I S S U E 4 7 J A N U A R Y 2 0 1 8 Trade News Digest International Trade Division Ministry of Foreign Affairs, Regional Integration and International Trade In This Issue Editorial Editorial - 11th WTO Ministerial Conference - Buenos Aires Commitment to engage in negotiations on fisheries subsidies reached at MC 11 MC 11 - Work Programme on Small Economies MC 11 E-Commerce TRIPS Non-Violation and Situation Complaints Buenos Aires Declaration on Women and Trade outlines actions to empower women Trade relations between Africa and Australia Mauritius China Free Trade Agreement Trade and Customs Policy Post Brexit Update on the WTO Trade Facilitation Agreement IORA - Study on Bilateral and Regional Trade and Investment-Related Agreements, Arrangements and Dialogue between Member States EU-SADC Trade Facilitation Programme under EDF 11 Geographical indications and layoutdesigns of integrated circuits - National Workshop 11th WTO Ministerial Conference - Buenos Aires The 11th WTO Ministerial Conference (MC) was held in Buenos Aires from 10-13 December 2017. The Mauritius delegation comprised of H.E. Israhyananda Dhalladoo, Ambassador Extraordinary and Plenipotentiary and Permanent Representative, Mauritius Embassy and Permanent Mission of Mauritius to the United Nations, Geneva and Mr N. Boodhoo, Director, International Trade Division. At the MC 11, Mauritius emphasized that progress in the DDA negotiations has been extremely slow, which is a matter of serious concern. Moreover, the credibility of the WTO as an institution is at stake. To restore that credibility, it was important for the Ministerial Conference to deliver on some of the key issues, namely agriculture, development, public stockholding, amongst others. Unfortunately, not much progress was achieved at the conference. In fact, Ministers could not agree on a joint Declaration, although the Chairperson of the conference, Mrs Susana Malcorra, tried her level best until the very last minute. 0 1
Commitment to engage in negotiations on fisheries subsidies reached at MC 11 Negotiations to improve WTO disciplines on fisheries subsidies were launched at the Doha Ministerial Conference in 2001. At the 2005 Ministerial Conference in Hong Kong, broad agreement was reached on the consolidation of those disciplines, namely through the prohibition of certain forms of fisheries subsidies which contribute to overcapacity and overfishing. Impetus on creating fisheries subsidies disciplines was further enhanced following the adoption in September 2015 of the UN Sustainable Development Goals (SDGs). SDG target 14.6 sets a deadline of 2020 for eliminating IUU subsidies and for prohibiting certain forms of fisheries subsidies that contribute to overcapacity and overfishing, with special and differential treatment for developing and least-developed countries. At the recent MC 11, WTO member states wrapped the meeting with the adoption of a ministerial decision on fisheries subsidies, whereby they agreed to continue constructive negotiations on fisheries subsidies with a view of reaching an agreement by the next Ministerial Conference to be held in 2019. Negotiations will focus on two main areas: prohibition of certain forms of fisheries subsidies contributing to overcapacity and overfishing and elimination of subsidies which contribute to illegal, unreported and unregulated (IUU) fishing. Source : World Trade Organisation 02 TRADE NEWS DIGEST ISSUE 47
MC 11- Work Programme on Small Economies The Ministerial Conference reaffirmed their commitment to the Work Programme on Small Economies and take note of all the work conducted to date. They further took note of the work carried out since 2015, including that on the challenges and opportunities faced by small economies when linking into global value chains in trade in goods and services, and instruct the Committee on Trade and Development (CTD) to continue its work in Dedicated Session under the overall responsibility of the General Council. Furthermore, the Dedicated Session was instructed by Ministers to consider in further detail the various submissions that have been received to date, examine any additional proposals that Members might wish to submit and, where possible, and within its mandate, make recommendations to the General Council on any of these proposals. The General Council shall direct relevant subsidiary bodies to frame responses to the trade-related issues identified by the CTD with a view to making recommendations for action. The CTD in Dedicated Session shall continue monitoring the progress of the small economy proposals in WTO bodies and in negotiating groups with the aim of providing responses, as soon as possible, to the trade-related issues identified for the fuller integration of SVEs in the multilateral trading system. Source : World Trade Organisation MC 11 E-COMMERCE Recognizing the growing importance of global electronic commerce, particularly in the arena of trade, the Ministerial Conference settled to continue the work of its last session under the Work Programme on Electronic Commerce, based on the existing mandate of September 1998. Ministers also agreed to: uphold the existing practice of not imposing customs duties on electronic transmissions pending the ensuing session in 2019; and direct the General Council to hold periodic reviews in its sessions of July and December 2018 and July 2019 based on the reports submitted by the relevant WTO bodies. Source :World Trade Organisation 0 3
