The Doha Development Agenda (DDA) A Presentation under the WTO National Advocacy and Consultations Programme (NACP) Series of 2014 ”One Country, One Voice”

The Doha Development Agenda (DDA)

A Presentation under the WTO National Advocacy and Consultations Programme

(NACP)

Series of 2014”One Country, One Voice”

Presentation Outline

I. Launching of the New Round of Multilateral Trade Negotiations

a. MC4 Doha in 2001

b. Negotiating Areas

c. Mandates

II. The 2003 – 2011 Ministerial Conferences

a. MC5 Cancun in 2005 - Collapse of Talks

b. MC6 Hong Kong in 2007– Back on Track

c. MC7 Geneva in 2009 - De-Linking the DDA and the MC

d. MC8 Geneva in 2011 - Providing Political Guidance

III. DDA Updates

a. MC9 Bali Ministerial Conference/Results/Updates

IV. TCWM Work Program

V. Q and A

Launching of the New Round of Multilateral Trade Negotiations

4th Ministerial Conference (MC) in Doha, Qatar

Previous MCs held in Singapore (1996), Geneva 1998, and Seattle (1999)

9th Round under the Multilateral Trading System (MTS)

Doha Round Negotiating Areas

Agriculture (incl. cotton negotiations) Non-Agricultural Market Access (NAMA or industrial tariffs)

Trade in Services Trade Facilitation (Singapore Issues)

Rules (AD, CVD, Subsidies, including Fisheries subsidies, RTAs and Dispute Settlement)

Trade and Environment (Rules and Market Issues)

Trade Related Aspects of Intellectual Property Rights (TRIPS)

Special and Differential (S&D) Treatment

Implementation Issues Others (Small Economies, Integrated Framework, Aid for Trade or AFT)

DDA Mandates

Agriculture (incl. cotton negotiations)

Comprehensive negotiations aimed at:

Market access Reduction/phasing out of export subsidies Reduction of trade-distorting domestic support

S&D treatment

DDA Mandates

Non-Agricultural Market Access (NAMA)

Reduce/eliminate tariffs, tariff peaks, high tariffs, tariff escalation and NTBs, in particular for products of export interest to Developing Countries (DCs)

Product coverage: comprehensive/without a priori exclusions

Special needs and interests of DCs and Least-developed Countries (LDCs); less than full reciprocity (LFR)

Capacity building measures for DCs

DDA Mandates

Services

Promote economic growth for all Members

Mandated negotiations under Article XIX, including movement of natural persons

March 2001 Guidelines and Procedures for the negotiations

Initial requests by 30 June 2002 and initial offers by 31 March 2003

DDA Mandates TRIPS

Support of public health, by promoting market access to existing medicines and R&D for new medicines.

Establishment of a multilateral system of notification and registration of Geographical Indications (GIs) for wines and spirits.

Review implementation/examination of the relationship between the TRIPS Agreement and the Convention on Biological Diversity (CBD), the protection of traditional knowledge and folklore, and other relevant dimensions (patentability of plant and animal inventions, protection of plant varieties, and overall review of the TRIPS Agreement).

DDA Mandates

Relationship Between Trade and Investment - Singapore MC (SMC) issue

Relationship Between Trade and Competition Policy (SMC issue)

Negotiate after the 5th MC; decision by explicit consensus on the modalities for negotiations.

Clarify relevant concepts until the 5th MC.

DDA Mandates

Transparency in Government Procurement (SMC issue)

Negotiate after the 5th MC; decision by explicit consensus on the modalities for negotiations.

Limited to transparency aspects; shall not restrict the scope for countries to give preferences for domestic supplies /suppliers.

Technical assistance and support for capacity building.

DDA Mandates

WTO Rules

Clarify and improve:

1) Disciplines of the Agreement on the Implementation of Article VI of GATT 1994 (Anti-Dumping)

2) Agreement on Subsidies and Countervailing Measures (SCM)

a) Disciplines on trade distorting practices b) WTO provisions on fisheries subsidies

3) Disciplines and procedures under existing WTO provisions on Regional Trade Agreements (RTAs)

Take into account development aspects

DDA Mandates

Trade and Environment

Negotiate without prejudging the outcome on:1. Relationship between existing WTO rules and specific trade obligations

(STOs) in multilateral environmental agreements (MEAs);

2. Procedures for regular information exchange between MEA Secretariats and relevant WTO Committees; criteria for granting observer status;

3. Reduction/elimination of tariffs and NTBs on environmental goods and services.

Committee on Trade and Environment (CTE) to pursue work on:1. The effect of environmental measures on market access, particularly DC’s

and LDC’s.

