Transcript Slide 1

Workshop on Trade Policy and
Negotiating Skills
4-8 October 2010
Saint Vincent & the Grenadines
Trade Policy Research:
Aims and Means
Pierre Sauvé, WTI
[email protected]
5 October 2010
Assistance to Saint
Vincent and the
Grenadines to sensitise
stakeholders about the
WTO services
liberalization and its
implications and hence
support more effective
participation in the
process and its
implementation
(9 ACP RPR 140 - Activity n° 003-09)
bkp
DEVELOPMENT
RESEARCH & CO NSULTING
Aims of Trade Policy Research
• Better situating trade policy analysis in
development/economic policy
formulation
• Assessing in-house abilities within the
trade ministry – training forms part of
the aid for trade supply chain
• Marshaling expertise in relevant
ministries and agencies, civil society
organizations (incl. the private sector)
2
Why trade policy research?
• To identify where SVG‘s trade negotiating interests
lie
• Time out: is engagement in international
negotiations (always) necessary relative to
autonomous domestic policy reform?
• Where is engagement optimal? In the
neighborhood or at the global level?
• What drives the process? Export vs importcompeting interests (defensive interests are more
politically driven, and economic analysis, however
good, tends to take a back seat to defensive trade
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politics
Much scope for free-riding
• There is condiderable expertise and information
available on the websites of key international
organizations, especially the WTO, but also in the
neighborhood (i.e. SICE)
– Subscribe to all that is relevant (and often free)
online
• Free riding is always an option, especially on rules
issues, collective requests, general negotiating
proposals, IO secretariat documents. This facilitates
monitoring and analysis, but is no substitute for work
focused on context-specific challenges
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Pursuing SVG-specific interests
• Inputs into trade policy making:
– knowledgeable policy officials (training
matters);
– a mastery of the regulatory landscape
(hence the importance of conducting a
prior regulatory audit);
– adequate consultative mechanisms, both at
the inter-agency level and with external
stakeholders (esp. the private sector)
Trade Policy Research Outputs
– industry-specific sectoral strategies,
– competitiveness analysis,
– ex ante impact assessments,
– identification of regulatory implementation
bottleneck,
– legislative change analysis
Asking the right questions
• Focusing on the right issues over the whole
negotiating cycle in services trade
– Before…During…After...negotiations
1.
2.
3.
4.
5.
Mapping a strategy for services in national
development plans;
Preparing for services negotiations;
Conducting services negotiations;
Implementing negotiated outcomes; and
Enhancing the capacity to supply newlyopened foreign markets.
Mapping a strategy for services in national
development plans - Key questions
 What is the institutional setting for dealing with services within the
government?
 Is there an authority, agency or ministry responsible for
coordinating strategies focused on the service sector?
 Is the coordinating authority, agency or ministry capable of making
and executing decisions?
 Are services being dealt with adequately from a sectoral
perspective?
 Are there sufficient and well-functioning ministries or agencies
devoted to service sectors?
 Does the service sector have a voice in the establishment of
national development strategies?
 Are national development strategies based on economy-wide
considerations?
8
Mapping a strategy for services in national
development plans - Key questions (2)
 Are priorities clear in terms of support, regulation or policy-making for
services and their relationship to the overall economy?
 How far should government intervention go in the economic realm in
general and in the service sector in particular?
 What role should be assigned to trade and investment policy relative to
autonomous liberalisation in pursuing a service sector development
strategy?
 Has a cost-and-benefit analysis been undertaken with respect to the
opening up of the economy in general and the service economy in
particular?
 Has a cost-and-benefit analysis been undertaken with respect to the nonliberalisation of the economy and specific service sectors?
 How clear are the government and key stakeholders on the opportunity
costs of various liberalisation scenarios?
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Key questions in preparing for
services egotiations
 Is the coordinating authority, lead agency or ministry fully in place and
ready to operate?
 Have capacity-building needs been identified with respect to the
overall approach to liberalisation and trade agreements, i.e. the
readiness to liberalise, the strategies to adopt in negotiating
liberalisation and the advantages from negotiating, particularly in
terms of access to foreign markets?
