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LONDON INTERNATIONAL MODEL UNITED NATIONS 2016 .
World Trade Organization (WTO) London International Model United Nations 17th Session | 2016
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Table of Content
Topic A: International trade and multilateral environmental agreements
Introduction 3
Key Concepts and Treaties 4
Statement of the Problem 5
Bloc Positions 10
Questions a Resolution Should Address 10
Further Reading 11
Sources 12
Topic B: The Bali Package: Renewing the world trade negotiation agenda
Introduction 12
Key Concepts and Treaties 14
Statement of the Problem 15
Bloc Positions 19
Questions a Resolution Should Address 20
Sources 21
Conference Information 22
Position Papers 23
Contact Details 24
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Topic A: International trade and multilateral
environmental agreements
Introduction
The World Trade Organisation is traditionally an international organization that
espouses the ideals of free trade and integration. Although there may not be
any direct correlation between trade and the environment, in reality, the link
had been recognized by the WTO as early as the 1970s. Increasingly, the
growing international concern regarding economic growth and the
environment has developed over the years; this culminated in the
establishment of various committees and conferences, most notably, the 1972
Stockholm Conference on the Human Environment.
According to the WTO, it “provides an important means of advancing
international environmental goals”, through “its goals, rules, institutions and
forward-looking agenda”. The organization believes that sustainable
development and environmental protection are not mutually exclusive, rather,
they can be mutually supportive.
In this regard, the WTO supports sustainable development and the protection
of the environment by furthering trade, and providing stable and predictable
conditions for innovation and economic growth. In addition, the WTO has
included dispute settlements, rules, and agreements that relate to the
protection of the environment into its agenda, thereby supporting the
international community in its goal to address global environmental
challenges.
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Definition of key terms
Non-Discrimination - the practice or policy that refrains from
discrimination. In a WTO context, non-discrimination is included in the
principles of the trading system. The rules on non-discrimination are there
in order to secure fair conditions of trade worldwide. The rules try to
establish what is fair and unfair, and how nations and their governments
can deal with various conditions.
Tariff - a tax on imports or exports. Tariffs are often viewed as distortions
to the free market. By using tariffs, a country artificially shields an industry
from work markets and it also a way that countries can discriminate
against each other and products produced in different countries.
Typically it is argued that tariffs tend to benefit domestic producers and
governments at the expense of consumers.
Unincorporated PPMs - Processes and Production Methods (PPMs) which
leave no trace in the final product. For instance, this includes cotton
grown using pesticides, with there being no trace of the pesticides in the
cotton.
Environmental and health standards - these are standards set by
countries either upon imports or their own produce, to ensure that that
products are safe for human consumption (i.e. health), are not
detrimental to the environment while in production, and are of a certain
minimum quality. Environmental and health standards usually cover
anything from animal welfare and pest control, to water.
Greenhouse gases (GHGs) - natural gases that occur in the atmosphere
and are responsible for the (enhanced) greenhouse effect. GHGs
include carbon dioxide, methane, nitrous oxide and water vapour.
Carbon dioxide is the main culprit of the enhanced greenhouse effect –
CO2 emissions have risen worldwide at an unprecedented rate due to
human activity with connection to industrialization
Key Concepts and Treaties1
Doha Development Agenda (DDA) - the current trade-negotiation round of
the WTO, under which the Bali Package was negotiated. Main objectives
include lowering of the trade barriers and facilitating global trade. These
objectives are at the forefront of the Package and understanding the DDA is
important for any further negotiations.
1 Important resolutions, agreement and alliances for the topic (to be further researched by delegates)
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Multilateral environmental agreements (MEAs) - legally binding
agreements between three or more states that relate to the environment.
MEAs make up a substantial part of the international environmental law body.
United Nations Framework Convention on Climate Change (UNFCCC) - an
international environmental treaty with the main objective to stabilize
greenhouse gases and their concentration in the atmosphere at a level that
would prevent dangerous changes in world climate. Because it is a framework
treaty, it sets no binding emission targets and contain no enforcement
mechanisms. The aim of the framework convention is to outline the ways in
which specific international treaties (“protocols”) can be negotiated, and
according to which principles. Most recently the 21st Conference of the Parties
(COP21) was held in Paris where an important agreement was reached.
