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Manuela Tortora Chief, Technical Cooperation UNCTAD

Two multilateral organisations dealing with trade: UNCTAD and WTO More differences than similarities. Manuela Tortora Chief, Technical Cooperation UNCTAD. THE DIFFERENCES LIE ON:. The origins The mandates The institutional functioning The thinking on trade and development

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Manuela Tortora Chief, Technical Cooperation UNCTAD

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  1. Two multilateral organisations dealing with trade:UNCTAD and WTOMore differences than similarities Manuela Tortora Chief, Technical Cooperation UNCTAD

  2. THE DIFFERENCES LIE ON: • The origins • The mandates • The institutional functioning • The thinking on trade and development • The strengthsandweaknesses • Thenegotiations

  3. INTERNATIONAL ECONOMIC ENVIRONMENT NATIONAL DEVELOPMENT GOALS TRADE SUPPORT SERVICES POLICIES SUPPLY-SIDE PRODUCTIVE CAPACITY POLICIES TRADE POLICY AND NEGOTIATION UNCTAD’s INTEGRATED VISION OF TRADE AND DEVELOPMENT and THE SCOPE OF ITS WORK:

  4. SOME UNCTAD IDEAS (NOW USED OUTSIDE UNCTAD) • Special and differential treatment for developing countries • Coherence between national policies and international economic environment (MDG 8) • Policy space and “no-one-size-fits-all” • Links between investment, science and technology, ICTs and trade flows • Link between trade and environment, trade and climate change • Role of commodities in international trade • Development-friendly WTO rules on trade in services • LDCs’ terms of WTO accession • Work on debt reduction (HIPC) and debt sustainability • Role of competition law and policies in development processes • Work on trade facilitation • Research on non-tariff barriers to market access

  5. SOME NUMBERS • UNCTAD secretariat: 400 staff • Annual Regular budget: US $ 57 million • Extra-budgetary funds: US$ 34 million (2007) • No field offices

  6. Main UNCTAD publications Annual analytical reports: - Trade and Development Report - World Investment Report - LDCs Report - Information Economy Report - Report on Africa …. and many other publications all available on UNCTAD website: www.unctad.org

  7. THE “STICKING” ISSUES OF UNCTAD XII Accra, 20-25 April 2008

  8. THE CONCEPT OF POLICY SPACE

  9. Par.4: [Developing countries need flexibility and policy space compatible with their specific development conditions, taking into account international obligations, processes and rules.] this sentence was deleted on 23 April

  10. Par.19: [Policy diversity [is necessary to enable each country to attain its – deleted on 23 April] can help countries attain their development priorities and objectives (…) there is no precise model for improved, growth-enhancing governance and institutions]. (…) [But developing countries, bearing in mind their specific environments, have to find an appropriate balance between national policy space and international disciplines and commitments – deleted on 23 April]. The specific policies and practices required for improved, growth-enhancing governance and institutions should be based on detailed and rigorous diagnostic analysis that identifies binding constraints on private-sector-led growth and development. Thus, national strategies for development should take into account the needs and circumstances of each country.]

  11. Par.25: […there is a risk that the implementation of one-size-fits-all policies will have unintended consequences, and may even give results contrary to those produced by same policy elsewhere (…) There is also a need to ensure that future agreements contain sufficient policy space to allow for policy diversity in pursuit of development goals and objectives.] deleted on 23 April Par.42: [UNCTAD should also continue its work on the concept of policy space, bearing in mind that it is particularly important for all countries to strike an appropriate balance between national policy space and international policy disciplines and commitments.] deleted on 23 April

  12. CLIMATE CHANGE

  13. Par.64: Climate change must be addressed owing to its economic and human implications. The United Nations Framework Convention on Climate Change, in accordance with the principle of common but differentiated responsibilities and respective capabilities, is the appropriate forum for negotiating issues related to the reduction of global warming. Climate change response measures can have trade and development implications, in particular for developing countries. Approved on 9 April

  14. Par.107: [UNCTAD, within its mandate, should, without duplicating the ongoing work of other organisations, address the trade, investment and development implications of climate change in support of sustainable development.] New par.107 approved on 23 April : UNCTAD, within its mandate and without duplicating the ongoing work of other organisations, should consider climate change in its ongoing work of assisting developing countries with trade- and investment-related issues in development strategies.

  15. Par.174: [Through its research and [policy] analysis, UNCTAD should help developing countries make informed policy choices to address the challenges posed by climate change in relation to transport strategies (…)] New par.174 approved on 23 April:(…) to address the environmental challenges in relation to transport strategies (…)

  16. ENERGY AND COMMODITIES

  17. Par.3: [For developing countries to reap the benefits of globalisation in the future there is a need to address the impact of commodity dependence, including the volatility of prices, the effective use of revenues in periods of rising commodity prices as well as the diversification of production structures in economies dependent on few commodities.] approved on 23 April

  18. Par.84: [In relation to the current commodity boom, actions are needed to support the effective utilization by commodity-dependent developing countries of the opportunities offered by higher commodity prices to initiate a process of sustained economic growth and poverty reduction, and to [address] [mitigate] the detrimental impact of higher [commodity] [energy and food] prices on the growth and development prospects of [net energy and food-importing] developing countries.] New par.84 approved on 23 April: Actions are needed to support the effective utilisation by commodity-dependent developing countries of the opportunities offered by current higher commodity prices to initiate a process of sustained economic growth and poverty alleviation. In this connection, there is also a need to address the issue of volatility of commodity prices.

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