the wto and trade facilitation

The WTO and TRADE FACILITATION

Needs Assessment Conducted In Cooperation with Annex D Organizations and WTO Members

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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

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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 - 600+ staff

Based in Geneva

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MinisterialConferenceWTO

Organization

General Council

Council for Trade in Goods

Council for TRIPS

Council for Trade

in ServicesCommittees

CommitteesCommittees

Working Parties

Working Parties

Working Parties

Dispute Settlement

TradePolicy Review

TNC

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Ministerial Conferences

+ Singapore (1996)

+ Geneva (1998)

+ Seattle (1999)

+ Doha, Qatar (2001)

+ Cancun, Mexico (2003)

+ Hong Kong, China (2005)(GC: July Package (2004))(GC: July Package (2004))

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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

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REVIEW OF GATT/WTO PRINCIPLES

Protection only through Tariffs

Reduction and Binding of Tariffs

National Treatment

Most Favored Nation (MFN)

Transparency

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NATIONAL TREATMENT

• No discrimination between imported and domestic products

– assessment of taxes

– application of internal regulations

GATT Article III

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MOST FAVORED NATIONPrinciple of Non-Discrimination

• Tariffs and regulations applied without discrimination

• WTO Members receive most preferential trade terms

GATT Article 1

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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

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Special and Differential TreatmentSpecial and Differential TreatmentDeveloped countries can treat developing countries more favorably than other WTO Members

Example: longer time periods for implementing Agreements

GATT Article XXXVIEnabling Clause

Purpose: provide developing countries and LDCs with

opportunities to benefit from the multilateral rules-based system,

not exempt them from it.

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Coalition Groups in WTO Negotiations

African Group

ACP Group

LDC Group

Core Group

Colorado Group

All TopicsAll Topics Trade Facilitation OnlyTrade Facilitation Only

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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:

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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:

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Objectives of TF Negotiations

• Expedite movement, release & clearance of goods - including goods in transit

• Enhance TA and CB

• More cooperation between customs/other authorities

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Negotiation Mandate-

• Clarify & improve GATT Articles V, VIII, X

• SDT - Longer transition periods

• Identify needs and priorities

• Technical Assistance & support

WT/L/579 WT/L/579 Annex DAnnex DJuly PackageJuly Package

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Existing WTO Legal Framework

GATT Article X – Transparency• Publication• Administration of laws• Right to appealGATT 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

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Clarification of GATT V, VIII, XClarification of GATT V, VIII, X

Members make proposals

For Example, proposal under Article X:

Use of internet publication More than 70 proposals Compiled by Secretariat in TN/TF/W/43/REV.? Categorized in headings A-M

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Proposals

EC TPKM EC + 9

Korea US (3)/Uganda Korea

Japan + 5 co EC/AUS EC/Paraguay

Canada/Australia Canada/Australia Paraguay Group

TPKM Korea Rwanda, Paraguay

Switzerland

US Canada Singapore

New Zealand Japan/Mongolia No ArticleNo Article

China

SingaporeArgentina

Turkey

New Zealand

Hong Kong

China/Korea

US/India

Dominican Rep

Bolivia + 15 co

Article X Article VIII Article V

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Main Areas Covered Groups of Measures Falling Under Those Areas

Sub-Categories of Measures Falling Under Those Groups (Where Applicable)

GATT Art. First Generation

Second Third

A.PUBLICATION andAvailability 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 X W/6, W/7, W/8, W/17, W/26, W/30, W/32, W/45

W/96 W/114

2. 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 X W/13, W/70 W/89 W/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 X W/13

TN/TF/W/43TN/TF/W/43

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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…TN/TF/W/43/Rev…

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TRANSPARENCY

ARTICLE X

Headings A-E

of Secretariat Compilation

TN/TF/W/43/Rev.?

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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 proposalsSecretariat Compilation of proposalsTN/TF/W/43/Rev.? (highest number is most recent revision)TN/TF/W/43/Rev.? (highest number is most recent revision)

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FEE$ and FORMALITIES

ARTICLE VIII

Headings F-Kof Secretariat Compilation

TN/TF/W/43/Rev.?

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F-K Fees &Formalities

F. FEES & CHARGES ON IMPORT/EXPORT

G. FORMALITIES ON IMPORT/EXPORT

H. CONSULARIZATION

I. BORDER AGENCY COOPERATION

J.. RELEASE AND CLEARANCE OF GOODS

K. TARIFF CLASSIFICATION

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ARTICLE VTRANSIT

Heading Lof Secretariat Compilation

TN/TF/W/43/Rev.?

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L – Transit Proposals1. Operationalization and Clarification of Terms2. Non-discrimination and Policy Objectives3. Disciplines on Fees and Charges

4. Disciplines on Transit Formalities and Document Requirements 5. Improved Coordination and Cooperation6. Disciplines on Restrictions to Freedom of Transit

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M. Customs Cooperation

Multilateral Mechanism for Exchange and Handling of

Information

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• Clarify and improve GATT Articles V, VIII, X





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SDT Mandate for TFSDT 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

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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

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2 Types Of SDT Proposals

Related to specific proposed measurestransition periodstechnical assistance and capacity building

(TA/CB)“best endeavour”

“Horizontal proposals” (without direct link to any specific measures proposed)

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SDT Proposals Include:

1. Self-assessment of Needs2. Notification of exceptions-

what can or can’t implement at time of entry into force

3. Formation of capacity building plan

4. Transition period during which is TA provided

5. Capacity Verification6. Implementation

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SDT Proposals

1. Pre-Signature: o Self-assessment of Needs & Priorities 2. Post-Signature:• Schedules of Commitments:

– Implement immediately– Implement after transitional period– Implement after TACB

• Formation of capacity building plan• Capacity Verification• Implementation

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Needs and priorities

As an integral part of the negotiations, Members shall seek to:– Identify trade facilitation needs and

priorities, especially developing countries and LDCs

– Address concerns related to cost implications of proposed measures

The Negotiating Mandate:

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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 OrganizationsIMF, OECD, UNCTAD, World Bank,

WCO

TA:TA:

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www.wto.org

Trade Facilitation

Trade Facilitation Technical Assistance And Capacity Building

Multimedia presentation

Trade facilitation document code: Trade facilitation document code: TN/TFTN/TF

WebPages:WebPages:

For more information:For more information:

WTO TRADE FACILITATION

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the wto and trade facilitation

Documents

rules of trade

dismantled trade barriers

wto trade agreementsforum

freetrade area

exceptions gatt

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gatt articles background

developing countries