Introduction to the WTO, Principles and Agreements 1
Outline of the presentation Brief History: From the GATT to the WTO What is the WTO? Basic Principles The Doha Development Agenda (DDA) 2
Brief History: From the GATT to the WTO
Origins of the GATT: 1945 / End of World War II / Effort to reconstruct world economy / Reorganisation of the international community 4
GATT: 1947 / The Havana - UN Conference on Trade and Employment / Charter of the ITO (never entered into force) / General Agreement on Tariffs and Trade / GATT (entered into force on 1 January 1948) 5 / Tariff Negotiations (linked to the GATT)
Tariffs negotiations 1948 1949 1951 1956 Entry into force of the GATT (Provisional Application) Annecy Round TARIFF Torquay Round Geneva Round 1960-62 Dillon Round 1964-67 Kennedy Round 1973-79 Tokyo Round TARIFF TARIFF TARIFF NTMs - TARIFF NTMs - TARIFF 1986-94 Uruguay Round NTMs, Tariff, TRIPS, 6 Dispute settlement, rules, services...
Overall, import weighted tariff on industrial products 40% > 4% 7
Tariffs / Non-Tariff Barriers to Trade % tariffs NTBs? 1947 2004 8
What is the WTO?
What is the WTO? Location Geneva, Switzerland Established 1 January 1995 Created by Uruguay Round negotiations (1986-94) Membership 153 Members Staff 700 Budget (2009) Head Website 190 millions Swiss francs + extra-budgetary funds (about 25 millions Swiss francs) Pascal Lamy (director-general) www.wto.org 10
What is the WTO? Trade in goods: GATT Cornerstone of the multilateral trading system Trade in services: GATS Protection of intellectual property rights: TRIPS Rights and obligations The WTO contract Dispute settlement 11
Forum? Rules? What is the WTO? Disputes? Member- Driven? 12
What is the WTO? Administering WTO trade agreements Forum for trade negotiations Functions Handling trade disputes Monitoring national trade policies Technical assistance and training for developing countries Co-operation with other international organizations 13
WTO: Objectives Raise standards of living Ensure full employment Preamble WTO Agr. Growing volume of real income and effective demand Expanding the production of and trade in goods and services Seeking both to protect and preserve the environment To secure for developing countries, and especially for LDCs, a share in the growth in international trade commensurate with the needs of their economic development 14
The WTO Agreements Marrakesh Agreement Establishing the World Trade Organization Annex 1A (Goods + National Tariff Concessions) Annex 1B (Services + Specific Commitments) Annex 1C (Intellectual Property) Annex 2 (Dispute Settlement) Annex 3 (Trade Policy Review Mechanism) Annex 4 (Plurilateral Ag.) Decisions, Declarations 15
WTO : Structure MINISTERIAL CONFERENCE TPRB GENERAL COUNCIL DSB Appellate Body Panel Council for Trade in Goods Council for Trade in Services TRIPS Council Committees Working Groups Committees Committees Consensus Decision-making Secretariat (WTO) 16
WTO vs. GATT: Main differences Provisional Application ICITO Rules and Disciplines for Trade in Goods Two-track system Indefinite Application Establishing an Organization (WTO) Rules and Disciplines for Trade in Goods Agriculture / Textiles Trade in Services Trade-related related IPR Single Undertaking Decisions by Consensus Voting Procedures but GATT practice (Consensus) followed Weaker Dispute Strong Dispute Settlement Mecanism Settlement Mechanism 23 CP in 1948 153 Members in 2010 17
Basic Principles 18
Aim of the multilateral trading system Right to Take Regulatory Measures Avoid Unnecessary Obstacles to Trade 19
Basic Principles Trade Without Discrimination MFN National Treatment Predictable & Growing Access To Markets Undistorted, Fair Competition Transparency Encourage Development 20
GATT Core Principles Article I: The Most Favoured Nation The Principle of non-discrimination Article III: The National Treatment Article XI: The Prohibition on quantitative restrictions 21
