Law of WTO.

History of global trade regulation:

From GATT to WTO.

Sources:

1) Peter van den Bossche “The Law and Policy of the WTO”

2) Simon Lacey (siminlacey.net)

3) Wto.org

Structure:

1) What is WTO?

2) Main principles

3) History: from GATT to WTO

4) Benefits and challenges.

The WTO as international organization

1) Established on 1 January 1995

2) It comprises 160 members ( politically and economically very diverse countries)

3) It has over 20 countries currently in the cue to join

4) It has a “small” secretariat located on the shores of Lake Geneva, Switzerland ( 600 people)

5) NOT part of United Nations.

THE RULES.

These rules are first and foremost concerned with how gover,ents regulate trade between each other.

There are only concerned with other issue like food safety, protection of the environment, intellectual property rights, investment, etc, to the extent that these issues affect trade between WTO Members.

1945: end of WW2 and reconstruction

1) Lesson learned from WW1. We need to create something about trade. Take care of trade.

2) United nations

3) The two pillars of the Bretton woods system

1948: The HAvanaConference

Final session of the United Nations Conference on Trade and Employment

Results:

1) Charter establishing of International Trade Organization - ITO ( neverretified and entered into force)

2) Set of common rules to govern international trade

a) chapter 5 : general Agrement of tarrifs and Trade

b) application through a Protocol of Provisional Application

3) First round of tarrif negotiations( exchange of concessions)

1948: GATT enters into force

1) 23 Contracting Parties

2) The GATT isn’t an organization but provisional international agreement

3) Temporary secretariat, headed by an executive secretary

1964-67: 6 Round – the Kennedy Round

1) 60 contracting Parties

2) Results:

a) Further tariff reductions

b) For the first time non tariff negotiations

c) In 1965 part 4 on trade and development added to GATT

1986 – 93: 8 Round - the Uruguay Round

-123 contracting Parties

-Results:

a) New tariff concessions

b) non-tariff negotiations

с) new sectors covered

- Trade in Services

- -Trade-related intellectual Property Rights

- WTO. Its all new building.

Final Act;

- Marrakesh agreement

THE WTO.

1) Members. 160 states and customs Territories. Not member of WTO is

2) Observers. Acceding countries (over 20) and international organizations

3) Secretariat - 600 international civil servants

4) Budget – around 197 million CHF

Purpose and Functions of the WTO.

Establish rules for Members trade policy regimes which help international trade to expand with help international trade to expand with a view to raising living standards. (Preamble)

These rules aim to promote non-discrimination, transparency and predictability in the conduct of trade policy. When and how. Should predictable.

The WTO pursues its objective by

- Administering trade agreements

- Acting as a forum for trade negotiations

- Setting trade disputes

- Reviewing national trade policies

- Assisting developing countries in trade policy issues through technical assistance

- Cooperating with other international organizations.

The work of the WTO -Expanding Membership.

- Aspires to be a universal organization

- A club: applicants must negotiate their entry fee

- Over 20 applications at various stages

Benefits of WTO:

- the system helps promote peace

- disputes are handled concstructively

- rules make life easier for all

- freer trade cuts the cost of living

- trade provides more choice of products and qualities

- trade raises incomes

- trade stimulates economic growth

- the basic principles make life more efficient ( for trades)

- governments are shielded from lobbying ( from domestic pressure groups)

- the system encourages accountable governance

Challenges.

1) increasing tendency towards bilateralism and regionalism amongst WTO Members

2) Increasing size of the Organization and out – deted decision making structures

3) Negative perception of the Organization since Seattle Ministerial

4) Stalled negotiations

Legal Principles of International Trade.

Most Favoured Nation under the GATT.

Article 1. every word means something.

Its 1 of the GATT prohibits discrimination between like products originating in, or destined for, different countries.

The principle purpose of the MFN obligation is to ensure equality of opportunity to import from , or to export to, all WTO members. Favour one favour all for the same products. Its doing unconditionally and immediately.

Any advantage.

In brief, the MFN treatment obligation concerns any advantage granted by any Member with respect to:

1) customs duties, other charges on imports and exports and other customs matters

2) Internal taxes

3) Internal regulation affecting the sale, distribution and use of products.

“Like” products.

1) Its only between like products that the MFN treatment obligation applies and that discrimination is prohibited

2) Products that aren’t “like” may be treated differently.

3) Key principle for MFN and NT - majority of disputes.

4) However the GATT doesn’t contain any definition of like products.

Case law criteria

- the characteristics of the product

- their end-use

- their treatment in tariff schedules of other Members.

- consumers tastes and habits.

National Treatment under the GATT.

MNF no discrimination between countries, but this one its different: its about another types of discriminations, we are talking about discrimination between domestic products and foreign products.

1) GATT Art 3 contains detailed language on the national treatment obligations WTO Mambers must comply with

2) Generally speaking, Art 3 prohibits discrimination against imported products

3) It prohibits Members from treating imported products less favorably than like products once the imported product has entered the domestic market.

Exceptions to MFN:

1) GATT Article 24 which allows members to afford more preferential treatment to countries with which they have entered into a free trade agreement or a customs union

2) GATT Article 20 lists the general exceptions such as public morals, human, animal or plant life or health and other public policy considerations

3) GATT 21 which gives Members freedom to take any measure necessary in the interest of its national security.

4) GATT 6 , ADA and ASCM ( trade remedies)

Transparency and Predictability.

1) Goals WTO:

a) establish transparent and predictable rules for traders

b) create an environment in which rights and legitimate expectations can be enforced

2) one way in which the first of these objectives is pursued is by the transparency obligations and notification requirements the WTO imposes on its Members

3) the second of these objectives is pursued through a binding and enforceable dispute settlement mechanism.

Date: 2015-01-29; view: 1047