″ TRADE POLICY REVIEW MECHANISM (TPRM)″

1. ″TRADE POLICY REVIEW MECHANISM (TPRM)″

2. 1. INTRODUCTION WTO RULES BASED ON PRINCIPLES OF: NON-DISCRIMINATION (MFN AND NT); PREDICTABILITY (AND STABILITY); AND TRANSPARENCY. TPRM ENHANCES TRANSPARENCY ACHIEVED BY NOTIFICATIONS.

3. 2. IMPORTANCE OF TRANSPARENCY INCREASES PUBLIC ACCOUNTABILITY; FACILITATES POLICY EVALUATION; IMPROVES POLICY-MAKING AND REFORMS; ESSENTIAL FOR A SMOOTH FUNCTIONING MARKET ECONOMY; PROMOTES ECONOMIC DEVELOPMENT.

4. 3. BROAD OBJECTIVE OF THE TPRM ″CONTRIBUTE TO IMPROVED ADHERENCE BY ALL MEMBERS TO RULES, DISCIPLINES AND COMMITMENTS MADE UNDER THE MULTILATERAL TRADE AGREEMENTS AND, WHERE APPLICABLE, THE PLURILATERAL TRADE AGREEMENTS, AND HENCE TO THE SMOOTHER FUNCTIONING OF THE MULTILATERAL TRADING SYSTEM, BY ACHIEVING GREATER TRANSPARENCY IN, AND UNDERSTANDING OF, THE TRADE POLICIES AND PRACTICES OF MEMBERS.″ MEMBERS' TRADE POLICIES MUST BE MONITORED REGULARLY.

5. 4(a). ROLE OF THE TPRM NOT A LEGAL EXERCISE TO MONITOR COMPLIANCE WITH EXISTING WTO RULES. NOT INTENDED TO SERVE AS A BASIS FOR THE ENFORCEMENT OF OBLIGATIONS UNDER WTO AGREEMENTS, OR FOR DISPUTE SETTLEMENT PURPOSES. NOT INTENDED TO IMPOSE NEW RULES ON MEMBERS.

6. 4(b). ROLE OF THE TPRM (EST. 1989) INTENDED TO ENHANCE MEMBERS' DOMESTIC TRANSPARENCY. CONTRIBUTES TO CLEARER UNDERSTANDING OF MEMBERS' TRADE POLICIES AND MEASURES AND THEIR POSSIBLE EFFECTS. PERMITS COLLECTIVE EVALUATION OF FULL RANGE OF POLICIES/MEASURES. PLACES TRADE POLICIES IN BROADER CONTEXT (THEREBY ASSESSING THE COHERENCE OF THESE POLICIES). INCLUDES POLICIES/MEASURES NOT NECESSARILY SUBJECT TO WTO RULES. FACILITATES SHARING OF POLICY EXPERIENCE. CAN BE USEFUL FORM OF TECHNICAL ASSISTANCE. CAN PROVIDE USEFUL BACKGROUND TO (AND UNDERSTANDING OF) MEMBER'S NEGOTIATING POSITION.

7. 5. MAIN ASPECTS OF TRANSPARENCY TRANSPARENCY ENTAILS FOUR KEY ELEMENTS: (i) DESCRIPTION OF NATURE OF POLICIES AND MEASURES (WHAT?); (ii) THEIR RATIONALE OR OBJECTIVES (WHY?); (iii) COSTS - EXPENDITURE OR TAXES FORGONE (HOW MUCH?); (iv) ECONOMIC EVALUATION OF EFFECTIVENESS IN ACHIEVING OBJECTIVES (COST-BENEFIT ANALYSIS); POLICY IMPLICATIONS (MORE COST-EFFECTIVE ALTERNATIVES?)

8. 6. BASIS FOR TPRB MEETING TPRB MEETING BASED MAINLY ON: SECRETARIAT REPORT (ON ITS OWN RESPONSIBILITY); GOVERNMENT REPORT BY MEMBER UNDER REVIEW; AND STATEMENTS MADE AND QUESTIONS POSED BY MEMBERS. TWO REPORTS AND MEMBERS' STATEMENTS/ QUESTIONS ARE COMPLEMENTARY. REPORTS AND TPRB PROCEEDINGS ARE PUBLISHED.

9. 7. SECRETARIAT'S REPORT SECRETARIAT REPORT SEEKS TO: REVIEW MAIN TRENDS AND DEVELOPMENTS SINCE PREVIOUS REVIEW (OR SINCE ACCESSION TO WTO); EVALUATE TRADE AND TRADE-RELATED POLICIES AND MEASURES; ANTICIPATE ISSUES THAT MIGHT BE RAISED BY MEMBERS AND CLARIFY SUCH ISSUES. IN DOING SO, HELP PREPARE MEMBER UNDER REVIEW FOR TPRB MEETING. 100 OR SO PAGES.

10. 8. GOVERNMENT REPORT GOVERNMENT REPORT MAY, INTER ALIA, SEEK FROM ITS OWN PERSPECTIVE TO: REVIEW MAJOR TRENDS AND DEVELOPMENTS SINCE PREVIOUS REVIEW (OR ACCESSION); PRESENT OWN VIEWS ON MAJOR POLICIES AND THEIR EVALUATION; ANTICIPATE AND CLARIFY ISSUES; AND INDICATE FUTURE DIRECTION OF KEY TRADE AND TRADE-RELATED POLICIES. 15-25 PAGES.

11. 9. CONTENTS OF A TYPICAL SECRETARIAT REPORT SUMMARY OBSERVATIONS ECONOMIC ENVIRONMENT TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES TRADE POLICIES AND PRACTICES BY MEASURE IV. TRADE POLICIES BY SECTOR

12. 10. CONTENTS OF A TYPICAL TPR PART A CONCLUDING REMARKS OF CHAIRPERSON PART B SECRETARIAT REPORT PART C GOVERNMENT REPORT PART D MINUTES OF TPRB MEETING N.B. WRITTEN QUESTIONS AND ANSWERS APPEAR SEPARATELY.

13. 11. SUMMARY TPR NOT A LEGAL EXERCISE TO MONITOR COMPLIANCE WITH EXISTING WTO RULES. INTENDED TO ENHANCE MEMBERS' DOMESTIC TRANSPARENCY. OPPORTUNITY TO IMPROVE MEMBERS' UNDERSTANDING OF REVIEWED MEMBER’S TRADE POLICIES AND EFFORTS TO OPEN UP ITS ECONOMY AS WELL AS CONSTRAINTS. PROVIDES FORUM FOR EXCHANGE OF VIEWS AND EXPERIENCES BETWEEN WTO MEMBERS.