2. Elimination of trade restrictions that will benefit trade, the environment and development.

Cancun Ministerial Conference Results

. . . . Talks COLLAPSED ! ! !

5th WTO-MC; Cancun, Mexico; 09-14 September 2003.

Failed mainly due to the SMC Issues (Trade and Investments; Trade and Competition Policy; Government Procurement; and Trade Facilitation).

Ministerial Statement directed the General Council to continue the process in Geneva.

DDA from 2006 - 2008

. . . . very BUMPY road ! ! !

“Suspension” in July 2006.

“Soft” re-start in November 2006.

Fully resumed by February 2007.

Stalled again by July 2008.

Some Major Factors that Led to Suspension 2006-2008

Agriculture Farm subsidies of the United States NAMA Prospects of deep market access commitments

by developing countries Services Wanting in initial and revised offers on market

access Rules Amendments in anti-dumping rules; subsidy

disciplines for fisheries TRIPS Polarized debates on GIs and other issues Environment Questions over relationship between WTO rules

and MEAs S & D Not much progress (a Development Round?) Others US mid-term elections

Where the Doha Round left off inAgriculture……

…breakdown on the SSM issue!!

Market Access Overall Trade Distorting Domestic Support (OTDS) Export Subsidies Sensitive Products (SeP) Special Safeguards Special Products (SP) Special Safeguards Mechanism (SSM)

AgricultureSTALLED ON THE SSM ISSUE

ISSUES 10 July 2008 TEXT DECEMBER Text G7 (US,EU, and India)

Elements

Market Access Developing: 36% maximum average reduction in bound duties

S&D: 2/3 of the developed Members’ cut for each band

More or less retained

G7 – Developed: top band cut agreed at 70%.

Overall Trade Distorting Domestic Support (OTDS)

If > $60B, $16-20B or [(75%)(85%)] cutIf > $10-60B, $$9-15B or [(66%) (73%)] cutIf <$10B, $5-4B or [(50%) (60%)] cut


G7 - US offered $14.5B or 70% cut


ISSUES 10 July 2008 TEXT DECEMBER Text G7 (US,EU, and India) Elements

Export Subsidies

Developed: elimination by 2013; 50% elimination by 2010

Developing: elimination by 2016


Sensitive Products (SeP)

Developed: [(4%) (6)%] of tariff linesDeveloping: 1/3 higher than developed



ISSUES 10 July 2008 TEXT DECEMBER Text G7 (US,EU, and India)

Elements

Special Products(SP)

Developing Members can self-designate based on criteria of food security, livelihood security, and rural development.

10-18% of tariff lines6% with no cut10-14% overall average cut

Retained

12% of tariff lines5% with no cut11% average cut

Special Safeguards Mechanism (SSM)

Price and volume-based SSM available.No simultaneous application with SSG, Article XIX or normal safeguards.

G7 - 140% volume trigger for 2.5% of tariff lines if breaching pre Doha or Uruguay Round bound rates.

Where the Doha Round left off inNAMA……

…coefficients linked with flexibilities and others ….

Coefficients for the Swiss Formula Flexibilities Mark-Up Anti-Concentration Sectoral Initiatives Non-Tariff Barriers (NTBs) Annexes

Swiss Formula

t1 = (a or x or y or z) x t0

(a or x or y or z) + t0

Where: t1 - final bound rate

t0 - base rate

“a” - [7-9] coefficient for developed Members

“x or y or z” - [19-21][21-23][23-26] coefficient for developing Members

NAMANOT AGREED/BEGINNING OF THE PROCESS OF CONSULTATIONS

ISSUES 10 July 2008 TEXT DECEMBER Text/ “G7 (US,EU, and India)

Elements”

Coefficient Developed: [7-9]Developing: x = [19-21] y = [21-23] x = [23-26]

Developed: 8Developing:

Flexibility If with coefficient of x: less than half the formula cuts for [12-14]% of tariff lines/[12-19]% of imports or exception/tariff lines unbound or not applying formula cuts for [6-7]% of tariff lines/[6-9] of imports.

If with coefficient of y: less than half the formula cuts for 10% of tariff lines/10% of imports or exception/tariff lines unbound or not applying formula cuts for 5% of tariff lines/5% of imports.

If with coefficient of z: no flexibilities

x = 20, if with flexibilities of 6.5% zero cut or unbound or 14% half cut

y = 22, if with flexibilities of 5% zero cut or unbound or 10% half cut

z = 25, if without flexibility



Elements”

Mark-up 25 percentage points Stable

Anti-Concentration

Full formula reductions shall apply to a minimum of either [ ]% of tariff lines or [ ]% of imports in each HS Chapter.

