OVERVIEW
OF DEVELOPMENTS IN THE
INTERNATIONAL TRADING ENVIRONMENT
MINUTES OF THE MEETING
8
December 2014
Chairperson:
H.E. Mrs Mariam MD Salleh (Malaysia)
INTRODUCTORY REMARKS BY THE CHAIRPERSON
1.
I would like to
welcome you to this meeting of the TPRB, which was convened by Airgram WTO/AIR/4396
on 24 November 2014. The purpose of this meeting is for Members and Observers
to undertake their annual overview of developments in the international trading
environment which are having an impact on the multilateral trading system in
accordance with Paragraph G of Annex 3 of the Marrakesh Agreement. As mentioned
in the Airgram, today's discussion is assisted by the Director‑General's
Overview of Developments in the International Trading Environment, including
trade monitoring, which was circulated in document WT/TPR/OV/17 on 24 November
in English.[1]
In accordance with the Rules of Procedure for meetings of the TPRB, the
Director‑General's Report was issued as an unrestricted document.
2.
At the outset,
let me briefly recall that the purpose of the Trade Policy Review Mechanism
according to Annex 3 of the Marrakesh Agreement is to achieve greater
transparency in, and understanding of, Members' trade and trade-related
policies and measures. The TPRM is not intended to serve as a basis for the
enforcement of obligations under WTO Agreements, for dispute-settlement
purposes or to impose new policy commitments on Members. These fundamental
principles also apply fully to the annual overview of developments in the
international trading environment.
3.
Secondly, I would
like to recall the Decision by Ministers at the 8th Ministerial Conference
which called on the TPRB to continue and strengthen the monitoring exercise. In
particular, Ministers expressed their commitment to comply with existing
transparency obligations and reporting requirements needed for the preparation
of the report, and to continue to support and cooperate with the Secretariat in
a constructive fashion. It was recognised that this regular monitoring of
trade-related developments enhances the relevance of the multilateral trading
system. Specifically, the periodic reports by the Director-General provide
Members with very useful information to keep track of developments and to
analyse emerging trends in the area of trade policy. The creation of the Trade
Monitoring Database in 2013 also provides added transparency on the
implementation of trade measures.
4.
With all of this
in mind, I would like to draw your attention to the relatively poor response
rate provided by Members to the Secretariat in preparation for this report. The
process of providing and verifying information is crucial to guaranteeing and
preserving the high quality and accuracy of the monitoring reports.
5.
This afternoon we
will proceed as follows: I shall first give the floor to the Director-General
to introduce his report and launch our debate. Unfortunately, due to an
important change to the Director-General's schedule for this afternoon, he is
not able to be present for the entire duration of this meeting and will have to
leave immediately after delivering his statement.
6.
Following the
statement of the Director-General, I shall open the floor for comments from
delegations, and at the end of the discussions, the Secretariat may wish to
comment on the points made and issues raised by delegations.
7.
As usual for our
meetings in this body, in the interest of brevity and to give all delegations
the opportunity to speak, I will seek to ensure that interventions do not
exceed seven minutes. If any delegation has a longer written statement and
wishes to have it incorporated into the minutes of this meeting, please send
them electronically to the Secretariat. That way we can also use the limited
time available to us for a more free-flowing substantive discussion.
8.
I would now like
to invite the Director-General to make his introductory remarks. Director‑General,
you have the floor.
INTRODUCTORY REMARKS BY THE DIRECTOR-GENERAL
9.
Thank you Madam
Chairperson, Ambassador Salleh. Good afternoon, I am very happy to be here with
you. I really do apologize in advance for not being able to stay for the whole
session. We have a General Council coming up and there are a few loose ends
that we need to tie up. We don't have much time but I will try to make a very
clear and straightforward presentation about what is in the report. And, as
usual, as you know, we like to have balance at the WTO – in all things we do.
In fact, some would say we have a balance in life: for every positive there is
a negative somewhere.
10.
So while we, at
the General Council meeting of the 27th of November, were able to do
progress and had news that put us back on track, inevitably there is something
going on which is not so good somewhere else.
11.
The annual report
shows a bit of that on the developments in the international trading
environment, which was circulated on the 24th of November. This report brings
news of some real challenges in the international trading environment –
challenges which require clearly our attention, and the attention of policymakers
around the world. The report provides information on trade-restrictive, as well
as trade-facilitating measures taken by WTO Members in the field of trade in
goods and services. It covers the period running from mid-November 2013 to mid‑October 2014.
12.
It also covers
other relevant trade policy developments, including:
·
the trade policy
reviews conducted in 2014;
·
regional trade
agreements;
·
the Government
Procurement Agreement;
·
the operation of
transparency provisions contained in the various WTO agreements,
·
trade finance;
and
·
dispute
settlement.
13.
This meeting
gives us the opportunity to look back at all these issues that have emerged
over the course of the year and to consider how Members might wish to respond.
14.
I will set out
some of the key findings of the report in a moment, but first I would like to
say a few words on the process of preparing the document.
Preparation of the report
15.
The information
on country-specific measures identified in the section dealing with trade in
services and in the four annexes is based on inputs submitted by Members and
other official and public sources. Members concerned have had an opportunity to
verify the accuracy of this information.
16.
I would like to
thank the delegations who have participated in this exercise by providing relevant
information on time and by ensuring subsequent verification of the reported
measures. These inputs not only help expand the coverage of the report, they
are also crucial in ensuring the accuracy of the information contained in the
report. At the same time, it is unfortunate that, as in previous years, many
Members continue to fail to participate actively in this process. Just 37% of
Members responded to the request to submit information on their new trade
measures. This is slightly up from 35% in 2013 – but of course it is still far
too low. It is also a matter of concern that even when Members participate in
this information‑gathering process, they often do not provide information on
certain types of measures – especially on the so-called behind-the-border
measures, including general economic support.
17.
There are, of
course, other organizations that monitor developments in the application of
trade measures – and the findings in their reports sometimes differ from ours.
We have carefully studied the methodologies used in those reports but remain
confident that our work here provides a sound and realistic picture of current
trade policy developments around the world.
18.
Finally, let me
stress that this report is a constantly evolving product. As you will have
noticed, we have made certain changes in order to present the main findings of
the report in a clearer and more accessible way. We have also provided data on
how the number of trade‑restrictive and trade‑facilitating measures has evolved
since the onset of the global financial crisis in 2008.
Restrictive measures and the economic context
19.
Let me now turn
to the substance of the report. Rather than simply listing the findings of the
report, I would like to draw out what I consider to be the significant policy
issues affecting the trading system that have emerged in the current reporting
period.
20.
In a climate of
global economic uncertainty the continued accumulation of trade-restrictive
measures pose a clear risk. Current prospects for world output and trade are
far from favourable. During the course of the year, lower-than-expected GDP
growth has led our economists to downgrade their forecasts for world trade
growth to 3.1% in 2014 and 4% in 2015. Those numbers reflect significantly
estimates of GDP growth which are conducted mostly by other organizations who
have been revising the GDP growth number. The moment that they revise their
numbers we, of course, have to reflect that revision in our own trade expansion
analysis. These rates are higher than in 2012 and 2013. But they are still significantly
lower than the average growth rate in the twenty years prior to the global
financial crisis of 2008. Some argue that this slower growth of world trade is
now a permanent feature of the global economy.
21.
