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An overview of the world trade outlook for 2002

An overview of the world trade outlook for 2002 three tariff quota To further complicate matters, This means they are not defined as a percentage of import prices but, for example, as a specific amount per tonne. This makes comparison with other tariff rates impossible unless specific tariffs are converted into ad valorem equivalent AVE.

Finally, Switzerland applies tariff quotas on 26 product categories, including beef, pork, dairy products, eggs, vegetables, fruits and some cereals, covering a total of tariff lines WTO a. These products will be eligible for gentler tariff reductions in exchange for quota expansion of up to 4. This preferential margin is likely to be eroded by multilateral liberalisation efforts. At the same time non-LDCs might benefit from lower MFN rates, particularly on goods where tariff peaks prevent them from accessing the highly protected Swiss market.

Table 2 provides, however, examples of tariff peaks applied to products of actual and potential export interest to developing countries. For each product it shows existing bound tariff rates at the WTO expressed in AVE and the average preferential rates paid by developed and developing countries on those products.

The last two columns respectively show the top developing country exporters to Switzerland, as well as countries that may not be currently exporting to Switzerland but have a high concentration of the analysed products in their agricultural exports and therefore have an interest in finding new market access opportunities.

Combined with the limited gains that these countries can expect from reduction in domestic support, this explains why many developing members have been reluctant to reduce their own agricultural tariffs, let alone accept ambitious cuts in industrial tariffs as envisaged in the NAMA negotiations.

Bilateral free trade agreements with developing countries 47Despite the financial crisis, Switzerland has continued to move forward in its pursuit of bilateral FTAs, many of them with developing countries.

World Economic Outlook

In the absence of progress at the multilateral level, FTAs are often seen as a faster and more flexible way to secure preferential market access in the South. Similar talks with Thailand started but are currently on hold. Negotiations with Peru have been concluded, but the text is currently undergoing legal review before it can be formally signed, paving the way for ratification.

A similar agreement with Colombia was signed in late Since most EFTA countries have heavily protected farm sectors, agriculture usually receives special treatment, with each EFTA member negotiating farm trade concessions separately.

On industrial goods, the agreements largely phase out tariffs, albeit with a longer adjustment period for developing countries. More recently issues that fall outside the scope of TRIPS, such as genetic resources and the promotion of research, technology and innovation, are starting to arise, for example in the EFTA-Colombia agreement.

Baseline provisions 52EFTA agreements establish a baseline through a series of general provisions and the subscription and incorporation of several multilateral intellectual property agreements. Subscription to the Patent Cooperation Treaty and the Patent Law Treaty has also become an obligation in recent models. With the exception of the first three agreements, these treaties are not directly covered by the TRIPS Agreement and therefore imply internal modification of patent, trademark, copyright legislation and administrative procedures.

This is particularly the case in areas such as patents, undisclosed information, copyrights, designs, geographical indications and enforcement. Test data protection has been heavily criticised as one of the TRIPS-plus provisions that most affects access to medicines because such measures generate delays in the entry of generic, and thereby cheaper, products.

  • It covers more than an eighth of the Earth;
  • Test data protection has been heavily criticised as one of the TRIPS-plus provisions that most affects access to medicines because such measures generate delays in the entry of generic, and thereby cheaper, products;
  • A major concern in this area, however, has been the focus on air transport, which only accounts for a negligible share of GHG emissions when compared with those generated by agricultural products, often providing misleading information to consumers;
  • Finally, developing countries choosing not to use the flexibilities would use a coefficient of
  • Subscription to the Patent Cooperation Treaty and the Patent Law Treaty has also become an obligation in recent models;
  • This means they are not defined as a percentage of import prices but, for example, as a specific amount per tonne.

This reflects the interest of the Swiss government in expanding the use of geographical indications to certain services as a brand of quality. In the case of the Swiss financial services, for example, this extension is applied both as a means of protection against unfair competition and as an enforcement measure.

International trade tensions: a worry for Asia

They include stronger corrective measures, inspection rights and border measures. This strengthening of enforcement measures follows previous trends in US and EU FTAs, thus limiting application to counterfeiting and piracy. This section constitutes without doubt a landmark towards generating coherence and balance between intellectual property agreements and the Convention on Biological Diversity CBD.

It recognises the importance of existing obligations under the CBD, basic principles such as sovereign rights over genetic resources, as well as access and benefit-sharing rights as reflected in national and international law. It also recognises the contributions of indigenous peoples and their knowledge to economic and social development. More specifically, the parties to the agreement shall require, according to their national law, that patent applications contain a declaration of the origin or source of genetic resources to which the inventor has had access.

