Tuesday, July 28, 2009
[IWS] WTO: WORLD TRADE REPORT 2009 [22 July 2009]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
World Trade Organization (WTO)
WORLD TRADE REPORT 2009 [22 July 2009]
Trade Policy Commitments and Contingency Measures
http://www.wto.org/english/res_e/publications_e/wtr09_e.htm
or
http://www.wto.org/english/res_e/booksp_e/anrep_e/world_trade_report09_e.pdf
[full-text, 196 pages]
The theme of this year's Report is "Trade policy commitments and contingency measures". The Report examines the range of contingency measures available in trade agreements and the role that these measures play. Also referred to as escape clauses or safety valves, these measures allow governments a certain degree of flexibility within their trade commitments and can be used to address circumstances that could not have been foreseen when a trade commitment was made. Contingency measures seek to strike a balance between commitments and flexibility. Too much flexibility may undermine the value of commitments, but too little may render the rules unsustainable. The tension between credible commitments and flexibility is often close to the surface during trade negotiations. For example, in the July 2008 mini-ministerial meeting, which sought to agree negotiating modalities or a final blueprint for agriculture and non-agricultural market access (NAMA), the question of a "special safeguard mechanism" (the extent to which developing countries would be allowed to protect farmers from import surges) was crucial to the discussions.
One of the main objectives of this Report is to analyze whether WTO provisions provide a balance between supplying governments with necessary flexibility to face difficult economic situations and adequately defining them in a way that limits their use for protectionist purposes. In analyzing this question, the Report focuses primarily on contingency measures available to WTO members when importing and exporting goods. These measures include the use of safeguards, such as tariffs and quotas, in specified circumstances, anti-dumping duties on goods that are deemed to be "dumped", and countervailing duties imposed to offset subsidies. The Report also discusses alternative policy options, including the renegotiation of tariff commitments, the use of export taxes, and increases in tariffs up to their legal maximum ceiling or binding. The analysis includes consideration of legal, economic and political economy factors that influence the use of these measures and their associated benefits and costs.
CONTENTS
ABBREVIATIONS AND SYMBOLS ...............................................................................................................................vii
ACKNOWLEDGEMENTS ................................................................................................................................................ix
DISCLAIMER ........................................................................................................................................................................x
FOREWORD BY THE DIRECTOR-GENERAL ..........................................................................................................xi
EXECUTIVE SUMMARY ................................................................................................................................................xiii
I THE TRADE SITUATION IN 2008-09 ............................................................................................................... 1
A INTRODUCTION ..................................................................................................................................................... 1
B OVERVIEW OF TRADE AND PRODUCTION DEVELOPMENTS IN 2008-09 ...................................... 3
C MERCHANDISE TRADE, VOLUME (REAL) TERMS, 2008 ......................................................................... 5
D MERCHANDISE AND SERVICES TRADE, VALUE (NOMINAL) TERMS, 2008 ................................... 7
II TRADE POLICY COMMITMENTS AND CONTINGENCY MEASURES ............................................. 19
A INTRODUCTION ................................................................................................................................................... 19
B FLEXIBILITY IN TRADE AGREEMENTS ........................................................................................................ 21
1. Economic theories of trade agreements and the role of flexibilities .......................................................... 21
2. Circumstances for suspension of commitments and flexibility measures
built into the WTO agreements .....................................................................................................................30
3. Conclusions .......................................................................................................................................................39
C ECONOMICS, DISCIPLINES AND PRACTICES ........................................................................................... 47
1. Safeguards ......................................................................................................................................................... 47
2. Dumping and anti-dumping measures ..........................................................................................................65
3. Subsidies and countervailing duties ...............................................................................................................84
4. Other selected measures of contingency protection ..................................................................................102
5. Choosing among different measures ............................................................................................................ 114
6. Conclusions ..................................................................................................................................................... 117
D EMPIRICAL EVIDENCE .....................................................................................................................................127
1. Patterns and trends in the use of contingency measures ...........................................................................127
2. Contingency measures and the multilateral trading system ....................................................................142
3. Factors explaining the use of trade contingency measures .......................................................................147
4. The economic impact of contingency measures .........................................................................................152
5. Conclusions .....................................................................................................................................................156
E CONCLUSIONS .....................................................................................................................................................159
BIBLIOGRAPHY .............................................................................................................................................................161
TECHNICAL NOTES ....................................................................................................................................................169
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
World Trade Organization (WTO)
WORLD TRADE REPORT 2009 [22 July 2009]
Trade Policy Commitments and Contingency Measures
http://www.wto.org/english/res_e/publications_e/wtr09_e.htm
or
http://www.wto.org/english/res_e/booksp_e/anrep_e/world_trade_report09_e.pdf
[full-text, 196 pages]
The theme of this year's Report is "Trade policy commitments and contingency measures". The Report examines the range of contingency measures available in trade agreements and the role that these measures play. Also referred to as escape clauses or safety valves, these measures allow governments a certain degree of flexibility within their trade commitments and can be used to address circumstances that could not have been foreseen when a trade commitment was made. Contingency measures seek to strike a balance between commitments and flexibility. Too much flexibility may undermine the value of commitments, but too little may render the rules unsustainable. The tension between credible commitments and flexibility is often close to the surface during trade negotiations. For example, in the July 2008 mini-ministerial meeting, which sought to agree negotiating modalities or a final blueprint for agriculture and non-agricultural market access (NAMA), the question of a "special safeguard mechanism" (the extent to which developing countries would be allowed to protect farmers from import surges) was crucial to the discussions.
