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Introduction to the WTO

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M5: WTO – Cross-Cutting Issues |

 Module 5
WTO – Cross-Cutting Issues
Monitoring and surveillance of
the MTS
Trade Policy Review Mechanism (TPRM)
Notification of trade legislations and measures
Work of WTO councils and committees
Transparency Mechanism for Regional Trade
Agreements (RTAs) and Preferential Trade
Arrangements (PTAs)
WTO’s trade-monitoring exercise in the global
financial and economic crisis
The MTS and the Protection of the
Environment
How does trade liberalization support the
environment?
M5: WTO – Cross-Cutting Issues |
Can WTO Members apply trade-restrictive measures to
protect the environment?
Main WTO rules relevant to trade and environment
Work in the WTO on Trade and Environment
Trade and Climate Change
Enhancing Trade Capacity in Developing
Countries
How does the WTO enhance trade capacity in
developing countries?
Why is it important to enhance trade capacity in
developing countries?
Aid for Trade
WTO Technical Assistance and Training
Other programmes aimed at enhancing trade capacity
Summary
2
 Introduction

Previous modules have introduced the functioning of the WTO, its objectives, basic principles and applicable exceptions, as
well as the main WTO disciplines on trade in goods, services and intellectual property.

This module will introduce issues of current and future relevance for the multilateral trading system (MTS) including:

 How are negotiations organised;

 Monitoring of the MTS;
 Trade and the environment;
 Capacity building for developing and LDC Members.

M5: WTO – Cross-Cutting Issues | Introduction 3

 Monitoring and surveillance of the MTS

What would be the purpose of negotiating detailed trade

rules, if they were not implemented? It is in this context Notification of
that the so-called “monitoring and surveillance” comes Trade Policy Work of WTO
trade
Review councils and
into play. legislations
Mechanism committees
and measures
(TPRM)
The terms monitoring and surveillance cover a wide range
of actions. On one end, there are voluntary or binding
transparency and notification obligations. On the other Transparency
WTO’s trade-
end, there are actions undertaken by Members to ensure Mechanism
monitoring
for RTAs and
implementation of WTO commitments, before having PTAs
exercise
resort to dispute settlement. It also includes reviewing
regularly Members' trade policies through the Trade Policy
Review Mechanism (TPRM), introduced in Module 2.

Monitoring and surveillance of trade policies is one of the
most intense areas of work in the WTO. It contributes to
enhance the transparency and smooth functioning of the
MTS. Regular peer review and collective monitoring aim at
exploring, understanding and discussing Members'
implementation of their WTO obligations. Most recently,
the WTO monitoring and surveillance function has been
expanding to adjust to the necessities of the global trading
environment.
Background information and materials
• WTO organization chart:
http://www.wto.org/english/thewto_e/whatis_e/tif_e/org2
_e.htm
• WTO Publication – WTO Annual Reports:
http://www.wto.org/english/res_e/reser_e/annual_report_
e.htm

M5: WTO – Cross-Cutting Issues | Monitoring and surveillance of the MTS 4

 Trade Policy Review Mechanism (TPRM) (Recap)

As you studied in Module 2, WTO Members review periodically each Member's trade policies and practices under the
Trade Policy Review Mechanism (TPRM). These reviews allow the evaluation of individual Members' trade policies and
practices and their impact on the multilateral trading system (MTS).

All WTO Members are subject to review under the TPRM. The reviews have two broad results: they enable outsiders to
understand a Member’s trade policies and practices and they provide feedback to the reviewed Member.

The reviews focus on the extent to which individual trading entities follow basic WTO principles including transparency
of trade policies and non-discrimination. They also consider restrictions used in trade in services, the record of
adherence to the MTS and participation in dispute settlement.

The reviews take place in the Trade Policy Review Body (TPRB), which is the General Council operating under special
rules and procedures, and comprises all WTO Members.

The reviews are not intended to serve as a basis for dispute settlement procedures or to impose new commitments on
Members.

M5: WTO – Cross-Cutting Issues | Monitoring and surveillance of the MTS 5

 Notification of trade legislations and measures

Notification obligations are related to the principle of transparency. As already explained in Module 2, it is fundamental
that trade regulations are made accessible to governments and traders. Most notifications are accessible on the WTO
website.

Members, in particular, are required to notify through the WTO Secretariat the laws and regulations that they use to
implement their WTO obligations. WTO councils and committees participate in the monitoring and review of WTO
notifications.

E-Learning course

• Did you know there is a WTO E-Learning course on

notification obligations? Transparency and the WTO -
Notification Obligations: https://wtolearning.csod.com

M5: WTO – Cross-Cutting Issues | Monitoring and surveillance of the MTS 6

 Why notify?

Notifications allow all WTO Members to be informed Why to notify?

about other Members' policies affecting trade. They allow Notifications allow all WTO Members to be informed about
other governments and traders to know "who is doing other Members' policies affecting trade.
what".

It should be noted that other countries' notifications

provide an important source of information regarding
market access practices that can help to identify export
possibilities or trade restrictive practices. That is
important as it is often private operators the ones who
are affected by the measures that are notified. All
Members benefit from notifications, but particularly small
developing Members and LDCs, who often do not have
the means to accede to such information elsewhere.

