Director-General
Supachai Panitchpakdi, in his first annual report to members on
developments in the international trading environment released on 15
November 2002, underlined that “trade liberalization and poverty
reduction go hand in hand”. He cited recent estimates that
eliminating trade barriers in all countries could result in welfare
gains of up to US$620 billion annually, of which about one third to
one half would go to developing countries.
The
Director-General said there is still “unfinished business on
tariffs,” noting that “tariffs remain an important impediment to
international trade, notwithstanding the considerable achievements of
the Uruguay Round”. He added that even in industrialized countries,
where average tariff protection is low, tariff “peaks” exist in
certain sectors, notably agricultural products, textiles, clothing and
footwear.
Dr.
Supachai said another key area of interest is agriculture, which, “despite
its small and diminishing contribution to GDP in most developed
economies, receives a disproportionate amount of assistance in the
form of subsidies and protection at the border”.
Market-access
conditions are also a key interest of members in trade in services,
which are now among the fastest growing segments of world trade. Dr.
Supachai said expectations are that “the gains from liberalizing
services are substantially greater than those from liberalizing trade
in goods”.
The
Director-General notes that there are around 240 regional trade
agreements currently in force, and there could be close to 300 by
2005. He said that when fully in line with the WTO, these agreements
can complement the strengthening and liberalization of world trade “but
by discriminating against third countries and creating a complex
network of trade regimes, such agreements pose systemic risk to the
global trading system”.
Dr.
Supachai also notes that another area of key interest is the
increasing use by more members, including developing countries, of
contingency measures, particularly anti-dumping actions.
> Annual
Report by the Director-General (Download in Word format,
46 pages, 628 KB)
n
Former
Yugoslav Republic of Macedonia signs membership agreement back to top
The
WTO General Council has cleared the way for the former Yugoslav
Republic of Macedonia to become a WTO member. Immediately
after the General Council's decision on 15 October, the agreement was
signed.
> More
n
Supachai:
Disappointing trade figures underscore need to accelerate trade talks back to top
Global
economic activity strengthened in the first half of 2002 and world
trade started to recover from the first quarter onwards, according to
the latest WTO figures. But the overall picture is disappointing and
WTO Director-General Supachai Panitchpakdi says the need to meet
negotiating deadlines is even more pressing.
According
to the WTO International Trade Statistics Report, global economic
activity strengthened in the first half of 2002 and world trade
started to recover from the first quarter onwards. Despite this
turnaround at the beginning of the year, the dollar value of world
merchandise exports remained at 4 percent below the preceding year’s
level. In the first six months of 2002 imports of the EU and the
United States decreased by 6 percent while those of Japan and Latin
America decreased at double digit rates. China and the Russian
Federation, however, sharply increased their imports by 10 and 7
percent respectively.
Provided
that the momentum of the recovery in OECD countries and in developing
Asia is maintained in the last two quarters of this year, the volume
of world merchandise trade is projected to expand by 1 percent in
2002. The increase in the dollar prices (on a year to year basis) in
the second half of 2002 is expected to be broadly based, affecting all
the major product groups, manufactured goods, crude oil and non-fuel
products.
The
Report noted that 2001 witnessed the first decline in the volume of
world merchandise trade since 1982 and the first decrease in world
merchandise output since 1991. Global GDP growth edged up only by
about 1 percent due to a more resilient services sector. Developments
in 2001 represented a dramatic change in comparison to the previous
year, when trade and output recorded their best performance in more
than a decade.
Dr.
Supachai said: “The disappointing trade figures for 2001 and the
first half of 2002 underscore the importance of making progress in the
Doha Development Agenda negotiations. While the depressed levels for
imports and exports reflect macroeconomic factors, it is evident that
policy measures must be taken to bolster confidence and provide the
underlying assurances necessary to foster higher levels of growth. One
such measure would be for political leaders to send a strong signal to
consumers, producers and markets that they intend to move forward in
the area of further trade liberalization through the DDA”.
