Overview of Accessions Dimitar Bratanov, Accessions Division, WTO Session 2: Overview of Accessions 1. The basic procedures 2. The track record to date 3. The state of play in ongoing accessions 4. What is expected of acceding governments? Session 2: Overview of Accessions 1. The basic procedures Session 2: Overview of Accessions A closer relationship with the WTO? • Request for observer status in the General Council and its subsidiary bodies OR • Request for accession under Article XII of the Marrakesh Agreement Session 2: Overview of Accessions Observer status • Requests to be made in accordance with the Guidelines for Observer Status for Governments in the WTO (Annex 2 of the Rules of Procedure for Sessions of the Ministerial Conference and Meetings of the General Council, WT/L/161). • Governments have to: – express an intent to initiate negotiations for WTO accession within 5 years; – provide a description of economic and trade policies, including future reforms. • 10 governments have been granted observer status under these procedures. • Not to be confused with ad hoc observer status for WTO Ministerial Conferences. Session 2: Overview of Accessions WTO Accession: legal basis Article XII of the Agreement Establishing the WTO (the Marrakesh Agreement) 1. Any State or separate customs territory possessing full autonomy in the conduct of its external commercial relations and the other matters provided for in this Agreement and the Multilateral Trade Agreements may accede to this Agreement, on terms to be agreed between it and the WTO. Such accession shall apply to this Agreement and the Multilateral Trade Agreements annexed thereto. 2. Decisions on accession shall be taken by the Ministerial Conference. The Ministerial Conference shall approve the agreement on the terms of accession by a two- thirds majority of the Members of the WTO. 3. Accession to a Plurilateral Trade Agreement shall be governed by the provisions of that Agreement. Session 2: Overview of Accessions WTO Accession: legal basis “…by a two-thirds majority…” • In practice, since 1995 decisions on accession have been taken by consensus in accordance with WTO practice (Article IX:1 of the Marrakesh Agreement). • Paragraph 2 of Article XII refers to the final stage of the accession process, when the accession documents are adopted by the Ministerial Conference (or by the General Council as per Article IV:2 of the Marrakesh Agreement). Session 2: Overview of Accessions WTO Accession: legal basis “…on terms to be agreed…” The specific terms of accession are unique to each acceding government. WHY • Legal/institutional/economic frameworks of acceding governments are different. • Accession negotiations are WTO Member-driven and Members’ interests vary. • The WTO rulebook and “acquis” evolve over time. • … Note: while the specific terms agreed in each accession may vary, the accession process per se has remained largely unchanged since 1995. Session 2: Overview of Accessions The WTO Accession Process Stage 1 Stage 2 Stage 3 Session 2: Overview of Accessions Stage 1: Working Party Establishment • The General Council considers accession requests and establishes Working Parties to examine applications and elaborate terms of membership. • Working Party membership open to all WTO Members. • Consultations on the selection of a Working Party Chairperson begin after circulation of all documents necessary for holding the 1st Working Party meeting. • Observer status automatically granted to the Acceding Government upon Working Party establishment. • Annual financial contribution of approx. CHF 30’000. Establishment of the Working Party on the Accessions of Somalia and Timor-Leste Session 2: Overview of Accessions Stage 2: Fact-finding & negotiation Stage 2 – the substantive phase of the process – consists of 2 basic negotiating tracks: – Multilateral negotiations; – Bilateral negotiations; NOTE: plurilateral discussions are also a feature in many accessions These negotiating tracks proceed more or less in parallel. The accession procedures are outlined in WT/ACC/22/Rev.1, a document developed by the Secretariat in consultation with Members as a practical, non-binding guide. Session 2: Overview of Accessions Stage 3: Final steps THE ACCESSION PACKAGE • Adoption of the Accession • Decision 1 Package by Working Party • Protocol • General Council/Ministerial 2 • Report of the Working Party Conference approval • Schedule of Concessions & 3 Commitments on Goods • Domestic ratification /acceptance 4 • Schedule of Specific Commitments on Services • Membership Session 2: Overview of Accessions 2. The track record to date Session 2: Overview of Accessions Map of WTO Members and Observers Most recent acceding government: Curaçao (March 2020) Session 2: Overview of Accessions