State of Play: NTBs in NAMA

Workshop for African Group Countries: WTO NAMA Negotiations on NTBs

12-14 April 2010

A broad range of interventions

• Sanitary and phytosanitary

• Technical barriers to trade

• PSI and other formalities• Price control or price-

related measures • Licenses, quotas,

prohibitions• Charges, taxes, para-

tariffs

• Finance measures• Anti-competitive

measures• Trade-related investment

measures• Distribution restrictions• Restrictions on post-

service sales• Subsidies• Procurement restrictions

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Definitions: Two Challenges

NTBs are defined negatively: Any measure with a trade effect that is not a tariff

Challenge 1 - design and content:• Legitimate public policy • Legitimate public policy spiced with protection• Protection

Challenge 2 – application of measures• Efficient, least cost administration of public policy• Excessive dead-weight costs, inefficient or

deliberately cost-augmenting administration

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NAMA – NTBs: Sequence of main events

2002/2003→ Generic proposals by Participants

Apr. 2003 → Overview of neg. proposals submitted, NTBs

Jan. 2003 → 1st Notification exercise

Aug. 2003 → Chair’s Draft Elements for Modalities, including NTBs

Oct. 2003 → 2nd Notification exercise

2004/2005 → Review and classification of notifications Where should the notified NTBs be negotiated?

(Continues…)

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NAMA – NTBs: Sequence of main events (cont.)

2005 → Hong Kong:

bilateral, vertical and horizontal approaches

NTBs are being addressed in other for a, including negotiating groups

Need for specific negotiating proposals 2006/07 → 13 vertical and horizontal proposals were submitted

by Participants (almost half are TBT related). Bilateral requests were also made (TN/MA/NTR/ series )

2008 → Should NTB negotiations finish with the modalities or subsequently? If the latter, then how?(TN/MA/W/103/Rev.3 P. 23-26)

2009 → Intensive technical work on the proposals (Q&A process);

Two new proposals have been received

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NAMA NTBs Inventory (2nd exercise)What type of measures were notified?

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NAMA NTBs Inventory (2nd exercise)Which sectors faced the most measures?

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NAMA NTBs Inventory (2nd exercise)Where would the Member concerned like to solve the issue?

Each Member to decide where totackle the NTBs of its interest

Each Member to decide where totackle the NTBs of its interest

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December 2008 text (TN/MA/W/103/Rev.3)Core Elements

1. Text based negotiations should continue on proposals after modalities are established. Seven “merit particular attention”

2. Aim is to finalize discussions on proposals as early as possible for their inclusion in any final package in NAMA

3. Members should pay attention to any systemic or cross-cutting issues, including those relating to the TBT Agreement, that may arise from these proposals

4. Negotiations on bilateral requests should proceed in tandem. Need to multilateralize the outcomes through inter alia incorporating them where appropriate into Part III of the schedules 9

Horizontal Mechanism – African Group, Canada, EU, LDCs, NAMA-11, NZ, Norway, Pakistan, CH

Name of the proposal: Ministerial Decision on Procedures for the Facilitation of Solutions to Non-Tariff Barriers

(a.k.a. the “Horizontal Mechanism”)

Document reference(s): TN/MA/W/106 (In Annex 5 of Draft NAMA modalities)

Sponsor(s): African Group, Canada, European Communities, LDC Group, NAMA-11, New Zealand, Norway, Pakistan and Switzerland

Summary: Seeks to introduce a procedure for a non-binding, non-legal, mutually agreed, solution through a facilitator

Issues/questions raised by other Members:

•“Committee first” issue•Relationship with the DSU proceedings,•Confidentiality of information•Selection of the facilitator•Third parties•Scope (which measures?)•Cost and transparency

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10

Chemicals – Argentina

Name of the proposal: Negotiating Proposal on Non-Tariff Barriers in the Chemical Products and Substances Sector

Document reference(s):

TN/MA/W/104 (In Annex 5 of Draft NAMA modalities)

Sponsor(s): Argentina

Summary: Solve issues relating to labelling, conformity assessment, registration and laboratory accreditation

Issues/questions raised by other

Members:

•Awaiting for a more concrete proposal; will probably be a scaled-back version from the one in the text•Relationship with the TBT Agreement•Product coverage

22

11

Fireworks - China

Name of the proposal: Understanding on the Interpretation of the Agreement on Technical Barriers to Trade as Applied to Trade in Fireworks

