Accessions à l'OMC
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From Marrakesh to Nairobi: Africa – A Force for the World Trading System: From the Past Twenty Years to the Next Twenty Years
Morocco’s membership of the GATT and WTO has been part of an overall strategy of the Government of the Kingdom of Morocco at the instigation of the late King Hassan II to introduce a package of institutional and socio-economic reforms which sought mainly to modify and diversify the structure of the national economy optimize the allocation of its resources and ensure its integration into the world economy. Being a Member of the Multilateral Trading System is also an expression of the government’s wish to integrate more fully into the world economy by anchoring its reforms in the legal primacy of an international agreement rather than just in domestic legislation as reaffirmed by the Constitution adopted in 2011. In doing so Morocco made opening up its economy a firm and irreversible commitment.
The macroeconomic implications of WTO accession
This chapter proposes a holistic framework by which acceding governments may evaluate the macroeconomic impact of joining the WTO. Because both acceding governments and WTO members are interested in preserving their own systemic stability and the stability of the multilateral trading system evaluation of the Accession Package can be achieved by examining its impact on the domestic and external stability of the acceding country. The chapter concludes that in the long run the impact should be positive and should be driven by better resource allocation as the acceding economy opens to international trade makes deep structural reforms and aligns its institutions and policies with internationally recognised standards. However in the short term implementation of WTO commitments may lead to substantial adjustment costs in the public and private sectors. Overall the design and implementation of WTO accession commitments is a matter of public policy that should aim to promote systemic stability and accelerate domestic reform while addressing transitional costs.
Geographical Indications in the Accessions Landscape
Geographical indications are signs used to identify the origin of goods characterized by a given quality or reputation that is essentially linked to their geographical origin. They preserve traditional knowledge foster the growth of local production and satisfy the needs of increasingly quality-conscious and demanding global consumers. Governments acceding to the World Trade Organization (WTO) have reformed their rules on geographical indications in order to achieve WTO consistency. In doing so they have added value to the multilateral trading system by clarifying the scope of WTO obligations in the field of geographical indications in the following ways: minimum standards of protection; requirements for application to geographical indication protection; the relationship between geographical indications and trademarks; and the scope of substantive provisions with regard to geographical indications. This heightened understanding of the regulation of geographical indications has set new standards in the multilateral trading system. Acceding economies have followed international best practices and sometimes gone a step further by undertaking commitments that exceed those in effect among incumbent WTO members. Rule-making on geographical indications has also helped to prevent disputes on related issues. The lessons learned in the WTO accession process can serve other developing countries and emerging economies to unravel the legal and economic potential of geographical indications.
Competition Policy in WTO Accessions: Filling in the Blanks in the International Trading System
Important synergies and complementarities exist between trade liberalization initiatives and the application of measures to suppress anti-competitive practices or arrangements. Both anti-competitive practices of firms and state-orchestrated arrangements that restrict competition can undermine the gains from trade in myriad ways. Moreover trade liberalization can be a powerful tool for addressing competition policy concerns. Whether there is a need to develop for more explicit linkages between national competition policies and the multilateral trading system remains an unresolved question in debates surrounding the future of the World Trade Organization (WTO). The role of competition policy is however increasingly being addressed by working parties during the accessions of new WTO members. This chapter finds that in a vast majority of accessions the acceding economy is requested to provide information on its domestic competition policy regime. In approximately 80 per cent of all accessions the acceding parties have made notifications on aspects such as the objectives of the regime its enforcement mechanisms by relevant agencies as well as on work under way to put in place an effective competition regime where one is not already extant. This in itself shows a clear recognition and acceptance by WTO members of the importance of competition policy as a tool of economic integration. The complementarity between WTO law and competition policy however is broader than what is reflected in notifications and observations regarding competition legislation per se. Consequently the analysis in this chapter also presents an in-depth study of the wider impact of competition in the WTO accession process taking into account the information provided on aspects of the domestic regime dealing with state monopolies and the treatment of state-owned enterprises (SOEs).
