Upload
chase
View
44
Download
0
Tags:
Embed Size (px)
DESCRIPTION
MARKET ACCESS Issues. Samer Seif El-Yazal Counsellor Institute for Training and Technical Cooperation World Trade Organization. Structure of this presentation. Market Access in the GATT/WTO context: basic elements and definitions Introduction to NAMA negotiations - PowerPoint PPT Presentation
Citation preview
MARKET ACCESS IssuesMARKET ACCESS Issues
Samer Seif El-YazalSamer Seif El-YazalCounsellorCounsellorInstitute for Training and Technical Institute for Training and Technical CooperationCooperationWorld Trade OrganizationWorld Trade Organization
22
Structure of this Structure of this presentationpresentation
I.I. Market Access in the GATT/WTO Market Access in the GATT/WTO context: basic elements and context: basic elements and definitionsdefinitions
II.II. Introduction to NAMA negotiationsIntroduction to NAMA negotiations
III.III. Overview of Customs and Trade Overview of Customs and Trade Administration AgreementsAdministration Agreements
IV.IV. Market Access – Russian Market Access – Russian FederationFederation
V.V. Notification obligationsNotification obligations
I.I. MARKET ACCESS IN MARKET ACCESS IN THE GATT/WTO THE GATT/WTO
CONTEXT: CONTEXT: BASIC ELEMENTS AND BASIC ELEMENTS AND
DEFINITIONSDEFINITIONS
44
1. What is Market Access?1. What is Market Access?
In the WTO framework, the In the WTO framework, the term stands for the totality of term stands for the totality of government-imposedgovernment-imposed conditions conditions (regulations/measures) under (regulations/measures) under which a product may enter a which a product may enter a country under non-country under non-discriminatory conditions.discriminatory conditions.
55
1. What is Market Access?1. What is Market Access?
Market access in the WTO Market access in the WTO sense is regulated most of the sense is regulated most of the time through border measures time through border measures including, inter alia, tariffs, including, inter alia, tariffs, tariff rate quotas, quantitative tariff rate quotas, quantitative restrictions and other non-tariff restrictions and other non-tariff measures. measures.
66
Predictable and growing access to Predictable and growing access to markets for goods and services is markets for goods and services is one of the goals of the WTOone of the goals of the WTO
Basic Principles: Non discrimination Basic Principles: Non discrimination (NT/MFN) and transparency(NT/MFN) and transparency
Predictable:Predictable: binding commitments binding commitments Growing accessGrowing access: periodic “rounds” : periodic “rounds”
of negotiationsof negotiations
2. GATT/WTO: ensuring MA2. GATT/WTO: ensuring MA
77
3. Types of MA barriers in trade in 3. Types of MA barriers in trade in goodsgoods
In the GATT/WTO In the GATT/WTO framework there framework there are 2 basic types are 2 basic types of barriers to trade of barriers to trade in goods:in goods:
1.1. TariffsTariffs
2.2. Non Tariff Non Tariff BarriersBarriers
88
4. Basic GATT/WTO framework4. Basic GATT/WTO framework
– Tariffs should normally be the only Tariffs should normally be the only instrument used to protect domestic instrument used to protect domestic industries industries
– Quantitative restrictions Quantitative restrictions (bans/restrictions) are generally (bans/restrictions) are generally prohibited (GATT Art. XI)... but they prohibited (GATT Art. XI)... but they could be allowed under certain could be allowed under certain circumstancescircumstances
– Tariffs should be transparent, Tariffs should be transparent, predictable and stable predictable and stable
– Tariffs are included in “Schedules of Tariffs are included in “Schedules of concessions”concessions”
99
5. Tariffs: duty types5. Tariffs: duty types
Duty typeDuty type ExampleExample
Ad valoremAd valorem 5%5%
SpecificSpecific $5 per Kg.$5 per Kg.