 Does an inventory of measures affecting trade in services already exist
at the horizontal and/or sectoral level? Beyond its use in trade
negotiations, is the information gathered in such inventories being
used to underpin domestic dialogue with key regulatory agencies and
external stakeholders and as a means to promote regulatory review
and reform processes?
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Key questions in preparing for services
negotiations (2)
 Once an inventory of trade-related regulatory measures is put in
place, what is the basis for determining what regulatory requirements
are adequate and/or acceptable or in need of change?
 In instances where regulatory change appears necessary, can or
should changes be contemplated within the timeframe of ongoing
international negotiations?
 If so, could or should these changes be presented as part of the offer
the country is to make in relevant concurrent international
negotiations?
 What criteria should govern the choice of measures and/or modes of
supply in which sectors to offer as fully bound, partially bound or
unbound commitments?
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Key questions in preparing for services
negotiations (3)
 Has a clear distinction been made between defensive and
offensive interests in negotiations?
 How does the government determine its negotiating red lines
(i.e. points beyond which it will not go)?
 How significant is the voice of consumer/user groups in the
formulation of service sector policy? Should technical assistance
be directed at nurturing such voices or sustaining their
development?
 Has the coordinating entity managed to organise the necessary
consulting process with all relevant stakeholders in the public
and private sectors, including with trade unions and with
relevant non-governmental organisations?
 Is the consultation process with stakeholders broad enough to
be truly representative?
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Key questions for the conduct of
services negotiations
 Has the government identified specific rule-making issues to
which it intends to attach priority importance in the conduct
of services negotiations?
 How adequate are the negotiating skills of the country’s trade
and regulatory officials, particularly as regards the capacity to
take an active part in – and influence - discussions on rulemaking issues in services negotiations?
 Has the government considered teaming up with other WTO
Members or regional partners in formulating proposals and
negotiating on selected rule-making issues?
 Has the government considered how best to cooperate with
various international organisations, bilateral donors or expert
NGOs in formulating negotiating proposals on selected rulemaking, market-opening or development issues?
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Key questions for the conduct of
services negotiations (2)
 Has the government considered the pros and cons of
participating in collective requests and offers on selected
rule-making, thematic or sectoral issues with a view to
overcoming resource constraints and achieve scale economies
in the conduct of negotiations?
 What use is the government thinking of assigning to Article
XVIII (Additional Commitments) of GATS (and PTA
equivalents) in sequencing liberalisation undertakings (precommitting to future opening) and/or addressing sectorspecific complements of market opening (for instance in
respect of government procurement, emergency safeguards,
labour mobility-related issues, etc.)?
 Have export interests been identified so as to contribute to
the elaboration of a realistic request list? How does the
government compile information on foreign barriers affecting
the country’s service suppliers?
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Key questions for the conduct of
services negotiations (3)
 How does the ministry or agency responsible for the conduct of
services negotiations seek input from key stakeholders in
responding to requests for market-opening formulated by trading
partners?
 Do consultations focus primarily on targeted sectors and key
domestic suppliers or is an attempt made to weigh the economywide implications of acceding to negotiating requests?
 Does the government weigh the pros and cons of binding less than
the status quo, notably in terms of the signals such a decision may
send regarding the country’s investment and regulatory climate?
 To what extent is the government’s negotiating stance in services,
notably as regards the evolution of liberalisation offers, informed
by - and coordinated with – the state of play of negotiations in nonservice sectors?
15
Key questions in implementing
negotiated outcomes
 Are negotiating offers and proposed new and/or improved
commitments informed by an assessment of the possible
implementation costs (including recurring costs) relating to
regulatory enforcement activities?
 Has a proper assessment been made of the capacitystrengthening needs of key regulatory agencies prior to
scheduling new and/or improved commitments?
 Has the government given thought to formulating requests of
needed capacity-strengthening as a pre-condition or quid pro
quo for new and/or improved commitments?
 What considerations weigh on the government’s decision to
pursue liberalisation in a progressive manner and sequence
such liberalisation with strengthened regulatory and
implementation capacities?
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Key questions in implementing
negotiated outcomes (2)
 Has an attempt been made to benchmark the country’s regulatory
practices and institutions against those of key trading partners or of
countries at similar levels of development and regulatory sophistication?
