entia
l and
non-
pref
eren
tial r
ules
of
orig
in a
ndw
ould
be a
ble
todo
so
afte
r en
actm
ent o
f th
ene
wC
usto
ms
Law
and
its
impl
emen
ting
regu
latio
ns,n
o la
ter
than
1 Ja
nuar
y20
05.
In
part
icul
ar,
the
requ
irem
ents
of
Art
icle
2(h
)an
dA
nnex
II
para
grap
h 3(
d) o
f th
e A
gree
men
t, w
hich
req
uire
pro
visi
on,
upon
req
uest
, of
an a
sses
smen
t of
the
ori
gin
of t
he i
mpo
rt a
ndou
tline
the
ter
ms
unde
rw
hich
it
will
be
prov
ided
,wou
ldbe
est
ablis
hed
in C
ambo
dia’
sL
aw o
n C
usto
ms
from
the
dat
e of
its
pro
mul
gatio
n, o
r if
nec
essa
ry,b
y go
vern
men
tdec
ree,
no
late
r th
an 1
Jan
uary
2004
. T
he W
orki
ngPa
rty
took
note
of th
is c
omm
itmen
t.
66 C
once
rnin
g ef
fort
s to
com
bat
smug
glin
g –
an i
ssue
rai
sed
by s
ever
al M
embe
rs a
s co
mpe
titio
n fr
om s
mug
gled
goo
ds w
as i
mpe
ding
reg
ular
mar
ket
acce
ss –
the
rep
rese
ntat
ive
of
Cam
bodi
a sa
id t
hat
Gov
ernm
ent
Ord
erN
o.02
iss
ued
by t
he C
ounc
il of
Min
iste
rs o
n 19
Dec
embe
r20
01ha
d la
unch
ed a
maj
or a
nti-
smug
glin
gin
itiat
ive.
T
he G
over
nmen
t O
rder
dire
cted
the
mili
tary
, the
pol
ice
and
loca
l aut
hori
ties
to c
o-op
erat
ew
ith a
nd a
ssis
t the
Cus
tom
s an
d E
xcis
e D
epar
tmen
tin
anti-
smug
glin
g op
erat
ions
.A
n In
ter-
Min
iste
rial
Com
mis
sion
had
been
set
up
unde
r th
edi
rect
ion
of t
heM
inis
ter
of E
cono
my
and
Fina
nce
to p
lan,
co-
ordi
nate
, and
to
mon
itor
this
ini
tiativ
e.
At
the
sam
e tim
e, s
teps
had
been
tak
en t
o st
reng
then
the
Cus
tom
s an
dE
xcis
eD
epar
tmen
t an
d to
im
prov
e its
lev
el o
f in
tegr
ity.
The
ant
i-sm
uggl
ing
initi
ativ
e pr
ovid
ed g
ener
ous
fina
ncia
l re
war
ds t
o cu
stom
s of
fici
als
part
icip
atin
g in
su
cces
sful
ant
i-sm
uggl
ing
oper
atio
ns.
Cam
bodi
aw
as a
lso
seek
ing
tech
nica
l ass
ista
nce
to e
quip
enf
orce
men
t tea
ms
with
app
ropr
iate
tool
s an
d fa
cilit
ies.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Tar
iffs
on
te
xtile
san
dcl
oth
ing
WP
Rep
ort
p
ara.
165
Ap
ply
all
tar
on
anM
FN
68if
fsb
asis
Dat
e o
f ac
cess
ion
No
TA
nee
ded
M
EF
will
loo
k in
to it
.
TR
IPS
bm
easu
res
WP
Rep
ort
p
ara
199
Dra
ftsu
b-d
ece
imp
lem
enti
ng
2T
A n
eed
ed
Ref
er t
o t
he
62
ord
er69
re
spec
ial b
ord
er
mea
sure
s co
nta
ined
in
Law
on
Mar
ks(w
ith
MO
C)
004
pre
vio
us
IPR
sec
tio
n
67 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
tha
t in
orde
r to
add
ress
con
cern
s ab
out
smug
glin
g an
dot
her
cust
oms
adm
inis
trat
ion
issu
es b
roug
htto
itsat
tent
ion,
his
Gov
ernm
ent w
asin
the
pro
cess
of e
stab
lishi
ng a
dis
pute
set
tlem
ent
mec
hani
smw
ithin
the
Cam
bodi
an C
usto
ms
Serv
ice
to a
ccep
t an
d ac
t up
on c
ompl
aint
s ab
out
cust
oms
prac
tices
fro
m t
rade
rs a
nd
gove
rnm
ents
.T
his
mec
hani
sm w
as a
utho
rize
d in
the
new
Cus
tom
s L
aw a
nd w
ould
be e
stab
lishe
d pr
ior
to 1
Jan
uary
2005
. T
heW
orki
ng P
arty
took
note
of th
is c
omm
itmen
t.
68 T
he r
epre
sent
ativ
e of
Cam
bodi
a sa
id th
at te
xtile
s an
d cl
othi
ng w
ere
not s
ubje
ct to
any
spec
ial r
egim
ein
his
cou
ntry
. A
lthou
gh im
port
dut
ies
on s
uch
prod
ucts
wer
e re
lativ
ely
high
in C
ambo
dia
– on
ave
rage
34 p
er c
ent
for
garm
ents
and
14
per
cent
onya
rn a
nd f
abri
cs –
mos
t C
ambo
dian
garm
ents
man
ufac
ture
rs w
ere
regi
ster
ed i
nves
tmen
t fi
rms
prod
ucin
gfo
rex
port
, and
thus
exe
mpt
fro
mpa
ying
dut
y on
impo
rted
raw
mat
eria
ls a
nd in
term
edia
te g
oods
. C
ambo
dia
had
conc
lude
d an
Agr
eem
ent R
elat
ing
toT
rade
in C
otto
n,W
ool,
Man
-mad
eFi
bre,
Non
-Cot
ton
Veg
etab
le F
ibre
and
Silk
Ble
nd T
extil
e, a
nd T
extil
e Pr
oduc
ts w
ith th
e U
nite
d St
ates
. T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
tha
t C
ambo
dia
wou
ld e
xten
d th
esa
me
pref
eren
tial t
arif
f ra
tes
acco
rded
to U
.S.-
orig
in te
xtile
and
app
arel
pro
duct
s un
der
the
Agr
eem
ent t
o al
l WT
O M
embe
rs o
n an
MFN
bas
is u
pon
acce
ssio
n.U
nder
the
term
s of
the
bila
tera
l ag
reem
ent,
the
Uni
ted
Stat
es h
adpl
aced
quan
titat
ive
rest
rict
ions
on
13 c
ateg
orie
s of
app
arel
fro
m C
ambo
dia.
E
xpor
ts o
f ce
rtai
n te
xtile
pro
duct
s to
Can
ada
wer
e al
sore
stra
ined
unde
r a
bila
tera
l ag
reem
ent.
An
EU
-Cam
bodi
a te
xtile
agr
eem
ent
allo
wed
quot
a-fr
ee a
cces
s to
the
EU
mar
ket,
but
set u
pdo
uble
-che
ckin
g (s
urve
illan
ce)
onni
ne c
ateg
orie
sas
wel
l as
adm
inis
trat
ive
coop
erat
ion,
with
the
view
tove
rify
and
asc
erta
in C
ambo
dian
orig
inof
the
good
s.
69 T
he r
epre
sent
ativ
e of
Cam
bodi
asa
id t
hat
the
draf
t L
awon
Cus
tom
s di
d no
t in
clud
e pr
ovis
ions
on
bord
er m
easu
res
as r
equi
red
by A
rtic
le 5
1-60
of t
heT
RIP
SA
gree
men
t. T
hene
cess
ary
bord
er m
easu
res
had
been
inc
orpo
rate
d in
the
Law
on M
arks
, T
rade
Nam
es a
nd A
cts
ofU
nfai
r C
ompe
titio
n (A
rtic
les
35-4
7).
In
addi
tion,
the
Law
on
Cop
yrig
hts
and
Rel
ated
Rig
hts
(Art
icle
63)
incl
uded
, by
refe
renc
e, a
ll bo
rder
mea
sure
s in
clud
ed in
the
Law
on
Mar
ks, T
rade
Nam
es a
nd A
cts
of U
nfai
r C
ompe
titio
n. H
e sa
w n
o ne
ed to
con
solid
ate
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Per
mit
for
fore
ign
Ser
vice
nt
Ch
ang
efe
eo
rkp
erm
itto
fact
th
at it
will
issu
edfo
ra
Ref
er t
o M
OS
AL
VY
se
63
wo
rker
s
ssc
hed
ule
:h
ori
zon
tal
com
mit
me
for
wre
flec
tth
eb
ep
erio
d
2004
No
TA
nee
ded
ct
ion
.
thes
e m
easu
res
in t
he n
ew L
aw o
n C
usto
ms,
as
the
draf
t L
aw (
Art
icle
8)
expl
icitl
y re
quir
ed t
he c
usto
ms
auth
oriti
es t
o ex
ecut
e al
l la
ws
of C
ambo
dia,
and
thi
s pr
ovis
ion
wou
ld b
e un
derp
inne
dby
a s
ub-D
ecre
e to
bepr
epar
ed b
y th
e D
epar
tmen
t of
Cus
tom
s an
d E
xcis
es, i
n co
llabo
ratio
nw
ith th
e M
inis
trie
s re
spon
sibl
e fo
r th
epr
otec
tion
of in
telle
ctua
l pro
pert
y.
70
Pres
ence
of
natu
ral p
erso
ns(4
) U
nbou
nd e
xcep
tfor
mea
sure
s co
ncer
ning
the
entr
y an
d te
mpo
rary
sta
y of
a n
atur
alpe
rson
who
falls
inon
e of
the
follo
win
gca
tego
ries
:
Bus
ines
s vi
sito
rs
Ana
tura
l per
son
who
:
-en
ters
C
ambo
dia
for
the
purp
oses
ofpa
rtic
ipat
ing
in
busi
ness
mee
tings
,es
tabl
ishi
ng
busi
ness
co
ntac
ts
incl
udin
gne
gotia
tions
for
the
sal
e of
serv
ices
and
/or
othe
r si
mila
r ac
tiviti
es;
-st
ays
in
Cam
bodi
a w
ithou
t re
ceiv
ing
inco
me
from
with
in C
ambo
dian
sou
rces
;-
does
not
eng
age
in m
akin
gdi
rect
sal
es t
oth
e ge
nera
l pub
lic o
r su
pply
ing
serv
ices
.
Ent
ryvi
sa f
orbu
sine
ssvi
sito
rs s
hall
be v
alid
for
a pe
riod
of90
day
s fo
r an
initi
al s
tay
of30
days
,whi
ch m
ay b
e ex
tend
ed.
(4)
Unb
ound
, exc
ept f
orm
easu
res
affe
ctin
gth
e ca
tego
ries
ref
erre
d to
und
er m
arke
tac
cess
.
64
Pers
ons
resp
onsi
ble
for
setti
ngup
of
a co
mm
erci
al e
stab
lishm
ent:
Pers
ons
wor
king
in a
n ex
ecut
ive
or m
anag
eria
lpo
sitio
n,re
ceiv
ing
rem
uner
atio
n fr
oman
entit
y as
def
ined
belo
w,w
ho a
re
resp
onsi
ble
for
the
setti
ng u
p, in
Cam
bodi
a, o
f a
com
mer
cial
pre
senc
e of
a
serv
ice
prov
ider
of a
Mem
ber,
that
will
su
ppor
t em
ploy
men
t of
pers
ons
desc
ribe
din
a, b
, and
c b
elow
. T
he s
ubje
ct p
erso
nsar
eno
t sub
ject
to a
max
imum
dur
atio
nof
stay
.
Intr
a-C
orpo
rate
Tra
nsfe
rees
Nat
ural
per
sons
who
hav
e be
en e
mpl
oyed
by a
ju
ridi
calp
erso
nof
ano
ther
mem
ber
for
a pe
riod
of
not l
ess
than
1 ye
aran
d w
ho s
eek
tem
pora
ry e
ntry
to p
rovi
de s
ervi
ces
thro
ugh
a br
anch
, sub
sidi
ary
and
affi
liate
in C
ambo
dia
and
who
are
:
a)E
xecu
tives
: with
out r
equi
ring
com
plia
nce
with
labo
ur m
arke
t tes
ts, p
erso
ns w
ithin
an
orga
niza
tion
who
pri
mar
ily d
irec
t the
man
agem
ent o
f th
e or
gani
zatio
n, e
xerc
ise
wid
e la
titud
e in
deci
sion
-mak
ing,
and
rece
ive
only
gen
eral
sup
ervi
sion
or
dire
ctio
n fr
omhi
gher
-lev
el e
xecu
tives
, the
bo
ard
of d
irec
tors
, or
shar
ehol
ders
of
the
busi
ness
. E
xecu
tives
wou
ldno
t dir
ectly
perf
orm
task
s re
late
d to
the
actu
al s
uppl
yof
a s
ervi
ceor
serv
ices
of
the
orga
niza
tion.
65
b)M
anag
ers:
with
out r
equi
ring
com
plia
nce
with
labo
ur m
arke
t tes
ts, n
atur
al p
erso
nsem
ploy
edby
a ju
ridi
cal e
ntity
and
who
poss
ess
know
ledg
e at
an
adva
nced
leve
lof
expe
rtis
e or
prop
riet
ary
know
ledg
eof
a
juri
dica
l ent
ity p
rodu
ct, s
ervi
ce, r
esea
rch,
equi
pmen
t, te
chni
ques
,or
man
agem
ent,
and
who
prim
arily
dir
ect t
he o
rgan
izat
ion
or a
dep
artm
ent o
f th
eor
gani
zatio
n;su
perv
ise
and
cont
rolt
he w
ork
ofot
her
supe
rvis
ory,
pro
fess
iona
lor
man
ager
ial
empl
oyee
s; h
ave
the
auth
ority
to h
ire
and
fire
or r
ecom
men
d hi
ring
, fir
ing
or o
ther
pers
onne
l act
ions
; and
exe
rcis
edi
scre
tiona
ry a
utho
rity
ove
r da
y-to
-day
oper
atio
ns.
The
y do
not
incl
ude
firs
t-lin
esu
perv
isor
s, u
nles
s th
e em
ploy
ees
supe
rvis
ed a
re p
rofe
ssio
nals
, nor
do
they
incl
ude
empl
oyee
s w
ho p
rim
arily
per
form
task
sne
cess
ary
for
the
supp
lyof
the
serv
ice.
c) S
peci
alis
ts:
Nat
ural
per
sons
, with
in a
nor
gani
zatio
nw
ho p
osse
sskn
owle
dge
at a
nad
vanc
ed le
vel o
f co
ntin
ued
expe
rtis
e an
dw
hopo
sses
s pr
opri
etar
y kn
owle
dge
of th
eor
gani
zatio
n's
serv
ices
, res
earc
heq
uipm
ent,
tech
niqu
es,o
r m
anag
emen
t.
Tem
pora
ry r
esid
ency
and
wor
kpe
rmit
isre
quir
edfo
r th
e na
tura
lper
sons
in th
eca
tego
ries
def
ined
und
er in
tra-
corp
orat
etr
ansf
eree
s. S
uch
perm
its a
re is
sued
for
tw
o ye
ars
and
may
be
rene
wed
ann
ually
up
to m
axim
um o
f to
tal f
ive
year
s.
66
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
s70o
f tw
o y
e
67
ars
Insu
ran
ce a
nd
re
-in
sura
nce
Ser
vice
ssc
hed
ule
:fi
nan
cial
serv
ices
71
Rev
ise
law
on
Insu
ran
ce a
nd
p
rep
are
reg
ula
tio
ns
2004
-200
7T
A is
bei
ng
p
rovi
ded
.
Furt
her
TA
71 (a)
Lif
e in
sura
nce
serv
ices
(CPC
8121
1)(1
)N
atur
al o
rju
ridi
cal p
erso
n ca
n en
ter
into
cont
ract
onl
yw
ith th
e in
sura
nce
com
pani
es li
cens
ed to
car
ry o
ut in
sura
nce
busi
ness
in th
eK
ingd
om o
f C
ambo
dia
(2)
Non
e(3
) N
one
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
e ho
rizo
ntal
sec
tion
(1)
Non
e
(2)
Non
e(3
) N
one
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
eho
rizo
ntal
sec
tion
(b)
Non
-lif
e in
sura
nce
serv
ices
(CPC
812
9)(1
)N
one
for
mar
ine,
avi
atio
n, a
nd tr
ansp
ort
insu
ranc
e fr
om 1
Jan
uary
2009
,or
once
a
law
has
been
pas
sed,
the
appr
opri
ate
regu
latio
ns in
pla
ce a
nd a
loca
l fir
mau
thor
ized
,whi
chev
er c
omes
fir
st.
Unt
il th
e co
nditi
ons
abov
e ar
e m
et,
mar
ine,
avi
atio
n an
d tr
ansp
ort i
nsur
ance
serv
ices
may
be
supp
lied
by in
sura
nce
com
pani
es li
cens
ed to
car
ry o
ut in
sura
nce
busi
ness
in th
eK
ingd
om o
f C
ambo
dia.
For
all o
ther
non-
life
insu
ranc
e se
rvic
es,
natu
ral o
rju
ridi
cal p
erso
ns c
an e
nter
into
cont
ract
onl
yw
ith th
e in
sura
nce
com
pani
es li
cens
ed to
car
ry o
ut in
sura
nce
busi
ness
in th
eK
ingd
om o
f C
ambo
dia.
(2)
Non
e(3
) N
one
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
e ho
rizo
ntal
sec
tion
(1)
Non
e
(2)
Non
e(3
) N
one
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
eho
rizo
ntal
sec
tion
68
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts
69
and
sta
tus
need
ed
(c)
Rei
nsur
ance
and
retr
oces
sion
(CPC
812
99)
(1)
Non
e, e
xcep
t com
pani
es m
ust r
eins
ure
20%
of th
eir
risk
in C
ambo
dia
Re
until
31
Dec
embe
r20
08.
Insu
ranc
e co
ntra
cts
of to
tal s
um in
sure
dof
less
than
or e
qual
to U
SD 5
00,0
00 m
ust b
ere
insu
red
loca
llyun
til 3
1D
ecem
ber
2008
. T
here
afte
r,N
one
(2)
Non
e(3
)N
one,
exc
ept c
ompa
nies
mus
t rei
nsur
e20
%of
thei
rri
sk in
Cam
bodi
a R
e un
til
1 Ja
nuar
y20
08.
The
reaf
ter,
Non
e.(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n.
(1)
Non
e
(2)
Non
e(3
) N
one
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
eho
rizo
ntal
sec
tion.
(d
)Se
rvic
es a
uxili
ary
to in
sura
nce
(inc
ludi
ngbr
okin
g an
d ag
ency
serv
ices
)(C
PC 8
140)
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n.
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
d in
the
hori
zont
al s
ectio
n.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Mo
ney
an
d
cap
ital
Ser
vice
sch
edfi
nan
ci
Dra
ftla
wg
ove
rnm
ent
secu
riti
esan
TA
ispr
ovid
e
70
mar
kets
su
le:
al
so
n do
nn
on
-go
vern
men
tal
2005
bein
gd.
Furt
her
TA
Nee
ded
72
71 (j)
Settl
emen
t and
cle
arin
g se
rvic
esfo
rfi
nanc
ial a
sset
s, in
clud
ing
secu
ritie
s, d
eriv
ativ
e pr
oduc
ts,
and
othe
r ne
gotia
ble
inst
rum
ents
;
(f)
Tra
ding
for
ow
n ac
coun
tor
for
acco
unto
f cu
stom
ers,
whe
ther
on a
n ex
chan
ge, i
n an
over
-the
-co
unte
r m
arke
t or
othe
rwis
e,th
efo
llow
ing
(A)
mon
ey m
arke
t ins
trum
ents
(inc
ludi
ng c
hequ
es,b
ills,
cert
ific
ates
of
depo
sits
);(B
) f
orei
gn e
xcha
nge
(C)
der
ivat
ive
prod
ucts
incl
udin
g, b
ut n
otlim
ited
to,
futu
res
and
optio
ns;
(D)
exc
hang
e ra
te a
nd in
tere
stra
te in
stru
men
ts, i
nclu
ding
prod
ucts
suc
h as
sw
aps,
forw
ard
rate
agr
eem
ents
;(E
) t
rans
fera
ble
secu
ritie
s;(F
)ot
her
nego
tiabl
e in
stru
men
tsan
d fi
nanc
ial a
sset
s, in
clud
ing
bulli
on
(g)
Part
icip
atio
n in
issu
esof
all
kind
sof
sec
uriti
es, i
nclu
ding
unde
rwri
ting
and
plac
emen
t as
agen
cy (
whe
ther
pub
licly
or
priv
atel
y) a
ndpr
ovis
ion
ofse
rvic
es r
elat
ed to
suc
h is
sues
;
(h)
Mon
ey b
roki
ng;
(i)
Ass
et m
anag
emen
t, su
ch a
s ca
shor
por
tfol
io m
anag
emen
t, al
lfo
rms
of c
olle
ctiv
e in
vest
men
tm
anag
emen
t, pe
nsio
nfu
ndm
anag
emen
t, cu
stod
ial,
depo
sito
ry a
nd tr
usts
ervi
ces;
(1)
Unb
ound
(2)
Non
e(3
)U
nbou
nd f
or s
ubse
ctor
s (f
) –
(l),
until
the
Gov
ernm
ent o
f C
ambo
dia
dete
rmin
esw
hat t
ypes
of e
ntiti
es c
an c
ondu
ct th
ese
serv
ices
, the
rel
ated
law
s an
dre
gula
tion
are
esta
blis
hed,
and
suc
hbu
sine
ss is
au
thor
ized
by
the
gove
rnm
ento
r ot
her
rele
vant
des
igna
ted
auth
ority
.(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n.
(1)
Non
e(2
) N
one
(3)
Non
e
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
eho
rizo
ntal
sec
tion
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
serv
ices
72in
gin
secu
riti
es,b
ear
min
dth
atit
will
trig
ger
co
mm
itm
ents
MIN
IST
RY
OF
AG
RIC
ULT
UR
E, F
OR
ES
TR
YA
ND
FIS
HE
RIE
S
Pes
tici
des
risk
WP
Rep
ort
p
ara.
7D
evel
op
cu
nd
erta
ke r
isk
asse
ssm
ent
573
(see
als
o
apac
ity
to
asse
ssm
ent
Jun
e 20
05
TA
nee
ded
T
A t
o b
e p
rocu
red
un
der
Au
stra
lia p
roje
ct (
CA
TA
F)
73 T
he M
inis
try
of A
gric
ultu
re,
Fore
stry
and
Fis
heri
es (
MA
FF)
issu
ed l
icen
ses
(aut
hori
zatio
n le
tters
) fo
r im
port
atio
n of
agr
icul
tura
l in
puts
, pr
inci
pally
pes
ticid
es a
nd f
ertil
izer
, in
ac
cord
ance
with
the
Sub
-Dec
ree
on S
tand
ards
for
and
Man
agem
ent
of A
gric
ultu
ral
Mat
eria
ls o
f 28
Oct
ober
199
8.
Firm
s w
ishi
ng t
o im
port
sho
uld
be r
egis
tere
dw
ith t
he M
inis
try
ofC
omm
erce
and
the
prod
ucts
shou
ld b
e re
gist
ered
and
aut
hori
zed
by th
e M
inis
try
ofA
gric
ultu
re, F
ores
try
and
Fish
erie
s (M
AFF
).A
tpre
sent
,15
com
pani
es w
ere
auth
oriz
ed to
impo
rtag
ricu
ltura
l in
puts
. R
egis
trat
ion
was
als
o re
quir
edfo
r th
e pr
oduc
ts t
obe
im
port
ed.
The
qua
ntity
of
pest
icid
es i
mpo
rted
by
indi
vidu
al c
ompa
nies
cou
ld b
e re
stri
cted
due
to
safe
tyre
quir
emen
ts, i
nclu
ding
app
ropr
iate
sto
rage
faci
litie
s, a
s w
ell
as d
omes
ticde
man
d.
The
Dep
artm
ent
of A
gron
omy
and
Agr
icul
tura
l L
and
Impr
ovem
ent
at t
he M
AFF
wou
ld e
stim
ate
the
need
for
pes
ticid
es o
n an
ann
ual
basi
s, t
akin
g in
to a
ccou
nt f
acto
rs s
uch
as t
he s
ize
of t
he c
ultiv
ated
are
as,
type
of
crop
pla
nted
, an
d se
ason
al i
nfec
tion
ratio
s.
In t
he f
utur
e,C
ambo
dia
was
con
side
ring
eith
er t
o al
low
reg
iste
red
good
s in
to w
areh
ouse
s an
d re
leas
e fo
r sa
le o
r us
e af
ter
insp
ectio
n, o
r to
allo
w f
or a
ccre
dita
tion
ofpe
stic
ides
thr
ough
bila
tera
lag
reem
ents
with
the
cou
ntri
es o
f or
igin
. C
ambo
dia
was
not
in
a po
sitio
n to
und
erta
ke r
isk
asse
ssm
ent
at p
rese
nt,
and
wou
ld w
elco
me
assi
stan
ce i
n de
velo
ping
suc
h ca
paci
ty.
Fert
ilize
r im
port
s w
ere
licen
ced
to m
inim
ize
the
envi
ronm
enta
l im
pact
of
soil
degr
adat
ion,
aci
dity
or
salin
ity.
74 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
that
, no
late
r th
an 1
June
200
5, C
ambo
dia
wou
ld e
limin
ate
quan
titat
ive
rest
rict
ions
on
the
impo
rtat
ion
of f
ertil
izer
s, p
estic
ides
and
oth
erag
ricu
ltura
l in
puts
as
desc
ribe
d in
par
agra
phs
75 a
nd 7
6 an
d es
tabl
ish
a W
TO
-con
sist
ent
met
hod
of r
egis
trat
ion
and
revi
ewof
im
port
ed a
gric
ultu
ral
chem
ical
s. R
equi
rem
ents
rel
ated
to t
hesa
fe s
tora
ge a
nddo
mes
tic d
istr
ibut
ion
of t
hese
prod
ucts
wou
ld a
pply
only
to
dom
estic
dis
trib
utor
sor
to
impo
rter
s us
ing
bond
ed s
tora
ge p
rior
to
dom
estic
dis
trib
utio
n.H
efu
rthe
r co
nfir
med
tha
t, in
the
con
text
of
Cam
bodi
a's
impl
emen
tatio
n of
the
WT
OA
gree
men
t on
Tec
hnic
al B
arri
ers
to T
rade
, tha
t fr
om 1
Jan
uary
200
7 C
ambo
dia
wou
ldre
ly o
n th
epr
ovis
ions
of
that
Agr
eem
ent
to r
egul
ate
dom
estic
and
int
erna
tiona
l tr
ade
in t
hese
ite
ms,
and
tha
t th
e co
mm
itmen
t co
ntai
ned
inpa
ragr
aph
50 w
ould
als
o ap
ply
to r
equi
rem
ents
for
regi
stra
tion
and
licen
sing
fee
s fo
r im
port
ers
of a
gric
ultu
rali
nput
s fr
om 1
Jun
e 20
05.
The
Wor
king
Part
y to
okno
teof
thes
e co
mm
itmen
ts.
72
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
par
a 77
74)
QR
s o
n
fert
ilize
r
oth
erin
pu
ts
tE
limin
ate
QR
ses
tab
lish
WT
O
for
reg
istr
are
view
s,p
esti
cid
es a
nd
ag
.
WP
Rep
or
par
a. 7
7 an
d-
con
sist
ent
met
ho
ds
tio
n a
nd
Jun
e 20
05
TA
nee
ded
T
A t
o b
e p
rocu
red
un
der
Au
stra
lia p
roje
ct (
CA
TA
F)
Fis
hin
g
WP
A
nn
exI
Att
ach
men
t
Th
e d
raft
was
sen
t b
ack
fro
m T
he
Nat
ion
al
Ass
emb
ly. I
t w
illb
ere
-deb
ated
atM
inis
ters
to
ref
lect
issu
es o
f d
ecen
tral
izat
ion
.
Rep
ort
Dra
ft F
ish
erie
s L
aw20
04N
o T
A n
eed
ed
the
Co
un
cilo
f
SP
S
WP
T
able
11,
p
ara
14275
Des
ign
pla
nt
pes
t an
d d
isea
se c
on
tro
l p
rog
ram
an
d o
ther
2004
bei
ng
pro
vid
ed
fro
m N
Z A
id.
Mo
re T
A n
eed
ed
ll ta
ke p
lace
.
Au
said
SP
S C
apac
ity
Bu
ildin
g P
roje
ct h
as s
ho
wn
inte
rest
in h
elp
ing
. SP
S A
ctio
n is
alr
ead
y p
rep
ared
by
MA
FF
.
Rep
ort
mea
sure
s
So
me
TA
sar
eM
AF
F is
no
t su
re t
hat
NZ
Aid
II w
i
73
MIN
IST
RY
OF
IND
US
TR
Y, M
INE
AN
D E
NE
RG
Y
75 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
that
Cam
bodi
a w
ould
impl
emen
t pro
gres
sive
ly th
e pr
ovis
ions
of
the
WT
O A
gree
men
ton
the
App
licat
ion
of S
anita
ry a
nd P
hyto
sani
tary
Mea
sure
sw
ithin
the
timet
able
pro
vide
d fo
rin
the
Act
ion
Plan
for
Im
plem
enta
tion
in T
able
11,
and
wou
ld e
nsur
e fu
ll im
plem
enta
tion
of th
e A
gree
men
t no
late
r th
an 1
Jan
uary
200
8,an
dw
ith th
eun
ders
tand
ing
that
dur
ing
this
peri
od th
e sc
ope
of im
plem
enta
tion
ofot
her
aspe
cts
of th
e A
gree
men
t, as
des
crib
edin
par
agra
ph14
1w
ould
be a
pplie
d by
Cam
bodi
a.H
efu
rthe
r co
nfir
med
tha
t C
ambo
dia
shou
ldco
nsul
t w
ithW
TO
Mem
bers
upon
requ
est
if t
hey
deem
ed t
hat
any
mea
sure
s ap
plie
d du
ring
the
tra
nsiti
on p
erio
d af
fect
ed t
heir
tra
dene
gativ
ely.
The
Wor
king
Part
yto
ok n
ote
of th
ese
com
mitm
ents
.
Top
icW
TO
Ref
eren
ecT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
TB
T
WP
Rep
ort
Tab
le10
par
a13
op
erat
ion
al t
he
TB
T
En
qu
iry
Po
i, 176
Est
ablis
h a
nd
mak
e
nt
2004
T
A n
eed
ed
TB
TW
PR
epo
rp
ara
12777
AN
asse
ssm
ent
agre
emen
ts t
o a
ll
2004
No
TA
nee
ded
t
Ext
end
AS
Eco
nfo
rmit
y
WT
O m
emb
ers
(wit
hM
OC
)
74
TB
T
WP
Rep
ort
Tab
le 1
0,
par
a 13
178
Su
bm
issi
on
of
stat
emen
t o
n
imp
lem
enta
tio
n (
per
G
/TB
T/1
)
Dat
e o
f ac
cess
ion
TA
nee
ded
76 T
he r
epre
sent
ativ
e of
Cam
bodi
ast
ated
that
Cam
bodi
a w
ould
prog
ress
ivel
y im
plem
entt
he A
gree
men
t on
Tec
hnic
alB
arri
ers
toT
rade
in a
ccor
danc
e w
ith th
e ac
tion
plan
in T
able
10an
d w
ith th
e un
ders
tand
ing
that
duri
ng th
ispe
riod
the
scop
eof
impl
emen
tatio
n of
othe
r as
pect
sof
the
Agr
eem
ent,
as d
escr
ibed
inpa
ragr
aph
129
wou
ld b
e ap
plie
dby
Cam
bodi
a. F
ull
impl
emen
tatio
nw
ill s
tart
fro
m 1
Jan
uary
200
7 w
ithou
t rec
ours
e to
any
fur
ther
tran
sitio
nal p
erio
d. T
heW
orki
ng P
arty
took
note
of
this
com
mitm
ent.
77 C
ambo
dia
had
been
a m
embe
rof
the
Int
erna
tiona
l O
rgan
izat
ion
for
Stan
dard
izat
ion
(ISO
) si
nce
1 Ja
nuar
y 19
95 a
ndha
d ra
tifie
d th
e A
SEA
N F
ram
ewor
kA
gree
men
t on
Mut
ual
Rec
ogni
tion
Arr
ange
men
ts.
Impo
rted
goo
ds w
ere
subj
ect
to t
he s
ame
insp
ectio
n pr
oces
s as
dom
estic
ally
-pro
duce
d go
ods,
and
Cam
bodi
a w
ould
ext
end
any
Con
form
ity A
sses
smen
tA
gree
men
ts,
in p
artic
ular
tho
se f
ores
een
unde
r th
eA
SEA
N,
to a
ll M
embe
rs o
f th
eW
TO
. C
ambo
dia
reco
gniz
ed c
ertif
icat
es f
rom
thi
rd c
ount
ries
' cer
tific
atio
n bo
dies
pro
vide
dth
atth
ese
bodi
es h
ad r
ecei
ved
form
al a
ccre
dita
tion
from
int
erna
tiona
l or
reg
iona
l ac
cred
itatio
n bo
dies
, or
wer
e si
gnat
orie
s to
a m
utua
l re
cogn
ition
arr
ange
men
t. I
n th
e ca
se o
fph
arm
aceu
tical
pro
duct
s, la
bora
tory
test
ing
in C
ambo
dia
was
req
uire
dpr
ior
to r
egis
trat
ion
to c
heck
the
conf
orm
ity o
f th
e sa
mpl
es.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
TB
T
WP
Rep
tT
able
10p
ara
1
Dra
ftL
aIn
du
stri
alS
tan
ard
san
dim
ple
men
tre
gs;
com
pli
wit
hC
od
eo
fP
rac
Jun
e 20
04
TA
prov
ide
TA
no
r ,31
w o
nd in
gan
ceG
oo
dti
ce
isbe
ing
d.Fu
rthe
ree
ded
TB
TW
PR
epo
rtT
able
par
a 13
1
Dev
elo
pm
ete
chn
ical
reg
con
for
asse
ssp
roce
du
res
200
-200
5T
An
prov
ide
10,
nt
of
san
dm
ity
men
t
4is
bei
gd.
Furt
her
TA
nee
ded
TB
T10
,p
ara
131
fS
tan
dar
ds
Bu
lleti
n
2004
TA
nee
ded
W
PR
epo
rtT
able
Pu
blic
atio
no
Dec
emb
er
TB
T
WP
Re
tT
able
10,
S
taff
tra
inin
g o
n T
BT
00
5T
Ais
75
po
r
par
a 13
1 im
ple
men
tati
on
2004
-2be
ing
prov
ided
. Fur
ther
T
A n
eede
d
78 T
he r
epre
sent
ativ
e of
Cam
bodi
ast
ated
that
Cam
bodi
a w
ould
prog
ress
ivel
y im
plem
entt
he A
gree
men
t on
Tec
hnic
alB
arri
ers
toT
rade
in a
ccor
danc
e w
ith th
e ac
tion
plan
in T
able
10an
d w
ith th
e un
ders
tand
ing
that
duri
ng th
ispe
riod
the
scop
eof
impl
emen
tatio
n of
othe
r as
pect
sof
the
Agr
eem
ent,
as d
escr
ibed
inpa
ragr
aph
129
wou
ld b
e ap
plie
dby
Cam
bodi
a. F
ull
impl
emen
tatio
nw
ill s
tart
fro
m 1
Jan
uary
200
7 w
ithou
t rec
ours
e to
any
fur
ther
tran
sitio
nal p
erio
d. T
heW
orki
ng P
arty
took
note
of
this
com
mitm
ent.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
TR
IPW
PR
epo
rtT
able
12
and
D
raft
su
b-d
eim
ple
men
tin
2004
T
A
S
par
a 20
679
cree
gth
eL
aw o
n P
aten
ts
nee
ded
TR
IPS
po
rp
ara
18580
he
sm
ust
rog
ram
ss y
be
elig
ible
fo
r p
aten
t p
rote
ctio
n
2004
T
A n
eed
edW
PR
et
Su
b-d
ecre
eim
ple
men
tin
gt
Law
on
Pat
ent
spec
ify
that
com
pu
ter
pan
db
usi
nes
met
ho
ds
ma
76
79 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
tha
t C
ambo
dia
wou
ld a
pply
the
Agr
eem
ent
on T
rade
-Rel
ated
Asp
ects
of
Inte
llect
ual
Prop
erty
Rig
hts
no l
ater
tha
n 1
Janu
ary
2007
acco
rdin
g to
the
Act
ion
Plan
in T
able
12
with
the
unde
rsta
ndin
g th
at d
urin
g th
is p
erio
d pr
otec
tion
for
inte
llect
ual p
rope
rty
righ
ts li
sted
in p
arag
raph
s 20
4 an
d 20
5 w
ould
be
appl
ied
inC
ambo
dia.
The
Wor
king
Part
y to
okno
teof
this
com
mitm
ent.
80 T
he r
epre
sent
ativ
e of
Cam
bodi
a sa
id t
hat
the
Law
on
Pate
nts,
Util
ity M
odel
s an
dIn
dust
rial
Des
igns
had
bee
n pr
omul
gate
don
22
Janu
ary
2003
.D
raft
ing
of i
mpl
emen
ting
regu
latio
nsun
der
this
Law
wou
ld c
omm
ence
in
the
firs
t qu
arte
r of
200
3.
The
Law
aff
orde
d pa
tent
prot
ectio
n to
inv
entio
ns w
hich
inv
olve
d an
inv
entiv
e st
ep a
ndw
ere
indu
stri
ally
appl
icab
le.
Pat
ents
cou
ldno
t be
iss
ued
for
disc
over
ies,
sci
entif
ic t
heor
ies
and
mat
hem
atic
alm
etho
ds;
sch
emes
, ru
les
and
met
hods
for
doi
ngbu
sine
ss,
perf
orm
ing
inte
llect
ual
activ
ities
, or
play
ing
gam
es, a
nd c
ompu
ter
prog
ram
s; d
iagn
ostic
, the
rape
utic
and
sur
gica
l met
hods
for
the
trea
tmen
t of
hum
an b
eing
s an
d an
imal
s; in
vent
ions
con
trar
y to
pub
lic o
rder
or m
oral
ity;
and
bio
logi
cal
met
hods
for
bre
edin
gpl
ants
and
ani
mal
s, o
ther
tha
n m
icro
biol
ogic
al m
etho
ds, a
s w
ell
as p
rodu
cts
deri
ved
from
the
se m
etho
ds.
In r
espo
nse
to a
spe
cifi
cqu
estio
n co
ncer
ning
the
exc
lusi
ons,
he
adde
d th
at t
he a
lgor
ithm
s us
ed i
n co
mpu
ter
prog
ram
s, n
ot t
he p
rogr
amm
espe
r se
, wer
e in
elig
ible
for
pat
ent
prot
ectio
n, a
nd t
hat
"sch
emes
or
met
hods
for
doi
ng b
usin
ess"
wer
e on
ly i
nelig
ible
for
pat
ent
prot
ectio
n to
the
ext
ent
that
the
y w
ere
lack
ing
indu
stri
al a
pplic
atio
n.
The
sedi
stin
ctio
ns w
ould
be
clar
ifie
d in
the
impl
emen
ting
regu
latio
ns to
the
Law
.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
MIN
IST
RY
OF
INT
ER
IOR
Res
idS
ervi
cesc
hed
uh
ori
zon
tal
Dev
elo
p a
nd
im
ple
men
tre
per
mit
sco
nsi
wit
h t
he
ho
77
ency
per
mit
s le:
com
mit
men
t
sid
ency
sten
tri
zon
tal
2004
T
A n
eed
ed
81
Pres
ence
of
natu
ral p
erso
ns(4
) U
nbou
nd e
xcep
tfor
mea
sure
s co
ncer
ning
the
entr
y an
d te
mpo
rary
sta
y of
a n
atur
alpe
rson
who
falls
inon
e of
the
follo
win
gca
tego
ries
:
Bus
ines
s vi
sito
rs
Ana
tura
l per
son
who
:
-en
ters
C
ambo
dia
for
the
purp
oses
ofpa
rtic
ipat
ing
in
busi
ness
mee
tings
,es
tabl
ishi
ng
busi
ness
co
ntac
ts
incl
udin
gne
gotia
tions
for
the
sal
e of
serv
ices
and
/or
othe
r si
mila
r ac
tiviti
es;
-st
ays
in
Cam
bodi
a w
ithou
t re
ceiv
ing
inco
me
from
with
in C
ambo
dian
sou
rces
;-
does
not
eng
age
in m
akin
gdi
rect
sal
es t
oth
e ge
nera
l pub
lic o
r su
pply
ing
serv
ices
.
Ent
ryvi
sa f
orbu
sine
ssvi
sito
rs s
hall
be v
alid
for
a pe
riod
of90
day
s fo
r an
initi
al s
tay
of30
days
,whi
ch m
ay b
e ex
tend
ed.
(4)
Unb
ound
, exc
ept f
orm
easu
res
affe
ctin
gth
e ca
tego
ries
refe
rred
to u
nder
mar
ket a
cces
s.
78
Pers
ons
resp
onsi
ble
for
setti
ngup
of
a co
mm
erci
al e
stab
lishm
ent:
Pers
ons
wor
king
in a
n ex
ecut
ive
or m
anag
eria
lpo
sitio
n, re
ceiv
ing
rem
uner
atio
n fr
om a
n en
tity
as d
efin
ed b
elow
, who
are
resp
onsi
ble
for t
hese
tting
up,
in C
ambo
dia,
of a
com
mer
cial
pres
ence
of a
ser
vice
pro
vide
r of a
Mem
ber,
that
w
ill s
uppo
rt e
mpl
oym
ent o
f per
sons
des
crib
ed in
a, b
, and
c b
elow
. T
he s
ubje
ct p
erso
ns a
re n
otsu
bjec
t to
a m
axim
um d
urat
ion
of s
tay.
Intr
a-C
orpo
rate
Tra
nsfe
rees
Nat
ural
per
sons
who
hav
e be
en e
mpl
oyed
by a
ju
ridi
calp
erso
nof
ano
ther
mem
ber
for
a pe
riod
of n
ot le
ss th
an 1
yea
r an
d w
ho s
eek
tem
pora
ryen
try
to p
rovi
de s
ervi
ces
thro
ugh
a br
anch
,su
bsid
iary
and
affi
liate
in C
ambo
dia
and
who
are:
a)E
xecu
tives
: with
out r
equi
ring
com
plia
nce
with
labo
ur m
arke
t tes
ts, p
erso
ns w
ithin
an
orga
niza
tion
who
pri
mar
ily d
irec
t the
man
agem
ent o
f th
e or
gani
zatio
n, e
xerc
ise
wid
ela
titud
e in
dec
isio
n-m
akin
g, a
nd r
ecei
veon
lyge
nera
l sup
ervi
sion
or
dire
ctio
nfr
om h
ighe
r-le
vel e
xecu
tives
, the
boa
rdof
dire
ctor
s, o
r sh
areh
olde
rs o
fth
e bu
sine
ss.
Exe
cutiv
es w
ould
notd
irec
tly p
erfo
rm ta
sks
rela
ted
to th
e ac
tual
supp
lyof
a s
ervi
ce o
r se
rvic
es o
f th
eor
gani
zatio
n.
79
80
s81co
mm
itm
ents
b)
Man
ager
s:w
ithou
t req
uiri
ngco
mpl
ianc
ew
ith la
bour
mar
ket t
ests
, nat
ural
per
sons
empl
oyed
by a
juri
dica
l ent
ity a
nd w
hopo
sses
skn
owle
dge
at a
n ad
vanc
ed le
vel o
f ex
pert
ise
orpr
opri
etar
ykn
owle
dge
of a
juri
dica
l ent
itypr
oduc
t, se
rvic
e, r
esea
rch,
equ
ipm
ent,
tech
niqu
es, o
r m
anag
emen
t,an
dw
ho p
rim
arily
dire
ct th
e or
gani
zatio
nor
a d
epar
tmen
t of
the
orga
niza
tion;
sup
ervi
se a
nd c
ontr
ol th
ew
ork
ofot
her
supe
rvis
ory,
prof
essi
onal
or
man
ager
ial
empl
oyee
s; h
ave
the
auth
ority
to h
ire
and
fire
or r
ecom
men
dhi
ring
, fir
ing
orot
her
pers
onne
lac
tions
; and
exe
rcis
e di
scre
tiona
ry a
utho
rity
over
day
-to-
day
oper
atio
ns.
The
y do
not
incl
ude
firs
t-lin
e su
perv
isor
s, u
nles
s th
eem
ploy
ees
supe
rvis
edar
e pr
ofes
sion
als,
nor
do
they
incl
ude
empl
oyee
sw
ho p
rim
arily
perf
orm
task
sne
cess
ary
for
the
supp
lyof
the
serv
ice.
c)Sp
ecia
lists
: N
atur
al p
erso
ns, w
ithin
an
orga
niza
tion
who
pos
sess
know
ledg
e at
an
adva
nced
leve
l of
cont
inue
d ex
pert
ise
and
who
poss
ess
prop
riet
ary
know
ledg
e of
the
orga
niza
tion'
s se
rvic
es, r
esea
rch
equi
pmen
t,te
chni
ques
, or
man
agem
ent.
Tem
pora
ry r
esid
ency
and
wor
kpe
rmit
isre
quir
edfo
r th
e na
tura
lper
sons
in th
eca
tego
ries
def
ined
und
er in
tra-
corp
orat
etr
ansf
eree
s. S
uch
perm
its a
re is
sued
for
two
year
s an
d m
ay b
e re
new
ed a
nnua
lly u
p to
max
imum
of
tota
l fiv
e ye
ars.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Vis
Ser
vice
sch
edu
ho
rizo
nta
nt
Ad
apt
visa
req
uir
eme
mak
eth
emco
nsi
ho
rizo
nta
l
as le
: lco
mm
itm
es
nts
to
sten
tw
ith
com
mit
men
ts
2004
No
TA
nee
ded
Vis
as
:
com
mit
men
t
on
issu
ing
2-y
ear
visa
2004
No
TA
nee
ded
S
ervi
cesc
hed
ule
ho
rizo
nta
l
s
Issu
eP
rakh
ap
roce
du
res
for
MIN
IY
OF
JU
ST
ICE
S
TR
Ap
pea
lsp
roce
ssW
P R
epo
rt
par
a36
Dra
ft L
aw o
n J
ud
icia
l O
rgan
izat
ion
mb
erN
o82
Dec
e20
04T
An
eed
ed
Civ
il L
awA
nn
ex I
Att
ach
men
t
Dra
ft a
nd
imp
lem
ent
Civ
il C
od
e 20
04T
A is
bei
ng
p
rovi
ded
.W
P R
epo
rt
8182 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
tha
t a
syst
em o
f ap
peal
fro
m a
dmin
istr
ativ
e de
cisi
ons
inm
atte
rs c
over
ed b
yW
TO
Agr
eem
ents
to
an i
ndep
ende
nt t
ribu
nal,
as p
rovi
ded
for
in A
rtic
le X
of
the
GA
TT
and
othe
rW
TO
Agr
eem
ents
, was
in
the
proc
ess
ofbe
ing
esta
blis
hed
in th
e dr
aft L
aw o
n Ju
dici
alO
rgan
izat
ion,
and
wou
ldbe
oper
atio
nal b
y D
ecem
ber
2004
. In
add
ition
, the
Com
mer
cial
Cou
rt s
yste
m w
ould
be e
stab
lishe
d by
1 Ja
nuar
y20
05.
The
Wor
king
Part
y to
ok n
ote
of th
is c
omm
itmen
t.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Civ
il L
awW
P R
epo
rt
An
nex
I D
raft
an
d im
ple
men
tC
ivil
Pro
ce
TA
Att
ach
men
td
ura
lC
od
e
2004
isbe
ing
prov
ided
.
Cri
min
al L
awep
ort
Att
ach
men
t
Dra
ft C
rim
inal
Co
de
2005
Ais
bein
gpr
ovid
ed.
WP
RA
nn
ex I
T
Cri
min
al L
awo
rtn
alP
roce
du
ral C
od
e 20
05T
A is
bei
ng
prov
ided
.W
PR
epA
nn
ex I
Att
ach
men
t
Dra
ft C
rim
i
MIN
IST
RY
OF
LA
BO
R
Mo
vem
ent
of
fore
ign
lab
or
ho
rizo
nta
lco
mm
itm
ent
clas
sifi
cati
on
s fo
r in
tra-
corp
ora
te
2004
TA
to
be
sou
gh
t fr
om
ILO
an
do
ther
do
no
rs
Mo
ve t
o 2
005
Ser
vice
ssc
hed
ule
:
s
Est
ablis
h
tran
sfer
ees
Mo
vem
ent
of
fore
ign
lab
or
sch
edu
le:
ho
rizo
nta
lco
mm
itm
ent
s
Co
de
to a
llow
wo
rkp
erm
its
to b
e g
ran
ted
fo
r 2
year
s
2004
No
TA
nee
ded
M
ove
to
200
5 S
ervi
ces
Am
end
Lab
or
82
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Em
plo
yme
agen
cies
Ser
vice
sch
edo
ther
bu
sin
ese
rvic
ep
lace
me
and
sup
serv
ices
of
per
son
nel
nt
su
le:
ss s: nt
ply
oA
men
dL
abo
rC
de
soas
toal
low
fo
r th
e o
per
atio
no
fth
ese
com
pan
ies
inC
amb
od
ia
2004
No
TA
nee
ded
M
ove
to
200
5
MIN
IST
RY
OF
LA
ND
MA
NA
GE
ME
NT,
UR
BA
ION
AN
D C
ON
ST
RU
CT
ION
N
IZA
T
Arc
hit
ectu
re
arch
itec
tura
lse
rvic
es83
on
in
by
Kh
mer
arc
hit
ect
for
big
pro
ject
s.”
2004
TA
nee
ded
Ser
vice
ssc
hed
ule
:R
epea
lpro
visi
Ro
yalD
ecre
ere
qu
irin
g “
sig
nat
ure
8383 (d)
Arc
hite
ctur
alse
rvic
es(c
onsu
lting
, pla
nnin
g or
desi
gnse
rvic
es)
(CPC
867
1)
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n.
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
d in
the
hori
zont
al s
ectio
n.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Arc
hit
ectu
Ser
vice
sch
edu
le:
Dra
ftL
aw s
etti
ng
ou
t p
rofe
ssio
qu
ali
Co
nsi
der
Bo
ard
Arc
h
res
arch
itec
tura
lse
rvic
es
nal
fica
tio
ns.
esta
blis
hin
ga
of
itec
ts
2005
TA
nee
ded
Co
nst
ruct
ion
e: tio
nat
eden
gin
eeri
ng
serv
ices
84
wn
gp
rofe
ssio
nal
qu
alif
icat
ion
s
2005
TA
nee
ded
Ser
vice
ssc
hed
ul
con
stru
can
dre
l
Dra
ftL
aes
tab
lish
i
84
84 (e)
Eng
inee
ring
serv
ices
(CPC
867
2)(f
)In
tegr
ated
eng
inee
ring
ser
vice
s(C
PC 8
673)
(g)
Urb
anpl
anni
ng a
nd la
ndsc
ape
arch
itect
ural
ser
vice
s(C
PC 8
674)
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n.
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
d in
the
hori
zont
al s
ectio
n.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
En
gin
eeri
nS
ervi
cesc
hed
ule
eng
inee
rin
g
Dra
ftL
aes
tab
lisp
rofe
ssio
85
gs
:
serv
ices
w hin
gn
alq
ual
ific
atio
ns
2005
TA
nee
ded
1.G
ener
al C
onst
ruct
ion
Wor
k fo
rB
uild
ings
(CPC
512
)2.
Gen
eral
Con
stru
ctio
nW
ork
for
Civ
il E
ngin
eeri
ng(C
PC 5
13)
3.In
stal
latio
n an
dA
ssem
bly
Wor
k(C
PC 5
14; C
PC 5
16)
4.B
uild
ing
Com
plet
ion
and
Fini
shin
g W
ork
(CPC
517
)5.
O
ther
(CPC
511
, 515
, 518
)
(1)
Unb
ound*
(2)
Non
e(3
) N
one
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
e ho
rizo
ntal
sec
tion
(1)
Unb
ound
*(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
d in
the
hori
zont
alse
ctio
n
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
MIN
IST
RY
OF
HE
ALT
H
Imp
ort
s o
f p
hW
P R
epo
rt
Am
end
Law
Man
agem
ent
Pra
kas
No
.M
arch
199
9al
low
an
y fi
acti
vity
86
arm
aceu
tic
als
par
a 49
85,
5086
on
Dru
g
and
82 o
f 31
s
o a
s to
rm
to
en
gag
e in
imp
ort
Jun
e 20
05
TA
nee
ded
MIN
IST
RY
OF
PO
ST
AN
DT
ELE
CO
MM
UN
ICA
TIO
NS
85 B
ased
on
this
inf
orm
atio
n, a
Mem
ber
conc
lude
d th
at C
ambo
dia
had
plac
ed r
estr
ictio
nson
im
port
ed p
harm
aceu
tical
s an
d ve
teri
nary
med
icin
es w
hich
wou
ld n
otap
ply
todo
mes
ticpr
oduc
tion
of s
imila
r pr
oduc
ts.
Cam
bodi
aw
as th
eref
ore
requ
este
d to
am
end
its la
ws
to d
istin
guis
h ex
plic
itly
betw
een
the
righ
t to
beth
e im
port
erof
rec
ord,
and
the
righ
t to
dist
ribu
te.
The
regi
stra
tion
and
tech
nica
l req
uire
men
tscu
rren
tly p
lace
don
impo
rter
s sh
ould
be tr
ansf
erre
d to
dist
ribu
tors
, and
Cam
bodi
ash
ould
ens
ure
that
thes
ere
quir
emen
ts w
ould
be a
pplie
din
a m
anne
r th
at w
ould
res
ult i
n tr
eatm
ent n
o le
ss f
avou
rabl
e to
impo
rts
than
to s
imila
r do
mes
tic p
rodu
cts.
86 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
tha
t it
was
not
the
int
ent
ofhi
s G
over
nmen
t th
at t
he c
urre
nt r
equi
rem
ents
for
im
port
atio
n of
pha
rmac
eutic
als
or o
fve
teri
nary
med
icin
essh
ould
disc
rim
inat
e ag
ains
t im
port
s. I
n th
isre
gard
,he
furt
her
conf
irm
ed th
at n
o la
ter
than
1Ju
ne 2
005,
Cam
bodi
a w
ould
am
end
its le
gisl
atio
n, e
.g.,
the
Law
onD
rug
Man
agem
ent a
ndPr
akas
No.
82 o
f 31
Mar
ch 1
999
on "
Proc
edur
esfo
r E
xpor
ts a
nd I
mpo
rts
of P
harm
aceu
tical
s",
so a
sno
t to
abr
idge
the
rig
ht t
o im
port
and
to
expo
rt,
and
that
any
regi
ster
ed e
ntity
coul
dbe
the
impo
rter
or
expo
rter
of
reco
rd.
He
conf
irm
ed th
at f
rom
that
dat
e, C
ambo
dia
wou
ld e
nsur
e th
at it
s la
ws
and
regu
latio
nsre
latin
g to
the
righ
t to
trad
e in
good
s an
d al
l fee
s,
char
ges
or ta
xes
levi
edon
suc
hri
ghts
wou
ldbe
in f
ull c
onfo
rmity
with
its W
TO
obl
igat
ions
,inc
ludi
ng A
rtic
les
VII
I:I(
a), X
I:I
and
III:
2 an
d 4
of th
eG
AT
T19
94 a
nd th
at it
wou
ldal
soim
plem
ent s
uch
law
s an
d re
gula
tions
infu
ll co
nfor
mity
with
thes
e ob
ligat
ions
. He
conf
irm
ed in
par
ticul
ar th
at th
isw
as r
ecog
nize
das
with
out p
reju
dice
tore
quir
emen
ts th
at m
ight
bepl
aced
on
dist
ribu
tors
of
dom
estic
and
impo
rted
prod
ucts
to p
rese
rve
plan
t, an
imal
or
hum
an h
ealth
, lif
e, o
r sa
fety
. T
heW
orki
ng P
arty
took
note
of
thes
e co
mm
itmen
ts.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Tel
e-
Co
Ser
vice
sch
edte
le-
com
mu
ni
Dra
ft L
aw o
nT
e-co
mm
un
icat
ion
sep
arat
es
TA
87
mm
un
icat
io
ns
su
le: ca
tio
n s
ervi
ces87
elth
ato
per
atio
ns
fro
m r
egu
lati
on
2004
isbe
ing
prov
ided
87 3.
Tel
ecom
mun
icat
ion
Serv
ices
Com
mitm
ents
are
take
n co
nsis
tent
with
"N
otes
for
Sch
edul
ing
Bas
ic T
elec
om S
ervi
ces
Com
mitm
ents
"(S
/GB
T/W
/2/R
ev.1
) an
d M
arke
t Acc
ess
Lim
itatio
ns o
nSp
ectr
um A
vaila
bilit
y" (
S/G
BT
/W/3
).(a
)V
oice
tele
phon
e se
rvic
es(C
PC 7
521)
(b)
Pack
et-s
witc
hed
data
tran
smis
sion
ser
vice
s(C
PC 7
523*
*)(c
) C
ircu
it-sw
itche
dda
tatr
ansm
issi
on s
ervi
ces
(CPC
752
3**)
(d)
Tel
ex s
ervi
ces
(CPC
752
3**)
(e)
Tel
egra
ph s
ervi
ces
(CPC
752
2)(f
)Fa
csim
ile s
ervi
ces
(CPC
75
21**
+ 75
29**
)(g
)Pr
ivat
e le
ased
circ
uit s
ervi
ces
(CPC
752
2**+
7523
**)
(1)
Serv
ices
pro
vide
d on
ly o
ver
the
circ
uits
leas
ed f
rom
Tel
ecom
Cam
bodi
a. S
tart
ing
nola
ter
than
1 J
anua
ry 2
009:
Non
e
(2)
Non
e(3
)Pr
ovid
ed e
xclu
sive
ly b
y T
elec
omC
ambo
dia.
Sta
rtin
g no
late
r th
an 1
Janu
ary
2009
:Non
e, e
xcep
t sub
ject
to
requ
irem
ent f
or lo
cal s
hare
hold
ing
of u
pto
49%
.(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n
(1)
Serv
ices
prov
ided
only
over
the
circ
uits
leas
ed f
rom
Tel
ecom
Cam
bodi
a. S
tart
ing
no la
ter
than
1 Ja
nuar
y20
09:
Non
e(2
) N
one
(3)
Prov
ided
excl
usiv
ely
by T
elec
omC
ambo
dia.
