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Trade Policy Workshop for MPs in the East Africa Community. 27-28 May 2010, Arusha, Tanzania Trade Negotiations and Commercial Diplomacy Branch, UNCTAD, Geneva. Trade Policy Workshop for MPs in the East Africa Community. Organization of presentation :
27-28 May 2010, Arusha, Tanzania
Trade Negotiations and Commercial Diplomacy Branch,
Organization of presentation:
1.Structure of the Multilateral Trading System (MTS) from the GATT 1947 to the WTO (1995), incl main principles
2.Functioning of the MTS:
- Provisions of the GATT and WTO agreements that could assist in growth and development
- The WTO’s Dispute Settlement Mechanism
3. Successful trade and development strategies for mitigating the impact of global economic and financial crisis.
UNCTADThe Uruguay Round agenda (1994):agriculture services TRIPSTRIMSenvironment= rules on somedomestic policieswithin the border
The Doha agenda
= rules on more domestic policies
within the border
The GATT agenda
for trade in goods (non-agric)
Cross-cutting issues :
Special and differential treatment and Implementation issues
LDCs and small economies
Trade, debt and finance, and transfer of technology
Depth and number of issues of domestic economic policy (inside the borders) included in multilateral trading system(services, intellectual property, investments, competition, government procurement, trade facilitation….)
Level of liberalisation of
(tariffs, non tariffs barriers, rules of origin, SPS/TBTs, quotas, AD…)
Number of countries part of the
multilateral trading system
*original idea developed by Craig van Grasstek
Uruguay Round (1986-94)
(till the 80s)
Various issues of domestic policy:
slow market access liberalisation
Little intrusion in domestic policies
(plurilateral codes, subsidies, purchases…)
fast market access liberalisation
from approx. 90 to 128 countries
from 23 to approx. 80 countries
And keeps changing….
Larger impact on domestic policies:
Services, Singapore issues
Liberalisation keeps moving but it is short in touching sensitive issues for developed countries
(AD, tariffs peaks, rules of origin, standards etc.)
From 153 countries part of the WTO to….?
Industrialised countries consider that their liberalisation regarding market access has almost reached its maximum limits. Their interests are thus concentrated on advocating further liberalisation (at and within the borders) in developing countries.
1. Most Favoured Nation (MFN) Treatment (Article I)
2. National Treatment (Article III)
3. Publication and Administration of Trade Regulations-Transparency (Article X)
Since the Annecy Round (1949), seven Rounds have been concluded; the last being the Uruguay Round( 1986-1994).
Provisions of the GATT and WTO which could be availed of:
1. Agri. Subsidies - ( export Art 9.1; domestic support Art 6.2 & 6.4 )
2. Sanitary and Phytosanitary Measures - Harmonization to international standards, equivalence; adaptation to Regional Conditions, Mutual Recognition Agreements.
3. Technical Barriers to Trade- Conformity Assessment( Art 5, TBT);
4. Private sector participation - crucial & beneficial in the development of standards and technical regulations.
5. Trade Related Investment Measures( TRIMS)- only to the LDCs;
6. Special Economic Zones ( SEZ) or Export Processing Zones ( EPZ)-
13.Rules of Origin( ROO) - and their use. As a CU, should use harmonized ROO. Including the provisions of Art^2 ( h) and Art 3 (d) of Annex II of the WTO Agreement on ROO.
14. Services sector – new area of growth and expansion.
15. Intellectual Property Rights, notwithstanding the transitional period till 2013 for implementation of the TRIPS Agreement and till 2016 for provisions related to patent protection for pharmaceuticals. This provides the legal certainties and assurances to investors, domestic and foreign.
16. GATT Art V- Freedom of transit
17. GATT Art VIII- Fees and Formalities connected with Importation and Exportation.
18. GATT Art X- Transparency, including appeals process- independent of the agencies entrusted with administrative enforcement.
19. The NG on Trade Facilitation- concepts such as the use of Single Window, risk assessment and release of goods based on prior information, eliminating the use of pre-shipment inspection etc.
20. Under the NAMA negotiations, proposals to do away with the use of consular fees.
21. Trade remedies/ trade defense mechanisms
22. Anti Dumping, safeguards, countervailing measures duties
23. The Dispute Settlement Mechanism of the WTO
24. Apart from this formal trade adjudication process, there are also informal channels, such as through the SPS and TBT Committees- for issues related to these committees.
Addressing the ‘development crisis’ by promoting sustained trade and economic recovery and more equitable, people-centered and sustainable development.
The decline & subsequent recovery, in global trade involved all economic sectors.
Providing greater market access & entry for exports of developing countries:
Sources of ‘green’ growth production, trade & development: