WTO issues in EIF by wulinqing


									Challenges of WTO accession and
  participation for Asian LDCs

            EIF Regional Asian Workshop
              21-23 June, Kathmandu

      Maika Oshikawa
      LDC Unit, WTO
 WTO’s role in the EIF process
 Challenges facing Asian LDCs in WTO:
  How the EIF can help address them?
    – WTO Accessions
    – Trade policy reviews
    – Implementation of WTO Agreements
    – Participation in DDA negotiations
    – Aid for Trade
            WTO’s role in EIF (1)
   One of the six core agencies since 1997
   Why? LDCs are not well equipped to reap the full
    benefits which WTO can offer i.e market access
    opportunities and non-discriminatory rules; WTO needs
    to work with others
   LDC Unit acted as the IF Secretariat from 2000 to 2008;
    since then, WTO administratively houses the EIF
    Executive Secretariat
   Under EIF, WTO’s engagements are:
    – Contributions to the DTIS process on WTO-related issues, e.g.
      TPRs (trade data), Accessions, WTO implementation, DDA issues
    – Take account of and implement, as appropriate, DTIS Action
      Matrices within the work of the WTO, e.g. WTO Technical
      Assistance, STDF, Aid for Trade
          WTO’s role in EIF (2)
   Provide the political platform
    – IF was born out of a WTO ministerial in 1996,
      and follow-ups, implementation and
      enhancement of IF/EIF have been ministerial
      mandates contained in WTO Ministerial
    – IF/EIF governance bodies (Steering
      Committee and the Board) meet in WTO
    Challenges facing Asian LDCs in
 WTO Accession: Afganistan, Bhutan, Lao
  PDR, Yemen
 Post Accession (TPRs and notifications):
  Cambodia and Nepal
 LDC graduation: Maldives
 Implementation of WTO Agreements and
  participation in DDA negotiations: All LDCs
    Accession (1): State of play
 Asian LDCs in accession: Afganistan (2004),
  Bhutan (1999), Lao PDR (1997) and Yemen
  (2000); all together 12 LDCs are in accession,
  representing 40% of all on-going accessions
 Recently acceded Asian LDCs: Nepal and
  Cambodia in 2004, which represent the only
  LDCs that joined WTO since 1995 (together with
  Cape Verde in 2008)
 LDC Accessions are high priority for membership
  e.g. Doha, 2002 General Council Guidelines,
  Dialogues in 2009 and 2010, LDC-IV in 2011
       Accession (2): Challenges
   Challenges facing LDCs
    – Evidence: the total time taken to conclude negot.
        3 RA LDCs: 11 years and 2 months (average)
        25 RAMs: 8 years and 5 months (average)
    – Each accession unique, but challenges include:
        Technical complexity of accession negotiations
        Pressure of simultaneously negotiating bilateral agreements
         & multilateral commitments
        Human and institutional capacity constraints
        Constructing and sustaining a domestic coalition for WTO
        Effective inter-governmental coordination
        Non-Residency and geographical distance
        Weighing the benefits of membership
    Accession (3): Interface with EIF
 DTIS: WTO accession chapter included in DTIS and
  accession needs elaborated in Action Matrix – Laos
  (2006), Cambodia (2001), Nepal (2004) and Yemen
  (2003): WTO involvement
 Pre-DTIS (Afganistan & Bhutan): explicit links made in
  support of accession process
 Tier 1: institutional CB support (HR, awareness building,
  coordination) including for accession
 Post-DTIS
    – Window II: Laos – CB and technical support for accession
    – WTO/ITC programme on trade capacity building for acceding
      LDCs, focusing on awareness raising in the private sector
    Accession (4): Interface with EIF
   EIF framework can be used for dialogue
    and coordination of accession TA
    – Overlapping membership between NSC and
      WTO Accession Committee (often with the
      same Focal Point)
    – Same development partners (info. sharing)
   Synergies are not automatic, depending
    on timing of two exercises, as well as
    country ownership
            Trade Policy Reviews
   LDC (and most other) Members subject to TPR
    exercise every 6 years
    –   Bangladesh: 1994, 2000, 2006
    –   Cambodia: 2011
    –   Maldives: 2002, 2009
    –   Nepal: 2011
   Objective: aims to achieve greater transparency
    and understanding of trade policies through
    collective appreciation of their impact on the
    MTS - not a compliance checking exercise, but
    only a transparency exercise
            TPRs in practice
 Forum for discussion on trade policies and
  broader economic policies with WTO Members
 Strengthens in-country inter-ministerial
  coordination and discussion on trade policies
  and other trade-related issues
 New feature/emphasis: an instrument to identify
  and assess TA/CB needs and AFT
 Notifications: difficulties noted in all LDC
  reviews, but encouraging the use of TPR process
  to submit notifications – TA to be provided upon
    TPRs - Interface with EIF (1)
   WTO’s efforts to programme LDC TPRs as part
    of, or in parallel to, DTIS process to maximise
    synergies on trade discussions
    – Mauritania (2001/2), Lesotho (2002/3), Burundi
      (2002/3), Angola (2005/6), Solomon Islands (2008/9)
 Desired but often difficult to match different
  timings of the two exercises
 Upcoming TPRs for Cambodia and Nepal in
  2011: will take account of the DTIS updates
    TPRs - Interface with EIF (2)
 LDC TPRs used as a tool for TA needs
  assessment on WTO issues since 2000 and
  wider Aid for Trade since 2009 (following the
  Task Fore recommendations)
 Additional chapter on AFT introduced to the 4-
  chapter Secretariat report
    – TRTA/CB needs for WTO implementation and
    – AFT strategy (national & regional)
    – Assessment of trade mainstreaming at three levels
    – Monitoring and evaluation framework
   Joint efforts with the EIF Secretariat
    Challenges: WTO implementation
   Typical areas of implementation difficulties
    – Agreement on Customs Valuation
    – TBT and SPS Agreements
    – TRIPS Agreement
   Difficulties involved
    – Alignment of legislation and regulations
    – Software: training of officials
    – Hardware: computers, laboratory equipments,
      labs & offices
Implementation: Interface with EIF
   Two main channels:
    – Identification of the needs related to WTO
      implementation in DTIS
       To date, issues related to customs, SPS and TBT
       How about TRIPS?
    – Addressing the identified needs with EIF
      funding or other funding channels
       STDF
      TRIPS Needs Assessment (1)