Sta
rtin
gno
late
r th
an1
Janu
ary
2009
:N
one
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
eho
rizo
ntal
sec
tion
Cam
bodi
a un
dert
akes
obl
igat
ions
cont
aine
d in
the
Ref
eren
cePa
per
atta
ched
.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Tel
e-
Com
mun
ica
Ser
vice
sch
edte
le-
com
mu
nic
ati
Pre
par
e p
lan
acti
on
con
tain
step
sn
eces
sar
TA
tions
su
le:
on
ser
vice
s
of in
g y to
m
eet
com
mit
men
tin
2008
2004
-200
5is
bein
gpr
ovid
ed
Mo
bile
Ser
vice
sch
edu
lete
le-
com
mu
nic
ati
Dev
elo
po
bje
and
tran
spar
encr
iter
ia f
or
i
88
ph
on
ess
:
on
ser
vice
s88
ctiv
et
ssu
ing
licen
ses
in t
his
are
a
2004
TA
is b
eing
pr
ovid
ed
(h)
E-m
ail (
CPC
752
3**)
(i)
Voi
ce-m
ail (
CPC
752
3**)
(j)
On-
line
info
rmat
ion
and
data
base
-ret
riev
al (
CPC
752
3**)
(k)
Ele
ctro
nic
Dat
a In
terc
hang
e(C
PC 7
523*
*)(l
)E
nhan
ced/
valu
e ad
ded
facs
imile
serv
ices
, inc
l. st
ore
and
forw
ard,
stor
ean
d re
trie
ve (
7523
**)
(m)
Cod
e an
dpr
otoc
ol c
onve
rsio
n(n
)O
n-lin
e in
form
atio
n an
d/or
dat
apr
oces
sing
(in
clud
ing
tran
sact
ion
proc
essi
ng)
(CPC
843
**)
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n.
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
d in
the
hori
zont
al s
ectio
n.
88
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
MIN
IST
RY
OF
TO
UR
ISM
Ho
tels
s: n
rela
ted
tra
vel
serv
ices
89
ub
-dec
ree
rati
ng
clas
sifi
cati
on
2004
No
TA
nee
ded
S
ervi
cesc
hed
ule
tou
rism
ad
Pre
par
es
on
ho
tel
89(o)
Oth
erse
rvic
es:
-
Mob
ilese
rvic
es(1
) N
one
(2)
Non
e(3
) N
one
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
e ho
rizo
ntal
sec
tion
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
d in
the
hori
zont
al s
ectio
n.
Cam
bodi
a co
mm
its to
per
mit
licen
sed
supp
liers
of m
obile
tele
com
mun
icat
ions
ser
vice
s ch
oice
ofte
chno
logy
use
d in
the
supp
ly o
f su
chse
rvic
es.
89 1.H
otel
s(C
PC 6
4110
)(1
) N
one
(2)
Non
e(3
)N
one
for
hote
l3st
ars
or h
ighe
r89 .
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
e ho
rizo
ntal
sec
tion.
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
d in
the
hori
zont
al s
ectio
n
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Tra
vel
Ag
enci
es a
nd
T
ou
r
Ser
vice
sch
edu
leto
uri
sm a
nd
Am
end
pre
sen
dra
ftL
awo
nT
ou
bri
ng
itin
toco
mp
lian
Op
erat
ors
s:
rela
ted
tra
vel
serv
ices
90
tri
sm t
o
cew
ith
com
mit
men
ts
2004
No
TA
nee
ded
Res
tau
ran
ts
rela
ted
tra
vel
serv
ices
91
ree
or
esta
blis
her
iafo
r
rest
aura
nts
2004
No
TA
nee
ded
S
ervi
ces
sch
edu
le:
tou
rism
an
d
Issu
eS
ub
-dec
Pra
kas
toth
ecr
itse
ttin
g u
p
90
90 2.T
rave
l age
ncie
s an
d to
urop
erat
ors
serv
ices
(C
PC74
71)
(1)
Non
e(2
) N
one
(3)
Non
e, e
xcep
tfor
eign
equ
ity p
artic
ipat
ion
limite
d to
51%
for
trav
el a
genc
ies
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
e ho
rizo
ntal
sec
tion.
(1)
Non
e(2
) N
one
(3)
Non
e
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
eho
rizo
ntal
sec
tion.
91
Res
taur
ants
(C
PC 6
42,6
43)
(1)
Unb
ound
*(2
) N
one
(3)
Perm
it is
gra
nted
taki
ng in
toac
coun
tch
arac
teri
stic
s of
the
area
91
(4)
Unb
ound
(1)
Unb
ound
*(2
) N
one
(3)
Unb
ound
(4)
Unb
ound
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
MIN
IST
RY
OF
PU
BLI
C W
OR
KS
AN
DT
RA
NS
PO
RT
Acc
ess
mar
itim
Ser
vice
sch
edm
arit
ime
En
sure
that
Law
on
Mar
iti
Tra
nsp
ort
con
tp
rovi
sio
ns
“ad
dit
ion
al
91
to ese
rvic
es
su
le:
serv
ices
92
dra
ftm
e ain
sco
veri
ng
com
mit
men
ts”
2004
No
TA
nee
ded
92
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Ro
adtr
ansp
ort
Ser
vice
sch
edro
adtr
ansp
Dra
ft L
aw o
nT
ran
spo
rtre
gu
2004
T
A
92
su
le:
ort
serv
ices
93
lati
ng
sect
or
nee
ded
Inte
rnat
iona
l tra
nspo
rt(F
reig
ht a
ndpa
ssen
gers
) (C
PC72
11 a
nd72
12),
excl
udin
g ca
bota
ge
(1)
Unb
ound
(2)
Unb
ound
(3)
Unb
ound
(4)
Unb
ound
(1)
Unb
ound
(2)
Unb
ound
(3)
Unb
ound
(4)
Unb
ound
Whe
reno
t oth
erw
ise
mad
e av
aila
ble
to th
e in
tern
atio
nal m
ariti
me
tran
spor
tsu
pplie
rs p
ursu
ant t
oA
rtic
le X
XV
III
(c)
(ii)
,no
mea
sure
s sh
all b
e ap
plie
dw
hich
den
y re
ason
able
and
non-
disc
rim
inat
ory
acce
ss to
the
follo
win
gse
rvic
es:
1.T
owin
g an
d tu
g as
sist
ance
;2.
Prov
isio
ning
, fue
lling
and
w
ater
ing;
3.G
arba
ge c
olle
ctin
g an
d ba
llast
was
te d
ispo
sal;
4.E
mer
genc
y re
pair
faci
litie
s;5.
Lig
hter
ing
and
wat
er ta
xise
rvic
es;
6.
Ship
age
ncie
s;7.
C
usto
mbr
oker
s;8.
Stev
edor
ing
and
term
inal
serv
ices
;9.
Surv
eyin
g an
d cl
assi
fica
tion
serv
ices
.
93
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Ref
use
dis
po
sal
Ser
vice
sch
edu
leen
viro
nm
ent
Issu
esu
b-d
ecr
ere
qu
irin
gG
ove
and
May
ob
serv
e n
on
-d
iscr
imin
atio
n in
2004
N
ot
,sa
nit
atio
n
s;
al s
ervi
ces
e rno
rso
rs t
o
gra
nti
ng
co
ntr
acts
nee
ded
94
93(a)
Pass
enge
r tr
ansp
orta
tion
(CPC
712
1 +
7122
)(b
)Fr
eigh
t tra
nspo
rtat
ion
(CPC
712
3)(c
)R
enta
l of
com
mer
cial
veh
icle
s w
ith o
pera
tor
(CPC
712
4)
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n.
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
d in
the
hori
zont
al s
ectio
n.
(d)
Mai
nten
ance
and
rep
air
of r
oad
tran
spor
t equ
ipm
ent
(CPC
611
2+88
67)
(e)
Supp
ortin
g se
rvic
es f
or r
oad
tran
spor
t ser
vice
s(C
PC 7
44)
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n.
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
d in
the
hori
zont
al s
ectio
n.
94
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
MIN
IST
RY
OF
CU
LTU
RE
AN
D F
INE
AR
TS
TR
IPS
Tab
le 1
2 an
d
par
a 20
695
on
sn
tin
gL
awo
n C
op
yrig
ht
200
Ais
bei
ng
pro
vid
ed.
WP
Rep
ort
Dra
ft r
egu
lati
imp
lem
e4
T
94
1.Se
wag
e se
rvic
es(C
PC 9
401)
2.R
efus
e di
spos
al s
ervi
ces
(CPC
940
2)3.
Sani
tatio
n an
d si
mila
rse
rvic
es(C
PC 9
403)
4.
Oth
erse
rvic
es-
Cle
anin
g of
exh
aust
gas
es(C
PC 9
404)
-N
oise
aba
tem
ent s
ervi
ces
(C
PC94
05)
-N
atur
e an
d la
ndsc
ape
prot
ectio
nse
rvic
es(C
PC 9
406)
-O
ther
env
iron
men
tal s
ervi
ces
not i
nclu
ded
else
whe
re(C
PC 9
409)
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd e
xcep
t as
indi
cate
d in
the
hori
zont
al s
ectio
n
95 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
tha
t C
ambo
dia
wou
ld a
pply
the
Agr
eem
ent
on T
rade
-Rel
ated
Asp
ects
of
Inte
llect
ual
Prop
erty
Rig
hts
no l
ater
tha
n 1
Janu
ary
2007
acco
rdin
g to
the
Act
ion
Plan
in T
able
12
with
the
unde
rsta
ndin
g th
at d
urin
g th
is p
erio
d pr
otec
tion
for
inte
llect
ual p
rope
rty
righ
ts li
sted
in p
arag
raph
s 20
4 an
d 20
5 w
ould
be
appl
ied
inC
ambo
dia.
The
Wor
king
Part
y to
okno
teof
this
com
mitm
ent.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
NA
TIO
NA
L B
AN
K O
F C
AM
BO
DIA
Ban
kin
gs
:b
anki
ng
an
d
serv
ices
96
do
pt
oti
able
men
tsan
d
Tra
nsa
ctio
ns
2004
No
TA
nC
urr
entl
y aw
aiti
ng
to
be
rese
nt
to t
he
Nat
ion
al
Ass
emb
lyS
ervi
cesc
hed
ule
oth
erfi
nan
cial
Pre
par
e an
da
Law
on
Neg
Inst
ruP
aym
ents
eed
ed
9596 2.B
anki
ng a
nd o
ther
fin
anci
al s
ervi
ces
The
com
mitm
ents
for
sub
sect
ors
(a),
(b)
and
(d)
refe
r to
com
mer
cial
bank
ing
only
.
(a)
Acc
epta
nce
of d
epos
its a
ndot
her
repa
yabl
e fu
nds
from
the
publ
ic (
CPC
811
15–
8111
9)(b
)L
endi
ng o
fal
l typ
es,i
nclu
ding
,in
ter
alia
, con
sum
er c
redi
t,m
ortg
age
cred
it, f
acto
ring
and
fina
ncin
g of
com
mer
cial
tran
sact
ion
(CPC
8113
);(d
)A
ll pa
ymen
t and
mon
eytr
ansm
issi
on s
ervi
ce, i
nclu
ding
cred
it, c
harg
e an
d de
bit c
ards
, tr
avel
ler
cheq
ues
and
bank
ers
draf
ts (
CPC
813
3996
)
(1)
Non
e, e
xcep
tdep
osits
fro
m th
e pu
blic
mus
t be
rein
vest
ed in
Cam
bodi
a(2
) N
one
(3)
Non
e, e
xcep
tonl
y pe
rmitt
ed th
roug
hau
thor
ized
fin
anci
al in
stitu
tions
as
bank
s(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n.
(1)
Non
e
(2)
Non
e(3
) N
one
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
eho
rizo
ntal
sec
tion.
The
com
mitm
ents
for
sub
sect
ors
(c)
and
(e)
refe
r to
com
mer
cial
ban
king
only
.
(c)
Fina
ncia
llea
sing
(e)
Gua
rant
ees
and
com
mitm
ents
(1)
Unb
ound
(2)
Non
e(3
)U
nbou
nd u
ntil
rela
ted
law
san
dre
gula
tions
are
est
ablis
hed
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
e ho
rizo
ntal
sec
tion.
(1)
Non
e(2
) N
one
(3)
Non
e
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
eho
rizo
ntal
sec
tion.
96
97 (j)
Settl
emen
t and
cle
arin
g se
rvic
esfo
rfi
nanc
ial a
sset
s, in
clud
ing
secu
ritie
s, d
eriv
ativ
e pr
oduc
ts,
and
othe
r ne
gotia
ble
inst
rum
ents
;
(f)
Tra
ding
for
ow
n ac
coun
tor
for
acco
unto
f cu
stom
ers,
whe
ther
on a
n ex
chan
ge, i
n an
over
-the
-co
unte
r m
arke
t or
othe
rwis
e,th
efo
llow
ing
(A)
mon
ey m
arke
t ins
trum
ents
(inc
ludi
ng c
hequ
es,b
ills,
cert
ific
ates
of
depo
sits
);(B
) f
orei
gn e
xcha
nge
(C)
der
ivat
ive
prod
ucts
incl
udin
g, b
ut n
otlim
ited
to,
futu
res
and
optio
ns;
(D)
exc
hang
e ra
te a
nd in
tere
stra
te in
stru
men
ts, i
nclu
ding
prod
ucts
suc
h as
sw
aps,
forw
ard
rate
agr
eem
ents
;(E
) t
rans
fera
ble
secu
ritie
s;(F
)ot
her
nego
tiabl
e in
stru
men
tsan
d fi
nanc
ial a
sset
s, in
clud
ing
bulli
on
(g)
Part
icip
atio
n in
issu
esof
all
kind
sof
sec
uriti
es, i
nclu
ding
unde
rwri
ting
and
plac
emen
t as
agen
cy (
whe
ther
pub
licly
or
priv
atel
y) a
ndpr
ovis
ion
ofse
rvic
es r
elat
ed to
suc
h is
sues
;
(h)
Mon
ey b
roki
ng;
(i)
Ass
et m
anag
emen
t, su
ch a
s ca
shor
por
tfol
io m
anag
emen
t, al
lfo
rms
of c
olle
ctiv
e in
vest
men
tm
anag
emen
t, pe
nsio
nfu
ndm
anag
emen
t, cu
stod
ial,
depo
sito
ry a
nd tr
usts
ervi
ces;
(1)
Unb
ound
(2)
Non
e(3
)U
nbou
nd f
or s
ubse
ctor
s (f
) –
(l),
until
the
Gov
ernm
ent o
f C
ambo
dia
dete
rmin
esw
hat t
ypes
of e
ntiti
es c
an c
ondu
ct th
ese
serv
ices
, the
rel
ated
law
s an
dre
gula
tion
are
esta
blis
hed,
and
suc
hbu
sine
ss is
au
thor
ized
by
the
gove
rnm
ento
r ot
her
rele
vant
des
igna
ted
auth
ority
.(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n.
(1)
Non
e(2
) N
one
(3)
Non
e
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
eho
rizo
ntal
sec
tion
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Ban
kin
Ser
vice
sch
edu
le
oth
erfi
nan
cial
Co
nsi
der
pre
pa
ing
reg
ula
tio
ns
cov
mo
rtg
age
crfa
cto
rin
g,c
har
and
deb
it c
ard
s an
d
Tee
ded
Com
men
ts h
ave
been
mad
eth
atdi
ffer
ent
diff
eren
t app
roac
hes
to r
egul
atin
gth
ese
fso
me
do h
ave
law
s an
d re
gula
tions
, som
It is
sug
gest
ed th
at C
ambo
dia
(NB
Ca
do a
pre
limin
ary
com
par
coun
trie
s fo
r fu
rthe
r de
cisi
on m
akin
g.
gs
:b
anki
ng
an
d
serv
ices
r erin
ged
it,
ge
trav
eler
’s c
hec
ks
2005
An
coun
trie
sha
veac
ilitie
s–
e ot
hers
do
not.
nd/o
rM
oC)
coul
d at
ive
lega
lres
earc
hon
afe
w
Ban
kin
g:
ban
kin
g a
nd
fin
anci
al
raft
ed, b
e h
atit
will
Oo
blig
atio
ns
No
ne
TA
nee
ded
TA
to b
e pr
ovid
ed u
nder
the
AD
B F
inan
cial
Blu
epri
nt
in 2
005.
S
ervi
ces
sch
edu
le
oth
er
serv
ices
If L
awo
nF
inan
cial
leas
ing
isd
awar
et
trig
ger
WT
CO
UN
FO
R T
HE
DE
VE
LOP
ME
NT
MB
OD
IC
ILO
FC
AA
Inve
stm
ent
Law
WP
Rep
ort
par
a 14
397
entin
ge
Law
ndm
ent o
f th
e L
OI,
by
incr
easi
ng
com
plia
nce
with
T
RIM
S
2004
TA
nee
ded
Still
bei
ng d
ebat
ed th
e ne
gativ
e lis
t – in
clud
ing
(i)
proh
ibiti
ve li
st a
nd (
ii) li
st in
elig
ible
for
ince
ntiv
es.
Exp
ecte
d 20
05.
Dra
ft o
f im
plem
Sub-
decr
eeof
thon
the
Am
e
98
97 T
he r
epre
sent
ativ
e of
Cam
bodi
a sa
id t
hat
Cha
pter
V o
f th
e L
awon
Inv
estm
ent
of 4
Aug
ust1
994
and
Cha
pter
7 o
f G
over
nmen
t Su
b-D
ecre
e N
o. 8
8A
NK
R.B
K o
n th
eIm
plem
enta
tion
of t
he L
awon
Inve
stm
ent
of 2
9 D
ecem
ber
1997
con
tain
ed c
erta
in t
rade
-rel
ated
pro
visi
ons,
inc
ludi
ng i
ncen
tives
for
exp
ort-
orie
nted
inv
estm
ents
tha
t in
clud
e th
eex
empt
ion,
in
who
le o
r in
part
, of
dut
ies
and
taxe
s;
corp
orat
e pr
ofit
tax
exem
ptio
ns a
nd p
refe
renc
es,
depe
ndin
gon
the
cha
ract
eris
tics
of t
he p
roje
ct a
nd i
ts p
rior
ity s
tatu
s w
ith t
heG
over
nmen
t of
Cam
bodi
a;
and
tax
exem
ptio
n on
divi
dend
or p
rofi
t di
stri
butio
nw
heth
er t
rans
ferr
ed a
broa
d or
dist
ribu
ted
in C
ambo
dia
(Art
icle
s 12
,13
, an
d14
:1-3
of t
heL
awon
Inve
stm
ent)
.Su
ch i
nves
tmen
ts c
ould
als
obe
exe
mpt
ed f
rom
the
exp
ort
tax
and
enjo
y sp
ecia
lru
les
for
entr
y of
fore
ign
natio
nals
. I
n pa
rtic
ular
, A
rtic
le 1
4:4(
a) a
nd (
b) e
xem
pted
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Inve
stm
eL
awW
P R
epo
rt
par
a1
,N
oti
fy “
sub
(wai
ver
of
cum
sd
uti
esfo
rso
Dat
of
TA
edC
DC
to
sta
rt w
ork
ing
on
pre
par
ing
su
bsi
die
s to
be
99
nt
1998
12099
sid
ies”
sto
me
inve
sto
rs)
to W
TO
eac
cess
ion
nee
dn
oti
fied
.
100
per
cent
of
impo
rtdu
ties
on c
onst
ruct
ion
mat
eria
ls,m
eans
ofpr
oduc
tion
equi
pmen
t, in
term
edia
tego
ods,
raw
mat
eria
ls a
nd s
pare
par
ts u
sed
inex
port
-ori
ente
d in
vest
men
t pro
ject
sw
ith a
min
imum
of
80pe
r ce
nt o
f th
epr
oduc
tion
expo
rted
, or
loca
ted
in a
des
igna
ted
Spec
ial P
rom
otio
n Z
one
(SPZ
) lis
ted
in a
dev
elop
men
t pri
ority
list
issu
ed b
y th
e C
ounc
il fo
r th
eD
evel
opm
ent
of C
ambo
dia.
Art
icle
14:4
(c),
(d)
, and
(e)
prov
ided
tha
t su
ch i
ncen
tives
cou
ld b
e au
thor
ized
for
inv
estm
ents
inv
olvi
ng t
he t
ouri
sm i
ndus
try,
lab
our-
inte
nsiv
e in
dust
ry,
tran
sfor
mat
ion
indu
stry
, ag
ro-i
ndus
try
or p
hysi
cal
infr
astr
uctu
re a
nd e
nerg
y in
dust
ry f
or t
he c
onst
ruct
ion
peri
odof
ent
erpr
ises
, fa
ctor
ies,
bui
ldin
g an
d th
efi
rst
year
of
oper
atio
nof
busi
ness
pro
duct
ion.
The
sem
easu
res
wer
e, i
nhi
svi
ew, i
ncen
tives
con
sist
ent
with
the
Agr
eem
ent
onT
rade
-Rel
ated
Inve
stm
ent
Mea
sure
s, a
nd w
ould
be m
aint
aine
d as
lon
g as
they
wer
e pe
rmitt
edby
WT
O p
rovi
sion
s an
dC
ambo
dia’
s Pr
otoc
olof
Acc
essi
on a
ndw
ould
mee
t Cam
bodi
a’s
deve
lopm
ent n
eeds
. H
owev
er, t
he n
ewly
am
ende
d L
aw o
n In
vest
men
t, in
its
Art
icle
14
conc
erni
ng i
ncen
tives
, do
esno
tm
ake
any
refe
renc
e to
the
"m
inim
um 8
0 pe
r ce
nt o
f th
epr
oduc
tion
for
expo
rt".
M
oreo
ver,
the
im
plem
entin
g su
b-D
ecre
ew
hich
will
be
draf
ted
will
be
mad
e to
ens
ure
full
com
plia
nce
with
the
WT
Opr
ovis
ions
on T
RIM
s.
98 S
ome
Mem
bers
con
side
red
the
exis
ting
syst
em o
f re
mis
sion
of i
mpo
rt f
ees
and
wai
ver
ofdu
ty f
or c
erta
in g
oods
use
d by
cer
tain
inv
esto
rs t
o be
hig
hly
com
plex
, la
ckin
g in
tran
spar
ency
and
pron
e to
abu
se,
and
ther
efor
e en
cour
aged
Cam
bodi
a to
im
plem
ent
a du
ty d
raw
back
sch
eme
cons
iste
nt w
ith t
he A
gree
men
t on
Sub
sidi
es a
nd C
ount
erva
iling
Mea
sure
s.
Pend
ing
the
impl
emen
tatio
n of
a f
unct
ioni
ng d
uty
draw
back
pro
gram
me
limiti
ng r
ebat
esto
the
am
ount
of
tari
ff a
nd t
ax i
ncor
pora
ted
in t
he e
xpor
ted
prod
uct,
the
curr
ent
prog
ram
mes
wou
ldne
ed to
be n
otif
ied
as s
ubsi
dies
as
they
did
not
app
ear
toqu
alif
y as
val
id d
uty
draw
back
sch
emes
.
99 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
tha
t an
y su
bsid
y pr
ogra
mm
es p
rovi
ded
byhi
s G
over
nmen
t af
ter
acce
ssio
n w
ould
be
adm
inis
tere
d in
conf
orm
ity w
ith t
heA
gree
men
t on
Subs
idie
s an
d C
ount
erva
iling
Mea
sure
s, in
clud
ing
Art
icle
27,
and
that
all
nece
ssar
y in
form
atio
n on
Cam
bodi
a’s
expo
rt s
ubsi
dies
and
oth
er n
otif
iabl
e pr
ogra
mm
es w
ould
be n
otif
ied
toth
e C
omm
ittee
on
Subs
idie
s an
d C
ount
erva
iling
Mea
sure
s ac
cord
ing
to A
rtic
le 2
5 of
the
Agr
eem
ent
upon
ent
ry i
nto
forc
e of
Cam
bodi
a’s
Prot
ocol
of A
cces
sion
.H
e al
so c
onfi
rmed
that
Cam
bodi
a w
ould
eith
erel
imin
ate
the
exis
ting
syst
emof
rem
issi
on o
f im
port
fee
s an
dw
aive
r of
duty
for
cer
tain
good
s us
edby
cer
tain
inv
esto
rsor
est
ablis
h a
func
tioni
ng d
uty
draw
back
syst
em c
onsi
sten
tw
ithW
TO
pro
visi
ons,
thr
ough
am
endm
ent
of t
he L
awon
Inv
estm
ent,
as n
eces
sary
,by
the
end
of
2013
.T
heW
orki
ng P
arty
too
kno
teof
thes
eco
mm
itmen
ts.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
STA
TE
SE
CR
ETA
RIA
T O
F C
IVIL
AV
IAT
ION
Civ
il av
iati
on
sc
hed
ule
: ai
r
serv
ices
100
ilA
viat
ion
dra
ftim
ple
men
tin
gre
gu
lati
on
s
eed
ed
draf
ting
plem
entin
gre
gula
tions
Ser
vice
s
tran
spo
rt
Pas
sC
ivL
awan
d20
04
TA
n for
im
Sel
ling
otr
ansp
ort
Ser
vice
s
tran
spo
rt
Dra
ft e
con
om
icte
chn
ical
reg
ul
cove
rin
gth
es
100
fai
r
serv
ices
sch
edu
le:
air
serv
ices
and
atio
ns
ellin
gan
d m
arke
tin
g o
f ai
r tr
ansp
ort
ser
vice
s
2004
-200
5 T
A
100
3.A
ir T
rans
port
Ser
vice
s-
Air
craf
t re
pair
and
mai
nten
ance
serv
ices
(CPC
886
8)-
Selli
ng
and
mar
ketin
gof
ai
rtr
ansp
ort s
ervi
ces
-C
ompu
ter
Res
erva
tion
Syst
emSe
rvic
es (
CR
S)
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n.
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
d in
the
hori
zont
al s
ectio
n.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
NA
TIO
NA
L C
OD
EX
CO
MM
ITT
EE
SP
S1,
par
a 14
2101
cree
dh
ygie
ne
and
pro
visi
on
s
2004
T
A n
eed
edW
PR
epo
rtT
able
1P
rep
are
sub
-de
on
foo
oth
er le
gal
SP
S
WP
Re
Tab
le 1
1,
par
a14
Mak
e E
nq
ui
2004
-200
5p
ort
2
ryP
oin
to
per
atio
nal
TA
is b
ein
g
pro
vid
ed.
SP
ST
able
11
par
a 14
2
Co
dex
;im
ple
men
t
add
itio
nal
reg
ula
tio
ns;
2004
T
A n
eed
edW
PR
epo
rtE
stab
lish
libra
rytr
ain
ing
; d
raft
101
101 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
that
Cam
bodi
a w
ould
impl
emen
t pro
gres
sive
ly th
e pr
ovis
ions
of th
eW
TO
Agr
eem
ent o
n th
e A
pplic
atio
n of
San
itary
and
Phy
tosa
nita
ryM
easu
res
with
in th
e tim
etab
le p
rovi
ded
for
in th
e A
ctio
n Pl
an f
or I
mpl
emen
tatio
n in
Tab
le 1
1, a
nd w
ould
ens
ure
full
impl
emen
tatio
n of
the
Agr
eem
ent n
o la
ter
than
1 J
anua
ry 2
008,
and
with
the
unde
rsta
ndin
g th
at d
urin
g th
ispe
riod
the
scop
e of
impl
emen
tatio
nof
othe
r as
pect
sof
the
Agr
eem
ent,
as d
escr
ibed
in p
arag
raph
141
wou
ldbe
app
lied
by C
ambo
dia.
He
furt
her
conf
irm
ed t
hat
Cam
bodi
a sh
ould
cons
ult
with
WT
O M
embe
rsup
onre
ques
t if
the
y de
emed
tha
t an
ym
easu
res
appl
ied
duri
ng t
he t
rans
ition
per
iod
affe
cted
the
ir t
rade
nega
tivel
y. T
heW
orki
ngPa
rty
took
not
e of
thes
eco
mm
itmen
ts.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
SP
WP
Rep
ort
Tab
leD
raft
ad
dit
ion
are
gu
lati
on
so
nsa
fety
; se
cure
nec
essa
rytr
ain
2005
T
A
S11
par
a 14
2
l foo
d
ing
;u
pd
ate
Co
dex
lib
rary
nee
ded
INT
ELL
EC
TU
AL
PR
OP
ER
TY
RIG
HT
S C
OO
RD
INA
TIN
GC
OM
MIT
TE
E
TR
IPS
par
a 20
6102
mb
od
ia’s
pin
eva
dlli
teC
on
ven
tio
ns
and
th
e P
aten
tC
oo
per
atio
n
2004
-200
5N
o T
A n
eed
ed
WP
Rep
ort
Tab
le 1
2,
Sec
ure
Ca
mem
ber
shi
Ber
ne,
Gen
Ph
on
og
ram
,an
Bru
ssel
sS
ate
Tre
aty
TR
IPS
W
P R
epo
rtD
raft
Law
102
Tab
le 1
2,
par
a 20
6
on
Geo
gra
ph
ical
Ind
icat
ion
s
2004
TA
is b
eing
pr
ovid
ed
102 T
he r
epre
sent
ativ
e of
Cam
bodi
a co
nfir
med
tha
t C
ambo
dia
wou
ldap
ply
the
Agr
eem
ent
on T
rade
-Rel
ated
Asp
ects
of
Inte
llect
ual
Prop
erty
Rig
hts
no l
ater
tha
n 1
Janu
ary
2007
acco
rdin
g to
the
Act
ion
Plan
in T
able
12
with
the
unde
rsta
ndin
g th
at d
urin
g th
is p
erio
d pr
otec
tion
for
inte
llect
ual p
rope
rty
righ
ts li
sted
in p
arag
raph
s 20
4 an
d 20
5 w
ould
be
appl
ied
inC
ambo
dia.
The
Wor
king
Part
y to
okno
teof
this
com
mitm
ent.
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
TR
IPW
PR
epo
rtT
able
Dra
ft L
aws
Lay
ou
tD
esU
nd
iscl
ose
Info
rmat
Pla
nt
Var
iety
S12
,p
ara
206
on
ign
s,d
ion
and
Pro
tect
ion
2005
Furt
her
TA
ne
eded
TR
IPS
par
a 20
6 s
for
law
sp
hic
on
san
dio
no
fu
nd
iscl
ose
d
Dec
emb
er, 2
005
TA
nee
ded
WP
Rep
ort
Tab
le 1
2,
Pu
t in
to f
orc
e im
ple
men
tin
gre
gu
lati
on
on
geo
gra
ind
icat
ip
rote
ct
info
rmat
ion
TR
IPS
epo
rtT
able
12,
p
ara
206
on
al
Pro
tect
ion
of
New
Var
ieti
es o
f P
lan
ts
Dec
emb
er, 2
005
No
TA
nee
ded
W
PR
Join
Inte
rnat
iC
on
ven
tio
n f
or
the
103
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
ALL
MIN
IST
RIE
S A
ND
AG
EN
CIE
S
Tra
nsp
aren
cyR
epo
rtp
ara
21610
3w
s tio
ns
nt
30d
ays
bef
ore
th
ey a
re
ado
pte
d
2004
No
TA
nee
ded
W
PP
ub
lish
dra
ftla
and
dra
ftre
gu
lafo
rco
mm
e
GE
NE
VA
MIS
SIO
N
WT
Par
tici
104
OC
om
mit
tee
on
T
BT
WP
Rep
ort
par
a.12
9104
pat
ein
the
mee
tin
gs
of
the
Co
mm
itte
e
On
go
ing
No
TA
nee
ded
103 I
n re
spon
se,
the
repr
esen
tativ
e of
Cam
bodi
a st
ated
tha
t C
ambo
dia
inte
nded
to
prov
ide
a re
ason
able
per
iod,
i.e
. no
les
s th
an 3
0 da
ys,
for
com
men
t to
the
app
ropr
iate
aut
hori
ties
befo
re m
easu
res
pert
aini
ng to
or
affe
ctin
g tr
ade
ingo
ods,
serv
ices
and
TR
IPS
are
adop
ted,
exc
ept
for
thos
e re
gula
tions
and
oth
er m
easu
res
invo
lvin
gna
tiona
l em
erge
ncy
or s
ecur
ity,
or f
or w
hich
the
pub
licat
ion
wou
ld i
mpe
de l
aw e
nfor
cem
ent.
The
pub
licat
ion
of s
uch
regu
latio
ns a
nd o
ther
mea
sure
s w
ould
inc
lude
the
eff
ectiv
e da
te o
f th
ese
mea
sure
s an
d, w
here
appr
opri
ate
or p
ossi
ble,
lis
t th
e pr
oduc
ts a
nd s
ervi
ces
affe
cted
by t
he p
artic
ular
mea
sure
, ide
ntif
ied
byap
prop
riat
e ta
riff
lin
e an
d cl
assi
fica
tion.
He
adde
d th
at C
ambo
dia
wou
ldpo
stth
e co
nten
ts o
f cu
rren
t and
past
edi
tions
of
the
Off
icia
l Jou
rnal
on
the
gove
rnm
ent w
ebsi
te a
nd k
eep
them
cur
rent
.
104 T
he G
over
nmen
tof
Cam
bodi
a re
ques
ted
that
the
Wor
king
Par
ty g
rant
a t
rans
ition
alpe
riod
fro
m t
he d
ate
of i
ts a
cces
sion
unt
il 1
Janu
ary
2007
for
impl
emen
tatio
n of
the
WT
OA
gree
men
t on
Tec
hnic
al B
arri
ers
to T
rade
, to
allo
w C
ambo
dia
to o
btai
n an
d ut
ilize
tec
hnic
alas
sist
ance
to
fully
im
plem
ent
the
oblig
atio
nsof
the
Agr
eem
ent.
Dur
ing
this
peri
od,
exis
ting
mea
sure
sw
ould
be
appl
ied
on a
non
-dis
crim
inat
ory
basi
s, i
.e. p
rovi
ding
for
natio
nal
trea
tmen
t an
d M
FN t
reat
men
t to
all
impo
rts.
M
easu
res
in p
lace
alr
eady
con
sist
ent
with
the
prov
isio
ns o
f th
e A
gree
men
t on
Tec
hnic
alB
arri
ers
to T
rade
wou
ldno
t be
sub
ject
to
tran
sitio
ns, a
nd C
ambo
dia
wou
ld e
nsur
e th
at a
ny c
hang
esm
ade
in i
ts l
aws,
reg
ulat
ions
and
prac
tice
duri
ng th
e tr
ansi
tion
peri
od w
ould
not r
esul
t in
a le
sser
deg
ree
of c
onsi
sten
cy w
ith th
e pr
ovis
ions
of th
e A
gree
men
t tha
n ex
iste
don
the
date
of
acce
ssio
n. S
tand
ards
, tec
hnic
alre
gula
tions
, an
d co
nfor
mity
asse
ssm
ent
proc
edur
es a
dopt
ed d
urin
g th
is p
erio
d w
ould
be
deve
lope
d in
con
form
ity w
ith t
he p
rovi
sion
s of
the
Agr
eem
ent.
Cam
bodi
a w
ould
ful
ly
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
WT
OC
om
mit
tee
oW
P R
epo
rt
par
a 14
1n
SP
S
105
inth
eo
fth
eC
om
mit
tee
No
TA
nee
ded
P
arti
cip
ate
mee
tin
gs
On
go
ing
BA
R A
SS
OC
IAT
105
ION
part
icip
ate
in th
e w
ork
of th
e C
omm
ittee
on
Tec
hnic
al B
arri
ers
to T
rade
. H
e ad
ded
that
Cam
bodi
a w
ould
see
k ou
t all
avai
labl
e te
chni
cal a
ssis
tanc
e to
ens
ure
that
its
capa
city
to f
ully
impl
emen
t the
Agr
eem
ent u
pon
expi
ratio
nof
the
tran
sitio
npe
riod
is a
ssur
ed.
105 T
he r
epre
sent
ativ
e of
Cam
bodi
are
ques
ted
that
the
Wor
king
Par
ty g
rant
a t
rans
ition
al p
erio
dfr
om t
he d
ate
of i
ts a
cces
sion
until
1 J
anua
ry20
08fo
r im
plem
enta
tion
of t
heW
TO
Agr
eem
ent
on S
anita
ry a
nd P
hyto
sani
tary
Mea
sure
s, t
o al
low
Cam
bodi
a to
obt
ain
and
utili
ze t
echn
ical
ass
ista
nce
to f
ully
im
plem
ent
the
oblig
atio
nsof
the
Agr
eem
ent.
Dur
ing
this
peri
od,
exis
ting
mea
sure
sw
ould
be a
pplie
don
a n
on-d
iscr
imin
ator
yba
sis,
i.e
., pr
ovid
ing
for
natio
nal
trea
tmen
t an
d M
FN t
reat
men
t to
all
impo
rts.
M
easu
res
in p
lace
alr
eady
co
nsis
tent
with
the
prov
isio
ns o
f th
eA
gree
men
t on
Sani
tary
and
Phy
tosa
nita
ry M
easu
res
wou
ldno
tbe
subj
ect t
o tr
ansi
tions
, and
Cam
bodi
a w
ould
ens
ure
that
any
chan
ges
mad
e in
its
law
s,re
gula
tions
and
prac
tice
duri
ng th
e tr
ansi
tion
peri
odw
ould
notr
esul
t in
a le
sser
deg
ree
of c
onsi
sten
cy w
ith th
epr
ovis
ions
of th
eA
gree
men
t tha
n ex
iste
d on
the
date
of a
cces
sion
.T
echn
ical
reg
ulat
ions
and
othe
r m
easu
res
adop
ted
duri
ng t
his
peri
odw
ould
bede
velo
ped
in c
onfo
rmity
with
the
pro
visi
ons
of t
heA
gree
men
t. P
rior
ity w
ould
be
give
n to
the
esta
blis
hmen
tof
a fu
nctio
ning
enq
uiry
poi
nt a
nd th
e no
tific
atio
n of
all
of C
ambo
dia’
s SP
S m
easu
res
to th
e C
omm
ittee
. H
e ad
ded
that
Cam
bodi
a w
ould
see
k ou
t all
avai
labl
e te
chni
cal
assi
stan
ce t
o en
sure
tha
t its
cap
acity
to
fully
im
plem
ent
the
SPS
Agr
eem
ent
upon
exp
irat
ion
of t
he t
rans
ition
per
iod
is a
ssur
ed.
Cam
bodi
a w
ould
ful
ly p
artic
ipat
e in
the
wor
k of
the
Com
mitt
ee o
n Sa
nita
ry a
nd P
hyto
sani
tary
Mea
sure
s.
In r
espo
nse
tore
ques
ts f
rom
del
egat
ions
for
mor
e sp
ecif
icity
, the
rep
rese
ntat
ive
of C
ambo
dia
pres
ente
d an
Act
ion
Plan
set
ting
outd
etai
ls o
f th
e st
eps
that
stil
l rem
aine
d to
be
take
n in
orde
r to
ach
ieve
this
obj
ectiv
e an
d a
timet
able
for
eac
h st
ep (
Tab
le 1
1).
Top
icW
TO
Ref
eren
ceT
ask
De
dlin
ea
Te
nica
lch
Ass
ista
nce
Com
men
ts a
nd s
tatu
s
Leg
alse
rvic
sS
ervi
cesc
hed
Bu
sin
ese
rL
egal
Dra
ft a
men
dm
ets
top
ara
5an
d6,
ao
ther
arti
cles
ifo
f th
e L
ab
rin
g a
bo
ut
con
form
ity
w
106
es
ule
:ss
vice
s:
serv
ices
106
n nd an
y,w
on
Bar
,to
ith
the
WT
O c
om
mit
men
t
2004
No
TA
nee
ded
106
(a)
Leg
al s
ervi
ces
(CPC
861
):(1
) N
one
(2)
Non
e(3
)In
com
mer
cial
asso
ciat
ion
with
Cam
bodi
an la
w f
irm
s106 , a
nd m
ay n
otdi
rect
ly r
epre
sent
clie
nts
in c
ourt
s.(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n.
(1)
Non
e(2
) N
one
(3)
Non
e
(4)
Unb
ound
, exc
ept a
s in
dica
ted
in th
eho
rizo
ntal
sec
tion.
Fo
reig
n le
gal c
onsu
ltanc
yon
law
of ju
risd
ictio
n w
here
serv
ice
supp
lier
is q
ualif
ied
as a
law
yer
(inc
ludi
ngho
me
coun
try
law
,th
ird
coun
try
law
, and
inte
rnat
iona
l law
)
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
din
the
hori
zont
al s
ectio
n.
(1)
Non
e(2
) N
one
(3)
Non
e(4
)U
nbou
nd, e
xcep
t as
indi
cate
d in
the
hori
zont
al s
ectio
n.
s V
alua
tion
Tab
le 7
: A
ctio
n Pl
an f
or I
mpl
emen
tatio
n of
the
Agr
eem
ent o
n C
usto
m
Act
ion
Dea
dlin
eW
P re
view
of
Dra
ftL
aw o
n C
usto
ms
Prio
r to
acc
essi
onC
reat
ion
of a
WT
OV
A im
plem
ent
rtm
enta
lla
n to
impl
emen
t the
VA
tran
sitio
n pl
an.
Nat
ion
proj
ect t
eam
and
pre
para
tion
of a
depa
po
late
rth
anD
ecem
ber
2003
-
PSI
mec
hani
sm, n
ew c
ontr
actw
ill b
e in
com
plia
nce
No
late
r th
an1
Janu
ary
2004
Ifde
cisi
on to
ret
ain
with
WT
OV
alua
tion
Agr
eem
entr
ules
.Pa
rlia
men
tary
cons
ider
atio
val
uatio
nru
les.
nan
d en
actm
ent o
f le
gisl
atio
n fo
rW
TO
-con
sist
ent
No
late
r th
an1
July
200
4T 1.
rge
mul
tinat
iona
l and
Cam
bodi
an c
ompa
nies
hav
ing
a w
ell
gc
2ni
esw
hich
ese
larg
e fi
rms,
to e
xem
pt
No
late
r th
an1
Janu
ary
2005
rans
actio
n va
luat
ion
to a
pply
to:
impo
rts
by la
esta
blis
hed
com
plia
nce
reco
rdw
ith th
e C
usto
ms
and
Exc
ise
Dep
artm
ent a
ndbe
inon
side
red
low
risk
impo
rter
s..
impo
rts
by f
irm
s ot
her
than
larg
e,m
ultin
atio
nal a
nd C
ambo
dian
com
paim
port
good
s th
at a
re id
entic
al o
r si
mila
r to
good
s im
port
edby
thba
sed
onth
eir
com
plia
nce
reco
rds.
3.im
port
sby
inve
stm
ent c
ompa
nies
and
oth
er im
port
ers
entit
led
ion
(NG
Os,
fore
ign
mis
sion
s,et
c).
Tec
hnic
al tr
aini
ng a
ndpr
ep
aunc
hing
of
auto
mat
ed c
usto
ms
proc
essi
ngsy
stem
pro
ject
.
arat
ion
of d
epar
tmen
tal v
alua
tion
tech
nica
l man
uals
Lau
nchi
ng o
fPo
st C
lear
ance
Aud
itpr
ogra
mL
No
late
r th
an1
Janu
ary
2006
T
owri
sk im
port
ers
and
sect
ors,
of
low
valu
ego
ods
s.
No
late
r th
an J
anua
ry20
07
rans
actio
n va
luat
ion
to a
pply
to:
4.im
port
s,by
sel
ecte
d l
ubje
ct to
rela
tivel
y lo
wra
tes
of d
uty
and
repr
esen
ting
limite
d re
venu
eri
sk5.
impo
rts
of id
entic
al o
r si
mila
rgo
ods
byot
her
impo
rter
s
1
Tra
nsac
tion
valu
atio
n to
app
N 1
ly to
:
6.re
mai
ning
impo
rts
of lo
w v
alue
goo
dssu
bjec
tto
rela
tivel
y lo
w r
ates
of
duty
.
ola
ter
than
Jan
uary
2008
Tra
nsac
tion
valu
atio
n to
app
ly to
:
7.al
l im
port
s, in
clud
ing
high
ly ta
xed
and
sens
itive
goo
ds
No
late
r th
an1
Janu
ary
2009
107
Act
ion
Dea
dlin
eFu
ll im
plem
enta
tion
of th
eA
gree
men
t on
the
Impl
emen
tatio
nof
Art
icle
VII
o th
eG
AT
T1
1f
994
No
late
rth
an J
anua
ry20
09
Tab
le 1
0: A
ctio
n pl
an f
or im
plem
enta
tion
of th
e A
gree
men
t on
Tec
hnic
al B
arri
ers
to T
rade
Dea
dlin
eA
ctio
nA
dopt
ion
ofSu
b-D
ecre
eon
Ind
Ado
ptio
nof
Sub
-Dec
ree
on M
etro
logy
Impl
emen
tatio
nof
Rev
ised
Not
ice
on R
egis
trat
ion
ofIn
dust
rial
Prod
u
ustr
ial S
tand
ards
NO
. 42/
AN
K/B
K
cts
1999
-200
2
Iden
tific
atio
n of
the
Dep
artm
ent o
fIn
dust
rial
Sta
ndar
dsof
Cam
Agr
eem
ent.
Est
ablis
hmen
t of
the
TB
T E
nqui
ry P
oint
in I
SC:
Dep
artm
ent o
f In
dust
rial
St
Min
istr
y of
In
#45,
Nor
odom
Blv
d. P
hno
Fa
x:85
5-23
-216
086
Est
ablis
hmen
t of
TB
T/S
tand
ards
Lib
rary
in I
SC
Inst
alla
tion,
test
ing,
and
cal
ibra
tion
of e
quip
men
t in
ISC
labo
rato
r
Cap
acity
bui
ldin
gfo
r ke
yst
anda
rds
pers
onne
l in
the
fiel
dof
sta
ndar
ion,
man
agem
ent,
met
hods
and
pro
cedu
res
for
sam
plin
g an
din
sin
g,in
spec
tion
and
surv
eilla
nce,
and
for
aud
itors
, ass
esso
rs, i
nst
aff
bodi
a(I
SC)
as th
eau
thor
ity r
espo
nsib
lefo
rno
tific
atio
nsan
d pu
blic
atio
nsre
quir
edby
the
TB
T
anda
rds
of C
ambo
dia
(ISC
)du
stry
, Min
es a
nd E
nerg
ym
Pen
h,
Cam
bodi
a.
E
-mai
l:di
scin
fo@
cam
net.c
om.k
h
ies di
zat
pect
ion,
audi
tsp
ecto
rs, a
ndre
spon
sibl
efo
r te
stin
g an
d ca
libra
tion
and
for
issu
ing
cert
ific
ates
and
lice
nses
.
2003
WP
revi
ew o
f le
gisl
atio
nPr
ior
to a
cces
sion
Subm
issi
on o
f St
atem
ent o
n Im
plem
enta
tion
toW
TO
(pe
rG
/TB
T/1
)U
pon
acce
ssio
n
108
Act
ion
Dea
dlin
eE
nact
men
t of
Law
on I
ndus
tria
l Sta
ndar
ds a
nd a
dopt
ion
ofth
e Su
b-D
Reg
ulat
ions
for
its im
plem
Com
plia
nce
with
the
Cod
eof
Goo
d
Dev
elop
men
tTec
hnic
al R
egul
atio
ns a
nd C
onfo
rmity
Ass
essm
Impl
emen
tatio
n of
TB
T A
gree
men
t(pe
rlis
t in
WT
/AC
C/K
HM
/)
ecre
e an
den
tatio
n
Pra
ctic
e
ent P
roce
dure
sfo
r14
/Rev
.1
No
late
r th
an1
July
200
4
Publ
icat
ion
ofa
peri
odic
Sta
ndar
ds B
ulle
tinor
Gaz
ette
by
the
ISC
co
ngac
tiviti
es r
elat
ing
to te
chni
calr
egul
atio
ns, s
tand
ards
and
conf
ort
proc
edur
es.
veri
mity
ass
essm
enN
o la
ter
than
1 Ja
nuar
y20
05
Tra
inin
gof
sta
ndar
ds s
taff
on in
tern
atio
nal t
rade
and
TB
T im
plem
enta
tn
Rev
iew
and
adj
ustm
ent o
f te
chni
calr
egul
atio
ns a
nd p
roce
dure
s i
ance
with
new
sci
entif
icdi
scov
erie
s an
d ap
proa
ches
.
io
n ac
cord
2005
-200
6
Full
impl
emen
tatio
nof
the
WT
OA
gree
men
t on
Tec
hnic
al B
arri
ers
to T
rade
No
late
r th
an1
Janu
ary
2007
Tab
le 1
1: A
ctio
n Pl
an f
or I
mpl
emen
tatio
n of
the
Agr
eem
ent o
n th
e A
pplic
atio
nof
Sani
tar
and
Phyt
osan
itary
Mea
sure
sy
Act
ion
Dea
dlin
eE
nact
Art
icle
s 2-
8of
t
ucts
of
29 J
uly
RK
RO
), a
s
als
of
-L
awon
the
Man
agem
ent o
f Q
ualit
y an
dSa
fety
of
Prod
ucts
and
Serv
ices
of21
Jun
e 20
00.
-Su
b-de
cree
No.
5 d
ated
3 Fe
brua
ry 1
998
on th
e es
tabl
ishm
ent o
f th
e In
ter-
min
iste
rial
Com
mitt
ee f
or c
oord
inat
ing
the
cont
rolo
f qu
ality
and
saf
ety
of
Com
plet
ed
men
t of
basi
c le
gal a
ndop
erat
iona
l fra
mew
ork
for
impl
emen
tatio
n of
heSP
S A
gree
men
t:
-Su
b-D
ecre
e on
San
itary
Insp
ectio
nof
Ani
mal
and
Ani
mal
Pro
d19
88(N
o.14
AR
.NO
R.K
RA
R),
as
revi
sed
on14
Feb
ruar
y 20
03-
Sub-
Dec
ree
on P
lant
Qua
rant
ine
of 8
Oct
ober
1983
(N
o.98
AR
NO
revi
sed
on14
Feb
ruar
y20
03-
Sub-
Dec
ree
on S
tand
ards
and
Man
agem
ent o
f A
gric
ultu
ralM
ater
i28
Oct
ober
199
8(N
o.69
AR
NO
R K
RA
/BA
RK
AR
)
109
Act
ion
Dea
dlin
epr
oduc
ts a
nd s
ervi
ces.
-L
awon
the
Man
agem
ent o
f Q
ualit
y an
dSa
fety
of
Prod
ucts
and
Ser
(pro
mul
gate
d by
Rea
ch K
ram
No.
NS/
RK
M/0
600/
001
date
d21
Jun
Sub-
decr
ee N
o. 2
8da
ted
9 M
arch
200
1on
the
esta
blis
hmen
t of
the
Cod
ex C
omm
ittee
(N
CC
) an
d its
Sec
reta
riat
. Pr
akas
No.
357
/MO
C d
ated
31 D
ecem
ber
2001
on
the
esta
blis
hT
echn
ical
Wor
king
Gro
ups
(TW
G)
for
the
Nat
iona
lCod
exC
omm
ivice
se
2000
).
-N
atio
nal
-m
ent o
f th
ette
e.E
nact
men
t of
furt
her
lega
lpro
visi
ons
for
impl
emen
tatio
nof
the
SPS
Agr
eem
prog
ram
, e.g
.,D
raft
ing
a su
b-de
cree
on
Food
Hyg
iene
, inc
lan
d m
icro
biol
ogic
al r
equi
rem
ents
,per
WT
/AC
C/K
HM
/15/
Rev
.1.
Est
ablis
hmen
t of
the
SPS
Enq
uiry
Poi
nt, t
rain
ing
of p
erso
nnel
, and
pro
cure
nece
ssar
y eq
uipm
1093
dat
ed 2
6 Ju
ly20
02):
Nat
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114
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11.
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forc
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rove
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No
parl
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Law
on T
rC
ompe
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dopt
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ent.
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YE
AR
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26.
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res
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gust
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Aug
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002
Fore
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dopt
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iam
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u8.
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TS
to th
e Pa
rlia
men
t in
20 J
une
2002
Post
al S
ervi
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Law
A
dopt
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t the
CM
and
sub
mitt
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ecem
ber
2001
.9.
Law
oM
odel
s, a
ndIn
dust
rial
Des
igns
nPr
otec
tion
of P
aten
t, U
tility
T
RIP
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dopt
edby
the
Parl
iam
ent i
n N
ovem
ber
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.D
ecem
ber
2002
10.
Acc
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Law
G
Ado
pted
by th
e Pa
rlia
men
t.en
eral
Nov
embe
r20
02Y
EA
R 2
003
11.
Law
on C
opyr
ight
s an
dR
elat
egh
tsA
dopt
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the
Parl
iam
dR
iT
RIP
Sen
t in
Janu
ary
2003
.Fe
brua
ry 2
003
12.
Am
endm
ent o
f th
e L
awon
Ien
tG
Ado
pted
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e Pa
rlia
men
t in
Febr
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2003
nves
tmen
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brua
ry 2
003
13.
Sub-
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nim
al Q
uaA
dopt
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in F
ebru
ary
2003
.N
opa
rli
rant
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SPS
amen
tary
app
rova
l 14
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nt Q
uara
Ado
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by C
Min
Febr
uary
2003
.N
oPa
rlia
mnt
ine
SPS
enta
ry a
ppro
val
15.
Law
on B
usin
ess
Ent
erpr
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Gen
eral
Ado
pted
by C
M in
Apr
il 26
,200
2 an
d to
the
Parl
iam
ent i
nJu
ne 2
002.
Nov
embe
r 20
03
16.
Tou
rism
and
Ent
erta
inm
ent L
aw
GA
TS
Subm
issi
on to
the
CM
is e
xpec
ted
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arch
200
3 an
d to
the
Parl
iam
ent i
n A
pril
2003
.N
ovem
ber
2003
115
Law
Agr
eem
(s)
Stat
us o
f D
raft
Exp
ecte
d A
ppro
val
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Dat
e (
Parl
iam
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17.
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otia
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and
Paym
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rans
actio
n L
awSu
bmis
sion
toC
M in
Mar
ch20
03 a
nd to
thA
pril
2003
.G
ener
ale
Parl
iam
ent i
nD
ecem
ber
2003
18.
Cus
tom
s C
Cus
tom
s V
altio
nR
ules
oG
Ada
pted
by
the
CM
inD
ecem
ber
2002
and
sub
mPa
rlia
men
t in
Janu
aod
eua
fO
rigi
nA
TT
199
4
itted
to th
ery
2003
.D
ecem
ber
2003
19.
Lan
d T
raff
ic L
aw(H
ighw
ayC
ode)
Gen
eral
Wor
ks a
ndon
to C
Mis
expe
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01an
d to
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embe
r 20
03
Dra
ft c
ompl
eted
by th
e M
inis
try
of P
ublic
Tra
nspo
rts;
Subm
issi
the
Parl
iam
ent i
n Ja
nuar
y 20
02.
20.
Wat
er R
esou
rces
Man
agem
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aw
Gen
eral
sour
ces
and
expe
cted
inA
pril
Dec
embe
r 20
03
Bei
ngdr
afte
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the
Min
istr
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er R
eM
eteo
rolo
gy; s
ubm
issi
on to
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is20
03 a
nd to
the
Parl
iam
ent i
n M
ay 2
003.
21.
Wat
erSu
pply
Law
G
ener
alM
ines
, and
he C
Mis
exp
ecte
d in
Mar
ch20
03D
ecem
ber
2003
B
eing
draf
ted
by th
e M
inis
try
of I
ndus
try,
Ene
rgy;
sub
mis
sion
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and
to th
e Pa
rlia
men
t in
Apr
il 20
03.
Y00
4E
AR
222
.L
awon
Exp
ort P
roce
ssin
g Z
ones
GA
TT
1994
inis
try
ofIn
dust
ry,M
ines
and
arch
200
3 an
dJa
nuar
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04(E
PZs)
Dra
ft c
ompl
eted
by th
e M
Ene
rgy;
Sub
mis
sion
to C
M is
expe
cted
in M
toth
e Pa
rlia
men
tin
Sept
embe
r 20
03.
23.
Com
mer
cial
Arb
Subm
issi
on to
CM
is e
xpec
ted
in F
ebru
ary
Parl
iam
ent i
n M
arch
2003
.itr
atio
n L
aw
Gen
eral
2003
and
to th
e Ja
nuar
y 20
04
24.
Civ
ilA
viat
ioG
Dra
ftco
mpl
eted
by
the
Stat
e Se
cret
aria
t fo
Subm
itted
toC
M in
Jun
e 20
02 a
nd to
thD
ecem
ber
2002
.
n L
aw
ener
alr
Civ
ilA
viat
ion;
e Pa
rlia
men
t in
Janu
ary
2004
25.
Inso
lven
cy L
aw
Gen
eral
CM
is e
xpec
ted
in M
arch
2003
and
to th
eJa
nuar
y 20
04Su
bmis
sion
toPa
rlia
men
t in
Apr
il 20
03.
26.
Secu
red
Tra
nsac
tions
Law
Gen
eral
03 a
nd to
the
Febr
uary
200
4Su
bmis
sion
toC
M is
exp
ecte
d in
Oct
ober
20Pa
rlia
men
t in
Dec
embe
r 20
03.
27.
Com
mer
cial
Con
trac
tD
raft
com
plet
edby
the
Min
istr
y of
Com
mer
cto
CM
isex
pect
ed in
Nov
embe
r20
03 a
nd to
in D
ecem
ber
2003
.
s L
awG
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ale;
Sub
mis
sion
the
Parl
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ent
Febr
uary
200
4
28.
Com
mer
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Lea
sin
Dra
ft c
ompl
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by th
e M
inis
try
of C
omm
to C
M is
exp
ecte
d in
Dec
embe
r20
03 a
ndg
Law
G
ener
aler
ce;S
ubm
issi
onto
the
Parl
iam
ent
in J
anua
ry 2
004.
June
200
4
29.
Tel
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mun
icat
ions
Law
GA
TS
Dra
ft u
nder
rev
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by th
e M
inis
try
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st a
ndT
elec
omm
unic
atio
ns; S
ubm
issi
on to
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is e
xpec
ted
in
Oct
ober
200
3an
d to
the
Parl
iam
ent i
n D
ecem
ber
2003
.
June
200
4
116
Law
ent
Dat
e (
Parl
iam
ent)
Agr
eem
(s)
Stat
us o
f D
raft
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dA
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val
30.
Fish
erie
sB
eing
draf
ted
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e M
inis
try
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gric
ultu
re,
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s;Su
bmis
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exp
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an
d to
the
Parl
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n
Law
SP
SFo
rest
ry a
ndD
ecem
ber
2003
ua
ry 2
004.
June
200
4
3on
Lay
out D
esig
ns o
fIn
tegr
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cuit
TR
IPS
ines
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Febr
uary
200
4.
July
200
41.
Law
TA
requ
este
dby
the
Min
istr
y of
Ind
ustr
y,M
Ene
rgy
to p
repa
redr
aft;
Subm
issi
onto
CM
Sept
embe
r 20
03 a
nd to
the
Parl
iam
ent i
n32
.L
awon
Pla
ntV
arie
ty P
rote
ctio
nT
RIP
Sin
es, a
ndM
is e
xpec
ted
in
embe
r 20
04.
