fta trainer

of 36 /36
Introduction to Free Trade Agreements

Author: ahmad-bassiouny

Post on 16-Apr-2017

1.293 views

Category:

Education


0 download

Embed Size (px)

TRANSCRIPT

  • Introduction to Free Trade Agreements

    EXPLAIN that this presentation is going to give an overview and elicit some interesting uses of Free Trade Agreement (FTA) in favor to the company

    EMPHASIZE that your objective is to approach FTA in a pragmatic way to identify opportunities for the company, rather that engage in controversial macro-economic positions

  • Content

    Introduction1Principles The Nuts and Bolts2Example of Impacts3Practice and Databases4References and Additional Materials5

    INDICATE the sections include presentation materials, discussion, and hands-on exercises

    SAY that as an introduction youll briefly address: 1) What are Free Trade Agreements (FTAs)2) What will and what will not be covered3) A brainstorming exerciseHow can FTAs be used in our organization?

  • Content

    Introduction1Principles The Nuts and Bolts2Example of Impacts3Practice and Databases4References and Additional Materials5

    INDICATE the sections include presentation materials, discussion, and hands-on exercises

    SAY that as an introduction youll briefly address: 1) What are Free Trade Agreements (FTAs)2) What will and what will not be covered3) A brainstorming exerciseHow can FTAs be used in our organization?

  • IntroductionGeneralities on Free Trade AgreementsScope of this training - Will and will not Initial brainstorm on company impact

    Introduction

    USE this slide as guide and introduction to the section

  • Free Trade Agreements (FTAs) are the vehicle to achieve the advantages of economic integration and free trade.Promote free tradeImprove customer valueAchieve efficiencies in global resource allocationBoost growth and developmentReduce / disappear tariffsReduce non-tariff barriersQuotasBansUnfair proceduresEnsure free exchange of goods, services and intellectual capital

    Introduction

  • What will be covered and what will not be covered in this training session about Free Trade Agreements (FTAs).

    Classical economist studies David Ricardo further scenarios Adam SmithDetail on correlations on FTAs impactsControversial / extremist positions towards FTAsIndustry structure of FTAs

    FTAs underlying principlesA glance of economic integration schemes and trendsRole and evolution of the World Trade Organization as moderator/arbitrager in FTAsGeneral stats about world tradeOverview of FTAs impactProvide material for future references

    WillWill NOTIntroduction

  • How can Free Trade Agreements (FTAs) be used in our organization?

    What are the companys products, and services?What are new opportunities for exports/imports? Why?What about treats? Why?What about its intellectual capital / property?A brainstorm exercise Other implications?How can FTAs be used in our organization?To what countries is the company exporting? from what importing?Introduction

    ASK the trainees to brainstorm on the following questions; provide a few minutes for them to write some of their answers in their booklet and discuss

    PROMOTE the incorporation of all three items for trade: products, services, and intellectual property

    WRITE is a white board or sheet the brainstorm exercise

    INDICATE ideas that you will address in further detail as you move on this training presentation

  • Content

    Introduction1Principles The Nuts and Bolts2Example of Impacts3Practice and Databases4References and Additional Materials5

    INDICATE that most sections contain presentation materials and a discussion time

  • As international trade continue to rise, the level of economic cooperation or integration among countries and group of countries is also deepening.Basic principles for economic integration and cooperationProposed models for economic integration and cooperationFormal modelsAlternative modelsExamplesFrom bilateral to regional blocks of tradeEvolution of international trade cooperation since WWII

    Principles The Nuts and Bolts

    USE this slide as guide and introduction to the section

  • Classical economist, David Ricardo made one of the strongest arguments for free trade, in his analysis of comparative advantage.

