Regional Trade Agreements and the WTO Roberto Fiorentino World Trade Organization.
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Transcript of Regional Trade Agreements and the WTO Roberto Fiorentino World Trade Organization.
Regional Trade Regional Trade Agreements Agreements and the WTOand the WTO
Roberto FiorentinoRoberto FiorentinoWorld Trade OrganizationWorld Trade Organization
Outline:Outline: Some facts and figuresSome facts and figures
RTAs and the WTORTAs and the WTO
DDA negotiationsDDA negotiations
Regional Trade Regional Trade Agreements Agreements and the WTOand the WTO
1. What is a Regional Trade 1. What is a Regional Trade Agreement? Agreement?
A problem of definitions:A problem of definitions: Preferential Trade Arrangements (PTA)Preferential Trade Arrangements (PTA)these are trade arrangements under which a party agrees, these are trade arrangements under which a party agrees, either unilaterally or as a result of negotiations, to accord one either unilaterally or as a result of negotiations, to accord one or more other parties preferential treatment in trade in goods or more other parties preferential treatment in trade in goods or services. or services.
Free-Trade Agreement (FTA)Free-Trade Agreement (FTA)a contractual arrangement between two or more countries under which they give each other preferential market access
Regional Trade Arrangement (RTA)Regional Trade Arrangement (RTA)a a free-trade agreement, customs union or or common market consisting of two or more countriesconsisting of two or more countries
2. How many RTAs are 2. How many RTAs are there?there?
As of November 2008, 418 RTAs have been As of November 2008, 418 RTAs have been notified to the GATT/WTO of which 227 are notified to the GATT/WTO of which 227 are currently in forcecurrently in force
161 RTAs cover trade in goods; 54 trade in 161 RTAs cover trade in goods; 54 trade in services; and 12 are accessions to existing RTAsservices; and 12 are accessions to existing RTAs
0
2
4
6
8
10
12
14
16
18
20
22
24
26
No
. o
f R
TA
s
0
50
100
150
200
250
Goods Services Accessions Cumulative
05
101520253035404550556065707580859095
100
1949195
1195
3195
5195
7195
9196
1196
3196
5196
7196
9197
1197
3197
5197
7197
9198
1198
3198
5198
7198
9199
1199
3199
5199
7199
9200
1200
3200
5200
7
No
. o
f R
TA
s
0
50
100
150
200
250
300
350
400
450
Notified RTAs (goods, services & accessions) Inactive RTAs
Cumulative RTA notifications Cumulative active RTAs
Typology of RTAsTypology of RTAs
FTAs account for the FTAs account for the great majority of great majority of RTAs notified and in RTAs notified and in forceforce
...and of the ...and of the projected RTAsprojected RTAs
Notified RTAs in force as of Notified RTAs in force as of November 2008November 2008
RTAs signed and under negotiations RTAs signed and under negotiations
85%
8%7%
FTA Customs Union Partial Scope
92%
1% 7%
FTA Customs Union Partial Scope
Participation in RTAs (goods) as of January 2009* Participation in RTAs (goods) as of January 2009*
1 to 41 to 4 5 to 9 10 to 19 20 to 26 No data
* Notified and in force.* Notified and in force.
The global landscape of RTAsThe global landscape of RTAs
Configuration of RTAsConfiguration of RTAs
Bilateral RTAs account Bilateral RTAs account for the majority of for the majority of RTAs notified and in RTAs notified and in force and of future force and of future RTAsRTAs 0%
20%
40%
60%
80%
100%
In Force Signed/Neg
Plurilateral Bilateral
Cross-regional Cross-regional RTAs account for a RTAs account for a large share of large share of future RTAsfuture RTAs
RTA configuration as of RTA configuration as of November 2008November 2008
Cross-regional RTAs as of Cross-regional RTAs as of November 2008November 2008
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
In Force Signed/Neg
Intra-Regional Cross-Regional
Global & regional developments
The spaghetti bowl effect...
UnitedStates
EC
EFTA
Mexico
Chile
S. Africa
Singapore
MERCOSUR
GCC
Australia
N. Zealand
ASEAN
Japan
KoreaJordan
Israel
ECOWAS
CEMAC
SACU
ESA
Morocco
ChineseTaipei
Panama
Bahrain
Thailand
India
Signed / In ForceUnder NegotiationUnder Consideration
China
SADC
Egypt
PACIFICEPA
CARIFORUM
Canada
3. RTAs in the WTO3. RTAs in the WTO
What is the legal nature of an RTA What is the legal nature of an RTA in the WTO?in the WTO?
