MCuuLL lll

ulSu1L SL11LLMLn1 8CCLuu8L

W Cne of Lhe unlque feaLures of Lhe W1C ls lLs
provlslon relaLlng Lo dlspuLe seLLlemenL
mechanlsm ln facL Lhe power Lo seLLle Lrade
dlspuLes ls whaL ls Lhe dlfference beLween Lhe
W1C and CA11
W When a member flles a complalnL agalnsL
anoLher Lhe dlspuLe seLLlemenL body of Lhe
W1C sLeps ln lmmedlaLely
1
W ueclslons have Lo be Laken ln less Lhan 1 year 9
monLhs lf Lhe case ls urgenL 13 monLhs lf Lhe
case ls appealed 1he dlspuLe seLLlemenL sysLem
of W1C ls fasLer and auLomaLlc and Lhe declslons
cannoL be lgnored or blocked by members
W Cffendlng counLrles musL reallgn Lhelr Lrade
pollcles accordlng Lo Lhe W1C guldellnes or suffer
flnanclal penalLles and even Lrade sancLlons
W 8ecause of lLs ablllLy Lo penallze offendlng
member naLlons Lhe W1C dlspuLe seLLlemenL ls
Lhe backbone of Lhe global Lradlng sysLem
2
W 1he cosLs of dlspuLe seLLlemenL proceedlngs
are dlsproporLlonaLely heavy for developlng
counLrles
W ln general developlng counLrles do noL en[oy
a neuLral playlng fleld AlLhough Lhe dlspuLe
seLLlemenL procedure ls noL blased agalnsL
any parLy ln a dlspuLe developlng counLrles
are less well equlpped Lo parLlclpaLe ln Lhe
process Lhey have fewer people wlLh
3
W necessary Lralnlng Lhey are less experlenced
and as noLed above Lhey face resource
consLralnL
4
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
Cvervlew
Cvera|| a|m Cvera|| a|m
W W Lo secure compllance Lo secure compllance
wlLh Lhe AgreemenLs wlLh Lhe AgreemenLs
;as| ;as| [|c|a| Natre [|c|a| Natre
W Secured access
W ueLalled procedures
W AuLomaLlclLy ln Lhe
proceedlngs
W ueadllnes
W osslble appeal
5
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
Scope
W W |tegrate |tegrate
system system
W Applles Lo all Lhe
mulLllaLeral
agreemenLs
W A slngle seL of rules for
all dlspuLes
Cnly a few speclflc rules
ln some agreemenLs
6
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
Maln players
W W ulspuLe SeLLlemenL 8ody (uS8) ulspuLe SeLLlemenL 8ody (uS8)
W W anel and AppellaLe 8ody anel and AppellaLe 8ody
W W arLles W1C Members arLles W1C Members
W W W1C SecreLarlaL W1C SecreLarlaL
7
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
8elaLlonshlp of players
8
Panel
Appellate Body
Ministerial Conference
Dispute Settlement Body
(General Council)
Request for Panel
by WTO Member
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
Maln rocedures
mplementation
Appelate Body
Panel
Consultations

days
9 months
9 days
15 months
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
ConsulLaLlons Lhe requesL
W lndlcaLes reasons for Lhe requesL
ldenLlflcaLlon of
Lhe measures
legal basls for complalnL
W noLlfled Lo uS8 and clrculaLed Lo
all Members
10
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
ConsulLaLlons funcLlon
W Lo accord sympaLheLlc conslderaLlon Lo and
accord adequaLe opporLunlLy for consulLaLlon"
W confldenLlal only beLween Lhe Members
concerned
11
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
ConsulLaLlons Lhlrd parLles
W W 8uL ln some lnsLances oLher Members can requesL 8uL ln some lnsLances oLher Members can requesL
Lo be [olned ln Lhe consulLaLlons Lo be [olned ln Lhe consulLaLlons ArLlcle 411 uSu
subsLanLlal Lrade lnLeresL"
12
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
