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Indonesia - Importation of Horticultural Products, Animals and Animal Products
On 9 November 2017 the WTO Appellate Body issued its report in the cases brought by New Zealand and the United States in “Indonesia - Importation of Horticultural Products Animals and Animal Products”.
When Bad Trade Policy Costs Human Lives
Many developing countries still levy tariffs on mosquito nets thereby discouraging their use and contributing to the spread of diseases such as malaria and dengue. Focusing on sub-Saharan Africa the paper shows to which extent such tariffs are in place and based on existing elasticity figures calculates the cost of this policy.
Marrakesh Agreement Establishing the World Trade Organization
Recognizing that their relations in the field of trade and economic endeavour should be conducted with a view to raising standards of living ensuring full employment and a large and steadily growing volume of real income and effective demand and expanding the production of and trade in goods and services while allowing for the optimal use of the world’s resources in accordance with the objective of sustainable development seeking both to protect and preserve the environment and to enhance the means for doing so in a manner consistent with their respective needs and concerns at different levels of economic development
The WTO Agreements
This publication contains the text of the WTO’s founding agreement the 1994 Marrakesh Agreement Establishing the World Trade Organization and its Annexes including all amendments and additions since its entry into force until September 2017. These include an amendment to the WTO’s intellectual property agreement (TRIPS Agreement) aimed at improving developing countries’ access to medicines the WTO’s Trade Facilitation Agreement which entered into force in February 2017 an amendment adopted in July 2017 to extend the frequency of peer review periods under the Trade Policy Review Mechanism as of 2019 and the amended Government Procurement Agreement. This publication updates and replaces The Legal Texts: The Results of the Uruguay Round of Multilateral Trade Negotiations which was first printed in 1994.
Preface
This publication contains the text of the 1994 Marrakesh Agreement Establishing the World Trade Organization (WTO Agreement) and its Annexes. It replaces and updates The Legal Texts: The Results of the Uruguay Round of Multilateral Trade Negotiations published and reprinted since 1994 in some important respects. It reflects all amendments and rectifications to the WTO Agreement and its Annexes effected or adopted up to September 2017 such as the amendment of the TRIPS Agreement the insertion of the Agreement on Trade Facilitation (TFA) and the amendment of the Trade Policy Review Mechanism adopted in July 2017. Closely following the structure of the GATT 1994 the provisions of the GATT 1947 appear as the first text incorporated into the GATT 1994. Due to its continued relevance this publication also reproduces as one of the "other decisions of the CONTRACTING PARTIES" included in the GATT 1994 the 1979 "Enabling Clause". Further two Plurilateral Trade Agreements applicable among WTO Members that are party to them are reproduced under Annex 4 of the WTO Agreement namely the Agreement on Trade in Civil Aircraft and the Agreement on Government Procurement (GPA).
The WTO Agreements
This publication contains the text of the WTO’s founding agreement the 1994 Marrakesh Agreement Establishing the World Trade Organization and its Annexes including all amendments and additions since its entry into force until September 2017. These include an amendment to the WTO’s intellectual property agreement (TRIPS Agreement) aimed at improving developing countries’ access to medicines the WTO’s Trade Facilitation Agreement which entered into force in February 2017 an amendment adopted in July 2017 to extend the frequency of peer review periods under the Trade Policy Review Mechanism as of 2019 and the amended Government Procurement Agreement. This publication updates and replaces The Legal Texts: The Results of the Uruguay Round of Multilateral Trade Negotiations which was first printed in 1994.
The Contribution of Services Trade Policies to Connectivity in the Context of Aid for Trade
This paper examines how services trade and policies contribute to connectivity. It highlights the economic relevance of services and identifies some key channels through which trade in services contributes to physical and digital connectivity. The paper examines the impact of services trade policies on connectivity in view of recent research showing their impact on sectoral performance economic welfare and development. Finally it discusses the positive contribution that aid for trade can make in support of services policies.
The Application of Competition Policy Vis-À-Vis Intellectual Property Rights
This paper examines the evolution of national competition (antitrust) policies and enforcement approaches vis-à-vis intellectual property rights (IPRs) and associated anti-competitive practices in major jurisdictions over the past several decades. It focuses especially on the underlying process of economic learning that has the authors suggest driven relevant policy changes.
