jitesh economics project 2012

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WTO

The World Trade Organization (WTO) is an organization that intends to supervise

andliberalizeinternational trade. The organization officially commenced on January 1, 1995 under

the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which

commenced in 1948. The organization deals with regulation of trade between participating countries; itprovides a framework for negotiating and formalizing trade agreements, and a dispute resolution process

aimed at enforcing participants' adherence to WTO agreements which are signed by representatives of

member governments[5]:fol.9-10

and ratified by theirparliaments.[6]

Most of the issues that the WTO focuses

on derive from previous trade negotiations, especially from theUruguay Round(19861994).

The organization is attempting to complete negotiations on theDoha Development Round, which was

launched in 2001 with an explicit focus on addressing the needs of developing countries. As of June

2012, the future of the Doha Round remains uncertain: the work programme lists 21 subjects in which the

original deadline of 1 January 2005 was missed, and the round is still incomplete .[7]

The conflict between

free trade on industrial goods and services but retention ofprotectionismonfarm subsidiesto domestic

agricultural (requested bydeveloped countries) and the substantiation of the international liberalization

offair tradeon agricultural products (requested bydeveloping countries) remain the major obstacles.

These points of contention have hindered any progress to launch new WTO negotiations beyond the

Doha Development Round. As a result of this impasse, there has been an increasing number of

bilateral free trade agreements signed. WTO's current Director-General is Pascal Lamy, who leads a staff

of over 600 people in Geneva, Switzerland.

HISTORY

The WTO's predecessor, the General Agreement on Tariffs and Trade (GATT), was established

afterWorld War IIin the wake of other newmultilateralinstitutions dedicated to international economiccooperation notably theBretton Woods institutionsknown as theWorld Bankand theInternational

Monetary Fund. A comparable international institution for trade, named theInternational Trade

Organizationwas successfully negotiated. The ITO was to be a United Nations specialized agency and

would address not only trade barriers but other issues indirectly related to trade, including employment,

investment, restrictive business practices, and commodity agreements. But the ITO treaty was not

approved by the U.S. and a few other signatories and never went into effect.[10][11][12]

In the absence of an international organization for trade, the GATT would over the years "transform itself"

into ade factointernational organization.[13]

GATT ROUNDS OF NEGOTIATIONS


afterWorld War IIin the wake of other newmultilateralinstitutions dedicated to international economic

cooperation notably theBretton Woods institutionsknown as theWorld Bankand theInternational


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tp://en.wikipedia.org/wiki/International_Trade_Organizationhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/Multilateralismhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Developing_countrieshttp://en.wikipedia.org/wiki/Fair_tradehttp://en.wikipedia.org/wiki/Developed_countrieshttp://en.wikipedia.org/wiki/Farm_subsidieshttp://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-6http://en.wikipedia.org/wiki/Doha_Development_Roundhttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-britannica-5http://en.wikipedia.org/wiki/Parliamenthttp://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-underst-4http://en.wikipedia.org/wiki/Free_trade


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FROM GENEVA TO TOKYO


afterWorld War IIin the wake of other newmultilateralinstitutions dedicated to international economic

cooperation notably theBretton Woods institutionsknown as theWorld Bankand theInternational








URUGUAY ROUND

Well before GATT's 40th anniversary, its members concluded that the GATT system was straining to

adapt to a newglobalizingworld economy.[18][19]

In response to the problems identified in the 1982

Ministerial Declaration (structural deficiencies, spill-over impacts of certain countries' policies on world

trade GATT could not manage etc.), the eighth GATT round known as the Uruguay Round was

launched in September 1986, inPunta del Este,Uruguay.[18]

It was the biggest negotiating mandate on trade ever agreed: the talks were going to extend the trading

system into several new areas, notably trade in services and intellectual property, and to reform trade in

the sensitive sectors of agriculture and textiles; all the original GATT articles were up for review.[19]

The

Final Act concluding the Uruguay Round and officially establishing the WTO regime was signed April 15,

1994, during the ministerial meeting atMarrakesh,Morocco, and hence is known as theMarrakesh

Agreement.[20]

The GATT still exists as the WTO's umbrella treaty for trade in goods, updated as a result of the Uruguay

Round negotiations (a distinction is made between GATT 1994, the updated parts of GATT, and GATT

