STATEOF PLAYOF THE ARAB REGION...High Level Regional Dialogue for WTO Accessions for the Arab Region, 8 -10 November 2020 Mena Hassan Accessions Division World Trade Organization 8

High Level Regional Dialogue for WTO Accessions for the Arab Region, 8-10 November 2020

Mena Hassan Accessions Division

World Trade Organization8 November 2020

OVERVIEW OF WTO ACCESSIONS ANDSTATE OF PLAY OF THE ARAB REGION


• Why join the WTO?

• Basic procedures for the Accession process

• Achievements to date

• The state of play in ongoing accessions and Arabaccessions

Outline of Presentation


Why join the WTO?

TRADE FOR

PEACE

POLICY PREDICTABILITY / TRANSPARENCY

WTO = BRAND NAME

RULE OF LAW

DOMESTIC REFORMS

INSURANCE AGAINST

PROTECTIONISM

PARTICIPATION IN

MULTILATERAL NEGOTIATIONS

+ RULE-MAKING

ENHANCED MARKET ACCESS


Basic Procedures

Article XII of the Agreement Establishing the WTO (the Marrakesh Agreement)

1. Any State or separate customs territory possessing full autonomy in the conduct of its external commercial relations and the other matters provided for in this Agreement and the Multilateral Trade Agreements may accede to this Agreement, on terms to be agreed between it and the WTO. Such accession shall apply to this Agreement and the Multilateral Trade Agreements annexed thereto.

2. Decisions on accession shall be taken by the Ministerial Conference. The Ministerial Conference shall approve the agreement on the terms of accession by a two-thirds majority of the Members of the WTO.

WTO ACCESSION: LEGAL BASIS


Stage 1 Stage 2 Stage 3

The accession procedures are outlined in WT/ACC/22/Rev.1, a document developed by the Secretariat inconsultation with Members as a practical, non-binding guide.

The WTO Accession process


Multilateral Negotiations

Fact-finding Phase

Negotiating Phase

Draft Working Party Report

• Submission of MFTR, Legislative Action Plan, action plans for implementation of specific agreements

• First set of Questions and Responses

• First Working Party meeting

• Attached with draft Decision and draft Protocol on Accession

• Additional Questions and Replies

• Further Working Party meetings

• Factual Summary of Points Raised


Bilateral Negotiations

Bilateral Contacts

Submission of Initial

Offers

Revision of Offers,Further

negotiations

Bilateral Agreement

Draft Goods and

Services Schedule

• Generally submitted after the first Working Party meeting

• Any Member may request Bilateral Negotiations based on these offers

• Signed in three copies

• Signed agreement must be deposited with the Secretariat

• Reviewed by signatories at the Technical Verification Meeting

• Annexed to the Working Party Report

• Becomes part of the Accession Package


STAGE 3: FINAL STEPS

• Adoption of the Accession Packageby Working Party

• General Council/Ministerial Conference approval

• Domestic ratification /acceptance

• Membership

THE ACCESSION PACKAGE

• Decision• Protocol

1

• Report of the Working Party2

• Schedule of Concessions & Commitments on Goods3

• Schedule of Specific Commitments on Services

4


3. Achievements to date


Map of WTO Members and Observers

Turkmenistan: Observer since July 2020

What has been done so far? 36 accessions completed to date(By accession date)

19

96

19

97

19

98

19

99

-Ecuador-Bulgaria

-Mongolia-Panama

-Kyrgyz Republic

-Latvia-Estonia

20

00

-Jordan-Georgia-Albania-Oman-Croatia

20

01

-Lithuania-Moldova -China

20

02

-Chinese Taipei

20

03

-Armenia-FYR Macedonia

20

04

-Nepal-Cambodia

-Saudi Arabia

20

05

20

07

-Viet Nam-Tonga

20

08

-Ukraine-CaboVerde

-Montenegro-Samoa-Russian Federation-Vanuatu

20

12

-Lao PDR-Tajikistan

20

13

--Yemen

20

14

20

15

-Seychelles-Kazakhstan

-Liberia-Afghanist

20

16


WTO ACCESSIONS RESULTS TO DATE

36 accessions, including from 9 LDCs, have been concludedbetween 1996 and 2016• Last Members joined in July 2016, i.e. Afghanistan and Liberia• Article XII Members account for over 20% of WTO membership• Additional 18% of world trade covered by WTO rules - today, 98.1% world

trade conducted under WTO

Average length of accession: 10 years and 2 months (but 12 yearsand 2 months for LDCs)• Shortest: 2 years and 8 months (Kyrgyz Republic, 1998)• Longest: 19 years and 9 months (Kazakhstan and Seychelles, 2015)