Statement of the Problem
Environmental protection and preservation have been enshrined in the 1994
Marrakesh Agreement and Declaration as one of the main objectives of the
WTO. Member states of the WTO are empowered to protect the environment
while ensuring sustainable global development at the same time; for instance,
member states are encouraged to “recogniz[e] that their relations in the field
of trade and economic endeavor should be conducted with a view to rais[e]
standards of living, ensur[e] full employment and a large and steadily growing
volume of real income and effective demand in accordance with the
objective of sustainable development, seeking both to protect and preserve
the environment.”
Member states are encouraged to adopt multilateral environmental trade
agreements which comply with conditions set by the WTO and member states
are guaranteed equal rights under these trade conditions. However, because
member states implement environmental policies within their national
boundaries, national sovereignty remains in place. Nevertheless, the WTO
acknowledges the significance of state-centred environmental laws and
respects the sovereignty of member states.
Multilateral Environmental Agreements (MEAs) are agreements that play a
fundamental role in shaping the context of both national and international
environmental laws, as well as setting the global agenda with regards to
environmental issues. According to the WTO, MEAs “complement national
legislation and bilateral or regional agreements, and form the overarching
international legal basis for global efforts to address particular environmental
issues”.
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There are currently over 250 MEAs enforced globally dealing with various
environmental issues and make up the body of international environmental
law. Some of the more key MEAs:
1. Convention on International Trade in Endangered Species of Wild
Fauna and Flora (CITES)
2. Convention on the Conservation of Antarctic Marine Living
Resources (CCAMLR)
3. International Convention for the Conservation of Atlantic Tunas
(ICCAT)
4. United Nations Fish Stocks Agreement (UNFSA)
5. International Tropical Timber Agreement (ITTA)
6. International Plant Protection Convention (IPPC)
7. Convention on Biological Diversity (CBD)
a. Nagoya Protocol on Access to Genetic Resources
and the Fair and Equitable Sharing of Benefits Arising from their
Utilization to the Convention on Biological Diversity
b. Cartagena Protocol on Biosafety to the Convention
on Biological Diversity
i. Nagoya – Kuala Lumpur Supplementary
Protocol on Liability and Redress to the Cartagena Protocol on
Biosafety
8. The Vienna Convention on Substances that Deplete the Ozone
Layer and the Montreal Protocol
9. United Nations Framework Convention on Climate Change
(UNFCCC)
a. Kyoto Protocol to the UNFCCC
10. Basel Convention on the Control of Transboundary Movements of
Hazardous Wastes and their Disposal
11. Stockholm Convention on Persistent Organic Pollutants
The main contention of the topic could be summarised in two ways: not only is
there an increased pressure by developed countries to reconcile
incompatibilities between trade and environmental policies, there is also a
growing concern from developing countries that the environment will be
prioritised over international development. Indeed, the question of an
attached “green” conditionality clause to trade would be extremely worrying
to member states without the technological capability to produce sustainably.
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Brief History
A Committee on Trade and Environment (CTE) was established in 1994,
composed of all member states and a number of observers from
intergovernmental organisations. The main role of the CTE was to identify
trade-environmental relationships and to make policy recommendations on
the multilateral trading system, aimed at promoting sustainable development.
The Committee on Trade and Environment Special Session (CTESS) was also
founded in 2001, with the purpose of negotiating trade and environmental
issues during the Doha Ministerial Conference of 2001. These two committees
serve as an effective backdrop to discuss the issue at hand today.
The Doha Ministerial Declaration has specifically focused on three issues
related to the environment and trade, namely:
1. Negotiations on the relationship between WTO rules and specific
trade obligations set out in MEAs.
2. Negotiations on procedures for information exchange between
MEAs and the WTO, and on the criteria for the granting of observer status
in the WTO.
3. Negotiations on the reduction or elimination of tariff and non-tariff
barriers to environmental goods and services.
Effect of Trade Liberalisation on the Environment
According to the WTO, trade liberalisation is not the sole cause of
environmental degradation, nor are trade instruments “the first-best policy for
addressing environmental problems”. The benefits of removing trade
restrictions are often indirect and hard to identify; however, given the positive
relationship between trade liberalisation and better environmental quality, it is
prudent to consider these benefits. These benefits have been summarised in
the table below.
Benefits
Increased efficiency in factor-use and consumption patterns through
greater competition
Poverty reduction through greater trade and sustainable growth
Greater availability of environment-related goods and services due to
increased market access
Greater international cooperation through a continuing process of
multilateral negotiations
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Compatibility
Issues of compatibility may arise when MEAs are enforced; for instance, a MEA
could authorise trade in a specific product between its parties, however, ban
trade in the same product with countries that have not signed the agreement.