    Theoretical Ricardian ModelMaximum at Specialization(26.0)(16.0)(22.3)Principles The Nuts and Bolts

    ymxbCountry 112-1.5012Country 20-0.6148

    Product AProduct B0.012.014.00.014.012.0

    Product AProduct B4.06.010.02.314.08.3

    Product AProduct B8.00.00.08.08.08.0

    CONSIDER the following information as you explain this slide:David Ricardo theory of comparative advantage sustains that free trade will benefit specific geographies (countries or regions) when engaging free trade based upon a relative or an opportunity costThe Ricardian model focuses on comparative advantage and is perhaps the most important concept in international trade theory. In other words, countries or regions specialize in producing what they do best

  • A model for stages of economic integration is described by Michael Holden, Economics Division, Government of Canada.

    Economic Union (EU)Common Market (CM)Customs Union (CU) Free Trade Agreement (FTA)CM + common economic policies and institutionsCU + free movement of capitals and labor forceFTA + common external tariffsReduced/no tariffs and reduced nontariff barriersAutarky

    Principles The Nuts and Bolts

    EXPLAIN that this is a simplified version of the stages of economic integration, provided by the Canadian Ministry of Economics.Michael Holden, Economics Division, Canada. For more information see: http://dsp-psd.pwgsc.gc.ca/Collection-R/LoPBdP/inbrief/prb0249-e.htm

    EMPHASIZE that because countries are free to negotiate integration agreements as they see fit, in practice, formal agreements rarely fall neatly into one of the four stages discussed above.

  • The World Trade Organization is working to standardize integration practices in the world.

    Economic Integration Agreement (EIA)Custom Union (CU)Free Trade Agreement (FTA)Partial Scope FTAs (PS)CU + rules for movement of capitals/investment, taxes and labor force; Generally under GATS Art. VFTA + common external tariffs; generally under GATT Art. XXIVReduced/no tariffs and reduced nontariff barriers; generally under GATT Art. XXIVPartial FTA; generally in the specific industries and/or zones, or an enabling zoneAutarky

    Principles The Nuts and Bolts

    EXPLAIN that in practice WTO has developed a common language for the agreement reported to the organization. Although there is no perfect definition of boundaries and stages.

    NOTE that Free Trade Agreements in previous model could be compared to Partial Scope FTAs and FTAs, as defined by WTO. Also, that Common Market and Economic Union might be comparable to a certain extend to Economic Integration Agreement as defined by WTO. Nonetheless there are subtle intricacies beyond the scope of this training session.

  • Regional blocks and bilateral (two countries / economies) agreements under the World Trade Organization umbrella GCC - Gulf Cooperation Council 03

    (Bahrain Kuwait Oman Qatar Saudi Arabia United Arab Emirates)

    NAFTA - North American Free Trade Agreement 94

    (Canada, Mexico, United States)

    AFTA - Asian Free Trade Area 92

    (Brunei, Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam)

    EC - European Communities

    (Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Poland Portugal, Romania Slovak Republic Slovenia Spain Sweden The Netherlands United Kingdom) EC accession of Austria, Finland and Sweden 95Regional BlocksIndia Singapore05Japan Mexico05USA Chile04 United States Jordan 01

    Bilateral refer to database to review complete list of agreements.EC (European Union) Turkey EFTA (European Free Trade Association) Korea 06

    (EFTA includes Iceland Liechtenstein Norway Switzerland)ASEAN (Association of South East Asian Nations) China03

    (ASEAN Brunei Darussalam Cambodia Indonesia Laos Malaysia Myanmar Philippines Singapore Thailand Vietnam)Principles The Nuts and Bolts

    INDICATE that the examples provided are aleatory from a list of 194 trade agreements notified to GATT/WTO and in force as of 24 September 2007; this database/list will be provided along with the course materials

    INDICATE that the regional blocks provided are aleatory from a list of 35 regional blocks, also in the database; in brief as part of the exercise the trainees will look for information on relevant blocks

    NOTE that the blocks are not static as suggested by the accession of Austria, Finland, and Sweden in 95

    NOTE that bilateral treaties are settled between countries and between block of countries

  • As the world as become more complex in matters of trade, a more comprehensive international regulator has emerged.

