The WTO Multilateral Trade Agreements

544 Pages·2014·4.96 MB·English

WTO E-Learning
WTO E-Learning – Copyright © February 2014

The WTO

Multilateral Trade

Agreements

Abstract

The WTO is often seen as a model international organization and a cornerstone of international economic
regulation. It provides its Members with a common set of multilateral trade rules which become more valuable
as globalization creates commercial interdependence, which is a factor for growth, development and poverty
reduction. The value of the system has been confirmed by its growing number of Members, which has risen
1
from 23 at the outset to 153 Members today.
The global trading system is undergoing a period of transition. Shifting economic circumstances, major
advances in technology and the emergence of new players on the global scene all underscore that we are at
the corner of big changes. Within this context, governments are more aware than ever of the need to have a
contingent of officials who understand the WTO system and are experts in working with the WTO Agreements.
Their aim is to have officials who contribute to their country’s ability to fully participate in the multilateral trade
negotiations and to use the WTO system to further social and economic development.
Upon these objectives, MTA is targeted to governmental officials working on WTO-related issues who would like
to deepen their understanding of the WTO system, including the economic and legal rationale behind its main
disciplines and the relationship between the different WTO Agreements. The WTO Multilateral Trade
Agreements course will provide them with a good understanding of the WTO, including its main rules - both
obligations and exceptions – and its surveillance mechanisms. The Course will also look at cross-cutting issues
such as the relationship between trade and environment and the interplay between regional trade agreements
and the WTO. The special provisions aimed at compensating developing and least-developed country Members
for disadvantages experienced will be addressed horizontally through all the Course.

1
As of September 2008. As of that date, 29 countries were in the process of acceding, including 12
least-developed countries.

List of Figures

MODULE 1 INTRODUCTION TO THE WORLD TRADE ORGANIZATION (WTO) ............................................ 11
FIGURE 1 ORGANIZATIONAL STRUCTURE OF THE WTO ................................................ 25
FIGURE 2 ACCESSION NEGOTIATIONS ....................................................................... 43

MODULE 3 TRADE IN GOODS: RULES ON MARKET ACCESS: TARIFF AND NON-TARIFF BARRIERS
(NTBS) ..................................................................................................................... 95
FIGURE 1 STRUCTURE OF A MEMBER'S WTO SCHEDULE OF CONCESSIONS ................... 110
FIGURE 2 THE WELFARE EFFECTS OF A QUOTA ON IMPORTING COUNTRIES .................. 119

MODULE 5 TRADE REMEDIES ....................................................................................................... 205
FIGURE 1 CONDITIONS FOR THE APPLICATION OF ANTI-DUMPING MEASURES .............. 210
FIGURE 2 THE SCM AGREEMENT: TWO TRACKS ......................................................... 224

MODULE 9 WTO DEVELOPMENT DIMENSION: DOHA DEVELOPMENT AGENDA AID FOR TRADE, THE
ENHANCED INTEGRATED FRAMWORK (EIF) AND TECHNICAL ASSISTANCE (TA) AND
TRAINING (OR TRTA) ................................................................................................ 371
FIGURE 1 AID FOR TRADE ....................................................................................... 393

MODULE 10 SURVEILLANCE IN THE WTO: DISPUTE SETTLEMENT SYSTEM & TRADE POLICY REVIEW
MECHANISM .............................................................................................................. 403
FIGURE 1 TWO WAYS OF RESOLVING DISPUTES UNDER THE DSU ................................ 410
FIGURE 2 ADJUDICATING BODIES ............................................................................ 412
FIGURE 3 FLOW CHART OF THE DISPUTE SETTLEMENT PROCESS ................................. 420
FIGURE 4 CONSULTATIONS ..................................................................................... 421
FIGURE 5 PANEL STAGE .......................................................................................... 422
FIGURE 6 APPELLATE REVIEW .................................................................................. 425

