WTO and FTAs John Riley NZ High Commission London Our panel Yaryna Ferencevych US Embassy State Matt Molloy DEFRA UK Jennie Wilson US Embassy FAS Tiffany McDonald Aus High Com and John Riley ID: 492630
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Slide1Slide2
International Trade Negotiations:
WTO and FTAs
- John Riley, NZ High Commission, LondonSlide3
Our panel:
Yaryna Ferencevych, US Embassy (State)
Matt Molloy, DEFRA, UK
Jennie Wilson, US Embassy (FAS)
Tiffany McDonald, Aus High Com
and John RileySlide4
Countries tend to act in their national interest.
What is it that drives the decisions of politicians
and officials
?
Things to consider:Slide5
Trade Policy
World Trade Organisation (WTO)
Free Trade Agreements (FTAs)
Bilateral Trade Access (removing regulatory barriers)Slide6
WTO
Secretariat in Geneva
153 Members
Accession process – college fraternityMembership led oganisationSlide7
WTO (continued…)
Decisions made by consensus
Surprisingly very effective (dispute settlement)
Ministerial meetings roughly biannuallySlide8
2 important WTO principles
National Treatment
Most Favoured NationSlide9
History
Began 1947 with the GATT
Negotiating Rounds – GATT, Kennedy, Tokyo, Uruguay
Started with non-agricultural subsidies then tariffsTechnical barriers addressed laterSlide10
How are WTO Rounds Negotiated?
By CONSENSUS!Slide11
Yeah, nah… but there are 153 Members so…
Negotiating Groups
ModalitiesChair’s textsMinisterial MeetingsThe green roomSlide12
How are WTO Rounds negotiated?
The majors crunching it
Splitting the difference (don’t get salami sliced)
Hand of God textLock them in a room!Slide13
Why would they do a deal?
Important factors:
Political capital = industry + votes
Reason for urgency (TPA)Slide14
WTO Doha Round
Commenced 2001
Called Doha Development Agenda
IncompleteSlide15
Some important Doha dates
2001 mandate
July 2004 framework
Hong Kong December 2005Came close to modalities in July 2008Slide16
The Negotiating Groups
Agriculture (subsidies and tariffs)
Non-agricultural market access (tariffs and NTBs)
ServicesSlide17
Other Negotiating Groups
Rules (anti-dumping, fish subsidies)
TRIPS (intellectual property, GIs)
Trade facilitationSlide18
Special and Differential Treatment
Developed countries
Developing countries
Least developed countriesSlide19
Who are the key players?
The G4Slide20
Do they have offensive interests or defensive interests?
If a WTO Member wants to reduce tariffs or subsidies…
If a WTO Member wants to maintain tariffs or subsidies…
the Member has
defensive
interests
the Member has
offensive
interestsSlide21
Agriculture:
Domestic support
(subsidies reductions)
Agriculture:
Market Access
(tariff reductions)
Non-agricultural goods:
Market Access
(tariff reductions)
US
EU
Brazil
India
Is each Member mainly
offensive
or
defensive?
defensive
offensive
offensive
offensive (?!)
defensive
offensive
offensive
offensive
defensive
offensive
defensive
defensive
Mainly wants to reduce measures
Mainly wants to maintain measuresSlide22
Which Members are saying this?
“We can’t offer to reduce non-agricultural tariffs until other countries offer to decrease agricultural subsidies and agricultural tariffs”
- Brazil and IndiaSlide23
Which Member is saying this?
“
We can’t offer to reduce agricultural subsidies until other countries offer to decrease their tariffs”
- USSlide24
Which Member is saying this?
“We can’t offer to reduce agricultural tariffs until other countries offer to reduce agricultural subsidies and non-agricultural tariffs”
- EUSlide25
What about China?Slide26
G20 (developing countries wanting reduced agriculture subsidies by developed countries)
Argentina, Bolivia, Plurinational State of, Brazil, Chile, China, Cuba, Ecuador, Egypt, Guatemala, India, Indonesia, Mexico, Nigeria, Pakistan, Paraguay, Peru, Philippines, South Africa, Tanzania, Thailand, Uruguay, Venezuela, Bolivarian Republic of, ZimbabweSlide27
G33 (developing countries who are defensive on agriculture tariffs)
Antigua and Barbuda, Barbados, Belize, Benin, Bolivia, Plurinational State of, Botswana, Côte d’Ivoire, China, Congo, Cuba, Dominica, Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, India, Indonesia, Jamaica, Kenya, Korea, Republic of, Madagascar, Mauritius, Mongolia, Mozambique, Nicaragua, Nigeria, Pakistan, Panama, Peru, Philippines, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Senegal, Sri Lanka, Suriname, Tanzania, Trinidad and Tobago, Turkey, Uganda, Venezuela, Bolivarian Republic of, Zambia, ZimbabweSlide28
G10 (defensive on ag)
Chinese Taipei, Iceland, Israel, Japan, Korea, Republic of, Liechtenstein, Mauritius, Norway, SwitzerlandSlide29
Cairns group (offensive on ag subsidies and tariffs)
Argentina, Australia, Bolivia, Plurinational State of, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Pakistan, Paraguay, Peru, Philippines, South Africa, Thailand, UruguaySlide30
Cairns group (offensive on ag subsidies and tariffs)
Argentina, Australia, Bolivia, Plurinational State of, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Pakistan, Paraguay, Peru, Philippines, South Africa, Thailand, UruguaySlide31
G100Slide32
What is the situation with Doha now?Slide33
FTA Negotiations
Substantially all trade
Can’t deal with subsidiesSlide34
Some common FTA areas
Goods (tariffs)
Services
InvestmentGovernment procurementIntellectual propertyTBT/SPS (Non-tariff barriers)Labour and EnvironmentSlide35
Bilateral Market Access
e.g. Sanitary and Phytosanitary conditions
Sometimes justified
Sometimes not Slide36
Thank You!