    1947 1986GATT150 countriesGeneral Agreement on Tariffs and Trade (GATT) to substantially reduce tariffs and other trade barriers, and to eliminate preferences, on a reciprocal and mutually advantageous basis. GATT

    Before WWII trade was regulated typically through bilateral treaties between two nations

    1986 1993/4Uruguay RoundsAddressed issues such as tariffs, services, and the trade related aspects of intellectual property and investment measures.Final Act Embodying the Results of the Uruguay Round of Multilateral Trade NegotiationsProposal to create the World Trade Organization

    Pre WWII1995 to dateThe World Trade Organization (WTO)Implementation of integration agreementsForum for negotiating additional reductions of trade barriers and for settling policy disputesImpartial arbitrageNiche negotiations e.g. telecommunications, information, and financial servicesImplementation of GATT, GATS, TRIPS

    WTO117 countriesPrinciples The Nuts and Bolts

    DESCRIBE briefly the happenings before formation of WTO

    MENTION that WTO integrates most of the achievements from previous stages

    NOTE that although initially less countries singed WTO affiliation, more and more are looking to enrolled; e. g. China in recent years

  • Agreements aim to free trade considering six main areas:

    Basis for:Free Exchange of:

    ProductsServicesIntellectual PropertyDispute SettlementPolicy reviewGeneral Agreement on Trade and Tariffs (GATT) Trade-Related Aspects of Intellectual Property Rights (TRIPS)General Agreement on Trade in Services (GATS)Agreement EstablishmentPrinciples The Nuts and Bolts

    INDICATE that this is a simplified model, elicited by repetitive experiences and discussion panels in international trade

    INDICATE that this six main areas are those indicated by WTO in its mission

    INDICATE that those interested can find additional information in www.WTO.org

    PROMOTE participation among the team to revisit the brainstorm result from all three areas of trade/exchange:ProductsServicesAnd Intellectual Property

    DETAIL if desired: 1) Products (under GATT) Agriculture Health regulations for farm products Textiles and clothing Product standards Investment measures Anti-dumping measures Customs valuation methods Preshipment inspection Rules of origin Import licensing Subsidies and counter-measures Safeguards

    2) Services (GATS annexes) Movement of natural persons Air transport Financial services Shipping Telecommunications

  • The World Trade Organization (WTO) is the international organization dealing with the global rules of trade between nations

    1. Peace2. Disputes3. Rules4. Cost of living5. Choice6. Incomes7. Growth and jobs8. Efficiency9. Lobbying10. Good government its main function is to ensure that trade flows as smoothly, predictably and freely as possible.Benefits1. WTO dictates2. Blindly for trade3. Ignores development4. Anti-green5. Anti-health6. Wrecks jobs7. Small left out8. Tool of lobbies9. Weak forced to join10. UndemocraticMisunderstandingsPrinciples The Nuts and Bolts

    NOTE that these lists of 10 benefits and 10 common misunderstanding about the role of the World Trade Organization (WTO) were provided by WTO Officials (see www.WTO.org)

    PROVIDE one example to promote a discussion on the role of WTO: Benefit) Countries engaged in trade disputes may recur to the WTO to solve disputes; WTO mission is to act as an impartial third party to the dispute. Misunderstanding) Countries involved in the FTA negotiation are autonomous, WTO is there to provide guidelines on the agreement and as a arbitrage entityWTO does not dictates rules, but suggests best practices to be adopted.

    INVITE the trainees to provide examples for the items in both of the list and the usefulness to have a international arbitrage figure.Example) Fair trade to protect social, labor and environmental rights

  • Content

    Introduction1Principles The Nuts and Bolts2Example of Impacts3Practice and Databases4References and Additional Materials5

    INDICATE that most sections contain presentation materials and a discussion time

  • Analyzing Canadas Free Trade Agreements and other economics integration efforts.Canadian macroeconomicsOther relevant measures of the countryTop exporters and importersCanada specific agreementsTrade flows and impacts

    Example of Impacts

    USE this slide as guide and introduction to the section

  • Economic basic figures provide the first clues for international trade

    Population(inhabitants million)GNI(USD trillion)Land(km2 million)Source: World Bank 2006Example of Impacts