 TRIPS Council Decision of Nov 2005 to extend
  the transition period for TRIPS implementation
  until July 2013 (IP/C/40)
 Para 2 : “With a view to facilitating targeted
    technical and financial cooperation programmes,
    all the LDC Members will provide to the Council
    for TRIPS ... as much information as possible on
    their individual priority needs for technical and
    financial cooperation in order to assist them
    taking steps necessary to implement the TRIPS
    TRIPS Needs Assessment (2)
   Toolkit developed by ICTSD: not only focus on TRIPS
    implementation but also assist LDCs in defining a
    broader IP policy framework and its links to the country
    development strategy
   Needs Assessments conducted in Uganda, Sierra Leone,
    Bangladesh and Rwanda to date
   More info available on WTO TRIPS page and the
    upcoming regional workshop in Dhaka end July
   TRIPS in the EIF
    – Inclusion of TRIPS in DTIS or updates: so far, no LDCs have
      included the DTIS
    – Using the EIF mechanism, especially the donor coordination
      framework to identify interested donors and/or Tier 2 to finance
      some identified needs
                           STDF (1)
   SPS-related constraints are identified in DTIS as an
    obstacle to LDCs’ exports
   STDF (Standard Trade Development Facility) as vehicle
    to address SPS-related constraints
    – Aims:
         To enhance expertise and capacity to analyse and implement int’l
          SPS standards;
         To promote awareness raising on SPS issues, coordination among
          TA providers, fund mobilisation, dissemination of good practices on
          SPS-related TA;
    – Partner agencies: FAO, OIE, World Bank, WHO and WTO
    – Its own trust fund
    – Strong emphasis on LDCs, especially synergies with EIF
                          STDF (2)
   Project development
    – Project preparation grants ≤ $30,000
    – Elaboration of projects from the needs identified in
        6 PPGs directly drawn from DTIS (out of 24 PPGs
         funded for LDCs)
   Project funding
    – Funding or co-funding in the range of $150,000 to
        4 projects developed based on DTIS (including one in Nepal)
        One project (Senegal) being considered for co-financing between
         STDF and Tier 2
    Challenges: DDA participation
 Lack of clear strategy for participating in DDA
 Identification of interests (issues/areas, sectors)
 Difficulties of impact assessment
 Difficulties of advancing issues of interest
    – divergence of views within group
    – alliances with other groupings
   Lack of coherence and coordination between
    DDA and regional FTA negotiations
        DDA: Interface with EIF (1)
   DTIS/updates as a tool to identify issues and interests in
    the DDA negotiations
    – Services: LDC Modalities adopted in 2003
         Currently, negotiations on a services waiver which will provide
          create an enabling environment for preferential treatments for
          services and services providers for LDCs
         Now urgently need to identify sectors and sub-sectors of interest,
          including on Mode 4, in which LDC seek preferential treatments
    – NAMA: explicit call to use EIF/AFT to address SSCs and the
      challenges arising from preference erosion
   DTIS/updates as a tool to identify/assess issues for Doha
    conclusion and post-Doha?
    – Scheduling of market access commitments?
    – Ability to implement new rules?
     DDA: Interface with EIF (2)
   EIF process as a mechanism to access to
    the donor network and funding
    – Trade Facilitation Needs Assessment
        Objective: to help understanding of the proposed
         trade facilitation measures and to assist with
         preparation of implementation
        All Asian LDCs, except Bhutan, conducted NAs in
        Linking with the DTIS/EIF process?
               Aid for Trade (1)
   EIF is AFT in action for LDCs
    – the mechanism through which LDCs can
      access additional AFT funding
        Trade mainstreaming
        Identification of trade priorities
        Coordination of the trade agenda
    – DTIS can serves as the platform to develop
      an AFT strategy
    – LDCs can channel their demand for AFT
      through EIF process
                Aid for Trade (2)
   Roles of the WTO in Aid for Trade
    – Ministerial mandate from Hong Kong 2005
    – WTO to play a catalyst role
        Awareness raising by providing the forum for discussion and
         information exchange at periodic CTD sessions, annual AFT
         debate at General Council & Global Reviews (2007, 2009)
        The Work Programme 2010-11 until the 3rd Global Review
         (2012), focusing on resource mobilisation, mainstreaming,
         implementation with focus on regional dimension, M&E and
         greater involvement of the private sector
   EIF process can help LDCs address the
    challenges facing Asian LDCs in areas of
    accession, implementation and participation in
    DDA negotiation
    – Need for mainstreaming WTO challenges into the EIF
      process through broad based consultations, including
    – Need for mainstreaming the EIF to WTO issues
   Any ideas for improving WTO participation in EIF
Thank you for your attention


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