CompoundCompound 10% + $2 per Kg10% + $2 per Kg
MixedMixed 10% 10% oror $2 per $2 per Kg, Kg,
NA V
1010
6. Tariffs and the GATT6. Tariffs and the GATT
Security and Security and predictability in predictability in trade in goods are trade in goods are achieved through achieved through the commitments the commitments embodied in the embodied in the ""bindingbinding” of ” of tariffs. tariffs.
1111
6. Tariffs and the GATT6. Tariffs and the GATT
A "A "boundbound" tariff is a " tariff is a tariff in respect of tariff in respect of which there is a legal which there is a legal commitment not to commitment not to raise it beyond a raise it beyond a certain levelcertain level
A binding is a A binding is a “ceiling”, not a “floor”“ceiling”, not a “floor”
1212
7. GATT Article II7. GATT Article II
““a. Each contracting party shall accord a. Each contracting party shall accord to the commerce to the commerce of the other of the other contracting partiescontracting parties treatment treatment no less no less favourablefavourable than that provided for in the than that provided for in the appropriate Part of the appropriate appropriate Part of the appropriate Schedule annexed to this agreement.”Schedule annexed to this agreement.”
1313
7. GATT Article II7. GATT Article II
Treatment Treatment cancan be more favourable: be more favourable:
bound tariffsbound tariffs vs. vs. applied tariffsapplied tariffs
Other tariff treatments are also Other tariff treatments are also possible due to, possible due to, inter aliainter alia, RTAs, CUs , RTAs, CUs and non-reciprocal arrangements and non-reciprocal arrangements ( “enabling clause”)( “enabling clause”)
1414
8. Other duties and charges 8. Other duties and charges (ODCs)(ODCs)
Include all taxes levied on imports in Include all taxes levied on imports in addition to the customs duties which are addition to the customs duties which are not in conformity with Article VIII (Fees not in conformity with Article VIII (Fees and Formalities) of GATT 1994. and Formalities) of GATT 1994.
GATT Article II:1 (b)GATT Article II:1 (b) stipulates that the stipulates that the products described in the schedules products described in the schedules ""shall be exempt from other duties or shall be exempt from other duties or charges of any kind imposed in excess of charges of any kind imposed in excess of those imposed at the time a concession those imposed at the time a concession was grantedwas granted".".
1515
8. Other duties and charges 8. Other duties and charges (ODCs)(ODCs)
Understanding on the Interpretation of Understanding on the Interpretation of Article II:1 (b): Members must include in Article II:1 (b): Members must include in Schedules any other duty or charge Schedules any other duty or charge existing on by 15 April 1994. existing on by 15 April 1994.
If not notified by then, then eliminated. If not notified by then, then eliminated.
1616
9. “Schedules” of concessions9. “Schedules” of concessions
Tariff bindings and other concessions Tariff bindings and other concessions are contained in the “Schedules of are contained in the “Schedules of concessions” (GATT Article II)concessions” (GATT Article II)
Each Member of the WTO has its own Each Member of the WTO has its own Schedule, identified by a roman Schedule, identified by a roman numbernumber
1717
9. “Schedules” of concessions9. “Schedules” of concessions
ExceptExcept customs unions where two customs unions where two or more Members have one single or more Members have one single schedule for a (i.e. European schedule for a (i.e. European Communities)Communities)
1818
GA
TT 1
99
4G
ATT 1
99
4
10. Structure of a Member's Schedule10. Structure of a Member's ScheduleS
chedu
le
Sch
edu
le
of
Con
cess
ion
sof
Con
cess
ion
s
Membe
r x
Part I
Part II
Part III
Part IV
Section I
I.A
I.B
Section II
Preferential ratesPreferential rates
Non-tariff ConcessionsNon-tariff Concessions
Agricultural SubsidiesAgricultural Subsidies
MFN RatesMFN Rates
Duties (Tariffs and ODCs)
Tariff Rate Quotas (TRQs)
Agricultural Products
Other Products
1919
Why “non-agricultural” Why “non-agricultural” products?products? Agricultural Agricultural
products are products are defined in Annex 1 defined in Annex 1 of the Agreement of the Agreement on Agricultureon Agriculture
Non Agricultural Non Agricultural products are all products are all the “other the “other products”products”
2020
Schedule M – Member XSchedule M – Member XThis Schedule is authentic only in the English languageThis Schedule is authentic only in the English language
PART I – MOST-FAVOURED NATION TARIFFPART I – MOST-FAVOURED NATION TARIFFSECTION II – SECTION II – Other ProductsOther Products
Tariff item number
Description of products
Base rate of duty (U/B)
Bound rate of duty
Implem. period
INR ODCs
1 2 6 4 5 6 7
0301 LIVE FISH
030110 - ornamental fish 10$ /Tonne (U)
$5 / Tonne 1995/2004 5%
030191 -- trout (salmo trutta, salmo gairdneri, salmo clarki, salmo agua bonita, salmo gilae)
100% 50% 1995
030192 -- eels (anguilla spp.) 66% (U) 50% or $90, w.i.t.h.