 To what extent can regulatory harmonisation or the pursuit of mutual
recognition initiatives help countries address weakness in domestic
regulatory practices, help overcome the potentially trade-inhibiting
effects of regulatory diversity and move domestic regulatory regimes in
the direction of “best” regional or global practices?
 Is the government confident in its analytical capacity to conduct the
various impact assessments linked to service sector liberalisation or does
it require dedicated technical assistance to this end?
 Have attempts been made to learn from the post-liberalisation
implementation experience of neighbouring countries or countries at
similar levels of development through targeted training?
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Key questions to enhance supply-side
capacities
 What forms of advisory services and training opportunities
have been developed to assist in strengthening trade and
investment promotion organisations and private companies in
developing countries?
 How can detailed information best be supplied on the
regulatory regimes prevailing in the specific service sectors of
developed and emerging country markets of interest to
developing country exporters of services?
 Have online databases and electronic meeting places been
developed to facilitate interaction between service suppliers
in developing countries and companies in developed markets
that may be seeking to outsource work or find partners?
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Key questions to enhance supply-side
capacities (2)
 What funding opportunities exist to help small service exporting
firms from developing economies take part in trade missions to
developed and emerging country markets as well as buying
missions for services importers from developed countries?
 What steps have been taken to promote B2B dialogue and enhance
access to distribution channels in the services markets of developed
and emerging economies?
 What forms of assistance, including by private companies, is best
able to help developing country firms enhance quality standards
and more easily meet host country certification and licensing
requirements?
 What special mechanisms or funds could be created to provide
funding at affordable interest rates to services SMEs?
 How can financial institutions in developing countries be
encouraged to overcome their aversion to lend to service sector
firms with limited physical capital and significant intangible assets?
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Means of Trade Policy Research
• Long live the world wide web!
• Key sources of trade-relevant information
• International Organizations, both regional and
global
• Think tanks/policy research centers
• Industry associations (ESF, USCSI)
• Trading partners’ websites
IOs
OECD Trade http://www.oecd.org/topic/0,3373,en_2649_37431_1_1_1_1_37431,00.h
tml
OAS - http://www.oas.org/en/default.asp ;
http://portal.oas.org/Default.aspx?tabid=293&language=en-US
http://www.sice.oas.org/
INTAL - http://www.iadb.org/intal/index.asp?idioma=ENG
IADB – http://www.iadb.org/
http://www.iadb.org/en/topics/trade/trade,1264.html
ADBI - http://www.adbi.org/
World Bank http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/TRADE/0,,noSURL:
Y~contentMDK:21685233~pagePK:210058~piPK:210062~theSitePK:23907
1,00.html
IOs
World Bank
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/TRADE/0,,noSURL:
Y~contentMDK:21685233~pagePK:210058~piPK:210062~theSitePK:23907
1,00.html
ITC - http://www.intracen.org/
UNCTAD
http://www.unctad.org/Templates/Page.asp?intItemID=1529&lang=1
http://www.unctad.org/en/docs/webdiaeia200911_en.pdf
http://www.unctad.org/en/docs/webdiaeia20101_en.pdf
http://www.unctad.org/Templates/Startpage.asp?intItemID=2983
AITIC – www.acici.org
www.wto.org
WTO as a Legislature:
 Proposals for
negotiations
 Papers and non-papers
 Ministerial declarations
 Chairmen’s marks
 Draft texts (with
brackets)
 Agreements (a.k.a.
understandings, codes,
etc.)
 Schedules of
commitments on goods
and services
 Accessions (trade policy
memoranda, working
party reports, etc.)
WTO as a Secretariat:
 Trade Policy Reviews
 Committee reports
(minutes, summaries,
etc.)
