Market Access for goods and Non-Agricultural Market Access

382 Pages·2013·2.7 MB·English

WTO E-Learning
WTO E-Learning – Copyright © February 2012

Market Access for goods

and Non-Agricultural

Market Access (NAMA)

Negotiations

Preface

In 2008, the WTO initiated a reform of its technical assistance activities to establish more coherent products,
which would better respond to the specific needs of the beneficiaries of trade-related technical assistance. The
current "progressive learning" training strategy, rests on a gradual and incremental learning path, taking
beneficiaries through the basic principles of the WTO to the more complex issues related to WTO Agreements.
This Internet-based training on Market Access issues and NAMA negotiations is a major component of that
strategy. It explains in detail WTO rules on schedules of concessions, tariff negotiations and the modification
of tariff concessions. It also introduces the WTO Agreements on customs valuation, rules of origin, import
licensing procedures, pre-shipment inspection, sanitary and phyto-sanitary measures, technical barriers to
trade, and trade-related investment measures. In addition, it also explains in detail, the objectives and current
state of Non-Agricultural Market Access (NAMA) negotiations. It reflects the need to capture, in a single
capacity-building product, all basic principles, technical concepts, rules, and jurisprudence which are relevant
to understand the norms that govern multilateral trade in goods. It offers a comprehensive curriculum and
very interactive tool which should be of interest to all those keen to deepen their understanding and knowledge
on these topics. The completion of this course opens the door to further training and learning through various
face-to-face capacity- building activities offered by the WTO.
I would like to thank my colleagues of the Market Access Division and of the E-Learning Unit of the WTO
Institute for Training and Technical Cooperation for having contributed to the development of this flagship
product.

Carmen Luz GUARDA
Director
WTO Market Access Division

List of Figures

MODULE 2 THE WTO AND THE MULTILATERAL TRADING SYSTEM ...................................... 13

FIGURE 1: ORGANIZATIONAL STRUCTURE OF THE WTO ................................................ 24
MODULE 3 TARIFFS AND TARIFF NEGOTIATIONS........................................................... 87

FIGURE 1: THE WELFARE EFFECTS OF A TARIFF ON A SMALL IMPORTING COUNTRY ......... 96

FIGURE 2: SIMPLE AVERAGE BOUND TARIFF RATES BY SECTOR – UNITED STATES ......... 133
MODULE 7 SUMMARY AND CONCLUSIONS .................................................................. 331

FIGURE 1: MAIN DOCUMENTS ON NAMA NEGOTIATIONS .............................................. 356

List of Tables

MODULE 1 THE WTO AND THE MULTILATERAL TRADING SYSTEM ...................................... 13

TABLE 1: THE WTO AGREEMENTS ............................................................................. 32
MODULE 3 TARIFFS AND TARIFF NEGOTIATIONS........................................................... 87

TABLE 1: OVERVIEW OF SECTIONS AND CHAPTERS OF THE HARMONIZED SYSTEM ....... 101

TABLE 2: OVERVIEW OF HARMONIZED SYSTEM AMENDMENTS FROM 1996 TO 2007 ...... 105

TABLE 3: OVERVIEW OF NEGOTIATING MODALITIES AND OUTCOMES OF TARIFF

NEGOTIATIONS ........................................................................................ 114

TABLE 4: TRADE-WEIGHTED TARIFF AVERAGE OF NON-AGRICULTURAL PRODUCTS BEFORE

AND AFTER THE URUGUAY ROUND ............................................................. 129

TABLE 5: OVERVIEW OF BINDING TARIFFS BEFORE AND AFTER THE URUGUAY ROUND .. 130

TABLE 6: OVERVIEW OF BINDING TARIFFS AFTER THE URUGUAY ROUND ..................... 132

TABLE 7: CHANGES IN TARIFF ESCALATION ON NON-AGRICULTURAL PRODUCTS
IMPORTED BY DEVELOPED COUNTRIES FROM DEVELOPING ECONOMIES