    % of World1China1,30520%2India1,09517%3 EU3145%4 USA2965%5Indonesia2213%6Brazil1863%7Pakistan1562%8Russia1432%9Bangladesh1422%10Nigeria1412%11Japan1282%12Mexico1032%13Vietnam831%37Canada33

  • as well as other relevant measures

    Transparency(2006 CPI)Source: Transparency InternationalTop 10 from a list of 179 countriesOil(2006 Barrels per day million)High-Tec Exports(2006 Billion US$)Source: World Bank 2006Source: International Energy AgencyExample of Impacts

    1Denmark9.41Finland9.41New Zealand9.44Singapore9.34Sweden9.36Iceland 9.27Holland9.07Switzerland 9.09Canada 8.79Norway8.7

    1Saudi Arabia10.72Russia9.73USA8.44Iran4.15Mexico3.86China3.77Canada3.38Arab Emirates2.99Venezuela2.810Norway2.8

    1United States3,9732EU1,5973Japan9974China6965UK6166Germany4757France4258South Korea2539Netherlands18710Canada156

    INDICATE that sources are World Bank, International Energy Agency and Transparency International

    MENTION that during the exercises today, trainees will have access to a simplified copy of World Bank Stats.

    INVITE the trainees to access this information directly at www.WorldBank.com, www.WTO.org, www.Transparency.org

    DISCLAIMER If you are going to make use of this information for other purposes, verify copyright restrictions in www.WorldBank.com and www.WTO.org

  • The major players (exports / imports) account for about 70 percent of trade worldwide.Top ImportersTop ExportersSource: World Trade Organization 2006(2006 current US$ billion)(2006 current US$ billion)Example of Impacts

    % of World% of GDP1USA1,91915%15%2Germany9097%31%3China7916%30%4UK6195%26%5Japan5805%13%6France5354%24%7Italy4374%24%8Netherlands4163%63%9Canada3583%29%10Belgium3543%90%11Hong Kong, China3363%177%12Spain3163%26%13South Korea3092%35%14Mexico2682%32%15Singapore2392%181%

    % of World% of GDP1Germany1,1129%38%2USA1,0389%8%3China9698%36%4Japan6505%15%5France4904%22%6Netherlands4624%70%7UK4484%19%8Italy4113%22%9Canada3903%31%10Belgium3693%94%11Korea3253%37%12Hong Kong, China3233%170%13Russia3053%31%14Singapore2722%206%15Mexico2502%30%

    INDICATE that the source of this documents is World Trade Organization (WTO)

    MENTION that during the exercises today, trainees will have access to a simplified copy of World Bank Stats.

    INVITE the trainees to access this information directly at www.WTO.org

    DISCLAIMER Copyright Permission to make digital or hard copies of any information contained in these Web pages is granted for personal or classroom use, without fee and without formal request. Full citation and copyright notice must appear on the first page. Please see: http://www.wto.org/english/res_e/statis_e/its2007_e/its07_toc_e.htm

  • Canada has established a series of Economic Integration Agreements (EIA) and Free Trade Agreements (FTA).Block EIA (Apr 94), originally FTA (Jan 94)NAFTA - North American Free Trade Agreement Including Canada, Mexico, and United States

    * Canada and USA share the largest non guarded border in the World

    Bilateral EIA:Canada-Chile97

    Bilateral FTAs:Canada-Costa Rica02Canada-Chile97Canada-Israel97

    Example of Impacts

    INDICATE that the source of this documents is World Trade Organization (WTO)

    MENTION that during the exercises today, trainees will have access to a simplified copy of World Bank Stats.

    INVITE the trainees to access this information directly at www.WTO.org

    DISCLAIMER Copyright Permission to make digital or hard copies of any information contained in these Web pages is granted for personal or classroom use, without fee and without formal request. Full citation and copyright notice must appear on the first page. Please see: http://www.wto.org/english/res_e/statis_e/its2007_e/its07_toc_e.html

  • The inertia created by Freed Trade Agreements improved Canadian exports to Mexico and Chile significantly above average.

