Small and Vulnerable Economies in the Doha Round Hans-Peter Werner Counsellor WTO Development Division

The Doha Development Agenda Doha, Qatar – November / 2006 / 2007 ?

NEGOTIATIONS Agriculture & Sub-Committee on Cotton Agriculture & Sub-Committee on Cotton NAMA NAMA Services Services Rules (AD, SCVMs, Fisheries & RTAs) Rules (AD, SCVMs, Fisheries & RTAs) Special & Differential Treatment Special & Differential Treatment

Negotiations continued... Dispute Settlement Dispute Settlement Trade and Environment Trade and Environment TRIPs – Trade-related aspects of intellectual property rights – CBD / GIs TRIPs – Trade-related aspects of intellectual property rights – CBD / GIs Trade Facilitation Trade Facilitation

Doha Declaration We agree to a work programme, under the auspices of the General Council, to examine issues relating to the trade of small economies... We agree to a work programme, under the auspices of the General Council, to examine issues relating to the trade of small economies... Part of the Single Undertaking or not? Part of the Single Undertaking or not? From SIDS (UN) to SVEs (WTO) From SIDS (UN) to SVEs (WTO)

...The objective of this work is to frame responses to the trade-related issues identified for the fuller integration of small, vulnerable economies into the multilateral trading system, and not to create a sub-category of WTO Members (WT/L/447)....The objective of this work is to frame responses to the trade-related issues identified for the fuller integration of small, vulnerable economies into the multilateral trading system, and not to create a sub-category of WTO Members (WT/L/447).

...The General Council shall review the work programme and make recommendations for action to the Fifth Session of the Ministerial Conference....The General Council shall review the work programme and make recommendations for action to the Fifth Session of the Ministerial Conference.

Hong Kong Ministerial Declaration We reaffirm our commitment to the Work Programme on Small Economies and urge Members to adopt specific measures that would facilitate the fuller integration of small, vulnerable economies into the multilateral trading system, without creating a sub-category of WTO Members. We reaffirm our commitment to the Work Programme on Small Economies and urge Members to adopt specific measures that would facilitate the fuller integration of small, vulnerable economies into the multilateral trading system, without creating a sub-category of WTO Members.

We instruct the Committee on Trade and Development, under the overall responsibility of the General Council, to continue the work in the Dedicated Session and to monitor progress of the small economies' proposals in the negotiating and other bodies, with the aim of providing responses to the trade-related issues of small economies as soon as possible but no later than 31 December We instruct the Committee on Trade and Development, under the overall responsibility of the General Council, to continue the work in the Dedicated Session and to monitor progress of the small economies' proposals in the negotiating and other bodies, with the aim of providing responses to the trade-related issues of small economies as soon as possible but no later than 31 December 2006.

Report to General Council 10/2006 On the basis of the discussions that have been held on this matter, the CTD in Dedicated Session considers that the use by small, vulnerable economies of regional bodies to provide technical support and assistance as necessary could help them implement their obligations in the areas of SPS, TBT and TRIPS, and thereby facilitate their fuller integration into the multilateral trading system. On the basis of the discussions that have been held on this matter, the CTD in Dedicated Session considers that the use by small, vulnerable economies of regional bodies to provide technical support and assistance as necessary could help them implement their obligations in the areas of SPS, TBT and TRIPS, and thereby facilitate their fuller integration into the multilateral trading system.

... the CTD in Dedicated Session recommends that the General Council agrees that small economies are allowed to use such regional bodies to assist them in the implementation of their obligations under the SPS, TBT and TRIPS Agreements.... the CTD in Dedicated Session recommends that the General Council agrees that small economies are allowed to use such regional bodies to assist them in the implementation of their obligations under the SPS, TBT and TRIPS Agreements.

This recommendation is without prejudice both to the identification of other specific measures in due course to facilitate the fuller integration of small economies into the multilateral trading system and to the use of regional bodies as described in this report by other developing country Members. This recommendation is without prejudice both to the identification of other specific measures in due course to facilitate the fuller integration of small economies into the multilateral trading system and to the use of regional bodies as described in this report by other developing country Members.

SVEs in the DDA - Agriculture Agriculture – June 2006 – Draft Agriculture – June 2006 – Draft World merchandise trade – less than 0.16% / NAMA trade – less than 0.10% / Agriculture Trade – 0.4% or less World merchandise trade – less than 0.16% / NAMA trade – less than 0.10% / Agriculture Trade – 0.4% or less

Agriculture Designation of certain percentages on special products Designation of certain percentages on special products Food security concerns / Livelihood security / Rural development needs Food security concerns / Livelihood security / Rural development needs Special safeguard mechanisms Special safeguard mechanisms

Agriculture Preferential Market Access to developed countries for exports from SVEs Preferential Market Access to developed countries for exports from SVEs Linear cuts no higher than 15% with minimum of 10% per line from the bound rate... No other concessions sought from SVES Linear cuts no higher than 15% with minimum of 10% per line from the bound rate... No other concessions sought from SVES

NAMA Members with share of NAMA trade (exports and imports) of less than 0.1% of world trade (1999 to 2001) NOT A NEW CATEGORY - Triggers eligibility Members with share of NAMA trade (exports and imports) of less than 0.1% of world trade (1999 to 2001) NOT A NEW CATEGORY - Triggers eligibility Chairman: “Many Members oppose the use of such criteria but the treatment of SVEs in these negotiations does not create a precedent for future negotiations” Chairman: “Many Members oppose the use of such criteria but the treatment of SVEs in these negotiations does not create a precedent for future negotiations”