Against this
backdrop, which is inevitable, recent trends in trade policy actions of Members
are a cause for concern. The report points out that the stock of trade
restrictions introduced by WTO Members since 2008 continues to rise. Of the
2,146 trade-restrictive measures introduced since 2008, only 508 have been
removed – that's about 24% of them. The total number of trade‑restrictive
measures still in place now stands at 1,638. The report also notes that the
number of new trade-restrictive measures introduced during the period under
review is quite high, at 168. The average number of new trade-restrictive
measures per month is higher in this period than in any other period since
October 2008. While we have also witnessed a substantial increase in the number
of trade-liberalizing measures, this should not detract from the overall
picture.
22.
In addition,
there is some evidence that, more recently, the application of
trade-restrictive measures is leading to heightened friction between Members on
trade issues. Aside from the increase in the number of dispute settlement
panels, Members have increasingly voiced concerns regarding specific measures
taken by other Members in WTO subsidiary bodies, such as the Council for Trade
in Goods. In this context, Members should strive to show greater restraint in
the imposition of new trade-restrictive measures, eliminate existing trade
restrictions, and contribute to enhancing transparency on behind-the-border
measures.
RTAs
23.
A second very important
policy issue identified in this report is the relationship between regional
trade agreements (RTAs) and the multilateral trading system. This is, of course,
not a new issue but the report makes some interesting observations based on
recent research.
24.
As of mid-October
2014, the WTO has been notified of 253 regional trade agreements. However,
there are also 63 regional trade agreements in force that have not yet been
notified to the WTO. And, of course, negotiations on new RTAs are under way. In
some cases these negotiations are between parties that account for very
substantial shares of world trade and GDP.
25.
Given the growth
in the number and the changing scope and coverage of RTAs, there is clearly a
need for a better understanding of the relationship between these agreements and
the multilateral trading system.
26.
Building on
recent research undertaken by the WTO Secretariat, the report provides an
analysis of the extent to which provisions in RTAs actually go beyond the
multilateral rules contained in the WTO Agreements. You may recall that this was
also the subject of a seminar held here at the WTO in September on
Cross-Cutting Issues in RTAs.
27.
As I have said
before, bilateral and regional trade liberalization initiatives are welcome as
long as they do not impose additional barriers to trade, and they also constitute
building blocks towards trade liberalization.
28.
However, we
cannot expect them to substitute the multilateral trading system. There are
many subjects that by their very nature require a multilateral approach to be
dealt with efficiently – such as trade facilitation, agricultural and fisheries
subsidies, disciplines on trade remedies, regulation of financial and
telecommunications services, and so on. It is a long list.
29.
Also, these
initiatives mostly exclude the smallest and most vulnerable countries and do
not fully address the gains from trade that can be obtained through global
value chains. Therefore, while we welcome the RTAs, we cannot ignore their
obvious limitations or the need to avoid harmful effects to third parties.
30.
Another issue to
be mindful of is the potential complexity that may result from the existence of
different sets of rules and regulations developed in these RTAs, which may be
burdensome for traders and businesses.
31.
We must continue
to deepen our understanding in this area to ensure that RTAs and the
multilateral system can move forward together, complementing each other, and in
the most effective way possible.
32.
Therefore, I
think we should welcome the initial steps that we have taken in this report and
commit to taking this work further in 2015.
Compliance with transparency mechanisms
33.
Moving on, the
third policy issue is that, although improvements were made in some areas of
our work in the WTO, compliance with various transparency mechanisms remains
unsatisfactory. Again, this is not a new issue.
34.
Section 4 of the
report contains a detailed overview of how Members have been complying with the
various notification requirements contained in the WTO Agreement.
35.
Let me just cite
a few examples which illustrate the seriousness of the problem that we face in
this area of our work. With respect to the Agreement on Agriculture, the report
notes that compliance with notification obligations in the areas of domestic
support and export subsidies generally remains below 50%. In the case of the
SCM Agreement, the report notes that the percentage of Members that do not
submit notifications on subsidies has risen from 27% in 1995 to 44% in 2013. That
is really something we should avoid. Regarding state-trading enterprises, the
percentage of Members that do not make any notification has increased from 37%
in 1995 to 66% in 2012.
36.
In light of this,
I think there is an urgent need to improve compliance with the transparency provisions
in the WTO Agreements. These transparency provisions are essential to ensure
that Members have the necessary information to understand each other's trade
policies and to ensure that WTO Agreements are properly implemented, and to
avoid unnecessary trade disputes.
Conclusion
37.
So these are some
key points which I think we should take away from this report. I hope you will
have the time and patience to go through the report.
38.
And, in closing,
I would just like to leave you with three thoughts as we look towards our work
in 2015.
39.
First, I think we
would all agree that one of the key reasons why we value the multilateral
trading system is because it is a proven bulwark against protectionism. We saw
this in the response to the financial crisis where the mistakes of the past
were not repeated. But preserving the system takes effort and commitment. And
therefore I think we must ensure that the policy issues raised in this report
receive the full and urgent attention that they deserve.
40.
Second, we must
deliver on the commitments we made at the Special General Council on 27 November
to implement all of the Bali decisions and to develop a work programme on the
remaining DDA issues. If we see this work through we could definitely provide a
much-needed boost to economic growth and productivity across the globe and at
the same time as immeasurably strengthening the multilateral trading system.
41.
Third, we must
also recognize that our experience in 2014 has made it clear that we need to
find ways to work more efficiently. We have shown that we can deliver and we
did that in Bali. Now we need to figure out
how to deliver more and how to deliver faster.
42.
So, thank you
Madam Chairperson; this concludes my statement about the report.
43.
But, before I
leave, I would like to thank delegations once again for their contributions to
this report, and of course the Secretariat for their work in preparing it. I
would like also to thank delegations in advance for their contributions and
ideas this afternoon. We will take careful note of all your comments and will
take them into account as we prepare the monitoring work for next year.
44.
Finally, I want
to inform delegations that I will be sending out the usual request for
information for the next monitoring reports in the first half of March. I would
also like to encourage you all to participate in the monitoring exercise and
cooperate with the Secretariat as much as possible.
45.
I think we should
aim to deliver a higher level of transparency and accuracy of information in
2015. The Secretariat is going to prepare a briefing for me on the comments
that you make today. I will, together with the Secretariat, take all of your
comments on board as seriously as I hope you will take my comments today. I
hope you will have a very productive session. Thank you Madam Chair.
STATEMENTS BY MEMBERS
MEXICO
46.
The delegation of
Mexico
thanks the Director General and his team for this report, which is, as always,
comprehensive and unbiased.
47.
The conclusion of
the report under discussion today, like that of the analyses conducted by other
institutions monitoring trade measures around the world, is that protectionism
cannot solve the economic problems we are experiencing globally, despite
appearing to be a short term solution.
48.
It is very
worrying to see that the application of trade restrictive measures has
continued to increase in the five months covered by this report, and it is of
even greater concern to see these measures accumulating, as very few measures
already in place were eliminated during that period.
49.
Time and time
again in this forum, attention has been drawn to the G-20 countries' failure to
honour their highest level political commitment, which involves not repeating
past mistakes and resisting protectionism. Since 2009, this commitment has been
reaffirmed year after year within the G-20, and yet the report notes the application
of a total of 168 new restrictive measures by WTO Members in the last 12
months, most of which are the responsibility of G-20 countries.
50.
