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Annual Report 1999
The Annual report of the WTO focuses on the regular activities of the organization the details of its current structure staff and budget. The Annual report is published in the first half of each year.
Whether and When to Liberalize Capital Account and Financial Services
Discussions about international capital movements raise extremely important and controversial questions. Why should countries open up their capital accounts especially considering that unrestricted international capital movement is a relatively new phenomenon? For example many OECD countries have not eliminated their foreign exchange restrictions only until the 1980's. If the answer is unequivocally affirmative does it matter how fast should countries do so? Should they wait until "all essential pieces" of the policy package are in place before they eliminate all restrictions? How are international capital movements related to domestic financial sectors? Is there a difference between opening to competition an industry such as car manufacturing as compared to the banking sector? Should the opening of the banking sector be governed by different rules? Rules about foreign exchange restrictions are already in place in the IMF Articles. Until recently the IMF Articles only called for the elimination of foreign exchange restrictions on the current account. The ongoing discussion and the controversy about globalization that calls for the capital account liberalization introduces therefore a relatively new element into the whole discussion. These questions have also implications for the World Trade Organization. It is well known that the Uruguay Round Agreements have already provided a coverage for a number of aspects that are directly related to foreign investment. Rules established elsewhere such as in the context of changes to the IMF Articles will obviously have an important bearing for the implementation of rules agreed in the Uruguay Round. This raises a variety of other questions in the mind of some observers. Who should decide about the rules on capital account liberalization? What rules? IMF? What is the role of the WTO? How does one link the two? All of the questions raised above are clearly extremely important and most of them are discussed in the following paper by John Williamson. Mr. Williamson's presentation is based on his lecture and discussion which was delivered on 17 June 1999 at the WTO. The actual text that follows is a transcript of that lecture.
Turkey - Restrictions on Imports of Textile and Clothing Products
On 21 March 1996 India requested consultations with Turkey concerning Turkey’s imposition of quantitative restrictions on imports of a broad range of textile and clothing products. India claimed that those measures are inconsistent with Articles XI and XIII of GATT 1994 as well as ATC Article 2. Earlier India had requested to be joined in the consultations between Hong Kong and Turkey on the same subject matter (WT/DS29).
Canada - Measures Affecting the Importation of Milk and the Exportation of Dairy Products
On 8 October 1997 the United States requested consultations with Canada in respect of export subsidies allegedly granted by Canada on dairy products and the administration by Canada of the tariff-rate quota on milk. The United States contended that these export subsidies by Canada distort markets for dairy products and adversely affect US sales of dairy products. The United States alleged violations of Articles II X and X1 of the GATT 1994 Articles 3 4 8 9 and 10 of the Agreement on Agriculture Article 3 of the SCM Agreement and Articles 1 2 and 3 of the Import Licensing Agreement.
United States - Tax Treatment for "Foreign Sales Corporations"
On 18 November 1997 the European Communities requested consultations with the United States in respect of Sections 921-927 of the US Internal Revenue Code and related measures establishing special tax treatment for “Foreign Sales Corporations” (FSC). The European Communities contended that these provisions were inconsistent with the United States' obligations under Articles III:4 and XVI of the GATT 1994 Articles 3.1(a) and (b) of the SCM Agreement and Articles 3 and 8 of the Agreement on Agriculture.
A Quantitative Assessment of Electronic Commerce
This paper tries to assess quantitatively the role of electronic commerce in economic activity and in trade and tariff revenue collection. The share of value added that potentially lends itself to electronic trade represents around 30 percent of GDP most importantly distribution finance and business services. Electronic commerce is also likely to boost trade in many services sectors significantly. Despite the growing importance of electronic commerce for economic activity and trade tariff revenue loss from electronic commerce is likely to be minimal. Trade in potentially digitizable media goods which currently faces a tariff in some countries represents less than one percent of total world trade. The revenue collected on these products amounts to less than one percent of total tariff revenue in most countries. Even if some of this trade moved “online” tariff revenue loss would be only a very small share of tariff revenue.
India - Quantitative Restrictions on Imports of Agricultural, Textile and Industrial Products
On 15 July 1997 the US requested consultations with India in respect of quantitative restrictions maintained by India on importation of a large number of agricultural textile and industrial products. The US contended that these quantitative restrictions including the more than 2700 agricultural and industrial product tariff lines notified to the WTO are inconsistent with India’s obligations under Articles XI:1 and XVIII:11 of GATT 1994 Article 4.2 of the Agreement on Agriculture and Article 3 of the Agreement on Import Licensing Procedures.
Canada - Measures Affecting the Export of Civilian Aircraft
On 10 March 1997 Brazil requested consultations with Canada in respect of certain subsidies granted by the Government of Canada or its provinces intended to support the export of civilian aircraft. The request was made pursuant to Article 4 of the SCM Agreement. Brazil contended that these measures are inconsistent with Article 3 of the SCM Agreement.