20% of tariff lines or 9% of trade value for each HS Chapter

Sectorals Voluntary:1. Fish and fish products2. Forest products3. Gems and jewelry4. Hand tools5. Industrial Machinery6. Enhanced health care7. Raw materials8. Sports equipment9. Toys10. Textiles, clothing, and footwear11. Automotives and related parts12. Bicycle and related parts13. Chemicals14. Electronics and electrical products


ISSUES 10 July 2008 TEXT DECEMBER Text/ “G7 (US, EU, and India)

Elements”

NTBs Related to Standards and Conformity Assessment:

1.Ministerial Decision on Procedures for the Facilitation of Solutions to NTBs2.Negotiating Proposal on NTBs in the Chemical and Substances sector3.Understanding on the Interpretation of the TBT Agreement as Applied to Trade in Fireworks4.Understanding on the Interpretation of the TBT Agreement as Applied to Trade in Lighters5.Understanding on the Interpretation of the Agreement on TBT as Applied to Trade in Electronics

No. 1 is a “horizontal” agreement while the rest are “vertical” agreements.



Elements”

NTBs Related to Standards and Conformity Assessment:

6. Understanding on the Interpretation of the Agreement on TBT as Applied to Trade with respect to Labeling of Textiles, Clothing, Footwear and Travel Goods

7. Decision on NTBs Affecting Forestry Products used in Building Construction

8. Agreement on NTBs Pertaining to the Electrical Safety and EMC of Electronic Goods

9. Agreement on NTBs Pertaining to Standards, Technical Regulations Conformity Assessment Procedures for Automotive Products



Elements”

NTBs Beyond Standards and Conformity Assessment:

10. Revised Submission on Export Taxes11. Protocol on Transparency in Export

Licensing to the GATT 199412. Decision on NTBs Imposed as Unilateral

Measures13. Ministerial Decision on Trade in

Remanufactured Goods

No. 13 is a “horizontal” agreement; nos. 10-12 are “vertical” agreements.

Other Issues as of July 2008

….. NO NEGOTIATING TEXTS…….

MC7 Ministerial Decisions(Geneva, 30 November to 03 November 2009)

….. “de-linked” from the DDA (no negotiated outcome document)

Extended the moratorium on recourse to non-violation and/or situation complaints under the DSU for matters under TRIPS

Extended the moratorium on the imposition of customs duties on electronic transmissions (e-commerce)

Decision to hold MC8 around December 2011 (in Geneva?)

The Bigger Doha Round Question…. very complex sets of interests.

For the WTO, how to convince the bigger developing Members to “contribute” and the major economies to exercise the usual leadership role

For the Philippines, how to design a practical SSM for agriculture

MC8 on the horizon

…. A final push through a narrow window…

Preserve the “gains” and complete the NAMA (and Agriculture modalities, but when?)

“Cocktail Approach” to move forward New texts by April, agreements by June, and scheduling by 2nd

half of 2011? MC8 scheduled on 15-17 December 2011 (again in Geneva)

Ideas floated in 2011:

Continue the DDA

“Early Harvest” for LDCs (ROO, Cotton, and Services waiver)

New issues (exchange rates, climate change, food security, and energy security)

Systemic topics (RTAs and the MTS)

Others

MC8 Political Guidance(Geneva, 15-17 December 2011)

1. How to strengthen regular WTO work:

- resist protectionism - TPR and monitoring mechanism

2. How to conclude the DDA: - mandates maintained

- “single undertaking” versus “early harvest” (DDA paragraph 47)

3. How to approach the new economic challenges:

- climate change, energy, food security, trade and exchange rates, competition and investment - RTAs and the MTS- thru WTO regular bodies and its mandates

The Bali (MC9) Ministerial Package

• The 9th Session of the WTO Ministerial Conference (MC9) was held in Bali, Indonesia from 03-06 December 2013.

• MC9 had to be extended and concluded at 12:00 nn of 7 December 2013.

• The MC resulted in the adoption of the Bali Ministerial Declaration and Other Ministerial Decisions, to wit:

I. Doha Development Agenda

• Trade Facilitation• Agriculture• Cotton, and• Development and LDC Issues

The Bali (MC9)Ministerial Package

II. Other Ministerial Decisions • TRIPS Non-Violation and Situation Complaints• Work Programme on Electronic Commerce• Work Programme on Small Economies• Aid for Trade (AFT)• Trade and Transfer of Technology• Extension of the Transition Period Under TRIPS

Article 66.1 for LDCs• Accession of LDCs• Accession of the Republic of Yemen

Trade Facilitation (TF) Agreement

• Commitments to implement measures that address inefficiencies in customs administration, including red tape and streamlining customs procedures.

