O Sistema Multilateral de Comércio e a Organização Mundial do Comércio
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Transcript of O Sistema Multilateral de Comércio e a Organização Mundial do Comércio
O Sistema Multilateral de Comércio e a OrganizaçãoMundial do Comércio
São Paulo, 10 de janeiro 2010
Ricardo Camargo Mendes
Introduction
Economic theory – free trade (comparative advantage)
In practice – state intervention (protectionism):Source of income (important for small countries)Mercantilist reasons (surplus)Agriculture and industrial development Influence of pressure groups – lobbies
Trade agreements – trade-offs
Introduction
End of WWII Motivation to create a system different from the
end of WWI Need to establish mechanisms to avoid
devaluation of productivity and trade barriers Support from the US to create an International
Trade Organization the GATT (General Agreement on Trade and Tariff)
Stable economy with market access, non-discrimination (suppliers and investors) avoid new wars
Introduction
History GATT – results from negotiations to create an
International Trade Organization (Bretton Woods) Bretton Woods Institutions – World Bank (BIRD) and
International Monetary Fund (IMF) Havana Chart – not ratified by the US Congress GATT 1947 – negotiated among 23 countries (12
developed and 11 developing – Brazil was one of them)
Meant to be temporary (no institutional structure) Expansion of the number of countries through the
years (Rounds) System well “lubricated” when the WTO was
created (1994)
Basic Principles and Functioning
Functions of the multilateral trading system
1. Negotiation forum Bargain and negotiation – main instruments to
reduce trade barriers and establish rules of behavior (market of concessions)
Condition liberalization to more market access in foreign markets – more politically viable
Problem of political economy – losers of free trade are more organized than the beneficiaries
Basic Principles and Functioning
Functions of the multilateral trading system
1. Negotiation forum (cont.)ResultsComplex net of interests – losers and
beneficiaries confronted (lobby x lobby)Reciprocal liberalization – end of prisoner's
dilemma
Basic Principles and Functioning
Functions of the multilateral trading system
2. Code of conductWTO – rules for the countries’ trade
policiesRestricts the freedom of countries to adopt
protectionist policiesMore difficult for protectionist lobbies to
act with countries
Basic Principles and Functioning
Five principles (before and after the creation of the WTO)
1. Non-discrimination Most Favorite Nation National Treatment
2. Reciprocity Important negotiating instrument (Brazil’s agriculture offer
has to match its demands in the area)
3. Enforcement of commitments Bound tariffs cannot be nullified by other forms of
protectionism (non-tariff barriers)
Basic Principles and Functioning
Five principles (before and after the creation of the WTO)
4. Transparency Access to information about the trade regimes Countries obliged to publish information Trade policy reviews
5. Security clauses Governments can restrict free trade in some cases:
a) Non-trade objectives (public health, national security, protection of sectors highly damaged by imports) – CFIUS (growing restrictions to FDI in critical sectors for national security)b) Subsidies and dumpingc) Balance of payments problems
Basic Principles and Functioning
SimilaritiesBasic principles still the
same: Consensus Member driven
Changes More member
countries (148 in 2005)
Single undertaking More transparency Negative consensus
for the Dispute Settlement Unit
Differences and similarities between GATT (1947) and the WTO
Basic Principles and Functioning
WTO Institutional Framework – 4 Annexes
1. GATT 1994, GATS, TRIPS2. Dispute Settlement Unit (DSU)3. Trade Policy Review Mechanism (TPRM)4. Plurilateral Agreements
– Agreement on Government Procurement– Agreement on Trade in Civil Aviation (aircrafts and
parts)
Basic Principles and Functioning
Political Formulation of rules and
commitments Negotiations (trade-offs) Rounds
Legal Enforcement of rules and
commitments previously agreed
Rules (International Economic Law)
Dispute Settlement Unit
Two Aspects of the WTO
Basic Principles and Functioning