To make matters
worse, 1,638 restrictive measures have accumulated since 2008. These measures
have in no way been offset by trade liberalization measures, despite a
commendable increase in liberalization measures during the period covered by
the report (mid-May to mid‑October 2014) in comparison to the previous period
(mid November 2013 to mid-May 2014).
51.
Emphasis must be
placed on the need and commitment to reverse existing measures. It is also
necessary to assess in greater depth the economic impact, e.g. in terms of
employment and investment, of the trade restrictive and trade distorting
measures recorded, beyond the percentage of imports affected by such measures.
52.
One of the
report's key messages is that greater transparency is needed from Members in
order to improve the functioning and effects of non-tariff barriers to trade,
including regulatory measures and subsidies. In this respect, we must start by
complying fully with the notification obligations established in the WTO
Agreements.
53.
Another key
message is that despite the continuing increase in the number of trade
restrictive measures stockpiled since 2008, the reaction to the 2008 global
economic and financial crisis has been more muted than expected based on
previous crises. Despite agreeing with this and with the conclusion that the
multilateral trading system has acted as an effective backstop against protectionism,
we believe that there is no room at all for complacency.
54.
All WTO Members,
and in particular the G-20 countries, are urged not only to step up their
efforts to fight protectionism, but to ensure the swift implementation of all
the Bali Decisions and to complete the work programme on outstanding Doha Round
issues, with a view to setting the stage for further multilateral trade
liberalization.
55.
Before
concluding, I would like to highlight the structural reforms currently being
implemented by the Government of Mexico, which include constitutional
amendments that will have an important impact on the modernization and opening
up of the telecommunications, broadcasting and energy sectors. These measures
are described on pages 59 to 61 of the English version of the report.
56.
I conclude my
statement by once again thanking the Director General and the Secretariat for
their excellent report.
EUROPEAN
UNION
57.
The EU thanks the
Director-General and the WTO Secretariat for the comprehensive report that has
been produced and which forms a valuable basis for our discussions today.
58.
The EU notes with
concern that the stock of restrictive barriers to trade continues to increase
and that the pace of removal is not sufficient. This echoes many of the
interventions that the EU made in the Council for Trade in Goods and in its
Sub-Committees.
59.
Furthermore, it
confirms the conclusions of the 11th report on potentially trade-restrictive
measures recently published by the EU that emerging economies, (in particular
Russia, China, India and Indonesia) still apply the bulk of new potentially-trade-restrictive
measures, even if they're bound by G-20 commitments in that respect. In
particular border measures, but also discriminatory domestic provisions on
taxation or forced localisation have been the instrument of choice of these
countries.
60. Also, in the period assessed by
the EU, the application of export restrictions gained in pace. This is
alarming, as we have fewer instruments in the WTO to fight such provisions, and
they can significantly hinder global value chains and distort the functioning
of commodity markets.
61. We also need to point out that, as
indicated in the above-mentioned EU report, Russia has taken, in the reference
period, June 2013–June 2014, by far the largest number of general steps of a
protectionist nature, in a wide range of areas, through many trade policy
tools. In particular, we would also like to stress the fact that most of the
EU's and other WTO Members' agricultural products are banned from entering
Russia since 7 August 2014, allegedly due to SPS concerns.
62. Regarding transparency, the EU shares the Secretariat's concerns
that "adequate information on behind the border measures
including regulatory measures and subsidies is still lacking."
It also shares the analysis that "in addition to
measures reported in the specialized Committees, as well as in the CTG and general
bodies, those measures have become more prominent in recent years, compared to
conventional border measures, and therefore the need to increase the quality of
the information available is paramount." The EU supports the
Secretariat's call for more efforts to improve the situation.
63. Regarding RTAs, the EU welcomes
the active monitoring of the situation by the Secretariat, which has led to
recent notifications of RTAs that were in force but had not been the subject of
proper notifications. The EU is glad to read in the Secretariat's report (page
96 paragraph 4.26) that "the notifications have continued to improve"
and shares the Secretariat's hopes "that the still outstanding
notifications will be submitted soon to the Secretariat". It is
of the utmost importance to continue the ongoing work on transparency of FTAs.
The EU generally supports actions promoting the transparency mechanism. In this
respect, the EU has actively worked, jointly with Chile, on the preparation of
the first implementing report submitted in accordance with Article 15 of the
Transparency Mechanism Decision.
64.
The EU strongly
agrees that the multilateral system can and should do more to drive economic
growth and development. This is precisely why the EU has supported the Trade
Facilitation Agreement and the implementation of the rest of the Bali package.
In this regard, allow me to welcome once again the recent decisions taken by the
General Council, which put the post-Bali process back on track. This was
however just a first step. What we need now is to ratify and implement the
Trade Facilitation Agreement. We need to move forward on the other Bali issues
including those of concern to LDCs. And we need to advance on the post-Bali
work‑programme so that we are put on a credible and realistic path towards the
DDA's conclusion. By taking these steps, as well as making progress on other
issues such as the expansion of the ITA, the multilateral system will truly be
strengthened and will genuinely contribute to global growth.
AUSTRALIA
65.
Australia would
like to thank the Director-General and the Secretariat for this report, and for
your important contribution to increased transparency and improved monitoring
of trade and trade-related measures
66.
There are three
key challenges outlined by the Director-General’s Report:
· an uncertain outlook for trade and economic growth;
· the continued threat posed by trade protectionism; and
· the emergence of a new body of trade norms emerging through the
proliferation of RTAs/FTAs which offers both opportunities and challenges for
the multilateral trading system.
67.
The Overview
Report is important because it asks us to focus on how the WTO can best address
these challenges. The answer must be to move forward with the WTO’s negotiating
agenda and produce trade-liberalizing outcomes. Outcomes that will allow trade
reform and competition to be the powerful drivers of economic growth, job
creation and higher living standards than they can be.
68.
Expanding the ITA
will be one important thing we can do, as will moving ahead with the efforts to
liberalise trade in environmental goods. But finalising and implementing a
post-Bali work plan will be the biggest test that we face over the coming
twelve months. Can we find a way forward which makes a real contribution to
growing our economies and creating jobs for our populations?
69.
Finally, let me
join the Director-General in urging all Members to improve our efforts to meet
our WTO transparency and trade-monitoring obligations
70.
The
Director-General’s overview makes clear the benefits that will flow if we do.
BRAZIL
71.
Brazil thanks the
Director-General and the Secretariat team for this new report on the
international trading environment, a document and an exercise that Brazil has
been following with interest.
72.
The Report notes
that the stock of trade-restrictive measures introduced by WTO Members since
2008 continues to grow, despite the “containment” role of the multilateral
trading system against a bigger surge in protectionism. In this context, it is
important that we strive to unlock the potential for expanding trade flows.
73.
The Decisions
taken by the General Council on 27 November allow us to get back to work,
implementing the full Bali Package and preparing the Post-Bali Work Programme
by July 2015.
74.
Brazil reiterates
its commitment to the Multilateral Trade System, and expects Members to engage
in a constructive conversation that should lead up to the relaunch and,
hopefully, conclusion of the DDA, aiming at concrete results in Agriculture,
NAMA and Services.
75.
This process
shall produce concrete, balanced and relevant results for all of our countries,
with central attention to the needs of development and the resulting priority
for all three pillars on agriculture, which have been left lagging behind for
much too long.
76.