 Secretariat reports
(informational)
 Reports by the
Economic Research
and Statistics Division
(analytical)
WTO as a Court:
 Requests for
consultations
 Procedural documents
 Panel reports
 Appellate body reports
 Arbitrators’ reports
WTO as Clearinghouse: WTO as an Institution:
 Notifications
 Administrative and
budgetary matters
More about documents
• Everything since 1995, and some from 1988-1994
(see the Stanford project for historical GATT
documents)
• Three official languages: English, French, and
Spanish
• All documents are in Word, except that pre-June,
1998 documents are in WordPerfect
• HTML versions are usually not very readable,
especially when there are tables or graphic in a
document, and they are limited in size
• It is usually best to download the document
Forms and types of documents
Many types:
• Notes by the Secretariat
• Notifications
• Negotiating proposals
• Dispute-settlement documents
Documents can come in multiple versions:
• Revised (*/Rev._)
• Corrected (*/Corr._)
• Addenda (*/Add._)
Partial list of document codes
Agriculture (G/AG/* or TN/AG*)
Anti-dumping (G/ADP*)
Dispute Settlement (WT/AB* or WT/DS* or
TN/DS*)
Government Procurement (GPA/* or
WT/WGTGP/*)
Import Licensing (G/LIC/*)
Information Technology (G/IT/*)
Intellectual Property (IP/* or TN/IP/*)
Market Access (G/MA/* or TN/MA/*)
Ministerial Meetings (WT/MIN*)
Regional Trade (WT/REG/*)
Safeguards (G/SG/*)
Sanitary and Phytosanitary Measures
(G/SPS*)
Subsidies and Countervailing Measures
(G/SCM/*)
Technical Barriers to Trade (G/TBT/*)
Technical Cooperation (WT/TC/*)
Textiles (G/TMB/*)
Trade and Competition Policy
(WT/WGTCP/*)
Trade and Development (WT/COMTD/* or
WT/LDC/* or WT/LLDC/* or WT/IFSC/*
or TN/CTD/*)
Trade and Environment (WT/CTE/* or
PC/SCTE/* or TN/TE/*)
Trade and Finance (G/TRIMS/* or WT/TF/*
or WT/WGTI/* or WT/WGTDF/*)
Trade in Goods (G/C/*)
Trade in Services (S/* or GATS/* or TN/S/*)
Trade Negotiations (TN/*)
Subscribe to news updates from the WTO
Think tanks
PIIE - http://www.iie.com/
Centre for Global Development - http://www.cgdev.org/
Brookings Institution http://www.brookings.edu/economics.aspx
http://www.brookings.edu/projects/africa-growth.aspx
http://www.brookings.edu/global.aspx
AEI Trade Programme – http://www.aei.org/ra/8
Trade Law Centre for Southern Africa (TRALAC) http://www.tralac.org/cgi-bin/giga.cgi?c=1694
Centre for Trade Policy and Law at Carleton University (CTPL) –
www.ctpl.ca
Think tanks
ODI – http://www.odi.org.uk/
http://www.odi.org.uk/work/themes/details.asp?id=28&title=trade
http://www.odi.org.uk/work/themes/details.asp?id=27&title=tourism
ECIPE - http://www.ecipe.org/
Sussex CARIS - http://www.sussex.ac.uk/Units/caris/
WTI-NCCR-Trade – www.nccr-trade.org; www.wti.org
ICTSD – www.ictsd.org
Institute for Agricultural Trade and Policy – www.iatp.org
ECDPM – www.ecdpm.org (Weekly Compass) and acp-eu-trade.org
newsletter
The International Centre for Trade and Sustainable
Development (www.ICTSD.org)
Bridges: ICTSD’s Weekly News Digest
Bridges also comes in an (approximately)
monthly and more analytical version
The Institute for Agriculture and Trade
Policy’s Trade Observatory (www.IATP.org)
Trading partners
USTR – http://www.ustr.gov/
National Trade Estimate - http://www.ustr.gov/about-us/pressoffice/reports-and-publications/2009/2009-national-tradeestimate-report-foreign-trad
DFAIT (Canada) http://www.international.gc.ca/commerce/index.aspx
EU - http://www.trade.ec.europa.eu/
DG Trade http://ec.europa.eu/trade/creatingopportunities/bilateral-relations/regions/africa-caribbeanpacific/index_en.htm
Other sources
Services coalitions: www.esf.org; www.uscsi.org
DFID - http://www.dfid.gov.uk/Global-Issues/
Inside US Trade - http://insidetrade.com/
Trade1313/tea
Bilaterals.org - www.bilaterals.org
Global Trade Alert – www.Globaltradealert.org
Office of Trade Negotiations (OTN) of Caricom
(formerly Caribbean Regional Negotiating
Machinery) - www.crnm.org
Global Trade Alert