Small and Vulnerable Economies in the Doha Round

Small and Vulnerable Economies in the Doha Round Hans-Peter Werner Counsellor WTO Development Division

The Doha Development AgendaDoha, Qatar – November 20012005 / 2006 / 2007 ?

NEGOTIATIONS • Agriculture & Sub-Committee on Cotton • NAMA • Services • Rules (AD, SCVMs, Fisheries & RTAs) • Special & Differential Treatment

Negotiations continued ... • Dispute Settlement • Trade and Environment • TRIPs – Trade-related aspects of intellectual property rights – CBD / GIs • Trade Facilitation

Doha Declaration • We agree to a work programme, under the auspices of the General Council, to examine issues relating to the trade of small economies ... • Part of the Single Undertaking or not? • From SIDS (UN) to SVEs (WTO)

...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 (WT/L/447).

...The General Council shall review the work programme and make recommendations for action to the Fifth Session of the Ministerial Conference.

Hong Kong Ministerial Declaration • We reaffirm our commitment to the Work Programme on Small Economies and urge Members to adopt specific measures that would facilitate the fuller integration of small, vulnerable economies into the multilateral trading system, without creating a sub-category of WTO Members.

We instruct the Committee on Trade and Development, under the overall responsibility of the General Council, to continue the work in the Dedicated Session and to monitor progress of the small economies' proposals in the negotiating and other bodies, with the aim of providing responses to the trade-related issues of small economies as soon as possible but no later than 31 December 2006.

Report to General Council 10/2006 • On the basis of the discussions that have been held on this matter, the CTD in Dedicated Session considers that the use by small, vulnerable economies of regional bodies to provide technical support and assistance as necessary could help them implement their obligations in the areas of SPS, TBT and TRIPS, and thereby facilitate their fuller integration into the multilateral trading system.

... the CTD in Dedicated Session recommends that the General Council agrees that small economies are allowed to use such regional bodies to assist them in the implementation of their obligations under the SPS, TBT and TRIPS Agreements.

This recommendation is without prejudice both to the identification of other specific measures in due course to facilitate the fuller integration of small economies into the multilateral trading system and to the use of regional bodies as described in this report by other developing country Members.

SVEs in the DDA - Agriculture • Agriculture – June 2006 – Draft • World merchandise trade – less than 0.16% / NAMA trade – less than 0.10% / Agriculture Trade – 0.4% or less

Agriculture • Designation of certain percentages on special products • Food security concerns / Livelihood security / Rural development needs • Special safeguard mechanisms

Agriculture • Preferential Market Access to developed countries for exports from SVEs • Linear cuts no higher than 15% with minimum of 10% per line from the bound rate ... No other concessions sought from SVES

NAMA • Members with share of NAMA trade (exports and imports) of less than 0.1% of world trade (1999 to 2001) NOT A NEW CATEGORY - Triggers eligibility • Chairman: “Many Members oppose the use of such criteria but the treatment of SVEs in these negotiations does not create a precedent for future negotiations”

NAMA 11 • Argentina, Brazil. Egypt, India, Indonesia, Namibia, Philippines, S. Africa, Tunisia and Venezuela • “Once numbers in the modalities are identified for developing countries, additional flexibilities will be identified for SVEs”

Norway • 0.1% of NAMA trade = SVE status • In exchange for 100% binding of all tariffs

FIJI • In the specific case of Fiji with less than 50 per cent binding coverage, Fiji shall be allowed to keep [5 per cent] of their lines unbound while binding the remaining [95 per cent] at an average of [ ].

NAMA • The implementation of the tariff reduction commitments should be staged over a longer period than other developing countries in order to ensure a smooth liberalisation process and not jeopardise the industrial and social development prospects of the small, vulnerable economies.

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.

Fisheries Subsidies should not touch • Access fees in fisheries access agreements • Fiscal Incentives - to facilitate the development of capabilities of small vulnerable coastal states

Committee on Subsidies & CV Measures • Antigua and Barbuda, Barbados, Belize, Dominica, Dominican Republic, El Salvador, Fiji, Grenada, Guatemala, Jamaica, Mauritius, Papua New Guinea, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines

SCVMs • Through the calendar year2018, subject to annual reviews during that period to verify that the transparency and standstill requirements are being fulfilled, Members of the Committee shall agree to continue the extensions granted …

SCVMs • The extension procedures under Article 27.4 would hence be applicable to all of the members and the existing programmes referred to in Annex A in line with paragraph 2 of G/SCM/39. This extension process would be applicable from the end of 2007 through to the end of 2018 with identical procedures as indicated in G/SCM/39 paragraph 1(f) and 1(g).

SCVMs Informals • 25 April 2006, introduction of the proposal. (G/SCM/M/57) • 23 June 2006, procedural discussion. • 21 July 2006, first substantive discussion. • 13 October 2006, second substantive discussion. • 15 December 2006, third substantive discussion. • 15 February 2007, fourth substantive discussion. • 8 March 2007, fifth substantive discussion.

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."

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."

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.

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

Small and Vulnerable Economies in the Doha Round