WTO accession and membership

From Wikipedia, the free encyclopedia

Jump to: navigation, search

All the WTO members have joined the organization as a result of negotiation and therefore membership means a balance of rights and obligations.[1] The process of becoming a WTO member is unique to each applicant country, and the terms of accession are dependent upon the country's stage of economic development and current trade regime.[2] The process takes about five years, on average, but it can take some countries almost a decade if the country is less than fully committed to the process or if political issues interfere. The shortest accession negotiation was that of the Kyrgyz Republic, lasting 2 years and 10 months. The longest was that of the People's Republic of China, lasting 15 years and 5 months.[3] Russia, having first applied to join GATT in 1993, is still in negotiations for membership. Recently, it has made much bigger strides by securing a bilateral trade agreement with the EU (2004) and US (2006).[4] Moldova and Georgia are the remaining two nations that Russia must make agreements with to enter the WTO.[5] As is typical of WTO procedures, an offer of accession is only given once consensus is reached among interested parties.[6]

Contents

[edit] Accession process

Status of WTO negotiations:      members (including dual-representation with the European Communities)      Draft Working Party Report or Factual Summary adopted      Goods and/or Services offers submitted      Memorandum on Foreign Trade Regime submitted      observer, negotiations to start later or no Memorandum on FTR submitted      frozen procedures or no negotiations in the last 3 years      no official interaction with the WTO
Status of WTO negotiations:      members (including dual-representation with the European Communities)      Draft Working Party Report or Factual Summary adopted      Goods and/or Services offers submitted      Memorandum on Foreign Trade Regime submitted      observer, negotiations to start later or no Memorandum on FTR submitted      frozen procedures or no negotiations in the last 3 years      no official interaction with the WTO

The process of accession can be broken down into four major stages: a country wishing to accede to the WTO submits an application to the General Council. The government applying for membership has to describe all aspects of its trade and economic policies that have a bearing on WTO agreements.[1] The application is submitted to the WTO in a memorandum which is examined by a working party open to all interested WTO Members, and dealing with the country's application. For large countries such as Russia, numerous countries participate in this process. For smaller countries "the Quad countries" – consisting of the EU, the United States, Canada, and Japan – and an applicant's neighboring countries are typically most involved.[7] The applicant then presents a detailed memorandum to the Working Party on its foreign trade regime, describing, among other things its economy, economic policies, domestic and international trade regulations, and intellectual property policies. The Working Party Members submit written questions to the Applicant to clarify aspects of its foreign trade regime with particular attention being paid to the degree of privatization in the economy and the extent to which government regulation is transparent.[8] After all necessary background information has been acquired, the Working Party will begin meeting to focus on issues of discrepancy between the WTO rules and the Applicant's international and domestic trade policies and laws. The WP determines the terms and conditions of entry into the WTO for the applicant nation, and may consider transitional periods to allow countries some leeway in complying with the WTO rules.[2]

The final phase of accession involves bilateral negotiations between the applicant nation and other Working Party members regarding the concessions and commitments on tariff levels and market access for goods and services. These talks cover tariff rates and specific market access commitments, and other policies in goods and services. The new member's commitments are to apply equally to all WTO members under normal non-discrimination rules, even though they are negotiated bilaterally. In other words, the talks determine the benefits (in the form of export opportunities and guarantees) other WTO members can expect when the new member joins. The talks can be highly complicated; it has been said that in some cases the negotiations are almost as large as an entire round of multilateral trade negotiations.[1]

When the bilateral talks conclude, the working party finalizes the terms of accession. sends an accession package, which includes a summary of all the WP meetings, the Protocol of Accession (a draft membership treaty), and lists ("schedules") of the member-to-be’s commitments to the General Council or Ministerial Conference. Once the General Council or Ministerial Conference approves of the terms of accession, the applicant's parliament must ratify the Protocol of Accession before it can become a member.[9] The documents used in the accession process which were embargoed during the accession process are released once the nation becomes a member.[2]