Current Bound Average % Average % Cut Final Bound Average % 0 – – – – – – –

NAMA 11 Argentina, Brazil. Egypt, India, Indonesia, Namibia, Philippines, S. Africa, Tunisia and Venezuela Argentina, Brazil. Egypt, India, Indonesia, Namibia, Philippines, S. Africa, Tunisia and Venezuela “Once numbers in the modalities are identified for developing countries, additional flexibilities will be identified for SVEs” “Once numbers in the modalities are identified for developing countries, additional flexibilities will be identified for SVEs”

Norway 0.1% of NAMA trade = SVE status 0.1% of NAMA trade = SVE status In exchange for 100% binding of all tariffs In exchange for 100% binding of all tariffs

FIJI In the specific case of Fiji with less than 50 per cent binding coverage, Fiji shall be allowed to keep [5 per cent] of their lines unbound while binding the remaining [95 per cent] at an average of [ ]. In the specific case of Fiji with less than 50 per cent binding coverage, Fiji shall be allowed to keep [5 per cent] of their lines unbound while binding the remaining [95 per cent] at an average of [ ].

NAMA The implementation of the tariff reduction commitments should be staged over a longer period than other developing countries in order to ensure a smooth liberalisation process and not jeopardise the industrial and social development prospects of the small, vulnerable economies. The implementation of the tariff reduction commitments should be staged over a longer period than other developing countries in order to ensure a smooth liberalisation process and not jeopardise the industrial and social development prospects of the small, vulnerable economies.

Fisheries Subsidies – should not touch on.... Any development assistance to developing coastal states; Any development assistance to developing coastal states; Assistance to artisanal or small-scale fisheries. Needs consensus on the definition of artisanal based on vessel size in metres etc. Assistance to artisanal or small-scale fisheries. Needs consensus on the definition of artisanal based on vessel size in metres etc.

Fisheries Subsidies should not touch Access fees in fisheries access agreements Access fees in fisheries access agreements Fiscal Incentives - to facilitate the development of capabilities of small vulnerable coastal states Fiscal Incentives - to facilitate the development of capabilities of small vulnerable coastal states

Committee on Subsidies & CV Measures Antigua and Barbuda, Barbados, Belize, Dominica, Dominican Republic, El Salvador, Fiji, Grenada, Guatemala, Jamaica, Mauritius, Papua New Guinea, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines Antigua and Barbuda, Barbados, Belize, Dominica, Dominican Republic, El Salvador, Fiji, Grenada, Guatemala, Jamaica, Mauritius, Papua New Guinea, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines

SCVMs Through the calendar year 2018, subject to annual reviews during that period to verify that the transparency and standstill requirements are being fulfilled, Members of the Committee shall agree to continue the extensions granted … Through the calendar year 2018, subject to annual reviews during that period to verify that the transparency and standstill requirements are being fulfilled, Members of the Committee shall agree to continue the extensions granted …

SCVMs The extension procedures under Article 27.4 would hence be applicable to all of the members and the existing programmes referred to in Annex A in line with paragraph 2 of G/SCM/39. This extension process would be applicable from the end of 2007 through to the end of 2018 with identical procedures as indicated in G/SCM/39 paragraph 1(f) and 1(g). The extension procedures under Article 27.4 would hence be applicable to all of the members and the existing programmes referred to in Annex A in line with paragraph 2 of G/SCM/39. This extension process would be applicable from the end of 2007 through to the end of 2018 with identical procedures as indicated in G/SCM/39 paragraph 1(f) and 1(g).

SCVMs Informals 25 April 2006, introduction of the proposal. (G/SCM/M/57) 25 April 2006, introduction of the proposal. (G/SCM/M/57) 23 June 2006, procedural discussion. 23 June 2006, procedural discussion. 21 July 2006, first substantive discussion. 21 July 2006, first substantive discussion. 13 October 2006, second substantive discussion. 13 October 2006, second substantive discussion. 15 December 2006, third substantive discussion. 15 December 2006, third substantive discussion. 15 February 2007, fourth substantive discussion. 15 February 2007, fourth substantive discussion. 8 March 2007, fifth substantive discussion. 8 March 2007, fifth substantive discussion.

Trade Facilitation "Establish enquiry points at the national level or in the case of SVEs/developing countries involved in a Customs Union/RTA/FTA, the option of the establishment of enquiry points at the regional level, to provide relevant information on trade procedures to trade." "Establish enquiry points at the national level or in the case of SVEs/developing countries involved in a Customs Union/RTA/FTA, the option of the establishment of enquiry points at the regional level, to provide relevant information on trade procedures to trade."

Trade Facilitation "Members and the WTO, within its competence, shall provide technical and financial assistance on mutually agreed terms to SVEs/developing countries to support the establishment, modification and maintenance of these national and/or regional enquiry points." "Members and the WTO, within its competence, shall provide technical and financial assistance on mutually agreed terms to SVEs/developing countries to support the establishment, modification and maintenance of these national and/or regional enquiry points."

Trade Facilitation Special and Differential Treatment SVEs/Developing countries/LDCs longer time periods to implement any requirement on enquiry points. SVEs/Developing countries/LDCs longer time periods to implement any requirement on enquiry points. Members of the Customs Union / RTA should maintain a national enquiry point if it is within their ability to do so but the existence of a regional enquiry point would preclude the obligation to maintain a national enquiry point. Members of the Customs Union / RTA should maintain a national enquiry point if it is within their ability to do so but the existence of a regional enquiry point would preclude the obligation to maintain a national enquiry point.

Aid for Trade Regional efforts /development banks Regional efforts /development banks Address supply-side capacity and trade- related infrastructure Address supply-side capacity and trade- related infrastructure New and multi-year funding New and multi-year funding Priority to LDCs, SVEs and acceding small developing countries Priority to LDCs, SVEs and acceding small developing countries