The adequate compliance with notification requirements

however, also entails some challenges. It requires
enhanced cooperation and coordination among the
different national entities involved in providing the data
and other information needed to fulfil notification
requirements.

M5: WTO – Cross-Cutting Issues | Monitoring and surveillance of the MTS 7

 What to notify?

The WTO Agreements contains different notification That is because they depend on the specific commitments
requirements, depending on the subject. set out in each Member’s Schedule, as well as on the
actions that the Member may decide to take.

In general, WTO Members should notify to the WTO their Notification obligations are spread out across all WTO
trade regulations, including new ones and modifications Agreements. There are also WTO decisions and guidelines
to such regulations, as well as measures having an impact containing procedures and rules on notifications.
on trade.

What to notify?
Some WTO Agreements also require Members to submit
In general, WTO Members should notify to the WTO their trade
a notification before a proposed new regulation is regulations, including new ones and modifications to such
implemented, so that trading partners have an regulations, as well as measures having an impact on trade.
opportunity to comment, except in urgent situations. That
is the case, for example, of the SPS and TBT Agreements.
In addition, these Agreements require the designation of
enquiry points, a government office that can provide
upon request information on applied measures.

In some areas, such as agriculture, only a limited number

of notification requirements will apply for a particular
Member.

M5: WTO – Cross-Cutting Issues | Monitoring and surveillance of the MTS 8

 When to notify?
Once joining the WTO, Members notify their
implementing legislation (laws, regulations, decisions of
general application). These notifications are one-time
notifications. Then, Members have an outstanding
obligation to notify any change. These are of an ad-hoc
nature, that is the obligation becomes due only when a
specific measure is introduced or about to be introduced
(they are required to be notified only if and when a
specific action occurs).
In addition to one-time and ad-hoc notifications, there is
a third category of notifications, periodic notifications.
They are to be regularly submitted in line with the
frequency and deadlines established in the corresponding
procedures. They include annual notifications (once every
year) or semi-annual (twice a year) notifications. For
example:
 Members shall notify annually the extent of their
domestic support measures to the Committee on
Agriculture (Article 18.2 of the Agreement on
Agriculture).
M5: WTO – Cross-Cutting Issues | Monitoring and surveillance of the MTS
 Members shall notify on an annual basis a set of tariff
duties and import statistics to the WTO Integrated
Data Base (IDB) – (WT/L/225).
 Members are also required to annually reply to the
questionnaires on Import Licensing Procedures
according to Article 7.3 of that Agreement.
In some cases, WTO Members are required to notify that
they had not undertaken a certain action. An example is
the notification required under the Agreement on
Agriculture regarding the maintenance of export
subsidies, even if no subsidies are maintained.
Another category refers to a notification made by
Member on behalf of another Member that has not
complied with an outstanding obligation. This notification
is quite rare and is known as "reverse notification".
When to notify?
Members have an outstanding obligation to notify any change.
The obligation becomes due only when a specific measure is
introduced or about to be introduced.
9
 How to notify?

In the WTO, all notifications received by the Secretariat should be directed - regardless of the subject matter or the
requirement under which they are being submitted - to the Central Registry of Notifications (CRN). The CRN receives all
notifications and registers them in a database. After the notification has been recorded, it is directed to the corresponding
operational division within the Secretariat.

Submission procedure

Member

Central Registry of Notifications

Fax: +41 (0)22 739 56 38
Email: CRN@wto.org

Operational WTO Division

Dissemination

M5: WTO – Cross-Cutting Issues | Monitoring and surveillance of the MTS 10

 In many cases, guidelines for notifications have been Notifications:
approved by WTO committees or bodies. In those cases
where prescribed formats of notifications have been Notifications submitted on paper should be addressed as follows:
adopted, such formats should be used. Notifications World Trade Organization (WTO)
Attention: Administrator, Central Registry of Notifications (CRN)
submitted by other Members (and available in the WTO
Centre William Rappard
website) also provide a useful source of notification 154, Rue de Lausanne
samples. CH-1211, Geneva 21
Switzerland
To know more on notification requirements, please refer
Notification submitted as fax:
to the handbook on notifications. World Trade Organization (WTO)
Attention: Administrator, Central Registry of Notifications (CRN)
Notifications may be submitted on paper, by fax or as Fax number: +41 22 739 5638
electronic attachments to e-mails.
Notifications submitted as electronic attachments to e-mails:
CRN@wto.org
Example of notification:
http://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S003.
aspx Background information and materials

• Technical Cooperation Handbook on Notification Requirements

(documents in the series WT/TC/NOTIF) – by subject:
http://www.wto.org/english/tratop_e/devel_e/teccop_e/tctdn
ot_e.htm
• Central Registry of Notifications (WT/INF/124):
http://www.wto.org/english/tratop_e/devel_e/teccop_e/tctdn
ot_e.htm
• Updating of the Listing of Notification Obligations and the
Compliance therewith as set out in Annex III of the Report of
the Working Group on Notification Obligations and Procedures
(G/L/223/Rev.22): http://docsonline.wto.org/

M5: WTO – Cross-Cutting Issues | Monitoring and surveillance of the MTS 11

 Work of WTO councils and committees

Various WTO councils and committees seek to ensure that the WTO Agreements are being properly implemented.
They also serve as a forum for discussions on various issues.