1947, the original agreement which is still the heart of GATT 1994).[18]GATT 1994 is not however the only

legally binding agreement included via the Final Act at Marrakesh; a long list of about 60 agreements,

annexes, decisions and understandings was adopted. The agreements fall into a structure with six main

parts:

The Agreement Establishing the WTO
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ternational_Trade_Organizationhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/Multilateralismhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-B81-12http://en.wikipedia.org/wiki/De_factohttp://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-CRS-2007-pg_4-11http://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-9http://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-9


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Goodsandinvestment the Multilateral Agreements on Trade in Goods including the GATT 1994

and theTrade Related Investment Measures(TRIMS)

Services theGeneral Agreement on Trade in Services

Intellectual property theAgreement on Trade-Related Aspects of Intellectual Property

Rights(TRIPS)

Dispute settlement (DSU)

Reviews of governments' trade policies (TPRM)[21]

In terms of the WTO'sprinciple relating to tariff "ceiling-binding" (No. 3), the Uruguay Round has been

successful in increasing binding commitments by both developed and developing countries, as may be

seen in the percentages of tariffs bound before and after the 1986-1994 talks.[

MINISTERAL REFERENCES

The topmost decision-making body of the WTO is theMinisterial Conference, which usually meets every

two years. It brings together all members of the WTO, all of which are countries or customs unions. TheMinisterial Conference can take decisions on all matters under any of the multilateral trade agreements.

Theinaugural ministerial conferencewas held inSingaporein 1996. Disagreements between largely

developed and developing economies emerged during this conference over four issues initiated by this

conference, which led to them being collectively referred to as the "Singapore issues". Thesecond

ministerial conferencewas held inGenevainSwitzerland. Thethird conferenceinSeattle,

Washingtonended in failure, with massive demonstrations and police and National Guard crowd control

efforts drawing worldwide attention. Thefourth ministerial conferencewas held inDohain thePersian

Gulfnation ofQatar. TheDoha Development Roundwas launched at the conference. The conference

also approved the joining of China, which became the 143rd member to join. The fifth ministerial

conferencewas held inCancn,Mexico, aiming at forging agreement on the Doha round. An alliance of

22southernstates, theG20 developing nations(led by India, China,[23]Brazil,ASEANled bythePhilippines), resisted demands from the North for agreements on the so-called "Singapore issues"

and called for an end toagricultural subsidieswithin the EU and the US. The talks broke down without

progress.

Thesixth WTO ministerial conferencewas held inHong Kongfrom 1318 December 2005. It was

considered vital if the four-year-old Doha Development Round negotiations were to move forward

sufficiently to conclude the round in 2006. In this meeting, countries agreed to phase out all their

agricultural export subsidies by the end of 2013, and terminate any cotton export subsidies by the end of

2006. Further concessions to developing countries included an agreement to introduce duty free, tariff

free access for goods from the Least Developed Countries, following theEverything but Armsinitiative of

theEuropean Union but with up to 3% of tariff lines exempted. Other major issues were left for furthernegotiation to be completed by the end of 2010. The WTO General Council, on 26 May 2009, agreed to

hold a seventh WTO ministerial conference session in Geneva from 30 November-3 December 2009. A

statement by chairman Amb.Mario Matusacknowledged that the prime purpose was to remedy a breach

of protocol requiring two-yearly "regular" meetings, which had lapsed with the Doha Round failure in

2005, and that the "scaled-down" meeting would not be a negotiating session, but "emphasis will be on

transparency and open discussion rather than on small group processes and informal negotiating
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structures". The general theme for discussion was "The WTO, the Multilateral Trading System and the

Current Global Economic Environment"[24]

DOHA ROUND (THE DOHA AGENDA)

The topmost decision-making body of the WTO is theMinisterial Conference, which usually meets every

two years. It brings together all members of the WTO, all of which are countries or customs unions. The

Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements.