Turning back to
the report, it is worth noting that Brazil continues to rank among the
countries with the highest number of trade-facilitating measures, including
tariff reductions for more than 3,100 products, such as capital goods, IT
equipment, chemicals and foodstuffs.
77.
Let me reiterate,
as Brazil has stated since we started the monitoring exercise, in our view,
trade defence measures or the initiation of investigations are not intended in
any way to restrict trade. Their application should not be viewed as trade-restrictive
but as a means of remedying non-compatible measures taken by trade partners, as
provided in the Anti-dumping Agreement, the Agreement on Subsidies and Countervailing
Measures and the Safeguards Agreement.
78.
As stressed in
previous TPRB meetings, we renew once again our call for the Annual Report to
become even more comprehensive, precise and useful, by including further
information on behind-the-border measures.
79.
Likewise, support
measures in the agricultural sector – always a matter of major systemic
concern, particularly for developing countries – must receive even closer
scrutiny. The report could be enriched through more detailed analytical data in
this realm.
80.
Brazil stands
ready to contribute towards transparency and the improvement of the trade
monitoring function in the WTO and is open to a productive debate.
HONG
KONG, CHINA
81.
Hong Kong, China
thanks the Director-General and the Trade Policy Review Division for providing
us with this useful report.
82.
We note from the
report the encouraging sign that the pace of introducing new trade‑restrictive measures
has slowed down compared to the last reporting period. The number of trade-facilitating
measures has also recorded a rather significant 65% increase.
83.
However, if we
adopt a longer-term perspective, the stock of restrictive measures taken by
Members since 2008 is still on the rise. The average number of
trade-restrictive measures taken per month is also higher than any other period
since 2008. We would appeal to all Members to exercise restraint in introducing
new restrictive measures and take positive actions to reduce existing ones.
84.
In some specific
areas, however, the signals are more positive. A range of measures affecting
trade in services were introduced by a number of Members during the reporting
period. Most of them represent efforts to open up the services sectors for
greater foreign participation and streamlining of regulatory frameworks that
facilitate foreign investment and temporary movement of natural persons. The
fact that these liberalization measures are taking place in countries spanning
across different continents was particularly encouraging. In light of the
growing importance of trade in services as final or intermediate components of
global trade flow, we would encourage Members to continue to integrate
liberalization measures into their services trade.
85.
On the use of
trade-remedy measures, we note that anti-dumping (AD) actions remained the vast
majority (267), followed by countervailing duty (CVD) actions (36) and
safeguard (SG) actions (34). When comparing the figures for the current
reporting with those in the previous 12 months, we are glad to see the
slight decrease by 5% in the initiation of AD investigations and SG
investigations, but the 30% jump in the CVD activities is even harder to miss. We
certainly want to keep track of such developments in subsequent reports so as
to better understand their implication. For those remedy measures which are
already in place, we encourage Members to thoroughly review if such measures
are still warranted. Dismantling unwarranted trade remedy measures is indeed a
positive action to check the growth of protectionism.
86.
Our delegation
also notes with interest the observations about RTAs and their impact on the
multilateral trading system. The report indicates that the total number of RTAs
notified to the WTO and to the GATT amounted to 253 as of mid-October 2014. It
also predicts that the number of RTAs will continue to grow.
87.
More importantly,
the report observed that common provisions covered in RTAs nowadays include
issues such as trade remedy measures, sanitary and phytosanitary measures,
technical barriers to trade, intellectual property rights, dispute settlement,
as well as issues for which there are no WTO provisions such as competition
policy, government procurement, electronic commerce, environment and labour. However,
some issues such as subsidies, with the exception of export subsidies, are notably
absent from RTA texts. While a number of
RTAs explicitly forbid the parties from using export subsidies, they are silent
on tackling the issue of subsidies or domestic support.
88.
On the level and
range of commitments, the report states that research by the WTO Secretariat
and the OECD shows a strong preference for RTAs reaffirming the WTO rights and
obligations of the RTA parties, though some issues for which there are no
equivalent WTO rules are increasingly being included in RTAs. The report also
mentions institutional matters regarding the WTO Transparency Mechanism for
RTAs which has provided for a better understanding of the contents of the RTAs.
However, the report remarks that the information on RTAs' implementation
remains limited.
89.
We welcome the
report's observations and consider that there is a continued need for work by
Members concerning the systemic implications of RTAs on the multilateral
trading system. We would also continue to be constructive in contributing to
the transparency of RTAs.
90.
This brings me
naturally to the broader issue of the compliance of notification obligations,
which is one of the key sources of information that the Secretariat could draw
data from. The response rate to Director-General’s request for information for
compilation of this report accounts for 37% of the total membership of the WTO,
and information on regulatory measures and subsidies provided by Members is still
limited. The percentage of membership providing timely replies to the Trade
Policy Review Division has even suffered a slight drop (43% vs 47%).
91.
Enhanced
transparency is a core value of the WTO, and it should remain our focus to
encourage better compliance. Let me conclude by thanking the Director-General
again for this useful report. We see great value in this exercise and look
forward to its continuation.
UNITED
STATES
92.
The United States
would like to thank the Director-General and the Secretariat for continuing
their efforts to monitor trade and trade-related measures and for producing
this extensive and informative end-of-year report.
93.
In focusing in
part on the trade-facilitative measures Members have taken over the six months,
the report underscores for us that the first order of business at the WTO must
be to finish what we started by staying true to the results at Bali,
implementing the Trade Facilitation Agreement and completing negotiations on a
post-Bali work programme. The report also rightly notes that the expansion of
the Information Technology Agreement would also have a positive economic effect.
Success in each of these areas will bring about enhancements in the overall
global environment for trade, which benefits all Members.
94.
The only other
point we would like to make today is to note our appreciation to those Members
who actively participated in the monitoring exercise for the first time. This
exercise is a unique one, and we hope additional Members will choose to
contribute to it in 2015.
INDIA
95.
My delegation
would like to join others in thanking the Director-General for his Annual Report
(WT/TPR/OV/17) on the overview of developments in the international trading
environment and his statement this afternoon.
96.
The analysis of
trade trends, particularly the fact that world trade grew more slowly than
expected and continued instability prompting downgrades in economic forecasts,
including by the WTO Secretariat, underscores the continued need for Members to
desist from new protectionist measures to respond to the uncertain economic
environment.
97.
The report brings
out that the average number of trade-restrictive measures, including trade
remedy actions, which cannot be termed as trade-restrictive, taken per month in
the current reporting period (30.8 per month) and in the preceding year (31.3
per month) is higher than any other review periods since October 2008. This,
along with the fact that the stock of restrictive trade measures introduced by
Members since 2008 has continued to increase, is some cause for concern for the
global trading environment.
98.
On a positive note,
however, the number of trade-liberalizing measures has significantly increased
in the current reporting period. But the relatively positive trend in the area
of trade liberalizing measures should not distract us from the overall picture
of increase in the stock of trade restrictions in recent years.
99.
While the report
attempts to broadly cover the three main sectors ‑ goods, services and
agriculture ‑ the analysis is more concentrated on the goods side. It would be
important to cover in greater detail measures affecting trade in services and
agriculture, which certainly impact on developing countries' trade. For
example, measures affecting movement of natural persons since 2008 would
certainly merit a clear and meaningful analysis.
100.
The section on
the TBT and SPS measures essentially lists the number of notifications made by
Members and a statistical analysis of such measures. This section also does not
bring out a picture in terms of the impact of such measures on trade. In our
view, a detailed analysis of the impact of SPS and TBT measures on
international trade would be an important area for further work.
