DIRECT TRADE CONTROLS EMPLOYED BY EUROPEAN COMMUNITY PREPARED BY ASHOK CHANDRA SINGH YADAV MBA 1ST SEC- B

SUBMITTED TO PROF. AJAI PRAKASH

Global Europe
Global Europe Choice for aggressive competition Lock in EU domestic policy reforms and promote deregulation Cohesive EU foreign economic policy: soft trade power New role for buisness in trade-rule making

Objectives: Market opening in trade and services Competing for geopolitical influence Tackling import regimes and behind the border obstacles (NTB, TBT) Introduce new issues, and stronger rules and standards

Trade policies
Market access Push for full and fast tariff elimination TDM fall short to offer effective protection (infant industry, SSM) Rules of orgin further fragmentate production Subsidies & countervailing measures not addressed Introduction of MFN clause is detrimental to South-South trade Service sector Priority to market access over sequencing regulation & regulatory cooperation and reform Should have sound competition frameworks in place to prevent private monopolicies Lack of safeguards Limited offer on Mode IV

ISSUES
Trade related issues: Tackling the whole operational environment incl.services and supply chains Competition: Lack of proper regulations lead to corrupt bidding process private monopolicies Capacity and leverage to investigate and enforce rules Investment rules Will attract FDI is questionable assumption manage investment (performance requirements/local content) Balance of rights & obligations for investor and home country Investment promotion Enforcing good investor behavior Intellectual Property Rights Effective IPR to promote health, industrial devevelopment, food security and education IPR can stifle or promote innovation (copy right) EU focus on enforcement provision rather than access to technologies & information EU seeks control over IT for own competitiveness EU to cooperate in WIPO to address development deficiencies

Global Europe and its development implications

Precondition to reap development potentials
Provide evidence on development benefit Alignment with national development strategies Guidance for substantial shift to achieve best outcomes for poor producers/traders Imperative positive development outcomes for non-WTO compulsion issues

Development package No lock in of of donor driven policy reforms Non-conditional, non-punitive aid packages, de-link from signing FTA

State of art Reference to development in overarching objectives but no overriding legal power Gender dimension is absent Transparency and participatory decision-making remains unfulfilled Become modern or get out! Think big. Be big. Play big.

IMPORTS
Imports:
Fixed duty increased (1450 CFA) Ad valorem maintained (20%) VAT added 17.5% Veteranary tax added 1.75% Quota decreased and temporarily stopped

Poultry sector specific trade policy options

Criteria: Sector with disproportionate gender impact

Special/sensitive product: maintain flexibility for mix of policy measures (risk: standstill clause) Special Safeguards Measures: TDM too burdensome Development package: supply side capacity Financial services (assets, bankruptcy) Farm to fork : EU food safety regulations and responsibilty Monitoring: sector specific observatory Review of trade provisions

Illustration: Gender benchmark on special and sensitive products (flexibility for protection)

Gender criteria could be defined as follows: if a sector is particularly critical to the livelihood of poor women and liberalisation would jeopardise this function, then the sector is eligible for nomination as sensitive until the affected women can compete or find other comparable income opportunities. A process could be designed whereby: a) Each DC country lists the product/sector that is gender sensitive on the basis of objective and agreed criteria, such as womens employment, womens share of credits, decision-making, and autonomy in entrepreneurial activities. b) The number of gender sensitive products may possibly be limited by a maximum number per country c) Gender sensitive products would also be declared special products. d) Safeguard measures can be evoked for gender sensitive products.

Illustration: Equity benchmark (positive discrimination)

Equity benchmarks should allow and promote positive measures under aid for trade, development support, investment, and/or mitigating and accompanying stipulations that are designed in a way that explicitly address gender specific measures. These include for example, safety nets, provisions that promote women entrepreneurs, regulations that encourage supply capacity building, and control over productive resources.

CONCLUSION
a. Regional trading blocs such as NAFTA, EU, and ASEAN are more likely to cooperate with the WTO than with a GATT secretariat. b. European Union members, particularly France, threatened to boycott future GATT rounds because of WTO passage. c. GATT was no longer viable since its functions are now carried out by such regional trading blocs as NAFTA, EU, and ASEAN. d. The WTO will have more authority to enforce trade agreements signed under GATTs auspices.

THANK YOU