(BILLIONS OF US DOLLARS AND PERCENTAGES) .......................................... 135
MODULE 4 WTO SCHEDULES OF CONCESSIONS AND RENEGOTIATION OF CONCESSIONS ....... 147

TABLE 1: EXAMPLE OF A SCHEDULE OF CONCESSIONS ON NON-AGRICULTURAL

PRODUCTS .............................................................................................. 155

TABLE 2: ART.XXVIII TRIENNIAL-PERIOD .................................................................. 178
MODULE 6 DOHA NEGOTIATIONS ON NON-AGRICULTURAL MARKET ACCESS (NAMA) ......... 265

TABLE 1: MAIN DOCUMENTS ON NAMA NEGOTIATIONS .............................................. 272
Acronyms

ACP African, Caribbean and Pacific Countries. Group of countries with preferential trading relations
with the European Union (EU) under the former Lomé Treaty now replaced by the Cotonou
Agreement.
ALADI Latin American Integration Association.
AMS The AMS refers to an index that measures the monetary value of the extent of government
support to a sector. The AMS, as defined in the WTO Agreement on Agriculture, includes both
budgetary outlays as well as revenue transfers from consumers to producers as a result of
policies that distort market prices.
APEC Asia-Pacific Economic Cooperation. APEC was established in 1989 to further enhance
economic growth and prosperity for the region and to strengthen the Asia-Pacific community.
APEC has 21 members - Australia; Brunei Darussalam; Canada; Chile; People's Republic of
China; Hong Kong; China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New
Zealand; Papua New Guinea; Peru; The Republic of the Philippines; The Russian
Federation; Singapore; Chinese Taipei; Thailand; United States of America; Viet Nam.
ASEAN Association of Southeast Asian Nations. The seven ASEAN members of the WTO — Brunei,
Indonesia, Malaysia, Myanmar, the Philippines, Singapore and Thailand — often speak in the
WTO as one group on general issues. The other ASEAN members are Laos and Vietnam.
ATC The WTO Agreement on Textiles and Clothing.
BSE Bovine Spongiform Encephalopathy, or "Mad Cow Disease".
CAP Common Agricultural Policy — The EU's comprehensive system of production targets and
marketing mechanisms designed to Manage agricultural trade within the EU and with the rest
of the world.
CBD Convention on Biological Diversity
CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora. Concluded
in 1973 under the auspices of the International Union for the Conservation of Nature and
Natural Resources (IUCN). The Convention entered into force on 1 July 1975. CITES regulates
international trade in wild animals and plants.
CLMV Cambodia, Laos, Myanmar (Burma) and Vietnam.
CNUCED Conférence des Nations Unies sur le Commerce et le Développement.
COMECON Council for Mutual Economic Assistance. Established in January 1949, it was dissolved in
February 1991.
COMESA Common Market for Eastern and Southern Africa. The treaty establishing COMESA was signed
at Kampala on 5 November 1993. It is the successor to the Preferential Trade Area for
Eastern and Southern African States (PTA). Its members are Angola, Burundi, Comoros,
Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Lesotho,
Madagascar, Malawi, Mauritius, Namibia, Rwanda, Seychelles, Sudan, Swaziland, Uganda,
Zambia and Zimbabwe.
CTD The WTO Committee on Trade and Development.
CTE The WTO Committee on Trade and Environment.
CTG Council for Trade in Goods.
DSB The Dispute Settlement Body, i.e. the WTO General Council meeting to settle trade disputes.
DSU Dispute Settlement Understanding. The Uruguay Round Understanding on Rules and
Procedures Governing the Settlement of Disputes.
EAC East African Cooperation. A mechanism within the Common Market for Eastern and Southern
Africa established in 1996. It aims to promote faster trade and investment liberalization. Its
longer-term objectives are the establishment of a customs union and an East African
Federation. The three partners making up the EAC are Kenya, Tanzania and Uganda.
EC European Communities. See EU.
ECDC Economic Cooperation between Developing Countries. A mechanism operating mainly within
the United Nations system of developing countries through cooperative activities.
ECLAC Economic Commission for Latin America and the Caribbean. One of the United Nations
regional economic commissions. It was established in 1948 as the Economic Commission for
Latin America (ECLA) and given its current name in 1985.
ECOSOC United Nations Economic and Social Council. Does not make rules. Its annual high-level