Monitoring and surveillance in the WTO takes place in all its bodies and committees, through reviews of notifications,
questions, examination of individual policies under the relevant WTO Agreements, and other monitoring procedures.
Generally, the right of Members to request information, necessary for any monitoring, flows from the obligations of
domestic publication and notification to the WTO. However, full transparency also requires an understanding of what
is being notified. This is where the WTO system of “peer review” in committees and other bodies comes into play.

Exposing these policies and measures to collective scrutiny or "peer review" within the WTO Committees gives
incentives to resolve the differences at an early stage, without need to seek resort through dispute settlement.

M5: WTO – Cross-Cutting Issues | Monitoring and surveillance of the MTS 12

M5: WTO – Cross-Cutting Issues | Monitoring and surveillance of the MTS 13
 Transparency Mechanism for Regional Trade Agreements (RTAs) and
Preferential Trade Arrangements (PTAs)
As introduced in Module 3, regional trade agreements (RTAs)
constitute an important and growing feature of the multilateral
trading system. Over 500 RTAs have been notified to the WTO.
As part of the negotiations in the Doha Round of Negotiations, the
General Council adopted the Decision on a "Transparency
Mechanism for Regional Trade Agreements" (WT/L/671) on 14
December 2006. The Transparency Mechanism for RTAs seeks to
strengthen the WTO monitoring of RTAs and enhance
understanding on their effects on the MTS.
As you also studied Module 3, developed Members are enabled to
provide non-reciprocal preferential treatment to developing and
LDC Members under Preferential Trade Arrangements (PTAs)
pursuant to the Enabling Clause. In December 2010, the General
Council took a decision to establish a transparency mechanism for
non-reciprocal preferential schemes - the Transparency
Mechanism for Preferential Trade Arrangements (PTAs). The new
Transparency Mechanism for PTAs lays out a procedure similar to
the one laid out in the Transparency Mechanism for RTAs, by
which PTAs notified under the Enabling Clause (which essentially
means GSP schemes) are to be considered by the CTD (WT/L/806).
This Mechanism is also being applied on a provisional basis.
M5: WTO – Cross-Cutting Issues | What is the WTO?
Background information and materials
Legal documents:
• The Marrakesh Agreement Establishing the WTO
(Article III:3):
http://www.wto.org/english/docs_e/legal_e/04-
wto_e.htm#articleIII
• The Understanding on Rules and Procedures
Governing the Settlement of Disputes:
http://www.wto.org/english/docs_e/legal_e/28-
dsu_e.htm
Link to Understanding the WTO – Settling disputes:
• Understanding the WTO – The WTO dispute
settlement system: a unique contribution
http://www.wto.org/english/thewto_e/whatis_e/t
if_e/disp1_e.htm
• More on dispute settlement:
http://www.wto.org/english/tratop_e/dispu_e/dis
pu_e.htm
• The WTO dispute settlement system training
module:
http://www.wto.org/english/tratop_e/dispu_e/dis
p_settlement_cbt_e/signin_e.htm
• Map of disputes between WTO Members:
http://www.wto.org/english/tratop_e/dispu_e/dis
pu_maps_e.htm
14
 Transparency Mechanism for RTAs
WHAT RTAs NEED TO BE NOTIFIED?
The mechanism applies to all RTAs whether notified
under Article XXIV of the GATT (RTAs on trade in goods),
Article V of the GATS (RTAs on trade in services) or the
Enabling Clause (arrangements on trade in goods among
developing countries only).
HOW IT WORKS?
Transparency requirements on RTAs include early
announcement of RTAs (either under negotiation or
signed, but not yet in force), notification of RTAs,
consideration of the RTA by the WTO Membership and
subsequent notification and reporting.
The TM requires the WTO Secretariat to prepare factual
presentations of RTAs notified to the WTO. The factual
presentation, which contains the legal provisions of the
agreement and also an analysis of the trade opening that
is to take place between the parties, provides the basis
for discussions in the relevant WTO Committees.
M5: WTO – Cross-Cutting Issues | Monitoring and surveillance of the MTS
The Committee on Regional Trade Agreements is the
responsible body for RTAs notified under Article XXIV of
the GATT or Article V of the GATS. RTAs on trade in goods
notified under the Enabling Clause should be directed to
the Committee on Trade and Development (CTD),
convening in dedicated session.
Background information and materials
• WTO website – Transparency mechanism for RTAs:
http://www.wto.org/english/tratop_e/region_e/trans_mecha
_e.htm
• Text of the 2006 General Council Decision on the
Transparency Mechanism for RTAs (WT/L/671):
http://docsonline.wto.org/imrd/directdoc.asp?DDFDocument
s/t/WT/L/671.doc
• Notification format for RTAs:
http://www.wto.org/english/tratop_e/region_e/notification_
e.doc
• RTAs database:
http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx
15
 WTO’s trade-monitoring exercise in the global financial and economic
crisis

The WTO monitoring and surveillance function has been Background information and materials
expanding to adjust to the necessities of the global trading system.
As a consequence of the global financial crisis and the latent risk • WTO website: Report on recent trade
of protectionist measures, Members requested the Secretariat to developments
prepare monitoring report on developments in the international http://www.wto.org/english/news_e/archive_e/tr
dev_arc_e.htm
trading environment.