MC - 11 - TRIPS Non-Violation and Situation Complaints The World Trade Organization s (WTO) 11th Ministerial Conference (MC11) took note of the work done by the Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS) pursuant to MC s decision of 19 December 2015 on TRIPS Non-Violation and Situation Complaints. The Council for TRIPS is the body responsible for administering the TRIPS Agreement. It monitors the operation of the Agreement. WTO s MC11 directed the Council to continue its examination of the scope and modalities for complaints of the types provided for under subparagraphs 1(b) and 1(c) of Article XXIII of GATT (General Agreement on Tariffs and Trade). Article XXIII of GATT relates to nullification or impairment. MC11 has directed the Council for TRIPS to make recommendations to the next Ministerial Conference in 2019. It has been agreed that, in the meantime, WTO Members will not initiate such (non-violation) complaints under the TRIPS Agreement. Non-violation complaints are possible for goods and services (under GATT for goods and market-opening commitments in services). However, for the time being, members have agreed not to use them under the TRIPS Agreement. Source : ITD and WTO The moratorium has been extended for another two years Source : World Trade Organisation Buenos Aires Declaration on Women and Trade outlines actions to empower women For the first time in the history of the World Trade Organization, WTO members and observers have endorsed a collective initiative to increase the participation of women in trade. In order to help women reach their full potential in the world economy, 118 WTO members and observers agreed to support the Buenos Aires Declaration on Women and Trade, which seeks to remove barriers to, and foster, women s economic empowerment. cont'd p. 5 0 4
Buenos Aires Declaration on Women and Trade outlines actions to empower women (cont.) Actions outlined in the Declaration will ultimately boost economic growth worldwide and provide more and better paid jobs for women. These actions will also contribute to UN Global Development Goals, including the Sustainable Development Goal to achieve gender equality through the empowerment of women and girls (SDG 5). Supporting WTO members and observers have specifically agreed to explore and find ways to best tackle barriers to trade, lack of access to trade financing and sub-optimal participation of women in public procurement markets. Participating members will exchange information about what has worked and what has not in their attempts to collect gender-disaggregated economic data and to encourage women s participation in the economy. Within the WTO context, members will scrutinize their own policies through a gender lens and find ways to work together to increase women s participation in the world economy. They will also seek to ensure that trade-related development assistance pays better attention to its focus and impact on women. Progress will be reported in 2019. Source : World Trade Organisation Trade relations between Africa and Australia The International Trade Division, in consultation with the relevant stakeholders, has worked on a submission to be made to the Senate of the Commonwealth of Australia (the Federal Senate) Senate Committee, through our High Commission in Canberra. The submission is titled Australia s trade and investment relationships with the countries of Africa The Mauritius Perspective. The submission outlines the vision of Mauritius to the transforming of Australia s relations with Africa to a trade focused one, with Mauritius as a platform and facilitator. Mauritius could play a special role as facilitator and springboard The Senate Committee s report would be expected to have an impact on foreign policy thinking of Australia and other connected bilateral processes. Mauritius could position itself as a springboard for increased trade between Australia and Africa, and with the Indo Pacific region for several reasons, including among others geographic location, logistical advantage and sound legal and regulatory jurisdiction. 0 5
Mauritius China Free Trade Agreement Signature of Memorandum of Understanding to launch the negotiations In the margin of the 11th World Trade Organization (WTO) Ministerial Conference in Buenos Aires, Argentina, a Memorandum of Understanding (MoU) was signed between the Ministry of Foreign Affairs, Regional Integration and International Trade of the Republic of Mauritius and the Ministry of Commerce of the People s Republic of China, to launch the negotiations for the Mauritius China Free Trade Agreement. The MoU was signed on 12 December 2017 by H.E. Israhyananda Dhalladoo, Ambassador Extraordinary and Plenipotentiary and Permanent Representative, Mauritius Embassy and Permanent Mission of Mauritius to the United Nations, Geneva and Hon. Wang Shouwen, Chinese Vice Minister of Commerce. The aim of having a Free Trade Agreement (FTA) is to create necessary conditions to increase the volume of bilateral trade and investment. Both sides intend to strengthen and expand the scope of economic cooperation between Mauritius and China as well as eliminate trade barriers. Mauritius-China comprehensive FTA will cover trade in goods, trade in services, investment and economic cooperation as recommended in the Joint Feasibility Study concluded in May 2017. 0 6