sessions of WTO, IBRD and IMF heads are considered to be helpful in promoting coherence of
economic policy between countries.
ECOWAS Economic Community of West African States. Established in 1975. It consists of the members
of the West African Economic Community (Benin, Burkina Faso, Côte d'Ivoire, Mali,
Mauritania, Niger and Senegal), the members of the Mano River Union (Guinea, Liberia and
Sierra Leone), and Cape Verde, The Gambia, Ghana, Guinea-Bissau, Nigeria and Togo.
EDI Electronic Data Interchange. The transfer of data in a standardized electronic form between
companies through the use of networks such as the internet.
EFTA European Free Trade Association. Entered into force on 3 May 1960 through the Convention
of Stockholm. Founding members were Austria, Denmark, Norway, Portugal, Sweden,
Switzerland and the United Kingdom. Iceland joined in 1970. Finland became a full member
in 1986 after having been an associate member. Denmark and the United Kingdom left on
31 December 1972 to join the European Economic Community. They were followed by
Portugal in 1985 and Austria, Finland and Sweden on 1 January 1995. EFTA now comprises
Iceland, Liechtenstein, Norway and Switzerland.
ESCAP "The Economic and Social Commission for the Asia-Pacific. One of the United Nations regional
economic commissions. It was established in 1947 as the Economic Commission for Asia and
the Far East (ECAFE) and given its present name in 1974.
EU European Union, in the WTO officially called the European Communities. "On 1 December
2009, the Treaty of Lisbon amending the Treaty on European Union and the Treaty
establishing the European Community (done at Lisbon, 13 December 2007) entered into
force. On 29 November 2009, the WTO received a Verbal Note (WT/L/779) from the Council
of the European Union and the Commission of the European Communities stating that, by
virtue of the Treaty of Lisbon, as of 1 December 2009, the European Union replaces and
succeeds the European Community."
FAO Food and Agricultural Organization.
FDI Foreign direct investment.
FTAA Free Trade Area of the Americas. Also called Western Hemisphere Free Trade Agreement.
G15 A group originally of fifteen developing countries acting as the main political organ for the
Non-Aligned Movement. It was established in 1990. Its members now are: Algeria, Argentina,
Brazil, Chile, Colombia, Egypt, India, Indonesia, Iran, Jamaica, Kenya, Malaysia, Mexico,
Nigeria, Peru, Senegal, Sri Lanka, Venezuela and Zimbabwe.
G24 Intergovernmental Group of Twenty-Four on International Monetary Affairs, established in
1971. Members are divided into three regions. Region I (Africa) is represented by Algeria,
Côte d'Ivoire, Democratic Republic of Congo, Egypt, Ethiopia, Gabon, Ghana, Nigeria and
South Africa. Region II (Latin America and the Caribbean) is represented by Argentina, Brazil,
Colombia, Guatemala, Mexico, Peru, Trinidad and Tobago and Venezuela. Region III (Asia and
developing countries of Europe) is represented by India, Iran, Lebanon, Pakistan, Philippines,
Sri Lanka and Syrian Arab Republic.
G7 Group of seven leading industrial countries: Canada, France, Germany, Italy, Japan, United
Kingdom, United States.
G77 Group of developing countries set up in 1964 at the end of the first UNCTAD (originally 77,
but now more than 130 countries).
G8 G7 plus Russia.
GATS General Agreement on Trade in Services.
GATT General Agreement on Tariffs and Trade.
GATT 1947 General Agreement on Tariffs and Trade 1947.
GATT 1994 The new version of the General Agreement, incorporated into the WTO, which governs trade
in goods.
GATT PLUS An expression implying imposition or acceptance of international trade disciplines more
stringent than those prescribed by the GATT or extending the GATT rules to areas beyond
trade in goods. One of the most ambitious examples of "GATT plus" was the proposal by the
Atlantic Council of the United States that there should be a code of trade liberalization within
the GATT framework with stronger rules for the conduct of trade relations between
industrialized countries willing to accept them. According to its proponents, the benefits
would have been extended to all GATT members according to the most-favoured-nation
clause. The code would also have been open to new members willing to accept its obligations,
but only code members would have been able to initiate tariff negotiations with another code
member. The proposal did not find favour with GATT members as a whole.
