WTO accessions

The African Union’s (AU) priorities at the WTO reflect the priorities of the WTO’s African member states that the multilateral trading system should contribute to the economic development of their economies through the elaboration of equitable, fair and development-friendly rules. The position of the AU is consistent with the recently adopted United Nations Sustainable Development Goals (SDGs), which also see trade as being critical to achieving the goal of eradicating extreme poverty everywhere. The AU’s priority is, therefore, to see WTO outcomes that serve to facilitate the structural economic transformation and development of developing and least-developed African countries in line with the vision of the African Union’s Agenda 2063.

What have WTO accessions contributed to the rules-based multilateral trading system? What demands have been made by original WTO members on acceding governments? How have the acceding governments fared? This volume of essays offers critical readings on how WTO accession negotiations have expanded the reach of the multilateral trading system not only geographically but also conceptually, clarifying disciplines and pointing the way to their further strengthening in future negotiations. Members who have acceded since the WTO was established now account for twenty per wto_cent of total WTO membership. In the age of globalization there is an increased need for a universal system of trade rules. Accession negotiations have been used by governments as an instrument for domestic reforms, and one lesson from the accession process is that there are contexts which lead multilateral trade negotiations to successful outcomes even in the complex and multi-polar twenty-first-century economic environment. The contributions in this volume illuminate the pressing question regarding why some trade negotiations fail, some stall and others succeed.

The high economic growth rates that have been achieved by many countries in Asia have led to a contemporary world economy that is multipolar. This has had repercussions for the WTO, as well as for other multilateral organisations. The deadlock in the WTO’s Doha Round has led the United States and the European Union increasingly to turn their attention towards the negotiation of preferential trade agreements, including so-called ‘mega-regional’ partnerships. This chapter discusses some of the implications for – and possible responses by – the economies that have the greatest stake in a well-functioning multilateral trading system. These economies may find themselves caught in the midst of disagreements between the major trading nations, with few prospects of participating in the mega-regionals. The chapter argues that these economies – including those that have acceded to the WTO since its creation – need to take a more proactive leadership role in the WTO to enhance the transparency of what is done in the ‘megaregionals’ and to facilitate the pursuit of rule-making initiatives in the WTO on a plurilateral basis.

This chapter is structured around three questions. What advances have been made on services market opening? what have been the specific market access commitments of least-developed countries (LDCs)? And what is the progress made with domestic regulation disciplines? This chapter examines the extent to which the services-specific commitments and domestic regulatory disciplines of Article XII members differ from those undertaken by original WTO members at similar levels of development. Although no single indicator exists that can be used to make this comparison, given the textual nature of specific commitments, as opposed to the numerical properties of tariffs, several other possible parameters exist, which could be used alone or in combination to assess such departures. The evidence and patterns in Article XII members’ services market access commitments and regulatory state-of-play and advances are examined. The trends and patterns in the depth and sectoral coverage of commitments are identified. The results from accession negotiations on the rules are reviewed with particular focus on how they compare to the envisaged disciplines on domestic regulation under the General Agreement on Trade in Services Article VI:4. Finally, the performance of Article XII LDC members in their WTO accession services negotiations is reviewed. Overall, the evidence indicates that Article XII members’ services bindings go further than those of original WTO members.

Forms of collective action and balanced commitment through negotiations were the foundation of the General Agreement on Tariffs and Trade (GATT) and the structure for its daily work. These remain at the centrepiece of work in the WTO, in a system structured on the balance of rights and obligations. GATT contracting parties established the principles of balance and reciprocity, trade liberalisation and a system of mediation and dispute settlement for mutual resolution of GATT provisions. From this base, expansion of membership, pursuant to accession negotiations, has required a commitment to accepting GATT/WTO rules resulting from previous negotiations. WTO accession supports applicants’ efforts for economic reform and integration into world markets. This is one of the most important benefits of membership. Although challenging, accession negotiations and the implementation of WTO provisions support important economic goals such as sustainable growth, the promotion of high-tech industries, attraction of foreign direct investment, raised living standards and global assertion of national trade interest.

