ISSUES & POLICIES OF WTO In respect to developing & least developed countries

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ISSUES & POLICIES
OF WTO
In respect to developing & least developed
countries
NAME : ANITA KUMARI
ROLL NO. : 12MBA05568
SEM : 4th
Sem
PAPER :

2. World Trade Organization

3. WORLD TRADE ORGANIZATION
INTRODUCTION
The World Trade Organization (WTO) deals with the global rules of trade between nations. Its main function is to
ensure that trade flows as smoothly, predictably and freely as possible.
World Trade Organization (WTO), is an organization for trade opening. It is a forum for governments to negotiate
trade agreements. It is a place for them to settle trade disputes. It operates a system of trade rules. Essentially,
the WTO is a place where member governments try to sort out the trade problems they face with each other.
Location: Geneva, Switzerland
Established: 1 January 1995
Created by: Uruguay Round negotiations (1986-94)
Membership: 159 countries as on 2 March 2013
Budget: 196 million Swiss francs for 2011
Secretariat staff: 640
Head: Roberto Azevêdo (Director-General)
Functions:
Administering WTO trade agreements
Forum for trade negotiations
Handling trade disputes
Monitoring national trade policies
Technical assistance and training for developing countries
Cooperation with other international organizations
10 things WTO can do
Cut living costs and raises living standards
Settle disputes and reduce trade tensions
Stimulate economic growth and employment
Cut the cost of doing business internationally
Encourage good governance
Help countries develop
Give the weak a stronger voice
Support the environment and health

4. Contribute to peace and stability
Be effective without hitting the headlines
TRADE TOPICS
Developing countries comprise a majority of the WTO membership. They are grouped as “developing countries”
and “least developed countries”.
Developing country
There are no WTO definitions of “developed” and “developing” countries. Members announce for themselves
whether they are “developed” or “developing” countries. However, other members can challenge the decision of
a member to make use of provisions available to developing countries.
Advantages of “developing country”
Developing country status in the WTO brings certain rights. There are for example provisions in some
WTO agreements which provide developing countries with longer transition periods before they are
required to fully implement the agreement and developing countries can receive technical assistance.
A WTO member announces itself as a developing country does not automatically mean that it will benefit
from the unilateral preference schemes of some of the developed country members such as the
Generalized System of Preferences (GSP). In practice, it is the preference giving country which decides the
list of developing countries that will benefit from the preferences
Least-developed countries
Least-developed countries (LDCs) are the poorest members of the world community. They comprise about 12 per
cent of the world's population but account for less than 2 per cent of world GDP and about 1 per cent of global
trade in goods. Their participation in global trade in services is even less.
Among the 49 LDCs designated by the United Nations, 34 have become WTO members while another nine are
negotiating to join the WTO. Some LDCs are:
Angola, Bangladesh, Madagascar, Mali, Myanmar, Nepal, Uganda, Zambia
AdvantagesLeast-developed countries
WTO members recognize that LDCs need special treatment and assistance to achieve their development
objectives.
WTO agreements include provisions aimed at increasing LDCs’ trade opportunities and allowing LDCs
flexibility in implementing WTO rules.
The WTO together with other international agencies has also established special programs to support
LDCs in enhancing their participation in the global trading system.

5. WTO POLICIES & ISSUES
TRADE AND DEVELOPMENT
The WTO agreements recognize the link between trade
and development and contain special provisions for
developing countries.
At the Doha Ministerial Conference, in November 2001,
Trade Ministers launched the Doha Development Agenda.
With this Agenda, WTO members have placed
development issues and the interests of developing
countries.
In the Hong Kong Ministerial Declaration of 2005,
members emphasized the central importance of
development to the Doha Round. At the same time, the Aid for Trade Initiative was launched, designed to help
developing countries build supply-side capacity in order to expand trade.
At the Bali Ministerial Conference in December 2013, ministers adopted a number of decisions under the
developmental pillar, including those aimed at boosting least-developed countries' trade.
Special and differential treatment provisions
Several provisions in the WTO agreements relate specifically to developing and least-developed countries (LDCs).
Certain of these provisions are referred to as “special and differential treatment” provisions .The latest WTO
document setting out the implementation of these S&D provisions is in WT/COMTD/W/196.
Ministers in Doha, in the Decision on Implementation-Related Issues and Concerns mandated the Committee on
Trade and Development to identify those special and differential provisions which are already mandatory, and to
consider the implications of making mandatory those which are currently non-binding. The Committee was also
asked to consider ways in which developing countries, particularly the LDCs, may be assisted to make best use of
special and differential treatment.
The Bali Ministerial Conference in December 2013 established a mechanism to review and analyse the
implementation of special and differential treatment provisions. The mechanism will provide members an
opportunity to analyse and review all aspects of implementation of S&D provisions contained in multilateral WTO
agreements, Ministerial and General Council decisions - with the possibility to make recommendations to the
relevant WTO bodies.

