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WTO Today: A New Negotiating Round

WTO Today: A New Negotiating Round. Thomas Cottier Professor of Law of Counsel, Baker&McKenzie Santiago de Chile 13.11.2000. Principles of WTO Law. Non-discrimination of foreign products (goods and services) Gradual improvement of market access (Trade Rounds)

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WTO Today: A New Negotiating Round

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  1. WTO Today:A New Negotiating Round Thomas Cottier Professor of Law of Counsel, Baker&McKenzie Santiago de Chile 13.11.2000

  2. Principles of WTO Law • Non-discrimination of foreign products (goods and services) • Gradual improvement of market access (Trade Rounds) • Tariff Barriers (average 3-5%, except agro) • Non-Tariff Barriers (Dumping, Subsidies, TBTs, SPS) • Regulating Conditions of Competition worldtradeinstitute.ch

  3. WTO: A Rule-based System • Traditions of Trade Diplomacy and Power • WTO: 25‘000 pages‘ Agreement • Legal Dispute Settlement Mechanism • Panels • Appellate Body Review • Enforcement of Obligations • Political and Domestic Implications worldtradeinstitute.ch

  4. Towards a New Round • The great Legacy of the Uruguay Round: expansion and implementation • The Legacy of the Seattle Ministerial Meeting (December 1999) • premature agenda • conceptually unprepared • the impact of NGOs (transparency, democracy) worldtradeinstitute.ch

  5. Implementing the Uruguay Round • LDCs are behind in process of implementation (absorption) • Request for additional periods, technical assistance and review of agreements (TRIPs) and standstill and dispute settlement • Need for closer cooperation with WIPO, World Bank and Regional Institutions (constitutional challenge) worldtradeinstitute.ch

  6. Comprehensive or Sectoral Negotiations? • Limited Scope in a New Round • Art. III of the WTO Charter: “The WTO shall provide a forum for negotiations...” • Sectoral Provisions in respective Agreements, e.g.: • Art. 20 of the Agreement on Agriculture • Art. 19 of the GATS • Art. 27 of the TRIPS • Art. 9 of the TRIMS • Idea of ongoing Negotiations v. Package deal approach worldtradeinstitute.ch

  7. Sectoral negotiations • “Both sets of negotiations [Agriculture, Services] are going well. Indeed, we have probably made as much progress this year as we would have done within the context of a wider round.” Mike Moore, 6 November 2000 worldtradeinstitute.ch

  8. Agriculture • Art. 20 of the Agreement on Agriculture • US: • substantial reduction of tariffs, export subsidies, and domestic support • recognition of the legitimate role of government • Cairns group (including Chile): • stand alone negotiations (not US) • substantial reduction of tariffs • elimination of all export subsidies and domestic supports worldtradeinstitute.ch

  9. Agriculture • EU and other Europeans: • willing to negotiate further reduction in export subsidies • right to pursue rural development policies (multifunctionality) • importance of consumer protection, e.g. through the regulation of labelling • Developing countries: • creation of a ‘Development Box’ and special safeguards worldtradeinstitute.ch

  10. Services • Art. 19 of the GATS • Two phases: • ‘rules-making’ phase (rules on safeguards, subsidies, and government procurement) • ‘request and offer’ phase (negotiations of further market access) • Inclusion of sectors (maritime transports) worldtradeinstitute.ch

  11. Investment • Art. 9 of the TRIMS • Failure to successfully negotiate a Multilateral Agreement on Investment (MAI) • Establishment of a Working Group • Main issue: Local Content Requirements • No negotiations currently worldtradeinstitute.ch

  12. Competition Policy • Art. 9 of the TRIMS • Establishment of a Working Group • Supportive in Establishment of Competition Authorities in many Countries • No negotiations currently in WTO due to US resistence • US proposes Global Competition Forum worldtradeinstitute.ch

  13. Environment • Claims to give environmental standards a place more prominent in the WTO • Strenuous resistance from developing countries (fear of disguised protectionism) • New issue of genetically modified agricultural commodities: role of science and role consumer preferences? (SPS Agreement) worldtradeinstitute.ch

  14. Intellectual Property Rights • Consolidation of TRIPs Agreement (Implementation) • EC and Switzerland press for improved protection of geographical indications (wines) • Patenting of life forms and protection of traditional knowledge will be a key issue worldtradeinstitute.ch

  15. Labour Issues • Dichotomy WTO - ILO • US with EC support presses to institutionalize the link between trade and labour within the framework of the WTO • Developing countries resist labour standards • Quest for Minimal standard definition and advantages for LCDs having them in foreign investment worldtradeinstitute.ch

  16. Electronic Commerce • Examination of issues related to electronic commerce by the Goods, Services and TRIPS Councils, and the Trade and Development Committee • Customs duties on electronic transmissions? • US presses for free of charge rules while other countries depend on fiscal revenues worldtradeinstitute.ch

  17. Conclusion • Consolidation of Uruguay Round Results • Minor Market Access Round, less rule-making (Agriculture, Services) • Back to Special and Differential Treatment? • Prime Importance of Dispute Settlement and Case Law • Accession of China • Conceptual Work ahead (transparency, democratic accountability) worldtradeinstitute.ch

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