Seminar on Key Trade Issues

Background

According to the recent WTO report, the financial crisis and consequent collapse of aggregate demand in Europe and North America created a global economic recession that has dragged down the volume of merchandise trade by over 10% in 2009, back to the level at which it stood in 2005. Developing countries remain particularly vulnerable to further contraction of their exports as well as to shortage of bank financing and declining FDI, falling commodity prices, reduction in earnings from remittances and uncertainty over future ODA flows.

Thanks to the huge financial and fiscal stimulus programs, despite of the size and suddenness of the economic crisis, it sparked a little protectionist response. Nevertheless, some 52 WTO members increased tariffs and non-tariff barriers on certain imports. They include agricultural, iron and steel products, consumer electronics, textiles and clothing and footwear that are regarded as sensitive products in many trading nations. Export subsidies on dairy products were re-installed in EU and U.S. There has been a substantial increase in the initiation of trade remedy investigations, particularly by emerging economies for anti-dumping and safeguard measures, and by developed countries in the case of countervailing measures.

While many WTO members request more in-depth analysis of the trade effects of these developments, the report points out the dangers that must be avoided in coming months, such as an incremental build-up of trade restrictions, and the longer trade restricting and distorting measures. In addition, in order to maintain and strengthen the WTO multilateral trading system, more efforts are needed to conclude the Doha Round.

WTO members continued advancing bilateral and regional trade arrangements (RTAs or FTAs). While FTAs have become an important part of the global trade architecture, essential characteristics of them would be to complement the multilateral trading system by lowering external tariffs, simplified rules of origin and broad coverage of all sectors of trade. WTO observes that transparency mechanism for FTAs remain unsatisfactory. WTO feels that more needs to be done to strengthen the WTO’s monitoring and surveillance capacities.

Under these current particular circumstances, as many Asian DMCs are of export-led economies, it would create a significance to provide an opportunity to them in the form of a seminar for reviewing key trade issues for better understanding and preparations for bilateral and global trade negotiations.

The main objectives of the proposed seminar are to (i) provide trade policymakers with in-depth knowledge, technical details and their policy implications of key trade issues and (ii) enhance policy capacity and technical skills among them for effective negotiations both on a bilateral and multilateral basis.

In view of the above, the Seminar on Key Trade Issues will address the following subjects:

1. New United States Trade Policy under the Obama Administration;
2. Impact of the Global Financial Crisis on Asian Trade;
3. Current Status of DDA and Aid for Trade;
4. FTAs in the Asian region and Rules of Origin;
5. Recent Developments in Trade Remedy Measures and WTO Dispute Settlement Mechanisms;
6. Customs Agenda and Trade Facilitation; and
7. Trade and WTO Aspects of Climate Change Border Measures

It should be noted that Ambassador Clayton Yeutter will be invited not only to deliver his keynote speech on the new United States trade policy, but also at DSS prior to the seminar on 23 March 2010.

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Outputs

1. Better understanding of the key international trade issues;
2. Improved capacity in DDA, and bilateral and regional FTA negotiations;
3. Executive summary of proceedings to be prepared by 7 May 2010; and
4. Strengthened networking among participants and resource speakers.

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Participants

The proposed Seminar will be attended by 20 senior trade officials directly in charge of WTO and FTA negotiations from the following 20 DMCs that are also a WTO member: Bangladesh; Cambodia; PRC; Hong Kong, China; India; Indonesia; Republic of Korea; Malaysia; Maldives; Mongolia; Myanmar; Nepal; Pakistan; Papua New Guinea; Philippines; Singapore; Sri Lanka; Taipei,China; Thailand; and Viet Nam.

Participants from Hong Kong, China; Republic of Korea; Singapore; and Taipei,China will be requested to fund for their participation.

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Partners

UNCTAD, Geneva; World Bank, Washington, D.C.; WCO, Brussels; ADB HQs (OREI); and Government of Japan (METI)