World Trade Organization (WTO) - London … LONDON INTERNATIONAL MODEL UNITED NATIONS 2016 . World...

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LONDON INTERNATIONAL MODEL UNITED NATIONS 2016 .

World Trade Organization (WTO) London International Model United Nations 17th Session | 2016

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Table of Content

Topic A: International trade and multilateral environmental agreements

Introduction 3

Key Concepts and Treaties 4

Statement of the Problem 5

Bloc Positions 10

Questions a Resolution Should Address 10

Further Reading 11

Sources 12

Topic B: The Bali Package: Renewing the world trade negotiation agenda

Introduction 12

Key Concepts and Treaties 14

Statement of the Problem 15

Bloc Positions 19

Questions a Resolution Should Address 20

Sources 21

Conference Information 22

Position Papers 23

Contact Details 24

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Topic A: International trade and multilateral

environmental agreements

Introduction

The World Trade Organisation is traditionally an international organization that

espouses the ideals of free trade and integration. Although there may not be

any direct correlation between trade and the environment, in reality, the link

had been recognized by the WTO as early as the 1970s. Increasingly, the

growing international concern regarding economic growth and the

environment has developed over the years; this culminated in the

establishment of various committees and conferences, most notably, the 1972

Stockholm Conference on the Human Environment.

According to the WTO, it “provides an important means of advancing

international environmental goals”, through “its goals, rules, institutions and

forward-looking agenda”. The organization believes that sustainable

development and environmental protection are not mutually exclusive, rather,

they can be mutually supportive.

In this regard, the WTO supports sustainable development and the protection

of the environment by furthering trade, and providing stable and predictable

conditions for innovation and economic growth. In addition, the WTO has

included dispute settlements, rules, and agreements that relate to the

protection of the environment into its agenda, thereby supporting the

international community in its goal to address global environmental

challenges.

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Definition of key terms

Non-Discrimination - the practice or policy that refrains from

discrimination. In a WTO context, non-discrimination is included in the

principles of the trading system. The rules on non-discrimination are there

in order to secure fair conditions of trade worldwide. The rules try to

establish what is fair and unfair, and how nations and their governments

can deal with various conditions.

Tariff - a tax on imports or exports. Tariffs are often viewed as distortions

to the free market. By using tariffs, a country artificially shields an industry

from work markets and it also a way that countries can discriminate

against each other and products produced in different countries.

Typically it is argued that tariffs tend to benefit domestic producers and

governments at the expense of consumers.

Unincorporated PPMs - Processes and Production Methods (PPMs) which

leave no trace in the final product. For instance, this includes cotton

grown using pesticides, with there being no trace of the pesticides in the

cotton.

Environmental and health standards - these are standards set by

countries either upon imports or their own produce, to ensure that that

products are safe for human consumption (i.e. health), are not

detrimental to the environment while in production, and are of a certain

minimum quality. Environmental and health standards usually cover

anything from animal welfare and pest control, to water.

Greenhouse gases (GHGs) - natural gases that occur in the atmosphere

and are responsible for the (enhanced) greenhouse effect. GHGs

include carbon dioxide, methane, nitrous oxide and water vapour.

Carbon dioxide is the main culprit of the enhanced greenhouse effect –

CO2 emissions have risen worldwide at an unprecedented rate due to

human activity with connection to industrialization

Key Concepts and Treaties1

Doha Development Agenda (DDA) - the current trade-negotiation round of

the WTO, under which the Bali Package was negotiated. Main objectives

include lowering of the trade barriers and facilitating global trade. These

objectives are at the forefront of the Package and understanding the DDA is

important for any further negotiations.

1 Important resolutions, agreement and alliances for the topic (to be further researched by delegates)

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Multilateral environmental agreements (MEAs) - legally binding

agreements between three or more states that relate to the environment.

MEAs make up a substantial part of the international environmental law body.

United Nations Framework Convention on Climate Change (UNFCCC) - an

international environmental treaty with the main objective to stabilize

greenhouse gases and their concentration in the atmosphere at a level that

would prevent dangerous changes in world climate. Because it is a framework

treaty, it sets no binding emission targets and contain no enforcement

mechanisms. The aim of the framework convention is to outline the ways in

which specific international treaties (“protocols”) can be negotiated, and

according to which principles. Most recently the 21st Conference of the Parties

(COP21) was held in Paris where an important agreement was reached.