Sept
embe
r 20
04T
Are
ques
ted
by th
e M
inis
try
of I
ndus
try,
ME
nerg
y to
pre
pare
draf
t; Su
bmis
sion
toC
Mar
ch20
03 a
nd to
the
Parl
iam
ent i
n Se
pt33
.L
awon
Saf
egua
rd M
easu
res
Safe
guar
dser
ce to
prep
are
epte
mbe
r 20
03 O
ctob
er20
04T
Are
ques
ted
by th
e M
inis
try
of C
omm
draf
t; Su
bmis
sion
to C
M is
exp
ecte
d in
San
d to
the
Parl
iam
ent i
n A
pril
2004
.34
.L
awon
Ant
i-du
mpi
ng M
easu
res
anC
ount
erva
iling
Mea
sure
s um
ping
sidi
es a
ndC
ount
erva
iling
Mea
sure
s
stry
of
Com
mer
ce to
prep
are
draf
t; Su
bmis
sion
to C
M is
exp
ecte
d in
Sep
tem
ber
2003
and
to th
e Pa
rlia
men
t in
Janu
ary
2004
.
Oct
ober
200
4d
onA
nti-
D
Sub
TA
requ
este
dby
the
Min
i
35.
Law
on
Geo
grap
hica
l Ind
icat
Incl
udin
g A
ppel
latio
n of
Ori
TA
requ
este
dby
the
Min
istr
y of
Com
me
draf
t; Su
bmis
sion
to C
M is
exp
ecte
d in
Apr
the
Parl
iam
ent i
n Ju
ne 2
004
ions
gin
TR
IPS
rce
topr
epar
eil
2004
and
to
Dec
embe
r 20
04
36.
Law
on
Prot
ectio
no
TR
IPS
TA
requ
este
dby
the
Min
istr
y of
Com
me
draf
t; Su
bmis
sion
to C
M is
exp
ecte
d in
Oc
to th
ePa
rlia
men
t in
f U
ndis
clos
edIn
form
atio
nrc
eto
prep
are
tobe
r 20
03 a
nd M
arch
200
4.
Nov
embe
r 20
04
37.
Law
onR
ules
of
Ori
gin
Ru
TA
req
uest
edby
the
Min
istr
y of
Com
mer
cdr
aft;
Subm
issi
on to
CM
is e
xpec
ted
in J
uth
ePa
rlia
men
t in
Aug
ust 2
004.
les
of O
rigi
ne
topr
epar
ene
2004
and
toD
ecem
ber
2004
38.
Law
Est
ablis
hing
Cou
rtG
TA
requ
este
dby
the
Min
istr
y of
Com
mer
Min
istr
y of
Jus
tice
to p
repa
redr
aft;
Subm
expe
cted
in D
ecem
ber
2003
and
to th
the
Com
mer
cial
ener
alce
and
the
issi
on to
CM
is
e Pa
rlia
men
t in
Febr
uary
200
4.
Dec
embe
r 20
04
39.
Civ
il Pr
oced
ure
Cod
eG
ener
alB
eing
draf
ted
by th
e M
inis
try
of J
ustic
e; S
ubm
issi
on to
CM
is e
xpec
ted
in J
une
2003
and
to th
e Pa
rlia
men
t in
Dec
embe
r 20
03.
Dec
embe
r 20
04
117
Law
ent
Dat
e (
Parl
iam
ent)
Agr
eem
(s)
Stat
us o
f D
raft
Exp
ecte
dA
ppro
val
40.
Civ
il C
Bei
ngdr
afte
dby
the
Min
istr
y of
Jus
tice;
SC
Mis
expe
cted
inJu
ne 2
003
and
to th
Dec
em
ode
Gen
eral
ubm
issi
on to
e Pa
rlia
men
t in
ber
2003
June
200
4
41.
Cri
min
al P
roce
dure
s C
ode
Gen
eral
ice;
Sub
mis
sion
CM
is e
xpec
ted
inJu
ne20
03 a
nd to
the
Parl
iam
ent i
nD
ecem
ber
2004
B
eing
unde
rre
view
by th
e M
inis
try
of J
ust
to June
200
4.42
.C
rim
inal
Cod
eG
ener
ale;
Sub
mis
sion
CM
is e
xpec
ted
inSe
ptem
ber
2003
and
toth
e Pa
rlia
men
tN
ovem
ber
2004
Bei
ngun
der
revi
ewby
the
Min
istr
y of
Jus
ticto in
Mar
ch20
04.
YE
AR
200
543
on L
ayou
t Des
igns
of
Inte
grat
edT
RIP
SM
ines
, and
CM
is e
xpec
ted
in
2004
.
Janu
ary
2005
.L
awC
ircu
itT
Are
ques
ted
by th
e M
inis
try
of I
ndus
try,
Ene
rgy
to p
repa
redr
aft;
Subm
issi
onto
June
200
4an
d to
the
Parl
iam
enti
n A
ugus
t44
.L
awon
Pla
ntV
arie
ty P
rote
ctio
nT
RIP
Sry
,Min
es, a
ndex
pect
edin
ber
2004
.
Janu
ary
2005
TA
requ
este
dby
the
Min
istr
y of
Ind
ust
Ene
rgy
to p
repa
redr
aft;
Subm
issi
on to
CM
isJu
ly20
04 a
nd to
the
Parl
iam
ent i
nSe
ptem
45.
Com
mer
cial
Lea
sin
Dra
ft c
ompl
eted
by th
e M
inis
try
of C
to C
M is
exp
ecte
d in
June
2004
and
to th
ePa
Aug
ust 2
004.
gL
awG
ener
alom
mer
ce; S
ubm
issi
onrl
iam
ent i
nJa
nuar
y 20
05
46.
Mer
chan
t Shi
ppin
g L
awB
eing
draf
ted
by th
e M
inis
try
of P
ublic
Tra
nspo
rts;
sub
mis
sion
to th
e C
M is
exp
ect
2004
and
to th
e Pa
rlia
me
GA
TS
Wor
ks a
nded
in N
ovem
ber
nt in
Dec
embe
r20
04.
Febr
uary
200
5
47.
Law
on
Prot
ectio
n of
Und
iscl
osed
Info
rmat
ion
TR
IPS
TA
requ
este
dby
the
Min
istr
y of
Com
me
draf
t; Su
bmis
sion
to C
M is
expe
cted
inO
ctto
the
Parl
iam
enti
n N
ovem
b
rce
topr
epar
eob
er 2
004
and
er 2
004.
Mar
ch 2
005
48.
Law
onA
nti-
dum
ping
Mea
sure
s an
Cou
nter
vaili
ng M
easu
res
mpi
ng
bsid
ies
and
unte
rvai
ling
Mea
sure
s
TA
requ
este
dby
the
Min
istr
y of
Com
mer
ce to
prep
are
draf
t; Su
bmis
sion
to C
M is
exp
ecte
d in
Sep
tem
ber
2004
Mar
ch 2
005
d on
Ant
i-D
u
Su Co
and
to th
e Pa
rlia
men
t in
Dec
embe
r 20
04.
49.
Com
mer
cial
Age
ncy
Law
Gen
eral
Dra
ft c
ompl
eted
by th
e M
inis
try
of C
omm
erce
; Sub
mis
sion
to C
M is
exp
ecte
d in
Sept
embe
r20
04 a
nd to
the
Parl
iam
ent
in N
ovem
ber
2004
.
Febr
uary
200
5
118
Law
ent
Dat
e (
Parl
iam
ent)
Agr
eem
(s)
Stat
us o
f D
raft
Exp
ecte
d A
ppro
val
50.
Cri
min
al C
Bei
ngun
der
revi
ewby
the
Min
istr
y of
Jus
ticto
CM
isex
pect
ed in
Sept
embe
r20
04 a
nd to
in N
ovem
ber
2004
.
ode
Gen
eral
e; S
ubm
issi
onth
e Pa
rlia
men
tM
arch
200
5
51.
Law
on C
rim
inal
Pro
ced
Bei
ngun
der
revi
ewby
the
Min
istr
y of
Jus
ticto
CM
isin
Dec
embe
r20
04.
ures
Gen
eral
e; S
ubm
issi
onex
pect
ed in
Nov
embe
r20
04 a
nd to
the
Parl
iam
ent
Apr
il 20
05
52.
Com
mer
cial
Age
ncy
Law
Gen
eral
e;Su
bmis
sion
pect
ed in
Nov
embe
r20
04 a
ndto
the
Parl
iam
ent
June
200
5D
raft
com
plet
edby
the
Min
istr
y of
Com
mer
cto
CM
is e
xin
Dec
embe
r20
04.
53.
Civ
il Pr
oced
ure
Cod
eG
ener
albm
issi
on to
the
Parl
iam
ent i
n Ju
ne 2
005
Bei
ngdr
afte
dby
the
Min
istr
y of
Jus
tice;
Su
CM
is e
xpec
ted
in D
ecem
ber
2003
and
toM
arch
200
4.54
.C
ivil
Cod
eG
ener
alub
mis
sion
toC
M is
exp
ecte
d in
Oct
ober
2003
and
to th
ePa
rlia
men
t in
June
200
5B
eing
draf
ted
by th
e M
inis
try
of J
ustic
e; S
Dec
embe
r 20
04
55.
Law
on S
afeg
uard
Mea
sure
sSa
fegu
ards
y of
Com
mer
ce to
prep
are
draf
t; Su
bmis
sion
to C
M is
exp
ecte
d in
Nov
embe
r 20
04 J
uly
2005
TA
requ
este
dby
the
Min
istr
and
to th
e Pa
rlia
men
t in
Dec
embe
r 20
04.
YE
AR
200
656
.C
ompe
titio
n L
awG
TA
requ
este
dby
the
Min
istr
y of
Com
mer
cdr
aft;
Subm
issi
on to
CM
is e
xpec
ted
inO
ctto
the
Parl
iam
ent
ener
ale
topr
epar
eob
er 2
005
and
in D
ecem
ber
2005
.
Janu
ary
2006
57.
Secu
ritie
s an
dE
xcha
nge
Law
s m
yan
d Fi
nanc
e;ne
2005
and
to th
en
Oct
ober
200
5.
Janu
ary
2006
Gen
eral
Bei
ngdr
afte
dby
the
Min
istr
y of
Eco
nosu
bmis
sion
to th
e C
M is
exp
ecte
d in
JuPa
rlia
men
ti
Tab
le 1
(b):
Lis
t of
Stat
e-ow
ned
ente
rpri
ses
(as
per
Mar
ch20
03)
No.
Min
istr
y o
f en
terp
rise
Nam
eI.
STA
TE
-OW
NE
DE
NT
ER
PRIS
ES
1.M
inis
try
of A
gric
ultu
re, F
ores
try,
and
Fish
erie
s C
ompa
ny;
any;
Mem
ut R
ubbe
r Pl
anta
tion
Com
pany
;C
ham
kar
And
aung
Rub
ber
Plan
tatio
n C
ompa
ny;
Snuo
lrub
ber
Plan
tatio
n C
ompa
ny;
Pem
Cha
ng R
ubbe
rpl
anta
tion
Com
pany
;
Chu
p R
ubbe
rPl
anta
tion
Kre
k R
ubbe
r Pl
anta
tion
Com
p
119
120
Com
pany
; s
Com
pany
B
oeun
g K
et R
ubbe
r Pl
anta
tion
Agr
icul
tura
l Inp
ut2
Min
istr
y of
Pub
lic W
orks
and
Tra
nor
t Si
hano
uk V
Phno
m P
enh
Port
; K
ampu
chea
Shi
ppin
g A
genc
y an
d B
roke
r (K
AM
SAB
Lab
orat
ory
of C
onst
Roy
al R
ailw
Nea
k L
oPr
ek K
dam
Fer
ry
. sp
ille
Port
;
);
ruct
ion;
ay
of
Cam
bodi
a;
eung
Fer
ry;
3Ph
nom
Pen
h M
unic
ipal
ity
Phno
m P
enh
Wat
er S
. up
ply
4.nd
Ene
rgm
bodi
a (E
DC
) M
inis
try
of I
ndus
try,
Min
es a
y E
lect
rici
ty o
f C
a5.
Min
istr
y of
Eco
nom
y an
d Fi
nanc
e R
ural
Dev
elop
men
t Ban
k 6.
M
inis
try
of C
omm
erce
G
reen
Tra
de C
ompa
ny
II.
JO
INT
-VE
NT
UR
E E
NT
ER
PRIS
ES
(51
per
cent
Sta
te p
artic
ipat
ion)
C
amin
tel C
ompa
ny;
Cam
bodi
a Ph
arm
aceu
tical
Ent
erpr
ises
PREPARATION FOR WTO ACCESSION:
THE CASE OF ETHIOPIA
Mamo Esmelealem Mihretu LLM, Trade and Investment Law (Pretoria/Amsterdam)
19 January 2005
By:
121
This study documents Ethiopia’s preparation for WTO accession. Liberaliintegration into the world trading system were the main directions of Ethiopiatrade policy, pursuant to which Ethiopia applied for WTO membership. In EDiagnostic Trade Integration Study (DTIS) tried to identify the key constracountry’s integration into the multilateral trade system and into the global eclooking at both the supply and demand factors that influence the present levwith the rest of the world. Key government organs, representatives of the privcivil society and bilateral development partners were involved in overseeingprocess. It identified key prioriti
agriculture, manufacturing and tourism.
When it comes to the accession process, it was understood at the outset thatgenerated by this process is complex and includes submitting highly technical dto the WTO Secretariat and Working Party for Ethiopia’s accession and cbilateral and multilateral negotiations; major revisions to national legisimplementing institutions, establishing appropriate organizational andstructures within the government and securing donor support; andstudies, training activities, and consultations with stakeholders. Therefore, the Ethiogovernment decided to prepare a “WTO Accession Roadmap” that structure thand indicate approximate timing, priorities, and options regarding key issues.
The Ethiopian Roadmap to WTO accession identified two important orgissues. First it was clear from the beginning that the process of accession wilsignificant workload for the government. With highly skilled staff small in nalready stretched to limit by other bilateral trade negotiations, it seems obforeign advisory services will need to be used to a significant extent so that theprocess can be carried forward expeditiously. At the same time, it was the cleintention of the government that the government itself remains in charge of maaccession process. While other acceding countries have delegated lead role to foreign
Executive Summary
zation and’s foreignthiopia, a
ints to theonomy byel of tradeate sector,the DTIS
es as related to trade policies, legal and regulatoryenvironment, institutions, and trade facilitation as well as economic sectors such as
the tasks ocumentsonducting
lation and reporting
managing analytical pian
ese tasks,
anizationall present a umber and vious thataccession
arly statednaging the
advisors financed by bilateral donors, this approach was politically unacceptable for the Ethiopian government as it will lead to conflict of interest and lack of ownership of theaccession process. Accordingly, the Roadmap suggested a significant supporting role forForeign advisory services in those areas where adequate domestic expertise does not yet
122
exist, with a view to developing such expertise as the WTO accession nego
The second organizational issue is the location of the unit that does thegroundwork for WTO accession, i.e. prepares documents, coordinates the contrelevant ministries, manages training activities and consultations with stakehoThe Ethiopian government opted to leave the existing administrative structureWTO department is placed under the Ministry of Trade and Industry intact alRoadmap discusses the possibilities of creating a specialized governmnegotiations under the leadership of a minister-level official.
Key to successful WTO accession and membership is the existence of clear ancommunication with all of the stakeholders involved in the WTO. These partirelevant ministries, domestic businesses, donors and others. The Ethiopian roWTO accession therefore advincluding parliament, regional officials, the business community, civil society,possible negotiating positions.
A large part of the workload related to WTO accession consists in bringinlegislation (laws, regulations, administrative practices) and the institutional strits implementation into accordance with WTO rules, which are part of thUndertaking” and therefore not negotiable. Donor assistance can enable Eshoulder the significant administrative costs of the accession process and to imany WTO rules. The need to coordinate donor activities is also recognized asforeign consultants with overlapping mandates giving conflicting recommwould entail
tiationsprogress.
technicalribution oflders, etc.where the
though theent unit for trade
d continuales includeadmap to
ised the government to consultant with relevant partiesregarding
g nationaluctures fore “Singlethiopia tomplementtoo manyendations
much waste of time and money .The Ethiopian WTO Roadmap outlinedpossible areas of donor support in some detail, ranging from physical infrastructure through foreign advisory services(continuous and case by case),analytical and impact studies, training and capacity building and comprehensive legislative and institutional modernization.
123
1. Introduction
Liberalization and integration into the world trading system were the main diEthiopia’s foreign trade policy, pursuant to which Ethiopia applied for WTO min 2003. Presently, Ethiopia’s WTO accession process is in an opening stagenegotiations on trade in goods and services are not yet started, and considerremains to be done to bring Ethiopia’s legislative and regulatory system into cwith the WTO principles and requirements. The overall objective of this panalyze Ethiopia’s WTO accession process with the aim to: a) show the evEthiopia’s trade policies and related legislative and institutional reforms asWTO accession b) highlight the main challenging issues and documentpreparation for WTO accession c) make an assessment of the current staccession process. For these purposes, section 2 reviews trade policy impleEthiopia over the last 10 years as well as the institutional framework. Sectionthe process and the current status of Ethiopia’s accession to the WTO.examines Ethiopia’s preparation for WTO accession while section 5 looks into the possible implication of WTO membthe main conclusions based on the analysis m
2. Trade Integration in Perspective
Ethiopia began to emerge from an economically damaging period in 1991,military regime known as the Derg was overthrown after 17 years of rule (19In 1992, the new Government launched an economic reform programme amoving towards a market economy. This New Economic Policy took the creaenabling environment for both domestic and foreign private investment asobjectives. The series o
rections ofembership: bilateralable workonformityaper is toolution of related toEthiopia’sate of the mented in3 analyzesSection 4
ership for Ethiopian economy. Section 6 summarizesade in the previous sections.
when the74–1991).nd begantion of anone of its
f reforms since then have shifted the policy regime of the 1980s and did go a long way to create enabling environment for private sector investment.Progress in a liberalizing direction has been slow but it has been steady, and the private sector in Ethiopia (both foreign and domestic) agrees that the pace has picked up sharply over the past year or two107.
107 UNCTAD(2004) ,An Investment Guide to Ethiopia:Opportunities and Conditions p.1.
124
Ethiopia at a glance
Official name Federal Democratic Republic of Ethiopia
Political system Federal state with multi-party democracy
Surface area 1,133,380 sq. km
Population 70 million
Population density 62 per sq. km
GDP per capita $100 (at purchasing power parity $800)
Currency Birr
Exchange rates (February 2004) $1 = Birr 8.65
€1 = Birr 10.07
Official language Amharic is the working language of the Federal Government.English is widely used in business, in colleges.
Principal religions Christian (61.7 %), Muslim (32.8 %),
Source: World Development Indicators Database, and UNCTAD.
Ethiopia is unique in several respects.
It began its development efforts in earnest slightly more than a decade ago, folend of the Derg regime in 1991. It started this quest from a very low per capbase and with nearly all the indicators of human welfare from health, education to nutrition at low levels.
lowing theita income
The country is also predominantly peasant agriculture. This sector accounts for 40% of the Gross Domestic Product (GDP), 63% of exports, and 80% of employment. Coffee in particular is critical to the Ethiopian Economy.
125
GDP by Sector in 2002/2003
Source: OECD The g
Federal Democratic Republic of Ethiopia (FDRE). It is to be aAgriculture Lead Industrialization Strategy (ADLI).In other words, increasing agriculture productivity lies at the heart of poverty reduction given the importance of agrthe economy in national output, employment and exports.
overnment believes that the country can’t proceed to transform its economywithout raising agricultural productivity and modernizing the economy from a peasant subsistence agriculture to a commercial agriculture. This is indeed one of the goals of the
chieved through
iculture inigure alsofacturing
for about 12% of GDP. The service sector comprised of social services, trade hotels and restaurants, finance, real estate, and transport and communication accounts for about 45%of GDP.
2.1 Development Goals and Strategies of the Government of Ethiopia
For some countries, economic growth is the primary policy goal, and poverty reduction is to be achieved through measures complementary to growth. This is not the approach of
108As the above findicates, the industrial sector, which comprises small and medium-scale manuindustries, handicrafts, mining and quarrying, construction, electricity and water accounts
108 DTIS(2003),Ethiopia:Trade and Transformation Challenges-Diagnostic Trade and IntegrationStudy,P.12
126
the Ethiopian government. Poverty reduction is the core objective of thegovernment. Economic growth
109
The fundamental development objective ofm which enables the economy develop rapidly and poor people to beic ries from economic growth
Ethiopianis the principal, but not the only, means to this
objective .
the FDRE is to build a free-market economicsyste the mainbenef ia
The bro d PovertyRedu o
source oftion where the bulk of the poor live.
populace.e primary
y);n industry
l productsncreased support to export oriented manufacturing sectors particularly
ent;oing effort
o implementation of
ion-makingeness and service
delivery;ation of
k/provide-
¶ Agricultural research, water harvesting and small scale irrigation
110.
ad thrust of Ethiopia’s strategy during the Sustainable Development ancti n Program (SDPRP) period consists of111:¶ Overriding and Intentional focus on agriculture as the sector is the
livelihood for 85 % of the popula¶ The government gives overriding primacy to the welfare of rural
Agriculture is also believed to be a potential source to generatsurplus to fuel the growth of other sectors of the economy (industr
¶ Strengthening private sector growth and development especially ias means of achieving off-farm employment and output growth (including investment in necessary infrastructure);
¶ Rapid export growth through production of high value agriculturaand iintensified processing of high quality skins/leather and textile garm
¶ Undertake major investment in education and strengthen the on gon capacity building to overcome critical constraints tdevelopment programs;
¶ Deepen and strengthen the decentralization process to shift deciscloser to the grass root population, to improve responsiv
¶ Improvements in governance to move forward in the transformsociety, improve empowerment of the poor & set frameworenabling environment for private sector growth and development;
109 The Federal Democratic Republic of Ethiopia:Poverty Reduction Strategy Paper,P.,36110 Ibid.111 Ibid.
127
¶ Focus on increased water resource utilization to ensure food securit
A noteworthy chReduction Program (SDPRP) is therefore the clear attemdevelopment and rapid exporExport growth is perceived as one instrument of a broader development strIndustrial Policy also emphasizes the export-led industrialization whereindustrial sub sector; the export industry will play a leading role.
y;
aracteristic of Ethiopia’s Sustainable Development and Poverty pt to integrate private sector
t growth into a more comprehensive development program.ategy. Thewithin the
TO membership on January 2003113,her words,country isolicy step.stic trade
he DTIS isintegration
additional step forward fully consistenting of thenomy and e reforms
implemented resulted in a significant cut in import tariff rates, a reduction of the tariff dispersion and a decrease in the level of applied rates. At present, the country’s trade protection system includes no quotas, no seasonal tariffs and no tariff contingent, and
112
2.2 Ethiopia’s Trade Policy
Ethiopia had never been a signatory party of the GATT, and obtained the WTO observer status in October 1997. The country applied for Wand has just completed the Memorandum on the foreign trade regime. In otEthiopia’s accession process to the WTO is still in an opening phase, and thedeveloping various analyses in order to prepare itself to this important trade pAmong these studies, an important one was finalised in 2003: the diagnointegration study (DTIS).114 As we shall see later in this paper, the purpose of tnot limited to WTO accession but to identify key constraints to the country’sinto the multilateral trade system and the global economy.
Ethiopia’s application for WTO membership is anwith a policy that started approximately ten years ago. Indeed, since the beginn1990s, Ethiopia has been making significant progress toward opening up its ecohas notably improved its trade policy regime115. More specifically, the trad
112 MoTI,Industrial Development Strategy(Unofficial English Translation).P.32113 The General Council established the Working Party on February 2003.114The DTIS is a preliminary step in the Integrated Framework (IF) process. The IF was established in October 1997, and aims at facilitating the co-ordination of trade-related technical assistance to LDCs andpromoting an integrated approach to assist these countries in enhancing their trade opportunities.115 Subramanian A. et al. (2002), Trade and Trade Policies in Eastern and Southern Africa, IMF,Washington.
128
quantitative restrictions have been almost entirely eliminated. Currently, they aonly to used clothes and for security and safety reasons.
Among the other major improvements are the significant reductions in theitems included in the negative list used to determine import eligibility fexchange access, as well as the conversion of most specific tariffs into ad valoBy now, specific rates are used only for less than 3% of total tariff lines. Conthe current Ethiopia tariff structure is roughly fully consolidated. In other wolarge majority of import duties and taxes haLikewise, as a result of the tariff reform, the range of tariff rates narrowed240% at the beginning of the 1990s to 0% - 80% in 1995. The current tariffintroduced in 2003, consists of six rates: 0%, 5%, 10%, 15%, 20% and the higDuring the same period, the tariff bands (the number of official tariff rates) wfrom 23 to 6. It is important to note that the current rates are very close to thosbe used for the common external tariff of COMESA’s Customs Union (CU),maximum rate will be 30%.
re applied
number of or foreignrem rates.sequently,
rds, a veryve been set up in the external tariff.
from 0% - structure,
hest 35%.as reducede that willwhere the
s to whichlinked to
f processing undergone by the products in the country. The lowest tariff levels are mainly applied to capital goods, while the highest are reserved to consumergoods. A COMESA study illustrates this point, showing that the average tariff rate for
aterials, intermediate goods and consumers carry an 117 rotection
minal and [nominal]n level of.0 percent
respectively" .
116.
As is often the case, the range of the rates in relation to the types of productthey are applied follows an ascending tariff system (tariff escalation), which isthe amount o
capital goods is 12%, while raw maverage rate of 15%, 15.5% and 28% respectively . Therefore, the effective pfor some goods is above the nominal protection. The DTIS compared noeffective protection in Ethiopia, stating that a "weighted-average rate ofprotection of 22.2 percent in 1995 was associated with an effective protectio36.2 percent. The comparable figures for 2001 were 14.7 percent and 26
118
116 COMESA (2003), Preparation for the COMESA Customs Union, December, 2003.117 Ibid.118 DTIS (2003), Ethiopia: Trade and Transformation Challenges - Diagnostic Trade and Integration Study,Annex 1: The Synthesis.
129
2.3 Trade Structure Ethiopia’s 1999-2001 average total export value to the world was US$ 367 million,having grown at 5.25% annually since the early 1990s.In the mean time, the country’s 1999-2001 average total import value was US$ 887 million, having grown at 0.29%annually since the early 1990s.Ethiopia’s dominant export product group is coffee and live animals which accounts for 65.57% of the total export with an annual change of 6.75%.The second major export product group is non-oil raw materials such as hide and skins, oil seeds,etc., accounting for 17.87% of the total export. On the other hand, Ethiopia imports various products such as motor vehicles, capital goods, etc.119
Source: UNCTAD and National Bank of Ethiopia
119. World Bank Group, Country Analytical Briefs: October 2004
130
131
Source: UNCTAD and National Bank of Ethiopia
The EU is the leading export market as well as supplier for Ethiopia. Coffee is the leading product group exported to the EU, followed by leather. In the mean time, the EU supplies a wide range of products to Ethiopia. Next to EU, Asia is the second largest trading partner for Ethiopia. The country’s export to Asia accounts for more than 20% of the country’s total export and has been growing steadily at 5.29% annually. In particular, Japan imports Ethiopia’s coffee in large amounts. On the other hand, Ethiopia importsfrom Asia includes automotive related goods such as iron and steel products, motorvehicles and rubber tires.
Current Account (Percentage of GDP)
Source: OECD
Source: UNCTAD
As can be seen from the above chart, Ethiopia’s trade balance is structurally ne2002, total merchandise exports, with a value of around $400 million, weretimes smaller than merchandise imports, totalling $1.6 billion. Moreover, threcorded in 2002 was higher than in 1
At the bilateral level, Ethiopia also recorded trade deficits with practicallypartners. In 2002, among its roughly 140 trading partners, Ethiopia registered a trade surplus with only 20 of them.its relations with a limited number of countries. In 2002, five countries (thUnited States, Saudi Arabia, China and the United Arab Emirates) accounted fthe trade deficit.
The analysis of Ethiopia’s trade balance byexporter of almost exclusively two categories, namely agricultural goods atextiles and garments, while importing broadly every category of products.Ethiopia recorded surpluses in agricultural and food products as well as in leathand garments, but showed deficits in all the other main product groups. In
gative. Inabout foure trade deficit
995, when the exports/imports ratio was 1: 2.5.120
all of its
Ethiopia’s structural trade deficit is broadly explained by e EU, theor 63% of
product is simple, being the country an nd leather,
In 1995,er, textiles2002, the
picture is broadly identical except one major change: the country shows a deficit in textiles and garments.121
Unsurprisingly, the most significant import categories are also the major sources of trade deficits. This means that, in descending order, machinery and equipment, chemicals
120 National Study on the Impact and Sustaniability of the EPA for Ethiopia., P.27121 Ibid.
132
products, transport equipment, raw materials, minerals and fuel are all in deficirespect to Ethiopia’s trade with all partners.
t, with
d Status
ade policynment has degree of
ting
Ethi . Theissue ebates inEthi pros and cons opponentsargu domestic market to foreign
stand still e WTO as interest in
,it is difficult to say that the decision to start the accessioneffects areroups that
informal
atibility of the WTO
Agreements. Similarly, ten committees as per the different agreements of the WTO were set up. The study group and the committees submitted their findings to the Ministry of Trade and Industry which chaired the Steering Committee. The study concluded:
122
3. Accession of Ethiopia to the WTO: An assessment of Process an3.1 Decision to Join the WTO
Ethiopia’s decision to join the WTO is in line with its attempt to anchor its trreform process. Though Ethiopia is not a member to the WTO, the Goverundertaken the fundamental socio-economic policy change towards a greateropenness for reasons completely outside the WTO framework with the aim of integraEthiopia into the global markets in goods and services.
opia has gone a long way before finally decided to apply for WTO membershipof Ethiopia’s membership of WTO has been the focus of economic d
opia for quite some time. Some efforts have been exerted to examine theof Ethiopia’s membership to the WTO. In the course of these debates,
e that the immediate implication is the opening of thegoods, which will render many existing industries idle, bring most of them to aand eventually increase unemployment. Still, there are people who often see tha machine for endless and pointless liberalization and inclined little to take anGATT-WTO.Howevernegotiation has attracted sufficient public attention probably because its directnot yet known or felt. Nor does Ethiopia have strong industrial and financial gare eager to see Ethiopia joining the WTO and used both formal andmechanisms to influence government policy in this direction.
In 2000, the Ethiopian Government commissioned a study to assess the compEthiopia’s economic policies and accompanying laws and regulations vis-à-vis
122 Ibid
133
“….Ethiopia has in place an export-led economic policy and will benef
bring much pressure on the economic policy of thcommittee recommends that Ethiopia shou
top of this, in order to create awareness amont the multilateral trading system and the WTObeen organized in 1998 and 1999 in co
it from wider market access opportunities. Most of the rules and regulations are consistent with WTO agreements and complying with these agreements will not
e country. Therefore, theld join the WTO”123.
On g different stakeholders in Ethiopiaabou framework, two national workshops have llaboration with WTO and UNCTAD secretariats respectively.
As a re than five years, Ethiopia had tried to get well acquainted and be familiarized with the mult though it isdiffi thiopia's request for accessionwas circulated on 13 January 2003 and the General Council established a Working Party on 1 f the accession process, the Government of Ethiopia is now in the process of finalising its Memorandum on the Foreign Trade Regime, which is
[Finalised and to be submitted soon.]
tings
TBD: Documents on Agriculture, Services, SPS, TRIPS, Legislative Action Plan
TBD: Market Access Negotiations on Goods and Services
TBD: Accession Protocol
124
n observer in the WTO for moWTO Agreements and the working of the
ilateral trading system as well as building a negotiating capacity. Alcult to assess the impact of the various studies, the E
0 February 2003. As part o
due for submission to the WTO in the next few months. The Working Party has not yet met.
Ethiopia’s WTO Accession Process is Just Beginning January 2003: Application received-WT/ACC/ETH/1
February 2003: Working Party Established-WT/GC/M/78
TBD: Memorandum of Foreign Trade Regime.
TBD: Question and Replies
TBD: Working Party Mee
123 A summary of Studies Conducted to consider Ethiopia’s Accession to the WTO, June 2000.,p.12124 Introduction to the draft Ethiopian Memo., of Foreign Trade.
134
TBD: WTO Membership
Ethiopia’s decision to request WTO membership therefore is recent and capatrade area is still embryonic.
3.2 Rationale for JoinWTO membership becomes an objective for different countries for several reEthiopia, the overarching aim of trade integration to the global economy is toopportunities to transform the economy from a largely peasant agricultural ecomodern economy. For Ethiopia, a country with large and diverse resourcepotential, greater participation in world trade would provide additional opporaddress the challenging issues of economic growth and poverty reduction.
city in the
ing the WTOasons. Forexploit itsnomy to abase and
tunities to
ng secure
ation andrld marketbut also toalleviationowth andthe poor
tus from a
sustainedgricultural
export sector will significantly contribute to reducing the poverty situation in rural households. Similarly, better performance in the country's agro-processed and manufacture exports will reduce the incidence of poverty among the urban population through creating better employment opportunities and increasing the market for the actual and expected increase in agricultural production.126
125
Commercial BenefitsThe first important reason of joining the WTO for Ethiopia is increasi,transparent ,and predictable market access. As Ethiopia undertakes improvements in its trade regime, trade facilitinstitutional reform, it can increase the gains to these efforts more if the woopens greater opportunities to Ethiopia. This is important not only to export toimport at better prices than before. Market access issues are linked to povertyin a number of ways; greater market access allows a higher level of export grtherefore income growth. And, certain commodities that generate income forwill provide an additional impetus to poverty reduction, in addition to the imperise in income all around. The Ethiopian Government recognizes the importance of exports for rapid andeconomic growth, which is pro-poor. As the country's exports rely heavily on aproducts that originate mainly from smallholder peasant farming, developments in the
125 DTIS as above ,p.10 126 .PRSP.,p.108
135
However, most major trading nations in practice not only grant MFN trenonmember least developed countries like Ethiopia, but also move beyonddiscriminate in
access in shortmarkets, yet it loses shares in export markets due to low international compand supply-side. Although access to market on MFN basis is in practice anonmembers, it has always been subject to the prevailing diplomatic and politicThis uncertainty forces acceding countries into costly and unbalancednegotiations, which they could not afford and in which they would sedisadvantaged. For example, Ethiopia had to conclude 96 bilateral trade and traagreements mostly wNo doubt, WTO membership will transform a trade policy environment characunilateralism and discretion into one of rule based, secure MFN treatment
atment to that and
their favour under various trade preference schemes. Realistically, therefore the immediate benefits of WTO membership in terms of improving market
term is less evident. Ethiopia in principle have free access to major etitivenessvailable toal winds.127
bilateralverely bede related
ith WTO member countries to give and secure MFN treatment.128
terized byInstead of’s Disputecies. This thiopia toof market
arity about
ip is seen by Ethiopian government as credible means which in turn will help the country attract
ents, and ons to foreign and
domestic investors. The Ethiopian government considers fast accession to WTO important to enhance credibility and overcome perceptions of high risk of policy reversals and uncertainty.
Overall, participation in the multilateral, rule-based system far outweighs relying onbilateral and regional agreements. Although membership does not directly solve problems that arise out of poor domestic supply constraints, it improves the stability of
129.having to rely on bilateral negotiations, Ethiopia will have access to the WTOSettlement Mechanism to resolve potential conflicts over trade related polirepresents a significant improvement for Ethiopia. Therefore one reason for Eaccede to the WTO is to ensure the predictability, security and transparencyaccess. Indeed for business, WTO membership means greater certainty and cltrading conditions.
Economic Benefits
Secondly pursuing WTO membershof gaining enhanced international reputation, solid investment by translating concessions into international legal commitmthereby providing powerful guarantees of governments’ policy directi
127 .Mamo Esmelealem, Accession of LDCs to the WTO:The Terms and the Process(2004).P.,128 .Draft Memorandum For Foreign Trade Regime,p.75.129 M. Esmelealem, above,p.4
136
market access, helps improve good governance and played a role in stredomestic policies that support market economy and ensure transparency. WTO helps by opening up Ethiopia’s own market to greater competition and expanding copossibilities; by expanding export opportunities for efficient producers; and prframework of rules guaranteeing the first two benefits, and thus promotininvestment and development.
4. Preparation for Negotiations
4.1 Studies by State and Non-state actors
The major study that is conducted in relation to Ethiopia’s integration isTrade Integration Study (DTIS) under the Integrated Framework (IF) process.
ngthening
nsumptionoviding ag private
Diagnostic0
the Worldthe trade
t from the mplementsn a more
between trade and poverty reduction, and c) cific recommendations on systemic and sectoral issues such asof exports, improved market access, removal of trade constraints, reform
outputs invelopmententified in
teral tradend factors a program
ability to increase its participation in
13
The study, among other things, is also intended to help Ethiopia’s accession toTrade Organization by getting a detailed and well documented picture ofregime, the legal and institutional features of the regime and to enlist suppordonor community to help with the process. The DTIS prepared for Ethiopia cothe SDPRP by a) treating trade, private sector and investment issues icomprehensive manner, b) showing linkageproviding spediversificationof trade support institutions and facilitation, improvement of productivity andagriculture, livestock and meat, and manufacturing industry, as well as on deof tourism. In other words, it gives policy and strategy content to trade issues idthe Poverty Reduction Strategy Papers (PRSPs).
It identifies the key constraints to the country’s integration into the multilasystem and into the global economy by looking at both the supply and demathat influence the present level of trade with the rest of the world. It suggestsof technical assistance to strengthen Ethiopia’s
130 The Integrated Framework (IF) was established in 1997 by a high-level meeting of the World TradeOrganisation in order to facilitate the coordination of trade-related technical assistance (TRTA) to leastdeveloped countries (LDCs) and to promote an integrated approach to such assistance to ensure integration of trade with national development strategies. The six agencies participating in the IF are the IMF, ITC,UNCTAD, UNDP, the WTO, and the World Bank and they are supported by major bilateral developmentpartners.
137
world trade by enhancing its competitiveness and consequently deriving largfrom trade than at present. The technical assistance is to support the recommenactions identified by the earlier version of the DTIS that was extensively discusDTIS validation workshop in November 2003 that was further reviewed and rthe Technical Group constituted to guide the DTIS.
a) DTIS Process.
Two committees have been set up to oversee and provide continuous supportduring the IF/DTIS process, namely
others, officials oDevelopment which was responsible for the preparation of the PRSP, Ministry of Agriculture, key bilateral development partners, the heads of the three IFrepresented in Ethiopia
er benefitsdations forsed at theefined by
and advice, a) the National Steering Committee, and b) the
National Technical Committee. The National Steering Committee is comprised of, among f the Ministry of Trade & Industry, Ministry of Finance and Economic
agenciesChambersf Trade &
providesprised of
mbers of sented in
for IF. He ing a close link between the
two committees. The World Bank, UNDP, and the EU have been actively supporting the IF proc of their staff in the IF/DTIS TC,with the
b) Find
The DTIS has identified a number of constraints and issues that affect the performance of the trade sector in Ethiopia. They are related to trade policies, legal and regulatoryenvironment, institutions, trade facilitation as well as economic sectors such as
131, the President of the Ethiopian and the Addis Ababaof Commerce and other business community representatives. The Minister oIndustry is the Chair of the National Steering Committee.
The Technical Committee oversees technical issues of the DTIS process andtechnical advice to the National Steering Committee. The committee is comtechnical experts from relevant government ministries, agencies and major sectors engaged in international trade and trade facilitation, including the chacommerce, as well as officers of major bilateral and multilateral agencies repreEthiopia. The Head of the Foreign Trade Coordination Department of the Ministry ofTrade & Industry is the Chair of the Technical Committee and the Focal Pointis also a member of the National Steering Committee, provid
ess in Ethiopia through the regular participationEU playing the role of a facilitator.
ings of DTIS
131World Bank,UNDP and IMF.
138
agricultu mentsin trade tutions, and trade facilitation will serve th necessarybut not su ization ofEthiopia. O f Ethiopiahosted the “DTIS Validation Workshop”. Representatives from public and private sector,
iew of thehiopia.
recommendations to address
them under each thematic area with the following specific objectives:
a) Creating a conducive incentive structure for trade pian’s exports
c) Poverty reduction through trade, particularly export growth
trade and
services and thus removing “at the border” rder” constraints
ncing the
rmance of
The discussions at the Workshop indicated that issues and constraints identified in the
mendations made and Trade related technical assistance (TRTA)
proposed under each thematic area, are overall valid and acceptable.
re, manufacturing industry and tourism. The DTIS concludes that improvepolicies, legal and regulatory environment, instie goal of greater integration into the world economy. As such, they are
fficient to address the issues of poverty reduction and industrialn November 10-11, 2003, the Ministry of Trade and Industry o
civil society organisations, and the donor community contributed to the revDTIS and discussed the next steps of the Integrated Framework for TRTA in Et
The DTIS identified issues and constraints and proposed
b) Improving market access for Ethio
d) Increasing Foreign Direct Investment (FDI) e) Creating a conducive legal and regulatory framework for
investmentf) Improving trade facilitation
and “behind the bog) Building the capacity of trade support institutionsh) Increasing agricultural productivity and diversifying and enha
volume of exports from such sub-sectors as horticulture, livestock and meat, sugar, leather and textiles as well as enhancing the perfothe tourism sector.
DTIS, as well as recom
139
c) Prioritisation of Action Plans & Recommendations
to be taken to address issues and constraints identified in the DTIS, i.e., pr
deration is given to those recommendations:
1. That are specific and c2. That are not wide-ranging or too ambiguous to take action on, 3. That are in line with issues/constraints that are widely accepted areadily implemented,4. That are complementary to, or have added value, to government policies and
5. For which there is an implementing instituti6. With relatively higher leverage in terms of impact on trade facilintegration.
commended Priorities
conducting a general review of all the DTIS recommendations, the
orities under Trade Reform & Incentive Structure 1. Revamp present privatisation program to bring about a greater priv
participation in trade and industrial activities, addressing the problem
to capital of the private sector.
2. Build capacity of MoTI (Ministry of Trade and Industry) and otheragencies to operate the duty rebate scheme and bonded warehouse syefficiently and effectively in order that exporters have a
The TC employed the following criteria to prioritise DTIS recommendations and actions
iority
consi
lear,
nd can be
strategies,onal capacity, and
itation and
d) Re
After Technical
Committee prioritised the action plans and corresponding TA’s using the above criteria.
I. Priate sector
of access
relevantstem more
ccess to raw materials and inputs at world market prices.
II. Priorities under Market Access – “Beyond the Border Issues”
140
1. Enhance negotiating capacity of institutions to overcome tariff- andbarriers imposed in botexport bundle. 2.Take measures for the diversification of Ethiopia’s export bundle,relatively small and concentrated to mainly agricultural products andfaces negative growth in world markets, through bilateral and magreements such as
riorities under Foreign Direct Investment & Trade 1.Ensure that the legal and regulatory framework is conducive to attrastrengthen the institutional capacity of the Ethiopian Investment Comthat it can deliver efficient and effective services in accordance withinvestment code, while at the same time reviewing areas of improvemaking changes as necessary; and also create awareness amongst investhe legal and regulatory framework through familiarization workshbased information, brochures, investment f2. Consider fast accession to WTO to enhance credibility andperceptions of high3. Review the present land lease system to make it conducive to FDIit more affordable, accessible and by enhancing tenure security.
license as well as investments permits; andthereon in a sustained manner.
5. Provide better access to irrigation schemes, electricity, and water,telecommunication finfrastructure as well as by building new infrastructure as a basic requitrade and investment growth; and also promote Public-Private Partninfrastructure development.
. Priorities under Leg
non-tariffh developing and developed countries on Ethiopian
which iswhich also
ultilateralCOMESA and the implementation of EBA and and
negotiation of EPA.
III. Pct FDI andmission so
the latestment and tors aboutops, web-
ora, exhibitions, etc. overcome
risk of policy reversals and uncertainty. by making
4. Implement the new simplified procedures for trade registration, business continue improving service delivery
road, andacilities through more efficient utilisation of existing
rement forerships in
IV al and Regulatory Structure and Trade and Investment1. Develop a legal framework to create a stock exchange, or capital market, topool finance for investment and for buying and selling shares to address the current setback the privatization effort has faced due to the absence of a viable capital market, particularly the absence of an entry and exit mechanism through an established share market.
141
2. Implement the competition law by creating the necessary inrrangements to ensure that bot state and p vate enterpr ses are engaged in
trade practices and that there is a level playing field for all participaand make improvements to the law as appropriate.3. Enforce the right to pledge leased land for collateral purposes, partsecure loan from banks.4.Improve the export credit guarantee scheme through the separation orisks, namas by minimizing delays in effecting payment.
V. Priorities under Institutions and Institutional Support 1. Strengthen the institutional capacity of MoTI in order that it candischarge its apex responsibility of a) formulation of all trade relatethrough the involvement of the private sector, and b) coordinationissues.
2. Undertake legislative reforms to conform to WTO requirements awithin MoTI additional staff with adequate management as well asexpertise in trade policy and related issues.
3. Involve M Tengaged in trade matters.
4. Strengthen the chambers of commerce so that they provide efficient andeffective advocacy and trade support services. 5. Establish an internationally recognised conformity assessmsystem to enhance trade competitiveness in terms of quality and perf
6.Improve access to information on international trade policy andevelopment through investment in ICT and strengthen the incapacity of trade support institutions such as MoTI and chambers ofin the gathering and
stitutionala h ri i fair
nts in trade,
icularly to
f the twoely the non-performance of the exporter and that of the buyer as well
effectivelyd policies,
of trade
nd employtechnical
o I in the recruitment and supervision of diplomatic personnel
entormance.
d marketstitutionalcommerce
dissemination of trade related information to all stakeholders.
e) Implementation of DTIS Recommendations /Action PlansThe prime responsibility for coordinating the implementation of the DTIS recommendations lies with MoTI. However, there are capacity limitations at MoTI in the area of qualified human resources. There is an immediate need to build the capacity of MoTI in the areas of trade policy formulation, analysis, and monitoring and evaluation,
142
particularly, now that it has to oversee the trade reform measures to be undaccordance with the DTIS recommendations.
There is a need to coordinate donor support to the IF/DTIS process, in view onumber of areas of interventions and technical assistance recommended in theAgain, MoTI was entrusted with the task of soliciting as well as coordinasupport to the IF process.
4.2 Organisation of negotiating effort within the Ethiopian government
TO accession presents significant challenges to any developing couninistrative capacity for conducting negotiations and implementing commitssarily limited. The challenge becomes all the more e
ountries like Ethiopia. WTO members have to implement the “Single Undeplex set of ground rules for trade in goods, trade in services, and the pro
related intellectual property rights. It will indeed be difficult to fill thebetween the legal framework in Ethiopia and the requirements of th
ertaking”.
ertaken in
f the large DTIS.
ting donor
W try where adm ments are nece normous for least developedc rtaking”-acom tection oftrade significantgaps e “SingleUnd
Ther basis of adedi domestictrade tions to a succ d physicalreso t adequater organisedand he tablingof th
From portant in the a
132
e is no question that WTO negotiations require the services on a full timecated group of professional civil servants with expertise in international and
matters. The success of the Government in bringing accession negotiaessful and timely conclusion will depend importantly on the human anurces that it brings on the issue.133It is essential to a successful effort tha
esources are made available and equally important that they be deployed in ancoherent manner throughout the upcoming negotiation process; following te Memorandum on Foreign trade Regime of Ethiopia.
the start the Ethiopian government considers the following elements as imccession process.134
132 A Roadmap for Ethiopia’s WTO Accession (and Other Impending Trade Negotiations).,p.6133 Ibid.,p.7134 Interview with WTO Department Heads at MoTI and MoFA.
143
1 acceleratetify, coordinate, and manage
numerous procedural steps along the path to full membership.rnment of e regime.vestment
ails identification and revision of all laws, regulati entially beimpacte
3. Institutional Strengthening: WTO membership is predicated on a government’sabili t develop, review,and e particular.Enhanc of theMinistry sed by the WTO, i overed bythe personnel.
4. Relationship Building and Information Dissemination: Key to successfulWTO accession and membership is the existence of clear and continual communication with all of the stakeholders involved in the WTO. These partiesinclude relevant ministries, multilateral organizations, donors and foreign and domestic businesses. It is critical, therefore, that the government maintain a strong relationship and an open channel of communication with the WTO and with WTOmember countries. It is also equally as critical that all of the major constituencies within Ethiopia be educated on the benefits of WTO membership and that theyare committed to becoming a member of the WTO system.
To guide the accession process in an organised fashion, the Ethiopian government inconjunction with World Bank commissioned a report to prepare a Roadmap forEthiopia’s WTO Accession within the framework of the latter’s Private Sector Development Project. The resulting report presents:
- a series of options for the Government to consider in organizing itself for the conduct of the negotiations
- an approximate timetable for the WTO Accession negotiations - a preliminary list of capacity –building and other technical assistance
projects (training, analytical support ,technical support,
. Process Management: WTO accession is a process driven activity. Tothis process, it is critically important to iden
2. Policy Reform: At the most basic level, the challenge to the GoveEthiopia in its efforts to join the WTO is to upgrade the Ethiopian tradWTO membership requires compliance with dozens of trade and inrelated laws and regulations. This ent
ons, administrative practices and other measures that will potd by WTO accession.
ty o employ a wide variety of governmental structures toex cute trade policy in general and with respect to the WTO in
ing and strengthening the technical and institutional capacityof Trade and Industry is important so that all topics encompas
ncluding services, goods, customs, agriculture, and others are c
144
administrative capacitywill be required to prepare th
Organization Chart for Ministry of Trade Model
building ,organizational arrangements) thate Ethiopian Government for the
accession negotiations ahead.
A. Options Presented for the Location of the Trade Negotiations Unit within theGovernment.
1. Ministry of Trade Model
This model most closely approximates the existing structure in Ethiopia for the conduct of the WTO accession negotiations. Under this approach, the Ministry of Trade and Industry (MoTI) has carriage of the WTO accession file, including responsibility for the
Council of Ministers
Steering Committee on TradeNegotiations: MoTI, MoFA,MoI, MoFED, MOARD, etc
Minster of Trade and Industry Chief Negotiator
Head of WTO Department in MoTIDeputy Chief Negotiator
Deputy Chief Nego(Geneva)
tiator
Technical Commitees for trade ingoods,services,TRIPs
Foreign Advisors(Possibly based inWTO Dep., of MoTI
145
development of policy, conduct of the negotiations and reporting to the CMinisters on negotiating outcomes
ouncil of
cture that it is also a
e fact that e done to
to this structure however can be significant. As currently constituted, the Ministry of Trade and Industry(MoTI) does not have all the necessary expertise or the
t will haveghout thel, becauseade at anyee for the desired.
2. Trade Negotiations Office
Under this option, the Ethiopian government is advised to create a separate Trade Negotiations Office, which would be staffed by experts from across the EthiopianGovernment. Such an office could be housed in separate premises from existing ministries and would be financed by a special appropriation from the national budget, which would continue for the duration of the WTO accession negotiations. The office would be overseen by a Chief Negotiator who would be appointed by the Prime Minister with a specific mandate to lead the negotiations on WTO accession for the EthiopianGovernment. While the reporting lines for the Chief Negotiator could vary, it would be essential under this model for there to be a Council of Ministers-level Steering Committee .This Steering Committee would be responsible for providing policy guidance to the Chief Negotiator as he pursues his mandate and would also be the principal body for reporting on progress in the accession negotiations to the rest of Council of Ministers and the Prime Minster.
135.
The advantage to this in Ethiopia model lie chiefly in that it is a familiar strudoes not require any significant change to existing government structures andrelatively simple reporting framework for the government. Also, the implementation of the results of the negotiations by the Ministry of Trade will be facilitated by ththe Ministry itself negotiated the agreements and thus best knows what must bimplement them in day-to-day practice after accession.
The disadvantages
physical infrastructure necessary to carry out the complex WTO negotiations. Ito rely on other government ministries for technical assistance throunegotiations. Such assistance may not always be available at a desired leveother ministries might have different priorities from those of the Ministry of Trgiven time. While there is currently an inter-minsterial Steering Committnegotiations, such committees have not always functioned in other countries as
135 Roadmap,p.10
146
This model for the conduct of WTO accession negotiations avoids any of the problemsinherent in the Ministry of Trade Model and may better facilitate the development of indigenous Ethiopian trade policy expertise. A principal advantage of a centeralised trade office lies in the pooling of available talent and resources in one location where the skillsof officers involved can be concentrated on the WTO negotiation effort. This approach would permit the government to select the best qualified officials for the WTO accessionnegotiations from across the government, rather than having to rely on a few ministriesfor the bulk of its expertise.136
136 Road Map as above 13.
147
Organization Chart for Ethiopian Trade Negotiations Office Model
Cabinet
Steering Committee on Tradenegotiations:MoTI, MoFA, MoI, etc
Chief Negotiator
Trade Negotiation CoordinatingCommittee: high officials from allaffected ministries
Deputy ChiefNegotiator -Geneva
Deputy Chief Negotiator, Addis AbabaHead of Trade Negotiations Office
Technical Committee for goods, TRIPS,Services
Foreign Advisors
148
A centeralisd office on the other hand will ensure that the official‘s time is de
To the extent that foreign donor assistance might be av
than a broad spectrum of government ministries
votedexclusively to the WTO accession rather than to competing internal Ministry concerns.
ailable, it is likely that a donor might be more attracted to providing resources for a single, well-organised entity rather
n processTrade inTechnical
inistry ofinistry of
Standardmembers
ambers of invited in
d providesittee is comprised of
e Foreign& Industry and now under the
new structure the head of the WTO Department is the Chair of the Technical Committee and the Focal Point for the accession process. He is also a member of the National Steering Committee, providing a close link between the two committees.
The present structure of the Ministry of Trade and Industry closely resembles the first model suggested by the road map to WTO accession. In fact, the roadmap is based on the existing organizational form of the Ministry of Trade and Industry.
137.
B. Existing Negotiating Structure of the Ethiopian government
The Ministry of Trade and Industry is the focal point for Ethiopia’s WTO accession negotiation efforts. Two committees have been set up to oversee the accessiogenerally and to guide the preparation of the Memorandum of Foreignparticular. These are a) the National Steering Committee, and b) the NationalCommittee.
The National Steering Committee is comprised of higher officials of the MTrade & Industry, Ministry of Finance and Economic Development, MAgriculture, Ministry of Revenue, Ministry of Infrastructure, Ministry of Health, Ministry of Information, the National Bank of Ethiopia, Ethiopian Customs Authority, TourismCommission, Investment Commission, Environment Agency, Quality andAuthority, and the Ethiopian Parliament. Asked if business representatives areof the Committee, the Head of the WTO Department answered that the ChCommerce in Ethiopia are not members of the Committee. However, they areevery meeting of the National Steering Committee.
The Technical Committee oversees technical issues of the accession process antechnical advice to the National Steering Committee. The commtechnical experts from relevant government ministries, agencies and major sectors engaged in international trade and trade facilitation. Formerly the Head of thTrade Coordination Department of the Ministry of Trade
137.Road map to WTO accession, as above, P 13
149
5.3 Foreign Advisory Services
In light of the experiences of other WTO acceinvolved in the accession process in a wide variety of ways. These range from veryminimal involvement, targeted towards the resolution of narrow technical issuesrole coordinating and managing the accession process.
While minimal involvement of foreign advisors would be desirable ifadministrative capacity and experience were freely available within the governclear that there is a pronounced need for capacity building within thegovernment to permit officials to engage ina need for foreign advisory services to play a stronger, supporting role for at least the fphase of the negotiations for most issues, and likely until the end of the negotthe most technical issues such as agricultural subsidies and financial services,to Roadmap for Ethiopia’s Accession to the WTO.
The United States Government for example offered to include Ethiopia in a fuprogram known as the “Doha Project for WTO Accession and Participation”manage, and implement their WTO accession process. The offer includesvarious activities, ranging from the small-scale kind oassistance is provided by short term technical experts visiting Ethiopia, to lprograms .On the other hand a full scale WTO Project where the Foreign Advaccession process has key coordinating role is neither workable nor politically accepto the Ethiopian government. Doing so would give rise to risk of undermownership of the accession process by the Ethiopian government.
Accordingly the roadmap recommends a significant supporting role for foreigservices where the g
such expertise as the WTO accession negotiations
ssion countries, foreign advisors may be
, to a key
sufficientment, it is Ethiopian
the WTO negotiating process. This indicates irst
iations foraccording
lly-fundedto design,a host of
f programs, where intermittentarge scaleisor in the
tableining the
n advisoryovernment would utilize the services of foreign advisors for those
areas where adequate domestic expertise does not yet exist, with a view to developingprogress. Foreign advisors would
accompany all aspects of the work of the Technical Committees during the initial information –provision phase, while reducing their involvement during the subsequent negotiation phase as domestic skills and capacity increase and experience with WTO issues develop over time.
150
5.4 Involvement of the Private Sector in the Accession Negotiation
The role of the private sector for sustained, pro-poor economic developmenclearly set out in the Government's legal, institutional development policy, strprogrammes. Because of the fact that the private sector is at its infancy stageto get out of real and perceived handicaps, the Ethiopian government recogstrong institutions of dialogue and consultation will be productive. Moreovsector institutions giving support and services to the private sector are stilearning and development stage. This makes the establishment ofconsultation forums an essential component of the government’s PrivaDevelopment (PSD) program. The efforts already underway will be nurturedadvanced co-operation and partnership between the private sector and the Gove
Since Ethiopia’s accession is in its opening phase, the involvement of the non ssuch as the private sector and scholars is still minimal. The Private Sector istructured enough to influence the accession negotiations. The government in pwith the donor agencies is trying to have analytical and impact studies ustarting from this year that will inform the government’s negotiating poexpressed through the initial tariff offer and the initial offer for trade in servprivate sector needs to be effectively mobilized so that its views, which oftewith the official view, can be harmonized and integrated into the strateggovernment.Accordingly the suggested roadmap to Ethiopia’s accession to the WTO adgovernment to consult with relevant stakeholders, including parliamentofficials, the business community, and civil society, regarding its possible npositions. Such consultations may enable the
t has beenategy andstrugglingnizes thater, publicll in their
public-privatete Sectorfor more
rnment.138
tate actorss not well artnershipndertakensitions as ices. Then conflict
ies of the
vises the , regionalegotiating
government to obtain, through the reactionsof stakeholders, a fuller view of the possible impact of WTO accession on the Ethiopianeconomy and society; at the same time the government may want to manage the consultations carefully to avoid any disruptions to the accession process from untimelyand possibly ill-informed public debates. Consultations should continue as appropriate while bilateral and multilateral negotiations evolve.
138 . PRSP.,P.108
151
At present the National Public Private Partnership Forum139, together with resectoral fora, offers an important venue for structured and open policy dialoguthe two sectors in Ethiopia. During its first year of operation, the PPP Faddressed important issues relating to the creation of a more enabling environmprivate sector.
gional ande betweenorum has ent for the
ession willdevelopment will be
required for the institutions of the Forum both in the public and private sectors.
Accession Planning
s, at bothlicy in all
multilateralregional
ations.
toring and
ection andrent trade
pia. Priority measures are needed in strengthening of MoTI’s institutionaland senior
advisory services.
