Development Dimension:Key issues

1. Development Dimension:Key issues Dr. Salma Chaudhuri Zohir Bangladesh Institute of Development Studies (BIDS)

2. Discussion Topics for this Theme • Scope of the work on Development Dimension • What is in the July Framework for development: an overview • What was the process of integration in the negotiation • What was promised at Doha? • Follow-up of Doha • Current debate in Development dimension • What is in the July Framework for Bangladesh as an LDC • Key Thematic issues for perception of the stakeholders

3. Scope of development dimension • The focus is on the outcome of negotiations since Doha and its relevance for the South Asian countries. • Review of the status of development dimension • Position of each country • Dhaka declaration • The civil society also needs to be actively engaged in the negotiations to understand the possible outcomes • All the stakeholders including the policy makers, trade bodies, development and trade partners, academia, media and civil society representatives will be consulted to express their views in order to understand the real bottlenecks of the trade sector in the economy and the region in the context of on the July framework and Doha agreement.

4. What is in the July Framework for development: an overview • The July framework offers a pre-ambular general text and four annexes • The introductory text reaffirms that “development concerns form an integral part of the Doha Ministerial Declaration” • but the actual instructions to negotiators lacks vigour and precision. • Although, the content of the framework is vague for development dimension, there are some potential areas for progress of development dimension in the text. • At the Hong Kong Ministerial meeting, the responsibility lies on the negotiators to include development dimension in the negotiation and make it meaningful and development oriented.

5. The Process Followed • Dynamics of shifting power • There has been some evolution of balance of geo-political power • The importance of G20, Brazil and India is quite evident • Marginalisation of the priorities of LDCs • Slow start for a development round • some positive outcome in agriculture and elimination of Singapore issues • no time frame for elimination of subsidy • expectation that G20 would support and incorporate the demand of the poorest was not borne out • for some the vulnerabilities has increased

6. What was promised at Doha? • The july framework has reaffirmed what was promised at Doha: • Special and differential treatment • paragraph 44 S&D an integral • trade ministers at Doha directed to make S&D more precise, effective and operational • Enabling Clause of 1979 gave a legal basis for S&D • Implementation issue • paragraph 12 and work programme for S&D as in the Doha Decision on Implementation Related Issues and Concerns

7. What was promised at Doha? cont • Capacity building and technical Assistance • Paragraph 38-41, 42-43 for LDCs • Paragraph 39 for the importance of co-ordinated delivery of technical assistance • Least Developed Countries • 21 different paragraphs • Small Vulnerable economies • paragraph 35 to frame responses to the trade-related issues identified for the fuller integration of these economies without creating a sub-category

8. Doha Follow-up • Development issues have been discussed mainly within the Committee on Trade and Development Special Session on • Special &Differential Treatment • These provision apply to two groups LDCs and Developing countries • Implementation of provisions • cross-cutting • agreement specific • And Technical Assistance and Capacity building is also at the heart

9. Doha Follow-up • Special &Differential Treatment • provide favourable treatment to developing countries and least developed countries • First deadline to report to the General Council July 2002, then December 2002, February 2003 and now July 2002 • 155 provisions of which 22 apply for LDCs • 88 proposal into three categories • accepted with minor changes 38 • discussed in relevant WTO bodies 38 • need major changes 12 • So far, efforts to find common ground was unsuccessful

10. Doha Follow-up • Implementation Issues • Singapore ministerial highlighted serious problem by LDCs • non-compliance in the fulfillment of their procedural notification obligations e.g. TRIMs • enacting new legislation and institutions required specialized legal and administrative skills e.g IPR • Implementations of provisions which are not consistent with the development interest of the LDCs created problems • e.g. anti-dumping, SPS etc.

11. Doha Follow-up • Implementation Issues • only 3 resolved out of 99 • Some progress • work programme for LDCs on feb 2002 • extension of transition period of the TRIPs for LDCs with respect to Pharmaceutical products • adoption of waiver of TRIPs until 1 Jan 2016 • decision on accession of LDCs adopted by GC in Dec 2002 • Decision on Implementation of Article 66.2 of TRIPS adopted on 19 Feb. 2003

12. Doha Follow-up • Implementation Issues • July Framework DG to report to Trade Negotiating Committee and GC by May 2005 and Council decision by July 2005 • UNCTAD 1998 report • LDCs needs to monitor the implementation of those agreements which are of importance to them • They should bring to the notice of WTO any difficulties they encounter in implementing agreements and ensure their rights

13. Doha Follow-up • Capacity building and Technical Assistance • Several developing country members consider the technical assistance and capacity building (TACB) provided by the WTO as the heart of the “development” dimension of the Doha Round. • Technical assistance and capacity building must address the broad range of steps needed to ensure proper participation by developing countries, particularly by the LDCs.

14. Doha Follow-up • Capacity building and Technical Assistance • This includes • negotiating capacity in Geneva • interdepartmental research and negotiating capacity in capitals, and • ways to involve civil society in dialogue with governments in order to achieve both a clear identification of interests and proper ownership of the process. • Significant achievement has already been made in this area very recently. The WTO Member countries have pledged CHF 30 million for a new Global Trust Fund .

15. Doha Follow-up • Capacity building and Technical Assistance • . Problems with earlier TACB were • focused more on quantity than quality • lack of national ownership and short duration of many activities • failure to take into account the needs of beneficiary countries • The draft 2005 Technical Assistance and Training Plan (TATP)

16. Current debate on development dimension • Agreement Specific versus cross cutting issue • Developed countries : cross cutting • Developing countries: agreement specific • Solution by Ismail as thematic group • effective market access • enhanced flexibility in WTO rules • consistency with a multilateral rules-based system • enhanced capacity-building programmes • Definition of developing countries • developed countries : divide large and small developing • Developing countries do not want this • Monitoring Mechanism: Implementation Issues and Concerns • what should be the role • monitor cross-cutting or S&D implementation

17. What is in the July Framework for the Least-Developed Countries? • Dhaka declaration • Cancun text • July Framework • suggest appropriate wordings to make it precise and enforceable

18. Perception survey • Market access • What are the problems with market access provisions for LDCs? • How the issue of Rules of Origin should be addressed? • How the market access provision for the LDCs should be bounded and made enforceable? • What are the problems of ROO in : • Japan • EU • Canada • Australia • What should be the ROO fo • USA • Should social issues be addressed in the negotiation? • Should environment issues be addressed in the negotiation?

19. Perception survey • Special and differential treatment • What are the main S&D issues for LDCs? • How elimination of domestic and export subsidy in agriculture in the developed countries will affect Bangladesh? • o As a net food-importing country • o As a cotton importing country • What is the implication for Bangladesh if Swiss or linear formula is adopted? • Your opinion on application of Anti-dumping and Countervailing measures?

20. Perception survey • Implementation Issues • What are the main implementation issues for LDCs?LDCs are exempted from reduction in tariffs as well as subsidies (both domestic and for exports). • How can these be implemented?How reductions in Tariff in Developed countries affect erosion of preferences for Bangladesh? • What should be the mode of compensating for autonomous liberalisation? • What sort of compensation is needed for “early harvest” in tariff reduction?

21. Perception survey • Capacity building • What are the main Capacity Building issues for LDCs? • What are the sectors that need technical assistance? • What are the various dimensions for which technical assistance is needed? • Need technical assistance at country level and at Geneva for Negotiating capacity in Geneva • Interdepartmental research and negotiating capacity • Ways to involve civil society in dialogue with government in order to achieve a clear identification of interests and proper ownership of the process

22. Thank you for your patience