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The WTO and TRADE FACILITATION. Needs Assessment Conducted In Cooperation with Annex D Organizations and WTO Members. The International Organization that Governs the Rules of Trade Between Nations. Functions: -administer WTO trade agreements -forum for trade negotiations

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the wto and trade facilitation

The WTO and TRADE FACILITATION

Needs Assessment Conducted In Cooperation with

Annex D Organizations and WTO Members

slide2
The International Organization that Governs the Rules of Trade Between Nations
  • Functions:
    • -administer WTO trade agreements
    • -forum for trade negotiations
    • -handle trade disputes
    • -monitor national trade policies
    • -technical assistance and training
    • -cooperate with international organizations
slide3

World Trade Organization

  • Successor to GATT
  • International Organization

embodied in results of Uruguay Round

  • Established: 1 January 1995
  • Member driven (153 Members)
  • Decision making by CONSENSUS
  • Single Undertaking –several topics

negotiated together

  • Serviced by Secretariat - 600+ staff
  • Based in Geneva
wto organization

Ministerial

Conference

WTO Organization

TNC

Trade

Policy

Review

General

Council

Dispute

Settlement

Council

for Trade

in Services

Committees

Council

for Trade

in Goods

Council

for TRIPS

Committees

Committees

Working

Parties

Working

Parties

Working

Parties

ministerial conferences
Ministerial Conferences
  • Singapore (1996)
  • Geneva (1998)
  • Seattle (1999)
  • Doha, Qatar (2001)
  • Cancun, Mexico (2003)

(GC: July Package (2004))

  • Hong Kong, China (2005)
doha development agenda
Doha Development Agenda
  • Continue work on reduction of tariffs and non-tariff Barriers
  • Aim to reduce/abolish subsidies
  • Special emphasis on needs of developing and LDC

Goal: to complete negotiations by end 2006

review of gatt wto principles
REVIEW OF GATT/WTO PRINCIPLES
  • Protection only through Tariffs
  • Reduction and Binding of Tariffs
  • National Treatment
  • Most Favored Nation (MFN)
  • Transparency
national treatment
NATIONAL TREATMENT
  • No discrimination between imported and domestic products
    • assessment of taxes
    • application of internal regulations

GATT Article III

most favored nation p rinciple of non discrimination
MOST FAVORED NATIONPrinciple of Non-Discrimination
  • Tariffs and regulations applied without discrimination
  • WTO Members receive most preferential trade terms

GATT Article 1

slide10

GATT Principles: Exceptions

  • Exceptions
  • GATT Art. XX (General Exception)
  • GATT Art. XXI (Security Exception)
  • GATT Art. XXIV:5 (Free-Trade Area and Customs Unions)
  • “Enabling Clause” (1979 Decision)
  • Marrakesh Agreement Art. IX:3 (Waiver)
special and differential treatment

GATT Article XXXVI

Enabling Clause

Special and Differential Treatment

Developed countries can treat developing countries more favorably than other WTO Members

  • Example: longer time periods for implementing Agreements

Purpose: provide developing countries and LDCs with

opportunities to benefit from the multilateral rules-based system,

not exempt them from it.

coalition groups in wto negotiations
Coalition Groups in WTO Negotiations

All Topics

Trade Facilitation Only

African Group

ACP Group

LDC Group

Core Group

Colorado Group

slide13

Background:

Why Trade Facilitation at the WTO?

  • Trade barriers often exceed tariff barriers
  • Seen as necessary to fully reap benefits from dismantled trade barriers in other areas
  • Dispute settlement provides method of enforcement
slide14

Background:

  • Mandate for negotiation set out in Annex D of the July package
  • Member-driven: all proposals and final outcome from Member nations
  • Part of the DDA Single Undertaking
  • No specific definition of trade facilitation but Members mainly narrowed to 3 GATT Articles
objectives of tf negotiations
Objectives of TF Negotiations
  • Expedite movement, release & clearance of goods - including goods in transit
  • Enhance TA and CB
  • More cooperation between customs/other authorities
negotiation mandate

WT/L/579 Annex D

July Package

Negotiation Mandate-
  • Clarify & improve GATT Articles V, VIII, X
  • SDT - Longer transition periods
  • Identify needs and priorities
  • Technical Assistance & support
existing wto legal framework
GATT Article X – Transparency

Publication

Administration of laws

Right to appeal

GATT Article VIII – Fees and Formalities

Fees reflect cost of services rendered

Reduce # and kind of fees

Simplify formalities and documents

Minor penalty for minor errors

GATT Article V – Freedom of Transit

Most convenient route

No discrimination

No unnecessary delays or restrictions

No duties

Existing WTO Legal Framework
clarification of gatt v viii x
Clarification of GATT V, VIII, X
  • Members make proposals

For Example, proposal under Article X:

Use of internet publication

  • Currently about 50 proposals
  • Compiled by Secretariat in TN/TF/W/43/REV.?
  • Categorized in headings A-M
proposals

