Lecture showed at the Plakhannov Russian Academy of Economics, April 2nd 2018, Moscow (Russia).

1. Dr. Javier EchaideDr. Javier Echaide
Ambrosio Gioja Inst. of Law and SocialAmbrosio Gioja Inst. of Law and Social
Studies (UBA, Argentina)Studies (UBA, Argentina)
Plakhannov Russian Academy of Economics,Plakhannov Russian Academy of Economics,
April 2nd 2018, Moscow (Russia)April 2nd 2018, Moscow (Russia)
WTOWTO and theand the
Doha RoundDoha Round

2. D (demand) O (offer)
P in the world
Q2Q1
P
(price)
Q
(quantity)Market portion covered by
national production
(no tariff apply)
Market portion covered
by imports
(no tariff apply)
Consumer benefitConsumer benefit
Production benefitProduction benefit
The theory of free trade

3. D (demand) O (offer)
P in the world
Q2Q1
P
(price)
Q
(quantity)Market portion covered by
national production
(no tariff apply)
Market portion covered
by imports
(no tariff apply)
Consumer benefitConsumer benefit
Production benefitProduction benefit
The theory of free trade

4. D O
P with tariff
Imports (with tariff apply)
Market portion covered by
imports (without tariff)
TariffTariff
Q4Q3 Q2Q1
Tariffamount
P
QNational production (with tariff apply
Market portion covered by
national production
(without tariff)
Consumer benefitConsumer benefit
Product benefitProduct benefit
P in the world
The theory of free trade

5. WTO membershipWTO membership
164 countries since last admission (july 2016)164 countries since last admission (july 2016)
Member states
European Union
Observe states
No member states
20122012
19951995
19951995
19951995
19951995
20012001
19951995
19951995
19951995

6. ¿What is the¿What is the
multilateral trading system about?multilateral trading system about?
► It´s an multilateral negotiation to ruleIt´s an multilateral negotiation to rule
the commercial flow at internationalthe commercial flow at international
level.level.
► It has US$ 200 millions per year ofIt has US$ 200 millions per year of
budget (2015).budget (2015).
► Involves almost every counties in theInvolves almost every counties in the
world (164 at 2016).world (164 at 2016).
► It has the goal to be aIt has the goal to be a permanentpermanent
forumforum forfor progressive liberalizationprogressive liberalization ofof
international trade.international trade.
► It has anIt has an international dispute systeminternational dispute system
about trade.about trade.

7. Main principles of WTOMain principles of WTO
and free tradeand free trade
►No discriminationNo discrimination (Most Favored Nation clause and(Most Favored Nation clause and
National Treatment clause)National Treatment clause)
►Market accessMarket access (trade and financial liberalization and(trade and financial liberalization and
openness)openness)
►TransparencyTransparency (publicity of all products lists for each(publicity of all products lists for each
country)country)
►Fair competitionFair competition (elimination of measures that(elimination of measures that
causes trade distortion)causes trade distortion)
►Trade liberalization progressivityTrade liberalization progressivity (“no going(“no going
back clause”)back clause”)
►Pacific settlement of trade disputesPacific settlement of trade disputes

8. WTO StructureWTO Structure
General Counsel
Trade and Goods
Counsel
Trade and Services
Counsel
Intellectual Property
Counsel
Working
Comities
Working
Comities
other Working
Comities
other Working
Comities
Ministerial
Conference
General
Director
Secretary

9. Year Round City Memb
ers
Central issues
1947 Genève 23 Tariffs.
1949 Annecy 13 Tariffs.
1951 Torquay 39 Tariffs.
1956 Genève 26 Tariffs.
1961 Dillon Genève 26 Tariffs.
1964-67 Kennedy Genève 62 Tariffs and antidumping mesures.
1973-79 Tokyo Genève 99 Tariffs y law framework (including false trademarks code).
1986-94 Uruguay Punta del Este 105 Tariffs and creation of WTO.
1995 -------- Singapur 109 Trade facilitation, investments, government procurement,
competition policies (“Singapur Issues”).
1996 -------- Genève 120 “Singapur Issues”.
2001
Doha
Doha 142 Market access, services.
2003 Cancún 148 Agriculture, intellectual property, services.
2005 Hong Kong 150 Agriculture, NAMA, services, intellectual property.
2009 Genève 153 “Housekeeping ministerial.”
2011 Genève 155 “Green Economy”, market access, services.
2013 Bali 161 Trade facilitation, agriculture, cotton (“Bali package”).
2015 Nairobi 162 Agriculture, cotton, least developed countries issues (PMA)
(“Nairobi package”).
2017 Buenos Aires 163 E-Commerce, fisheries subsidies, domestic regulation, services,
investment facilitation, domestic support.
1999 Millennial Round Seattle 120 (cannot be open).

