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1 Technical Assistance and Capacity Building The WTO & the Doha Round Fletcher Grundmann, Machiel van der Stelt, Steven Garrett, Kathleen Riley.

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Presentation on theme: "1 Technical Assistance and Capacity Building The WTO & the Doha Round Fletcher Grundmann, Machiel van der Stelt, Steven Garrett, Kathleen Riley."— Presentation transcript:

1 1 Technical Assistance and Capacity Building The WTO & the Doha Round Fletcher Grundmann, Machiel van der Stelt, Steven Garrett, Kathleen Riley

2 2 Maximum benefit from participation in a WTO rules-based trading system comes about only when developing countries and transition economies have the required institutional, physical and human capacity to take advantage of trade opportunities. - U.S. Government Initiatives to Build Trade Related Capacity in Developing and Transition Countries

3 3 What is Technical Assistance? w Also called technical co-operation, it is assisting officials from developing countries to operate successfully in the multilateral trading system. w Objective is to build the necessary institutions and train officials. w Inclusions in: GATT Article XVIII (1955), GATT Part IV (1965), Enabling Clause (1979), Agreement on SPS Measures, the Agreement on TBT, the Agreement on Implementation of Article VII (Customs Valuation) and the Agreement on TRIPs WTO

4 4 Technical Assistance at WTO w Workshops Focus on particular areas of trade policy w Seminars National & regional level, focused & general w Technical Missions Assist drafting legislation & regulations WTO

5 5 Technical Assistance at WTO w Briefing Sessions Update on recent developments at WTO w Electronic Assistance CD-ROM of Seminars WTO

6 6 What is Capacity Building? w Developing institutions and other sectors of an economy to effectively engage in trade. Modernize Customs Offices Support the design and implementation of antitrust laws Enforcement of labor standards and worker rights Assist in the development of physical infrastructure needs (telecom, water, etc.)

7 7 Ministerial Declaration w 38. We confirm that technical cooperation and capacity building are core elements of the development dimension of the multilateral trading system, and we welcome and endorse the New Strategy for WTO Technical Cooperation for Capacity Building, Growth and Integration. We instruct the Secretariat, in coordination with other relevant agencies, to support domestic efforts for mainstreaming trade into national plans for economic development and strategies for poverty reduction. The delivery of WTO technical assistance shall be designed to assist developing and least-developed countries and low- income countries in transition to adjust to WTO rules and disciplines, implement obligations and exercise the rights of membership, including drawing on the benefits of an open, rules-based multilateral trading system. Priority shall also be accorded to small, vulnerable, and transition economies, as well as to members and observers without representation in Geneva. We reaffirm our support for the valuable work of the International Trade Centre, which should be enhanced.

8 8 Cont. w 39. We underscore the urgent necessity for the effective coordinated delivery of technical assistance with bilateral donors, in the OECD Development Assistance Committee and relevant international and regional intergovernmental institutions, within a coherent policy framework and timetable. In the coordinated delivery of technical assistance, we instruct the Director-General to consult with the relevant agencies, bilateral donors and beneficiaries, to identify ways of enhancing and rationalizing the Integrated Framework for Trade- Related Technical Assistance to Least-Developed Countries and the Joint Integrated Technical Assistance Programme (JITAP).

9 9 Cont. w 40. We agree that there is a need for technical assistance to benefit from secure and predictable funding. We therefore instruct the Committee on Budget, Finance and Administration to develop a plan for adoption by the General Council in December 2001 that will ensure long-term funding for WTO technical assistance at an overall level no lower than that of the current year and commensurate with the activities outlined above.

10 10 Cont. w 41. We have established firm commitments on technical cooperation and capacity building in various paragraphs in this Ministerial Declaration. We reaffirm these specific commitments contained in paragraphs 16, 21, 24, 26, 27, 33, 38-40, 42 and 43, and also reaffirm the understanding in paragraph 2 on the important role of sustainably financed technical assistance and capacity-building programmes. We instruct the Director-General to report to the Fifth Session of the Ministerial Conference, with an interim report to the General Council in December 2002 on the implementation and adequacy of these commitments in the identified paragraphs.