Dispute Settlement Unit (DSU)
DSU can be initiated whenever a member country feels that: There is a violation of rules or commitments by another
member country Another member country is enforcing measures that
nullify the commitments bound in the WTO Other types of complaints against unfair trade practices
Four phases: consultations, panels, appeal and enforcement
Brazil: important user of DSU (technical qualification)
Topics of Negotiation
Non-agriculture manufactures (NAMA) – trade facilitation
Agriculture Services Intellectual Property Antidumping and Safeguards Investments Government Procurement Competition Policy Environment and labor standards Subsidies and countervailing measures Regional Trade Agreements
Topics of Negotiation - NAMA
International Trade of Goods by Region (2008)
Sourc
e:
WTO
– W
orl
d T
rad
e R
eport
2009
Topics of Negotiation - NAMA
International Trade of Goods by Region (2008)
Sourc
e:
WTO
– W
orl
d T
rad
e R
eport
2009
Topics of Negotiation - NAMA
Tariffs– Tax charged when a merchandise crosses a
national border– Different types:
1. Ad valorem – percentage of the value of the merchandise
2. Specific – amount of money per unit (ex. US$ 1.5 per liter of wine)
3. Combination of both– GATT does not establish which one should be
adopted (advantages and disadvantages)
Topics of Negotiation - NAMA
Tariffs In theory the only types of protectionism
allowed Reduced after several rounds Kennedy Round (1964-1967) – first time
that a general reduction for industrial goods was attempted through the adoption of a formula
Most Favorite Nation Principle (except in cases of regional integration)
Countries cannot raise bound tariffs
Topics of Negotiation - NAMA
Difference between applied and bound tariffs
Especially in developing countriesTwo reasons:
1. Bargain token2. Possibility of increasing applied tariffs
(protection against exchange rate variations)
Topics of Negotiation - NAMA
Profile of Tariffs
Source: WTO – World Tariff Profiles 2008
Topics of Negotiation - NAMA
Profile of Tariffs
Source: WTO – World Tariff Profiles 2008
Topics of Negotiation - NAMA
Profile of Tariffs (cont.)
Source: WTO – World Tariffs Profile 2008
Topics of Negotiation - NAMA
Profile of Tariffs (cont.)
Source: WTO – World Tariffs Profile 2008
Topics of Negotiation - NAMA
Profile of Tariffs (cont.)
Source: WTO – World Tariffs Profile 2008
Topics of Negotiation - NAMA
Profile of Tariffs (cont.)
Source: WTO – World Tariffs Profile 2008
Topics of Negotiation - NAMA
Profile of Tariffs (cont.)
Source: WTO – World Tariffs Profile 2008
Topics of Negotiation - NAMA
Profile of Tariffs (cont.)
Source: WTO – World Tariffs Profile 2008
Topics of Negotiation - NAMA
Profile of Tariffs (cont.)
Source: WTO – World Tariffs Profile 2008
Topics of Negotiation - NAMA
Profile of Tariffs (cont.)
Source: WTO – World Tariffs Profile 2008
Topics of Negotiation - NAMA
Profile of Tariffs (cont.)
Source: WTO – World Tariffs Profile 2008
Topics of Negotiation - NAMA
Profile of Tariffs (cont.)
Source: WTO – World Tariffs Profile 2008
Topics of Negotiation - NAMA
Profile of Tariffs (cont.)
Source: WTO – World Tariffs Profile 2008
Topics of Negotiation - NAMA
Profile of Tariffs (cont.)
Source: WTO – World Tariffs Profile 2008
Topics of Negotiation - NAMA
How to reduce tariffs? Application of a non-linear formula and applied to
each position Linear – reduce all tariffs in an equivalent
manner (Kennedy Round)- Significant reduction of high tariffs, but does nit
ensure reduction or elimination of tariff peaks and tariff escalation
Non-linear – reduce proportionally highest tariffs than lower ones
Harmonization between tariffs of a single country, and among countries (as long as a similar coefficient is used for the countries involved)
Topics of Negotiation - NAMA
Non-linear Formula
Country 1 Tariff-base New Tariff Reduction
Tariff 1 2.0% 1.7% 17%
Tariff 2 3.0% 2.3% 23%
Tariff 3 10.0% 5.0% 50%
Tariff Average 5.0% 3.0% 40%
Country 2 Tariff-base New Tariff Reduction
Tariff 1 10.0% 5.0% 50%
Tariff 2 15.0% 6.0% 60%
Tariff 3 50.0% 8.3% 83%
Average Tariff 25.0% 6.0% 74%
““Harmonizing” effect of the non-linear formulaHarmonizing” effect of the non-linear formula
Sou
rce
: T
hors
tens
en,
V.
e Ja
nk,
M.