6. BALI MINISTERIAL
CONFERENCE IN DECEMBER 2013
BALI PACKAGE
Type : Trade agreements
Context : Doha Development Round of the World Trade
Organization
Signed : 7 December 2013
Location : Nusa Dua, Bali, Indonesia
Introduction
The Bali Package is a trade agreement resulting from the Ninth Ministerial Conference of the World Trade
Organization in Bali, Indonesia on 3–7 December 2013. It is aimed at lowering global trade barriers and is the first
agreement reached through the WTO that is approved by all its members.The package forms part of the Doha
Development Round, which started in 2001.
Provisions
The package includes provisions for lowering import tariffs and agricultural subsidies, with the intention of
making it easier for developing countries to trade with the developed world in global markets. Developed
countries would abolish hard import quotas on agricultural products from the developing world and instead
would only be allowed to charge tariffs on amount of agricultural imports exceeding specific limits. Another
important target is reforming customs bureaucracies and formalities to facilitate trade.

7. Developing countries in the WTO

8. DEVELOPING COUNTRIES IN THE WTO
Over three quarters of WTO members are developing or least-developed countries. All WTO agreements contain
special provision for them, including longer time periods to implement agreements and commitments, measures
to increase their trading opportunities and support to help them build the infrastructure for WTO work, handle
disputes, and implement technical standards.
A WTO committee on trade and development, assisted by a sub-committee, looks at developing countries’ special
needs. Its responsibility includes implementation of the agreements, technical cooperation, and the increased
participation of developing countries in the global trading system
TRADE AND DEVELOPMENT
The WTO agreements recognize the link between trade and development and contain special provisions for
developing countries. More than two-thirds of WTO members are classified as developing countries.
At the Doha Ministerial Conference, in November 2001, Trade Ministers launched the Doha Development Agenda.
With this Agenda, WTO members have placed development issues and the interests of developing countries at
the heart of the WTO’s work.
At the Bali Ministerial Conference in December 2013, ministers adopted a number of decisions under the
developmental pillar, including those aimed at boosting least-developed countries' trade.
Work on special and differential provisions
The WTO Agreements contain special provisions which give developing countries special rights and which give
developed countries the possibility to treat developing countries more favourably than other WTO Members.
These special provisions include, for example, longer time periods for implementing Agreements and
commitments or measures to increase trading opportunities for developing countries. These provisions are
referred to as “special and differential treatment” provisions.
The special provisions include:
longer time periods for implementing Agreements and commitments,
measures to increase trading opportunities for these countries,
provisions requiring all WTO members to safeguard the trade interests of developing countries,
support to help developing countries build the infrastructure for WTO work, handle disputes, and
implement technical standards, and
The Bali Ministerial Conference in December 2013 established a mechanism to review and analyse the
implementation of special and differential treatment provisions. The mechanism will provide members an
opportunity to analyse and review all aspects of implementation of S&D provisions contained in multilateral WTO
agreements, Ministerial and General Council decisions - with the possibility to make recommendations to the
relevant WTO bodies.
Enabling Clause for developing countries
The Enabling Clause officially called the “Decision on Differential and More Favourable Treatment, Reciprocity
and Fuller Participation of Developing Countries”.

