Transcript SPECIAL AND DIFFERENTIAL TREATMENT IN THE DOHA …

UNCTAD
SPECIAL AND DIFFERENTIAL
TREATMENT
in the Doha Work Programme
UNCTAD
Commercial Diplomacy Programme
October 2002
UNCTAD
THE BASIC IDEAS BEHIND THE
CONCEPT OF
SPECIAL AND DIFFERENTIAL
TREATMENT (S&D):
• There are structural imbalances between developing
and developed countries in terms of:
– share of world trade;
– access to financing;
– access to technology;
– infrastructure weaknesses;
– institutional capacity and
human resources.
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THE BASIC IDEAS BEHIND THE
CONCEPT OF
SPECIAL AND DIFFERENTIAL
TREATMENT (S&D)
 The trade liberalisation does not
automatically imply development nor
equitable welfare gains.
 Developing countries do not have the same
capacity as developed countries in taking
advantage of the opportunities created by
trade liberalisation.
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THE S&D CONCEPT IS APPLIED IN
SEVERAL AREAS OF THE
INTERNATIONAL ECONOMIC
RELATIONS:
• Financing for
development
• Development aid
• TRADE
At the
• national
• bilateral
• regional
• multilateral
levels
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SOME BENCHMARKS
IN THE HISTORY OF S&D
IN MULTILATERAL TRADE RULES :
• GATT 1947: MFN for all
members, exc. art.XVIII
which allows for
flexibility and for tariff
protection and QRs in
case of balance of
payments crisis
• GATT PART IV (1964):
the principle of “nonreciprocity” is introduced
• ENABLING CLAUSE
(1979): allows for GSPs, trade
agreements among developing
countries, S&D for LDCs
• TOKYO ROUND (1978):
plurilateral codes as a way to
implement S&D
• URUGUAY ROUND
(1994): the “single
undertaking” does not allow for
opt-in/opt-out rules
• DOHA
MIN.DECL.(2001): paras.
44 on S&D, 42-43 on LDCs, and 35
on small economies (plus the
Decision on Implementation
Issues)
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The evolution of the concept of S&D
Until the Tokyo Round:
The trade agenda focused
on border barriers (mainly
tariffs): S&D was meant to
avoid these barriers through
preferences.
S&D was conceived as a
development tool to
help the exports of
developing countries
During and after the Uruguay
Round:
The trade agenda focused
on « within the border »
barriers (domestic
measures) and traderelated obligations: S&D
was mant to fulfill them.
S&D conceived as an
adjustment tool to
fulfill the new rules 6
WAYS OF IMPLEMENTING THE
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S&D IN THE AREA OF TRADE:
“NEGATIVE”
measures (to
support the
adjustment)
(binding rules,
enforceable)
“POSITIVE”
measures (prodevelopment)
(non-binding rules,
not enforceable)
• Transition periods to comply
with the rules
• Different criteria and /or
thresholds in the implementation
of the rules
• Exceptions to the rules
• Technical assistance and
capacity building
• Greater market access (GSPs)
• “Best endeavour” clauses
• Positive list approach (GATS)
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TWO PARALLEL APPROACHES
TO S&D:
The defense of the
concept per se:
• Implies a strong political
support
• It is linked to an
ideological debate
• It is linked to the issue of
coherence between trade
and financing for
development
The defense of the
concept
topic by topic:
• Implies in-depth
technical inputs
• Implies both legal
and economic
arguments
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Opportunities
and
caveats
of
the
approach
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to S&D topic by topic (sectoral):
• Agriculture:
– Divergences among
developing countries
• Services:
– Make « pro-development »
requests
– Attach conditions to your
offers
• Anti-dumping:
– Many AD cases among
developing countries….
• Subsidies and TRIMS:
– Divergences among
developing countries
• Art. XXIV and Enabling
Clause:
– S&D for South/South
arrangements only ?
• Singapore issues:
– S&D may be envisaged in
any multilateral framework
• TRIPS:
– Difficulties to implement
S&D provisions
• Market access:
– The pending issue of the
erosion of preferences
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– Applied or bound rates ?
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THE WTO SECRETARIAT’S TYPOLOGY
OF THE 155 EXISTING S&D MEASURES:
1. Provisions aimed at increasing the trade
opportunities of developing countries (*)
2. Provisions under which WTO members should
safeguard the interests of developing countries (*)
3. Flexibility of commitments, of action, and use of
policy instruments
4. Transitional time periods
5. Technical assistance (*)
6. Provisions relating to LDCs (*)
(*)= all or several “best endeavour” clauses
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HOW TO ENSURE
HOW TO ENSURE
ENFORCEABLE
ENFORCEABLE
S&DCLAUSES:
RULES:
S&D
The Preambles,
Declarations,
some Decisions
and footnotes
are NOT
mandatory
BY CREATING CLEAR RIGHTS AND
OBLIGATIONS IN THE MANDATORY
PROVISIONS OF THE AGREEMENTS,
SUBJECT TO THE WTO DISPUTE
SETTLEMENT MECHANISM
WTO criterion: the “SHALL” language is
mandatory (the “should” is not)
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HOW TO STRENGTHEN THE S&D
PROVISIONS IN THE CURRENT
NEGOTIATIONS:
Through AMENDMENTS of the existing
provisions (ex.: “should” becomes “shall”)
Through AUTHORITATIVE
INTERPRETATIONS (“Understanding
on the interpretation” of the rules)
Through the negotiation of a horizontal
“FRAMEWORK AGREEMENT” on
S&D (para.44 Doha Min.Decl.)
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THE CATEGORIES OF DEVELOPING
COUNTRIES WERE INTRODUCED IN 1979
Least developed countries (LDCs)
UN Index (49 LDCs): category recognised by the 1979
GATT Enabling Clause
The issue of
Landlocked countries
GRADUATION...
Island countries
Small economies
Para.35 Doha Min.Decl.
Net food importing countries
Marrakech Min.Decl.
Small suppliers
Textiles
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Other problems raised
by the S&D issues:
• Proliferation of trade regimes with different
S&D levels
• The value of the autonomous liberalisation
• Quality and financing of the trade-related
technical assistance
• Assessment of the utilisation instead of the
effectiveness of the S&D:
– We need development benchmarks
– The role of a monitoring mechanism
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The state of play in the current
negotiations
• New deadline of 31 Dec.2002 to agree on
« clear recommendations » to the General
Council
• Only 3 formal meetings scheduled
between October and December 2002
• Some 90 proposals on S&D are on
the table
• No consensus (except on the
monitoring mechanism)
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WHAT IS REALLY IMPORTANT:
• The S&D concept is part of
the « single undertaking »
• Close links between S&D issues and
the implementation issues
• Assess both issues at the 5th WTO
Ministerial Conference in Cancun
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THANK YOU !
...QUESTIONS ?
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