The objective of this paper is to present a survey of trade issues in WTO membership from the perspective of developing countries putting Ethiopia in focus. Developing countries are a large percentage of the World Trade Organization (WTO) membership, in which Ethiopia is on process of acquiring membership. Trade liberalization may be unilateral, bilateral, sub-regional or multilateral. The end of the cold war has witnessed an increasingly growing wave of unilateral trade liberalization accompanied by a regulatory framework that facilitates and enhances the momentum. Although the impact of unilateral trade liberalization undertaken in many countries including Ethiopia deserves discussion, the theme of this article has necessitated focus on multilateral trade liberalization under the WTO system.
As LDC, Ethiopia is likely to be given some flexibility in assuming liberalization commitments. However, it will be asked to agree to some threshold of liberalization, and it is important for Ethiopia to be prepared to undertake commitments and develop a negotiation strategy that protects its interests. In addition, to respond effectively to the requests of WTO members, it is indispensable for the government of Ethiopia to have thorough information and analyze the potential consequences of liberalization. This term paper has three main parts in which the first part will discuss about trade liberalization with its justification and protectionism and its effects on economic development.
The second part of the paper will focus on the opportunities and challenges of WTO membership to developing countries. In this part the consequences of the WTO membership of the developing countries will be analyzed in terms of its benefits and harms. The third part of the paper deals with the necessary precautions the developing countries are required to take before joining the WTO. In this part, the role of the WTO in helping the developing countries not to be affected negatively by becoming a member; necessary development level countries are required to attain before joining the WTO; and necessary measures to be undertaken during negotiation process not to take a commitment which will be against the national interest of the country. The fourth part deals on the Ethiopia WTO accession and assess the experience of WTO accessed least developing countries. Finally, the conclusion and recommendation with lessen to Ethiopia addressed.
Table of Contents
1. INTRODUCTION
1.1. Overview of Important Concepts
1.1.1. What is World Trade Organization (WTO)?
1.1.2. Developing Countries
1.2. The Justifications and Consequences of Protectionism and of the Trade Liberalization
1.2.1. Arguments Against Trade Liberalization: Protectionism
1.2.2. The Benefit of Trade Liberalization and Integration to International Trade Organizations
2. OPPORTUNITIES AND CHALLENGES OF WTO MEMBERSHIP
2.1. Opportunities of WTO Membership to Developing Countries in General
2.2. Specific Opportunities of Accession to WTO to the Developing Countries
2.2.1. Protection against Discriminatory Regulatory Measures
2.2.2. The Generalized System of Preferences (GSP)
2.2.3. Dispute Settlement
2.3. Challenges of WTO Membership to Developing Countries
2.4. Necessary Precautions Before Joining the WTO
2.4.1. The Role of the WTO in Economic Development in Developing Countries
2.4.2. The Level of Development Required to be Achieved Before Joining the WTO
2.5. The Necessary Precautions to Be Taken by Developing Countries During the Negotiation for Joining the WTO
3. WTO ACCESSION: ETHIOPIA’S PERSPECTIVE
3.1. Overview
3.2. Ethiopian accession so far
3.2.1. Preparation and Submission of the Memorandum on the Foreign-Trade Regime of Ethiopia
3.2.2. A Roadmap for Ethiopia's WTO Accession
3.2.3. The Diagnostic Trade Integration Study (DTIS)
3.2.4 Capacity-Building Activities
3.2.5. Impact-Assessment Studies
3.3. Challenges of WTO membership
4. EXPERIENCES OF LDCs ACCEDED TO THE WTO
4.1. Duration of Accession Process
4.2. Commitments of Acceded LDCs
4.2.1 Tariff Bindings in Trade in Goods
4.2.2. Transition Periods
4.2.3. Commitments on Trade in Services
4.2.4. Trade Related Aspects of Intellectual Property Rights (TRIPS)
4.2.5. Special and Differential Treatment
4.3. Implementation of WTO Accession Commitments
Research Objectives and Themes
This paper explores the implications of WTO membership for developing countries, with a primary focus on Ethiopia's ongoing accession process. It examines the experiences of least developed countries (LDCs) that have already acceded to the WTO to extract lessons for Ethiopia regarding negotiation strategies, the mitigation of potential negative impacts, and the optimization of membership benefits.
- Analysis of trade liberalization, protectionism, and their roles in economic development.
- Evaluation of the opportunities and challenges posed by WTO membership for developing nations.
- Assessment of necessary precautions and institutional preparations required for a successful accession.