The objective is to ensure that the rules-based MTS system

continues to serve as an insurance policy against protectionist
measures which restrict or distort trade, in particular during
difficult times of economic crisis and social instability. The neutral
and comprehensive monitoring reports (*) have become a regular
feature of the WTO activities.

(*)Note: WTO Report on Developments in the International Trading

Environment

M5: WTO – Cross-Cutting Issues | Monitoring and surveillance of the MTS 16

 The MTS and the Protection of the Environment

In the Preamble to the Agreement Establishing the WTO,

sustainable development, and the protection and How does trade Can WTO Main WTO rules
liberalization Members apply relevant to trade
preservation of the environment are recognised as support the and
trade-restrictive
fundamental goals of the organization. For WTO Members, environment? measures ? environment
the aims of keeping an open and non-discriminatory MTS
on the one hand, and protecting the environment on the
other, are mutually supportive.
Work in the
The WTO is not an environmental protection agency and Trade and
WTO on Trade
Climate Change
there is no specific WTO Agreement dealing with the and Environment
environment. However, environmental policies intersect
with international trade rules in different ways. The WTO
Agreements provide significant scope to protect the
Background information and materials
environment, while maintaining trade open. Trade
liberalization has also the potential to contribute with the • WTO website – Trade and environment:
protection of the environment and the fight against http://www.wto.org/english/tratop_e/envir_e/envir_e.htm
climate change. • An introduction to trade and environment in the WTO:
http://www.wto.org/english/tratop_e/envir_e/envt_intro_e
The WTO supports sustainable development and the .htm
• The Committee on Trade and Environment (CTE):
environment through its committees and bodies. The WTO
http://www.wto.org/english/tratop_e/envir_e/wrk_committ
Committee on Trade and Environment (CTE) covers the ee_e.htm
main issues at the intersection of trade and environment.

M5: WTO – Cross-Cutting Issues | The MTS and the Protection of the Environment 17
 How does trade liberalization support the environment?

Trade openness contributes to sustainable development and the protection of the environment in different ways. The
purpose of trade liberalization and the WTO’s key principle of non-discrimination promote the efficient allocation of
resources, economic growth and increased income levels that in turn provide additional possibilities for protecting the
environment. The importance of trade’s contribution to efforts on sustainable development and the environment has
been recognized in such forums as the 1992 Rio Summit, 2002 Johannesburg Summit and 2005 UN World Summit.

Trade liberalization also means more open markets for goods and services that can benefit the environment. The
multilateral trading system, as a whole, provides a framework of transparent and predictable rules which facilitate
global trade in accordance with the objective of sustainable development.

M5: WTO – Cross-Cutting Issues | The MTS and the Protection of the Environment 18
 Can WTO Members apply trade-restrictive measures to protect the
environment?

Yes. WTO Members can adopt trade-related measures

aimed at protecting the environment provided a number
of conditions are fulfilled to avoid their misuse. Aim of the MTS
WTO Members generally consider that the protection of
the environment and health are legitimate objectives. Right to take Avoid
However, it is also acknowledged that environmental measures to unnecessary
requirements set to address such objectives could affect protect the obstacles to
exports adversely. Environment Trade

WTO rules set up the appropriate balance between the

right of Members to take measures, including trade
restrictions aimed at protecting the environment, and the
right of other Members to benefit from more open trade.
In general, those rules set conditions aimed at avoiding
that such measure are not applied arbitrarily and are not
used for protectionist purposes (preventing “green
protectionism”).

M5: WTO – Cross-Cutting Issues | The MTS and the Protection of the Environment 19
 Main WTO rules relevant to trade and environment
You have studied the main WTO rules relevant to trade
and the protection of the environment throughout the
course. They include:
 General exceptions: they allow trade-restrictive
measures necessary to protect human, animal or plant
life or health (Articles XX(b) of GATT and Article XIV(b)
of GATS), as well as relating to the conservation of
exhaustible natural resources (Article XX(g) of GATT).
The provision seeks, among other things, to ensure
that environmental measures are not applied
arbitrarily and are not used as disguised protectionism.
 TBT Agreement: deals with product regulations,
standards (including labelling requirements for
environmental purposes), testing and certification
procedures.
 SPS Agreement: deals with food safety and animal and
plant health.
M5: WTO – Cross-Cutting Issues | The MTS and the Protection of the Environment
A number of GATT/WTO disputes have involved the
examination of trade-restrictive environmental measures.
Such measures have sought to achieve a variety of policy
objectives — from conservation of sea turtles from
incidental capture in commercial fishing to the protection
of human health from risks posed by air pollution. WTO
case law has affirmed that WTO rules do not take
precedence over environmental concerns. WTO Members
can adopt trade-related measures to protect the
environment and human health and life as long as such
measures comply with GATT rules, or fall under the
exceptions to these rules.
Background information and materials
• To know more about GATT/WTO environmental disputes:
http://www.wto.org/english/tratop_e/envir_e/edis00_e.htm
• WTO rules and environmental policies – Introduction:
http://www.wto.org/english/tratop_e/envir_e/envt_rules_in
tro_e.htm
• WTO rules and environmental policies - GATT exceptions:
http://www.wto.org/english/tratop_e/envir_e/envt_rules_e
xceptions_e.htm
• Environmental disputes in GATT/WTO:
http://www.wto.org/english/tratop_e/envir_e/edis00_e.htm
20
 Work in the WTO on Trade and Environment

