history of trade negotiations

8/11/2019 History of Trade Negotiations

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HISTORY OF TRADENEGOTIATIONS


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TRADE NEGOTIATIONS

Trade negotiation is a process in which nationsmeet together to discuss the possibility of trade,

with the goal of reaching a trade agreement.

Negotiating nations have a vested interest innegotiating a successful trade agreement because ithas the potential of promoting economic growthand allowing companies to expand their markets,

but both are also concerned with protecting theireconomy and safety.


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Trade negotiations can become quitecomplex, and may involve more than twonations, along with moderators who take aneutral stance to help the countries reach anagreement.


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WHAT HAPPENS DURING TRADENEGOTIATIONS?

During trade negotiations, representatives ofnations interested in trading with each other meetto discuss the terms of those trades. Issues such astariffs and taxes, holding periods for goods, andtrade restrictions may be discussed.

Nations may also be concerned with topics such aspublic health or food safety which might beimpacted through foreign trade.


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All sides may be obligated to make concessionsduring a trade negotiation to make a deal which

will work out well for everyone involved. A nation

which sends representatives with good negotiationskills can strike a trade agreement which will behighly beneficial, while negotiators who are notgood at international negotiations may return totheir home nations with a less favorable deal.


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Although a trade negotiation meeting istechnically about trade, some nations use itfor other types of political negotiations.


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TRADE ROUNDS


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TNC operates under the authority of the General Council. It was set up bythe Doha Declaration, which in turn assigned it to create subsidiarynegotiating bodies to handle individual negotiating subjects. The chairman is

Mr. Pascal Lamy.

Its mandate is the overall conduct of the negotiations shall be supervised bythe Trade Negotiating Committee under the authority of the General Council.It shall hold its first meeting not later than 31 January 2002. It shall establish

appropriate negotiating mechanisms as required and supervise the progress ofthe negotiations.

THE TRADE NEGOTIATIONSCOMMITTEE


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RULES ON TRADENEGOTIATIONS

GATT - General Agreement on Tariffs and Trade

- It is an agreement between Statesaiming at eliminating discrimination andreducing tariffs and other trade barriers withrespect to trade in goods.


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The objectives of the members signing the agreementincluded raising living standards and promoting full

employment by reducing trade barriers and eliminatingdiscriminatory trade practices.

PURPOSE


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ARTICLE XXVIII

On the first day of each three-year period, the first periodbeginning on 1 January 1958 a contracting party may, bynegotiation and agreement with any contracting party with which

such concession was initially negotiated and with any othercontracting party determined by the CONTRACTING PARTIESto have a principal supplying interest and subject to consultation

with any other contracting party determined by the

CONTRACTING PARTIES to have a substantial interest in suchconcession, modify or withdraw a concession included in theappropriate Schedule annexed to this Agreement.


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In such negotiations and agreement, which may includeprovision for compensatory adjustment with respect toother products, the contracting parties concerned shall

endeavour to maintain a general level of reciprocal andmutually advantageous concessions not less favourableto trade than that provided for in this Agreement priorto such negotiations.


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If agreement between the contracting parties primarily concernedcannot be reached before 1 January 1958 or before the expirationof a period envisaged in paragraph 1 of this Article, thecontracting party which proposes to modify or withdraw theconcession shall, nevertheless, be free to do so and if such actionis taken any contracting party with which such concession wasinitially negotiated, any contracting party determined underparagraph 1 to have a principal supplying interest and anycontracting party determined under paragraph I to have asubstantial interest shall then be free not later than six monthsafter such action is taken, to withdraw, upon the expiration ofthirty days from the day on which written notice of such

withdrawal is received by the CONTRACTING PARTIES,substantially equivalent concessions initially negotiated with theapplicant contracting party.


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If agreement between the contracting parties primarilyconcerned is reached but any other contracting party determinedunder paragraph 1 of this Article to have a substantial interest isnot satisfied, such other contracting party shall be free, not later

than six months after action under such agreement is taken, to withdraw, upon the expiration of thirty days from the day on which written notice of such withdrawal is received by theCONTRACTING PARTIES, substantially equivalent concessions

initially negotiated with the applicant contracting party.