Strengthening of the institutional capacity of private sector and civil society organizations is needed, so that they can provide efficient and effective advocacy.141The problem of
140 The concern of the business community regarding WTO accno doubt will be raised in this Forum. However, significant capacity
4.5 Challenges in the
4.5.1 Trade policy Expertise
In Ethiopia, as in most LDCs, the public and private sectors lack the capacitiethe institutional and the human levels, to cope with the complexities of trade poits multiple phases and consequences, as well as with the intricacies of thetrading system and of the obligations stemming from the bilateral andagreements. WTO membership will considerably add to these burdensome oblig
Current weaknesses in trade policy analysis, formulation, negotiation, moniimplementation are hampering the country’s trade performance and implementation of trade reform. The absence of an effective institutional framework for data collanalysis of trade policy matters further undermines the development of a cohepolicy in Ethiocapacity, by providing the Ministry with additional staff, training of juniorofficers, and trade support infrastructure, such as computer facilities and external
139 In July 2002, the Ethiopian Prime Minister endorsed the request for stronger partnership andconstructive dialogue expressed both by representatives of the Government and by the Private Sector (PS),and underscored the need for institutionalising these consultations through a formal structure within MoTI.The Ethiopian National Public Private Partnership Forum was established towards the end of 2002 and heldquarterly meetings since its inception.
140 Government of Federal Democratic Republic of Ethiopia and United Nations DevelopmentProgramme,Support and Facilitation for Private Sector Development.,p.3141. National Study on Impact and Sustainability of the EPAs for Ethiopia,p.10
152
limited analytical, policy making and negotiating experience is also presengovernment institutions-not just MoTI. These problems already arise in thepreparing the Memorandum on Foreign Trade Regime while collectinginformation on the foreign trade regime and legal and institutional frameinfrastructure for collection of reliable and accurate statistics is not well devepreparation of the Memorandum took nearly two years now and there were disaover what point to include. An indep
4.5.2 Coordination with various Ministries and Relevant Agencies
One of the most challenging and time-consuming tasks during the accessioncoordinating at the intra-governmental level. WTO accession will require eand input from many ministries, including Trade and Industry, Finance andDevelopment, Foreign Affairs, Agriculture and Rural Development, Informatand Energy, Labour and Social Affairs, Infrastructure, and
Ethiopian Science and Technology Commission.
4.6 Existing Initiatives to assist the Ethiopian Government in its endeavour to acWTO
Trade-related technical assistance has been made available to Ethioporganisations such as WTO, UNCTAD, ITC, IMF, World Bank, UND
y bilateral donors such as the EU and USAI
he trade-related technical assistance programmEU – Capacity building for ACP StEU – Pesticides Initiative Programme
t in other phase ofdetailed
work. Theloped. The greements
endent Ethiopian academic has commented on it and his comments has been duly incorporated.
process isngagementEconomic
ion, Minescapacity Building, and other
government institutions such as the National Bank of Ethiopia, Standards Authority, and
cede to the
ia by internationalP and WIPO and
b D.
T es currently in progress include: ¶ ates in support of the EPA negotiations ¶ (PIP)¶ EU – Investment Facility and Pro Invest Programme¶ SIDA – Support of the Chambers of Commerce¶ UNCTAD – Trade Negotiations Training ¶ USAID – Legal support for WTO accession
153
¶¶ rld Bank – Preparation of a Road map for Ethiopia’s WTO Accession (August
2004)
ion Trade
project toral offers,roject will plications
akeholdersthiopia to terally. It
te sector (including Chambers ofa stronger
Ethiopia stayed in Addis Ababa from 23-31January 2004 to assist the Ethiopian Authorities in preparing their Memorandum on the
the WTO
physicalequipmentppropriateon processs, without
portant reference toolavailable in the area of WTO law in the form of the WTO website, is indispensable bothfor communication with other officials and research on the many different topic in whichthey have to be expert. As for library and reference materials, there is currently nocomprehensive collection of WTO and related international trade materials.
World Bank – Private Sector Support Wo
The EU and COMESA are also considering a comprehensive Euro 5 MillCapacity Building Programme, which include activities targeted at supporting a Road Map for accession to the WTO.In February 2005, the government in partnership with the EU will implement aundertake impact studies, to prepare replies to working parties queries, sectonegotiation offers, and improve negotiating capacities. It is expected that this pcontribute to a deeper understanding of Ethiopia’s trade and WTO accession imnot only within the WTO Technical Committee in particular, but across stmore broadly. It will create an enhanced ability within the Government of Emaster the accession process and to negotiate its terms bilaterally and multilawill also hopefully build awareness in the privaCommerce, Industry Associations and larges businesses) so that they can playbusiness advocacy and policy forming role.
UNCTAD’s technical advisory mission to
Foreign Trade Regime for submission to the WTO and also to sensitize onagreements and on the process of WTO accession.
However, donor measures can still be used in the provision of basicinfrastructure for Government ministries in terms of computer and other officethat will permit officials to perform their functions as well as to undertake atraining. Most government bodies in Ethiopia that are involved in the accessiare seriously deficient in basic computer equipment. In addition ,internet acceswhich government officials are deprived of the single most im
154
5. Possible Implication of WTO membership for Ethiopian Economy
As part of the accession process, Ethiopia will conduct negotiations on conmarket access for imported goods and services, as well as on possible transitiand special and differential treatment in implementing certain provisions ofSingle Undertaking. In practice, many accession countries have been asked,agreed to make concessions and commitments that go beyond those of coincumbent WTO members. An OECD paper observes that “although eachprocess is specific, reflecting the particular economic and trade structurecountry, the emerging common pattern includes the following set of requiralmost total binding of tariffs at considering low levels; ii) national treatment,in the fiscal area, for good and services; iii) fair and transparent customs valuunbiased import licensing ;v) elimination of distorting export mechancommitment to protection of intellectual property rights; vii) negotiated marketsome specific sectors; vii) transparent testing procedures for standards and certification,
investment barriers, x) to a lesser extent possible the participation inagreements”.
5.1 General
ditions of on periodsthe WTOand havemparableaccession
s of eachements: i) including
ations; iv)isms, vi) access in
viii)transparent testing procedures for standards and certification; ix) limitation of plurilateral
erstandingliberalize
While the topics need full-scale analytical studies, we can at least outline some of the key issues that are
p in the negotiations based on preliminary understanding of Ethiopia’s current trade-related policies and previous accession experience of other countries.
While Ethiopia has significantly reduced its import tariff in recent years, the current level and dispersion of tariff rates are still substantial. However, during coming years, the most far-reaching change in import tariffs may result not from WTO accession, but from
142
There fore as Ethiopia embarks on the negotiations, it will need a through undof the economic and social implications of a wide variety of measures toimports of goods or services that Working Party may ask it to undertake.
likely to come u
5.2 Trade in Goods
142 OECD,Designing New Trade Policies in the Transition Economies,Paris,1997.Similar claims inUNCTAD,WTO Accession and Development Policies(2000).
155
Ethiopia’s proposed participation in the COMESA free trade area and theEconomic Partnership Agreement with the European Union. Under both schemfor most categories of imports (“substantially all trade” according to ArticleGATT(1994)) from the members of the respective agreement (COMESA counEU) would eventually be set to zero; tariffs on imports from other sources wouunchanged. While tariff reductions could be phased in over a lengthy transitithe loss of protectionprotected Ethiopian firms.
On issue of agriculture, as a least developed country, Ethiopia will be expectbut not to reduce, its agricultural support.
proposedes, tariffsXXIV of
tries or theld remain
on period,could require significant adjustments on the part of hitherto
ed to bind,–Related
the futuremight be
ether anyningful policies for food security, which might be instituted in the impossible to implement through unrestricted (green box) forms of
144
l services,erved for
servicesthiopia to
ign directgests thatconclude
e areas ofunication
services. 146On the other hand, the service sector is the most sensitive sector for the government of Ethiopia and it will likely be the most challenging part and the sticking point of the negotiation. Detailed studies will be required to assess the economic and social impact of such requested liberalization in each key sector, and to inform the
143The draft Memorandum on TradePolicies states that Ethiopia may wish to introduce price support measures infor food security purposes ,without specifying the type of support thatconsidered. More analysis is needed in this context to determine wheconomically meafuture, would besupport for agriculture.
5.3 Trade in Services
Many Ethiopian service sectors –including key producer services like financiatransport, and telecommunications-are either government monopolies or resEthiopian nationals.145Annex 1 gives illustrative list in this regard. Innegotiations, Working Party members are likely to request commitments from Eliberalize imports of many such services, especially by permitting foreinvestment by service suppliers. The experience of recent accessions sugsignificant concessions by Ethiopia on services imports may be necessary toaccession negotiations. Nepal,Cambodia,Vanuatu made substantial offers in thfinancial, professional, distribution, education and environmental and telecomm
143 Article 15 of the Agreement on Agriculture144 Road Map to Ethiopia’s accession to the WTO,p.145 Draft Memorandum on Trade –Related Policies, Section VI.3146 UNCTAD ,The Least Developed Countries Report,2004,p.59
156
government’s negotiating position regarding the timing and sequencing of any agreed
Ethiopia does not have a full and comprehensive legislation granting protintellectual property rights (IPRs). Various existing laws
reforms.
5.4 Intellectual Property Protection
ection foraspects of
which are recognized by the Federal Constitution adopted in 1994. Accordingly, Ethiopia
esigns was997. Thepril 2004,lthough a
ted, the Directive issued by the Ministry of Trade andmarks and
T roperty inthe c tual Property Office. The Office was established in A i¶ oitation of
¶ in patentand encourage its utilization;
¶ to study, analyse and recommend policies and legislation on intellectual property
mong thegeneral public.
At present in addition to the non-consolidated legislation, the implementation of the lawsis weak because of a lack of resources. However, recent developments towards
deal with someintellectual property, but they are not fully updated. However, since the middle of the 1990s the government has made efforts to improve protection and enforcement of IPRs,
joined the World Intellectual Property Organization (WIPO) in 1998147.
The Proclamation Concerning Inventions, Minor Inventions and Industrial Denacted in May 1995 and the implementing regulations were issued in 1copyright and neighbouring rights law, which was passed very recently, on Aput in place the legal basis for the protection of literary and artistic works. Atrademark law is not yet adopIndustry in 1986 is used as a basis for the deposit of trademarks and servicethe issuance of certificates of deposit.
he organizational structure responsible for the administration of intellectual pountry is the Ethiopian Intellec
pr l 2003 and pursues the following objectives:to facilitate the provision of adequate legal protection for and explintellectual property in the country; to collect, organize and disseminate technological information containeddocuments
to the government; and ¶ to promote knowledge and understanding of intellectual property a
147 The country is also a party to the Nairobi Treaty on the Protection of the Olympic symbol which wasadopted in 1981.
157
strengthening the national IPR system could act in the opposite way and haveinfluence on the promotion of local tech
Most WTO rules for intellectual property rights protection are part ofUndertaking and therefore not subject to negotiation. Given the huge challengeup intellectual property rights protection almost from scratch, it is conceiEthiopia may find some sympathy on the part of Working Party members if it werequest longer than usual transition periodsprotection.
Ethiopia is also planning to manufacture generic medicines for the treHIV/AIDS in conjunction with South Africa. The Doha Declaration on tAgreement and Public Health states that least developed countries (such asneed not apply intellectual property protection for pharmaceuticals before 2this provision would appear to take care of Ethithat Cambodia was pressured during its accession negotiations
5.5 Implementation of Customs Valuation, SPS, and TRIPS Agreement
Although more detailed analysis is needed to establish the gaps betweenlegislation and key components of the WTO Single Undertaking, as well asrequired for the effective implementation of any revised legislation, it is clear amajor efforts, and donor assistance, will be required to i
personnel at theofficers at headquarters in the application of new regulations, etc.
5.6 Technical Rules
a positivenological change and the transfer and
dissemination of foreign technology in the country.148
the Singleof setting
vable thatre to
for phasing in Intellectual Property Right
atment of he TRIPSEthiopia)
016.Whileopia’s production plans, it is significant
into applying intellectualproperty protection on pharmaceuticals as early as 2007.
existingmeasures
lready thatmplement the Customs
Valuation, SPS, and TRIPS Agreements. This may include training for enforcementborders, establishment of effective procedures for appeals, training for
Ethiopia is a member or a signatory party of various international organization orconventions, as International Organization of Legal Metrology (IOLM), International Organization for Standardization (ISO) or Codex Alimentarius. Founding member of the African Regional Organization for Standardization (ARSO), the Quality and Standards
148 National Study on Impact and Sustainability of EPA for Ehiopia,as above,p.34
158
Authority of Ethiopia (QSAE) was established in 1970 and is responsible for eimport regulations. QSAE has adopted around 1200 standards including some mones
xports andandatory
rally consistent with international ones and do not
y a clearnorms and my means t, and thements for
On international markets, the challenges are not only to dards, but
norms and important
Such aformity to apacity toity amongystem are
wever, theycannot be ignored, despite Ethiopia’s budgetary difficulties. To this end, the country would need to identify and prioritise its requirements and, in order to reduce the costs borne by the Ethiopian budget, to secure financial and technical assistance from donors.
149. Ethiopian standards are geneact as technical barriers against imports150.In the light of the trend in Ethiopia's economic policy, characterized bwillingness to accelerate the country’s integration into the world economy,technical rules will become increasingly important. Indeed, a more open econoboth a stronger competition among competitors within the Ethiopia markenecessity for Ethiopian producers to be able to meet the international requireproduct quality and processes.comply with regulations based on health, safety, environmental or social stanalso to acquire consumer confidence. Currently, one of the major weaknesses in Ethiopia’s capacities in relation totechnical rules is linked to the conformity assessment aspect. For example, andeficit comes from the lack of internationally recognised testing laboratories.situation obviously hampers any formal recognition of Ethiopian products coninternational market requirements151, and reduces the national producers’ ccompete in the world market. The promotion of awareness of product qualnational producers as well as improvements in the conformity assessment shighly specialized, knowledge-intensive activities and, thus, very costly. Ho
149 http://www.qsae.org/web_en/Standards_info/Standards_gen_info.htm#12. The National Study onImpact and Sustainability of the EPAs for Ethiopia also provides a useful discussion in this regard.150 U.S. Foreign Commercial Service & U.S. Department of State (2004), as above.151 Quality and Standards Authority of Ethiopia (2002), Introducing Quality Management System andSupporting the Establishment of Accredited Certifications Centers and the Improvement of MandatoryCertification System, Project Proposal, Addis Ababa.
159
6.Conclusion
The fundamental development objective of the Ethiopian government is to bmarket economic system which enables the economy develop rapidly and poobe the main beneficiary from economic growth. Accession to the WTO is conan important element in the pursuit of this national development objective.WTO accession process is just beginning. The government will soon be subMemorandum of Foreign Trade Regime. To guide the accession process in anfashion, the government together with the World Bank prepared a “WTORoadmap” that presented a
other technical assistance projects.
Nonetheless, there are still enormous challenges in the accession planning. Inthe public and private sectors lack the capacities at both the institutional alevels to cope with the complexities of trade policy analysis, formulimplementation. WTO membership will considerably add to these buobligations. World Bank, the US, the EU, and various UN agencies are
uild a freer people to sidered asEthiopia’smitting its organizedAccession
n organizational form to conduct the negotiations, an approximate timetable for WTO Accession negotiations, a list of capacity-building and
Ethiopia,nd humanation andrdensome
offering specifickinds of support to Ethiopia for WTO accession process. However, there is still a substantial need for technical assistance in dealing with the process of WTO accession and the legal and regulatory harmonization challenges posed by WTO membership.
160
Acronyms
ACP African, Caribbean and PacificADLI Agricultural Development-Led IndustriaCET Common External Tariff COMES Common MarketCSP Country StrategyCSR Civil Service ReformCU Customs UnionDTIS Diagnostic TradeEBA Everything but Arms EC European CommunityEPA Economic Partnership Agreement ESA Eastern and SouthernET Ethiopian Tourism Corporation / EU European UnionFDI Foreign Direct Investment FTA Free Trade AreaFDRE Federal DemocratiGATS General Agreement on Trade in Services GATT General Agreement on Tariffs and Trade GDP Gross Domestic ProduHS Harmonized SystemIF Integrated Framework for Trade-relatIMF International MonetIPR Intellectual Property RightISO International OrgITC International Trade CentreLDC Least Developed CountryMoFA Ministry of Foreign AffaMFN Most Favoured Nation MOARD Ministry of Agriculture and Rural DevelopmentMOFE Ministry of Finance and Economic DMOTI Ministry of Trade and IndustryNBE National Bank of Ethi
lisation
A for Eastern and Southern Africa Paper
Integration Study
AfricaC Ethiopian Telecommunication Corporation
c Republic of Ethiopia
ct
ed Technical Assistanceary Fund
sanization for Standardization
irs
D evelopment
opiaNDTPFNational Development and Trade Policy ForumOECD Organization for Economic Co-operation and DevelopmentQSAE Quality and Standards Authority of EthiopiaSDPRP Sustainable Development and Poverty Reduction ProgramSPS Sanitary and Phyto-Sanitary
161
TBT Technical Barriers to Trade TRIM Trade Related Investment MeasuresTRIPS Trade Related Intellectual Property RightsUNCT United Nations Conference on TraUNDP United Nations Development ProVAT Value Added Tax WIPO World Intellectual Pro
s
AD de and Developmentgramme
perty OrganizationWTO World Trade Organization
162
A Ro(2004).
COMESA (2003), Preparation for the COMESA Customs Union.
Integration Study
the period 2002 – 2007
Annual Progress Report
Hoekman, B. M., and Kostecki M.M. (2001), The Political Economy of tTrading System: The WTO and Beyond (Oxford: Oxford University Press)
Government of Federal Democratic Republic of Ethio
Development (2002)
MOTI, Industrial Development Strategy (unofficial English translation)
National Bank of Ethiopia (2003), 2002/2003 Annual Report
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Afro-Consult & Trading (2002), The Study of the Impact of COMESA/FTA.
admap for Ethiopia’s WTO Accession (and other Impending Trade Negotiation.
DTIS (2003), Ethiopia: Trade and Transformation Challenges - Diagnostic Trade and
Ethiopia - European Community, Country Strategy Paper and Indicative Programme for
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he World
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National Study on Impact and Sustainability of EPA for Ethiopia (2004)
OECD (2004), African Economic Outlook, Ethiopia 2004, OECD, Paris OECD(1997),Designing New Trade Policies in the Transition Economies,Paris
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Subramanian A. et al. ( 2002), Trade and Trade Policies in Eastern and Southern AfricaIMF, Washington
,
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164
165
tic investors:
tional Grid System, and of more than 20 passengers
exclusively reserved for domestic investors
aised or fattened by the investor; ers, material
its by-products as well as wholesale trade by
smithing, workshops and tailoring services
vehicles;i-cab transport services;
motels, pensions, tea rooms, coffee shops, bars, night pecialized restaurants);
ber-making;
icket selling services. 3. Areas exclusively reserved for Ethiopian nationals (without prejudice to No. 2 above): • Banking, insurance, micro-credit and saving services; • Broadcasting services; • Domestic air transport services using aircraft with a seating capacity of up to 20 passengers; and • Forwarding and shipping agency services
Annex 1-Restrictions in Ethiopian Economy
The following areas are reserved for domes1. Areas exclusively reserved for the Government: • Postal services except courier services; • Transmission and supply of electrical energy through the Integrated na• Domestic air transport using aircraft with a capacity
Areas
A. Trade • Export of raw coffee, chat, oil seeds, pulses, hides and skins bought from the market, and live sheep, goats and cattle not r• Import (excluding LPG, bitumen and, upon approval from the Council of Ministinputs for export products); • Retail and brokerage; and • Wholesale (excluding supply of petroleum andforeign investors of their locally produced products). B. Other • Bakery products and pastries for the domestic market; • Barber shops, beauty saloons, and provision of(Except by garment factories); • Building maintenance and repair and maintenance of • Car-hire and tax• Commercial road transport and inland water transport; • Construction companies excluding those designated Grade 1; • Customs clearance; • Grinding mills; • Hotels (excluding star-designated hotels),clubs and restaurants (excluding international and s• Museums, theatres and cinema hall operations; • Printing industries; • Saw milling and tim• Tanning of hides and skins up to crust level; and • Travel agency, trade auxiliary and t
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l cou
nsel
.
ths
dono
pert
ise
for:
uctu
re s
etup
e
quip
men
ter
runn
ing
ess
,loca
l
and
othe
r
mea
sure
s·
post
grad
uate
cou
rses
.¶
anal
ytic
al a
nd im
pact
stu
dies
.
ules
fo
r se
ctor
eed
of
trai
ning
nfra
stru
ctur
efo
rce
;pro
cure
men
tal
latio
n of
req
uire
dco
mpu
ter
equi
pmen
t an
d co
mm
unic
atio
nsfa
cilit
ies
requ
ired
for
WT
O A
cces
sion
pro
cess
.
Subm
itM
emor
andu
m
onT
rade
R
elat
edPo
WT
OSe
cret
aria
t w
ith a
ll re
leva
ntle
gisl
atio
n,
tif
f
Follo
win
gW
TO
tr
aini
ng w
here
requ
ired
co
mm
ence
men
t of
id
entif
icat
ion
of
all
law
s,
regu
latio
ns,
adm
inis
trat
ive
prac
tices
and
othe
r m
easu
will
pot
entia
lly b
e im
pact
WT
Oac
cess
ion
,by
the
tec
com
mitt
ees
j
Est
ablis
hing
app
ropr
iate
org
aniz
atio
nal
unit
and
repo
rtin
g st
ruct
ures
in
go
vern
men
t (s
ee
sugg
este
dop
tions
1&2)
; ap
poin
t st
aff
spec
ializ
atin
gin
WT
O m
atte
rsto
e E
thio
pian
mi
sion
in
G
enev
a.
Con
firm
an
d co
-ord
inat
er
fina
ncin
g an
d in
tern
atio
nale
x¶
WT
O u
nit’
( i
nfra
str
incl
udin
gof
fice
spa
cean
d m
aint
enan
ce
,oth
cost
s in
cl.
inte
rnet
acc
and
inte
rnat
iona
l sta
ff)
¶·tr
aini
ng
cour
ses
capa
city
bu
ildin
g
Dev
elop
men
t of
tr
aini
ng
mod
iden
tifie
d as
be
ing
inn
orga
niza
tion
ofph
ysic
al
ine
gotia
tions
incl
udin
g of
fice
spa
of l
ibra
ry
mat
eria
ls a
nd i
nst
166
Don
or P
rogr
ams
Ana
lyti
cal
trea
ch A
ctiv
itie
s.D
ocum
ent
subm
issi
on a
nd
nego
tiat
ions
Eth
iopi
an G
over
nmen
t to
Id
enti
fy
Leg
isla
tive
an
d O
ther
Am
endm
ents
.
Org
aniz
atio
nal
Mea
sure
s;C
apac
ity
Bui
ldin
g,St
udie
s, O
u
2005
/Q1
g Pa
rty
mem
(ong
oing
).n
legi
slat
ion
an
requ
este
dof
tec
onom
ies
)
of
W
T/ in
divi
dual
cust
oms
Beg
in
Com
preh
ensi
vero
ject
fo
rim
plem
enta
tion
oft.
vern
men
t of
fici
als
sic
WT
O c
ours
esh
trai
ning
, an
dsp
ecia
lized
mod
ules
for
offi
cial
s w
ith s
ecto
ral
resp
onsi
bilit
ies.
Res
pond
to
qu
estio
ns
from
Wor
kin
bers
Iden
tify
exis
ting
orpo
tent
ial
inco
nsis
tenc
ies
betw
een
curr
ent
Eth
iopi
ad
Sing
leU
nder
stan
ding
.B
egin
com
preh
ensi
ve s
urve
y of
non-
staf
f m
easu
res
affe
ctin
g tr
ade
in g
oods
( h
as f
requ
ently
been
rans
ition
Spec
ializ
ed
cons
ulta
nt
to
supp
ort
draf
ting
AC
C/4
(on
agri
cultu
ral p
olic
ies)
.Sp
ecia
lized
cons
ulta
nt(s
) to
supp
ort
draf
ting
of W
T/A
CC
/5(
onse
rvic
ese
ctor
s)
Beg
in
com
preh
ensi
veM
oder
niza
tion
Proj
ect.
p S
PS a
gree
men
WT
O t
rain
ing
cour
se f
or g
oin
Add
isA
baba
, inc
ludi
ng b
afo
r th
ose
requ
irin
g su
c
2005
/Q2
etai
led
info
rmat
ion
on
polic
ies
for
indi
vidu
al s
ervi
cese
ctor
s)
tri
ghts
, po
ssib
lyw
ithas
sW
IPO
. In
pre
para
tion
foof
WT
/AC
C/9
opia
ngo
vern
men
td
WT
O m
embe
r
cono
mic
and
soc
ial
) im
pact
al
tern
ativ
e st
rate
gies
for
trad
eza
tion
inke
y ar
eas
incl
udin
g:de
inno
n-ag
ricu
ltura
l goo
ds.
gric
ultu
ral s
uppo
rt.
nd-
200
6)
Subm
itWT
/AC
C/4
(det
aile
din
form
atio
n on
ag
ricu
ltura
lpo
licie
s).
Subm
it W
T/A
CC
/5(d
Beg
inw
ork
to
acce
de
tore
leva
ntco
nven
tions
on
inte
llec
ual
prop
erty
ista
nce
from
rsu
bmis
sion
Poss
ible
stu
dy t
our
by E
thi
offi
cial
sto
are
cent
lyac
cede
coun
try.
Beg
inde
taile
d(
est
udie
s fo
rlib
eral
i·T
ra ·
A · Reg
iona
l int
egra
tion
(C
OM
ESA
, EPA
). ·
Tel
ecom
serv
ice.
· Fi
nanc
ials
ervi
ces(
thro
ugh
e20
05/Q
3R
espo
ndin
g to
ques
tions
From
wor
king
Par
tym
embe
rgo
ing)
ary
post
-gra
duat
e in
tern
atio
nal t
rade
(pos
sibl
yw
ith s
chol
arsh
ip m
anda
ting
e.g.
2 ye
ars
ofse
rvic
e in
go
vern
men
tsu
bseq
uent
to
urse
).
s(on
Est
ablis
h in
ter-
disc
iplin
trai
ning
cou
rse
on
succ
essf
ul c
oncl
usio
nof
co
2005
/Q4
Dra
ft
Leg
isla
tive
Act
ion
Plan
taki
ng i
nto
acco
unt
disc
ussi
on i
n th
e A
cces
sion
Wor
king
Par
ty.
Spec
ializ
ed
cons
ulta
nt
to
supp
ort
draf
ting
ofW
T/A
CC
/8)o
n sa
nita
ryan
dph
yto-
sani
tary
sta
ndar
ds a
nd o
nno
n-tr
affi
c tr
ade
barr
iers
).
167
Doc
umen
t su
bmis
sion
and
ne
goti
atio
nsE
thio
pian
Gov
ernm
ent
to
Iden
tify
L
egis
lati
ve
and
Oth
er A
men
dmen
ts.
Org
aniz
atio
nal
Mea
sure
s;C
apac
ity
Bui
ldin
g,St
udie
s, O
uD
onor
Pro
gram
sA
naly
tica
ltr
each
Act
ivit
ies
2006
/Q1
e)an
dve
y of
non
-tar
iff
Plan
,sc
ussi
ons
inth
e A
cces
sion
Wor
king
Par
ty
slat
ion
acco
rdin
g to
legi
slat
ive
actio
n pl
an.
al s
tudi
esw
ithke
ypr
oces
s;us
eth
eas
is f
or i
nitia
l of
fers
on ta
riff
s(20
06/Q
2-3)
and
serv
ices
(20
06/Q
4)
Subm
it W
T/A
CC
/8(o
nsa
nita
ryan
d ph
yto-
sani
tary
st
anda
rds
and
on t
echn
ical
bar
rier
s to
tra
dco
mpr
ehen
sive
sur
barr
iers
, if
requ
este
d.
Subm
it L
egis
lativ
eA
ctio
nta
king
int
o ac
coun
tdi
Beg
in
to
amen
d le
giD
iscu
ss f
indi
ngs
of a
naly
ticst
akeh
olde
rsin
acce
ssio
nre
sults
ofdi
scus
sion
s as
b
2006
/Q2-
3
ffer
,if
re
quir
ed,
subm
it su
gges
ted
boun
dle
vels
of
supp
ort f
or a
gric
ultu
re
for
TR
IPS
n),
spec
ializ
ed
cons
ulta
nt
to
supp
oraf
ting
ofW
T/A
CC
/9(o
n T
RIP
S).
Subm
it in
itial
ta
riff
o
Ifne
eded
(gi
ven
othe
r T
Aim
plem
enta
tiot
dr
2007
/Q1-
4on
s(in
e
and
cond
ueg
otia
tions
on
E
o
sitio
npe
riod
s(in
clud
ing
for
TR
IPs
impl
emen
tatio
n),s
peci
alan
d di
ffer
entia
l tr
eatm
ent
etc.
Con
tinue
im
plem
enta
tion
ofle
gisl
ativ
e ac
tion
plan
.Sp
ecia
lized
co
nsul
tanc
y in
put
asre
quir
edby
pro
gres
sof
(thr
ough
end
of n
egot
iati
Con
duct
furt
her
anal
ytic
alst
udie
s to
sup
port
nego
tiatio
ns
as
tiatio
ns).
scus
sion
s w
ithst
akeh
olde
rsto
info
rm th
em o
f pr
ogre
ssof
nego
tiatio
ns a
nd
rece
ive
feed
back
re
gard
ing
gove
rnm
ent
posi
tions
(th
roug
hen
d of
nego
tiatio
ns).
Con
duct
mul
tilat
eral
disc
ussi
Acc
ssio
nW
orki
ng
Part
y)ct
bi
late
ral
nth
ipi
a’s
com
mitm
ents
reg
ardi
ng¶
trad
e in
good
s(in
clud
ing
agri
cultu
re):
¶tr
ade
inse
rvic
es;
¶po
ssib
le
tran
nego
tiatio
nson
s).
mul
tilat
eral
and
bila
tera
lre
quir
ed (
thro
ugh
end
of n
ego
Con
duct
regu
lar
di
168
2008
/Q1-
Con
solid
ate
resu
lts
of
bila
tera
l ne
gotia
tions
in
todr
aft
Sche
dule
of
C
once
ssio
nsan
dco
mm
itmen
tson
Con
tinue
impl
emen
tatio
nof
legi
slat
ive
acti
plan
Spec
ializ
ed
cons
ulta
ncy
inpu
t as
requ
ired
bypr
ogre
ssof
Con
tinue
di
scus
sion
s w
ith
2
Goo
ds(i
nclu
ding
agr
icul
ture
)
onne
gotia
tions
stak
ehol
ders
.
2008
/Q3
ater
alne
gotia
tions
into
dra
ft S
ched
ules
of
Spec
ific
Com
mitm
ents
on
Serv
ices
Con
solid
ate
resu
lts
ofbi
l
2008
/Q4
Con
clud
e W
orki
ng
Part
yD
elib
erat
ions
w
ithA
ppro
val
of
Dra
ft P
roto
colo
f A
cces
sion
2009
/Q1
Eth
iopi
anPa
rlia
men
t to
ratif
yO
ngoi
ng
impl
emen
tatio
nof
com
mitm
ents
Acc
essi
on P
roto
col
2009
/Q2
Eth
iopi
a fo
rmal
ly a
cced
es t
o W
TO
30 d
ays
afte
r ra
tific
atio
n
169
Not
es:¶
Tim
efra
me
base
d on
opt
imis
tic a
ssum
ptio
ns a
bout
pro
gres
s of
neg
otia
tions
and
res
pons
iven
ess
of a
ll ac
tors
in
volv
ed¶
Thi
s ta
ble
proj
ects
the
over
all t
ime
fram
e un
til 2
009
and
give
s a
com
preh
ensi
velis
tof
task
sth
wor
kag
end
roug
h20
06.T
hea
from
200
7 w
ill d
epen
d on
the
pro
gres
s of
neg
otia
tions
and
can
not
accu
rate
ly b
e pr
edic
ted
in
deta
il at
this
sta
ge.
170
171
Don
or
eP
ledg
eded
Act
ivit
ies
Cov
ered
D
urat
ion
Ann
ex 3
–D
onor
Ass
ista
nce
in T
rade
Cap
acit
y B
uild
ing
in E
thio
pia.
Pro
ject
C
ount
-rp
art
Del
iver
EPA
im
pact
st
udy
EC
1380
0 eu
ros
EPA
20
04
6,im
pact
ass
essm
ent o
f
trad
ted
for
tra
de c
apac
ity
deci
ded
upon
ng,
e-re
laca
paci
tybu
ildin
g E
C5
ml
EU
RO
build
ing
to b
e (
trai
ni T
A,
WT
O,
com
plia
nce
with
sta
ndar
ds)
Cap
build
ing
US
Io
for
wor
king
on
the
prep
arat
ion
of t
he
road
map
20
acity
AD
M
TI
prov
ide
fund
ing
law
yer
04
Prep
are
d M
oTI
PHR
Dgr
ant
prep
arat
ion
of
TO
RW
TO
ac
cess
ion,
in
clud
ed
list
of
4 w
eeks
(2
004 )
road
map
fo
r W
TO
W
orl
Ban
k
fo
r
cons
ulta
nts
IF W
indo
w 2
(c
ompo
nent
2)
UN
DP
on
beha
lf
of
IF
MoT
I
enha
ncem
ent
of t
rade
neg
otia
tion
capa
city
20
04-2
005
Preparing for a WTO accession: country study on Jordan
, BLitt (Oxon)
EBA wll
Jordan’s acceded to the World Trade Organization in 2000 after more than five years of
ay
provide valuable lessons to developing economies entering into or involved in the accession
ntry.
t reform that
included liberalizing the economy and starting its integration into the global market. Close to half
TO; and after
obtaining major diplomatic support form the United States and European countries as a result of
O Accession
year.
Priorities that the country saw as important for its WTO accession were to ease the transition for
protected sectors so that unemployment and poverty rates (both in double digits and rising since
the mid-80s) would not be exacerbated in the short run and could be alleviated in the medium-
term. These priorities had been identified by Jordan’s government in consultation with the
International Monetary Fund (IMF) and the World Bank (WB) in the early 90s, and published in
By Riad al Khouri
Director, M
Executive summary
preparation and negotiation that, though perhaps uneventful compared to other countries, m
process, and to agencies that finance or provide technical assistance (TA) for WTO e
Following a severe economic crisis in the late 1980s, Jordan began importan
a decade into such reform, in April 1994 Jordan requested accession to the W
the signature of a peace treaty with Israel in October of the same year, a WT
Working Party for Jordan was decided in 1995 and began its meetings the following
172
Jordan’s indicative Five Year Plan for 1992-6. Steps taken by the government to organize and
prepare for its participation in WTO accession negotiations started with the designation of the
Co-operation
shifted to the Ministry of Industry
and Trade (MoIT), where a small WTO secretariat was formed in 1995.
ess chambers
as well as a few individual companies, a handful of civil society organization (CSOs), and some
ent take
the MoIT as
al challenges
olving issues
is hurdle was
surmounted through a determined reform effort by Jordan in patents, copyright, and other areas
cess of trade
ity with some
y both Jordan
amiliarity on
both sides of issues that concern small acceding states. At the same time, that period was
characterized by important flows of TA to Jordan, especially from such bilateral entities as the
United States Agency for International Development (USAID) but also international
organizations including the IMF and the WB among others, as well as multilateral regional
bodies. The type, extent, and usefulness of such substantial TA received from bilateral donors
office of the secretary general of the Ministry of Planning and International
(MoPIC) as a focal point of the process. However, this soon
After that, gradual but accelerating involvement of non-state actors - including busin
local and international consultants - in the WTO accession process helped the governm
the issue more seriously and commit resources to a strengthened technical team in
well as devote more time at cabinet level to accession issues. One of the princip
faced when negotiating with existing WTO members included problems in res
concerning intellectual property rights (IPR) with the United States. However, th
of IPR. Jordan’s dealing with the WTO secretariat proved relatively difficult at the beginning of
the accession process, partly because of the country’s lack of expertise in the pro
negotiation, but also due to – a few Jordanians claim - the organization’s unfamiliar
of the issues involved. However, the late 90s witnessed a mutual learning process b
and the WTO, so that, by the time of the country’s accession, there was enhanced f
173
and international organizations was a major element in supporting Jordan’s accession process and
making the country better able to deal with the issues at hand. This TA available in the late 90s
to prepare for
mmitments made during the WTO accession negotiations, both before and
after the country acceded.
important strategic role to play, illustrates the interaction between economic diplomacy and
ip’s
ussein, meant
ntry hoped to
s not directly
wever, under
the de facto rule of Crown Prince Hassan during the King’s illness in the second half of 1998,
TO
ticular benefit
being of special importance for the country
was the possibility of increasing foreign direct investment (FDI). However, that FDI is still a
obably weigh
even more heavily on Jordan had it remained outside the WTO.
Five years after accession, the benefits of WTO membership for Jordan are only now starting to
be understood clearly at a popular level. Greater participation of non-state actors from the
beginning would have accelerated this process, but the state’s paternalism is not entirely to
and into the following decade also served Jordan well in helping the government
implementation of co
The case of Jordan, as a small lower middle-income developing economy that nevertheless has an
political factors, as reflected in the country’s WTO accession process. The Jordanian leadersh
pre-occupation in the 90s with regional politics, especially under the late King H
that the decision to join the WTO and the economic rationale of what the cou
achieve by becoming a member were overshadowed by strategic consideration
related to bread and butter issues facing the country’s businesses and consumers. Ho
and with the ascension in early 1999 of King Abdullah II, Jordan’s decision to join the W
began to be seen as an important part of the country’s development strategy. A par
of joining the WTO that then came to be identified as
trickle and continues to be hampered by regional instability is a factor that would pr
174
blame, as the anti-WTO arguments that CSOs sometimes advanced were in some cases spurious
and propagandistic.
On the basis of Jordan's experience, the following recommendations can be made:
onal priorities
dia
Developing countries entering or in the accession process should push to form nati
for the WTO accession effort through open public debate, in parliament and the me . That both
groups in Jordan were and often remain timid and unprofessional could have been remedied by
strong grass roots efforts by the national leadership. That was not wholeheartedly undertaken by
Jordan before 1998, but must be attempted by acceding states. At the same time, it is crucial to
familiarize parliamentarians and journalists with WTO issues.
These countries must develop necessary government skills to participate in and complete
accession negotiations partly by seeking the advice of similar economies and neighboring states
that have gone through the WTO entry process. The feeling among cynics in Amma
90s was that Jordan started it negotiations unprepared: otherwise, why was the tec
WTO entry left for thirty months to a staff of two people? Now, after serious e
strengthening on the technical side in the late 90s,
n in the mid-
hnical side of
xpansion and
Jordan has managed to export its WTO
accession expertise to other Arab states, to the mutual benefit of provider and recipient. (An issue
of relevance to Arab countries acceding would be adopting Arabic as an official WTO language,
but this is an expensive step that could perhaps be pushed later.)
Agencies that finance or provide TA on WTO accession must involve expertise of local CSOs,
academics, and consultants, irrespective of whether governments can or want to do so. This,
175
which did not happen sufficiently in Jordan’s accession, is not only usually cost-effective, but
also helps support for the process percolate into the national system and assists in capacity-
building that serves the country well after accession.
Beware of large overlapping TA programs, which are wasteful and can also cro
expertise. It is difficult to say no to TA, but in all cases it should be looked at critic
foreign aid was provided to Jordan after the Middle East peace process started to unravel in late
have been USAID consultants negotiating with American counterparts on behalf of Jordanians.
The good news was that by and large the
and recipients should not be over-eager to receive it.
wd out local
ally. Massive
1995. The reductio ad absurdum of the avalanche of foreign assistance that then hit Jordan would
advice provided by outsiders to Jordan during the
negotiation process was sound, but aid, like most other things, can involve diminishing returns,
Finally, do not overestimate the WTO secretariat. The experience of Jordan appears to suggest
uch of a learning curve as counterparts in
applicant countries. This is not to diminish the role of TA from the WTO itself, which in Jordan’s
case was extremely important. However, applicant countries should remember that each
that staff members of the organization are on as m
accession is unique and has a lot to teach the WTO itself.
176
Contents
und
negotiations
actors
Technical assistance
commitments
mmendations
Bibliography
Notes
Backgro
Priorities
Preparing for
Non-state
Challenges
Implementation of
Conclusion
Reco
177
Background
d remittances
l in workers’
ch as Jordan,
ited scale of
economic reform thus began in the country at the end of the 80s, parallel to other changes that
152
t reform that
Close to half
fter obtaining
major diplomatic support form the United States and European countries as a result of the
orking
theless has an
tion between
economic diplomacy and political factors, as reflected in the country’s WTO accession process.
The Jordanian leadership’s pre-occupation in the 90s with regional politics, especially under the
late King Hussein, meant that the decision to join the WTO and the economic rationale of what
Since inception as a state in the 1920s, Jordan has relied on external assistance an
from abroad. However, after the drop in aid that began in the 80s and the fal
transfers later in the decade, there was a realization that, for a small country su
integration into the world market could offer the best prospect to overcome the lim
the domestic economy and help increase productivity through specialization. More or less serious
included the re-emergence of civil society activities in Jordan.
Following a severe economic crisis in the late 1980s, Jordan began importan
included liberalizing the economy and starting its integration into the global market.
a decade into such reform, in April 1994 Jordan requested accession to the WTO; a
signature of a peace treaty with Israel in October of the same year, a WTO Accession W
Party for Jordan was decided in 1995 and began its meetings the following year.
The case of Jordan, as a small lower middle-income developing economy that never
important strategic role to play in the Middle East region, illustrates the interac
152 al Khouri R “Civil Society and Its Role in the Process of Lawmaking in Jordan,” November 2004, the Jordan Institute of Public Policy and Dialog, Amman
178
the country hoped to achieve by becoming a member were overshadowed by strategic
considerations not directly related to bread and butter issues facing the country’s businesses and
ng’s illness in
h II, Jordan’s
development
d as being of
still a trickle and continues to be hampered by regional instability is a factor that would probably
plication of a
s economic adjustment has been
undertaken in collaboration with the IMF and the WB, and has led to trade liberalization.
riented trade
strategy to rectify the current imbalance in its foreign exchange position.”153 IMF and WB
support was conditional on the government undertaking specific reforms in the trade regime and
tax system, including gradual reduction of the maximum customs tariff, abolition of import
consumers. However, under the de facto rule of Crown Prince Hassan during the Ki
the second half of 1998, and with the ascension in early 1999 of King Abdulla
decision to join the WTO began to be seen as an important part of the country’s
strategy. A particular benefit of joining the WTO that then came to be identifie
special importance for the country was the possibility of increasing FDI. However, that FDI is
weigh even more heavily on Jordan had it remained outside the WTO.
Jordan in the late 1980s went through a severe economic crisis, followed by the ap
comprehensive structural adjustment program (SAP) as well as other reform, which have
continued in one form or another for over fifteen years. Thi
Structural reform has accelerated since King Abdullah came to the throne.
In the late 80s Jordan was seen as needing to “move towards a more outward o
153 United States Agency for International Development (USAID) Jordan “Statement of Work, Export Trade and Productive Investment Project” unpublished, Amman, November,
1989
179
licensing, and removal of non-tariff barriers facing imports in order to create a more competitive
trade sector.
international
xternal sector
agency began
s of
exporters with Customs were so difficult to handle that directives emanating from sources other
t in the
rk conducive
of Jordanian
ieving broad
based, sustainable economic growth, and place a greater reliance on complementary domestic
arkets that support more open trade policies.”156 Several other aid and lending
institutions also became active in this regard in Jordan in the late 80s and early 90s, chiefly the
German Agency for Technical Assistance (GTZ), Germany’s official aid implementation
organization.
Donor country aid agencies often play a similar role in Jordan to that of
organizations. The constellation of stakeholders that proposed reform in the e
included foreign bilateral aid and lending agencies, spearheaded by USAID. That
in 1989 to tackle the problems of Customs.154 It was remarked at the time “the problem
than the Prime Ministry and unsupported by widespread lobbying and pressure were felt to be
inadequate by themselves in confronting the bureaucracy and others with a vested interes
present system.”155 USAID also focused on the achievement of a policy framewo
to private sector growth, and improving the production and marketing capabilities
enterprises to “use international trade as a key instrument in the process of ach
competitive m
154 al Khouri, R “The Regulatory and Policy Framework for Exports in Jordan: a Survey and Proposal for Change” USAID Private Services Development project, unpublished,
Amman 1990
155 For details of the process of Customs reform in Jordan see al Khouri “Governance Case Study of Jordanian Customs,” WB 2004
156 USAID op cit
180
Priorities
e to ease the
ble digits and
eviated in the
sultation with
B in the early 90s, and published in Jordan’s indicative Five Year
Plan for the first half of the 1990s.
an for 1997-
ith in WTO
ubject to the
e Engineers’
Associations join the negotiation committees for Jordan accession to the WTO was specifically
y’s accession.
try’s postal services were also seen as needing special attention within the WTO
negotiations.158 Finally, the transport sector was identified as an area where Jordan’s accession to
the WTO required reconsideration of legislation governing this sector as well as developing and
renewing it.
Priorities that the country saw as most important for its WTO accession wer
transition for protected sectors so that unemployment and poverty rates (both in dou
rising since the mid-80s) would not be exacerbated in the short run and could be all
medium-term. These priorities had been identified by Jordan’s government in con
the IMF and the World Bank W
Later and more specifically, the country’s Social and Economic Development Pl
2003 identified a few sectors as priority areas that would have to be dealt w
negotiations. One of these was construction, which was seen as particularly s
challenge of Jordan’s accession to the WTO. Having the Contractors’ and th
mooted as a way to deal with this issue. Agriculture, declining in Jordan since the early 1970s,
was another sector singled out for special consideration in the context of the countr
The coun
157
157 Hashemite Kingdom of Jordan Ministry of Planning The Social and Economic Development Plan of 1997-2003
158 As mentioned in the author’s interview with Amin Kawar, Director of the Jordanian Post, 2005
181
In fact, many other sectors were given special attention in the negotiations, while in some cases
the above topics were not especially touched upon. The suspicion is therefore that the sectoral
. On the other
loyment and poverty were constantly
kept uppermost in the minds of policymakers and negotiators alike.
Preparing for negotiations
TO accession
e MoPIC as a
try and Trade
the minister
the drafting
process for amendments or new laws were officials of the ministries concerned, former senior
gether with
d-90s lacked
WTO. Those
following the debate on international trade liberalization and inter alia the WTO can be classified
into three major groups. The first comprises government officials who are responsible for
following up of the process of joining the WTO. This group is technocratic and normally does
not pronounce on pros and cons of joining. The second group comprises academics that are
concerned about the international trade development. Their contribution in the public debate is
priorities were not particularly pressing, and that plans for the negotiations changed
hand, the strategic priorities of needing to combat unemp
Steps taken by the government to organize and prepare for its participation in W
negotiations started with the designation of the office of the secretary general of th
focal point of the process. However, this was soon shifted to the Ministry of Indus
(MoIT), where a small WTO secretariat was formed in 1995. This was entrusted by
to prepare a first draft for internal discussion within the ministry. Others involved in
officials with the relevant competence in the subject of trade negotiations, to
independent experts.
However, such expertise was limited. Jordan, with a few exceptions, in the mi
experts in both the private and public sectors concerning technical issues of the
182
limited and their research findings are not linked to the policy makers. They focus more on the
theoretical aspects of the international trade liberalization. Their findings concerning Jordan’s
e those who
d those who
uch stronger
n Jordan. The
liver upon request and may seek assistant from
abroad in their undertaking.
be associated
utions, which
e some short-
acturing and
services. The government, they argue, must help alleviating the expected negative implications.
In the long run efficiency and productivity will be improved and so public welfare. If Jordan
ze and exploit
as a result of
joining the WTO. Furthermore confidence about reforms would be boosted when it is enhanced
by international commitments. The main worry in Jordan is that the country is small and
exposing manufacturing sector to foreign competition could hurt Jordanian industry and create
de-industrialization trend. This could result in higher unemployment and probably social unrest.
accession (before and after) are far from conclusive. Within this group there ar
oppose ideologically the idea of free trade and the neoclassical paradigm an
propagate the idea of free trade. However, proponents of free trade can make a m
case as a result of the failure of protectionist policies to achieve their desired goals i
third group comprises private consultants who de
Proponents based their arguments on the rationale that joining the WTO should
with local transparency and good governance and strengthening the existing instit
they did not then and do not so far witness in Jordan on a wide scale. There might b
term negative implications as a result of joining the WTO concerning manuf
develops its competitive advantage then it can overcome the limitation of small si
economies of scale.
Jordan would gain in terms of credibility before foreign investors and private sector
183
The personnel involved in drafting were aware of the concerns of the groups likely to be affected
by the proposed changes in the laws. In particular, as mentioned above, the need to fight
orking on the
re in the mid-1990s
saw a co-incidental jump in joblessness and the percentage of poor people in the country.
sequences
for the various stakeholders commissioned to domestic and international consultants produced
159
the one hand
s would come
responsibility
alone for entering into important agreements. However, a broad range of stakeholders were not
al manner. On the other
hand, it should be kept in mind that these efforts were undertaken parallel to work started in the
ing on in the
.
Alongside the secretariat set up in the MoIT to handle WTO issues, an advisory committee that
included non-government and state officials was formed from representatives of the MoIT, the
unemployment and poverty were constantly kept uppermost in the minds of those w
topic of WTO accession, particularly since the start of the accession procedu
Studies to assess the impact of the changes occasioned by WTO admission and the con
several recommendations.
The government then organized informal meetings between government officials on
and various actual or potential stakeholders on the other. Awareness that big change
as a result of WTO accession mean that the government was unwilling to bear the
necessarily consulted at the early stages of the accession process in a form
late 80s aimed at liberalizing the trade sector. There were thus several activities go
country during the mid-90s that involved promoting a more open trade environment
159 Among the major studies produced during this period was that for USAID by Coopers and Lybrand on “The
Economic Impact of GATT/WTO membership on Jordan: an Assessment” July 1995.
184
Ministry of Finance (MoF)/Customs department, Central Bank of Jordan (CBJ), the Ministry of
Agriculture, the Amman Chamber of Industry (ACI),160 and the Federation of Chambers of
tee before the
morandum of
ess campaign
started and public seminars were conducted to explain what it meant for Jordan to join the WTO.
However, since the process of joining took more than five years, various changes that took place
of such a
irst CMA, the
r, people saw
making WTO
l Zone (QIZ)
model, introduced into Jordan in the late 90s. QIZ, a form of diagonal cumulation among Israel,
.161 Jordan’s interest then and now in QIZ
and other bilateral or regional trade arrangements does not of course contradict or in any way
negate the drive to WTO membership. However, the public was confused by these developments,
which also tended to make WTO accession appear less important.
Commerce. The secretary general of the MoPIC was the chairman of this commit
secretary general of the MoIT chaired it. This committee prepared a first country me
accession (CMA). After the cabinet approved the CMA, a domestic public awaren
in the country as a whole and in the economy in particular meant that the impact
campaign was limited. In other words, had accession taken place quickly after the f
public would have been less confused and more ready to accept admission. Howeve
negotiations seemingly drag on with new factors entering the economic scene and
membership appear less significant. This was the case with the Qualifying Industria
Jordan, and the US, quickly led to a massive boom in exports that overshadowed anything the
country has seen in the external sector for over a decade
160 Until the late 90s, the ACI was effectively the sole and national chamber of industry
161 The government’s interest in QIZ was clear, and focused on the employment effect, which also served to
empower rural women in some areas. Mohammad Halaiqah, Jordan’ chief WTO negotiator and later minister of
Industry and Trade as well as deputy premier for economic affairs, confirmed this in an interview with the author in
2004, but nevertheless emphasized the crucial importance of WTO accession.
185
Another source of confusion was rivalry among different government bodies over the process of
d in economic
inistry is the
elf out at the
ividual level
Jordanian
governments have on average short lives. In the 90s there were for example rumors that the
government was considering canceling the MoPIC and replacing it with a department in the MoF.
iament in this
ved by some
members of parliament (MPs) as imposed from abroad. A vigorous and well-informed parliament
would have provided valuable support to and oversight of the executive branch in preparing for
dinated to the
om members.
However most of the economic reform laws are advanced to parliament by the government. The
Lower House of Parliament, the House of Representatives, in particular did not play a major
effective role in the period before or just after the launch of WTO negotiations. The Upper House
of Parliament, the Senate, which has equal status with the lower House on the level of legislation
and the proposal of bills, fared somewhat better in this regard due to the generally higher level of
WTO admission. The MoPIC, MoF, and MoIT are the ministries typically involve
issues. The balance of power among them sometimes leads to conflict as to which m
most important in the economic sphere in Jordan. This kind of rivalry plays its
institutional level, where each ministry tries to show its significance, and at the ind
between rival ministers who want to hold on to their posts especially since
This indicates the level of insecurity under which some ministers functioned.
Another weakness in Jordan’s preparation for negotiations was that the role of parl
process was not significant, as the whole WTO admission process was percei
WTO access. In fact, in this as in other areas, Jordan’s parliament is somehow subor
executive.
In theory parliament can initiate a law if it gathers more than 10 signatures fr
186
awareness and expertise among its member, particularly in the economic sphere. However, the
Senate’s members are entirely appointed by the king and it thus appears to the general public as
an elitist institution in the negative sense.
ut reflected
g members of
nts, but this
sometimes transcended the geographic boundaries of lower house constituencies, as for example
ions of WTO
mid and later
ost countries;
however few Jordanian parliamentary discussants of WTO pose viable alternatives to what
ission. It was
he absence of
t ideology or
cs are mostly
at is based on ideology being the Islamists. However,
these blocs are important for MPS, given the limited capacity of support institutions to empower
independent lawmakers, a lack of adequate resources for MPs in general, and a shortage of
technical capacity provided by parliament to them.
In any case, Parliamentary debates on WTO issues in Jordan were not technical b
ideological differences and the narrow interests of various constituencies, includin
parliament themselves. Of course, parliamentarians need to represent their constitue
in the case of the deputy who was also the chairman of the private sector Contractors’ Syndicate.
However, overall concerns about the macro-economic or social and other implicat
membership were difficult to pinpoint throughout parliamentary discussions in the
90s. Of course, skepticism about international organizations and treaties exists in m
Jordanian governments proposed in the mid-90s regarding preparing for WTO adm
common in Jordan then and remains the case for MPs to gather in blocs due to t
viable political parties. An interesting feature of these blocs is that their basis is no
political thinking but rather special interests, whether personal or sectoral. The blo
of a temporary nature, with the only bloc th
187
In the mid-90s and today, perceptions in Jordan about the WTO are largely impressionistic, with
mixed views about the ramifications of joining the organization. There is confusion between
person is not
e meaning of
ership is not a matter of
choice but rather a compulsory commitment and they consider this as part of the SAP.
In a survey in the year 2000 by the Center for Strategic Studies at the University of Jordan162,
ic
ive economic
cted a limited
ents “did not
ive impact, a
substantial segment of Jordanians is unaware of the implications. When the question was
the free
O reconsider
d thing if it is
tion the interests of the poor and of small manufacturers. This group
likes to judge the decision on joining the WTO on its own merits and not on hypothetical
scenarios. They also perceive joining the WTO as a positive step since it means joining a world
trend and not being left isolated.
globalization generally and the question of membership. In general, the average
concerned about the WTO. Indeed in many cases only few know about it and th
joining. Those who know about the WTO are aware that Jordanian memb
responding to an open-ended question on whether joining the WTO would have great econom
benefits for Jordan, 33% of respondents answered yes, 34% expected limited posit
impacts on the economy, and 8% saw no implication. On the other hand 4% expe
negative impact, 5% expected severe negative implications, and 17% of respond
know.” This shows that while a majority perceives that the WTO has a posit
simplified as to what concerns people, that is when the question was posed in terms of
trade and competition, perceptions changed and many who oppose joining the WT
their prejudices against the organization. Many argue that it is not necessarily a ba
going to take into considera
163
162 Cited in al Khouri R and I Saif “Jordan WTO Country Report” F Ebert Foundation, 2003
163 Percentages do not add up to 100 due to rounding
188
Non-state actors
and that have
ustry, and the
associations,
TO was
limited at the outset. Since 1995 Jordan, was attempting to conform to WTO requirements, and
ent regarding
eld for CSOs
been calls for
in Jordan are
limited, and therefore their ability to engage in legislative lobbying is severely circumscribed.165
t on workers'
embership of
which is over 120,000. The more important of such are Engineers, Contractors, and Auditors. In
contrast to the ineffectiveness of workers' unions, it is important to refer to the considerable
influence exercised by the syndicates, which goes beyond protecting the interests of their
Several non-state entities representing the private business and professional sectors
a certain influence on government policy are the chambers of commerce and of ind
Professional Unions. The role of interest groups such as trade unions and business
as well as civil society organizations (CSOs) generally in the country's debate on the W
the country's membership was even delayed due to its slow pace in implementing legal and
policy reforms. Before and after accession, Jordanian trade unions have been quiesc
the WTO, but business chambers are becoming more vocal. Some seminars were h
and government to exchange views before and after joining,164 and there have
more such exchanges. This is because the technical and human resources of CSOs
Trade unions are quiescent, with rare exceptions; individual trade unions as well as the General
Confederation of Trade Unions have not shown, for many years, any major impac
fortunes in general. There are also professional syndicates in Jordan, the total m
164 Including among others events conducted in Amman in the 90s by the Naumann Foundation
165 al Khouri R and I Saif op cit
189
members to exercising some influence on political life, partly compensating for the
ineffectiveness of political parties.
ess chambers
international
ore seriously
thened technical team in the MoIT as well as devote more time
at cabinet level to accession issues.
and remained
equently, political activity was and remained spilling over into professional
associations, while various types of charitable organizations increased their political involvement,
any
tion have not
ecause of the
prevalence of security-oriented decision-making in politics and economics by elites closely
linked to the monarchy. Normally discussions that involve civil society organizations are not
formal and would take place in order to mobilize public support and facilitate the implementation
The gradual but accelerating involvement of these non-state actors - including busin
as well as a few individual companies, a handful of CSOs, and some local and
consultants - in the WTO accession process helped the government take the issue m
and commit resources to a streng
Though political parties were active in Jordan in the 1950s, they were later banned
so until 1989. Cons
as did labor unions.166
After 1989, there was an increase in the number of CSOs in the country, though not m
focused on overtly economy-based issues. Jordanian democratization and liberaliza
led to business or consumer grassroots movements of any great influence, partly b
166 For a typology of Jordanian CSOs (including the share of charity, service delivery, advocacy and interest groups and the share of chambers and unions) developments regarding
consumer groups, environmentalists or the like who are taking up issues related to the implications of economic reform, and interest groups such as business associations, see
Hourani H et al Directory of Civil Society Organizations in Jordan Al Urdun al Jadid Research Center, 2003, Sindbad Publishing House, Amman
190
of new laws. From the government's point of view, the involvement of civil society organizations
in the process of law making may help avoid negative political repercussions that might
accompany associate the introduction of new laws.
e the drafting
individuals or
such consultations take place. The second stage is when the law is drafted and made public.
or such tasks
d. CSOs may
how certain
ns and its subscribers could be affected. Parallel to this, CSOs could hold seminars in
order to mobilize the local media and influential columnists to support their demands and
cludes small
ial resources.
s professional
unions and the Chambers of commerce and Industry, is larger and more organized. This type has
a clear mandate and interest group, which is represented by a large number of influential and
active members. These organizations have adequate resources to conduct studies and can provide
funding for public awareness campaigns. Government is far more sensitive to these groups than
other groups of civil society organizations due to the vested interest that exists between members
CSOs are engaged in two stages of the process of lawmaking. The first one is befor
of the newly proposed law whereby members of the CSO may be consulted by
institutions who are involved in drafting new laws. However, this is not always the case. Often no
Affected CSOs would study the proposed law and discuss it inside their own institutions.
