WTO In Brief

ACP OPENS NEW GENEVA OFFICE ON WTO NEGOTIATIONS

On 16 January, a new office to improve the representation of the interests of the 77 African, Caribbean and Pacific (ACP) countries at the WTO was opened in Geneva, Switzerland. The office, financed by an EU grant of €1.45 million, will help ACP countries "co-ordinate their views and strengthen their position in WTO negotiations". In addition, it will deliver technical assistance to individual ACP country representations in Geneva. According to EC Trade Commissioner Pascal Lamy, who inaugurated the office, "development issues must be at the heart of multilateral trade negotiations and we have to help ACP countries to put their views forward. In Doha, we promised to provide substantial trade-related technical assistance. Today we take a big step in this direction."

For further information on this topic, visit the EC website at: http://europa.eu.int/comm/trade/bilateral/acp/acp.htm; http://europa.eu.int/comm/trade/miti/devel/index_en.htm; http://europa.eu.int/comm/development/politique_en.htm

"EU backs launch of Geneva-based office to help African, Caribbean and Pacific countries boost World Trade Organisation presence," EU PRESS RELEASE, 16 January 2002.

APPELLATE BODY RULES AGAINST US FSC TAX BREAKS

On 14 January, the WTO's Appellate Body upheld the 20 August 2001 compliance panel that ruled the US 'Foreign Sales Corporation' FSC Repeal and Extraterritorial Income Exclusion Act of 2000 (ETI Act) to be inconsistent with WTO rules. The decision, expected by many in the trade community, now clears the way for the EC to resume its controversial request for the right to impose countermeasures in the amount of $US 4.043 billion per year on a list of US products (see BRIDGES Weekly, 21 November 2000). US Trade Representative Robert Zoellick told reporters the US would respect its WTO obligations and would continue to seek cooperation with the EU to resolve the dispute. A source close to USTR added that the process could last between three to four years, as it will affect billions of dollars in trade and taxes plus millions of jobs. EC Trade Commissioner Pascal Lamy declared, "we now have a definitive legal ruling on the FSC case [...] Now it is up to the US to comply with the WTO's findings to settle this matter once and for all". The Appellate Body Report is available at: http://www.wto.org/english/tratop_e/dispu_e/108abrw_e.pdf.

"EU welcomes WTO definitive confirmation that US export subsidies (Foreign Sales Corporations) are illegal, and calls on US to comply with WTO findings", Press release, Brussels, 14 January 2002; "U.S. Resolved to Comply With WTO, Protect Multinational Corporations," WTO Reporter, 14 January 2002.

ANNUAL REPORTS FOR WTO COMMITTEES NOW AVAILABLE

Annual reports from the following WTO Committees are now available online...

Committee on Antidumping, Subsidies and Safeguards: http://www.wto.org/english/tratop_e/adp_e/adp_e.htm#annualreports

Committee on Subsidies and Countervailing Measures: http://www.wto.org/english/tratop_e/scm_e/scm_e.htm#annualreports

Committee on Safeguards: http://www.wto.org/english/tratop_e/safeg_e/safeg_e.htm#work

Committee on Trade & Development: http://www.wto.org/english/tratop_e/devel_e/d3ctte_e.htm

Committee on Textiles & Clothing: http://www.wto.org/english/tratop_e/texti_e/texti_e.htm#work

Committee on Trade-Related Investment Measures (TRIMs): http://www.wto.org/english/tratop_e/invest_e/invest_e.htm#trims

Committee on Technical Barriers to Trade (TBT): http://www.wto.org/english/tratop_e/tbt_e/tbt_e.htm#work

TAIWAN BECOMES WTO'S 144TH MEMBER

On 1 January, Chinese Taipei became the 144th Member of the WTO, 30 days after it had notified the WTO that it had completed domestic ratification of its accession package. The accession marks the end of an attempt to enter the WTO that dates back to 1990, and raises hopes for better ties with its giant neighbour China. WTO Membership will mean mostly cheaper prices for Taiwanese consumers, though agriculture and labour-intensive industries are expected to suffer, causing already record-high unemployment levels to rise even further. But Finance Minister Yen Ching-chang said any initial shock would be a price worth paying. "Under pressure from mainland China, we are unable to join the political United Nations," Yen told a forum on Taiwan's WTO accession. "Joining the economic United Nations, the WTO, is definitely positive for raising our international status." Many hope that the entry of both Taiwan and China to the WTO will bring about an era of reconciliation between them and help ease bitter political differences.

For further technical information visit the WTO website at: http://www.wto.org/english/news_e/news_e.htm#mem

"Chinese Taipei Becomes 144th WTO Member," WTO, 1 January 2002; "Taiwan Enters WTO After Long Quest," REUTERS, 1 January 2002.