    Effect on ExportsSource: World Trade Organization 2006Exports Growth by Country Vs. Average(2006)Example of Impacts

    Billion US$Growth1USA 316.67 5%2EU (25) 25.40 24%3Japan 8.30 10%4China 6.76 16%5Mexico 3.87 44%Top 5 360.99 7%Chile 0.42 23%Israel 0.39 11%Top 30 382.17 8%

  • similarly to Israel imports to Canada.

    Source: World Trade Organization 2006Effect on Imports(2006)Imports Growth by Country Vs. AverageExample of Impacts

    Billion US$Growth1USA 192 8%2EU (25) 43 15%3Japan 30 25%4China 14 17%5Mexico 14 11%Top 5 293 11%Chile 1 15%Israel 1 24%Top 30 341 12%

  • Content

    Introduction1Principles The Nuts and Bolts2Example of Impacts3Practice and Databases4References and Additional Materials5

    INDICATE that most sections contain presentation materials and a discussion time

  • Live exerciseuse the Excel* Document/Dbase provided to search for the following information:

    Gross Domestic Product (GDP), imports and exports for CountryCompare to Gross National Income (GNI) World Bank measureExample countries or group f countries in different economic integration stageRegional blocks for CountryBilateral agreements for Country

    Practice and Databases

    * Information may be imported to Access or other databases tables, nonetheless Excel provides basic functionality to sort, filter and lookup for information

    PROVIDE to every participant (or by groups) a copy of the Excel document with tables with selected information by country

    INVITE the trainees to access this information directly at www.WorldBank.com and www.WTO.org

    INDICATE that this information was collected from World Bank, and the World Trade Organization. All of the aforementioned share its information freely for learning purposes.

    DISCLAIMER If you are going to make use of this information for other purposes, verify copyright restrictions in www.WorldBank.com and www.WTO.org

    EXPLAIN if necessary that World Banks GNI is an alternative measure to correct traditional GDP deviation; it is common in macroeconomics, as in trade classifications, to found heterogeneous approaches.

  • Identify examples of countries and groups of countries in the Holden Simplified Model:

    Economic Union (EU)Common Market (CM)Customs Union (CU) Free Trade Agreement (FTA)Autarky

    Practice and Databases

    PROVIDE the following example

    USE examples of trainings

    DISCUSS findings

  • Identify examples of countries and groups of countries in the Holden Simplified Model:

    Economic Union (EU)Common Market (CM)Customs Union (CU) Free Trade Agreement (FTA)AutarkyEuropean Union (countries attached to the Euro policies)The UK and the rest of the European UnionUnited States and CanadaNorth America, area of NAFTA

    PROVIDE the following example

    USE examples of trainings

    DISCUSS findings

  • Identify all regional blocks with which Country has formed agreements under the Word Trade Organization umbrella:

    Practice and Databases

    PROVIDE the following example

    GO TO worksheet FTBSUGGEST to use the custom contains window from the auto-filter tools in excel, as shown in in the example above

    USE examples of trainees

    DISCUSS findings

  • Identify all regional blocks with which Mexico has formed agreements under the Word Trade Organization umbrella:GSTP - General System of Trade Preferences among Developing Countries

    (Algeria Argentina Bangladesh Benin Bolivia Brazil Cameroon Chile Colombia Cuba Democratic People's Republic of Korea Ecuador Egypt Ghana Guinea Guyana India Indonesia Islamic Republic of Iran Iraq Libya Malaysia Mexico Morocco Mozambique Myanmar Nicaragua Nigeria Pakistan Peru Philippines Republic of Korea Romania Singapore Sri Lanka Sudan Thailand Trinidad and Tobago Tunisia United Republic of Tanzania Venezuela Vietnam Yugoslavia Zimbabwe)PTN - Protocol relating to Trade Negotiations among Developing Countries

    (Bangladesh Brazil Chile Egypt Israel Mexico Pakistan Paraguay Peru Philippines Republic of Korea Romania Tunisia Turkey Uruguay Yugoslavia)NAFTA - North American Free Trade Agreement