ConsulLaLlons lf noL successful
W lf consulLaLlons fall Lo resolve Lhe maLLer wlLhln ays
from recelpL of requesL
W Cr lf no response or no enLerlng lnLo consulLaLlons
W A requesL for esLabllshmenL of a panel can be made A requesL for esLabllshmenL of a panel can be made
13
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
LsLabllshmenL of panels
W W 8equesL for esLabllshmenL 8equesL for esLabllshmenL
musL ldenLlfy Lhe speclflc measures aL lssue and provlde a brlef
summary of Lhe legal basls of Lhe problem sufflclenL Lo presenL
Lhe problem clearly"
W W LsLabllshmenL LsLabllshmenL
aL Lhe laLesL aL Lhe second uS8 meeLlng aL whlch Lhe requesL ls
made declded by egat|ve cosess egat|ve cosess
14
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
1erms of reference and composlLlon of panels
1erms of reference 1erms of reference
(ArLlcle 7 uSu)
W W SLandard or SLandard or
W W Speclal Lerms of Speclal Lerms of
reference reference
anel ComposlLlon anel ComposlLlon
(ArLlcle 8 uSu)
W wellquallfled governmenL
and/or nongovernmenLal
lndlvlduals"
W SecreLarlaL proposals
W lndlcaLlve llsL of panellsLs
W nomlnaLlon by uC
15
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
anels how Lhey funcLlon
luncLlons of Lhe anel luncLlons of Lhe anel
a panel should make an ob[ecLlve assessmenL of Lhe
maLLer before lL lncludlng an ob[ecLlve assessmenL of Lhe
facLs of Lhe case and Lhe appllcablllLy of and conformlLy
wlLh Lhe relevanL covered agreemenLs"
luncLlons of Lhe dlspuLe seLLlemenL sysLem luncLlons of Lhe dlspuLe seLLlemenL sysLem
Lo preserve Lhe rlghLs and obllgaLlons of Members under Lhe
covered agreemenLs and Lo clarlfy Lhe exlsLlng provlslons of Lhose
agreemenLs ln accordance wlLh cusLomary rules of lnLerpreLaLlon of
publlc lnLernaLlonal law" ArL 32 uSu
16
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
anel rocedures maln sLeps
W W Cral hearlngs (usually 2) on Cral hearlngs (usually 2) on basls of wrlLLen basls of wrlLLen
submlsslons submlsslons
W W uescrlpLlve parL of reporL lssued Lo parLles uescrlpLlve parL of reporL lssued Lo parLles
W W lnLerlm revlew based on drafL reporL lnLerlm revlew based on drafL reporL
W W llnal reporL lssued Lo parLles llnal reporL lssued Lo parLles
W W llnal reporL clrculaLed Lo all Members llnal reporL clrculaLed Lo all Members
17
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
anel rocedures oLher sources of lnpuL
1hlrd parLles have make presenLaLlons 1hlrd parLles have make presenLaLlons
W W need subsLanLlal lnLeresL" need subsLanLlal lnLeresL" (ArLlcle 10 uSu)
anels may seek anels may seek
W W facLual lnformaLlon from any relevanL source facLual lnformaLlon from any relevanL source
(ArLlcle 13 uSu)
W W sclenLlflc or Lechnlcal advlce from an LxperL sclenLlflc or Lechnlcal advlce from an LxperL
revlew group revlew group (Appendlx 4 uSu)
8equlremenL of confldenLlallLy 8equlremenL of confldenLlallLy (ArLlcle 14 uSu)
18
ulspuLe SeLLlemenL ln Lhe W1C
anel rocedures duraLlon
W As a general rule moths from esLabllshmenL of
panel Lo conslderaLlon of reporL for adopLlon (lf no
appeal)
W moths where reporL ls appealed
(ArLlcle 20 uSu)
1
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
anel procedures AdopLlon of anel 8eporLs
W AdopLlon w|th|
ays of c|rc|at|o by
negaLlve consensus