Where are the legal roots of WTO Accession Protocols? How much was carried over from the General Agreement on Tariffs and Trade standard and practice? What customary practice governs the preparation and approval of accession decisions and protocols? What is the current substantive standard and basic architecture of Accession Protocols? Are there unique provisions in Accession Protocols that have emerged in twenty years of WTO accession history? To what extent do Accession Protocols come into play in the context of WTO dispute settlement? By comparing the empirical data contained in the WTO Accession Protocols with preceding GATT Accession Protocols, this chapter offers waterfront coverage of WTO Accession Protocols from the GATT baseline. The chapter shows that, although rooted in its GATT predecessor base, and remarkably consistent over time, some unique provisions have been incorporated into the architecture of the WTO Accession Protocols since 1995. Because Accession Protocols become integral parts of WTO Agreement after they come into force, the chapter argues that the specific ‘terms and conditions of accession’ in WTO Accession Protocols have had a direct and salutary impact on the entirety of the WTO Agreement through its tightened safeguard and upgrade. The chapter concludes by arguing that the evidence suggests that the WTO Agreement has been expanded by the absorption of the Accession Protocols over the course of the last twenty years, and that the effect on the WTO Agreement has been significant, rather than marginal.

Foreign direct investment and trade are increasingly interlinked due to the deepening integration of trade and production networks. Today, there is an ever-increasing percentage of imports in a country’s production. Responding to this increase, some countries have sought to limit the percentage of imports in their production by requiring that foreign investors use locally produced inputs, as an aspect of implementing priorities in development plans and/or strategic industrial policy. These policies and priorities have also been complicated and exacerbated by protectionism, whereby countries discriminate blatantly in order to promote local industries with policies that grant more favours to local producers and/or products and materials. All these practices impact negatively on international trade by distorting the conditions for fair competition. Although different rules have been developed at an international level to streamline these practices, currently there is no single comprehensive framework to govern them at the multilateral level. Despite this, WTO members, through accessions, have negotiated with acceding governments to refine and improve extant investment-related rules in the WTO. This chapter argues that WTO-specific outcomes, as in deposited Accession Protocols, have contributed to improving significantly the predictability of the investment regulatory laws and policies of Article XII members, reinforcing existing investment-related rules on trade in goods and services, and enhancing the business-friendliness of WTO rules and the relationship with the private sector (including through expanded opportunities for investment), by binding, for example, their status quo policies and rules, and accession-specific obligations codified in domestic law and regulation.

The WTO Agreement on Government Procurement (GPA) is unique in its duality as an international trade agreement that promotes and preserves market opening and as an instrument for the promotion of good governance. The recent successful renegotiation of the GPA has enhanced its coverage so that it now provides access to markets valued at US$1.7 trillion annually. In addition, the text of the GPA has been effectively modernised, making it more relevant, economically, and simplifying its implementation. Although not a substitute for domestic procurement reforms, it is a catalytic and reinforcing factor for reforms that enhance transparency and competition internally – thereby yielding important gains for governments and citizens in terms of value for money in national procurement activities. Participation in the GPA can also promote inward foreign direct investment by signalling a country’s commitment to good governance and the fair treatment of all players under national legislation. The review in this chapter of the evidence from WTO and GPA accessions indicates that the WTO accession negotiations of Article XII members are often used to leverage increased GPA accessions. Specifically, of the members that have acceded to the WTO pursuant to Article XII of the Marrakesh Agreement Establishing the WTO (WTO Agreement), twenty-two have undertaken GPA-related commitments, and seven subsequently joined the GPA. Out of the ten WTO members that are currently seeking accession to the GPA, nine undertook commitments related to GPA accession at the time of their WTO accessions, pursuant to Article XII of the WTO Agreement. The chapter concludes that, even though WTO accession and GPA accession are formally separate steps, the basic policy decision as to whether to join the GPA is often made long before GPA accession negotiations are started, at the time of WTO accession. This chapter provides countries and other WTO members considering taking on accession commitments with a strengthened understanding of the relevant benefits and costs.

This chapter posits that leaving WTO accession in the hands of trade experts or commercial specialists within the acceding government can be unwise. Accession to the WTO goes far beyond the remit of the trade, commerce and/or foreign ministry, and even beyond the responsibilities of the minister. In order to conclude an accession, what is required of the acceding government will involve many, if not most, ministries, call upon governmental agencies and other authorities and may very well include both regional and municipal levels of government. The acceding government must expect to make hard policy choices. Poorer developing countries are likely to come across particular challenges and solutions. Given the demanding nature of this process, it is important that the acceding government is entirely convinced, before embarking upon the process, that it has the right motivations and expectations in wishing to become a member of the WTO.

This chapter focuses on the objectives of the Eurasian Economic Union (EAEU) of the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, Kyrgyz Republic and the Russian Federation within the multilateral trading system. The EAEU has become one of the largest trading blocs in the world, with a land area of more than 20 million square kilometres and a population of more than 176 million people. This chapter analyses the history of Eurasian integration and presents its current status, as well as the prospects of the Eurasian Economic Union for 2015.