Accessions à l'OMC
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The 2012 WTO accession of Russia: Negotiating experience – challenges, opportunities and post-accession approaches
The working party on the accession of Russia was the biggest and longest in WTO accession history. A big power that decides to join an international organisation even if this is the WTO cannot avoid political burdens. No big country can stay apart from world politics. The WTO accession process is tough demanding and complex with no clear rules. This raises questions about length fairness and lack of procedural clarity. Yet it is risky to stay outside the rules-based multilateral trading system. To navigate the WTO accession process upfront it is critical to define a negotiating strategy and plan the end-game well in advance – a process that requires mobilisation of all negotiating resources concentration and focus. Domestically the challenge for the acceding government is to state a clear rationale for accession demonstrate that there will be real benefits from accession or at a minimum that there will be no negative consequences and define red lines to be defended. Negotiating positions should be aligned with requirements for domestic reform. Strong and consistent political will and leadership with support from the parliamentary majority are necessary to conclude any accession negotiations. WTO accession may in itself play neither a negative nor a positive role for domestic economic developments but by becoming a member a country will obtain benefits in the medium and long term through the creation of better terms for its trade within the WTO itself. In this chapter Russia’s practical experience of its accession negotiation the obstacles encountered its assessment of the benefits of accession including lessons learned during the process are described.
The future of Asia: Unleashing the power of trade and governance
Half a century ago the future of Asia looked quite bleak. Civil and regional conflict ravaged many parts of the region. China was still closed to the world and in the throes of its Cultural Revolution. India and Pakistan were recovering from wars Indonesia and the Philippines were under authoritarian rule and several Central Asian countries were mere shadow states of the former Soviet Union. Since then Asia has surprised the world: Japan and the rest of East Asia have rapidly become industrialised and successive years of high growth have been attained by other Asian countries notably China India and several countries in the Association of Southeast Asian Nations. This growth has been driven in great part by rapidly expanding trade with the liberalisation of China in the late 1970s and of India in the 1990s greater integration among North-east and Southeast Asian countries and the collapse of the Soviet Union.
Trade Multilateralism in the Twenty-First Century
Trade multilateralism in the twenty-first century faces a serious test as weakness in the global economy and fast-paced technological changes create a challenging environment for world trade. This book examines how an updated and robust rules-based multilateral framework anchored in the WTO remains indispensable to maximizing the benefits of global economic integration and to reviving world trade. By examining recent accessions to the WTO it reveals how the growing membership of the WTO has helped to support domestic reforms and to strengthen the rules-based framework of the WTO. It argues that the new realities of the twenty-first century require an upgrade to the architecture of the multilateral trading system. By erecting its ‘upper floors’ on the foundation of existing trade rules the WTO can continue to adapt to a fast-changing environment and to maximize the benefits brought about by its ever-expanding membership.
Accession in Perspective
The multilateral trading system came into being on 1 January 1948 when the General Agreement on Tariffs and Trade (GATT 1947) was signed by its 23 founding members. The GATT’s membership expanded considerably in the following decades as many countries gained their independence and took over the rights and obligations of membership that metropolitan powers had accepted on their behalf and others negotiated their accession to the treaty. All the Members of GATT 1947 decided by the end of the Uruguay Round of trade negotiations (1986–1994) to take on the greatly enlarged rights and obligations of the new organization they had negotiated – the World Trade Organization (WTO) which came into force on 1 January 1995 with 128 original Members. While these accounted for an extremely large percentage of world trade many economies remained outside the multilateral system. Since its inception WTO Members have repeatedly stressed their commitment to making the WTO universal in scope and coverage – an ambition shared by a large number of governments outside the system.
