WTO RULES Affecting Market Access
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Background
The open-ended results of the Uruguay Round negotiations reflect how instruments can be framed to protect interests under a rule-based system, sometimes even at the cost of free trade. Reflections on such open-ended results are found in ‘WTO-Rules’. The term ‘WTO-Rules’ is generally used in the WTO parlance to signify certain agreements or provisions, for instance Agreement on the Application of Sanitary and Phyto-sanitary Measures (SPS), Technical Barriers to Trade (TBT), etc. The meeting was focus on enhancing the participants’ capacity, especially those from the least developed countries, to understand and respond to SPS and TBT issues. It endeavoured to demystify issues related to these rules vis-à-vis negotiating market access. Objectives
WTO Rules and Market Access: Need for A Proactive Agenda Jaipur, 29th April. “We need to go beyond ‘technical assistance’ if developing and least developed countries are to benefit from the multilateral trading system,” said John Cuddy, Director, Division on International Trade in Goods and Services and Commodities of the United Nations Conference on Trade and Development (UNCTAD). Cuddy was speaking at the closing session of an international workshop on “Negotiating Agenda for Market Access: Cases of Sanitary and Phyto-sanitary Measures and Technical Barriers to Trade”. The event was organised by the Jaipur, India-based CUTS Centre for International Trade, Economics & Environment, with the cooperation of UNCTAD and the International Centre for Trade and Sustainable Development, Geneva. The event was organised in Geneva on 24-25 April 2001. More than 70 participants from civil society organisations, government officials, academics and representatives of trade missions in Geneva participated in the meeting. Officials from the WTO (World Trade Organisation) and the UNCTAD secretariat also participated and spoke on the occasion. Most importantly, case studies were presented by experts from the developing world, such as Kenya, Nepal, Uganda, Mozambique, Chile, Zambia, Tanzania, Sri Lanka, Bangladesh and India. “This is the first time I have been hearing ground realities. In the meetings of the WTO Committee on SPS we hardly discuss such cases as we do not have access to ground realities,” said Erik Wijkstrom, Economic Affairs Officer of Agriculture and Commodities Division of the WTO. Wijkstrom was referring to various presentations of case studies on the difficulties of getting market access in industrialised countries due to increasing use of SPS and TBT measures. The event provided a fertile platform for the experts to present ground realities in implementing the provisions of WTO agreements on SPS and TBT. “The main criticisms against the global standard setting process were lack of transparency and participation of consumer organisations,” expressed Allan Asher, Global Campaigns Director of Consumers International, London, UK. Hector Torres of the Argentinean trade mission at Geneva drew attention to the fact that developing countries have comparative advantage in agricultural exports but they cannot utilise this advantage under the present system. “The opportunities offered by the WTO Agreement on Agriculture were not being realised properly because of market access barriers that these countries are facing due to improper use of standards” said Torres. While presenting a study on the European Union ban on exports of shrimp products from Bangladesh on health grounds, Mustafizur Rahman of the Centre for Policy Dialogue, Dhaka, Bangladesh highlighted the adverse effects of the ban on the country’s economy, its foreign exchange earnings, the employment of small fishermen etc. “The cost of compliance with EU’s standards was too high. If a product is perfect for domestic consumption why can it not be considered for consumption abroad”, asserted Rahman. In 1997, the ban was imposed on the ground that exports of this commodity did not meet the stringent provisions of the European Community’s HACCP (Hazard Analysis Critical Control Point) regulations. It put the country’s shrimp export industry under severe strain and led to serious market disruptions from which the country is still trying to recover. The cost was equivalent to US$ 65.1 million. “During the last three years, the country has witnessed two bans of its fish from the Lake Victoria into the EU market. They had adverse impact on the fish industry, in terms of foreign exchange earnings, income and employment generation. Following the ban, about 4,000 people (let alone small fishermen who could not find a market for their catch) were suspended from work” said Flora Musonda of the Economic and Social Research Foundation, Dar Es Salaam. She presented a case study on the impact of implementing the WTO Agreement on SPS and fish exports from Tanzania. Tanzania lags behind in complying with the provisions of the SPS Agreement because of insufficient technical know-how and human and financial resources and facilities. She called for institutional strengthening of the Fisheries Department through training of fish quality assurance and control staff, provision of communication and transport facilities to enhance logistical capacity etc. Thomas Cottier of the Institute of European and International Economic Law, University of Berne, Switzerland spoke about the concerns of developing countries while implementing the provisions of the TBT Agreement. He pointed out that there was not only lack of analytical capacity of the national focal points but also little coordination between various stakeholders. Elisabeth Tuerk of the Centre for International Environmental Law, Geneva, Switzerland presented a study on the dispute of asbestos exports from Canada to the European Union. She explained the implications of the dispute for the developing countries and what lessons could be learned. Speaking at the inaugural, Carlos Fortin, Deputy Secretary General of UNCTAD applauded the initiative that CUTS has taken in bringing forth the views of developing and least developed countries on WTO rules. Fortin urged CUTS to prepare a proactive and positive agenda on the issues and organise similar events in Geneva in future. “This is an education for us and required for the benefit of the multilateral trading system as a whole.” “CUTS should organise similar events in Geneva on issues of rules of origin, anti-dumping etc and implement a programme on WTO rules and market access in developing and least developed countries by forming a network of civil society organisations, academics, research institutes, representatives of inter-governmental organisations etc”, said Mina Mashayekhi, Legal Officer of the International Trade Division of UNCTAD. “The initiative is not only
the need of the hour but with specific case studies the exercise will feed
into the process of setting the agenda for the Doha Ministerial Conference
of the WTO,” said a trade diplomat from a large developing country. The
Ministerial Conference will be held at Doha, Qatar in November 2001 and
developing countries are coming up with a set of proactive agenda.
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