This is in clear violation of WTO’s non-discrimination policy – the “most favoured
nation treatment” – which allows member states to grant “equivalent
treatment to the same products imported from any WTO member country”.
Nevertheless, no major dispute involving MEAs in international trade has taken
place as of yet.
Collaboration
The collaboration between the secretariats of the WTO and MEAs have
allowed for the development of trade and environment regimes. These include
measures, such as the establishment of the Plan of Implementation of the 2002
World Summit on Sustainable Development (WSSD) in Johannesburg. In
addition, the WTO has collaborated with different organisations, such as UNEP,
on issues including the exchange of information and the provision of technical
assistance to developing countries on trade and the environment.
Market Access
According to the WTO, the issue of environmental measures on market access
is vital in sustaining existing complementarities between trade and
environmental policy-making. This is especially so in developing countries –
many of the products from developing countries are often “blocked” from
being imported due to strict environmental and health standards. These
standards, while legitimate in nature, are often inappropriate in terms of scale.
Therefore, there is a need to strike a balance between increasing market
access and environmental protection. Delegates could consider measures
that are not only consistent with WTO rules, but also take into account the
capabilities of developing countries, as well as the legitimate legal framework
of the importing country. In addition, more emphasis should be placed on
identifying trade opportunities for sustainable growth to support the creation
of markets for environmentally-friendly goods and services.
Labelling Requirements
Labelling and handling requirements for environmental purposes are knotty
issues to begin with, while these schemes have become more complex and
more diverse over the years. With the objective of providing consumers with
information about environmentally friendly products, these schemes are less
trade restrictive than other instruments. However, it is important to note that
developing countries are at a disadvantage due to limited participation;
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therefore, there is a need to better involve them in the establishment of
environmental standards and regulations. It has also been agreed that these
schemes should be non-discriminatory in nature to prevent them from being
unnecessary barriers to trade.
In addition, there are several contentions when tackling the issue of labelling
and handling.
● Unincorporated PPMs
o Contention 1: Member states still disagree over the WTO
consistency of measured based on unincorporated PPMs. Many developing
countries believe that the discrimination between products based on
unincorporated PPMs should be ruled WTO inconsistent.
● The TBT Agreement
o The Agreement on Technical Barriers to Trade (TBT) is an
agreement that frames the rights and obligations for both mandatory and
voluntary labelling programmes.
o Contention 1: There is an increasing use of process-based
regulations rather than product-based standards.
o Contention 2: There is a divergence between the WTO and
developing countries over the recognition of equivalence of trading norms.
The WTO urges member states to recognise equivalency, given the same final
objective; developing countries believe that the recognition of the
equivalency of their own certification systems is an area of concern.
● Appropriateness of Forum
o Contention 1: Some member states view the CTE as the ideal
committee to discuss the issue of environmental labelling as it had been given
the mandate to do so by the Doha Ministerial Declaration. However, other
members contend that the TBT Committee would be more appropriate as it is
already discussing the issue of labelling.
● Handling
o Contention 1: Vague and diverse selection criteria in handling
requirements. For instance, wood is used for packaging in many Asian
countries, as opposed to being deemed as unrecyclable in Europe.
Bloc Positions
Developing countries. Developing countries are often “blocked” from being
imported (or being able to export to developed countries) because of strict
environmental standards. They will potentially want to push for a more
balanced approach between market access and environmental protection
(depending on what the national policy and practice is with regards to
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general environmental protection). Import rules on this particular point
could be something that developing countries could potentially have a strong
position on. Technology sharing in order to help them develop and achieve
sustainable development would be another consideration that they could
push for (as often they do not have the capabilities themselves).
Developed countries. They would wish to maintain their environment and
health standards because they use them for the benefit of their citizens and
their own environment which are deemed important (former probably more
so than the latter). They would probably agree to new measures on
technology sharing, but it depends on what these measures would be.
Questions a Resolution Should Address
One important note that delegates should keep in mind is that the WTO is not
an environmental protection agency. In other words, the competence of the
WTO is limited to international trade or trade-related aspects, and the WTO
does not have specific expertise on environmental matters. It is in the
committee’s interest to discuss environmental issues and consequences, but
these should not take up the bulk of the debate. Rather, the focus should be
on how reforming trade could impact the environment.