    (Canada Mexico United States)LAIA - Latin American Integration Association

    (Argentina Bolivia Brazil Chile Colombia Cuba Ecuador Mexico Paraguay Peru Uruguay Venezuela)

    SHOW example Mexico

  • Identify all bilateral agreements of Country with other countries

    Practice and Databases

    PROVIDE the following example

    GO TO worksheet Regional FTASUGGEST to use the custom contains window from the auto-filter tools in excel, as shown in in the example above

    USE examples of trainees

    DISCUSS findings

  • Identify all bilateral agreements of Chile with other countriesChile-JapanSep-2007EIAEC-ChileMar-2005EIAEFTA-ChileDic-2004EIARepublic of Korea-ChileAbr-2004EIAChile-El SalvadorJun-2002EIAUnited States-ChileEne-2004EIAChile-Costa RicaFeb-2002EIAChile-MexicoAgo-1999EIACanada-ChileJul-1997EIAChile-JapanSep-2007FTAChile-ChinaOct-2006FTAEFTA-ChileDic-2004FTARepublic of Korea-ChileAbr-2004FTAChile-El SalvadorJun-2002FTAEC-ChileFeb-2003FTAUnited States-ChileEne-2004FTAChile-Costa RicaFeb-2002FTAChile-MexicoAgo-1999FTACanada-ChileJul-1997FTA

    SHOW example Chile

  • Country with other economies through the countrys blocks:

    Practice and Databases

    PROVIDE the following example

    GO TO worksheet Regional FTASUGGEST to use the custom contains window from the auto-filter tools in excel, as shown in in the example above

    USE examples of trainees

    DISCUSS findings

  • Chile with other economies through the countrys blocks:GSTP General System of Trade Preferences among Developing Countries

    Algeria Argentina Bangladesh Benin Bolivia Brazil Cameroon Chile Colombia Cuba Democratic People's Republic of Korea Ecuador Egypt Ghana Guinea Guyana India Indonesia Islamic Republic of Iran Iraq Libya Malaysia Mexico Morocco Mozambique Myanmar Nicaragua Nigeria Pakistan Peru Philippines Republic of Korea Romania Singapore Sri Lanka Sudan Thailand Trinidad and Tobago Tunisia United Republic of Tanzania Venezuela Vietnam Yugoslavia ZimbabweLAIA Latin American Integration Association

    Argentina Bolivia Brazil Chile Colombia Cuba Ecuador Mexico Paraguay Peru Uruguay VenezuelaPTN Protocol relating to Trade Negotiations among Developing Countries

    Bangladesh Brazil Chile Egypt Israel Mexico Pakistan Paraguay Peru Philippines Republic of Korea Romania Tunisia Turkey Uruguay YugoslaviaTrans-Pacific SEP Trans-Pacific Strategic Economic Partnership

    Brunei Darussalam Chile New Zealand Singapore

    SHOW example of blocks to which Chile has adhered

  • Content

    Introduction1Principles The Nuts and Bolts2Example of Impacts3Practice and Databases4References and Additional Materials5

  • References and additional materialsInternational Trade Theory and Policy

    Steven M. Suranovic. CHAPTER 40. The Ricardian Model of Comparative Advantage.http://internationalecon.com/Trade/Tch40/Tch40.php

    Understanding the WTO

    WTOChapter 1: BasicsChapter 2: The AgreementsChapter 3: Settling disputesChapter 5: The Doha Agendahttp://www.wto.org/english/thewto_e/whatis_e/tif_e/understanding_e.pdf

    WTO webcasting series

    WTOVideo: To the heart of the WTO Video: From GATT to WTO Video: Case studies of WTO dispute settlement Other trainings videoshttp://www.wto.org/english/res_e/webcas_e/webcas_e.htm

    EXPLAIN that this presentation is going to give an overview and elicit some interesting uses of Free Trade Agreement (FTA) in favor to the company

