Role of WTO_BPokhrel - European Economic Chamber
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Transcript Role of WTO_BPokhrel - European Economic Chamber
Second Part
Role of WTO in LDCs’ Trade
with special Reference to Nepal
Dr. Badri Pokhrel
Joint Secretary
Ministry of Commerce and Supplies
Trade Profile of LDCs
Out of 49 LDCs, thirty-two are Members of the
WTO; twelve LDCs are in the process of
accession and enjoy observer status at the WTO.
The share of LDCs in world trade has gone up in
recent years, although by a small margin.
LDCs accounted for nearly 0.8 per cent of world
trade in 2007, up from 0.4 per cent in 2000.
The share of LDCs in merchandise trade was 0.9
per cent in 2007; the share was only 0.4 per cent
for services trade.
Share of LDCs in world GDP and Trade
0.85
0.8
0.75
0.7
0.65
Total trade: 0.8% of World
Goods: 0.9%
Services: 0.4%
Total trade: 0.8% of World
Goods: 0.9%
Services: 0.4%
0.6
0.55
0.5
0.45
0.4
199019911992199319941995 199619971998199920002001 200220032004200520062007
Share of GDP
Share of Trade
Trade Scenario:Nepal
Total Trade
2005/6
2006/7
2007/8
Import
160,677,924
195,808,412
239,177,876
Export
59,77,6874
58927,097
58545,059
Surplus/Digit
100,901,050
136,881,315
180,632,817
Source: Trade & Export Promotion Centre, Nepal, Nov,2008
Major markets and products
The market base of LDCs is narrow. European
Union and the United States jointly account for
nearly 50 per cent of LDC export
Developing countries are becoming important
destinations, with China emerging as the third
largest destination. South-South trade represents
45 per cent of LDC exports
Export concentration continues to be the feature of
the LDCs' export profile. On average, three
products generate more than 70 per cent of export
revenues.
Major Markets for LDC merchandise exports
35
2000
30
2006
25
20
15
10
5
0
Thailand
Japan
China
European Union
United States
Benefits of the MTS
There is wide recognition that trade is an engine
for economic growth and development.
Trade helps global allocation of resources,
enhances output and productivity and increases
overall welfare gains.
WTO deals with multilateral rules of trade among
nations. As a rule-based multilateral trading
system, WTO helps ensure that its Members abide
by the agreements.
The underlying objective is to ensure that trade
flows smoothly.
Contd.
WTO ensures enforcement of rules through
dispute settlement. There is increased certainity
about trading conditions
WTO is a consensus-based organization where
developed and developing countries have equal
weight
WTO accords flexibility in the Rules to developing
countries and LDCs to integrate into the
multilateral trading system
The Doha Development Agenda (DDA)
negotiations could ensure improved market
access, reduction in trade-distorting subsidies,
more fair and equitable trade rules, thereby
allowing LDCs to benefit from trade
Doha Development Agenda (DDA)2001
Negotiations could ensure-improved Market
Access
Reduction in Trade distorting subsides
More fair and equitable trade rules
Addressing special emphasis of LDC
Opening of Trade in services
Duty-free and Quota-free
market access for LDCs
Members at the Hong Kong Ministerial agreed to provide
LDCs with Duty-free and Quota-free (DFQF) market access on
a lasting basis. Developed countries are asked to provide such
access to at least 97 per cent of products originating from
LDCs at the start of the implementation period of the Round.
There is also call for progressive improvement of market
access with a view to achieving 100 per cent DFQF coverage
of LDC products
Call for improving upon preferential rules of origin to facilitate
exports from LDCs
Facility in TRIPS to LDCs
LDCs are exempted from providing patents (both products and
processes) to pharmaceutical products until 1 January 2016.
LDCs are exempted from granting exclusive marketing rights
with respect to pharmaceutical products.
Decision adopted to oblige the developed country Members to
submit annual reports on actions taken by them in
encouraging technology transfer to the LDCs).
LDCs are allowed more time to provide protection for
trademarks, copyrights, and other intellectual property under
TRIPS Agreement, until 1 July 2013.
Nepal’s motivation
Integrate in economy to global mainstream
Capitalize market access opportunities
Accelerate domestic institutional capacity
Attract FDI
Benefit from positive discrimination
Keep consistency (Supply and
Administration)
Assure to and from predictability
Nepal’s commitment
Policy
Comply WTO Agreements
Implement CV, TBT, SPS, TRIPS
Publishing new laws and amending the existing
Market
Tariff binding-agro 42%, non agro 24.
Phasing out ODC by 10 yrs
Phasing out Tariff on 148 IT Products
Open 70 Sub sectors of Service trade.
Ongoing Efforts
Institutional arrangement and reform
MOCS-a focal ministry
Establish separate division-ITCD
(Originally WTOD)
Focal Points
Capacity enhancing of Custom, Copyright, Registrar,
Pattern/Trademark offices, Enquiry Points
Forming WTO units in different business
organizations
Strengthening Geneva Mission
Contd.
Policy Reform amendment
Enactment of different acts and rules
Different new policies-formed, Reviewed, Stage
of revision.
Infrastructure development
Birgang dry port (rail linked)
Biratnagar, Bhairahawa dry port (road linked)
Installed Physical facilities in land customs and
TIA, Kathmandu.
Explore alternative transit routes
Contd.
External Resource Mobilization
NTIS 2003 and 2009 updating
ENTReC and EU-WTO Assistance project
EU-SPS/TBT measures
(Norwey in Nepalese honey)
USAID-Trade facilitation
WTO, ITC, UNDP, WB, UNCTAD, UNESCAP,
WIPO and others are supporting (and willing to
support) in Trainings, Workshops and capacity
building
Benefits from WTO membership
Tangible
Policy Compatibility/Reform
Capacity building (Human, Institutional)
Infrastructure development
Market access, diversification
Trade and Competitiveness assessment
Contd.
Intangible
Knowledge and strength of other member countries
Awareness (Private, Sector, government, Civil
Society,..)
Self motivation to be competitive
Enforce to search alternatives
(Bilateral, regional) markets and products
SWOT Scenario
Strength
Bio diversity
Service Trade capacity
Abandont water resource
Weakness
Low Skill/Quality
Financial Shortage
Political instability
Opportunity
Wide Market
Competitive Capacity
Equal footing with other members
LDC facility
Threat
Revenue loss
Dependency
Collapse of domestic industries
Thank You