Completed (36) and ongoing (23) accessions (LDCs in red) Africa Europe/CIS Asia Pacific Middle East America 3 (2) 16 11 (6) 4 (1) 2 Cape Verde*, 2008 Bulgaria, 1996 Mongolia, 1997 Jordan, 2000 Ecuador, 1996 Seychelles, 2015 Kyrgyz Rep., 1998 China, 2001 Oman, 2000 Panama, 1997 Liberia*, 2016 Latvia, 1999 Chinese Taipei, 2002 Saudi Arabia 2005 Estonia, 1999 Nepal*, 2004 Yemen*, 2014 Georgia, 2000 Cambodia*, 2004 Albania, 2000 Tonga, 2007 Croatia, 2000 Viet Nam, 2007 Lithuania, 2001 Samoa*, 2012 Moldova, 2001 Vanuatu*, 2012 Armenia, 2003 Lao PDR*, 2013 FYR of Macedonia, 2003 Afghanistan*, 2016 Ukraine, 2008 Montenegro, 2012 Russian Fed. 2012 Tajikistan, 2013 Kazakhstan, 2015 9 (6) 6 2 (2) 4 1 Algeria, 1987 Belarus, 1993 Bhutan*, 1999 Lebanese Rep. , 1999 Bahamas, 2001 Sudan*, 1994 Uzbekistan, 1994 Timor-Leste*, 2016 Iraq, 2004 Curaçao, 2020 Ethiopia*, 2003 Azerbaijan, 1997 I.R. of Iran, 2005 Libya, 2004 Andorra, 1997 Syrian Arab Rep., 2010 Sao Tomé & Principe*, 2005 Bosnia & Herzegovina, 1999 Comoros*, 2007 Serbia, 2005 Equatorial Guinea, 2008 Somalia*, 2016 South Sudan, 2017 Session 2: Overview of Accessions What has been done so far? 36 accessions completed to date (By accession date) -Kyrgyz --Yemen Republic -Nepal -Ukraine -Cambodia -Cabo -Chinese Verde Taipei -Viet -Mongolia -Lithuania -Armenia Nam -Seychelles -Montenegro -Panama -Moldova -FYR -To n g a -Kazakhstan -Samoa -China Macedonia -Ecuador -Russian -Latvia -Saudi -Bulgaria Federation -Estonia Arabia -Vanuatu -Jordan -Georgia -Lao PDR -Tajikistan -Albania -Liberia -Oman -Afghanist -Croatia 2016 2015 2001 2005 2012 2014 2013 2007 2008 1997 2003 1996 2002 2004 2000 1998 1999 Shares of world trade Session 2: Overview of Accessions WTO accession results (1/3) Growth rate of merchandise exports Growth rate of merchandise imports of Article XII Members of Article XII Members Article XII Members Rest of the World 900 Article XII Members Rest of the World 800 600 600 400 300 200 0 0 -5 years WTO +5 years +10 years +15 years +20 years accession Session 2: Overview of Accessions WTO accession results (2/3) Growth rate of commercial services Growth rate of commercial services exports of Article XII Members exports of Article XII Members (1996-2011) (2012-2018) Article XII Members Rest of the World Article XII Members Rest of the World 250 250 200 200 150 150 100 100 50 50 0 0 -5 years WTO accession +5 years -5 years WTO accession +5 years Session 2: Overview of Accessions WTO accession results (3/3) Growth rate of FDI inward stocks Improvements in Business of Article XII Members Environment Article XII Members Rest of the World Average DTF Changes for a Member 8000 6000 4000 2000 0 -5 years WTO +5 years +10 years +15 years +20 years accession Session 2: Overview of Accessions 3. The state of play Session 2: Overview of Accessions What remains to be done? 23 ongoing accessions, plus …. (By application date) -Sao -Iran Tomé & Principe -Belarus -Curaçao -Algeria -Bahamas -Syrian -Iraq -Timor- Arab Rep. -Serbia Leste -Sudan -Azerbaijan -Libya -Somalia -Uzbekistan -Comoros -Andorra -Ethiopia -Equatorial -Lebanese Guinea Republic -Bosnia & -South Herzegovina Sudan -Bhutan 1987 1993 2003 2001 1994 2004 1999 2020 2005 2007 2105 2017 1996 1997 Accession negotiations – state of play Multilateral negotiations (Rules) Memorandum on Factual Summary Draft Working Working Foreign Trade of Points Raised Party Report Application Party Regime Established • Algeria • Andorra • Bahamas • Azerbaijan (No documents • Iran • Ethiopia* • Belarus submitted) • Iraq • Sudan* • Bhutan* • Timor-Leste* • Bosnia & • Somalia* Herzegovina • South Sudan* • Comoros* • Curaçao • Uzbekistan • Lebanese Rep. • Equatorial • Serbia Guinea • Turkmenistan • Libya (application for • Sao Tomé and Bilateral negotiations (Market Access) observership) Principe* • Syrian Arab Revised Goods & Services Offer Initial Goods & Draft Goods and Rep. Services Offer • Algeria Services • Azerbaijan Schedules • Bahamas • Andorra • Belarus • Ethiopia* • Bhutan* (revised goods • Bosnia and Herzegovina offer) • Comoros* • Lebanese Rep. • Serbia • Sudan* • Uzbekistan Session 2: Overview of Accessions Accessions by status General Status Accession WP (establishment) Last WP meeting Next WP meeting (based on Secretariat’s assessment) Strategic focus 1. Belarus (1993) 12WPM, July 2019 2nd half of 2020 2. Bosnia & Herzegovina (1999) 13WPM, February 2018 2nd half of 2020 3. Comoros* (2007) 4WPM, March 2018 Q3 2020 4. Serbia (2005) 13WPM, June 2013 TBD Work in progress 1. Azerbaijan (1997) 14WPM, July 2017 2nd half of 2020 On-going efforts to 2. Bahamas (2001) 4WPM, April 2019 TBD move the WP process 3. Ethiopia* (2003) 4WPM, January 2020 2nd half of 2020 4. South Sudan* (2017) 1WPM, March 2019 TBD 5. Sudan* (1994) 4WPM, July 2017