Economic research and trade policy analysis

Le commerce international des combustibles et des produits pharmaceutiques s’est développé à un rythme supérieur à la moyenne ces dernières années, ce qui a modifié la structure du commerce mondial des marchandises. Ces modifications sont analysées ci-après.

Although small and medium-sized enterprises (SMEs) represent the vast majority of firms worldwide, their participation in international trade remains limited relative to their share of overall economic activity and employment as compared to large firms. The rise of the digital economy could, however, open a range of new opportunities for small firms to play a more active role in global value chains (GVCs). This chapter reviews evidence of SME participation in international trade and production networks and looks at how the digitalization of our economies is already affecting, or could affect future, SME contributions to GVCs. New research by Lanz et al. (2018) finds evidence that digitally-connected SMEs in developing countries tend to import a higher share of their inputs than non-digitally-connected firms. Additionally, it is shown that this positive digital effect is greater for SMEs than it is for large firms. The chapter reviews the various opportunities that the digital economy opens for SMEs, especially in terms of cost reductions and the emergence of new business models, but also discusses policy measures that could be taken to promote SME participation in GVCs. Indeed, significant challenges remain for SMEs to enter GVCs, some of which are exacerbated by the new digital economy. A holistic approach that combines investment in ICT infrastructure and human capital with trade policy measures and measures to improve the business environment, access to finance and logistics, and promote innovation and R&D is necessary. Improving the availability of data would also help to better understand and integrate SMEs in GVCs.

In July 2012, the WTO General Council agreed on a set of new and improved guidelines to facilitate and accelerate negotiations on the accession to the WTO of least-developed countries (LDCs). The process of acceding to the WTO is complex, time-consuming and resource-intensive for candidate countries, and for LDCs, which have limited institutional and administrative capacity, in particular. The WTO accession process is very much a political process, and requires countries to undertake far-reaching domestic reforms in order to be in a position to implement WTO rules from day one of membership, as well as to benefit from MFN market access from WTO members and vice versa. The prolonged accession process is designed to enable acceding LDCs (and others) to acquire the knowledge and expertise to negotiate not only the terms and conditions for their membership, but also to function as viable members of the rules-based system. This chapter examines the enhanced guidelines and asks whether the WTO needs to improve the procedures for the benefit of LDCs and of the WTO. It examines how the WTO accession process and procedures, as well as the scope of the reforms it requires, compare to EU considerations in the process of its enlargement, and argues that, while the enhanced LDC accession guidelines have made an important contribution, some additional steps may need to be contemplated in the future. However, before a further enhancement is contemplated, it must be understood that the accession process, and the substance of WTO accession negotiations, in all serious institutions, are based on a partnership. This is a fundamental lesson from all successfully completed accessions and enlargement processes. The process is neither unilateral nor automatic.

The World Trade Organization (WTO) is a relatively new international organization. However, it is responsible for a system that is over 50 years old. Established on 1 January 1995, the WTO replaced the General Agreement on Tariffs and Trade (GATT), which dated back to 1948. This was a consequence of a decision taken by governments after seven and a half years of negotiations (the "Uruguay Round"), which ended in 1994. With the WTO's creation, the rules were expanded to new areas. While the GATT dealt with trade in goods only, the WTO covers trade in services and intellectual property as well. There are also some areas, such as textiles, agriculture and sanitary and phytosanitary measures, where the WTO goes beyond the GATT by having established specific trade rules. Under the WTO, the procedure for settling trade disputes has also been strengthened.

India opened its domestic market to international trade in the early 1990s. The decision had profound implications on the development trajectory of the country. Trade opening allowed the country’s firms to source inputs more cheaply and increase their competitiveness. At the same time, it meant that firms in India were exposed to increased competition from abroad, while consumers enjoyed lower prices for final goods. While the trade opening helped boost economic growth, it required an adjustment of capital and labor within and across sectors.

A country’s bid for WTO membership can promote a feeling of challenge and uncertainty among members of the private sector as the long-established methods of conducting business are susceptible to undergoing considerable change. In order to overcome the potential resistance to this change, acceding governments have responded to the concerns of their businesses by adopting strategies to raise awareness of the long-term benefits of reform during the negotiating period. In this chapter we document some of the benefits related to trade and investment for Article XII members that have undertaken awareness raising strategies and necessary reforms during their accession processes. This chapter underlines that accession commitments, which are critical to bringing about domestic policy and regulatory reforms, need to be implemented in the right spirit to develop business competitiveness in the long run.

Trade, the exchange of goods, services and information between individuals or groups, is as old as human history. Expanding trade is a central component of the increasing connectedness among countries.

This paper is designed to provide a more granular perspective than the traditional aggregate view that economists take of supply chains. In particular, I want to add a behavioural dimension, and introduce a more dynamic methodology, capable of addressing the increasingly volatile operating environments that are likely to pervade future trading conditions within and between countries, whether developed or developing.

This section examines how international trade cooperation can help governments all over the world harness digital technologies and seize the new trading opportunities they will create for firms both large and small. Section D.1 summarizes the main opportunities and challenges that arise with the expansion of digital trade. Section D.2 provides examples of the policies that governments put in place to exploit these opportunities and to address these challenges. Section D.3 then considers whether and how international cooperation can help governments exploit the gains from digital trade, cope with the challenges and at the same time achieve their public policy objectives, now and in the future.