101.
Besides
definitional and methodological issues relating to the categorization of
measures, in the overall, mere statistical analysis of trade-restrictive
measures may give a misleading impression unless it is accompanied by a
meaningful exercise to assess the real trade impact of such measures, which in
particular have the potential to affect adversely developing country exports.
102.
Beyond
statistical data and factual analysis of trade and trade-related policy
developments based on information shared by Members, which is informative, it
would be useful to have an expanded treatment in the future reports on the
overall global economic outlook, seen from the trade perspective, and its impact
on the international trading environment. Such an analysis could also highlight
significant policy issues that are affecting the trading system, as envisaged
in Annex 3 of the Marrakesh Agreement.
CHINA
103.
China appreciates
Director-General's comprehensive introduction.
104.
First of all, we
would like to commend the Secretariat for preparing the report, which draws a
clear picture of the international trading environment in the period under
review. This report, as well as the trade monitoring mechanism, has played an
important role in restraining protectionism since the onset of the crisis. We
would like to continue providing our full support to the WTO Secretariat for
carrying on this work and encourage more Members to contribute to this
mechanism by providing necessary information as requested.
105.
A salient feature
pointed out by this report is that most of the trade-restriction measures are
still not withdrawn by major WTO Members. Although the pace of introduction of new
protectionism measures is not accelerating, the number of overall restrictive
measures is still picking up at a notable speed. We should also be vigilant to the
fact that if trade remedy actions are also taken into account, the average
number of trade-restrictive measures per month in this review period is higher
than in any other period since October 2008.
106.
Unfortunately,
China remains the biggest victim of protectionism and trade-restrictive
measures. We are still the most affected Member for both anti-dumping and
countervailing measures. In this regard, we urge Members to refrain from taking
any new trade-restrictive measures, and rapidly withdraw those already in
place.
107.
On our side, the
new leadership of China has demonstrated strong determination on domestic
reform and further market liberation. This has been reflected by some important
measures taken by China recently to facilitate imports and promote outward
investment.
108.
Finally, this
report reminds us that the prospect of a strong global growth and world trade
recovery is still bleak. At this critical juncture, together with other Members,
we believe that full implementation of the Bali package, early development of
the Post Bali Work Program and conclusion of the DDA would be the most
important instrument to avoid protectionism.
ARGENTINA
109.
Thank you Madam
Chair and thank you Director General for presenting this report. Thanks also to
the Secretariat for its ongoing efforts to prepare such documents. This report
is a valuable tool that allows us to gauge trade policy developments and trends
in world trade.
110.
We remain
concerned about the slow growth of the global economy and its subsequent impact
on trade flows, reasons for which various international organizations have
lowered their initial forecasts. In this context, and as exporters of primary
agricultural products, we are particularly concerned about the fall in the
prices of many commodities over the last few months, which, as noted in the
report, has led to a cut in export revenues in various countries, in particular
Africa and Latin America.
111.
In these
circumstances, making progress on the outstanding Doha Round issues acquires
even greater relevance, most notably in the agricultural sector, where it is
increasingly necessary to eliminate the remaining distortion that prevents agro
exporting developing countries from maintaining economic growth and the living
standards of their populations.
112.
The other issue
we would like to highlight, as on previous occasions, is how difficult it
continues to be, according to the report, to obtain "confirmed"
information on non-tariff barriers, i.e. "behind the border
measures". These measures have been acquiring ever greater significance,
and, as noted in the report, greater transparency is needed in this respect.
Members' input is therefore vital for learning about the scope and magnitude of
such instruments.
113.
We wish to make
clear that we are referring, in particular, to "confirmed measures".
As we have also said before, we believe it is important to exclude from this
document any information that governments have not confirmed which, in many
cases, concerns measures not approved, not in effect or deriving from newspaper
reports. For this transparency exercise, it is vital not only to have Members'
input, but to improve the way in which the information received is processed.
114.
In this respect,
we feel it would also be useful to gather together all the information on
measures deriving from the WTO's own committees or councils and not only
information on some of these measures. Argentina, for instance, raised an issue
at the meeting of the Council for Trade in Goods last April which does not
appear here in this document.
115.
These reports are
valuable and contribute to transparency, but their usefulness, and indeed
transparency itself, would be improved through greater input from Members, the
use of only confirmed information, and any input that might come from the WTO
bodies themselves.
REPUBLIC
OF KOREA
116.
I would like to
join the previous speakers in extending our sincere appreciation to Director‑General
Azevêdo and the Secretariat for their hard work in preparing this Report.
117.
We are of the view
that the Director-General’s report and presentation captures very well the
overview of developments within the context of international trading
environments. Recent breakthroughs to implement the outcomes agreed at the MC-9
have created a new momentum to reinvigorate the multilateral trading system.
Building on this momentum, we also need reflection on the function of the WTO,
focusing on how the WTO can regain its relevance among the changing realities
of our complex world.
118.
It is quite good
to see that the total number of trade-liberalizing measures increased to 350
from 251 during the period under review. The monitoring report, however, draws
our attention to the fact that the number of trade-restrictive measures still
remains high at 339, which affects about 1.4% of world merchandise imports.
These trade-restrictive measures fall short of an outbreak of protectionism,
but we should vigilantly monitor any developments to ensure that favourable
trends are maintained.
119.
We also believe
that the proliferation of mega-RTAs has posed ramifications for the
multilateral trading system and we should monitor these in order to keep them
both complementary and mutually supportive.
120.
In addition, we
would like to make two specific points.
121.
First, from
November 2013 to October 2014, as in the previous period, the number of anti‑dumping
investigation initiations remains at more than 200 cases. While we certainly
recognize that trade remedy measures are legitimate rights of WTO Members under
the WTO Agreement, we cannot disregard the protectionist dimensions or the
chilling effect on international trade. In this regard, we would like to urge
Members to take more cautious and prudent approaches to trade remedy measures.
122.
Secondly, only 59
Members responded to the request to provide information on their new trade
measures, even though the number of responding Members has slightly increased
when compared to the previous report. In particular, there are concerns with
regard to behind-the-border measures such as general economic support measures.
To address this issue, it could be helpful to clarify what constitutes “general
economic support measures.” The absence of such clarification may have
compounded Members’ insufficient reporting, making any assessment potentially
partial and possibly inaccurate.
123.
In closing, as
the Director-General pointed out, protectionist pressures are bound to remain
during a sluggish and uneven economic recovery with persistent high levels of
unemployment. During times such as this, it is important to reinforce the
monitoring mechanisms of the multilateral trading system by ensuring
transparency, one of the key functions of the WTO. Believing that a vibrant
multilateral trading system is the best insurance policy to overcome
protectionism, Korea will continue to work closely and constructively with
other Members in this endeavour to further strengthen the monitoring and
surveillance mechanism of the multilateral trading system.
THE
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU
124.
My delegation
joins previous speakers in thanking the Director-General and his team for the
comprehensive annual report and the Director-General’s briefing today. This
report provides us with a clear picture of what has been happening, not only in
the macroeconomic environment, but also in terms of Members’ trade policies and
measures, and their impact on the multilateral trading system.
125.
The report draws
our attention to certain aspects that we find to be of particular interest.
126.