Statement of the Problem

Environmental protection and preservation have been enshrined in the 1994

Marrakesh Agreement and Declaration as one of the main objectives of the

WTO. Member states of the WTO are empowered to protect the environment

while ensuring sustainable global development at the same time; for instance,

member states are encouraged to “recogniz[e] that their relations in the field

of trade and economic endeavor should be conducted with a view to rais[e]

standards of living, ensur[e] full employment and a large and steadily growing

volume of real income and effective demand in accordance with the

objective of sustainable development, seeking both to protect and preserve

the environment.”

Member states are encouraged to adopt multilateral environmental trade

agreements which comply with conditions set by the WTO and member states

are guaranteed equal rights under these trade conditions. However, because

member states implement environmental policies within their national

boundaries, national sovereignty remains in place. Nevertheless, the WTO

acknowledges the significance of state-centred environmental laws and

respects the sovereignty of member states.

Multilateral Environmental Agreements (MEAs) are agreements that play a

fundamental role in shaping the context of both national and international

environmental laws, as well as setting the global agenda with regards to

environmental issues. According to the WTO, MEAs “complement national

legislation and bilateral or regional agreements, and form the overarching

international legal basis for global efforts to address particular environmental

issues”.

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There are currently over 250 MEAs enforced globally dealing with various

environmental issues and make up the body of international environmental

law. Some of the more key MEAs:

1. Convention on International Trade in Endangered Species of Wild

Fauna and Flora (CITES)

2. Convention on the Conservation of Antarctic Marine Living

Resources (CCAMLR)

3. International Convention for the Conservation of Atlantic Tunas

(ICCAT)

4. United Nations Fish Stocks Agreement (UNFSA)

5. International Tropical Timber Agreement (ITTA)

6. International Plant Protection Convention (IPPC)

7. Convention on Biological Diversity (CBD)

a. Nagoya Protocol on Access to Genetic Resources

and the Fair and Equitable Sharing of Benefits Arising from their

Utilization to the Convention on Biological Diversity

b. Cartagena Protocol on Biosafety to the Convention

on Biological Diversity

i. Nagoya – Kuala Lumpur Supplementary

Protocol on Liability and Redress to the Cartagena Protocol on

Biosafety

8. The Vienna Convention on Substances that Deplete the Ozone

Layer and the Montreal Protocol

9. United Nations Framework Convention on Climate Change

(UNFCCC)

a. Kyoto Protocol to the UNFCCC

10. Basel Convention on the Control of Transboundary Movements of

Hazardous Wastes and their Disposal

11. Stockholm Convention on Persistent Organic Pollutants

The main contention of the topic could be summarised in two ways: not only is

there an increased pressure by developed countries to reconcile

incompatibilities between trade and environmental policies, there is also a

growing concern from developing countries that the environment will be

prioritised over international development. Indeed, the question of an

attached “green” conditionality clause to trade would be extremely worrying

to member states without the technological capability to produce sustainably.

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Brief History

A Committee on Trade and Environment (CTE) was established in 1994,

composed of all member states and a number of observers from

intergovernmental organisations. The main role of the CTE was to identify

trade-environmental relationships and to make policy recommendations on

the multilateral trading system, aimed at promoting sustainable development.

The Committee on Trade and Environment Special Session (CTESS) was also

founded in 2001, with the purpose of negotiating trade and environmental

issues during the Doha Ministerial Conference of 2001. These two committees

serve as an effective backdrop to discuss the issue at hand today.

The Doha Ministerial Declaration has specifically focused on three issues

related to the environment and trade, namely:

1. Negotiations on the relationship between WTO rules and specific

trade obligations set out in MEAs.

2. Negotiations on procedures for information exchange between

MEAs and the WTO, and on the criteria for the granting of observer status

in the WTO.

3. Negotiations on the reduction or elimination of tariff and non-tariff

barriers to environmental goods and services.

Effect of Trade Liberalisation on the Environment

According to the WTO, trade liberalisation is not the sole cause of

environmental degradation, nor are trade instruments “the first-best policy for

addressing environmental problems”. The benefits of removing trade

restrictions are often indirect and hard to identify; however, given the positive

relationship between trade liberalisation and better environmental quality, it is

prudent to consider these benefits. These benefits have been summarised in

the table below.

Benefits

Increased efficiency in factor-use and consumption patterns through

greater competition

Poverty reduction through greater trade and sustainable growth

Greater availability of environment-related goods and services due to

increased market access

Greater international cooperation through a continuing process of

multilateral negotiations

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Compatibility

Issues of compatibility may arise when MEAs are enforced; for instance, a MEA

could authorise trade in a specific product between its parties, however, ban

trade in the same product with countries that have not signed the agreement.