1995/2004 $5 per Kg.
030193 -- carp 66% (U) 50% 1995/2004
030199 -- other: 66% (U) (U) 2000
2121
11. Changing a concession 11. Changing a concession
1.1. Tariff negotiations Tariff negotiations ((GATT Article XXVIII GATT Article XXVIII bisbis)) **19571957
2.2. Rectifications and modificationsRectifications and modifications
3.3. Renegotiations (GATT Article XXVIII)Renegotiations (GATT Article XXVIII)
4.4. Customs Union (GATT Article XXIV)Customs Union (GATT Article XXIV)
5.5. OtherOtheri.i. Implementation of the HSImplementation of the HS
ii.ii. Transposition to HS92, HS96, HS2002, HS2007Transposition to HS92, HS96, HS2002, HS2007……
All of them have special procedures!All of them have special procedures!
Need to be “certified” in order to be legally bindingNeed to be “certified” in order to be legally binding
2222
Binding coverage of Non AG Binding coverage of Non AG prod.prod.
50 Members have 100% binding 50 Members have 100% binding coveragecoverage (EC-25 counted as one)(EC-25 counted as one)
29 Members between 90% and 29 Members between 90% and <100%<100%
10 Members between 50% and < 90%10 Members between 50% and < 90% 10 Members between 25% and < 50%10 Members between 25% and < 50% 23 Members between 0.1% and < 23 Members between 0.1% and <
25%25%
NOTE: Agriculture already 100% NOTE: Agriculture already 100% bindingbinding
Part II. NAMA Negotiations:Part II. NAMA Negotiations:Paragraph 16 of the Doha Paragraph 16 of the Doha Ministerial DeclarationMinisterial Declaration
““116. 6. We agree to negotiations which shall aim, We agree to negotiations which shall aim, by modalities to be agreedby modalities to be agreed, to reduce or as , to reduce or as appropriate eliminate tariffs, including the appropriate eliminate tariffs, including the reduction or elimination of tariff peaks, high reduction or elimination of tariff peaks, high tariffs, and tariff escalation, as well as non-tariff tariffs, and tariff escalation, as well as non-tariff barriers, in particular on products of export barriers, in particular on products of export interest to developing countries.interest to developing countries.””
““Product coverage shall be comprehensive and Product coverage shall be comprehensive and without a priori exclusions.without a priori exclusions.””
““The negotiations shall take fully into The negotiations shall take fully into account the special needs and interests account the special needs and interests of developing and least-developed of developing and least-developed country participants, including through country participants, including through less than full reciprocity in reduction less than full reciprocity in reduction commitmentscommitments, in accordance with the , in accordance with the relevant provisions of Article XXVIII bis of relevant provisions of Article XXVIII bis of GATT 1994 and the provisions cited in GATT 1994 and the provisions cited in paragraph 50 below.paragraph 50 below.””
Paragraph 16 of DMD (cont.)Paragraph 16 of DMD (cont.)
2525
Basic framework for negotiating tariff concessions
Defining the rules of the gameGATT Article XXVIII bis
Tariff reduction: which option? Request/Offer? Sectoral? Formula? If so, which one?
