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Commonwealth Secretariat Global Biennial Conference on Small States London, 28-29 July 2010 Hans-Peter Werner, Wor

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Commonwealth Secretariat Global Biennial Conference on Small States London, 28-29 July 2010 Hans-Peter Werner, Wor

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    1. Commonwealth Secretariat Global Biennial Conference on Small States London, 28-29 July 2010 Hans-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

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