Theinaugural ministerial conferencewas held inSingaporein 1996. Disagreements between largely

developed and developing economies emerged during this conference over four issues initiated by this

conference, which led to them being collectively referred to as the "Singapore issues". Thesecond

ministerial conferencewas held inGenevainSwitzerland. Thethird conferenceinSeattle,

Washingtonended in failure, with massive demonstrations and police and National Guard crowd control

efforts drawing worldwide attention. Thefourth ministerial conferencewas held inDohain thePersian

Gulfnation ofQatar. TheDoha Development Roundwas launched at the conference. The conference

also approved the joining of China, which became the 143rd member to join. The fifth ministerial

conferencewas held inCancn,Mexico, aiming at forging agreement on the Doha round. An alliance of

22southernstates, theG20 developing nations(led by India, China,[23]

Brazil,ASEANled by

thePhilippines), resisted demands from the North for agreements on the so-called "Singapore issues"

and called for an end toagricultural subsidieswithin the EU and the US. The talks broke down without

progress.

Thesixth WTO ministerial conferencewas held inHong Kongfrom 1318 December 2005. It was

considered vital if the four-year-old Doha Development Round negotiations were to move forward

sufficiently to conclude the round in 2006. In this meeting, countries agreed to phase out all their

agricultural export subsidies by the end of 2013, and terminate any cotton export subsidies by the end of

2006. Further concessions to developing countries included an agreement to introduce duty free, tariff

free access for goods from the Least Developed Countries, following theEverything but Armsinitiative of

theEuropean Union but with up to 3% of tariff lines exempted. Other major issues were left for further

negotiation to be completed by the end of 2010. The WTO General Council, on 26 May 2009, agreed to

hold a seventh WTO ministerial conference session in Geneva from 30 November-3 December 2009. A

statement by chairman Amb.Mario Matusacknowledged that the prime purpose was to remedy a breach

of protocol requiring two-yearly "regular" meetings, which had lapsed with the Doha Round failure in

2005, and that the "scaled-down" meeting would not be a negotiating session, but "emphasis will be on

transparency and open discussion rather than on small group processes and informal negotiating

structures". The general theme for discussion was "The WTO, the Multilateral Trading System and the

Current Global Economic Environment"[24]

FUNCTIONS

Among the various functions of the WTO, these are regarded by analysts as the most important:

It oversees the implementation, administration and operation of the covered agreements.[30][31]
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It provides a forum for negotiations and for settling disputes.[32][33]

Additionally, it is the WTO's duty to review and propagate the national trade policies, and to ensure the

coherence and transparency of trade policies through surveillance in global economic policy-

making.[31][33]

Another priority of the WTO is the assistance ofdeveloping, least-developed and low-

income countries in transition to adjust to WTO rules and disciplines through technical cooperation and

training.[34]

The WTO is also a center of economic research and analysis: regular assessments of the global trade

picture in its annual publications and research reports on specific topics are produced by the

organization.[35]

Finally, the WTO cooperates closely with the two other components of the Bretton Woods

system, the IMF and the World Bank.[32]

PRINCIPLES OF THE TRADING SYSTEM

The WTO establishes a framework for trade policies; it does not define or specify outcomes. That is, it is

concerned with setting the rules of the trade policy games.[36]Five principles are of particular importancein understanding both the pre-1994 GATT and the WTO:

1. Non-discrimination. It has two major components: themost favoured nation(MFN) rule, and

thenational treatmentpolicy. Both are embedded in the main WTO rules on goods, services, and

intellectual property, but their precise scope and nature differ across these areas. The MFN rule

requires that a WTO member must apply the same conditions on all trade with other WTO

members, i.e. a WTO member has to grant the most favorable conditions under which it allows

trade in a certain product type to all other WTO members.[36]

"Grant someone a special favour

and you have to do the same for all other WTO members. "[22]

National treatment means that

imported goods should be treated no less favorably than domestically produced goods (at least

after the foreign goods have entered the market) and was introduced to tacklenon-tariff barriers

to trade(e.g. technical standards, security standards et al. discriminating against imported

goods).[36]

2. Reciprocity. It reflects both a desire to limit the scope offree-ridingthat may arise because of the

MFN rule, and a desire to obtain better access to foreign markets. A related point is that for a

nation to negotiate, it is necessary that the gain from doing so be greater than the gain available

fromunilateralliberalization; reciprocal concessions intend to ensure that such gains will

materialise.[37]

3. Binding and enforceable commitments. The tariff commitments made by WTO members in a

multilateral trade negotiation and on accession are enumerated in a schedule (list) of

concessions. These schedules establish "ceiling bindings": a country can change its bindings,but only after negotiating with its trading partners, which could mean compensating them for loss

of trade. If satisfaction is not obtained, the complaining country may invoke the WTO dispute

settlement procedures.[22][37]

4. Transparency. The WTO members are required to publish their trade regulations, to maintain

institutions allowing for the review of administrative decisions affecting trade, to respond to

requests for information by other members, and to notify changes in trade policies to the WTO.