4 Arab Accessions concluded to date:• Kingdom of Jordan (joined in April 2000): 6 years and 3 months• The Sultanate of Oman (joined in November 2000): 4 years and 5

months• The Kingdom of Saudi Arabia (joined in December 2005): 12 years and

5 months• Yemen (joined in 26 June 2014): 13 years and 11 months

Share of world trade by membership status, 2018

Length of WTO accession process: WP establishment to Membership

Art. XII Members,

17.83%

Original …

Acceding Governments

, 1.65%

Rest of the World, 0.29%


4. The State of Play of Accessions and Arab Accessions

What remains to be done? 23 ongoing accessions, plus ….(By application date)

19

87

19

93

19

96

19

99

19

97

20

01

20

03

20

04

20

05

20

07

21

05

-Sudan -Uzbekistan

-Belarus

-Iran

-Azerbaijan-Andorra

-Lebanese Republic-Bosnia & Herzegovina-Bhutan

-Bahamas-Syrian Arab Rep. -Libya

-Ethiopia

-Iraq-Serbia

-Sao Tomé & Principe

-Comoros-Equatorial Guinea

-Timor-Leste-Somalia

20

17

-South Sudan

-Algeria

19

94

-Curaçao

20

20


Accession negotiations – state of play

Multilateral negotiations (Rules)

Bilateral negotiations (Market Access)

• Bahamas• Ethiopia*• Sudan*

• Algeria • Azerbaijan • Belarus • Bhutan* • Bosnia &

Herzegovina • Comoros* • Lebanese Rep. • Serbia

Working Party

Established

Factual Summary of Points Raised

Memorandum on Foreign Trade

Regime


• Andorra • Iran• Iraq• Somalia*• South Sudan*• Timor-Leste*• Uzbekistan

Initial Goods & Services Offer

• Andorra

Revised Goods & Services Offer

• Algeria • Azerbaijan• Bahamas • Belarus • Bhutan* • Bosnia and Herzegovina• Comoros*• Ethiopia* • Lebanese Rep.• Serbia • Sudan*• Uzbekistan

Observer

Draft Goods and Services Schedules

• Turkmenistan • Curaçao• Equatorial

Guinea• Libya• Sao Tomé

and Principe*

• Syrian Arab Rep.

Note:* LDC


Eight (8) on-going Accessions in the Arab Region

• Algeria (1987)

• Sudan (1994)*

• Lebanese Republic (1999)

• Syrian Arab Republic (2001)

• Iraq (2004)

• Libya (2004)

• Comoros (2007)*

• Somalia (2016)*Notes: * LDCs


General Status Accession WP (establishment) Last WPM Next envisaged WPM(based on Secretariat’s assessment)

Strategic focus 2020 Comoros* (2007) 5WPM, September 2020 Q1 2021

Work in progressOn-going efforts to move the WP process

Sudan* (1994) 4WPM, July 2017 TBD

Reactivation On-going efforts to resume the WP process after at least 5 years

Iraq (2004)

Lebanese Republic (1999)

2WPM, April 2008 7WPM, October 2009

TBDTBD

Activation Efforts to start the WP process with MFTR

Somalia* (2016) No WPM held to date TBD

Inactive No WP held at least during last 5 years

Algeria (1987) Libya (2004) Syrian Arab Republic (2010)

14 WPM, March 2014No WPM held to dateNo WPM held to date

Notes: * LDCs

Arab Accessions by Status


Multilateral negotiations (Rules)

Bilateral negotiations (Market Access)

• Libya

• Syrian Arab Rep.

• Sudan*

• Algeria • Comoros* • Lebanese

Rep.

