The publication contains an explanation of Most Favored Nation (MFN) treatment and some of the key issues that arise in its negotiation, particularly the scope and application of MFN treatment to the liberalization and protection of foreign investors in recent treaty practice. The paper provides policy options as regards the traditional application of MFN treatment and identifies reactions by States to the unexpected broad use of MFN treatment, and provides several drafting options, such as specifying or narrowing down the scope of application of MFN treatment to certain types of activities, clarifying the nature of "treatment" under the IIA, clarifying the comparison that an arbitral tribunal needs to undertake as well as a qualification of the comparison "in like circumstances" or excluding its use in investor-State cases.
The Agreement on Agriculture (AoA) was adopted to eliminate the illegitimate use of trade distorting agricultural subsidies and, thereby, reduce and avoid the negative effects subsidies have on global agricultural trade. However, the AoA has been fashioned in a way that is enabling developed countries to continue high levels of protectionism through subsidization, whilst many developing countries are facing severe and often damaging competition from imports artificially cheapened through subsidies. The regulation of subsidies by the World Trade Organisation (WTO) has been a highly sensitive issue. This is mainly due to the fear of compromising on food security, especially by developed countries. Developing countries have suffered negatively from the subsidy programmes of developed countries, which continue to subsidize their agricultural sector. This position of developing countries in the global trade system, which has been described as weak, has drawn criticism of the WTO, namely that it does not protect the interests of the weak developing nations, but rather strengthens the interests of the strong developed nations. The green box provisions which are specifically designed to regulate payments that are considered trade neutral or minimally trade distorting have grossly been manipulated by developed countries at the mercy of the AoA. Developed countries continue to provide trade distorting subsidies under the guise of green box support. This is defeating the aims and objectives of the AoA. The study examines the regulation of WTO agricultural subsidies from the developing countries’ perspective. It looks at the problems WTO member states face with trade distorting subsidies, but focuses more on the impact these have on developing states. It scrutinizes the AoA’s provisions regulating subsidies by adopting a perspective to identify any loopholes or shortcomings which undermine the interests and aspirations of developing countries. This is against the background that some of the provisions of the AoA are lenient towards the needs of developed countries at the expense of developing countries.
The Role of Trade in Ending Poverty looks at the complex relationships between economic growth, poverty reduction and trade, and examines the challenges that poor people face in benefiting from trade opportunities. Written jointly by the World Bank Group and the WTO, the publication examines how trade could make a greater contribution to ending poverty by increasing efforts to lower trade costs, improve the enabling environment, implement trade policy in conjunction with other areas of policy, better manage risks faced by the poor, and improve data used for policy-making.
Growing evidence suggests that 'green box' farm subsidies may in fact affect production and trade, harm farmers in developing countries and cause environmental damage. This book brings together new research and analysis examining the relationship between green box subsidies and sustainable development goals, and explores options for future reform.
The Agreement on Agriculture (AoA) was adopted to eliminate the illegitimate use of trade distorting agricultural subsidies and, thereby, reduce and avoid the negative effects subsidies have on global agricultural trade. However, the AoA has been fashioned in a way that is enabling developed countries to continue high levels of protectionism through subsidization, whilst many developing countries are facing severe and often damaging competition from imports artificially cheapened through subsidies. The regulation of subsidies by the World Trade Organisation (WTO) has been a highly sensitive issue. This is mainly due to the fear of compromising on food security, especially by developed countries. Developing countries have suffered negatively from the subsidy programmes of developed countries, which continue to subsidize their agricultural sector. This position of developing countries in the global trade system, which has been described as weak, has drawn criticism of the WTO, namely that it does not protect the interests of the weak developing nations, but rather strengthens the interests of the strong developed nations. The green box provisions which are specifically designed to regulate payments that are considered trade neutral or minimally trade distorting have grossly been manipulated by developed countries at the mercy of the AoA. Developed countries continue to provide trade distorting subsidies under the guise of green box support. This is defeating the aims and objectives of the AoA. The study examines the regulation of WTO agricultural subsidies from the developing countries’ perspective. It looks at the problems WTO member states face with trade distorting subsidies, but focuses more on the impact these have on developing states. It scrutinizes the AoA’s provisions regulating subsidies by adopting a perspective to identify any loopholes or shortcomings which undermine the interests and aspirations of developing countries. This is against the background that some of the provisions of the AoA are lenient towards the needs of developed countries at the expense of developing countries.
This research explores how multilateralism in trade has worked over the past twenty years - and provides some lessons about how it can work in the future. It describes the WTO's achievements across a number of key areas, including: strengthening the institutional foundations of the trade system; widening its membership and increasing participation; deepening trade integration through lower barriers and stronger rules; improving transparency and policy dialogue; strengthening dispute settlement; expanding cooperation with other international organizations; and enhancing public outreach. It concludes that the WTO has achieved much over its first twenty years but the success of the WTO has inevitably given rise to new challenges.
Publisher's description: Developing countries are increasingly confronted with the need to address trade policy related issues in international agreements, most prominently the World Trade Organization (WTO). New WTO negotiations on a broad range of subjects were launched in November 2001. Determining whether and how international trade agreements can support economic development is a major challenge. Stakeholders in developing countries must be informed on the issues and understand how their interests can be pursued through international cooperation. This handbook offers guidance on the design of trade policy reform, surveys key disciplines and the functioning of the World Trade Organization (WTO), and discusses numerous issues and options that confront developing countries in using international cooperation to improve domestic policy and obtain access to export markets. Many of the issues discussed are also relevant in the context of regional integration agreements. Separate sections of the handbook summarize what constitutes sound trade policy; the major aspects of the WTO from a development perspective; policy issues in the area of merchandise trade and the liberalization of international transactions in services; protection of intellectual property rights and economic development; new regulatory subjects that are emerging in the agenda of trade talks; and enhancing participation of developing countries in the global trading system.
Farm support is contentious in international negotiations. This in-depth assessment of the legal compliance and economic evaluation issues raised by the WTO Agreement on Agriculture presents consistent support data and forward-looking projections for eight developed and developing countries (EU, US, Japan, Norway, Brazil, China, India, Philippines), using original estimates where official notifications are not available. Variations over time in notified support in some cases reflect real policy changes; others merely reflect shifts in how countries represent their measures. The stalled Doha negotiations presage significantly tighter constraints for developed countries that provide the highest support, but loopholes will persist. Developing countries face fewer constraints and their trade-distorting farm support can rise. Pressure points and key remaining issues if a Doha agreement is reached are evaluated. Vigilant monitoring for compliance of farm support with WTO commitments will be required to lessen its negative consequences whether or not the Doha Round is concluded.