10. ¿Who uses the WTO pannels?¿Who uses the WTO pannels?
Cases per countryCases per country::
► USA: 169 (80-89)USA: 169 (80-89)
► EU: 123 (70-53)EU: 123 (70-53)
► Canada: 39 (26-13)Canada: 39 (26-13)
► Brazil: 35 (22-13)Brazil: 35 (22-13)
► India: 33 (16-17)India: 33 (16-17)
► Japan: 26 (12-14)Japan: 26 (12-14)
► Mexico: 25 (12-13)Mexico: 25 (12-13)
► ArgentinaArgentina: 25 (9-16): 25 (9-16)
► Chile: 20 (10-10)Chile: 20 (10-10)
► Other countries: 193Other countries: 193
European Union
USA
Argentina
Brazil
Japan
Canada
India
others
Mexico
Chile

11. ¿Did the GATT¿Did the GATT
work?work?
a) New issues added toa) New issues added to
international free tradeinternational free trade
sphiere.sphiere.
b) Reduction of barriers tob) Reduction of barriers to
free trade on goods.free trade on goods.

12. ► Deepening of tradeDeepening of trade
liberalizationliberalization
► Take account theTake account the
needs of emergingneeds of emerging
countriescountries
► More members insideMore members inside
WTOWTO
► Include new issues toInclude new issues to
international tradeinternational trade
negotiationsnegotiations
““Doha Round” goalsDoha Round” goals
 At the end of 2001 US fast trackAt the end of 2001 US fast track
in a militarized capitalismin a militarized capitalism
context against terrorism and acontext against terrorism and a
new alienment for tradenew alienment for trade
liberalization arround the worldliberalization arround the world
were the general context towere the general context to
lunch a new round in WTO.lunch a new round in WTO.
 New threats like new socialNew threats like new social
movements –like in Seattle inmovements –like in Seattle in
1999- forced to choose the1999- forced to choose the
capital of Qatar as the host forcapital of Qatar as the host for
lunching the new round: thelunching the new round: the
Development Doha Round.Development Doha Round.

13. Most important issuesMost important issues todaytoday
► AgricultureAgriculture
► Non Agricultural Market Access (NAMA)Non Agricultural Market Access (NAMA)
► Trade onTrade on ServicesServices
► Some issues related to trade andSome issues related to trade and IntellectualIntellectual
PropertyProperty
► E-commerceE-commerce
► Investment facilitationInvestment facilitation
► Domestic regulationDomestic regulation

