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Two multilateral organisations dealing with trade: UNCTAD and WTO More differences than similarities

Two multilateral organisations dealing with trade: UNCTAD and WTO More differences than similarities. Manuela Tortora Chief, Technical Cooperation UNCTAD. THE DIFFERENCES LIE ON:. The origins The mandates The institutional functioning The thinking on trade and development

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Two multilateral organisations dealing with trade: UNCTAD and WTO More differences than similarities

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  1. Two multilateral organisations dealing with trade:UNCTAD and WTOMore differences than similarities Manuela Tortora Chief, Technical Cooperation UNCTAD

  2. THE DIFFERENCES LIE ON: • The origins • The mandates • The institutional functioning • The thinking on trade and development • The strenghts and weaknesses

  3. From GATT to WTO Keynes’ ideas on post-war international economic governance The Bretton Woods agreements (1944) 1947: the ITO, the Havana Charter and the GATT GATT Rounds of trade negotiations until the Uruguay Round (1986-94) 1995: WTO is established outside the UN system UNCTAD: 1964 The context of North-South and East-West tensions Non-Aligned Movement and Group of 77 The link between trade and development (Prebisch thinking) 1st UNCTAD Ministerial Conference in Geneva; Permanent secretariat established THE ORIGINS

  4. UNCTAD: Integrated treatment of trade, investment and related issues= wide mandate Research on trade and development issues Consensus-building through intergovernmental machinery Technical cooperation on all the topics of UNCTAD work THE MANDATE • WTO • Rules-based organisation, negotiates binding multilateral trade law (“legislative” role) • Dispute settlement mechanism with mandatory decisions, can apply sanctions (“judicial” role) • Mandate confined to the existing trade agreements and to the scope of the negotiations

  5. THE FUNCTIONING WTO • No links with the UN machinery • Permanent governmental bodies to monitor the implementation of the trade rules • Negotiating governmental bodies • Neutral Secretariat • Accession has to be negotiated • Limited role of non-governmental stakeholders UNCTAD • Intergovernmental machinery linked to UN General Assembly and ECOSOC • Secretariat part of the UN Secretariat (part of same budget) • Development-oriented and independent secretariat • Political role (“soft law”) • Automatic membership • Wide participation of non-governmental stakeholders

  6. WTO Same trade disciplines for all but… …Special treatment for developing countries The “Doha Development Round” launched in 2001 Trade liberalisation and implementation of trade rules lead to development UNCTAD Trade is one of the instruments leading to development… …but no automatic links between trade liberalisation, poverty reduction, and development Multidimensional links between trade and development Special and differential treatment is key for all developing countries No “one size-fits-all” development models THE IDEAS ON DEVELOPMENT

  7. WTO Binding trade law Powerful “judicial” mechanism BUT Increasing complexities of multilateral negotiations Increasing regional and bilateral trade agreements UNCTAD Trust and credibility among developing countries Independent research BUT Only a political role (no “teeth”) Limited human and financial resources STRENGHTS AND WEAKNESSES

  8. INTERNATIONAL ECONOMIC ENVIRONMENT NATIONAL DEVELOPMENT GOALS TRADE SUPPORT SERVICES POLICIES SUPPLY-SIDE PRODUCTIVE CAPACITY POLICIES TRADE POLICY AND NEGOTIATION UNCTAD’s INTEGRATED VISION OF TRADE AND DEVELOPMENT and THE SCOPE OF ITS WORK:

  9. SOME UNCTAD IDEAS (NOW USED OUTSIDE UNCTAD) • Special and differential treatment for developing countries • Coherence between national policies and international economic environment (MDG 8) • Policy space and “no-one-size-fits-all” • Links between investment, science and technology, ICTs and trade flows • Link between trade and environment • Role of commodities in international trade • Development-friendly WTO rules on trade in services • LDCs’ terms of WTO accession • Work on debt reduction (HIPC) and debt sustainability • Role of competition law and policies in development processes • Work on trade facilitation • Research on non-tariff barriers to market access

  10. SOME NUMBERS • UNCTAD secretariat: 400 staff • Annual Regular budget: US $ 57 million • Extra-budgetary funds: US$ 35 million (2005) • No field offices

  11. Main UNCTAD publications Annual analytical reports: - Trade and Development Report - World Investment Report - LDCs Report - Information Economy Report - Report on Africa …. and many other publications all available on UNCTAD website: www.unctad.org

  12. UNCTAD Intergovernmental machinery: • The Ministerial Conference (every 4 years), reports to the UN General Assembly and ECOSOC • Executive body: the Trade and Development Board, one high level annual session, reports to the UN General Assembly and Ecosoc • Three annual Commissions on: • Trade in goods and services, and commodities • Investment, technology and related financial issues • Enterprise, business facilitation and development • Several Expert Meetings on specific issues

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