On the positive
side, we are pleased to see that fewer trade-restrictive measures have been
imposed during this review period compared to the previous one, while the
number of new trade‑facilitating measures has risen. Moreover, the report
suggests that the trade policy reaction to the 2008 global crisis has been more
muted than might have been expected, based on the experience of previous
crises.
127.
We notice,
however, that the stock of restrictive measures has continued to increase since
2008. In fact, the number almost quadrupled from mid-October 2010 to
mid-October 2014. The negative cumulative effect of this on global trade is of
concern to us. My delegation echoes that Members should be striving to resist
protectionist pressures and to exercise restraint on the imposition of new
trade restrictions, as well as to remove existing measures wherever possible. Even
more importantly, we should be working collectively on strengthening and
expanding markets rather than closing them, particularly at a time when there
is a slowdown in world trade and the global economy remains so uncertain.
128.
With regard to
regionalism, we note that its continuing rise and its growing complexity in
terms of coverage represents a significant challenge to the multilateral
system. We agree that Members need to keep working to ensure that regional
trade agreements are operating harmoniously with WTO rules, and are
complementary rather than a challenge to the multilateral trading system.
129.
My Government has
been one of those to have benefited from having its trade policy reviewed this
year. As we stated during our review, we stand firmly behind the multilateral
trading system and strongly support trade liberalization. We also believe that
the successful completion of the Doha Round negotiations is the best possible insurance
against protectionism. The latest developments and the call for Members to get
back on track and move forward in all areas are very encouraging. We must make
every effort to finalize the post-Bali work programme in due time. My
delegation remains committed to working closely with all other Members towards
completing this task.
130.
And last, but not
least, I just want to add that we attach great importance to this monitoring
exercise, which we are convinced does help to improve transparency in the
multilateral trading system. There is no doubt however, that for this exercise
to be of real and lasting value, fuller and broader participation across the
Membership is needed. We call for more Members and Observers to respond to the
Director-General’s request for information, and we would urge those that still
have unverified measures listed in the annexes to the report to provide the
information during the next round of monitoring.
PAKISTAN
131.
First of all, I
express a profound appreciation to the Secretariat’s for compiling developments
in the international trading environment in a timely and objective manner.
132.
The report
reflects a mixed trend of concerns about continuation of trade-restrictive
measures, and at the same time a measure of relief about increasing
trade-liberalizing measures during the period under review. The most
disconcerting fact is that the stock of trade restrictions introduced since
2008 continues to rise, which underlines the need for showing restraint in the
imposition of new measures and to effectively eliminate existing ones. The report
reveals that of the trade-restrictive measures introduced since October 2008,
only 24% have been removed while 76% are still in place.
133.
However, the
report’s conclusion that the overall trade policy response to the 2008 crisis
has been significantly more muted, and that the MTS has acted as an effective
backstop against protectionism – provides a basis for optimism. It is really
comforting that trade-liberalizing measures significantly increased from 107 in
the previous reporting period to 177 in the current reporting period, with a
value of US$1183.4 billion.
134.
Concerns about
increasing protectionism were also reverberated in the European Commission's
annual report on protectionism published on 17 November as the EU Trade
Commissioner said that protectionism damages global value chains; that trade
openness is what we need if we are to keep the recovery going, especially in
times of global economic and political instability.
135.
Although there is
encouraging news of a bright outlook for recovery in the U.S., economic
performance in several other countries and regions continues to dampen
optimism. Related to the IMF’s World Economic Outlook released in October, MD
Christine Lagarde showed concern over the disconnect between the markets and
the real economy as well as divergent monetary policies between the U.S. and
Europe, which appeared to perpetuate a growth gap on both sides of the
Atlantic.
136.
Among other
developments to note is a salutary effect of the discovery of shale oil and gas
that has helped to reduce oil prices. This has the potential of improving trade
balances by reducing the import oil bills. There has been an inexorable link
between oil prices and food prices that has been driving up food prices and
hence overall inflation.
137.
As usual, the
frequency and quantum of trade-remedy measures has been dominated by
anti-dumping actions, and more initiations were recorded than terminations.
These measures are also attributed to have the possibility of tit-for-tat
retaliations which can have an unwholesome impact on the trade sentiment.
138.
Over the long
run, forecasts for world growth and trade have been revised downward, and
economists are predicting that we may have entered a new phase of mediocre
growth due to a continued hangover from the 2008 crisis. Accordingly, this
document rightly urges the Members to show restraint in introducing new
measures and to reduce the stock of existing ones, as well as enhancing
transparency of behind-the-border measures.
139.
Reporting by
non-participating Members will help significantly in improving the coverage and
quality of this exercise.
ECUADOR
140.
Ecuador wishes to
thank the Director General for his report and make a very brief general
statement to emphasize not only the importance of the objectives of the Trade
Policy Review Body mandate within the framework of a Member driven rules based
system, but the positive contribution made by these reports, and the need to
perfect them so as to provide factual information that supplements the
information submitted, discussed and analysed in the respective WTO Committees.
141.
Ecuador also
considers it fundamental to include information on compliance with the
recommendations of the Dispute Settlement Body.
142.
The report
presented by the Director General challenges Members to comply with the rules
that will strengthen the multilateral trading system a system fully supported
by Ecuador, in which transparency is vital for the proper functioning of WTO.
143.
Most of the
issues mentioned in the report in document WT/TPR/OV/17, in relation to my
country, relate to adopted technical regulations.
144.
These regulations
have been raised as trade concerns in the Committee on Technical Barriers to
Trade. My delegation therefore requests that consideration be given to the
replies provided by Ecuador in that Committee, which should be recorded in the
minutes of the respective meetings.
145.
Lastly, we thank
the Secretariat for all the hard work that went into the preparation of this
report.
SWITZERLAND
146.
My delegation
would like first to thank the Director-General for his presentation and the WTO
Secretariat for having produced this latest annual report on trade-related
developments. Once again, it offers a thorough picture of the situation,
problems and challenges we are facing in the area of international trade and
trade policy.
147.
Despite the
importance attributed by Ministers to the TPRB work on monitoring trade and
trade-related measures, we note with disappointment that still no more than 37%
of the Membership (counting the EU and its Member States separately) have
replied to the Director‑General's request for information. The fact that a
large majority of Members continue to withhold information on their measures
undermines the objective of reaching a comprehensive overview of relevant
developments.
148.
More discipline
in this respect is clearly required for the results to become truly
representative and meaningful. In this context, we welcome the fact that the
Secretariat continues to publish the details of the degree of cooperation by
Members and Observers, and we hope that, going forward, substantially more
Members will engage in this exercise.
149.
On the substance
of the report, Switzerland notes with concern that growth of merchandise trade
has continued to slow down and is expected to remain well below its long term
average both in 2014 and 2015.
150.
This development
lends further weight to the Secretariat’s call to Members to show restraint in
the imposition of new trade-restrictive measures and to effectively eliminate
existing ones. Indeed, the continued accumulation of trade-restrictive
measures, especially by G-20 members, is quite worrisome. Repeated commitments
by the G-20 to a standstill on new restrictive measures and to a rollback of
existing ones should be followed by action. Representing about 85% of world GDP
and 80% of world trade, these countries have a particular responsibility in
this regard.
151.
The monitoring of
measures which are potentially detrimental to trade makes a significant
contribution towards containing protectionist pressures. A further
strengthening of the WTO’s role in this respect should therefore be in the
collective interest of all Members.
152.
