Developing Countries and the WTO

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Developing Countries and the WTO United Nations University Press is the publishing arm of the United Nations University. UNU Press publishes scholarly and policy-oriented books and periodicals on the issues facing the United Nations and its peoples and member states, with particular emphasis upon international, regional and trans-boundary policies. The United Nations University was established as a subsidiary organ of the United Nations by General Assembly resolution 2951 (XXVII) of 11 December 1972. It functions as an international community of scholars engaged in research, postgraduate training and the dissemination of knowledge to address the pressing global problems of human survival, development and welfare that are the concern of the United Nations and its agencies. Its activities are devoted to advancing knowledge for human security and development and are focused on issues of peace and governance and environment and sustainable development. The Univer- sity operates through a worldwide network of research and training centres and programmes, and its planning and coordinating centre in Tokyo. Developing countries and the WTO Developing countries and the WTO: Policy approaches Edited by Gary P. Sampson and W. Bradnee Chambers United Nations a University Press TOKYO u NEW YORK u PARIS 6 United Nations University, 2008 The views expressed in this publication are those of the authors and do not nec- essarily reflect the views of the United Nations University. United Nations University Press United Nations University, 53-70, Jingumae 5-chome, Shibuya-ku, Tokyo 150-8925, Japan Tel: þ81-3-3499-2811 Fax: þ81-3-3406-7345 E-mail: [email protected] general enquiries: [email protected] http://www.unu.edu United Nations University Office at the United Nations, New York 2 United Nations Plaza, Room DC2-2062, New York, NY 10017, USA Tel: þ1-212-963-6387 Fax: þ1-212-371-9454 E-mail: [email protected] United Nations University Press is the publishing division of the United Nations University. Cover design by Joyce C. Weston Printed in Hong Kong ISBN 987-92-808-1153-7 Library of Congress Cataloging-in-Publication Data Developing countries and the WTO : policy approaches / edited by Gary P. Sampson and W. Bradnee Chambers. p. cm. Includes bibliographical references and index. ISBN 978-9280811537 (pbk.) 1. Developing countries—Commercial policy. 2. World Trade Organization— Developing countries. I. Sampson, Gary P. II. Chambers, W. Bradnee. HF1413.D285 2008 3820.92091724—dc22 2008007214 Contents Figures................................................................. vii Tables.................................................................. viii Contributors........................................................... x Acknowledgements . ............................. xiii Abbreviations ......................................................... xv 1. Introductionandoverview ....................................... 1 W. Bradnee Chambers and Gary P. Sampson Part I. Market access ................................................. 17 2. Why developing countries need agricultural policy reform to succeed under Doha . ............................. 19 Kym Anderson and Will Martin 3. Thecottoninitiative .............................................. 41 Magda Shahin 4. The WTO non-agricultural market access negotiations: Opportunities and challenges for developing countries . 62 Sam Laird vi CONTENTS 5. Trade in services and policy priorities for developing countries . ........................................................ 86 Gary P. Sampson Part II. Legal flexibility .............................................. 107 6. Special and differential treatment: The need for a different approach.......................................................... 109 Constantine Michalopoulos 7. Special and differential treatment for developing countries in theWorldTradeOrganization .................................. 130 Manickan Supperamaniam Part III. Facing challenges ........................................... 139 8. Making TRIPS work for developing countries . ............... 141 Graham Dutfield 9. The development objectives of the WTO: State-centred versushumanrightsapproaches................................. 169 Ernst-Ulrich Petersmann 10. A human rights approach to ‘‘sustainable development’’ withintheWorldTradeOrganization........................... 192 Jens Po¨ssel 11. Asymmetricintegration:Theroleofregionalism............... 229 Ken Heydon Part IV. Process ...................................................... 253 12. Developing countries and the reform of the WTO Dispute SettlementSystem:Expectationsandrealities.................. 255 George Akpan 13. WTO negotiations on trade facilitation – Lessons for the future? New perspectives for and from the developing world.............................................................. 280 Nora Neufeld Index .................................................................. 311 Figures 2.1 Domestic support commitments, actual in 2001, WTO-bound and under various reform proposals . ......................... 29 2.2 The reduction in average tariffs versus the share of sensitive products . ........................................................ 31 2.3 Welfare gains from Doha partial-reform scenarios as a percentage of gain from global reform, high-income and developing countries, 2015 . ................................ 37 4.1 Estimated welfare gains for developing countries under variousscenarios ................................................ 75 4.2 Estimated export expansion by developing countries under variousscenarios ................................................ 76 4.3 Implications for developing country tariff revenue . ........... 76 vii Tables 2.1 Import-weighted average applied tariffs, by sector and region,2001 ..................................................... 23 2.2 Impacts on real income from removing all global merchandise trade distortions (including agricultural subsidies), without and with own-country participation, by country/region, 2015 . ........................................... 24 2.3 Potential gains to the world from full global goods trade reform ........................................................... 26 2.4 Potential gains to developing countries from global goods tradereform..................................................... 26 2.5 Benefits of agricultural trade reform due to each of the three pillars ............................................................ 27 2.6 Proposed cuts in tariff (market access) protection and Doha scenarios examined . ........................................... 30 2.7 Change in real income in alternative Doha scenarios, 2015 . 35 4.1 Import-weighted average applied tariffs (including preferences)bydevelopmentstatus............................ 64 4.2 Peaks in bound and applied tariffs as share of total tariff lines.............................................................. 64 4.3 Tariff escalation: Trade-weighted applied tariffs by stage of processing ....................................................... 64 4.4 Changes in developed countries’ weighted average industrial tariffs............................................................. 70 viii TABLES ix 4.5 Changes in developing countries’ weighted average industrial tariffs . ................................................. 71 4.6 Possiblescenarios ............................................... 74 4.7 Global welfare, trade and output under alternative scenarios ......................................................... 75 4.8 Change in output relative to base: Swiss ambitious (%) . 78 Contributors George Akpan is an Assistant deputy to the director of the Professor of Law at the University Research Division of the GATT of New South Wales Asia Business (now WTO) Secretariat in Geneva, and Humanities School. He and subsequently became the first obtained a PhD in Law from the economist to serve on a series of National University of Singapore. dispute settlement panels at the Prof. Akpan is a Barrister and World Trade Organization. Solicitor of the Supreme Court of Nigeria. Until recently, he was a W. Bradnee Chambers is the Senior JSPS-UNU Postdoctoral Fellow at Programme Officer at the United the United Nations University Nations University Institute of Institute of Advanced Studies, Advanced Studies, Japan. He is Japan. He is also a Visiting Scholar specialized in public international at the WTO Centre, Aoyama law and international relations and Gakuin University, Shibuya, Japan. works on environmental treaty and international economic legal issues. Kym Anderson is a Professor of Before working at UNU-IAS, he Economics and Foundation worked at the Transnational Executive Director of the Centre for Corporation Division of UNCTAD International Economic Studies (Geneva). (CIES) at the University of Adelaide in Australia, but since Graham Dutfield is the Herchel Smith mid-2004 he has been on extended Senior Research Fellow at Queen leave at the World Bank’s Mary, University of London. He Development Research Group in was formerly Academic Director of Washington DC as Lead Economist the UNCTAD-ICTSD Capacity- (Trade Policy). He spent 1990–92 as building Project on Intellectual x CONTRIBUTORS xi Property Rights and Development. Development Research Group. He He has served as a consultant or has been a member of the GTAP commissioned report author for Advisory Board since its inception several governments, international in 1994. His areas of expertise organisations, United Nations include agriculture, textiles and agencies and non-governmental
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