POLICY FOR THE TEAM OF NEGOTIATORS FOR Project funded by the - PowerPoint PPT Presentation

SHORT TRAINING IN TRADE POLICY FOR THE TEAM OF NEGOTIATORS FOR Project funded by the ETHIOPIA’S WTO ACCESSION European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF Module 3: Preparation of offers for non-agricultural products 28 - 31 March 2011 Derk Bienen Day 2/Session 3 WTO Members’ interests bkp DEVELOPMENT RESEARCH & CONSULTING

Overview – Session 3 1. State of play at the Doha Round  Actors – Member groupings  Modalities  Flexibilities 2. Recent accessions  Summary  Individual concessions made: As part of the group work 1 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

Working Party Members for Ethiopia’s accession?  Might include:  Australia Brazil  Canada China  Djibouti EC  Egypt India  Japan Kenya  US  What are the interests of these countries in Doha Round NAMA negotiations? 2 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

Member groupings in Doha Round NAMA negotiations  In groupings, WTO Members with certain common interests pursue their joint objectives  Groupings are typically informal (some are formal)  Countries can be members in several groupings  Overview of groupings:  Friends of Ambition  NAMA-11 group of developing countries  "Middle Ground" Group  Least Developed Country (LDC) Group  Small, Vulnerable Economies (SVEs)  Developing countries with low binding coverage ("Paragraph 6" Countries)  Recently Acceded Members (RAMs)  African, Caribbean and Pacific Group of States (ACP)  African Group 3 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

Friends of Ambition  Interests: Members seeking a high level of ambition in NAMA negotiations. This is not a formal group of Members but rather a categorisation based on these positions traditionally held by these members.  Members: Australia; Canada; European Communities; Japan; Korea; New Zealand; Norway; Switzerland; United States.  Likely position on Ethiopia’s accession: Comprehensive concessions 4 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

NAMA-11 group of developing countries  Interests: Members seeking an outcome which ensures sufficient flexibility in tariff reductions and less than full reciprocity with relation to tariff reductions made by the developed countries.  Members: Argentina; Bolivarian Republic of Venezuela; Brazil; Egypt; India; Indonesia; Namibia; Philippines; South Africa; Tunisia.  Likely position on Ethiopia’s accession: Allow flexibility 5 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

"Middle Ground" Group  Interests: Group of Members seeking to improve market access conditions into both developed and developing countries while balancing the interests of the two other groups described above.  Members: Chile; Colombia; Costa Rica; Hong Kong, China; Israel; Mexico; Pakistan; Peru; Singapore and Thailand.  Likely position on Ethiopia’s accession: Indifference 6 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

Least Developed Country (LDC) Group  Interests: Members seeking to defend the specific interests of LDCs, including to secure duty-free and quota-free market access in developed country markets.  Members: A group of 32 WTO Members: Angola; Bangladesh; Benin; Burkina Faso; Burundi; Cambodia; Central African Republic; Chad; Democratic Republic of the Congo; Djibouti; The Gambia; Guinea; Guinea Bissau; Haiti; Lesotho; Madagascar; Malawi; Maldives; Mali; Mauritania; Mozambique; Myanmar; Nepal; Niger; Rwanda; Senegal; Sierra Leone; Solomon Islands; Tanzania; Togo; Uganda; Zambia.  Likely position on Ethiopia’s accession: Allow flexibility 7 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

Small, Vulnerable Economies (SVEs)  Interests: A group of developing countries seeking consideration of their small, vulnerable economies in tariff reduction modalities.  Members: Barbados; Bolivia; Cuba; Dominican Republic; El Salvador; Fiji; Guatemala; Honduras; Jamaica; Mauritius; Mongolia; Nicaragua; Papua New Guinea; Paraguay; and Trinidad and Tobago.  Likely position on Ethiopia’s accession: Indifference (abstractly supportive) 8 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

Developing countries with low binding coverage (a.k.a. "Paragraph 6" Countries)  Interests: Group of developing Members defending the specific interests of countries with a low binding coverage.  Members: Cameroon; Congo; Côte d'Ivoire; Cuba; Ghana; Kenya; Macao, China; Mauritius; Nigeria; Sri Lanka; Suriname; Zimbabwe.  Likely position on Ethiopia’s accession: Allow flexibilities 9 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

Recently Acceded Members (RAMs)  Interests: Members wishing to secure special provisions to take into account the extensive market access commitments undertaken as part of their accession.  Members: Albania; Armenia; Cape Verde; China, Croatia; Ecuador; Former Yugoslav Republic of Macedonia; Georgia; Jordan; Kyrgyz Republic; Moldova; Mongolia; Oman; Panama; Saudi Arabia; Chinese Taipei; Tonga; Viet Nam; Ukraine.  Likely position on Ethiopia’s accession: To be treated similarly to RAMs 10 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

African, Caribbean and Pacific Group of States (ACP)  Interests: Members wishing to prevent or minimize the erosion of the non-reciprocal preferences received in the EU and the US; and to ensure that their contribution is commensurate to their level of development.  Members: 79 countries  Likely position on Ethiopia’s accession: Largely indifferent, abstract support 11 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

African Group  Interests: A group formed to prevent or minimize the erosion of the non- reciprocal preferences received in the EU and the US; and to ensure that their contribution is commensurate to their level of development.  Members: Angola; Benin; Botswana; Burkina Faso; Burundi; Cameroon; Central African Republic; Chad; Congo; Côte d'Ivoire; Democratic Republic of the Congo; Djibouti; Egypt; Gabon; Gambia; Ghana; Guinea; Guinea- Bissau; Kenya; Lesotho; Madagascar; Malawi; Mali; Mauritania; Mauritius; Morocco; Mozambique; Namibia; Niger; Nigeria; Rwanda; Senegal; Sierra Leone; South Africa; Swaziland; Tanzania; Togo; Tunisia; Uganda; Zambia; Zimbabwe  Likely position on Ethiopia’s accession: Allow flexibilities 12 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

Member groupings – lessons for Ethiopia  Which groups are “friends”, which ones are “foes”? “Friends”: flexibility Limited support “Foes”: concessions • NAMA-11 group of • “Middle Ground” • Friends of developing Group Ambition • SVEs countries • LDCs • RAMs • “Paragraph 6” • ACP countries • African Group  So is this encouraging? 13 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

Member groupings – lessons for Ethiopia  Which WP Members are “friends”, which ones are “foes”? – based on their grouping? “Friends”: flexibility Limited support “Foes”: concessions • NAMA-11 group of • “Middle Ground” • Friends of Group: China Ambition: Australia; developing • SVEs: --- Canada; European countries: Brazil; Communities; Japan; Egypt; India • RAMs: China United States • LDC group: Djibouti • ACP: Djibouti, Kenya • “Paragraph 6” countries: China • African Group: Egypt, Kenya  The number of “friends” and “foes” in the WP is balanced, foes being the largest WTO Members 14 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF

Modalities – application of Swiss formula (1)  Developed countries (9 Members)  Apply the Swiss Formula: No flexibilities  Developing Countries (84 Members)  Applying the Formula (Paragraph 7) - (36 Members) - Apply the Swiss formula, but can chose in a menu that provides for combinations of: Higher coefficients (resulting in lower tariff cuts) than that which  shall be applied by developed countries. Choose to leave some tariff lines untouched (i.e. left unbound or  not reduced in its binding) or subject them to smaller reductions.  Small, Vulnerable Economies – SVEs (Para. 13) (23 Members) - Exempt from the application of the Swiss formula. Subject to a "target average" approach instead. 15 Project funded by the European Union under its Trade Capacity Building Programme for Ethiopia under the 9th EDF