Introduction to WTO and ICT

Maria-Alejandra Alvarez (aristeguieta.alvarez@gmail.com)

World Bank Training on Trade in Information and Communications

ServicesGeneva, Switzerland 23-27 April, 2007

What is the WTO?An International Organisation resulting from negotiations where:

Members negotiate rules and commitmentsMembers monitor the implementation of those rules and commitmentsMembers resolve disputesMembers receive support from a Secretariat to achieve those goals.

The WTO is a Member-driven organisation that provides the framework for the conduct of trade relations by facilitating the implementation, administration and operation of the agreements

What is the WTO? (2)

The corner stone of the multilateral trading system

Trade in GoodsTrade in ServicesProtection of Intellectual Property Rights

Core functions described in the Agreements

Rights and obligationsDispute SettlementTrade Policy ReviewAssistance to Developing countries

The WTO formal structure

Ministerial Conference

GC asDispute Settlement

Body

GC asTrade Policy

Review Body

General Council (GC)

Other Committees,Subcommittees

Working Parties andWorking Groups

Council for TradeIn Goods

Council for Trade-related Aspects

of IntellectualProperty Rights

Council for TradeIn Services

Plurilateral Agreements

CommitteesEg. Market AccessTBT, Licensing,

Valuation

Information TechnologyAgreement

CommitteesFinancial Services

Specific Commitments

Working PartiesRules

Domestic Regulations

Eg.GovernmentProcurement

Doha DevelopmentDoha DevelopmentAgendaAgenda

NegotiationsNegotiationsTNC and its BodiesTNC and its Bodies

Dispute SettlementPanels

Appellate Body

Eg. Trade and Development

Trade and EnvironmentAccession

1AMultilateral

Agreements on Trade in Goods

1BGATS

1CTRIPS

2Understanding on Rules and Procedures

Governing the Settlement of

Disputes

3Trade Policy

Review Mechanism

4Plurilateral

Trade Agreements

WTO Agreement

Marrakesh Agreement Establishing the

World Trade Organization

WTO

10

WTO: Rules and disciplines

WTO Fundamentals

Non-discrimination Principle

Liberalization Principle

Transparency

Exceptions

Special and Differential Treatment (S&D)Under the WTO

7

‘S&D’ Treatment under the WTO

There are 145 ‘S&D’ provisions throughout the WTO Agreements aimed at:

Increasing trade opportunities of developing WTO membersCalling on industrialised WTO members to safeguard the interests of developing onesFlexibility of commitments, of action, and of use of policy instrumentsTransitional time periods for implementing WTO AgreementsTechnical AssistanceMore favourable treatment of least-developed WTO members

8

‘S&D’ Treatment under the WTO

Paragraph 44 of Doha Declaration:

“We reaffirm that provisions for special and differential treatment are an integral part of the WTO Agreements. We note the concerns expressed regarding their operation in addressing specific constraints faced by developing countries, particularlyleast-developed countries. ...We therefore agree that all special and differential treatment provisions shall be reviewed with a view to strengthening them and making them more precise, effective and operational...”

ICT-related instruments

Technical Barriers to Trade

ICT equipment

use of international standards certification

requirements

approval

In line with WTO fundamentals (MFN, NT, Transparency ...)

Technical Barriers to Trade

ICT-related instruments

Technical Barriers to Trade

Information Technology

Information Technology Agreement

Plurilateral initiative among WTO Members and acceding states

To eliminate tariffs on information technology products critical to ICT growth

IT products are those listed in the Attachments to the Declaration

Applied on an MFN basis

Information Technology Products

ComputersTelecommunicationsSemiconductorsSemiconductor manufacturing equipmentSoftwareScientific Instruments

ITA Today

70 Participants (including the Member states of the European Communities)Accounting for approximately 97 % of world trade in information technology products Trade of IT products covered by the ITA has been as high as 16.5% in 2000, dropping slightly to 12% of world trade today.

Major ITA Products

38

35

30

30

16

19

9

12

4

3

3

0 10 20 30 40 50 60 70 80 90 100

1996

2002

Computer Semi-conductor manuf & equipTelecom PartsInstruments Software

ITA Trade by Region

Exports

Imports

Asia North America Western EuropeLatin America Transition Economies Middle EastAfrica

46.2% 26.3% 17.2% 5.3%

61.4% 19.1% 12.1% 4.3%

Average tariffs of Non-ITA Members by ITA product

0

2

4

6

8

10

12

14

16

Software Telecom Computer Instruments Parts Semi-conductor

ICT-related instruments

Technical Barriers to Trade

Information Technology

Government Procurement

Government Procurement and WTO

Fundamentals

Government procurement historically excluded from key principles (MFN, NT, Transparency)

Goods (1947) : GATT Articles III:8 and XVII:2Services (1994) : GATS Article XIII:1

Key elements (c.f. the definitions in Arts. III.8 and XVII of the GATT 1947 and Art. XIII.1 of the GATS):

Procurement by governmental agencies of products or services for governmental purposes (and not with a view to commercial resale or use in the production of goods for commercial sale)

Main Principles

National Treatment / treatment no less favourable than that accorded to any other PartyBasic transparency obligations (publication of laws, regulations, etc)Provisions to ensure fair and transparent proceduresExceptions Special and Differential Treatment

GPA Coverage

GoodsServicesEntitiesThreshold

Central, sub-central and other entities

GPA CoverageGoods and services:Telecom operators:

Nippon Telegraph and Telephone Co (not for procurement of public electrical telecom equipment and of services related to operational safety of telecommunications)Korea Telecom (except purchases of common telecom commodity products and telecom network equipment)Bezek (Israel): limited to US goods and services, but willing to negotiate opening of telecom sector with other GPA members on reciprocal basis

Telecom servicesCanada: electronic/voice mail, on-line information and data base retrieval, electronic data interchange, fax servicesEC, Iceland, Liechtenstein, Norway, Switzerland : telecommunication services, except voice telephony, telex, radiotelephony, paging and satellite servicesHong Kong, China: value-added telecom services, basic telecom services, telecom-related services. But: subject to exclusive licenseJapan: limited to electronic/voice mail, on-line information and data base retrieval, electronic data interchange, fax services, code and protocol conversion, on-line information and/or data processingKorea: limited to on-line information and data base retrieval, electronic data interchange, fax servicesSingapore: limited to electronic/voice mail, on-line information and data base retrieval, electronic data interchange US (only country following negative list approach): enhanced (value-added) telecommunications services

ICT-related instruments

Technical Barriers to Trade

Information Technology

Government ProcurementTrade Related Aspects of Intellectual Property Rights

TRIPS Features

protection and enforcement of copyright and related rights

protection and enforcement of trademarks

new technologies and access to technology

TRIPS & ICT

Trade conducted electronically generally has a relatively high intellectual property content The creation of a secure and predictable legal environment for intellectual property rights can foster the development of e-commerceProtection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and the transfer and dissemination of technology.

ICT-related instruments

Technical Barriers to Trade

Information Technology

Government ProcurementTrade Related Aspects of Intellectual Property Rights

General Agreement on Trade in Services