European Union - Anti-Dumping Measures on Imports of Certain Fatty Alcohols from Indonesia
On 5 September 2017 the WTO Appellate Body issued its report in the case “European Union - Anti-Dumping Measures on Imports of Certain Fatty Alcohols from Indonesia”.
United States - Conditional Tax Incentives for Large Civil Aircraft
On 19 December 2014 the European Union requested consultations with the United States with respect to conditional tax incentives established by the State of Washington in relation to the development manufacture and sale of large civil aircraft. The European Union alleges that the measures constitute specific subsidies within the meaning of Articles 1 and 2 of the SCM Agreement. The European Union also considers that the measures are prohibited subsidies that are inconsistent with Articles 3.1(b) and 3.2 of the SCM Agreement
Brazil – Certain Measures Concerning Taxation and Charges
On 30 August 2017 the WTO issued the panel reports in the cases brought by the European Union and Japan in “Brazil - Certain Measures Concerning Taxation And Charges”.
Indonesia - Safeguard on Certain Iron or Steel Products
On 18 August 2017 a WTO dispute panel issued a report in the cases brought by Viet Nam and Chinese Taipei in “Indonesia - Safeguard on Certain Iron or Steel Products”.
European Union - Countervailing Measures on Certain Polyethylene Terephthalate from Pakistan
On 6 July 2017 a WTO dispute panel issued a report in the case “European Union - Countervailing Measures on Certain Polyethylene Terephthalate from Pakistan".
Provisions on Electronic Commerce in Regional Trade Agreements
This paper reviews the different types of provisions explicitly addressing electronic commerce (e-commerce) in regional trade agreements (RTAs). The analysis covers the 275 RTAs currently in force and notified to the WTO as of May 2017.
Georgia's Post-Accession Structural Reform Challenges
The process leading to WTO accession is complex requires solid domestic coordination mechanisms in the acceding country a rethinking of its economic and trade policies and significant domestic structural reforms. It often implies the creation of new institutions designed to coordinate and implement the policies at the national level as was the case in Georgia.
United States - Measures Affecting Trade in Large Civil Aircraft (Second Complaint) (Boeing - Airbus) - Recourse 1
On 27 June 2005 the European Communities requested consultations with the United States concerning prohibited and actionable subsidies provided to US producers of large civil aircraft. (See also dispute DS317). The European Communities considers that the measures cited in its request for consultations are inconsistent with: - Articles 3.1(a) 3.1(b) 3.2 5(a) 5(c) 6.3(a) 6.3(b) and 6.3(c) of the SCM Agreement; and - Article III:4 of the GATT 1994
Trade, debt and finance
Director-General Roberto Azevêdo highlighted the need to address persistent gaps in trade financing for small businesses in developing countries and met heads of partner institutions to discuss how to tackle the problem. A new WTO publication looks at how those gaps might be addressed. The Expert Group on Trade Finance continued to evaluate gaps in trade finance markets especially in the poorest countries.
Contact with parliamentarians
The 2016 Parliamentary Conference on the WTO was held on the theme of “What Future for the WTO?” The participants welcomed the successful outcome of the Nairobi Ministerial Conference and stressed that mega regional trade agreements should work alongside multilateral accords. Parliamentarians hailed the ministerial decision on export competition as the most significant step adopted by the WTO in agriculture. The WTO organized several regional workshops with parliamentarians during the year to increase understanding of the multilateral trading system.
Trade and environment
In 2016 the Committee on Trade and Environment discussed a broad range of trade-related environmental issues including climate change reform of fossil fuel subsidies chemicals and waste management wildlife trade forestry and fisheries. The Committee was also updated on the WTO environmental database the environmental provisions in regional trade agreements and the Environmental Goods Agreement negotiations.
Understanding the WTO
There are a number of ways of looking at the World Trade Organization. It is an organization for trade opening. It is a forum for governments to negotiate trade agreements. It is a place for them to settle trade disputes. It operates the global system of trade rules. It helps developing countries build their trade capacity. Essentially the WTO is a place where member governments try to sort out the trade problems they face with each other.
Government Procurement Agreement
Ukraine and Moldova joined the Agreement on Government Procurement (GPA) in 2016. Good progress was made on the accessions of Australia the Kyrgyz Republic and Tajikistan while discussions continued on China’s accession. Russia applied to join the GPA. Phase II of the e-GPA web portal was completed providing a single entry point for market access information. The WTO Secretariat continued to provide technical assistance to developing countries and strengthened its partnerships with other international organizations.