> More
n
Trade
policies of the Dominican Republic and Zambia reviewed back to top
WTO
members, after conducting their second review of the Dominican
Republic's trade policies on 7 and 9 October, welcomed the country's
stated conviction that trade liberalization is a central pillar of
economic growth and development, and acknowledged considerable
progress in its modernization efforts since the last review.
> More
During
their review of Zambia's trade policies on 23 and 25 October,
members commended the country on its continuing commitment to trade
liberalization despite various difficulties. The Chairperson expressed
the hope that the Doha Development Agenda would evolve in such a way
as to make possible greater access to the country's products, and
contribute to the diversification of its economy.
> More
n
DSB
adopts reports on price band system and sardines back to top
The
Dispute Settlement Body (DSB), on 23 October, adopted Appellate Body
reports on disputes involving Argentina's complaint about Chile's
price band system for agricultural products and on Peru's complaint
about the European Communities' trade description of sardines,
respectively.
> More
The
DSB, on 1 October, established two panels: one to examine Brazil's
complaint about Florida's “equalizing tax” on processed orange and
grapefruit products, and the other to examine the US’ final
countervailing duty determination with respect to certain softwood
lumber from Canada.
> More
The
WTO have issued the following dispute-settlement reports:
On
27 September, the report of the panel (DS236/R) that had examined
Canada's complaint about the United States' preliminary
determinations with respect to certain softwood lumber from
Canada. Download the report
On
26 September, the report of the Appellate Body (DS231/AB/R), which
upheld the panel's findings that the European Communities'
regulation on the trade description of sardines is inconsistent
with the WTO Agreement on Technical Barriers to Trade. Download
the report
On
23 September, the report of the Appellate Body (DS207AB/R), which
upheld the panel's finding that Chile's price band system relating
to certain agricultural products is inconsistent with a
market-access provision of the Agriculture Agreement. Download the
report
The
WTO Secretariat reported, on 23 October, that in the period 1 January
to 30 June 2002, 17 members initiated 104 anti-dumping
investigations against exports from a total of 39 different countries
or customs territories. During the corresponding period of 2001, 19
WTO members had initiated 149 anti-dumping investigations.
> More
n
UNCTAD-ITC-WTO
chiefs agree to enhance cooperation back to top
Heads
of the three global trade agencies, on 30 October 2002, pledged to
enhance their relationship across a range of activities including
trade-related technical assistance, research and the sharing of
information. UNCTAD Secretary-General Rubens Ricupero and ITC
Executive Director Denis Belisle offered their full support to the WTO
Director-General in his efforts to bring about a timely, balanced and
productive outcome to the Doha Development Agenda round of trade
negotiations.
> More
The
Director-General and World Bank President James Wolfensohn, on 10 October 2002,
pledged closer cooperation in their efforts to promote a successful
conclusion to the Doha Development Agenda trade negotiations.
> More
The
World Bank and the WTO are establishing a new fund, called the
Standards and Trade Development Facility, as part of their efforts to
link aid to trade opportunities in the fight against poverty. The fund
— in cooperation with other organizations — will provide a
stimulus to important new projects for developing countries in this
critical area, helping them shape and implement international
standards on food safety, and plant and animal health. The goal is to
provide grants and financial support for technical assistance projects
in developing countries through enhanced collaboration between the
international organizations involved.
> More
Trade
policies must be linked to development and poverty reduction plans, if
they are to drive growth, Director-General Supachai told the second
seminar on “trade mainstreaming” on 1 November 2002. These
seminars are part of a joint effort by six international organizations
and the least-developed countries to integrate trade and development
efforts.
> More
The
German government on 4 November 2002 pledged a donation of 1 million
euros (about CHF 1.45 million) over two years — 2003 and 2004 — to
the WTO Doha Development Agenda Global Trust Fund. This pledge comes
on top of approximately CHF 2 million already pledged by Germany for
the period 2002-2005.
> More
A
week-long training session on the rules and procedures of WTO dispute
settlement ended on 11 October. Thirty government officials
participated.
> More
Dr.
Supachai, in a statement to the Committee on Trade and Development on
8 October 2002, said “we are on track to responding credibly and
effectively to the technical cooperation and capacity building
commitments in the Doha Ministerial Declaration”.
> More