Basic principles:• MFN• National Treatment
WTO
• General General ExceptionsExceptions
• Security Security ExceptionsExceptions
• WaiversWaivers
• S&D (GSP, EBA, S&D (GSP, EBA, etc)etc)
• RTAsRTAs
Dero
gatio
ns
& e
xcep
tion
s
Non - Discrimination
RTAs are RTAs are thethe major exception to major exception to MFN (Article 1)MFN (Article 1)
•GATT Article XXIV
•Enabling Clause
•Understanding on GATT Art. XXIV
•GATS Article V
Goods
Services
RTAs are RTAs are permittedpermitted albeit albeit conditionalconditional exceptions to the MFN principle; exceptions to the MFN principle;
RTAs can be established in accordance with RTAs can be established in accordance with the following the following conditionalconditional legal provisions: legal provisions:
RTAs & the WTORTAs & the WTO
What type of an exception is an What type of an exception is an RTA?RTA?
To invoke the exception the RTA has to be To invoke the exception the RTA has to be notifiednotified
Common PrinciplesCommon Principles
1.1. The purpose of an RTA is to facilitate The purpose of an RTA is to facilitate trade among the parties through the trade among the parties through the reductionreduction or or eliminationelimination of tariffs and of tariffs and other barriers to tradeother barriers to trade
2.2. The RTA must provide for The RTA must provide for mutual/reciprocalmutual/reciprocal trade concessions trade concessions
3.3. The attainment of the internal objective The attainment of the internal objective of trade liberalization must not entail of trade liberalization must not entail placing placing barriersbarriers towards non-RTA parties towards non-RTA parties higherhigher than those existing before the than those existing before the formation of the RTAformation of the RTA
4. RTAs & WTO: 4. RTAs & WTO: problems?problems?
Lack of transparency:Lack of transparency: Failure to comply with notification Failure to comply with notification
obligationsobligations Where notified, inadequate information Where notified, inadequate information
providedprovided
Systemic concerns:Systemic concerns: Proliferation of RTAsProliferation of RTAs Divergent interpretation of WTO Divergent interpretation of WTO
provisions on RTAsprovisions on RTAs
Institutional deadlock:Institutional deadlock: No effective WTO surveillance mechanism No effective WTO surveillance mechanism
of RTAsof RTAs No consistency assessment of the RTAs in No consistency assessment of the RTAs in
forceforce
The Doha Ministerial Declaration (14 Nov 2001) contains two references to RTAs:
§4 Recognize the WTO as unique forum for global trade rule-making and liberalization
... and RTAs’ role in trade liberalization and development
§29 Calls for negotiations to clarify and improve WTO rules and procedures on RTAs
... taking into account RTAs’ developmental aspects
Preambular
language
Negotiating
Mandate
5. DDA negotiations on RTAs: the 5. DDA negotiations on RTAs: the mandatemandate
Procedural Procedural RequirementsRequirements
GATT Art. XXIVGATT Art. XXIV GATS Art. VGATS Art. VEnabling Enabling
Clause – Para. Clause – Para. 2(c)2(c)
Transparency Mechanism for Transparency Mechanism for RTAsRTAs
General Council’s Decision General Council’s Decision
of 14 December 2006 (WT/L/671)of 14 December 2006 (WT/L/671)
State of play and what remains State of play and what remains to be doneto be done
RTA Transparency:RTA Transparency: Review of the Mechanism - § 23 of Review of the Mechanism - § 23 of
WT/L/671WT/L/671 Permanent application (Single Permanent application (Single
Undertaking)Undertaking) Database on RTAsDatabase on RTAs
Systemic Issues:Systemic Issues: Last meeting dedicated to these Last meeting dedicated to these
questions was held in February 2007questions was held in February 2007 Main problem facing the Group is the Main problem facing the Group is the
lack of text-based proposals to advance lack of text-based proposals to advance the processthe process
Chair has been holding bilateral Chair has been holding bilateral consultations with Members to hear consultations with Members to hear their views on the way forwardtheir views on the way forward
Thank youThank you
[email protected]@wto.org
RTA SectionRTA Section
World Trade OrgainzationWorld Trade Orgainzation