Public Forum 2016
The 2016 Public Forum – the WTO’s major event for public engagement – focused on how trade can be made more inclusive so that the benefits of trade are spread more widely. Participants looked at how the WTO could help small and medium-sized enterprises (SMEs) gain better access to the global market and shared ideas on the role of new technologies digital innovation and e-commerce. The Forum also discussed how women can participate more fully in international trade and better reap the benefits of global trade. The WTO’s World Trade Report and three other publications were launched during the three-day meeting.
A brief history
The WTO began life on 1 January 1995 succeeding the General Agreement on Tariffs and Trade which had regulated world trade since 1948. Over the past 20 years the WTO has made a major contribution to the strength and stability of the global economy helping to boost trade growth resolve numerous trade disputes and support the integration of developing countries into the trading system.
Contact with the public
The WTO makes use of various channels of communication such as the WTO website and social media to engage with the public. The website received just over 20 million visits in 2016 while our social media channels attracted increasing numbers of followers. Video clips on the WTO website were watched over 200000 times on average each month. Over 70 WTO publications were produced with five book launches held at the WTO during the year. The WTO welcomed 208 visiting groups in 2016.
Cooperation with other international organizations
In 2016 the WTO cooperated with other intergovernmental organizations on many trade-related issues. Director-General Roberto Azevêdo participated in events organized by the United Nations the World Bank and the International Monetary Fund and attended the G20 summit in Hangzhou China. The WTO continued to publish reports on G20 trade and investment measures together with UNCTAD and the Organisation for Economic Co-operation and Development (OECD).
Trade Policy Reviews
In 2016 the Trade Policy Review Body (TPRB) reviewed the trade policies and practices of 23 WTO members. By the end of 2016 the TPRB had conducted 452 reviews since its establishment in 1989 covering 153 of the 164 WTO members. During the year members agreed further reforms to the trade policy review mechanism including adjusting the frequency of undertaking trade policy reviews.
Trade monitoring reports
Trade monitoring reports showed a slight decrease in the number of new trade-restrictive measures introduced by WTO members. The WTO revised downwards its trade forecasts for 2016 predicting the slowest pace of trade and output growth since the financial crisis of 2009. The monitoring reports underscore the need for WTO members to work together to ensure that the benefits of trade are spread more widely and are better understood.
Trade and transfer of technology
The Working Group on Trade and Transfer of Technology continued to analyse the relationship between trade and transfer of technology. It heard a presentation by Chinese Taipei on its experience with technological innovation and its transfer. WTO members also continued to discuss a submission by India Pakistan and the Philippines on “facilitating access to information on appropriate technology sourcing”.
Message from Director-General Roberto Azevêdo
Following the success of the 10th WTO Ministerial Conference in Nairobi in December 2015 we saw a significant rise in engagement in many areas of our work in 2016. The year was defined by robust discussion among members on a wide range of issues and a notable rise in interest from other stakeholders.
Appellate Body
The Appellate Body had a busy year in 2016 with eight panel reports appealed and six Appellate Body reports circulated. In addition an arbitration concerning the reasonable period of time for implementation of Dispute Settlement Body (DSB) recommendations and rulings was carried out in 2016. The DSB appointed two new Appellate Body members Hong Zhao of China and Hyun Chong Kim of Korea. As of the end of 2016 the Appellate Body had circulated 144 reports.
Technical cooperation and training
The WTO Secretariat undertook 315 technical assistance activities in 2016 aimed at helping government officials gain a better understanding of WTO rules and the multilateral trading system. Over 18400 participants benefited from these training activities up from some 15000 in 2015. Least-developed countries (LDCs) were invited to participate in 60 per cent of all technical assistance activities significantly more than in past years. Nearly half of the participants accessed training through e-learning resources on the WTO’s online platform. An external report highlighted the value of the WTO’s technical assistance programme.
Dispute settlement activity in 2016
The WTO’s dispute settlement system had its busiest year so far averaging 22 cases per month where active proceedings are under way. These are cases where a panel or arbitration has been composed and where preparations are ongoing for the finalization of a panel arbitration or Appellate Body report. The Dispute Settlement Body (DSB) received 17 requests for consultations the first step in the dispute settlement process and established eight new panels. The dispute settlement system began to benefit from measures introduced to address the increasing workload it faces.
