Gatt

Journal of Economics and International Finance Vol. 3(1), pp. 13-28, January 2 11 !"aila#le online at $ttp%&&'''.academic(ournals.
or)&JEI F I**+ 2 ,--812 .2 11 !cademic Journals
Review
Analysis of the importance of general agreement on tariffs and trade (GATT) and its contribution to international trade
Kossi Ayenagbo*, Josphert Ngui Kimatu, Zhang Jing, idime Nountenin and !ang "ongcheng
/olle)e of 0r#an and En"ironmental *ciences, +ort$east +ormal 0ni"ersity. +o. 12,8 2enmin *treet, /$an)c$un, Jilin 3ro"ince, 3ost /ode 13 24, 3eoples 2epu#lic of /$ina.
!ccepted 5cto#er 2,, 2 1
The establishment of trade organi#ations re$uires a number of pro%isions& 'o(e%er, the negotiators (anted to create an institution in (hich trade issues could be analy#ed on a multilateral basis& ince its enforcement date on )st January )*+,, GATT has gi%en international trade a ne( face& The international trade barely regulated before )*+-, has since then become (ell structured and organi#ed through the adoption of a system of (or. go%erned by general negotiations& This strategy has led to the reduction of tariffs and non/tariffs and settlement of disputes bet(een the in%ol%ed parties& There ha%e been conferences at the ministerial le%el (here e0perts and committee meetings (ere established to address specific problems& e%eral negotiations li.e 1Kennedy round2, 1To.yo round2 and 1 3ruguay round2 ha%e ta.en place since the inception of GATT& ome decisions underta.en in trade negotiations ha%e concerned only the de%eloping countries due to their uni$ue problems in their de%elopment& 'o(e%er, Article 4+ of GATT treaty authori#es regional groupings li.e 5uropean 5conomic 6ommunity (556), 5conomic 6ommunity of !est African tates (567 !A ), as they are constituted as a free trade area, a customs union or community, pro%ided only that these groups do not impose trade barriers (ith the rest of the (orld& Key (ords8 6eneral a)reement on tariffs and trade 6!77, international trade, free mar8et, de"elopin) countries, tariffs.
9NT"7:36T97N International trade rules are not as easy as t$ose )o"ernin) domestic trade. Indeed t$e international trade 'as )o"erned #y t$e la's and re)ulations in force in t$e country .7$e rules of international trade are far more comple9. 7$is comple9ity is due to t$e ur)ent need for eac$ country to protect its national economic space. 7$e a#sence of supranational aut$ority capa#le of imposin) o#li)ations on states 'it$ respect to international trade $as pre"ented t$e e"olution of t$is trade until recently. *tates '$ic$ loo8 only to t$eir o'n self-interests, $a"e al'ays opposed any 8ind of #arriers #ased on international trade. 7$ese #arriers are of tariff and non-tariff types suc$ as pro$i#itions and :uantitati"e
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restrictions. !fter t$e )reat economic crisis of 1-2- and t$e *econd =orld =ar '$ic$ disrupted t$e 'orld, some lar)e-economy countries li8e t$e 0nited *tates, >ritain and ot$ers too8 care of t$e reor)ani?ation of t$e post'ar 'orld. 7$us, t$e 0+ 'as created 'it$ its speciali?ed a)encies, eac$ #ranc$ed out for dealin) 'it$ an acti"ity. !mon) t$ese a)encies, 'e can distin)uis$ t$ose 'it$ a purely economic c$aracteristic, suc$ as t$e international monetary fund (I@F) and international #an8 for reconstruction and de"elopment (I>2A), no' called t$e =orld >an8. 7$e Ba"ana /$arter '$ic$ 'as supposed to lead to t$e creation of t$e international trade or)ani?ation (I75) $as ne"er #een ratified. Bence, t$e )eneral a)reement on tariffs and trade (6!77) remained t$e only multilateral code )o"ernin) international trade. >ased on t$is frame'or8, t$is re"ie' $i)$li)$ts some of t$e contri#utions of t$e 6!77 1-4C after t$ro'in) li)$t on t$e
J. Econ. Int. Financ.
institution itself. ;"5 5NTAT97N, 7"9G9N AN: T'5 <73N:AT97N 7< GATT 7$e 6!77 'as a speciali?ed institution '$ic$ $as economic and tec$nical features. It is a multilateral treaty t$at esta#lis$es a common code of conduct for international trade and '$ic$ pro"ides a mec$anism to reduce and sta#ili?e tariffs and ot$er trade #arriers and to $old consultations on issues related to trade. In t$e 1-3 s, '$en t$e 'orld 'as sufferin) from a serious economic depression, many states tried to find refu)e #e$ind "arious forms of #arriers to protect t$eir economies li8e $i)$ protecti"e tariffs, :uantitati"e restrictions on imports, e9c$an)e controls. Aurin) *econd =orld =ar, it #ecame clear t$at t$ese restrictions 'ould 'ei)$ constantly on t$e 'orld unless "i)orous attempts are made to dismantle and #an t$em. !lon) 'it$ t$e creation of I>2A (currently t$e =orld >an8) and t$e I@F, "arious )o"ernments considered t$e esta#lis$ment of an institution desi)ned to re)ulate trade% t$e international trade or)ani?ation (I75). Aespite t$e fact t$at t$is institution $as ne"er emer)ed, a )roup of t'enty-t$ree countries (ele"en for de"eloped countries and t'el"e for de"elopin) countries accordin) to =75D F5/0*, 1--8) #e)an ne)otiations on tariffs, reac$in) at an a)reement on a set of standards, intended to li#erali?e t$eir trade. 7$ese standards $a"e resulted in t$e )eneral a)reement on tariffs and trade (6!77), '$ic$ entered into force in January 1-48 (6ene"a, since 1-41). 7$e 6!77 remained t$e only multilateral instrument )o"ernin) international trade until 1--1, t$e time '$en t$e 'orld trade or)ani?ation (=75) 'as formed. 7$e 6!77 'as t$e tan)i#le result of all efforts in t$is direction, ot$er'ise stated in t$e resolution of international trade pro#lems. 7$e startin) point lies in t$e !tlantic /$arter and ot$er treaties concluded #et'een t$e !llies t$emsel"es durin) t$e 'ar to see8 to)et$er a tradin) system #ased on non-discrimination and aimin) at ac$ie"in) $i)$ standards t$rou)$ free and fair trade of )oods and ser"ices. 3ursuin) t$is )oal, e"en lon) #efore t$e end of t$e 'ar, t$e 0nited *tates, 0nited Ein)dom and ot$er ma(or tradin) po'ers of t$e time discussed t$e esta#lis$ment of international or)ani?ations to tac8le pro#lems of post-'ar re)ardin) t$e mo"ement of capital, in"estment and trade. 7$e foundations of t$e 6!77 can #e summari?ed as follo's% a) rates s$ould normally #e t$e only instrument used to protect domestic industriesD #) :uantitati"e restrictions (pro$i#itions & limitations) are )enerally pro$i#ited (6!77 !rt. 9i) ... #ut may in certain circumstances #e permittedD c) tariffs s$ould #e transparent, predicta#le and sta#leD d) commitments tariffs comprise of a Flist of concessionsG (*er)io, 2 8). 7$e 6!77 'as ori)inally considered an interim arran)ement, pendin) t$e entry into force of t$e Ba"ana /$arter and t$e esta#lis$ment of t$e I75 as a speciali?ed institution of t$e 0nited +ations. >ut circumstances $a"e #een suc$ t$at t$e 6!77, since 1-48, remained t$e only international instrument '$ic$ laid do'n rules of conduct for international trade and employin) a lar)e proportion of 'orld trade. 5nly ori)inally t'enty-t$ree, t$e num#er of contractin) parties $as rapidly )ro'n o"er t$e years. In 1-88, it is an e9$austi"e list of t$ese countries. !mon) real contractin) parties, t$ey 'ere (*out$ !frica, Federal 2epu#lic of 6ermany, !nti)ua and >ar#uda, !r)entina, >an)lades$, >ots'ana, >ra?il, >ur8ina Faso, >urundi, /ameroon etc). 7unisia remained t$e only country '$ic$ $as acceded to t$e 6!77 pro"isionally (/$ristian, 2 ,). !s re)ards to countries applyin) t$e 6!77 ri)$t a'ay or immediately, amon) t$em t$ey 'ere (!l)eria, !n)ola, >a$amas, >a$rain, >runei Aarussalam, /ape Verde, Aominica, 0nited !ra# Emirates, Fi(i, 6renada, 6uinea >issau, E:uatorial 6uinea etc). @ost of t$ese countries (real contractin) parties, country '$ic$ $as acceded to t$e 6!77 pro"isionally and countries applyin) t$e 6!77 ri)$t a'ay or immediately) #ecame mem#ers of =75 from 1--1 to 1--C '$ile ot$ers $a"e remained o#ser"ers until @ay 1--8 as !l)eria, /ape Verde, *eyc$elles and 7on)a (=75, F5/0*, 1--8). 7$e $i)$est decision-ma8in) structure in 6!77 'as t$e session of contractin) parties usually $eld once a year. Aecisions 'ere made #y consensus and not #y "ote. >ut on rare occasions '$en t$e "ote s$ould ta8e place, eac$ contractin) party $ad one "ote. Aecisions 'ere t$en ta8en #y simple ma(ority, e9cept for important issues '$ere t$e t'ot$irds ma(ority is re:uired. >et'een sessions of t$e contractin) parties, t$e /ouncil of 2epresentati"es 'as responsi#le for sendin) current matters and pressin) pro#lems. It meets at least si9 times a year. /ommittees are esta#lis$ed to $andle tec$nical pro#lems. 7$e 6!77 secretariat is t$e administrati"e system #y e9cellence. @ost of meetin)s t$at t$e 6!77 or)ani?es 'ere done at its $ead:uarters in 6ene"a. ;rinciples of GATT )*+7$e 6!77 1-4C 'as a multilateral treaty 'it$ ri)$ts and o#li)ations. It is #ased on t$e follo'in) fundamental principles% a) +on-discrimination. 7$is principle in"ol"es t$e pro"ision of most fa"ored nation (@F+) under '$ic$ eac$ contractin) party must )i"e any ot$er contractin) party t$e same #enefits as t$ose t$at it )i"es to anot$er party or country. It also implies pro$i#ition to disad"anta)e any party to t$e detriment of ot$er parties. In addition, si)natory countries promise not to su#(ect imported products to more se"ere treatment t$an national treatment in ta9 and re)ulation, #) t$e o#li)ation on
parties to consider tariffs as only permissi#le means of protectin) domestic production. 7$us, t$e use of :uantitati"e restrictions is )enerally condemnedD c) consultation #et'een t$e contractin) parties is a rule t$at
!yena)#o et al.
relates to all t$e arran)ements. It pro$i#its measures pu#lis$ed #y surprise 'it$out ta8in) into account t$e interests of ot$ers. *o t$ere are rules of procedures '$ic$ nota#ly include information e9c$an)e, consultation and dispute settlement. 50ceptions to the principles E9port su#sidies are contrary to fundamental principles of 6!77. /oncessions $a"e $istorically yet #een made in t$is area, particularly t$e European community, #ut it 'rapped up its common politics in t$e 1-, s (Jean-@arie >oisson, 1-,4). 7$e te9t of t$e 6!77 treaty contains pro"isions '$ic$ e9pressly 'ai"e some of t$ese principles. 7$us, t$e )eneral a)reement aut$ori?es t$e esta#lis$ment of re)ional )roupin)s on t$e sole condition t$at t$ese )roups do not pose trade #arriers 'it$ t$e rest of t$e 'orld. 7$ese clusters can #e formed as ?ones of free trade, customs union and community. 7$e 6!77 ta8in) account of different le"els of de"elopment, $as installed to t$e #enefit of de"elopin) countries special measures to ena#le t$em to raise t$eir standard of life. 7$us, t$ese countries are allo'ed to use measures ot$er t$an tariffs to protect t$eir domestic production. 7$ese measures may #e :uantitati"e restrictions, :uotas and e"en pro$i#itions. >ut as 'e $a"e already said, t$ese measures s$ould not #e unilateral and edited #y surprise. 7$ey must #e ta8en in a)reement 'it$ ot$er contractin) parties. 7$e su#-re)ional )roupin)s listed are su#(ect to t$e pro"isions of !rticle 24 of t$e 6!77 treaty. Indeed, t$is article $i)$li)$ts t$e interest of closer inte)ration of national economies to ac$ie"e t$e esta#lis$ment of free trade. 7$erefore, it allo's t$ese )roups to dero)ate from t$e principle of most fa"ored nation, pro"ided it meets strict criteria under '$ic$ t$e arran)ements must facilitate trade #et'een countries 'it$out creatin) #arriers a)ainst ot$er countries. It is in order to ac$ie"e fi9ed )oals t$at, t$e 6!77 $as laid do'n t$e principles '$ic$ 'e $a"e discussed a#o"e.
