TradeandDevelopment

KatrinKuhlmannPresidentandFounder,NewMarketsLabLectureronLaw,HarvardLawSchool

AdjunctProfessorGeorgetownUniversityLawCenter

TradeandDevelopment

•  WTOFrameworks–  WTOAgreements–  SpecialandDifferenKalTreatment

•  TradeAgreements(RegionalTradeAgreementsandFTAs)–  MarketAccess(SpecialandDifferenKalTreatment)–  NegoKaKngIssues/RuleofLawAspects

•  TradePreferencePrograms(GSP,AGOA,etc.)•  AidforTrade•  OtherIssues(Investment/BITS)•  Supply/ValueChainRegulaKon

--Non-TariffIssues(Sector-specificRegulaKon,Standards,SPS)--Services(Financial,ICT,Transport,DistribuKon)--OtherAspectsBusinessEnablingEnvironment(IPR,Labor)--RelatedIssues(Land,Energy,Environment)

Trade&DevelopmentWTO

•  Special&DifferenKal(S&D)Treatment•  PartIVGATT1965Trade&Development-BestEndeavor:IncreasedMAprimaryproducts,manufacturedandprocessedproducts;restraintintroducingduKesorNTBsproductsofexportinteresttodevelopingcountries;reciprocitynotrequired

•  EnablingClause1979(permanentlegalauthority):GSP,S&DunderGATTAgts,RTAs,specialtreatmentLDCs,non-reciprocity

•  TradePreferencePrograms(since1964):US,Europe,andothercountriesmaintainpreferences,bothgeneral(underEnablingClause1979)andspecific(requireWTOwaiver)

•  FlexibilityinImplementaKon:GATS,TRIPS,AgreementonAgriculture(extensionsforcomplianceforLDCs;TRIPSextensionthrough2021)

•  CommiceeonTradeandDevelopment•  LDCServicesWaiver•  TradeFacilitaKonAgreement

TradeFacilitaKon

•  WTOTradeFacilitaKonAgreementandRTAs/FTAs•  Transparency:PublicaKonandavailabilityof

informaKon,opportunitytocomment,appeal•  ReleaseandClearanceofGoods:Pre-arrivalprocessing,

electronicpaymentsystems,expeditedshipments(includingforperishableagriculture),riskmanagement

•  BorderAgencyCooperaKon•  FormaliKesinImportaKon,ExportaKon&Transit(“shall

endeavor”toformsinglewindowsystems)•  FreedomofTransit(importantforlandlockedcountries)•  CustomsCooperaKon

TradeAgreements

•  MarketAccessforGoods&Services•  NegoKaKngIssues:RuleofLaw/BuildingBlockIssues–  RulesofOrigin–  SPS–  TBT–  TradeFacilitaKon–  Investment–  IP–  Labor&Environment–  RegulatoryCoherence(TBT)

•  CapacityBuilding(CAFTA-DR;TPP)

TradeAgreement“BestPracKces”•  BuildingBlockApproaches:CooperaKonAgreementAmongthePartnerStatesof

theEACandUSonTradeFacilitaKon,SanitaryandPhytosanitaryMeasuresandTechnicalBarrierstoTradeandtheU.S.-CAFTA-DRFTA(technicaladviceandassistanceforimprovingriskassessmenttechniques,simplifyingandexpediKngcustomsprocedures,advancingtechnicalskills,andenhancingtheuseoftechnologiesthatcanleadtoimprovedcompliancewithlawsandregulaKonsgoverningimportaKon)

•  StagingCommitments:Tailortomarketdevelopmentandchangesincapacity,suchastheWTOTradeFacilitaKonAgreementandagriculturalchapteroftheU.S.-MoroccoFTA

•  FocusonSpecificEconomicSectors:Linktodevelopmentsignificance;examplesincludeEuropeanagreementswithdevelopingcountrytradingpartnersthatspecificallytargettransportaKon,tourism,andenergy

•  ProvisionstoEncouragePrivateSectorEngagementandConsultaJon:ExamplesincludeenvironmentalprovisionsintheU.S.-CAFTA-DR,U.S.-Panama,andU.S.-PeruFTAs

DevelopmentintheTPP•  ProvisionsspecifictoSMEsandwomen;SMEchaptermainlyfocusedon

informaKonsharing–SMEsandwomencouldbelinkedthroughkeyareassuchastradefacilitaKon,accesstofinance,infrastructure(parKcularlyelectricity),labor,andanK-corrupKon

•  ChaptersonTBTandSPSmoretailoredandincludeprovisionsforcertainindustries,suchas,interalia,cosmeKcs,wineanddisKlledspirits,andorganicproducts

•  CapacityBuildingincluded(“sog”legalstandard)•  AnK-corrupKonprovisions,suchasthosethataddresscompliancewithanK-

corrupKonmeasuresthroughbestpracKces,including,forexample,requirementsfortheadopKonofaccounKngstandardsandkeepingofrecords,trainingoflocalofficials,andthedevelopmentofgoodprocedurestoensurethatcorruptofficialsareremovedfromoffice

•  OtherIssues:RegulatoryCoherence(regulatory&non-tariffmeasures),GlobalSupplyChains

TradePreferencePrograms•  GeneralizedSystemofPreferences(GSP):benefits

concentrated,temporaryduraKon,productexclusions,incomeandcompeKKvenessgraduaKon

•  CondiKonsonuse:U.S.mandatoryanddiscreKonaryeligibilitycriteria

•  RulesofOrigin:Canbedifficulttomeetorcomplex•  EuropeanGSPandGSPPlus:SpecialcondiKonsonlabor,

environment,combaKngdrugs(noteIndiaAppellateBodycase);EuropeanEBA(2000)forLDCs:PermanentDFQF

•  Non-generalizedprogramsrequireWTOArtXXIVWaivers(3/4absolutemajority)

•  Caribbean(1983)–twoprogramsCBERA(permanent,noCNL)andCBTPA(2020);AGOAcreated2001(justrenewedfor10yearsthrough2025);HOPEIandII(mostunKl2020)

AidforTrade

•  AspectofSpecialandDifferenKalTreatment•  DifferentCategories(reviewofuses/effecKveness)•  TechnicalAssistance:helpingcountriesnegoKate,developtradestrategies,implement

•  Infrastructure:roads,ports,telecommunicaKons•  ProducKvecapacityandtradedevelopment:helpcountriesdiversifyexports,buildoncomparaKveadvantages

•  AdjustmentAssistance:coststariffreducKons,preferenceerosion,shigingtermstrade

•  Examples:FeedtheFuture,PowerAfrica,TradeAfrica

ApproachesforImplementaKon

•  TradePolicyTools(Preferences,FTAs,OtherModels?)

•  ValueChainApproach•  DevelopmentCorridors•  ModelsforimplemenKnglawandregulaKon,includingCaseStudies

ValueChainApproach:Agriculture

•  ProducKon–  LandTenureandproducerorganizaKons–  Inputs,includingseedsandferKlizer

•  Storage/LogisKcs–  Services(transport,retail,distribuKon)

•  Processing–  Standards,SPS,TBT

•  Markets–  CustomsandTradeFacilitaKon

•  Cross-Cupng–  FinancialServices–  EnergyregulaKon,includingrenewables

ProducKon Storage/LogisKcs Processing

Markets(WholesaleandRetail)