11 11 U.S. Suggestions for Banks w A Strategic Partnership w Trade and Finance Ministers Policy Dialogues w Trade mainstreaming w Lending Facilities and Grant Funding for Trade-Related Projects w Technical assistance, training and capacity building w the Doha Development Agenda Trade-Related Technical Assistance and Capacity-Building Database w Seventh, Integrated Framework Partners w Finally, Follow-Up - Periodic Consultations

12 12 The participating banks: w The African Development Bank w The Arab Monetary Fund w The Asian Development Bank w The European Bank for Reconstruction and Development w The Inter-American Development Bank w The Islamic Development Bank w The New Partnership fro African Development w World Bank

13 13 Solution w Provide a sound financial basis for WTO technical cooperation activities by securing funds to enhance technical assistance and capacity-building to help developing countries participate more actively in the Doha Development Agenda. The goal is to enhance the cooperation between the WTO and the regional development banks. w Regional banks must work to ensure that trade priority areas of action are mainstreamed (distinctly reflected) into national development strategies and the Poverty Reduction Strategy Papers (PRSPs) of countries in their regions.

14 14 The Integrated Framework Inaugurated in October 1997, due to complex trade related problems facing the LDC. The IF is the cooperation between IMF, ITC, UNCTAD, UNPD World Bank and the WTO. This cooperation was established mainly to bundle the competence of the different organizations. To get more results concerning Capacity Building. In 2000 the IF was reorganized, due to improve its function.

15 15 The Integrated Framework After the reorganization the IF is mainly concentrating on: Assisting LDCs in mainstreaming trade priority areas to reduce poverty and develop the LDCs economics. Improve governance structure by the Integrated Framework Steering Committee (IFSC). Financing the mainstreaming work by the IF Trust Fund led by the World Bank. The improvement between bilateral and multilateral donors concerning the coordination within a coherent policy framework.

16 16 The Integrated Framework Currently the IF is implemented on a pilot basis in Cambodia, Madagascar and Mauritania. Now the pilot scheme is extended to 11 new LDCs on basis of the gained experience. Criteria for assessing new pilot countries are: 1. Strong commitment to integrate into national development strategy. 2. Preparatory stage of PRSP. 3. Preparatory stage of upcoming meetings of the World Bank Consultative Group or UNDP Round Table. 4. Conductive operational country environment.

17 17 The Integrated Framework The implementation of the IF is done by the World Bank three step method. 1. Diagnostic integration study (DTIS) is prepared for each country. 2. Action Plan is developed in consultation with stakeholders, based on the findings of the study. 3. Trade policy priorities are incorporated into the countrys updated PRSP.

18 18 The Integrated Framework Challenges for the future (Paul J. Fekete, The Service Group): This process is still in a developing state and there is not a precise answer yet how to move to the implementation state. The program has to be put under one umbrella, because some LDC know how to play the game of getting money from different resources. Capacity building has to be undertaken, not everyone has the knowledge in these countries. So the institutions have to find the right people to send to these countries to do the capacity building job well.

19 19 In summary…

20 20 WTO and Technical Assistance Because More than three-quarters of WTO's Members have self-elected the status of developing countries, of which 30 are least- developed…status of developing countries w At Doha, Ministers confirmed that technical cooperation and capacity building are core elements of the development dimension of the multilateral trading system.

21 21 Technical assistance and Capacity Building is designed to… w Assist developing and least-developed countries and low-income countries in transition to adjust to: WTO rules and disciplines implement obligations and exercise the rights of membership including drawing on the benefits of an open, rules-based multilateral trading system.

22 22 Through a concerted effort and core development efforts w The WTO promises to support developing nations with T.A. in the form of workshops, technical missions and seminars, as well as through… w Capacity building efforts designed to support laws, enforce labor standards, develop necessary infrastructure and… w Identify funding sources

23 23 Through the Ministerial declaration adopted on 14 November 2001 the WTO: w paragraphs 16, 21, 24, 26, 27, 33, 38-40, 42 and 43 w Confirmed its support for domestic efforts in mainstreaming trade into national plans for economic development and strategies for poverty reduction. (article 38) w Underscored the urgent necessity for the effective coordinated delivery of technical assistance with bilateral donors (article 39) w Promised to ensure long-term funding for WTO technical assistance (article 39) w Discussed an integrated framework to help in bundling limited resources and make the most of existing capabilities

24 24 Sources w w w w w w w w w w w


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