This is in clear violation of WTO’s non-discrimination policy – the “most favoured

nation treatment” – which allows member states to grant “equivalent

treatment to the same products imported from any WTO member country”.

Nevertheless, no major dispute involving MEAs in international trade has taken

place as of yet.

Collaboration

The collaboration between the secretariats of the WTO and MEAs have

allowed for the development of trade and environment regimes. These include

measures, such as the establishment of the Plan of Implementation of the 2002

World Summit on Sustainable Development (WSSD) in Johannesburg. In

addition, the WTO has collaborated with different organisations, such as UNEP,

on issues including the exchange of information and the provision of technical

assistance to developing countries on trade and the environment.

Market Access

According to the WTO, the issue of environmental measures on market access

is vital in sustaining existing complementarities between trade and

environmental policy-making. This is especially so in developing countries –

many of the products from developing countries are often “blocked” from

being imported due to strict environmental and health standards. These

standards, while legitimate in nature, are often inappropriate in terms of scale.

Therefore, there is a need to strike a balance between increasing market

access and environmental protection. Delegates could consider measures

that are not only consistent with WTO rules, but also take into account the

capabilities of developing countries, as well as the legitimate legal framework

of the importing country. In addition, more emphasis should be placed on

identifying trade opportunities for sustainable growth to support the creation

of markets for environmentally-friendly goods and services.

Labelling Requirements

Labelling and handling requirements for environmental purposes are knotty

issues to begin with, while these schemes have become more complex and

more diverse over the years. With the objective of providing consumers with

information about environmentally friendly products, these schemes are less

trade restrictive than other instruments. However, it is important to note that

developing countries are at a disadvantage due to limited participation;

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therefore, there is a need to better involve them in the establishment of

environmental standards and regulations. It has also been agreed that these

schemes should be non-discriminatory in nature to prevent them from being

unnecessary barriers to trade.

In addition, there are several contentions when tackling the issue of labelling

and handling.

● Unincorporated PPMs

o Contention 1: Member states still disagree over the WTO

consistency of measured based on unincorporated PPMs. Many developing

countries believe that the discrimination between products based on

unincorporated PPMs should be ruled WTO inconsistent.

● The TBT Agreement

o The Agreement on Technical Barriers to Trade (TBT) is an

agreement that frames the rights and obligations for both mandatory and

voluntary labelling programmes.

o Contention 1: There is an increasing use of process-based

regulations rather than product-based standards.

o Contention 2: There is a divergence between the WTO and

developing countries over the recognition of equivalence of trading norms.

The WTO urges member states to recognise equivalency, given the same final

objective; developing countries believe that the recognition of the

equivalency of their own certification systems is an area of concern.

● Appropriateness of Forum

o Contention 1: Some member states view the CTE as the ideal

committee to discuss the issue of environmental labelling as it had been given

the mandate to do so by the Doha Ministerial Declaration. However, other

members contend that the TBT Committee would be more appropriate as it is

already discussing the issue of labelling.

● Handling

o Contention 1: Vague and diverse selection criteria in handling

requirements. For instance, wood is used for packaging in many Asian

countries, as opposed to being deemed as unrecyclable in Europe.

Bloc Positions

Developing countries. Developing countries are often “blocked” from being

imported (or being able to export to developed countries) because of strict

environmental standards. They will potentially want to push for a more

balanced approach between market access and environmental protection

(depending on what the national policy and practice is with regards to

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general environmental protection). Import rules on this particular point

could be something that developing countries could potentially have a strong

position on. Technology sharing in order to help them develop and achieve

sustainable development would be another consideration that they could

push for (as often they do not have the capabilities themselves).

Developed countries. They would wish to maintain their environment and

health standards because they use them for the benefit of their citizens and

their own environment which are deemed important (former probably more

so than the latter). They would probably agree to new measures on

technology sharing, but it depends on what these measures would be.

Questions a Resolution Should Address

One important note that delegates should keep in mind is that the WTO is not

an environmental protection agency. In other words, the competence of the

WTO is limited to international trade or trade-related aspects, and the WTO

does not have specific expertise on environmental matters. It is in the

committee’s interest to discuss environmental issues and consequences, but

these should not take up the bulk of the debate. Rather, the focus should be

on how reforming trade could impact the environment.

In order to facilitate WTO and MEA Secretariat cooperation, MEA Secretariats

should be granted observer status at the WTO. Indeed, several MEA

Secretariats already have been granted observer status at the CET. The

observer status of MEA Secretariats is important to enhance the participation

of MEA Secretariats and other related international bodies/organizations in the

work of various WTO committees, not just CET.

