1 WORLD BANK SEMINAR Russian Academy of State Service Moscow, March/April 2005 WTO ACCESSION Norio KOMURO, Professor of International Economic Law, Kobe University Law School

2 TABLE OF CONTENT I. General Overview II. Procedures and Requirements for WTO Accession III. GATT/WTO Accession Sagas IV. Accession Strategy Conclusion

3 I.. General Overview Membership State and Separate Customs Territory Original Member; Acceding Member Non-Market Economy Country Accession Procedures & Requirements Accession-related Matters Non-Application: GATT Article XXXV; WTO Article XIII Unilateral Withdrawal

4 II. Procedures and Requirements for WTO Accession 1.WTO Accession Procedures 2.GPA Accession Procedures 3. Comparison with Other International Organization

5 WTO Accession Procedures 1. Application to the WTO 2. Examination by the WTO Working Party 3. Bilateral Talks with Member countries 4. Final Multilateral Stage: WP finalizes Accession Package; Approval by the WTO Ministerial Conference or General Council (two-thirds majority voting) 5. Entry Into Force of the WTO; 30 days after the applicant’s Ratification

6 Time-consuming WTO accession process 1.Bilateral negotiations on concessions and commitments on market access for goods and services 2. Additional requirements: Discriminatory trade remedies against China: AD,SG,Textiles 3.WP decisions by positive consensus WP-stage Veto WP open to all Members

7 Accession Package The accession package incorporates the results of multilateral and bilateral negotiations, consisting of the following documents: i. Report of the Working Party: a summary of proceedings and conditions of entry; Ii. Protocol of Accession. Iii. Schedules of market access commitments in goods and services

8 GPA Accession Procedure Bilateral Agreements on terms of accession with GPA Parties Deposit with the WTO Director-General of an instrument of accession Enter into force of the GPS for an acceding government on the 30th day following the date of its accession

9 Comparison with Other International Organization IMF Accession: quasi-automatic UN Accession: Recommendation of the Security Council; Veto-power of the Five Final Decision by the General Assembly: a two-thirds majority of the members present and voting

10 III. GATT/WTO Accession Sagas 1. Japan 1955 Accession and Non-Application of the GATT by 50 countries 2. East European Countries ex-Czechoslovakia; ex-Yougoslavia etc Draft Discriminatory SG provision 3. China: Discriminatory trade remedies against China; Transitional Review members in October Russia, Algeria, Saudi-Arabia, Vietnam

11 IV. Post-Accession Strategy Implementation of commitments DS complaints against trade barriers to exports from Russia (e.g. EU AD and anti- circumvention measures against Russian goods) Retardation of Liberalization? DS based on Negotiation Regionalism and Investment Invitation Trade Remedies

12 Retardation of Liberalization in Japan Progressive liberalization by Japan Products classified into four categories: products liberalized within one year, those within three years, those after a given period of time; and non-liberalized products Retardation of liberalization of infant industries: passenger cars, electronic calculators, and electronic devices

13 CONCLUSION Easy Withdrawal and Difficult Accession In-Depth Review of Current Domestic Regime from the WTO standpoint Avoidance of Unfavorable Treatment experienced by Japan and China