In order to facilitate WTO and MEA Secretariat cooperation, MEA Secretariats
should be granted observer status at the WTO. Indeed, several MEA
Secretariats already have been granted observer status at the CET. The
observer status of MEA Secretariats is important to enhance the participation
of MEA Secretariats and other related international bodies/organizations in the
work of various WTO committees, not just CET.
The existing cooperation between WTO and MEA secretariats should be
formalized. Additional measures to avoid potential conflict between WTO and
MEA rules should be taken. One way of doing this would be by strengthening
the cooperation between trade and environmental government agencies on
a national scale2.
It is unclear what role trade will play in the climate change agenda post-2015
(Paris COP21). Trade measures could be in the climate change agreements
(e.g. when reducing global GHG emissions). And such an agreement should
make sure that it complies with the WTO rules in order to be used successfully
when tackling climate change. This will happen under the UNFCCC and the
2 https://cites.org/sites/default/files/i/news/2015/CITES_WTO_Brochure_72.pdf
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WTO can do little about this. However, the WTO could seek to modify its
rules to become more open to trade measures that are used to address
climate change as well as open markets for environmentally-friendly goods
and services (see section “market access” above). The identification of trade
opportunities for sustainable growth to support the creation of markets for
environmentally-friendly goods and services. Such measures/recognition
could help in improving the relationship between the UNFCCC and WTO.
Further Reading “The World Trade Organization (WTO) and Multilateral Environmental Agreements
(MEAs)” by IISD - focuses largely on WTO-UNFCCC relationship but has some
interesting points about the future of WTO-MEA relationships
https://www.iisd.org/pdf/2010/matrix_wto_meas.pdf
“Trade and environment” - a WTO web-link that links to a lot of the relevant
information within WTO about what is done with regards to environment
https://www.wto.org/english/tratop_e/envir_e/envir_e.htm
“The Doha mandate on multilateral environmental agreements (MEAs)” - a brief
overview of what is mandated to be done in the Doha rounds
https://www.wto.org/english/tratop_e/envir_e/envir_neg_mea_e.htm
“WTO Matrix on Trade-Related Measures Pursuant to Selected Multilateral
Environmental Agreements (MEAs)” - around 20/250 MEAs provide provisions on
trade (they are named here) and at the bottom of the page a link is included to the
latest Matrix
https://www.wto.org/english/tratop_e/envir_e/envir_matrix_e.htm
“CITES and WTO” - a specific document how the relationship between WTO and
CITES (secretariat) can be improved. (A model for other MEAs? That’s up to
discussion)
https://cites.org/sites/default/files/i/news/2015/CITES_WTO_Brochure_72.pdf
Sources https://www.wto.org/english/tratop_e/envir_e/envir_neg_mea_e.htmhttps://www.wto
.org/english/tratop_e/envir_e/envir_neg_mea_e.htm https://www.wto.org/english/res_e/booksp_e/trade_env_e.pdfhttps://www.wto.org/e
nglish/res_e/booksp_e/trade_env_e.pdf https://www.wto.org/english/tratop_e/envir_e/envir_matrix_e.htmhttps://www.wto.org
/english/tratop_e/envir_e/envir_matrix_e.htm http://www.unep.org/delc/MEAImplementationSupport/tabid/54401/Default.aspxhtt
p://www.unep.org/delc/MEAImplementationSupport/tabid/54401/Default.aspx http://www.baylor.edu/content/services/document.php/95770http://www.baylor.edu
/content/services/document.php/95770 https://www.wto.org/english/thewto_e/minist_e/min03_e/brief_e/brief25_e.htmhttps:
//www.wto.org/english/thewto_e/minist_e/min03_e/brief_e/brief25_e.htm https://www.wto.org/english/thewto_e/minist_e/min03_e/brief_e/brief14_e.htmhttps:
//www.wto.org/english/thewto_e/minist_e/min03_e/brief_e/brief14_e.htm
https://www.wto.org/english/tratop_e/envir_e/envir_e.htmhttps://www.wto.org/english
/tratop_e/envir_e/envir_e.htm
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Topic B: The Bali Package: Renewing the
world trade negotiation agenda
Introduction
The Bali package is a comprehensive multilateral trade agreement reached
at the 2013 WTO ministerial conference. The Package was not overburdened
by the Doha Development Agenda (DDA), of which the scope exceeds the
Package, and so it came as relief since the Doha talks have repeatedly failed
to progress.