14. WTO talksWTO talks
► With the launch of the Doha Round, expectations were revitalized, especially by the "pro-With the launch of the Doha Round, expectations were revitalized, especially by the "pro-
development" tinge that seemed to be given to the negotiations.development" tinge that seemed to be given to the negotiations.
► The Round was due to end byThe Round was due to end by mid-2007mid-2007, when the US fast track was due to expire. But, when the US fast track was due to expire. But
thisthis was not achievedwas not achieved..
► The main conflict was the reduction of subsidies inThe main conflict was the reduction of subsidies in Agriculture since 2003Agriculture since 2003. The PDs had. The PDs had
promised liberalizations for 2001, but they have not been fulfilled.promised liberalizations for 2001, but they have not been fulfilled.
► The PEDs -highly competitive in agriculture- preferred to wait for the reductions beforeThe PEDs -highly competitive in agriculture- preferred to wait for the reductions before
liberalizing other areas such as Services and industrial goods (NAMA). Between 2006liberalizing other areas such as Services and industrial goods (NAMA). Between 2006
and 2009, NAMA started to negotiate negotiations.and 2009, NAMA started to negotiate negotiations.
► In Hong Kong (2005), the elimination of agricultural export subsidies was promised only inIn Hong Kong (2005), the elimination of agricultural export subsidies was promised only in
2013.2013. Nor was it fulfilledNor was it fulfilled..
► But the developing countries demanded real openings, since agricultural export subsidiesBut the developing countries demanded real openings, since agricultural export subsidies
were only a minimum part of the domestic support of the US and the EU to their sectors.were only a minimum part of the domestic support of the US and the EU to their sectors.
Negotiations were suspended on two occasions: July 2006 and 2008Negotiations were suspended on two occasions: July 2006 and 2008..
► For December 2009 a Ministerial was called in Geneva, but without a mandate toFor December 2009 a Ministerial was called in Geneva, but without a mandate to
negotiate. The Ministerial would be a "housekeeping” of the WTO, without achievementsnegotiate. The Ministerial would be a "housekeeping” of the WTO, without achievements
andand without any negotiationswithout any negotiations..
► There were no results and conversations passed at the technical level since then, todayThere were no results and conversations passed at the technical level since then, today
they are virtually stagnant, as since 2004.they are virtually stagnant, as since 2004.
► New changes are tried: a new Brazilian General Director (Roberto Azevedo, in 2013) andNew changes are tried: a new Brazilian General Director (Roberto Azevedo, in 2013) and
the inclusion of new topics to open a more dynamic agenda: e-commerce andthe inclusion of new topics to open a more dynamic agenda: e-commerce and
investments, for example.investments, for example.
► After the failure of the XI Ministerial in Buenos Aires in December 2017,After the failure of the XI Ministerial in Buenos Aires in December 2017, WTO has beenWTO has been
virtually paralyzedvirtually paralyzed..

15. The WTO “Mini-Ministerials”The WTO “Mini-Ministerials”
 TTo "unlock" the failed negotiations in Cancuno "unlock" the failed negotiations in Cancun
(2003), in June 2005, a small group was called to(2003), in June 2005, a small group was called to
form the "5 interested parties" to reach anform the "5 interested parties" to reach an
agreement for the 6th Ministerial in Hong Kong.agreement for the 6th Ministerial in Hong Kong.
 Apart from this, there are always "Apart from this, there are always "green roomgreen room""
meetings, secret, among a very small number ofmeetings, secret, among a very small number of
countries and not among the 164 members. Therecountries and not among the 164 members. There
the main decisions are made.the main decisions are made.
 In 2008 China joined the group to form a "G7", butIn 2008 China joined the group to form a "G7", but
failed to move forward with an agreement. Thisfailed to move forward with an agreement. This
lasted until negotiations were suspended - for thelasted until negotiations were suspended - for the
second time - in July 2008.second time - in July 2008.
 In 2009 there was a Ministerial "without papers"In 2009 there was a Ministerial "without papers"
and nothing to negotiate... This was only unlockedand nothing to negotiate... This was only unlocked
in 2011.in 2011.
 So, untill now, the six biggest players on WTOSo, untill now, the six biggest players on WTO
negotiations are USA, EU, Japan, Australianegotiations are USA, EU, Japan, Australia
(mosty), Brazil, India and China.(mosty), Brazil, India and China.

16. ¿What are the most important¿What are the most important
issues on WTO negotiationsissues on WTO negotiations
today?today?

17. AgricultureAgriculture
on WTOon WTO
Cancun
(2003)
Hong Kong
(2005)

18. AgricultureAgriculture
G-20G-20
G-33G-33
The “The “QuadQuad””
G-90G-90
Leaded by Brazil, the G-20 reclaim
the liberalization of market access
to the PDs countries on agricultural
markets from their subsidies.