Implementing Trade Facilitation Reform in Africa
Trade facilitation is central to Africa’s competitiveness in the global economy. Costs related to trade facilitation make up a significant proportion of overall trade-related costs which in Africa are higher than in any other developing region. This acts as a barrier for the integration of African countries into global markets as well as greater intra-African integration. Improving trade facilitation is essential for lowering costs for African agricultural producers as well as supporting the development of higher value-added activities in agribusiness manufacturing and services including participation in regional and global value chains. Diagnostic tools used by the World Bank Group such as the Logistics Performance Index as well as country-specific diagnostics highlight the key challenges faced. The evidence also shows that performance varies with some countries making significant progress on reform programs to improve trade facilitation. With other developing regions having generally more advanced trade facilitation regimes the lessons from these regions can be instructive in designing and implementing reforms in Africa which the World Bank Group is actively supporting at the national and regional levels. A priority for the Bank Group is implementing trade facilitation programs that do more to reduce trade-related costs facing the extreme poor given the concentration of extreme poverty in Africa.
WTO accession negotiations: Trends and results in agriculture plurilaterals
Thirty-three members have acceded to the WTO since it was established in 1995. In the majority of these accession negotiations reforms to the agriculture sector have featured as a particularly sensitive issue for acceding governments. Why is this the case? What are the existing members’ expectations of acceding governments in relation to agriculture? And how have acceding governments fared through this process? While agriculture trade accounts for less than 10 per wto_cent of world merchandise trade the agriculture sector particularly for many developing countries can be significant in terms of its contribution to both gross domestic product and employment.
Foreword
Since the establishment of the WTO on 1 January 1995 no less than 23 States and separate customs territories have joined the multilateral trading system through the procedures of Article XII of the Marrakesh Agreement. These represent a range of economies from global players to important emerging and transition economies and least-developed countries. A relatively large number are at various stages of the accession process. A certain limited number have still to take the decision to seek WTO membership.
Trade, Investment and Development
Structural transformation is imperative for Africa’s economies. An unprecedented policy unanimity has emerged amongst African government and business leaders that to achieve sustained growth and development Africa must industrialize and secure a greater share of the benefits of its participation in global value chains. This requires further advances in a programme for ‘development integration’ that simultaneously combines market integration with purposeful industrial development intervention and cooperation to strengthen regional value chains underpinned by efforts to develop and rehabilitate cross-border infrastructure for greater connectivity across Africa.
A Handbook on Accession to the WTO
This guide has been prepared to assist public understanding of the process of accession to the WTO. The WTO Ministerial Conference and the General Council have the exclusive right to adopt interpretations of the Marrakesh Agreement Establishing the WTO and its Multilateral Trade Agreements. This guide is not intended to and does not provide a legal interpretation of WTO provisions.
The WTO and the Changing State of the Global Economy
The world economy is showing signs of recovery after several years of lacklustre performance although major policy uncertainties may easily upset this fragile trend. To jumpstart economies and trade after the financial crisis of 2008–9 governments across the world employed a traditional mix of fiscal monetary and structural policies. These efforts helped to prevent a deeper crisis but fell short of pulling the world out of a period of stagnation in 2012–16. Trade in particular slowed relative to its historical performance and to overall economic growth. Meanwhile political and social pressures have led to inward-looking policies in large countries. Other challenges – from civil and military conflicts to scattered terrorism – have also contributed to this inward turn. Against this background this chapter discusses the need for a new and more flexible global economic architecture. It would require reforms at all levels starting with revamping the structural foundations for growth and trade applying solid ground-level macroeconomic policies in individual countries and rebuilding the upper floors of multilateral cooperation i.e. upgrading it and making it more adaptable and responsive to the requirements of the twenty-first century. In the trade area key pillars to support this structure include innovative mechanisms of trade liberalization in both new and traditional areas increased inclusiveness of trade recognition and financing of adjustment costs effective communication on trade a redefined role and functions for the WTO upgraded multilateral rules and strong leadership. With radical changes needed WTO accessions have already contributed and could contribute even more to each of these pillars.