9. The Enabling Clause is the WTO legal basis for the Generalized System of Preferences (GSP). Under the GSP,
developed countries offer non-reciprocal preferential treatment (such as zero or low duties on imports) to
products originating in developing countries. Preference-giving countries unilaterally determine which countries
and which products are included in their schemes.
The Enabling Clause is also the legal basis for regional arrangements among developing countries and for the
Global System of Trade Preferences (GSTP), under which a number of developing countries exchange trade
concessions among themselves.
Technical assistance and training
The WTO organizes around 100 technical cooperation missions to developing countries annually. It holds on
average three trade policy courses each year in Geneva for government officials. Regional seminars are held
regularly in all regions of the world with a special emphasis on African countries. Training courses are also
organized in Geneva for officials from countries in transition from central planning to market economies.
The WTO set up reference centres in over 100 trade ministries and regional organizations in capitals of
developing countries, providing computers and internet access to enable ministry officials to keep abreast of
events in the WTO in Geneva through online access to the WTO’s immense database of official documents and
other material. Efforts are also being made to help countries that do not have permanent representatives in
Geneva.
WTO & INDIA
India has had its way on the Bali Package at the Ninth Ministerial of the
World Trade Organisation here. The draft Ministerial Decision takes care
of India’s position on both food security and trade facilitation. As they do
so, it would be the first major decision of the century on global trade
after the WTO came into being. The draft proposes an interim
mechanism to safeguard minimum support prices to farmers against
WTO caps till a permanent solution is adopted.
WTO Director-General (DG) Roberto Azevedo and Ministerial Chair and
Indonesian Trade Minister Gita Wirjawan held marathon meetings with
U.S. Trade Representative Michael Froman and Mr. Sharma.
“India’s Ambassador and Permanent Representative to the WTO in Geneva
JayantDasgupta handed over to the DG, the Bali text India had prepared. On Friday
morning, the DG put up India’s proposed Bali text to the heads of delegations after a
one-on-one meeting with Mr.Froman. He assured the heads of delegates that no members would be forced to adopt the final text of
the Bali deal now being worked out, said official sources. “
--- THE HINDU
A range of gains for Delhi at Ministerial
Food Security Law may push India’s minimum support prices above WTO limits, but interim mechanism
provides safeguards till WTO rules are corrected.
Agreement on Trade Facilitation could boost India’s exports.
India spearheads first agreement in the ninthMinisterial held after the Doha Round.
On December 4, 2013, Union Minister of
Commerce and Industry Anand Sharma
with WTO DG Roberto Azevedo at the 9th
Ministerial Conference in Bali, Indonesia.

10. India gains global leadership by getting a crucial poor-rich country imbalance corrected on a multilateral
forum.
Support subsidies to poor farmers across all developing countries get safeguards against WTO rules
Least-developed countries in the WTO

11. LEAST-DEVELOPED COUNTRIES IN THE WTO
Least-developed countries (LDCs) are the poorest members of the world community.
The WTO Bali Ministerial Conference in December 2013 adopted several decisions in favour of LDCs, to further
assist their better integration into the multilateral trading system.
DEVELOPMENT AND LDC ISSUES
Multilateral guidelines on preferential rules of origin to facilitate market access for LDC products;
A decision in the area of trade in services initiating a process to help LDCs secure preferential market
access for their services and service suppliers
Preferential Rules of Origin for Least-Developed Countries - simplified rules for identifying origin and
qualifying for preferential treatment with importing countries.
Operationalization of the Waiver Concerning Preferential Treatment to Services and Service Suppliers of
Least-Developed Countries - allows preferential treatment to be given to LDCs for 15 years from date of
agreement adoption.
Duty-Free and Quota-Free (DFQF) Market Access for Least-Developed Countries to improve their existing
DFQF coverage
Monitoring Mechanism on Special and Differential Treatment - consisting of meetings and other methods
for monitoring special treatment given to developing countries.
Duty-free and quota-free market access for LDCs
At the December 2013 Bali Conference, Ministers will consider a draft decision that would further encourage
developed-country members to improve their existing DFQF coverage for products originating from LDCs, so as to
provide greater market access to LDCs. The text also encourages developing-country members, declaring
themselves in a position to do so, to provide DFQF market access for products originating from LDCs, or to
improve their existing DFQF coverage for such products. The draft decision instructs members to report on the
implementation of this decision at the next WTO Ministerial Conference in 2015.
Draft decision on preferential rules of origin for LDCs
A draft decision on preferential rules of origin applicable to imports from least-developed countries is being
submitted to Ministers at the WTO Ministerial Conference in Bali for its adoption.
The draft decision contains a set of multilateral guidelines for the rules of origin that WTO members apply to their
non-reciprocal preference schemes for LDCs. For the first time, governments will have a set of multilaterally
agreed guidelines, which should help make it easier for LDC exports to qualify for preferential market access. The
draft decision recognizes that each country granting trade preferences to LDCs has its own method of
determining rules of origin, and it invites members to draw upon the elements contained in the decision when
they develop or build on their individual rules of origin arrangements applicable for LDCs.
The average non-weighted tariff applied by major trading partners to LDCs exports has fallen from 10.6% in 1997
to 6.9% in the first quarter of 2001.
For example:

