Significance of Trade Facilitation Negotiations at the WTO

The significance of trade facilitation negotiations at the WTO is inscribed in paragraph 27 of the Doha Ministerial declaration where Members agreed to trade facilitation negotiations so as to; expedite the movement, release and clearance of goods including goods in transit, and enhance technical assistance and capacity building in this area. Members agreed to review and as appropriate, clarify and improve relevant aspects of Articles V, VIII and X of the GATT 1994. Within the framework of trade facilitation negotiations, WTO members agreed to identify needs and priorities of Members, in particular developing and least-developed countries. Noting the significance of trade facilitation, members committed to ensuring adequate technical assistance and support for capacity building in the area of trade facilitation.

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The Negative Effects of Special and Differential Treatment to Developing Countries: Case of Sanitary and Phytosanitary and Trade Barriers to Trade

There are negative effects of special and differential treatment to developing Countries. As a trade negotiator, I have been pondering on whether the aspect of special and differential treatment, which we in developing countries clamor for, is always good for us. I believe there are negative effects of special and differential treatment to developing countries. Is it true that developing countries, most especially least developing countries, cannot competitively engage in trade and integrate into the global economy, without having to apply a special and differential treatment in all situations? I ask this because the main objective of trade negotiations is to enable countries to meaningfully and competitively engage in trade at the global market without unnecessary barriers to trade. So is there a posibility that the developing countries may experience negative effects of special and differential treatment?


As a special and deferential treatment, Members of WTO, do not expect developing countries to implement international standards that are not appropriate to their development needs. (Refer to Article 12.4-12.5 of TBT and Article 10 of SPS Agreements). But this right could have negative effects on developing countries.  However, I feel that delaying to implement or failure to comply with international requirements under the guise of special and differential treatment could lead to developing countries and especially least developing countries loosing competitiveness in the global market. More so they risk being displaced in their own market, because even their own citizens do require safe and quality products. If they cannot get home made safe and quality products, they will import. On the whole, they might disintegrate from rather than competitvely engage in trade and integrate into the global market. Read the entire article on the Negative Effects of Special and Differential Treatment.

China's Export Restrictions Inconsistent with Her WTO Accession Commitments -Panel Report

A report by the World Trade Organization (WTO) issued On 5 July 2011,indicates that China's export restrictions were inconsistent with her WTO accession commitments. The the panel examined complaints by the United States, the European Union and Mexico regarding “China's export restrictions in relation to exportation of raw materials”.

The Panel is convinced that China's export restrictions are shielding domestic producers from foreign competition and so they cannot be justified in in the name of environmental conservation.China's export restrictions can create serious disadvantages for foreign producers by artificially increasing China’s export prices and driving up world prices.

The Panel found that China's export restrictions are inconsistent with the commitments that China had agreed to in its Protocol of Accession. The Panel also found that certain aspects of China's export restrictions limit the export of the raw materials and so are inconsistent with WTO rules and her WTO accession commitments. Read more on China's export restrictions and how they are inconsistent with the her WTO accession commitments

Stages of Economic Integration: Free Trade Area, Customs Union, Common Market..

Stages of economic integration include; The preferential Trade Area(PTA), Free Trade Area (FTA), Customs Union(CU), Common Market (CM), Economic Community or Monitory Union and Economic Union or Political Federation.

Countries engage in economic integration in order to eliminate barriers tointernational trade(Carbaugh,2009),facilitate payments and factor mobility within the the economic bloc.

Issues under consideration vary from stage of economic integration to another. In general however the Free Trade Area includes trade arrangements on preferential terms in accordance with the rules of origin. The Customs Unions involves mainly a common external tariffs, dispute settlement mechanisms, common external policy and common regional institutions. The Common Market includes free movement of factors of production and natural persons. A monitory union involves a common monetary (common currency) and fiscal policies between parties while under a political federation parties agree to implement uniform political institutions and policies between themselves. Political federation is the last of the Stages of economic integration. For details on Stages of economic integration, please visit.Stages of Economic Integration and African Experience

Toolkit for WTO Rules on Regional Trade Integration Agreements or Economic Integration

Compliance to WTO Rules is a major requirement when dealing with regional trade integration agreements or econmic integration agreements. The Preamble to the WTO Agreement highlights “... the elimination of discriminatory treatment in international relations” as an objective of the Multilateral Trading System. The Most-Favoured-Nation (MFN) commitment by WTO Members is a fundamental instrument for achieving that aim. However the MFN treatment changes when dealing with regional economic integration.

When establishing a regional trade integration agreement(RTA), Members of WTO that are parties to the economic integration need some kind of derogation to avoid legal inconsistency with the MFN rule. The WTO Member has always the possibility of seeking a waiver. But, over time, the system itself has developed a series of conditional exceptions which Members can invoke when departing from their MFN commitment: These are in GATT Article XXIV, Enabling Clause, Understanding on GATT Article XXIV and GATS Article V.

Establishment of a regional trade integration requires that common principles of WTO be put into consideration. An economic integration or regional trade agreement  should facilitate trade among the parties, provide for mutual/reciprocal trade concessions and must not result in barriers towards third parties higher than those existing before the formation of the economic integration agreement. Read more about Regional Trade Integration Agreements and Compliance to WTO Rules

Why Countries Engage in International Trade-Analysis based on Trade theories

This article at explaining why countries engage in international trade. Now days it is not uncommon to find that the main objective of a trade policy of almost all countries is to promote international trade. Countries have gone ahead to engage in trade negotiations all in the interest of enabling international trade. But then, why do countries engage in international trade? Why are there global attempts to liberalize international trade rather than promote autarky-a situation of no international trade? Does engaging in international trade contribute to income distribution, factor employment and poverty reduction? In short, must a country engage in international trade in order to develop? This article delves into theories of international trade so as to understand why countries engage in international trade.

Economist believes that if countries engage in international trade, they can mostly benefit under a free international trade environment. To get a clear perspective to this claim, I will glance though five major main theories of international trade-the Ricardian theory of international trade- Comparative advantage Model on gains from specialization and opportunity cost theory, Heckscher-Ohlin model of international trade who believes that factor proficiency differences are the reasons why countries engage in international trade because of the gains from specialization and income distribution effects, the new international trade theory which examines the economies of scale and the Heterogeneous firms theory which explains why countries engage in international trade basing on a firm level perspective.

Read more on Ricardian Comparative advantage and Gains from Specialization and how it relates to why countries engage in international trade

Or Continue and find out what Heckscher-Ohlin says factor proficiency and how the model explains the reasons why countries engage in international trade

Or read how economies of scale according to New Trade Theory explain why Countries Engage in international trade

EAC Economic Integration Priorities: Minimising trade diversion and maximising trade creation

EAC economic integration priorities should be focused on minimising trade diversion and maximising trade creation through a single Customs territory, Monetary Union and infrastructure development.
While addressing his maiden press conference at the EAC Secretariat headquarters on May 10th 2011 in Arusha, the new Secretary General of the EAC Amb. Dr. Richard Sezibera identified the realization of a single Customs territory, making the Common Market work, achieving a Monetary Union, infrastructure development and industrialization as the priorities for his term. These priorities for EAC economic integration appear appealing on the face value. They are any not farfetched; they actually reflect the ambition of the Community. However, Amb Richard Sezibera will have to solve the challenges ahead of him if he is to achieve the listed priorities.Read more about EAC priorities on economic integration and trade in respect to maximising trade creation and minimising trade diversion