[edit] Members and observers

A world map of WTO participation:      members      members, dually represented with the European Communities      observer, ongoing accession      observer      non-member, negotiations pending      non-member
A world map of WTO participation:      members      members, dually represented with the European Communities      observer, ongoing accession      observer      non-member, negotiations pending      non-member

The WTO has 151 members (almost all of the 123 nations participating in the Uruguay Round signed on at its foundation, and the rest had to get membership). The 27 states of the European Union are represented also as the European Communities. Some non-sovereign autonomous entities of member states are included as separate members, since WTO members do not have to be full sovereign nation-members. Instead, they must be a customs territory with full autonomy in the conduct of their external commercial relations. Thus Hong Kong became a GATT contracting party by the now terminated "sponsorship" procedure of the United Kingdom. A new member of this type is Chinese Taipei (Taiwan), which acceded to the WTO in 2002, and carefully crafted its application.[10].

The Kingdom of Tonga was admitted on 15 December 2005 during the ministerial conference. On January 11, 2007, Vietnam became the 150th WTO member state.[11] Tonga finalized ratification of the admittance in July 2007, and thus became the 151st member state.

A number of non-members have been observers (31) at the WTO and are currently negotiating their membership: Algeria, Andorra, Azerbaijan, Bahamas (process frozen in 2001), Belarus, Bhutan, Bosnia and Herzegovina, Cape Verde, Equatorial Guinea (expected to start membership negotiations until 4 April 2007), Ethiopia, Holy See (Vatican; special exception from the rules allows it to remain observer without starting negotiations), Iran,[12] Iraq, Kazakhstan, Lao People's Democratic Republic, Lebanon, Libya, Montenegro, Russian Federation, Samoa, Sao Tome and Principe, Serbia, Seychelles (negotiations frozen since 1998), Sudan, Tajikistan, Ukraine, Uzbekistan, Vanuatu (accession agreed in 2001, but not ratified by Vanuatu itself), and Yemen. With the exception of the Holy See, observers must start accession negotiations within five years of becoming observers. Some international intergovernmental organizations are also granted observer status to WTO bodies.[13]

Syria first applied to join the WTO in October 2001, then again in January 2004 and September 2005. Its application for membership is currently still pending, waiting for WTO General Council approval to start negotiations.

The following states (15) and territories (2) so far have no official interaction with the WTO: the states of Eritrea, Somalia, Liberia, Turkmenistan, North Korea, Monaco, San Marino, East Timor, Comoros, Nauru, Tuvalu, Palau, Kiribati, Micronesia, Marshall Islands and the territories of Western Sahara, Palestine.

[edit] Notes

  1. ^ a b c Membership, Alliances and Bureaucracy, World Trade Organization
  2. ^ a b c Accessions Summary, Center for International Development
  3. ^ P. Farah, "Five Years of China’s WTO Membership", 263-304
  4. ^ Accessions: Russian Federation, World Trade Organization
    * Factsheet on U.S. – Russia WTO Bilateral Market Access Agreement, Office of the United Stated Trade Representative
    * Russia - WTO: EU-Russia Deal Brings Russia a Step Closer to WTO Membership, European Commission
  5. ^ A. Aslund, Russia's WTO Accession
    * V. Novostei, USA OKs Russia’s Entry into WTO, Pravda.Ru
  6. ^ C. Michalopoulos, WTO Accession, 64
  7. ^ C. Michalopoulos, WTO Accession, 62
  8. ^ C. Michalopoulos, WTO Accession, 63
  9. ^ How to Become a Member of the WTO, World Trade Organization
  10. ^ J.H. Jackson, Sovereignty, 109
  11. ^ For an updated list of WTO members, see here Members and Observers, World Trade Organization
  12. ^ Iran first applied to join the WTO in 1996, but the United States, accusing Tehran of supporting international terrorism, vetoed its application 22 times. The U.S. said in March it would drop its veto on a start to Iran's accession negotiations. The U.S. has chosen not to veto Iran's latest application for membership as part of a nuclear related compromise.
  13. ^ International Intergovernmental Organizations Granted Observer Status to WTO Bodies, World Trade Organization

[edit] References

Retrieved from "http://en.wikipedia.org/wiki/WTO_accession_and_membership"
Personal tools