Liberalising Trade in Textiles and Clothing: A Survey of Quantitative Studies

There is a considerable body of analysis available that aims to quantify the economic and trade effects of textile and clothing market liberalisation. A number of analysts at national and international institutions have provided their assessments. Different tools and approaches have thereby been used to evaluate the impacts of textile trade reform at the regional or global level. Given the economic importance of the textile and clothing sector in some OECD and non-OECD countries and the resulting economy-wide repercussions that changes in the scale and pattern of textile production will tend to trigger, analysis using general equilibrium models has been dominant. The modelling results consistently indicate considerable shifts in textiles and clothing production and trade as the Agreement on Textiles and Clothing (ATC) is implemented. There is pressure for a large-scale reallocation of resources, with production of textiles and clothing expanding in Asian and other developing countries. In parallel, textiles and clothing production in industrialised countries is expected to contract significantly, while imports of textiles and clothing from developing countries increase. Concerning further regional integration, which has played a major role in textiles and clothing trade during the 1990s, the modelling results predict welfare benefits for the participating countries, while trade diversion is expected to adversely affect outsiders. All the reviewed studies foresee increases in global welfare as a result of ATC reform. But the estimates of welfare gains show considerable variation, with expected annual global benefits ranging from $6.5 billion to$324 billion. Some studies predict ATC reform to account for up to two-thirds of all gains from the Uruguay Round, while others put the contribution of textile and clothing liberalisation at merely 5 per cent. There is similar discrepancy with respect to the distribution of welfare gains. A number of analysts see developing countries as the main beneficiaries of ATC reform, while others expect them in the aggregate to lose from the policy changes. There is also variation in the direction and magnitude of expected welfare impacts at the level of many individual developing countries.Textiles, clothing, apparel, trade, MFA, ATC, WTO

AGRO-FOOD PRODUCTS AND TECHNICAL BARRIERS TO TRADE: A SURVEY OF ISSUES AND CONCERNS RAISED IN THE WTO'S TBT COMMITTEE

This study presents a survey of issues and concerns raised in the WTO's Committee on Technical Barriers to Trade, with particular emphasis on discussions related to agro-food products. It thereby aims to provide background information on TBT-related activities during the period 1995- 2001. The participation of OECD and non-OECD countries in the Committee discussions is analysed, and agro-food related TBT issues that might warrant further investigation with respect to their trade and economic effects are identified. The document complements an earlier study on activities related to the WTO's SPS Committee.TBT, technical barriers, standards, agricultural trade, WTO

Production Effects of Agri-environmental Policy Measures: Reconciling Trade and Environmental Objectives

In addition to generating commodity outputs, agricultural production activities affect water, air, and soil quality, influence eco-systems and biodiversity, and shape rural landscapes. Many of these environmental effects exhibit the characteristics of negative or positive externalities or public goods, for which private markets do not exist or are poorly functioning. OECD countries implement a variety of agri-environmental policy measures with the aim of addressing the environmental effects associated with agricultural production. Policy measures include regulations and taxes to contain or prevent environmental harm, information and training programmes to promote environmentally friendly farming practices, and payments that remunerate farmers for environmental services they provide. Over the past 10-15 years, the scope and complexity of agri environmental policies has increased, not least because of growing concerns of society for the state of the environment. In parallel to the rising importance of agri- environmental considerations, agricultural trade policy reforms, in particular through policy changes following the Uruguay Round Agreement on Agriculture, have gradually opened domestic agricultural markets to international competition. Trade barriers, export subsidies, and domestic support have been bound and are being scaled down. In this context of greater international interdependence, there are two related policy debates on the possible impact of environmental standards, programmes, and payments on agricultural production and trade. The first is concerned with the impact of differences of agri-environmental regulations among countries on agricultural production costs and farm competitiveness, and the second with the issue whether and to what extent domestic agri-environmental policies influence international trade. The two policy debates do not have the same prominence in all OECD countries, and in some countries the underlying issues are seen to be of no relevance at all. Yet, the discussions have the potential to influence negotiations on agricultural trade and the environment at the international level. This paper examines several related questions: What are the effects of agri environmental policy measures on agricultural trade? To what extent do agri environmental regulations influence farming costs and international competitiveness? Would an international harmonisation of agri environmental policies increase welfare? Which characteristics might policy measures have to possess in order to be considered minimally trade distorting?Trade and environment, regulations, payments, competitiveness, harmonisation, WTO green box

