tc-20020308-015 wto and tbt presentation
TRANSCRIPT
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WTO and TBT What Are They
and Why do I Care?
Dan Bart, Senior Vice President,
Standards and Special Projects, TIA
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THE WTO
In briefThe World Trade Organization (WTO) is the only
international organization dealing with the global rules
of trade between nations. Its main function is to ensurethat trade flows as smoothly, predictably and freely as
possible.
THE RESULT is assurance and compliance.
THE GOAL is to improve the welfare of the
people of the member countries.
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THE WORLD TRADE
ORGANIZATION (WTO)
At its heart are the WTO agreements, negotiated and
signed by the bulk of the worlds trading nations (140).These documents provide the legal ground-rules for
international commerce. They are essentially
contracts, binding governments to keep their trade
policies within agreed limits.
Although negotiated and signed by governments, the
goal is to help producers of goods and services,
exporters, and importers conduct their business.
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THE WTOs
THREE MAIN PURPOSES
Help trade flow as freely as possible
Serve as a forum for trade negotiations
Set up an impartial means of settling
disputes
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THE WTO
THE MULTILATERAL TRADING SYSTEM --past, present, and future
The World Trade Organization came into being in 1995.
One of the youngest of the international organizations, the
WTO is the successor to the General Agreement on Tariffs
and Trade (GATT) established in the wake of the SecondWorld War.
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THE ORGANIZATION
If the WTOs overriding objective is to help trade flow
smoothly, freely, fairly and predictably, how?
It does this by: Acting as a forum for trade negotiations
Reviewing national trade policies
Administering trade agreements
Settling trade disputes
Assisting developing countries in trade policy issues, through
technical assistance and training programs
Cooperating with other international organizations
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THE STRUCTURE
MINISTERIAL CONFERENCE
GENERAL COUNCIL
GOODS COUNCIL, SERVICESCOUNCIL, INTELLECTUAL
PROPERTY (TRIPS) COUNCIL
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10 Benefits of the WTO
The system helps
promote peace
Disputes are handled
constructively Rules make life easier
for all
Freer trade cuts the costs
of living It provides more choices
of products and qualities
Trade raises incomes
Trade stimulates
economic growth
The basic principlesmake life more efficient
Governments are
shielded from lobbying
The system encouragesgood government
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10 Common Misunderstandings
of the WTO
The WTO dictates policy
The WTO is for free trade
at any cost Commercial interests take
priority over development
and over the environment
and over health andsafety
The WTO destroys jobs,
worsens poverty
Small countries arepowerless in the WTO
The WTO is the tool of
powerful lobbies
Weaker countries are
forced to the join the WTO
The WTO is undemocratic
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THE WTO AGREEMENTS
How can you ensure that trade is as fair as possible,
and as free as is practical? By negotiating rules and
abiding by them.
The WTOs rules -- the agreements -- are the result of
negotiations between the members.
The current set were the outcome of the 1986-94
Uruguay Round negotiations which included major
revision of the original General Agreement on Tariffs
and Trade (GATT).
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DEVELOPING COUNTRIES
Over three-quarters of WTO members are developing or least-
developed countries. Special provisions for these members
are included in all the WTO agreements.
The special provisions include:
longer time periods for implementing agreements and
comments,
measures to increase trading opportunities for these
countries,
provisions requiring all WTO members to safeguard thetrade interests of developing countries,
and support to help developing countries build the
infrastructure for WTO work, handle disputes, and implement
technical standards.
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TECHNICAL BARRIERS
TO TRADE
Technical regulations and industrial standards may
vary from country to country. Having too manydifferent standards makes life difficult for producers and
exporters.
If the standards are set arbitrarily, they could be used as
an excuse for protectionism. The Agreement on Technical
Barriers to Trade (TBT) tries to ensure that regulations,
standards, testing, and certification procedures do not
create unnecessary obstacles.
