Dynamics of Bali Outcome

Outcome of the 9th WTO
Ministerial Conference
Dr Brendan Vickers
Chief Director: Research and Policy
International Trade and Economic Development Division
Presentation to the
Parliamentary Portfolio Committee on Trade and Industry
26 February 2014
Introduction
• SA is a proponent of multilateralism to manage
globalisation and interdependence.
• Imbalances in WTO rules that prejudice developing
countries’ interests need to be addressed.
• Reforms should enhance transparency and inclusiveness,
and be re-balanced in favour of developing countries.
• SA’s support for the Doha Round premised on
overcoming identified imbalances and securing a
developmental outcome for developing countries.
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Bali MC9
• 9th WTO Ministerial Conference held in Bali, Indonesia
from 3-7 December 2013.
• SA preparations for MC9 included consultations with
NEDLAC, Parliament and National WTO Conference.
• SA Delegation led by Minister Davies and included
Members of Parliament and NEDLAC Constituencies:
Business, Labour and Community.
• MC9 delivered first outcome of Doha Round following
prolonged impasse in negotiations since 2008.
• Minister Davies, WTO DG and WTO Members paid
tribute to former President Mandela on his passing.
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Bali Outcome
• 10 Ministerial decisions taken in Bali.
• Decisions on Regular Work of the General Council:
– Standard decisions to extend waivers for e-commerce
and TRIPS non-violation complaints.
– Members instructed the Committee on Trade and
Development to consider proposals on small
economies and make recommendations.
– Ministers reaffirmed their commitment to Aid for
Trade.
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Bali Outcome
• Decisions on Doha Development Agenda:
– Agriculture: India, supported by the Africa Group, did
manage to deliver positive outcome on food security
through public stockholding food programmes for the
poor; also deal to improve transparency and
administration of Agri TRQs
– No movement on key issues of interest to developing
countries: elimination of agricultural export subsidies;
cotton; DFQF market access for LDCs; S&D
provisions diluted
– Trade Facilitation
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Trade Facilitation Agreement (TFA)
• TFA was the only fully binding agreement adopted
following relentless pressure by developed countries.
• Imbalances within TFA and between TFA and DDA.
• TFA is imbalanced in terms of how the burden of
implementation is distributed (binding rules without
binding commitments to support implementation).
• Developing countries required to “self-designate” their
commitments under three categories: A, B and C.
• Will be highly constrained and politicised process that
requires agreement by other WTO Members.
• TFA narrows scope of S&D treatment (“one size fits all”).
• Implications for African regional integration?
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Dynamics of Bali Outcome
• Formally, the Bali Outcome may lay the basis for restarting the Doha Round negotiations in its totality under
the single undertaking principle.
• However, some concern that MC9 delivered an
imbalanced trade deal.
• Lays basis for an approach where issues of importance
to powerful are advanced, while those of the weaker
WTO Members are marginalised.
• Whereas TF and its binding commitments must be
implemented now, developing country issues were
adopted with best endeavour language and may only be
addressed in future.
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Post-Bali Process
• Members mandated to develop a clearly defined work
programme by end of 2014 to ensure delivery of the
remaining DDA issues.
• Priority to be given to issues in the Bali Package where
legally binding outcomes could not be achieved.
• Committee work has started to ensure entry into force
of TFA and its implementation.
• Chairs of DDA Negotiating Groups have also started
work guided by principles outlined by the DG WTO.
• SA will continue to build alliances with Southern
partners (Africa Group, NAMA 11, G20, G90) to
champion a development outcome to the Doha Round.
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