MODULE 12 SUMMARY AND CONCLUSIONS....................................................................................... 473
FIGURE 1 ORGANIZATIONAL STRUCTURE OF THE WTO S ............................................ 476
FIGURE 2 SUBJECTS OF THE MFN AND NATIONAL TREATMENT PRINCIPLES ................... 479
FIGURE 3 ANALYSIS OF LIKENESS UNDER ARTICLE III OF THE GATT 1994 .................... 482
FIGURE 4 MAIN STAGES OF THE WTO DISPUTE SETTLEMENT PROCESS ........................ 502
FIGURE 5 DEVELOPING COUNTRY AND LDC MEMBERS IN THE WTO .............................. 504

List of Tables

MODULE 1 INTRODUCTION TO THE WORLD TRADE ORGANIZATION (WTO) ............................................ 11
TABLE 1 ROUNDS OF TRADE NEGOTIATIONS UNDER THE AUSPICES OF THE GATT ........ 18
TABLE 2 THE BASIC STRUCTURE OF THE WTO AGREEMENTS ...................................... 47

MODULE 2 TRADE IN GOODS - NON-DISCRIMINATION PRINCIPLE: MOST FAVOURED NATION (MFN)
AND NATIONAL TREATMENT IN THE GENERAL AGREEMENT ON TARIFFS AND TRADE
(GATT) 1994 ............................................................................................................ 57
TABLE 1 CANADA – CERTAIN MEASURES AFFECTING THE AUTOMOTIVE INDUSTRY ....... 70
TABLE 2 SUMMARY OF THE KEY FINDINGS OF THE PANEL/APPELLATE BODYS ............... 71
TABLE 3 JAPAN – TAXES ON ALCOHOLIC BEVERAGES ................................................ 86
TABLE 4 EUROPEAN COMMUNITIES – MEASURES AFFECTING ASBESTOS AND
ASBESTOS-CONTAINING PRODUCTS .......................................................... 87
TABLE 5 SUMMARY OF THE KEY DECISIONS OF THE APPELLATE BODY ......................... 89

MODULE 3 TRADE IN GOODS: RULES ON MARKET ACCESS: TARIFF AND NON-TARIFF BARRIERS
(NTBS) ..................................................................................................................... 95
TABLE 1 THE URUGUAY ROUND INCREASED NUMBER OF BINDINGS PERCENTAGES
OF TARIFFS BOUND BEFORE AND AFTER THE 1986-94 TALKS ...................... 105
TABLE 2 NEGOTIATION HISTORY: INDUSTRIAL PRODUCTS ........................................ 106
TABLE 3 WHAT IF THERE IS NO AGREEMENT? .......................................................... 114
TABLE 4 EC - REGIME FOR THE IMPORTATION, SALE AND DISTRIBUTION OF
BANANAS ............................................................................................... 125
TABLE 5 SUMMARY OF THE KEY FINDINGS OF THE PANEL/APPELLATE BODY ................ 126

MODULE 4 OVERVIEW OF WORLD TRADE ORGANIZATION (WTO) AGREEMENTS ON TRADE IN GOODS
(ANNEX 1A) ............................................................................................................. 139
TABLE 1 REDUCTION COMMITMENTS ON AGRICULTURAL PRODUCTS REACHED
DURING THE URUGUAY ROUND NEGOTIATION ............................................ 157
TABLE 2 NOTIFICATION OF SPS MEASURES & TBT MEASURES ................................... 176

MODULE 5 TRADE REMEDIES ....................................................................................................... 205
TABLE 1 MONITORING BODIES AND NOTIFICATION REQUIREMENTS .......................... 241