• Requires all Members to establish systems and rules that reduce administrative processes and to promote consistency and transparency in customs transactions.

• Provides for special and differential (S&D) treatment to developing countries:

- by allowing flexibility to identify the timetable needed for implementing the different measures; and - provision of technical assistance from WTO and developed Members

• No dispute during the transition periods.

AgricultureCovered Issues and its Salient Points

• Public Stockholding • Suspends the implementation of the 10% limit (de minimis) on agriculture support until such time that a permanent solution is put in place.

• Provision on the “peace clause”.

• General Services • Inclusion in the “Green Box” programmes those related to land reform and rural livelihood to promote rural development and poverty alleviation.

Agriculture

• Tariff-Rate Quota (TRQ) Administration

• TRQ’s are now deemed as an instance of “import licensing” thus covered by the Import Licensing Agreement.

• Additional rules for unfilled quotas and procedures on how other Members can access such unfilled quotas.

• Export Competition • Remains committed to the Hong Kong Ministerial Declaration to eliminate export subsidies.

• Review of the progress in the reduction commitments by the next MC10.

Cotton

• Enhance transparency and monitoring work in relation to the trade-related aspects of cotton.

• Agreed to hold a dedicated discussion on a bi-annual basis in the context of the Committee on Agriculture (COA) in Special Session to examine relevant trade-related developments across the three pillars of Market Access, Domestic Support, and Export Competition in relation to cotton.

Development and LDC Issues

• Preferential Rules of Origin (ROOs) for Least–Developed Countries (LDCs).

•Provision that Members should endeavor to develop ROO arrangements for applicable imports from LDCs.•The ROOs should be transparent, simple, and objective as possible.

• Operationalization of the Waiver Concerning Preferential Treatment to Services and Services Suppliers of Least–Developed Countries (LDCs).

• Initiation of a process aimed at promoting the expeditious and effective operationalization of the LDC services waiver.

Development and LDC Issues

• Duty-Free and Quota-Free (DFQF) Market Access for LDCs

• Ministerial Decision requesting developed and developing countries who can afford to grant DFQF access to their markets for the LDCs.

• Monitoring Mechanism on Special and Differential (S&D) Treatment

• Creation of a committee to review and assess the implementation of the S&D provisions of the WTO agreements.

Other Ministerial Decisions• TRIPS Non-violation

and Situation Complaints

• Ministerial Decision that directs continuation of the examination of the scope and modalities for complaints on the types provided under Article XXIII of GATT 1994.

• No initiation of complaints under TRIPS Agreement until so decided.

• Work Programme on Electronic Commerce

• Continue work on the basis of existing mandate and guidelines.

• Maintain the current practice of not imposing customs duties on electronic transmissions until next session.

Other Ministerial Decisions

• Work Programme on Small Economies

• Reaffirm commitment to the Work Programme on Small Economies.

• Instruct the General Council (GC) to direct relevant subsidiary bodies to frame responses to the trade-related issues identified by the CTD with a view to making recommendations for action.

Other Ministerial Decisions

• Aid for Trade (AFT) • Reaffirm commitment to AFT and reiterate the mandate given to the DG to pursue actions in support of AFT.

• A new AFT Work Programme should be framed by the post-2015 development agenda.

• Trade and Transfer of Technology

• Continue its work to fully achieve the mandate of the Doha Ministerial

Declaration.

Post-Bali Work

• Reaffirm commitment to the Doha Development Agenda as well as the regular work of the WTO

• Instruct the Trade Negotiations Committee to prepare within 12 months a clear defined work program on the remaining DDA issues.

• Geneva PM • Continue to actively participate in any discussion towards the realization of the MC work program without prejudice to national interests

• Continued reporting of developments to the capital.

Post-Bali Work• Capital • Continuing discussions of issues

transpiring in Geneva.

• Continuing inter-agency coordination.

• Active participation in actual negotiations/meetings (at the capital and elsewhere).

• Reactivation of national consultations and advocacy on WTO and the DDA.

46

Maraming salamat po….

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Documents

The Doha Development Agenda (DDA) A Presentation under the WTO National Advocacy and Consultations Programme (NACP) Series of 2014 ”One Country, One Voice”