Research and legal departments within these institutions are normally responsible f
and would provide their recommendations as far as the proposed laws are concerne
also commission an external consultant to study the proposed law and indicate
organizatio
suggestions.
There are two kinds of civil society organizations in Jordan. The first in
organizations and CSOs that have a narrow focus and have limited access to financ
This type of organization includes charities, co-operatives, etc. The second, such a
191
of these organizations and the government. Furthermore, large CSOs can initiate contacts with
influential ministries and international organizations if they have a case to make. The first group
gainst certain
to MPs. They
ns that could
gements that
rly identified
stakeholders who can exert some form of collective action. It has become customary that the
In the case of
ew occasions
overnment accuses these organizations of speaking for themselves and not for the public at
large. This is the case when the consumers' associations slam the government for any increase in
prices.
g their funds
mbership and through the delivery of services since they reflect the opinion of the
majority of their members. While in the case of smaller CSOs, the government, through some
these small
organizations.
Though business chambers are becoming more vocal CSOs are worried that commitments on
liberalization and national treatment in the agreement lock Jordan into policies that might damage
development. The biases in the process in favor of developed countries and the disadvantage at
normally adopts informal and some times ad hoc conduits to campaign in favor or a
legislations. They rely on the media or send letters to the prime minister's office or
do not acquire resources to conduct thorough research to support public campaig
influence the course of debate. In the second group there are some institutional arran
can be traced. Furthermore this type of CSO represents influential and clea
government consults these organizations regarding new economic and business laws and
legislations. In many cases some of these individuals are members of the Senate.
smaller and less influential CSOs the stakeholders are clearly identified and on a f
the g
The government has little leverage to influence the position of large CSOs securin
through me
financial mechanisms, can extend help in return for the acquiescence of
192
which Jordan has been placed in WTO negotiations have frustrated Jordanian CSOs, which feel
that there should be rules on corporate responsibility to frame the power of transnational
corporations.
n neglected in
on represents
the development of civil society is important in better understanding successes and failures of
ncluding the
e time in the
21st century.
es not necessarily mean that civil society played an important role in the
economic reform process, whatever the role of civil society organizations (CSOs) might have
ps contrasted
se or character. Civil society thus includes business, professional,
and labor groups, as well as private voluntary organizations. Meanwhile, the Jordanian state’s
influence on civil society is as important (if not more so) than society’s influence on the state,167
including the process of lawmaking.
The role of civil society in the socio-political dimension of economic reform is ofte
reflections on development policies, restructuring, and liberalization. This dimensi
an aspect of the transition that influences reform. In the case of Jordan in 1989-2004, looking at
market oriented reforms, stabilization, and structural adjustment. This is especially true since the
re-emergence of civil society and the efforts to reform Jordan’s economy, i
introduction of many new laws or changes in old ones, more or less began at the sam
late 80s, and progressed with some interaction throughout the 90s and into the
However, that do
been in other respects.
In Jordan’s legal and political system, the term “civil society” is used to label grou
to the state, regardless of purpo
167 Khouri R “Jordan: a Constitutional Tribal Monarchy in Transformation” WB 2003
193
How do CSOs in Jordan affect policymaking or policy deliberations? The short answer is not
very much, though the minor impact they have today is the result of a giant step forward after
bers are also
the political
which CSOs
rs, including
ce of civil society lobbying in parliament on
economic issues.
nd structural
However, the
Governments
o supervise civil
society more closely. Jordan thus allows the development of relatively abundant CSOs, but has
in controlling opposition.
on process in
The issue of economic data and its application illustrates CSO difficulties. The vast majority of
Jordanian CSOs have scant or no resources devoted to an information and database unit that
reveals economic data affecting their members. The only exceptions to this are the older
chambers of commerce and of industry. In the case of the former, the Amman Chamber of
Commerce in particular has tried with some success to build a database and engage in a limited
economic reform and democratization were launched in the late 80s. Few CSO mem
sitting in parliament or otherwise involved in political life through a party, while
parties of Jordan are often built around family and clan affiliations. The extent to
influence the process of policy and lawmaking is thus limited due to various facto
weak organizational structures, and a near-absen
It is only in recent years - with increasing emphasis on economic liberalization a
adjustment - that the state has begun to withdraw from some areas of public life.
regime continues to see civil society as a natural (if somewhat weak) rival.
systematically co-opt existing CSOs, even creating artificial ones, in order t
also helped create captive organizations that actually aid the regime
Interest groups, not CSOs, continue shaping and influencing the economic decisi
Jordan, helping to decide the time and pace of reform and shaping its outcome.
194
amount of research, but this has not yet been of great help to member firms.168 The problem is
partly due to the indifferent attitude of some chamber members. As with membership of other
s an attitude among such Jordanians that militates against the effective
use of research and statistics.
nevertheless
there is greater awareness of the need for economic data of use to members, in contrast to the
er, these newer organizations do not have the
financial resources of the Chambers, and have only made limited progress in this regard, given
e members of
the old merchant class, new commercial elites have emerged with even stronger connections with
the state
sector and the
government hampers various types of new business. So long as many of the relatively new, post-
1989 CSOs have strong links with the state, change will remain shaped by the interests of
competing elite groups and individuals.170 The continuing dependency of the citizen on the state
CSOs, there is sometime
The case of the newer CSOs is somewhat more encouraging in this respect, but
problematic. For example, as regards some of the business associations formed in the 1990s,
attitudes of some in the older CSOs. 169Howev
the resources available.
However, CSOs had and still have little to do with such activity. In addition to th
high state officials. Despite progress in implementation of economic reform, the role of
in Jordan is still strong, and a strong network of corrupt links between the private
168 Author’s Interview with Abdullah Attieh, Head of research, Amman Chamber of Commerce. 2004
169 Author’s interview with Bassem Farraj, president of the Jordan Europe Business Association (JEBA), 2004; this information on JEBA is confirmed by the author, a co-founder
of the association (1995) and its vice-president 1995-7: in the mid-1990s there was an interest, which remains, in the association’s provision of economic information of help to
JEBA members. However, such activity was never undertaken on a systematic or widespread basis.
170 This is the opinion of Jordanian journalists and political figures interviewed by the author in 2005, including Rami Khouri, executive editor of the Beirut Daily Star newspaper
195
also mirrors the increased reliance of Jordan on international institutions and Western
governments.
enry or power
be a lack of
and scope of
c life, slowly
asserting the dominance of formal transparent rules based on law over tribal and personal
connections, and giving CSOs a small window within which to move into lobbying and
hing reforms,
ffected the design of reform,
tending to make it Western-oriented in spirit and presentation. In any case, reform was top-down,
wanted these
considerable,
ild consensus
through CSOs or a need to compromise with them to be able to implement reform, which
nevertheless was done very gradually in order to placate elements of the bureaucracy. In sum, the
legitimacy of the reform and the power of the reformers to push it through were not in question,
and the political and institutional processes by which affected groups influenced decisions about
the reform were not significant or problematic.
This has left little scope for CSOs to develop significant credibility among the citiz
within the establishment. In issues pertaining to the legal system, there tends to
disclosure and uneven enforcement of existing laws and regulations. Yet, the pace
economic reforms since mid 90s have started to transform aspects of economi
influencing lawmaking.
The interplay of powerful outside forces allied to upper echelons of the regime pus
with some bureaucrats and grass roots opposition against change, a
initiated by government, and only secondarily reacting to pressures from CSOs.
On the other hand, various foreign stakeholders with an interest in Jordan’s stability
reforms, and the support at high levels in Jordan that they were able to marshal was
especially under King Abdullah II. There was thus no serious need or effort to bu
196
Businesses in Jordan consistently complained that too much discretionary power is vested in
r other CSOs,
awmakers for
role of CSOs
n of the tariff
and not primarily by CSOs. The role of CSOs in precipitating change in this process through
lawmaking has been modest. However, state policy was not necessarily to approach CSOs and
e policies and
troduction of
which was vital to make up for the drop in state revenue caused by tariff cuts undertaken in the
en
Association staged resistance to the government when the latter imposed the GST Law in 1995.
Although the government managed to pass the law, it had to adopt some unusual tactics, such as
paid publication of studies that supported this law in daily newspapers in order to counter the
Customs authorities. Whether or not these charges were made through Chambers o
and whether these bodies made a serious attempt to become involved in lobbying l
change, has not been the subject of detailed research, but the impression is that the
in this process was and remains small. In any case, by the late 80s, “rationalizatio
structure to promote efficiency in resource use” 171 was being proposed by international donors,
work through them to lobby for change in laws.172
The meager testimony to the capability of civil society to influence and impact th
actions of the regime included resistance in the mid-90s to the GST Law, the in
run-up to joining the WTO.173 Chambers of Industry and Trade and the Jordanian Businessm
171 USAID op cit
172 By contrast, USAID continued to apply more participatory methodologies in its work on Customs. For example, in the mid-90s, USAID work on reforming the Temporary
Admission and Duty Drawback system of Customs relied heavily on focus groups. Of course this also provides insights into the strength of USAID in Jordan, and the weaknesses
of the process of participation and the lack of normal interface of executive – civil society, as that was something that had to be promoted by a foreign aid agency.
173 Hourani op cit p 16
197
opposition to the law.174 That such activity in the end did not amount to a great deal is perhaps
less important than the example set, namely that a handful of Jordanian CSOs were at least
part from that
and lawmaking in Jordan was limited, and
pressure to change laws and reform came from other directions.
Challenges
bers included
concerning intellectual property rights (IPR) with the United States.
However, this hurdle was surmounted through a determined reform effort by Jordan in patents,
aking in the
e of the major
e many other
CSOs, JIPA has been active in emphasizing the role of WTO-compliance (specifically regarding
TRIPS) in attracting foreign investment to Jordan, creating an environment conducive to long-
term economic growth. That JIPA is perhaps the exception that proves the rule regarding CSO
capable of speaking out on an economic reform issue that was before parliament A
one example, the interest of CSOs in economic policy
One of the principal challenges faced when negotiating with existing WTO mem
problems in resolving issues
copyright, and other areas of IPR.
This provides an interesting example of the work of CSOs in policy- and lawm
country. The Jordan Intellectual Property Association (JIPA) is a CSO that is awar
impacts of WTO membership on the Jordanian economy through TRIPS.175 Unlik
174 The then minister of finance approached various Jordanian economic and business columnists at the time and asked them to write on the topic in return for a fee that was vastly
larger than the meager amount normally paid for such work.
175 In the opinion of JIPA president Murad Bushnaq, and Vice-president Bassam Hajjawi, interviewed by the author in 2004
198
relative inactivity in the economic sphere is due to various factors. One of them is that JIPA is
largely made up of lawyers, who also tend to be from the higher socio-economic class of
re freely, but
as the World
l and decisive
ains that this
sisters. At the same time, JIPA’s aims are roughly those of the government in Jordan, which
made for a harmonious partnership of local and international officialdom with JIPA.
ht legislation,
future of IPR
that deal with pirated products fear the new Law will force them out of the market under WTO
rules, and local manufacturers of legitimate cultural goods complain that the three-times amended
legislation has not yet provided protection adequate enough to prompt them to consider placing
their products in the local market.
e signing of
the TRIPS. This has resulted in the removal of Jordan from the US watch list of countries failing
to ensure intellectual property protection, and has led to recognition of Jordan as a leader in the
region in the protection of IPRs. A major reason cited for Microsoft’s entry into Jordan is its
reforms in intellectual property and copyright laws. The Business Software Alliance, an
Jordanians. Their skill and connections allow them to talk to parliamentarians mo
they have also succeeded in soliciting the help of such international organizations
Intellectual Property Organization (WIPO). That is not to say that JIPA did powerfu
lobbying to make changes in Jordanian copyright and other laws, but the fact rem
particular CSOs role has been greater than that of most of its less well-connected or qualified
After Jordan acceded to the WTO and embarked on a campaign to enforce copyrig
illegal copying has dwindled. Given the increasingly optimistic language about the
protection in Jordan and in the midst of government attempts to modernize legislation, businesses
The legislative changes Jordan adopted to gain acceptance into the WTO included th
199
international organization committed to advancing world trade for legitimate business software
by advocating strong copyright protection for software, has also recognized the country’s
success. 176
al Intellectual
nt and 71 per
cent in 1995 and 1998 respectively. However, the situation in other cultural industries may not be
developing as positively, with book, music and audiovisual piracy levels probably still quite high.
on in Jordan.
rams Treaty
an and the US
in late 2001. These two Treaties establish several critical elements for the protection of
copyrighted works in a digital network environment, including a creators’ exclusive right to make
izations and others, ranging from the WB to the Motion Picture Association of
America, remain vocal in their demands for a stricter IPR regime, better copyright protection for
most products (with the possible exception of computer software) is becoming more of a priority
for the government.
On the other hand, this is an improvement from the 1990s, when the Internation
Property Alliance reported computer software piracy levels for Jordan of 75 per ce
At the same time, further improvements are foreseen in relation to IPR protecti
Ratification of the WIPO Copyright Treaty and WIPO Performances and Phonog
within two years is a stipulation of the Free Trade Agreement signed between Jord
their creative works available online.
As foreign organ
176 Hindi R “ar-Ra’i speaks to vice-president of Business Software Alliance” ar-Ra’i Arabic daily, Amman, March 5, 2003
200
ul adhesion,
s is the basis
menting such
ordanian public and private sectors, both
as to their duties and the problems associated with IPR protection.
plements the
many in the
country with
and access to
, in turn, help
to promote IPRs and other factors such as investment and greater bureaucratic discipline. Without
IPR protection, Jordan cannot have a healthy domestic publishing industry where authors are
r attract good
ng without an IPR regime with a
high level of protection. Where IPRs are protected, piracy rates have come down while income
tem, and thus
Those Jordanians who have benefited from weak judicial systems may begin to realize that their
incomes are being adversely affected by the weakness, and this may begin to build a broader
Partly as a result of the learning process involved in WTO application and successf
Jordanians now appear to have the political will to protect IPRs. Protection of IPR
for attracting investment and for the transfer of technology into the kingdom. Imple
an approach will require major efforts in educating the J
The challenge of promoting IPR protection will change in coming years as Jordan im
TRIPS agreement. Though fewer Jordanians say that IPR laws are unnecessary,
private sector are still not aware of WTO/TRIPS, and what it implies for them. As a
weak IPR protection, Jordan will lose ground in the competition for investment
technology. Properly enforced legislation could improve this situation. That would
compensated for their works, and cannot have an effective local music industry o
software developers. The latter in particular cannot make a livi
and creativity have gone up. Where creative people are not supported by the IPR sys
cannot produce and disseminate their creative expression, Jordan loses out.
201
consensus that there is a need to fix the judicial system. There is no tradition of good judicial
machinery, of the rule of law and criminal prosecution, other than through political or tribal
PR protection
ally. They are
vernment or otherwise being politically active, and they do
not have the funds to organize themselves.
The story of JIPA gives a good contrast to an otherwise lame Jordanian civil society. In this case,
ped the state
ry where the
te support of the
cause of JIPA should not be seen as a “victory” for a CSO “fighting” the powers that be. Rather,
ic issue.
bers to Jordan
ere handled relatively easily. Though some of the questions asked
at the working party stage were repetitive or barbed or simply showed the questioner’s ignorance
cials from the
Apart from TRIPS, the process of negotiation focused on agricultural products and the period of
concession that small developing countries like Jordan should take before fully opening up its
mechanisms. Correspondingly, in Jordan people such as musicians who depend on I
have been hurt so badly by the lack of it that they tend to be marginalized economic
not accustomed to lobbying their go
lobbying the government was done by well-connected experts who actually hel
accomplish what it was being asked to do under WTO rules. Thus, in a count
government is more or less authoritarian and does what it wants anyway, sta
this is an example of co-operation between the public and civil sectors on an econom
Apart from the TRIPS issue with the US, requests and questions from WTO mem
during the accession process w
of the applicant country, the educational value of the process, not least for the offi
applicant country, was significant.177
177 According to Tamam El-Ghul, head of the WTO department in the MoIT in an interview with the author, 2005
202
market. In 2003 the agricultural sector accounted for around 4% of GDP and 5% of total
employment. Given a limited industrial base, Jordan hopes to increase its agricultural exports to
tiation of the
ges in policy
was initially
nsuring at the
most important measures are elimination of production subsidies on food and fodder and the
e alignment
rporation179.
ls still exist,
n completely
eliminated180. Several bilateral agreements require pre-import licenses, which state and specify
the Ministry of Agriculture. Changes in administered prices have contributed to strengthening the
agricultural sector and improving its market flexibility. However some other problems have not
yet been handled with appropriate regulations for entering the most sophisticated European and
some developed countries in which it feels that it has a competitive edge. Nego
agriculture chapter, as required for WTO accession, called for profound chan
objectives and for the removal of several distorting measures. The pace of reforms
cautious but resolute, to make the economy more responsive to market signals, e
same time adequate popular support for change and to minimize social friction178. Among the
increase of prices of irrigation water close to more realistic values of scarcity and th
to near-market conditions of rural credits financed by the Agricultural Credit Co
However, government intervention still remains vigilant. Procurement price contro
but farmers are free to sell to private agents. Agricultural export and import are subject to
licenses, while customs duties exemptions on some products have not bee
the types, quantities, and season calendar for fresh fruits and vegetables, which are authorized by
178 The AMIR final report on implementation of law on agricultural products underlines that till 2001 there were impediments to implement an agricultural structural reform due
to: “ numerous and deliberate violations of WTO principle by high-ranking staff member of the Ministry; lack of co-operation in the Ministry, and from the ministry of Health with
TAU (Trade Agreement Unit); breakdown in co-operation spirit between TAU and IOAD (International Organization Affairs Department) of MoIT; rejection of draft agricultural
law for 2001 by parliament.” However, with one year of delay, in December 2002 the new strategy for the agricultural sector was approved.
179 Central Bank of Jordan, Annual Report 2002
180 AMIR Program (2002)
203
American markets: quality controls on production and on irrigation water, and infrastructure to
support and market the exports.
ively open to
orities and the
ition with the
inputs, durum wheat, barley, meat imported by meat preparations factories, wheat or muslin
er
and butter, all
s are charged
30% is
etables, olive oil, cut flowers, shrimps, prawns, oysters and other
luxury products. The highest protection is therefore granted to the main Jordanian exportables as
inning of the
cess of trade
claim - the organization’s unfamiliarity with some
of the issues involved. However, the late 90s witnessed a mutual learning process by both Jordan
and the WTO, so that, by the time of the country’s accession, there was enhanced familiarity on
both sides of issues that concern small acceding states.
204
Technical Assistance
racterized by
United States
ons including
e, extent, and
was a major element in supporting Jordan’s accession process and making the country better able
Western Asia
related to the
to channel such assistance provided by third
parties, and otherwise co-ordinating with member countries, including Jordan, in this respect.
181
rted Jordan in
trade is that
technical regulations applied to protect the health and ensure the safety of consumers. Standards
are formulated and set by the Jordanian Institute of Standards and Metrology (JISM), while
verification of compliance is the responsibility of agencies affiliated to different ministries and,
At the same time as Jordan was negotiating to enter the WTO, that period was cha
important flows of TA to the country, especially from such bilateral entities as the
Agency for International Development (USAID) but also international organizati
the IMF and the WB among others, as well as multilateral regional bodies. The typ
usefulness of such substantial TA received from bilateral donors and international organizations
to deal with the issues at hand.
Along with the above organizations, the UN Economic and Social Commission for
(ESCWA) became increasingly active across the region in the late 1990s in areas
WTO. This included extending direct TA, helping
This was especially the case in such areas as standardization,
A major positive effect of TA resulted from the help of GTZ and other who suppo
the area of standards and specifications. A potential non-tariff barrier (NTB) to
imported goods are required to meet national or internationally recognized standards and
181 See for example the report on the ESCWA Expert Group Meeting on Standardization in the Arab Countries, Amman, 2-5 February 1999
205
for imported goods, by the Control Department of the same Institute in the Ministry of Industry
and Trade. Importers are usually required to deposit three samples for inspection, prior to import.
organization
oluntary ones
t. JISM is an
he health and
private sector
in enhancing the quality and competitiveness of Jordanian products. JISM does this through
international
pave the way
xports to international markets by signing global and multilateral mutual
recognition agreements to get international recognition of the Jordanian conformity assessment
systems and results.
stoms duties,
mplementary
e, promoting
the domestic
industries in particular. In this regard, a new Customs Law was promulgated in 1998 aiming at
developing and updating customs procedures to satisfy WTO requirements. This Law was
amended several times, most recently in 2000 where the top rate of customs tariff on imported
goods was reduced from 35% to 30%.
That the formulation and the enforcement of standards are carried out by the same
now makes their administration easy. Mandatory standards are to be replaced by v
or by technical regulations consistent with the provisions of WTO TBT Agreemen
independent institution established to play a leading proactive role in protecting t
safety of Jordanian citizens and the environment and to act as a major partner to the
development of national standards and guidelines on conformity assessment practices that are
harmonized with international ones, and through active participation in the work of
standards and conformity assessment procedures to facilitate trade with Jordan and
for Jordanian e
TA was also forthcoming from GTZ and USAID, among others, in the area of cu
where the Jordanian government adopted a number of measures in the last decade co
to those taken before, with the aim of supporting the liberalization of foreign trad
investments, and upgrading the competitiveness of the economy in general and
206
With TA from the WB and bilateral donors, since 1996 Jordan has embarked on a program to
develop the export sector, including modification of import and export procedures, which were
finally amended in March 2000 to make them compatible with WTO.
as adopted a
the economy
Law (25 of
2000) provides the legal framework of the divestiture program. Main objectives of the
n
uctivity, and
re and public
he 90s Jordan
beralizing the
economy. The government adopted a national privatization program as one of the centerpieces of
ore
1996 and an
managing the
privatization
main factors
which negatively affect its efficiency and costs: the high cost of transport by lorry to and from
Aqaba as well as to and from neighboring countries, the ailing status of the railway system (few
lines and in bad condition), and the need to upgrade the Aqaba ports. These inefficiencies are
transferred to freight costs, which in Jordan still are some two to three times higher than in
countries with similar location (Tunisia and Turkey). A second problem is the quality of services:
207
e.g. the cases of containers in the port of Aqaba, which remains non-competitive compared to
other ports of the region, given the gradual reorientation of Jordanian exports as well as the
al reform and
ship, and road
ignificant entry restrictions. Port and road
transport liberalization and air transport privatization are critical.
Customs Procedures in Jordan have been significantly simplified in the last few years, in part due
nistration. To
and USAID),
on system in
electronically
ntering from
neighboring Arab countries or Israel a different procedure is applied. Controls have been
y
Agreement
nt of Article VII of the GATT 1994), according to which the invoice, i.e. the amount
paid or payable between buyer and seller, defines the “transaction value”. These improvements
ordan remain
frustrating.
This TA available in the late 90s and into the following decade also served Jordan well in helping
the government to prepare for implementation of commitments made during the WTO accession
negotiations, both before and after the country acceded.
changing composition towards more value added products, mandate that structur
further investments should continue. Third, air transport is restricted by state owner
transport, which accounts for 65% of all imports, has s
to the need to improve the co-ordination and programming capacity of the Admi
this end, Jordan has adopted ASYCUDA (with TA in this regard coming from GTZ
the information system of customs administrations and procedures. The declarati
Jordan was computerized in 1998, so in principle a Customs Declaration processed
by the agent must accompany the imported products. Only for products e
simplified and inspections can be avoided when the documentation is declared sufficient. Finall
with Law 16/2000 Jordan accepted the terms of GATT Customs Valuation
(agreeme
reduced substantially the costs to users. Nevertheless, customs procedures in J
208
Implementation of commitments
etitiveness, in
ade recently
mitments to
t years. In particular, the
maximum tariff rate will be reduced to 20% by 2010 under the WTO agreement.
ed to 20% by
n technology
or reduced to
2003 fell to
13.2%, from 21.3% in 2000. The overall degree of protection granted to the Jordanian economy
ff schedule is
rates, though
10 and 30%,
ced over the
present decade to meet the WTO commitments. Import licenses were the most important NTBs to
trade till 1997. Since then there have been several reforms in this area as well that are in line with
the commitments requested by the WTO accession. Till 1997 import licenses were regulated
through a particular regime that allowed for more discretion than the quota system, since the
latter had never taken root in Jordan. In the framework of trade liberalization reform this
To further boost Jordan’s attractiveness to investors and strengthen export comp
2003 the government cancelled customs duties on 492 imported capital goods, and m
did the same for production requirements. Jordan Acceded to the WTO with com
gradually reduce tariff and non-tariff barriers over the next eigh
Under the terms of Jordan's membership of the WTO, custom tariffs must be reduc
2010. In addition, different staging is provided for chemicals and informatio
products in several tariff lines. In 2005 all these duties will completely be abolished
5.5-6.5%. Accordingly the weighted average most favored country (MFN) rate in
has declined significantly, now among the lowest in the MENA region, to encourage deeper and
less vulnerable trade integration with the rest of the world. Currently, Jordan’s tari
fairly transparent at the Harmonized System section level with relatively few tariff
it varies in the 6411 tariff lines. The schedule has five ad valorem rates: 0, 0.5, 5,
with a mean unweighted average rate of 13%. The rates will be gradually redu
209
approach was changed in 1997 by Regulation 1/1997, which brought the first change in how
licenses were granted, followed by Import Export Law .20/2000 and Law .21/2001, subsequently
hich established that the import licenses were no
longer necessary except for limited categories of goods
rt and export
uption in the
country that discourages foreign investors. Generally speaking the license is automatic and is for
ublic safety,
morality and
tions. Thus, the approval to import certain goods is
required from authorized bodies (Ministry of Agriculture, Ministry of Health, etc) before the
importers are able to apply for an import license.
those goods
originating in signature countries. The Line Authority – part of the MoIT – has the authority to
revoke licenses but the decision may be appealed before the High Court of Justice in 6 days182.
Import firms must be registered with the MoIT, which grants a one-year import card for a
amended by the Temporary Law 18 of 2003, w
The aim of this new automatic licensing system, which greatly simplified impo
procedures, was not only to facilitate trade but also to attempt to eradicate the corr
the most part a mere formality. Nevertheless, according to Import Export Law of 2000 and
subsequent laws, the license is necessary when justified by the protection of p
environment, public health, natural resources, national security, public order, and
for goods subject to quantitative restric
Licenses are also still required under bilateral agreements and protocols for
182 According to the MoIT's Import Instruction 1 for 1999 the import of some products is subject to restrictions and requires prior permission from the MoIT. The Government
bans the import of plastic waste, passenger cars that use fuel other than gasoline, motor vehicles used for transport of goods that are more than ten years old. Import restrictions on
live animals; plants and plant material; arms, ammunition and explosives; narcotics and drugs; human remains; pharmaceutical and chemical products; medicines and vaccines;
motorcycles (restricted to Government firms only).
210
nominal fee. If not registered, the importer must pay a penalty equal to 5% of the value of goods.
A license, however, is required for goods entering the country under Temporary Entry status,
bonded goods, and goods entering under the Investment Promotion Law.
items, which
accession to
s of the WTO regarding the ceasing of
particular privileges granted to the above state enterprises.
mptions from
eliminated by
like fertilizer,
s and foreign
debt repayment schemes. Foreign inputs used in the production of exports are exempt from
re on a reimbursable or drawback basis. These
provisions, however, have been postponed till end-2007 because the WTO has recognized Jordan
the transition
However, this long and difficult process requires strong public intervention to establish a
regulatory system able to guarantee competition and at the same time protect service users. The
most important efforts and achievements have been in the telecoms sector and financial sector.
The public sector continues to play an important role, notably in imports of certain
may be undertaken only by specific state-owned organizations. However, following
the WTO Jordan has observed almost all the provision
In accordance with the WTO commitments, the export subsidies – full or partial exe
import duties and income tax – that were granted to all exporters should have been
end-2002. However there are exceptions, which include important export sectors
phosphate, and potash, in addition to exports governed by specific trade protocol
custom duties and all additional import fees a
as a developing country member and as such it has the right to an extension of
period before it must eliminate export subsidies.183
183 WTO decision G/SCM/95/Jor/ Suppl.1 of 30 July 2003 and Decision G/SCM/114/JOR of 5 July 2004
211
Jordan has made considerable progress in reforming the telecommunication sector. The key steps
ordan was the
r countries in
ments of the
s committed under the WTO
agreement, starting from the extension of the number of GSM licenses by 2005.
result of the
ssion. In the
ice passed no
some directly
the
king to issue provisional laws covering matters that cannot be delayed. Such provisional laws
placed before parliament at the beginning of its
next session. That has happened starting in late 2003, with the result that little changes have
in the economic laws in question, and no harm has been done to Jordan’s WTO
commitment process.
Conclusion
Jordan’s acceded to the WTO after more than five years of preparation and negotiation that,
though perhaps uneventful compared to other countries, may provide valuable lessons to
were taken under Law 13/1995 with the establishment of a regulator of the sector. J
first Arab country to allow foreign participation in the fixed line services, while othe
the region have preferred to open only the mobile telecoms. The 2002 amend
telecommunication law accepted the principle of more competition a
One anomaly in the case of Jordan’s WTO commitments could have arisen as a
parliamentary vacuum that existed in the country for a period shortly after acce
absence of parliament, which was the case in 2001-3, the government then in off
less than 140 temporary laws, of which several were of an economic nature, and
related to WTO commitments. The constitution empowers the cabinet with the approval of
shall have the force of law provided that they are
occurred
212
developing economies entering into or involved in the accession process, and to agencies that
finance or provide TA for WTO entry.
not stop at a
h necessitates
onflict and its
both the microeconomic level aiming at improving the efficiency of markets and the global
competitiveness of industries, as well as at the social level aiming at alleviating unemployment
my, a shift in
been a gradual, unilateral removal of trade barriers since 1996.
Government efforts addressed trade-related legislative adjustments in customs and taxes, patent,
policy through accepting and
implementing the non-discriminatory principle of the WTO. Trade reforms have been
d legislative
adjustments in customs and taxes, patent, copyright and trademark protection.
WTO accession provides a framework for trade liberalization and for the credibility of the
country. Following two unilateral tariff reductions, in 1996 and 1998, the maximum import tariff
has been cut from 50% to 40%. Finally the tariff reform of March 2000 reduced the maximum
Naturally, there is still ample room for further reform and the process should
particular time. One important impetus is the turbulent regional environment, whic
a continuous review of Jordan’s policy framework. A fresh example is the Iraqi c
repercussions. A second and important driver for continuous reform is the unfinished agenda at
and poverty in Jordan.
Jordan focused on trade liberalization to integrate the country into the world econo
trade policy. Thus, there has
copyright and trademark protection.
The past decade was characterized by a successful shift in trade
implemented gradually since 1996. State efforts addressed unilateral trade-relate
213
MFN rate from 40% to 30% and committed to binding most of its tariffs at a 20% ceiling by
2010.
imported and
law 6/1994.
e rate ranged
ucts imported
into the country are now subject to 13% value-added tax, except for those qualified for a higher
year 2004 to offset the
decline of customs duties brought about by the further liberalization of the trade regime. Other
4.
itive gains to
Jordan, particularly in the economic fundamentals. Such gains were important for boosting
, but progress made in these areas is still not enough to offset the
negative impact of other unfavorable factors, such as the impact of regional volatility and
The reform process should aim at enabling Jordan to become a self-reliant and self-sustaining
economy to reduce its vulnerability to external shocks. On the fiscal front, revenue generation
In addition to customs duties, a general sales tax (GST) is levied on a number of
locally produced goods and services. Law 18/2000 amended the General Sales Tax
Till 2000 GST were levied at the standard rate of 10%, while for automobiles th
between 62% and 141%. On 1 January 2001 VAT succeeded the GST and all prod
rate or supplementary sales tax. The basic rate was raised to 16% in fiscal
additional fees, para-tariffs and surtaxes were consolidated into the tariffs in 199718
The structural reforms undertaken so far by the government have led to clear pos
growth, giving a greater role for the private sector and creating a more diversified product and
market composition of exports
neighborhood spillovers, the heavy dependence on traditional products and markets, and the
weakness in global competitiveness.
184 Duties and Taxes Consolidation Law 7/1997
214
should be based on invigorating sustainable and private sector-led growth to ensure local and
sustainable public funding. The national privatization program has a pivotal role in this direction.
nd connected with available
government revenues with a view of avoiding the need for external borrowing.
are and the
they aware of the Singapore agenda or issues concerning labor standards or environment. The
arginal
and decisions. Had the accession process been better prepared and
presented to the public from the beginning, perceptions in Jordan of the WTO would no doubt be
Few experts express their concern about the liberalization of the services sectors that was
y. Very little
ges posed by
competition
ernment thus
Experts are unsure whether the private sector is ready for the
complete liberalization of trade and services. This is so because they observe that the private
sector in Jordan is still lobbying for more protection using the same old rhetoric about the
limitations of small developing country.
Furthermore, government expenditures should be rationalized a
Generally, the public does not know what the implications of joining the WTO
difference between the various rounds of talks from Uruguay to Doha and Cancun. Neither are
WTO is viewed as a club of the rich more than as a forum for the poor, who have a m
impact on WTO rulings
different and probably better.
launched in Doha round despite the fact that Jordan is a service-oriented econom
efforts have been pursued in this regard to prepare the services sector to new challen
Doha round. The imposition of rules such as labor regulations and investment and
laws represent a form of foreign intervention and adherence to transnational gov
undermining domestic authority.
215
In the run up to the 5th WTO Ministerial (Cancun), the Jordanian government continued to favor
gradual liberalization while fighting unemployment and poverty. The Doha Conference outcome
pecially new
erceptions of
sparency. The
in decision-
negotiations that is larger and more intrusive than even that of the Uruguay Round. There is a
ervices. Non-
ent vis-à-vis
and national
treatment may cause problems in services such as Jordanian tourism, which is badly hit under
present regional circumstances. On the other hand, the country's fragmented financial sector,
nefit from the
government
procurement and trade facilitation) imply a heavy work program. If a decision is then taken to
begin negotiations, the workload will increase. Should negotiations lead to new agreements,
obligations on Jordan will be much heavier and the WTO's mandate would immensely expand.
Whether that happens will depend on Jordan deepening understanding of issues, whether it
came through a process in which views of developing states on important issues (es
topics and elements of a new round) were not reflected. This gave rise to p
manipulation, bias towards major developed countries, and concerns over tran
WTO process also raises the issue of the limited ability of Jordan to participate
making. The WTO heavy work program is a great burden, effectively an agenda for multilateral
lack of capacity of Jordan to negotiate these issues, given shortage of human resources.
The WTO's non-discrimination principle can be problematic when applied to s
discrimination in this context means that the strong foreigner is given equal treatm
weak local firms. As such, GATS can restrict policy space, and rules based on MFN
which the government has been trying to consolidate through merger etc, might be
increased competition that comes about under GATS.
Negotiations on Singapore Issues investment, competition policy, transparency in
216
considers it in its interest to have these proposed new agreements in the WTO, and whether it can
persuade developed countries to respect its position or stand up to pressures from them.
t states. The
s and Jordan.
firms are not
petition and
transparency is fairly recent, so engaging in international negotiations at this stage may be
n Free Trade
's clause on labor rights, but are also beginning to feature in debates on the WTO
along with questions of poverty eradication, sovereignty, gender equity, human rights, and the
environment.
ups of 'trade,
rce and small
me aspects of
y some rules (including anti-dumping and subsidies)
and dispute settlement; and reviews of the TRIPS and TRIMs agreements. With a large debt
burden, Jordan is concerned with the TDF issue, but here again the country’s limited negotiation
resources and technical expertise are drawbacks.185
Proposed investment rules are designed to limit governments not investors bu
implication of a WTO investment accord is asymmetry between developed state
Thus, balanced agreement within the WTO might be tricky, as obligations of
considered. In addition, Jordan's experience when it comes to regulations on com
premature for such a small country.
Social Standards Debate have most notably been recently raised in the US-Jorda
Agreement
The post-Doha work program also includes examination in two new working gro
debt, and finance (TDF) and 'trade and technology transfer'; discussions on ecomme
economies; new negotiations on market access for non-agricultural products and so
trade and environment; negotiations to clarif
185 al Khouri R and I Saif op cit
217
Jordan's application and eventual membership in the WTO led to and continues to result in
t changes in
are largely
ubt that WTO
6 and not the
WTO process and its heavy technical workload raise the issue of the limited ability of Jordanian
e issues now,
es to exercise
negotiations on investment
and other new issues are to begin. Some seminars have been held to give CSOs and the
187
policy issues,
Jordanian CSOs tend to rely instead on economic reporting and analysis in the country’s daily
newspapers for needed information in this regard. However, both sides, the media and civil
society, prefer contact with the government than with each other. In any case, the quality of
measures assuring a more liberal and open foreign trade regime, including significan
economic laws. Though the general perceptions in Jordan about the WTO
impressionistic with mixed views about the ramifications of joining, there is no do
accession was the prime mover in the reform of Jordanian laws in the late 90s,18
role of any CSO organizations. Civil society was not seriously involved in this change, and the
CSOs to participate in it.
CSOs are against the WTO having negotiations on investment and other Singapor
asking for transparency in the WTO process, with clear rules for developing countri
their right to participate in decision-making, especially on whether
government the opportunity to exchange views, but more such activity is needed.
As a result of lack of a framework and/or resources to undertake research on
186 According to many observers and stakeholders, including Maha al-Ali, a member of the Jordan WTO accession team and now head of the Foreign Trade Policy department of
the MoIT, interviewed by the author in 2005
187 al Khouri and Saif op cit
218
economic reporting and comment in key Jordanian newspapers is generally weak, though there
have been notable exceptions. Jordan’s mainly state-owed or government-influenced media in
conomic reporting and commentary
that was sometimes sycophantic and often unprofessionally produced.
or changes in
ss
lobbies react at different levels ranging from newspaper comment and opinion to presentations or
groups, e.g. Chambers of Commerce regarding the laws concerning
the above measures. However, for such activity to target or have an impact on parliamentarians
the country
have not sufficiently addressed the socio-political environment, which strongly influences
economic performance. This has led to a vicious circle where civil society remains weak and
makes reform
sonal ties still
determine access to market information etc, and Jordan remains characterized by the duality of
informal social patterns related to rentier economy and formal institutions pertaining to the
concept of a market economy. The interaction between these dualities is complex, and includes
relations between and among policy communities (loose connections based on family or other
concerns), and policy networks (based on co-ordinated positions and campaigns to impress the
general and newspapers in particular continue to publish e
Regarding changes in tax and tariff rates, the progress of important proposed laws
existing measures is reported in the news media, and the general public as well as busine
protests by specific interest
remains problematic.
Jordan’s economic reforms have been partial achievements. Structural reforms in
CSO intervention in economic policymaking is meager, all of which probably
slower, thus perpetuating civil society weakness etc.
Nevertheless, Jordan is moving in the direction of a market economy. However, per
219
policymaker). In any case, the groups that benefit most from such a situation are those that still
dominate the economy through the state. Given the prevalence of political patronage in the
hat such groups would act as the spearhead of new market-oriented
economic behavior in Jordan.
o the idea and
under powerful constraints that preclude the incorporation of demands from below to lawmakers
eally the emergence of civil society will occur when institutionalized
organized groups are in a position to exert effective pressure on ruling elites, but this has yet to
ion remains a
difficult one. Traditionally, a major complaint of businesses in Jordan has been the uncertainty
over-regulation creates
opportunities for corruption. However, Jordan has heeded the need for change in recent years by
increasing the
.
A main lesson learned from an examination of reform in Jordan over the past decade and a half is
that extensive foreign assistance is needed to implement such change. The US administration
country, it is unlikely t
Even after a decade and a half of reform and restructuring, the country is still new t
will require time in getting prepared for legislative reform. Civil society and reform are operating
for systemic change. Id
happen in Jordan.
At the same time, the process of writing new economic laws in the era of globalizat
and high cost of dealing with government administrations. The process of making, changing,
enforcing and applying laws is unfavorable to business, while
stepping up efforts to boost government performance. The main thrust has been on
bureaucracy's responsiveness, and the system has demonstrated limited transparency
220
alone allocated $456 million in assistance to the kingdom in its budget for 2005.188 This
relatively large amount, equal to roughly five% of the kingdom’s GDP, is more than matched by
r, the trend in
up, with the kingdom receiving far more foreign assistance now than it did a
decade or so ago.
largesse. However, this has gone mainly to the state, and more could be forthcoming to finance
ep in the right
ample, regular meetings with the country’s main export group, the Jordan
Exporters Association, have proved to be valuable to both sides in airing problems and helping to
Anticipating more WTO negotiations, some Jordanians want a study process to be initiated to
ulted in de-
The negotiating tactics in Doha seemed to be for developed countries to produce a draft proposal
at the last minute and force others to accept or come nearer to it. There should be a stipulation
total aid from other sources, notably the European Union states and Japan. Moreove
this respect is
Reform efforts in general in Jordan have benefited from substantial and increasing foreign
specific TA at the business association level. That Jordanian Customs and other state bodies are
now taking greater notice of business associations and other CSOs is certainly a st
direction. For ex
resolve disputes. 189
take account of their concerns that previous industrial tariff cuts had res
industrialization and closure of local firms.
188 “US allocates $456 million in aid to Jordan next year” ar-Ra’i 5 February 2004
189 Information obtained from Halim Aburahme, general manager of the JEA, interviewed by the author in 2004
221
that in future rounds no new texts will be put for adoption without delegations getting sufficient
time to study the matter and consult their government.
ent processes
a have made
form to make
is weak, to protect itself from the strong. The
Arab countries should be lobbied to support this position
ordan’s experience include the enormous time and work involved
in WTO accession, which however does allow the applicant an opportunity for a thorough review
of its economic policies as a whole.190
onal priorities
dia
Though developed countries and the WTO secretariat promised to ban non-transpar
and ensure greater participation of developing countries, procedures used at Doh
clear that the situation is even less satisfactory than ever and that there is need for re
the process an efficient forum for Jordan, which
The lessons to be learnt from J
Recommendations
Developing countries entering or in the accession process should push to form nati
for the WTO accession effort through open public debate, in parliament and the me . That both
nprofessional could have been remedied by
strong grass roots efforts by the national leadership
groups in Jordan were and often remain timid and u
. That was not wholeheartedly undertaken by
Jordan before 1998, but must be attempted by acceding states. At the same time, it is crucial to
familiarize parliamentarians and journalists with WTO issues.
190 According to Tamam El-Ghul (see note 26 above)
222
These countries must develop necessary government skills to participate in and complete
hboring statesaccession negotiations partly by seeking the advice of similar economies and neig
that have gone through the WTO entry process. The feeling among cynics in Amm
90s was that Jordan started it negotiations unprepared: otherwise, why was the tec
WTO entry left for thirty months to a staff of two people? Now, after serious e
strengthening on the technical side in the late 90s, Jordan has managed to export its W
but this is an expensive step that could perhaps be pushed later.)
Agencies that finance or provide TA on WTO accession must
an in the mid-
hnical side of
xpansion and
TO
accession expertise to other Arab states, to the mutual benefit of provider and recipient. (An issue
of relevance to Arab countries acceding would be adopting Arabic as an official WTO language,
f local CSOs,involve expertise o
academics, and consultants, irrespective of whether governments can or want to do so. This,
which did not happen sufficiently in Jordan’s accession, is not only usually cost-effective, but
also helps support for the process percolate into the national system and assists in capacity-
building that serves the country well after accession.
Beware of large overlapping TA programs, which are wasteful and can also cro
expertise. It is difficult to say no to TA, but in all cases it should be looked at critic
wd out local
ally. Massive
foreign aid was provided to Jordan after the Middle East peace process started to unravel in late
1995. The reductio ad absurdum of the avalanche of foreign assistance that then hit Jordan would
have been USAID consultants negotiating with American counterparts on behalf of Jordanians.
The good news was that by and large the advice provided by outsiders to Jordan during the
223
negotiation process was sound, but aid, like most other things, can involve diminishing returns,
and recipients should not be over-eager to receive it.
Finally, do not overestimate the WTO secretariat. The experience of Jordan appea
that staff members of the organization are on as much of a learning curve as c
applicant countries. This is not to diminish the role of TA from the WTO itself, whi
case was extremely important. However, applicant countries should rem
rs to suggest
ounterparts in
ch in Jordan’s
ember that each
accession is unique and has a lot to teach the WTO itself.
w starting to
tors from the
ot entirely to
ases spurious
and propagandistic. To remedy this, TA could be extended to CSOs
Five years after accession, the benefits of WTO membership for Jordan are only no
be understood clearly at a popular level.191 Greater participation of non-state ac
beginning would have accelerated this process, but the state’s paternalism is n
blame, as the anti-WTO arguments that CSOs sometimes advanced were in some c
. However, this is not easy, as
cess is also
aid policy could be the granting of
support to the research and documentation departments of business associations. Other
suggestions for entry points to support CSOs would be more practical training for journalists in
economic reporting192, and for civil society activists in lobbying.193
such organizations are often unequipped to handle serious assistance. The pro
expensive. In such a situation, possible entry points for
191 As confirmed by expert observers including Jawad Anani, former Jordanian minister of Industry and Trade and
deputy premier during part of Jordan’s WTO accession period
192 For more information on such training, see www.jemstone.net , the website of the Jemstone network, which has been active in media development in the region in general and
Jordan in particular for close to a decade.
193 As discussed by the author with Heba Shazli, director of the Middle East department of the Democratic National Institute, Washington DC, interviewed by the author in 2004.
224
Small countries could improve their bargaining positions if they unite and address their issues of
concerns collectively. Regional context initiatives were overshadowed by poli
among Arab countries. However, with the advent of globalization, Jordan like othe
the region be
Achievement of Market-friendly Initiatives and Results (AMIR) Program/USAID
accession a
Coopers and Lybrand on “The Economic Impact of GATT/WTO membership o
Assessment”
Hindi R “ar-Ra’i speak
Amman, March 5, 2003
ESCWA report on the Expert Group Mee
2-5 February 1999
Hourani, H
tical mistrust
r countries in
gan to appreciate the asymmetry of power and influence between them and the
developed world.
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nd Compliance Overview for Jordan,” 2002
n Jordan: an
ad-Dustour Arabic daily, Amman, "Border regulations issued for IPR protection" 31 August 2000
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ting on Standardization in the Arab Countries, Amman,
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Center, Sindbad Publishing House, Amman 2001
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“The Regulatory and Policy Framework for Exports in Jordan: a Survey and Proposal for
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1990
“The Regulatory and Policy Framework for Exports and Foreign Investment in Jor
and Proposal fo
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by
J
________________________
MONGOLIA- PREPARING FOR A WTO ACCESSION NEGOTIATION
Horloo Oyuntsetseg, LLM/ International Public Law
anuary 2005
In 1993-1997 the author was involved in the accession process of Mongolia in hercapacity as Director of the Treaty and Law Department of the Ministry of Trade and Industry and later as a Counsellor of the Mission of Mongolia in Geneva.
The paper expresses the views of the author solely.
227
1.
ariffs andrld Traded country
.
ique case.learnt. It
should be noted that country-specific and/or comparative studies on accession of ry scarce.
rocess of Mongolia’s accession due account should be given economic
n Easternd its close
y started a economicn adoption
ased on democratic values. The former “People’s . Politicals freedom
nt foreignon into they. In earlyS, Japan,
nvestmentes like, Germany, France, UK. In 1991 it became a
Mongoliacustoms,
period of
USSR andr Mutual
he USSR,f the block of socialist countries Mongolia faced a severe economic
crisis. Inflow of soft loans, subsidies from the Soviet Union suddenly stopped. e at worlde of trade,
both exports and imports, resulted in critical shortage of basic consumer and industrial goods. Inflation reached triple-digit. During 1990-1992 GDP decreasedby more that 20%.
6. To address the grave economic situation the Mongolian Government in parallel to the political change started very decisive economic reforms towards a transition
INTRODUCTION
1. Mongolia applied for a membership in the General Agreement on TTrade (GATT) in 1991 and formally became a 130th member of the WoOrganisation (WTO) in January 1997. After Bulgaria it was the seconfrom the former centrally planned economies to join the multilateral trading systemFor many applicant countries accession to the WTO has been and still is a difficult,lengthy, sometimes a painful process. Nonetheless, each accession is a unMongolia’s accession also represents unique features of lessons to be
and implications on small developing economies like Mongolia are still ve
2. In examining the pto the factors of its timing and the patterns of the country’s political anddevelopments at that time.
3. Mikhail Gorbachev’s perestroika and the democracy movements iEurope in late 1980s had a significant influence on Russia’s neighbour anally – Mongolia. After seven decades of Soviet style ruling the countrdramatic shift towards its total change and far–reaching political andreforms. First multiparty free elections took place in 1990, followed by ain 1992 of a new Constitution bRepublic” was renamed “Mongolia”, the first ever President was electedreforms went beyond free elections. Civil liberties, human rights, religiouwere widely recognised and advocated.
4. Since 1990, Mongolia also pursued the development of an independepolicy. Developing relations and cooperation with new partners, integratiinternational community constituted an important part of its foreign polic1990s Mongolia concluded for the first time trade agreements with the UCanada, trade, cooperation, textile agreements with the EU, series of iagreements with leading economimember of the World Bank and the IMF, ADB. At the same time,adhered to the most of the international organizations and conventions onprotection of investments, intellectual property rights. It was indeed aopening the country to the outer world.
5. Prior to 1990, over 80% of Mongolia’s trade were with the former15% with other socialist countries of the so-called CMEA/Council foEconomic Assistance/ block. In the aftermath of the dissolution of tdisintegration o
Terms of trade with Russia and CMEA group changed to a dollar tradprices and international commercial practices. Sharp decline in the volum
228
from centrally-planned system to a marked-based economy. The reformslaying policy and legislative foundations for a new economic order. Implof reforms included phased liberalization of state-controlled prices, liberaforeign trade and investment regime, adoption of a free floating exchsetting–up a commercial banking system, launching a large-scale prprogramme. In 1990-1992 legal reforms introduced for the first time theof market economics, such as Banking Law establishing two-tier bankinLaw on Business Entities/Company Law/ endorsing creation of public acommercial entities, and abo
of local and foreign entrepreneurs.
7. Collapse of the guaranteed market, price and payment arrangements mwithin CMEA block also required a totally new approach in traDevelopment of an outward–orieintegration into the commonly recognised international trading rules wereas priority goals of the reform process.
technical issues as wellics of the process.
2. APPLICATION STAGE
9. Until late 1980s there was a rare mention of or expression of inteGATT affairs in the Government documents and communications betMission of Mongolia in Geneva and the headquarters.
10. In early 1988 the contacts in Geneva with the senior officials of tSecretariat, notably with the Director-General were initiated. The MGeneva started sending reports on activities of the GATT and on-goingRound/UR/ negotiations. The messages from Geneva clearly indiimportance of starting awareness-building on ground r
trade and economy. In a letter addressed to a Deputy Minister for Foreidated 13 December 1988 the Ambassador of Mongolia noted that “… iearly at this stage to apply for an accession to the GATT, but sooner orcountry would have to join it”. It was a challenging a statement.
11. Since then the Mission of Mongolia continued to maintain regular conthe Secretariat of the GATT. The contacts became more frequent folpeaceful democratic revolution and political changes in the countryMongolia started to express explicit interest in acceding to the Agreement
targeted toementationlization ofange rate,ivatizationbasic lawsg system,nd private
lishing state monopoly of foreign trade. Privatization Law and Law on Foreign Investment encouraged business interests and initiatives
aintainedde policy.
nted liberal trade strategy at the national level and identified
8. Alike many other accessions the accession process of Mongolia involved a lot of as economic and geopolitical factors that shaped the
dynam
rest in the ween the
he GATTission in Uruguay
cated theules and provisions of the
GATT, forecasting of possible implications of the results of the UR on country’sgn Affairst might be
later the
tacts withlowing the
in 1990..
12. The Office of the Special Adviser to the Director General played a leading role in advising and assisting Mongolia in initial steps of its application and negotiating process. In 1990, 1991 the first GATT missions visited Mongolia, during which the general seminars on GATT and UR negotiations were organised for governmentofficials and business representatives. The audience was hardly understanding the complex language and concept of the unknown system. The interpreters had
229
difficulties in translating the terms of international trade disciplines. Many of participants, especially business and industry showed little interest in the sthat time they did not realise that the GATT/WTO issues would soorelevant to the country, its economic reforms and rules of business. Tunderlines the importance of these missions as the first activitfamiliarised the government and non-government actors with the GATT.
13. Since 1989 Mongolia was invited to participate in the GATT TraCourses. The first trainee from the Ministry of Foreign Affairs/MFA/ w1990. Mongolia has been benefiting from this training for more thanaround 7-8 officials representing MFA, Ministry of Trade, Customs htrained. The first trainees were directly involved either in Genevaheadquarters in accession work, they made their due contribution. Tpolicy and other short-term courses of the GATT/WTO helped Mongolfirst capacities, accumulate knowledge on international trade policy. UnfLater trainees either did not stay long in the government services or werduties not directly related to the WTO. The issue of efficient use ofassistance in developing national expertise and human resources are oftenthe donor agencies. It is important that the national Government idenselects the right target group, departments, in particular those withresponsibility for the subject. It is not rare that after having invested sufinancial resources and time for training a Government failsaccumulate a pull of national experts to mobilise. In planning andtechnical assistance programmes for training national expertscommitments and responsibility of a beneficiary Government must be ens
14. The Missioapplication, in designing and recommending the policy and actions needed in the country’s accession process. No doubt that the Government in making aapply for accession gave a serious consideration to the recommendatiwatch in Geneva.
15. In 1988-1990 the Mission
es with a particular focus on importance of the integration of the coobal trade and economy. The assessment of the situaendations of the Mission in favour of accession to the GAT
marised, inter alia, as follows:
Á although Mongolia is a centrally-planned economy it is a dcountry by the UN definition. The Contracting Parties/CP/ shave a reason to object against a developing country with a very little
ubject. Atn be veryhe author
ies in Mongolia that
de Policyas sent in14 years,ave beenor at the
hese trade ia to buildortunatelye assigned technical raised by
tifies anda primary
bstantialto sustain or
executingstronger
ured.
n of Mongolia in Geneva had a key role in planning the timing of
decision toons of its
had several contacts with the GATT Director General and his Special Adviser and sent numerous communications to the MFA on GATT issu untry intothe gl tion andrecomm T can besum
evelopinghould not
share in the world trade,Á two big neighbours are still not CP to the GATT, Á GATT differs from the UN system institutions in many aspects. The
acceding country takes binding commitments, the accession processitself involves a big deal of preparatory work, as well as extensive bilateral negotiations with the interested CPs.
230
Á The UR negotiations will expand trading rules to new areas likeinvestment, intellectual propertyeconomic body with a global dimension.
Á It is important to make a timely decision on issues of a memglobal institutions like GATT to accelerate market reforms into develop and expand trade with the GATT CPs. Mongdecisive and courageous internal reforms of open economy..
Á Becoming an observer will help us to familiarise with the business of
particular in human resource development.
16. The messages of the Mission show the vision of global processes, oplaunched reforms and geopolitical consideration of the diplomats in theifor the country’s speedy accession to the GATT. The lack of adequate expertise andresources on GATT/WTO at the headquarters puts a huge burden and reson a diplomatic mission of an applicant country accredited to Geneva. Ofdiplomatic mission of such country that in fact identifies national straactions on accession or multilateral negotiations later being formally endocentral Government.
their permanent access to counselling should be an essential part ofassistance programmes.
17. After three years of intensive correspondence and deliberations betweand the headquarters in June 1991 the Government of Mongolia made dapply for acccession to the GATT. By the letter dated 17 June 1991 addreDirector General of the GATT the Mongolian Ambassador submittedapplication of the Government to accede to the GATT under Article Xrequested the application to be circulated to all CPc and be considered in awith the usual procedures. The response from the Director General cadays, advising Mongolia to hold consultations with the main CPs tosupport for application and inform the Secretariat of the results, on thwhich the application would be put on the agenda of the GATT
support and was assisting the Mission in handling and coordinating aspeedy procedures. Mr.A.Linden visited Mongolia as a special envoDirector General in 1993 during the crucial period of extensive ingathering stage and start of negotiating phase of the country’s accession.
18. Following the advice of the GATT Directestablished procedure the Ambassador of Mongolia in Geneva heldpositive consultations with Ambassadors of US, Brazil, Canada, EEC,Sweden, Swiss, Japan. With none of them Mongolia had substantial tradebut Japan, US, European Communities were starting their donor activities
services,rights. GATT will become a big
bership inMongolia,olia needs
theGATT, to develop technical cooperation in trade-capacity building, in
timism forr advocacy
ponsibilityten it is a
tegies andrsed by a
In this respect support in capacity-building of smalldelegations in Geneva of applicant or newly-acceded countries, setting network of
technical
en Genevaecision to
ssed to thean officialXXIII andccordanceme in ten get broade basis of
Council. The Officeof the Director General, and in particular his Special Adviser Mr.L.Linden gave full
ctions fory of theformation
or General and in accordance with theseries ofThailand,exchange,in support
of the country’s political and economic reforms.
19. On 8 July 1991 the Ambassador of Mongolia sent a letter to the GATT DirectorGeneral informing of the consultations held and requesting to make the necessary arrangements for inclusion of the application of Mongolia in the agenda of the nextCouncil meeting. The GATT Director General in document L/6886 of 17 July 1991
231
announced that the Mongolia’s application would be considered by theits meeting on 8-9 October 1991. It took just
20. The application of Mongolia was put as Agenda item I for Council meon 1 October 1991. The charge d’affairs of the Mission represented thethe meeting. The Governme
tin due to budget constraints.
Á The representative of Mongolia reiterated the wish of the Govaccede to the GATT,with the GATT principles, and briefed the Council on histortaking place in the country.
Á Japan expressed its Government’s support for Mongolia’s pain GATT which would promote the country’s trade and investm
Á The United States welcomed the country’s application and stressed the unprecedented pace of Mongolia’s reforms to transform froplanning to a market-oriented system /Minutes of Councildocument C/M/252 of 4 November 19
Á Support of these world leading economies was noted by the Goas their commitment to continued support and cooperationissues of country’s future development goals.
Á The Council established a WorkMongolia, and granted it an observer status.
Á In January 1995 the WP on accession of Mongolia to the Gwas transformed into a WTO accession WP.