These internal transparency requirements are supplemented and facilitated by periodic country-
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specific reports (trade policy reviews) through the Trade Policy Review Mechanism

(TPRM).[38]

The WTO system tries also to improve predictability and stability, discouraging the

use ofquotasand other measures used to set limits on quantities of imports.[22]

5. Safety valves. In specific circumstances, governments are able torestrict trade. The WTOs

agreements permit members to take measures to protect not only the environment but also

public health, animal health and plant health.[39]

There are three types of provision in this direction:

articles allowing for the use of trade measures to attain non-economic objectives;

articles aimed at ensuring "fair competition"; members must not use environmental protection

measures as a means of disguising protectionist policies.[39]

provisions permitting intervention in trade for economic reasons.[38]

Exceptions to the MFN principle also allow for preferential treatment ofdeveloping countries,

regionalfree trade areasandcustoms unions.[5]:fol.93

ORGANISATIONAL STRUCTURE:

The General Council has the following subsidiary bodies which oversee committees in different areas:

Council for Trade in Goods

There are 11 committees under the jurisdiction of the Goods Council each with a specific task. All

members of the WTO participate in the committees. The Textiles Monitoring Body is separate

from the other committees but still under the jurisdiction of Goods Council. The body has its ownchairman and only 10 members. The body also has several groups relating to textiles .

[40]

Council for Trade-Related Aspects of Intellectual Property Rights

Information on intellectual property in the WTO, news and official records of the activities of the

TRIPS Council, and details of the WTO's work with other international organizations in the field.[41]

Council for Trade in Services

The Council for Trade in Services operates under the guidance of the General Council and is

responsible for overseeing the functioning of theGeneral Agreement on Trade in

Services(GATS). It is open to all WTO members, and can create subsidiary bodies as

required.[42]

Trade Negotiations Committee

The Trade Negotiations Committee (TNC) is the committee that deals with the current trade talks

round. The chair is WTO's director-general. As of June 2012 the committee was tasked with

theDoha Development Round.[43]
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The Service Council has three subsidiary bodies: financial services, domestic

regulations, GATS rules and specific commitments.[40]

The General council has several

different committees, working groups, and working parties.[44]

There are committees on

the following: Trade and Environment; Trade and Development (Subcommittee

onLeast-Developed Countries);Regional Trade Agreements; Balance of Payments

Restrictions; and Budget, Finance and Administration. There are working parties on thefollowing: Accession. There are working groups on the following: Trade, debt and

finance; and Trade and technology transfer.

MEMBERS AND OBSERVERS

The WTO has 157 members and 27 observer governments.[58]

In addition to states, the European Union

is a member. WTO members do not have to be full sovereignnation-members. Instead, they must be a

customs territory with full autonomy in the conduct of their external commercial relations. ThusHong

Kong(as "Hong Kong, China" since 1997) became a GATT contracting party, and the Republic of

China(Taiwan) acceded to the WTO in 2002 as "Separate Customs Territory

ofTaiwan,Penghu,KinmenandMatsu"(Chinese Taipei) despite itsdisputed status.[59]

The WTO

Secretariat omits the official titles (such as Counselor, First Secretary, Second Secretary and Third

Secretary) of the members of Chinese Taipei's Permanent Mission to the WTO, except for the titles of the

Permanent Representative and the Deputy Permanent Representative.[60]

Iranis the biggest economy outside the WTO.[61]

With the exception of theHoly See, observers must start

accession negotiations within five years of becoming observers. A number of international

intergovernmental organizations have also been granted observer status to WTO bodies.[62]

14 states and

two territories so far have no official interaction with the WTO.

AGREEMENTS

The WTO oversees about 60 different agreements which have the status of international legal texts.