The package consists of ten separate decisions, which cover the following
four areas:
Trade facilitation
Agriculture
Cotton
Development and Least Developed Country (LDC) issues3
In broad terms, the Package aimed to reduce both tariff and non-tariff barriers,
as well as simplify the bureaucratic process linked to trade and lower subsidies4.
One estimation from the Peterson Institute for International Economics put the
potential gains of the package at nearly an additional creation of 21 million
jobs and a global GDP increase of $960 billion5.
The Package was not agreed upon easily - opposition came from various sides,
most notably India and the Bolivarian Block (Bolivia, Ecuador, Cuba,
3 https://www.wto.org/english/thewto_e/minist_e/mc9_e/balideclaration_e.htm 4 http://www.dw.com/en/wto-bali-agreement-expected-to-boost-growth/a-17278088 5 http://www.iie.com/publications/papers/hufbauer-schott20130614ppt.pdf
LONDON INTERNATIONAL MODEL UNITED NATIONS 2016 .
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Nicaragua and Venezuela). The former wanted to maintain its food
subsidies for the poor, and the latter sought a clause condemning the U.S.
trade embargo against Cuba. An agreement was reached in both cases:
India was allowed to continue its food subsidy programme within strict limits
and agreed to reach a final deal within the next two years, while the Bolivarian
Block agreed on a compromise formulation that highlighted the principles of
non-discrimination6.
The WTO is facing increasing pressure from plurilateral agreements – most
notably the Trans-Pacific Partnership (TPP) and Trans-Atlantic Trade and
Investment Partnership (TTIP) – which would shift governance of trade away
from the WTO.
The Package still has considerable shortcomings as many issues of the DDA
remain unsolved, including trade and environment, intellectual property,
dispute settlement, services, and e-commerce7. It also faces criticism, notably
from developing countries that claim the Package does too little to tackle
global trade imbalances. Nonetheless, the Package was largely perceived as
one of the most important international agreements in last few years.
Key terms
Tariff - a tax on imports or exports. Tariffs are often viewed as distortions to the
free market. By using tariffs, a country artificially shields an industry from the
workings of markets and can discriminate against products produced by other
countries. Typically it is argued that tariffs tend to benefit domestic producers
and governments at the expense of consumers.
Tariff binding - a ceiling above which a state cannot apply a tariff, usually
created in WTO agreements.
Non-Discrimination - the practice or policy that refrains from discrimination. In
a WTO context, non-discrimination is included in the principles of the trading
system. The rules on non-discrimination are there in order to secure fair
conditions of trade worldwide. The rules try to establish what is fair and unfair,
and how nations and their governments can deal with various conditions.
A subsidy - a form of financial aid or support that is extended to an economic
sector, with the aim of promoting economic policy. Subsidies are usually
6 http://www.imd.org/research/challenges/TC095-13-wto-bali-package-carlos-braga.cfm 7 https://www.wto.org/english/tratop_e/dda_e/status_e/brief00_e.htm
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extended and given by national governments. Subsidies can be both
direct (e.g. cash) and indirect (e.g. tax breaks). The most common form of
subsidies are those that are extended to the producer.
Free Trade blocs/agreements - based upon an intergovernmental agreement
(between two or more states), where barriers to trade (both tariff and non-
tariff) are reduced or eliminated among the states that are part of the
agreement. Free trade blocs can be a part of regional intergovernmental
organizations, such as the EU. The best known free trade blocs are the EU and
NAFTA; there are negotiations happening for the establishment of various other
free trade blocs. Free trade blocs are often met with scepticism because they
are said to distort the free market and be discriminatory towards those nations
that are not within the bloc.
Key Concepts and Treaties8
Doha Development Agenda - the current trade-negotiation round of the WTO,
under which the Package was negotiated. Main objectives include lowering
of the trade barriers and facilitating global trade. These objectives are at the
forefront of the Bali Package and understanding the DDA is important for any
further negotiations.
ALBA (aka. Bolivarian Alliance) and the embargo on Cuba - ALBA is an
intergovernmental organization based on the idea of social, political and
economic integration of Latin American and Caribbean countries. ALBA is
usually associated with socialistic and social democratic government. The U.S.
embargo on Cuba is an economic and financial embargo imposed by the U.S.
on Cuba. It was first imposed in 1960 and has not been lifted yet. The embargo
was a consequence of Cuba nationalizing American-owned Cuban oil
refineries without compensation. Despite the embargo, the U.S. is still the fifth
largest exporter to Cuba. Every year since 1992, the UNGA has passed a
resolution condemning the on-going impact of the embargo.