Transforming Accessions Data into Knowledge
Accessions to the World Trade Organization (WTO) generate large amounts of data accumulated during accession negotiations and subsequent domestic reforms. Owing to differences in the structure of acceding economies accession commitments vary across recently acceded or Article XII members in the number of tariff lines bound the level of bindings and the various accession-specific commitments and obligations. The depth of commitments and extent of post-accession implementation influence the effectiveness of benefits derived by new members from WTO accession. In spite of the generally positive economic performance exhibited by all Article XII members disparities exist in their country-specific economic performance in terms of trade foreign direct investment (FDI) and gross domestic product (GDP) growth. This chapter analyses the impact and depth of accession commitments to assess the economic effects of WTO accession. It explores how the data from accessions acquis can assist policy-makers in implementing structural reforms and integrating their countries into regional and global value chains. An Accession Commitment Index is proposed as a basis for a statistical exploration of the impact of WTO accession on a series of variables related to economic growth. Using an extension of the difference-in-difference methodological approach the chapter finds that WTO accession generally has a positive and significant impact on the acceding economy’s trade and economic performance. The results also show that the impact of WTO membership on the trade/GDP ratio in developing countries is significantly higher than in previous studies.
Are there different rules for least-developed countries in a rule-based system?
In July 2012 the WTO General Council agreed on a set of new and improved guidelines to facilitate and accelerate negotiations on the accession to the WTO of least-developed countries (LDCs). The process of acceding to the WTO is complex time-consuming and resource-intensive for candidate countries and for LDCs which have limited institutional and administrative capacity in particular. The WTO accession process is very much a political process and requires countries to undertake far-reaching domestic reforms in order to be in a position to implement WTO rules from day one of membership as well as to benefit from MFN market access from WTO members and vice versa. The prolonged accession process is designed to enable acceding LDCs (and others) to acquire the knowledge and expertise to negotiate not only the terms and conditions for their membership but also to function as viable members of the rules-based system. This chapter examines the enhanced guidelines and asks whether the WTO needs to improve the procedures for the benefit of LDCs and of the WTO. It examines how the WTO accession process and procedures as well as the scope of the reforms it requires compare to EU considerations in the process of its enlargement and argues that while the enhanced LDC accession guidelines have made an important contribution some additional steps may need to be contemplated in the future. However before a further enhancement is contemplated it must be understood that the accession process and the substance of WTO accession negotiations in all serious institutions are based on a partnership. This is a fundamental lesson from all successfully completed accessions and enlargement processes. The process is neither unilateral nor automatic.
WTO accession and the private sector: The nexus of rules and market opportunities
A country’s bid for WTO membership can promote a feeling of challenge and uncertainty among members of the private sector as the long-established methods of conducting business are susceptible to undergoing considerable change. In order to overcome the potential resistance to this change acceding governments have responded to the concerns of their businesses by adopting strategies to raise awareness of the long-term benefits of reform during the negotiating period. In this chapter we document some of the benefits related to trade and investment for Article XII members that have undertaken awareness raising strategies and necessary reforms during their accession processes. This chapter underlines that accession commitments which are critical to bringing about domestic policy and regulatory reforms need to be implemented in the right spirit to develop business competitiveness in the long run.
Domestic framework for making and enforcing policies
A core objective of accession results is to establish a legal foundation for the conduct and management of trade policy based on the rule of law. Implementation of accession commitments hinges on the existence of an effective domestic framework for making and enforcing policies. Customarily this is described in the third chapter of working party reports. Twenty-eight of the members that acceded pursuant to procedures in Article XII of the Marrakesh Agreement Establishing the World Trade Organization (WTO Agreement) have undertaken a total of fifty-five accession-specific commitments in this regard. The uniquely definable pattern that has emerged from WTO Accession Protocols confirms the uniform applicability of the WTO Agreement throughout and across the entirety of the customs territory of the new member the exclusive authority of central governments to implement and enforce WTO rules the strengthening of due process and the rule of law and the precedence of ratified international treaties over domestic legislation in many instances. These commitments are integral to the WTO Agreement and are enforceable under the WTO Dispute Settlement Understanding. Although normative and standard they confirm the long-standing accession practice that a range of original members have not confirmed and from which several deviate. This chapter studies the specific accession-specific commitments in the domestic framework for making and enforcing policies. It also investigates the relationship between Accession Protocols and domestic legal systems and asks whether original members undertook similar obligations.