7$e o#(ecti"es of t$e )eneral a)reement are set fort$ in t$e pream#le, '$ere t$e contractin) parties reco)ni?e t$at F... t$eir relations in t$e commercial and economic matters s$ould #e directed to'ards raisin) standards of li"in), ensurin) full employment and a lar)e and steadily )ro'in) "olume of real income and effecti"e demand, t$e full utili?ation of )lo#al resources and increased production and trade of products and to t$e pro)ressi"e de"elopment of t$e economies of all contractin) parties. G 7$is sentence of t$e pream#le of t$e 6!77 treaty, is sufficient in itself to demonstrate $o' am#itious t$e mission t$at t$e )eneral a)reement $as set. Het us e9amine in detail some of t$ese o#(ecti"es. "A9 9NG 7< TAN:A": 7< =9>9NG 7$e #asic o#(ecti"es of t$e 6!77 are to $a"e $i)$er standards of li"in) and pro)ressi"e de"elopment of all contractin) parties (3art IV of 6!77). 7$erefore, from t$e initiati"e of 0+/7!A, t$e 6enerali?ed *ystem of 3references (6*3) $as #een #rou)$t on to ta8e account of im#alances in de"elopment #et'een countries (Jac:ues, 2 ,). 7$e )eneral a)reement aims, t$rou)$ trade li#erali?ation, at pro"idin) access to all productions 'orld'ide. 7$e remo"al of tariff and non-tariff #arriers allo's any producer, '$ere"er it is, to e9port its products as it sees fit. It also allo's any consumer to supply $is needs from any mar8et. 0nimpeded e9ports and imports can only contri#ute to raisin) standards of li"in) of indi"iduals. >ut it s$ould #e noted t$at t$is only #enefits countries 'it$ $i)$ e9port capacity. Ae"eloped countries t$at $a"e lar)e un#eata#le industries are t$e only masters. *o a #asic factor in settin) t$e o#(ecti"es and )oals of 6!77 and '$ic$ t$erefore s$ould al'ays #e #orne in mind '$en mention is made of t$em is t$at, t$is a)reement forms part of a #ody of treaties '$ic$ emer)ed #et'een 1-41 and 1-1 '$ic$ loo8ed to desi)n a ne' economic order for post'ar international society.
A6'95>9NG <3== 5?;=7@?5NT

7$e ac$ie"ement of full employment #ein) closely lin8ed to t$at of t$e full use of 'orld resources cannot #e ac$ie"ed, unless t$ere is a furt$er trade li#erali?ation. Indeed t$e situation is $urtin) autar8ic de"elopment, in t$at t$e capacities and potentials of eac$ producin) countries are constrained #y its #oundaries. 7$is also implies t$at, e"ery country s$ould $a"e e"ery possi#le "ariety of industries. >ut t$e reality is t$at, no country $as all t$e factors of production. *ome countries, ric$ in ra' a)ricultural and minin), do not $a"e trained manpo'er and appropriate tec$nolo)y. 5n t$e contrary, a country t$at possess ad"anced tec$nolo)y is lac8in) (or almost) of ra' materials. 7$e
7AJ56T9>5 7< T'5 GATT In )eneral terms, t$e )oals and o#(ecti"es of a treaty $a"e al'ays #een considered of special rele"ance )i"en t$at t$ey e9press t$e common 'is$es and aspirations of t$ose '$o reac$ a formal a)reement at an international le"el (2euter, 1-C ). 7$e aims and o#(ecti"es of )eneral a)reement $a"e played a "ital role as t$e only reference for limitin) t$e reac$ and (urisdiction of suc$ an 5r)ani?ation. 7$ese o#(ecti"es and )oals not only limit its contents #ut also decide on t$e directi"es to follo' durin) its de"elopment. 7$e central o#(ecti"e of t$e )eneral a)reement is t$erefore pro)ressi"e trade li#erali?ation (/o##, 1--4).
implementation of full use of )lo#al resources must necessarily pass t$rou)$ t$e li#erali?ation of trade. 7$is li#erali?ation is $ampered #y national or re)ional considerations. Indeed all states $a"e t$e duty to protect t$eir national economic space. It is t$is desire to protect t$e national economic space '$ic$ pre"ents t$e de"elopment of trade. 7$erefore, t$is is '$y t$e 6!77 'as esta#lis$ed as a 8ey o#(ecti"e of trade li#erali?ation for reducin) or remo"in) tariffs and non-tariff #arriers.
;"7G"5 9>5 :5>5=7;?5NT 7< 567N7?95 67NT"A6T9NG ;A"T95
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*ince t$e contractin) parties a)ree to e9c$an)e amon) t$emsel"es t$eir products, t$eir capa#ilities and producin) potential 'ill t$erefore #e de"eloped. 7$ere 'ill t$us #e a lar)e )lo#al mar8et in '$ic$ all countries can freely sell t$eir products. /ountries can increase t$eir production, if t$ey 'ant #ecause t$ey 'ill $a"e no more pro#lems from lac8 of opportunities. It s$ould #e noted t$at t$e de"elopment of trade arran)ements only #enefits countries 'it$ a $i)$ production capacity. /ountries '$ic$ do not $a"e lar)e capacities are rele)ated to t$e last place #ecause t$ey are forced to e9port only ra' materials '$ose prices fluctuate, accordin) to t$e 'illin)ness of t$e de"eloped countries. 7$erefore, t$e parties $a"e ta8en special measures to de"elop t$e economy and trade in de"elopin) countries.
?3=T9=AT5"A= T"A:5 N5G7T9AT97N *ince its inception, t$e 6!77 $as or)ani?ed se"eral multilateral ne)otiations. !ccordin) to =75 (=75, F5/0*, 1--8), t$e first meetin) too8 place in 6ene"a, *'it?erland in 1-4C, t$e second at !nnecy in France in 1-4- '$ere t$e contractin) parties e9c$an)ed some 1, tariff concessions, t$e t$ird in 7or:uay, En)land, in 1-1 durin) '$ic$ t$e contractin) parties e9c$an)ed some 8,C tariff concessions, '$ic$ $a"e reduced #y 21I t$e tariff le"els of 1-48, t$e fourt$ in 6ene"a #et'een 1-11 and 1-1, (t$is round 'as completed in @ay 1-1, and resulted in tariff cuts representin) a#out 2.1 #illion 0.*. dollars), t$e fift$ round of 6!77 ne)otiations $as #een so named in $onor of Aeputy 0.*. *ecretary of *tate '$o proposed t$e openin)% Aou)las Aillon. Haunc$ed in 1-, and completed in 1-,2, t$ey led to tariff concessions on international trade 'ort$ 4.- #illion dollars and $a"e also included ne)otiations related to t$e creation of t$e EE/, t$e si9t$ in 6ene"a 1-,4 to 1-,C (Eennedy round), t$e se"ent$ in 7o8yo in 1-C3 to 1-C- (7o8yo round), ei)$t$ in 0ru)uay from 1-84 to recent (0ru)uay round). !mon) all t$ese ne)otiations, t$e last t$ree are t$e most important. *o our study $ere 'ould focus on t$e last t$ree ne)otiations. K5NN5:@ "73N: () *B+/) *B-)
+amed in $onor of 0.*. 3resident, t$e si9t$ round of 6!77 ne)otiations #e)an in 1-,4 and ended in 1-,C 'it$ tariff reductions on international trade 'ort$ 4 #illion dollars (=75, F5/0*, 1--8). 7$e e9perience )ained durin) t$e tariff ne)otiations of 1-, to 1-,1, '$ic$, li8e all pre"ious ne)otiations $ad #een conducted on t$e principle of ne)otiatin) a product, led contractin) parties to t$e conclusion t$at traditional tec$ni:ues of tariff ne)otiations 'ere no more adapted to c$an)in) conditions of 'orld trade and t$e possi#ility of adoptin) ne' tec$ni:ues includin) t$at of t$e )eneral linear reduction could #e en"isa)ed. =$en trade ministers launc$ed t$e FEennedy roundG trade ne)otiations in @ay 1-,3, t$ey 'ere a#le to as8 directions aimin) at t$e reduction of tariff and non-tariff trade #arriers on a lar)e scale and 'it$ a #roader scope. 7$e ministers a)reed, amon) ot$er t$in)s% i) t$e o"erall ne)otiations 'ere to ta8e place startin) in 1-,4 'it$ t$e 'idest possi#le participationD ii) ne)otiations s$ould co"er all 8inds of products, includin) a)ricultural products and ra' materialsD iii) ne)otiations s$ould co"er #ot$ tariff #arriers and non-tariff #arriersD i") t$e ne)otiations s$ould pro"ide accepta#le conditions of access for a)ricultural products to 'orld mar8etsD ") for most industriali?ed countries, t$e tariff ne)otiations in t$e industry sector s$ould #e #ased on a plan for su#stantial reductions linear 'it$ minimal e9ceptions t$at are prone to confrontation and (ustification. >ut '$ere t$e differences #et'een tariff le"els are si)nificant, t$e reductions 'ill #e #ased on t$e special rule of )eneral and automatic applicationD "i) efforts s$ould #e made to reduce #arriers on e9ports from de"elopin) countries. 7$e @inisters also a)reed t$at ne)otiations #et'een t$e de"eloped countries are #ased on t$e principle of reciprocity and t$at de"eloped countries s$ould not e9pect suc$ reciprocity from de"elopin) countries. =$en ne)otiations opened in @ay 1-,4, t$e rate of 1 I 'as accepted as a $ypot$esis for t$e 'or8in) of determinin) t$e o"erall rate of linear reduction. 7$ey 'ere fifty states to ta8e part in t$e 'or8 '$ic$ constituted t$e ma(ority of de"elopin) countries. 7$e EE/, no' E0, attended t$e conference and ne)otiated as a sin)le entity. In mid-@ay 1-,C, t$e Airector 6eneral 'as a#le to announce t$at t$e essential elements $a"e #een ne)otiated successfully. 7$e final conclusion 'as reac$ed June 3 , 1-,C '$en t$e participants $ad si)ned t$e Final !ct, aut$enticatin) le)al instruments arisin) from t$e conference. 7$ese le)al instruments specified t$e international o#li)ations t$at t$e participatin) )o"ernments committed t$emsel"es to respect. !part from tariff concessions, separate a)reements 'ere ne)otiated (a)reements on )rain, c$emicals and t$e anti-plumpin)). 3rotocols '$ic$ 'ere si)ned, aut$ori?in) t$e accession of four ne' countries to 6!77, t$ey 'ere% !r)entina, Ireland, Iceland and 3oland. Hi8e t$e case study% 3romotin) trade interests t$rou)$
!yena)#o et al.