The Trade Facilitation Agreement - one of the agreements in the Bali Package.
Delegates should read upon this further in detail so that a better understanding
can be developed on the topic and the debate is in line with the already
existing provisions and rules.
8 Important resolutions, agreement and alliances for the topic (to be further researched by delegates).
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General Agreement on Tariffs and Trade (GATT) - it is a multilateral
agreement that regulates international trade. GATT is the predecessor of WTO
and its rules. GATT is still in effect under the current WTO framework.
Non-agricultural market access (NAMA) - NAMA products are all the products
that are not covered by the Agreement of Agriculture, especially industrial
products and manufactured goods. NAMA products are important as they
account for almost 90% of the world merchandise exports9. The WTO’s Uruguay
Round achieved the reduction of tariffs in developing countries and new tariff
bindings in developed countries, and it was a significant improvement in
market access for NAMA products. However, NAMA is still important as tariffs
continue to be a barrier in world trade.
Statement of the Problem
As mentioned before, the Package covers four specific areas of international
trade. This section is dedicated to explaining the details of the Package,
including what it does and does not cover.
Trade facilitation
The issue of trade facilitation is at the core of the package, since it makes up
almost half of the content published. The annex of the Trade Facilitation
Agreement (TFA) is subdivided into two sections. The first section covers
general rules that apply to all signatories, and the second section specifically
deals with differential treatment of developing countries.
The members are required to make all information concerning international
trade easily accessible and to all of the members, traders and other interested
parties in a non-discriminatory way. This covers import, export, transit
procedures, tariffs, regulations, prohibitions and appeal procedures among
others.
A change in the national legislation, which falls under mentioned provisions,
has to be published with prior notice and an opportunity has to be given to
the affected parties to comment on the proposed changes. The right to
appeal has been strengthened by giving every person with customs issues the
right to administrative or even judicial appeal. Customs cooperation between
the member and border agency cooperation are to be enhanced.
The “Special and Differential Treatment Provisions for Developing Country
Members and Least Developed Country Members” has three different
categories of provisions:
9 https://www.wto.org/english/tratop_e/markacc_e/nama_negotiations_e.htm
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a. Provisions to be implemented after the package has entered into
force,
b. Provisions that shall be designated for implementation after a
transitional period, which is to be determined by the Member within one
year after its signing,
c. Provisions that shall to be designated for implementation after a
transitional period “and requiring the acquisition of implementation
capacity through the provision of assistance and support for capacity
building”, which means that, similar to B, latest one year after the
agreement was signed the period has to be determined by the
member, but in the following 18 months donors and experts will assist the
member with the implementation,
It has to be noted, that Members were given the opportunity to extend the
one year period, but the WTO had to be notified at least 120 day before the
expiration of the implementation date10.
Agriculture
The greatest issue in agriculture was the opposition of India of measures related
to its public stockpiling scheme. India buys up rice and grains from its farmers
over world market price and stockpiles to prevent food shortages among the
poor. They threatened to veto the package, if their demands were not met11.
The ministerial conference decided to urge all members to refrain from using
the WTO Dispute Settlement Mechanism, if a developing member were not to
comply with the Agreement on Agriculture. It was decided that a working
programme was to search for a permanent solution until the 11th Ministerial
Conference (to be held in 2017). This was commonly known as the “Peace
clause”12.
Another provision is the “Tariff quota administration”. During the Uruguay round
non-tariff barriers were replaced by tariff barriers, mainly in the form of so-
called “tariff rate quotas”, which places tariffs on imports depending on the
amount1314. The package now specified the fill rates (the percentage of
agricultural products, which will be tariffed) to be no higher than 65%. The
process of the tariff setting will be monitored by the WTO15.
10 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci36_e.htm 11 http://www.dw.com/en/opinion-bali-is-better-than-nothing/a-17278191 12 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci38_e.htm 13 http://www.ers.usda.gov/topics/international-markets-trade/trade-policy/world-trade-
organization-%28wto%29/agreement-on-agriculture-and-beyond.aspx 14 http://www.fao.org/docrep/003/x7353e/X7353e05.htm 15 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci39_e.htm
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Lastly the agricultural agreement condemned every form of export
subsidies and committed the WTO to undertake an examination process on
the progress of reducing said subsidies16
Cotton
Recognizing that cotton is an important source of income in many
developing countries, the ministerial conference decided that it was to be
exempted from the general lowering of subsidies. However the WTO and its
Director-General are monitoring the need for “development assistance” in
this area17.