WTO Accession Negotiations from a Negotiator’s Perspective
This chapter considers political commercial and legal aspects of accession negotiations and the compromises by all parties involved to make accession to the World Trade Organization (WTO) a reality. Using the negotiations on the accessions of the Russian Federation and Samoa as case studies this chapter analyses how political constraints economic interests and legal commitments affected the course of the negotiations. In the case of the Russian Federation the focus was on certain investment programmes in the automotive industry that were deemed inconsistent with the Agreement on Trade-Related Investment Measures (TRIMs). Agreement on these measures required prolonged negotiations including at ministerial levels to find a satisfactory solution for all parties involved. In the case of Samoa attention was focused on the appropriate level of flexibility to be granted to a least-developed country (LDC) as the expansion of LDC membership is a priority for the Organization in accordance with the Guidelines on LDCs’ accessions. The chapter concludes that the experience of accession negotiations has helped to define domestic reform in acceding members clarify the application of WTO provisions in practice upgrade regional integration frameworks and counter negative political pressures. These lessons can be used in negotiations by other acceding economies and constitute important building blocks of the upper floors of the international trading system.
Export duty commitments: The treaty dialogue and the pattern of commitments
This chapter focuses pursuant to Article XII accession-specific commitments on the evolving disciplines on export duties distinguished from the broader setting of export restrictions. From a rules angle export duties were not subject to disciplines in contrast to import duties that have classically been bound in schedules of concessions and commitments on goods since GATT 1947. Pursuant to Article XI:1 of the General Agreement on Tariffs and Trade (GATT) 1994 (rules for ‘quantitative restrictions’) prohibitions or restrictions on imports and exports such as bans quotas and restrictive licences are generally prohibited except for duties taxes or other charges. In economic operations export duties with price discrimination effects between domestic and foreign producers have resulted in efficiency losses and anti-competitiveness and have undermined economic welfare. In accession negotiations the establishment of disciplines and improvement in economic welfare has framed the treaty dialogue. This dialogue has made evident a range of issues that are systemic and that have involved questions on international economic cooperation revolving around the broader use of export restrictions and their overlap with export duties. This chapter reviews the substance of the treaty dialogue on export duties and identifies the extent and pattern of specific obligations on export duties in the Article XII Accession Protocols deposited thus far. The analysis shows that fifteen Article XII members have accepted accession-specific obligations on the application of export duties. These obligations range across ‘abiding’ by the provisions of the WTO Agreement; ‘binding and/or fixing’ applied export duty rates; and ‘reducing’ ‘eliminating’ or ‘foreclosing’ on the use of such duties. Of precedential value is the modification of the classical 1947 architecture of the GATT Goods Schedule to create a Part V on Export Duties in the context of the WTO accession commitments of Russia in its Goods Schedule. This chapter argues that accession-specific commitments have deepened and extended original WTO rules governing export duties as an instrument of trade policy. The overall systemic effect has been positive namely to constrain reduce eliminate and/or bind hence contributing to clarity and predictability of the rules with pro-competitive effects enhancement of market access opportunities and improvements in economic welfare. The chapter argues that WTO accession-specific obligations for export duties have set the multilateral standard for disciplines in this area. Nevertheless it is worrying that even as the disciplines on export duties are being formulated and strengthened via Article XII members the facts suggest the higher use of such export duties by original members over the period from 2003 to 2009.
Afghanistan’s Accession: Challenged by Conflict
WTO membership has long been an integral part of the overall strategic objectives of Afghanistan. For a post-conflict landlocked and least-developed economy joining the WTO was perceived as an opportunity to achieve economic stability improve regional security and cooperation alleviate poverty and achieve peace. Afghanistan has been on an eleven-year journey to integrate into the multilateral trading system. Its WTO accession process described in this chapter was a learning experience in which Afghanistan’s governmental and academic institutions private sector and civil society all upgraded their capacity using this accession as a catalyst to accelerate structural reforms and strengthen market instruments. The enormous reforms accomplished in this process have allowed Afghanistan to build a more favourable trade and investment regime with effective laws and trade policies based on the WTO agreements. This chapter sheds light on the accession process and the accomplished domestic transformation and identifies ways forward to maximize the benefits of Afghanistan’s WTO membership as a tool for cementing its long-standing commitment to an open economy rule of law good governance and international cooperation.