Lxcept Lxcept lf lf appea|e appea|e
20
ulspuLe SeLLlemenL ln Lhe W1C
AppellaLe 8evlew
W W Appeals llmlLed Lo lssues Appeals llmlLed Lo lssues
of law and legal of law and legal
lnLerpreLaLlons developed lnLerpreLaLlons developed
by Lhe panel" by Lhe panel"
W W Appeal only open Lo Appeal only open Lo
parLles Lo Lhe dlspuLe parLles Lo Lhe dlspuLe
ppe||ate 8oy ppe||ate 8oy
W 7 members
W members Lo have
recognlzed auLhorlLy and
experLlse ln lnLernaLlonal
Lrade law
W members unafflllaLed wlLh
any governmenL
21
ulspuLe SeLLlemenL ln Lhe W1C
AppellaLe 8evlew reporL and adopLlon
keport of the ppe||ate 8oy keport of the ppe||ate 8oy
W may uphold modlfy or reverse Lhe legal
flndlngs and concluslons of Lhe panel" (ArL
1712 uSu)
W W opt|o opt|o of ppe||ate 8oy report by
reverse consensus wlLhln 30 days of
clrculaLlon Lo Members
22
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
lmplemenLaLlon
W Member musL brlng Lhe brlng Lhe
measures lnLo conformlLy measures lnLo conformlLy
wlLh lLs W1C obllgaLlons wlLh lLs W1C obllgaLlons
(ArLlcle 19 uSu)
W Member musL lnform uS8
of lLs lnLenLlons ln for
lmplemenLaLlon of Lhe
recommendaLlons
(ArLlcle 1 uSu)
23
If there is a finding
of violation:
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
lmplemenLaLlon reasonable perlod of Llme
ueLermlnaLlon of reasoab|e per|o of reasoab|e per|o of
t|me t|me" for lmplemenLaLlon
W proposed by Member and approved by uS8 or
W muLually agreed by Lhe parLles or
W deLermlned Lhrough arb|trat|o arb|trat|o
guldellne for Lhe arblLraLor" 13 monLhs from Lhe daLe of
adopLlon (ArLlcle 213 uSu)
24
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
lmplemenLaLlon survelllance
W W Srve|||ace Srve|||ace by Lhe uS8 by Lhe uS8
SLaLus reporLs on lmplemenLaLlon
W 1emporary measures
lf Member falls Lo brlng measure lnLo
conformlLy wlLhln reasonable perlod of
Llme posslblllLy
W compesat|o or
W W sspes|o of cocess|os sspes|o of cocess|os (reLallaLlon)
25
ulspuLe SeLLlemenL ln Lhe W1C ulspuLe SeLLlemenL ln Lhe W1C
lmplemenLaLlon
Compesat|o Compesat|o
(ArLlcle 22 uSu)
W IolunLary
W negoLlaLed
W CompaLlble wlLh W1C AgreemenLs
W lf no compensaLlon agreed wlLhln 20 days
afLer explry of reasonable perlod of Llme
26
W 1he ma[or provlslons of Lhe flnal acL relaLe Lo
agrlculLure sanlLary measures helplng leasL
developed counLrles cloLhlng 18lS CA1S
and anLl dumplng measures
27
AC8lCuL1u8L
W 1he agreemenL relaLed Lo agrlculLure ls made up
of several elemenLs whlch seek Lo reform Lrade ln
agrlculLure and provlde Lhe basls for markeL
orlenLed pollcles Lhereby lmprovlng economlc
cooperaLlon for lmporLlng and exporLlng
counLrles allke lL esLabllshes new rules and
commlLmenLs ln markeL access domesLlc supporL
and exporL compeLlLlon and lncludes provlslons
LhaL encourage Lhe use of less Lrade dlsLorLlng
domesLlc pollcles Lo malnLaln Lhe rural economy
28
W lL also allows acLlon Lo be Laken Lo ease
ad[usLmenL burdens and provldes some
flexlblllLy ln Lhe lmplemenLaLlon of Lhe
commlLmenL Speclflc concerns for developlng
counLrles are addressed lncludlng Lhose of neL
food lmporLlng developlng counLrles and less
developed economles
2
LAL1 Anu SAlL1? MLASu8LS
W 1he agreemenL on Lhe appllcaLlon of sanlLary
and hyLosanlLary measures concerns Lhe
appllcaLlon of food safeLy and anlmal and