New bindings: how many? at what level?
Implementation period S&D / Flexibility provisions
Members prepare and submit offers
Multilateral verification Final Schedules of concessions
Mod
aliti
es
Post-
mod
aliti
es
2626
DDA (NAMA): Sequence of main DDA (NAMA): Sequence of main eventsevents
2001 2001 ->-> Doha Ministerial Declaration (Paragraph 16)Doha Ministerial Declaration (Paragraph 16)
July 2002 ->July 2002 -> Work program is adoptedWork program is adopted(deadline for modalities = 31 May 2003)(deadline for modalities = 31 May 2003)
May 2003 ->May 2003 -> Chairman’s Draft Elements for Modalities Chairman’s Draft Elements for Modalities (TN/MA/W/35 i.e. “Girard Text”)(TN/MA/W/35 i.e. “Girard Text”)
September 2003 ->September 2003 -> Cancun Ministerial fails to adopt a Cancun Ministerial fails to adopt a “framework” on NAMA “framework” on NAMA (JOB(03)152/Rev.2)(JOB(03)152/Rev.2)
July 2004 ->July 2004 -> “July Package” adopts the NAMA Framework “July Package” adopts the NAMA Framework with initial elements with initial elements (Annex B of WT/L/579) (Annex B of WT/L/579)
December 2005 ->December 2005 -> Hong Kong Ministerial clarified add. Hong Kong Ministerial clarified add. elements elements
20072007 Chairman's Introd. to the Draft NAMA Modalities Chairman's Introd. to the Draft NAMA Modalities (JOB(07)/126)(JOB(07)/126)
20082008 Third revision of draft modalities Third revision of draft modalities (TN/MA/W/103/Rev.2)(TN/MA/W/103/Rev.2) July Mini-ministerialJuly Mini-ministerial Fourth revision of draft modalities Fourth revision of draft modalities (TN/MA/W/103/Rev.3)(TN/MA/W/103/Rev.3)
Part III. Customs and trade Part III. Customs and trade administration administration
VAL: Customs valuation VAL: Customs valuation
PSI: Pre-shipment inspectionPSI: Pre-shipment inspection
RO: Rules of originRO: Rules of origin
LIC: Import licensing LIC: Import licensing proceduresprocedures
VAL: BackgroundVAL: Background
Specific and Specific and ad-valoremad-valorem customs customs dutiesduties
Short historical overviewShort historical overview
– Article VII GATTArticle VII GATT
– Brussels definition of valueBrussels definition of value
– Tokyo Round Valuation CodeTokyo Round Valuation Code
VAL: The WTO AgreementVAL: The WTO Agreement
The new AgreementThe new Agreement
Basic principle: Transaction valueBasic principle: Transaction value
The 6 MethodsThe 6 Methods
Other provisionsOther provisions
VAL: Method 1 - VAL: Method 1 - Transaction valueTransaction value Definition of transaction valueDefinition of transaction value
Conditions to be fulfilledConditions to be fulfilled
– Evidence of saleEvidence of sale
– No restriction on the disposition or useNo restriction on the disposition or use
– Not subject to additional conditionsNot subject to additional conditions
– Full prices, unless...Full prices, unless...
– Sufficient information for adjustmentsSufficient information for adjustments
– Buyer and seller not related, otherwise ...Buyer and seller not related, otherwise ...