Mentions of civil and administrative enforcement measures are also incorporated. For the first time it includes precise measures backed by enforcement provisions in an FTA.

Beyond the unclear economic value of such provisions, the precedent they create could be used as a reference in other bilateral and multilateral negotiations addressing biodiversity and intellectual property issues.

  1. Lowering trade barriers might, in theory, make them more affordable to consumers and bring down climate mitigation costs overall. On industrial goods, the agreements largely phase out tariffs, albeit with a longer adjustment period for developing countries.
  2. Concerns centre on the economic and social implications of the real or perceived costs of relocating industries to countries without such obligations.
  3. She has argued that although China removes such policies when challenged at the WTO, by that time it usually achieves whatever it wanted to from implementing those industrial policies. In this respect the debate on food miles needs to be expanded not just to include road and sea transport but also to look at the total carbon emissions of products throughout the supply chain, using life-cycle analysis, and to evaluate how to reduce emissions at each stage of the chain to achieve low carbon ratings.

Climate change and trade 59The global effort to address climate change requires a fundamental transformation of our economies and the ways in which we use energy. Internalising the cost of carbon will have deep-seated effects on what we produce, how we produce it and on what we trade.

In the aftermath of the Conference of the parties to the United Nations Framework Convention on Climate Change UNFCCC in Copenhagen in December trade and trade-related issues have emerged as a key element of the trade-offs required by climate change considerations. This chapter provides information on the most salient and pressing policy linkages between trade and climate change.

While the Swiss AP does not aim to address climate change as such, it indirectly contributes to this objective through the shift it promotes from intensive agriculture to integrated or organic farming and limited chemical treatment of plants.

It also gives priority to exports manufactured using sustainable methods and in particular organic certification and good agricultural practices. The food miles debate 62Action to address climate change in industrialised countries is leading to a range of standards and certification schemes.

Global Economic Prospects

These schemes seek to measure and account for the carbon content of goods that are produced and traded internationally. Many of the emerging standards and certification schemes are private sector and consumer-driven initiatives, making it challenging for public policy to fully address their trade and development implications. In Switzerland initiated its first carbon labelling scheme for products sold in the retail chain Migros. A major concern in this area, however, has been the focus on air transport, which only accounts for a negligible share of GHG emissions when compared with those generated by agricultural products, often providing misleading information to consumers.

In this respect the debate on food miles needs to be expanded not just to include road and sea transport but also to look at the total carbon emissions of products throughout the supply chain, using life-cycle analysis, and to evaluate how to reduce emissions at each stage of the chain to achieve low carbon ratings. While labelling schemes provide opportunities to access niche markets, many producers are concerned that such standards may become a vehicle for green protectionism.

Export Impact For Good

In Switzerland, for example, the Bio Suisse label excludes organic air-freighted products. This provision directly affects fruit and vegetable producers in East Africa that would otherwise qualify as organic producers.

The liberalisation of environmental goods and services 65Trade is an important channel for the diffusion of climate mitigation technologies and goods.

Lowering trade barriers might, in theory, make them more affordable to consumers and bring down climate mitigation costs overall. Lowering tariffs on climate mitigation goods can also contribute to UNFCCC technology transfer mandates by facilitating access to these goods. However, there is no universally accepted definition of these.

  • Implications for Asia For now, the global trade environment will be much less buoyant and much more uncertain than it was in the past;
  • Overall the liberalisation of those goods would likely bring benefits mainly to developed countries and a few middle-income developing countries, such as China, Singapore, Hong Kong, Mexico and India, but may not lead to significant environmental benefits in the LDCs that lack purchasing power;
  • In this respect the debate on food miles needs to be expanded not just to include road and sea transport but also to look at the total carbon emissions of products throughout the supply chain, using life-cycle analysis, and to evaluate how to reduce emissions at each stage of the chain to achieve low carbon ratings.

Complexities also exist with regard to their classification for customs purposes, making selective liberalisation of climate-friendly goods challenging. Overall the liberalisation of those goods would likely bring benefits mainly to developed countries and a few middle-income developing countries, such as China, Singapore, Hong Kong, Mexico and India, but may not lead to an overview of the world trade outlook for 2002 environmental benefits in the LDCs that lack purchasing power.

As part of the Friends of Environmental Goods group at the WTO, Switzerland supports the establishment of a list of environmental goods for which tariffs would be removed.

