1. WTO Today: A New Negotiating Round Thomas Cottier Professor of Law of Counsel, Baker&McKenzie Santiago de Chile 13.11.2000

2. 10.11.2000worldtradeinstitute.ch2 Principles of WTO Law Non-discrimination of foreign products (goods and services) Gradual improvement of market access (Trade Rounds) –Tariff Barriers (average 3-5%, except agro) –Non-Tariff Barriers (Dumping, Subsidies, TBTs, SPS) Regulating Conditions of Competition

3. 10.11.2000worldtradeinstitute.ch3 WTO: A Rule-based System Traditions of Trade Diplomacy and Power WTO: 25‘000 pages‘ Agreement Legal Dispute Settlement Mechanism –Panels –Appellate Body Review Enforcement of Obligations Political and Domestic Implications

4. 10.11.2000worldtradeinstitute.ch4 Towards a New Round The great Legacy of the Uruguay Round: expansion and implementation The Legacy of the Seattle Ministerial Meeting (December 1999) –premature agenda –conceptually unprepared –the impact of NGOs (transparency, democracy)

5. 10.11.2000worldtradeinstitute.ch5 Implementing the Uruguay Round LDCs are behind in process of implementation (absorption) Request for additional periods, technical assistance and review of agreements (TRIPs) and standstill and dispute settlement Need for closer cooperation with WIPO, World Bank and Regional Institutions (constitutional challenge)

6. 10.11.2000worldtradeinstitute.ch6 Comprehensive or Sectoral Negotiations? Limited Scope in a New Round Art. III of the WTO Charter: “The WTO shall provide a forum for negotiations...” Sectoral Provisions in respective Agreements, e.g.: –Art. 20 of the Agreement on Agriculture –Art. 19 of the GATS –Art. 27 of the TRIPS –Art. 9 of the TRIMS Idea of ongoing Negotiations v. Package deal approach

7. 10.11.2000worldtradeinstitute.ch7 Sectoral negotiations “Both sets of negotiations [Agriculture, Services] are going well. Indeed, we have probably made as much progress this year as we would have done within the context of a wider round.” Mike Moore, 6 November 2000

8. 10.11.2000worldtradeinstitute.ch8 Agriculture Art. 20 of the Agreement on Agriculture US: –substantial reduction of tariffs, export subsidies, and domestic support –recognition of the legitimate role of government Cairns group (including Chile): –stand alone negotiations (not US) –substantial reduction of tariffs –elimination of all export subsidies and domestic supports

9. 10.11.2000worldtradeinstitute.ch9 Agriculture EU and other Europeans: –willing to negotiate further reduction in export subsidies –right to pursue rural development policies (multifunctionality) –importance of consumer protection, e.g. through the regulation of labelling Developing countries: –creation of a ‘Development Box’ and special safeguards

10. 10.11.2000worldtradeinstitute.ch10 Services Art. 19 of the GATS Two phases: –‘rules-making’ phase (rules on safeguards, subsidies, and government procurement) –‘request and offer’ phase (negotiations of further market access) –Inclusion of sectors (maritime transports)

11. 10.11.2000worldtradeinstitute.ch11 Investment Art. 9 of the TRIMS Failure to successfully negotiate a Multilateral Agreement on Investment (MAI) Establishment of a Working Group Main issue: Local Content Requirements No negotiations currently

12. 10.11.2000worldtradeinstitute.ch12 Competition Policy Art. 9 of the TRIMS Establishment of a Working Group Supportive in Establishment of Competition Authorities in many Countries No negotiations currently in WTO due to US resistence US proposes Global Competition Forum

13. 10.11.2000worldtradeinstitute.ch13 Environment Claims to give environmental standards a place more prominent in the WTO Strenuous resistance from developing countries (fear of disguised protectionism) New issue of genetically modified agricultural commodities: role of science and role consumer preferences? (SPS Agreement)

14. 10.11.2000worldtradeinstitute.ch14 Intellectual Property Rights Consolidation of TRIPs Agreement (Implementation) EC and Switzerland press for improved protection of geographical indications (wines) Patenting of life forms and protection of traditional knowledge will be a key issue

15. 10.11.2000worldtradeinstitute.ch15 Labour Issues Dichotomy WTO - ILO US with EC support presses to institutionalize the link between trade and labour within the framework of the WTO Developing countries resist labour standards Quest for Minimal standard definition and advantages for LCDs having them in foreign investment

16. 10.11.2000worldtradeinstitute.ch16 Electronic Commerce Examination of issues related to electronic commerce by the Goods, Services and TRIPS Councils, and the Trade and Development Committee Customs duties on electronic transmissions? US presses for free of charge rules while other countries depend on fiscal revenues

17. 10.11.2000worldtradeinstitute.ch17 Conclusion Consolidation of Uruguay Round Results Minor Market Access Round, less rule- making (Agriculture, Services) Back to Special and Differential Treatment? Prime Importance of Dispute Settlement and Case Law Accession of China Conceptual Work ahead (transparency, democratic accountability)