WTO

Question 1

WTO in general

Answer 1

Founded in 1995

160 MS

Question 2

Aim of WTO

Answer 2

to liberalize and expand international trade aiming at increasing the standard of living in the MS

Question 3

Trade per capital

Answer 3

high: US, Europe, australia, canada

concession with hunger

Question 4

General principles of WTO

Answer 4

• non-discrimination
• most-favored national treatment
• equal treatment of domestic and foreign goods

Liberalization: all barriers to trade shall be reduced reciprocally

Exception: GATT art. XXVI: customs unions and free trade areas are allowed if trade restriction for third parties after formation are not higher than before

Question 5

Decision-making process
many decision-making body:
how often

Answer 5

ministerial conference
every 2 years
each country has one vote

Question 6

role of EU and USA in WTO-negotiation so far

Answer 6

strongest negotiating powers
present in all negotiation, including all working groups, committees and mini ministerial
advantage in the beginning: expert assessed possible impacts of agreements and suggested modification in agreements

Question 7

problems for developing counties in the beginning

Answer 7

• Did not have enough experts to assess the impacts of agreements
• were excluded from many important negotiation, not present in many working-groups, neither in mini-ministerial, excluded from many informal talks
• Vulnerable to economic pressures

Question 8

Dispute settlement undestranding

Answer 8

each country can file a case against other country if it believes the other country is not respecting WTO rules

DSU decides whether WTO rules are violated and determines a time frame to change the non compliant trade measures and possible sanction if the losing country does not change the trade measure in question

Each country has to pay its own costs

Question 9

Dispute settlement undestranding:

Consequences for economically strong countries like EU, USA, Canada, Australia, Japan

Answer 9

they can afford to pay the best advocates
there are able to implemented effective trade sanctions against small counties
they can afford to live with sanction, if they lose a case and don’t want to change the trade measure in question

Question 10

Dispute settlement undestranding

problem for DC

Answer 10

often cannot afford to pay the costs of dispute settlement proceeding

small counties are often not able to implement affective trade action against bi counties

DC often cannot afford to like with sanction if they lose a case

Question 11

agreement of agriculture

Aim

Answer 11

expanding international agricultural trade by
-reducing barriers to trade
reducing domestic agricultural support
-reducing export subsidies

Question 12

agreement of agriculture

reality in EU and USA

Answer 12

• high barriers to trade
• high domestic agricultural support
• export subsidies of EU and measures with similar effect in the USA

Question 13

agreement of agriculture

reality in many DC

Answer 13

• low barriers to trade
• low domestic agricultural support
• no export subsidies or measures with similar effect

Question 14

agreement of agriculture

WTO rules

Answer 14

reciprocal reduction of all barriers to trade
no new barriers to trade may be introduced
in agriculture: 1. conversion of non-tariff trade barrier into tariff equivalent 2. determination of bound levels

Question 15

agreement of agriculture

outcome of negotiations

Answer 15

reduction of trade barriers

domestic subsidies divided into different categories
-amber box: to be reduced

• blue box: subsidies related to programs aiming at reducing production: allowed
• green box: subsidies related to environmental protection, research, consulting, infrastructure, marketing: allowed

limited progress in reducing domestic subsidies and export subsidies and similar measures

introduction of “sensitive products” for IC for which exceptions are allowed (example: sugar)

Question 16

Role of EU/US in agricultural negotiations

Answer 16

EU/US advocate protection of own agriculture
EU wants to continue to have the possibility of subsidizing exports of excess production, USA measures with similar effect
EU advocate exceptions from liberalization in case of: Environmental protection, animal welfare, precaution.

Question 17

agreement of agriculture

problem for many developing countries

Answer 17

• DC cannot support their own agriculture
• Farmers in DC must try to compete with subsidized agricultural export in IC
• DC would like to introduce further measures to protect food sovereignty but they don’t have the negotiation power to do so
• DC want free market rules to be applied

Question 18

TRIPS agreement

Agreement on trade related aspects of intellectual property rights

Answer 18

-Obliges WTO members to introduce / protect copy right, trademarks, geographical indication, patent right and other intellectual property rights

EU/US interest in strong intellectual property protection, DC are not interested

new and problematic for DC

Question 19

introduction of patent or other IP protection on

Answer 19

Pharmaceuticals
seeds
Genetic resources

Question 20

patents must be available:

Answer 20

for any invention (product, processes)

in all field of technology, provided that:

• they are new
• involve an inventive step and
• are capable of industrial application

Question 21

protection period:

Answer 21

20 years

exception are possible for pharmaceuticals like in case of emergency

Question 22

seeds

Answer 22

problem for DC
before they didn’t protect plant by patens

subsistence farmers are dependent of farmers right if not -> seed more expensive, more difficult to feed onwself / family

Question 23

GATS agreement
general agreement on trade in services
negotiation

Answer 23

request and offer (ask a specific counties to open up a specific service sector, offer to open us service sector oneself