19. NAMANAMA
on WTOon WTO
NAMA:
“Deliver
everything...”
WTO
Hong Kong
(2005)

20. Coef. 10and
NONO exports taxes
Coef. between
10 y 15
Coef. 35 and
YESYES to exports
taxes
Coef. 35 and
YESYES exports
taxes
Supports
NAMA 11
Coef. between
19 y 23
Coef. 23
Most important countries envolved inMost important countries envolved in
this agendathis agenda
NAMA 11
Supports
NAMA 11

21. Average reduction in NAMA:Average reduction in NAMA:
ArgentineArgentine casecase
0
5
10
15
20
25
30
35
hoy coef. 15 coef. 35 coef. 19 coef. 23
cons
dif
aplic
Datos: CIOSL-ORIT
Gráficos: elaboración propia
Arancel
aplicado
Arancel
consolidado

22. 0
5
10
15
20
25
30
35
hoy coef.
35
coef.
23
0
5
10
15
20
25
30
35
hoy coef.
35
coef.
23
Textiles
(31.000 jobs)
Clothes
(22.000 jobs)
Caso Argentina
Datos: CIOSL-ORIT
Gráficos: elaboración propia
Pérdida de
aranceles reales
aplicados

23. 0
10
20
30
40
50
60
hoy coef.
35
coef.
23
0
5
10
15
20
25
30
35
40
45
50
hoy coef.
35
coef.
23
Furniture
(31.000 jobs) Paper
(17.000 jobs)
Caso Argentina
Datos: CIOSL-ORIT
Gráficos: elaboración propia

24. 0
5
10
15
20
25
30
35
hoy coef.
35
coef.
23
0
5
10
15
20
25
30
hoy coef.
35
coef.
23
Maquinaries
(43.000 jobs)
Wood
(21.000 jobs)
Caso Argentina
Datos: CIOSL-ORIT
Gráficos: elaboración propia

25. 0
5
10
15
20
25
hoy coef.
35
coef.
23
0
5
10
15
20
25
30
35
hoy coef.
35
coef.
23
Chemmicals
(55.000 jobs)
Leather
(7.700 jobs)
Caso Argentina
Datos: CIOSL-ORIT
Gráficos: elaboración propia

26. 0
5
10
15
20
25
hoy coef.
35
coef.
23
0
5
10
15
20
25
30
35
hoy coef.
35
coef.
23
Plastics
(34.000 jobs)
Minerals & metal
(25.000 jobs)
Caso Argentina
Datos: CIOSL-ORIT
Gráficos: elaboración propia

27. 0
5
10
15
20
25
30
35
hoy coef.
35
coef.
23
0
5
10
15
20
25
30
35
hoy coef.
35
coef.
23
Iron & steel
(16.000 jobs)
Books
(33.000 jobs)
Caso Argentina
Datos: CIOSL-ORIT
Gráficos: elaboración propia

28. 0
5
10
15
20
25
30
35
hoy coef.
35
coef.
23
0
5
10
15
20
25
30
35
hoy coef.
35
coef.
23
Shoes
(22.000 jobs)
Cars (parts)
(23.000 jobs)
Caso Argentina
Datos: CIOSL-ORIT
Gráficos: elaboración propia

29. In NAMAIn NAMA
NAMA 11NAMA 11
““Quad”Quad”
plusplus
In NAMA, the basic proposal was once again the "Quad"
and other PDs, who did not have clear opposing groups
regarding the liberalization of industrial goods. His
proposal was to reduce non-agricultural market tariffs by
between 60% and 70%.
The "NAMA 11" was a group formed after the
Ministerial of Hong Kong (2005) specifically to
present a defensive proposal against the
liberalization offered by the DPs. He claimed to
focus the NAMA negotiations on the interests of
the developing countries, contemplating lists of
"sensitive products" that were left out of
liberalization.

30. ServicesServices
on WTOon WTO
Hong Kong
(2005)

31. ServicesServices arround the worldarround the world
involves 60% of world´s population
and 60% of Jobs in the hole world
but only means 22% of international trade
(1.3 trillion US dollars)

32. ¿How trade on services is regulated?¿How trade on services is regulated?
Mode 1
Mode 1Mode 1: cross-border services
Mode 2Mode 2: consumer services in abroad
Mode 3Mode 3: services with commercial
presence
Mode 4Mode 4: services with presence
of natural persons
The WTO recognizes 4 modalities of service
provision. Each of them is regulated
separately.
The issue of services did not appear on the commercial agenda until the 1980s.
Therefore, there were more than 40 years of trade negotiations without services
trade talks under the GATT. Trade on services is a new issue for international trade
negotiations.
Mode 2
Mode 3
Mode 4