Trade and Customs Policy Post Brexit The UK Government has introduced to its effective operation of these agreements and Legislature a Trade Bill on 07 November UK s independent GPA membership 2017 and a Taxation (Cross-border Trade) Bill following Brexit. on 20 November 2017 as it paves the way for The Bill also aims at establishing a new leaving the EU. independent UK body, the Trade Remedies Trade Bill Authority, to protect UK businesses against The primary aim of the Bill is to ensure prejudicial trade practices. It equally ensures maximum continuity and rationality for that the UK Government has the permissible consumers and businesses in UK s trade and abilities for assembling and sharing trade investment relationships with third countries information, advisedly to support UK capped by existing signed agreements, from businesses against surges in imports and the day of Brexit, as well as for the third unfair practices. countries themselves. This will encompass Taxation (Cross-border Trade) Bill the evolution of existing EU Trade The Bill defines the modalities for a Agreements (including FTAs, EPA, and standalone custom regime, which is largely Association Agreement) or other EU based on the existing EU Customs Code. It preferential trade arrangements, like Mutual also allows the UK to establish and collect Recognition Agreements on conformity customs duty on goods imported into the assessment. country, including preferential or additional The Bill further provides for provisions that duties where suitable. Further, it maintains a will enable the UK to become an independent functioning movement of goods from the member of the WTO plurilateral Agreement day of the EU Exit by continuing the VAT on Government Procurement (GPA) with a and excise regimes in line with the final deal view to address trade barriers and ensure that reached in negotiations. companies in UK have continued access to Pertinent provisions have been introduced in the 1.3trillion worth of government the Bill that will empower the UK contracts and procurement opportunities in Government to bring into play the outcomes 47 countries annually. of the negotiations between the UK and EU, Required powers have been instilled in the as well as any implementation period, by way Bill to maintain the status quo for businesses of secondary legislation. and consumers, thereby allowing the 0 7
UPDATE ON THE WTO TRADE FACILITATION AGREEMENT The WTO s Trade Facilitation Agreement (TFA) which came into force on 22nd February 2017, represents an important milestone by creating an international framework for reducing trade cost. It contains provisions for expediting the movement, release and clearance of goods, including goods in transit. Countries that have ratified the TFA are now under the obligation to implement the Agreement. In terms of the Agreement, developing countries are required to classify trade facilitation measures in categories A, B and C.Category A measures are those measures that are to be implemented upon the coming into force of the Agreement. Category B measures will be implemented within a period of time to be decided by each developing country member, while Category C measures will be implemented after the capacity to do so has been acquired on the basis of technical and financial assistance from donors. According to the WTO Trade Facilitation Agreement (TFA), developing countries who have ratified the Agreement will implement their category C measures only after the capacity to do so has been acquired. Several major international organizations like the International Trade Centre, the World Bank, and the World Customs Organization, amongst others, have pledged to assist WTO members in implementing their commitments under the TFA In this respect, the International Trade Division had several meetings with the World Bank to discuss the possibility of obtaining technical and financial assistance to implement its category C measures. A Digital Video Conference (DCV) was also organized in October 2017 with the team of the World Bank based at Washington to discuss in detail the projects. In the DVC, the Mauritian side was represented by officials from the Ministry of Foreign Affairs, Regional Integration and International Trade, the Ministry of Health and Quality of Life, Ministry of Finance and Economic Development, Ministry of Agro Industry and Food Security, MRA Customs and Mauritius Standards Bureau. cont'd Pg 9 0 8