Working Party

Established

Factual Summary of

Points Raised

Memorandum on Foreign Trade

Regime


• Iraq

• Somalia*

(No documents submitted)

Initial Goods & Services

Offer

Revised Goods &Services Offer

• Algeria • Comoros*• Lebanese Rep.• Sudan*

Draft Goods and Services

Schedules

Accession State of Play of Arab Countries

Note: * LDC


Average Length of ongoing Arab Accessions

0 5 10 15 20 25 30 35

ALGERIA

SUDAN*

LEBANESE REPUBLIC

LIBYA

IRAQ

COMOROS*

SYRIAN ARAB REPUBLIC

SOMALIA*

33 Y 5M

26Y 1M

21Y 7M

16Y 4M

15Y 11M

13Y 1M

10Y 6M

3Y 11M

AVERAGE: 17 Years and 7

Months


Acceding Government (Working Party establishment)

Number of WP meeting(s) held

Number of documents issued to the WP+

Number of questions replied to by Acceeding Governments+

Algeria (1987) 12 105 1897

Sudan* (1994) 4 88 917

Lebanese Republic (1999) 3 16 474

Syrian Arab Republic (2001) - -

Libya (2004) - 2 -

Iraq (2004) 2 638

Comoros* (2007) 4 45 638

Somalia* (2016) - 1 -

Accession in numbers: Ongoing-Arab Accessions

Notes: * LDC+ Based on the documents circulated to the Working Party, not including the documents which are currently processed by the Secretariat.


Number of commitments undertaken by Article XII Members

2227

1824

2922 24

29 29 29 26 27 28 28

168

65

39

24 2529

5970

29

63

2635 37

163

30 26

40

28

40

118

40

0

20

40

60

80

100

120

140

160

180


Frequency of commitments undertaken by Article XII Members

0

20

40

60

80

100

120

140

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Policy Framework for LDC Accessions

2002 General Council Guidelines for LDCs’ Accessions (WT/L/508)– Market Access, WTO Rules, Process, technical assistance

2012 General Council Decision to “strengthen, streamline and operationalize” the 2002 Guidelines” (WT/L/508/Add.1)– Benchmarks on market access on Goods and Services– Transparency in accession negotiations– “Facilitation” by Chairs of SCLDC & Accession Working Parties – Special and differential treatment & transition periods– Technical assistance and capacity building


WTO accessions: new “themes”

A larger number of active accessions• New applications – Somalia, Timor-Leste, South Sudan, Curaçao (+

Turkmenistan)• Resumption of accession Working Parties after some years of inactivity

• Comoros (2016), Belarus (2017), Sudan (2017), Bosnia and Herzegovina (2018), Bahamas (2018), Ethiopia (2020), Uzbekistan (2020)

Increased role for technical assistance?• Members’ broad support for WTO accessions, at WP level or through

technical assistance• Strong interest & support from international partners, e.g. IMF, World

Bank, ITC, Arab Monetary Fund, Islamic Development Bank

Fragility and conflict (trade as an engine of peace?)


Best practices for Accession process

• Establish a clear domestic structure to support the accession process & build capacity of the negotiating team – national coordination – Road Map

• Early identification of benefits and interests, which should be reflected in a negotiating strategy

• Impact assessment of WTO Membership

• Assessment of trade-related legislation and practices to determine conformity with WTO rules

• Establishment of a national steering committee (e.g. ministries, private sector, and civil society representatives)

• Identification of a 'model accession’

• Use of technical assistance & capacity building


Q&A session

Slide Number 1Outline of PresentationWhy join the WTO?Basic Procedures��Slide Number 6Slide Number 7Stage 3: Final stepsSlide Number 9Map of WTO Members and Observers�What has been done so far? �36 accessions completed to date�(By accession date)WTO Accessions results to dateSlide Number 13What remains to be done? �23 ongoing accessions, plus ….�(By application date)Accession negotiations – state of play �Slide Number 16Slide Number 17Slide Number 18Average Length of ongoing Arab Accessions Slide Number 20Number of commitments �undertaken by Article XII MembersFrequency of commitments �undertaken by Article XII MembersPolicy Framework for LDC AccessionsWTO accessions: new “themes”�Best practices for Accession processSlide Number 26

Documents

STATEOF PLAYOF THE ARAB REGION...High Level Regional Dialogue for WTO Accessions for the Arab Region, 8 -10 November 2020 Mena Hassan Accessions Division World Trade Organization 8