Contact with the business community
Engagement with the business community increased significantly in 2016. In May the WTO facilitated a meeting of business leaders at the WTO’s headquarters at the request of the International Chamber of Commerce (ICC) and the B20 the business arm of the G20. The event was held as part of the WTO’s “Trade Dialogues” initiative which aims to give stakeholders including the business community an opportunity to discuss trade concerns. A follow-up event was held at the WTO’s Public Forum which attracted a large number of private sector representatives.
Trade negotiations in 2016
WTO members focused on implementing outcomes from the Nairobi and Bali ministerial conferences and on responding to instructions from ministers in Nairobi on trade negotiations. Following a period of reflection in the first half of the year there was re-energized and constructive engagement from July onwards across several areas of negotiations as members began to look towards the 11th Ministerial Conference to be held in Buenos Aires in December 2017. In response to the success in Bali and Nairobi the private sector urged the WTO to deliver further outcomes to boost growth and development.
Enhanced Integrated Framework
In January 2016 the Enhanced Integrated Framework (EIF) launched phase two of its programme which aims to help least-developed countries (LDCs) use trade as a tool for growth. Phase two will run until 2022. The EIF rolled out projects in several LDCs aimed at supporting these countries’ capacity to trade.
Trade-related aspects of intellectual property rights (TRIPS)
An amendment to the TRIPS Agreement making it easier for developing countries to access affordable medicines came into force in January 2017. The TRIPS Council continued its regular work on promoting transparency in WTO members’ intellectual property systems and reviewed the implementation of the TRIPS Agreement. It also discussed access to medicines biodiversity patentability of life forms and technical cooperation among other topics.
Budget, finance and administration
The Committee on Budget Finance and Administration reviewed reports on the financial and budgetary situation of the WTO presented the financial performance report 2015 the mid-term review 2016-2017 and the first report of the Office of Internal Oversight. It sent proposed revisions to the WTO pension plan to the General Council for approval.
Cooperation with academic institutions
The WTO Chairs Programme (WCP) launched a new book on reducing trade costs and inclusive growth at the WCP Annual Conference in November. The WCP’s Advisory Board reviewed the achievements of the programme which aims to support trade-related activities by universities in developing countries and discussed how to ensure its sustainability. In 2016 12 activities were implemented under the Academic Support Programme (ASP).
Relations with non-governmental organizations
Non-governmental organizations (NGOs) received regular updates on WTO activities in 2016 including briefings on trade negotiations and other issues. They participated actively in the Public Forum the WTO’s main outreach event with NGOs.
Joining the WTO
Liberia and Afghanistan became the 163rd and 164th members of the WTO in 2016. Members agreed to start WTO membership talks for the Federal Republic of Somalia and the Democratic Republic of Timor-Leste and to welcome them as observers to the WTO. Comoros kicked off its accession negotiations while the working parties for the accession of Belarus and Sudan have resumed after interruptions of 12 and 13 years respectively.
Our year
WTO members focused on implementing decisions taken at the Nairobi and Bali ministerial conferences and on looking towards potential outcomes for the 11th Ministerial Conference (MC11) to be held in Buenos Aires in December 2017.
Trade in goods
In 2016 the Council for Trade in Goods addressed many trade concerns including ten new ones reflecting its growing role as a forum for airing concerns about measures policies and practices considered potentially discriminatory or trade restricting. China and Pakistan presented a proposal for advancing the WTO work programme on e-commerce. The Council also considered several waiver requests.
Standards and Trade Development Facility
The Standards and Trade Development Facility (STDF) continued to help developing countries improve their capacity to implement sanitary and phytosanitary (SPS) standards and to access wider markets. It supported the preparation and implementation of numerous new projects aimed at promoting compliance with international standards and facilitating market access. It also produced a user guide on how to prioritize SPS investments and published a series of case studies highlighting the results of recent projects.
General Council
In 2016 the WTO General Council oversaw the implementation of decisions taken at the Bali and Nairobi ministerial conferences as well as progress in trade negotiations work based on reports of the Director-General. It also reviewed progress in the work programme on electronic commerce. In December the General Council approved the establishment of two new working parties for the accessions of Somalia and Timor-Leste. The General Council decided that the 11th Ministerial Conference (MC11) will be held in Buenos Aires Argentina in December 2017.