The WTO and TRADE FACILITATION

BY: SHAILEE SHAH ANANT JAIN PRATIK BANSAL ANKUR VIJAYVARGIYA HARSH PATEL HARDEEP SINH DEVDHARA

What is WTO?
Number of ways to look at this institution Organization for trade opening Forum for governments Settlement of trade disputes

System of trade rules

Functions of WTO
Trade Negotiations Implementation and Monitoring Dispute Settlement Building trade Capacity

Outreach

WTO: How does it work?

Ministerial Conference TPRB General Council DSB Appellate Body Dispute Settlement Panels

Goods Council Committees

Services Council Committees

TRIPS Council
Director-General Secretariat

Investment, competition, Government Procurement)

CTD (Development) CTE (Environment) CRTA (Regionalism) BOP Budget WG (Accessions,

How Does it work?

Secretariat
About 750 staff Headed by a Director-

Members
About 750 staff Headed by a Director-

General (DG)
Budget 2009: 190 millions

General (DG)
Budget 2009: 190 millions

Swiss francs + extrabudgetary funds (about 24 millions Swiss francs)

Swiss francs + extrabudgetary funds (about 24 millions Swiss francs)

How does it work?

Decision Making
Member-driven organisation Consensus (GATT practice),

Meetings
Type of meetings (formal,

even if voting procedures exist

Consensus when no Member

informal, special sessions, consultations, multi- /pluri/bilateral)

All WTO Bodies open to all

formally object to a decision

Negative consensus

Members (specificities for panels and Appellate Body)

Why Trade Facilitation?

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 Mandate for negotiation set out in Annex D of the July package Part of the DDA Single Undertaking No specific definition of trade facilitation but Members mainly narrowed to 3 GATT Articles

Objectives of TF
Expedite movement, release & clearance of goods - including

goods in transit
To clarify and improve GATT Article V, Article VIII, Article X .

to enhance technical assistance and capacity building

to improve effective cooperation between customs and other

appropriate authorities

International Organizations Dealing With Trade Facilitation

WCO UNCTAD WB ISO

World Custom Organization United Nations Conference on Trade and Development World Bank International Standard Organization

ITC

International Trade Center

WTO-Related Articles GATT 1994

Art V Art VIII Freedom of Transit Fees and Formalities connected with importation and exportation Publication and Administration of Trade Regulation.

Art X

Article V: Freedom of Transit

No obstacles or unreasonable charges on transit Freedom of transit most convenient routes Transit;

No delays, no restrictions Exempt from custom duties or other charges Administrative expenses (reasonable, cost of services)

MFN treatment with respect to ALL:

Charges; Regulations; formalities

Article VIII: Fees & Formalities

Limited in amount (cost of services rendered) Not to represent protection to domestic products No import fax for fiscal purposes Import and export formalities should be reduced Document requirements: Less Simplified

Article X: Transparency
Publication and Administration of Trade Regulation Publication ALL Laws, regulation, administrative ruling, and

judicial decisions (import + export)

Measures imposing a new requirement, restriction, or

prohibition on imports, or payment, shall be published before enforcement

decisions on Import and Export. customs matters.

Uniform, impartial, and reasonable administration of laws, and

Judicial/Arbitral System to review and correct action relating to

Evolution of WTO framework

Decisions and Declarations (few examples)

1996 Singapore ministerial conference

Singapore Topics

Trade Facilitation, Investments, Competition, Transparency in Government Procurement

Information Technology Initiative

1998 Geneva ministerial conference

Electronic Commerce

1999 Seattle ministerial conference 2001 Doha ministerial conference

Doha Development Agenda

Doha Development Agenda

14 Nov. 2001: Doha Ministerial Declaration

Define the mandate for the negotiations on various topics as well as other work (implementation)
1 Feb. 2002: First TNC Meeting

Establish the structure and the main principles for the negotiation

Doha Development Agenda

14 Nov. 2001: Doha Ministerial Declaration Define the mandate for the negotiations on various topics as well as other work (implementation)

Single undertaking: Nothing is agreed until everything is agreed

Doha Negotiations:
Negotiating groups meet during special sessions of existing WTO bodies, at the exception of (*) for which new Negotiating Groups have been created. General Council Trade Negotiations Committee Chairman: WTO DG (ex officio)

Structure

Goods - Agriculture - NAMA (*) - Trade Facilitation (*) - Cotton

Services - Services

TRIPS - Geographical Indications

Other Issues

- Dispute Settlement
- Development - Environment

July Decision
17

- Rules (*)

Doha Development Agenda

14 Sep. 2003: Cancun Ministerial Statement

Mid-term review : Existence of important divergences and delays in relation with program established at Doha
Dec. 2003: General Council Decision

Priority given to four issues:

Agriculture (modalities) Non agricultural Market Access [NAMA] (modalities) Singapore issues Cotton (initiative from 4 African countries)

Doha Development Agenda

1 August 2004: Adoption of the July Package

Negotiations start again ( framework )

Singapore issues clarified (only trade facilitation included in Doha Round). Cotton issue included in agricultural negotiations (Subcommittee)

Doha Development Agenda

Dec. 2005: Hong Kong Ministerial Declaration Limited Progress but in the right direction

Deadline for all agricultural export subsidies Agreement on cotton Duty-free/quota-free access for the 32 LDC Members Agriculture and NAMA: framework for full modalities Progress in relation with services negotiations

Doha Development Agenda

June 2006: Decision on transparency for RTAs

July 2006: Negotiations suspended

December 2006: General Council Decision on transparency for RTAs

February 2007: DG: We have resumed negotiations fully across the board

Doha Development Agenda

April 2008: DG signals start of horizontal process

May 2008: Services Chair issues report and draft text

Since July 2007: Draft texts, and revisions, on modalities for Agriculture and NAMA circulated by the chairmen

Thank you