12. Canada, effective 1 September 2000, added a further 570 tariff lines to the list of goods from LDCs
eligible for duty-free treatment. About 90% of all LDC imports will now receive duty-free treatment;
New Zealand, since 1 July 2001, offers duty-free and quota-free access to all imports from LDCs
The European Union, Norway and Switzerland provide duty-free, quota-free market access for all LDC
exports (except arms). A transition period is in place for a few specific products.
Japan in December 2000, announced its “99%-initiative on Industrial Tariffs”. Following
implementation, in April 2001, the coverage of duty and quota-free treatment for LDCs industrial
product exports increased from 94 to 99% and includes textile and clothing exported from LDCs;
Hungary, the Czech Republic and the Slovak Republic provide duty free and quota free access to all
imports from LDCs.
Egypt notified tariff reductions ranging from 10% to 20% of existing applied duties for 77 products of
export interest to LDCs, and provides duty free access for about 50 products. In addition, Egypt
bound customs duties, with a 10% reduction for industrial products imported from LDCs.
Streamlined accession for the poorest countries
A decision to facilitate and accelerate the accession process for LDCs was formally approved by WTO members at
the General Council on 25 July 2012. The decision strengthens the LDC accession guidelines adopted by members
in 2002. The 2012 strengthened guidelines introduce precise flexibilities and parameters to help LDCs accede to
the WTO at a pace and in a manner consistent with their development, trade and financial needs. The decision
contains five key elements:
Benchmarks on goods
Benchmarks on services
Transparency in accession negotiations
Special and differential treatment and transition periods
Technical assistance.
WTO members have taken a host of initiatives to help LDCs participate more fully at the WTO. These include:
Expansion of the WTO training and policy courses;
Establishment of WTO reference centres connecting LDCs’ capitals to WTO sources of information
through the Internet;
LDCs' structure of commercial services by sector, 2012

13. Establishment of a new programme to fund interns within country missions in Geneva;
Facilitating the participation of LDCs at WTO Ministerial — for example, financing LDC trade ministers’
travel and hotel expenses.
Conclusion

14. CONCLUSION
Much solid research has been done on the applied economics and macro political economy of trade policies in
developing and less developed countries, but very little has materialized on the micro political economy of the
trade policy process in these countries. This should be addressed urgently so that we can understand better why
governments do not make better use of different tracks of trade policy. This would be the first step to offering
advice on how the decision making process can be improved.
Though the issues & policies of WTO, comes with criticism also.The recently held World Trade Organisation
(WTO) talks in Bali, non-government organisation Gene Campaign on Saturday said the outcome of the meeting
was damaging for India. "The tragedy of the Bali outcome is that we have fallen into a trap. We have badly been
taken for a ride in Bali," SumanSahai, chairperson, Gene Campaign, said. Gene Campaign is dedicated to
protecting genetic resources, farmers' rights and food and livelihood security.
India's Food Security Act entitles 82 crore people to 5 kg of foodgrains per person a month at Rs 1-3 per kg. The
country needs 62 million tonnes foodgrains a year to implement the law."Tomorrow if you want to change your
food security act, you have to take permission from the WTO...It has been a disastrous negotiations from that
perspective," she added.
"Facilitating trade means gaining more market access. Developed countries like the US would gain more in this. It will lead to
increase in imports of agriculture products which would damage our farmers," Sahai said.
(As per an interview given to The Hindu)

15. BIBLIOGRAPHY
https://mc9.wto.org/system/files/documents/w10_1.pdf
http://www.theguardian.com/global-development/poverty-matters/2013/dec/06/wto-agreement-bali-helped-
developing-countries-india
http://www.mission-indonesia.org/admin/upload/WTO.jpg
http://commerce.nic.in/trade/international_trade_tig_agriculture_wtoaoa.asp
http://commerce.nic.in/trade/international_trade_tig_agriculture_stateofplay_Doha_round.asp
http://commerce.nic.in/trade/international_trade_enviro_te.asp
http://wto.org/english/thewto_e/minist_e/mc9_e/brief_ldc_e.htm