About the WTO
Financial Services and the WTO
This paper analyses the results of the financial services negotiations under the General Agreement on Trade in Services (GATS) at the World Trade Organization (WTO). It shows that the negotiations have contributed to more stable and transparent policy regimes in many developing and transition countries. The wide range of market access and non-discrimination commitments should advance the process of progressive liberalization. The commitments do not compromise the ability of countries to pursue sound macroeconomic and regulatory policies. However other aspects of the outcome do raise some concerns. First there has been less emphasis on the introduction of competition through allowing new entry than on allowing (or maintaining) foreign equity participation and protecting the position of incumbents. Secondly even where immediate introduction of competition was not deemed feasible not much advantage has been taken of the GATS to lend credibility to liberalization programmes by precommitting to future market access.
European Communities - Customs Classification of Certain Computer Equipment
Complaints by the United States. These are in respect of the alleged reclassification by the European Communities for tariff purposes of certain Local Area Network (LAN) adapter equipment and personal computers with multimedia capability. The US alleged that these measures violate Article II of GATT 1994.
Fiscal Policy Cycles and the Exchange Regime in Developing Countries
The paper studies empirically fiscal policies around elections in 25 developing countries as affected by the exchange regime. It is argued that countries with flexible exchange regimes are less likely to engage in expansionary fiscal policies before elections because such policies can result in devaluations and inflation which affects government popularity adversely. The empirical results show that governments indeed try to improve their re-election prospects with the help of expansionary fiscal policies only in countries with fixed exchange rates and adequate reserve levels. For some countries this raises doubts about the usefulness of fixed exchange rates for stabilizing the macro economy unless reforms of the institutional framework reduce the scope for election-oriented fiscal expansion.
Reform in Basic Telecommunications and the WTO Negotiations
This paper examines liberalization of the basic telecommunications sector in a number of Asian countries and the role of the General Agreement on Trade in Services (GATS) in this process. It begins by explaining the working of the GATS as a mechanism for multilateral liberalization efforts. It then presents a description of the reforms taking place in the telecom regimes of selected Asian countries and of the commitments these countries made in the recent GATS negotiations. The paper explores the reasons why governments have taken advantage of the GATS negotiations to make multilateral market-opening commitments even though they were not pursuing export interests. The paper also considers the limits to what was achieved by way of liberalization commitments in the negotiations. Allowing greater foreign equity participation without liberalizing the conditions of entry may raise national welfare concerns. Furthermore certain governments could have taken greater advantage of the opportunity under GATS to precommit to future liberalization.
European Communities - Measures Concerning Meat and Meat Products (Hormones)
On 28 June 1996 Canada requested consultations with the European Communities regarding the importation of livestock and meat from livestock that have been treated with certain substances having a hormonal action under Article XXII of the GATT 1994 and the corresponding provisions in the SPS Agreement TBT Agreement and the Agreement on Agriculture. Canada alleges violation of Articles 2 3 and 5 of the SPS Agreement; Article III or XI of the GATT 1994; Article 2 of the TBT Agreement; and Article 4 of the Agreement on Agriculture.
EU Import Measures and the Developing Countries
The EU's import policies towards developing countries are complex stemming from important sectoral and country variations in policy. Average tariffs are modest and while there are tariff peaks and escalation in some areas of interest to developing countries these are being reduced as a result of the implementation of the results of the Uruguay Round. The use of non-tariff measures has fallen particularly as a result of agricultural tariffication and is being further reduced in textiles and clothing. The elimination of VERs has not led to an increase in the use of alternative measures. Contingency protection falls more heavily in chemicals iron and steel certain textile items and certain electrical consumer goods and on Asian Central and Eastern European and former Soviet Union countries. The operation of various factors appears to be working to mitigate the use of trade defence measures in recent years helping to counter pressures that seem likely to arise as liberalization proceeds.
Regulatory Autonomy and Multilateral Disciplines
A major challenge for the multilateral trading system is to secure the benefits of trade liberalization without infringing on the freedom of governments to pursue legitimate domestic objectives. The difficulty lies in distinguishing between two types of situations. In one a non-protectionist government cannot prevent certain domestic policies from incidentally discriminating against foreign competitors. In the other a protectionist government uses a legitimate objective as an excuse to design domestic policies which inhibit foreign competition. The challenge is to devise rules which are sensitive to the difference between these two situations exonerating the former while preventing the latter. The approach suggested in this paper is to create a presumption in favour of the economically efficient policy measure with departures inviting justification.
India - Patent Protection for Pharmaceutical and Agricultural Chemical Products
On 7 April 1997 the US requested consultations with Japan in respect of the latter’s prohibition under quarantine measures of imports of certain agricultural products. The US alleged that Japan prohibits the importation of each variety of a product requiring quarantine treatment until the quarantine treatment has been tested for that variety even if the treatment has proved to be effective for other varieties of the same product. The US alleged violations of Articles 2 5 and 8 of the SPS Agreement Article XI of GATT 1994 and Article 4 of the Agreement on Agriculture. In addition the US made a claim for nullification and impairment of benefits.