6!77&=75 ne)otiationsD t$e FEennedy roundG of trade ne)otiations mar8ed t$e #e)innin) of defensi"e strate)ies orc$estrated #y many de"elopin) countries. 7$e 2ound, '$ic$ #e)an in 1-,4 and ended in 1-,C, esc$e'ed t$e item #y item approac$ of t$e pre"ious fi"e rounds, preferrin) instead to adopt, for t$e first time, across t$e #oard percenta)e tariff reductions. 7$is approac$ 'as percei"ed #y many de"elopin) countries, t$e /ari##ean amon) t$em, as a direct t$reat to t$eir protected, assured mar8et. 7$is perception amon) t$e /ari##ean countries later to #ecome t$e J/J in t$e !frican, /ari##ean and 3acific (!/3) countries - 'as to e9ert an o"er'$elmin) influence on all future ne)otiations '$ere success meant defendin) turf to a"oid furt$er erosion of preferences. !fter t$e closin) of t$e FEennedy roundG in 1-,C, it 'as only in1-C3 t$at t$e ne' ne)otiations 'ill #e)in in 7o8yo, Japan. It 'as t$e F7o8yo roundG. T7K@7 "73N: () *-C/) *-*) 7$e multilateral trade ne)otiations under t$e auspices of 6!77 'as opened in *eptem#er 1-C3 at a meetin) of @inisters $eld in 7o8yo. 7$e se"ent$ round, launc$ed in t$e Japanese capital, sa' t$e 6!77 addressin) not only tariffs #ut also non-tariff #arriers. 5ne $undred participants $a"e e9c$an)ed concessions in t$e form of tariff reductions on international trade in e9cess of 3 #illion dollars. !)reements $a"e #een concluded, inter alia, in t$e fields of su#sidies, import licensin), t$e "aluation and t$e fi)$t a)ainst dumpin). +inety-nine countries, '$ose le"els of de"elopment and economic systems are "ery different and '$o are not all 6!77 mem#ers, $a"e participated in t$ese ne)otiations. 7$ese are t$e industriali?ed countries of =estern Europe and +ort$ !merica, t$e relati"ely less industriali?ed countries li8e !ustralia and +e' Kealand, countries of Eastern Europe and t$e entire ran)e of de"elopin) countries, from least de"eloped to more de"eloped ones. 7$ese ne)otiations, called F7o8yo roundG 'ere more e9tensi"e and detailed t$an any t$at preceded t$em. 7$ey 'ere desi)ned not only to reduce or eliminate tariffs and non-tariff #arriers to trade, #ut also to s$ape t$e multilateral tradin) system and international trade relations durin) a period t$at 'ould spill 'ell into t$e ne9t decade. 5t$er differences also distin)uis$ t$e F7o8yo roundG ne)otiations% t$e relati"e 'ei)$t of ma(or po'erful economic in international trade $a"e indeed si)nificantly c$an)ed. 7$e European /ommunities #ecame t$e main #usiness entity in t$e 'orld, and economic pro)ress of Japan 'as suc$ t$at it #ecame one of t$e top t$ree tradin) nations. !lso, t$e F 7o8yo roundG ne)otiations sa' t$ree economic po'ers, namely t$e 0.*., t$e European /ommunity and Japan, ta8e t$e lead in ne)otiations and lar)ely determine t$e direction, pace and content. 7$e #i) difference compared to earlier ne)otiations
concerned de"elopin) countries. For t$e first time in multilateral ne)otiations of 6!77, t$e pro#lems of t$ese countries played a prominent role commensurate 'it$ t$eir )ro'in) economic and political international affairs, as 'ell as t$eir o'n importance and 'ei)$t of participation in t$e ne)otiations. 3articipants focused on issues suc$ as a)riculture, tropical products, tariff, nontariff measures, su#sidies and counter"ailin) duties, tec$nical #arriers to trade, tec$nical assistance to de"elopin) countries and ot$ers. 7$e F7o8yo roundG 'as preferentially treatin) tariffs and non-tariffs, '$ic$ may #e )ranted to de"elopin) countries so t$at t$ey can a)ree #et'een t$emsel"es a le)al permanent element of t$e system of international trade. 7$e F7o8yo roundG ne)otiations $ad t$e credit for $a"in) proposed a ne' definition of customs "alue. *ince lon), e"ery country $ad t$eir conception of t$e customs "alue. 7$is 'as detrimental to international trade #ecause all t$ese countries do not $a"e t$e same idea. 7$erefore, t$e 6!77 )a"e itself t$e duty to $armoni?e t$e concept of "alue. !fter t$e F7o8yo roundG, t$e F0ru)uay roundG occurred in 1-84. 3"3G3A@ "73N: () *,+) 7$e trade ministers of mem#er countries of 6!77 launc$ed t$e ei)$t$ round of multilateral ne)otiations in 3unta del Este (0ru)uay)D ne)otiations $a"e ne"er e"er co"ered suc$ an important amount of t$emes. 7$e successful ne)otiation of t$e F0ru)uay roundG in Aecem#er 11, 1--3 and t$e openin) of mar8ets resultin) from t$is latest round of 6!77 ne)otiations, '$ic$ is also t$e most am#itious, 'ere e9pected to #oost )lo#al income #y L 1 #illion up in t$e year 2 1 (=75, F5/0*, 1--8). >e)un in 1-84, trade ne)otiations called t$e F 0ru)uay roundG are mo"in) no' to t$e final conclusions. @r. !rt$ur Aun8el (Airector 6eneral of 6!77) reco)ni?ed durin) t$e mont$ of !pril 1-- t$at, it is difficult at t$is sta)e to find points of con"er)ence on t$e actual su#stance of trade ne)otiations under t$e F0ru)uay roundG in ei)$t mont$s prior to t$eir conclusion. >ut $e tempered $is "erdict #y t'o findin)s% one $undred countries, parties transactin) 'orld'ide, $a"e pled)ed to ne)otiate seriously, and t$e acti"ities of eac$ ot$er s$o'ed t$at, t$ere 'as no' a "ery )ood collection of parameters t$at )o"ern t$e ne)otiations. F7$ere is t$erefore no place neit$er for satisfaction or pessimism,G @r. Aun8el said durin) a press conference after a t'o-day meetin) of t$e 7rade +e)otiations /ommittee (7+/) '$ic$ o"ersees t$e t'o strands of t$e F0ru)uay roundG )oods and ne' sectors (ser"ices, intellectual property, in"estments). 7$e Airector 6eneral of 6!77 $as confirmed t$at t$e t'o most difficult issues of #ar)ainin) 'ere t$ose of te9tiles and a)riculture, areas '$ere $e 'as ironic a#out tradin) nations of t$e 'orld Fsinnin) for 31 and 4 yearsG
and '$ere t$e sta8es 'ere enormous. !)riculture opposes supporters of t$e a#olition of all production support and e9port, includin) t$e 0nited *tates and t$ose '$o consider t$is approac$ unrealistic as t$e current E0 &EE/. =as$in)ton and >russels s'allo' in t$ose supports sums estimated )lo#ally at some , million dollars a year. !s for te9tiles, some producers in t$e 7$ird =orld call for t$e early repeal of t$e a)reement of t$e protectionist @F! (multi-fi#er arran)ement), '$ic$ strictly )o"erns t$e past 1, years, $alf of 'orld trade. 7o @r. Aun8el, anot$er point is "ital for t$e sur"i"al and stren)t$enin) of multilateralism% t$e de"elopment of a Fsystem on certain and solid dispute resolution G. It is o#"ious t$at t$e "ulnera#ilities t$at e9ist in t$is area are often t$e prete9t for t$e use of reprisals of unilateral measures or attempts for #ilateral re)ulations. In $is approac$, t$e Airector 6eneral of t$e 6!77 $as $ad at least t'o reasons to #e encoura)ed% i) t$ere is Ftotal !)reementG #et'een t$e ne)otiators to s8etc$ #efore July 1-- , '$ic$ $e called Ft$e profile of t$e o"erall pac8a)eG. 7$e remainin) time s$ould #e de"oted to refine t$e details and translate t$e ac:uired in clear and le)al te9ts. Be did not rule out t$at in case of deadloc8 on certain points, t$e trade ne)otiations committee 'ould #e con"ened in special sessionD ii) t$e si)nificant economic c$an)es occurrin) in t$e 'orld, #ot$ in t$e East as t$at in some Hatin !merica and !frica, accentuate t$e need for a stron) multilateral system and )i"e more dept$ to t$e F0ru)uay roundG. @r. Aun8el said t$at at least forty countries around t$e 'orld consider t$at, t$e stren)t$enin) of t$is system is essential to t$eir )ro't$ and de"elopment (*tatement #y t$e Airector 6eneral of 6!77 reported #y !F3, !pril 12, 1-- ). 7$e )oal pursued #y t$e 6!77 ne)otiations is to foster t$e emer)ence of international trade t$rou)$ t$e reduction or elimination of tariff and nontariff #arriers. !)riculture $as played a decisi"e role in t$e initiation and t$e e9tension of t$e F0ru)uay roundG #eyond t$e deadlines ori)inally set (Jean-@arie >oisson, 1--4). !fter t$e failure of ne)otiations in @ontreal (1-- ), t$en in >russels (Aecem#er 1--1), '$ile t$e t$eoretical maturity of t$e F0ru)uay roundG is fast approac$in), t$e *ecretary 6eneral of 6!77, !rt$ur Aun8el, proposed a draft of an a)reement on a)riculture made up of t'enty items, '$ic$ s$ould ser"e as a #asis for final ne)otiations of t$e F0ru)uay roundG (Aun8el, 1--1). 67N 7=9:AT97N AN: "5:36T97N 7< TA"9<< 5ne of t$e main acti"ities of t$e 6!77, '$ic$ is laid do'n in !rticle 28 #is of t$e a)reement, 'as to or)ani?e conferences in order to ne)otiate t$e reduction and sta#ili?ation of tariffs. 7$ese conferences are intended to promote international trade #y su#stantially reducin) t$e le"el of tariff protection and allo'in) some trade or)ani?ation 'it$ t$e assurance t$at t$e ri)$ts tradin) 'ill not suddenly #e increased. 7$ey $a"e resulted in a reduction or consolidation of duties applied #y most de"eloped countries on industrial products (includin) many of particular interest to de"elopin) countries). =$ile many de"elopin) countries $a"e a)reed durin) t$e ne)otiations on tariffs to reduce or consolidate some of t$eir costs, most of t$e concessions $a"e #een, as it 'as in t$e nature of t$in)s, )ranted #y de"eloped countries. 7$e clause of most-fa"ored nation ens$rined in !rticle I of t$e )eneral a)reement, $o'e"er, $as t$e effect of e9tendin) t$e #enefits of t$ese concessions to all contractin) parties. +e)otiations #et'een t$e de"eloped countries 'ere formerly #ased on t$e principle of full reciprocity of concessions. Ae"elopin) countries 'ere )ranted on a reciprocal #asis a num#er of concessions, particularly in t$e initial tariff conferences. Bo'e"er, it is also 'idely accepted t$at t$e principle of reciprocity as applied #et'een de"eloped countries is not appropriate in respect of de"elopin) countries and at t$e meetin) at t$e ministerial le"el of @ay 1-,3 '$ic$ launc$ed t$e idea of t$e FEennedy roundG, it 'as formally reco)ni?ed t$at Fno effort #e spared to reduce #arriers to e9ports from de"elopin) countries #ut de"eloped countries cannot e9pect to recei"e reciprocity from t$e de"elopin) countriesG. 0ntil no', t$e tec$nical #asis for tariff conferences 'as mainly product #y product tradin). >ut t$ere is reason to #elie"e t$at t$e performance of t$is met$od 'ill diminis$. !ccordin)ly, ministers a)reed, '$en t$ey launc$ed t$e FEennedy roundG, t$at t$eir appearance in tariff ne)otiations 'ould #e #ased on a met$od for reducin) )eneral linear ri)$ts 'it$ limited e9ceptions and special rules '$ere t$ere is si)nificant disparity in tariff le"els. 7o prepare a plan for tariff ne)otiations t$at meets t$ese conditions, it 'as a)reed to ta8e as a 'or8in) $ypot$esis, a rule of linear reduction of 1 I. Its application 'ould lead to $al"in) t$e ri)$ts of t$e ma(ority of tariffs in industriali?ed countries, t$e reduction of '$ic$ 'ould #enefit t$e de"elopin) countries. It s$ould #e noted t$at t$is 'ould #e a futile effort to try to reduce t$e tariff ri)$ts, if t$ere is no consensus on t$e concept of "alue. !lso t$e 6!77 )a"e a definition of customs "alue to allo' international trade to spea8 t$e same lan)ua)e. !rticle C, '$ic$ 'as t$e startin) point, states t$at Ft$e customs "alue of imported )oods must #e real, t$at is, t$e "alue at '$ic$ t$ey are soldG. ! declaration of intent 'as si)ned in 1-C3. In t$is statement, it 'as stated t$at t$e ne' "alue not to #e #ased on ar#itrary or fictitious "alues, #ut on criteria consistent 'it$ commercial practices. Finally, t$e a)reement 'as si)ned in 1-C-, durin) t$e trade ne)otiations of t$e F7o8yo roundG and implemented in June 1-8 , in t$e countries of t$e EE/ under t$e current reference EE/ 2e)ulation 1224&8 . /urrently, t$e re)ulation is si)ned #y most tradin) partners of t$e current E0&EE/. For de"elopin) countries, a num#er of safe)uards are pro"ided and a transitional