    EMPHASIZE that your objective is to approach FTA in a pragmatic way to identify opportunities for the company, rather that engage in controversial macro-economic positionsINDICATE the sections include presentation materials, discussion, and hands-on exercises

    SAY that as an introduction youll briefly address: 1) What are Free Trade Agreements (FTAs)2) What will and what will not be covered3) A brainstorming exerciseHow can FTAs be used in our organization?INDICATE the sections include presentation materials, discussion, and hands-on exercises

    SAY that as an introduction youll briefly address: 1) What are Free Trade Agreements (FTAs)2) What will and what will not be covered3) A brainstorming exerciseHow can FTAs be used in our organization?USE this slide as guide and introduction to the section

    ASK the trainees to brainstorm on the following questions; provide a few minutes for them to write some of their answers in their booklet and discuss

    PROMOTE the incorporation of all three items for trade: products, services, and intellectual property

    WRITE is a white board or sheet the brainstorm exercise

    INDICATE ideas that you will address in further detail as you move on this training presentationINDICATE that most sections contain presentation materials and a discussion timeUSE this slide as guide and introduction to the sectionCONSIDER the following information as you explain this slide:David Ricardo theory of comparative advantage sustains that free trade will benefit specific geographies (countries or regions) when engaging free trade based upon a relative or an opportunity costThe Ricardian model focuses on comparative advantage and is perhaps the most important concept in international trade theory. In other words, countries or regions specialize in producing what they do best

    EXPLAIN that this is a simplified version of the stages of economic integration, provided by the Canadian Ministry of Economics.Michael Holden, Economics Division, Canada. For more information see: http://dsp-psd.pwgsc.gc.ca/Collection-R/LoPBdP/inbrief/prb0249-e.htm

    EMPHASIZE that because countries are free to negotiate integration agreements as they see fit, in practice, formal agreements rarely fall neatly into one of the four stages discussed above. EXPLAIN that in practice WTO has developed a common language for the agreement reported to the organization. Although there is no perfect definition of boundaries and stages.

    NOTE that Free Trade Agreements in previous model could be compared to Partial Scope FTAs and FTAs, as defined by WTO. Also, that Common Market and Economic Union might be comparable to a certain extend to Economic Integration Agreement as defined by WTO. Nonetheless there are subtle intricacies beyond the scope of this training session. INDICATE that the examples provided are aleatory from a list of 194 trade agreements notified to GATT/WTO and in force as of 24 September 2007; this database/list will be provided along with the course materials

    INDICATE that the regional blocks provided are aleatory from a list of 35 regional blocks, also in the database; in brief as part of the exercise the trainees will look for information on relevant blocks

    NOTE that the blocks are not static as suggested by the accession of Austria, Finland, and Sweden in 95

    NOTE that bilateral treaties are settled between countries and between block of countriesDESCRIBE briefly the happenings before formation of WTO

    MENTION that WTO integrates most of the achievements from previous stages

    NOTE that although initially less countries singed WTO affiliation, more and more are looking to enrolled; e. g. China in recent yearsINDICATE that this is a simplified model, elicited by repetitive experiences and discussion panels in international trade

    INDICATE that this six main areas are those indicated by WTO in its mission

    INDICATE that those interested can find additional information in www.WTO.org

    PROMOTE participation among the team to revisit the brainstorm result from all three areas of trade/exchange:ProductsServicesAnd Intellectual Property

    DETAIL if desired: 1) Products (under GATT) Agriculture Health regulations for farm products Textiles and clothing Product standards Investment measures Anti-dumping measures Customs valuation methods Preshipment inspection Rules of origin Import licensing Subsidies and counter-measures Safeguards

    2) Services (GATS annexes) Movement of natural persons Air transport Financial services Shipping TelecommunicationsNOTE that these lists of 10 benefits and 10 common misunderstanding about the role of the World Trade Organization (WTO) were provided by WTO Officials (see www.WTO.org)

    PROVIDE one example to promote a discussion on the role of WTO: Benefit) Countries engaged in trade disputes may recur to the WTO to solve disputes; WTO mission is to act as an impartial third party to the dispute. Misunderstanding) Countries involved in the FTA negotiation are autonomous, WTO is there to provide guidelines on the agreement and as a arbitrage entityWTO does not dictates rules, but suggests best practices to be adopted.