33. Mode 1Mode 1 – Cross-border services: It is the normal form of trade in goods and they
are regulated in the GATT. There is a clear geographical separation between
supplier and consumer. It does not involve the transfer of subjects. What crosses
the border is the service only, not the users. Such as: teleconferences, internetteleconferences, internet.
Mode 2Mode 2 – Consumer services in abroad: It is a service that can be
offered abroad, but that is not legally protected in the consumer country. Such as:
turism, educational courses, abortions, assisted fertilization, cloning of livingturism, educational courses, abortions, assisted fertilization, cloning of living
organismsorganisms.
Mode 3Mode 3 – Services with commercial presence: It implies a displacement of the
company in the foreign country, as it would be through the opening of branches.
Such as: financial sector, franchisingfinancial sector, franchising.
Mode 4Mode 4 – Services with presence of natural persons: It also implies a
displacement of the company, but it can also include people-brand as is the case
of sportsmen and artists. Such as: professionals, transfer of businessmenprofessionals, transfer of businessmen.

34. QuadQuad
(plus)(plus)
On ServicesOn ServicesIn Services, the advanced proposal had the "Quad"
again. Unlike in other agendas, there was no joint
alternative proposal. It was the Quadrilateral against
each PED individually.
Only in Hong Kong (2005) two countries expressed
their reservations to the final declaration with special
reference to Annex C (on Services).
Those countries were Venezuela and Cuba.
Subsequently, Bolivia withdrew, together with
Venezuela, from the services negotiations in a
complete way, ceasing to negotiate in all the
areas and sectors involved in that agenda. These
three countries were the only ones that explicitly
marked disagreements from within the
negotiations on WTO.

35. IntellectualIntellectual
Property onProperty on
WTOWTO
Hong Kong
(2005)
Géneve
(2011)

36. ► Record labelsRecord labels
► PharmaceuticalsPharmaceuticals
► EntertainmentEntertainment
► SoftwareSoftware
The biggest pressure groupsThe biggest pressure groups
Sony, Warner Music, Giffen, Virgin
Pfizer Pharmacia, Glaxo Smithkline,
Meyer, Johnson & Johnson, Lab. Abbot,
Bayer, Lab. Temis Lostaló
AOL, Warner Bros., Nintendo, Sony
Microsoft, Apple, Sony

37. Main producing countries of
generic drugs
Main countries with
pharmaceutical transnationals
The production of medicinesThe production of medicines
The main countries with production in medicines are within the PD. Its intellectual propertyThe main countries with production in medicines are within the PD. Its intellectual property
system aims to grant extraterritorial rights (such as the federal rules of the FBI in the US thatsystem aims to grant extraterritorial rights (such as the federal rules of the FBI in the US that
are intended to be extended to the entire world). However, other countries have more openare intended to be extended to the entire world). However, other countries have more open
laws that allow the manufacture of drugs calledlaws that allow the manufacture of drugs called genericsgenerics, ie they contain the same drug, but, ie they contain the same drug, but
they do not own the brand or are protected by the laboratories that own that brand.they do not own the brand or are protected by the laboratories that own that brand.

38. Geographical indicationsGeographical indications
DenominationsDenominations
of originof origin
IndicationsIndications
of originof origin
Unique established in the TRIPs,
in its art. 22
Indicates the origin of a product but
does not determine its quality.
It relates the denomination of origin
with a quality protocol (it is linked to
the know-how of the product).
It does not generate exclusiveIt does not generate exclusive
rights, unless there isrights, unless there is
confusion in the consumerconfusion in the consumer
before two equal products,before two equal products,
unfair competition orunfair competition or
commercial regulations arecommercial regulations are
violated.violated.
Exception: wines (article 23Exception: wines (article 23
TRIPs). Exclusive andTRIPs). Exclusive and
monopoly rights are granted,monopoly rights are granted,
assimilating it to aassimilating it to a
trademark or patent. Thesetrademark or patent. These
rights are for life (they haverights are for life (they have
no expiration).no expiration).
Exceptions to the exception:Exceptions to the exception:
pre-TRIP trademarks (eg winepre-TRIP trademarks (eg wine
"Toro"), generic names"Toro"), generic names
(champagne, burgundy,(champagne, burgundy,
roquefort, ceylon), varietyroquefort, ceylon), variety
names (grape varietal,names (grape varietal,
torrontés), IG not protectedtorrontés), IG not protected
by their countries or withoutby their countries or without
use.use.