planL healLh regulaLlons lL recognlzes
governmenL rlghLs Lo Lake sanlLary and
phyLosanlLary measures buL sLlpulaLes LhaL
Lhey musL be based on sclence
30
W should be applled only Lo exLend necessary Lo
proLecL human anlmal or planL llfe or healLh
and should noL arblLrarlly or un[usLlflably
dlscrlmlnaLe among members where ldenLlcal
or slmllar condlLlons prevall
31
LLlnC LLAS1 uLILLCLu Anu
lCCu lMC81lnC CCun18lLS
W lL ls recognlzed LhaL durlng Lhe reform
programme leasL developed and neL
lmporLlng developlng counLrles may
experlence negaLlve effecLs wlLh regard Lo
glvlng food supplles on reasonable Lerms and
condlLlons Such counLrles need asslsLance
1herefore a speclal mlnlsLerlal declslon calls
for approprlaLe mechanlsms relaLed Lo Lhe
avallablllLy of food and Lhe provlslon of baslc
32
W loodsLuffs ln full granL form ald for
agrlculLural developmenL lL also refers Lo Lhe
posslblllLy of asslsLance from Lhe lMl and
world bank wlLh respecL Lo Lhe shorL Lerm
flnanclng of commerclal food lmporLs 1he
commlLLee on agrlculLure holds responslblllLy
Lo monlLor Lhe follow up Lo Lhe declslon
33
1Lx1lLLS Anu CLC1lnC
W 1he ob[ecLlve of Lhls agreemenL ls Lo secure
Lhe lnLegraLlon of LexLlles and Lhe cloLhlng
secLor where much of Lhe Lrade ls currenLly
sub[ecL Lo bllaLeral quoLa negoLlaLlons under
Lhe mulLl flbre agreemenL ( MlA ) lnLo Lhe
maln sLream of W1C 1he lnLegraLlon
however shall Lake place ln sLages
34
W All MlA resLrlcLlons ln force on 31
sL
december1994 would be carrled over lnLo Lhe
llnal AcL and malnLalned unLll such Llme as
Lhe resLrlcLlons are removed or Lhe producLs
lnLegraLed lnLo W1C
35
18lS ( 18AuL 8LLA1Lu
ln1LLLLC1uAL 8CL81? 8lC1S )
W 1he W1C AgreemenL on 18lS recognlzes LhaL
wldely varylng sLandards ln Lhe proLecLlon and
enforcemenL of lnLellecLual properLy rlghLs
and Lhe lack of mulLllaLeral dlsclpllnes deallng
wlLh lnLernaLlonal Lrade ln counLerfelL goods
have been a growlng source of Lenslon ln
lnLernaLlonal economlc relaLlons
36
W WlLh Lhls end ln vlew Lhe agreemenL
addresses Lhe appllcablllLy of baslc CA11
prlnclples and Lhose of relevanL lnLellecLual
properLy agreemenLs Lhe provlslon of
adequaLe lnLellecLual properLy rlghLs Lhe
provlslon of effecLlve enforcemenL measures
for Lhose rlghLs mulLllaLeral dlspuLe
seLLlemenL and LranslLlonal lmplemenLaLlon
arrangemenLs
37
1he 18lS conLaln of Lhree parLs
1 SeLs ouL Lhe provlslons and prlnclples
2 Addresses dlfferenL klnds of l8
3 Concerns enforcemenL
38
18lMS ( 18AuL 8LLA1Lu
lnILS1MLn1 MLASu8LS )
W MulLlnaLlonal llrms are aware of Lhe many
resLrlcLlons on Lhelr lnvesLmenLs ln forelgn
counLrles 18lMS are Lhose resLrlcLlons a
counLry places on forelgn lnvesLmenL LhaL
adversely affecL Lrade ln goods and servlces
3
W W1C members enLered Lhe agreemenL on
18lMS as a parL of Lhe uruguay 8ound
agreemenLs
W 1he agreemenL does noL seL broad rules for
lnvesLors ln a member counLry lL slmply
prohlblLs law or regulaLlons LhaL condlLlons a
counLry's rlghLs Lo lmporL forelgn goods on
Lhe volume of goods exporLed
W Also prohlblLed are laws LhaL condlLlon Lhe
recelpL of forelgn exchange on Lhe counLry's
forelgn exchange revenues
40
CA1S ( CLnL8AL AC8LLMLn1 Cn
18AuL ln SL8IlCLS )
1he CA1S negoLlaLed durlng Lhe uruguay
8ound ls Lhe flrsL sLep of mulLllaLerally agreed