Jointly with Canada, the EU, Japan, Korea, New Zealand, Norway, Chinese Taipei and the US, it has submitted a list of environmental goods with categories such as renewable energy products, solid waste management and heat and energy management products. Furthermore, it appears that tariff reduction might only play a marginal role in enhancing trade in the list of goods, with other factors such as environmental regulations, feed-in tariffs and the general level of industrialisation playing a much greater role as drivers of trade in this area Jha Intellectual property rights and transfer of technology 67The UNFCCC and the Kyoto Protocol require parties to promote and cooperate in the development and diffusion of technology, including transfer of technologies that control, reduce or prevent GHG emissions.

Some developing countries are concerned that strict intellectual property rules might prevent the effective transfer of climate-friendly technologies. Initial research found that the impact of patents on access to solar, wind and biofuel technologies in developing countries would not be significant, largely because the level of concentration in those industries is still limited, in contrast with the pharmaceutical industry where patents play a much greater role Barton More research is needed, however, to fully understand the role of intellectual property rights, particularly on licensing practices which are likely to play a more important role than patents in the diffusion of climate-friendly technologies.

Carbon leakage and border tax adjustments 69Countries set to take on mandatory climate mitigation obligations worry that doing so may affect the international competitiveness of their energy-intensive and carbon-intensive industries.

Concerns centre on the economic and social implications of the real or perceived costs of relocating industries to countries without such obligations. In addition, such relocation may lead to higher overall carbon emissions from the same volume of production of goods in countries with less efficient processes.

  • Of course a WTO trade deal would provide an example of multilateral economic cooperation at a time when such cooperation is badly needed for a future global climate agreement;
  • She has argued that although China removes such policies when challenged at the WTO, by that time it usually achieves whatever it wanted to from implementing those industrial policies;
  • While labelling schemes provide opportunities to access niche markets, many producers are concerned that such standards may become a vehicle for green protectionism;
  • China has outmaneuvered the best dissertation chapter editor website for school United States in recent years, particularly with regard to trade, cheap application letter proofreading site for school says President-Elect Donald J;
  • Similar talks with Thailand started but are currently on hold;
  • The recent establishment of a WTO task force and monitoring system to deal with the trade dimension of financial crisis provides an interesting precedent in this respect, as a creative way through which new issues can be addressed outside of the ongoing negotiating mandate.

Draft legislation in the US contains provisions for carbon barriers targeting emerging economies among non-Annex I countries that are currently not obliged to make emissions reductions. In Europe border measures were left out of draft climate and energy legislation at least at the time of writing in October ; however, they are very much part of the debate.

French President Nicolas Sarkozy has expressed support for the idea of tariffs on imports from countries that do not place a cap on carbon emissions. Carbon-related border measures are controversial; their legality under the WTO has also been questioned. Recent studies have pointed to the potential ineffectiveness of unilateral trade measures to encourage action on climate change Houser, Bradley, and Childs Of course a WTO trade deal would provide an example of multilateral economic cooperation at a time when such cooperation is badly needed for a future global climate agreement.

Locking in autonomous liberalisation reforms would also be a useful bulwark against backsliding, 15 but it does not excite businesses or developing countries looking for new export opportunities.

Worse still, if these issues cannot find a home at the multilateral level, they will be addressed through bilateral or unilateral measures, as illustrated by the debate surrounding border tax adjustment in the US.

The system can probably not afford to wait for the next round of trade negotiations to start discussing possible ways to respond to pressing trade concerns emerging from the climate change debate, the food crisis or the proliferation of FTAs. The recent establishment of a WTO task force and monitoring system to deal with the trade dimension of financial crisis provides an interesting precedent in this respect, as a creative way through which new issues can be addressed outside of the ongoing negotiating mandate.

In the same line the holding of a largely overdue formal ministerial conference to reflect on the future of the multilateral trading system and discuss a common vision for the WTO beyond ongoing negotiations could provide a useful venue to address the new challenges confronting the global economy.

Press Release, 23 April. Swiss certification scheme for biofuels may prove controversial. Trade Working Paper 5. Leveling the Carbon Playing Field: Trade policy in a time of crisis: Suggestions for developing countries.

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Revised Draft Modalities for Agriculture. World Tariff Profiles Alternatively, they would be allowed to exempt 6. Finally, developing countries choosing not to use the flexibilities would use a coefficient of But three tariff quotas on wines were merged inbringing the number down to When there is no country that fulfils this requirement the three developing countries with the highest concentration are identified.

The SACU agreement only contains general provisions on intellectual property, due to strong resistance from both southern African governments and civil society.