WTO Negotiations and Work Programme

3rd Arab Businessmen ForumESCWA, Lebanon, 2-3 July 2008

Hakim Ben HammoudaDirector

Institute for Training and Technical Cooperation, WTO

The DDA NegotiationsThe DDA Negotiations The Ninth Multilateral Trade Negotiations Round launched in

the Qatari City of Doha at the Fourth WTO Ministerial Conference in November 2001

Unsuccessful attempt to launch the negotiations in December 1999 in Seattle, USA

Concerns of developing countries – marginalisation in the MTS, lack of transparency and inclusiveness

Members resolved to place the needs and interests of developing countries at the heart of the negotiations

Doha Work Programme

Liberalisation

Rule-making

Development-orientation

New Issues

Liberalisation Agriculture: ‘substantial improvements in market

access, reductions of, with a view to phasing out, all forms of export subsidies, and substantial reductions in trade-distorting domestic support’

Non-agricultural market access: ‘to reduce or as appropriate eliminate tariffs, including the reduction or elimination of tariff peaks, high tariffs and tariff escalation, as well as non-tariff barriers, in particular on products of export interest to developing countries’

Services: ‘promoting the economic growth of all trading partners and the development of developing and least-developed countries’

Rule-making

Anti-Dumping and Countervailing: ‘clarifying and improving disciplines under the Agreements on Implementation of Article VI of the GATT 1994 and on Subsidies and Countervailing Measures’ and fisheries subsidies

DSU: ‘improvements and clarifications’

TRIPS: multilateral registry in wines and spirits, extension of protection of geographical indications, examine the relationship between TRIPS and the Convention on Biological Diversity, etc.

Trade and Environment: ‘negotiations … on the relationship between existing WTO rules and specific trade obligations set out in multilateral environmental agreements (MEAs)’

Development Implementation-related issues (related to UR

Agreements)

TRIPS and public health

S & D: ‘reviewed with a view to strengthening them and making them more precise, effective and operational’

Technical Assistance

Other concerns: small economies; least developed countries, trade, debt and finance; trade and technology transfer.

Singapore (New) Issues

Trade Facilitation: ‘review and as appropriate, clarify and improve relevant aspects of Articles V, VIII and X of the GATT 1994 and identify the trade facilitation needs and priorities of Members, in particular developing and least-developed countries’

Trade and investment

Trade and Competition

Transparency in Government Procurement

DDA (2001)DDA (2001)

Single undertaking (except DSU)Single undertaking (except DSU) Trade Negotiations Committee Trade Negotiations Committee

(TNC)(TNC) Various negotiating groups Various negotiating groups Open group membershipOpen group membership Expected Expected ((conclusion 2005)conclusion 2005)

Principal Elements of the Principal Elements of the DDADDA

Doha Declaration Doha Declaration (WT/MIN/(01)/DEC/1)(WT/MIN/(01)/DEC/1)

1 August 2004, General Council 1 August 2004, General Council Decision (WT/L/579)Decision (WT/L/579)

Hong Kong Declaration Hong Kong Declaration (WT/MIN(05)/DEC)(WT/MIN(05)/DEC)

State of playState of play Still work in progress. Attempts for

consensus building: Revised draft modalities texts on Agriculture and NAMA

Mini Ministerial the week of 21 July.

Single Undertaking – guarantor of a final outcome acceptable to all Members

Successful conclusion by end of 2008?

Why Aid for Trade?Why Aid for Trade?

Trade can be an engine for growth that Trade can be an engine for growth that lifts millions of people out of povertylifts millions of people out of poverty

But many developing countries face But many developing countries face barriersbarriers that prevent them from that prevent them from benefiting from the world trading systembenefiting from the world trading system

Some of these barriers are in Some of these barriers are in export export marketsmarkets – tariffs, quotas, subsidies, – tariffs, quotas, subsidies, etc. – which the Doha Round of etc. – which the Doha Round of multilateral trade negotiations aims multilateral trade negotiations aims to reduce or eliminateto reduce or eliminate

But But internal barriersinternal barriers – lack of knowledge, – lack of knowledge, excessive red tape, inadequate financing, excessive red tape, inadequate financing, poor infrastructure – can be just as poor infrastructure – can be just as difficult for exporters to overcome difficult for exporters to overcome

Targetting these “supply-side” constraints Targetting these “supply-side” constraints is what Aid for Trade is all about is what Aid for Trade is all about

Aid for Trade is a part of overall aid Aid for Trade is a part of overall aid to development but with the specific to development but with the specific objective of helping developing objective of helping developing countries, in particular the least countries, in particular the least developed, to play an active role in developed, to play an active role in the international trading system and the international trading system and to use trade as an instrument for to use trade as an instrument for growth and poverty alleviation.growth and poverty alleviation.