One of the main objectives of this Report is to analyze whether WTO provisions provide a balance between supplying governments with necessary flexibility to face difficult economic situations and adequately defining them in a way that limits their use for protectionist purposes. In analyzing this question, the Report focuses primarily on contingency measures available to WTO members when importing and exporting goods. These measures include the use of safeguards, such as tariffs and quotas, in specified circumstances, anti-dumping duties on goods that are deemed to be "dumped", and countervailing duties imposed to offset subsidies. The Report also discusses alternative policy options, including the renegotiation of tariff commitments, the use of export taxes, and increases in tariffs up to their legal maximum ceiling or binding. The analysis includes consideration of legal, economic and political economy factors that influence the use of these measures and their associated benefits and costs.
CONTENTS
ABBREVIATIONS AND SYMBOLS ...............................................................................................................................vii
ACKNOWLEDGEMENTS ................................................................................................................................................ix
DISCLAIMER ........................................................................................................................................................................x
FOREWORD BY THE DIRECTOR-GENERAL ..........................................................................................................xi
EXECUTIVE SUMMARY ................................................................................................................................................xiii
I THE TRADE SITUATION IN 2008-09 ............................................................................................................... 1
A INTRODUCTION ..................................................................................................................................................... 1
B OVERVIEW OF TRADE AND PRODUCTION DEVELOPMENTS IN 2008-09 ...................................... 3
C MERCHANDISE TRADE, VOLUME (REAL) TERMS, 2008 ......................................................................... 5
D MERCHANDISE AND SERVICES TRADE, VALUE (NOMINAL) TERMS, 2008 ................................... 7
II TRADE POLICY COMMITMENTS AND CONTINGENCY MEASURES ............................................. 19
A INTRODUCTION ................................................................................................................................................... 19
B FLEXIBILITY IN TRADE AGREEMENTS ........................................................................................................ 21
1. Economic theories of trade agreements and the role of flexibilities .......................................................... 21
2. Circumstances for suspension of commitments and flexibility measures
built into the WTO agreements .....................................................................................................................30
3. Conclusions .......................................................................................................................................................39
C ECONOMICS, DISCIPLINES AND PRACTICES ........................................................................................... 47
1. Safeguards ......................................................................................................................................................... 47
2. Dumping and anti-dumping measures ..........................................................................................................65
3. Subsidies and countervailing duties ...............................................................................................................84
4. Other selected measures of contingency protection ..................................................................................102
5. Choosing among different measures ............................................................................................................ 114
6. Conclusions ..................................................................................................................................................... 117
D EMPIRICAL EVIDENCE .....................................................................................................................................127
1. Patterns and trends in the use of contingency measures ...........................................................................127
2. Contingency measures and the multilateral trading system ....................................................................142
3. Factors explaining the use of trade contingency measures .......................................................................147
4. The economic impact of contingency measures .........................................................................................152
5. Conclusions .....................................................................................................................................................156
E CONCLUSIONS .....................................................................................................................................................159
BIBLIOGRAPHY .............................................................................................................................................................161
TECHNICAL NOTES ....................................................................................................................................................169
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 10:31 AM