The CTE has contributed to identifying and understanding the
relationship between trade measure and environmental measures
in order to promote sustainable development. Two important
items of work of the CTE are the effects of environmental
requirements on market access, and labelling requirements for
environmental purposes. Environmental requirements can impede
trade and even be used as an excuse for protectionism. The
answer is not to weaken environmental standards, but to set
appropriate standards and enable exporters to meet them.
Background information and materials
• The Committee on Trade and Environment (CTE):
http://www.wto.org/english/tratop_e/envir_e/wrk
_committee_e.htm
• Technical Barriers to Trade (TBT):
http://www.wto.org/english/tratop_e/tbt_e/tbt_e
.htm

Other WTO bodies are also important. For example, the

committee administering the TBT Agreement is where
governments share information on actions they are taking and
discuss how some environmental regulations may affect trade.

M5: WTO – Cross-Cutting Issues | The MTS and the Protection of the Environment 21
 Trade and Climate Change

The issue of climate change, per se, is not part of the WTO's on-going work programme and there are no WTO rules
specific to climate change. However, the WTO is relevant because climate change measures and policies intersect with
international trade in a number of different ways.

First, trade openness can help efforts to mitigate and adapt to climate change, for example by promoting an efficient
allocation of the world's resources (including natural resources), raising standards of living (and hence the demand for
better environmental quality) and improving access to environmental goods and services.

Second, the WTO is relevant because national measures to mitigate and adapt to climate change may have an impact
on international trade (as they may modify conditions of competition) and may be subject to WTO rules. The WTO
“tool box” of rules can be relevant, therefore, to the examination of climate change measures. Moreover, WTO rules, as
a whole, offer a framework for ensuring predictability, transparency and the fair implementation of such measures.

M5: WTO – Cross-Cutting Issues | The MTS and the Protection of the Environment 22
 Enhancing Trade Capacity in Developing Countries

The majority of WTO Members are developing countries. Why is it

How does the
important to
Trade plays an important role in fostering economic growth in WTO enhance
enhance
developing countries. As explained in Module 2, many trade capacity Aid for Trade
trade capacity
in developing
developing Members, and in particular LDCs, face particular countries?
in developing
difficulties in benefiting from trade liberalization and the MTS. countries?

The WTO’s core work is to regulate international trade, reduce Other

WTO
programmes
trade barriers and ensure a level playing field for all its Technical
aimed at
Members, developed and developing, big and small. WTO Assistance
enhancing
and Training
Members have recognized the need for all their people to trade capacity
benefit from the increased opportunities and welfare gains
that the MTS generates. The objective is to translate more
open trade into real, increased and perceived benefits for all.
Background information and materials
In that way, the WTO also contributes to achieve the UN
Millennium Development Goals (MDG) (*). • WTO website – Trade and Development:
http://www.wto.org/english/tratop_e/devel_e/devel_e.
htm
(*) Note: To know more about the WTO and the UN MDG, please click • Building Trade Capacity:
on here: http://www.wto.org/english/tratop_e/devel_e/build_tr_
http://www.wto.org/english/thewto_e/coher_e/mdg_e/mdg_e.htm capa_e.htm
• GTAD: http://gtad.wto.org/

WTO video – interview:

• What can WTO Members do to make trade work for
development:
http://www.wto.org/english/forums_e/debates_e/debat
e4_e.htm

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 23

 How does the WTO enhance trade capacity in developing countries?

WTO Members have recognized that building trade Background information and materials
capacity is an essential complement to the DDA. The
programmes and initiatives directed to enhance trade • Building Trade Capacity:
capacity in developing and LDC Members include: http://www.wto.org/english/tratop_e/devel_e/build_tr_
capa_e.htm
 The Aid for Trade initiative;
E-Learning courses:
 Trade-related technical assistance and training;
• Get a list of all WTO E-Learning courses here:
 Other initiatives: Enhanced Integrated Framework https://wtolearning.csod.com
(EIF), Standards and Trade Development Facilities
(STDF).

WTO matters related to trade and development are

treated in almost all WTO bodies on an issue or
agreement specific basis. The Committee on Trade and
Development (CTD) and its Sub-Committee on LDCs (both
of which comprise of all WTO Members) are the two WTO
bodies that deal exclusively with matters related to trade
and development.

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 24

 Why is it important to enhance trade capacity in developing
countries?

As introduced in Module 2, many countries do not have the human, institutional and infrastructural capacity to
participate effectively in international trade. Without that, these countries will not be able to expand the quantity and
quality of goods and services they can supply to world markets at competitive prices.

The WTO's trade rules, negotiating forum and dispute settlement system are not goals in themselves. They are
necessary preconditions for free and predictable trade, but are not always sufficient to create results. WTO Members
have recognized that the MTS needs to be accompanied by improvements in trade capacity.