Trade policy and regionalism in the Central African Republic

This paper reviews the trade policy situation in the Central African Republic (CAR) and identifies a number of key issues and challenges for the country. The focus of the study is thereby on how trade taxes and quantitative restrictions affect the goods sector. The analysis falls into three parts. First, the state of domestic trade policy is described, with particular emphasis on the structure and economic effects of border policies. Then, CAR’s regional integration efforts are examined, including a preliminary assessment of the impacts of the formation of the CEMAC customs union. And finally, some priorities for the attention of policy makers and international donors are identified based on the preceding analysis.Trade, tariffs, border taxes, regional integration, Economic Partnership Agreement

Uganda’s Access to Global and Regional Markets

As a landlocked country in East Africa, Uganda faces two major disadvantages concerning access to foreign markets. It does not have an immediate gateway to low-cost ocean transport, but first has to pass its imports and exports through neighboring countries by road or rail. Nor does it share a common border with an industrialized country that produces the goods and services that Uganda imports and that could absorb a large share of the country’s exports. In this context it is all the more important to fully exploit existing opportunities in regional and global markets, as well as opening new export markets by negotiating trade barrier reductions on a preferential or multilateral basis. These trade barrier-related aspects of regional and global market access are analyzed in this paper. In particular, the discussion reviews market access policy in Uganda and identifies a number of key issues and challenges for the country.Trade, tariffs, regional integration, overlapping agreements, preferences, world markets

Sanitary and Phyto-sanitary Measures and Agricultural Trade: A Survey of Issues and Concerns raised in the WTO's SPS Committee

This document presents a descriptive overview of issues related to trade and sanitary and phytosanitary (SPS) measures, as observed during the implementation of the SPS Agreement. It aims to provide background information on activities in the WTO's SPS Committee during the period 1995-2001, determine the participation of different country groups, and help to identify issues that might warrant further investigation in the context of analysis on the trade and economic effects of SPS measures. Attendance at regular meetings of the SPS Committee has varied from 44 to 70 different delegations. Most OECD countries have always been represented. Yet, half to two-thirds of all WTO members, including a large number of developing country members, have not participated in the discussions at SPS Committee meetings. Indeed, 47 WTO members, including 43 developing countries, did not have a representative at any of the 12 meetings for which information on attendance is available. During regular meetings of the SPS Committee, a total of 105 specific trade concerns have been discussed. Raising an issue makes it possible for countries to attract attention to a particular concern, which might help to avoid disputes between trading partners or potential future trade problems. Of all the specific issues, 27 related to food safety, 38 to animal health, 37 to plant health, and 3 to other SPS issues. Specific trade concerns have been expressed about SPS measures in all 30 OECD countries, and in 18 non-OECD countries, including 15 developing countries. Conversely, 29 OECD countries and 38 non-OECD countries, including 35 developing countries, have raised issues or supported complaints about SPS practices of other WTO members. Fruits, vegetables, and flowers and livestock and livestock products were the product groups most often subject to concerns. In almost a third of all cases, at least a partial solution to the specific trade concern raised was subsequently reported to the SPS Committee. Yet, there might be a number of other concerns that have been resolved through technical exchanges between the affected parties, without this outcome being reported back to the WTO. Even though the transparency disciplines of the SPS Agreement are obligatory for WTO membership, not all countries have so far complied concerning the provision of information on national notification authorities and SPS enquiry points. All OECD countries have reported an enquiry point to the WTO since 1995 and designated notification authorities since 1997, but a significant number of developing countries had not provided this information by the end of 2001. Nevertheless, the number of countries submitting SPS notifications and the number of notified SPS measures increased considerably between 1995 and the end of 2001. All 30 OECD members and 49 non-OECD countries have submitted notifications, with more than two-thirds of the more than 2400 notified SPS measures being reported by OECD countries. More than half of the notified measures were intended to ensure food safety. Up to the end of 2001, there had been nineteen disputes concerning alleged violations of the SPS Agreement. Of these, two had been resolved following consultations, seven had led to the establishment of panels (which in four cases led to the subsequent resolution of the dispute), and ten were still pending. OECD countries have been prominently involved in these SPS disputes. In 16 of the 19 cases, both the country raising an issue and the country concerned were OECD-30 members. In two cases, a developing country invoked dispute settlement procedures against import practices in an OECD country, and in one case developing countries were both the complaining party and the party complained about. Some observers have noted that there seem to be a number of cases where either the substantive obligations of the SPS Agreement or bilateral exchanges in its institutional framework have contributed to regulatory reform. These policy changes might have come about anyway as a result of findings by regulatory scientists that import protocols could be designed in ways to reduce risks to acceptable levels. But the framework of SPS disciplines might have provided assurance that other countries would review their rules and procedures according to the same principles.