MODULE 6 GENERAL AGREEMENT ON TRADE IN SERVICES (GATS): ANNEX 1B OF THE MARRAKESH
AGREEMENT ESTABLISHING THE WTO ............................................................................ 253
TABLE 1 EXAMPLE: FINAL LIST OF ARTICLE II MFN EXEMPTIONS................................ 264
TABLE 2 AN OVERVIEW OF A SCHEDULE .................................................................. 269
TABLE 3 SCHEDULE OF SPECIFIC COMMITMENT ....................................................... 286
MODULE 8 EXCEPTIONS TO WTO RULES: GENERAL EXCEPTIONS, SECURITY EXCEPTIONS, REGIONAL
TRADE AGREEMENTS (RTAS), BALANCE-OF-PAYMENTS (BOPS) & WAIVERS ........................ 329
TABLE 1 US – GASOLINE (US – STANDARDS FOR REFORMULATED AND CONVENTIONAL
GASOLINE ............................................................................................... 345
TABLE 2 SUMMARY OF THE KEY FINDINGS OF THE PANEL AND THE APPELLATE BODY .. 347

MODULE 11 CROSS-CUTTING ISSUES ............................................................................................. 447
TABLE 1 COVERAGE OF THE GOVERNMENT PROCUREMENT AGREEMENT AND ITS
STRUCTURE ............................................................................................. 460

MODULE 12 SUMMARY AND CONCLUSIONS ....................................................................................... 473
TABLE 1 THE WTO AGREEMENTS ............................................................................ 477
TABLE 2 AN OVERVIEW OF A WTO MEMBER'S SCHEDULE .......................................... 490
TABLE 3 MAIN ELEMENTS OF PROTECTION OF THE TRIPS AGREEMENT ....................... 493
Acronyms

ACP African, Caribbean and Pacific countries
AMS Aggregate Measurement of Support
ATC Agreement on Textiles and Clothing
BFA Banana Framework Agreement
BOP Committee on Balance-of-Payment Restrictions
BOPS Balance-of-Payments
CBD Convention on Biological Diversity
CODEX Codex Alimentarius Commission
CRTA Committee on Regional Trade Agreements
CTD Committee on Trade and Development
CTE Committee on Trade and Environment
CTG Council for Trade in Goods
CTS Council for Trade in Services
DDA Doha Development Agenda
DF Donor Facilitator
DSB Dispute Settlement Body
DSU Dispute Settlement Understanding
EC European Communities
EEC European Economic Community
EIA Economic Integration Agreement
EIF Enhanced Integrated Framework
EIFTF EIF's Trust Fund
EPA Environmental Protection Agency
ESA Endangered Species Act
EU European Union
FDI Foreign Direct Investment
FPS Focal Points
FTA Free Trade Agreement
GATS General Agreement on Trade in Services
GATT General Agreement on Tariffs and Trade
GDP Gross Domestic Product
GI Geographical Indication
GPA Agreement on Government Procurement
GSP Generalized System of Preferences
HS Harmonized System
IF Integrated Framework
IMF International Monetary Fund
INRS Initial Negotiating Rights
IPIC Intellectual Property in Respect of Integrated Circuits
IPPC International Plant Protection Convention
IPRS Intellectual Property Rights
ITA Agreement on Information Technology
ITC International Trade Centre
ITO International Trade Organization
ITTC Institute for Training and Technical Cooperation
LDCS Least-Developed Countries
MEAS Multilateral Environmental Agreements
MFA Multifibre Arrangement
MFN Most Favoured Nation
MTS Multilateral Trading System
NAFTA North American Free Trade Agreement
NAMA Non-Agricultural Market Access
NDPS National Development Plans
NFIDCS Net Food-Importing Developing Countries
NGMA Negotiating Group on Market Access
NGOS Non-Governmental Organizations
NIAS National Implementation Arrangements
NIUS National Implementing Units
NSC National Steering Committee
NTBS Non-Tariff Barriers
ODCS Other duties and charges
OECD Organisation for Economic Cooperation and Development
OIE International Office of Epizootics
PPMS Processes and Production Methods
PRSP Poverty Reduction Strategy Paper
PSI Agreement on Preshipment Inspection
QRS Quantitative Restrictions
RTAS Regional Trade Agreements