39. Dec 2017: WTODec 2017: WTO
in Buenosin Buenos
Aires…Aires…
WTO General Director:WTO General Director:
Roberto AzevedoRoberto Azevedo
WTO Chairperson:WTO Chairperson:
Susana Malcorra (formerSusana Malcorra (former
Argentina´s Chancellor)Argentina´s Chancellor)

40. InvestmensInvestmens
on WTOon WTO
Bali (2013)
Buenos Aires
(2017)

41. ► The issue of investments was added within the "Singapore Issues" in theThe issue of investments was added within the "Singapore Issues" in the
1996 Ministerial. The WTO has a "minimum treaty" on investment and trade:1996 Ministerial. The WTO has a "minimum treaty" on investment and trade:
the TRIMs.the TRIMs.
► The international investment protection regime, based on arbitration tribunalsThe international investment protection regime, based on arbitration tribunals
such as thesuch as the ICSIDICSID –World Bank-, today is subject to criticism because it–World Bank-, today is subject to criticism because it
depends on ad hoc tribunals and it is an unstable regime that does notdepends on ad hoc tribunals and it is an unstable regime that does not
generate consistent jurisprudence. The most expensive claim in ICSID historygenerate consistent jurisprudence. The most expensive claim in ICSID history
that a state has lost has beenthat a state has lost has been Yukos against RussiaYukos against Russia forfor US$ 37 billionUS$ 37 billion..
► One option is to resort to a more stable dispute settlement system thatOne option is to resort to a more stable dispute settlement system that
provides greater security to withstand criticism.provides greater security to withstand criticism.
► WTO panelsWTO panels can be one of the alternatives that some defenders of thecan be one of the alternatives that some defenders of the
investment protection system may be looking for...investment protection system may be looking for...
► In the aftermath of the 2008 crisis, new ways of getting out of the PD'sIn the aftermath of the 2008 crisis, new ways of getting out of the PD's
economic depression are being considered.economic depression are being considered.
► It is understood that new technologies can help in that sense -leaving asideIt is understood that new technologies can help in that sense -leaving aside
that the crisis also involves the productive system- and facilitating electronicthat the crisis also involves the productive system- and facilitating electronic
commerce can partially increase trade flows.commerce can partially increase trade flows.
InvestmentsInvestments

42. E-E-
commercecommerce
on WTOon WTO
Buenos Aires
(2017)

43. ► ¿What is the internet 3.0?¿What is the internet 3.0?
E-commerceE-commerce

44. ► Internet 3.0.Internet 3.0.
► Data marketing.Data marketing.
► Who are theseWho are these
data?data?
► Invasion of privacy.Invasion of privacy.
► Habeas data.Habeas data.
E-commerceE-commerce
► What pages we visit ...What pages we visit ...
► What we see…What we see…
► What do we buy…What do we buy…
► What tastes do weWhat tastes do we
have ...have ...
► When we were born ...When we were born ...
► Where we work ...Where we work ...
► Where we live…Where we live…
► Where we go…Where we go…
► What do we do…What do we do…
► Who we know ...Who we know ...
They control our data…They control our data…
¿What about us?¿What about us?

45. DomesticDomestic
RegulationRegulation
on WTOon WTO
Buenos Aires
(2017)

46. FisheriesFisheries
SubsidiesSubsidies
on WTOon WTO
Buenos Aires
(2017)

47. The “The “spaghetti bowlspaghetti bowl””
Legal relationships established according to the 5200 Bilateral
Investment Treaties (BITs) around the world

48. Thak you for your attention…
Dr. Javier Echaide
PhD in Law (UBA), Lawyer specialized in International
Invstment and Trade Law (UBA)
Professor at the University of Buenos Aires (UBA) and
Academic Reasercher
Contact: jechaide@hotmail.com