Member countries must sign and ratify all WTO agreements on accession.[63]

A discussion of some of the

most important agreements follows. TheAgreement on Agriculturecame into effect with the

establishment of the WTO at the beginning of 1995. The AoA has three central concepts, or "pillars":

domestic support,market accessandexport subsidies. TheGeneral Agreement on Trade in

Serviceswas created to extend the multilateral trading system toservice sector, in the same way as the

General Agreement on Tariffs and Trade (GATT) provided such a system for merchandise trade. The

agreement entered into force in January 1995. TheAgreement on Trade-Related Aspects of Intellectual

Property Rightssets down minimum standards for many forms ofintellectual property(IP) regulation. It

was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT)

in 1994.

TheAgreement on the Application of Sanitary and Phytosanitary Measuresalso known as the SPS

Agreementwas negotiated during theUruguay Roundof GATT, and entered into force with the

establishment of the WTO at the beginning of 1995. Under the SPS agreement, the WTO sets constraints

on members' policies relating to food safety (bacterial contaminants, pesticides, inspection and labelling)
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n_the_Application_of_Sanitary_and_Phytosanitary_Measureshttp://en.wikipedia.org/wiki/Intellectual_propertyhttp://en.wikipedia.org/wiki/Agreement_on_Trade-Related_Aspects_of_Intellectual_Property_Rightshttp://en.wikipedia.org/wiki/Agreement_on_Trade-Related_Aspects_of_Intellectual_Property_Rightshttp://en.wikipedia.org/wiki/Tertiary_sector_of_industryhttp://en.wikipedia.org/wiki/General_Agreement_on_Trade_in_Serviceshttp://en.wikipedia.org/wiki/General_Agreement_on_Trade_in_Serviceshttp://en.wikipedia.org/wiki/Export_subsidieshttp://en.wikipedia.org/wiki/Market_accesshttp://en.wikipedia.org/wiki/Agreement_on_Agriculturehttp://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-62http://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-61http://en.wikipedia.org/wiki/Holy_Seehttp://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-60http://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-59http://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-J109-58http://en.wikipedia.org/wiki/Legal_status_of_Taiwanhttp://en.wikipedia.org/wiki/Chinese_Taipeihttp://en.wikipedia.org/wiki/Matsu_Islandshttp://en.wikipedia.org/wiki/Kinmenhttp://en.wikipedia.org/wiki/Penghuhttp://en.wikipedia.org/wiki/Taiwanhttp://en.wikipedia.org/wiki/Republic_of_Chinahttp://en.wikipedia.org/wiki/Republic_of_Chinahttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Sovereigntyhttp://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-memberlist-57http://en.wikipedia.org/wiki/Regional_Trade_Agreementhttp://en.wikipedia.org/wiki/Least_developed_countryhttp://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-WTO-chart-43http://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-WTO_subsidiary_bodies-39


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as well as animal and plant health (imported pests and diseases). TheAgreement on Technical Barriers

to Tradeis an internationaltreatyof the World Trade Organization. It was negotiated during theUruguay

Roundof theGeneral Agreement on Tariffs and Trade, and entered into force with the establishment of

the WTO at the end of 1994. The object ensures that technical negotiations and standards, as well as

testing and certification procedures, do not create unnecessary obstacles to trade".[64]

TheAgreement on

Customs Valuation, formally known as the Agreement on Implementation of Article VII of GATT,prescribes methods of customs valuation that Members are to follow. Chiefly, it adopts the "transaction

value" approach

MARKET ACCESS FOR GOODS:-

Market access for goods in the WTO means the conditions, tariff and non-tariffmeasures, agreed by members for the entry of specific goods into their markets.Tariff commitments for goods are set out in each member'sschedules ofconcessionson goods. The schedules represent commitments not to apply tariffsabove the listed rates these rates are bound. Non-tariff measures are dealt withunder specific WTO agreements (see listbelow). WTO Members seek to continuallyimprove market access through the regular WTO work programme and throughnegotiations such as those launched at the Doha Ministerial Conference inNovember 2001.