Development and Least Developed Country (LDC) issues
These provisions are dealing with the issue of how the international trade
system can be effectively rebalanced in order to grant the LDCs a fair market
access. It allows for LDCs to implement so-called “preferential rules of origin”,
which means that they are allowed to target products from specific countries
and impose individual barriers on them1819. It furthermore urged the developed
members to reduce barriers in order for the LDCs to gain a so-called “Duty-free
and Quota-free (DFQF)” market access, since 97% of all products originating
from LDCs were subject to some type of tariff20. A Monitoring Mechanism was
established in order to watch over the integration of the LDCs in the
international trading system21.
Shortcomings – What needs to be done after Bali?
The obvious issues that needs to be addressed in the Post-Bali agenda is
agriculture. The ministerial conference itself has said so in its conclusion of the
package and has reiterated its commitment to the DDA22. The Package as a
whole received a rather mixed feedback. While developed countries, such as
the US and EU members, mostly welcomed the deal, most developing nations
have remained critical. There was widespread scepticism as to whether the
global trade imbalances would be reduced23 if the developed countries
honestly honoured the agreement.
16 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci40_e.htm 17 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci41_e.htm 18https://www.wto.org/english/tratop_e/roi_e/roi_info_e.htm 19 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci42_e.htm 20 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci44_e.htm 21 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci45_e.htm 22 https://www.wto.org/english/thewto_e/minist_e/mc9_e/balideclaration_e.htm 23 http://www.atimes.com/atimes/Global_Economy/GECON-02-171213.html
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LONDON INTERNATIONAL MODEL UNITED NATIONS 2016 .
As mentioned earlier, one of the main clashes was the issue of stockpiling
and subsidizing food by India. A bilateral agreement between India and the
U.S. from November 14th, 2014, has resolved that issue, with the U.S. allowing
India to continue its programme indefinitely24.
The initial compromise with India was subject to criticism, because it was
undermining the principle of non-discrimination. However India has also been
supported by organizations critical of globalization, who feel that a
liberalization of trade comes at the expense of the poorest of the poor25. Even
though the package has tackled several issues regarding the agricultural
sector the topic of market access has not been satisfyingly settled. Agricultural
markets are still one of the most protected and sheltered by high tariffs.
An issue that has not been covered by the WTO at all are exchange rates,
even though they play a significant role when it comes to worldwide trade.
Technically exchange rate monitoring or control is a task of the IMF, but
“quantitative easing” programmes by the American FED, the European
Central Bank or the Bank of Japan have had massive spill overs in the sense
that they artificially lower the exchange rate and therefore make the exports
of these countries cheaper than they actually are. China has been accused
for years of keeping the Yuan undervalued as a way of boosting its exports26.
In the past few years many countries have been pursuing a free trade agenda
on a bilateral or regional basis. Agreements such as NAFTA, CETA, TTIP or TPP
(not to mention the EU) have made the WTO seem, in parts, unnecessary.
Given that it took 12 years from the start of the Doha talks to agree upon the
least possible framework cast the impression that the approach the WTO takes,
meaning continuous negotiation between many members, is rather inefficient.
Therefore the package was crucial in creating credibility for the WTO as still an
important actor in international trade agreements27.
Bloc Positions
Least Developed Countries. Taking further measures to tackle the global trade
imbalances stays a priority with these countries. The differentiated treatment
of LDCs will continue be important for them, so anyone or anything
(potentially) threatening these provisions will not be ‘tolerated’ by these
24 http://www.bbc.com/news/business-30033130 25 http://www.dw.com/en/opinion-bali-is-better-than-nothing/a-17278191 26 http://www.voxeu.org/sites/default/files/Building_on_Bali.pdf 27 http://www.voxeu.org/sites/default/files/Building_on_Bali.pdf
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LONDON INTERNATIONAL MODEL UNITED NATIONS 2016 .
countries. However, they are invested in all aspects of the negotiations, as
all of the issues affect them in some way.
Low Income Economies in Transition. These states have a particular interest in
attempting to secure the same rights and treatment that has been afforded
to LDCs. While their goals might not necessarily threaten LDCs and what they
have already accomplished, it is possible that LDCs will be vary of Low Income
Economies in Transition, so they have to try and work together with LDCs (and
maybe gain their support).