21. Membership of the Working Party included some 25 countries likeAustria, Canada, Czech Republic, EC and its member states, Finland, HoHungary, India, Japan, Korea, Norway, Poland, Sweden, SwitzerlandAmbassador of Austria H.E.Mr.W.Lang was appointed Chairman of thchaired it until he was appointed to his next duties in Brussels in eaAmbassador Lang officially stayed Chairman of the WP until complework. In his absence the WP continued and successfully concluded its wo1996 under the interim chairmanship of the Director of the Accession Dthe WTO Secretariat. Apart from rendering its regular assistance in prerefining documentation for the meetings of the WP, in case of MoAccession Dmediating role in getting consensus and agreement in bilateral a
ular the Accession Division deserved special tribute for their hard word, extra burden and efforts, but this unusual chairmanshipat the final, crucial stages of the accession put a bit of ne
Council at a month to formalise the application
request of Mongolia for consideration by the Council.
eting held country at
nt could not send a capital-based official for this mee g
ernment to informed the familiarization of the Government
ic changes
rticipationent .
m central Meeting,
91/.vernment
on broader
ing Party/WP/ on accession of
ATT 1947
Australia,ng Kong,
, US. Thee WP and rly 1996.
tion of itsrk in Juneivision of
paring andngolia the
ivision, its Director and the Secretary of the WP played an importantnd multilateral talks.
The Secretariat and in particof the WP
rvousness, uncertainty on Mongolian side.
3. POLICY PRIORITIES THAT SHAPED DECISION TO APPLY
22. In making the decision to apply for accession to the GATT the Government of Mongolia was guided, inter alia, by the following policy priorities:
Á to break the legacy of political and economic isolation of the country,
232
Á to take advantage of earlier membership and multilateral mechfuture trade agenda with its two big neighbours that were fMongolia in this process. China’s accession activstalled after Tiananmen Square uprise, Russia didn’t even app
Á to incorporate its interests in the results of the ongoing and future rule-setting negotiations,
Á to accelerate open, market economy reforms, including liberatrade and encouragement of foreign investment, technology,
Á to reduce the dependence on a few markets where centralsystem
Á to enjoy preferential treatment unilaterally offered by
Á to develop trade, cooperation, partnership with leading world ec
23. One can often find and hdeveloping countries do not have any developed policy in place, they cannot negotiate their terms of accession.
look low profile guests. Some countries indeed might have not had wellbusiness plans while applying for accession.
25. One should also notice inflow of applications in 1990s mostly from coof former Soviet Union, including Baltic states, and countries likeBulgaria, Albania, Slovenia, Croatia, FYR of Macedonia. No doubt that tcold war, collapse of th
priorities. By joining influential world institutions like IMF, WB, GATT/primarily sought political and economic support for their independdemocratisation of society.
26. Mongolia was not an exception. In first place it saw political advbecoming a member of the club. Economic assessments were developcourse of the process. Accession process for Mongolia was a part of leatransition to market economy, adjustment to international economic rules.
27. The countries with heavy legacy of different forms of dictatorshipaftermath ofmore sympathy and well- designed negotiating strategies from the sidemembers. Afghanistan, Iraq, Sudan, Somali, North Korea – pendingentrants. Do they have their policies, strategies in place? What entrance feebe asked for? Will they be given an adequate grace period or policy space to adentailed costs?
anism in ar behind
ities were almostly.
lization of
planning and state monopoly of trade were dominating,
developedcountries
onomies.
ear observations and even criticism that somenot and do
24. From the point of view of creators of the rules the new or small countries might-calculated
nstituentsMongolia,he end of
e communist ideological colonialism were crucial factors intheir decision making. They had policy, they had their political agenda and
WTO theyence and
antages of ed in therning and
, or in thelong civil wars, religious and ethnic cleansing should be treated with
of parentor futurewill they
just
28. The above notion, questions are without prejudice to the importance and necessity for any applicant country to have proper policy and structural adjustmentplanning well-before the application is made especially to the commercial institution like the WTO. Trade capacity-building, WTO-related technical assistancefrom bilateral and multilateral agencies significantly increased in volumes and product deliveries over the last decade. Fourteen years ago Mongolia had little of it.
233
Today the applicants are offered enough technical assistance, expertise,WTO. There are even overlaps and competition.natio
4. INFORMATION GATHERING STAGE
29. The first draft of Mongolia’s Memorandum on Foreign Trade Recirculated in January 1992 /document L/6943 of 22 January 1992/. IGovernment some 7-8 months to produce this document. The applicationas mentioned above went sm
questions from the member states.
30. Ministry of Trade and Industry/MTI/ was assigned with responsibhandling accession p
or ign Trade and Treaty and Law Department where core Englishessionals worked.
Á This task was assigned to 4-5 people. None of them had westernbackground nor deep familiarity with the GATT.
Á In the beginning, in particular in drafting Memorandum, the Massisting in translating the assembled documents. There were diffprecise translation of legal and trade terminology. It was revealed later that many questions posed by the CPs in connection with the Memcould have been avoided had the translation been correct. Toexample: a term ‘legal peof countries requested clarification.
Á Until 1996 the Mission in Geneva did not have a trade diplomcontribution in channeling distance advice and assistanceSecretariat was very essential.
Á The line Ministries preoccupied with their own agenda werefurnishing the sectoral information.
Á Fast legal reforms were resulting in introduction of many new lawtranslation of which wlegislation.
Á Technical processing of documents was not supported by efficient office equipment: the staff did not have computers, copying facilities wefax transmissions were expensive, information technology was aexistent until early 1996.
Á No external help was rec
31. Both the Government and the Secretariat expected that Mongolia woua CP to the GATT, that its accession process would not take long and w
training on Has technical assistance helped the
nal Governments to bargain better price?
gime was t took theprocedure
oothly. The real burden for the Government started with compiling and supplying of required information, answering numerous
ilities forrocess in a whole. The MTI mobilised its Department for
F e speakingprof
academic
FA wasiculties in
orandumgive one
rson’ was translated as “justified person”. Number
at, but itsfrom the
slow in
s, Englishas not available. The CPs were requesting the texts of
re limited,lmost non-
eived in drafting and preparing the documents.
ld becomeould not
involve serous difficulties. The Government was not aware of the complexity of theGATT bilateral and multilateral negotiations, the Secretariat was not fully aware ofcomplexity of situation in Mongolia.
32. After the establishment of the WP in October 1991, the first meeting of the WP was expected to take place in less than six months, in March 1992, but
234
Memorandum was made available to the CPs only in late January 1992.April more than 70 questions from the CPs were consolidated by the Secrsent to the Government, with a request to reply by 15
In March,etariat and
ceived by the end of the year, English texts
first timeonth
re. It was, given that they had other
responsibilities to look after. More than 100 questions and answers were exchanged
, licensingelopment,nvestment
Codes etc.her issues
rther examined in the WP. Formulating replies to
binding
ispensablenformationformation
the laterformation.nd variouss is very
s needed well before the application is made Timelyassistance will allow the countries to present the Memorandum shortly after the
e work of
g to the on of the
e Government negotiating group headed by the Minister for Trade and Industry was established. The group included representatives from MFA, Central Bank, Customs, Mission in Geneva and broad representation from the Ministry of Trade and Industry. There were no representation from non-state actors in the group in any capacity/observer, adviseretc./. As mentioned above, at the operational level the daily business was run by trade economists and law experts of the MTI.
th th May. On 5 June answers to 23 questions were submitted to the Secretariat, which were circulated to the CPsin a month time. No more replies were reof some requested laws still were not available.
33. Pending the completeness of requested information the WP met for theonly in June 1993, i.e after 20 months from its establishment. Minimum one mwas needed for answering questions, for a lengthy list it took far moindeed tiring and pressing exercise for people involved
until the first draft of the WP Report was produced in May 1994.
34. The initial questions from the CPs related to state-controlled pricessystem, quantitative restrictions, privatization, private sector devtreatment of private ownership, banking system, exchange rate, foreign iand trade regime, intention of the Government with respect to MTNMore details of laws, regulations, sectoral policies, taxation system and otthat affected trade were fuquestions raised at the WP and drafting the provisions of the WP report required more careful and policy approach since they incorporated futurecommitments for the Government.
35. Data collection and assessment of information are important and indexercise for members and applicants alike. Development of the itechnology, cyber world enormously increased access to broad range of inand speed of information exchange. It certainly greatly facilitatedapplications in many terms, including supply of national data and inNonetheless, assisting countries in drafting and preparing Memorandum aother accession-related documents, in translating laws and regulationessential for countries with limited expertise and administrative resources. This kind of technical assistance i
application and paper processing work will not create undue delays in ththe Working Party as it happened in many instances in case of Mongolia.
5. NEGOTIATING STAGE
36. The Government Action Plan for 1992-1996 put the goal of accedinGATT and actively participating in its activities. By the ResolutiGovernment No 69 of 13 September th
235
37. Mongolia conducted tariff negotiations with 11 countries, including
Á In most cases the inas early as January 1993.
Á Based on series of first bilateral tariff consultations Mongolia tabled its open offer in May 1994 during the 3
Australia,Canada, EU, Japan, Mexico, Finland, Iceland, Norway, Sweden, Switzerland, US.
terested member countries made their initial requests
The offere
net meeting.Á Mongolia offered ceiling binding at 30%, final commitment was agreed
average it took 1,5-2 years to complete tariff negotiations. The shortest were within 1-4
39. uding the US,EU, p
1995.same year,
ed and thents was circulated in January
1996. Negotiations took less than 7 months. uests and
ade in 9 sectors.
40. signing inWashin dlock andacce r
raft of thetarget date of 2 April
for a final meeting of the WP.o chair the
final meeting.pletion of
41. Mo very finalstage.
Á Some major Members objected sooner scheduling of the final meeting as a pressure while there were outstanding multilateral elements. TheSecretariat had to cancel the meeting. Final WP meeting was madepossible after another three months of hectic resolving the heavy pressure requests.
rd WP meeting.incorporated the guidelines of the negotiating positions endorsed by thCabi
at 20%.
38. Inwith Mexico, Canada, and Australia, where agreements were reachedmonths.
Services commitments were negotiated with fewer countries, inclJa an, Canada, Switzerland.
Á Mongolia submitted its initial and revised offers in March, JulyÁ The US was the first to conclude agreement in September the
followed by the EU, Switzerland, Japan, Canada.Á In November 1995 the negotiations on services were complet
consolidated schedule of specific commitme
Á Services negotiations did not involve serious differences. Reqoffers were treated with flexibility and compromise.
Á Commitments were m
In February 1996 tariff negotiations were also completed withgton agreement with the US. It was seen as a break of the dea
le ation of the process.
Á Given the progress made on services negotiations and on the dWP report later in February the Secretariat set the
Á Ambassador W.Lang was expected to arrive from Brussels t
Á In June general elections were to take place in Mongolia. Comaccession process was getting political flavour in Mongolia.
ngolia did not knew that serious circumstances were to arise at this
236
Á The package agreed in Washington contained 7 pages of list oissues, including list of notifications to be submitted at thaccession, information to be supplied and reflected in the repoWP, as well as draft of commitments to be taken byWashington market access agreement was presented to the Secreonly in April after parties reached agreement on Protocol issue
Á Tariff agreement with the US prompted new requests and re-earlier agreed packages. In early April 1996 a Member madeon two products on which it did not expressed and followedinterest since Mongolia tabled its open offer in May 1994. Tshortly reached agreement. Later in April another major Mopened its agreement signethat rates agreed with other members on those products discrim“like” products of that Member.
Á 7 days before the approval of accession by the General CouJuly –National Day of Mongolia the representative of the USto Ambass
would not have a formal WTO relation with Mongoliaaccession.
h WTO language in respect of accession terms is vague. Articleesh Agreement refers to “terms to be agreed” and does not set a tpletion of accession.
the mandatory disciplines of the WTO Agreements, both in vdocuments, information to be supplied before the accession, In later accessions there are
Á Any member may come up with any issue at any stage ofprocess.
Á Successful
multilateral Protocol bindings that may hurdle the process.Á A negotiating member may condition the results of agree
market access accord upon the agreement on certaincommitments.
43. The accession of Mongolia was coJune 1996, and later approved by the General Council on 17
f Protocole time of
rt of theMongolia.
tariats,opening of
a requestsubstantialwo partiesember re-
d a year earlier on two products on the ground inated the
ncil on 11presented
ador of Mongolia decision of the US Government to invoke non-application clause of the WTO Article XIII, meaning that the US
after its
42. T e XII of theMarrak ime framefor com
Á The terms requested by a member/s from an applicant often go beyond olumes of
accession
conclusion of bilateral negotiations does not exclude the right of any member of the WP talks to raise later issues of stringent
d bilateralProtocol
mpleted at the final meeting of WP on 26th
atificationber 1996
anuary 1997. Started withapplication to the GATT Mongolia did not managed to become an original memberof the WTO.
44. Mongolia’s accession involved … formal and … informal WP meetings, and series of bilateral consultations in Geneva and in some of capital cities. Thedifficulties it faced in the accession may by summarised as follows:
th July. With rof the accession agreement by the Mongolian Parliament on 29 DecemMongolia became an official member of the WTO on 29 J
237
Á It lacked resources and adequate capacities to handle the expanse of requested information.
Á Familirisation with the GATT/WTO subjects was limited.Á Full translation of rules was not done until after accession.
barriers prevented public at large, in particular non-state acinvolved in policy and strategy formulation. On the otherbusinesses and NGOs were weak and nascent at the early stacountry’s accession.
Á Being in transitipackage of new laws and regulations requiring national poeconomic consen
Á It had weak negotiating power, sometime political ambitions guided the results of negotiations.
Á Although many of its commitments were supported by parallelreforms and accelerated their pace, the denial of S&D transitiin respect of many provisions of the WTO Agreementdifficulties at implementation stage.
Á In case of former “communist couseem to pursue the policy of tight binding those countries to inrules ensuring irreversible depart from old regime. This mightof their stringent, non-negotiable requests.
Á No substantial WTO specific technical assistance was deliveaccession process. GATcourses and national seminars, assistance of the Secretariamain expertise Mongolia received in its policy planmanagement of th
Languagetors beinghand, theges of the
on to a new economic order Mongolia was developing a litical and
sus.
economicon periods created
ntries” the major WTO negotiatorsternationalbe reason
red in itsT/WTO, UNCTAD, ITC short-term training
t were thening and
e accession.
45. Mongolia’s accession brought it many benefits and challenging tasks. The pace of its political and economic reforms is very impressive. But adjustment costs are certainly an issue for years ahead.
238
Nepal's WTO Accession Negotiations:
aiya B. Mat
1. Introduction
This paper is the outcome of the author's discussion on WTO matters with the NMembers for the WTO Accession Negotiation. The paper tries to identify andpriorities of the government and the support of the technical assistance of the bilator international organizations for its accession to WTO. It argues how WTO memhelp Nepal achieve benefits from greater integration into the world economy, prenhancing dis
embers of the LDCs. The paper further analyses the implications of WTO aepal in its agriculture and poverty redu
ollowing issues.The priorities that the nation identified as important for its WTO accessioprocess by which these priorities were identified.The steps taken by the government to organize and prepare for its participatiaccession negotiations. The ways in which non-state actors werThe principal challenges faced when negotiation with WTO members and wwith the WTO secretariat
¶ade during the WTO acces
¶ The type, extent, and usefulness of any technical assistance received from bilator international organizations.
2. Macroeconomic Scenario
Nepal with a population of 23 million is a landlocked and mountainous country. It has a per capita income of US$240 as of 2003. Agriculture is the main source of iemployment, and accounts for 41% of GDP and more than 80% of employme2003). Tourism is one of the most itotal foreign exchange. Its contribution to the GDP is about 8 per cent. India iimportant trading partner of Nepal. No doubt, trade has been diversified to a greatthese days. Nevertheless, the mountainous topography of the country has becomefor high transportation cost and has created a situation of total dependence on Inand transit facilities with the external world.
The economic structure has undergone a structural change over the decades. The share ofagriculture in GDP has decreased from over 60 per cent two decades ago to aboutat present. The share of industry has increased from 13 per cent to 20 per cent during the same
Lessons for LDCs
(Draft)
Kanh hema
epal's Teamanalyze the eral donorsbership canimarily by
cipline on policymakers, and could be an exemplary model to the non- WTOm ccession of N ction strategy incorporating in particular the f¶ n and the
¶ on in WTO
¶ e involved in the WTO accession. ¶ hen dealing
.The steps taken by the government to prepare for the implementation of commitmentsm sion negotiations.
eral donors
ncome andnt (MoICS,
mportant service sectors contributing about 12% of the s the moster extent inresponsible
dia for trade
40 per cent
period. The economy has become more integrated, as the share of trade in goods and non-factor services has nearly doubled over the past decade to about 50 per cent of GDP, the second highest ratio in South Asia after Sri Lanka (MoICS, 2003).
With the advent of the 1990s Nepal expanded the role of private sector with the inception of stabilization and liberalization policies. The rise in private sector investment has boosted
239
trade. Export earning has been steadily increasing. The economic growthsignificantly. However, the rosy picture of the economy did not last long. Tsituation went on deteriorating while global economic volatility was distinct. Allthe down tern in the Nepalese macroeconomic sector. The week economy has co2002/2003 while price level rose more sharply. Sharp decline in total export has beendiscerned in the fall of export to countries outside India. A week economy is reflereduced demand for private credit having its impact on employment and income haimplication on poverty. Aid disbursement has slowed down. Real GDP has 2001/2002. Agricultural production has not risen due to irregular rainfall.
The incidence of poverty is high in Nepal. The poverty rate is 37 per cent taking ithe international dollar-a-day measure of poverty. Since poverty is basically prevasector, which is no other than agricultural sector, improvement in living standardhas not become possible. This sector has not yet changed from subsistence status tone so that productive employment and income are generated that would benefit the poor mass that ultimately would take care of poverty. Poverty in Nepal is linked predoa shortage of productive land. It is primarily a function of severe population plimited land resources giving rise to frequent food problem. Small and marginal faroperate 90 per cent of 2.7million agricultural holdings and majority of small aenterprises are agro-based (Shakya, 2004). Land ownership is highly skewed. Inabsolute poor, particularly in the Hills, own less than 0.5 ha (above 50%)cent in the Terai (plain land) holds less than 0.3 ha. On the average, a poor rural faland just under 0.5 ha produces grains sufficient to feed the family for less than syear pushing those poor virtually into the sphere of food insecurity (Mathema, 200
It was a challenge for Nepal to promote and sustain her growth. These c
to the WTO accession is a silver lining in Nepal's horizon backedfrom Nepalese abroad. It helped Nepal to maintain a positive level of her current account. In this way, Nepal's membership could help alleviate the state of poverty (Appendix A
3. Institutional Set Up and Mechanism for Policy Coordination
In 1998, Nepal gave the highest priority to coordination among government MiDepartments by establishing a high-level committee to prepare for accession toSecretary at the Ministry of Industry, Commerce and Supplies headed the Cocomprised the Secretaries of the Ministry of Industry, Commerce and Supplies,Law, Ministry of Finance, Ministry of Agriculture, Ministry of Foreign Affairs, aof Tourism and Culture as well as representative of the Nepal Rastra Bank (Central Bank) and the National Planning Commission (NPC). The committee has policy issues to the Government regarding the fields and sectors of the economrelevant to WTO. The main objective of the committee was to represent all line migovernment institutions having a direct link with WTO-related agreements. The obto ensure coordination needed for facilitating negotiation and policy formulationNepal's economy and foreign trade under the WTO regime.
The Ministry of Industry, Commerce and supplies was principally responsible for form
rate rosehe securitythese led to
ntinued in
cted in theving direct
declined in
nto accountlent in ruralof the masso industrial
minantly toressure on
mersnd mediumgeneral, the
, and about 30 permily owing ix months a3).
hallenges could beovercome only by raising production and competitiveness in the world market. Management
by the rising remittances
).
nistries andWTO. Themmittee. It Ministry ofnd Ministry
been responsible for providing y that are
nistries andjective wasconcerning
ulatingand enforcing trade-related policies, including WTO membership. The ministry's major areasof responsibility included the implementation of trade policy, the establishment of bilateral, regional and multilateral trade relations, and the development of capable manpower for internal and external trade enhancement. It was also empowered to conduct surveys of internal and international trade prospects as well as the management of cost-effectivetransportation including the country's multi-modal transit and trade facilitation program.
240
The Department of Commerce handles the registration of trading firms, the issuingand the authorization of goods to be imported or exported. The National Bureau oand Metrology, under the ministr
Another important function of the Ministry is the development of policiesinvestment and technology transfer, industrial promotion and protection, andindustry-related patent and trademark protection. The policy on the supply of esbasic goods as well as the supervision of the market and
coordinated preparations for WTO accession with line ministries.
The Ministry of Finance is closely associated with international trade matters ascustoms duties and taxes, monitors the balance of payments situation, andmonetary and fiscal measures. The Ministry of Agriculture bears the major responfarm productivity, subsidies and support, plant quarantine and food research. The
measures. By including all linecounseling in formulating policies in the area
4. Nepal's Accession Process
The transition from the General Agreement on Trade and Transit (GATT) (19World Trade Organization (WTO) on January 1, 1995 is notably one of the imporof the 20
of licensesf Standards
y, has been designated as an inquiry point regarding the WTO-related technical barriers to trade.
on foreigntrade and
sential andpricing mechanism also come under
the purview of the Ministry. A separate WTO Division within the Ministry has actively
it enforcesimplementssibility for
se activitiesare closely linked with the WTO agreements on agriculture and sanitary and phytosanitary
ministries and agencies, the committee expects to receives that are relevant to the WTO mechanism.
47) to thetant events
g stone thatc globalization in a multilateral
trade regime, particularly for the developing countries such as Nepal. She can benefit from
tunities for
ic policiestion in the
ade sectorcompetitiveed and the
th Plan (1997-2002) set the long-term goal of strengthening the globalization of tation of itse businesst the WTO
cted sectors
ound whenade dispute
has resulted into the establishment of the Working Party for Nepal's membership in GATT. The so-called trade dispute lasted for 15 months and concluded withnew treaties being signed. Hence, the urgency for Nepal to join WTO so as to be protectedunder GATT Article V on transit rights got less prominence and was postponed. The process was resumed only in 1995 as WTO accession under Article XII. In the same year, Nepal got the observer status in the WTO. Nepal converted the GATT membership application tomembership in WTO.
th century in the world economic system. This event is taken as a steppinhas far-reaching implications in the explanation of economi
the growing global integration of trade (both goods and services), that is reflected in thegreater competition with lower cost and higher quality goods. It provides opporreaching the potential inherent in the country's comparative advantage.
After the restoration of democracy in 1990, Nepal's social, political and economhave focused on creating environment conducive to private sector participadevelopment process. Particularly a liberal trade policy was adopted to integrate trin the international economy, attract foreign investment, make domestic productsand diversify trade to generating employment. The pace of reforms continucountry's Ninthe economy through accession to the WTO. The accession effort is the manifestrade liberalization policy thereby ensuring a transparent and predictablenvironment. One of the important reasons for embracing openness, which is whaaims at for economic growth and prosperity, is to infuse competition in the proteof the economy.
Nepal's accession process to the WTO has started formally during the Uruguay RNepal applied for the membership to the GATT on 16 May 1989 following a trwith India which
241
Likewise, the GATT Working Party was transformed into a Working Party on Athe WTO. Subsequently, in accordance with the WTO procedures for accesssubmitted a Memorandum of Foreign Trade Regime in July 1998. The WTOcirculated Nepal's Memorandum on Foreign Trade Regime to the WTO member1998. The questions and comments in respect of Nepal's economic policies, existitrade related property rights (TRIPS) raised by the member countries were foNepal in January 1999. Nepal respoby the WTO members in 1999 and 2000.
The first meeting of the Working Party was held at the WTO Secretariat in GenMay 2000. The Nepalese Team was led by the then Minister of Commerce, Mr. RTamrakar. In response to the development of the First working Party Meesubmitted a schedule of tariff concessions and schedule of initial commitmentssector in July 2000. Mr Mohan Dev Pant, Secretary in the Commerce Ministry, parthe second round of negotiations in Geneva on September 2000 (Nepal Rastra BThe meeting reviewed the market access negotiations in goods and services and dilegislative action pla
institutional and legal framework or provide adequate skilled manpower to canegotiations in her favor.
The endorsement at the Doha Summit on Integrated Framework for Trade RelateAssistance for LDC, (IF) did have a special bearing on Nepal's capacity-bovercoming the existing internal constraints and its ability to negotiate expeditiodevelopment of trade (Tr
several meetings of the Working Party and bilateral negotiations with different mthe WTO. On 11 September the Fifth Ministerial Conference of the WTO apAccession Protocol of Nepal.
Her membership in the WTO was approved at the Cancun, MMeeting in September 2003
ccession toion, Nepalsecretariat
s in Augustng laws andrwarded to
nded to such questions/comments raised on Memorandum
eva on 22am Krishnating, Nepal
on serviceticipated inank, 2002).scussed the
n. The meeting also considered for the necessary technical assistanceneeds of Nepal for accession to the WTO since Nepal was not in a position to prepare an
rry out the
d Technicaluilding forusly in the
ade Promotion Centre, 2003). The accession negotiations lasted for more than a decade. Nepal accomplished her accession negotiations successfully in 2003 after
embers ofproved the
excio WTO Fifth Ministerial47th member of the
global trade regime. Prior to that, Nepal has reduced formal trade barriers in 2002 well belownka where
largely considered to be the core of Nepal's objectiveluding themultilateralstaken andTO reforms
t directly. Itis the Government that participates directly in WTO negotiations. However, business interestsin WTO member countries drive the trade agenda. This is why the Nepalese businesscommunity and other stakeholders cannot afford "rational ignorance" about the multilateraltrading system under WTO in this age of globalization. The scope of WTO has been extended from trade in goods to trade in services and trade-related intellectual property rights. Even the Nepalese business community has begun to understand that the substance of national laws and
194 and paved way for Nepal to become the 1
those of its neighbors in the region World Bank, 2003). No doubt, Sri Laliberalization began in the late 1970s and early 1980s was an exception.
4. Public-Private National Ownership of World Trade Organization
The significance of accession to WTO isof achieving multilaterism and globalization. Initially, the stakeholders (incbusiness community) attached little importance to their involvement in thenegotiations or to the impact of globalization. Clearly, that indicated the miuniformed attitude among Nepalese stakeholders that the national ownership of Wrested only with the government.
It is true that business entities have no status under the provisions of WTO, at leas
194 The chronology of Nepal's accession to WTO is given in annex1.
242
regulations that are directly applicable to their transactions are determined by diffagreements and decisions. Therefore, they have sought more detailed informationchanges in the global trading environment and specific regulatory areas affeinterests. This information caother multilateral trading systems.
However, the situation is changing as stakeholder intervention has increasedduring the latter part of Nepal's accession process to WTO. During the Doha SNepalese delegation included a representative from the business community. Thfirst time that the G
public forums on WTO.
Given the global scenario of globalization and liberalization Nepal cannot keep herthe world economic order. Thus, these priorities have been considered with muchwith the stakeholders, particularly the FNCCI of Nepal (FNCCI's activities on WTOin annex 2) on WTO benefits an
to increase the sense of national ownership among the political parties, in MParliament were briefed on WTO issues.
The three major mechanisms identified for creating national ownership of WTONepal are easier and timely access to WTO information, government-pripartnership and a network among stakeholders. The first mechanism is crucial to ththe Nepale
fully acquainted with applicable and bound tariffs under WTO. Other WTO rulesdirect importance to businessmen include provisions on agreements on agricultureand clothing.
The WTO mechanisms on subsidies, anti-dumping and countervailip osanitary measures, rules of origin,
respective markets. Obviously, the need for an institutionalized government-pripartnership with regard to WTO developments in Nepal has been recognized.
5. Nepal's Rationale to Join the WTO
It was Nepal's conviction that WTO memand efficiency in trading capacity but would also result in the expansion of trade,higher level of growth and enhancement of quality of life of the people in g"Accession Protocol" offers immense opportunities for taking Nepal's gdevelopment processes at a new height and proves a valuable means to fight again the country through market mechanism.
By joining the WTO Nepal hopes to integrate its economy into global mainstreamwould expand its external market beyond its national boundaries. It would help sec
erent WTOabout the
cting theirnnot be acquired without knowledge of the reforms in WTO or
noticeablyummit, theis was the
overnment had taken such a step. The role of business associations andother stakeholders in advocacy has increased by regular interactions and the organization of
aloof fromdiscussionare given
d costs. In the initial stage, non-concern on WTO was expressed from many quarters in the civil societies with deliberations against WTO. In order
arch 2001
reforms invate sectore efforts of
se business community to prepare business strategies and stay tuned to the futureregulations on market access. For example, it is necessary for the business community to be
that are of and textiles
ng measures, sanitary and hyt and trade-related aspects of intellectual property
rights will also have a major impact on the competitive position of Nepalese traders in the vate sector
bership would not only enhance her effectivenessleading to aeneral. Therowth andinst poverty
whereby it ure market
for export of its merchandise having its comparative advantage. Nepal's entry to the WTO would maintain policy stability, which is a sin qua non to attracting foreign investment. In the mean time, it provides ample opportunity to strengthen domestic (private) institutions with the institutionalization of trade/transit rights that would bring benefits from fair trade rules.Moreover, it would enhance the competitive capability of the Nepalese producers in theinternational market since there is ample opportunity to benefit from member driven rulesthan the power based ones. The general conviction is that the WTO membership would be
243
important for Nepal’s development and integration into the world trading systemalso constitute a major step forward in the WTO evo
Nepal has the advantage of service export since the neighboring countries can cowith investment plants in manufacturing sectors such as garment and carpets thaaccess to the world market. Such facilities are not available to countries like IndiaThat is, Nepal would benefit from strategic location between her largest and fast growing
special and differential treatment.
Accordingly, Nepal can give the benefit of protection to domestic producersflexibility, protection to national service providers with domestic regulation andcommitments, safeguard infant and small business entities from permitted subsafeguard from unilateral decisions of trading partners. In the mean time, Nepal's mto WTO makes her possible for expansion of her trading opportunities wherebysecure a share in the gro
people by ensuring higher level of employment and a large and steady growin
6. Nepal's Priorities and Strategies to the WTO Accession Negotiat
At the domestic front, the government constituted a high-level Coordination Committeeheaded by the Secretary of Ministry of Commerce with a view to preparing docaccession negotiation and to effect policy reform compatible with the WTO princCommittee endeavored to build consensus on Nepal's membership to the WTO.
Nepal has fixed its priorities on the basis of its domestic capabilities and developmin terms of tariff in the process of accession negotiations Shrestha, (2003agricultural economy does not allow her to compromise in any ways that wouldher agriculture, handicrafts and infant industry fronts. Thus, Nepal has manesufficient rooms in fixing tariff in trade-in- goods, particularly in agriculturaindustrial products such as cement and
commitments on services with reasonable transition period and has retained tpositive discrimination of WTO. Further, Nepal has given special considerationopenings for FDI, infrastructure and areas of external dependence keeping in mindshift and trend among neighboring countries.
apabilities to compete in the expanded world market by exploring post accessiomplementation of its pledge in the world body. Taking into consideration theosition of Nepal in the internationamportant strategies in the process of accession negotiati
Nepal's ability to comply with the WTO requirements as a baseline for thenegotiati
and wouldlution to achieving the goal of
universality and representation of the interests of all trading nations.
me forward t have easyand China.
neighboring economies. She enjoys the benefit of positive discrimination with respect to
with tariffconditionalsidies andembership she could
wth in international trade commensurate with the needs of hereconomic development. Thus, Nepal can ensure to raising the standards of living of her
g volume of realincome and effective demand.
ions
uments foriples. The
ent needs). Nepal'sjeopardizeuvered forl products,
POL (petroleum products) expressing her commitments with future flexibility in policy regime. It has reserved the conditional
he right tofor servicethe policy
Nepal became convinced that she had to be a part of WTO but has to develop her domesticc ni vulnerablep l trade regime, Nepal had adopted the following i ons.¶ accession
ons.¶ Nepal's development needs to the forefront in the accession negotiations ¶ Acknowledgement of the assessment of the trade policy regime as one of the areas of the
negotiations.¶ Exploration of the possibilities for flexibility on tariff ceiling ¶ Consideration of its lack of comparative advantage on opening the service sector for
foreigners.
244
¶ rimination.veloping country, she needed to be
¶ ime of herot only beg countries
¶ ,farmers' right and intellectual property rights since Nepal could not compromise with
rise to twof the global politics inty needing
Nepal haseneration.
e arithmeticO is a tool of free and fair trade
at par with taking the
n terms of economic andinstitutional capabilities, and potential opportunities manifested in likely benefits and costs
the accession negotiation with respect to non-licated andsistency in
it lacked
f negotiations and Working Party meet for Nepal's accession to the WTO of bilateralut bilaterald, Canada,t during the
queries and clarifications inccess (Thef from the
further asked Nepal for her full commitment on wider services, adoption of chemicalharmonization (acceptance of international standards, equivalence and mutual recognition)and revision of non-WTO compatible (regional trade agreements) RTAs.
After necessary revisions, Nepal communicated her offer to the negotiating countries. The revision has been made especially in two fronts, including binding tariff and opening up of
Advocacy for accession negotiation on commitments based on positive discNepal put forth the case that Nepal being a least degranted the facility of positive discrimination within the WTO. Consideration for the concerns of regional trade and the changing trade regneighbors. Nepal expressed the view that her accession process should nperceived globally but also regionally. The policy changes in the neighborinand their attitude in trade would exert profound impact on Nepal. Nepal decided not to commit on some ongoing issues such as agriculture subsidy
such issues given the agro-based economy of the country.
Nepal finds herself in a serious state of complexity and responsibility givingspecific issues. The first is the fulfillment of the state's commitments as member ocommunity and the other one is her internal problem on account of the insurgencythe country. The government has the obligation to maintain peace and securifurther expanded expenditure while it has to take into account the liabilities associated withthe losses of banking sector and worn out public enterprises. Accordingly,excessively to depend on tariffs and other duties and charges (ODCs) for revenue g
The vulnerability of risk from being non-member of WTO is more severe than thprofits and losses from being a member of WTO. The WTbased on rules designed by free world. Therefore, Nepal cannot but has walkedother countries as a member of international community. A lesson can be learnt byinstance of China, a socialist country is now a member of the WTO.
Nepal brought to the fore the inherent national constraints i
with due consideration as a LDC.
7. Nepal's Bilateral Negotiations with the Member Countries
Nepal has to face multiple challenges during existence of accession criteria, discriminatory terms to accede in terms of comptime consuming frame. It was basically one-way negotiation with much inconbilateral and multilateral negotiations. There was no business advocacy andinformation gap to a greater extent.
The third round otook up the issues that was deferred or remained unsolved during the second roundand multilateral negotiations that were held in September 2003. Nepal carried onegotiations with the European Union, Japan, Australia, Malaysia, New ZealanIndia, Sri Lanka and the United States. However, other countries were also presenWorking Party meet.
The negotiating countries then have raised a number ofsystematic issues and sought broader and deeper commitments to market aKathmandu Post, 2003). The member countries wanted Nepal to negotiate tarifapplied level and wanted to reduce applied level on products of commercial interest. They
245
service sector globally. However, the negotiating countries had raised objectiodifference in the binding tariff proposed by Nepal. Likewise, the WTO member coalso asked Nepal to open up service sectors, against the initial offer of only thscaled down the binding tariff offer to other to some extent. She has sent a liservice sub-sectors on which she is to negotiate. The negotiating countries have ato abide by a numberleast developed countries.
During the last round of negotiations, Nepal showed greater flexibility in the bindilines, although it has struck to its commitment to bind agriculture tariffs at highethose being applied. Nepal was assertive that notwithstanding a difficult ecopolitical environment she had sought to systematically reform and open its econGovernment had liberalized the economy unilaterally over the years because of thethat economic reform and trade liberalization would
general framework of equity, participatio
8. Technical Assistance from UNDP
On the external front, the governmenUNCTAD. It raised her voice at different LDC and SAARC forum briefing tpartners. Moreover, she lobbied through diplomatic representatives for assistancebuilding in the accession negotiation process.
USAID, the DFID and the European Union have shown their willingness to providassistance. To build her technical capability, Nepal received technical assistanceon Custom administration, on TBT and SPS from EU and on TRIPS from Australi
During the initial stage of preparing for accession, Nepal received assistance frompreparing a country Memorandum on Foreign Trade. The project for Nepal's aWTO commenced with UNDP assistance in July 1999. The Project has been coordithe WTO cell at th
economy. It has also examined the WTO Agreements on SPS, TRIPS and servwell as domestic legislation related to the WTO system. The United Nations CoTrade and Development (UNCTAD) is the executing agency, and MOIimplementing agency.
The UNDP assistance program has concentrated on helping the govern
requirements and substantive requests from members of the working party. Moviimmediate support for negotiations, there is a pressing need for technical assifuture implementation of WTO agreements. Successful implementation of WTOules (such as those required by the SPS or TRIPS Agreements, for example) wouilding different types of capacity than what is needed to conduct negotiations.
n over the untries hadree. Nepal
st of 25-30sked Nepal
of agreements, which are not mandated by the WTO to be imposed on
ng of tariffr rates thannomic andomy. Theconviction
attract investments, promotedevelopment and, contribute to generate productive employment and alleviate poverty, in a
n and market-based efficiency.
t sought technical and other assistance from UNDP,o key trade for capacity
Following the approval of Nepal’s accession to the WTO, many donor agencies including thee technicalfrom USA
a.
UNDP inccession tonated with
e Ministry of Industry, Commerce and Supply (MoICS). It has tried tocreate awareness of the implications of WTO on Nepal's various specialized sectors of the
ice trade asnference onCS is the
ment work through theaccession negotiations, addressing the challenging tasks of responding to both WTO reporting
ng beyondstance with
regulatoryr uld requireb
Intensification of private sector involvement in business interactions and institutional mechanism in preparation for WTO accession and the feeling of national ownership are theresults of this project The Project helped in the followings:¶ Preparing technical documents for submission to the WTO, including the Memorandum
on Foreign Trade Regime, Questions and Answers on the MTR, Legislative Action Plan, and numerous other documents in the prescribed WTO format,
246
¶¶ Promoting public awareness about WTO membership.
9. Nepal's Accession Protocol: Strengths and Weakness
ip in 1989.
he same.
nex 3 for2003. The
traints andber of
straints, thefully.
n goods. Itabove the
directly or mitted herself to bind the tariff at 51 per
date of accession subject to gradual lowering down to 42 per cent. Nepal has the flexibility in industrial products as well. It is 39 per cent at the date of
Accessions of Nepal.
merchandise goods, farm products, services and intellectual property rights isMarrakeshme able to
t-developed
ssistance toMembers
ementation
iii. Protection of Farmers' Interest: Nepal has negotiated to undertake necessary steps topromote export on agricultural commodities such as lentils, Niger seeds, tea and coffee,ginger, cardamom, vegetable seeds, flower, silk and silk products, medicinal herbs, fruits etc. Similarly, Nepal has negotiated to provide assistance to agricultural producers through various government programs in areas such as general research, extension services, marketingand promotion activities. These activities include agricultural market information, natural
Conducting seminars for MoICS staff, and
Nepal came up with a comprehensive document, the document of Memorandum of ForeignTrade Regime (MFTR) in 1998 after lodging application for the WTO membershThe document includes legal provisions regarding trade, economic policies, institutional structure for the implementation, delivery mechanism and mandate and process of t
Nepal's fourteen years of endeavor towards the accession negotiation (see anoverview of terms of accession) to the WTO was happily culminated in Septemberentire negotiating process was accomplished by a small team with many consproblems, which are discerned in lack of adequate baseline studies, sufficient numexpertise, and strong institutional mechanisms fraught with volatile political scenario in thecountry. It is a complete satisfaction on the part of Nepal that despite all those conNepalese team had skillfully negotiated with the international communities success
The Accession Protocol consists of two schedules. First, it is tariff commitment oincludes Nepal's commitments not to raise tariffs on certain commodities in futureagreed ceiling line. Given the fact that nearly 81 per cent of the populationindirectly depends upon agriculture, Nepal has comcent on themaintainedaccession subject to reduction at 24 per cent in the long run.
A: Strengths
i. Promotion of the Trade Needs of Nepal: One of the major strengths of theProtocol is that it has incorporated concerns for promotion of the trade needNegotiation on based on the utilization of the flexibilities provided by article XI.2 of theAgreement establishing WTO.¶ In this context, the Accession Protocol has becoincorporate the special and differential treatments that Nepal deserved as a leascountry.
ii. Technical Assistance: Nepal has been successful to negotiating for technical aimplement the GATT 1994, GATS and TRIPs commitments in time. The WTOhave also expressed their interest to work with Nepal to meet the timeline of implof the WTO Agreements.
¶Article Xi.2 of the Marrakesh Agreement Establishing the World Trade Organization provides, "The least -
developed countries recognized as such by the United Nations will only be requested to undertake commitmentsand concessions to the extent consistent with their individual development, financial and trade needs or their administrative and institutional capabilities".
247
disaster relief through crop subsidies, loans and grants for irrigation and other infsupport for small farmers, urea transport subsidies for remote areas, subsidpromotion and diary development grants. Nepal has been able to negotiate fomeasures of supports (AMS) as the de minimis 10 percentage. Similarly, Nepal didInternational Convention for the Protection of New Varities of Plant (UPOVnegotiated to look at UPOV in terms of national interest and explore the possibilitin the future, only as appropriate. Tprotecting the interest of Nepalese farmers.
iv. Promotion of FDI and Transfer of Technology: The Accession Protocol is aregarding promotion of foreign investment in Nepal. The most conspicuous aspeNepal has committed to provide effective protection and enforcement of intellectual property rights. She opened services in eleven important sectors and seventy-five sub-secommitments to develop or amend existinggoods and commitment for non-discriminatory treatment that are foundations forof foreign investment and transfer of technology.
v. Faci
from non-discriminatory, transparent and predictable market access in the WTcountries.
vi. Enhancement of Participation in Multilateral Negotiations: The mostachievement or strength of the negotiation is tin different councils, committees and bodies within the WTO. Such opportunitforum for trade negotiations and articulation of Nepal's interests to promote its traparticipating in multilateral trade norms and rules.
vii. Telements for promotion of trade and realize access in international markets. The AccProtocol is a " trade constitution" for Nepal, As a result Nepal cannot deviate fromagreed, which enhance transparency and stability in legal, policy and administrativNepal.
viii. Balances Between MEA s and WTO: The Accession Protocol is also a bebalancing Nepal's obligations arising from Multilateral Enviroobligation arrestriction to
Nepal has made commitments only to the mandatory provisions of the WTOminimum requirement for any country to become a Member of the WTO.
B. Weaknesses
i. Minimum Support by Baseline Studies: The whole negotiation process wasbased on personal efforts, knowledge, and information of the negotiators exceplimited studies regarding Nepal's position on negotiation. There was a strikinobjective research and studies, which would provide justification to realize concessions an
rastructureies for tea r aggregate
not accept) but only
y of joininghese outcomes of the negotiation are very important in
benchmarkcts are that
ctors, withlegislation to create better trading environment on
promotion
litation of Environment for Trading Opportunities: The negotiation has opened avenues for private sectors to be competitive and efficient to capture the opportunities arising
O Member
significanthat it has opened opportunities for participation
ies providede through
ransparency and Policy Stability: Transparency and stability in trade policy are keyession
the termse system of
nchmark in nmental Agreements and the
ising from the WTO. For example, Nepal has negotiated that it imposes trade fulfil the obligations arising from the different MEAs to which Nepal is a party.
, which is
carried outt few andg lack of
dfacilities that Nepal had sought during the negotiation process.
ii. Small Negotiating Team: A small team had carried out the negotiation for WTO accession. The ream was responsible for all the activities such as preparation of necessarydocuments, collection of data, catering for information, defending Nepal's position, responding the concern and demands of negotiating countries, share information and solicit
248
concerns of different stakeholders, respond the concerns and deman
iii. Conditions of Initial Negotiating Rights: The Accession Protocol has bounuse balance of payment meprotect trade interests of Nepal.
iv. Limitation on Right Granted by the AoA: Article 15.2 of the Agreement onensures LDC members that they are not required undertaking any reduction coDespite this mandatory provision, Nepal had to undertake reduction commitmenagriculture development fee and is required to eliminate it between two to ten yearNepal haagriculture sector at the existing level that needs to limit the rights of Nepal under Article 15.of the AoA.
v. Inadequate Support by Private Sector and Civil Society: Civil society and prcould not sufficiently help the accession negotiation through producing in-depth rstudies equally, to certain degree they were skeptical and less enthusiast. Hadadequate support from them the negotiation process wouldskilful to preserve concessions, facilities and rihad unsuccessfully arguto lack of research based support from private sector and civil society.
vii. Long Gestation Period
accomplished only in 14 years period.
10. Impact of World Trade Organization Membership
The accession of Nepal tdevelopment of the country. The benefits an
obligations to, market access, erosion of preferences, risks posed by technical barrability to defend trade interests.
a. Market Access Opportunities and Obligations
The commitment made by the developed countries regarding market access for imthe Uruguay Round matters to Nepal, considering the export product compositionbeen a structural change in Nepal's export product composition from primary products to manufactured goods (annex 4). Those products are directed mainly towards thecountries such as the United States and the European Union. This is chiefly becausensured more secure and open mareached during WTO negotiations. The main features of market access commitments bycountries include the expansion of tariff bindings to 99 per cent of imports and thof the trade-weighted average tariff. It is estimated that once the agreed tariff redubeen fully implemented, the proportion of merchandise imports entering un
ds of civil society insidethe country, trading off with the interests and demands of negotiating countries.
d Nepal toasures under section 3 of the Export/ Import (control) Act, 1957 to
Agriculturemmitments.t regardings. Similarly
d to take commitments regarding domestic support and export subsidies in the2
ivate sectoresearch andthere been
have been more articulate andghts of Nepal. For example, the negotiators
ed for 60 percent average bound tariff rates on farm products owing
The negotiation process for Nepal was very lengthy, cumbersome and taxing as it was
o WTO will result in both benefits and costs to the economicd costs of WTO membership can be observed vis-
a-vis Nepal's policy reform and trading environment as well as opportunities for, and iers and the
ports under. There has
developede they have
rkets for LDC exports under various understandings these
e reductionctions have
der the preferential market access will increase in the United States, the European Union and Japan,all important markets for Nepalese exports.
Nepalese exporters have also been provided with an equal opportunity to increase their sharein the global market as a result of WTO commitments. Nepal is concerned more about the assurance by developed countries of expanded duty-free access of industrial imports from thedeveloping countries, and particularly from LDCs. Considering the features of market access
249
commitments, WTO membership should provide Nepal an opportunity to aim fexternal trade
The tariff binding commitments that Nepal has to make as an obligation are impocountry's imports and industrial development. Tariff bindings will give security toand domestic industries, ensuring stable prices of imported raw materials havinimplication to the government by way of custom duties. (Annex 5). That wfacilitating price determination by Nepalese industries. WTO rules that seek imallowed in without further restrictions after payment of duties, and the obligatiothat other national regulations applied at the border conform to the uniform rules lathe adomestic industries are able to imprices.
b. Trade in Textiles and Clothing
The WTO rules have made trade in textiles and clothing liberalized which thecountries and LDCs considered being an important market access commitment mdeveloped countries. Regarding textiles and clothing, poorer countries are expectefrom changes in trade flows, investment and the location of production inducedprovision. The effect of new arrangements in textiles and clothing can be obsrespect to the two groups of countries. Some countries will realize the benefit immfrom the new provision as they have a access has been tightly restricted by the MFA. On the other hand, there are countribeen induced by MFA restrictions to enter the global trade in textiles and clothipossessing a true comparative advantage.
Nepal belongs to the second category. Thus, the liberalized market under the WTOis making it difficult for Nepal to adjust. Theemployment, investment andNepal to form an alliance among the second group of textiles and in order to defend their interests. It is also important to realize that Nepal cannopost-MFA adjustment problem by remaining outside WTO.
c. Provisions in Agriculture Trade
Nepal's membership in WTO can be pressed from the point of view of the potentiaof agricultural production and trade. Under the Uruguay Round negotiations, WTOconsented to liberalize farm trade by making commitments to reduce borderincluding the assurance of discouraging trade distorting agricultural subsidies and gsupport. Accordingly, they agreed to reduce tariffs, substitute non-tariff bartariffication (calculating tariff equivalents of non-tariff import barriers, adding thtariff), and cut subsidies and government support
or a stablepolicy strategy with the combined objective of comparative advantage and
competitive edge.
rtant to theimporters
g revenueill help inports to be n to ensure id down by
greements, will facilitate imports. These provisions will guarantee that importers andport materials without delay and at the most competitive
developingade by the
d to benefitby the new erved with
ediatelystrong comparative advantage and whose market
es that haveng without
provisionsituation has been threatening Nepal's
trade positions. In this case, membership in WTO can helpclothing exporting countries
t avoid the
l promotionmembers
protection,overnment
riers underem to fixed
xpected to benefit from these provisions in two ways. First, it will gain increased market access opportunities for farmproducts. Second, it will be given an opportunity to enhance farm output by controllingimports because Nepal, as an LDC, is exempt from commitments to liberalize agriculture by reducing export subsidies and government support. Nepal will have a chance to expand itsIndia concentrated agricultural export (almost 80 % of all agricultural imports into Nepal arefrom India and over 85 % of Nepal's agro-exports are directed to India).
¶. Nepal is e
¶ Nepal's agricultural bound tariff is at 51 % to be reduced to 42 % by 2006
250
Nepalese traders can benefit under the changed global farm trade situation onlyvalue to their products by processing and good grading. Nonetheless, this willapplication of core scientific post-harvest and processing technology and practiNepal's agriculture sector currently lacks. It is, therefore, necessary for Nepalagricultural production by surmounting supply constraints in order to gain fullchanges brought about by new rules in the global agricultural trade. However, thtariff esproducts.
d. Services Sector Offer
As part of the next market access commitment, Nepal needs to open up its servicassuring non-discriminatory and national treatment to Foreign Service suppliers.offered a number of sectors including business services (including professional scomputers), financial services, telecommunications, health services, tourismtransport, educational services, and construction and engineering. It requires Ntransparent and to establish an "inquiry point" as an obligation. It is widely realiliberalizing the services sector, manufacturing sectors can benefit from efficiindustries that can provide the required inputs. Thus, Nepal is expected to benelower input cost in its manufacturing and agricultural industries as a result of liberservices sector. Even though this will pose stiff competition for domestic supplcreate healthy competition and result in higher quality and lower cost ser(transportation, telecommunications, financing, and professionalimportant to Nepalese
potential impact on domestic employment and the balance of payments situation.
e. Erosion of Preferences
One of the issues that concerns Nepal regarding the effect of tariff reduction aaccess commitment is the erosion of preferences. Nepal enjoys preferential maunder Generalized System of Preference (GSP) for almost two-thirds ofcommodities, and almost every major importing country grants GSP treatmenHowever, Nepal expects to benefit only marginally from a reduction in tariffs andbarriers mainly because of two reasons. First, Nepal is concerned about the lopreferences as MFN rates fall. Second, the net gain from GSP benefit to Nepal isbecause the industrialized nations are reluctant to give complete duty free accessproducts, including Nepalemost from the European Union's "Everything but Arms" (EBA) scheme. The EBAattractive to Nepal for two reasons (i) the scheme includes all products of interestby Nepal, and (ii) it provides the facility of derogation from the European Union's GSPof origin for Nepalese apparel. These provisions provide Nepal with many oppoincrease the export growth rate.
However, the GSP scheme has some limitations that Nepal should take into coThe GSP scheme is discretionary in application. It does not guarantee marpreference without some uncertaintyscheme often excludes sensitive items tha
if they add require theces, whichto enhancey from the e policy of
calation in developed countries may hinder Nepal's potential to export processed farm
e sector byNepal has
ervices and and travel,epal to be
zed that byent servicefit from aalizing the
iers, it willvice inputs
services), which aremanufacturers in becoming price, quality and delivery competitive.
However, Nepal needs to be cautious in wider liberalization of the services sector due to the
s a marketrket accessits export
t to Nepal.other tradess of tariffstill trivialto all LDC
se exports. Based on export volume and simplicity, Nepal benefitsscheme isfor export
rules rtunities to
nsideration.ket access
, as it is unbound and unilateral. For example, the GSP t are exported by Nepal, including textile items,
apparel and agricultural products. It is also understood that GSP is conditional, seeking socialor political compliance, such as respecting core labor standards and environmental labeling.Sometimes GSP eligibility is based on strict rules of origin criteria, such as with textiles andclothing. Unlike the bound MFN tariffs, the GSP scheme can be withdrawn unilaterallywithout tendering any justification.
f. Challenges of Countering Technical Barriers
251
Nepalese exports are frequently impeded by the increasing use of environmental protectionmeasurers, other social clauses and growing consumer sensitivity to foodinternational markets. As with many developing natithese measurers to be protectionist and discriminatory devices.
It is important to perceive that the WTO provisions allow member countries to denforce measures to protect human and plant health under the SPS Agreemenprovisions regarding the application of product quality labeling requirements undAgreement. Nepalese traders are unaccustomed to these measures, which aintended to reduce the risk of technica
the use of sanitary and technical regulations.
Nepal has enacted several laws with respect to the protection of human, animal anas well as laws on producthe prevailing laws need to be amended or new laws enacted
11. Benefits and Costs of Respecting Intellectual Property Rights
The TRIPs Agreement is one contentious issue with regard to Nepal's accession toeconomic arguments in favor of TRIPs for Nepal have been based upon the incrflows and transfer of technology and FDI. It is believed that TRIPs will lead tvolume of trade, particularly "high-technology" trade. Proponents also believe tcompliance with TRIPs, which will guarantee the protection of intellectual properencourage the transfer of technolo
substitution of trade for investment. However, Nepal needs to make substantial chlegislative and enforcement mechanism, including an institutional set-up with inand skilled manpower, which Nepal lacks.
Although Nepal's IP laws do not cover all areas of TRIPs, the existing legislatilaws on patent, design and trademark, and copyright protection. Nepal needs to delaws on IP related to geographical indications, layout/designs of integrated circuprotection of undisclosed information. This requires a huge financial and huminvestment. Upon Nepal's accession ttechnology and financial assistthe protection and enforcement of intellectual property rights (IPRs) and the pretheir abuse. The developed member countries can also provide support for the esor reinforcement of relevant domestic offices and agencies in addition to training pe
12. Defending Trade Interests
As mentioned elsewhere above, Nepal is not in a position to defend itself aunilateral action taken by its trading partners over its exports. Consequently, itborder regulations and has to comply with uncompromising buyers' requirem
safety inons, Nepalese exporters also consider
evelop andt, and the
er the TBTre actually
l barriers and facilitate international trade. They should understand that the SPS and TBT Agreements are there to defend their rights and interests in
d plant lifet standards in the interest of public health and security. However,
so that they are in conformitywith the SPS and TBT rules.
WTO. Theeased tradeo a higherhat Nepal'sty (IP), will
gy and foreign investment. It is also believed that the improvement in IP protection in international trade transactions could result in some
anges in itsfrastructure
on includesvelop otherits, and the
an resourceso WTO, the developed member countries can make
ance available for the preparation of domestic legislation onvention of
tablishmentrsonnel.
gainst anyfaces strictents, most
notably environmental and social clauses, that are imposed arbitrarily. This has posed aserious threat to the ability of Nepal to develop sectors that have a comparative advantage.There is also a possibility that Nepal will face discriminatory anti-dumping and safeguardmeasures as its exports to importing countries increase. When considering such a vulnerable situation, the only option open to Nepal is the internationally acceptable contingency measurewithin the WTO framework. Nepal can benefit from the WTO provisions on safeguards
252
intended to protect domestic industries against a surg
The measures that Nepal could apply, within the purview of WTO, are higquantitative restrictions, anti-dumping duties and countervailing duties. If Nepalface such actions in importing countries, the cases can be challenged by the DSBdefend trade interests. To be able to exercise its rights and defend itself against suNepal needs to make some preparations such as national legislation regarding safeguards, countervailing duties and anti-dumping measures in order to be able to face upractices. The other obligations may be the presentation of technical and legal argustrict compliance with procedures within specific and usually short timeGovernment may be required to assist the private sector in exercising trade rights by providing the compilation of infNe al can have access tom ber countries' exports
13. Social Repercussions
It is equally important for Nepal to assess membership in WTO with reference tand other sectors in the country. The social aspects of WTO membership are often oin Nepthe point of view of comparative advantage, Nepal can expect an increased flowinvestment and technology, more employment opportunities and greater geincome.
When acknowledging these benefits, it is also necessary to evaluate the direct aimplications for the social sector, particularly with respect to workers, deprivedrural development. WTO membership is intended to give security to goods andwell as investment traded at the international level. As international competitionimportant factor, the Nepalese economy will become capital-oriented, and laboproduction methods will be downgraded. It will thus be imperative to considnegative effects on employment opportunities. Equally important, consideratiogiven to the displacement of sma
country. Nepal is a rural-based economy that contributes significantlmajority of the population. With the country's adherence todanger of isolating the rural economy.
14. Macroeconomic Policy Reform and Stable Trade Relations
Since the beginning of the 1990s, Nepal has pursued trade and investment libHowever, the bilateral relationship with India has policy reform and trading environmental, as the former dominates the latter in ovolume (annex 4). In addition, Nepal's trade with third countries is based on armade in the bilateral transit agreement with India. Nepal has to give importance to th
e in imports that result in balance ofpayments difficulties and a threat or damage to those industries.
her tariffs,ese exportsin order toch actions,
nfair tradements, and
limits. The
ormation, data collection, and the preparation of arguments.p the WTO committees ensuring information on actions affecting
em and rights.
o the socialverlooked
al. It may be because the WTO system is directly related to the country's trade. From of foreign
neration of
nd indirectpeople andservices as
becomes anr-intensive
er possiblen must be
ll and indigenous raw material-based industries, affecting therural employment and income situation. As domestic market prices rise, the cost of living may become intolerable for many people, thus exacerbating the extent of poverty in the
y to the livelihood of the the WTO mechanism, there is a
eralization.a special bearing on Nepal's economic
verall traderangements
ebilateral trade relationship with India, vis-a-vis its commitment to the regional andmultilateral trade relationships. Thus, membership in WTO is expected to provide stabilityand predictability in Nepal's external trade regime.
It will ultimately help to divert exports and attract FDI. This is possible only through theWTO system, which combines reciprocal market access and negotiation based on the MFN
253
(most f
By joining the WTO, Nepal can now fully enjoy the rights that all members havWTO agreements, such as non-discthe WTO’s dispute settlement procedure.
Nepal accepted an average tariff binding of 42% in agricultural products and aroindustrial goods. The majority of the import items fall in the customs duty
goods schedule. A minimum tari
15. Legislative Plan of Action
i. Regulatory Reforms: Nepal has also committed to a timetable of legislatirequired to comply with WTO rules on trade-related domestic regulations, such as the
Sanitary and Phytosanitary Measures (SPS) and Technical Barriers to Trade (TBT)agreed to the following legislative plan of Actions
ii. Customs: Legislation on the valuation of imports for customs and tconforming to the requirements of the Agreement on Customs Valuation would be1 July 2004. Nepal would progressively implement the Agreement on Customs Vaccordance with the action plan and full implementation will start from
iii. Sanitary and Phytosanitary Measures: Nepal will implement fully the provisAgreement on Sanitary and Phytosanitary Measures by 1 January 2007.
iv. Technical Barriers to Trade: Nepal will progressively implement the AgreemTechnical Barriers to Trade in accordance with the Action Plan submittednegotiations and would implement fully the provisions of the Agreement onBarriers to Trade by 1 January 2007.
