WTO Flashcards
WTO in general
Founded in 1995
160 MS
Aim of WTO
to liberalize and expand international trade aiming at increasing the standard of living in the MS
Trade per capital
high: US, Europe, australia, canada
concession with hunger
General principles of WTO
- 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
Decision-making process
many decision-making body:
how often
ministerial conference
every 2 years
each country has one vote
role of EU and USA in WTO-negotiation so far
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
problems for developing counties in the beginning
- 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
Dispute settlement undestranding
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
Dispute settlement undestranding:
Consequences for economically strong countries like EU, USA, Canada, Australia, Japan
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
Dispute settlement undestranding
problem for DC
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
agreement of agriculture
Aim
expanding international agricultural trade by
-reducing barriers to trade
reducing domestic agricultural support
-reducing export subsidies
agreement of agriculture
reality in EU and USA
- high barriers to trade
- high domestic agricultural support
- export subsidies of EU and measures with similar effect in the USA
agreement of agriculture
reality in many DC
- low barriers to trade
- low domestic agricultural support
- no export subsidies or measures with similar effect
agreement of agriculture
WTO rules
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
agreement of agriculture
outcome of negotiations
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)
Role of EU/US in agricultural negotiations
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.
agreement of agriculture
problem for many developing countries
- 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
TRIPS agreement
Agreement on trade related aspects of intellectual property rights
-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
introduction of patent or other IP protection on
Pharmaceuticals
seeds
Genetic resources
patents must be available:
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
protection period:
20 years
exception are possible for pharmaceuticals like in case of emergency
seeds
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
GATS agreement
general agreement on trade in services
negotiation
request and offer (ask a specific counties to open up a specific service sector, offer to open us service sector oneself