Small Vulnerable Economies. These countries are particularly vulnerable to any
economic uncertainties. SVEs have particular focus on three aspects -
agriculture, NAMA and the rules. With regards to agriculture, SVEs want
flexibilities in the pillars of domestic supports and export competition to be
granted to them. With regards to NAMA they wish to apply modality and tariff
reductions.
African group. The African group is interested in all of the aspects of the
negotiation, and does not necessarily prioritize any of the issues. The only
exception of this is the African group states that are part of ACP as they have
agricultural preferences and this will be one of the main topics they will push
for.
The European Union. Similarly to the African group, the EU is invested in all
aspects of the negotiation. It must be noted though, that because the EU is a
free trade bloc, they will be particularly interested in protecting their rights to
stay as such and how the reduction of trade barriers will affect the Union and
its functions.
Agricultural interests. Agriculture is on the main most contentious and most
important topics in the negotiations. Some of the groups that have strong views
and demands for this topic are: Cairns Group, Tropical Products, G-10, G-20,
G-33, Cotton-4, and African Group.28
Questions a Resolution Should Address
While the shortcoming of the Bali Package should be addressed, the Package
should also be used as a building bloc to deliver the broader Doha Agenda.
Various points of this have been mentioned earlier in this study guide and these
can be used as suggestions as to what further can be done in the negotiations.
28 See here and here for negotiation coalitions and a detailed break-down of all groups.
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Agriculture should be one of the main points addressed in a resolution. There
are many interest groups with regards to agriculture, so reaching an
agreement in a resolution might be difficult, but not impossible. Particularly the
exemption of cotton should be revisited. There have been proposals to
change subsidies and open markets29, maybe delegates can come to an
agreement in the session. Market access should also be revisited again
because the agriculture sector as a whole is still highly sheltered by high tariffs.
NAMA product market access is still a big problem. Building upon the Uruguay
rounds, further modifications must be made with regards to NAMA.
The environment is the last “big” topic that should be addressed in a resolution.
Because the Doha rounds are the first significant negotiations on trade and the
environment in the WTO, some provisions should be included in a draft
resolution. In the negotiations there are two key components when it comes to
the environment: freer trade in environmental goods (i.e. clean energy
technology etc.) and environmental agreements (a more specific address of
this component is in topic A of this committee at LIMUN).
Further reading:
“What are they negotiating?” - a good resource with links to all the different
parallel negotiations that are happening in the Doha rounds (which is kept up
to date).
https://www.wto.org/english/tratop_e/dda_e/update_e.htm
“Ninth WTO Ministerial Conference” - all the information of the ministerial
conference where the Bali Package was adopted
https://www.wto.org/english/thewto_e/minist_e/mc9_e/mc9_e.htm
The WTO website will be your best friend in general - because of the WTO aim
towards transparency, around 95% of the documents/information that you
need can be found on there.
29 https://www.wto.org/english/tratop_e/agric_e/cotton_e.htm
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LONDON INTERNATIONAL MODEL UNITED NATIONS 2016 .
Conference Information When looking for information regarding LIMUN 2016 (and
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Agenda & Rules of Procedure
The agenda for the 2016 conference is available online at
www.limun.org.uk/agenda
The Rules of Procedure can be accessed here:
http://limun.org.uk/rules
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LONDON INTERNATIONAL MODEL UNITED NATIONS 2016 .
Position Papers
What is a position paper?
A position paper is a statement of policy, which is intended to
communicate an overall position of a country on a particular topic
debated in the committee. Position papers should be brief and
outline the general policies rather than specific measures.
Each delegate should submit one position paper per topic to be
debated by the committee (note: most of the committees have
two proposed topics). Each paper should be approximately one
page per topic.
LIMUN offers a short guide on how to write a position paper. It is
available on our website:
http://limun.org.uk/FCKfiles/File/PP_Guide.pdf
Deadlines
The deadline for the submission of delegates’ position papers is 20
February 2016. Failure to submit by this deadline will render
delegates ineligible for Diplomacy Awards.
Positions Papers will have to be submitted in a publicly-accessible
Dropbox, to be provided by committee directors. At their
discretion, directors may provide feedback in individuals cases if so
requested.
The most worthy work submitted in a committee will earn the
delegate a Best Position Paper Award. The length of any one paper
should not exceed 500 words.
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LONDON INTERNATIONAL MODEL UNITED NATIONS 2016 .
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LONDON INTERNATIONAL MODEL UNITED NATIONS 2016 .