The existing cooperation between WTO and MEA secretariats should be

formalized. Additional measures to avoid potential conflict between WTO and

MEA rules should be taken. One way of doing this would be by strengthening

the cooperation between trade and environmental government agencies on

a national scale2.

It is unclear what role trade will play in the climate change agenda post-2015

(Paris COP21). Trade measures could be in the climate change agreements

(e.g. when reducing global GHG emissions). And such an agreement should

make sure that it complies with the WTO rules in order to be used successfully

when tackling climate change. This will happen under the UNFCCC and the

2 https://cites.org/sites/default/files/i/news/2015/CITES_WTO_Brochure_72.pdf

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WTO can do little about this. However, the WTO could seek to modify its

rules to become more open to trade measures that are used to address

climate change as well as open markets for environmentally-friendly goods

and services (see section “market access” above). The identification of trade

opportunities for sustainable growth to support the creation of markets for

environmentally-friendly goods and services. Such measures/recognition

could help in improving the relationship between the UNFCCC and WTO.

Further Reading “The World Trade Organization (WTO) and Multilateral Environmental Agreements

(MEAs)” by IISD - focuses largely on WTO-UNFCCC relationship but has some

interesting points about the future of WTO-MEA relationships

https://www.iisd.org/pdf/2010/matrix_wto_meas.pdf

“Trade and environment” - a WTO web-link that links to a lot of the relevant

information within WTO about what is done with regards to environment

https://www.wto.org/english/tratop_e/envir_e/envir_e.htm

“The Doha mandate on multilateral environmental agreements (MEAs)” - a brief

overview of what is mandated to be done in the Doha rounds

https://www.wto.org/english/tratop_e/envir_e/envir_neg_mea_e.htm

“WTO Matrix on Trade-Related Measures Pursuant to Selected Multilateral

Environmental Agreements (MEAs)” - around 20/250 MEAs provide provisions on

trade (they are named here) and at the bottom of the page a link is included to the

latest Matrix

https://www.wto.org/english/tratop_e/envir_e/envir_matrix_e.htm

“CITES and WTO” - a specific document how the relationship between WTO and

CITES (secretariat) can be improved. (A model for other MEAs? That’s up to

discussion)

https://cites.org/sites/default/files/i/news/2015/CITES_WTO_Brochure_72.pdf

Sources https://www.wto.org/english/tratop_e/envir_e/envir_neg_mea_e.htmhttps://www.wto

.org/english/tratop_e/envir_e/envir_neg_mea_e.htm https://www.wto.org/english/res_e/booksp_e/trade_env_e.pdfhttps://www.wto.org/e

nglish/res_e/booksp_e/trade_env_e.pdf https://www.wto.org/english/tratop_e/envir_e/envir_matrix_e.htmhttps://www.wto.org

/english/tratop_e/envir_e/envir_matrix_e.htm http://www.unep.org/delc/MEAImplementationSupport/tabid/54401/Default.aspxhtt

p://www.unep.org/delc/MEAImplementationSupport/tabid/54401/Default.aspx http://www.baylor.edu/content/services/document.php/95770http://www.baylor.edu

/content/services/document.php/95770 https://www.wto.org/english/thewto_e/minist_e/min03_e/brief_e/brief25_e.htmhttps:

//www.wto.org/english/thewto_e/minist_e/min03_e/brief_e/brief25_e.htm https://www.wto.org/english/thewto_e/minist_e/min03_e/brief_e/brief14_e.htmhttps:

//www.wto.org/english/thewto_e/minist_e/min03_e/brief_e/brief14_e.htm

https://www.wto.org/english/tratop_e/envir_e/envir_e.htmhttps://www.wto.org/english

/tratop_e/envir_e/envir_e.htm

https://www.iisd.org/pdf/2010/matrix_wto_meas.pdf




https://cites.org/sites/default/files/i/news/2015/CITES_WTO_Brochure_72.pdf




https://www.wto.org/english/res_e/booksp_e/trade_env_e.pdf






http://www.unep.org/delc/MEAImplementationSupport/tabid/54401/Default.aspx



http://www.baylor.edu/content/services/document.php/95770



https://www.wto.org/english/thewto_e/minist_e/min03_e/brief_e/brief25_e.htm









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Topic B: The Bali Package: Renewing the

world trade negotiation agenda

Introduction

The Bali package is a comprehensive multilateral trade agreement reached

at the 2013 WTO ministerial conference. The Package was not overburdened

by the Doha Development Agenda (DDA), of which the scope exceeds the

Package, and so it came as relief since the Doha talks have repeatedly failed

to progress.