and legally enforceable rules and dlsclpllnes
ever negoLlaLed Lo cover lnLernaLlonal Lrade ln
servlces
41
1he agreemenL conLalns Lhree elemenLs
1 A framework of general rules and dlsclpllnes
2 Annexes addresslng speclal condlLlons
relaLlng Lo lndlvldual secLors ( Lhe secLors
covered are movemenL of naLural persons
flnanclal servlces LelecommunlcaLlons and
alr LransporL servlces )
3 and naLlonal schedules of markeL access
commlLmenLs
A councll for 1rade ln Servlces oversees Lhe
operaLlon of Lhe agreemenL
42
AC8LLMLn1 Cn Su8SlulLS Anu
CCun1L8IAlLlnC MLASu8LS
( SCM )
W SCM ls Lhe ouLcome of negoLlaLlons durlng
uruguay 8ound under Lhe CA11 agreemenL
subsldles may be dealL wlLhln Lwo days
43
W llrsLly a W1C member counLry may appeal Lo
Lhe W1C for dlspuLe resoluLlon 1he W1C
may recommend LhaL Lhe subsldy may be
dlsconLlnued lLs harmful effecLs be
ellmlnaLed or a counLermeasure may be Laken
by Lhe lmporLlng counLry
W Secondly an lmporLlng counLry may lnlLlaLe
lLs own admlnlsLraLlve proceedlngs slmllar Lo
anLl dumplng measures Lo lmpose a
counLervalllng duLy on Lhe subsldlzed
producLs ln order Lo ellmlnaLe Lhelr unfalr
prlce advanLage
44
W A counLervalllng duLy ls a speclal Larlff ln
addlLlon Lo Lhe normal lmporL Larlff levled on
lmporLs of subsldlzed goods ln an amounL
equal Lo Lhe amounL of Lhe counLer vlable
subsldy A counLervalllng duLy may be
broughL aL Lhe same Llme as Lhe W1C dlspuLe
seLLlemenL acLlon
45
uuMlnC
W ln lmporLlng uumplng ls Lhe unfalr Lrade
pracLlce of selllng producLs ln a forelgn for less
Lhan Lhe prlce charged for Lhe same or
comparable goods ln Lhe producers home
markeL lL ls a form of prlce dlscrlmlnaLlon
LhaL causes ln[ury Lo domesLlc compeLlLors
Lhrough arLlflclally low prlces agalnsL whlch
domesLlc producers cannoL compeLe aL
proflLable level
46
W AnLl dumplng laws are used more frequenLly
Lhan any oLher Lype of Lrade law ln Lhe uS and
Lu
W ueveloplng counLrles such as Mexlco 8razll
ArgenLlna lndla and korea also have
anLldumplng codes
47
1L W1C An1luuMlnC
AC8LLMLn1
W 1he CA11 provlslons on dumplng are found ln
CA11 1994 ArLlcle Il and ln Lhe 1994 W1C
anLldumplng AgreemenL 1he 1994
agreemenL provldes complex rules for
deLermlnlng when dumplng has occurred and
for resolvlng dumplng dlspuLes
W Lvery W1C member counLry ls expecLed Lo
see LhaL lLs naLlonal anLl dumplng laws comply
wlLh Lhe W1C rules
48
W 1he W1C agreemenL provldes LhaL dumplng
occurs when forelgn goods are lmporLed for
sale aL a prlce less Lhan LhaL charged for
comparable goods ln Lhe exporLlng or
produclng counLry AnLl dumplng duLles may
be lmposed only when Lhe dumplng LhreaLens
or causes maLerlal ln[ury Lo domesLlc
lndusLry produclng llke producLs 1he
agreemenL requlres LhaL an lmporLlng counLry
4
W resorL Lo anLl dumplng duLles only afLer
conducLlng a formal lnvesLlgaLlon Lo
deLermlne boLh Lhe amounL of Lhe dumplng
and Lhe exLend of maLerlal ln[ury
50
hat is Dumping
W A producL ls sald Lo be dumped when lLs
exporL prlce ls less Lhan lLs normal value of a
llke producL ln Lhe domesLlc markeL ln Lhe
exporLlng counLry
51
nC8MAL IALuL
1he pr|ce | the exporter's omest|c market
or
1he pr|ce charge by the exporter | aother
cotry or
roct|o costs p|s other expeses a
orma| prof|t marg|s
52
W Dumping must cause material injury in the
importing market .