WORK OF THE COMMITTEE ON MARKET ACCESS

Work of the Committee on Market Access >back to top

At its meeting on 31 January 1995 the General Council established the WTO Committee on Market

Access with the following terms of reference:

The Committee on Market Access shall:

(a) in relation to market access issues not covered by any other WTO body:

supervise the implementation of concessions relating to tariffs and non-tariff measures;

provide a forum for consultation on matters relating to tariffs and non-tariff measures;

(b) oversee the application of procedures for modification or withdrawal of tariff concessions;

(c) ensure that GATT Schedules are kept up-to-date, and that modifications, including those resulting

from changes in tariff nomenclature, are reflected;

(d) conduct the updating and analysis of the documentation on quantitative restrictions and other non-tariff measures, in accordance with the timetable and procedures agreed by the CONTRACTINGPARTIES in 1984 and 1985 (BISD 31S/227 and 228, and BISD 32S/92 and 93).

(e) oversee the content and operation of, and access to, the Integrated Data Base;

(f) report periodically and in any case not less than once a year to the Council on Trade in Goods.
http://en.wikipedia.org/wiki/Agreement_on_Technical_Barriers_to_Tradehttp://en.wikipedia.org/wiki/Agreement_on_Technical_Barriers_to_Tradehttp://en.wikipedia.org/wiki/Agreement_on_Technical_Barriers_to_Tradehttp://en.wikipedia.org/wiki/Agreement_on_Technical_Barriers_to_Tradehttp://en.wikipedia.org/wiki/Treatyhttp://en.wikipedia.org/wiki/Treatyhttp://en.wikipedia.org/wiki/Treatyhttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-63http://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-63http://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-63http://en.wikipedia.org/wiki/WTO_Agreement_on_Customs_Valuationhttp://en.wikipedia.org/wiki/WTO_Agreement_on_Customs_Valuationhttp://en.wikipedia.org/wiki/WTO_Agreement_on_Customs_Valuationhttp://en.wikipedia.org/wiki/WTO_Agreement_on_Customs_Valuationhttp://www.wto.org/english/tratop_e/schedules_e/goods_schedules_e.htmhttp://www.wto.org/english/tratop_e/schedules_e/goods_schedules_e.htmhttp://www.wto.org/english/tratop_e/schedules_e/goods_schedules_e.htmhttp://www.wto.org/english/tratop_e/schedules_e/goods_schedules_e.htmhttp://www.wto.org/english/tratop_e/markacc_e/markacc_e.htm#specificshttp://www.wto.org/english/tratop_e/markacc_e/markacc_e.htm#specificshttp://www.wto.org/english/tratop_e/markacc_e/markacc_e.htm#specificshttp://www.wto.org/english/tratop_e/markacc_e/markacc_e.htm#tophttp://www.wto.org/english/tratop_e/markacc_e/markacc_e.htm#tophttp://www.wto.org/english/tratop_e/markacc_e/markacc_e.htm#tophttp://www.wto.org/english/tratop_e/markacc_e/markacc_e.htm#tophttp://www.wto.org/english/tratop_e/markacc_e/markacc_e.htm#specificshttp://www.wto.org/english/tratop_e/schedules_e/goods_schedules_e.htmhttp://www.wto.org/english/tratop_e/schedules_e/goods_schedules_e.htmhttp://en.wikipedia.org/wiki/WTO_Agreement_on_Customs_Valuationhttp://en.wikipedia.org/wiki/WTO_Agreement_on_Customs_Valuationhttp://en.wikipedia.org/wiki/World_Trade_Organization#cite_note-63http://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/Uruguay_Roundhttp://en.wikipedia.org/wiki/Treatyhttp://en.wikipedia.org/wiki/Agreement_on_Technical_Barriers_to_Tradehttp://en.wikipedia.org/wiki/Agreement_on_Technical_Barriers_to_Trade


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Market Access negotiations in non agricultural goods

Market Access

Market access is an umbrella term for a number of measures that a country may

use to restrict imports. The most common form of such restrictions are tariffs on

imported goods. Non-tariff barriers to market access also exist for goods, such as

technical standards, antidumping suits, import quotas, import licensing, and

variable levies, among others.. The term market access is now generally used to

refer to non-agricultural market access.

As a result of the tough negotiations on market access during the Uruguay Round,

most countries have cut tariffs significantly, and have adopted tariff bindings -

levels above which tariffs may never rise - for almost all imports.

Many developing countries - including India, Pakistan, Malaysia and Egypt - are

reluctant to reduce industrial tariffs, as they are significant sources of revenue fortheir respective governments. They also worry that opening up domestic

industries to aggressive foreign competition will result in the decline of the

domestic industries and job losses.

