1. WTO action in response to the financial and economic crisis Keynote by Juan A. Marchetti Counsellor, Trade in Services Division, WTO International Workshop "The International Economic and Financial Crisis: What Role for the WTO?" Leuven, Wednesday 3 March 2010

2. Outline  Overview of monitoring and surveillance at the WTO  Monitoring the trade effects of the financial and economic crisis  What next?

3. Overview of monitoring and surveillance at the WTO  Types of Monitoring and Surveillance Passive  Providing data (e.g. publishing trade measures, notifications)  Collecting data (e.g., tariff data in the Integrated Database) Active – Processing data and using it to measure or to analyze an issue or problem  Compliance with WTO obligations  Impact on trade and the trading system

4. Overview of monitoring and surveillance at the WTO  Legal basis Article III(i) of the Marrakesh Agreement  Features Transparency – No shortage of mandates Notifications  For general transparency purposes – record rather poor and has deteriorated  For specific benefits – record is better but still not perfect (e.g. TRIMs)  Best records in TBT and SPS despite complexity and breadth of obligations – Why?

5. Overview of monitoring and surveillance at the WTO  Poor notification record Is it due to deliberate evasiveness, bureaucratic inertia or lack of capacity? Is it related to the seemingly unclear purpose of the exercise – How closely is the data related to an active consultation or negotiation?

6. Overview of monitoring and surveillance at the WTO  Notification process – How can it be improved? Recent call by the GC Chair to improve the notification process in each Committee General consultation process fallen into disuse – most of the energy goes to negotiation and dispute settlement Members focus on their individual trade interests

7. Overview of monitoring and surveillance at the WTO  Trade Policy Review Mechanism Already 20 years of age Strong platform for improving transparency at domestic and multilateral levels Secretariat-driven part of the process works well and continues to evolve Weaknesses  Member-driven part works rather poorly  Review cycle is long for most Members  Limited focus (e.g. on services)

8. Monitoring the trade effects of the financial and economic crisis  DG-driven Grew out of Secretariat task force on the crisis set up by the DG in October 2008 Reporting every three months  TPR – Annual Overview of Developments in the International Trading Environment Focus on the impact on the MTS Annual report by DG on significant policy issues  Context G20 commitment not to resort to protectionism G153 commitment?

9. Monitoring the trade effects of the financial and economic crisis  Methodology Collect trade policy data and request Members to verify it Analyze impact of (protectionist) trade measures on trade and on the trading system Avoid finger-pointing Publish the results

10. Monitoring the trade effects of the financial and economic crisis  Achievements Monitoring the trade effects of the financial and economic crisis “Peer pressure” against protectionism Only reporting based on a broad definition of “trade” (i.e. going beyond trade in goods)  Trade in financial services (thus, the focus on financial bailouts)  Movement of natural persons as supplier of services Identify gaps in WTO rules

11. What next?  How to get WTO Members' support to continue this monitoring and surveillance exercise once the crisis is past?  Who is looking more broadly (i.e. beyond individual Members’ trade interests) at how the MTS is operating?  How “active” can active monitoring become?  Role and size of the Secretariat?  Any other idea?