Trade capacity involves:

Human capacity Institutional capacity Infrastructure

Refers to the professionals
governments rely on for advice
on WTO matters. A country
that lacks these professionals is
clearly at a disadvantage when
implementing existing trade
agreements, when negotiating
new ones, and when handling
trade disputes.
Refers to the institutions,
businesses and governments
rely on to, such as customs,
national standards authorities,
and the delegation
representing the Member at
the WTO.
Refers to the physical setup
required for trade to happen
(e.g. roads, ports, and
telecommunications). Those
countries lacking infrastructure
will find it difficult to develop
trade.

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 25

 Aid for Trade

The Aid for Trade initiative was launched at the Hong Kong Background information and materials
Ministerial Conference in December 2005 (*). This programme
• WTO website – Aid for Trade:
aims to help developing countries, particularly LDCs, develop the http://www.wto.org/english/tratop_e/devel_e/a
trade-related capacity and infrastructure they need to implement 4t_e/aid4trade_e.htm
and benefit from the WTO Agreements and more broadly to • Aid for Trade – Is it working:
http://www.wto.org/english/res_e/booksp_e/a4
expand their trade. t_oecd_e.pdf

Trade has the potential to be an engine for growth in developing WTO Videos
countries. Many developing countries face barriers that prevent • How to move from commitments to
implementation on Aid for Trade?
them from benefiting from the MTS. Some of these barriers are in http://www.wto.org/english/forums_e/debates_
export markets. However, internal barriers, such as inadequate e/debate15_e.htm
financing or poor infrastructure, can be just as difficult for
exporters to overcome.
(*) Note: Hong Kong Ministerial Declaration, para. 57.
It is recognized that Aid for Trade (AfT) cannot be a substitute for
the development benefits that will result from the successful
conclusion of the DDA, particularly on market access. Nevertheless,
it can be a valuable complement to the DDA. The DDA and the AfT
initiative should help developing and LDC Members reap the
benefits of trade liberalization in ways which promote
development and economic growth.

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 26

 What is "Aid for Trade"?

Aid for Trade includes the following four main areas:

Technical assistance
• Helping countries to formulate trade policies, negotiate more effectively and implement outcomes (explained in the
next section).

Infrastructure

• Building roads, ports and telecommunications that link global markets.

Productive capacity building

• Investing in industries and sectors so countries can diversify exports and build on comparative advantage.

Adjustment assistance

• Helping with the transition costs from liberalization, such as those derived from tariff reductions.

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 27

 How it works (*)?

Opening up trade regimes and enhancing market access is often not sufficient to enable developing countries – and in
particular LDCs – to participate and reap the potential benefits of trade liberalization. The global economic downturn has
emphasized the urgency of addressing the needs of these countries.

The Aid for Trade (AfT) initiative addresses the constraints of developing countries by providing more and better aid for
trade. That includes strengthening both the demand-side and the donor response, while working to better bridge the gap
between these at the country, regional and global level.

The AfT initiative is based on setting objectives and producing results, e.g. building trade capacity, enhancing growth
prospects and reducing poverty. It seeks to complement trade reforms (multilateral, regional or national) and promote
more equitable distribution of global benefits across and within developing countries. The initiative is guided by the 2005
Paris Declaration on Aid Effectiveness, which emphasises local ownership as one of the key factors of effective aid.
Mainstreaming trade into national plans for economic development is fundamental to AfT.

The flow of AfT resources has increased year-on-year since 2005, and despite the more challenging global economic
environment, donors have reaffirmed commitments to respect their AfT funding commitments, or even to increase them.

(*) Note: based on document - Aid for Trade: is it working? (OECD, WTO)

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 28

 What is the role of the WTO in Aid for Trade?

As you know, the WTO delivers technical assistance and capacity building, but cannot deliver development assistance as it
is not a development agency.

The WTO serves as platform for the actions of a large number of actors (international organizations, regional development
banks, donors, civil society). This is where the "coherence mandate" explained in Module 1, comes in. It is an example of
partnership at work.

The WTO spotlights AfT through periodic meetings of its Committee on Trade and Development (CTD) and through annual
AfT debates in the WTO’s General Council, as well as through Global Reviews on AfT. These events serve to focus on
objectives and measure progress of AfT.

The WTO also supports improved ways of monitoring and evaluating the AfT initiative, and encourages mainstreaming of
trade into national development strategies by partner countries.

The WTO delivers only a small part of overall AfT. WTO assistance concentrates on providing trade-related technical
assistance (TRTA) – introduced in the next section. Technical assistance is considered to be the WTO Secretariat’s
contribution to AfT.

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 29

 Implementation and Monitoring of Aid for Trade

In February 2006 the WTO established a Task Force, with Background information and materials
the aim of “operationalizing” AfT. The Task Force
recommended that AfT should focus on identifying the • WTO website – Aid for Trade:
http://www.wto.org/english/tratop_e/devel_e/a4t_e/aid4tra
needs within recipient countries, responding to donors
de_e.htm
and acting as a bridge between donors and developing
countries. It also recommended the establishment of a
monitoring body in the WTO, which would undertake a
periodic global review based on reports from a variety of
stakeholders.

Monitoring and evaluation take place on three levels:

global level, donor level, and country and regional level.