Market Access Barriers

Tariff barriers

Typical developing country exports face higher barriers, both in the markets of

industrial countries and also in other developing countries. Barriers take a variety

of forms. Applied simple average tariffs for merchandise imports into industrial

countries are approximately 3 percent; but for textiles and clothing, and


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agricultural products, which represent a relatively large share of developing

country exports, average tariffs are 8 and 27 percent, respectively.

But average tariffs tell only part of the story. Tariff "peaks" within product groups,

often exceeding 50 percent or, in agriculture, 100 percent, are concentrated in

labor-intensive products of significant export interest to developing countries,

and particularly Least Developed Countries (LDCs).

Tariff "escalation"in which tariffs on processed goods exceed those on primary

productscan substantially reduce the returns to developing country

entrepreneurs of engaging in activities with higher value-added. This hampers the

diversification of exports, limits the accumulation of skills and capital, and thus

helps to perpetuate dependence on a small number of unprocessed goods whose

world demand grows little and whose prices are volatile.

Textiles and Clothing

Textiles are clothing products together constitute one of the most contentious

issues at the WTO. For developing countries, production of such goods through

relatively low cost labor is a major part of their economic output. If, as is generally

the case at present for developing countries, there are significant barriers to

exporting these products to developed countries, their economies may suffer as a

result.


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The Agreement on Textiles and Clothing requires the progressive elimination of all

quantitative restrictions in this economically important sector. At this point, 51%

of products will have had their quantitative restrictions eliminated. By 2005,

Members must bring the remaining 49% of their textiles trade policy into full

conformity with the Agreement, at which point the textiles sector will be fully

integrated into the multilateral trading system.

Developing countrieshave criticized the European Union, USA and other

developed countries for this "backloading" of the liberalization of these key

sectors until the very end of the implementation period. Developing countries are

also concerned that only the minimum requirements of the ATC are being met,

and that protection may still take place through other measures.

Yet the integration of the textiles trade may ultimately prove to be a mixed

blessing for some developing countries. Countries that benefited frompreferential agreements with the European Union or the United States will face

stiffer competition from other nations once the MFA disappears. For other

developing countries, China's accession has the potential to reduce the expected

gains of textiles liberalization. The World Bank estimates that China's share of

world garment production will increase from 20% to 50% by 2010 as a result.

Though this may lead to greater economic efficiency, it may also produce a

painful period of adjustment for countries who are already poor.

Market Access and Doha Mandate:


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Paragraph 16 of the Declaration launches negotiations in the area of market

access of non-agriculture products. Though non-tariff barriers have also been

included for negotiations. The aim of negotiations is to reduce industrial tariffs.

Tariff peaks, high tariffs and tariff escalation. Have also been specifically

indentified as target for reduction. The stipulation is that the product coverage

shall be comprehensive, which mean negotiations will not be limited to any

particular areas.

What is offered in Doha mandate :

The work program aims at reducing the tariffs, in particular on products of

export interest to developing countries.The paragraph says that the

negotiations shall take fully into account the special needs and interest of

developing as well least developing countries.

The tariff reduction exercise will be based on modalities to be agreed. Hence

first task in this process will be work out the modalities. The developing

countries will have the opportunity to include their special concerns during

this stage.


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Doha Declaration : Some challenges

The main targets will be developing countries in this exercise of tariff

reduction. The developed countries have generally low average industrial

tariffs, though tariffs on some individual items export interest to developing

countries are relatively high. . A large number of developing countries have

comparatively higher average industrial tariff because of the need of

protection of their local industries and development need. Hence the

developing countries are vulnerable in the area of negotiations.

There may be tendency to work out formulae for the reduction based on past

practices. This may be harmful for developing countries. Some new alternative

formulae should be evolved.

What should be done:

The modalities for negotiations must include identification of products of

export interest to the developing countries, including the LDCs, manners of

giving special consideration in tariff reductions in the developed countries,

identification of tariff peaks and tariff escalation in the developed

countries.. Negotiations should be undertaken on tariff reduction exercise

only after the modalities have been fully worked out.

It is prudent for developing countries to have formula that reduces the gap

between the average tariff and the higher tariffs rather than having formula

which primarily aims at reducing the average tariff.


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jitesh economics project 2012

Documents