UPDATE ON THE WTO TRADE FACILITATION AGREEMENT (cont'd) The following projects are being discussed with the World Bank: Implementation of a rapid testing methods in Food Microbiology for pathogens detection at the Dairy Chemistry Division of the Ministry of Agro-Industry & Food Security Capacity building in Quality Assurance, Technical Assistance for Accreditation of the Pesticide Residue Laboratory, including honey testing at the Food Technology Laboratory of the Ministry of Agro-Industry & Food Security Risk management System at MRA Customs Single Window at MRA Customs Setting up of the Product Certification Mark scheme (MAURICERT) and readiness for accreditation as per ISO/IEC 17065 at the Mauritius Standards Bureau Setting up and implementation of an Inspection Scheme at Mauritius Standards Bureau at the Mauritius Standards Bureau Proposal for developing a food microbiology laboratory at the Central Health Laboratory (CHL) of the Ministry of Health & Quality of Life Indian Ocean Rim Association (IORA) Study on Bilateral and Regional Trade and Investment-Related Agreements, Arrangements and Dialogue between Member States A Study on Bilateral and Regional Trade and Investment-Related Agreements, Arrangements and Dialogue between Member States was carried out by Professor V N Attri, Chair of the Indian Ocean Studies at IORA. According to key outcomes, the share of IORA s exports to their world s exports during 1990-2014, varied from 19% to 26%. The fluctuation in IORA s total share of exports in world s suggest the vulnerability of IORA s exports to the global environment. cont'd Pg 10 0 9
Indian Ocean Rim Association (IORA) (cont'd) Trade investment and technology facilitation mechanism is recommended to bolster productivity flows of South-South trade and tap the huge potential which exists. Tradable sectors include the traditional as well as the knowledge-economy sectors. The study on Bilateral and Regional Trade and Investment-Related Agreements, Arrangements and Dialogue between IORA Member States recommends that an expert group may be set up to undertake a study of existing non-tariff barriers within IORA. and IORA inclusive economic development in the SADC region through deepening regional economic integration. EU-SADC Trade Facilitation Programme under EDF 11 The SADC Secretariat and the EU Delegation to Botswana and SADC have jointly identified EUR 15 million for the EU-SADC Trade Facilitation Programme (TFP). The Programme is foreseen to be funded by the 11th EDF under the EU s Annual Action Programme 2018. The overall objective of the SADC Trade Facilitation Programme, which is largely aligned with the WTO TFA, is to contribute to enhancing 1 0 The SADC Secretariat outlined that the SADC Trade Facilitation Programme was developed following a directive from the 13th Meeting of the Ministerial Task Force (MTF) on Regional Economic Integration which was held in July 2013 in Maputo, Mozambique. The Secretariat was then directed to develop a trade facilitation programme in order to address impediments to the movement of goods across the region. This Programme will be implemented over a five-year period, covering areas of Customs, Trade in Goods and in Services, Sanitary and Phytosanitary (SPS) Technical Barriers for Trade (TBT) and Economic Partnership Agreement (EPA) and will benefit the SADC region.
Geographical indications and layout-designs of integrated circuits National Workshop A national workshop on Geographical Indications (GI) and layout-designs of integrated circuits, organized by the Ministry of Foreign Affairs, Regional Integration and International Trade, in collaboration with the European Union (EU) delegation in Mauritius, was held on 15 December 2017 at the Labourdonnais Waterfront Hotel, Port Louis. The workshop was officially launched by the Secretary for Foreign Affairs, Mrs Usha Dwarka Canabady and was conducted by two international consultants, namely Mr Giovanni Galanti, expert on GI and Mr Fawad Younus, expert on layoutdesigns of integrated circuits. A GI is a sign used on products that have a specific geographical origin and possesses qualities or a reputation that are due to that origin (World Intellectual Property Organization s (WIPO) definition). Examples include Basmati Rice and Camembert de Normandie. According to Mr Giovanni Galanti, GI is important for Mauritius because it plays a crucial commercial role in trade The new Industrial Property Bill provides for GI registration. Our special sugar has been selected as potential GI study to prove the link between Mauritius and special sugar produced locally. The next step will include registration in Mauritius followed by application for EU protection. In Rodrigues, Limon Rodrigues has been identified as potential GI product. With regard to layout-designs of integrated circuits commonly known as chips or micro-chips, Mr Fawad Younus spoke about future technologies including artificial intelligence, wearables and implantables and robotics. He explained that to promote layout-designs of integrated circuits, it was imperative for Mauritius to conduct intellectual property (IP) awareness campaigns, teach IP courses in schools and universities and develop capacity of IP attorneys. 1 1