The WTO and TRADE FACILITATION

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The WTO and TRADE FACILITATION

Needs Assessment Conducted In Cooperation with
Annex D Organizations and WTO Members
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• 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
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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

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

• Singapore (1996)
• Geneva (1998)
• Seattle (1999)
• Doha, Qatar (2001)
• Cancun, Mexico (2003)

(GC July Package (2004))

• Hong Kong, China (2005)

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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

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REVIEW OF GATT/WTO PRINCIPLES

• Protection only through Tariffs
• Reduction and Binding of Tariffs
• National Treatment
• Most Favored Nation (MFN)
• Transparency

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NATIONAL TREATMENT

• No discrimination between imported and domestic
  products
• assessment of taxes
• application of internal regulations

GATT Article III
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MOST FAVORED NATIONPrinciple of
Non-Discrimination

• Tariffs and regulations applied without
  discrimination
• WTO Members receive most preferential trade terms

GATT Article 1
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GATT Principles Exceptions

• Exceptions
• GATT Art. XX (General Exception)
• GATT Art. XXI (Security Exception)
• GATT Art. XXIV5 (Free-Trade Area and Customs
  Unions)
• Enabling Clause (1979 Decision)
• Marrakesh Agreement Art. IX3 (Waiver)

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Special and Differential Treatment
GATT Article XXXVI Enabling Clause

• 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.

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Coalition Groups in WTO Negotiations
All Topics
Trade Facilitation Only

• African Group
• ACP Group
• LDC Group

Core Group Colorado Group
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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

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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

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Objectives of TF Negotiations

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

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Negotiation Mandate-
WT/L/579 Annex D July Package

• Clarify improve GATT Articles V, VIII, X
• SDT - Longer transition periods
• Identify needs and priorities
• Technical Assistance support

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Existing WTO Legal Framework

• 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

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Clarification of GATT V, VIII, X

• Members make proposals
• For Example, proposal under Article X
• Use of internet publication
• More than 70 proposals
• Compiled by Secretariat in TN/TF/W/43/REV.?
• Categorized in headings A-M

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Proposals
Article X
Article VIII
Article V
EC TPKM EC 9
Korea US (3)/Uganda Korea
Japan 5 co EC/AUS EC/Paraguay
Canada/Australia Canada/Australia Paraguay Group
TPKM Korea Rwanda, Paraguay Switzerland
US Canada Singapore
New Zealand Japan/Mongolia No Article
China Singapore Argentina Turkey New Zealand Hong Kong China/Korea US/India Dominican Rep Bolivia 15 co
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TN/TF/W/43
Main Areas Covered Groups of Measures Falling Under Those Areas Sub-Categories of Measures Falling Under Those Groups (Where Applicable) GATT Art. First Generation Second Third
A.PUBLICATION and Availability of info 1. Publication and Notification of Trade Regulations and of Penalty Provisions (W/6, W/7, W/8, W/17, W/26, W/30, W/32, W/45, W/96 See also references in W/13, W/14, W/17, W/23, W/24, W/75, W/96, W/114) Article X W/6, W/7, W/8, W/17, W/26, W/30, W/32, W/45 W/96 W/114
2. Internet Publication (W/13, W/70, W/89, W/132 See also references in W/45 and W/75) (a) Internet "publication" of the elements set out in Article X of GATT 1994 (W/13, W/70, W/89, W/132) Article X W/13, W/70 W/89 W/132
(b) Internet "publication" of specified information setting forth the procedural sequence and other requirements for importing goods into a Member's territory (W/13) Article X W/13
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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
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ARTICLE X
TRANSPARENCY
Headings A-E of Secretariat Compilation
TN/TF/W/43/Rev.?
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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/Re
v.? (highest number is most recent revision)
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ARTICLE VIII
FEE and FORMALITIES
Headings F-K of Secretariat Compilation
TN/TF/W/43/Rev.?
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F-K Fees Formalities

• F. FEES CHARGES ON IMPORT/EXPORT
• G. FORMALITIES ON IMPORT/EXPORT
• H. CONSULARIZATION
• I. BORDER AGENCY COOPERATION
• J.. RELEASE AND CLEARANCE OF GOODS
• K. TARIFF CLASSIFICATION

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

• Operationalization and Clarification of Terms
• Non-discrimination and Policy Objectives
• Disciplines on Fees and Charges
• Disciplines on Transit Formalities and Document
  Requirements
• Improved Coordination and Cooperation
• Disciplines on Restrictions to Freedom of
  Transit

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M. Customs Cooperation
Multilateral Mechanism for Exchange and Handling
of Information
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Negotiation Mandate-
WT/L/579 Annex D July Package

• Clarify and improve GATT Articles V, VIII, X
• SDT - Longer transition periods
• Identify needs and priorities
• Technical Assistance support

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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

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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

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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)

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SDT Proposals Include

1. Self-assessment of Needs
2. Notification of exceptions- what can or cant
   implement at time of entry into force
3. Formation of capacity building plan
4. Transition period during which is TA provided
5. Capacity Verification
6. Implementation

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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

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Negotiation Mandate-
WT/L/579 Annex D July Package

• Clarify and improve GATT Articles V, VIII, X
• SDT - Longer transition periods
• Identify needs and priorities
• Technical Assistance support

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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

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Negotiation Mandate-
WT/L/579 Annex D July Package

• Clarify and improve GATT Articles V, VIII, X
• SDT - Longer transition periods
• Identify needs and priorities
• Technical Assistance support

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Mandate
TA

• 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

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www.wto.org
For more information
WebPages

• Trade Facilitation
• Trade Facilitation Technical Assistance And
  Capacity Building
• Multimedia presentation

Trade facilitation document code TN/TF
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WTO TRADE FACILITATION
Thank you