– Related partiesRelated parties
Cases where Customs Administrations have Cases where Customs Administrations have reasons to doubt the truth or accuracy of the reasons to doubt the truth or accuracy of the declared valuedeclared value
VAL: Methods 2 and 3VAL: Methods 2 and 3
Method 2: Transaction value of Method 2: Transaction value of identical goods (Article 2)identical goods (Article 2)
– ExceptionsExceptions
Method 3: Transaction value of Method 3: Transaction value of similar goods (Article 3)similar goods (Article 3)
Other methodsOther methods
PSI: Background and PSI: Background and overviewoverview
Functions of PSIFunctions of PSI
– conformity of goods with the terms conformity of goods with the terms of the sales contractof the sales contract
– verification of invoice priceverification of invoice price
Definitions Definitions
ObjectivesObjectives
PSI: Obligations of user PSI: Obligations of user MembersMembers
Non-discrimination (Article 2.1) Non-discrimination (Article 2.1) Governmental requirements (Article 2.2)Governmental requirements (Article 2.2) Site of inspection (Article 2.3)Site of inspection (Article 2.3) Standards (Article 2.4)Standards (Article 2.4) Transparency (Articles 2.5 to 2.8)Transparency (Articles 2.5 to 2.8) Protection of confidential business information Protection of confidential business information
(Articles 2.9 to 2.13)(Articles 2.9 to 2.13) Conflicts of interest (Article 2.14)Conflicts of interest (Article 2.14) Delays (Articles 2.15 to 2.19)Delays (Articles 2.15 to 2.19) Price verification (Article 2.20)Price verification (Article 2.20) Appeals procedure (Article 2.21)Appeals procedure (Article 2.21) Derogation (Article 2.22Derogation (Article 2.22))
PSI: Obligations of exporter PSI: Obligations of exporter MembersMembers
Non-discrimination (Article 3.1)Non-discrimination (Article 3.1)
Transparency (Article 3.2)Transparency (Article 3.2)
Technical Assistance (Article 3.3)Technical Assistance (Article 3.3)
PSI: Independent review PSI: Independent review proceduresprocedures
Purpose of the Independent Review Purpose of the Independent Review ProceduresProcedures
Independent EntityIndependent Entity
RO: BackgroundRO: Background
DefinitionDefinition
Where are rules of origin used?Where are rules of origin used?
No specific provision in GATTNo specific provision in GATT
Interest in the harmonization of rules of originInterest in the harmonization of rules of origin
– Increased number of preferential trading arrangementsIncreased number of preferential trading arrangements
– Increase in the number of origin disputesIncrease in the number of origin disputes
– Increased use of anti-dumping lawsIncreased use of anti-dumping laws
RO: The UR AgreementRO: The UR Agreement
IntroductionIntroduction
Aims of the AgreementAims of the Agreement
– harmonizationharmonization
– general principlesgeneral principles
Coverage: all non-preferential rules of originCoverage: all non-preferential rules of origin
InstitutionsInstitutions
– WTO Committee on Rules of OriginWTO Committee on Rules of Origin
– WCO Technical CommitteeWCO Technical Committee
RO: HarmonizationRO: Harmonization
The Harmonization Work Programme (HWP)The Harmonization Work Programme (HWP)
– Definitions of goods being wholly obtainedDefinitions of goods being wholly obtained
– Last substantial transformationLast substantial transformation
– Change of tariff headingChange of tariff heading
– Supplementary criteriaSupplementary criteria
Overall architectural designOverall architectural design
Results of the Harmonization Work ProgrammeResults of the Harmonization Work Programme
RO: Other provisionsRO: Other provisions
Disciplines during the transition Disciplines during the transition periodperiod
Disciplines after the transition periodDisciplines after the transition period
Consultation and dispute settlementConsultation and dispute settlement
Preferential rules of originPreferential rules of origin
LIC: Background and LIC: Background and definitiondefinition
DefinitionDefinition
Basic obligationsBasic obligations
– GATT Article VIIIGATT Article VIII
– GATT Article XGATT Article X
From the Tokyo Round Code to the From the Tokyo Round Code to the Uruguay Round AgreementUruguay Round Agreement
LIC: General principlesLIC: General principles
Main objectivesMain objectives
General provisionsGeneral provisions
– Neutral application, fair and Neutral application, fair and equitable administrationequitable administration