W %ypes of njury
Material injury to a domestic industry,
%hreat of material injury to a domestic
industry,
Material retardation of the establishment
of a domestic industry
53
Measures for 8emedlal AcLlon
mposition of anti dumping duties
Countervailing duties
Safeguard measures
54
lmpllcaLlons
nly an ndustry or Country and not a
Company can call for an anti-dumping
investigation
%ime consuming work to gather
information and prove dumping
55
Costly as in most cases the matter will be
referred to ndustrial courts
Difficult to recover losses during the
process of proving Dumping
Pre or Post introduction of dumping duties
56
lMC81S CuS1CMS Anu 1A8lll
W 1he W1C agreemenLs whlch are Lhe ouLcome
of 19861994 uruguay 8ound of mulLllaLeral
Lrade negoLlaLlons lnLroduce dlsclpllnes of a
wlder range of Lrade lssues and LesLlfy Lo a
wlder and deeper commlLmenL Lo Lrade
llberllsaLlon 1he scope of Lhese agreemenLs
exLends beyond Lhe LradlLlonal Lrade lssues
whlch prlmarlly addressed Lhe reducLlon of
Larrlfs and quoLa as barrlers agalnsL Lrade ln
goods aL counLry borders
57
W A wlde range of non Larlff barrlers Lo Lrade ls
now Lhe sub[ecL of a number of mulLllaLeral
and legally blndlng W1C agreemenLs 1hese
agreemenLs deal wlLh Lechnlcal and
bureaucraLlc measures or legal lssues LhaL
could lnvolve hlndrances Lo Lrade be used as
lnsLrumenLs for resLrlcLlve and dlscrlmlnaLory
Lrade pollcles
58
W 1hey lnclude agreemenLs on 1echnlcal 8arrlers
Lo 1rade SanlLary and phyLosanlLary
measures lmporL Llcenslng rocedures
8ules of Crlgln CusLoms IaluaLlon re
shlpmenL lnspecLlon AnLl uumplng Subsldes
and CounLervalllng Measures Safeguards and
1rade relaLed lnvesLmenL measures
W 1hese LreaLles afLer Lhe uruguay 8ound Lhey
have acqulred MulLllaLeral sLaLus le Lhey
became blndlng on all members
5
TECHNICAL BARRIER TO
TRADE
W LsLabllshmenL of W1C ulsmanLllng of
barrlers for free flow of Lrade
W CreaLlon of global markeL wlLh equal access Lo
all counLrles
W CuallLy healLh safeLy envlronmenLal
lssues galnlng lmporLance
60
TBT Agreement - Objectives
%Allows members Lo apply sLandards Lechnlcal
regulaLlons conformlLy assessmenL procedures
for
ptotectloo of bomoo sofety ot beoltb (sockets
seot belts lobellloq clqotettes)
ltotectloo of oolmol ploot llfe ot beoltb
(pollotloo extloct eq tottle exttoJet Jevlce)
ltotectloo of eovltoomeot (level of veblcle
emlssloos)
61
lteveotloo of Jeceptlve ptoctlces (lobellloq slze)
Otbet objectlves (poolltyslze of ftolts veqs tecb
botmoolzotlootelecom)
%owever need Lo ensure LhaL Lhese do noL
creaLe obsLacles Lo lnLernaLlonal Lrade
62
%Scope
Applles Lo all producLs lncludlng lndusLrlal agrl
producLs boLh volunLary sLandards Lechnlcal
regulaLlons(sLandards Lo whlch compllance
mandaLory)
%Covers
roducL characLerlsLlcs
rocess producLlon meLhods(M) LhaL have an
effecL on producL characLerlsLlcs
1ermlnology symbols
ackaglng labelllng requlremenLs
63
W Avoldance of unnecessary obsLacles Lo Lrade
W nondlscrlmlnaLlon naLlonal LreaLmenL
W armonlzaLlon
W Lqulvalence of Lechnlcal regulaLlons
W MuLual recognlLlon conformlLy assessmenL
procedures
W 1ransparency
64
Non-discrimination & national
treatment
W Most Iavore Nat|o 8as|s should apply
on a Mln basls Lo lmporLs from all sources
