Training session - Vietnamese agriculture and WTO - Hanoi - sept Overview of WTO

Training session - Vietnamese agriculture and WTO - Hanoi - sept GATT : WTO ancestor GATT : General agreement on tariffs and trade –created in 1948, after the Bretton Woods conference –23 countries members –to promote world trade liberalisation successive rounds of trade negotiations –8 rounds from 1947 to 1986 –decrease of tariffs 40 % in 1947, 4 % in 1996 (average for industrial products)

Training session - Vietnamese agriculture and WTO - Hanoi - sept The successive rounds NameTopicsCountries 1947Tariffs Tariffs Tariffs Tariffs Dillon roundTariffs Kennedy roundTariffs and antidumping Tokyo roundTariffs, non trade barriers and framework agreements Uruguay roundTariffs, NTB, rules, services, intellectual property, DSB, textiles, agriculture, WTO 123

Training session - Vietnamese agriculture and WTO - Hanoi - sept GATT's principles Most favoured nation clause –each country has to applied to all of its partners the treatment applied to the most favoured partner. National treatment clause –same treatment applied to domestic and import products. Reciprocity –one country has to give to one partner the same advantages that the partner offers it.

Training session - Vietnamese agriculture and WTO - Hanoi - sept Exception to the GATTs principles Special trade regime allowed by Developed countries to developing countries : GSP Reciprocal free trade areas, which cover substantially all trade

Training session - Vietnamese agriculture and WTO - Hanoi - sept Example : The Japanese GSP ProductMFN rateGSP rate Meat and edible offal of turkey3.0 %0 % Chicory3.0 %1.5% Coconuts3.0 %0 % Fresh bananas, imported from 1 April to 30 September20.0 %10.0 % Fresh bananas, imported from 1 October to 31 March25.0 %20.0 % Mangoes3.0 %0 % Rambutan, passion fruit, litchi and carambola5.0 %2.5 % Papaya, mangoes, litchis, passion fruit provisionally preserved 12.0 %6.0 % Coffee roasted12.0 %10.0 % Black tea3.0 %2.5 % Pepper3.0 %0 % Flour of soya beans4.2 %0 %

Training session - Vietnamese agriculture and WTO - Hanoi - sept The Uruguay Round Launched in The longest (8 years), with 123 countries Enlargement of the topics of negotiations –tariffs, non tariffs measures –services, intellectual property, textiles and clothes –agriculture : the hard point of discussion The Marrakech Agreement, April 15th 1994, created the WTO : World trade organisation

Training session - Vietnamese agriculture and WTO - Hanoi - sept The WTO Agreement 29 agreements, memorandums, ministerial decisions, including GATT (principles still available) Four main principles for the WTO Agreement –to facilitate access to the market of goods and services –to reinforce the system of trade rules –stability, predictability, transparency of world trade –to improve the system for settling trade disputes

Training session - Vietnamese agriculture and WTO - Hanoi - sept The agreements Agreement on agriculture (AoA) Agreement on Sanitary and phytosanitary measures (SPS) Agreement on Technical barriers to trade (TBT) Trade related intellectual property rights Agreement (TRIPS)

Training session - Vietnamese agriculture and WTO - Hanoi - sept The agreements (contd) General agreement on trade of goods : – reduction of tariffs Multifibre agreement (or textile agreement): –Since the beginning of the GATT, hard point of discussion –Phasing out of the tariffs quotas system (implemented since the 60s) –Tariffs only system since 1 st January 2005

Training session - Vietnamese agriculture and WTO - Hanoi - sept WTO members In September 2005 : 148 member states ( United Nations : 191 member states) New members : Cambodia and Nepal (2003), Taiwan (2002), China, Lithuania, Moldova (2001) 2/3 are developing countries – self selection basis 32 are LDCs (UN list) Countries negotiating membership are observers Grouping : –The EU speaks with one voice in WTO, but it counts for 26 members –Negotiation groups

Training session - Vietnamese agriculture and WTO - Hanoi - sept The WTO mandate Created on January 1st Ensuring the effective implementation of the UR conclusions Administering the procedures for settling trade dispute Acting as a forum for future trade negotiations Managing the trade policy review mechanism Co-operating with the Bretton Woods institution

Training session - Vietnamese agriculture and WTO - Hanoi - sept The functioning of WTO (1) Permanent multilateral institution. Principle of the single agreement Decision-making bodies : members govern WTO –Top-level body : the Ministerial Conference. At least every two years –General Council : implementation of Conference decisions and day by day management –Three councils : trade in goods (including agriculture), trade in services, Trade-related intellectual property rights –Several committees on specific issues –WTO Secretariat

Training session - Vietnamese agriculture and WTO - Hanoi - sept

Training session - Vietnamese agriculture and WTO - Hanoi - sept The functioning of WTO (contd) Decision-making rules –All members sit as equals - Every country has a vote –According to WTO statute, decision taken by majority. In fact, by consensus –Reality is contradictory : lack of transparency - power of negotiation linked to the economic weight Limited participation of developing countries

Training session - Vietnamese agriculture and WTO - Hanoi - sept The procedures for settling trade dispute Guarantee of WTO credibility : possibility of applying sanctions If a member thinks that another member infringes a point of the WTO agreement : –Procedures under the DSB –To be able to proof that interests are affected

Training session - Vietnamese agriculture and WTO - Hanoi - sept The procedures for settling trade dispute (contd) Steps –Consultation phase –If failed : DSB can appoint a panel to submit a report –Adoption of report – appeal possible –Final decision of the Appellate body Implementation of the result –Implementation of the recommendations –If not : plaintiff is authorised to apply commercial sanctions

Training session - Vietnamese agriculture and WTO - Hanoi - sept Brazil / US dispute on cotton 3 october 2002: Brazil requests for consultation 7 february 2003: request for establishment of the panel 23 may 2003: establishment of the panel 18 june 2004: publication of the report 8 september 2004: adoption of the report : the USA are convicted 20 october 2004: the US appeal to the decision 3 march 2005: the appellate body report is published 24 march 2005: adoption of the appellate report, the decision is confirmed 20 april 2005 : the US stated they intention to comply with the recommendations