WTO: 2015 NEWS ITEMS

COUNCIL FOR TRADE IN GOODS


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The EU and the US expressed concern about what they said is a discriminatory tax regime by Pakistan, which imposes a 17% tax on imported finished goods and 5% tax on similar domestic goods. The EU said this tax measure affects especially its exporters of leather products to Pakistan. The US said that the tax measure affects apparel and sporting goods. Canada, Norway, Chinese Taipei and Switzerland shared the EU and US concerns. Pakistan said it hoped to resolve this issue amicably through bilateral discussions. It said it had already started to eliminate some of the measures, and that it would be updating members on the situation.

Japan again expressed concern about what it said are import restricting measures by Ecuador in the automotive sector, and safeguard measures taken for balance-of-payments reasons. In the automotive sector, it reiterated its doubts about Ecuador's environmental justification for restricting automobile imports. These concerns were shared by the US, EU and Canada. On the second set of measures by Ecuador, Japan's concerns were shared by the US, Chile, Chinese Taipei, Colombia, Costa Rica, Panama, Korea, Israel, Uruguay, Peru and Mexico. These members said they hoped to discuss the measures more fully at the Balance of Payments (BOP) Committee meeting on 29 June 2015. The Dominican Republic said that Ecuador's measures were due to its unique position as a dollar-based economy without a central bank. Ecuador said its measures are consistent with WTO rules. It said the automotive measure is aimed at improving air quality in Ecuador's cities. On the safeguard measures, it said the proper forum to discuss this would be the BOP Committee.

Some members again reiterated concerns under the following longstanding agenda items: Nigeria's local content measures in oil and gas (inscribed on the agenda by the EU and US), Indonesia's import and export restricting policies and practices (by the EU, Japan and the US) and Russia's trade restricting measures (by Japan).

Brazil expressed concern about the pace and content of the EU's compensation negotiations with members over the EU accession of Croatia. It said that it had substantial trade flows with Croatia before it became an EU member state, and urged the EU to give full priority to these negotiations. Argentina, Uruguay and New Zealand also complained about delays in their negotiations with the EU. On the other hand, Australia commended what it said was the constructive approach by the EU. The EU said it attaches great importance to these negotiations, which it said it is conducting with these countries plus China. It said it had submitted reasonable and equitable offers to the members concerned.

The Goods Council approved, and forwarded to the General Council for adoption, Canada's request for the extension of the WTO waiver of its duty-free treatment of imports from the Caribbean countries (Caribcan programme) until December 2023.  The EU, which said it needed more time to study the request at the previous meeting, said it could now support Canada's request. Trinidad and Tobago, and Jamaica reiterated the importance of Caribcan for their trade, and urged the approval of the waiver extension.

Jordan submitted a revised request to extend its waiver for a transitional period for the elimination of its export subsidy programme. It reduced the period of extension from seven to four years (until 31 December 2019), and stressed that the waiver would apply only to small and medium scale industries. Saudi Arabia (on behalf of the Arab Group), Egypt, Qatar, Switzerland, Bahrain, Oman, Turkey, Norway, Canada, China, Pakistan, Korea, Chinese Taipei, EU, and Guatemala supported Jordan's request. Japan, Australia, New Zealand and the US continued to call on Jordan to explore other means, which would be WTO consistent, to help its small and medium-sized enterprises (SMEs).

The Goods Council noted the notification of the free trade agreement between Chile and Viet Nam forwarded by the Committee on Regional Trade Agreements.

Under “Other Business”, the Philippines urged that discussions begin in the WTO about facilitating the participation of micro, small and medium enterprises (MSMEs) in international trade, as called for in the Boracay Declaration by the APEC Ministers Responsible for Trade. This was supported by Malaysia, speaking on behalf of ASEAN.

Also under “Other Business”, Japan expressed concern about the delay in filling up a vacancy in the Permanent Group of Experts (PGE) in the Committee on Subsidies and Countervailing Measures. Turkey and Thailand shared Japan's concern.

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