Trade Policy Trends in Africa: Empirical Evidence from Twenty Years of WTO Trade Policy Reviews
Trade liberalization has been a key component of economic development and transformation in the global economy since the middle of the last century and is a leading force in fostering globalization and connectivity in the twenty-first century. Trade reform has been on the agenda of African economies first under the IMF-supported structural adjustment programmes of the 1980s and the early 1990s and subsequently pursued within the multilateral legal and policy framework of the WTO. Following two decades of rapid trade growth in Africa the evidence suggests that significant barriers to trade remain within Africa impeding its integration to regional and global value chains. Considerable scope exists for the use of trade policy to accelerate and deepen sustained economic development and transformation. African economies should embark on the next generation of trade and associated structural reforms more aggressively and ambitiously.
WTO accessions: A market access perspective on growth – the approach of the European Union
A strong multilateral trading system is vital to developing countries’ longterm interests both for its rulebook and for the market access that it guarantees in all key markets. Markets are increasingly located in developing countries. Indeed for the first time in recent history South–South trade outweighs North–South trade even though barriers to South–South trade are much more significant than those to developed countries’ markets. Through their WTO accession acceding economies can reap the benefits of more and better access to most world markets – that of the European Union being among the biggest.
Sanitary and phytosanitary measures: Trends in accession plurilateral negotiations
Since 1947 effective levels of average tariff protection have declined as regulatory protectionism – behind the border – has risen. To a large extent the greater gains from continued trade opening lie in the area of procompetitive domestic regulatory reform codified in duly enacted legislation with associated implementing regulations. In the practice of WTO accession negotiations specific obligations have focused more on regulatory areas of the foreign trade regime. The evidence from thirty-three deposited Accession Protocols shows that there have been ninety-three specific obligations undertaken on sanitary and phytosanitary (SPS) measures. Pursuant to WTO Accession Protocols these are now integral to the Marrakesh Agreement Establishing the World Trade Organization (WTO Agreement). The quantum of citation in WTO jurisprudence in the area of SPS is considerable: since 1995 42 out of 494 WTO dispute settlement cases have cited the WTO Agreement on Sanitary and Phytosanitary Measures in the request for consultations. This chapter examines the evolution of accession results on SPS from 1995 to 2015 and their contributions to the enhancement of the existing WTO legal and policy framework on SPS. Specifically this chapter focuses on the increasing importance of SPS regulatory issues in the foreign trade regimes of WTO members the substance of specific SPS obligations undertaken by Article XII members and their relationship to the WTO Agreement and the core questions that have emerged on the SPS accession treaty dialogue in the context of customs union agreements. As demonstrated in this chapter SPS accession commitments undertaken by thirty-three Article XII WTO members have exercised a significant influence on WTO jurisprudence. To a large extent this has further clarified and strengthened WTO law.
Accession Protocols as building blocks
This book provides multiple perspectives on the process and results from WTO accession negotiations. The perspectives reflected are those of economists lawyers academics chief negotiators of selected original WTO members and Article XII members chairpersons of WTO accession working parties professionals from the multilateral institutions of the WTO World Bank International Monetary Fund and International Trade Centre. Analysis is combined with ‘stories’ enriched by anecdotes. The detailing of the facts of trade policy drudgery is accompanied by explanatory narratives that bring the situations to life. In many ways what will strike the reader is that this is a unique book of high value that has emerged from a system that has yielded higher levels of transparency albeit grudgingly and only when pressed.
A reflection on accessions as the WTO turns twenty
As the WTO celebrates its twentieth year it is appropriate to ask what WTO accessions have contributed to the rules-based multilateral trading system. What demands have been made by the original and incumbent WTO members on acceding governments? How have the acceding governments fared? This chapter finds that WTO accessions have expanded the reach of the trading system not only geographically but conceptually by clarifying disciplines and pointing the way to their further strengthening in future negotiations. Members who have acceded under Article XII of the General Agreement on Tariffs and Trade now account for 20 per wto_cent of total membership of the WTO. Meanwhile with globalisation the increased prevalence complexity and capillarity of international exchange has greatly increased the need for a universal system of trade rules. Crucially accession negotiations have been used by governments as an instrument for wide-ranging domestic reforms including by means of far-reaching new legislation that has effectively changed the business landscape. In several instances the WTO accession negotiating platform has been used for the much broader purpose of facilitating new closer geopolitical relationships. As the negotiating arm of the WTO continuously adapts the success of accession negotiations also points to the opportunities inherent in variable negotiating configurations such as plurilaterals around specific issues. There is also considerable scope for improving the process of accession negotiations to ensure greater transparency streamlining and fairness.