The package consists of ten separate decisions, which cover the following

four areas:

Trade facilitation

Agriculture

Cotton

Development and Least Developed Country (LDC) issues3

In broad terms, the Package aimed to reduce both tariff and non-tariff barriers,

as well as simplify the bureaucratic process linked to trade and lower subsidies4.

One estimation from the Peterson Institute for International Economics put the

potential gains of the package at nearly an additional creation of 21 million

jobs and a global GDP increase of $960 billion5.

The Package was not agreed upon easily - opposition came from various sides,

most notably India and the Bolivarian Block (Bolivia, Ecuador, Cuba,

3 https://www.wto.org/english/thewto_e/minist_e/mc9_e/balideclaration_e.htm 4 http://www.dw.com/en/wto-bali-agreement-expected-to-boost-growth/a-17278088 5 http://www.iie.com/publications/papers/hufbauer-schott20130614ppt.pdf


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Nicaragua and Venezuela). The former wanted to maintain its food

subsidies for the poor, and the latter sought a clause condemning the U.S.

trade embargo against Cuba. An agreement was reached in both cases:

India was allowed to continue its food subsidy programme within strict limits

and agreed to reach a final deal within the next two years, while the Bolivarian

Block agreed on a compromise formulation that highlighted the principles of

non-discrimination6.

The WTO is facing increasing pressure from plurilateral agreements – most

notably the Trans-Pacific Partnership (TPP) and Trans-Atlantic Trade and

Investment Partnership (TTIP) – which would shift governance of trade away

from the WTO.

The Package still has considerable shortcomings as many issues of the DDA

remain unsolved, including trade and environment, intellectual property,

dispute settlement, services, and e-commerce7. It also faces criticism, notably

from developing countries that claim the Package does too little to tackle

global trade imbalances. Nonetheless, the Package was largely perceived as

one of the most important international agreements in last few years.

Key terms

Tariff - a tax on imports or exports. Tariffs are often viewed as distortions to the

free market. By using tariffs, a country artificially shields an industry from the

workings of markets and can discriminate against products produced by other

countries. Typically it is argued that tariffs tend to benefit domestic producers

and governments at the expense of consumers.

Tariff binding - a ceiling above which a state cannot apply a tariff, usually

created in WTO agreements.

Non-Discrimination - the practice or policy that refrains from discrimination. In

a WTO context, non-discrimination is included in the principles of the trading

system. The rules on non-discrimination are there in order to secure fair

conditions of trade worldwide. The rules try to establish what is fair and unfair,

and how nations and their governments can deal with various conditions.

A subsidy - a form of financial aid or support that is extended to an economic

sector, with the aim of promoting economic policy. Subsidies are usually

6 http://www.imd.org/research/challenges/TC095-13-wto-bali-package-carlos-braga.cfm 7 https://www.wto.org/english/tratop_e/dda_e/status_e/brief00_e.htm

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extended and given by national governments. Subsidies can be both

direct (e.g. cash) and indirect (e.g. tax breaks). The most common form of

subsidies are those that are extended to the producer.

Free Trade blocs/agreements - based upon an intergovernmental agreement

(between two or more states), where barriers to trade (both tariff and non-

tariff) are reduced or eliminated among the states that are part of the

agreement. Free trade blocs can be a part of regional intergovernmental

organizations, such as the EU. The best known free trade blocs are the EU and

NAFTA; there are negotiations happening for the establishment of various other

free trade blocs. Free trade blocs are often met with scepticism because they

are said to distort the free market and be discriminatory towards those nations

that are not within the bloc.

Key Concepts and Treaties8

Doha Development Agenda - the current trade-negotiation round of the WTO,

under which the Package was negotiated. Main objectives include lowering

of the trade barriers and facilitating global trade. These objectives are at the

forefront of the Bali Package and understanding the DDA is important for any

further negotiations.

ALBA (aka. Bolivarian Alliance) and the embargo on Cuba - ALBA is an

intergovernmental organization based on the idea of social, political and

economic integration of Latin American and Caribbean countries. ALBA is

usually associated with socialistic and social democratic government. The U.S.

embargo on Cuba is an economic and financial embargo imposed by the U.S.

on Cuba. It was first imposed in 1960 and has not been lifted yet. The embargo

was a consequence of Cuba nationalizing American-owned Cuban oil

refineries without compensation. Despite the embargo, the U.S. is still the fifth

largest exporter to Cuba. Every year since 1992, the UNGA has passed a

resolution condemning the on-going impact of the embargo.

The Trade Facilitation Agreement - one of the agreements in the Bali Package.

