World Trade Report 2011 (2)

8/2/2019 World Trade Report 2011 (2)

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WORLD TRADE REPORT

2011

The WTO and preferential trade agreements:

From co-existence to coherence

Group 5:

Abhishek Agarwal

Aditya Alok

Carol Karian

Swati Sinha


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Presentation Outline

1. World Trade in 2010

a) Introduction

b) The State of the World Economy and Trade in 2010

2. The WTO and Preferential Trade Agreements: From Co-existence

to Coherence

a) Introduction

b) Historical Background and Current Trends

c) Causes and Effects of PTAs: Is it all about Preferences?

d) Anatomy of Preferential Trade Agreements

e) The Multilateral Trading System and PTAs

f) Conclusions


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World Trade in 2010

a) Introduction

i. Putting the trade recovery into perspective


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World Trade in 2010

b) The State of the World Economy and Trade in

2010

i. Economic Growth

ii. Merchandise Trade in Volume Terms

iii. Merchandise and Commercial Services Trade in

Value Terms

iv. Sectoral Developments

v. Trade Balances and Exchange Rates


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The WTO and Preferential Trade

Agreements: From Co-existence to Coherence

a) Introduction

i. Perspectives and insights in the World Trade

Report 2011

International production networks

Preferential trade flows and tariffs

A viable WTO agenda on PTAs

Beyond trade creation and trade diversion


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Agreements: From Co-existence to

Coherence

a) Introduction

ii. Structure of the report

Historical background and current trends

Causes and effects of PTAs

Anatomy of PTAs

The multilateral trading system and PTAs


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Coherence


i. Formation of PTAs

The nineteenth century: surging trade and expandingagreements

Early economic depression and the Great depression:

trade blocs

GATT and WTO: landmarks of broader and moreinclusive trade

The modern era: three new waves of regionalism


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Coherence


ii. Stylized Facts about PTAs

Changes over time

Cross regionalism

Type of Trade

Degree of market integration


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Coherence


iii. Trade Flows related to PTAs

Value of World Trade between PTA members1. Increased from US$537 million in 1990 to US$4 trillion in 2008

Has trade become more geographically concentrated?

1. Europe's total exports remained roughly constant at around 73 %

from 1990 to 20092. Asia's intra-regional trade share increased from 42% to 52%

3. Chinas export to Japan has decreased while its export to the world

has increased


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Coherence


iv. How preferential is trade?

EU and US reveal preference utilization rates of 87 and 92 per cent

16 % trade is preferential

Brazil grants high preference margin of 7% to its importers


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Coherence


v. Key Facts

Almost 300 preferential trade agreements (notified and not notified)

were in force in 2010. On average, a WTO member is party to 13PTAs.

Non-preferential (MFN) tariffs are low, equal to 4% on average in

2009. Most sensitive sectors remain sensitive in PTAs:

approximately 66% of tariff lines (products defined by their

customs codes) with MFN rates above 15% have not been reducedin PTAs


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Coherence

c) Causes and effects of PTAs

i. Motives for PTAs

To neutralize beggar-thy-neighbour trade policies

Gaining credibility

Non traditional motives


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Coherence


ii. The standard economics of PTAs

Effect of PTAs on trade

Supply chain arrangements

Natural trading partners

Political economy forces

Rules of origin and trade diversion

Th WTO d P f i l T d


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Coherence


iii. Going beyond the standard analysis

Deep integration

Deep integration and trade

The trade-offs involved

Documents

World Trade Report 2011 (2)