11
period of de"elopment ad(usted. 5ne of t$e main o#(ecti"es of t$e
12
/otonou !)reement si)ned #et'een t$e EE/&E0 and !frican, /ari##ean and 3acific is to ac$ie"e t$e pro)ressi"e $armonious inte)ration of t$ese (E0-0+). Bo'e"er, t$e E/5=!* countries, meetin) in /otonou in 1-83, did not accept t$e ne' definition #ecause it remained in fa"or of de"eloped countries, suppliers in most cases, $a"in) at t$eir disposal lar)e industries (production series) capa#le of )i"in) un#eata#le prices. /ustoms in de"elopin) countries 'ould not reco)ni?e t$e customs "alue of t$e transaction "alue 'it$out $a"in) t$orou)$ly and #efore analy?ed t$eir effects on t$eir economies and finances. 7$e ne' definition of "alue $as remained un$eeded in t$e E/5=!* countries '$ic$ still use t$e "alue defined #y 2e)ulation 8 3&,8. For t$e )eneral a)reement, t$e customs "alue of imported )oods is t$e transaction "alue, t$at is, t$e price actually paid or paya#le #y t$e #uyer to t$e seller. 7$is price is only increased #y some elements listed in !rticle 8 of 2e)ulation namely% commissions, #ro8era)e fees, transportation costs, license fees etc1. 5nly after t$e $armoni?ation of t$e definition of customs "alue, t$at t$e 6!77 may claim to act positi"ely on tariffs. 5t$er'ise, it 'ould purely and simply fall on deaf ears. "5?7>A= 7< N7N/AA""95" TA"9<< 5ne of t$e fundamental pro"isions of )eneral a)reement is t$e )eneral pro$i#ition of :uantitati"e restrictions under !rticle 11. It is clear from t$e pro"isions of !rticle 11 t$at, :uantitati"e restrictions are in principle pro$i#ited. It s$ould #e noted $o'e"er t$at t$is pro$i#ition is not a#solute. 7$e rule $as some e9ceptions. 7$e main e9ceptions to t$is rule are t$ose t$at allo' countries, under 'ell defined conditions (and more ri)orous in de"eloped countries), to resort to restrictions on imports to protect t$eir reser"es in case of difficulties relatin) to t$eir #alance of payments. In addition, for e9ample '$en it is impractical to use tariff measures, de"elopin) countries can ma8e use of :uantitati"e restrictions to protect de"elopin) industries. 7$e pro"isions applica#le to t$e case (!rticle 18 section /) stipulate t$at any de"elopin) country, t$at $as notified its intention to apply suc$ restrictions to products t$at are not su#(ect to tariff concessions, $as t$e faculty to apply 'it$in t$irty days of notification, unless t$e contractin) parties in"ite it to enter into consultations 'it$ t$em. In t$is case, t$ey 'ill )i"e t$eir appro"al in t$e proposed measure, if it is esta#lis$ed t$at t$ere is no furt$er action consistent 'it$ t$e normal rules of t$e )eneral a)reement for ac$ie"in) t$e de"elopment )oal tar)et. /ountries t$at apply import restrictions for #alance of payments reasons are re:uired under t$e a)reement to enter into consultations 'it$ t$e contractin) parties (eac$ year in t$e case of t$e de"eloped countries and e"ery t'o years in t$e de"elopin) countries) a#out t$e nature of
t$e difficulties associated 'it$ t$eir #alance of payments, alternati"e correcti"e measures amon) '$ic$ t$ey can c$oose and t$e potential impact of t$ese restrictions on t$e economies of ot$er contractin) parties. 7$ese import restrictions, 'idespread in t$e aftermat$ of t$e *econd =orld =ar, are today less and less used. 7$e 6!77 $as 'or8ed $ard to )et rid, from t$e contractin) parties, all discriminatory measures '$ic$ $indered international trade. <A>7"AA=5 ?5A 3"5 673NT"95 A@ T'5 GATT <7" :5>5=7;9NG
7$e increasin)ly ur)ent c$aracter of pro#lems relatin) to economic de"elopment and trade in de"elopin) countries, '$ic$ $as #een $i)$li)$ted in t$e Ba#erler report prepared at t$e re:uest of t$e 6!77, $ad #een reco)ni?ed #y trade ministers at t$e meetin)s $eld in 1-1C and 1-18. !n emp$asis 'as made to e9amine t$ese pro#lems in t$e pro)ram for t$e e9pansion of international trade, t$at contractin) parties $ad launc$ed immediately after t$e ministerial meetin) of 1-18. 7$ree committees 'ere esta#lis$ed to implement t$e pro)ram. 7$ey $ad to deal 'it$, first, t$e issue of ne' multilateral ne)otiations, t$e second, of t$e pro#lems of a)ricultural trade and finally, t$e t$ird, of t$e increase in e9port earnin)s of de"elopin) countries. !mon) t$ese t$ree committees is t$e t$ird committee t$at comes to e9clusi"ely loo8 after t$e pro#lems of de"elopin) countries on a systematic and increasin)ly open met$od 'it$ t$e 8ey milestones #ein)% i) identification of #arriers to trade #y processin) product #y productD ii) continuin) efforts to remo"e t$ese #arriersD iii) parallel e9tension of t$e product #y product approac$ to t$e )eneral study of de"elopment plans and potential e9portD i") consideration of ot$er measures to increase e9ports (e.)., preferences, #usiness information ser"ices and trade promotion). @any people re(oice t$e initiati"es ta8en #y Europe in international trade. !s t$e *ecretary 6eneral of 0+, Eofi !nnan $as 'elcomed t$e E0Ms initiati"e FE"eryt$in) #ut !rmsG, '$ic$ pro"es to $im t$at Europe is really a system of international trade fair in '$ic$ poor countries are )i"en a real possi#ility to e9port to )et out of po"erty2. 7otal imports from all #eneficiary countries increased #y 8.-I, since t$e entry into force of t$e initiati"e (from 12.- to 14.1 #illion Euros). 7$e commercial #enefits t$at /ommon'ealt$ de"elopin) countries o#tain from Fimperial preferencesG "ary accordin) to t$eir economic structure and composition of t$eir trade flo's. 7$ese #enefits, '$ic$ one tends to under"alue t$e importance, 'ere #rutally illustrated durin) t$e first attempts #y >ritain to (oin t$e European Economic /ommunity (EE/). It is t$us, for e9ample, t$e preferences a)reed #y 6reat >ritain - and to a lar)e e9tent #y /anada on imports of su)ar, #ananas, citrus
2
FC Course of Customs procedures
Article by General Secretary Kofi Annan in the Financial imes !arch "#2$$1
!yena)#o et al.
13
and rum '$ic$ are important to t$e /ari##ean, t$ose of cocoa for 6$ana and +i)eria, t$ose of to#acco for t$e @ala'i, t$ose products of li)$t industry, includin) te9tiles, for India and 3a8istan. !lso 6$ana, India, 3a8istan and +i)eria $a"e e9perienced serious concerns for t$eir e9ports, due to t$e possi#ility t$at 6reat >ritain eliminates /ommon'ealt$ preferences to adopt t$e common e9ternal tariff of t$e EE/ (/ommon @ar8et, 1-,1). 0nder t$e pressure of e"ents, $o'e"er, suc$ as t$e accession of many 7$ird =orld countries (o"er C ) to t$e 6!77 and t$e creation of t$e 0nited +ations conference on trade and de"elopment (0+/7!A), '$ic$ for a time seemed to #ecome t$e latterMs )reat ri"al, =estern countries $a"e accepted t$e principle of non-reciprocity in t$eir trade relations 'it$ t$e 7$ird =orld. 7$us one of t$e rules for t$e conduct of t$e FEennedy roundG (1-,4 to 1-,C) too8 t$e form of a special effort of de"eloped countries to reduce tariffs on products of particular interest to e9porters from de"elopin) countries 'it$out 'aitin) for an e:ui"alence in reciprocal concessions (>asic instruments and @iscellaneous Aocuments, 13t$ supplement). 7$ese tariff reductions 'ere, $o'e"er, to #e e9tended on a nondiscriminatory #asis 'it$ all countries #enefitin) from t$e treatment of t$e most fa"ored nation. *i)nificant pro)ress $as #een made in t$is direction durin) t$e FEennedy roundG, especially as re)ards to tropical products and industrial ra' materials. 3references s$ould #e )ranted, 'it$in t$e possi#le e9tent, 'it$out discrimination for all countries in de"elopin) items for all semi-finis$ed and manufactured )oods. !s for e9istin) preferences, t$ey s$ould #e remo"ed )radually, as ot$er international measures 'ould pro"ide #eneficiary countries 'it$ at least e:ui"alent #enefits (6eneral principle +o. 8, 0+/7!A, 1-,4). 7$e o#(ecti"es of t$e ne' preferential arran)ements as set #y 2esolution 21 (J5B+*5+, B.6.) and adopted at t$e second 0+/7!A /onference in +e' Ael$i in 1-,8, are increased e9port earnin)s, industrial promotion and t$e acceleration of economic )ro't$ of de"elopin) countries. In fact, since t$e de"eloped countries a)reed to enforce t$eir national systems, despite t$eir persistent disa)reements on t$e #asic elements of a )enerali?ed, issue of preferences is #ecomin) an inte)ral component of #usiness strate)y of ma(or economic po'ers. 7$us, t$e 0.*. administration $oped to apply its tariff proposals, to for)et some'$at t$e )ro'in) protectionism at $ome. 0nfortunately, t$ese same protectionist pressures in t$e /on)ress are li8ely to seriously delay t$e implementation of, or ot$er'ise (ust (eopardi?e, t$e e9istence (Journal of /ommerce (@arc$ 2-, 1-C1)). For its part, t$e EE/ decided to ta8e t$is paralysis of t$e !merican administration to create t$e ima)e of a li#eral #usiness entity, out'ard loo8in) and a'are of its responsi#ilities to'ards t$e 7$ird =orld (Europe, 1-C1 and 7$e Journal of /ommerce, 1-C1). 7$us, it seems t$at t$e preferential )enerali?ed community offer can #e put into effect in July,
1-C1 'it$out re:uirin) parallelism from t$e 0nited *tates. It 'ould #e same in Japan. 7$e 6!77 rules reco)ni?e t$at t$e )o"ernments of de"elopin) countries, in implementin) t$eir pro)rams and economic de"elopment policies, may #e re:uired to pro"ide assistance to ne' industries and emer)in) or e9pandin) e9istin) industries and, t$at t$is can ta8e t$e form of safe)uard measures temporarily restrictin) imports. >ecause t$e application of suc$ restrictions could $a"e a ne)ati"e effect on t$e interests of e9portin) countries, it is su#(ect to strict conditions (6!77, 1--4, !rticle NVIII% *ection /). *ome preferential arran)ements e9ist #et'een *pain, 3ortu)al and its o"erseas territories as 'ell as #et'een t$e 0nited *tates and t$e 3$ilippines ('$ose p$ase is planned for 1-C4), t$e /anal Kone and 3anama 7rust 7erritories in t$e 3acific. !ustralia, mean'$ile, implemented a system of limited preferential tariff :uotas for de"elopin) countries in 1-,1 (6!77, >asic Instruments @iscellaneous Aocuments, 14t$ *upp.). "5?7>9NG 7A TA6=5 7< T"A:5 7$e t$ird panel focused its main efforts on increasin) t$e e9port earnin)s of de"elopin) countries. In doin) so, it $as accumulated an e9tensi"e literature on trade #arriers and trade flo's and, incidentally, $elped to identify areas '$ere e9port potential is #ein) formed in de"elopin) countries. 7$e approac$ of t$e 7$ird /ommittee 'as to e9amine t$e products in )roups. 7$e committee e9amines a particular )roup of products, ma8es recommendations and t$en tries to remo"e #arriers to trade t$at $a"e #een identified. It t$en proceeds to anot$er )roup. In t$is 'ay, products t$at are of interest to de"elopin) countries are come in and come in still more numerous amount in t$e field of e9amination of t$e t$ird committee '$ic$ 'as a#le to study t$e o#stacles to trade affectin) a ran)e of more #roader articles. 7$e /ommittee Ms in"esti)ation is no' spread to $undreds of tariff of t$e >russels +omenclature. 7$e t'o parties $a"e discussed t$e first report of t$e 7$ird /ommittee at t$e meetin) t$ey $eld in 7o8yo in +o"em#er 1-1- and recommended t$at, Ft$e contractin) parties, especially de"eloped countries, re"ie' customs duties, fiscal duties and t$e c$ar)es, :uantitati"e restrictions and ot$er measures t$ey are applied to, in order to facilitate a rapid e9pansion of e9port earnin)s of de"elopin) countriesD t$is e9pansion 'ould allo' de"elopin) countries to #e less dependent on forei)n aid, stren)t$en t$eir economies and accelerate t$eir de"elopmentG. 7$e 7$ird /ommittee $as continued to direct its attention to trade #arriers and $as added ne' products to t$e list of t$ose it e9amines. !t t$e same time, it #e)an to #roaden its scope, to introduce ot$er issues suc$ as trade promotion and study of de"elopment plans. 7o'ards t$e end of 1-,1, it