Delegates should read upon this further in detail so that a better understanding

can be developed on the topic and the debate is in line with the already

existing provisions and rules.

8 Important resolutions, agreement and alliances for the topic (to be further researched by delegates).

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General Agreement on Tariffs and Trade (GATT) - it is a multilateral

agreement that regulates international trade. GATT is the predecessor of WTO

and its rules. GATT is still in effect under the current WTO framework.

Non-agricultural market access (NAMA) - NAMA products are all the products

that are not covered by the Agreement of Agriculture, especially industrial

products and manufactured goods. NAMA products are important as they

account for almost 90% of the world merchandise exports9. The WTO’s Uruguay

Round achieved the reduction of tariffs in developing countries and new tariff

bindings in developed countries, and it was a significant improvement in

market access for NAMA products. However, NAMA is still important as tariffs

continue to be a barrier in world trade.

Statement of the Problem

As mentioned before, the Package covers four specific areas of international

trade. This section is dedicated to explaining the details of the Package,

including what it does and does not cover.

Trade facilitation

The issue of trade facilitation is at the core of the package, since it makes up

almost half of the content published. The annex of the Trade Facilitation

Agreement (TFA) is subdivided into two sections. The first section covers

general rules that apply to all signatories, and the second section specifically

deals with differential treatment of developing countries.

The members are required to make all information concerning international

trade easily accessible and to all of the members, traders and other interested

parties in a non-discriminatory way. This covers import, export, transit

procedures, tariffs, regulations, prohibitions and appeal procedures among

others.

A change in the national legislation, which falls under mentioned provisions,

has to be published with prior notice and an opportunity has to be given to

the affected parties to comment on the proposed changes. The right to

appeal has been strengthened by giving every person with customs issues the

right to administrative or even judicial appeal. Customs cooperation between

the member and border agency cooperation are to be enhanced.

The “Special and Differential Treatment Provisions for Developing Country

Members and Least Developed Country Members” has three different

categories of provisions:

9 https://www.wto.org/english/tratop_e/markacc_e/nama_negotiations_e.htm

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a. Provisions to be implemented after the package has entered into

force,

b. Provisions that shall be designated for implementation after a

transitional period, which is to be determined by the Member within one

year after its signing,

c. Provisions that shall to be designated for implementation after a

transitional period “and requiring the acquisition of implementation

capacity through the provision of assistance and support for capacity

building”, which means that, similar to B, latest one year after the

agreement was signed the period has to be determined by the

member, but in the following 18 months donors and experts will assist the

member with the implementation,

It has to be noted, that Members were given the opportunity to extend the

one year period, but the WTO had to be notified at least 120 day before the

expiration of the implementation date10.

Agriculture

The greatest issue in agriculture was the opposition of India of measures related

to its public stockpiling scheme. India buys up rice and grains from its farmers

over world market price and stockpiles to prevent food shortages among the

poor. They threatened to veto the package, if their demands were not met11.

The ministerial conference decided to urge all members to refrain from using

the WTO Dispute Settlement Mechanism, if a developing member were not to

comply with the Agreement on Agriculture. It was decided that a working

programme was to search for a permanent solution until the 11th Ministerial

Conference (to be held in 2017). This was commonly known as the “Peace

clause”12.

Another provision is the “Tariff quota administration”. During the Uruguay round

non-tariff barriers were replaced by tariff barriers, mainly in the form of so-

called “tariff rate quotas”, which places tariffs on imports depending on the

amount1314. The package now specified the fill rates (the percentage of

agricultural products, which will be tariffed) to be no higher than 65%. The

process of the tariff setting will be monitored by the WTO15.

10 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci36_e.htm 11 http://www.dw.com/en/opinion-bali-is-better-than-nothing/a-17278191 12 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci38_e.htm 13 http://www.ers.usda.gov/topics/international-markets-trade/trade-policy/world-trade-

organization-%28wto%29/agreement-on-agriculture-and-beyond.aspx 14 http://www.fao.org/docrep/003/x7353e/X7353e05.htm 15 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci39_e.htm

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Lastly the agricultural agreement condemned every form of export

subsidies and committed the WTO to undertake an examination process on

the progress of reducing said subsidies16

Cotton

Recognizing that cotton is an important source of income in many

developing countries, the ministerial conference decided that it was to be

exempted from the general lowering of subsidies. However the WTO and its

Director-General are monitoring the need for “development assistance” in

this area17.