(200
5)
Topics of Negotiation - NAMA
Issues discussed in the Market Access Group
Still on the agenda for the revised Doha Round
Additional element to the trade-offs
NAMA
ServicesAgriculture
Market Acess
Trade Facilitation
Topics of Negotiation - Agriculture
Source: OMC – World Trade Report 2004
Historical backgroundGATT (1947) – several exceptions left
agriculture on side of multilateral rulesUruguay Round – beginning of discussions
about effective inclusion of more strict rules for agriculture
January 1995 – Agriculture Agreement entered into force
8 years to be concluded!Peace Clause
Until end of 2003
Topics of Negotiation - Agriculture
The Agriculture Agreement: Main Aspects
Definition of what is an “agriculture product” – chapters 1 to 24 of the Harmonized System (excluding fishery)
Consolidation and later reduction of export subsidies and domestic support to the producers
Tariffication Binding and average reduction of tariffs Minimum access to highly protected products
(tariff quotas)
Topics of Negotiation - Agriculture
Main issues affecting multilateral trade of agriculture products
Tariff and non-tariff barriersDomestic subsidies (domestic support)Export subsidies and credits
Geographic indicators
Three pilars of agriculture negotiations
Topics of Negotiation - Agriculture
Brazil USA EC-15 China India
Average 10.2% 12.3% 29.3% 15.3% 36.9%
Highest tariff 55.0% 350.0% 277.2% 71.0% 182.0%
Lowest tariff 0.0% 0.0% 0.0% 0.0% 0.0%
Positions ≥100% (pp)
- 31 (1.7%)
152 (7.3%)
- 54 (7.8%)
Positions ≥30% (pp)
4 167 633 130 108
Total positions 959 1,829 2,091 1,044 690
Market Access: Agriculture Tariff in Sellected Markets
Source: Ícone
Topics of Negotiation - Agriculture
Domestic support: classified in three “boxes”, according to distortion potential
Yellow – most distortion (minimum pricing policies, subsidized credits, fiscal exemptions, complementary payments, etc.)
Blue – direct payments and distortion programs conditioned to mechanisms for limiting production
Green – minimum distortion programs (infra-structure, research, sanitary and phitossanitary services, agriculture reform, direct payments not linked to production, among others)
Source: Thorstensen, V. e Jank, M. (2005)
Topics of Negotiation - Agriculture
Export subsidies
All types of governmental support directly linked to exports
Commitments for reduction EU – Responsible for nearly the totality of export
subsidies
Topics of Negotiation - Agriculture
Main coalitions in agriculture negotiations
1. Cairns Group
Members – Argentina, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Philippines, Guatemala, Indonesia, Malaysia, New Zealand, Paraguay, South Africa, Thailand and Uruguay
Goal – Real and effective liberalization of agriculture in world trade. Defend the elimination of protections and subsidies given to the sector
Topics of Negotiation - Agriculture
Main coalitions in agriculture negotiations2. G-20 Members –Argentina, Australia, Bolivia, Brazil,
Chile, China, Cuba, Egypt, Philippines, Guatemala, India, Indonesia, Mexico, Nigeria, Pakistan, Paraguay, South Africa, Thailand, Tanzania, Venezuela and Zimbabwe
Goal – Liberalization of agriculture trade in the developed countries, with the reduction of subsidies and creation of rules that increase market access to products from developing countries. Reluctance to accept real increase of market access in developing countries.
Topics of Negotiation - Agriculture
Main coalitions in agriculture negotiations 3. The USA Goal – Creation of rules for liberalization on
trade in agriculture goods. However, contradiction as it maintains protectionist policies (tariff peaks and quotas, farm bill, etc.)
