TC-20020308-015 WTO and TBT Presentation

8/9/2019 TC-20020308-015 WTO and TBT Presentation

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WTO and TBT What Are They

and Why do I Care?

Dan Bart, Senior Vice President,

Standards and Special Projects, TIA


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THE WTO

In briefThe World Trade Organization (WTO) is the only

international organization dealing with the global rules

of trade between nations. Its main function is to ensurethat trade flows as smoothly, predictably and freely as

possible.

THE RESULT is assurance and compliance.

THE GOAL is to improve the welfare of the

people of the member countries.


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THE WORLD TRADE

ORGANIZATION (WTO)

At its heart are the WTO agreements, negotiated and

signed by the bulk of the worlds trading nations (140).These documents provide the legal ground-rules for

international commerce. They are essentially

contracts, binding governments to keep their trade

policies within agreed limits.

Although negotiated and signed by governments, the

goal is to help producers of goods and services,

exporters, and importers conduct their business.


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THE WTOs

THREE MAIN PURPOSES

Help trade flow as freely as possible

Serve as a forum for trade negotiations

Set up an impartial means of settling

disputes


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THE WTO

THE MULTILATERAL TRADING SYSTEM --past, present, and future

The World Trade Organization came into being in 1995.

One of the youngest of the international organizations, the

WTO is the successor to the General Agreement on Tariffs

and Trade (GATT) established in the wake of the SecondWorld War.


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THE ORGANIZATION

If the WTOs overriding objective is to help trade flow

smoothly, freely, fairly and predictably, how?

It does this by: Acting as a forum for trade negotiations

Reviewing national trade policies

Administering trade agreements

Settling trade disputes

Assisting developing countries in trade policy issues, through

technical assistance and training programs

Cooperating with other international organizations


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THE STRUCTURE

MINISTERIAL CONFERENCE

GENERAL COUNCIL

GOODS COUNCIL, SERVICESCOUNCIL, INTELLECTUAL

PROPERTY (TRIPS) COUNCIL


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10 Benefits of the WTO

The system helps

promote peace

Disputes are handled

constructively Rules make life easier

for all

Freer trade cuts the costs

of living It provides more choices

of products and qualities

Trade raises incomes

Trade stimulates

economic growth

The basic principlesmake life more efficient

Governments are

shielded from lobbying

The system encouragesgood government


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10 Common Misunderstandings

of the WTO

The WTO dictates policy

The WTO is for free trade

at any cost Commercial interests take

priority over development

and over the environment

and over health andsafety

The WTO destroys jobs,

worsens poverty

Small countries arepowerless in the WTO

The WTO is the tool of

powerful lobbies

Weaker countries are

forced to the join the WTO

The WTO is undemocratic


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THE WTO AGREEMENTS

How can you ensure that trade is as fair as possible,

and as free as is practical? By negotiating rules and

abiding by them.

The WTOs rules -- the agreements -- are the result of

negotiations between the members.

The current set were the outcome of the 1986-94

Uruguay Round negotiations which included major

revision of the original General Agreement on Tariffs

and Trade (GATT).


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DEVELOPING COUNTRIES

Over three-quarters of WTO members are developing or least-

developed countries. Special provisions for these members

are included in all the WTO agreements.

The special provisions include:

longer time periods for implementing agreements and

comments,

measures to increase trading opportunities for these

countries,

provisions requiring all WTO members to safeguard thetrade interests of developing countries,

and support to help developing countries build the

infrastructure for WTO work, handle disputes, and implement

technical standards.


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TECHNICAL BARRIERS

TO TRADE

Technical regulations and industrial standards may

vary from country to country. Having too manydifferent standards makes life difficult for producers and

exporters.

If the standards are set arbitrarily, they could be used as

an excuse for protectionism. The Agreement on Technical

Barriers to Trade (TBT) tries to ensure that regulations,

standards, testing, and certification procedures do not

create unnecessary obstacles.