Most-Favoured Nation Principle (MFN) No discrimination between like products / services originating in or destined for different countries. Each trading partner gets immediately and unconditionally the best treatment given to any other trading partner 22
National Treatment Foreign goods, services and service providers, as well as IPR holders must not be discriminated against vis-à-vis domestic goods, services, and services providers, as well as IPR holders. 23
Quantitative Restrictions GATT Art. XI:1 No prohibitions or restrictions other than duties, taxes or other charges, whether made effective through quotas, import or export licenses or other measures, shall be instituted or maintained by any Member on the importation of any product of the territory of any other Member or on the exportation or sale for export of any product destined for the territory of any other Member. 24
The Doha Development Agenda (DDA) 25
A Forum for Negotiations Negotiations between whom? developing countries least-developed countries developed countries (other groupings) 26
Austria Belgium Bulgaria Cyprus Czech R Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain G-20 Sweden UK EU G-27 Mexico India China Venezuela Indonesia Pakistan Philippines Chile Brazil Bolivia Australia Canada Colombia Costa Rica Malaysia Cairns Group Solomon Islands LDCs G 90 Bangladesh Cambodia Chad Maldives Burkina Faso Myanmar Burundi Togo Nepal Central African Rep Djibouti DR Congo Mali Gambia Guinea Guinea Bissau Lesotho Malawi Mauritania Niger Sierra Leone Rwanda Cuba Guatemala Uruguay Thailand Paraguay New Zealand Armenia FY Rep Macedonia Haiti Argentina South Africa Benin Madagascar Senegal Uganda Tanzania Zambia Nigeria Zimbabwe African Group Gabon Ghana Namibia Botswana Cameroon Congo Côte d Ivoire Kenya Mozambique Mauritius Angola Egypt Swaziland Tunisia Morocco ACP Belize Barbados Antigua/Barbuda Dominican Rep Grenada Guyana St Vincent/Grenadines Trinidad/Tobago Jamaica Dominica Fiji Papua New Guinea St Kitts/Nevis St Lucia G-10 US G 1 Recent new G-33 Honduras Suriname Mongolia Nicaragua Panama Peru Sri Lanka Turkey RKorea Albania Croatia Georgia Jordan Moldova Oman Hong Kong, Ch Saudi Arabia El Salvador Macao, Ch Singapore Kyrgyz R Qatar UAE Brunei Kuwait Bahrain Ecuador Iceland Israel Japan Liechtenstein Norway Switzerland Ch Taipei
WTO : Negotiating Structure DSB (SS) Trade Negotiations Committee (TNC) GATS Council (SS) TRIPS Council (SS) CTE (SS) CTD (SS) AG Cttee (SS) NG on MA NG on Rules 28
Doha Ministerial Declaration Negotiations in in 8 specific areas to to be be supervised by by the Trade Negotiating Committee (TNC) Development Agriculture Services Industrial tariffs WTO rules Environment Dispute settlement 29 Trade Facilitation
To recap, 15 years on.. January 1995 Entry into force of the WTO December 1996 1st Ministerial Conference (Singapore) May 1998 2nd Ministerial Conference (Geneva) November 1999 3rd Ministerial Conference (Seattle) November 2001 4th Ministerial Conference (Doha): Launch of the Doha Development Round DDA 30
To recap, 15 years on.. Sept. 2003 July 2004 5th Ministerial Conference (Cancùn) July 2004 Package (Geneva): Negotiations start again («framework»); Singapore issues clarified (only trade facilitation included in Doha Round); Cotton issue included in agricultural negotiations (Subcommittee) Dec. 2005 6th Ministerial Conference (Hong Kong China): Limited Progress but in the right direction ; agreement on cotton; Agriculture and NAMA: framework for full modalities July 2006 Negotiations suspended (until Feb 2007) July 2008 July 2008 Package (Geneva): In agriculture and non-agricultural market access, intensive negotiations produced draft modalities 31
To recap, 15 years on.. Dec. 2009 7 th Ministerial Conference (Geneva) non negotiating meeting. 2010? March Stocktaking in Geneva Some technical progress, but no breakthrough. Plan to continue work with Geneva process at centre. 32
Thank You 33