W Nat|oa| 1reatmet r|c|p|e shall noL
exLend Lo lmporLed producLs LreaLmenL less
favourable Lhan LhaL exLended Lo domesLlcally
produced producLs
65
Harmonization
W Why harmonize
eoeflts to ptoJocet can caLer Lo needs of all counLrles
leadlng Lo producLlons of scale eg cars moblles 1I seLs
eLc
8eneflLs Lo consumers wlde cholce spare parLs eLc
66
W Hormoni;ofion & T8T sLandards/Lech
regulaLlons/CA procedures Lo be conslsLenL
wlLh or based on lnLernaLlonal sLandards
unless Lhelr use lneffecLlve or lnapproprlaLe"
Lo fulflll ob[ecLlve
W 1echnlcal regulaLlons ln accordance wlLh
lnLernaLlonal sLandards are presumed noL Lo
creaLe unnecessary obsLacles Lo Lrade
W parLlclpaLe acLlvely ln work of lSC/oLher
lnLernaLlonal bodles
67
:t:al Recognition oI ConIormity
Assessment
W C proceres are Lhose used Lo deLermlne
LhaL requlremenLs meL lnclude sampllng
lnspecLlon LesLlng evaluaLlon verlflcaLlon of
conformlLy accredlLaLlon eLc
68
Transparency
W Not|f|cat|os
all proposed new and changed measures are Lo be
noLlfled by members Lo Lhe 181 CommlLLee of W1C
SecreLarlaL
Lo be provlded Lo members LranslaLed verslons lf
requesLed any devlaLlons from lnLernaLlonal sLandards
glve sufflclenL noLlce Lo allow for adapLlng Lo Lhese reqLs
lf Lechnlcal regulaLlon dlffers from lnLernaLlonal sLandards
need Lo also Lake lnLo accounL commenLs of exporLer
6
W 1ech|ca| ass|stace
provlded Lo developlng counLrles ln Lhe area of
seLLlng up nS8s parLlclpaLlon ln lnL
sLandardlzaLlon preparlng Lechnlcal regulaLlons
seLLlng up regulaLory bodles for CA acLlvlLles
meLhods of CA eLc
70
W Spec|a| D|fferet|a| 1reatmet
more favourable LreaLmenL Lo be provlded Lo
developlng counLrles
Lake lnLo accounL Lhelr speclal developmenLal
flnanclal Lrade needs when developlng Lech
regulaLlons sLandards and CA procedures so LhaL
no unnecessary obsLacles creaLed Lo exporLs from
developlng counLrles
71
Instit:tions, Cons:ltations &
Disp:te Settlement
W CommlLLee on 181 esLabllshed havlng
represenLaLlves from each members meeL 23
Llmes a year for dlscusslng operaLlon of
AgreemenL or furLherance of ob[ecLlves
72
W ConsulLaLlons seLLlemenL of dlspuLes shall
be under ausplces of ulspuLe SeLLlemenL 8ody
of W1C owever a provlslon for Lechnlcal
experL groups Lo asslsL ln lssues of Lechnlcal
naLure has been provlded
73
ey Feat:res Ior Preparation,
adoption & Application oI
Technical Reg:lations
W Most Iavore Nat|o 8as|s should apply
on a Mln basls Lo lmporLs from all sources
74
W Nat|oa| 1reatmet r|c|p|e shall noL
exLend Lo lmporLed producLs LreaLmenL less
favourable Lhan LhaL exLended Lo domesLlcally
produced producLs
W Least 1rae kestr|ct|ve should noL be
formulaLed applled ln a manner so as Lo
cause any unnecessary obsLacle Lo Lrade noL
more Lrade resLrlcLlve Lhan needed Lo fulfll
leglLlmaLe ob[ecLlves (prevenL decepLlve
pracLlces proLecLlon of human anlmal or
planL llfe or healLh or envlronmenL)
75
Other Key Features
W Iformat|o
An enq:iry point to be set :p
answer all reasonable enquiries
provide documents on technical regulations,
standards & CA procedures,
any agreements to be notiIied to secretariat
76
W 1ech|ca| ass|stace ls provlded Lo developlng
counLrles ln Lhe area of seLLlng up nS8s
parLlclpaLlon ln lnLernaLlonal sLandardlzaLlon