Development and Least Developed Country (LDC) issues

These provisions are dealing with the issue of how the international trade

system can be effectively rebalanced in order to grant the LDCs a fair market

access. It allows for LDCs to implement so-called “preferential rules of origin”,

which means that they are allowed to target products from specific countries

and impose individual barriers on them1819. It furthermore urged the developed

members to reduce barriers in order for the LDCs to gain a so-called “Duty-free

and Quota-free (DFQF)” market access, since 97% of all products originating

from LDCs were subject to some type of tariff20. A Monitoring Mechanism was

established in order to watch over the integration of the LDCs in the

international trading system21.

Shortcomings – What needs to be done after Bali?

The obvious issues that needs to be addressed in the Post-Bali agenda is

agriculture. The ministerial conference itself has said so in its conclusion of the

package and has reiterated its commitment to the DDA22. The Package as a

whole received a rather mixed feedback. While developed countries, such as

the US and EU members, mostly welcomed the deal, most developing nations

have remained critical. There was widespread scepticism as to whether the

global trade imbalances would be reduced23 if the developed countries

honestly honoured the agreement.

16 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci40_e.htm 17 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci41_e.htm 18https://www.wto.org/english/tratop_e/roi_e/roi_info_e.htm 19 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci42_e.htm 20 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci44_e.htm 21 https://www.wto.org/english/thewto_e/minist_e/mc9_e/desci45_e.htm 22 https://www.wto.org/english/thewto_e/minist_e/mc9_e/balideclaration_e.htm 23 http://www.atimes.com/atimes/Global_Economy/GECON-02-171213.html

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As mentioned earlier, one of the main clashes was the issue of stockpiling

and subsidizing food by India. A bilateral agreement between India and the

U.S. from November 14th, 2014, has resolved that issue, with the U.S. allowing

India to continue its programme indefinitely24.

The initial compromise with India was subject to criticism, because it was

undermining the principle of non-discrimination. However India has also been

supported by organizations critical of globalization, who feel that a

liberalization of trade comes at the expense of the poorest of the poor25. Even

though the package has tackled several issues regarding the agricultural

sector the topic of market access has not been satisfyingly settled. Agricultural

markets are still one of the most protected and sheltered by high tariffs.

An issue that has not been covered by the WTO at all are exchange rates,

even though they play a significant role when it comes to worldwide trade.

Technically exchange rate monitoring or control is a task of the IMF, but

“quantitative easing” programmes by the American FED, the European

Central Bank or the Bank of Japan have had massive spill overs in the sense

that they artificially lower the exchange rate and therefore make the exports

of these countries cheaper than they actually are. China has been accused

for years of keeping the Yuan undervalued as a way of boosting its exports26.

In the past few years many countries have been pursuing a free trade agenda

on a bilateral or regional basis. Agreements such as NAFTA, CETA, TTIP or TPP

(not to mention the EU) have made the WTO seem, in parts, unnecessary.

Given that it took 12 years from the start of the Doha talks to agree upon the

least possible framework cast the impression that the approach the WTO takes,

meaning continuous negotiation between many members, is rather inefficient.

Therefore the package was crucial in creating credibility for the WTO as still an

important actor in international trade agreements27.

Bloc Positions

Least Developed Countries. Taking further measures to tackle the global trade

imbalances stays a priority with these countries. The differentiated treatment

of LDCs will continue be important for them, so anyone or anything

(potentially) threatening these provisions will not be ‘tolerated’ by these

24 http://www.bbc.com/news/business-30033130 25 http://www.dw.com/en/opinion-bali-is-better-than-nothing/a-17278191 26 http://www.voxeu.org/sites/default/files/Building_on_Bali.pdf 27 http://www.voxeu.org/sites/default/files/Building_on_Bali.pdf

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countries. However, they are invested in all aspects of the negotiations, as

all of the issues affect them in some way.

Low Income Economies in Transition. These states have a particular interest in

attempting to secure the same rights and treatment that has been afforded

to LDCs. While their goals might not necessarily threaten LDCs and what they

have already accomplished, it is possible that LDCs will be vary of Low Income

Economies in Transition, so they have to try and work together with LDCs (and

maybe gain their support).

Small Vulnerable Economies. These countries are particularly vulnerable to any

economic uncertainties. SVEs have particular focus on three aspects -

agriculture, NAMA and the rules. With regards to agriculture, SVEs want

flexibilities in the pillars of domestic supports and export competition to be

granted to them. With regards to NAMA they wish to apply modality and tariff

reductions.

African group. The African group is interested in all of the aspects of the

negotiation, and does not necessarily prioritize any of the issues. The only

exception of this is the African group states that are part of ACP as they have

agricultural preferences and this will be one of the main topics they will push

for.