Article X

Article VIII

Article V

Proposals
proposals21
Proposals

Generation 1- general ideas

Generation 2 - compilation of main ideas in generation 1proposals

Generation 3 – draft text based on earlier proposals

TN/TF/W/43/Rev…

slide22

ARTICLE X

TRANSPARENCY

Headings A-E

of Secretariat Compilation

TN/TF/W/43/Rev.?

proposals a e
Proposals A-E

A. Publication and Availability of Information

B. Prior Publication and Consultation

C. Advance Rulings

D. Appeal Procedures

E. Other measures to enhance impartiality, non-discrimination and exportation

Secretariat Compilation of proposals

TN/TF/W/43/Rev.? (highest number is most recent revision)

slide24

ARTICLE VIII

FEE$ and FORMALITIES

Headings F-K

of Secretariat Compilation

TN/TF/W/43/Rev.?

f k fees formalities
F-K Fees &Formalities

F. FEES & CHARGES ON IMPORT/EXPORT

G. RELEASE AND CLEARANCE OF GOODS

H. CONSULARIZATION

I. BORDER AGENCY COOPERATION

J. FORMALITIES CONNECTED WITH IMPORT/EXPORT

K. TARIFF CLASSIFICATION

slide26

ARTICLE V

TRANSIT

Heading L

of Secretariat Compilation

TN/TF/W/43/Rev.?

slide27

L – Transit Proposals

  • Scope
  • Basic Freedom of Transit
  • Exceptions, Regulations, Restrictions and Non-Discrimination
  • Disciplines on Fees and Charges
  • Disciplines on Transit Formalities and Document Requirements
  • Bonded Transport Regime and Guarantees
  • Regional Transit Agreements and Arrangements
  • Improved Coordination and Cooperation
m customs cooperation
M. Customs Cooperation

Multilateral Mechanism for Exchange and Handling of Information

institutional matters im tf task force
Institutional Matters (IM)- TF Task Force

Establishment of a trade facilitation task force or committee

negotiation mandate30

WT/L/579 Annex D

July Package

Negotiation Mandate-
  • Clarify and improve GATT Articles V, VIII, X
  • SDT - Longer transition periods
  • Identify needs and priorities
  • Technical Assistance & support
sdt mandate for tf
SDT Mandate for TF
  • SDT taken fully into account
  • Extend beyond traditional transition periods for implementation
  • Extent and timing of commitments related to implementation capacity
  • Not obligation for infrastructure projects beyond means
  • LDC: only commitments to extent of capability
slide32

SDT in Trade Facilitation Proposals

  • Extended SDT beyond traditional transition periods
  • Large flexibility for LDCs
  • Extensive TA/support and review of effectiveness
  • Assistance to identify needs and priorities
  • Support for infrastructure development
  • Conditionality between TA and implementation commitments
2 types of sdt proposals
2 Types Of SDT Proposals
  • Related to specific proposed measures
    • transition periods
    • technical assistance and capacity building (TA/CB)
    • “best endeavour”
  • “Horizontal proposals”

(without direct link to any specific measures proposed)

sdt proposals include
SDT Proposals Include:
  • Self-assessment of Needs
  • Notification of exceptions- what can or can’t implement at time of entry into force
  • Formation of capacity building plan
  • Transition period during which is TA provided
  • Capacity Verification
  • Implementation
sdt proposals
SDT Proposals
  • Pre-Signature:
  • Self-assessment of Needs & Priorities
  • Post-Signature:
  • Schedules of Commitments:
    • Implement immediately
    • Implement after transitional period
    • Implement after TACB
  • Formation of capacity building plan
  • Capacity Verification
  • Implementation
negotiation mandate36

WT/L/579 Annex D

July Package

Negotiation Mandate-
  • Clarify and improve GATT Articles V, VIII, X
  • SDT - Longer transition periods
  • Identify needs and priorities
  • Technical Assistance & support
slide37

The Negotiating Mandate:

Needs and priorities

As an integral part of the negotiations, Members shall seek to:

  • Identify trade facilitation needs and priorities, especially developing countries and LDCs
  • Address concerns related to cost implications of proposed measures
negotiation mandate38

WT/L/579 Annex D

July Package

Negotiation Mandate-
  • Clarify and improve GATT Articles V, VIII, X
  • SDT - Longer transition periods
  • Identify needs and priorities
  • Technical Assistance & support
mandate

TA:

Mandate

Phase 1- TA during the negotiations

Phase 2- TA after the negotiations for implementation

NOTE: Support for infrastructure not open-ended. If not forthcoming no implementation required

Annex D Organizations

IMF, OECD, UNCTAD, World Bank, WCO

www wto org

For more information:

www.wto.org

WebPages:

  • Trade Facilitation
  • Trade Facilitation Technical Assistance And Capacity Building
    • Multimedia presentation

Trade facilitation document code:

TN/TF