Transcript UNCTAD and the WTO - More Differences than Similarities?

Two multilateral organisations
dealing with trade:
UNCTAD and WTO
More differences than similarities
Manuela Tortora
Chief, Technical Cooperation
UNCTAD
THE DIFFERENCES LIE ON:
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The origins
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The mandates
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The institutional functioning
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The thinking on trade and development
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The strengths and weaknesses
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The negotiations
UNCTAD’s INTEGRATED VISION OF TRADE AND
DEVELOPMENT and THE SCOPE OF ITS WORK:
INTERNATIONAL ECONOMIC ENVIRONMENT
NATIONAL DEVELOPMENT GOALS
TRADE
SUPPLY-SIDE
PRODUCTIVE
CAPACITY
POLICIES
TRADE
POLICY
AND
NEGOTIATION
SUPPORT
SERVICES
POLICIES
SOME UNCTAD IDEAS
(NOW USED OUTSIDE UNCTAD)
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Special and differential treatment for developing countries
Coherence between national policies and international
economic environment (MDG 8)
Policy space and “no-one-size-fits-all”
Links between investment, science and technology, ICTs and
trade flows
Link between trade and environment, trade and climate change
Role of commodities in international trade
Development-friendly WTO rules on trade in services
LDCs’ terms of WTO accession
Work on debt reduction (HIPC) and debt sustainability
Role of competition law and policies in development processes
Work on trade facilitation
Research on non-tariff barriers to market access
SOME NUMBERS
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UNCTAD secretariat: 400 staff
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Annual Regular budget: US $ 57 million
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Extra-budgetary funds: US$ 34 million
(2007)
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No field offices
Main UNCTAD publications
Annual analytical reports:
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Trade and Development Report
World Investment Report
LDCs Report
Information Economy Report
Report on Africa
…. and many other publications
all available on UNCTAD website:
www.unctad.org
THE “STICKING” ISSUES
OF
UNCTAD XII
Accra, 20-25 April 2008
THE CONCEPT OF
POLICY SPACE
Par.4: [Developing countries need
flexibility and policy space compatible
with their specific development
conditions, taking into account
international obligations, processes and
rules.] this sentence was deleted on 23
April
Par.19: [Policy diversity [is necessary to enable each
country to attain its – deleted on 23 April] can help
countries attain their development priorities and
objectives (…) there is no precise model for improved,
growth-enhancing governance and institutions]. (…)
[But developing countries, bearing in mind their specific
environments, have to find an appropriate balance
between national policy space and international disciplines
and commitments – deleted on 23 April]. The specific
policies and practices required for improved, growthenhancing governance and institutions should be
based on detailed and rigorous diagnostic analysis
that identifies binding constraints on private-sectorled growth and development. Thus, national strategies
for development should take into account the needs
and circumstances of each country.]
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Par.25: […there is a risk that the implementation of one-size-fitsall policies will have unintended consequences, and may even
give results contrary to those produced by same policy elsewhere
(…) There is also a need to ensure that future agreements
contain sufficient policy space to allow for policy diversity in
pursuit of development goals and objectives.] deleted on 23 April
Par.42: [UNCTAD should also continue its work on the concept of
policy space, bearing in mind that it is particularly important for
all countries to strike an appropriate balance between national
policy space and international policy disciplines and
commitments.] deleted on 23 April
CLIMATE CHANGE
Par.64: Climate change must be addressed owing
to its economic and human implications. The
United Nations Framework Convention on Climate
Change, in accordance with the principle of
common but differentiated responsibilities and
respective capabilities, is the appropriate forum for
negotiating issues related to the reduction of
global warming. Climate change response
measures can have trade and development
implications, in particular for developing countries.
Approved on 9 April
Par.107: [UNCTAD,
within its mandate,
should, without
duplicating the
ongoing work of other
organisations,
address the trade,
investment and
development
implications of climate
change in support of
sustainable
development.]
New par.107 approved on 23
April : UNCTAD, within its
mandate and without
duplicating the ongoing work
of other organisations,
should consider climate
change in its ongoing work
of assisting developing
countries with trade- and
investment-related issues in
development strategies.
Par.174: [Through its
research and [policy]
analysis, UNCTAD
should help developing
countries make
informed policy choices
to address the
challenges posed by
climate change in
relation to transport
strategies (…)]
New par.174
approved on 23
April: (…) to
address the
environmental
challenges in
relation to transport
strategies (…)
ENERGY AND COMMODITIES
Par.3: [For developing countries to reap
the benefits of globalisation in the
future there is a need to address the
impact of commodity dependence,
including the volatility of prices, the
effective use of revenues in periods of
rising commodity prices as well as the
diversification of production structures
in economies dependent on few
commodities.] approved on 23 April
Par.84: [In relation to the
current commodity boom,
actions are needed to support
the effective utilization by
commodity-dependent
developing countries of the
opportunities offered by
higher commodity prices to
initiate a process of sustained
economic growth and poverty
reduction, and to [address]
[mitigate] the detrimental
impact of higher [commodity]
[energy and food] prices on
the growth and development
prospects of [net energy and
food-importing] developing
countries.]
New par.84 approved on 23
April: Actions are needed to
support the effective
utilisation by commoditydependent developing
countries of the
opportunities offered by
current higher commodity
prices to initiate a process
of sustained economic
growth and poverty
alleviation. In this
connection, there is also a
need to address the issue of
volatility of commodity
prices.