Nepal is preparing the new Industrial Property (Protection) Act, which would incthe substantive provisions of the TRIPS Agreement. It would cover all categories of industrial property and would incorporate the basis for an adequate enforcement and be promlater than 1 January 2006.
vi. Tariffs Bindings:an average tariff binding of 42 percent on agricultural products and around 24industrial goods. The majority of the import items fall in the customs duty rangpercent. The maximum tariff rate of 130 percent applied to cars and jeeps will bespecified in the goods schedule. A minimum tariff rate up to 5 percent will bedaily consumption items.
avored nation) clause and national treatment, both based on the non-discriminationprinciple.
e under therimination by other WTO members and the ability to use
und 24% inrange of 10–20%.
The maximum tariff rate of 130% applied to cars and jeeps will be reduced as specified in the ff rate up to 5% applied for daily consumption items.
ve reforms
Agreements on Trade-related Intellectual Property Rights (TRIPs), Customs Valuation, . Nepal has
axation purposesenacted byaluation in
1 January 2007.
ions of the
ent onduring theTechnical
v. Trade-Related Intellectual Property Rights (TRIPS): As a least-developed country, orporate all
ulgated no
During the course of multilateral trade negotiations, Nepal negotiatedpercent one of 10-20reduced as
applied on
accession
negotiations involved what the WTO refers to as “other duties and charges,”
which are simply trade taxes specified outside the scheduled of ordinary customs
duties. Nepal had no ODCs in 1998, when it submitted its Memorandum on the
Foreign Trade Regime. In the last two years HMGN introduced a number of new
vii. Other duties and Charges: One key issue during later stages of
254
import surcharges to finance domestic security and local development programs.
The emerging practice on WTO accession negotiations is on acceding countries
to bind ODCs at zero, i.e., to commit not to applying any ODCs at all. I
goods offer Nepal agreed to eliminate its ODCs over a period lasting fr
ten years, depending on the tariff line. The country also pledged not to
new ODCs. Replacing existing import surcharges with more broadly b
will increase economic welfare in the long
viii. Service: As a result of the negotiations, Nepal agreed broad comm
11 services sectors, such as business, communication, construction, e
environmental, and certain categories of financial services, health, tou
transport. Most of Nepal's commitments relate to liberalization in cro
supply of services (called Mode 1), consumption of services abroad (Mod
with some restrictions, on foreign commercial presence (Mode 3)
categories. Greater access to foreign providers of business services
Nepali firms reduce costs and identify new
liberalization commitments are carefully integrated with balance of
considerations and overall regulatory policy.
ix. Other Nnegotiations. These include Nepal's membership in preferential trade agreegovernment’s plans for safeguarding laws and competition policies, and possible min plurilateral agreements.
16. Findings
Nepal can benefit from the growing global integration of trade (both goods and seis reflected in the greater competition with lower cost and higher quality goods.
n its final
om two to
introduce
ased taxes
run. HMGN must now integrate this
WTO commitment into its broader fiscal policy.
itments in
ducation,
rism, and
ss-border
e 2) and,
in these
will help
foreign markets. Trade negotiators
must now work with domestic regulators to ensure that service trade
payments
egotiating Issues: Various other issues have emerged in the accessionments, theembership
rvices), that
WTO membership would not only enhance her effectiveness and efficiency in tradingcapacity but would also result in the expansion of trade, leading to a higher level of growth and enhancement of quality of life of the people in general. The "Accession Protocol" offers immense opportunities for taking Nepal's growth and development processes at a new heightand proves a valuable means to fight against poverty in the country through marketmechanism.
¶
·
¶ A recent WTO Secretariat report on members’ bound rates indicates that all new WTOmembers have bound ODCs t zero (TN/MA/S/4?Rev. 1, November 1, 2002).
255
Becoming a part of WTO Nepal has to develop her domestic capabilities to comexpa
Nepal can give the benefit of protection to domestic producers with tariffprotection to national service providers with domestic regulation andcommitments, safeguard infant and small business entities from permitted susafeguard from unilateral decisions of trading partners.In the mean time, Nepal's membership to WTO makes htrading opportunities whereby she could secure a share in the growth in itrade commensurate with the needs of her economic development.Nepal can ensure to raising the standards of living of her people by ensuring hof employment and a large and steady growing volume of real income andemand. Nepal can use WTO membership to improve the domestic trade poprocess, help exporters face foreign trade barriccess it enjoys in key
17. Lessons for the LDCs
No country, even developing and least developed, can escape from theglobalization should it aspire for her grois the avoidance of marginalization of these countries by joining the WTO. What iis to work hard to get benefits from the WTO regime being conscious to addressposed by globalization.
Membership in WTO is a challenge. One of the most challenging tasks in thiscreate a sense of national ownership so that the members can defend their trade aninterests within the parameters of the multilateral trading regime. The advantaLDCs from the rule-based system will depend upon business advocacy. The role of other stakeholders is equally important in creatingnational ownership in order to defend the national interest. The business sector sthe ability to identify, and take advantage of, trading opportunities by followinwithin the framework of the WTO obligations.
It is also important that they take the initiative in bringing to the notice of the Gtheir problems regarding exports, so that the Government can raise the issues atWTO forums in order to defend their interests. The Government, with private sectshould consider developing a mecha
this and they would benefit from the world trade rules. Therefore, it is necessary ta private sector-government partnership approach to capacity-building for negodefending national trade interests. This will only be possibleAchieving all this hinges on capacity-building and national ownership backavailability of financial and human resources.
pete in thended world market by exploring post accession implementation of its pledge in the world
body.
¶ flexibility,conditionalbsidies and
¶ er possible for expansion of her nternational
¶ igher level d effectivelicymaking
ers, and supplement the preferential marketa foreign markets. These benefits will help the country to better integrate itself into the world economy.
process ofwth and development. Only the question and concern
s importantthe threats
regard is tod economicges for the
their ability to understand WTO rules andthe sense ofhould haveg strategies
overnmentappropriateor support,
nism for accessing WTO mechanisms in cases of arbitrary actions and threats from trading partners. Many poor nations can barely afford to do
o formulatetiations and
through a national network. ed by the
There is a need for a common voice of LDCs as a group and the revival of integratedframework. Consultation among acceding LDCs to refrain from benchmark commitments is a must. There is a need to visualize the question of universality of the WTO.
The LDCs can also propose their interests collectively in emphasizing expeditious action forthe full and fair implementation of existing agreements and commitments. The negotiation strategy should also focus on broadening and strengthening S and D clauses in favor of the
256
developing countries and LDCs. Regional cooperation should foresee that thecountries would not modify and avoid arbitra
In view of the need for a collective response, LDCs (such as Nepal) shouldregional approach to address the capacity-building in WTO issues. One suchwould be a network at the regional level, embracing the SouCooperation (SAARC) countries, and among the regional groupings.
The network activities should give priority to information dissemination, humadevelopment and institutional enhancement. This network activity could be facdeveloping or strengthening the existing trade-related institutions within the counat the regional centers. Such institutions can play a crucial role inWTO sector action plan, such as textiles and clothing, agriculture and service traare of concern to all developing countries and LDC countries, including Nepal.
The aspiring LDCs should first off all analyze the challenges, threats and overalegal regime with respect to Accession Protocol. It should be understood that it wresponsibility of the civil societies and specially of the legal community to findvalid and pragmatic solution to the problem that would arise during the accessionwith due consideration of the ratification of WTO membership. Ther
me on ratification of the Accession Protocol. Challenges of research in mrade will have to be faced particularly by upgrading the research itself. Thoncentration from the point of view of international trade might be as follows:
Basic research in trade policy to support the shift from protectionism to libTherenexus between trade liberalization and poverty reduction.There is a dearth of scientific policy-oriented impact studies focusing on emerarrangements with due consideration of specific industries (garment industrieNepal).Most of the LDSc lack the technical and methodological skills in the field of scientific research. Most of the available studies are descriptive rather thanmean time, available trade data and format are confusing that misleads the findThere is a need for strong collaboration with regional and national trainingthrough networking, creation of international trade database and special forumto the trainers). Composition of team of negotiators should not be based on political patronage.To reinforce the communication and consultation process, a national networamong stakeholders, as this will help to build technical and operationalregardingexporters, importers, producers, business associations, trade experts and acadtrade journalists. O
developedrily anti-dumping or anti-subsidy measures to
the detrimental to the developing countries and LDCs.
focus on a mechanism
th Asian Association for Regional
n resourcesilitated by
tries and/orthe development of the
des, which
ll status ofas the jointout legallynegotiation
e should be clarity in thelegal regi ultilateralt e areas ofc
¶ eralization.is lack of theoretical breakthrough to support emerging trade arrangements and the
¶ ging trades in case of
¶quantitative. In the
ings.¶ institutions
s (training
¶¶ k is needed
capacitiesWTO and the multilateral trading regime. The network should include
emics, andther players such as labor unions, professional associations, social
issues-activists, consumer forums, NGOs, and INGOs will also have to be increasinglyinvolved in building awareness on WTO issues. The national network will be crucial to building synergies among networking members in order to develop a sense of national ownership.
¶ Above all, raise the production and productivity of the economy so that competitivecapacity could be raised.
257
Selected References
and LAN (2004), Legal Regime on Nepal's RatifiBased on the Discussion with the Lawyers, Kathmandu.
nomic and Social Commission for Asia and the Pacific (2004), Study oEconomic Impact and Social Costs of Adjustment to the WTO Membership of Nepal, ESCMAP, Bangkok
Mathema, Kanhaiya Bhakta (2003), WTO Opportunities and Challenpresented in Seminar Organized DAV College, Kathmandu
MoICS (2003), Nepal Trade and Competitiveness Study, Ministry oCommerce and Supply, Kathmandu
al Rastra Bank (2002), WTO and Nepal, NeShakya, Dev Bhakta (2004), "Agriculture within the WTO: Challenges
Opportunities in Nepal" in Sawtee, Kathmandu Shrestha, Prachanda Man (2003), Nepal's Accession to the WTO: C
Opportunities, Presentation made in a Discussion ProgrammRegime on Nepal's Ratification to the WTO, Kathmandu
Kathmandu Post (2003), EcoKathmandu
AAN cation to the WTO; A Report
Eco n Domestic
ges, Paper
f Industry,
Nep pal Rastra Bank, Kathmanduand
hallenges ande on Legal
The nomy:WTO Accession Talks Likely in April,
Trade Promotion Centre (2003), Nepal: Report on WTO prepared by the Trade Promotion Centre, Kathmandu.
World Bank (2003), World Trade Organization Working Party on the Accession of Nepal, http://www.wto.org
258
Appendix A
Possible Impact of WTO Membership on Poverty in Nepal
ccording to households. Using themputed as
ent live on less than two dollars per day- that is, no matter howone defines poverty, its incidence is high in Nepal, even when compared to other south
text of incomesion. It hasercent.
gions. It ist 44 percent of the rural households and 23 percent of the urban households
belong below the poverty line. Given that close to 88 percent of the total populationmpared to
ng against rty can be or fighting
than low income. It also reflects poorhealth, poor education, deprivation in knowledge and communication, inability to
the absence y .Fighting
ious to risehealth and
nformationtrade and
ansparent, predictability and
when goodortions anditments in
importanth a view to
otion of trade and promote the role of private sector.fs rate hased simple
competitiveness and competition. Additionalmeasures have been taken such as introduction of bonded warehouse, duty-drawbackscheme, initiation of the multi-model facility (dry port), export processing zones and privatization of public sectors.
Trade can be a strong tool for fighting against poverty in Nepal, specifically in followingways.
Poverty is deep and pervasive in Nepal, with wide disparity across regions. Athe 1995-1996 Nepal Living Standards Survey (NLSS), 42 percent of Nepaliare poor, using a nutrition based poverty line of US$ 75.91 per person per yearinternational dollar-a-day measure of poverty, the poverty incidence rate is co37 per cent, while 76 perc
Asian countries.
The tenth plan (2002-2007) has taken into consideration poverty in the conpoverty, status of human development indicators and condition of social excluset higher annual growth rate of 6.2 percent, which is currently only about 2.5 p
There is a wide variation in poverty incidence across various geographical reestimated tha
resides in rural areas of Nepal, poverty is much more severe in rural areas cothe urban areas.
Yet, there is neither a simple answer nor any universal blueprint for fightipoverty. Yet, poverty is no longer inevitable. Poverty can be fought. Povereduced. But fighting against poverty needs tools that are good enough fagainst it. Poverty has many faces. It is much more
exercise human and political rights, degradable environmental conditions andof dignity, confidence and self-respect. In short human deprivation is povertagainst all these deprivations mean fighting against poverty.
The accession protocol is conscious to all these human deprivations. It is conscincome level through trade, it is conscious to create environment conducive foreducational services, it has rightly acknowledged the importance of opening iand communication services and it has skillfully stroke balance betweenenvironment. The essences of the accession protocol are trrules of law, which are major pillars for good governance in the country. Conditions for enjoyments of human rights, political rights, and self-respect are created governance prevails in the country. Good governance also can stop market distgovernance can fight against poverty. One of the major premises of the commthe accession protocol is to help build good governance in the country.
The government has recognized the role of trade, investment and technology astools for fighting against poverty. Trade policy reform has been prioritized witcreate enabling environment for promIt has eliminated import licensing and quantitative restriction system. Tarifbeen significantly reduced and currently that is about 11 percent in unweightaverage. It has prioritized for trade sector
259
¶ ectors, such as textiles, can
¶ valueinadequateeffects foruse more
welcome effects through creation of
¶ traditional (such as spices, ea, herbal
medicines, and vegetables) can be promoted by increasing access to year-round
king into
service sector and ensuring strong intellectual property rights, It can be said that implementation of the commitments help growth, development and fight against poverty in Nepal.
By initiating growth in manufacturing and export shave potentially significant positive effects on the urban poor. The major impact of trade on the poor can come from switching to highcash crops from subsistence agriculture. A key constraint to that istransportation infrastructure. Growth of transport can lead to welfarethe poor through enabling farmers to switch to commercial crops andfertilizers transportation also has directemployment and income-generating opportunities.
To achieve agricultural growth and help the rural poor, transition fromsubsistence agriculture toward commercial crops
irrigation, inputs, technology, and most importantly, markets.
In short, Nepal's commitments to the Accession Protocol are devised taconsideration to address poverty through promoting manufacturing production,
260
Annexes
A Map to WTO¶¶ ished 1995¶¶ 98¶¶¶ 2000¶¶ 02¶ s on September 2002¶¶¶
Reportptember 2003 in the Fifth Ministerial meeting
of WTO held in Cancun, Mexico
regard topate moretiated theeducating
iness. Then activelyconcernedworkshop,
ental in preparing nt for the vernment,osition of
part from in the consultat ings by variousorg the FNCCI
has ca , organized consultation meetings. Some of the events organized by FNCCI are given below:
SN TITLE DATE PLACE
nnex 1: Nepal's RoadApplied for GATT 1989 Working Party establReapplied for WTO 1995MFTR submitted on July 19First WP Meeting on May 2000 Tariff/Service offer on July 2000 Bilateral consultations on SeptemberResponse to Queries on MFTR on October 01 Revised Tariff/Service Offer on May 20Second WP & Bilateral ConsultationResponse to Specific queries on February 2002 Revised/Consolidated Offer on April 2002 Fourth Working Party Meet August 2003 and adopted the draft Working Party
¶ WTO Membership Approved on Se
Annex 2: List of WTO Activities by FNCCI
The FNCCI has all along been involved in policy formulation withinternational trade. The FNCCI has been emphasizing on the need to particiclosely in the international trade negotiations. So as soon as Nepal iniprocess of joining the GATT and later the WTO, FNCCI took the task ofthe Nepali businesses about the WTO and its likely implications on busFNCCI established the WTO cell in the year 1999. This cell has beeinvolved in creating awareness amongst the business community,stakeholders and the people in general through various seminars,brainstorming sessions and the like. The cell has also been instrumthe private sector position and making the same available to the governmeWTO related negotiations. It has been working very closely with the goNGOs and development partners in developing a broad consensus on the pNepal in the international trade related issues.
A participating ive meet organizedstakeholders (government, NGO's, donors, private sector anizations)
rried out seminars, workshops, prepared position papers
1 Meeting on WTO to get feedback on the services- by MOICS and Nepal's accessionto WTO
2 Jan, 2002 Kathmandu
2 Meeting on WTO to get feedback on the services- by MOICS and Nepal's accessionto WTO
3 Jan, 2002
261
3 oes- by MOICS and Nepal's accession
Meeting on WTO to get feedback n theservicto WTO
6 Jan, 2002
4 NarayangarhNepal's Accession to WTO 2May, 2002 5 st May 1st BirgunjImplication on Nepalese Business Sector in
post WTO Accession Environment31June, 2002
6 6 iratnagar.Implication on Nepalese business sector in post WTO accession Environment
15-1 Aug2002
B
7 KathmanduNepal's accession to WTO: Present statusand challenges
2nd oct, 2002
8tion treaty (pct)
h2002
iratnagarWorkshop of advantages of joining patent co-opera
26t Nov. B
9 Market access in services: Interactionprogramme
1December2002
Kathmandu
1 Nepal's accession to WTO; present status and challenges
11 Dec.2002 K0 athmandu
1 Nepal's accession to WTO: interactionprogramme.
16Dec.2002 K1 athmandu
1 Nepalese trademark law and practice 20032 FNCCI13 siness se 9-10 February BhairahawaImplications on Nepalese bu ctor in
post WTO accession environment 200314 tor in 12th- 13th Feb. NepalgunjImplications on Nepalese business sec
post WTO accession environment 200315 Workshop on Business implications or the
Nepalese private sector of WTO-TBT March11, 2003 FNCCIf
agreement1 Implications on Nepalese business sector in
post WTO a11 may 26
ccession environment003 Kanchanpur
17 FNCCI+MOICS+ WTO JPROJECT 16TH JUNE2003
18 19TH JUNE2003
PROTECTION OF INTELLECTUALPROPERTY
19 n 10-11 july2003 KathmanduNational workshop on road to Cancu20
O compliance with TRIPs agreement
the report of the TRIPS repared by Australian
WTO.
15th August 2003
FNCCIThe kingdom of Nepal's accession to the WTOpinion of private sector was provided to the MOIS oncompliance matrix pexert under the Technical assistance of
2 Interaction program on Nepal's accessionto W
1TO
28 Aug 2003 Kathmandu
Cancun and Beyond 22 In-house session on WTO 16th
September2003
FNCCI
23 WTO Membership: impact on Nepalese SME'S
21-22DECEMBER2003
KTM
262
24 Opinion of private sector was given to MOICS on the competition act beingdrafted. AS the draft of the actfinalized yet.again if required.
Dece ber
is notSuch opinion will be given
m2003,january2004
25 Nepal's entry to the WTO and SAFTAchallenges ahead
31st,january2004
Biratnagar
2 Nepal's entry to the WTO and SAFTA challenges ahead
5th march206 04Pokhara
2 Interests of the LDCs in the WTO regime 10th march7 ,2004
Ktm
28 Brand protection as intellectual propertycross
24th marchcutting issues
,2004
FNCCI
2 International branding and marketingstrategy
7th y9 ma 2004 FNCCI
30 ustrial
ive. The
Jan-till date Inputs on the draft of the indproperty protection act are being given from private sector perspect act isbeing drafted.
31 Policy feedback on parallel import April 2004 32 Working on b April-Till daterand licensing Policy 33 Started working on branding Nepal
1 TO KathmanduSeminar on W September,1999
2 TO hulikhelSeminar on W 29thoctober,1999
D
3 14thnovember1999
NepalgunjSeminar on WTO
4 Seminar on WTO 26th July Bhairawaha5 Seminar on WTO August 2000 Biratnagar6 Booklet publication on "Introduction of
WTO"2002
Source: FNCCI (2004)
Annex 3: Share of manufactured goods in total exports by Nepal (1974/75 -2000/01)(Unit: NRs Million)
263
Ye Total E Manufactured goods
m
ar xportsclassified chiefly by
aterials1974/7 889.6 (10 28.5 0.0) 1 (3.16)1975/7 1185.8 (1 1046 00.0) .7 (8.83)1980/8 1608.7 (1 254.31 00.0) (15.81)1985/8 3078.2 (1 899.9 (6 00.0) 29.24)1990/9 7387.5 (1 4312.31 00.0) (58.37)1995/9 19881.1 ( 104456 100.0) 5.7 (52.59)1996/9 22636.5 ( 110287 100.0) .6 (48.72)1997/98 27513.5 ( 11637100.0) .1 (42.30)1998/9 35676.3 ( 135399 100.0) .6 (37.95)1999/2000 49822.7 (100.0) 15838.7 (31.79)2000/01 57244.7 (100.0) 18968.6 (33.14) Source: Nepal Rastra Bank (2002), WTO anNote: Figures in parenthesis are percentages.
nnex 3: An overview of the terms of accession
The working party report154 paragraphs out of them, 25 paragraphs are commitments paBroadly, the commitments are related to systemic commitmemarket access commitments.4Out of them 9 Paragraphs comprise introductory statements thaNepal's application, documents supplied by Nepal, workinformation and meetings, Nepal's approaches during thenegotiations, WParagraphs 10-21 provide a broad picture of economic policiesincluding monetary and fiscal policies, foreign exchange and payminvestment regime, state ownership and privatization, pricing policy and competition policy. Paragraphs 22-21 provide on framework for makingpolicies.Paragraphs 32-119 provide on plaices affecting trade in goods. Paragraphs 120-138 provideproperty rights. Paragraphs 139-143 provide on policies affecting trade in services. Paragraphs 144-151 provide on miscellaneous including publiinformation on trade, notification, infagreements, and technical assistance.
Specifically, paragraphs20,31,36,41,43,49,52,56,63,67,70,74,78,83,87,88,97,106,108,110
d Nepal, Nepal Rastra Bank, Kathmandu
A
on the accession of Nepal to the WTO comprisesragraphs.nts and
¶ t containg party
accessionTO members' responses and Working party's activities.
¶ of Nepalent,
¶ and enforcing
¶¶ on trade related aspects of intellectual
¶¶ cation and
ormation about bilateral trade
¶ Paragraphs 152-154 are concluding paragraphs.
,111,117,136,144 and 148 are the commitment paragraphs.
There are two schedules attached to the accession protocol.
It is based on the information provided by WTO Focal Point of MoICS/HMGN in a program on Legal Regime on Nepal's Ratification to the
264
WTO, organized by Law Associates Nepal and Action Aid Nepal on
First, Schedule of tariff commitment on goods, which comprisecommitment not to raise tariff on certain commodities in future aagreed ceiling line. About eighty percent of people of Nepal deagriculture therefore, considering the gravity of the imporagriculture in Nepal the average tariff rate is bound at 51 percedate of accession subject to bringing down to 42 percent in thtime at equal annual basis against our 10 percent applied tariffproducts. Flexibility's have been maintained on merchandise probyour economy when it is required to increase tariffs rates up to the bound level.
Second, schedule of specific commitments in services sectors; Nepal has conditionally agreed to open eleven seventy-five sub-sectors. The 11 service se
Business services¶ communication s¶ construction and re¶ distribution services;¶ educational services;¶ environmental services;¶ financial services;
¶ tourism and travel related services;recreational, cultural and
¶ transport services.
In brief, accession on goods follow:
n goods.Commitments
November 2003 in Katmandu.
s Nepal'sbove thepend on
tance ofnt on theree yearss in farmducts also
tariffs rates provide room for policy flexibility to address the need of
service sectors that cover about ctors are as followings.
¶ ;ervices;
lated engineering services;
¶ health related social services;
¶ sporting services; and
the terms of
Terms of accession oSN Heading 1. Pricing
)
control measures in a WTOrests
d for inpolicy(Para.20
to apply priceconsistent fashion taking into account the inteof exporting WTO Members as provideArticle 3 .9 of the GATT 1994.
2 inessCompetitionPolicy(Para.21)
To ensure fair competition in various busactivities in due course.
3 ortation
importationof goods (Para.36)
ommittedply laws and regulations relating to
exportation and importation in full conformity with WTO obligations, includingArticle1,viii.1(a),XI.1 and III of GATT1994.
Expand
From the date of accession Nepal has cto ap
4 Customtariffs(Para.37 and
¶ Nepal has made all tariffs lines bound ¶ The average applied tariffs rate is about 11
percent.
265
goods ¶ The average tariffs bound rate is 39the date of accession24 percent in three years time.
¶ The harmonized system of cclassification (HS system)is in vogue i
schedule)percent at
subject to lower down to
ommodityn Nepal.
5 Other tiescharge-
(para.40)
gradualtwo and ten
.DCs.
Fee of the
as ODCs..5-1.5 percent on farm products as ODCs.
duce new
duandODC
¶ Nepal has made commitment forelimination of ODCs betweenyears time from the date of accession
¶ for ten years time Nepal shall apply O¶ 1.5 percent as Local Development
value of imports as ODCs. ¶ 2.5 -11.5 percent on industrial goods¶ 2¶ Nepal has also committed not to intro
ODCs.6 charges for
rtprocessing at customs(Para42&43)
introduceor on adided for
rt processing at customs.¶ Nepal has made commitment for not exceeding
s import
impo¶ Nepal has reserved the right to
service charge either at flat ratesvalorem rates for the services provimpo
the current charge of 1 per cent alicense fee.
7 Quantitativerestrictions
ctions on.
ports and s, liquor
more than 60 percent of alcohol, and
domesticrelated to
¶ Nepal is not applying quantitative restriimports of goods
¶ Nepal has banned some goods both for imdomestic production, such as narcotic drugcontainingbeef and beef products.
¶ Nepal has also restricted to import andproduction of some goods that arenational security.
8 Licensingsystem(paras.48-49)
mport and e date of
duce, re-tions onsuch as
horizationlicensing requirements, and other
cannot be
tly automatic licensing system is relaxedtherefore submission of application for obtaining license is not required but letter of credits must be presented at customs.
¶ Nepal can control import for the sake of BOPconsistent with the Articles XIII and XVIII of GATT 1994.
¶ Nepal has practiced licensing system for iexport but has made commitments from thaccession to eliminate and not to introintroduce or apply quantitative restricimports or other non-tariff measureslicensing, quotas, bans, permits, prior autrequirements,restrictions having equivalent effects thatjustified under WTO.
¶ Curren
266
¶ Nepal has expressed that it would enainstruments codifying the substAgreement on Import Licensing Procedure
ct legalances of WTO
s.9 Custom
tion(aras.53-
56)
date ofment the
ry 2007.ions andould not
ncy withvaluation
ittee on tion and seek technical assistance.
ValuaP
¶ Gradually and progressively form theaccession Nepal would fully impleAgreement on custom valuation by 1 Janua
¶ Any changes made in the laws, regulatpractices during the transitional period wresult in a lesser degree of consisteprovisions of the agreement on customthan existed on the date of accession.
¶ Nepal would participate in the commcustoms valua
10. Applicatio
taxes(paras.57,58,62,63)
ely
A number of services are exempted from the
is applied to certain other services at a Zero
f cottage
ds with aestically
not applied excise tax to "chhyang" ait is not
if it iscise tax
xes in athe date
sion in conformity with articles I&III of
n of internal
¶ Nepal continues non-discriminatory taxes, namVAT and excise Tax.
¶ VAT has replaced the sales tax. ¶
application of VAT. ¶ VAT
rate.¶ Nepal continues tax exemptions in favour o
industries.¶ Nepal levies excise tax to domestic goo
view to provide same treatment to domproduced goods and imported goods.
¶ Nepal haslocally fermented products like beer ascommercially produced and exported butcommercially produced and exported exshall be applied.
¶ Nepal has committed to apply internal tanon - discriminatory manner fromaccesGATT 1994.
11. Rules of(P
66,
the WTOement on Rules of Origin upon the date of
accession by introducing a WTO consistent regime on originaras.67)
Nepal has made commitment to implementagre
rules of origin. 12. Other
customsNepal has confirmed that it does not require any kind of certification of the customs documentation byofficials.formaliti
es(para.68)
consular
13. Pre-shipmentinspection(paras.69,70)
¶ Currently Nepal does not have a system of pre-shipment inspection.
¶ If in future, Nepal engaged in pre-shipment enterprise it would build a system in conformitywith WTO agreement on pre-shipment Inspection and other related Agreement.
267
¶ Any pre-shipment inspection regime would be temporary.
14.
mes(Para71,72)
has no anti-dumping or
onsistent
itment to sidies and
feguard,sures onlylaws in
agreementsle VI ofeasures.
Anti-dumping,countervailingduties and safeguardregi s.
¶ Currently Nepalcountervailing duty regime.
¶ Nepal is interested to introduce a WTO clegal regime on anti-dumping and countervailing measures.
¶ Nepal has also expressed its commimplement the WTO Agreement on SubCountervailing Measures by May 2004.
¶ Nepal has confirmed that it would apply saanti-dumping or countervailing duty meaafter notifying and implementingconformity with the provisions of WTOon Safeguards, Implementation of ArticGATT and subsidies and countervailing M
15. Trade restriction(Paras.73,74)
nact law estrictions
nt. the
sistency94 and
¶ Nepal has expressed its interest to econsistent to the WTO authorizing trade rfor trade remedies and for balance of payme
¶ Nepal has committed to apply section 3 ofexport Import (control) Act of 1957 in conwith article XVIII of GATT 19understanding on Balance of payment.
16 Export regulation(paras.75,78)
egistrationort and import are same.
to levyvalorem
ent of
ee is to to ensureversion to
ntries.
¶ Nepal has expressed that the rrequirements for exp
¶ Nepal has expressed that it will continueexport services fee of 0.5 per cent adand bring it into conformity with the requiremArticle VIII of GATT 1994.
¶ The rationale of imposing export fdiscourage environmental degradation,food security and to discourage trade dineighboring cou
19. Export restrictions(paras.79,80,83)
ue exportes such as d to fulfilMEAs to
rohibitedsing from
¶ Export restriction on raw hides, skins and raw wool is temporarily applied and Nepal would lift the ban in appropriate time.
¶ Nepal would review the export ban on importedraw materials, parts and capital goods in the light of Article III and XI of GATT 1994.
¶ Nepal has confirmed that it would continrestrictions on exhaustible natural resourclogs, timber The restriction is also imposethe obligations arising from the differentwhich Nepal is a party.
¶ Nepal has also expressed that it would not allow export of those flora and fauna that are pfor export respecting the obligations arithe CITES.
268
¶ Nepal has committed to conform thlicensing requirements and other exporrequirements in l
e exportt control
ine with Articles XI, XVII, XX and XXI of GATT 1994.
20. Export moti
(para.84.)
necessarysuch as
her andsweaters,
raditional handicraftstries and
such as computer software..
proon
Nepal has expressed that it would undertakesteps to promote export on industrial goodswoolen carpets, readymade garments, leatleather products, cotton products, woolenwoolen mufflers, etc. and tproducts, products of Cottage and Small induother products
21. Subsidies
ncentives
terms of duty and under thect, 1992.
easuresthem.
tify theecessary
s subsidyh WTO
¶ Nepal did not provide direct payment of ito any industry.
¶ Nepal provides certain exemptions inincome tax, sales tax, excise tax, excisecustoms duties to the industries qualifyingconditions stated in Industrial Enterprise A
¶ Nepal has committed to identify subsidy mincompatible with the WTO and eliminate
¶ Upon the entry into force of the Nepal's Accession Protocol Nepal has committed to noCommittee on Subsides about all the ninformation on subsides.
¶ Nepal has committed to administer itprogrammes in full conformity witagreement on Subsidies and Countervailing Measures.
22 Technic
lation and standards (paras 96, 97)
ent theice by 1
he Nepaltrology in June 2003.
to fullyement.
s confirmed to provide additional ication of
ady inbject to
transitiongree of
consistency to the TBT. ¶ Nepal would notify the existing technical
regulations and standards to the Committee on TBT.
¶ Nepal would review the existing regulation and standards for conformity with the WTO
alregu
¶ Nepal has confirmed that it will fully implemTBT Agreement and Code of Good practJanuary 2007.
¶ Nepal has established an enquiry point in tBureau of Standard and Me
¶ Nepal has asked technical assistanceimplement the obligations of the TBT Agre
¶ Nepal hatreatment and MFN treatment in the appltechnical regulations and standards.
¶ Nepal has agreed that measures alreconformity with TBT would not be sutransition period.
¶ Any changes in law and policies duringperiod would not result in a lesser de
269
requirements.23. Health
gsara.
99)
s on then of the
elf-relianty of sale
drugs at cover the
by the
sponsibility ofellectual
cals.
dru(p
¶ Nepal has confirmed that it emphasizemaintenance, safeguarding and promotiohealth of people by making the country sin drug production; ensuring the availabilitof effective, standard and qualityaffordable price in quantities sufficient toneeds of the country.
¶ Nepal requires medicines imported into the country complying with the standards laid downMinistry of Health.
¶ Nepal has acknowledged the reDepartment of Industries to enforce the intproperty rights in respects of pharmaceuti
24. SPS (para. 02105, 106)
ernationalonize and
tionalstandards
and has differenteasures.technical
.oint by 1
ully implement the SPS Agreement
s and regulationsly amend
s.S would
e subject to transition period.that anyot result
rovisionse date of
adoptedoped in
rmity with the provisions of the SPS
¶ Nepal has also committed to notify existing SPSmeasures to the committee on Sanitary and Phytosanitary Measures.
¶ Nepal has expressed its interest for technical assistance.
¶ Nepal would fully participate in the work of the
, ¶ Nepal is a party to different intinstruments and has different laws to harmimplement the phytosanitary measures.
¶ Nepal is also a member of different internaorganizations and follows internationalincluding Codex Alimentariuslaws to adopt and implement the sanitary m
¶ Nepal has also informed about lack ofexpertise to implement the SPS agreement
¶ MoA would establish an SPS enquiry pJanuary 2004. It has been established.
¶ Nepal would fby 31 December 2006.
¶ Nepal has confirmed to review lawrelating to SPS measures and accordingnecessary legislation.
¶ Nepal has committed to apply existing measures ina non-discriminatory manner to all import
¶ Measures already in conformity with SPnot b
¶ Nepal has made commitment to ensurechanges during transitional period would nin a lesser degree of consistency with the pof the SPS Agreement than existed on thaccession.
¶ Technical regulations and other measuresduring this period would be develconfoagreements.
270
SPS Committee.25. TRIMs (para.
108)at there is no inconsistent
xisting TRIMs measures in
duce anys inconsistent measures from the date of
¶ Nepal has confirmed thmeasure in Nepal to the TRIMs.
¶ Nepal would notify eNepal to Committee to TRIMs.
¶ Nepal has also committed for not to introTRIMaccession.
26. State trading nd provideance withtanding.
ATT and
¶ Nepal has made commitments to notify ainformation about state treading in accordArticle XVII of GATT 199 and its Unders
¶ Nepal would apply it’s law's and regulations in fully conformity with Article XVIII of Gits Understanding.
27. Free zones
¶ Nepal informed that currently there werezones in Nepal and if Nepal establishes frNe
no freeee zones
pal would conform the rules of the WTO.28. Government
procurement(paras. 112,
applyingestic legal
pal doesincluding
113)
¶ Nepal has informed that Nepal isgovernment procurement rules under domregime.
¶ Nepal has also informed that at present Nenot intend to join Plurilateral AgreementsGovernment Procurement.
29. Textiles (par117)
bout therictions applied by WTO Members
e Textile
the base
a. ¶ Nepal has committed to notify aquantitative restto Nepal's textiles and clothing to thMonitoring Body.
¶ Nepal has accepted the date of accession aslevels for growth rates.
30. Transparencypublication(paras. 20, 31, 144)
s subjectts official
nd would continue to do so after accession.
a has agreed to fulfil the obligation of tions, judicial decisions
le X
/ ¶ Nepal has agreed to publish the list of goodto State control and any changes in iGazette a
¶ Neppublication of laws, regulaand administrative rulings to comply with Articof GATT 1994.
Terms of accession on farm products
SN. Heading Commitments1. lture
DevelopmentFee (para. 40)
griculturedevelopment fee as ODC over a period of 10 years with a commitment for elimination between 2 to 10 years period.
Agricu Nepal is permitted to levy 2.5-14.5 per cent a
2. Export promotion(para. 84)
Nepal has expressed that it would undertake necessarysteps to promote export on agriculture commoditiessuch as lentils, Niger seeds, tea and coffee, ginger,
271
cardamom, vegetable seeds, flower , silk and silk products, medicinal herbs, fruits, etc.
3. jorilities
para. 85)
sales tax, excise duty
rebate for
riod of 10
Some matax fac (
¶ Nepal continues to exemptand income tax to Cottage industries.
¶ Nepal continues to provide 50 per centseven years to agro based industries and storage of fruits and vegetables.
¶ Fruit-based fruit processing industries of fixed assets up to NRs. 2.5 exemption for a peyears.
4. Plant and
importation
lant, plantrequired
g the plant quarantine standards laid down byment of
animal
(para. 92)
¶ Nepal has confirmed that importation of pproducts, animals and animal products aremeetinthe standards laid down by DepartAgriculture.
5. Export and
ucts)
i-ucts are
y DFTQCimport of food prod(para. 98
¶ Nepal has confirmed that both processed, semprocessed or unprocessed food prodrequired meeting the food standards set bfor export and import.
6. Import and
ons
informed that few agricultural productsreventingexport
restricti
¶ Nepal hasare restricted for import and export for pdiseases and protect health and environment and on religious grounds.
7. Pesticideregulation
)
import of sticide is regulated with a view to protect the
.pal has also confirmed that it can ban or restrict
rdous to
(para 101
§ Nepal has confirmed that export andpeenvironment and ensure sanitary measures
§ Neany PIC pesticides that are potentially hazahealth.
8. Agriculturalpolicy (para. 14)
importing
o specificgricultural
istance to grams in
relatingarketing
griculturalf through
tion, naturald other
rt for small farmers, urea transport subsidies for remote areas, subsidies fortea promotion and dairy development grants.
Á The base total aggregate measures of supports (AMS) are below the de minimis 10 percentages.
Á Nepal has informed that it is a net food -country.
Á Nepal has also informed that there is nincentive for that export of acommodities.
Á Nepal has informed that it provides assagricultural producers by government proareas such as support for general researchto different products , extension services, mand promotion activities including amarker information, natural disaster reliecrop subsidies, loans and for irrigadisaster relief through crop subsidies aninfrastructure suppo
9. Agricultural subsidy(para.
Á Nepal has informed that it does not have agricultural export subsidies.
272
14)
Terms of accession of service sectors
S Heading Á CommitmentsN1. Pricing policy
(para. 20)ply pricet fashion
le VIII of
Á Nepal has made commitment to apcontrol measures in a WTO consistentaking into account the interests of exporting WTO Members as provided for in Articthe GATS 1994.
2 Competitionpolicy (para
Á To ensure fair competition in variousactivities in due course.
.. 21)
business
3. Internal tax(para57, 58, 59
services,ract taxes.from the
at a zero
es)
Á VAT has replaced all the taxes onincluding entertainment, hotel and cont
Á A number of services are exemptedapplication of VAT.
Á VAT is applied to certain other servicesrate.
4 Pre-shipmentinservices(para. 70)
Á Nepal has made its interest that in futumay engage in the services of a preinspection enterprise.
.spection
re Nepalshipment
5 Standards (para.90)
Á Nepal continues to determine standrelation to services by Nepal CoStandards.
. ards inuncil of
6. State trading(para. 110)
aws andwith full
y with Article VII of the GATS.
Á Nepal committed to apply its lregulations in relation to state tradingconformit
7 Transparency(
Á Nepal has agreed to publish the list ofsubject to State control and any changeofficial Gazette and would continueafter accession.
.para. 110)
servicess in its
to do so
8. Publication par . gation ofns, judicial
comply
( a31)
Á Nepal has agreed to fulfil the oblipublication of laws, regulatiodecisions and administrative rulings towith the Article VI of GATS.
9. Legal regulatorframework(para. 137)
Á Nepal has expressed that the legal framstill under development and a number ofsector need to be regulated by necessary
ework is serviceslaws.
10 Service sectorsopened
Á On a conditional basis Nepal has oservice sectors and about 75 sub-sector
. pened 11s.
11. Membership ofprofessionala ( a139)
Á Nepal has confirmed that certain professional require professional licenses and
are applied in non-discriminatory basis.ssociations par .
servicesmembership that are open and transparency and
12. Enquiry point Á Nepal has committed to establish enquiry point by June 2003 and that has been established.
Á Terms of accession on TRIPsSN Heading Á Commitments1. Application Á Nepal has committed to enact Industrial property
273
of TRIPs )
Act covering Section 2 through 7 of Part II of the TRIPs.
Á Nepal has com2002 as per necessity.
(para. 136mitted to amend Copyright Act,
3. olicy (para119)
l property policy is under
y.an authority to
P . Á The industriaformulation by MoICS
Á DoI shall implement the industrial policÁ The copy right Registrar is
implement copyright policy. 4. Membership l is a member of WIPO since 1997.
since 22.
ention by
onventionRight by
also lookions e.g.
WIPOmance
nationalf joining
Á NepaÁ Nepal is a member of Paris convention
June 2001Á Nepal is committed to join Berne Conv
December 2005. Á Nepal has committed to join Rome C
and Treaty on Intellectual propertyDecember 2006.
Á Nepal has also expressed that it wouldat other WIPO and IP related conventGeneva Phonograms Convention,Copyright Treaty and the WIPO Perforand Phonograms Treaty in terms ofinterest and explore the possibility othem in the future, as appropriate.
5 U Á Nepal has expressed that it would aUPOV 1991 in termexplore the possibility of joining inappropriate.
. POV lso looks of national interest and
future as
6.discriminatorytreatment(paras.121,122)
l
3 of the iminatory
mmittedtreatment
ial property.t to
all and osed to
the discounts were not .
Non- Á Nepal has committed to provide nationatreatment and MFN treatment.
Á Nepal has committed to amend section 1copyright act for ensuring non-discrtreatment.
Á Upon the date of accession Nepal has coto provide non discriminatoryregarding fees regarding industr
Á Nepal has also reserved its right to discounindividual applicants, or even smmedium-sized enterprises as oppcorporations, so long as based on the nationality of the applicants
7 Technicalassistance(para.123,134,135)
lish copyformation centre if technical assistance
for full implementation of TRIPs.
Á Nepal has expressed its interest to estabright in
8. Flexibilities(Para.127)
¶ Nepal has expressed its willingness to incorporate flexibility in its legislation providedby Doha Declaration on TRIPs Agreement and public Health.
274
9s
nt varietyprotection by December2005
Plantvarietie(para.128)
¶ Nepal has committed to provide pla
10. Enforcement(ras.131-
135)
rovide enforcement
nce forincludingwyers for
pa¶ Nepal has committed to p
mechanism in conformity with TRIPs ¶ Nepal has sought technical assista
Providing training to the personnelcustoms officials, police, judges and laeffective enforcement by 2004.
11. Informationcentre
establish trademarks,- designs
expressed its interest to establishechnical
¶ Nepal has committed toIndustrial Design, Patent and layoutinformation center by 1July 2005.
¶ Nepal hascopyright information centre if tassistance provide.
12. tionmeasures(para.133)
l.
¶ TRIPs-consistent measures already in placewould not be subject to transition.
Transi al ¶ Nepal has committed to provide nationatreatment from the date of accession
Leg itmenSN Heading Time line
islative comm tsCommitments
1 Enactmentlaws (Para.28)
en anact
es of
aany
lationsthe
entsd not result in a lesser
y withelevant
thante of
s with these
llowed
2003-2006of ¶ Nepal Has undertakCommitment to edifferent 41 pieclegislation.
¶ Nepal has undertakencommitment thatchanges in laws, reguand practices duringtransitional arrangemwouldegree of consistencthe provision of the rWTO Agreementsexisted on the daaccession.
¶ The scope of application of existing inconsistencieWTO provisions inareas would not be ato increase.
2. Review ofadministrativedecisionmaking system(Para30&31)
Nepal has expressed that it would review the legislation on appeal against the decisionsmade y administrative agenciesto ensure that there would be and appropriate system either
Upon the date of accession.
275
throught enactmentamendlegislation.
orment of appropriate
3. etition(Para.21)
went with WTO
agreements.
¶ Prepare Bill byNovember
03tment
Comp To frame a competition Laconsist
20¶ Enac
by July 2004 4. Import licens
(Para.48)at itments
substances of
By, December 2003
ing Nepal has expressed thwould enact legal instrucodifying theWTO Agreement on Importlicensing procedures.
5. Customvaluation(Para.50)
t itthe
ave tod in current
fully
by 1 January 2004
Nepal has expressed thawould examinemodifications that would hbe introducelegislation and practices toimplement the WTO custom valuation Agreement.
6. istentregime on rules of origin.
by December 2003
Rules oforigin
Introduce a WTO conslegal
7 Anti-dumpingand
gmeas
Nepal shall enact a law o -dumping and countervMeas
by.
countervailinures
n antiailing
ures.
July 2004
8. Subsidies and To develop a legal regime on by May 2004 countervailing subsidies and countervailing
Measures. Measure
s9.
them into full compliance withon
By 31 December 2005
TBT To amend existing laws to bring
the WTO AgreementTechnical Barriers to Trade.
10. SPS Measure
ble By December 2005
s
Make existing laws compatiwith SPS Agreement.
11. TRIMs Nepal would develop legal regulatory Mechcompatible withAgreement on trade
by May 2004 anismWTO
relatedinvestment measures
12. TRIPs ¶ Nepal has committed to prepare industrial propertyact covering all categories of industrial property rights section2 through 7 of part II
by December 2005
276
of the TRIPs. ¶ Nepal has committe
amend the2002 as necessary.
d tocopyright act
13. plant ety
d to preparet.
by December vari
Nepal has committeplant variety protection ac 2005
14. GATS itted to amenddifferent laws.
by February 2004.
Nepal has command enact
Timaccomplish
Commitments relating to adjudication.SN Heading Commitments e line to
thecommitments.
1. Review oftive
makingsystem(Para.30)
at ittion on
ionses
e anpriate system either
Time line has not been set. administradecision
Nepal has expressed thwould review the legislaappeal against the decismade by administrative agencito ensure that there would bapprothrough enactment or amendment of appropriate legislation.
2 Review ofactions(Para.31)
itignateor the
of all
ws,cisions
Upon the date of accession.
Nepal has expressed thatwould establish or destribunals or procedures fprompt reviewadministrative actions relating to the implementation of laregulations, judicial deand administrative rulings.
3. Administrativetribunal endent
ibunal to review ustoms
tomsdecision of the
to the revenue tribunal.
by 31 December 2004 Nepal has made commitment to establish an indepadministrative trthe decisions of the cauthority regarding cusvaluation and thetribunal will be subject to appeal
4. TRIPs Nepal has committed to ensureenforcement mechanism inconformity with TRIPs.
by December 2005
Source: Trade Promotion Centre (2004), Study on Domestic Economic Impact and Social Costs and Adjustment to the WTO Membership of Nepal,Kathmandu
277
n trade of Nepal (1970/71 - 2000/01)NRs
Description Exports B)
Ind hercountri
Imports(CI
India Other countries
Annex 4: Foreig(Unit: million)
(FOia Ot
es F)1970/71 400.6
(100395.2(98.7)
.10.0)
16.888.2).0)
5.4(1.3)
699(10
6(
82.3(11.8)
1975/7 118(100
8 .7(75.9)
1.70.0)
227.161.9)
6 5.8.0)
93 292.1(24.6)
198(10
1(
754.6(38.1)
1980/8 160(100
992.4(61.7)
616.3 8.20.0)
179.249.2)
1 8.7.0) (38.3)
442(10
2(
2249.0(50.8)
1985/8 307(100
1241.1(40.3)
1836.9(59.7)
1.20.0)
970.942.5)
6 8.0.0)
934(10
3(
5370.3(57.5)
1990/9 7387(10
1552.2(21.0)
58(7
27.5(100.0)
323.11 .50.0)
35.39.0)
232 7(31.5)
15903.4(68.5)
1995/96 19881.1 3 2.5 1 5 7 54.532.8)(100.0)
68(18.5)
6198.(81.5)
44(100.0)
24398.6(
50055.9(67.2)
2(52.3) (100.0)
46662.3(41.2)
667340.0(58.8)
000/01 5744.7(100.0)
2730.4(477)
29940.6 113386.3
Source: Nepal Rastra Bank and the Federation of Nepalese Chambers ofNote: Figures in p enthesis are percentage
ties to enue(Unit: NRs million) Yea Total tax revenue Revenue from
t
Commerce and Industry.ar s.
Annex 5. Contribution of customs du total tax rev
rariffs
Share of tariffrevenue in tax revenue (%)
198 3,15 1,065.15 0.80 33.801990 7,28 24.1 ,684.9 36.86199 19,6 7,5 60.0 017.9 35.70199 21,6 7,6 68.0 327.4 33.821997 24,424.1 8,309.1 34.021998 25,926.6 8,499.9 32.781999 28,753.0 9,517.5 33.102000 33,152.5 10,813.3 32.62 2001 38,865.0 12,552.1 32.30 Source: Nepal Rastra Bank.(2002), WTO and Nepal, Nepal Rastra Bank, Kathmandu
278
VIETNAM ON THE ROAD TO WTO:
First D
January 2005
Executive Summary
As a developing country in transition, Vietnam has been implementingreform over the past two decades to shift to market-based economy.important objectives for the country are poverty reduction throughdevelopment. WTO membership is a means for the country to achiobjectives. In the WTO accession process, the country's priorities are i)export market, which is essential for Vietnam's exports and thus economicattraction of FDI, which brings in the needed and scarce capital, technoknow-how for the benefit of the hodomestic institutional reform, to enhance efficiency and facilitate developmpriorities were set by the Communist Party and the government, and were rofficial documents over the past decade.
To prepare for the WTO accession process, the governmend took many stepof institutional building, policy coordination, consultation with business slegal reform. In terms of institutional preparation, the delegation for WTO nwas set up to help the government with preparation, advice, and supponegotiation process. The National Committee for Economic Cooperationministerial body that plays the coordinating role in the whole economic iprocess, including AFTA, Bilateral Trade Agreement with the United SWTO accession processes. Training of human resources were alsoextensively in the government agencies involved. In terms of policy coordigovernment starts steps to mainstream the WTO accession efforts intoagendas of domestic reform, poverty reduction, 5-year planning, and sociodevelopment strategy, to make sure all of them are consistent and supportiothers. Consultation efforts with the business communChamber of Commerce and Industry to receive feedback on the accessionthe government. In terms of legal reform, WTO-related legal reform has bimportant part of the National Assembly's legislative agenda. During the 2period, about 40 legal documents, including laws and ordinances, have beenamended with elements related to conformity with WTO rules.
As a poor and developing country, Vietnam faces a lot of challengnegotiation process as well as in implementation of its commitments. Nchallenges can range from WTO-plus concessions asked by member cocoordination among the key agencies involved in negotiation. Som
AN ACCEDING COUNTRY’S EXPERIENCE
raft
by Dang Nhu Van, Phan Chi Thanh, Le Kim Sa
economicThe mosteconomiceve theseaccess to
growth; ii)logy, and
st country's development; and iii) opportunity for ent. These eflected in
s in termsector, and egotiationrt to the
, an inter-ntegrationtates, andconductednation, theother big
-economicve to each
ity were done by the Vietnam policy ofecome an 001-2004passed or
es in theegotiationuntries toe of the
concessions, if accepted, would threat hamper Vietnam's development. Coordination among government agencies, and between the government and the business community also requires a lot of resources, which are always a constraint for Vietnam. And constraints of resources, human included, are the problem of Vietnam'spartner countries as well, not all of them are always ready in negotiation. The fact that Vietnam is classified as non-market economy put the country in disadvantaged
279
position in the past and potential dumping case investigation. Throughout thshortage of human capacity is always a big challenge for the country.
In implementation, an important challenge is how to combine the domeswith WTO accession process. Legal reform is another big task, with legal reamendment and new promulgation, which takes quite a lot of resourclegislative and executive branch. Coordination among key agencies conWTO implementation is another daunting task. It is not always easy tobetween the national and the sectoral interests. For the business sector, theis how to gain foreign market knowledge and be prepared for the new opbrought by the WTO membership. Export market opportunities will not maunless Vietnamese exporters are competitive and strong enough to gain a fthose markets. Firms also have to be familiarized with the rules of thinternational business to survive and compete. And finally, it is the governmtake care of the losers in trade liberalvulnerable groups should be protected for social equity and stability purpoare supportive to growth and development.
In the whole WTO accession and economic integration process, Vietnam rlot of technical assistance from both multilateral and bilateral donors. Thismainly concentrates on capasupport the negotiation and implementation process. More assistancediverted to the business sector as well, to raise the awareness and help thefor new competitive environment.
Based on Vietnam's WTO acession process, a number of lessons can beother developing counries. First, the country or its leaders should be cleaoverall development objectives, and WTO accessionachieve those objectives. Anything the countries does in terms of prepasupport to the negotiation and implementation afterward should be deeplyby its development objectives, to make sure the whole process is consistedevelopment course and WTO process are mutually supportive.
Second, for a developing countries in transitions with many different biconducted at the same time, including domestic institutional reformreduction, and international integration, a top-down approach in decisionmaking is necesinstead of contradict and result in waste of resources and efficiency loss. Tan easy job, as sectoral interests, represented by individual ministries or agnot always the same as the national interests. Therefore, a strong acommitted top political leadership is essential to maintain the national interin all action plans.
Third, efforts are neededcommunity to inform it about where the country is and will be heading inglobalized world economy. The strongest message to businesses would be th
e process,
tic reformviews fores of thecerned inreconcilechallenge
portunitiesterialized,oothold ine game in
ent job to ization and globalization. The disadvantaged and
ses, which
eceived aassistance
city building for government agencies and officials, to should bereadiness
drawn forr about its
could serve as a means toration andmotivatednt and the
g agendas, poverty
and policysary to make sure all of those are consistent and mutually supportive,
his is notencies, arend highlyests thrive
from the government to send a message to the business the more
e one thatstrikes their own interests and incentivizes their involvement for their own good and that of the nation as the whole. General dissemination and education for the public and businesses without specific motivation would not attract much attention or beeffective in raising awareness.
And last but not least, technical assistance is needed from both multilateral andbilateral sources. Multilateral organizations are in a good position to help the acceding
280
country and the people involved with capacity, knowledge, and expertiseaccession process, so that they can make informed decision in the negotimplementation process for the best benefit to the country. Bilateral suppuseful in enhancing technical capacity for the institutions and people convarious technical and legal aspects of WTO rules, its agreements, and fleapplication. Impact assessment is another important area that technicalfrom any source will be helpful. This would be best conducted by research inor think-tank to inform the government in the decision making proassessment can be done independently by the academics or by ordgovernment to address a specific need in policy making. In any case, therea mechanism of information collection and provision from government depathe research community or any
about theiation andort can becerned inxibility inassistancestitutions
cess. Theer of theneed to bertments to
information user, to facilitate research. Therefore,technical assistance for information publicity can be very helpful to research thatsupport government decision making.
281
Introduction
Vietnam is a developing country in transition that conducts economic andreform at the same time with WTO preparation. In this capacity, its expeacceding country could be useful as reference for other developing counpaper tries to map out Vietnam's WTO process, the steps it takes, the challfaces, and the technical assistance received throughout the process. The papstructured in two parts: Part I on Vietnam's experience in WTO accession, aon lessons for other developing countries. Part I will cover major issues apriorities in WTO accessio
I. Vietnam's experience in WTO accession
1. National priorities in WTO accession
International integration was identified as a means for the country’s deveVietnam resumed the relation with the international financial commthe US trade embargo was lifted in 1994. The policy choice of internationalintegration is found in various documents of the government, the Comand the National Assembly. In the political system of Vietnam, any imdecision, including the one to apply for WTO membership, was made on abasis, with consensus obtained among the key institutions. A milestone in pstatement was set in 2001 by the Communist Party's Resolution on internateconomic integration (Vietnam's Communist Party, 2001). After this imdocument was issuedby specific actions, such as integration action plan, consolidation of sinstitutions, training of human resources, implementation of bilateral and mcommitments that pave the way to WTO accession, WTOyear planning cycle, etc.
WTO accession has been considered by political leaders of Vietnam as thepriority in recent years, after the start of the Doha round, China's WTO membership,and the conclusion of the Vietnam-US Bilateral Trade Agreement.
As a poor developing country in transition, Vietnam made a strong commboosting economic growth and poverty reduction. This commthe country's Comprehensive Poverty Reduction and Growth Strategy, ratifPrimeever increasing pressure from foreign competition, WTO membership isthe country to reap the benefit of globalization on fair terbenefits that WTO membership can bring to Vietnam:
i) access to
legalrience as antries. This
enges iter will bend Part II
s: i) nationaln, ii) preparation by the government, iii) key challenges,
and iv) technical assistance received. Part II will draw on the same issues as lessons for other developing countries.
lopment after unity in 1992 and
munist Party,portant
unanimousolicy
ionalportant
, the government made a series of official decisions to follow up upporting
ultilateralmainstreaming in the 5-
top
itment in itment was reflected in
ied by the Minister in 2002. And in a more competitive and globalized world market, with
a means forms. There are three major
export market, which is essential for Vietnam's exports and thus economicgrowth;
ii) attraction of FDI, which brings in the needed and scarce capital, technology, and know-how for the benefit of the host country's development; and
iii) opportunity for domestic institutional reform, to enhance efficiency and facilitate development.
282
Of course, there are other benefits of WTO membership as well, such as thedispute resolution mechanism in dealing with other WTO members, andas important trad
2. Preparation steps by the governm
2.1. Institutional support and preparation
After Vietnam officially applied for WTO membership in 1995, many stepinstitutional building was taken by the government to prepare for the negoprocess. In 1997, the delegation for WTO negotiation was set up. The delethe responsibility to advise and comments on negotiation offers, pinternational negotiations, report on the negotiation outcomes and suup measures, andnegotiation and implementation of commitments (Prime Minister116/1998/QD-TTg).
In 1998, the government has decided to set up the National Committee fInternational Economic Cooperation (NCIEC). This Committee is mmaking strategies for international integration, working with agenciereviewing and adjusting the current regulations to conform to internationaland agreements. The Committee is represented by all ministries and agenciconcerned with economic cooperation and integration, and coordinated byMinistry of Trade. A new department, Multilateral Trade Policy Departmset up in the Ministry of Trade toThe government also instructed ministries concernedWTO accession issues. These units have the task ofsector they represent as inputs for the negotiation strategycoordinated by the Ministry of Trade.
Box 1. Major steps in Vietnam's WTO accession process
use of theif considered
ing nation, the country may join other members to have a voice in world trade regime.
ent
s intiationgation has
repare and conductggest the follow-
cooperate with ministries concerned on sectoral issues in Decision No
orandated with s concerned in
treatiesesthe
ent, was also deal with integration issues and WTO negotiation.
to set up a new unit to deal withproviding the perspective of the
and policies to be
1995. Vietnam applied for WTO accession and became observer
August 1996. Vietnam provided to WTO with the Memorandum on its trade regime.
May 1997. Decision on the establishment of the government delegation for WTO negotiation, represented by the Ministry of Trade, Ministry of Foreign Affairs,Ministry of Planning & Investment, and other bodies concerned.
August 1997. Decision to establish a group for advisory research on Vietnam's WTO accession.