14
presented to t$e contractin) parties a special report '$ic$ 'as su#mitted to @inisters '$en t$ey met in +o"em#er 1-,1. 7$e most important outcome of t$e meetin) of @inisters is t$e declaration concernin) t$e promotion of trade in de"elopin) countries. 7$e contractin) parties a)reed t$at t$eir )o"ernments 'ould commit t$emsel"es to o#ser"e t$e e9tent possi#le t$e principles underlyin) t$e Aeclaration, to reduce in t$e near future #arriers to e9ports from de"elopin) countries. 7$ese principles and certain facts relatin) to tariff and non-tariff #arriers affectin) access to mar8ets are set fort$ in t$e Aeclaration under t$e follo'in) $eadin)s% :uantitati"e restrictions, tariffs, ta9 la' nature, trade commodities. 2emem#er t$at, it is difficult to assess t$e effects of )enerali?ed tariff preferences on t$e e9port earnin)s of countries in t$e de"elopin) 'orld. 7$ese effects depend lar)ely on t$e psyc$olo)ical and economic impact on t$e "olume of in"estments in t$ose countries. *ome economists $a"e calculated t$at t$ese e9ports could increase #y a#out L 1 #illion per year (Jo$n 3I+/0*, 1-,8). 7$e implementation of decisions of t$e contractin) parties and t$e searc$ for practical measures to t$at end $a"e led to t$e esta#lis$ment, to'ards t$e end of 1-,2, of a pro)ram of action in ei)$t points t$at t$e @inisters adopted in )eneral, su#(ect to certain points in t$eir meetin) in @ay 1-,3. 59G'T/;79NT ;"7G"A? 5 TAA=9 '5: A@ T'5 GATT 7$e first ma(or concerted efforts #y mem#er countries of 6!77 to promote, on a multilateral #asis, t$e e9pansion of trade in country de"elopment, led to t$e adoption #y t$e @inisterial meetin) in @ay 1-,3 of a O3ro)ram of actionP in ei)$t points. 7$e main recommendations relatin) to tariffs aimed% duty-free tropical products, t$e elimination of tariffs on primary products, t$e reduction and elimination of tariff #arriers t$at $inder e9ports of semi-products and products manufactures from less de"eloped countries. 7$e results of t$is O pro)ram action P $a"e lar)ely disappointed t$e $opes it $ad created (6!77, 1-,3). 7$e a)enda $as si)nificantly contri#uted to en$ancin) trade li#erali?ation. It re"ol"es around ei)$t points '$ic$ are% i) Ae"eloped countries s$ould not introduce any ne' tariff or non-tariff #arrier to trade e9port of de"elopin) countries for products '$ic$ it is esta#lis$ed t$at t$ey are of interest particularly for t$ose countries D ii) Quantitati"e restrictions on imports of products from de"elopin) countries t$at are contrary to t$e pro"isions of t$e )eneral a)reement 'ill #e a#olis$ed 'it$in one yearD iii) !dmission free of tropical products in de"eloped countries must occur #efore Aecem#er 31, 1-,3 D i") 7$e de"eloped countries '$ic$ must eliminate tariffs on primary products occupy an important place in t$e trade of de"elopin) countriesD ") 7$e industriali?ed countries must also adopt an ur)ent timeline for reduction and elimination of tariff #arriers to e9ports of semi-finis$ed manufactured products from de"elopin) countries, pro"idin) t$at current tariffs 'ill #e reduced #y at least 1 I 'it$in t$ree years to come D "i) Ae"eloped countries s$ould )radually reduce import duties and internal ta9ation on products deri"ed '$olly or mainly in de"elopin) countries, in order to #e remo"ed #y Aecem#er 31, 1-,1D "ii) Ae"eloped countries t$at maintain t$e a#o"e o#stacles 'ill $a"e to report to t$e 6!77 *ecretariat in July of eac$ year, on t$e measures t$ey $a"e ta8en t$e pre"ious year, to implement t$ese decisions and measures t$ey intend to ta8e o"er t$e ne9t t'el"e mont$s to e9pand access to mar8ets for de"elopin) countriesD "iii) 7$e contractin) parties s$ould also, ur)ently consider adoptin) ot$er measures to facilitate t$e efforts of de"elopin) countries to di"ersify t$eir economies, stren)t$en t$eir capacity e9port and increase re"enue from t$eir sales a#road. For de"elopin) countries, t$e first se"en points of t$e pro)ram only pro"ide a minimum pro)ram and t$e ei)$t$ point demands, to ac$ie"e t$e common o#(ecti"e '$ic$ is t$e stron)est and fastest increase in e9port earnin)s of all de"elopin) countries, affirmati"e action ot$er t$an remo"in) #arriers to trade (7$e 2ole of 6!77 in t$e Field of 7rade and Ae"elopment, 6ene"a, @arc$ 1-,4, p. 2,). 7$e 6!77 $as also ta8en action on some tropical products, especially cotton.
T"7;96A= ;"7:36T 7ropical products $old a predominant place on t$e list of products studied #y t$e 7$ird /ommittee. 7$e committee conducted a detailed e9amination of t$e o#stacles facin) t$e e9pansion of e9ports of t$ese products and it $as $i)$li)$ted in t$is re)ard, t$e ad"erse effects of $i)$ tariffs and $ea"y internal ta9es '$ic$ are le"ied in t$e importin) country. *ince t$en, t$e 6!77 $as paid particular attention to t$e study of trade in tropical products. 7o t$is end and follo'in) t$e proposed duty-free tropical products t$at +i)eria 'as presented at t$e @inisterial @eetin) in +o"em#er 1-,1, it esta#lis$ed a panel in early 1-,2. 7$e )roupMs mandate 'as% F6i"en all t$e factors relatin) to current pro#lems and future international trade in tropical products, it is necessary to consider 'ays of o"ercomin) t$e difficulties faced #y least de"eloped country e9porters of t$ese products and of ma8in) appropriate proposals G (7$e 2ole of 6!77 in t$e Field of 7rade and Ae"elopment, 6ene"a, @arc$ 1-,4, p. 2C). 7$e tas8 of t$e panel reflects t$e 'ay t$e 6!77 considers issues t$at trade in commodities in )eneral poses to de"elopin) countries. Its approac$ to t$ese pro#lems is #road, and ta8es into account all rele"ant factors relatin) to trade
11
and economic de"elopment. 7$e panel discussed t$ese issues in t$eir #roader aspects,
1,
lin8in) t$e price considerations and conditions of access to considerations relatin) to production and consumption, future prospects, t$e o#stacles to trade, t$e effects of t$e a#olition of preferential a)reements on t$e countries t$at are currently en(oyin) it and t$e opportunity to offset t$e ad"erse impact, suc$ a measure 'ould lead to t$ose countries, suc$ as pro"idin) financial assistance and encoura)in) ot$er types of production for e9port. 7$e 6!77 $as studied "ery carefully t$e issues relatin) to certain tropical products li8e cocoa, coffee, #ananas, oilseeds and "e)eta#le oils, tea, tropical tim#er. T"A:5 9N 67TT7N T5DT9=5 6i"en t$e e"olution of international trade in cotton te9tiles, t$is sector of 'orld trade $as #een t$e su#(ect of special attention. ! lon)-term a)reement came out on international trade in cotton te9tiles. 7$is a)reement aims at allo'in) t$e )ro't$ of international trade in cotton te9tiles '$ile a"oidin) t$e effects of disruption in a "ital sector of t$e economy of de"eloped and de"elopin) countries. 7$e importin) and e9portin) countries $a"e 'elcomed t$e idea of a lon)-term a)reement and $a"e considered it prefera#le to any alternati"e. 7$e a)reement pro"ides opportunities '$en t$ere is disruption of mar8et or t$reat of mar8et disruption, accordin) to t$e definition )i"en in an anne9 to t$e a)reement. 7$e miti)ation measures must include some annual )ro't$ of imports. !ll current restrictions in importin) countries must #e p$ased out. Ae"elopin) countries attac$in) )reater importance to t$e pro"isions of t$e a)reement, includin) t$ose concernin) t$e disruption of mar8ets, are strictly o#ser"ed. =$en in Aecem#er 1-,3, t$e committee of cotton te9tiles $as conducted its first compre$ensi"e re"ie' of t$e implementation of t$e a)reementD it adopted conclusions on t$is and ot$er issues relatin) to t$e interpretation and t$e implementation of t$e a)reement. In t$e case of 6!77 and te9tiles, t$e first t$in) to #ear in mind is t$at t$ese le)al systems mainly o#ey t$e interests of t$ose states '$ic$ #rin) a#out suc$ re)ulations and '$ic$ in a )i"en moment $ad sufficient stren)t$ to ac$ie"e t$eir proposals 'it$out $ardly ad(ustin) t$em. 7$ese states as can #e seen from #ot$ t$e ne)otiations and t$e te9ts t$emsel"es, did not $a"e t$e application of economic t$eories suc$ as t$e interests of t$e free mar8et as t$eir )oal in furt$erin) t$e de"elopment of international society. 7$is can #e seen not only from t$e 6!77 te9t #ut also from t$e maintenance and in some cases t$e impro"ement of pri"ile)ed positions in t$e sp$ere of international trade 'it$ t$e ideolo)ical function of la' used as a useful su#-product. In t$e case of te9tiles '$ere de"eloped countries $ad lost t$eir competi"ity in t$e ma(ority of products, t$e o#(ecti"e 'as e9actly t$e re"erse% to cancel t$e effects t$at a policy #ased in t$ese comparati"e ad"anta)es
could produce, )i"en t$at t$ey 'ould #rin) a#out an end to its non-competiti"e industries in t$at sector. 5n t$is point, 2o#ertson correctly states t$at%
F
e9perience since t$e 1-1 s $as s$o'n t$at, any de"elopin) country t$at ac$ie"es success in e9portin) to industrial countries must e9pect to find t$at access to t$ese mar8ets 'ill #e restricted G (3atterson, 1-,,D Eo(ima, 1-CC). "5G97NA= G"73;9NG <A>7"5: A@ T'5 GATT In !rticle 24 t$e te9t of t$e )eneral a)reement reco)ni?es t$e need for t$e inte)ration of national economies to #etter yields. 7$ese )roups promoted #y t$e 6!77 may ta8e t$e form of a ?one of free trade, a customs union or a community. *ince t$e inception of t$e 6!77, t$ese )roupin)s 'ere formed $ere and t$ere, meetin) t$e aspirations of eac$ re)ion. 7$ese )roups are no' in lar)e num#ers. 7$ey are not "ery detailed and $a"e different le)al c$aracteristics. For clarity and #re"ity, 'e s$all not discuss all t$ese pro)rams. 2at$er 'e 'ill focus only on t$e study of some e9amples. 53"7;5AN 567N7?96 67??3N9T@8 556 !fter t$e *econd =orld =ar, t$e !merican *ecretary of *tate for Forei)n !ffairs 6eor)e @ars$all, launc$ed a "ast pro)ram of reco"ery in European countries ruined #y 'ar. 7$e plan 8no'n as t$e @ars$all plan 'as t$e source of t$e EE/. >ut t$e *o"iet 0nion and ot$er popular democracies $ad refused t$at !merican aid. 7$e treaty esta#lis$in) t$e European Economic /ommunity 'as si)ned in 2ome in 1-1C and t$us, #ecame 8no'n as t$e 7reaty of 2ome. Initially, only si9 states, mem#ers of t$e community increased to t'el"e. 7$ey are >el)ium, Hu9em#our), France, +et$erlands, t$e Federal 2epu#lic of 6ermany, Italy, 0nited Ein)dom, 3ortu)al, 6reece, *pain, Ireland and Aenmar8. 7$e treaty came into force on 1 January 1-18 and 'as su#mitted for consideration #y t$e contractin) parties at t$e t'elft$ session, '$ic$ 'as to decide on t$e conformity of t$e treaty to t$e pro"isions of !rticle 24 of t$e )eneral a)reement. It is reco)ni?ed t$at t$e details of many important features of t$e 7reaty of 2ome are to #e decided #y t$e institutions of t$e community and it is impossi#le at t$is sta)e to consider t$e terms in relation to t$e pro"isions of t$e )eneral a)reement. 7$e contractin) parties $a"e t$erefore a)reed t$at multilateral consuls could #e of necessity #et'een t$e community and t$e contractin) parties '$o feel a))rie"ed #y t$e specific measures ta8en #y t$e community. ! 'or8in) committee 'as esta#lis$ed to study pro#lems t$at may arise from t$e com#ination of o"erseas territories 'it$ t$e EE/, '$ic$ suc$ pro#lems
!yena)#o et al.