Integration into Global and Regional Value Chains – How Is It Done? The Experience of Lesotho in the Textiles and Apparel Sector
Lesotho is a landlocked least-developed economy and a member of the Southern African Customs Union (SACU) the oldest customs union (CU) in the global economy. Forty per cent of the population lives under the poverty line. The economic base is narrow reliant on the textiles and apparel industry (for 59 per cent of total exports) subsistence agriculture remittances regional customs revenue and a degree of manufacturing. The apparel industry and agriculture constitute the backbone of the economy and the main employer. Faced with Lesotho’s geo-economic circumstances and development challenges the trade and economic response of government has been strategic. Domestic economic policy and structural reforms accompanied by a policy of economic diversification trade openness and integration have been pursued. A trade development plan was carefully designed for active integration into regional and global value chains. These measures have yielded significant welfare gains and economic livelihood dividends. Trade and economic policies are reviewing the next generation of reforms inter alia in the sectors of mining electricity and tourism which face challenges but have potential for growth. This chapter identifies and discusses the specific steps in the trade policy plan for Lesotho’s successful integration into the textile and apparel value chain specifically and more broadly into a global value chain.
WTO rule-making: WTO Accession Protocols and jurisprudence
This chapter examines rule-making in the WTO. It explains the legal provisions governing how rules are made in the WTO and describes WTO rule-making in practice including through the adoption of decisions by the Ministerial Conference and the General Council and by way of dispute settlement. The role of consensus and voting in WTO rulemaking are discussed. The chapter also refers to different types of rules and decisions – such as ministerial declarations authoritative interpretations amendments and waivers – and considers their legal value and effect as well as how different types of rules or decisions have been interpreted or applied. Finally it also includes a look at rule-making in the context of accessions and considers Accession Protocols and working party reports through the lens of WTO dispute settlement.
Accession of Liberia: An Agenda for Transformation
On 14 July 2016 Liberia joined the World Trade Organization (WTO) as its 163rd member. Liberia’s accession negotiations were done in 804 days since the appointment of the Chief Negotiator after stalling for over 6 years and 10 months since Liberia first applied for Accession. This unprecedented efficiency was made possible by a combination of factors. First Liberia’s determination at the highest political level allowed it to conduct accession negotiations with commitment and focus while adhering to a time-bound roadmap. Speed and efficiency of accession-related reforms were essential as the country had endured an almost simultaneous double shock – the Ebola epidemic and a sharp drop in commodity prices. Second WTO members appreciated this determination and were ready to move faster than usual in the negotiating process to help put the country on track with trade-related reforms in particular those aimed at overcoming the twin shocks. Third the WTO wished to include Liberia’s accession among the deliverables for its Tenth Ministerial Conference in Nairobi the first ministerial conference to be held in Africa. The outcome was an accession that is now commonly referred to as the Liberian Model. An accession is concluded based on rational individual choices constructed around a vision for modernizing a country and its economy. This chapter highlights Liberia’s transformation and its challenges and discusses why WTO accession continues to be essential in facilitating Liberia’s economic diversification agenda.
Building Capacity in Africa to Facilitate Integration into Global Value Chains: Contributions from the ITC
While Africa’s share of global value-added trade has increased significantly during the past 20 years connecting African small and medium-sized enterprises (SMEs) to value chains and turning the support for greater intra-African trade into a reality remains challenging. Ensuring that the trade discourse is fully integrated into this development story is critical and countries especially those that have recently acceded have to be supported to recognise and take advantage of the global trading system and their WTO membership. To place a spotlight on trade-led growth for SMEs the International Trade Centre (ITC) launched its SME Competitiveness Outlook in 2015. This flagship publication identified three key determinants of SMEs’ ability to integrate into value chains: their ability to compete connect and change. The ITC’s capacity-building interventions which have a strong focus on African countries are centred on helping SMEs become more competitive and connect to value chains to drive the continent’s sustainable economic development.
