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The WTO and TRADE FACILITATION Needs Assessment Conducted In Cooperation with Annex D Organizations and WTO Members.

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Presentation on theme: "The WTO and TRADE FACILITATION Needs Assessment Conducted In Cooperation with Annex D Organizations and WTO Members."— Presentation transcript:

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2 The WTO and TRADE FACILITATION Needs Assessment Conducted In Cooperation with Annex D Organizations and WTO Members

3 2 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

4 3 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 staff Based in Geneva

5 4 Ministerial Conference WTO Organization General Council for Trade in Goods Council for TRIPS Council for Trade in Services Committees Working Parties Working Parties Working Parties Dispute Settlement Trade Policy Review TNC

6 5 Ministerial Conferences +Singapore (1996) +Geneva (1998) +Seattle (1999) +Doha, Qatar (2001) +Cancun, Mexico (2003) + + Hong Kong, China (2005) (GC: July Package (2004))

7 6 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

8 7 REVIEW OF GATT/WTO PRINCIPLES Protection only through Tariffs Reduction and Binding of Tariffs National Treatment Most Favored Nation (MFN) Transparency

9 8 NATIONAL TREATMENT No discrimination between imported and domestic products –assessment of taxes –application of internal regulations GATT Article III

10 9 MOST FAVORED NATION P rinciple of Non-Discrimination Tariffs and regulations applied without discrimination WTO Members receive most preferential trade terms GATT Article 1

11 10 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) GATT Principles: Exceptions

12 11 Special and Differential Treatment Developed countries can treat developing countries more favorably than other WTO Members Example: longer time periods for implementing Agreements GATT Article XXXVI Enabling Clause Purpose: provide developing countries and LDCs with opportunities to benefit from the multilateral rules-based system, not exempt them from it.

13 12 Coalition Groups in WTO Negotiations African Group ACP Group LDC Group Core Group Colorado Group All Topics Trade Facilitation Only

14 13 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 Why Trade Facilitation at the WTO? Background:

15 14 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 Background:

16 15 Objectives of TF Negotiations Expedite movement, release & clearance of goods - including goods in transit Enhance TA and CB More cooperation between customs/other authorities

17 16 Negotiation Mandate- Clarify & improve GATT Articles V, VIII, X SDT - Longer transition periods Identify needs and priorities Technical Assistance & support WT/L/579 Annex D July Package

18 17 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

19 18 Clarification of GATT V, VIII, X M embers make proposals For Example, proposal under Article X: Use of internet publication C urrently about 50 proposals C ompiled by Secretariat in TN/TF/W/43/REV.? C ategorized in headings A-M

20 19 Proposals ECTPKMEC + 9 KoreaUS (3)/UgandaKorea Japan + 5 coEC/AUSEC/Paraguay Canada/Australia Paraguay Group TPKMKorea Rwanda, Paraguay Switzerland USCanadaSingapore New ZealandJapan/Mongolia No Article China Singapore Argentina Turkey New Zealand Hong Kong China/Korea US/India Dominican Rep Bolivia + 15 co Article XArticle VIIIArticle V

21 20 Main Areas CoveredGroups of Measures Falling Under Those Areas Sub-Categories of Measures Falling Under Those Groups (Where Applicable) GATT Art.First Generation SecondThird A.PUBLICATION and Availability of info 1.Publication and Notification of Trade Regulations and of Penalty Provisions (W/6, W/7, W/8, W/17, W/26, W/30, W/32, W/45, W/96; See also references in W/13, W/14, W/17, W/23, W/24, W/75, W/96, W/114) Article XW/6, W/7, W/8, W/17, W/26, W/30, W/32, W/45 W/96W/ Internet Publication (W/13, W/70, W/89, W/132; See also references in W/45 and W/75) (a) Internet "publication" of the elements set out in Article X of GATT 1994 (W/13, W/70, W/89, W/132) Article XW/13, W/70W/89W/132 (b)Internet "publication" of specified information setting forth the procedural sequence and other requirements for importing goods into a Member's territory (W/13) Article XW/13 TN/TF/W/43

22 21 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…

23 22 TRANSPARENCY ARTICLE X Headings A-E of Secretariat Compilation TN/TF/W/43/Rev.?

24 23 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)

25 24 FEE$ and FORMALITIES ARTICLE VIII Headings F-K of Secretariat Compilation TN/TF/W/43/Rev.?

26 25 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

27 26 ARTICLE V TRANSIT Heading L of Secretariat Compilation TN/TF/W/43/Rev.?

28 27 L – Transit Proposals 1. 1.Scope 2. 2.Basic Freedom of Transit 3. 3.Exceptions, Regulations, Restrictions and Non-Discrimination 4. 4.Disciplines on Fees and Charges 5. 5.Disciplines on Transit Formalities and Document Requirements 6. 6.Bonded Transport Regime and Guarantees 7. 7.Regional Transit Agreements and Arrangements Improved Coordination and Cooperation

29 28 M. Customs Cooperation Multilateral Mechanism for Exchange and Handling of Information

30 29 Institutional Matters (IM)- TF Task Force Establishment of a trade facilitation task force or committee

31 30 Negotiation Mandate- Clarify and improve GATT Articles V, VIII, X SDT - Longer transition periods Identify needs and priorities Technical Assistance & support WT/L/579 Annex D July Package

32 31 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

33 32 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 SDT in Trade Facilitation Proposals

34 33 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)

35 34 SDT Proposals Include: 1.Self-assessment of Needs 2.Notification of exceptions- what can or cant implement at time of entry into force 3.Formation of capacity building plan 4.Transition period during which is TA provided 5.Capacity Verification 6.Implementation

36 35 SDT Proposals 1.Pre-Signature: oSoSelf-assessment of Needs & Priorities 2.Post-Signature: Schedules of Commitments: –I–Implement immediately –I–Implement after transitional period –I–Implement after TACB Formation of capacity building plan Capacity Verification Implementation

37 36 Negotiation Mandate- Clarify and improve GATT Articles V, VIII, X SDT - Longer transition periods Identify needs and priorities Technical Assistance & support WT/L/579 Annex D July Package

38 37 Needs and priorities As an integral part of the negotiations, Members shall seek to: –I–Identify trade facilitation needs and priorities, especially developing countries and LDCs –A–Address concerns related to cost implications of proposed measures The Negotiating Mandate:

39 38 Negotiation Mandate- Clarify and improve GATT Articles V, VIII, X SDT - Longer transition periods Identify needs and priorities Technical Assistance & support WT/L/579 Annex D July Package

40 39 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, WCOTA:

41 40 Trade Facilitation Trade Facilitation Technical Assistance And Capacity Building Multimedia presentation Trade facilitation document code: TN/TF WebPages: For more information:

42 41

43 WTO TRADE FACILITATION Thank you


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