UNCTAD and WTO_More Differences Than Similarities
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Transcript of UNCTAD and WTO_More Differences Than Similarities
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Two mul ti lateral organisations
dealing with trade:
UNCTAD and WTO
More differences than similari ties
Eva Novi Karina, S.IP
12/PSP/339011/4368
Master of International Trade Studies
University of Gadjah Mada
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THE DIFFERENCES LIE ON:
The originsof both organisations
Their mandates
The institutional functioning
Their thinkingon trade and development
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THE ORIGINS
The GATT
and the WTO
Keynes ideas on post-warinternational economic governance(avoid economic conflicts)
The Bretton Woods agreements(1944)
1947: the ITO, the Havana Charterand the GATT (light links with theUN)
GATT Rounds of trade negotiationsuntil the Uruguay Round
(1986-94)
1995: WTO is established outsidethe UN system
UNCTAD: 1964
Decolonisation
North-South and East-Westtensions
Non-Aligned Movement
Group of 77
Trade not aid: link between
trade and development(Prebisch thinking)
1st UNCTAD MinisterialConference meets in Geneva;
Permanent UNCTADsecretariat established inGeneva
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THE FUNCTIONING
WTO
No links with the UN machinery
Permanent governmental bodiesthat monitor the implementation ofthe trade rules
Negotiating governmental bodies
The Secretariat provides neutraltechnical support to thenegotiations
Accession has to be negotiated
Limited role of non-governmentalstakeholders
UNCTAD UNCTAD intergovernmental
machinery (Ministerial Conferences
and Trade and Development Board)
linked to UN General Assembly and
ECOSOC
UNCTAD secretariat part of the UN
Secretariat (part of same budget)
UNCTAD secretariat devoted to
development
No normative role, no negotiations of
binding rules, only political role UN membership (192 countries)
Strong participation of non-
governmental stakeholders
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THE MANDATE
UNCTAD:
I ntegrated treatment of trade,
investment and related issues=
wide mandate
Researchon a range of trade anddevelopment issues
Consensus-buildingthroughdebates and exchange ofexperiences among 192 memberStates on all UNCTAD issues
Technical cooperationon all thetopics of UNCTAD work
(policy and legal advice, training,institution building, support tonegotiations)
WTO
Rules-based organisation, sets
binding multilateral trade law
through negotiations
(legislative role)
Dispute settlement mechanismwith mandatory decisions, can
apply sanctions (judicial role)
Work confined to the existing
trade agreements and to the
scope of the negotiations =
nar row mandate based on
existing trade rules
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THE IDEAS ON DEVELOPMENT
WTO
Main goal is not development perse, but to avoid commercialdisputes
Same trade rules and reciprocity
apply to all, but Special and differential
treatment is introduced withvarious intensities
The Doha DevelopmentAgenda introduced in 2001
Trade liberalisation and
implementation of trade rulesleads to development
UNCTAD
Trade is oneof the maininstruments leading todevelopment
but no automatic links betweentrade liberalisation, povertyreduction, and development
The links between trade anddevelopment aremultidimensional
Special and differentialtreatment is key
No one size-fits-alldevelopment models
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UNCTADs INTEGRATED VISION OF TRADE AND
DEVELOPMENT and THE SCOPE OF ITS WORK:
I NTERNATIONAL ECONOMIC ENVIRONMENT
NATIONAL DEVELOPMENT GOALS
SUPPLY-SIDE
PRODUCTIVE
CAPACITY
POLICIES
TRADE
SUPPORT
SERVICES
POLICIES
TRADEPOLICY
AND
NEGOTIATION
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SOME UNCTAD IDEAS
Special and differential treatment and recognition of different levelsof development (including trade preferences)
Identify the development content and impact of trade negotiations
Need for a development-friendly coherence between theinternational financial and trading systems
Development impact of bilateral and regional trade and investmentagreements
Enhance endogenous capacities and homegrown developmentpolicies
Links between investment, science and technology, ICTs and tradeflows
Role of commodities in international trade
Development-friendly structure of the GATS
LDCs terms of WTO accession
Need for debt reduction and debt sustainability Role of competition law and policies in development processes
Traditional work on trade facilitation and related issues
Research on non-trade barriers
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THANK YOU !
www.unctad.org