WTO PROJECT B by xiuliliaofz

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									PROJECT B

The World Trade Organization (WTO) is the only global international organization dealing with the rules of
trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s
trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters,
and importers conduct their business. The WTO does not provide trade finance nor is an international financial
institution.

Recent Activities

The Standards and Trade Development Facility (STDF) was set up by the UN Food and Agriculture Organization
(FAO), World Organization for Animal Health (OIE), World Bank, World Health Organization (WHO) and World
Trade Organization (WTO), and is run by the five partners together with donor countries and representatives of
developing countries.

The Standards and Trade Development Facility (STDF) assist developing countries tackle pests, animal and plant
diseases and contaminants by helping them build up their capacity to implement requirements known as
“sanitary and phytosanitary (SPS)” standards through increased awareness and knowledge of good practices
and by funding projects that promote compliance with the standards, including grants to help prepare projects.
Objective: help developing countries to expand and diversify food and agricultural production and exports,
resulting in economic development, poverty reduction, better nutrition, food security and environmental
protection.
Solutions:                                            Measures:
     boost collaboration and information                 Funding to implement new strategy will remain
         sharing on technical co-operation                    at the current target of $5m per year, with a mid-
     help recipient countries identify their                 term review due in 2013. The STDF will continue
         needs, define their priorities and design            to dedicate at least 40% of its project resources
         project proposals that are likely to receive         to beneficiaries in least developed countries
         funding from various donors                          (LDCs) and other low income countries.
     improve the performance of countries
         benefiting from the limited number of
         STDF-funded projects


Representatives of international financial institutions, private banks and other experts met at the WTO, 12
November 2008, to analyze the shortage of credit to finance trade and discuss possible measures to address
the problem.
Objective: to keep trade flowing as an important contribution to address the current economic crisis
Problems:                             Measures taken:                         Solutions:
       The main one is the                  The World Bank/IFC is                Fill the gap of liquidity by
        shortage of liquidity to              actively studying a tripling          increasing the
        finance trade credits. The            of the ceiling, to                    opportunity for
        market currently                      $3 billion, of the trade              commercial banks to co-
        estimates the liquidity               finance guarantees                    share risks with
        gap in trade finance at               available under the IFC's             international financial
        about $25 billion.                    trade finance facilitation            institutions and export
       The second is a general               programme.                            credit agencies.
        re-assessment of the risks           Export credit agencies               Improve mechanisms of
        caused by the financial               have increased their                  information sharing, risk
        crisis and by the slowing             business activities by                assessment and data
        down of the world                     more than 30 percent in               collection on trade and
        economy.                              the last twelve months.               finance.
       These problems are being             National governments, for            Develop mechanisms to
        felt most acutely by                  example Germany, Hong                 allow for more co-
        traders and banks in the              Kong (China) and Japan,               financing trade between
        emerging market                       have actively being                   private banks, export
        economies.                            backing this increase.                credit agencies and
                                                                                    international financial
                                                                                    institutions.

The Aid for Trade initiative, which has been a prominent feature in the WTO agenda for the last few years, also
has studied the problem of Trade Finance and its possible solutions. Aid for Trade is a complement to the
current Doha Development Agenda negotiations aiming at reducing and eliminating trade barriers, and helping
developing countries, in particular the least developed, to build the trade capacity and infrastructure they
need.
Objective: use trade opening as an engine of economic growth to fight unemployment and poverty.

								
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