Argentina - Measures Affecting Imports of Footwear, Textiles, Apparel and Other Items
On 4 October 1996 the US requested consultations with Argentina concerning the imposition of specific duties on these items in excess of the bound rate and other measures by Argentina. The US contended that these measures violate Articles II VII VIII and X of GATT 1994 Article 2 of the TBT Agreement Article 1 to 8 of the Agreement on the Implementation of Article VII of GATT 1994 and Article 7 of the Agreement on Textiles and Clothing.
European Communities - Regime for the Importation, Sale and Distribution of Bananas
Complaints by Ecuador Guatemala Honduras Mexico and the United States. The complainants in this case other than Ecuador had requested consultations with the European Communities on the same issue on 28 September 1995 (DS16). After Ecuador’s accession to the WTO the current complainants again requested consultations with the European Communities on 5 February 1996. The complainants alleged that the European Communities’ regime for importation sale and distribution of bananas is inconsistent with Articles I II III X XI and XIII of the GATT 1994 as well as provisions of the Import Licensing Agreement the Agreement on Agriculture the TRIMs Agreement and the GATS.
European Communities - Regime for the Importation, Sale and Distribution of Bananas
Complaints by Ecuador Guatemala Honduras Mexico and the United States. The complainants in this case other than Ecuador had requested consultations with the European Communities on the same issue on 28 September 1995 (DS16). After Ecuador’s accession to the WTO the current complainants again requested consultations with the European Communities on 5 February 1996. The complainants alleged that the European Communities’ regime for importation sale and distribution of bananas is inconsistent with Articles I II III X XI and XIII of the GATT 1994 as well as provisions of the Import Licensing Agreement the Agreement on Agriculture the TRIMs Agreement and the GATS.
India - Patent Protection for Pharmaceutical and Agricultural Chemical Products
On 7 April 1997 the US requested consultations with Japan in respect of the latter’s prohibition under quarantine measures of imports of certain agricultural products. The US alleged that Japan prohibits the importation of each variety of a product requiring quarantine treatment until the quarantine treatment has been tested for that variety even if the treatment has proved to be effective for other varieties of the same product. The US alleged violations of Articles 2 5 and 8 of the SPS Agreement Article XI of GATT 1994 and Article 4 of the Agreement on Agriculture. In addition the US made a claim for nullification and impairment of benefits.
European Communities - Measures Concerning Meat and Meat Products (Hormones)
On 26 January 1996 the United States requested consultations with the European Communities claiming that measures taken by the EC under the Council Directive Prohibiting the Use in Livestock Farming of Certain Substances Having a Hormonal Action restrict or prohibit imports of meat and meat products from the United States and are apparently inconsistent with Articles III or XI of the GATT 1994 Articles 2 3 and 5 of the SPS Agreement Article 2 of the TBT Agreement and Article 4 of the Agreement on Agriculture.
European Communities - Measures Concerning Meat and Meat Products (Hormones)
On 28 June 1996 Canada requested consultations with the European Communities regarding the importation of livestock and meat from livestock that have been treated with certain substances having a hormonal action under Article XXII of the GATT 1994 and the corresponding provisions in the SPS Agreement TBT Agreement and the Agreement on Agriculture. Canada alleges violation of Articles 2 3 and 5 of the SPS Agreement; Article III or XI of the GATT 1994; Article 2 of the TBT Agreement; and Article 4 of the Agreement on Agriculture.
Canada - Certain Measures Concerning Periodicals
On 11 March 1996 the United States requested consultations with Canada concerning certain measures prohibiting or restricting the importation into Canada of certain periodicals. The US claimed that the measures are in contravention of GATT Article XI. The US further alleged that the tax treatment of so-called “split-run” periodicals and the application of favourable postage rates to certain Canadian periodicals are inconsistent with GATT Article III.
Mercosur
MERCOSUR is one of the most important examples of renewed world-wide interest in regional trade agreements. It may be seen as a consolidation of unilateral reforms undertaken in conjunction with major macroeconomic adjustments. The paper reviews the objectives of MERCOSUR and assesses its achievements focusing on institutions and fulfilment of commitments. It concludes that considerable progress has been made to achieving a customs union and even beyond that towards a common (but not EU-style single) market but there are a number of areas where progress is still to be made.
United States - Measure Affecting Imports of Woven Wool Shirts and Blouses from India
On 30 December 1994 India requested consultations with the United States concerning the transitional safeguard measure imposed by the United States. India claimed that the safeguard measure is inconsistent with Articles 2 6 and 8 of the ATC.
Canada - Certain Measures Concerning Periodicals
On 11 March 1996 the United States requested consultations with Canada concerning certain measures prohibiting or restricting the importation into Canada of certain periodicals. The US claimed that the measures are in contravention of GATT Article XI. The US further alleged that the tax treatment of so-called “split-run” periodicals and the application of favourable postage rates to certain Canadian periodicals are inconsistent with GATT Article III.
Brazil - Measures Affecting Desiccated Coconut
On 27 November 1995 the Philippines requested consultations with Brazil in respect of a countervailing duty imposed by Brazil on the Philippine’s exports of desiccated coconut. The Philippines claimed that this duty was inconsistent with WTO and GATT rules.
United States - Restrictions on Imports of Cotton and Man-Made Fibre Underwear
On 22 December 1995 Costa Rica requested consultations with the United States concerning US restrictions on textile imports from Costa Rica. Costa Rica alleged that these restrictions were in violation of the ATC agreement.