4. Europe-Korea-Japan Goal – Agriculture a political sensitive sector,
protected by tariff peaks and selective quotas, as well as non tariff barriers
Topics of Negotiation - Agriculture
Main coalitions in agriculture negotiations
5. Demandeurs of preferential treatment Members – Least developed countries, especially from
Africa and the Pacific Goal – Rely on preferential treatment for trade (GSP) for
their main exported commodities, therefore aligning with developed countries
6. Large developing countries Members – China, India, Pakistan, Bangladesh, etc. Goal – Refuse liberalization of market access through high
tariffs, quotas, sanitary barriers, among other measures
Topics of Negotiation - IP
TRIPS Agreement Intellectual property became a multilateral
trade topic after the Uruguay Round Agreement imposes to governments several
obligations in the domestic legislation Tough negotiations during the Uruguay
Round: strong opposition from India, Brazil, Egypt, Argentina and Yugoslavia
Agreement covers copy rights, design of integrated circuits, geographic indication, trademark, industrial design and patents
Topics of Negotiation - IP
Sensitive issues TRIPS + Agreement Ambiguous interpretation of the
agreement Compulsory licensing (patent breach in
cases of epidemic) Harmonization of TRIPS with other
agreements and conventions on IP (WIPO and CBD) – access to biogenetic resources and traditional knowledge
Brazil: one of the main players in the negotiations
Topics of Negotiation - Investments
Topic covered by three areas of the WTO
Work group: created in 1996 to analyze the relation between trade and investment
TRIMS Agreement: part of the NAMA Agreement, prohibits measures that condition FDI to trade performance
GATS (Mode 3)
Topics of Negotiation - Services
The General Agreement on Trade in Services (GATS) Entered into force in Jan 1995 with the creation of the
WTO All member countries are part of the agreement Demand of developed countries (Agriculture x New
Topics) Developing countries afraid of reduction of sovereignty
of countries (policies and regulation restrictions) Barriers to trade in services are not tariffs, but
legislation Developing countries started to be interested in the
agreement at the beginning of the decade (outsourcing)
Topics of Negotiation - Services
Basic principles All services are covered by GATS (except
public services) MFN principle applied to all services (temporary
exceptions possible) National treatment when commitment bound Regulations have to be objectives and
reasonable Commitments of countries: negotiated and
bound Progressive liberalization: negotiations
55%
72%
38%
56%
57%
61%
Leading Exporters and Importers in World Trade inCommercial Services – 2008 (USD bi e %)
Source: WTO – World Trade Report 2009
55%
72%
38%
56%
57%
61%
Leading Exporters and Importers in World Trade inCommercial Services – 2008 (USD bi e %)
Source: WTO – World Trade Report 2009
AM TN AM TN AM TN AM TN AM TN
Modo 1
Unbound except that a foreign service supplier may cede its name to Brazilian professionals
UnboundSem
posiçãoSem
posiçãoUnbound Unbound Unbound Unbound Unbound Unbound
Modo 2 Unbound UnboundSem
posiçãoSem
posiçãoUnbound Unbound Unbound Unbound Unbound Unbound
Modo 3
Participation of non-residents in juridical
persons controlled by Brazilian nationals is
not allowed. A foreign service supplier shall
not use its foreign name, but may cede it
to Brazilian professionals who will
constitute and exercise full participation in a new juridical person
within Brazil.
Special registration
requirements for accountants who
wish to audit such companies
as financial institutions and
savings and loans
associations. Brazilian
accounting and auditing
standards must be followed.