This being said,
Switzerland strongly believes that trade growth is also hampered by the
extensive use of trade remedies, notably anti-dumping measures. As indicated in
the past, we see with concern that a number of Members, particularly among the
G-20, continue to resort on a large scale to anti-dumping measures as an
instrument of trade policy. Even if some of these measures may comply with WTO
obligations, their widespread use has a chilling effect on world trade, is
hampering structural adjustment, is detrimental to global value chains, weakens
competition policy, and tends to trigger tit-for-tat reactions from trading
partners.
153.
As the
Secretariat’s report recalls, the multilateral trading system can do more to
drive economic growth, recovery and development through liberalization and the
strengthening of rules. With the Bali package, we managed for the first time
since the creation of the WTO to reach a consensus on some important issues of
the Doha Development Agenda, and after the 27 November decisions we are
back on track. Let us build on this success and now rapidly tackle the
remaining work under this agenda, starting with the Post-Bali Work Programme.
THE
RUSSIAN FEDERATION
154.
Russia welcomes
the WTO Annual Report overviewing developments in the international trade
environment and thanks the Director-General for his personal guidance as well
as the Secretariat for its continuous work on monitoring and summing up of the
current trends in the multilateral trading system.
155.
For Russia this
exercise has always been of crucial importance as it contributes to transparency
and predictability of global trade. Our active participation in the WTO
monitoring practices started long before Russia acceded to this Organization
and will be further continued in due and timely course.
156.
We share key
findings of the report and we recognize the concerns of gradual accumulation of
trade-restrictive measures by the WTO economies since 2008. The current state
of global economy abounding with many uncertainties still does not suggest
immediate positive prospects for trade. That adds additional value to our
self-restraint and rollback initiatives against protectionism. In this context,
international and regional fora such as G-20 and APEC set good examples to
follow.
157.
We also regret to
note that this year shows the rise of "economically unmotivated"
restrictive measures in bilateral trade relations, which Russia has always
opposed but was forced to respond to in a retaliatory manner.
158.
At the same time
we are encouraged by indications in the report on some positive trends such as the
growing number of trade-liberalization measures registered this year. We also
concur with the general conclusion that trade-restrictive reaction to the 2008
crisis has been more muted than might have been expected based on the
experience with previous crises. The central role behind this good news belongs
to the multilateral trading system which stands today as the sole universal
mechanism for securing free trade standards and fighting protectionism
globally.
CHILE
159.
We thank the
Director General for his introductory statement and we value the Secretariat's
excellent work in preparing this report, which has become a reference for
assessing the world trade situation and global trade trends both within and
outside this organization.
160.
The report covers
the international trading environment as a whole. The decline in dynamism
undoubtedly has systemic and multiple causes, ranging from the slower growth of
the large economies, the casualization of employment and the reduced share of
labour in output, to the problems that the new Trade Facilitation Agreement
seeks to resolve. It is clear, however, that restrictive measures are a cause
effect that also negatively impacts the dynamism of trade.
161.
In this respect,
I would like to comment on a number of aspects of the report. With regard to
trade restrictions, for instance, it is worrying to see the continuing trend
towards the use of this type of measure. This, together with customary recourse
to anti-dumping measures, adds an element of insecurity to the system.
162.
On a brighter
note, the increase in trade facilitation measures during the same period will
hopefully lessen and reverse the impact of distortion on international trade.
163.
In this
connection, the prompt implementation of the Trade Facilitation Agreement will
help to support our organization's efforts to ensure a broader and more in
depth trade liberalization process.
164.
We note from
point 5.4 that 2014 was the most active year in the area of dispute settlement.
This demonstrates Members' confidence in this pillar. The ever more frequent
use of this instrument may, however, indicate a trend towards non-compliance
with the commitments undertaken by WTO Members, which should be examined.
165.
This body's
greatest value lies in its efforts to increase the transparency and monitoring
of trade policies. We are therefore concerned to see that only around 30% of
Members have responded to the Director General's call to submit information for
the preparation of this report.
166.
It is vital that
Members value the usefulness of these exercises and the quality of this
analysis as a reference for their own efforts in the application of the trade
related public policies deriving from their multilateral commitments.
DOMINICAN REPUBLIC
167. First of all, we wish to thank the Director General and the
Secretariat for preparing this report, which is very thorough and reflects an
economic situation that still gives cause for concern. The report shows that
economic recovery is not yet completely stable and that global economic growth
was irregular and unequal in various major countries. US economic growth
resumed, despite remaining very limited. It fell by 2.1% in the first quarter
of this year, growing again by 4.6% in the second quarter and 3.5% in the third
quarter, to achieve an average growth of 2% in the first nine months of the
year. The unemployment rate fell to 5.8% in October, despite still remaining
high. In the meantime, output stagnated in the euro area and fell sharply in
Japan in the latest period. Economic
activity strengthened in China while Brazil's recession deepened.
168.
The report states
that with global output growth unsteady in the first half of 2014, trade growth
has been equally tentative, particularly in developing economies. The WTO
Secretariat estimated that world trade would grow 3.1% in 2014 and 4% in 2015,
figures that had to be revised downwards. In their latest World Economic
Outlook, the International Monetary Fund also reduced its forecast for real
world GDP growth at purchasing power parity to 3.3% in 2014 (2.6% at market
exchange rates) and to 3.8% in 2015 (3.2% at market rates).
169.
A growth slowdown
in developing economies and a simultaneous (uneven) recovery in developed
countries have produced a notable change in global import demand. Since the
fourth quarter of 2013, the contribution of developed economies to nominal
growth in world merchandise imports has been greater than that of developing
countries for the first time since 2011. On the export side, the contribution
of developing economies turned from negative (0.4%) in the first quarter to
positive (+1%) in the second quarter, while that of developed countries shrank.
This suggests that rising import demand in developed countries fell, which in
turn suggests that this demand is increasingly being satisfied by exports from
developing countries.
170.
It is, however,
of concern to see that the stock of trade restrictions introduced by WTO
Members since 2008 continues to rise. Of the 2,146 trade restrictive measures
introduced by Members since October 2008, only 508 (24% of the total) have been
removed. The total number of restrictive measures still in place now stands at
1,638 (76% of the total).
171.
Members applied
168 new trade restrictive measures during the period between mid‑November 2013
and mid October 2014. This equates to over 15 new measures per month. We
believe that the continuing rise in these measures increases the uncertainty
that remains in the world economy and it is important that the most central
players in the global economy exercise due moderation in applying this type of
measure.
172.
We believe that
Members should pay attention to the cumulative effects of new and existing
trade restrictive measures, and that the G-20 members, who undertook from the
outset of the crisis not to apply measures restricting trade flows, have a
greater responsibility to honour this commitment, in order to generate
confidence in the multilateral system, and to take trade liberalizing
initiatives, even as a means of tackling the world economic crisis that is
still plaguing hundreds of millions of people.
173.
Lastly,
structural changes in growth boosting sectors in China indicate a new trend in
growth performance compared to total world output and total world trade, due to
greater stimulus in China's domestic consumption, which appears to require
fewer inputs of foreign goods and services. This situation should be taken into
consideration in future analyses so as to establish the impact on the global
trade projection.
SINGAPORE
174.
Singapore thanks
the Director-General and the Secretariat for the annual report on Developments in
the International Trading Environment. It is an important complement to the
ongoing country-specific trade policy reviews. Trade monitoring is a key means
of providing transparency in the WTO. It is an important part of the WTO’s
regular work which we must continue to advance.