– Publication of rules and proceduresPublication of rules and procedures
– Simple forms and proceduresSimple forms and procedures
– Other principlesOther principles
LIC: Automatic import LIC: Automatic import licensinglicensing
DefinitionDefinition
ConditionsConditions
Main provision for automatic import licensingMain provision for automatic import licensing
– Approval of application within 10 working daysApproval of application within 10 working days
– UseUse
LIC: Non-automatic import LIC: Non-automatic import licensinglicensing DefinitionDefinition
Main provisions applicable to non-automatic Main provisions applicable to non-automatic import licensingimport licensing
– No additional restrictive or distortive effectsNo additional restrictive or distortive effects
– All relevant information to be publishedAll relevant information to be published
– No discrimination among applicantsNo discrimination among applicants
– Time limits for processing applicationsTime limits for processing applications
– Validity of a licenceValidity of a licence
– Other provisionsOther provisions
Part IV. Market Access: Part IV. Market Access: Russian FederationRussian Federation
On average the final legally binding tariff On average the final legally binding tariff ceiling for the RF will be 7.8%ceiling for the RF will be 7.8%– Average tariff ceiling for Agriculture, 10.8%Average tariff ceiling for Agriculture, 10.8%– Average tariff ceiling for NAMA, 7.3%Average tariff ceiling for NAMA, 7.3%– Final tariffs will be bound at zero for cotton Final tariffs will be bound at zero for cotton
and information technology products (ITA)and information technology products (ITA) Implementation: 1/3 of tariff lines upon Implementation: 1/3 of tariff lines upon
accession, another 1/4 cuts in 3 years. Longest accession, another 1/4 cuts in 3 years. Longest tariff cuts on pork 8 years and cars 7 years. tariff cuts on pork 8 years and cars 7 years.
4444
4545
Notification ObligationsNotification ObligationsNOTIF: Customs valuationNOTIF: Customs valuation
Art. 22.1 - “one-time”Art. 22.1 - “one-time”Notification of laws and regulationsNotification of laws and regulationsAll Members once they apply the All Members once they apply the Agreement, including Checklist of Issues Agreement, including Checklist of Issues
Decisions on Interest charges and Decisions on Interest charges and media-carrier media-carrier All Members if they apply the DecisionsAll Members if they apply the Decisions
4646
NOTIF: Preshipment NOTIF: Preshipment InspectionInspection
Art. 5 - “one-time”Art. 5 - “one-time”Notification of laws and Notification of laws and regulationsregulationsAll MembersAll Members
4747
NOTIF: Rules of OriginNOTIF: Rules of Origin
Art. 5.1 - “one-time”Art. 5.1 - “one-time”Notification of non-preferential rules of Notification of non-preferential rules of originoriginAll MembersAll Members
Annex II para. 4 - “one-time”Annex II para. 4 - “one-time”Notification of preferential rules of Notification of preferential rules of originoriginAll MembersAll Members
NOTIF: Import LicensingNOTIF: Import Licensing
NotificationsNotifications
– Copies of publications and full text Copies of publications and full text of laws and regulationsof laws and regulations
– Notification of changesNotification of changes
– Reverse notificationReverse notification
– Annual questionnaire (by 30 Annual questionnaire (by 30 September each year)September each year)
4949
NOTIF: Quantitative NOTIF: Quantitative RestrictionsRestrictions
Decision G/L/59 of the Council for Trade Decision G/L/59 of the Council for Trade in Goods (1 December 1995)in Goods (1 December 1995)
Basic document: G/MA/NTM/QR/2Basic document: G/MA/NTM/QR/2
Notification of all quantitative Notification of all quantitative restrictionsrestrictions(by 31 January 1996 and at two-yearly (by 31 January 1996 and at two-yearly intervals thereafter)intervals thereafter)All MembersAll Members
5050
NOTIF: Integrated Data NOTIF: Integrated Data Base (IDB)Base (IDB)
Decision WT/L/225 of the General Decision WT/L/225 of the General CouncilCouncilAll MembersAll Members
Basic document: G/MA/IDB/W/6Basic document: G/MA/IDB/W/6 Tariff data at the tariff line levelTariff data at the tariff line level
Every year (by 30 March)Every year (by 30 March) Trade data at the tariff line levelTrade data at the tariff line level
Every year (by 30 September)Every year (by 30 September)
5151
Thank you!Thank you!