1C
'ould $inder t$e trade of ot$er contractin) parties of t$e 6!77. !t eac$ session of t$e contractin) parties, t$e representati"e of t$e community commission s$all report on t$e de"elopment of community acti"ities and decisions ta8en in trade. It 'as also noted t$at all future arran)ements #et'een t$e EE/ and ot$er states 'ere su#(ect to t$e re"ie' of t$e contractin) parties. 7bEecti%es and functioning of the 556 >y esta#lis$in) t$e EE/, t$e si)natory countries of t$e treaty 'ere intended to promote $armonious de"elopment of economic acti"ities t$rou)$out t$e community. 7$e treaty of t$e EE/ aims to create a $omo)eneous economic entity - it 'as planned to create a common mar8et and t$e )radual appro9imation of economic policies of mem#er states. 2e)ardin) t$e customs le)islation in particular, t$e constitution of t$e community #ased on t$e formation of a customs union comprisin)% i) Elimination #et'een mem#er states of customs duties and :uantitati"e restrictionsD ii) 7$e esta#lis$ment of a common customs tariffD iii) 7$e esta#lis$ment of a common a)ricultural policyD i") t$e esta#lis$ment of a common commercial policyD ") 7$e appro9imation of national le)islation and t$e creation of a community la'D "i) 7$e appro9imation of ta9 la's. In t$e years t$at follo'ed t$e creation of t$e common mar8et, t$e community $as entered into "arious association a)reements 'it$ many countries, mostly European. 7$ese association a)reements $a"e resulted in t$e implementation of ne' "ery important custom re)ulations. In t$e same "ein, t$e esta#lis$ment from 1st July 1-C1 of t$e system of tariff preferences for de"elopin) countries $as c$an)ed to considera#ly trade relations #et'een t$ese countries and t$e EE/, and leads t$e implementation of a ne' re)ulation. 7$ere are areas in '$ic$ t$e common mar8et $as #rou)$t profound c$an)es in t$e la's and custom re)ulations. =it$out )oin) into details, 'e 'ill only see t$e le)al acts issued #y t$e council and commission of t$e community '$ic$ are t$e resources a"aila#le to t$ose #odies to ac$ie"e t$e o#(ecti"es set in particular #y t$e 7reaty of 2ome. 7o ac$ie"e t$e pro)ressi"e $armoni?ation of la's, re)ulations and administrati"e pro"isions, mem#er states of t$e council and commission of t$e community, s$all adopt re)ulations and )uidelines. 2e)ardin) re)ulations, t$ey are of le)al community #y e9cellence. 7$e re)ulations '$ic$ supplement t$e pro"isions laid do'n #y t$e treaties are directly applica#le t$rou)$out t$e territory of t$e community 'it$out any inter"ention #y national aut$orities. In eac$ of t$e mem#er states, utilities and indi"iduals are su#(ect to t'o le)al systems% national le)islation and re)ulatory community. 7$e most important rules are made #y t$e /ouncil of @inisters proposed #y t$e commission. 7$e latter in turn adopts t$e re)ulations. !s re)ards to t$e )uidelines, t$ey pose no directly
applica#le rules. 7$ey define t$e )oals and commit t$e mem#ers to amend t$eir national le)islation in t$e direction indicated, #ut lea"in) to t$em t$e c$oice of means. 5t$er cate)ories of le)al acts less important t$an t$e precedin) can also apply t$e customs. 7$ey are decisions, recommendations and opinions, (ud)ments and resolutions% i) t$e decisions are sent to a )o"ernment, a company or an indi"idual. 7$ey fulfill a "ery specific situation and $a"e t$e force of la'D ii) ad"ice and recommendations% t$ese acts )i"e a solemn c$aracter to t$e steps ta8en #y t$e council or t$e commission, #ut t$ey are not le)ally #indin) on mem#er statesD iii) (ud)ments of t$e court of (ustice ensure compliance 'it$ t$e la'. 7$e court interprets and applies t$e treaty pro"isions, re)ulations and )uidelinesD i") resolutions of t$e council are t$e "ie's of t$e council on a )i"en pro#lem. 7$ey are not #indin) on mem#er states and t$ese can only #e inspired from. 7$e community $as concluded 'it$ many countries of t$e association, a)reements to promote trade #y reducin) tariffs on imports in eac$ contractin) party. 7$ese a)reements may esta#lis$ #et'een t$e community and t$e states concerned eit$er a customs union or a free trade a)reement. Ret some lar)e po'er countries 'orry a#out preferential arran)ements ne)otiated #y t$e EE/ 'it$ a lar)e num#er of !frican and @editerranean countries. 7$e trend to'ards re)ionali?ation of trade amon) 7$ird =orld countries and industriali?ed countries $as contri#uted to increased feelin)s of frustration and protectionist forces in t$e 0nited *tates '$o $a"e not $idden on some occasions t$eir intention to $a"e resort to trade retaliation a)ainst t$e EE/ (7$e Journal of /ommerce, 1-,-D Auty, 1-C ). For its part, /anada is #ecomin) more 'orried a#out t$e prospects of increased isolation and t$e ris8 of #ein) dra'n completely into t$e !merican or#it. In +o"em#er 1-C , t$e @inister of Industry and /ommerce, Jean-Huc 3epin, said% F'e are concerned a#out t$e proliferation of preferential arran)ements ne)otiated #y t$e EE/ 'it$ a lar)e num#er of !frican and @editerranean countries. 7$ere is a serious ris8 t$at t$e e"entual accession of t$e 0nited Ein)dom to t$e EE/ 'ill )i"e rise to similar discriminatory arran)ements 'it$ many de"elopin) /ommon'ealt$ countries. ! discrimination on t$e $emisp$eric #asis 'ould lead to a concentration of economic acti"ity t$at 'ould #enefit only a fe' #loc8s in e9tendin) t$eir sp$ere of economic influence G (@inister of Industry and /ommerce, /anada, 1-C ). In some measures, industriali?ed countries $a"e not #enefited from t$eir proposals to t$e 7$ird =orld to settle t$eir old scores as noted #y Jeune (1-,-). For some superpo'ers, it is actually t$e use of an instrument of )enerali?ed trade discrimination to limit or eliminate selecti"e and re)ional trade discrimination. 7$is, $o'e"er, does not :uestion t$e le)al #asis of relations #et'een =estern countries and t$e 7$ird =orld, since it is an autonomous act 'it$ no contractual
18
o#li)ation, e"en if t$e le)al frame'or8 of t$e 6!77 s$ould #e adapted #ecause of an e9ception to t$e principle of nondiscrimination. 7$e Airector-6eneral of t$e 6!77 considers t$at t$is de"elopment 'ill lead to a multilateral tradin) system at t'o le"els% FI see a situation no' de"elopin) '$ere, for some timeD a 8ind of t'o-sta)e system of nondiscriminatory treatment may e9ist in t$e tradin) 'orld. !s a foundation 'ould remain t$e )enerali?ed most fa"orednation tariff treatment for ailin) 6!77 countries and, #uilt upon t$is as a 8ind of temporary superstructure, #asically non-discriminatory tariff preferences #y de"eloped for de"elopin) countries measures of t$is sort, represent an important ne' element in international tradin) relations$ips '$ic$ t$e multilateral system of trade must accommodate in a positi"e and realistic 'ay. 7$ey s$ould $elp t$e p$asin) out of discriminatory preferential arran)ements #et'een de"eloped and one of a fe' de"elopin) countries. *uc$ arran)ements run counter to t$e purposes of t$e )enerali?ed sc$eme of preferences. 7$ey pro"ide a potent source of friction and dis$armony amon) de"elopin) countriesG (5li"ier, 1-C ). Hi8e t$e countries of =estern Europe, t$e =est !frican states $a"e created a common mar8et as lar)e and am#itious as t$e EE/% t$e E/5=!*. 567N7?96 67??3N9T@ 7< !5 T A<"96AN (567!A ) TAT5
to free t$e people of t$e /ommunity from po"erty and mar)inali?ation (5luse)un, 2 C). 7$e mem#er states $a"e decided to o"ercome t$eir lin)uistic distinctions #y addressin) )eo)rap$ic, economic and political #arriers, '$ic$ e9ist and '$ic$ complicate t$e pro#lem of t$e E/5=!*, '$ic$ is yet intended to #e a pri"ile)ed instrument of economic cooperation #y creatin) a "ast mar8et more t$an 11 million consumers. 7$e administration of E/5=!* is ensured #y t$e E9ecuti"e *ecretariat and t$e 3residency #y one of t$e $eads of state for a period of t'o years. 7bEecti%es and functioning of the 567!A =est !frica $as to ta8e up si)nificant c$allen)es Fto contri#ute in a sustaina#le 'ay to satisfyin) t$e food needs of t$e population, to economic and social de"elopment and to reducin) po"erty in t$e mem#er states and t$e ine:ualities #et'een territories, areas and countriesG (E/5=!3 and E/5=!*, 2 1). E/5=!* $as set a )oal to Fpromote cooperation and de"elopment in all areas of economic acti"ity, particularly in t$e fields of industry, transport, telecommunications, a)riculture, natural resources, trade, monetary and financial issues, as 'ell as social and cultural conte9t in order to impro"e t$e standard of li"in), increase and maintain economic sta#ility, to promote t$e reinforcement of t$e relations #et'een mem#er states and contri#ute to t$e pro)ress and de"elopment of !fricaG. 7o ac$ie"e t$ese o#(ecti"es, t$e action of E/5=!* is done in sta)es% i) elimination #et'een mem#er states of customs duties and ot$er c$ar)es $a"in) e:ui"alent effect D ii) t$e a#olition of :uantitati"e restrictions and administrati"e trade #et'een mem#er statesD iii) t$e esta#lis$ment of a common customs tariff and a common commercial policy to'ards t$ird countriesD i") t$e a#olition amon) mem#er states of #arriers to t$e free mo"ement of people, ser"ices and capital D ") $armoni?ation of a)ricultural policies and promotion of community pro(ects includin) mem#er states in t$e field of mar8etin) researc$ and t$at in t$e a)ro-industrial "i) $armoni?ation of t$e system on t$e proper functionin) of t$e monetary policies of mem#er states. !t t$e same time, especially no'adays, 'e must admit t$at t$e functionin) of an a)reement re:uires a lon)-term sta#ility to )uarantee indi"idual economic partners$ips and forei)n direct in"estment. 7$e operation to maturity of a preferential a)reement comes after a period of in"estment or runnin) in routines of operatin) pro"iders. For e9ample, European importers ar)ue t$at t$e introduction of t$e )enerali?ed system of preferences for specific countries fi)$tin) a)ainst dru) traffic8in) $ad ta8en 4 to 1 years (6alle?ot and >ureau, 2 1). In ot$er 'ords, to ta8e t$e pat$ of an incompati#le a)reement (and '$ic$ can #e appealed to t$e A*>) poses a si)nificant t$reat to t$e "ia#ility of t$e pro(ect and
7$e p$enomenon of re)ional inte)ration is no'adays 'idespread. !ll states of t$e 'orld, are a'are t$at solitary actions are al'ays doomed to failure in t$is 'orld of economic turmoil, see8 refu)e #e$ind re)ional )roupin)s. !frica is not an e9ception. It 'as esta#lis$ed in !frica se"eral re)ional )roupin)s t$at met t$e 'is$es of leaders in order to pre"ent an e9treme #al8ani?ation of t$e continent to #e an o#stacle to economic e9pansion. 7$ese )roups include t$e E/5=!*, E//!* and ot$ers. =e 'ill put special emp$asis on E/5=!*, not only #ecause it $as t$e lar)est num#er of *tates #ut also #ecause it presents itself to all t$e di"ersities of t$e continent (it includes small and lar)e Francop$one, !n)lop$one and Husop$one states). 7$e E/5=!* 'it$ @auritania, t$is )roup $as 243 million in$a#itants in 2 3 (0+, 2 4) and represents 31I of t$e population of *u#-*a$aran !frica. 7$e treaty esta#lis$in) E/5=!* 'as si)ned in @ay 28, 1-C1 in Ha)os at t$e initiati"e of 7o)o and +i)eria. @em#er states, at first si9teen in num#er, '$ic$ 'ent to fifteen today. 7$ese are% >enin, >ur8ina Faso, /ape Verde, /ote dSI"oire, 6am#ia, 6$ana, 6uinea, 6uinea >e"el, Hi#eria, @ali, +i)er, +i)eria, *ene)al, *ierra Heone and 7o)o. !mon) t$em +i)eria played an important role. +i)eria contri#uted in e"ery 'ay to assist t$e E/5=!* to reali?e its o#(ecti"e of inte)ratin) =est !frican /ountries, in order to consolidate t$e re)ional peace and security and
!yena)#o et al.
