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1. Commonwealth Secretariat Global Biennial Conference on Small StatesLondon, 28-29 July 2010Hans-Peter Werner, World Trade Organization
2. This indicates just how complex the alliances areThis indicates just how complex the alliances are
3. Work Programme on SVEs Mandate and Legal Framework
Decisions in existing WTO bodies
Doha Development Agenda positions on Agriculture, NAMA, Services, Fisheries Subsidies, Trade Facilitation draft texts
Aid for Trade
4. Mandate and legal framework
WTO Members agreed to create a work programme on small economies at the Doha Ministerial Conference in 2001. This is reflected in paragraph 35 of the Doha Ministerial Declaration which states:
5. The Doha Declaration – DDA
“We agree to a work programme, under the auspices of the General Council, to examine issues relating to the trade of small economies.
6. The objective of this work is to frame responses to the trade-related issues identified for the fuller integration of small, vulnerable economies into the multilateral trading system, and not to create a sub-category of WTO Members.
7.
The General Council shall review the work programme and make recommendations for action to the Fifth Session of the Ministerial Conference.”
Reports to MCs in Hong Kong 2005 and Geneva 2009
Reports to every General Council – 43rd report on progress on 29 July
8. Who are the proponents?
Barbados, Belize, Bolivia, Cuba, Dominican Republic, El Salvador, Fiji, Guatemala, Haiti, Honduras, Jamaica, Mauritius, Nicaragua, Papua New Guinea, Paraguay, Solomon Islands, Sri Lanka, Trinidad and Tobago – But SVE group changes according to the issue
9. Regional reporting mechanism:
Anti-dumping and Subsidies and countervailing measures Agreements
SPS, TBT, Safeguards Agreements
assessments, investigations, calculations, reporting procedures
10. DECISIONS TO DATE Small, vulnerable economies can make use of regional bodies to help them implement their obligations in the areas of SPS, TBT and TRIPS.
October 2006 – General Council agrees with the recommendations of the CTD
11. Concerns with WTO Agreements Article XVI – Subsidies – SVEs seek additional flexibility to use subsidies to promote their economic development, including fiscal incentives which are to be phased out under Article 3:1 (a) of SCV Ag.
12. Subsidies and Countervailing Measures – Procedures for Extensions
Recognizing the economic, financial and development needs, as well as the capacity and administrative contraints of [some] Members in implementing their commitments under the SCM Agreement ….
13. The SCM Committee decides to continue extensions pursuant to Article 27.4 of the SCM Agreement
Extensions until 2013 with a possible two additional years until 31 December 2015.
14. Antigua & Barbuda, Barbados, Belize, Costa Rica, Dominica, Dominican Republic, El Salvador, Fiji, Grenada, Guatemala, Jamaica, Jordan, Mauritius, Panama, Papua New Guinea, St. Kitts and Nevis, St. Lucia, St. Vincent & the Grenadines, Uruguay
15. Programmes Eligible Free Trade and Processing Zone
Research and Development Allowances
Fiscal Incentives
Export Processing Zones
Export Industry Encouragement
Micro and Small Scale Business Enterprise Act
16. Doha Development Agenda Agriculture – revised Draft Modalities
TN/AG/W/4/Rev. 4 – Dec. 2008
An SVE is defined as one whose average share for the period 1999-2004 of world merchandise trade does not exceed 0.16 per cent and of world NAMA trade does not exceed 0.10 per cent and of world agriculture trade does not exceed 0.40 per cent.