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 30

 WTO Technical Assistance and Training
Helping developing countries participate more fully in the
MTS is one of WTO's most important activities.
The bulk of WTO technical assistance (TA) is directed
towards helping government officials from beneficiary
countries to better understand WTO rules so that they
can better exercise their rights of Membership, negotiate
more effectively with their trading partners and thus, reap
the benefits of the MTS. The WTO's TRTA programmes
and capacity building efforts are one of main components
in the Aid for Trade work programme.
Technical assistance programmes are designed with a
view to gradually and progressively moving to higher
levels of learning. The objective is to enhance the
efficiency of TA and achieve sustainable capacity-building
in beneficiary countries.
M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries
Annually, the WTO Secretariat organizes around 500
Geneva - and field - based TA activities, trains several
thousands of officials, both representing some 30,000
participant/days of training. Priority attention is given to
LDCs. Outreach TA activities include work with
parliamentarians and universities.
Within the WTO Secretariat, the Institute for Training and
Technical Cooperation (ITTC) is responsible for the design,
coordination and implementation of WTO TA. The regular
WTO body overseeing TA activities is the CTD.
The WTO is implementing Results Based Management
(RBM) to improve the delivery of WTO's technical
assistance and capacity building programmes. The
objective is to strengthen the effectiveness, efficiency and
accountability of such programmes.
31
 In 2010, the Global Technical Assistance Database (GTAD)
was created to promote coherence and coordination, as
well as to ensure transparency in the delivery of technical
assistance and capacity building (http://gtad.wto.org)
M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries
Background information and materials
• WTO website – Technical Assistance and Training:
http://www.wto.org/english/tratop_e/devel_e/teccop_e/tct_
e.htm
• Trade-related technical assistance fact sheet:
http://www.wto.org/english/tratop_e/devel_e/teccop_e/ta_f
actsheet_e.htm
• Global trade-related technical assistance database (GTAD):
http://gtad.wto.org/
E-Learning courses:
• Get a list of all WTO E-Learning courses here:
https://wtolearning.csod.com
32
 Who benefits from WTO technical assistance and training?

WTO's technical assistance activities are primarily geared
towards government officials from developing and LDC
Members and acceding countries responsible for WTO-
related issues, including the implementation of WTO
Agreements.
Background information and materials
• WTO website – Technical Assistance and Training:
http://www.wto.org/english/tratop_e/devel_e/teccop_e/tct_
e.htm

Efforts are being channelled to gradually reach a broader

audience, including academia, civil society,
parliamentarians and private sector representatives.
Some technical assistance activities and programmes are
directed specifically towards these groups.

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 33

 Technical Assistance Activities
The WTO seeks to enhance coherence in the design and
the implementation of the WTO technical assistance (TA)
activities, exploiting synergies among its various training
products and programmes.
In order to achieve its objectives, ITTC prepares a biennial
Technical Assistance and Training Plan ("The TA Plan"),
which provides the WTO Secretariat's backbone for the
delivery of TA activities. The TA Plan features the types of
activities delivered by the WTO Secretariat and sets out the
objectives for the planning and delivery of such activities
for the period concerned. The TA Plan is adopted by the
CTD. Most activities can be grouped broadly in five main
categories:
 General WTO related TA and Training:
http://www.wto.org/english/tratop_e/devel_e/train_e/
general_courses_e.htm
 Specialized and advanced TA and Training:
http://www.wto.org/english/tratop_e/devel_e/train_e/
specialized_courses_e.htm
• E-Learning: https://wtolearning.csod.com/
M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries
 Academic programmes:
http://www.wto.org/english/tratop_e/devel_e/train_e
/academic_support_e.htm
 Training programmes and internships:
http://www.wto.org/english/tratop_e/devel_e/train_e
/trainee_programmes_e.htm
 WTO Reference Centres:
http://www.wto.org/english/tratop_e/devel_e/train_e
/ref_centres_e.htm
Since 2010, the Secretariat has put in place a Progressive
Learning Strategy (PLS) aimed at promoting higher levels
of learning, with a view to building and sustaining the
long-lasting human and institutional capacity of
beneficiary countries to participate more effectively in the
MTS.
Background information and materials
• Technical Assistance Activities:
http://www.wto.org/english/tratop_e/devel_e/train_e/prod
ucts_e.htm
• Technical Assistance and Training – List of activities for
2010 - 2011:
http://www.wto.org/english/tratop_e/devel_e/train_e/cour
se_details_e.htm
34
 The Progressive Learning Strategy

The Progressive Learning Strategy (PLS) focuses on mutual reinforcement of progressive training activities by taking full
advantage from WTO on-line E-Learning, while maximizing the effectiveness and interactivity of more advanced training.

The PLS sets up two training paths, one for "generalists" (government officials who need a broad knowledge of the WTO
to conduct their work) and one for "specialists" (government officials that require in-depth knowledge in a specific area).
Each training path consists of a sequence of three training levels:

PLS Level 1- Basic level

• Relies principally on the online E-learning Introduction course (the course you are taking now). This is the starting
point for all those going through the various training paths, whether generalists or specialists. It provides a basic
introduction to the WTO including its objectives, functions structures, basic principles and exceptions. In addition,
there is an Introduction course only for LDCs.

PLS Level 2 - Intermediate level

• Following completion of the first level of training, the paths for generalist and specialists diverge. Level 2 courses aim
at deepening the understanding of the WTO Agreements in general (generalists), or of a specific Agreement or trade-
related subject (specialists).

