Memorandum on Liberia s Foreign Trade Regime
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1 Memorandum on Liberia s Foreign Trade Regime MFTR Validation Workshop Monrovia, May 17, 2010 Ramesh Chaitoo rnmsts@yahoo.ca Team Leader TradeCom WTO Accession Project Enabling Environments Ltd 1
2 153 WTO Members Status of WTO accession 29 countries in accession process various sizes and levels of development (Algeria, Ethiopia, Equatorial Guinee, Sudan, Sao Tome, Russia, etc.) Accession can be a long and challenging process Requires collaboration of many ministries & departments Modernization of trade regimes & market opening 2
3 Rationale for WTO Accession 1. Increased & diversified export opportunities through predictable market access in all other WTO members (MFN treatment) 2. Greater attractiveness to foreign investors 3. Role in multilateral trade negotiations & access to WTO dispute settlement mechanism 4. Strengthened domestic legal framework for trade in goods, services, IP, etc. 5. Eligibility ibilit for WTO technical assistance, it capacity building & new Aid for Trade projects 3
4 Challenges of Accession Need to reform domestic legal framework for economic activity in economy Pressure to accept WTO plus binding commitments Increased foreign competition Increased susceptibility to external shocks 4
5 Article XII (of Marrakesh Agreement 1994) Any State or separate customs territory possessing full autonomy in the conduct of its external commercial relations and of the other matters provided for in this Agreement and the Multilateral Trade Agreements may accede to this Agreement, on terms to be agreed between it and the WTO. Such accession shall apply to this Agreement and the Multilateral Trade Agreements annexed thereto. 5
6 Prepare Memorandum on the Foreign Trade Regime and all Supporting Documents The Process at a Glance -Request For Accession -General Council Meeting Prepare ACC/4 and ACC/5 Prepare initial offer on Goods and Services - Questions/Replies - Working Party Meets to discuss the Foreign Trade Regime -Observer Status -Working Party Formed Bilateral Negotiations with Trading Partners Foreign Trade Regime in Conformity with the WTO? Yes No Report by Accession working party & Protocol of Accession - Bring Foreign Trade Regime into conformity with the WTO -Questions/Replies Working Party recommends accession Negotiations completed with all countries. Schedules of Commitments & Concessions General Council votes on Accession Parliament of acceding country ratifies accession Member on the 30 th day after ratification MOET - June 2002
7 Memorandum of Foreign Trade Regime Detailed description of the rules, regulations and administrative procedures governing import and export of Goods and Services, investment. And all other areas covered by WTO rules: Intellectual t lproperty, agriculture, subsidies, bidi establishment of companies, safeguards, quotas, etc. Trade statistics Main laws governing foreign trade Details on information needed in WT/ACC/1 (24 March, 1995) 7
8 1. Framework for Enforcing Policies re Foreign Trade 1. Powers of executive, legislative and judicial branches of government. 2. Government entities responsible for making and implementing policies i affecting foreign trade. 3. Division of authority between central and sub central governments. 4. Any legislative programmes or plans to change the regulatory régime. 5. Laws and Legal Acts (Annex 2 refers). 6. Description of judicial, arbitraloradministrativetribunals administrative tribunals or procedures, if any. 8
9 2. Regime for Trade in Goods Import regulations a) Registration requirements for engaging in importing b) Description of national tariff c) Tariff quotas, tariff exemptions d) Other duties and charges, specifying any charges for services rendered; e) Quantitative import restrictions, including prohibitions, quotas and licensing systems; f) Import licensing procedures (Annex 3 refers); g) Other border measures h) Customs valuation; other customs formalities 9
10 Goods Import regime (cont d) j) pre shipment inspection; k) application of internal taxes on imports; l) rules of origin; m) anti dumping régime; n) countervailing duty régime; o) safeguard régime. 10
11 Export regime for goods a) registration requirements for engaging in exporting; b) customs tariff nomenclature, types of duties, duty rates, weighted averages of rates; c) quantitative export restrictions, including prohibitions, quotas and licensing systems; d) export licensing i procedures; e) other measures, e.g. minimum export prices, voluntary export restrictions, orderly marketing arrangements; f) export financing, subsidy and promotion policies; g) export performance requirements; h) import duty drawback schemes. 11
12 Internal Policies Affecting Trade in Goods Industrial policy, Technical standards, SPS measures, TRIMs, free zones, etc. Regulations re agricultural trade, 12
13 3. Intellectual Property Intellectual property policy; Responsible agencies for policy formulation and implementation; Membership of international ti intellectual t lproperty conventions and of regional or bilateral agreements; applicationof of nationaland and m.f.n. fn treatmentto to foreign nationals; Fees and taxes. Standards of protection Copyright and related rights, performance rights, trademarks, patents,,p plant varieties, integrated circuits, etc. Enforcement of IP Laws, regulations, etc. re above 13
14 4. Trade in Services General description of the overall market and regulatory structures of the most prominent services sectors (e.g., financial services, telecommunications, professional services, construction, tourism, transportation). Policies affecting trade in services laws, regtns., administrative tribunals, etc. Market access and national treatment Import and export data for services 14
15 5. Trade with Third Countries 1. Bilateral or plurilateral agreements relating to foreign trade in goods and trade in services (Annex 8A refers). 2. Economic integration, customs union and free trade area agreements (Annex 8B refers). 3. Labour markets integration agreements. 4. Multilateral t l economic cooperation, membership in the multilateral economic organizations, trade related programmes of other multilateral organizations. 15
16 Why produce MFTR? WTO members want to see regimes that are Transparent Predictable (consistent) Rooted in Laws & Regulations Consistent with international standards (WTO rules) Need to give clear picture to delegations in Geneva 16
17 Missing Information for MFTR All laws & regulations governing trade and economic activity only 25 laws in MFTR. Unable to get any regulations but these define administrative procedures In absence of adequate laws & regtns, many questions will be asked in Geneva Under what legal instrument is an IPD or EPD mandatory? Or PSI? 17
18 Horizontal issues Land holding or tenure what regulations govern leases (length of leases to investors by private citizens vs government) What legal basis for leases if Constitution prevents ownership by foreigners Work permits What is the regime? investors need to bring managers, specialists. Service suppliers will need temporary entry to provide services 18
19 Port, Customs, Border Measures NPA past record is not flattering. What has changed? Is changing? g High idle time for personnel; long delays, lack of clarity of process; unpredictablefees fees, etc., etc. MFTR will have to show what has improved and clearly l outline process Traders want transparent & predictable 19
20 Technical standards If product is stopped at port, must have valid, scientific reason for preventing its import Does BIVAC cover product standards or quality? Are any standards employed? What exactly is the role of MoCI? 20
21 Services Information Most lacking data, rules, etc 160 services activities listed under thegeneral Agreement on Trade in Services What governs accounting, engineering, i architecture, legal? Are only citizens allowed to practise? Health services, Transport, Construction, Environment, etc. 21
22 Need clarity on: Investment incentives 2009 Act only? What legitimate current barriers to trade or investment should ldbe kept? What are non defensible? 22
23 The End Thank You Ramesh hchaitoo 23
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