Sem posição
Sem posição
None None None None
Companies must be
registered with the Regional
Council of Administrators
None
Modo 4Unbound except
as indicated in the horizontal section
Unbound except as
indicated in the horizontal
section
Sem posição
Sem posição
Unbound except as indicated
in the horizontal
section
Unbound except as indicated
in the horizontal
section
Unbound except as indicated
in the horizontal
section
Unbound except as indicated
in the horizontal
section
Unbound except as
indicated in the
horizontal section
Unbound except as indicated
in the horizontal
section
Taxation ServicesAccounting, auditing and
bookeeping servicesServices related to
management consultingManagement
consulting services
Market research and public opinion polling
service
GATS – More transparency and predictibility
Rest
rict
ions
for en
try
Trea
tmen
t as
com
pare
d
to
dom
estic co
mpa
nies
Topics of Negotiation - Services
Comparison between bound commitments and Doha Round Offers – distribution of the types of position related to the category of IT and BPO services - Brazil
IT/BPO - Mode 1 – Market Access
IT/BPO -Mode 3 – Market Access IT/BPO - Mode 4 – Market Access
Source
: Pro
spectiv
a C
onsu
ltoria
0%
10%
20%
30%
40%
50%
60%
Brasil - Compromissosconsolidados
Brasil - Oferta RodadaDoha
None
Com restrições
Unbound
Sem posição
0%
10%
20%
30%
40%
50%
60%
Brasil - Compromissosconsolidados
Brasil - Oferta RodadaDoha
None
Com restrições
Unbound
Sem posição
0%
10%
20%
30%
40%
50%
60%
Brasil - Compromissosconsolidados
Brasil - Oferta RodadaDoha
None
Com restrições
Unbound
Sem posição
Topics of Negotiation - Services
Comparison between bound commitments and Doha Round Offers – distribution of the types of position related to the category of IT and BPO services - India
IT/BPO - Mode 1 – Market Access
TI/BPO -Mode 3 – Market Access IT/BPO - Mode 4 – Market Access
Source
: Pro
spectiv
a C
onsu
ltoria
0%
10%
20%
30%
40%
50%
60%
Índia - Compromissosconsolidados
Índia - Oferta RodadaDoha
None
Com restrições
Unbound
Sem posição
0%
10%
20%
30%
40%
50%
60%
Índia - Compromissosconsolidados
Índia - Oferta RodadaDoha
None
Com restrições
Unbound
Sem posição
0%
10%
20%
30%
40%
50%
60%
70%
Índia - Compromissosconsolidados
Índia - Oferta RodadaDoha
None
Com restrições
Unbound
Sem posição
Topics of Negotiation - Services
The Doha Round
Launched in November 2001 After tentative of launching in the Millennium
Round in Seattle International context “post September 11”
forced the launch, even without political support Initial agenda very ambitious: services and
agriculture (continuation of discussions started in 2000), intellectual property and Singapore issues
Initial deadline for the conclusion of the Round: January 1 2005
Development became the main concern (Doha Development Round)
The Doha Round
Revision Goals of the Round were revised in the Cancun (2003),
Geneva (2004) and Hong Kong (2005) meetings Geneva 2004 meeting: “July Package” New deadline for the conclusion of the Round: 31
December 2006 NAMA, agricultur2, services and IP are still on the
agenda Singapore issues: only “trade facilitation” remains on
the agenda Expiration of the TPA in the US further complication to
the Round
The Doha Round
Deadlock Multilateral trading system might have reached
the limit of political economy (single undertaking model)
Agriculture: pivot of the deadlock (US and Brazil) Likely to continue even if deadlock in agriculture
is broken (India and Brazil NAMA) Proliferation of bilateral and regional FTAs Increase of disputes in the DSU Need to think a new model of multilateral trading
system
Acordos Regionais
Proliferação de acordos regionais com crise do Sistema Multilateral do Comércio
No início, eram apenas acordos de preferência tarifária (APTR) entre países
Atualmente, acordos podem envolver também: Investimentos, Serviços, Propriedade Intelectual, Padrões Ambientais e Trabalhistas, e etc.
Estariam em desacordo com o princípio da NMF do GATT:
Artigo 24 do GATT dispõe sobre acordos regionais: sua regulamentação e “legalização”
“Cláusula Permissiva” do GATT 1979: Permite preferências tarifárias para países em desenvolvimento
Artigo 5 do GATS: Acordos regionais para serviços
Acordos Regionais
238 acordos em vigor registrados na OMC (fev. 09)
França, Alemanha, Itália e Reino Unido: 42 cada
Brasil:
Mercosul – Bens Mercosul – Serviços Aladi: Bens
ACE 35 (Mercosul e Chile); ACE 55 (Mercosul e México – ACE 53 automotivo); ACE 59 (Mercosul e CAN) e ACE 62 (Mercosul e Cuba)