A core objective of accession results is to establish a legal foundation for the conduct and management of trade policy based on the rule of law. Implementation of accession commitments hinges on the existence of an effective domestic framework for making and enforcing policies. Customarily, this is described in the third chapter of working party reports. Twenty-eight of the members that acceded pursuant to procedures in Article XII of the Marrakesh Agreement Establishing the World Trade Organization (WTO Agreement), have undertaken a total of fifty-five accession-specific commitments in this regard. The uniquely definable pattern that has emerged from WTO Accession Protocols confirms the uniform applicability of the WTO Agreement throughout and across the entirety of the customs territory of the new member, the exclusive authority of central governments to implement and enforce WTO rules, the strengthening of due process and the rule of law, and the precedence of ratified international treaties over domestic legislation, in many instances. These commitments are integral to the WTO Agreement and are enforceable under the WTO Dispute Settlement Understanding. Although normative and standard, they confirm the long-standing accession practice that a range of original members have not confirmed and from which several deviate. This chapter studies the specific accession-specific commitments in the domestic framework for making and enforcing policies. It also investigates the relationship between Accession Protocols and domestic legal systems and asks whether original members undertook similar obligations.

This chapter considers political, commercial and legal aspects of accession negotiations and the compromises by all parties involved to make accession to the World Trade Organization (WTO) a reality. Using the negotiations on the accessions of the Russian Federation and Samoa as case studies, this chapter analyses how political constraints, economic interests and legal commitments affected the course of the negotiations. In the case of the Russian Federation, the focus was on certain investment programmes in the automotive industry that were deemed inconsistent with the Agreement on Trade-Related Investment Measures (TRIMs). Agreement on these measures required prolonged negotiations, including at ministerial levels, to find a satisfactory solution for all parties involved. In the case of Samoa, attention was focused on the appropriate level of flexibility to be granted to a least-developed country (LDC), as the expansion of LDC membership is a priority for the Organization, in accordance with the Guidelines on LDCs’ accessions. The chapter concludes that the experience of accession negotiations has helped to define domestic reform in acceding members, clarify the application of WTO provisions in practice, upgrade regional integration frameworks and counter negative political pressures. These lessons can be used in negotiations by other acceding economies and constitute important building blocks of the upper floors of the international trading system.

Small- and medium-sized enterprises (SMEs) present an issue of significant political and economic interest as they create jobs and drive development in developing and advanced countries. However, there is a perception that SMEs face a conundrum in the new realities brought about by globalisation. While supply chains present a portal for SMEs into international markets, they also open up SME market niches to encroaching large-sized enterprises (LEs). The competitive capabilities imparted by supply chain management (SCM) literature is suggested here for SMEs to compete against LEs; a slingshot in the battle between David and Goliath. The literature, however, reveals a controversy over whether SCM, in reality, helps or hurts SMEs. Some of the reasoning points to the presence of an LE perspective bias, and SMEs sometimes consider SCM as a threat, not a solution. The recent literature is addressing this issue by taking up the SME perspective, but the question of an SCM for SMEs is still in a very early stage of development. More effort will be required to gather data and build theory for SMEs in both developed and developing markets.

el Informe sobre el Comercio Mundial 2009 se centra principalmente en ciertas medidas de contingencia a que pueden recurrir los Miembros de la OMC en el ámbito de la importación y exportación de mercancías. El marco jurídico de estas medidas está mucho menos desarrollado en el caso del comercio de servicios, aunque este asunto también se analiza.

Dans cette section, il sera question des principaux objectifs que les pouvoirs publics prétendent poursuivre au moyen des subventions, tels que le développement industriel, l’innovation, le soutien de “champions“ nationaux, la protection de l’environnement et la redistribution. Sous la rubrique générale de la “redistribution“, nous examinerons trois objectifs plus spécifiques: l’utilisation de subventions à des fins de politique régionale, l’aide à l’ajustement pour les secteurs en déclin et les obligations de service universel. Ce choix ne prétend pas être exhaustif, mais il couvre certains des principaux objectifs poursuivis par les gouvernements des pays en développement et des pays développés.

This book explores the complex relationship between international trade and poverty reduction through a combination of research papers and contemporary case studies. Written mainly by developing country authors in consultation with local businesses and communities, the case studies contribute to our understanding of the ways in which low-income communities are dealing with trade as a practical challenge, especially in the Asia-Pacific region where approximately two thirds of the world’s poor live. While making it clear that there is no ‘one size fits all’ formula, the research and stories highlight a number of necessary preconditions – such as political commitment and cooperation at all levels – if trade is to successfully reduce poverty. Openness to trade, serious commitment to domestic reform, trade-related capacity building, a robust and responsible private sector and access to the markets of developed countries are all identified as powerful tools for building trade-related sustainable development.

The goal of this report is to improve the understanding of the impacts of trade and trade policy on gender equality, and to provide policy makers with evidence on the benefits of trade for women and with potential policy solutions. The report uses a conceptual framework that illustrates the diverse transmission channels through which trade and trade policy can affect women, according to three key economic roles they play: workers, consumers, and decision makers. The report also gathers and analyzes new data1 to show how trade and trade policy can affect women and men differently—in wages, consumption, and welfare, and in the quality and quantity of jobs available to them. New empirical analysis based on these data suggests that expanding trade can act as an impetus for countries to improve women’s rights and boost female participation in the economy.