1-
#usiness. E/5=!* is no' faced 'it$ pro#lems suc$ as% i) commercial food-deficit and food addiction. 7$e de)radation of t$e food trade #alance corresponds to increases in imports (6alle?ot, 2 ,) '$ic$ 'ere e"en stron)er in "olume since import prices $a"e fallen. 7$is situation is :uite parado9ical in "ie' of t$e place of a)riculture in t$e E/5=!*D ii) a difficult re)ional inte)ration. ! too stron) openin) of forei)n mar8ets could desta#ili?e t$e trade relations of pro9imity and $a"e serious conse:uences on t$e co$erence and sta#ility of t$e re)ional union. ! recent study emp$asi?ed t$e correlation #et'een t$e rise of conflicts #ein) associated 'it$ t$e de)radation of local e9c$an)es, and "ice "ersa, of sta#ility '$en trade relations are important (@artin et al., 2 ,). 7$e presence of similar products is $i)$li)$ted in t$e literature to e9plain t$e structural reasons for failure of re)ional inte)ration (/adot et al., 2 1)D iii) t$e 'ea8 #order protection of E/5=!*. 7$e 'ea8 protection of mar8ets of E/5=!* in t$e frame'or8 of t$e implementation of E3!s must #e put into perspecti"e 'it$ t$e cycles of multilateral ne)otiations. !lt$ou)$ t$e timin) of t$e Ao$a 2ound is #ein) compromised, a resumption of multilateral li#erali?ation 'ill lead to a mec$anism of erosion of preferential mar)ins (>ouTt et al., 2 1). E/5=!* appears to #e an or)ani?ation 'it$ multiple dimensions. 7$e elimination of tariffs and :uantitati"e restrictions in intra-community relations is one of t$e cornerstones of t$e treaty of Ha)os. E/5=!*, despite some difficulties in applyin) t$e le)islation and decisions ta8en #y different #odies, is t$e only economic )roupin) of $ope for =est !frican *tates. It is no' a 'ell esta#lis$ed trut$ t$at, t$e de"elopment of any country must necessarily )o t$rou)$ a consolidation at t$e re)ional le"el. 7$us, e"ery country in t$e 'orld is stru))lin) to form re)ional )roupin)s.
customs duties and a#olition of :uantitati"e restrictions (e9cept a)ricultural products '$ic$ are t$e common or)ani?ation of mar8ets). In contrast, t$e !/3 states retain t$e ri)$t to recei"e, durin) t$e import of E0 products on t$eir territory, customs duties to promote t$e de"elopment of t$eir economy. !)reements 'it$ !/3 countries impose no o#li)ation of reciprocity. 7$e E0 products $a"e ne"ert$eless #enefit from t$e pro"ision of most fa"ored nation. >e)un 'it$ t$e !rus$a /onference and RaoundU, t$e !/3-EE/ reac$ed its full de"elopment p$ase at t$e HomU a)reements. !mon) t$e HomU a)reements are included t$ose of HomU si)ned in Fe#ruary 1-C1, t$e HomU II si)ned 5cto#er 31, 1-C-, t$e HomU III si)ned Aecem#er 8, 1-84, t$e HomU IV, si)ned Aecem#er 11, 1-8-. @easures are ta8en to compensate t$e losses suffered #y t$e !/3 #ecause of t$e trade 'it$ t$e EE/. 7$at is '$at (ustifies t$e a)reement of t$e financial en"elopes. *pecial pro"isions are ta8en for sta#ili?in) t$e prices of certain products (e.). *7!>EN). 7$ese a)reements, despite some difficulties, remain a pri"ile)ed part of t$e +ort$*out$ dialo)ue. 5<TA 5n +o"em#er 2 , 1-1-, se"en European countries si)ned a con"ention of t$e *toc8$olm /on"ention esta#lis$in) t$e association of European free trade association (EF7!). 7$ese countries are !ustria, Aenmar8, +or'ay, 3ortu)al, *'eden, *'it?erland and t$e 0nited Ein)dom. 7$e o#(ecti"e of t$e con"ention, '$ic$ 'ould enter into force on 1 July 1-,1, is to esta#lis$ a free trade #y p$asin) out tariffs on 8ey industrial products and reduction of :uantitati"e restrictions.
7ther regional groupings fa%ored by the GATT
21
=A<TA
22

7$e @onte"ideo 7reaty '$ic$ created t$e Hatin !merican Free 7rade !ssociation 'as si)ned on Fe#ruary 18, 1-, #y >ra?il, /$ile, 3eru and 0ru)uay. !r)entina, @e9ico and 3ara)uay $a"e su#se:uently acceded to t$is 7reaty and in 1-,1 /olom#ia and Ecuador $a"e made t$eir entry into t$e association. !t t$e se"enteent$ session of t$e 6!77 in 1-, t$at t$e 7reaty of @onte"ideo $ad a deep consideration #y t$e contractin) parties to ensure compliance 'it$ t$e treaty pro"isions of !rticle 24 of t$e )eneral a)reement. Bo'e"er, '$en periods of recession come alon), t$e "ery same states '$o 'ere t$eoretically interested in respectin) t$e trade system '$ic$ t$ey $ad set up in 1-41 turned 'it$out fail to protectionist measures and mo"ed a'ay from t$e main o#(ecti"es of 6!77 (*!3I2, op.cit., p. 423). 7$us t$e 6!77 'as replaced in January 1--1 #y t$e 'orld trade or)ani?ation (=75) in order to
=e do not intend to attempt studyin) all re)ional )roupin)s around t$e 'orld. Indeed, some of t$ese )roups comprise a "ery small num#er of countries and t$erefore, $a"e a ne)li)i#le importance. *ome instead )roupin) a lar)e num#er of states 'ei)$ all t$eir 'ei)$t in international trade relations. =e 'ill discuss some of t$em. A6;/556 7$e !frican, /ari##ean and 3acific countries associated 'it$ t$e EE/ t$rou)$ a)reements 8no'n as t$e !/3EE/ /on"ention. 7$ese a)reements are intended to focus on trade #et'een t$e !/3 and t$e EE/. 0nder t$e a)reements, products ori)inatin) in !/3 countries and transported directly to t$e E/E countries, su#(ect to production of certificate of e9emption, #enefit from
!yena)#o et al.
23
respond to t$e insufficient of t$is institution (6!77). In order to sol"e specific pro#lems of de"elopin) countries, 0+/7!A 'as created in 1-,2 'it$ t$e aim of impro"in) t$e conditions of trade #et'een de"elopin) countries in esta#lis$in) a ne' 'orld economic order. 7$e pro#lem of preferential treatment 'as al'ays in t$e study of 0+/7!A, as 'ell as in t$e conte9t of multilateral trade ne)otiations '$ic$ are $eld under t$e 6!77 (Aocument%!&/+.4&H.2,8, 1-C8).
7rgani#ation and functions of !T7 It $as a permanent administrati"e structure '$ic$ )i"es it )reat sta#ility and institutional continuity. It $as t$ree ma(or #odies% i) t$e @inisterial /onference% 7$is is t$e #ody '$ic$ #rin)s to)et$er mem#ers of t$e =75. It meets at least e"ery t'o years, sets t$e )eneral policy of t$e =75 and decide all issues related to multilateral trade a)reementsD ii) t$e 6eneral /ouncil% It is t$e permanent #ody to e9ercise t$e po'ers of t$e @inisterial /onference '$en it is not sittin) in plenary iii) Aispute *ettlement *ystem (A**)% it is t$e )reat inno"ation compared to t$e 6!77. Indeed, t$e liti)ation is c$aracteri?ed #y its non(urisdictional nature. 7$e =75 implements mec$anisms of la'. 7$e A** 'ill re"ie' disputes #y panels, s$all $a"e t$e po'er to adopt t$e reports of t$ese )roups and t$e appellate #ody and finally 'ill #e responsi#le for o"erseein) t$e implementation of t$e decisions. 7$e =75 must fulfill t$ree essential functions% i) monitor compliance 'it$ t$e a)reements #et'een mem#ersD ii) or)ani?e t$e settlement of trade disputes #et'een mem#ersD iii) continuity of ne)otiations 'it$ t$e aim of furt$er li#erali?in) trade especially ser"ices.
of t$e =75 no' seem to create a )lo#al free trade (*andrine, 2 2&2 3). It is essential to note t$at, it finds t$e limits of current =75 namely% i) t$e #ilateral practice did not disappearD ii) t$e 0nited *tates continues to use t$e t$reat of t$e famous sections 3 1 and super 3 1 of 0.*. trade la' to deal 'it$ trade practices deemed unfair and continues to t$reaten a sanction of companies t$at do #usiness 'it$ /u#a, Iran, Hi#ya and Ira:. It can also 'onder '$et$er t$e A** $as really t$e means to enforce its recommendations. 7$e =75 is no' an institution in crisis% t$e Ao$a 2ound '$ic$ #e)an in 2 1 is still not completed in 2 -. 7$e crisis of t$is institution stems from conflicts #et'een ma(or de"eloped po'ers, includin) on a)riculture, #ut also 'it$ de"elopin) countries on t$e role of ser"ices (6!77, 1-4C to 1--1). Finally, t$e A** $as a misleadin) name% it facilitates t$e settlement of disputes rat$er t$an t$e rule itself. It is t$erefore an administrati"e, not (udicial, assistance in implementin) t$e o#li)ations of mem#ers 3 (Julien, 2 1).