PLS Level 3 - Advanced level

• Following completion of the second level of training, the participants may apply to more advanced training. Level 3
also comprises two paths (generalists and specialists). These courses seek to consolidate and broaden the knowledge
acquired in level 2.

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 35

 WTO PROGRESSIVE TRAINING PATHS

Generalists Specialists

Level 3
Level 3 ADVANCED THEMATIC
ATPC Geneva, Region,
E-Learning

Level 2
Level 2 (BASIC) THEMATIC
RTPC, MTA Geneva, Region,
E-Learning

Level 1
INTRODUCTION COURSE
E-Learning / Geneva-based for LDCs

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 36

 WTO Chairs Programme

The WTO Chairs Programme aims at providing support to Background information and materials
teaching and research on trade issues by universities and
research institutions in developing countries and LDCs. • WTO Chairs Programme (WPC):
The objective is to enhance their contribution to the http://www.wto.org/english/tratop_e/devel_e/train_e/chairs
analysis, formulation and implementation of national _prog_e.htm
trade policies. • List of WTO Chairs :
http://www.wto.org/english/tratop_e/devel_e/train_e/chairs
_selection_e.htm
While the programme provides direct support to
academic institutions from developing countries, it is also
open to academic institutions in developed countries,
particularly those who cooperate closely with developing-
country counterparts.

Academic institutions awarded WTO Chairs receive

support in the following areas: course preparation,
teaching, research and outreach activities. The Chairs are
selected through a competitive bidding process.

An Advisory Board oversees and participates in all

substantive decisions regarding the programme. Chaired
by the WTO Secretariat, it comprises academic partners,
beneficiary academic institutions, donors and other
relevant representatives. It reports to the CTD in the
context of the Secretariat's overall training and technical
co-operation activities.

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 37

 WTO Reference Centres

The WTO Reference Centres bring the global trading Background information and materials
system closer to the local level. Their main purpose is to
act as focal points for the WTO in the field for the • More about Reference Centres:
transmission of WTO information. They provide with http://www.wto.org/english/tratop_e/devel_e/train_e/ref_ce
dedicated physical locations situated in beneficiary ntres_e.htm
countries from where government officials and the public
in general can have access to information - including WTO
databases- via the WTO Internet website, on CD – ROMs,
in print, as well as in electronic format. In that way, WTO
Reference Centres contribute to the decentralization of
information.

Around 150 RCs have been established in the World, in

over 100 countries. They can be established at the level of
the government (i.e. a Ministry), a University for the
academic community, and at the level of organized
business (E.g. Chamber of Commerce).

Reference Centres may also be used as enquiry points to

fulfil notification requirements, as well as to participate in
E-Learning courses.

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 38

 Other programmes aimed at enhancing trade capacity

Other programmes aimed at enhancing trade capacity in Background information and materials
developing countries and LDCs include:
• EIF:
http://www.wto.org/english/tratop_e/devel_e/teccop_e/if_e.
The Enhanced Integrated Framework (EIF) for LDCs htm
• STDF: http://www.standardsfacility.org/
Is the main mechanism through which LDCs access Aid for • JITAP: http://www.jitap.org/info-e.htm
Trade. It is a process that was established to support LDCs in
trade capacity – building and integrating trade issues into
overall national development strategies. The core agencies
participating in the EIF include the IMF, International Trade
Centre, UNCTAD, UN Development Programme, the World
Bank and the WTO.

Standards and Trade Development Facility (STDF)

It’s a joint initiative of the WTO, World Health Organization,

World Bank, World Organization for Animal Health, and Food
and Agriculture Organization. The objective of this Aid for
Trade initiative is to help developing countries enhance their
capacity to analyse and implement SPS standards, improve
their human, animal and plant health situation and hence
their ability to increase market access. Work includes sharing
information on technical cooperation and finance for
projects.

M5: WTO – Cross-Cutting Issues | Enhancing Trade Capacity in Developing Countries 39

 Summary

This Module has introduced some cross-cutting issues of current and future relevance for the multilateral trading system
(MTS).

It started by introducing one of the main activities of the WTO, that is, the administration and monitoring of the WTO
Agreements. Monitoring, which takes place in all WTO bodies and committees, contributes to enhance the transparency
and smooth functioning of the MTS. It comprises a wide range of activities from reviewing Members' individual trade
policies, to notifications and other monitoring procedures.

The link between trade and environment can be seen from two different angles: the impact of trade on the environment
and the impact of environmental policies on trade. Trade and environmental measures intersect in different ways. The
WTO Agreements provide significant scope to protect the environment, while maintaining trade open. WTO rules set forth
conditions aimed at avoiding that such measure are not applied arbitrarily and are not used for protectionist purposes.

Technical assistance and capacity building are core elements of WTO's work. Capacity building involves providing
assistance to build the supply-side capacity and infrastructure needed in these countries to expand their trade through the
Aid for Trade initiative. The WTO itself provides technical assistance to beneficiary countries to better understand WTO
rules so that they can implement them in ways which will boost their trading regimes. It also helps them to better exercise
their rights of Membership and negotiate more effectively with their trading partners.

M5: WTO – Cross-Cutting Issues | Summary 40