Trade Policy Developments in Tanzania: The Challenge of Global and Regional Integration

Over the past two decades, Tanzania has embarked on a marked liberalization of its trade regime. The Government wants this reform process to continue and sees international integration at the global and regional level as a means to achieve higher economic efficiency, productivity and international competitiveness. This study reviews the trade policy situation in Tanzania and identifies a number of key issues and challenges for the country. In particular, the analysis describes the state of domestic trade policy, examines regional integration efforts, and identifies priorities for the attention of policy makers and international donors.Trade; tariffs; effective rates of protection; regional integration; overlapping agreements

1st Report of the Working Group on Standard Development

The initial meeting of the working group on standard development took place at the 1st SAFO-Workshop, September 2003, in Florence. In accordance with the main topic of the Workshop, the discussion was primarily focused on the relationship between socio-economic aspects of the standards and the issue of animal health and food safety in organic farming. The report cover the additional issues discussed in the 1st Working Group meeting in Florence

Sharing Global Governance: The Role of Civil Society Organizations

This report explores the multiple roles and potential of CSOs in international policymaking and examines the strengths and weaknesses of CSOs and state-based organizations in global governance. It looks particularly closely at the resources, access, skills and experience that each group of actors brings to the table. It concludes that the infrastructure used to incorporate CSOs into the United Nations and other multilaterals must be strengthened and expanded if more integrated and effective forms of collaboration are to be developed and outlines policy recommendations how this goal can be accomplished

The Impact of the Terrorist Attacks of 11 September 2001 on International Trading and Transport Activities

In the wake of the terrorist attacks on New York City and Washington, D.C., emergency measures were taken to tighten security at air and seaports as well as land border crossings. Some disruption of trade flows during the immediate aftermath of the attacks seemed almost inevitable, yet additional frictional trading costs due to tighter security have affected trade not only in North America but also world-wide and have potential to continue to do so in the medium to long term. Anecdotal evidence suggests that the short-term business environment of transport operators and trading companies has been affected by new security measures and the increased perception of the risk of terrorist attacks. Businesses faced longer delays at airports, seaports, and land-border crossings, higher expenditures on security equipment and personnel, and augmented insurance fees. There were major disruptions of trade flows in the immediate aftermath of the terrorist attacks, but over time trade operations seemed to have returned towards normal again. Also, flexible responses of businesses and customs services to the new border situation have helped to remove some temporary bottlenecks. Yet, some modest increase in frictional costs due to increased security concerns is likely to persist, even though the exact amount is hard to predict, as general economic developments mask the effect of the terrorist attacks. Some have likened the higher frictional trading costs to additional taxes on business activity or increases in border tariffs. Yet, a comparison with business spending on mandatory pollution abatement equipment seems more appropriate, as the higher expenses for the private sector provide benefits to the general public (higher environmental quality and lower risk of terrorist attacks, respectively), but are generally not accompanied by additional tax or tariff revenues for governments. Not all commodities and countries will be affected to the same extent by the increases in frictional costs. Differences across products are due to varying ratios of transport and insurance costs to goods-value, divergences in prevailing transport modes, and differing roles in the production process. For example, just-in-time deliveries in the automotive industry were markedly affected by delays due to more elaborate customs inspections. Concerning cross-country effects, intra-NAFTA trade was naturally strongly impeded by the tightening of security at US borders, but the trade of other countries with substantial exposure to North American markets, notably imports and exports of Latin American countries, were also significantly disturbed by the longer delays at borders and other frictional cost increases.Terrorism, security, trade, transport, border delays