The WTO and TRADE FACILITATION

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

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

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

Ministerial Conference WTO Organization TNC Trade Policy Review General Council Dispute Settlement Council for Trade in Services Committees Council for Trade in Goods Council for TRIPS Committees Committees Working Parties Working Parties Working Parties

Ministerial Conferences • Singapore (1996) • Geneva (1998) • Seattle (1999) • Doha, Qatar (2001) • Cancun, Mexico (2003) (GC: July Package (2004)) • Hong Kong, China (2005)

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

REVIEW OF GATT/WTO PRINCIPLES • Protection only through Tariffs • Reduction and Binding of Tariffs • National Treatment • Most Favored Nation (MFN) • Transparency

NATIONAL TREATMENT • No discrimination between imported and domestic products • assessment of taxes • application of internal regulations GATT Article III

MOST FAVORED NATIONPrinciple of Non-Discrimination • Tariffs and regulations applied without discrimination • WTO Members receive most preferential trade terms GATT Article 1

GATT Principles: Exceptions • 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 Article XXXVI Enabling Clause Special and Differential Treatment Developed countries can treat developing countries more favorably than other WTO Members • Example: longer time periods for implementing Agreements Purpose: provide developing countries and LDCs with opportunities to benefit from the multilateral rules-based system, not exempt them from it.

Coalition Groups in WTO Negotiations All Topics Trade Facilitation Only African Group ACP Group LDC Group Core Group Colorado Group

Background: Why Trade Facilitation at the WTO? • 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

Background: • 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

Objectives of TF Negotiations • Expedite movement, release & clearance of goods - including goods in transit • Enhance TA and CB • More cooperation between customs/other authorities

WT/L/579 Annex D July Package Negotiation Mandate- • Clarify & improve GATT Articles V, VIII, X • SDT - Longer transition periods • Identify needs and priorities • Technical Assistance & support

GATT Article X – Transparency Publication Administration of laws Right to appeal GATT 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 Existing WTO Legal Framework

Clarification of GATT V, VIII, X • Members make proposals For Example, proposal under Article X: Use of internet publication • Currently about 50 proposals • Compiled by Secretariat in TN/TF/W/43/REV.? • Categorized in headings A-M

Article X Article VIII Article V Proposals

TN/TF/W/43

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…

ARTICLE X TRANSPARENCY Headings A-E of Secretariat Compilation TN/TF/W/43/Rev.?

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 proposals TN/TF/W/43/Rev.? (highest number is most recent revision)

ARTICLE VIII FEE$ and FORMALITIES Headings F-K of Secretariat Compilation TN/TF/W/43/Rev.?

F-K Fees &Formalities F. FEES & CHARGES ON IMPORT/EXPORT G. RELEASE AND CLEARANCE OF GOODS H. CONSULARIZATION I. BORDER AGENCY COOPERATION J. FORMALITIES CONNECTED WITH IMPORT/EXPORT K. TARIFF CLASSIFICATION

ARTICLE V TRANSIT Heading L of Secretariat Compilation TN/TF/W/43/Rev.?

L – Transit Proposals • Scope • Basic Freedom of Transit • Exceptions, Regulations, Restrictions and Non-Discrimination • Disciplines on Fees and Charges • Disciplines on Transit Formalities and Document Requirements • Bonded Transport Regime and Guarantees • Regional Transit Agreements and Arrangements • Improved Coordination and Cooperation

M. Customs Cooperation Multilateral Mechanism for Exchange and Handling of Information

Institutional Matters (IM)- TF Task Force Establishment of a trade facilitation task force or committee

WT/L/579 Annex D July Package Negotiation Mandate- • Clarify and improve GATT Articles V, VIII, X • SDT - Longer transition periods • Identify needs and priorities • Technical Assistance & support

SDT 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

SDT in Trade Facilitation Proposals • 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

2 Types Of SDT Proposals • Related to specific proposed measures • transition periods • technical assistance and capacity building (TA/CB) • “best endeavour” • “Horizontal proposals” (without direct link to any specific measures proposed)

SDT Proposals Include: • Self-assessment of Needs • Notification of exceptions- what can or can’t implement at time of entry into force • Formation of capacity building plan • Transition period during which is TA provided • Capacity Verification • Implementation

SDT Proposals • Pre-Signature: • Self-assessment of Needs & Priorities • Post-Signature: • Schedules of Commitments: • Implement immediately • Implement after transitional period • Implement after TACB • Formation of capacity building plan • Capacity Verification • Implementation

The Negotiating Mandate: 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

TA: 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 Organizations IMF, OECD, UNCTAD, World Bank, WCO

For more information: www.wto.org WebPages: • Trade Facilitation • Trade Facilitation Technical Assistance And Capacity Building • Multimedia presentation Trade facilitation document code: TN/TF

WTO TRADE FACILITATION Thank you

The WTO and TRADE FACILITATION