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THE WTOS MOST

INDIVIDUAL CONTRIBUTION Without a means of settling disputes, the rules-based system would

be worthless because the rules could not be enforced. The WTOs

procedure underscores the rule of law, and it makes the trading

system more secure and predictable. The system is based on

clearly-defined rules, with timetables for completing a case.

First rulings are made by a panel and endorsed (or rejected) by

the WTOs full membership. Appeals based on points of law are

possible.

However, the point is not to just make rulings. The priority is to

settle disputes, through consultations, if possible. By July 2000, 32

out of 203 cases had been settled out of court, without going

through the full panel process.


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TBT: The Code of

Good Practice

Why a Code of Good Practice?

Who can accept the Code?

What does membership entail?


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Why a Code of Good Practice?

Product standards can be prepared by governmental

or non-governmental standardizing bodies. The Codeof Good Practice, contained in Annex 3 of the WTO

TBT Agreement provides disciplines, including those

related to transparency, for the preparation, adoption

and application of standards by all central

governmental, local government, non-governmentaland regional standardizing bodies.

Non-governmental = SDO


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Who can accept the Code?

The Code is open for acceptance to any

standardizing bodies, whether central government,local government or non-governmental (i.e., SDO )

and regional standardizing bodies.

The Code of Good Practice contained in Annex 3 of

the WTO TBT Agreement seeks to bring all standardswithin its purview and provides for [and gives]

transparency in the preparation, adoption and

application of standards.


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What does membership entail?

Members of the TBT Agreement are responsible for the

acceptance and compliance with the Code of Good

Practice by their central government standardizingbodies.

Furthermore, they are required to take such reasonable

measures as may be available to them to ensure also that

local government and non-governmental standardizingbodies (i.e., SDOs) within their territories, and regional

standardizing bodies of which they are members, accept

and comply with the Code.


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What does it mean to me,

I havent accepted any Code!

If SDOs, as non-governmental

standardizing bodies, must accept theCode, Im home free cause I have not

accepted it!!


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USTR/ANSI

ANSI, at the request of the USTR, has

accepted the Code on behalf ofALL ANSISDOs, as related to American National

Standards

Notice provided to ISO several years ago


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Oops, What do I have

to do now?

Annex 3 of TBT sets forth agreements


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Annex 3

Code of good practice for

the preparation, adoption

and application of

standards


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Annex 3 Overview

open to acceptance by any standardizing body within

the territory of a Member of the WTO

Standardizing bodies that have accepted or

withdrawn from this Code shall notify this fact to theISO/IEC Information Centre in Geneva

the standardizing body shall accord treatment to

products originating in the territory of any other

Member of the WTO no less favourable than

products of national origin and to like products

originating in any other country


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Annex 3

standards shall not be prepared, adopted orapplied with a view to, or with the effect of,creating unnecessary obstacles to internationaltrade

where international standards exist or theircompletion is imminent, the standardizing bodyshall use them, or the relevant parts of them, as abasis for the standards it develops, except where

such international standards or relevant partswould be ineffective or inappropriate


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Annex 3

the standardizing body shall play a full part in the

preparation by relevant international standardizing

bodies of international standards

avoid duplication of, or overlap with, the work ofother standardizing bodies

specify standards based on product requirements interms of performance rather than design or

descriptive characteristics at least once every six months publish a work

programme

titles of specific draft standards shall, upon request,be provided in English, French orSpanish.


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Annex 3

the work programme shall indicate the classification

relevant to the subject matter, the stage attained in

the standards development, and the references of

any international standards taken as a basis before adopting a standard, the standardizing body

shall allow a period ofat least 60 days for the

submission of comments on the draft standard by

interested parties within the territory of a Member of

the WTO

take into account the comments received

notice whether the draft standard deviates from

relevant international standards


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Annex 3

provide a copy of a draft standard with any fees

charged for this service (apart from the real cost of

delivery) the same for foreign and domestic parties

promptly publish the standard after it is adopted promptly provide a copy of its work programme and

standards with any fees charged for this service(apart from the real cost of delivery) the same forforeign and domestic parties

make an objective effort to solve any complaints withrespect to the Code.


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Questions?

TC-20020308-015 WTO and TBT Presentation

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