Brazil - Export Financing Programme for Aircraft
On 19 June 1996 Canada requested consultations with Brazil under Article 4 of the SCM Agreement which provides for special procedures for export subsidies. Canada claimed that export subsidies granted under the Brazilian Programa de Financiamento às Exportações (PROEX) to foreign purchasers of Brazil’s Embraer aircraft are inconsistent with Articles 3 27.4 and 27.5 of the SCM Agreement.
European Communities - Measures Concerning Meat and Meat Products (Hormones) - Original Complaint by Canada
On 12 July 1999 the WTO issued the dispute panel reports in the case "European Communities - Measures concerning meat and meat products (hormones) - Original complaint by Canada".
European Communities - Measures Concerning Meat and Meat Products (Hormones) - Original Complaint by the United States
On 12 July 1999 the WTO issued the dispute panel reports in the case "European Communities - Measures concerning meat and meat products (hormones) - Original complaint by the United States".
Argentina - Safeguard Measures on Imports of Footwear
On 10 November 2000 the EC requested consultations with the US concerning the continued application by the United States of countervailing duties on a number of products. In particular the EC claimed that the application of the “same person” methodology by the US and the continued imposition of duties based on it are in breach of Articles 10 19 and 21 of the SCM Agreement because there is no proper determination of a benefit to the producer of the goods under investigation as required by Article 1.1(b) of the SCM Agreement. The EC included in this request for consultations 14 US countervailing duty orders1 where this “same person” methodology was applied. All these cases involve alleged non-recurring subsidies granted to firms prior to a change of ownership;
Korea - Definitive Safeguard Measure on Imports of Certain Dairy Products
On 12 August 1997 the EC requested consultations with Korea in respect of a definitive safeguard measure imposed by Korea on imports of certain dairy products. The EC contended that under the provisions of different governmental measures Korea has imposed a safeguard measure in the form of an import quota on imports of certain dairy products. The EC considered that this measure is in violation of Articles 2 4 5 and 12 of the Agreement on Safeguard Measures as well as a violation of Article XIX of GATT 1994.
Chile - Taxes on Alcoholic Beverages
On 4 June 1997 and 15 December 1997 the EC requested consultations with Chile in respect of Chile’s Special Sales Tax on spirits which allegedly imposes a higher tax on imported spirits than on Pisco a locally brewed spirit. The EC’s second request (WT/DS110) takes issue with the modification to the law on taxation on alcoholic beverages passed by Chile to address the concerns of the EC in WT/DS87. The EC contended that this differential treatment of imported spirits violates Article III:2 of GATT 1994.
Turkey - Restrictions on Imports of Textile and Clothing Products
On 21 March 1996 India requested consultations with Turkey concerning Turkey’s imposition of quantitative restrictions on imports of a broad range of textile and clothing products. India claimed that those measures are inconsistent with Articles XI and XIII of GATT 1994 as well as ATC Article 2. Earlier India had requested to be joined in the consultations between Hong Kong and Turkey on the same subject matter (WT/DS29).
Australia - Subsidies Provided to Producers and Exporters of Automotive Leather
On 4 May 1998 the United States requested consultations with Australia in respect of prohibited subsidies allegedly provided to Australian producers and exporters of automotive leather including subsidies provided to Howe and Company Proprietary Ltd. (or any of its affiliated and/or parent companies) which allegedly involve preferential government loans of about $A25 million and non-commercial terms and grants of about $A30 million. The United States contended that these measures violate the obligations of Australia under Article 3 of the SCM Agreement.
Canada - Measures Affecting the Importation of Milk and the Exportation of Dairy Products
On 8 October 1997 the United States requested consultations with Canada in respect of export subsidies allegedly granted by Canada on dairy products and the administration by Canada of the tariff-rate quota on milk. The United States contended that these export subsidies by Canada distort markets for dairy products and adversely affect US sales of dairy products. The United States alleged violations of Articles II X and X1 of the GATT 1994 Articles 3 4 8 9 and 10 of the Agreement on Agriculture Article 3 of the SCM Agreement and Articles 1 2 and 3 of the Import Licensing Agreement.
Brazil - Export Financing Programme for Aircraft
On 19 June 1996 Canada requested consultations with Brazil under Article 4 of the SCM Agreement which provides for special procedures for export subsidies. Canada claimed that export subsidies granted under the Brazilian Programa de Financiamento às Exportações (PROEX) to foreign purchasers of Brazil’s Embraer aircraft are inconsistent with Articles 3 27.4 and 27.5 of the SCM Agreement.
Canada - Measures Affecting the Export of Civilian Aircraft
On 10 March 1997 Brazil requested consultations with Canada in respect of certain subsidies granted by the Government of Canada or its provinces intended to support the export of civilian aircraft. The request was made pursuant to Article 4 of the SCM Agreement. Brazil contended that these measures are inconsistent with Article 3 of the SCM Agreement.
European Communities - Regime for the Importation, Sale and Distribution of Bananas
On 09 April 1999 the WTO issued the dispute panel reports in the case "European communities - Regime for the importation sale and distribution of bananas".