The European Union. Similarly to the African group, the EU is invested in all

aspects of the negotiation. It must be noted though, that because the EU is a

free trade bloc, they will be particularly interested in protecting their rights to

stay as such and how the reduction of trade barriers will affect the Union and

its functions.

Agricultural interests. Agriculture is on the main most contentious and most

important topics in the negotiations. Some of the groups that have strong views

and demands for this topic are: Cairns Group, Tropical Products, G-10, G-20,

G-33, Cotton-4, and African Group.28

Questions a Resolution Should Address

While the shortcoming of the Bali Package should be addressed, the Package

should also be used as a building bloc to deliver the broader Doha Agenda.

Various points of this have been mentioned earlier in this study guide and these

can be used as suggestions as to what further can be done in the negotiations.

28 See here and here for negotiation coalitions and a detailed break-down of all groups.

https://www.wto.org/english/tratop_e/dda_e/groups_e.pdf

https://www.wto.org/english/tratop_e/dda_e/negotiating_groups_e.htm

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Agriculture should be one of the main points addressed in a resolution. There

are many interest groups with regards to agriculture, so reaching an

agreement in a resolution might be difficult, but not impossible. Particularly the

exemption of cotton should be revisited. There have been proposals to

change subsidies and open markets29, maybe delegates can come to an

agreement in the session. Market access should also be revisited again

because the agriculture sector as a whole is still highly sheltered by high tariffs.

NAMA product market access is still a big problem. Building upon the Uruguay

rounds, further modifications must be made with regards to NAMA.

The environment is the last “big” topic that should be addressed in a resolution.

Because the Doha rounds are the first significant negotiations on trade and the

environment in the WTO, some provisions should be included in a draft

resolution. In the negotiations there are two key components when it comes to

the environment: freer trade in environmental goods (i.e. clean energy

technology etc.) and environmental agreements (a more specific address of

this component is in topic A of this committee at LIMUN).

Further reading:

“What are they negotiating?” - a good resource with links to all the different

parallel negotiations that are happening in the Doha rounds (which is kept up

to date).

https://www.wto.org/english/tratop_e/dda_e/update_e.htm

“Ninth WTO Ministerial Conference” - all the information of the ministerial

conference where the Bali Package was adopted

https://www.wto.org/english/thewto_e/minist_e/mc9_e/mc9_e.htm

The WTO website will be your best friend in general - because of the WTO aim

towards transparency, around 95% of the documents/information that you

need can be found on there.

29 https://www.wto.org/english/tratop_e/agric_e/cotton_e.htm

https://www.wto.org/english/tratop_e/dda_e/update_e.htm

https://www.wto.org/english/thewto_e/minist_e/mc9_e/mc9_e.htm

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Conference Information When looking for information regarding LIMUN 2016 (and

subsequent editions) your first step should be to visit our website:

www.limun.org.uk

LIMUN in social media

Please follow updates from us through our social media channels:

London International Model United Nations (LIMUN)

@LondonMUN

When tweeting about this year’s conference (your preparations,

journey to/from London or when live-tweeting the events during the

conference itself) –

- please use hashtag #LIMUN2016

Agenda & Rules of Procedure

The agenda for the 2016 conference is available online at

www.limun.org.uk/agenda

The Rules of Procedure can be accessed here:

http://limun.org.uk/rules

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Position Papers

What is a position paper?

A position paper is a statement of policy, which is intended to

communicate an overall position of a country on a particular topic

debated in the committee. Position papers should be brief and

outline the general policies rather than specific measures.

Each delegate should submit one position paper per topic to be

debated by the committee (note: most of the committees have

two proposed topics). Each paper should be approximately one

page per topic.

LIMUN offers a short guide on how to write a position paper. It is

available on our website:

http://limun.org.uk/FCKfiles/File/PP_Guide.pdf

Deadlines

The deadline for the submission of delegates’ position papers is 20

February 2016. Failure to submit by this deadline will render

delegates ineligible for Diplomacy Awards.

Positions Papers will have to be submitted in a publicly-accessible

Dropbox, to be provided by committee directors. At their

discretion, directors may provide feedback in individuals cases if so

requested.

The most worthy work submitted in a committee will earn the

delegate a Best Position Paper Award. The length of any one paper

should not exceed 500 words.

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Contact Details

For any enquiries relating to your committee proceedings or if you

want to get in touch with your committee’s directors, or for

submission of position papers:

- please e-mail: [email protected]

Other enquiries regarding the Conference:

- please e-mail: [email protected]

Before contacting LIMUN please make sure you have read FAQ

section on our website: http://limun.org.uk/faq


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