GRULAC The Group of Latin American and Caribbean Countries which operates informally within the
WTO.
GSP Generalized System of Preferences. First proposed at UNCTAD II in 1968. Entered into force
in 1971. It gives developing countries a margin of preference in the tariff rates their goods
face in the markets of developed countries and in this way increases their competitiveness.
The massive tariff reductions since 1971 as a result of multilateral trade negotiations and
unilateral actions, as well as changes in productivity, have reduced the importance of the GSP
to many developing country exporters, but it remains an important plank in the trade policies
of many developing countries. UNCTAD is the main forum for a discussion of GSP issues.
GSTP Global System of Trade Preferences Among Developing Countries. It entered into force in
1989. Its aim is to promote the development of economic cooperation among developing
countries through the exchange of tariff preferences. Least developed countries do not have
to offer reciprocal concessions. Non-tariff preferences may also be exchanged. Membership of
the GSTP is open to members of the Group of 77. Negotiations are conducted under UNCTAD
auspices. 44 countries participate in the GSTP.
ILO International Labour Organization. Established in 1919 as part of the Treaty of Versailles. It
became a United Nations specialized agency in 1946. Its objectives are to improve working
and living conditions through the adoption of international conventions and recommendations
setting minimum standards for wages, hours of work, conditions of employment, social
security, etc. It is located in Geneva.
IDB OR IADB Inter-American Development Bank. Established in 1959, the Inter-American Development
Bank (IDB) supports economic and social development and regional integration in Latin
America and the Caribbean. It does so mainly through lending to public institutions, but it
also funds some private projects, typically in infrastructure and capital markets development.
Members (46) include: Argentina, Austria, The Bahamas, Barbados, Belgium, Belize, Bolivia,
Brazil, Canada, Chile, Colombia, Costa Rica, Croatia, Denmark, Dominican Republic, Ecuador,
El Salvador, Finland, France, Germany, Guatemala, Guyana, Haiti, Honduras, Israel, Italy,
Jamaica, Japan, Mexico, Netherlands, Nicaragua, Norway, Panama, Paraguay, Peru, Portugal,
Slovenia, Spain, Suriname, Sweden, Switzerland, Trinidad and Tobago, United Kingdom,
United States, Uruguay and Venezuela. http://www.iadb.org
IEA International Energy Agency. An intergovernmental organization established in 1974 after the
first oil shock. It consists of OECD member countries.
ILO International Labour Organization.
IMO International Maritime Organization.
ISO International Organization for Standardization. A world-wide federation of national standards
bodies established in 1947 to promote the development of standardization and related
activities with a view to facilitating the international exchange of goods and services. Each
country is represented by one organization only. The ISO also promotes the development of
cooperation in intellectual, scientific, technological and economic activities. It is associated
with the WTO especially through work concerning the Agreement on Technical Barriers to
Trade which is aimed at ensuring that standards are not used as disguised barriers to trade.
ISO 14000 A series of environmental management standards prepared by the International Organization
for Standardization (ISO) covering six areas: environmental managing systems;
environmental auditing; environmental labelling; environmental performance evaluation;
life cycle assessment; terms and definitions. Most of the standards are intended as guidance
documents on environmental tools and systems to help companies and other organization
integrate environmental considerations into their normal business processes. Only one of the
standards, ISO 14001 on environmental management systems, contains specifications for
certification or registration purposes.
ISO 9000 A series of quality systems standards developed by the International Organization for
Standardization (ISO). These are standards for evaluating the way a firm works. They should
not be confused with product standards. Quality systems standards enable firms to identify
the means of meeting consistently the requirements of its customers.
IPC International Patent Classification.