    INVITE the trainees to provide examples for the items in both of the list and the usefulness to have a international arbitrage figure.Example) Fair trade to protect social, labor and environmental rightsINDICATE that most sections contain presentation materials and a discussion timeUSE this slide as guide and introduction to the sectionINDICATE that the source is World Bank

    MENTION that during the exercises today, trainees will have access to a simplified copy of World Bank Stats.

    INVITE the trainees to access this information directly at www.WorldBank.com and www.WTO.org

    INDICATE that this information was collected from World Bank, and the World Trade Organization. All of the aforementioned share its information freely for learning purposes.

    DISCLAIMER If you are going to make use of this information for other purposes, verify copyright restrictions in www.WorldBank.com and www.WTO.orgINDICATE that sources are World Bank, International Energy Agency and Transparency International

    MENTION that during the exercises today, trainees will have access to a simplified copy of World Bank Stats.

    INVITE the trainees to access this information directly at www.WorldBank.com, www.WTO.org, www.Transparency.org

    DISCLAIMER If you are going to make use of this information for other purposes, verify copyright restrictions in www.WorldBank.com and www.WTO.org

    INDICATE that the source of this documents is World Trade Organization (WTO)

    MENTION that during the exercises today, trainees will have access to a simplified copy of World Bank Stats.

    INVITE the trainees to access this information directly at www.WTO.org

    DISCLAIMER Copyright Permission to make digital or hard copies of any information contained in these Web pages is granted for personal or classroom use, without fee and without formal request. Full citation and copyright notice must appear on the first page. Please see: http://www.wto.org/english/res_e/statis_e/its2007_e/its07_toc_e.htmINDICATE that the source of this documents is World Trade Organization (WTO)

    MENTION that during the exercises today, trainees will have access to a simplified copy of World Bank Stats.

    INVITE the trainees to access this information directly at www.WTO.org

    DISCLAIMER Copyright Permission to make digital or hard copies of any information contained in these Web pages is granted for personal or classroom use, without fee and without formal request. Full citation and copyright notice must appear on the first page. Please see: http://www.wto.org/english/res_e/statis_e/its2007_e/its07_toc_e.html

    INDICATE that most sections contain presentation materials and a discussion time* Information may be imported to Access or other databases tables, nonetheless Excel provides basic functionality to sort, filter and lookup for information

    PROVIDE to every participant (or by groups) a copy of the Excel document with tables with selected information by country

    INVITE the trainees to access this information directly at www.WorldBank.com and www.WTO.org

    INDICATE that this information was collected from World Bank, and the World Trade Organization. All of the aforementioned share its information freely for learning purposes.

    DISCLAIMER If you are going to make use of this information for other purposes, verify copyright restrictions in www.WorldBank.com and www.WTO.org

    EXPLAIN if necessary that World Banks GNI is an alternative measure to correct traditional GDP deviation; it is common in macroeconomics, as in trade classifications, to found heterogeneous approaches. PROVIDE the following example

    USE examples of trainings

    DISCUSS findingsPROVIDE the following example

    USE examples of trainings

    DISCUSS findingsPROVIDE the following example

    GO TO worksheet FTBSUGGEST to use the custom contains window from the auto-filter tools in excel, as shown in in the example above

    USE examples of trainees

    DISCUSS findingsSHOW example MexicoPROVIDE the following example

    GO TO worksheet Regional FTASUGGEST to use the custom contains window from the auto-filter tools in excel, as shown in in the example above

    USE examples of trainees

    DISCUSS findingsSHOW example ChilePROVIDE the following example

    GO TO worksheet Regional FTASUGGEST to use the custom contains window from the auto-filter tools in excel, as shown in in the example above

    USE examples of trainees

    DISCUSS findingsSHOW example of blocks to which Chile has adhered