wto a presentation to kfupm oct 18, 2003 fawaz al-alamy deputy minister of commerce & industry...
TRANSCRIPT
WTO
A PRESENTATION TO KFUPMOCT 18, 2003
FAWAZ AL-ALAMYDEPUTY MINISTER OF COMMERCE & INDUSTRY
KINGDOM OF SAUDI ARABIA
contents What is the WTO Accession process Bilateral negotiations 1. Goods 2. Services Multilateral issues 1. WPR 2. COMMITMENTS Legislation The SWOT Analysis A “Cost-Benefit” Analysis
WHAT IS THE WTO
1
THE THIRD SIDE OF THE TRIANGLE
I M FW B
W T O
The
Bretton Woods
Institutions
2
A GLOBAL VILLAGE
GATT 47 , ONLY 27 CONTRACTING PARTIES WTO 95 , 129 MEMBER COUNTRIES GATT , GATS , TRIPS & TRIMS TODAY , 148 COUNTRIES CONTROL : 80% OF WORLD TRADE 90% OF FINANTIAL TRANSACTIONS 92% OF TELECOM & IT 97% OF IPR’s
3
A MEMBER-DRIVEN ORGANIZATION
UNLIKE OTHER WORLD ORGANIZATIONS IDEAS – INNITATIVES – AGREEMENTS 28 AGREEMENTS & INNITIATIVES SINGLE UNDERTAKING PRINCIPLE 4 PILARS ; 1. MARKET ACCESS 2. NATIONAL TREATMENT 3. MFN & RECIPROCITY 4. TRANSPARENCY & PREDICTABILITY
4
A BORDERLESS WORLD
MFN Principle
Market Access &
National Treatment
K S AWTO COUNTRIES
5
THE ACCESSION PROCESS
THE ART OF NEGOTIATION
6
CODIFIED GLOBALIZATION
Protocol of Accession
Bilateral Negotiations
Multilateral Issues
Legislation
29 Agreement
14 Signed
WP Report
Commitment Para's
TRIPS
Customs Valuation
TBT & SPS
Import Licensing7
BILATERAL NEGOTIATIONS
THE CONFRONTATION
8
GOODS (GATT94)
7054 AGRI & NON-AGRI PRODUCTS : 1. ITA, 219 LINE ITEMS 2. CHEMICAL HARMONIZATION 3. ZERO-FOR-ZERO INNITIATIVE ( pharmaceuticals, equipment, steel, wood, cotton, toys, fish & paper ) 4. ARTICLE 20 OF GATT 94 ( health, environment, security, religious ) 11 OTHER SISTER AGREEMENTS
9
GOODS OFFERS
Average Rate
1997 1998 1999 2003
Requests
0%
10%
20%
30%
40%
50%
60%
1st 2nd 3rd CU10
SERVICES (GATS)
12 MAJOR SECTORS WITH;
155 Sub-sectors & 620 Activities In:
Business, Telecom, Distribution, Tourism,
Education, Banking, Insurance, Recreation,
Transportation, Environmental, Engineering,
Health, Audio-visual & Other Services Market Access & National Treatment GATS is the most complicated agreement of WTO
11
Market Access ( Services )
1) Cross Border Supply
2) Consumption Abroad
3) Commercial Presence
4) Movement of Natural Persons
UnboundBound
None
Unbound*12
SERVICES OFFERS
44%
72%
85% 86%
66%
0%
50%
100%
Bahrain Oman Jordan China KSA
Market Access
1995 1999 2001 2001 200213
GOODS
I T A
Zero Tariff
SERVICES
Telecom Agreement
Nominal Cost
Pervasive Computing
THE ELECTRONIC TAP
+
+
+
14
MULTILATERAL ISSUES
THE BATTLE OF IDEAS
15
WORKING PARTY REPORT
A FACTUAL SUMMERY OF THE WP Meetings ANSWERS TO QUESTIONS RELATED TO: 1. INDUSTRY, TRADE & AGRICULTURE 2. PRIVATIZATION & STATE TRADING 3. TAXES, DUTIES, CHARGES & AMS 4. SUBSIDIES, PRICING & LICENCING 5. INVETMENT & ENT MEASURES 6. ENFORCEMENT, DUE PROCESS 7. STANDARDS & SPECIFICATIONS
16
COMMITMENTS
NOTIFICATIONS WITHOUT FLEXIBILITIES ACC4, ACC5 & ACC8 TRANSPARENCY & PREDICTABILITY ENFORCEMENT & IMPLIMENTATION PLURILATERAL MATTERS TRADING ARRANGEMNTS BUSINESS & FISCAL POLICIES
17
LEGISLATION
THE AGONY OF REFORM
18
THE NEW RULES OF THE GAME
IPR LAWS: 1. TRADE MARKS 2. TRADE NAMES 3. COMMERCIAL DATA 4. COPYRIGHT 5. PATENTS
6. INT CIRCUITS LAYOUT & INDUSTRIAL DESIGNS 7. PLANT VARIETIES 8. COMPETITION 9. BORDER MEASURES IMPORT LICENCING SANITARY & PHYTOSANITARY MEASURES TECHNICAL BARRIER TO TRADE CUSTOMS VALUATION
19
THE SHOWDOWN
GENEVA,47 – SEATLE,99 – CANCUN,03 ONE – TWENTY EIGHT – THIRTY TWO ON GOING LIBERALIZATION REGIONALISM VS MULTILATERALISM DEVELOPED VS DEVELOPING ONE WORLD, ONE LAW & ONE VOTE DISPUTE SETTLEMENT BODY
20
THE FUTURE CHALLENGES
UNITED WE WIN, DIVIDED WE LOOSE STRATEGIC ALLIACES ARE REQUIRED TECHNOLOGY EDGE; IS THE FUTURE COMPARATIVE ADVANTAGE; IS A MUST SME’s ARE THE ENGINE OF GROWTH SERVICES RATHER THAN GOODS SPECIAL & DIFFERENTIAL TREATMENT
21
SWOT Analysis
S
T
O + 10
W
10 ــ
• Integrated – Proactive
• DSB ( regulated )
• Employment ( Saudization )
• MKT Access – National Treatment
• FDI ( T & P ) – Services Upgrading
• Confined - Reactive
• Vulnerable - Undersized
• Unemployment
• Single Undertaking
• Stagnation
IN WTO
OUT OF WTO22
A “COST-BENEFIT” ANALYSIS
SECURED AGAINST CHAOS
23
SAUDIZATION TODAY, WE HAVE: 4.5M JOBS IN THE PRIVATE SECTOR, WITH ONLY 10% SAUDIS IN 2020, WE WILL HAVE: 10M JOBS WITH 75% SAUDIS
COMMITMENTS ON ICT 25% ONLY
24
FOREIGHN DIRECT INVESTMENT
EXPONENTIAL FDI INCREASE DUE TO: 1. ECONOMIC REFORM 2. RESTRACTURING STRATEGY 3. UP-TO-DATE LEGISLSTION 4. TRANSPARENCY & PREDICTABILITY 5. ENFORCEMENT & DUE PROCESS 6. COMPARATIVE ADVANTAGE
25
HEALTHY COMPETITION
CONSUMER WIDER CHOICES 148 BORDERLESS MARKETS NO UNILATERAL DECISIONS AD, COUNTERVAILING & SAFEGARDS RULES OF ORIGIN MEASURES FREE TRADE AREAS ARRANGEMENTS FULL INTEGRATION IN WORLD
ECONOMY
26
THANK YOU
27