17. Key Issues in Agriculture under the three pillars Market Access
Domestic Support
Export Competition
21. Special Safeguard Mechanism Flexibility for least-developed countries and SVEs
With respect to LDCs, the maximum increase over the UR bound rate could be no more than 40% or 40% of the current bound tariff, whichever is higher
With respect to SVEs, the maximum increase over the UR bound rate could be no more than 20% or 20% of the current bound tariff, whichever is higher, for up to a maximum of 10-15% of tariff lines in any given period
22. SVEs – Special Products
Flexibility in the designation of special products – SVEs can deviate from the tiered formula cut for as many tariff lines as they choose to designate as SPs provided they meet the overall average cut of 24%
Products designated as SPs need not be subject to a minimum tariff cut nor designation be guided by the indicators
23. NAMA – Non-agricultural Products 4th revision of Draft Modalities – NAMA TN/MA/W/103/Rev.3 – December 2008
SVEs – those countries having a share of less than 0.1 per cent of world NAMA trade 1999-2001
25. NAMA – Chair’s Draft Modalities Key issues
Formula to be applied - Swiss formula
Flexibilities for developing countries
Flexibilities for countries with low bindings, i.e. countries which have bound less than 35% of tariff lines
Sectoral approach
NTBs
Flexibilities for LDCs, SVEs, RAMS
26. Formula Adoption of a simple Swiss Formula
8 for developed countries
20, 22 and 25 for developing countries
Tariff reduction depends on initial level of the duty
Tariff dependent, non-linear formula; the higher the tariff, the higher the cut
Product coverage to be comprehensive without a priori exclusions
Reductions or elimination on the basis of bound rates
27. Tariff reduction – the formula
28. Flexibility for Small Vulnerable Economies Definition: Share in NAMA trade < 0.1%;
30. Non-reciprocal preferences Fourth revision states:
Two principal preference-granting markets (EC and US) granted:
5 years extended implementation period (i.e. 10 years)
Of which 2 years should be a “grace period” (i.e. no cut)
57 tariff lines for the EC; 29 tariff lines for the USA
Preference granting Members urged to increase their assistance through EIF and A4T; simplify ROs
“Disproportionately affected” Members should be granted normal implementation period, through a waiver, on a sub-set of lines:
In the EC: Pakistan and Sri Lanka.
In the USA: Bangladesh, Cambodia, Nepal, Pakistan and Sri Lanka
31. SERVICES Request and Offer
Developing country participation in services trade shall be facilitated through the liberalization of market access in sectors and modes of supply of export interest to them (specific requests)
32. SERVICES Opening shall take into account the level of development of individual Members
Ensure that Article XIX (GATS) is adhered to and that developing countries are accorded the flexibilities for opening fewer sectors, liberalizing fewer transactions and extending market access in line with their development situation.
33. Fisheries Subsidies – should not touch on .... Any development assistance to developing coastal states;
Assistance to artisanal or small-scale fisheries. Needs consensus on the definition of artisanal based on vessel size in metres etc.
34. Fisheries Subsidies should not touch Access fees in fisheries access agreements
Fiscal Incentives - to facilitate the development of capabilities of small vulnerable coastal states
35. Trade Facilitation "Establish enquiry points at the national level or in the case of SVEs/developing countries involved in a Customs Union/RTA/FTA, the option of the establishment of enquiry points at the regional level, to provide relevant information on trade procedures to trade."
36. Trade Facilitation "Members and the WTO, within its competence, shall provide technical and financial assistance on mutually agreed terms to SVEs/developing countries to support the establishment, modification and maintenance of these national and/or regional enquiry points."
37. Trade Facilitation Special and Differential Treatment
SVEs/Developing countries/LDCs longer time periods to implement any requirement on enquiry points.
Members of the Customs Union / RTA should maintain a national enquiry point if it is within their ability to do so but the existence of a regional enquiry point would preclude the obligation to maintain a national enquiry point.
38. Aid for Trade Regional efforts /development banks
Address supply-side capacity and trade-related infrastructure
New and multi-year funding
Priority to LDCs, SVEs and acceding small developing countries
39. Aid for Trade 3rd Global Review – July 2011
Call for case Stories WT/COMTD/AFT/W/22
Probe deeper on AFT objectives, challenges and processes
Share experiences about what is working and what is not at the national and regional levels