February 1998. Decision to establish the National Committee for InternationalEconomic Cooperation chaired by a deputy PM. The Commitee is called to helping the government on steering and coordinating ministries, industries and localities for participating in international activities, including negotiations for WTO accession.
July 1998, Vietnam conducted the first multilateral meeting with the Working Partyon transparency, economic and trade policies.
December 1998. Second Working Party meeting.
July 1999. Third Working Party meeting.
283
November 2000. Fourth Working Party meeting. 1700 questions of the Working Partyon transparency in economic and trade policies have been answered by Vietnam after the 4 rounds of meeting. With these answers, Vietnam finished the policy transparency stage and moved to market access issues.
April 2002. Vietnam provided the Initial Offers on goods and services after the 5thmultilateral meeting, which discussed market access issues. Vietnam has provided tothe WTO Secretariat materials such as executive summary of existing economic and trade policies, domestic support and export subsidies for agriculture, industrialsupport, state-owned enterprise operation, action plan for TRIMS, customs valuation, SPS, TBT, import licensing, pricing and roadmap for eliminating the dual pricing, andtariff reduction schedule.
October 2003. Seventh Working Party meeting. Vietnam submitted materials,including its applied tariff schedule, and a new services offer to its WTO WorkingParty. Action plans, including a general legislative action plan, were also submittedon the implementation of the WTO Agreement on Customs Valuation, Agreement on Import Licensing, Agreement on Sanitary and Phytosanitary Measures, Agreement on Technical Barriers to Trade, Agreement of Trade Related Invested Measures, and Agreement on Trade Related Aspects of Intellectual Property
June 2004. Eighth Working Party meeting.
December 2004. Ninth Working Party meeting, with a commitment to move Vietnam's accession to the creation of Draft Working Party Report.
2.2. Policy coordination
Though the WTO accession process draws out a lot of resources of the conly part of a much broader process of development and poverty reductionaim at improving the well being for Vietnamese people. Other policy pillin the whole process include the Comprehensive Poverty Reduction and GrStrategy (CPRGS), the 10-year Socio-Economic Development Strategy, theplanning process, and the Public Investment Program of the governmeefforts take place almost in parallel and aim at the overall developmenUnfortunately, these different agendas seem not always consistent and suppeach other. This will be one of the key challenges in Vietnam's developmegeneral and WTO accession in particular. For example, a large amount offunding in the Public Investment Program is spent on manufacturing ansubstituting industries, which do not seem topromote export as an engine of growth. The 5-year planning cycle of differand the state sector as the whole pay undue attention to the potential WTOin the future. Unless this situation is corrected soon, Vietnam would riskresources and suffer efficiency loss in an unconcerted exercise tha
ountry, it is , which all
ars or toolsowth5-year
nt. All of these t goals.
ortive tont efforts inpublic
d importcreate jobs for poverty reduction or
ent sectorselements
waste huget barely fails to
achieve the development goals in an optimal way.
To correct the situation, the government starts to be aware of the importance of policy coordination and has plans to incorporate WTO implementation roadmap to the next 5-year planning process. This will make sure that any sectoral planning would take into consideration the impact of WTO implementation and its implications.
284
2.3. Consultation efforts
An important channel of communication between the government policy mthe business community is through the Vietnam Chamber of Comm(VCCI). Dissemination, awareness raising, and consultation on internationaintegration matters, WTO accession included, are conducted by VCCI forcommunity. One of the important regular activities facilitated by VCCI isBusiness Forum, which is held annually for the business representatives to mhave dialogue with the government on policy and other issues that may affect the
2.4. Legal reform
One of the huge tasks for Vietnam in preparation for WTO accession is in lreform. Vietnam had to review all of its laws and came up with a legislativamend existing laws or promulgate new laws that conform to WTO rules.legal documents or articles thereof that conflicted with WTO rules had tor eliminated. Since 2001, WTO related legislative agenda has becpart of the National Assembly's annual agenda. During the 2001-2004 pe40 legal documents, includinwith elements related to conformity with WTO rules (See Appendix 1). Thlegislative agenda will continue in 2005 and beyond to further align with trules and international practices.
With ras changes in the custom valuation rule, new decree on MFN, drafting of oon safeguarding and anti-dumping. Other legal issues identified as necessain legislative agenda yet, include rules on export subsidies, TBT, and domesupport.
A number of new laws and regulations related to tradpast few years to further liberalize Mode 4 of service supply (presence of npersons) for professional services such as legal and auditing services. Statein the telecom sector was significantly reduced and substantial competallowed in telecom infrastructure and value-added services.
Steps were started to develop the legal framework for protecting the inproperty right. Most of Vietnam’s commitments under the Bilateral Trade Awith the United States were covered by the TRIPS agreement. Vietnam hassignatory party to the Paris Convention, the Madrid Agreement, theConvention, the Patent Cooperation Treaty, and more recently the Berne Convention.The Civil Code had provisions on IPR protection, infringement, and remedgeneral. However, regulations governing different aspects of intellectual prrights are scattered in different legal documents. Therefore, the government is drafting
akers anderce and Industry
l the businessthe
eet and
business environment. This is a vehicle for the government to listen to the voice of the business community and to explain about government policies.
egale agenda toLaws and
o be amendedome a significant
riod, aboutg laws and ordinances, have been passed or amended
ehe WTO
egard to trade in goods, the future agenda will address important changes such rdinancesry, but notstic
e in services were enacted in theaturalmonopoly
ition was
tellectualgreementbeen
WIPO
ies inoperty
a new law on intellectual property, which is scheduled to be passed in the Fall meeting sesion of the National Assembly in 2005.
In terms of investment regime, efforts are going on to unify the Law on Foreign Investment and the Law on Domestic Investment Promotion, to amend the Enterprise Law, in order to address differences in treatment of foreign and domestic investors.
285
3. Key challenges
3.1. Negotiation challenges
Vietnam is in the negotiation process and receives a lot of pressure from thParty's
:
¶subsidies to agriculture,¶ transparancy and predictability of the¶ import bans and restrictions,¶pricing policies, e¶customs formalities and admin
customs valuation,¶ national treatment in trading rights,¶ national treatment in internal taxes.¶prohibited subsidies in the industrial secto¶effective enforcement of IPR protection¶ fair and predictable environment
or the 9th Working Party's meeting, the most recent one, more specific cone raised by particular members as follows:
¶ Taiwan was concernethe second largest investor to Vietnam. Therefore, Taiwan adiscrimination. Vietnam admitted the issue but pointed out some incentivesgiven for foreign investors.
¶ Switzerland was concerned more about intellectual property in inves
¶ Australia was concerned aboas state-owned enterprises, joint stock companies, and foreignenterprises, and asked for equal treatment for all. Australian side afor theproportion" in investment licensing
¶ The US was concerned about the discrimination in investment anpublicize and proclaim Vietnam's adjustments to the Working Party for advisory.
¶ The US also asked for ruling out of the "local content" and "exportforeign invested enterprises. If agreed, Vietnam wouldother members.
¶ Reportedly, some US businesses were not satisfied with the BTA ato reduce the time schedule for
e Workingmembers. Key concerns raised by other members throughout the negotiations
include
legal regime,
specially the dual pricing,istration, including the WTO-consistent
r,
for investment.
F cernswer
d most about the discrimination on investment, as it is sked for non-
tment
ut the discrimination among types of enterprises invested
lso askeddraft of Enterprise Law and required to phase out the rule of "export
d asked to
record" tohave to apply this to all
nd wantedmarket access by WTO. In the recent bilateral
negotiation, main focus was on conditions for market access of goods and services, in which services are the "hot point" of the negotiation.
¶ In fact, all requirements from the US side were mostly from the existing US businesses in Vietnam. Their opinions were collected by AmCham and the US Business Council to submit to USTR.
286
In October 2003, at the 7th Working Party meeting, Vietnam submittedtariff schedule and a new services offer. Action plans, including a generalaction plan, were also submitted on the implementation of tCustoms Valuation, Import Licensing, SPS, TBT, TRIMS, and TRIPS.
In late April 2004, at the 8th Working Party meeting, Vietnam submitWorking Party new paperwork including revised goods and services offertariff offer binds close to 100% of its tariffs in agricultural and non-agricultuVietnam's new services offer now includes many commitments equaVietnam has committed to in the VN-US BTA, as well as commitmentsareas not commitoverall legislation, and the Agreements on Customs Valuation, SPS, TBT, awere also submitted.
At the 9th Working Party meeting, Vietnam submitted to current WTO(mostly to Working Papproved by Vietnamese government, to industrial goods and 25.3% onproducts. (
its appliedlegislative
he WTO Agreement on
ted to thes. Its newral goods.
l to whatin service
ted to in the BTA. In addition, revised action plans for implementingnd TRIPS
membersarty) documents on commitment on tariff of 18.5%, which was
agriculturalwww.wto.org).
On top of the key issues raised by Working Party members, Vietnam is aoffer WTO-plus concessions, which are not implemented by the insisting Wmembers. Agricultural tariff is an example: Vietnam's latest offer is toagriculural tariffs at an average level of 25.3%, while Thailand and thewho are also members of the Working Party, have bound average tariffs iof 36% and 34%, respectively. Nepal was able to bind its agricultural tariaverage of 42% (Oxfam, 2004). Many of the requirements by WTOissues like agricultural subsidies, domestic support, etc. may go so far that iundermine Vietnam's development and poverty reduction efforts, if Vietnamaccept it. There are concerns that Vietnam may join the WTO not on tdevelopment terms, if members' requirements are to be satisfied.
While negotiation, as well as implementation, on goods trade issues are mto border measures like tariff and quantitative restriction, trade in serviceinvestment regulations are mainly related to the behind-the-border measures, or domestic institutions. This is a quite complex matter to deal with, as it touches upon the whole economic, political, and governance structure of the country. In tcontext, close link and cooperation between the government and the busiare essential to make sure that policies and regulations are consisteninvestment agreements and commitments.
Vietnam has concluded the Bilateral Trade Agreement with the Unitwhich was a big move in trade relasurge of Vietnamese exports to the US market. However, with regard tonegotiation, the threat is that many other member countries may ask for"multilateralization" the VN-US BTA concessions, which go beyond the Wrequirements . Therefore, Vietnam is facing a quite challenging demand while
lso asked toTO
bindPhilippines,
n agricultureffs at an
members on t risks was to
he pro-
ainly relateds and
hisness sector
t with trade and
ed States in 2001,tion with an important partner and resulted in the
WTOa
TO
considering its own development needs.
Given the complexity and dauntiness of negotiation challenges that Vietnam faced with, it is extremely important that negotiation efforts are fully informed with the country's status quo, institutional capacity to implement its commitments, the domestic industry competitiveness, and most of all its development objectives and theoverall strategy to achieve them. Moreover, government agencies involved in
287
negotiations have to closely coordinate and keep each others informed in thso that the terms they negotiobjective, rather than contradict.
The accession process is exacerbated by the doubled standards which go bexisting WTO agreements. At the same time, special and differential treatmcompletely identified. The accession is challengnot ready to enter into n
Box 2: The Partner Issues
eir efforts,ate are consistent with each others and with the overall
eyond theent is not
ed by the fact that some partners are egotiations (Box 2).
According to comments in the local media, for the bilateral negotiation with Japan, the twosides have yet to enter essential negotiations. Japan has put forth suggestions that Vietnamfound surprising, and too demanding. Japan side emphasized that WTO means strictregulations and rules, not just a place where countries shake hands. As expressed by ChibaAkira, Press Assistant to Japanese Prime Minister, "we understand that Vietnam seeks earlyaccession, but it is difficult to say how long it will take to complete this bilateral negotiationround", and "Japan fully support Vietnam's WTO accession, but in a way consistent with therules. Clearly, Vietnam needs to do more to accede". Before the ninth session, in Sept. 2004, the Japanese made a request that surprisesVietnamese negotiating team. Japanese side pressed the point that WTO is not an cooperationorganization but where each party act in favor of its own interest. Japanese official also noted that Japan is negotiating with Russia which could hopefully finalize in January 2004. After that Japan will concentrate to negotiation with Vietnam. This means Vietnam hardly continuethe bilateral negotiation with Japan due to partner's time and resource constrain. (Source: VietNamNet, 10/10/2004)
Another major challenge for Vietnam is its classification as a non-market economwhich would restrict Vietnam's access to international markets. ClassiVietnam would be in a disadvantaged position in dumping case investthis already happened in the past.
Last but not least, human capacity constraints are prom
for its own development in tsupporting tasks, which compete away a significant part of the valuable andresources available in the country.
3.2. Implementation challenges
Four major challenges are identified in the implementation by the goveVietnam:
First, the WTO accession to a large extent depends on economic reformscountry. Viet Nam has adopted a gradual approach of economic reform andto the market economy to ensure a stability and sustainability. At the samcountry should accelerate pace of WTO accession in order to become a ful
y,fied as such,igations. And
inent issue for the country in the whole negotiation and preparation process. The country needs human resources
he first place, and on top of that is for negotiation scarce
rnment of
inside thetransition
e time, the l member
in 2005. The gradual pace of the reform may affect the pace of the acession. The timeand resource constraints refrain from utilizing the accession to support policy-makingprocess inside the country. It may probably adjust some objectives and priorities ofthe reform. In addition, a good balance of costs and benefits of WTO accession usually requires a high level of coordination, a good knowledge of WTO issues, and professional qualifications of the policy-making institutions involved in the
288
negotiations. All of these factors should be intertwined with solid negotiaand experience in multilateral engagements.
Second, as a country in transition, the legal system is uncompleted. Itthorough review of existing laws and other legal acts in order to determineareas the laws are consistent or inconsistent. Based on this review, Vietnaaccelerate the legislation program in coming years. In on-going negoGeneva, Vietnam gave a list of laws and government decrees to fill the gacurrent legislation and the requirements of WTO agreements. The challenge lies in the complexity of law reviews, which usually take more time to complete. Thisis exacerbated by the limited capacity and resources of the institutions involv
Third, coordination between policy-making agencies on WTO issueschallenge. Vietnam’s system of interministerial coordination in WTOdescribed as a mixed form of coordinationcoordinating body,” “centralism,” and “decentralism” (Bui and Schmidt 2
ix canno
ü A loose implementation of legal rights due to the lack of relevant admstructure;
ü Insufficient knowledge about the requirements to adopt necessaryregulations in compliance with WTO agreements; and
ü An overlapping between governmental agencies in terms of new tasks,and structures.
Fourth, capacity gaps in interministerial coordination in WTO accesignificant. According to a research conducted by the Office of NCIECUNDP, all government agencies face capacity gaps such as: (1) lack of eWTO issues and negotiations; (2) a great need in practically all mintechnical training (including both professional and foreign language traininareas of trade in services and IPR protection are most difficult; (4) poor datfinancial services and investment; (5) ministries arto lack of information on foreign barriers; (6) greater public informatiintegration is essential to create grass roots support for it; and (7information on the social impacts of economic integration (andimplications of development). (UNDP and NCIEC, 2003).
For the economy of Vietnam, the biggest challenges to the econowithstand the open market and become competitive enough to reap the beliberalization and integreation. The long term benefits are obvious, but notshort term cost in terms of job loss, economic restructuring, and may be balpayment problem due to the import surge.
While WTO membership brings new market opportunities for exports, thopportunities by themselves will not be materialized without the country's efforts to tap on those new markets. To do so, there need to be great export pr
tion skills
requires ain which
m should tiations inp between
situationed.
is a bigissues is
of three components: “one special 001). This
m t help to solve three main existing problems:
inistrative
laws and
functions,
ssion arefunded byxpertise ofistries forg); (3) thea base on
e disadvantaged in negotiations dueon on economic
) the lack ofalso hidden
my are how to nefit of
withoutance of
e
omotion exercise to market Vietnamese products in foreign markets, to do research and gain knowledge about foreign markets to find the niche. And Vietnamese exporters so far have not really done much in this regard. Most products are still marketed through intermediaries without the producer's awareness about their end consumers. In this connection, unless the business community, especially exporters, do their home work in market research to be ready, new opportunities would simply bypass them.
289
Being new to the international trade practices, quite a few Vietnamese fifully understand the rules of the game. Many are unaware about WTO ruinternational agreements that Vietnam have signed, therefore wouldrules and pay the cost in their international transactions. To be reaimplementation, the business community, especially the small anenterprises,environment.
Despite all the good things that trade liberalization and integration can brinof higher efficiency and transparency, there are always losers in this prohelps. Help and compensation for the vulnerable groups that are affectedimplementation
and development.
4. Technical assistance
Vietnam received quite a lot of technical assistance fropreparation and the related issues (See Appendix 2). Most of the assistancecapacity building and policy making for government agencies and officials.assistance was offered to private sector or civil society sector.
In terms of research, the World Bank Institute provided support to the Natfor Social Sciences and Humanities (former name of Vietnam Academy oSciences) to conduct a forum on Vietnam's WTO readiness, and a survey omanufacturing industries (textile and garment, automobile, footwear) and s(telecom, transport, banking) to learn about how industries and service pready for the WTO accession. The telecom and maritime transport sectorsindicated that most firms are positive about WTO accession, though thstill highly monopolistic and protected. They believe that WTO implementaforce the currently protected state-owned enterprises to compete on a moreplaying field. However, firms are not fully aware of the WTO implications, and they have very limited access to information about the WTO process (Nguyen Chien Thang, 2003). The banking survey also shows the welcoming attitude amonwith regard to the WTO accession, seeing it as a good opportunity for nproduct development, and banks seem to have strategy in mind to cope witcompetitive environment (Dang Nhu Van, 2003).
With regards to IPR protection, Vietthrough the STAR project to help implement the Bilateral Trade Agreement. This project conducted many training activities and seminars to raise awareness astrengthen the capacity of law enforcement bodies in dealing with IPR issueothers. In addition, technical assistance was also offered by Switzerland andthe National Office of Industrial Property.
The WTO secretariat has provided limited technical assistance to Ministry o
rms do not les and/or
risk violate thedy for WTO
d mediumneed to be well informed about the rules and new competitive
g in termscess who needby WTO
will be a big part in any action plan of the government. This is to ensure social equity and stability, which are necessary for further economic growth
m various donors for its WTOis inNot much
ional Centerf Social f selectedervices
roviders aresurvey
ese sectors are tions willleveled
g bankersew market and
h the new
nam received assistance from the US government
nds, amongJapan to
f Trade ingiving advise in document preparation, in organization of workshop and training, Ministry of Foreign Affairs in setting up a reference center for WTO issues, The Ministry of Finance in designing and streamlining the tariff offer. Most of the assistance were provided on ad hoc basis. As an example, the WTO Deputy DirectorGeneral Yerxa, director and staff of Accession Devision have visited Viet Namrecently to work with WTO Negotiation team as an effort to provide technical
290
assistant from the Secretariat. The secretariat staff also provided assistancother donors program. Some v
e throughisits were assisted by the US-Vietnam Trade Council
Education Forum. (www.usvtc.org).
nd accession soountries.
tjectives.
gotiation andould be deeply motivated by its development objectives,
e and WTO
gendasrtynd policy
utually supportive, his is not
ectoral interests, represented by individual ministries or agencies, are ighly
terests thrive
businessin the more
. The strongest message to businesses would be the one that own good and
publicion or be
ral and the acceding
se about then and
l support can berned inility in
stancerch institutions
nment in the decision making process. The assessment can be done independently by the academics or by order of the government to address a specific need in policy making. In any case, there need to be a mechanism of information collection and provision from government departments to the research community or any information user, to facilitate research. Therefore,technical assistance for information publicity can be very helpful to research thatsupport government decision making.
II. Lessons for other developing countries
Based on Vietnam's experience in WTO negotiation, preparation, afar, some of the suggestions can be drawn as lessons for acceding c
First, the country or its leaders should be clear about its overall developmenobjectives, and WTO accession could serve as a means to achieve those obAnything the countries does in terms of preparation and support to the neimplementation afterward shto make sure the whole process is consistent and the development coursprocess are mutually supportive.
Second, for a developing countries in transitions with many different big aconducted at the same time, including domestic institutional reform, povereduction, and international integration, a top-down approach in decision amaking is necessary to make sure all of those are consistent and minstead of contradict and result in waste of resources and efficiency loss. Tan easy job, as snot always the same as the national interests. Therefore, a strong and hcommitted top political leadership is essential to maintain the national inin all action plans.
Third, efforts are needed from the government to send a message to thecommunity to inform it about where the country is and will be headingglobalized world economystrikes their own interests and incentivizes their involvement for theirthat of the nation as the whole. General dissemination and education for theand businesses without specific motivation would not attract much attenteffective in raising awareness.
And last but not least, technical assistance is needed from both multilatebilateral sources. Multilateral organizations are in a good position to helpcountry and the people involved with capacity, knowledge, and expertiaccession process, so that they can make informed decision in the negotiatioimplementation process for the best benefit to the country. Bilaterauseful in enhancing technical capacity for the institutions and people concevarious technical and legal aspects of WTO rules, its agreements, and flexibapplication. Impact assessment is another important area that technical assifrom any source will be helpful. This would be best conducted by reseaor think-tank to inform the gover
291
REFERENCES
Bui2001.
Dang Nhu Van, 'Are Vietnam's Banks Ready for the WTO?', 2003.
Hoang Phuoc Hiep, "Vietnam's policies on International Economic Integrationissues on perfectingThegioi Publisher 2004.
National Assembly, 'Resolution ... of the National Assembly on Legislative2003'.
National Assembly, 'Resolution ... of the National Assembly on Legislative2004
National Assembly, 'Resolution ... of the National Assembly on Legislative A2005
National Assembly, 'Resolution .... of the National Assembly on Legislative2002
National Assembly, 'Resolution .... of the National Assembly on Legislat2001'.
Ngo Duc Manh, WTO accession – challenges for Vietnam’s Administration anLegHochiminh City, 30 September-1 October 2004.
Nguyen Chien Thang, 'WTO readiness survey: Telecom and Maritime Trans2003.
Nguyen Ngoc Son, 'Vietnam: WTO accession process', 2003
Oxfam, 'Extortion at the gate. Will Vietnam join the WTO on pro-developmenOxfam Briefing Paper, Octob
Schmidt, U., 'Roadmap for Vietnam's Accession to the WTO', 2002.
U.S Vietnam Trade Council Education Forum, Catalog of LegPolicy Regime, , December 2004.
U.S Vietnam Trade Council,
Xuan Nhat and Uwe Schmidt: Interministerial coordination in WTO accession,
and somelegal system", in the book "Vietnam and process of WTO accession”,
Agenda in
Agenda in'.
genda in'.
Agenda in'.
ive Agendain
dislation, Presentation at the Training for Members of the National Assembly in
port Sectors',
.
t terms?',er 2004.
al Updates: Vietnam Trade
www.usvtc.org
UNDP and NCIEC: Capacity gaps assessment in economic integration, Hanoi, 2003
Vietnam's Communist Party, Resolution 07/NQ-TW dated 27/11/2001.
World Bank, 'Moving Toward 2010: Vietnam Partnership Report', 2004.
WTO, www.wto.org
292
Appendix 1: Laws passed and amended by Vietnam's National Assembly from 2001 in accordance w
001: Law on Customs (June 2001)
¶)
Ordinance on Lawyers Practice (August 2001) ¶ Ordinance on Fees and Charges (September 2001)
Ordinance on Advertising passed on 16 November 2001 and came intoof 1 May 2002;
Article
In 2002: Law on Amendment and supplement to the Labour Code passed on 2 A
and became effective as of 1 January 2003. ¶ Ordinance 40-2002-PL-UBTVQH10 on Prices (26 April 2002) ¶ Ordinance 41-2002-PL
may 2002) ¶
ds into Vietnam (25 May 2002) ¶ Ordinanc2002)¶ Law 02-2002-QH11 on Amendment of law on promulgation of Le(16 December 2002)
In 20 Ordinance 07-2003-PL-UBTVQH11 on priv
tice (25 February 2003);¶ Ordinance 08-2003-Pl-UBTVQH11 on Commercial Arbitration (2003);
Law 03-2003-QH11 on Accounting (17 June 2003); ¶ Law 04-2003-QH11 on Statistics (17 June 2003);
Law 07-20030QH11 on Amendment of Law on Value Added Tax (172003
Law 08-2003-QH11 on Amendment of Law on Special Sales tax (17 J Law 09-2003-QH11 on Amendment of Law on Corporate Income
2003);¶ Law 10-2003-QH11 on Amendment of Law on State Bank of Vie
);
ith WTO rules
In 2¶
Ordinance 36-2001-PL-UBTVQH10 on Plant Protection and Quarantine (25 July 2001¶
¶ force as
¶ Resolution of the National Assembly 51-2001-QH10 on Amendment numbers of s of the SRV‘s Constitution (came into effect from January 2002)
¶ pril 2002
-UBTVQH10 on MFN and NT in International Commerce(25
Ordinance 42-2002-PL-UBTVQH10 on Self-Protection in Import of Foreign Goo
e 43-2002-PL-UBTVQH10 on Post and Telecommunications (25 May
gal Documents
03:¶ ate Medical and PharmaceuticalPrac
25 February
¶
¶ June);
¶ une 2003);¶ Tax (17 June
tnam (17 June 2003¶ Ordinance 23-2003-PL-UBTVQH11 on Food Safety and Hygiene (26 July 2003) ¶ Law 13-2003-QH11 on Amendment of Law on Land ( 26 November 2003); ¶ Law 14-2003-QH11 on Amendment of Law on State Owned Enterprises (26 November 2003); ¶ Law 15-2003-QH11 on Commendation and Rewards (26 November 2003);
293
¶ 03);¶
Law 18-2003-QH11 on Amendment of Law on Co-operatives (26 November 2003);
In 2¶ to
¶ y Developed
e 16-2004-PL-UBTVQH11 on Livestock Breeds (24 March 2004); ¶ ended) (29
il 2004);¶ ns (15 June
¶ 004);¶¶ une 2004);¶ ent of and Addition to the Law on Protection,
;¶ gainst Subsidized Goods
04);
¶ Law on Publication (10 November 2004).
In 2005, the following laws are expected to be passed or amended:¶¶¶ ended)¶¶ etnam¶ nd implementation of international treaties ¶¶ nded)¶ )¶¶ ent Protection¶¶ Law on Intellectual Property¶ Law on Electronic Transactions¶ Law on Import and Export Tariff ¶ Anti-corruption Law ¶ Ordinance on Procedure of Settlement of Administrative Offences
Law 16-2003-QH11 on Construction (26 November 20 Law 17-2003-QH11 on Aquatic Products (26 November 2003);
¶
004: Ordinance 14-2004-PL-UBTVQH11 on Amendment of and AdditionOrdinance on Income tax on high Income Earners (24 March 2004); Ordinance 15-2004-PL-UBTVQH11 on Protection of DomesticallNew Plant Varieties (24 March 2004);
¶ Ordinanc Ordinance 18-2004-PL-UBTVQH11 on Veterinary Medicine (amApr Law 20-2004-QH11 on Amendment of Law on Credit Institutio2004); Law 21-2004-QH11 on Bussiness Bankruptcy (amended) (15 June 2Civil Procedure Code 24-2004-QH11 (15 June 2004); Law 23-2004-QH11 on Inland Waterway Transportation (15 J Law 25-2004-QH11 on AmendmCare and Education of Children (15 June 2004) Ordinance 22-PL-UBTVQH11 on Measures AImported to Vietnam (20 August 2004);
¶ Law on Competition (approved on 9 November 20¶ Law on Electricity (approved on 10 November 2004);
Law on Amendment of
Civil Code (amended)Commercial Code (amended)Maritime Law (amLaw on Medicines Law on Railways in ViLaw on signing, accession aLaw on State Auditing Law on Education (ameLaw on Customs (amendedLaw on TourismLaw on EnvironmLaw on Bank Transfer Means
294
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e G
over
nmen
t on
how
tode
al w
ith th
ese
issu
es; a
d as
sito
str
engt
hen
the
WT
O a
cces
sion
and
impl
emen
tatio
AD
Blic
atio
n of
’s W
TO
n rm
Polic
y, a
nd in
stitu
tioan
alys
is.
estm
ent i
npl
icat
ions
atio
n of
he k
eydo
mes
tic
paci
ty b
uil
MO
F to
sup
port
ana
lysi
sof
tari
ffs,
indu
stry
and
sub
sid
WT
O a
cces
sion
, and
cov
ers
serv
ices
and
man
ufac
turi
n
The
Imp
Vie
tnam
Acc
essi
ono
Exi
stin
gIn
vest
men
tIn
cent
ives
and
Mar
ketR
efo
nal
Det
aile
d di
agno
sis
of th
ere
gula
tory
fra
mew
ork
of in
vV
ietn
am. E
xam
ine
the
poss
ible
eco
nom
ic a
nd s
ocia
l im
and
adju
stm
ent c
osts
that
the
elim
inat
ion
or a
dapt
inve
stm
entm
easu
res
and
ince
ntiv
es m
ay h
ave
ont
good
s an
d se
rvic
es s
ecto
rs.
Thi
sw
ork
inte
nds
to b
uild
on th
e T
A f
orC
adi
ng f
ory
for
the
gse
ctor
s.A
ustr
alia
A
usA
idR
egio
nal
ect
yan
alys
isan
din
g in
To
supp
ort a
pro
gram
of
WT
O r
elat
ed c
apac
ity b
uild
ing
Tra
inin
gR
esea
rch
licy
Ana
lysi
sW
TO
Cap
acity
Bui
ldin
g Pr
oj
Polic
capa
city
bui
ld4
sele
cted
ASE
AN
coun
trie
sPo
Aus
tral
ia
ing
for
WT
Oac
cess
ion
and
trai
ning
on
WT
O-r
elat
edis
sues
und
erC
EG
and
Cap
acity
Bui
ldin
g(r
elat
edto
WT
O's
Agr
icul
ture
Agr
eem
ents
)
Impr
ovin
g un
ders
tand
ing
of th
e im
plic
atio
ns o
f in
tegr
atio
n,D
evel
opin
g po
licie
s to
opt
imiz
e th
edo
mes
tic c
onse
quen
ces
ofin
tegr
atio
n
Polic
y re
sear
ch
Tra
inin
g se
min
arA
usA
id-M
AR
Dpr
ogra
mon
capa
city
bui
ld
Polic
yan
alys
isre
sear
ch
296
Don
orP
roje
ctF
ocus
are
aO
bjec
tive
sA
ctiv
itie
s
faci
lity
Aus
tral
iahe y ng n
faci
li
ent
WT
O's
Ant
i-du
mpi
ng A
gree
men
t)
Impr
ovin
g th
eca
paci
ty to
deve
lop
polic
yPo
licy
deve
lopm
ent
Vie
tnam
inte
grat
ion
in t
Wor
ld E
cono
mC
apac
ity B
uild
ifo
rA
ntiD
umpi
gun
der
CE
Gty
Polic
y de
velo
pm(r
elat
ed to
Aus
tce
for
ng
a lIn
tegr
atio
n in
the
Ban
king
Sec
tor
isan
dre
sear
chC
apac
ity B
uild
ing
tean
a St
rate
gyon
Int
erna
tiona
lInt
egra
tion
of th
eB
anki
ngst
ing
cont
ext a
ndtr
ateg
ies
for
the
form
ulat
ion
and
impl
emen
tatio
nof
the
Inte
grat
ion
Stra
tegy
ills
of S
BV
sta
ff a
ndst
akeh
olde
rs in
polic
y an
alys
is, f
orm
ulat
ion
and
non
bank
ing
s
ralia
T
echn
ical
A
ssis
tan
Form
ulat
iSt
rate
gy o
f In
tern
atio
na
Polic
yan
alys
To
stre
ngth
en th
e ca
paci
ty o
f th
e SB
V to
for
mul
ad
impl
emen
tSe
ctor
;O
utpu
t 1
Res
earc
h on
exi
prop
osed
s
com
plet
ed.
Out
put 2
In
crea
sed
skot
her
sele
cted
impl
emen
tatio
inte
grat
ion
issu
e
Aus
tvi
ng th
eC
omm
erci
al L
aw
in th
e in
tegr
atio
npr
oces
s.
t estic
gula
ting
the
com
mer
cial
act
iviti
esan
d th
e in
tern
atio
nal
inte
grat
ion
requ
irem
ents
To
impr
ove
the
prof
essi
onal
know
ledg
e an
dle
gisl
ativ
thos
e w
hopa
rtic
ipat
e in
the
draf
ting
and
appr
ovin
gof
Law
and
its
maj
or s
uppo
rtin
ggu
idel
ines
.
ean
din
corp
orat
eat
ions
rel
ated
toth
em
mod
ity f
utur
esnc
hisi
ngm
mer
cial
Law
.
Org
aniz
e w
orks
hops
toga
ther
feed
back
/rai
seaw
aren
ess
on th
ere
vise
dra
ft
ralia
A
ssis
tanc
efo
rim
pro
Polic
y d
evel
opm
enC
apac
ity B
uild
ing.
Impr
ovin
g th
edo
mle
gal d
ocum
ent r
e
eca
paci
tyof
Com
mer
cial
Dra
ft,f
inal
izar
ticle
s/st
ipul
issu
esof
Co
trad
ing
and
Fra
in th
edr
aft C
o
297
Don
orP
roje
ctF
ocus
are
aO
bjec
tive
sA
ctiv
itie
s
Aus
tral
iaio
nal
Bui
ldin
g Pr
ojec
t
gon ta
nd r8
ount
ries
(re
late
d s
SPS
Agr
eem
ents
)
Bui
ldin
g ca
paci
ty f
or M
Aey
s, b
ookl
et,
min
ars
wor
ksho
ps a
nd c
ours
eson
the
SPS
issu
es
Aus
Aid
Reg
SPS
Cap
acity
Cap
acity
Bui
ldin
Tra
de r
elat
ed P
lan
Ani
mal
qua
rant
ine
foA
SEA
Nc
to W
TO
'
Stud
y to
ur, s
urv
Se
Bel
gium
atio
nen
t,co
nom
ic On
ocio
-eco
nom
icV
N’s
acc
essi
on to
WT
OA
sses
s im
pact
on
the
Tra
delib
eral
izan
den
viro
nmso
cio-
eim
pact
of
WT
acce
ssio
Ass
ess
the
sim
pact
of
envi
ronm
ent
Can
ada
onom
icC
apac
ity b
uild
ing
lopi
ng, W
TO
-rel
ated
tech
nica
lel
opm
ento
fng
for
um
APE
CE
cIn
tegr
atio
nPr
ogra
m(A
PEC
/EIP
)
To
assi
st in
build
ing
the
capa
city
of
som
e de
ve e
cono
mie
sin
APE
C in
Sou
thea
st A
sia
to n
egot
iate
thei
r ac
cess
ion
to th
e W
TO
and
/or
impl
emen
t the
irsp
ecif
ic W
TO
com
mitm
ents
.
Tra
inin
gas
sist
ance
, dev
regi
onal
lear
ni
Can
ada
Leg
alR
efor
mA
ssis
tanc
e Pr
ojec
t (L
ER
AP)
Cap
acity
bui
ldin
g V
ietn
ames
e G
over
nmen
t in
prom
otin
g th
eru
achi
evin
ggr
eate
r ef
fici
ency
, coh
eren
ce a
nd tr
ansp
aren
lega
l sys
tem
.
the
lega
lcap
acity
rnat
iona
l eco
nom
icd
capa
bilit
ies
for
ofci
vil
judg
men
ts -
Inc
reas
ing
com
para
tive
law
res
earc
h an
dan
alys
is c
apac
ityen
forc
emen
t of
civi
l
Ass
istin
gle
of
law
by
cyin
the
Stre
ngth
enin
gfo
r in
tein
tegr
atio
nan
the
enfo
rcem
ent
Den
mar
kA
gric
ultu
ralS
ecor
Prog
ram
Sup
po /
WT
Oas
sess
man
ng
WT
O a
sses
sre
late
d tr
aini
ngt rt ent
d re
late
d tr
aini
men
t and
Eur
opea
nC
omm
issi
on
Mul
tilat
eral
Tra
dePo
licy
Ass
ista
nce
Prog
ram
Cap
acity
bui
ldin
g,te
chni
cal a
ssis
tanc
e an
dad
viso
ry
Supp
ortin
g V
ietn
ames
eof
fici
als
in p
olic
y-m
akin
g de
part
men
ts o
f al
l rel
evan
ts m
inis
trie
s in
volv
ed in
mul
tilat
eral
trad
epo
licy
issu
esT
rain
ing
on W
TO
issu
es,
Res
earc
h on
the
impa
ct o
f se
rvic
e lib
eral
izat
ion;
Fos
teri
ng
298
Don
orP
roje
ctF
ocus
are
aO
bjec
tive
sA
ctiv
itie
s
(MU
TR
AP)
ledg
e of
the
Doh
aA
gend
a;en
t of
the
Tec
hnic
alde
(T
BT
) an
dhy
to s
anita
ry (
SPS)
nt
s; T
rain
ing
of
de a
ndre
late
d L
aw C
hair
s in
and
nego
tiatio
n
know
Dev
elop
men
tE
stab
lishm
Bar
rier
toT
raSa
nita
ry/P
enqu
iry
poi
judg
eson
tra
issu
es; T
rade
Uni
vers
ities
;te
chni
ques
;E n
Shor
t ter
m T
A to
ass
ist t
he b
enef
icia
ries
in s
tng
the
capa
city
of
the
gove
rnm
ent o
fV
ietn
am a
nd V
ietn
ames
est
akeh
olde
rs f
or m
anag
ing
WT
O a
cces
sion
an
com
mitm
ents
and
cha
lleng
es f
rom
oth
er in
tern
antr
ade
rela
ted
agre
emen
ts
Seve
rals
hort
tur
opea
nC
omm
issi
oM
UT
RA
PB
ridg
ing
reng
then
i
d m
eet t
heir
at
iona
ld
regi
onal
erm
EU
exp
erts
mis
sion
son
SPS
Act
ion
plan
,SP
S an
d T
BT
enqu
irin
g po
ints
and
serv
ices
.
Eur
opea
nC
omm
issi
n
Tra
de n
eeds
asse
ssm
ent
Tra
de N
eeds
Ass
essm
ent e
xerc
ise.
Und
erst
andi
nR
Apr
iori
ties
for
next
Cou
ntry
Str
ateg
y Pa
per.
og
ofT
Eur
opea
nC
omm
issi
on
stan
and
Shor
t ter
m T
RT
A a
nd c
apac
ity b
uild
ing
toA
sian
deve
lco
untr
ies
and
Asi
an r
egio
nalo
rgan
isat
ions
gree
men
tsis
sues
,te
rnat
iona
l tra
de la
w,
ion
and
rbitr
atio
n, r
egio
nal
on.T
rade
acka
ging
and
trad
e
Asi
aT
RT
Atr
uFu
nd to
Asi
deve
lopi
ngco
untr
ies
(19)
Asi
an r
egio
nal
orga
niza
tions
(AT
F)
opin
gW
TO
rule
s&
apr
ivat
e in
cont
ract
neg
otia
tco
mm
erci
ala
trad
e in
tegr
ati
info
rmat
ion,
pfi
nanc
eE
urop
ean
Com
mis
sio
n
ePo
licy
Ass
ista
nce
Prog
ram
II
(MU
TR
AP
II)
of
the
gove
rnm
ent o
fV
ietn
am a
nd V
ietn
ames
e st
akeh
olde
rs f
orm
anag
ing
WT
O a
cces
sion
and
mee
t the
ir c
omm
itmen
ts a
nd
chal
leng
es f
rom
oth
er r
egio
nal a
nd in
tern
atio
nal t
rade
rel
ated
agre
emen
ts.
cifi
c: le
gal,
polic
y,ca
paci
ty b
uild
ing,
trai
ning
(Agr
icul
ture
, Ser
vice
s(g
ener
alan
d se
ctor
al),
SP
S(A
nim
al, p
lant
s, h
ealth
,
Mul
tilat
eral
Tra
dT
hepr
ojec
tpur
pose
is to
str
engt
hen
the
capa
city
- Se
ctor
spe
299
Don
orP
roje
ctF
ocus
are
aO
bjec
tive
sA
ctiv
itie
s TB
T,e
nqui
ring
poin
ts)
issu
es(l
egal
,bu
ildin
g ne
twor
k &
lo
pmen
t,aw
aren
ess
rade
and
envi
ronm
ent,
gend
er, s
ocia
l iss
ues
fish
erie
s/-
Hor
izon
tal
capa
city
curr
icul
ar d
eve
info
rmat
ion
&
rais
ing,
t
Eur
opea
nE
urop
eaT
echn
ica
Supp
ortin
g V
ietn
am tr
ansi
tion
to m
arke
teco
nom
inte
rnat
iona
l int
egra
tion/
pre
para
tion
for
WT
Oac
even
tual
impl
emen
tatio
n.It
incl
udes
the
draf
tita
xatio
n/cu
stom
/ acc
ount
ing
legi
slat
ion
and
proc
edur
with
inte
rnat
iona
l sta
ndar
ds,n
orm
s an
dre
com
mde
velo
pmen
t and
impl
emen
tatio
nof
trad
efa
cilit
aan
d in
form
atio
nsy
stem
s to
min
imis
e th
e bu
rden
of
cpr
oced
ures
ontr
ade.
Har
mon
izat
ion
of b
oth
the
con
mity
asse
ssm
entp
roce
dure
san
dth
e qu
ality
ass
essm
enti
nru
ctur
esw
ith in
tern
atio
nal s
tand
ards
.
Com
mis
sio
n
n lA
ssis
tanc
ePr
ogra
mm
e
y an
dce
ssio
n an
d ng
ofes
in li
neen
datio
ns,
tion
mec
hani
sms
usto
ms
for
fras
t
Eur
opea
nC
omm
issi
on
N
rope
rty
Rig
hts
Co-
oper
atio
nPr
ogra
mm
e (E
CA
P II
)
trad
e to
ach
ieve
fur
ther
erat
ion
by u
pgra
ding
the
ASE
AN
inte
llect
ual p
rope
rty
righ
ts s
yste
ms,
in li
new
ith th
e hi
ghes
t int
erna
tiona
lst
anda
rds
and
prac
tices
.
Sem
inar
s, tr
aini
ng, r
esea
rch
EU
-ASE
AIn
telle
ctua
lP
Enh
anci
ng E
U/A
SEA
N in
vest
men
t and
econ
omic
coop
300
Don
orP
roje
ctF
ocus
are
aO
bjec
tive
sA
ctiv
itie
s
Finl
and
ng
Tra
de
esou
rces
Dev
elop
men
tad
e to
rai
se th
e ca
paci
tyof
in f
orm
ulat
ing
and
man
agin
gpo
licie
s.in
g tr
aini
ngpr
ogra
ms
and
lting
ond
impl
emen
ting
egie
s an
dpo
licie
s.
toup
grad
e th
erm
atio
n sy
stem
of
the
stry
of
Tra
de.
Proj
ect o
nas
sist
ance
on
Cap
acity
bui
ldi
for
the
Min
istr
y of
Hum
anR
Ass
istin
g th
eM
inis
try
ofT
rits
offi
cial
sPr
ovid
trai
ning
con
sufo
rmul
atin
g an
trad
e st
rat
Supp
ortin
gin
foM
ini
Fran
ceic
ale
nist
ries
nom
icat
ion
and
Reg
ulat
ory
Cap
acity
build
ing
Tra
inin
g an
d as
sist
ing
revi
ewin
gof
lega
l sys
tem
Cap
acity
Bui
ldin
g an
d Su
ppor
t to
med
iaT
rain
ing,
Stu
dy to
urT
echn
assi
stan
ceto
thN
CIE
Can
dlin
em
ifo
r ec
oin
tegr
WT
Oac
cess
ion
Ger
man
y
epar
atio
ronm
ent.
ubsi
dyen
ts,a
nti-
dum
ping
impa
cts
busi
ness
, and
trad
edi
sput
es.
Se
min
arV
ietn
am’s
Acc
essi
on to
WT
O: P
rn
for
Com
petin
gin
a
New
Env
i
Sem
inar
on
sag
reem
regu
latio
ns,
on
Ger
Supp
ortf
orE
cono
m(G
TZ
/CIE
Proj
ect)
Eco
nom
ic a
dvic
eE
cono
mic
adv
ice
toG
over
nmen
t thr
ough
sup
port
toIE
M. O
n(o
ffo
ur)
resu
lts to
be
achi
eved
in th
e pr
esen
t pha
se: “
The
cond
ition
s of
reg
iona
land
g
man
yic
Ref
orm
M
Ce
loba
lint
egra
tion
ofV
ietn
ames
eec
onom
y ar
e im
prov
ed.”
Adv
isor
y
IMF
Leg
al A
spec
t of
Inte
rnat
iona
lFi
nanc
ial
Inst
itutio
n
Cov
ers
lega
l, in
stitu
tiona
lan
d op
erat
iona
l asp
ects
of
IFIs
and
WT
O
Hum
an c
apac
ity b
uild
ing
for
seni
or la
wye
rs r
espo
nsib
le f
orle
gal
aspe
cts
of I
FI a
ndW
TO
mem
bers
hip.
Sem
inar
301
Don
orP
roje
ctF
ocus
are
aO
bjec
tive
sA
ctiv
itie
s
IMF
ents
sta
tistic
s ad
e,nc
ome,
hanc
e th
e ac
cura
cyof
the
BO
P st
atis
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tern
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ase
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lExp
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tup
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305
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ene
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itzer
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ect
TR
IPS
To
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st V
ietn
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ful
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orth
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ight
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rogr
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atie
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gree
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ate
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evel
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rain
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evel
op E
ffec
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form
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a
an
and
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omot
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and
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ort
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elop
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ort p
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otio
nT
o as
sist
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trad
e, tr
ade
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ortin
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and
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new
exp
orto
ppor
tof
fere
dby
trad
e lib
eral
izat
ion
and
econ
omic
inte
grat
io
nalE
xpor
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ateg
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atio
nal T
rade
Net
wor
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reng
then
ouns
ellin
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/TSI
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ndve
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itzer
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uted
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cces
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ppor
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ough
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ngth
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grat
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into
the
glob
altr
ade
envi
ronm
ent
thro
ugh
alle
viat
ion
ofte
chni
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ade
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ortc
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s (a
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uent
ly s
purr
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omic
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wth
and
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port
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eas
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ount
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rs to
trad
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e st
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ing
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tand
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,
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the
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tech
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fras
truc
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rolo
gy,
text
ile/a
ppar
el, m
icro
biol
ogy
and
chem
ical
test
ing
and
calib
ratio
n
306
Don
orP
roje
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are
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bjec
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To
supp
ort t
hefo
rmul
atio
n of
sub
sidy
and
cou
nter
vaili
mea
sure
s an
dW
TO
acc
essi
onne
gotia
tion
ubsi
dies
and
g du
ties,
and
gotia
tion
skill
s fo
r of
fici
als
deal
ing
with
WT
O n
egot
iatio
n
Tra
inin
g in
and
coun
terv
mea
sure
nego
tiatio
ns
ngT
rain
ing
ins
coun
terv
ailin
ne
UN
DP
Glo
bal E
cono
my
atio
n St
udy
Res
earc
h an
d st
ock
taki
ngs
ed tr
ade
and
TA
,ce
ssio
n. R
oad
y. C
apac
ity g
ap a
sses
smen
t on
nts
chan
ism
for
WT
Oan
d ex
peri
ence
of
acce
ding
cou
ntri
es.
Inte
grat
ion
Stud
yM
anag
ing
Vie
tnam
’sIn
tegr
atio
n in
to
(Pha
se I
: In
tegr
)
Stoc
ktak
ing
ofV
ietn
am in
tegr
atio
npr
oces
s an
dsi
gntr
ade-
rela
ted
agre
emen
ts in
clud
ing
the
US
BT
A,A
FA
PEC
,Wor
ldB
ank’
s PR
SC,I
MF’
s PR
GF,
WT
Oac
map
ping
the
inte
grat
ion
stra
teg
impl
emen
ting
inte
rnat
iona
l tra
de-r
elat
ed c
omm
itme
.Stu
dyon
the
inte
r-m
inis
teri
al c
oord
inat
ion
me
acce
ssio
n
UN
DP
Inat
ion
Stud
yE
xten
sion
:C
omm
erci
al L
aw
Rev
isio
n
Leg
al r
efor
m a
ndC
apac
ity B
uild
ing
Rev
isio
n of
the
Com
mer
cial
Law
to s
uppo
rt a
leve
lpla
com
mer
cial
act
iviti
es a
nd f
orW
TO
com
plia
nce
arch
to e
xam
ine
the
omm
erci
al L
aw in
he
r do
mes
ticits
con
sist
ency
trea
ty a
nd B
TA
ob
ligat
ions
.C
lear
set
of
reco
mm
enda
tions
rela
ting
to th
epr
opos
ed c
hang
esof
the
Com
mer
cial
Cod
e.
tegr
yfi
eld
for
In-d
epth
rese
stat
us o
f th
e C
rela
tion
to o
tle
gisl
atio
n an
dw
ith th
eW
TO
307
Don
orP
roje
ctF
ocus
are
aO
bjec
tive
sA
ctiv
itie
s
UN
DP
Com
petit
ion
Law
ndild
ing
inco
mpe
titio
n po
licy
Supp
ort d
raft
ing
and
fina
lisat
ion
of th
e fi
rstC
ompe
titio
cals
uppo
rtpr
ovid
edby
D a
ndpe
titio
n ex
pert
s he
succ
essi
ve d
raft
s of
vera
l adv
ocac
y ra
ise
awar
enes
s on
the
wan
d po
licy.
nduc
t a s
tudy
on
stat
e lie
d to
5se
ctor
s.
Leg
al r
efor
ma
Cap
acity
Bu
n L
awT
echn
iU
ND
P/U
NC
TA
inte
rnat
iona
l com
to r
evie
wt
the
law
s.
Org
anis
e se
even
tsto
com
petit
ion
laC
om
onop
oly
app
UN
DP
Inte
grat
ion
(or
“Tra
de i
n Se
rvic
esPr
ojec
t”)
egio
nra
tioPr
oces
s, w
ith f
ocus
on
rvic
e de
velo
pmen
t.
hic
es s
ecto
r in
the
ratio
oord
inat
ion
on c
omm
it
-goi
ng
- T
o en
hanc
ehu
man
and
inst
itutio
nal c
apac
ities
in th
etr
ade
in s
ervi
ces;
and
- T
o in
crea
sepu
blic
aw
aren
ess
of r
equi
red
refo
rms
int
sect
or.
onof
a
com
preh
ensi
ve s
trat
egy
for
the
of
the
serv
ices
f in
form
atio
ns
on s
ervi
ces
and
of
the
serv
ices
sta
tistic
s
- A
sses
smen
tsof
the
san
d im
pact
s of
aliz
atio
nof
sel
ecte
d s
ecto
rs;
- C
ondu
ctio
n of
spe
cial
ized
and
prog
ram
s an
d et
nam
and
Cap
acity
Stre
ngth
enin
g to
Man
age
and
Prom
ote
Tra
de
in
Serv
ices
inV
ietn
am
inth
eC
onte
xt
of
Prom
otin
g th
eR
alan
d G
loba
lInt
egn
se
- T
opr
ovid
e te
chni
cal s
uppo
rt to
form
ulat
e a
com
pre
ensi
ve a
ndin
tegr
ated
deve
lopm
ent s
trat
egy
for
the
serv
cont
ext o
f V
ietn
am’s
inte
rnat
iona
l eco
nom
ic in
teg
n to
ens
ure
a lo
ng-t
erm
inte
r-ag
ency
and
cros
s-se
ctor
con
polic
yfo
rmul
atio
n an
d im
plem
enta
tion
of in
tegr
ati
men
ts;
- T
opr
ovid
esu
bsta
ntiv
e in
puts
to a
ssis
t in
the
onne
gotia
tions
for
WT
O/G
AT
S ac
cess
ion;
ar
eaof
hese
rvic
es
- Fo
rmul
ati
deve
lopm
ent
sect
or;
- Im
prov
emen
t ofl
owcu
rren
t tra
dein
syst
em;
com
petit
iven
estr
ade
liber
serv
ices
targ
eted
trai
ning
stud
y to
urs
inV
iov
erse
as.
UN
DP
Tra
inin
g an
dre
sear
ch
capa
city
bu
ildin
g fo
r
Cur
ricu
lum
dev
elop
men
tan
d re
sear
ch c
apac
itybu
ildin
g (r
elat
ed to
To
enha
nce
the
capa
city
of
Vie
tnam
ese
trai
ners
to a
dapt
the
"gen
eric
"U
NC
TA
D/C
omm
erci
al D
iplo
mac
y tr
aini
ng to
ols
onW
TO
issu
es to
the
loca
l dat
a,le
gisl
atio
n, e
cono
mic
str
uctu
re,
Con
duct
a s
erie
s of
wor
ksho
p on
sele
cted
issu
esin
the
inte
rnat
iona
l eco
nom
ic a
gend
a,
308
Don
orP
roje
ctF
ocus
are
aO
bjec
tive
sA
ctiv
itie
s
Vie
tnam
on
trad
ean
d de
velo
pmen
tpo
licy
ma
GA
TT
, GA
TS,
A
gric
WT
Oac
trai
ners
onR
esea
rcun
iver
sity
lere
sear
cher
so
issu
es in
agse
rvic
es,m
trad
ere
m
king
and
nego
tiat
ions
ultu
re, S
&D
,Tra
dere
med
ies)
deve
lopm
ent n
eeds
ce
ssio
n, tr
aini
ngof
trad
e po
licy.
hdo
neby
nat
iona
l ct
urer
s an
dn
WT
Ore
late
dri
cultu
re, t
rade
inar
ket a
cces
s, a
nded
ies
for
the
post
-cu
rric
ulum
dev
elop
men
t.U
ND
PA
sia
Tra
deIn
itia
tive
erie
nces
and
less
ons
ce.
on.
elop
ed a
ndl g
roup
s to
lear
n fr
om e
ach
es in
trad
To
faci
litat
e th
e cr
oss
fert
iliza
tion
of e
xple
arnt
on tr
ade,
inve
stm
ent a
nd e
cono
mic
gov
erna
nT
o st
reng
then
the
abili
ty o
f co
untr
ies
in th
ere
giT
ofa
cilit
ate
the
com
ing
toge
ther
of
gove
rnm
ents
(de
vde
velo
ping
) an
dno
n-go
vern
men
taot
her
and
stre
ngth
en th
eir
colle
ctiv
e pe
rspe
ctiv
e fo
ra a
ndin
stitu
tions
.T
o ad
voca
tefo
rhu
man
dev
elop
men
t pol
icie
s.U
SASu
ppor
t for
Tra
dA
ccel
erat
ion
Prog
ram
(ST
AR
)
dri
an
ong
ing
ques
tsby
stat
e to
an
dm
s aren
cy,
inve
stm
ent r
elat
ions
,pr
otec
tion
ofIP
Rs,
disp
ute
settl
emen
t and
’s e
ffor
ts to
imre
form
s re
quir
edfo
r th
e su
cces
sful
impl
emen
tatio
nof
Vie
tnam
Bila
tera
l Tra
deA
gree
men
t -T
o su
ppor
tVie
tnto
acc
ede
to th
e W
orld
Tra
de O
rgan
izat
ion
(WT
O).
d ec
onom
icor
t for
pol
icy
and
shop
s an
dov
isio
n of
refe
renc
em
ater
ials
and
guid
eboo
ks,
limite
d st
udy
tour
s, s
uppo
rtof
lega
l and
eco
nom
ic r
esea
rch
eST
AR
is d
eman
dve
n,re
spon
ding
ono
basi
s to
re
agen
cies
.195 (
rela
ted
Tra
de in
good
sse
rvic
es, c
usto
valu
atio
n, tr
ansp
righ
t to
appe
al,
To
supp
ort t
heG
over
nmen
t of
Vie
tnam
plem
ent
the
US-
am’s
eff
orts
TA
on le
gal a
nis
sues
, sup
ptr
aini
ng w
ork
sem
inar
s, p
r
309
Don
orP
roje
ctF
ocus
are
aO
bjec
tive
sA
ctiv
itie
s
arbi
trat
ion)
USA
Law
e an
drs
hip
Prog
ram
dri
to T
rade
rvic
es,
ion, ht
to
rote
ctio
nof
IPR
s, d
ispu
te s
ettle
men
tan
d ar
bitr
atio
n.)
with i
tfor
over
all i
nter
natio
nal e
cono
mic
inte
grat
ion
WT
O a
cces
sion
.
fac
ilita
te s
tudy
tour
sro
ad f
orG
over
nmen
t off
icia
lsvo
lved
in B
TA
im
plem
enta
tion.
Tra
de a
ndE
xcha
ngPa
rtne
Inst
itutio
nalc
apac
itybu
ildin
g ; d
eman
d-ve
nte
chni
cal a
ssis
tanc
epr
ogra
m(r
elat
edin
goo
ds a
ndse
cust
oms
valu
attr
ansp
aren
cy,r
igap
peal
, inv
estm
ent
rela
tions
, p
To
aass
ist
the
GV
N in
impl
emen
tatio
nof
the
BT
A
add
ition
alfo
cus
onW
TO
dis
cipl
ines
and
inte
rnat
iona
lbes
tpra
ctce
sth
at a
re
impo
rtan
, inc
ludi
ng
Des
ign
and
ab in
310
311
Don
orP
roje
ctF
ocus
are
aO
bjec
tive
sA
ctiv
itie
s
Wo
Inst
itute
(Mul
ti-do
nor
Tru
Fund
in
)
Dia
gnos
is o
f V
ietn
am’
read
ines
san
daw
aren
esam
ong
keG
over
nme
Prov
ide
Inst
itutio
nal s
uppo
rt to
the
Vie
tnam
ese
Aut
hoar
epr
epar
ing
road
map
srl
dB
ank
st
prep
arat
ion
s W
TO
s bu
ildin
g y nt
stak
ehol
ders
ritie
s th
at f
or p
olic
y re
form
that
will
pav
e th
e w
ay to
V
ietn
am’s
acc
essi
on to
the
WT
O.
Wor
ldB
ank
s ex
port
s: of
ions
etiti
vene
ss
Vie
tnam
’C
halle
nges
and
Opp
ortu
nitie
s;A
sses
smen
tpo
licy
reco
mm
enda
tfo
r im
prov
ing
Vie
tnam
’sco
mp
Wor
ldB
ank
Mod
erni
zatio
nPr
ojec
t(P
repa
ratio
n ph
as
rniz
ati
g le
gal
mat
ion th
erad
atio
n,hu
man
res
ourc
ede
velo
pmen
t, an
dor
gani
zatio
nal c
hang
e.
atio
n of
Vie
tnam
’scu
stom
s sy
stem
aga
inst
inte
rnat
iona
lgoo
dpr
actic
e; id
entif
ypo
licie
s an
d m
echa
nism
s to
add
ress
the
gaps
; and
sup
port
thei
rim
plem
enta
tion
thro
ugh
curr
ent a
ndfu
ture
proj
ects
.
Vie
tnam
Cus
tom
s e)
Cus
tom
s m
ode
onth
roug
h ad
dres
sin
issu
es, i
nfor
tech
nolo
gy a
ndo
equi
pmen
t upg
r
Con
duct
a g
apan
alys
is o
f th
ecu
rren
t situ
Sour
ce: W
orld
Ban
k, 2
004