Document reference(s):

TN/MA/W/102 (In Annex 5 of Draft NAMA modalities)

Sponsor(s): People's Republic of China

Summary: Solve issues relating to the absence of an international standard for the product; conformity assessment; labelling

Issues/questions raised by other

Members:

Relationship with the TBT Agreement

33

12

Lighters - China

Name of the proposal: Understanding on the Interpretation of the Agreement on Technical Barriers to Trade as Applied to Trade in Lighter Products

Document reference(s):

TN/MA/W/90/Add.1 (In Annex 5 of Draft NAMA modalities)

Sponsor(s): People's Republic of China

Summary: Determine the relevant standard for the product, conformity assessment, labelling

Issues/questions raised by other

Members:

Relationship with the TBT Agreement

44

13

Elimination of unilateral NTBS - Cuba

Name of the proposal: Decision on the Elimination of Non-Tariff Barriers Imposed as Unilateral Trade Measures

Document reference(s):

TN/MA/W/94/Rev.1 (In Annex 5 of Draft NAMA modalities)

TN/MA/W/94/Rev.2 (March 2009)

Sponsor(s): Cuba

Summary: Eliminate existing measures; refrain from using GATT Articles XX, XXI as means of arbitrary or unjustifiable discrimination; effects on third parties.

Issues/questions raised by other

Members:

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Electronics – EU and Switzerland

Name of the proposal: Understanding on the Interpretation of the Agreement on Technical Barriers to Trade as Applied to Trade in Electronics

Document reference(s): JOB(07)/42/Rev.1 (In Annex 5 of Draft NAMA modalities)

TN/MA/W/119 (September 2009)

Sponsor(s): European Communities and Switzerland

Summary: Establish rules concerning the conformity assessment of 1) safety of electrical equipment and 2) electromagnetic compliance (EMC); Favour supplier declaration of conformity (SDOC) and/or assurance of conformity; laboratory acred.

Issues/questions raised by other Members:

•Should try to merge with the US proposal on the same subject

•Not sure developing countries can applySDOC due to lack of a post-market

surveillance system

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15

Export taxes - EU

Name of the proposal:

Revised submission on Export Taxes

Document reference(s):

TN/MA/W/101 (In Annex 5 of Draft NAMA modalities)

Sponsor(s): European Communities

Summary: Operationalize existing disciplines; bind and/or eliminate export taxes; limited exceptions to maintain them.

Issues/questions raised by other

Members:

•Export taxes are not a “non-tariff” measure•Not part of the mandate

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16

Textiles, Clothing, Footwear and Travel Goods – EU, Mauritius, Sri Lanka, US

Name of the proposal: Understanding on the Interpretation of the Agreement on Technical Barriers to Trade with respect to the Labelling of Textiles, Clothing, Footwear, and Travel Goods

Document reference(s): TN/MA/W/93 + Add.1 (In Annex 5 of Draft NAMA modalities)

TN/MA/W/93/Rev.1 (September 2009)

Sponsor(s): European Communities, Mauritius, Sri Lanka and the United States

Summary: Encourage the harmonization of information requirements on labels (permanent vs. non-permanent) by calling for greater transparency; ensure Members and stakeholders are afforded meaningful opportunities to participate in rule-making process.

Issues/questions raised by other Members:

•Sounds like standard-setting

• Which information should go where

•Relationship with TBT Agreement

•“Rebutable presumption”

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Export Licensing – Japan, Chinese Taipei and US

Name of the proposal: Protocol on Transparency in Export Licensing to the General Agreement on Tariffs and Trade 1994

Document reference(s): TN/MA/W/15/Add.4/Rev.2 (Annex 5 of Draft NAMA modalities)

TN/MA/W/15/Add.4/Rev.3 (March 2009)

TN/MA/W/15/Add.4/Rev.4 (September 2009)

Sponsor(s): Japan, Korea, Chinese Taipei and the United States

Summary: Establish a notification requirement of existing measures; information exchange; rules pertaining to the confidentiality of information.

