TradeandDevelopment
KatrinKuhlmannPresidentandFounder,NewMarketsLabLectureronLaw,HarvardLawSchool
AdjunctProfessorGeorgetownUniversityLawCenter
TradeandDevelopment
• WTOFrameworks– WTOAgreements– SpecialandDifferenKalTreatment
• TradeAgreements(RegionalTradeAgreementsandFTAs)– MarketAccess(SpecialandDifferenKalTreatment)– NegoKaKngIssues/RuleofLawAspects
• TradePreferencePrograms(GSP,AGOA,etc.)• AidforTrade• OtherIssues(Investment/BITS)• Supply/ValueChainRegulaKon
--Non-TariffIssues(Sector-specificRegulaKon,Standards,SPS)--Services(Financial,ICT,Transport,DistribuKon)--OtherAspectsBusinessEnablingEnvironment(IPR,Labor)--RelatedIssues(Land,Energy,Environment)
Trade&DevelopmentWTO
• Special&DifferenKal(S&D)Treatment• PartIVGATT1965Trade&Development-BestEndeavor:IncreasedMAprimaryproducts,manufacturedandprocessedproducts;restraintintroducingduKesorNTBsproductsofexportinteresttodevelopingcountries;reciprocitynotrequired
• EnablingClause1979(permanentlegalauthority):GSP,S&DunderGATTAgts,RTAs,specialtreatmentLDCs,non-reciprocity
• TradePreferencePrograms(since1964):US,Europe,andothercountriesmaintainpreferences,bothgeneral(underEnablingClause1979)andspecific(requireWTOwaiver)
• FlexibilityinImplementaKon:GATS,TRIPS,AgreementonAgriculture(extensionsforcomplianceforLDCs;TRIPSextensionthrough2021)
• CommiceeonTradeandDevelopment• LDCServicesWaiver• TradeFacilitaKonAgreement
TradeFacilitaKon
• WTOTradeFacilitaKonAgreementandRTAs/FTAs• Transparency:PublicaKonandavailabilityof
informaKon,opportunitytocomment,appeal• ReleaseandClearanceofGoods:Pre-arrivalprocessing,
electronicpaymentsystems,expeditedshipments(includingforperishableagriculture),riskmanagement
• BorderAgencyCooperaKon• FormaliKesinImportaKon,ExportaKon&Transit(“shall
endeavor”toformsinglewindowsystems)• FreedomofTransit(importantforlandlockedcountries)• CustomsCooperaKon
TradeAgreements
• MarketAccessforGoods&Services• NegoKaKngIssues:RuleofLaw/BuildingBlockIssues– RulesofOrigin– SPS– TBT– TradeFacilitaKon– Investment– IP– Labor&Environment– RegulatoryCoherence(TBT)
• CapacityBuilding(CAFTA-DR;TPP)
TradeAgreement“BestPracKces”• BuildingBlockApproaches:CooperaKonAgreementAmongthePartnerStatesof
theEACandUSonTradeFacilitaKon,SanitaryandPhytosanitaryMeasuresandTechnicalBarrierstoTradeandtheU.S.-CAFTA-DRFTA(technicaladviceandassistanceforimprovingriskassessmenttechniques,simplifyingandexpediKngcustomsprocedures,advancingtechnicalskills,andenhancingtheuseoftechnologiesthatcanleadtoimprovedcompliancewithlawsandregulaKonsgoverningimportaKon)
• StagingCommitments:Tailortomarketdevelopmentandchangesincapacity,suchastheWTOTradeFacilitaKonAgreementandagriculturalchapteroftheU.S.-MoroccoFTA
• FocusonSpecificEconomicSectors:Linktodevelopmentsignificance;examplesincludeEuropeanagreementswithdevelopingcountrytradingpartnersthatspecificallytargettransportaKon,tourism,andenergy
• ProvisionstoEncouragePrivateSectorEngagementandConsultaJon:ExamplesincludeenvironmentalprovisionsintheU.S.-CAFTA-DR,U.S.-Panama,andU.S.-PeruFTAs
DevelopmentintheTPP• ProvisionsspecifictoSMEsandwomen;SMEchaptermainlyfocusedon
informaKonsharing–SMEsandwomencouldbelinkedthroughkeyareassuchastradefacilitaKon,accesstofinance,infrastructure(parKcularlyelectricity),labor,andanK-corrupKon
• ChaptersonTBTandSPSmoretailoredandincludeprovisionsforcertainindustries,suchas,interalia,cosmeKcs,wineanddisKlledspirits,andorganicproducts
• CapacityBuildingincluded(“sog”legalstandard)• AnK-corrupKonprovisions,suchasthosethataddresscompliancewithanK-
corrupKonmeasuresthroughbestpracKces,including,forexample,requirementsfortheadopKonofaccounKngstandardsandkeepingofrecords,trainingoflocalofficials,andthedevelopmentofgoodprocedurestoensurethatcorruptofficialsareremovedfromoffice
• OtherIssues:RegulatoryCoherence(regulatory&non-tariffmeasures),GlobalSupplyChains
TradePreferencePrograms• GeneralizedSystemofPreferences(GSP):benefits
concentrated,temporaryduraKon,productexclusions,incomeandcompeKKvenessgraduaKon
• CondiKonsonuse:U.S.mandatoryanddiscreKonaryeligibilitycriteria
• RulesofOrigin:Canbedifficulttomeetorcomplex• EuropeanGSPandGSPPlus:SpecialcondiKonsonlabor,
environment,combaKngdrugs(noteIndiaAppellateBodycase);EuropeanEBA(2000)forLDCs:PermanentDFQF
• Non-generalizedprogramsrequireWTOArtXXIVWaivers(3/4absolutemajority)
• Caribbean(1983)–twoprogramsCBERA(permanent,noCNL)andCBTPA(2020);AGOAcreated2001(justrenewedfor10yearsthrough2025);HOPEIandII(mostunKl2020)
AidforTrade
• AspectofSpecialandDifferenKalTreatment• DifferentCategories(reviewofuses/effecKveness)• TechnicalAssistance:helpingcountriesnegoKate,developtradestrategies,implement
• Infrastructure:roads,ports,telecommunicaKons• ProducKvecapacityandtradedevelopment:helpcountriesdiversifyexports,buildoncomparaKveadvantages
• AdjustmentAssistance:coststariffreducKons,preferenceerosion,shigingtermstrade
• Examples:FeedtheFuture,PowerAfrica,TradeAfrica
ApproachesforImplementaKon
• TradePolicyTools(Preferences,FTAs,OtherModels?)
• ValueChainApproach• DevelopmentCorridors• ModelsforimplemenKnglawandregulaKon,includingCaseStudies
ValueChainApproach:Agriculture
• ProducKon– LandTenureandproducerorganizaKons– Inputs,includingseedsandferKlizer
• Storage/LogisKcs– Services(transport,retail,distribuKon)
• Processing– Standards,SPS,TBT
• Markets– CustomsandTradeFacilitaKon
• Cross-Cupng– FinancialServices– EnergyregulaKon,includingrenewables
ProducKon Storage/LogisKcs Processing
Markets(WholesaleandRetail)
Top Related