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International Trade Negotiations:. WTO and FTAs. - John Riley, NZ High Commission, London. Our panel:. Yaryna Ferencevych, US Embassy (State). Jennie Wilson, US Embassy (FAS). Tiffany McDonald, Aus High Com. Matt Molloy, DEFRA, UK. and John Riley.
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International Trade Negotiations: WTO and FTAs - John Riley, NZ High Commission, London
Our panel: Yaryna Ferencevych, US Embassy (State) Jennie Wilson, US Embassy (FAS) Tiffany McDonald, Aus High Com Matt Molloy, DEFRA, UK and John Riley
Countries tend to act in their national interest. Things to consider: What is it that drives the decisions of politicians and officials?
Trade Policy World Trade Organisation (WTO) Free Trade Agreements (FTAs) Bilateral Trade Access (removing regulatory barriers)
WTO Secretariat in Geneva 153 Members Accession process – college fraternity Membership led oganisation
WTO (continued…) Decisions made by consensus Surprisingly very effective (dispute settlement) Ministerial meetings roughly biannually
2 important WTO principles National Treatment Most Favoured Nation
History Began 1947 with the GATT Negotiating Rounds – GATT, Kennedy, Tokyo, Uruguay Started with non-agricultural subsidies then tariffs Technical barriers addressed later
How are WTO Rounds Negotiated? • By CONSENSUS!
Yeah, nah… but there are 153 Members so… • Negotiating Groups • Modalities • Chair’s texts • Ministerial Meetings • The green room
How are WTO Rounds negotiated? The majors crunching it Splitting the difference (don’t get salami sliced) Hand of God text Lock them in a room!
Why would they do a deal? Important factors: Political capital = industry + votes Reason for urgency (TPA)
WTO Doha Round Commenced 2001 Called Doha Development Agenda Incomplete
Some important Doha dates 2001 mandate July 2004 framework Hong Kong December 2005 Came close to modalities in July 2008
The Negotiating Groups Agriculture (subsidies and tariffs) Non-agricultural market access (tariffs and NTBs) Services
Other Negotiating Groups Rules (anti-dumping, fish subsidies) TRIPS (intellectual property, GIs) Trade facilitation
Special and Differential Treatment Developed countries Developing countries Least developed countries
Who are the key players? The G4
Do they have offensive interests or defensive interests? • If a WTO Member wants to reduce tariffs or subsidies… • If a WTO Member wants to maintain tariffs or subsidies… the Member has offensive interests the Member has defensive interests
defensive offensive offensive offensive (?!) defensive offensive offensive offensive defensive offensive defensive defensive Is each Member mainly offensive or defensive? Mainly wants to reduce measures Mainly wants to maintain measures
Which Members are saying this? “We can’t offer to reduce non-agricultural tariffs until other countries offer to decrease agricultural subsidies and agricultural tariffs” - Brazil and India
Which Member is saying this? “We can’t offer to reduce agricultural subsidies until other countries offer to decrease their tariffs” - US
Which Member is saying this? “We can’t offer to reduce agricultural tariffs until other countries offer to reduce agricultural subsidies and non-agricultural tariffs” - EU
G20 (developing countries wanting reduced agriculture subsidies by developed countries) Argentina, Bolivia, Plurinational State of, Brazil, Chile, China, Cuba, Ecuador, Egypt, Guatemala, India, Indonesia, Mexico, Nigeria, Pakistan, Paraguay, Peru, Philippines, South Africa, Tanzania, Thailand, Uruguay, Venezuela, Bolivarian Republic of, Zimbabwe
G33 (developing countries who are defensive on agriculture tariffs) Antigua and Barbuda, Barbados, Belize, Benin, Bolivia, Plurinational State of, Botswana, Côte d’Ivoire, China, Congo, Cuba, Dominica, Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, India, Indonesia, Jamaica, Kenya, Korea, Republic of, Madagascar, Mauritius, Mongolia, Mozambique, Nicaragua, Nigeria, Pakistan, Panama, Peru, Philippines, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Senegal, Sri Lanka, Suriname, Tanzania, Trinidad and Tobago, Turkey, Uganda, Venezuela, Bolivarian Republic of, Zambia, Zimbabwe
G10 (defensive on ag) Chinese Taipei, Iceland, Israel, Japan, Korea, Republic of, Liechtenstein, Mauritius, Norway, Switzerland
Cairns group (offensive on ag subsidies and tariffs) Argentina, Australia, Bolivia, Plurinational State of, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Pakistan, Paraguay, Peru, Philippines, South Africa, Thailand, Uruguay
Cairns group (offensive on ag subsidies and tariffs) Argentina, Australia, Bolivia, Plurinational State of, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Pakistan, Paraguay, Peru, Philippines, South Africa, Thailand, Uruguay
FTA Negotiations Substantially all trade Can’t deal with subsidies
Some common FTA areas Goods (tariffs) Services Investment Government procurement Intellectual property TBT/SPS (Non-tariff barriers) Labour and Environment
Bilateral Market Access e.g. Sanitary and Phytosanitary conditions Sometimes justified Sometimes not