Article XII Members - The 2001 WTO accession of China: Negotiating experience – challenges, opportunities and post-accession approaches
China is among the Article XII members which joined the WTO after its establishment in 1995. Membership of the WTO has served as a major stabiliser and strong accelerator for China’s economic take-off although China’s accession commitments were highly demanding. One of the most profound impacts brought about by China’s accession has been that the country fully embraced the rules-based spirit upheld by the WTO. Concepts such as non-discrimination transparency and the rule of law are no longer trade jargon but common words for the general public. To this end China conducted the largest legislative reform in its history to establish a WTO-consistent legal system. China’s accession brought tangible benefits to the Chinese people quadrupling the gross domestic product per capita increasing people’s income and improving people’s livelihood. Household income increased from about US$800 to US$3300 marking an annual growth of 10 per cent. More than 200 million people were successfully lifted out of poverty. As China benefited from integration into the WTO and the rules-based multilateral trading system it has shared these benefits with other WTO members including and in particular least-developed countries.
Investment and Trade Rules: Increasing the Stock of African Foreign Direct Investment Flows
Trade can be a powerful engine for development. But harnessing trade for development in Africa requires investment to foster lasting economic transformation. Investment therefore is key to unlocking the potential of trade-led growth. While flows of foreign direct investment (FDI) into Africa paint a familiar picture of the dominance of extractive industries the reality is more nuanced and promising. The fact that FDI stocks in Africa are geared towards the burgeoning services sector offers immense potential for countries in Africa to access and climb regional and global value chains; however unless interrelated policy challenges are addressed Africa will not be able to optimize the benefits of FDI. Combined with efforts at national and regional levels the WTO should be better used by African countries to properly exploit the trade-investment nexus for the achievement of the United Nations’ Sustainable Development Goals.
African Union Priorities at the WTO
The African Union’s (AU) priorities at the WTO reflect the priorities of the WTO’s African member states that the multilateral trading system should contribute to the economic development of their economies through the elaboration of equitable fair and development-friendly rules. The position of the AU is consistent with the recently adopted United Nations Sustainable Development Goals (SDGs) which also see trade as being critical to achieving the goal of eradicating extreme poverty everywhere. The AU’s priority is therefore to see WTO outcomes that serve to facilitate the structural economic transformation and development of developing and least-developed African countries in line with the vision of the African Union’s Agenda 2063.
Facilitating accessions: The role of the working party chairperson
What is the role of the chairperson of a working party? What instruments can he or she use to manage the complexities of the WTO accession process? Typically WTO accession negotiations are time consuming because of extensive domestic legislative and institutional reforms which need to be aligned with economic development strategies. These reforms focus on the tough questions of eliminating trade barriers improving governance tackling corruption and enforcing the rule of law through WTO-consistent legislation. Formally the function of the chairperson is to preside over working party meetings. In practice the chairperson works as part of a team with the WTO Secretariat led by the Accessions Division in seeking to identify the balance of interests and what the market can bear and hence leading the working party to develop a common view of its purpose and shared responsibility.
Developments in the global economy and trading system effects: The transformation of world trade
The Great Recession of 2008–2009 tested the resilience of economies across the world and placed enormous strain on the frameworks underpinning global cooperation. In no arena was the test more severe than in world trade which against a background of collapsing output and surging unemployment in the industrialised countries fell about one-quarter in the first half of 2009 a rate of decline that exceeded the worst years of the Great Depression of the 1930s. Although the rate of recovery remains sluggish and the pace of trade liberalisation has slowed a relapse into protectionism has been avoided and world trade volumes have surpassed the pre-crisis peak by some 25 per cent. The world trading system seems to have passed this most strenuous of tests. This chapter examines how two great changes in the global economic landscape deepening trade integration (trade as a means of production as well as consumption) and the rising weight of developing countries are changing trade and investment flows and creating new challenges for policy-makers.