175.
Even though the
trade policy reaction to the 2008 global economic and financial crisis has been
more muted compared with previous ones, the stock of trade restrictions
introduced since then continues to rise. This is of particular concern in view
of the continued global economic uncertainty and sluggish trade growth. We urge
the WTO Members concerned to remove these restrictions and refrain from adding
new ones.
176.
Despite the best
efforts of the Director-General and the Secretariat at garnering Members’
inputs for this report, the level of response remains at only about one-third
of Members. This is disappointing, especially since it is clear that such
exercises contribute towards a greater understanding of international trade trends,
which all Members benefit from. We strongly urge Members to improve on our
collective participation in future trade monitoring exercises. Where relevant,
we should also proactively provide information on non-tariff measures, such as
behind‑the-border measures, which seem to have become more prominent in recent
years.
177.
Finally, it is
incumbent on WTO Members to make the multilateral trading system responsive and
relevant to global trade developments, including in the areas of trade
liberalisation, rule‑making, and trade monitoring. It is therefore critical
that WTO Members deliver on the General Council decisions adopted on 27
November 2014 with regard to the Bali decisions, to help restore the WTO’s credibility
as the paramount organization on international trade.
JAPAN
178.
First of all,
Japan appreciates the Director-General’s and his team’s hard work for this
annual report. It helps us to understand the current situation regarding trade
and trade-related measures and provides us with a variety of important views on
our fight against protectionism.
179.
In my remarks, I
would like to touch upon the following two points: the current trend of trade
and trade-related measures and the improvement of monitoring.
180.
Firstly, I would
like to comment on the current trend of trade and trade-related measures.
According to the Secretariat, world trade grew slower than expected in the
current reporting period and the trade in goods in 2014 and 2015 will be lower than
the average of the last 20 years. These severe economic circumstances may
cause an increase of protectionism. The total number of restrictive measures
introduced since 2008 and still in place has reached its highest level. It is
necessary for all of us to make our position crystal-clear to fight against
protectionism, exercising the maximum restraint to the introduction of new
protectionist measures and making the utmost effort to eliminate the existing
ones.
181.
Among those
measures introduced in the current reporting period, trade remedy measures
account for almost half of the total number. In particular, in addition to the
anti‑dumping measures, countervailing measures have been on an increasing trend
since 2012. The abuse of trade remedy measures can cause a negative impact on
world trade; therefore the implementation of these measures should be strictly
in conformity with the relevant WTO agreement.
182.
On the other
hand, the number of trade-liberalizing measures significantly increased from
107 in the previous reporting period to 177 in the current period. This is a positive
sign as long as they are consistent with the WTO agreement. We will have to
maintain and strengthen this trend in order to enhance trade liberalization and
further expand world trade, under the multilateral trading system.
183.
Secondly,
regarding the improvement of monitoring, we reiterate the importance of TPRB
monitoring in order to tackle protectionism. Japan strongly supports this
regime and will continue our cooperation for the monitoring.
184.
In the process
for the preparation of the current report, more Members responded to the request
for verification from the Secretariat. That is good news. But, as mentioned by
the Director‑General, still only 37% of the Members provided information before
the verification step. As we stated in the TPRB meeting in July, Japan is
concerned that there has been very little improvement in providing information
for several years. All the Members should actively take part in this process in
order to enhance the transparency of our trade policies and to make this report
comprehensive and more credible.
COLOMBIA
185.
I would like to
thank the Secretariat for preparing this document and the Director General for
presenting it.
186.
Being the last to
take the floor, we would like to be brief and endorse the specific comments on
this document that have been made by most of the previous speakers.
187.
This overview
constitutes an important tool for assessing not only the international trading
environment, but our role, as Members, in the development of trade policies in
this context.
188.
We agree with
previous comments made concerning the importance of maintaining transparency in
this organization through the information provided by Members, and of complying
with the notification commitments resulting from WTO Agreements.
189.
The report's
findings on this issue show that we are still below 50% of the total
Membership.
190.
We also emphasize
the role that this organization has played from the very start in providing
Members with a forum to discuss how trade measures should best comply with WTO
commitments and in guaranteeing the benefits of trade for national populations.
191.
As we have said
on previous occasions, we are fully committed to the multilateral system and
the Doha Development Round. We therefore hope to see the full implementation of
the Bali package and the development of a work plan with a view to concluding
the Doha Development Agenda. This is the main contribution that we can all make
in order to achieve a less distorted and more inclusive international economic
environment.
secretariat
192.
Thank you for your
comments and active participation in this meeting. As the Director‑General
indicated, we will report to him fully your points of view and suggestions. In
particular, from the Trade Policy Review Division, I would like to thank you
for the comments and suggestions that you have made regarding the trade
monitoring exercise.
193.
Of course, we
recognize that the trade monitoring can be improved, in particular in the area
of coverage of the measures and the verification of the reported actions. One
of the unique features of this trade monitoring exercise is that it is the
result of a joint work. We, the Secretariat, and most importantly you, the
Members. And that is why we are pleased that all the participants that took the
floor today called on the entire membership to enhance the participation in
this exercise.
194.
We have heard the
suggestions on how we can improve the methodology, in particular trying to make
more analysis of certain types of measures like TBT or SPS. Also, in
particular, calling the Secretariat to enhance the coverage of
behind-the-border measures.
195.
But to do that we
really need your help, your active participation. If we are to embark on an
analytical exercise, we need to have more information. We cannot base our
analysis only on partial information that is provided by part of the
membership. In that sense, your call for all Members to participate more
actively is really in the direction where we want to move.
196.
There have been
also some suggestions that we will certainly take on board. Some of you mentioned
that probably a list of illustrative measures that have to be notified under
the section on general economic support can facilitate the reporting of such
measures. We will be working together with the trade monitoring team with a
view to have some sort of illustrative list that we can provide to you.
197.
There were also a
couple of other suggestions and comments, in particular from Argentina
regarding the inclusion or rather non-inclusion of certain measures that were
referred to in other WTO Bodies. These will be discussed bilaterally with one
of my colleagues to explain why this was not done.
198.
To summarize, the
Director-General provides you a background paper on which you base your
discussions and your exchange of views. Certainly in our trade monitoring we
may have missed some of the measures but this sort of meeting is the
opportunity for you, all Members, to bring those measures that may not have
been included in the report, or measures that we may probably not have been
able to include in the report, and to raise them in this meeting. This is the
good forum for you to exchange your views and comments regarding these measures
so as to complement what the Director-General provides you in terms of
background note that should serve as a basis for your discussions.
CHAIRMAN'S
CLOSING REMARKS
199.
I would like to
conclude the meeting by thanking the Director-General and the delegations for
their contributions to the exchange of views. I believe that our discussion
today has reaffirmed the importance of the trade monitoring exercise in
providing enhanced transparency of Members' trade and trade-related policies
and measures.
200.
The comments and
issues raised by Members will be, as the Director said, duly transmitted to the
Director-General.
201.
I also take note
of, and I think we should be greatly encouraged by the general commitment among
Members to continue to improve their contribution to and participation in the
monitoring exercise.
202.
Thank you to all
delegations for taking part in this meeting, DDG, the Secretariat and the
interpreters.
__________
[1] Following the meeting, a Corrigendum to the report was issued on 19
December 2014 in document WT/TPR/OV/17/Corr.1.