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(a) Such negotiations and any related consultations shall be conducted inaccordance with the provisions of paragraphs 1 and 2 of this Article.(b) If agreement between the contracting parties primarily concerned isreached in the negotiations, the provisions of paragraph 3 (b) of this Articleshall apply.(c) If agreement between the contracting parties primarily concerned is notreached within a period of sixty days after negotiations have been authorized,or within such longer period as the CONTRACTING PARTIES may haveprescribed, the applicant contracting party may refer the matter to theCONTRACTING PARTIES.

PROCEDURES AND CONDITIONS IN AUTHORIZING A CONTRACTING PARTY

TO ENTER INTO NEGOTIATIONS FOR MODIFICATION OR WITHDRAWAL :


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d) Upon such reference, the CONTRACTING PARTIES shall promptly

examine the matter and submit their views to the contracting parties primarilyconcerned with the aim of achieving a settlement. If a settlement is reached,the provisions of paragraph 3 (b) shall apply as if agreement between thecontracting parties primarily concerned had been reached. If no settlement isreached between the contracting parties primarily concerned, the applicantcontracting party shall be free to modify or withdraw the concession, unlessthe CONTRACTING PARTIES determine that the applicant contractingparty has unreasonably failed to offer adequate compensation. If such actionis taken, any contracting party with which the concession was initiallynegotiated, any contracting party determined under paragraph 4 (a) to have aprincipal supplying interest and any contracting party determined under

paragraph 4 (a) to have a substantial interest, shall be free, not later than sixmonths after such action is taken, to modify or withdraw, upon the expirationof thirty days from the day on which written notice of such withdrawal isreceived by the CONTRACTING PARTIES, substantially equivalentconcessions initially negotiated with the applicant contracting party.


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ARTICLE XXVIII VIS

The contracting parties recognize that customs duties often constitute seriousobstacles to trade; thus negotiations on a reciprocal and mutuallyadvantageous basis, directed to the substantial reduction of the general levelof tariffs and other charges on imports and exports and in particular to thereduction of such high tariffs as discourage the importation even of minimumquantities, and conducted with due regard to the objectives of this Agreementand the varying needs of individual contracting parties, are of greatimportance to the expansion of international trade. The CONTRACTINGPARTES may therefore sponsor such negotiations from time to time.


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(a) Negotiations under this Article may be carried out on aselective product-by-product basis or by the application of suchmultilateral procedures as may be accepted by the contractingparties concerned. Such negotiations may be directed towards thereduction of duties, the binding of duties at then existing levelsor undertakings that individual duties or the average duties onspecified categories of products shall not exceed specified levels.

The binding against increase of low duties or of duty-free

treatment shall, in principle, be recognized as a concessionequivalent in value to the reduction of high duties.


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(b) The contracting parties recognize that in general thesuccess of multilateral negotiations would depend onthe participation of all contracting parties which

conduct a substantial proportion of their external trade with one another.


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(a) the needs of individual contracting parties and individualindustries;(b) the needs of less-developed countries for a more flexible use

of tariff protection to assist their economic development and thespecial needs of these countries to maintain tariffs for revenuepurposes; and(c) all other relevant circumstances, including the fiscal,

developmental, strategic and other needs of the contractingparties concerned.

NEGOTIATIONS SHALL BE CONDUCTED ON A BASIS WHICH AFFORDS ADEQUATE OPPORTUNITY TO TAKE INTO ACCOUNT:


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ARTICLE XXVIIISUMMARY

In order to provide flexibility to members' commercialpolicies, a contracting party may renegotiate its tariffconcession every three years, provided that compensating

concessions are made to the other members primarily affected.

Contracting parties are not obligated to participate inmultilateral trade negotiations, but recognition is given that

success of such negotiations depends on the widest possibleparticipation by trading nations. LDC contracting parties arenot obliged to reduce tariffs needed for economicdevelopment and revenue purposes.

history of trade negotiations

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