- Comparative review of accession experiences among LDCs, including tariff commitments and transition periods.
- Strategic recommendations for Ethiopia to navigate accession while protecting national economic interests.
Excerpt from the Book
1.1.1. What is World Trade Organization (WTO)?
The WTO is an international organization established in 1994 for the purpose of supervising and liberalizing international trade. The organization officially entered into force on January 1, 1995 under the Marrakech Agreement, (the WTO constitution). WTO deals with the regulation of trade between member countries. The establishment of the World Trade Organization (WTO) as an international body dealing with international trade rules is aimed at facilitating trade among countries. By encouraging countries to enter into negotiations for the reduction of tariffs and for the removal of other barriers to trade, the WTO is envisaged to create competitive conditions on the global market.
The major advantage of the WTO system to exporters is the market-access security that it guarantees. In trade in goods, the Uruguay Round of negotiations has enabled to bind the tariffs of almost all developed countries and a good proportion of those of the developing and transitional economies from further increase, thereby ensuring an improved market access. In the services trade, on the other hand, countries have made commitments not to restrict access to service products and foreign-services suppliers, although there are no tariff-binding arrangements.
Once countries join the WTO, they are obligated to ensure that their rules for determining dutiable value for customs purposes, for inspecting products to ascertain conformity to mandatory standards, or for the issue of import licenses, conform to the provisions of the set pertinent standards. This is believed to provide a stable access to export markets, thus contributing to the stability of export earnings (the major concern of a commodity-exporting developing country like Ethiopia).
Summary of Chapters
1. INTRODUCTION: This chapter provides an overview of trade liberalization, the WTO framework, and outlines the research objective regarding Ethiopia's accession.
2. OPPORTUNITIES AND CHALLENGES OF WTO MEMBERSHIP: This chapter analyzes the potential benefits, such as market access, and the significant costs and risks for developing countries joining the WTO.
3. WTO ACCESSION: ETHIOPIA’S PERSPECTIVE: This chapter details Ethiopia's current status in the accession process, institutional preparations, and specific sectoral challenges.
4. EXPERIENCES OF LDCs ACCEDED TO THE WTO: This chapter reviews the actual experiences of other LDCs, focusing on the duration of the process, commitments made, and the adequacy of technical assistance.
Keywords
WTO, Accession, Ethiopia, LDCs, Trade Liberalization, Protectionism, Economic Development, Market Access, GATS, TRIPS, Technical Assistance, Negotiation Strategy, Tariff Bindings, Dispute Settlement, Developing Countries.
Frequently Asked Questions
What is the primary focus of this paper?
The paper primarily examines the trade issues related to WTO membership from the perspective of developing countries, with a specific focus on Ethiopia's accession process.
What are the central themes of the study?
The central themes include the mechanics of trade liberalization, the costs and benefits of WTO membership for developing nations, and the lessons learned from LDCs that have already acceded.
What is the main goal of the research?
The goal is to provide a comprehensive analysis of the accession process to help Ethiopia devise successful negotiation strategies and avoid mistakes when joining the WTO.
Which research methods are employed?
The study conducts a survey and analysis of WTO agreements, existing literature on LDC accessions, and specific comparative case studies of countries like Nepal and Cambodia.
What does the main body of the paper cover?
The main body covers the conceptual framework of trade liberalization, the opportunities and challenges of WTO membership, Ethiopia's specific progress, and empirical experiences of other acceded LDCs.
What are the characterizing keywords of this work?
The work is characterized by terms such as WTO, Accession, Ethiopia, LDCs, Trade Liberalization, and Economic Development.
Why does the author advocate for caution regarding Ethiopia's accession?
The author argues that Ethiopia should avoid rushing into the WTO by accepting onerous "WTO-plus" commitments that may hinder its long-term development objectives and industrial sovereignty.
How does the experience of Nepal differ from other LDCs in the WTO accession process?
Nepal is presented as a relative success story compared to other LDCs, primarily because it utilized technical assistance effectively and fostered meaningful stakeholder participation in its negotiations.
What are the "WTO-plus" and "WTO-minus" obligations mentioned?
"WTO-plus" refers to commitments that exceed the standard WTO agreement, while "WTO-minus" rights refer to the loss of rights or transition periods that original members traditionally enjoy.
- Citar trabajo
- Tewachew Alem (Autor), 2019, Accession to the WTO for developing countries. Strategies for gaining maximum benefits, Múnich, GRIN Verlag, https://www.grin.com/document/510984
