1 Two multilateral organisations dealing with trade: More differences than similarities Two multilateral organisations dealing with trade: UNCTAD and WTO More differences than similarities Manuela Tortora Chief, Technical Cooperation UNCTAD

2 THE DIFFERENCES LIE ON: originsThe origins mandatesThe mandates The institutional functioning The thinking on trade and development The strenghts and weaknesses

3 THE ORIGINS From GATT to WTO Keynes’ ideas on post-war international economic governance The Bretton Woods agreements (1944) : the ITO, the Havana Charter and the GATT GATT Rounds of trade negotiations until the Uruguay Round ( ) 1995: WTO is established outside the UN system UNCTAD: 1964  The context of North-South and East-West tensions  Non-Aligned Movement and Group of 77  The link between trade and development (Prebisch thinking)  1st UNCTAD Ministerial Conference in Geneva; Permanent secretariat established

4 THE MANDATE UNCTAD: Integrated treatment of trade, investment and related issues= wide mandate Research on trade and development issues Consensus-building through intergovernmental machinery Technical cooperation on all the topics of UNCTAD work WTO Rules-based organisation, negotiates binding multilateral trade law (“legislative” role) Dispute settlement mechanism with mandatory decisions, can apply sanctions (“judicial” role) Mandate confined to the existing trade agreements and to the scope of the negotiations

5 THE FUNCTIONING WTO No links with the UN machinery Permanent governmental bodies to monitor the implementation of the trade rules Negotiating governmental bodies Neutral Secretariat Accession has to be negotiated Limited role of non-governmental stakeholders UNCTAD Intergovernmental machinery linked to UN General Assembly and ECOSOC Secretariat part of the UN Secretariat (part of same budget) Development-oriented and independent secretariat Political role (“soft law”) Automatic membership Wide participation of non- governmental stakeholders

6 THE IDEAS ON DEVELOPMENT WTO Same trade disciplines for all but… …Special treatment for developing countries The “Doha Development Round” launched in 2001 Trade liberalisation and implementation of trade rules lead to developmentUNCTAD Trade is one of the instruments leading to development… …but no automatic links between trade liberalisation, poverty reduction, and development Multidimensional links between trade and development Special and differential treatment is key for all developing countries No “one size-fits-all” development models

7 STRENGHTS AND WEAKNESSES WTO Binding trade law Powerful “judicial” mechanism BUT Increasing complexities of multilateral negotiations Increasing regional and bilateral trade agreementsWTO Binding trade law Powerful “judicial” mechanism BUT Increasing complexities of multilateral negotiations Increasing regional and bilateral trade agreements UNCTAD Trust and credibility among developing countries Independent research BUT Only a political role (no “teeth”) Limited human and financial resourcesUNCTAD Trust and credibility among developing countries Independent research BUT Only a political role (no “teeth”) Limited human and financial resources

8 UNCTAD’s INTEGRATED VISION OF TRADE AND DEVELOPMENT and THE SCOPE OF ITS WORK: INTERNATIONAL ECONOMIC ENVIRONMENT NATIONAL DEVELOPMENT GOALS SUPPLY-SIDE PRODUCTIVE CAPACITY POLICIES TRADE SUPPORT SERVICES POLICIES TRADE POLICY AND NEGOTIATION

9 SOME UNCTAD IDEAS (NOW USED OUTSIDE UNCTAD) Special and differential treatment for developing countries Coherence between national policies and international economic environment (MDG 8) Policy space and “no-one-size-fits-all” Links between investment, science and technology, ICTs and trade flows Link between trade and environment Role of commodities in international trade Development-friendly WTO rules on trade in services LDCs’ terms of WTO accession Work on debt reduction (HIPC) and debt sustainability Role of competition law and policies in development processes Work on trade facilitation Research on non-tariff barriers to market access

10 SOME NUMBERS UNCTAD secretariat: 400 staffUNCTAD secretariat: 400 staff Annual Regular budget: US $ 57 millionAnnual Regular budget: US $ 57 million Extra-budgetary funds: US$ 35 million (2005)Extra-budgetary funds: US$ 35 million (2005) No field officesNo field offices

11 Main UNCTAD publications Annual analytical reports: -Trade and Development Report -World Investment Report -LDCs Report -Information Economy Report -Report on Africa …. and many other publications all available on UNCTAD website:

12 UNCTAD Intergovernmental machinery:  The Ministerial Conference (every 4 years), reports to the UN General Assembly and ECOSOC  Executive body: the Trade and Development Board, one high level annual session, reports to the UN General Assembly and Ecosoc  Three annual Commissions on:  Trade in goods and services, and commodities  Investment, technology and related financial issues  Enterprise, business facilitation and development  Several Expert Meetings on specific issues