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THE WTOS MOST
INDIVIDUAL CONTRIBUTION Without a means of settling disputes, the rules-based system would
be worthless because the rules could not be enforced. The WTOs
procedure underscores the rule of law, and it makes the trading
system more secure and predictable. The system is based on
clearly-defined rules, with timetables for completing a case.
First rulings are made by a panel and endorsed (or rejected) by
the WTOs full membership. Appeals based on points of law are
possible.
However, the point is not to just make rulings. The priority is to
settle disputes, through consultations, if possible. By July 2000, 32
out of 203 cases had been settled out of court, without going
through the full panel process.
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TBT: The Code of
Good Practice
Why a Code of Good Practice?
Who can accept the Code?
What does membership entail?
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Why a Code of Good Practice?
Product standards can be prepared by governmental
or non-governmental standardizing bodies. The Codeof Good Practice, contained in Annex 3 of the WTO
TBT Agreement provides disciplines, including those
related to transparency, for the preparation, adoption
and application of standards by all central
governmental, local government, non-governmentaland regional standardizing bodies.
Non-governmental = SDO
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Who can accept the Code?
The Code is open for acceptance to any
standardizing bodies, whether central government,local government or non-governmental (i.e., SDO )
and regional standardizing bodies.
The Code of Good Practice contained in Annex 3 of
the WTO TBT Agreement seeks to bring all standardswithin its purview and provides for [and gives]
transparency in the preparation, adoption and
application of standards.
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What does membership entail?
Members of the TBT Agreement are responsible for the
acceptance and compliance with the Code of Good
Practice by their central government standardizingbodies.
Furthermore, they are required to take such reasonable
measures as may be available to them to ensure also that
local government and non-governmental standardizingbodies (i.e., SDOs) within their territories, and regional
standardizing bodies of which they are members, accept
and comply with the Code.
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What does it mean to me,
I havent accepted any Code!
If SDOs, as non-governmental
standardizing bodies, must accept theCode, Im home free cause I have not
accepted it!!
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USTR/ANSI
ANSI, at the request of the USTR, has
accepted the Code on behalf ofALL ANSISDOs, as related to American National
Standards
Notice provided to ISO several years ago
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Oops, What do I have
to do now?
Annex 3 of TBT sets forth agreements
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Annex 3
Code of good practice for
the preparation, adoption
and application of
standards
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Annex 3 Overview
open to acceptance by any standardizing body within
the territory of a Member of the WTO
Standardizing bodies that have accepted or
withdrawn from this Code shall notify this fact to theISO/IEC Information Centre in Geneva
the standardizing body shall accord treatment to
products originating in the territory of any other
Member of the WTO no less favourable than
products of national origin and to like products
originating in any other country
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Annex 3
standards shall not be prepared, adopted orapplied with a view to, or with the effect of,creating unnecessary obstacles to internationaltrade
where international standards exist or theircompletion is imminent, the standardizing bodyshall use them, or the relevant parts of them, as abasis for the standards it develops, except where
such international standards or relevant partswould be ineffective or inappropriate
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Annex 3
the standardizing body shall play a full part in the
preparation by relevant international standardizing
bodies of international standards
avoid duplication of, or overlap with, the work ofother standardizing bodies
specify standards based on product requirements interms of performance rather than design or
descriptive characteristics at least once every six months publish a work
programme
titles of specific draft standards shall, upon request,be provided in English, French orSpanish.
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Annex 3
the work programme shall indicate the classification
relevant to the subject matter, the stage attained in
the standards development, and the references of
any international standards taken as a basis before adopting a standard, the standardizing body
shall allow a period ofat least 60 days for the
submission of comments on the draft standard by
interested parties within the territory of a Member of
the WTO
take into account the comments received
notice whether the draft standard deviates from
relevant international standards
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Annex 3
provide a copy of a draft standard with any fees
charged for this service (apart from the real cost of
delivery) the same for foreign and domestic parties
promptly publish the standard after it is adopted promptly provide a copy of its work programme and
standards with any fees charged for this service(apart from the real cost of delivery) the same forforeign and domestic parties
make an objective effort to solve any complaints withrespect to the Code.
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Questions?