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Page 1: WTO Bali 2013 - Alexandra Nemykh, Hafiz Poladzade

Alexandra Nemykh, Hafiz Poladzade 24.03.2014

Special Issues in Globalization, WTO Bali 2013

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Page 2: WTO Bali 2013 - Alexandra Nemykh, Hafiz Poladzade

Agenda

• Overview • Bali Package • Negotiations with India • Expected Impact on International Trade • What is the next for WTO? • Discussion • References

Special Issues in Globalization, WTO Bali 2013

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Place: Bali, Indonesia Time: 3-6 December 2013 Head of Conference: Trade Minister Gita Wirjawan Members: 159 Countries in focus: developing countries namely India, Thailand, Pakistan, Uruguay.

Special Issues in Globalization, WTO Bali 2013 3

Overview Bali Package

Negotiations with India Expected Impact on International Trade

What is the next for WTO

Place, Time ✓ Purpose of Conference Bali Meeting in Doha Round

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To ease barriers to international

trade

To provide developing

countries with more options

for food security

To boost least-developed

countries` trade

To help the development

more generally

Purposes of the Conference

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Overview Bali Package

Negotiations with India Expected Impact on International Trade

What is the next for WTO

Place, Time Purpose of Conference ✓ Bali Meeting in Doha Round

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Bali meeting is a part of Doha Round negotiation program launched in 2001

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Overview Bali Package

Negotiations with India Expected Impact on International Trade

What is the next for WTO

Place, Time Purpose of Conference Bali Meeting in Doha Round ✓

“Framework” agreed

Ministerial Conference:

Further agreements in Hong Kong

Attempt to break

deadlock

Draft modalities agriculture and non-agriculture products

Bali Ministerial Declaration

and Decisions

Cancun ministerial midterm review: no agreement

Doha Development Agenda launched

Some differences narrowed

2001 2004

2005 2008 2013 2003

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“For the first time in our history, the WTO has truly delivered”. Roberto Azevedo, head of the WTO.

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Overview Bali Package

Negotiations with India Expected Impact on International Trade

What is the next for WTO

Place, Time Purpose of Conference Bali Meeting in Doha Round ✓

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Bali Package • Trade Facilitation

– Agreement on Trade Facilitation — Ministerial Decision — WT/MIN(13)/36 or WT/L/911

• Agriculture – General Services — Ministerial Decision — WT/MIN(13)/37 or WT/L/912

– Public Stockholding for Food Security Purposes — Ministerial Decision — WT/MIN(13)/38 or WT/L/913

– Understanding on Tariff Rate Quota Administration Provisions of Agricultural Products, as Defined in Article 2 of the Agreement on Agriculture — Ministerial Decision — WT/MIN(13)/39 or WT/L/914

– Export Competition — Ministerial Declaration — WT/MIN(13)/40 or WT/L/915

• Cotton – Cotton — Ministerial Decision — WT/MIN(13)/41 or WT/L/916

• Development and LDC issues – Preferential Rules of Origin for Least-Developed Countries — Ministerial Decision — WT/MIN(13)/42 or WT/L/917

– Operationalization of the Waiver Concerning Preferential Treatment to Services and Service Suppliers of Least-Developed Countries — Ministerial Decision — WT/MIN(13)/43 or WT/L/918

– Duty-Free and Quota-Free Market Access for Least-Developed Countries — Ministerial Decision — WT/MIN(13)/44 or WT/L/919

– Monitoring Mechanism on Special and Differential Treatment — Ministerial Decision — WT/MIN(13)/45 or WT/L/920

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Overview Bali Package

Negotiations with India Expected Impact on International Trade

What is the next for WTO

Overview✓ Agreement on Trade Facilitation Agreement on Agriculture Cotton Decision for LDC

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Agreement

on

Trade Facilitation

• To tackle trade barriers

• Liquidate limits on agricultural trade

• Custom duties will replace trade barriers for Agriculture

• Reforms on Bureaucracy (fewer receipts, official documents and certificates)

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Overview Bali Package

Negotiations with India Expected Impact on International Trade

What is the next for WTO

Overview Agreement on Trade Facilitation ✓ Agreement on Agriculture Cotton Decision for LDC

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Agreement

on

Agriculture

• Stockholding for food security: interim ‘due restraint’

• General services list: less controversial

• land rehabilitation

• soil conservation and resource management

• drought management and flood control

• rural employment programs

• issuing land ownership titles and settlement programs.

