wto today: a new negotiating round thomas cottier professor of law of counsel, baker&mckenzie...

WTO Today:A New Negotiating Round

Thomas Cottier Professor of Law

of Counsel, Baker&McKenzieSantiago de Chile 13.11.2000

10.11.2000 worldtradeinstitute.ch 2

Principles of WTO Law

• Non-discrimination of foreign products (goods and services)

• Gradual improvement of market access (Trade Rounds) – Tariff Barriers (average 3-5%, except agro)– Non-Tariff Barriers (Dumping, Subsidies,

TBTs, SPS)

• Regulating Conditions of Competition


WTO: A Rule-based System

• Traditions of Trade Diplomacy and Power

• WTO: 25‘000 pages‘ Agreement

• Legal Dispute Settlement Mechanism – Panels– Appellate Body Review

• Enforcement of Obligations

• Political and Domestic Implications


Towards a New Round

• The great Legacy of the Uruguay Round: expansion and implementation

• The Legacy of the Seattle Ministerial Meeting (December 1999)– premature agenda – conceptually unprepared– the impact of NGOs (transparency, democracy)


Implementing the Uruguay Round

• LDCs are behind in process of implementation (absorption)

• Request for additional periods, technical assistance and review of agreements (TRIPs) and standstill and dispute settlement

• Need for closer cooperation with WIPO, World Bank and Regional Institutions (constitutional challenge)


Comprehensive or Sectoral Negotiations?

• Limited Scope in a New Round• Art. III of the WTO Charter: “The WTO shall

provide a forum for negotiations...”• Sectoral Provisions in respective Agreements,

e.g.:– Art. 20 of the Agreement on Agriculture– Art. 19 of the GATS– Art. 27 of the TRIPS– Art. 9 of the TRIMS

• Idea of ongoing Negotiations v. Package deal approach


Sectoral negotiations

• “Both sets of negotiations [Agriculture, Services] are going well. Indeed, we have probably made as much progress this year as we would have done within the context of a wider round.”

Mike Moore, 6 November 2000


Agriculture

• Art. 20 of the Agreement on Agriculture• US:

– substantial reduction of tariffs, export subsidies, and domestic support

– recognition of the legitimate role of government

• Cairns group (including Chile):– stand alone negotiations (not US)– substantial reduction of tariffs– elimination of all export subsidies and domestic

supports


Agriculture• EU and other Europeans:

– willing to negotiate further reduction in export subsidies

– right to pursue rural development policies (multifunctionality)

– importance of consumer protection, e.g. through the regulation of labelling

• Developing countries:– creation of a ‘Development Box’ and special

safeguards


Services

• Art. 19 of the GATS

• Two phases:– ‘rules-making’ phase (rules on safeguards,

subsidies, and government procurement)– ‘request and offer’ phase (negotiations of

further market access)– Inclusion of sectors (maritime transports)


Investment

• Art. 9 of the TRIMS

• Failure to successfully negotiate a Multilateral Agreement on Investment (MAI)

• Establishment of a Working Group

• Main issue: Local Content Requirements

• No negotiations currently


Competition Policy

• Art. 9 of the TRIMS

• Establishment of a Working Group

• Supportive in Establishment of Competition Authorities in many Countries

• No negotiations currently in WTO due to US resistence

• US proposes Global Competition Forum


Environment

• Claims to give environmental standards a place more prominent in the WTO

• Strenuous resistance from developing countries (fear of disguised protectionism)

• New issue of genetically modified agricultural commodities: role of science and role consumer preferences? (SPS Agreement)


Intellectual Property Rights

• Consolidation of TRIPs Agreement (Implementation)

• EC and Switzerland press for improved protection of geographical indications (wines)

• Patenting of life forms and protection of traditional knowledge will be a key issue


Labour Issues

• Dichotomy WTO - ILO• US with EC support presses to

institutionalize the link between trade and labour within the framework of the WTO

• Developing countries resist labour standards• Quest for Minimal standard definition and

advantages for LCDs having them in foreign investment


Electronic Commerce

• Examination of issues related to electronic commerce by the Goods, Services and TRIPS Councils, and the Trade and Development Committee

• Customs duties on electronic transmissions?• US presses for free of charge rules while

other countries depend on fiscal revenues


Conclusion

• Consolidation of Uruguay Round Results • Minor Market Access Round, less rule-

making (Agriculture, Services)• Back to Special and Differential Treatment?• Prime Importance of Dispute Settlement

and Case Law • Accession of China • Conceptual Work ahead (transparency,

democratic accountability)

wto today: a new negotiating round thomas cottier professor of law of counsel, baker&mckenzie...

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