6onclusion =$en $i)$li)$tin) t$e ac$ie"ements of t$e 6!77, t$e first aspect to #e pointed out is t$e fact t$at, t$e system $as mana)ed to sur"i"e up until its recent su#stitution #y t$e =75. In its re)ulatory role of international trade (Jac8son and =in$an) it $as, at least in t$eory, controlled more t$an 8 I of 'orld trade (@!625 @!*, op.cit., p. 2 ) and $as also settled multiple economic conflicts #y coercin) t$ose contractin) parties '$ic$ 'anted to adopt certain measures contrary to t$e esta#lis$ed rules, t$rou)$ consultin) and e"en t$rou)$ toleratin) conduct of du#ious le)ality (suc$ as 6!77Ms position). ! second and undenia#le ac$ie"ement $as #een t$e continuous e9pansion of international trade, '$ic$ #e)an to ta8e place from t$e moment t$at t$e arran)ement 'as applied (especially amon) t$e de"eloped countries) (Jaenic8e, 1-83) t$an8s to tariff reductions in t$ose manufacturin) sectors not considered as Fsensiti"eG and 'it$ considera#le access in t$ese areas especially from t$e incorporation in t$e FEennedy roundG, of t$e lineal system (Jac8son, 1-,C% p. 13C) in su#stitution for t$e product #y product system. From t$en on and until t$e F0ru)uay roundG, suc$ a system $as #een used 'it$ nota#le success. 7$e 6!77 is #ot$ a collection of a)reements and ne)otiations center (5li"ier, 1-C,). 7$e 6!77 $ad pro#a#ly played a predominant role in t$e international trade. 7$is idea is corro#orated #y 5li"ier Hon), '$o said Fin t$is 'orld full of uncertainty and inno"ation, t$e 6!77 is one of t$e oldest and most 8no'n institutions. 7$erefore, it must #e prepared to
%
;rogress of !T7 compared to the GATT 7$e pro)ress of t$e =75 compared to t$e 6!77 are enormous and are 'it$out any dou#t to #e at t$e credit of t$e =75% i) t$e =75 is a truly international or)ani?ation, responsi#le for ensurin) compliance 'it$ standards accepted #y its mem#ersD ii) t$e =75 is responsi#le for ar#itratin) commercial disputes t$at oppose t$e countries. For t$is, it $as structures to ac$ie"e t$is ar#itration (A**)D iii) t$e =75 is t$e #lueprint of a )enuine international trade la'D i") in t$eory, countries are on an e:ual footin). 7$e =75 )i"es smaller countries t$e opportunity to turn a)ainst t$e ma(orityD ") t$e ric$ countries $a"e a means to re:uire from t$e *out$ to open t$eir mar8etsD "i) t$e po'ers of t$e =75 $a"e e9panded to ne' areas% ser"ices, intellectual property ri)$t. Free trade promotes t$e 6!77 #y t$e successi"e elimination of trade #arriers '$ic$ $ad ori)inally no uni"ersal "ocation. Bo'e"er, t$e collapse of t$e *o"iet system, t$e )lo#ali?ation of t$e economy and t$e creation
&n this point santulli# supra note 1$2 at '. (2
24
comply 'it$ a critical analysis and to pro"ide ade:uate follo'-up. 7$is analysis is no' under'ay. It mi)$t 'ell re"eal fla's t$at s$ould #e corrected. >ut I firmly #elie"e t$at t$e 6!77 $as alto)et$er pro"ed its )reat "alue for all tradin) countries, #ot$ de"eloped, in de"elopin) or socialist. !s a code of a)reed principles of international trade, li"e and in constant e"olution, it is t$e essential feature in '$ic$ mem#ers operate and de"elop t$eir trade and commercial relations. !s a place of meetin), it )i"es 'ay to sol"e trade pro#lems as at '$en t$ey arise, to pre"ent any relapse into protectionism t$at all nations 'ould suffer )reatly, and de"elop t$e international tradin) system as )i"en necessities. Finally, today, '$ere countries re:uire de"elopment of ima)inati"e measures to meet t$eir needs of trade, t$e 6!77 is t$e effecti"e tool 'it$ '$ic$ )o"ernments see8 to ma8e a)reement on measures to meet t$ese needsG. 7$e 6!77 remained since t$e end of t$e *econd =orld =ar as t$e only multilateral code )o"ernin) international trade and for more t$an 4 years, se"eral c$an)es 'ere made in trade relations #et'een t$e different nations of t$e 'orld. 7$e 6!77 $as, durin) t$is period, risen concrete positi"e actionsD #ut in some areas, it remains to #e done. 7$is conclusion 'ill #e a some'$at $asty re"ie' of t$e 6!77 at t$e period of its e"olution. In t$e assets of t$e 6!77, it must include t$e multilateral ne)otiations '$ic$ allo' se"eral nations to e9press t$eir "ie's on issues of international trade. 7$e 6!77 $as de"oted special attention to t$e pro#lems of de"elopin) countries and $as esta#lis$ed a special procedure for resol"in) disputes #et'een contractin) parties. Enormous efforts are made to facilitate access for de"elopin) countries to mar8ets of industriali?ed countries. *ome measures are ta8en re)ardin) t$e trade of some products of strate)ic interest to de"elopin) countries. 7$e 6!77 $as pre"ented t$e international trade in t$e fall of #ilateralism and t$e pre-'ar period, and $as released se"eral tariff and non-tariff #arriers. It s$ould #e noted t$at one of t$e main o#(ecti"es of t$e 6!77 is to promote de"elopment, and raise li"in) standards in de"elopin) countries '$ic$ is far from #ein) ac$ie"ed. 7$ere is, $o'e"er, t$e opposite p$enomenon. 6!77 is responsi#le for t$e deterioration of terms of trade of de"elopin) countries. 7$e 6!77 !)reement s$all, to maintain its credi#ility, address t$e critical issue of deterioratin) terms of trade. 7$e recommendations must $a"e t$e force of la' and #ecome directly enforcea#le in mem#er states. 6i"en t$ese s$ortcomin)s of t$e 8no'n role of 6!77 (entered into force in 1-48) in international trade, it 'as replaced #y t$e =75 in January 1--1. Aespite t$e si)nificant pro)ress of t$e =75 in resol"in) pro#lems of international trade, t$is ne' or)ani?ation is currently e9periencin) limitations. *ince t$e )ap in many economic areas in )eneral, and particularly in international trade, is "ery 'ide #et'een t$e de"eloped and de"elopin) countries, pro#lems 'ill not #e lac8in) in
t$e mana)ement of commercial disputes. A6KN7!=5:G?5NT =e t$an8 t$e /$inese *c$olars$ip /ouncil and t$e 7o)olese )o"ernment for t$eir assistance in t$e preparation of t$is paper. In addition, 'e are also )rateful to t$e comments and su))estions made #y Ar 7an)-8e, Ar @a'unou Kinse and Ar 7. !lp$aeus Eoroma.
"5<5"5N65 >ouet !, Fonta)nU H, Jean * (2 1). Is Erosion of 7ariff 3references a *erious /oncernV Jmimeo, /E3II 3aris. /o## J (1--4). 7$e ne' 6!77 a)reement J2e)ulation, 2% p. 11. /ommon @ar8et (1-,1). ! mont$ly 2e"ie' of European. Inte)r. Econ. Ae"., p. -. /onclusions and resolutions adopted at t$e @inisterial @eetin) of 6!77 /ontractin) 3arties (1-,3). >asic Instruments and *elected Aocuments, p. 12. /adot 5, Ae @elo J, 5larrea)a @ (2 1). 2e)ional inte)ration in !frica% '$ere are 'eV !symmetric 2e)ionalism in *u#-*a$aran !frica% =$ere Ao =e *tandV =or8in) 3aper. /$irstian A (2 ,). =75 & =75 3ol.44C . Aocument%- !&/+.4&H.2,8 (1-C8). +ation clause most-fa"ored% statement #y t$e representati"e of t$e 0+/7!A secretariat at t$e 14-Ct$ meetin), at t$e re:uest of t$e /ommission. E9trait of t$e Rear#oo8 of t$e International Ha' /ommission, II% 2. Aun8el ! (1--1). 7$e 0ru)uay 2ound !)reement on !)riculture 3roposals. 7e9t on !)riculture, @7+-7+/&=&F!, p. 22. Europe International Information 3ress (1-C1). +e's *eries +o. CCC (3 mars1-C1), and JEE/ 3references Beld $as @a(orForce =idenin) in =orld 7radeJ, J. /omm., p. 1. 6alle?ot J (2 ,). /$allen)es and fle9i#ilities of E/5=!* and t$e c$allen)e of a)ricultural ne)otiations, J2533!, July, p. 4C. 6alle?ot J, >ureau J/ (2 1). J3referential 7radin) !rran)ements in !)ricultural and Food @ar8ets. 7$e /ase 5f 7$e European 0nion and t$e 0nited *tatesJ, 5E/A ed, p. 183. 6!77 (1-4C-1--1). 7$e role of 6!77 in international trade J 6!77 (1-,4). 7$e 2ole of 6!77 in t$e Field of 7rade and Ae"elopment, 6ene"a J. Jean-@arie > (1--4). 7$e a)ricultural ne)otiations in t$e 0ru)uay 2ound. Jac:ues 6 (2 ,). For sustaina#le de"elopment in =est !frica% Food so"erei)nty. Jac8son (1-,C). op.cit., and =in$am, op.cit. pp.1, -C-C. Jaenic8e (1-83). op.cit., p. 2C. Julien > (2 1). Effecti"eness 5f Aispute *ettlement @ec$anism 5f 7$e =to% 7o'ards ! >etter 7$e @ultilateral 7radin) *ystem 3redicta#ility. Eo(ima E (1-CC). Japan and a +e' =orld Economic 5rder, /room Belm, Hondon, :uoted in 2o#ertson, p. 21. @artin 3, @ayer 7, 7$oenin) @ (2 ,). @a8e 7rade not =ar J, =or8in), p. 3C. 5li"ier H (1-C,). 6!77 (6ene"a), an instrument for multilateral ne)otiations, @r. H5+6 deli"ered t$e te9t of t$e speec$ #efore an audience )at$ered at t$e 3a8istan Institute of International !ffairs (Earac$i). 5luse)un 5 (2 C). 7$e /$allen)e 5f Aemocracy !nd Ae"elopment In !frica, Inter"ie'. 3incus J (1-,8). 7rade, !id and Ae"elopment, @c6ra'-Bill >oo8 /ompany, pp. 221-23 . 6eneral 3rinciple (1-,4). of t$e Final !ct adopted #y t$e first 0+ /onference on 7rade Ae"., p. 8. 3atterson 6 (1-,,). 7e9tile and /lot$in) Industries% *tructural pro#lems and policies in 5E/A /ountries, 5E/A, 3aris. 2euter 3 (1-C ). Ha /on"ention de Vienne du 23 mai 1-,- sur le Aroit
21
des 7raitUs, 3aris, p. 1C. 2e"ue Jeune !fri:ue (1-,-). *er)io A (2 8 ) .5r)anisation @ondiale du /ommerce, !//W* !0N @!2/BX* A!+* HE 6!77&5@/. *andrine A (2 2&2 3). Hes relations entre les rY)les des accords multilaterau9 sur lSen"ironnement et celles de lS5@/. 0* Ha))in) >e$ind on 3rUfUrences 3lan P (1-C1). 0nited +ations Juridical Rear#oo8 (1-,4). J. /omm., p. 1. =75&5@/ (1--8). .F5/0*, >ulletin dMinformation +, p. 3 .

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Journal of Economics and International Finance Vol. 3(1), pp. 13-28, January 2 11 !"aila#le online at $ttp%&&'''.academic(ournals.

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FC Course of Customs procedures

J. Econ. Int. Financ.

J. Econ. Int. Financ.

J. Econ. Int. Financ.

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J. Econ. Int. Financ.

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