It is It is not a substitutenot a substitute for trade for trade opening, but a necessary and opening, but a necessary and increasingly important complementincreasingly important complement

There are There are fourfour main areas main areas where Aid for Trade is where Aid for Trade is

needed needed Trade policy and regulationTrade policy and regulation

Building capacity to formulate trade Building capacity to formulate trade policy, participate in negotiations and policy, participate in negotiations and implement agreementsimplement agreements

There are There are fourfour main areas main areas where Aid for Trade is where Aid for Trade is

neededneeded Economic infrastructureEconomic infrastructure

Investing in the infrastructure – roads, ports, Investing in the infrastructure – roads, ports, telecommunications, energy networks – needed to link telecommunications, energy networks – needed to link products to global marketsproducts to global markets

In Sub-Saharan Africa, alone, annual infrastructure needs In Sub-Saharan Africa, alone, annual infrastructure needs are $17-22 billion a year, while spending is about $10 billionare $17-22 billion a year, while spending is about $10 billion

There are There are fourfour main areas main areas where Aid for Trade is where Aid for Trade is

neededneeded Productive capacity buildingProductive capacity building

Strengthening economic sectors – from Strengthening economic sectors – from improved testing laboratories to better supply improved testing laboratories to better supply chains – to increase competitiveness in export chains – to increase competitiveness in export marketsmarkets

There are There are fourfour main areas main areas where Aid for Trade is where Aid for Trade is

neededneededAdjustment assistanceAdjustment assistance

Helping with any transition costs from Helping with any transition costs from liberalization – preference erosion, loss of liberalization – preference erosion, loss of fiscal revenue, or declining terms of tradefiscal revenue, or declining terms of trade

WTO is not a development agency – and should WTO is not a development agency – and should not become one. Its core function is trade not become one. Its core function is trade opening, rule making, and dispute settlementopening, rule making, and dispute settlement

But the WTO does have a role – and a But the WTO does have a role – and a responsibility – to ensure that relevant responsibility – to ensure that relevant agencies and organizations understand the agencies and organizations understand the trade needs of WTO Members and work trade needs of WTO Members and work together more effectively to address themtogether more effectively to address them

A role for the WTO: A role for the WTO: monitoring and evaluationmonitoring and evaluation

A role for the WTO: A role for the WTO: monitoring and evaluationmonitoring and evaluation

The WTO is well placed to play this roleThe WTO is well placed to play this role Direct interest in ensuring that all its Direct interest in ensuring that all its

members benefit from trade and WTO members benefit from trade and WTO agreementsagreements

Multilateral, consensus-based organization Multilateral, consensus-based organization where developing and developed countries where developing and developed countries have equal weighthave equal weight

Institutional experience in reviewing Institutional experience in reviewing complex policy areas through Trade Policy complex policy areas through Trade Policy Review Mechanism Review Mechanism

Monitoring and evaluation Monitoring and evaluation

in the WTO on three in the WTO on three levels:levels:

Global levelGlobal level (using data compiled by the (using data compiled by the OECD-DAC) – November 2007 and OECD-DAC) – November 2007 and spring/summer 2009spring/summer 2009

Donor levelDonor level To share best practices across countries, to To share best practices across countries, to identify areas for improvement and to increase identify areas for improvement and to increase transparency on pledges and commitmentstransparency on pledges and commitments

Country and regional levelCountry and regional level (Philippines (Asia), (Philippines (Asia), Peru (Latin America) and Tanzania (Africa)) - Peru (Latin America) and Tanzania (Africa)) - Arabs?Arabs?To provide a focused, on-the-ground To provide a focused, on-the-ground perspective on whether needs are being met, perspective on whether needs are being met, resources are being provided, and Aid for resources are being provided, and Aid for Trade is effectiveTrade is effective

Roadmap for 2008Roadmap for 2008

Increasing developing country Increasing developing country ownership of A4T.ownership of A4T.

Shifting emphasis to monitoring Shifting emphasis to monitoring implementation – with a focus on implementation – with a focus on country, regional and sectoral country, regional and sectoral priorities.priorities.

Launching work programme to Launching work programme to develop performance indicators and develop performance indicators and to strengthen self evaluations.to strengthen self evaluations.

THANK YOUTHANK YOU