Issues/questions raised by other Members:

•Export related issues are not part of the mandate

•WTO not the venue to deal withaccess to raw materials

•Administrative burden

•Not clear why new rules are needed

99

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Forestry Products in Building Construction – New Zealand

Name of the proposal: Decision on Non-Tariff Barriers Affecting Forestry Products Used in Building Construction

Document reference(s):

JOB(07)/158 (In Annex 5 of Draft NAMA modalities)

Sponsor(s): New Zealand

Summary: Recognition of specific international standards, accreditation, mutual recognition

Issues/questions raised by other

Members:

•Relationship with ISO technical committees (TC 89, 165, 218) work on this area•Product coverage•Relationship with the TBT Agreement

1010

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Electronic Goods - US

Name of the proposal: Agreement on Non-Tariff Barriers Pertaining to the Electrical Safety and Electromagnetic Compatibility (EMC) of Electronic Goods

Document reference(s): TN/MA/W/105/Rev.1 (In Annex 5 of Draft NAMA modalities)

TN/MA/W/105/Rev.2 (September 2009)

Sponsor(s): United States

Summary: Electrical safety and electromagnetic compliance (EMC) of electronic goods; elaborate further on some disciplines of the TBT agreement; recommendation by the TBT Committee; transparency provisions; conformity assessment (test results, SDOC, 3rd party).

Issues/questions raised by other Members:

•Should try to merge with the EC proposal on the same subject

•Relationship with the TBT Agreement

1111

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Remanufactured Goods – Japan, Switzerland, United States

Name of the proposal: Ministerial Decision on Trade in Remanufactured Goods

Document reference(s):

TN/MA/W/18/Add.16/Rev.2 (In Annex 5 of Draft NAMA modalities)

TN/MA/W/18/Add.16/Rev.3 (September 2009)

Sponsor(s): Japan, Switzerland and the United States

Summary: Establish that each Member’s trade regime should evolve in a manner that enhances market access opportunities for remanufactured goods; establish a review program under the auspices of the CTG to review NTBs affecting the sector.

Issues/questions raised by other

Members:

Definitional issue: i.e. what is a remanufactured good? Is it different from a “used”, “refurbished” or “recycled” good?

Why is this needed?

1212

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Automotive Products - US

Name of the proposal: Agreement on Non-Tariff Barriers Pertaining to Standards, Technical Regulations, and Conformity Assessment Procedures for Automotive Products

Document reference(s):

JOB(08)/46 (In Annex 5 of Draft NAMA modalities)

TN/MA/W/120 (September 2009)

Sponsor(s): United States

Summary: Define in more specific terms the provisions of the TBT Agreement in respect of good regulatory practices, technical regulations, conformity assessment, transparency provisions and testing.

Issues/questions raised by other

Members:

•Should try to merge with the EC proposal on the same subject•Relationship with the TBT Agreement

1313

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Automotive Products - EU

Name of the proposal: Agreement on Non-Tariff Barriers Pertaining to Standards, Technical Regulations, and Conformity Assessment Procedures for Automotive Products

Document reference(s): TN/MA/W/118 (September 2009)

Sponsor(s): European Communities

Summary: Modified version of the US proposal which aims at bridging systemic differences between regulatory systems based on “self-certification” and systems based on “type-approval”. Recognize work of the World Forum for the Harmonisation of Vehicle Regulations (WP.29), within the framework of (UNECE).

Issues/questions raised by other Members:

•Should try to merge with the US proposal on the same subject

•Relationship with the TBT Agreement

1414

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Industry-specific NTB Proposals – EU, India

Name of the proposal: Framework for Industry-specific NTB Proposals

Document reference(s):

JOB(09)/105 (New, September 2009)

Sponsor(s): European Communities, India

Summary: Establish a framework structure for the industry-specific NTB proposals that relate to the TBT agreement in order to would allow for the catering of cross-cutting elements and allowing for inclusion of the industry-specific rules (i.e. a sort of “cupboard” to include the other TBT-related proposals)

Issues/questions raised by other

Members:

Unclear relationship with TBT-related proposals on the table

1515

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Summary: Cross-Cutting

• Horizontal proposal

• Cuba’s generic proposal

• Export-related policies

• Framework for industry-specific proposals

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Summary: Sector-Specific

• Chemicals

• Fireworks

• Lighters

• Remanufactured goods

• Electronics

• Textiles, clothing, footwear, leather goods

• Forestry products

• Automotive products26

Some Objectives Underlying Sector-Specific Proposals

• Internationalization of standards• Common standards• Streamlining of standards-related procedures• Greater recognition of national procedures• Avoiding duplication• Willingness to consult• Guaranteeing transparency• Technical assistance

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