preparlng Lechnlcal regulaLlons seLLlng up
regulaLory bodles for CA acLlvlLles meLhods of
CA eLc
77
AmongsL Lhe agreemenLs on non 1arlff barrlers
1echnlcal 8arrlers Lo 1rade sanlLary and
phyLosanlLary measures lmporL llcenslng
procedures 8ules of orlgln IaluaLlon of
goods aL cusLoms re ShlpmenL lnspecLlon
are relaLed Lo harmonlzaLlon of Lrade
regulaLlons whlle Lhe oLhers AnLl uumplng
Subsldles and counLervalllng measures
Safeguards and Lrade relaLed lnvesLmenL
measures are vlewed as relaLed Lo Lrade
compeLlLlon pollcles ( markeL access)
78
W n18 may creaLe problems LhaL can be as
serlous as Lhe acLual Larlff and duLy raLes
charged aL counLry borders 1hus lL ls noL
surprlslng LhaL Lhe overall ob[ecLlve of Lhese
AgreemenLs ls Lo prevenL obsLacles and
reduce uncerLalnLles faclng Lhe Lradlng
communlLy 1hey seek Lo ensure Lransparency
of laws regulaLlons and pracLlces regardlng
varlous rules of Lrade and ulLlmaLely Lo
harmonlse Lhese rules Lo faclllLaLe
lnLernaLlonal Lrade
7
W 1hls would forcefully enLall fundamenLal Lrade
reform measures Lo be Laken by Lhese
counLrles Lo accommodaLe and secure Lhelr
commlLmenLs Lo Lhe new sysLem erhaps Lhe
mosL lmporLanL ouLcome ls LhaL Lhe range of
measures prevlously vlewed as falllng wlLhln
Lhe scope of naLlonal pollcy has now been
broughL under mulLllaLeral dlsclpllne and
llnked Lo Lhe rlghLs and obllgaLlons governlng
lnLernaLlonal Lrade and markeL access
80
CuS1CM IALuA1lCn
W CusLoms duLles can be elLher speclflc or ad
valorem Cn Lhe oLher hand Ad valorem
duLles are based on Lhe value of goods ln Lhls
sysLem deLermlnlng Lhe value of a good or ln
oLher words cusLoms valuaLlon becomes
lmporLanL
W CusLoms valuaLlon ls a seL of cusLoms
procedures used Lo deLermlne Lhe cusLoms
value of lmporLed goods for Lhe purpose
81
W Cf deLermlnlng Lhe acLual lncldence of duLy
lor lmporLers Lhe process of esLlmaLlng Lhe
value of a producL aL cusLoms may creaLe
problems LhaL can be as serlous as Lhe acLual
duLy raLe charged
W lL should be noLed LhaL appllcaLlon of Lhe
cusLoms valuaLlon AgreemenL should go hand
ln hand wlLh cusLoms reform and
modernlzaLlon Whlle Lhe laLLer ls noL a
necessary condlLlon for Lhe former lL
cerLalnly would conLrlbuLe Lo more effecLlve
82
W CuLcome owever cusLoms reform lnvolves
conslderable flnanclal and human resources
whlch are ofLen ouL of reach of many
developlng member counLrles
83
W1C Wor| 1rae Crga|zat|o
W ln Lhe W1C Lhere are Lhree areas of work on
governmenL procuremenL Lhe plurllaLeral
AgreemenL on CovernmenL rocuremenL Lhe
Worklng Croup on 1ransparency ln
CovernmenL rocuremenL and Lhe Worklng
arLy on CA1S 8ules (servlces)
84
AgreemenL on CovernmenL
rocuremenL
W 1he W1C AgreemenL on CovernmenL
rocuremenL (AC) ls Lhe prlmary plurllaLeral
lnsLrumenL guaranLeelng access for Canadlan
suppllers Lo Lhe governmenL procuremenL
markeLs ln Lhe unlLed SLaLes Lhe Luropean
unlon !apan SouLh korea and oLher
lmporLanL markeLs
85
W Whlle mosL W1C agreemenLs are mulLllaLeral
and lnclude all W1C members Lhe AC ls a
plurllaLeral agreemenL because noL all W1C
members parLlclpaLe ln Lhe AC 1he currenL
llsL of AC members ls avallable here ln
addlLlon several W1C members lncludlng
Chlna and !ordan are pursulng accesslon Lo
Lhe AgreemenL
86
87