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Overview Bali Package

Negotiations with India Expected Impact on International Trade

What is the next for WTO

Overview Agreement on Trade Facilitation Agreement on Agriculture ✓ Cotton Decision for LDC

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Cotton

• Market access: Cotton from least developed countries would be given duty-free and quota-free access to the markets of developed countries

• Export subsidies: Any remaining export subsidies on cotton in developed countries would be eliminated immediately

• Domestic support for cotton

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Overview Bali Package

Negotiations with India Expected Impact on International Trade

What is the next for WTO

Overview Agreement on Trade Facilitation Agreement on Agriculture Cotton ✓ Decision for LDC

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Decisions

for

LDC

• a decision on the implementation of duty-free and quota-free market access for LDCs

• a decision on preferential rules of origin for LDCs

• a decision on the operationalization of the LDC services waiver

• a decision in the area of cotton, covering both trade and development assistance aspects

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Overview Bali Package

Negotiations with India Expected Impact on International Trade

What is the next for WTO

Overview Agreement on Trade Facilitation Agreement on Agriculture Cotton Decision for LDC ✓

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Negotiations with India

Requirements by India, which frizzed the process of agreement conduction:

• affordable food for 800 million people

• Permission to subsidize rice and grain

Reached compromise: subsidize food within clear limitations and under close monitoring

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Risk: "The problem is that India could now distort trade… subsidizing products is always bad” However, "Without the compromise, there wouldn't have been an agreement in Bali at all.“ Langhammer

Overview Bali Package

Negotiations with India Expected Impact on International Trade

What is the next for WTO

Overview✓

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Expected Impact on International Trade

This deal could add $1tn to world trade

The potential of growth for World GDP is about one billion dollars

The exportation costs are going to drop by 10-15%

Companies will trade faster and with less bureaucracy

New export opportunities should give a welcome boost to global growth

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Overview Bali Package

Negotiations with India Expected Impact on International Trade

What is the next for the WTO

Overview ✓

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What is the next for WTO?

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Overview Bali Package

Negotiations with India Expected Impact on International Trade

What is the next for the WTO

Overview ✓

Intellectual Property

Trade and Development

WTO Rules

Services NAMA Agriculture

Trade and Environment

Trade Facilitation

Doha Round Issues:

1. Reduce tariffs n defined environmental products (Trade and Environment) 2. Doha Round should change its approach to Emerging Markets and commensurate with their economic size 3. Elimination of obstacle called “misalignment of exchange rates” on world trade 4. Trade in Services Agreement (TISA) negotiations

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Conclusion

Bali Package includes measures about trade, agriculture and development

The measures of taking advantage of the newest technologies will allow companies to trade faster and

with less bureaucracy, thus it will be profitable for poor countries

The boost of world economy by $1 trillion is expected

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Discussion

• In your opinion, what measures should WTO take in order to facilitate the process of future agreement conduction?

• Do you think that all of the WTO`s countries will get the advantages after implementing of all the aspects of Bali package?

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References • Agreement on Trade Facilitation: http://wto.org/english/thewto_e/minist_e/mc9_e/desci36_e.htm

• Public stockholding for food security purposes: http://wto.org/english/thewto_e/minist_e/mc9_e/desci38_e.htm

• WTO agrees global trade deal worth $1tn: http://www.bbc.co.uk/news/business-25274889

• Bali Ministerial Declaration and decisions: http://wto.org/english/thewto_e/minist_e/mc9_e/balipackage_e.htm

• Briefing note: Agriculture negotiations: http://wto.org/english/thewto_e/minist_e/mc9_e/brief_agneg_e.htm#generalservices

• WTO Bali agreement expected to boost growth: http://www.dw.de/wto-bali-agreement-expected-to-boost-growth/a-17278088

• Why the WTO agreement in Bali has finally helped developing countries: http://www.theguardian.com/global-development/poverty-matters/2013/dec/06/wto-agreement-bali-helped-developing-countries-india

• Briefing note: Decisions for least-developed countries: http://www.wto.org/english/thewto_e/minist_e/mc9_e/brief_ldc_e.htm

• The 2013 WTO Bali Ministerial: Prospects and New Horizons: http://www.brookings.edu/blogs/up-front/posts/2013/11/25-wto-bali-ministerial-meltzer

• THE CONSEQUENCES OF BALI PACKAGE ON TRADE: http://www.b4bclub.com/2013/12/the-consequences-of-bali-package-on-trade/

• The WTO Bali Package 1: our topline summary of its effect on the garment trade: http://clothesource.net/opinion/the-wto-bali-package-2-getting-its-impact-on-the-garment-industry-into-perspective/

• Bali WTO: A triumph of multilateralism: http://articles.economictimes.indiatimes.com/2013-12-13/news/45162502_1_ldcs-market-access-trade-facilitation-agreement

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