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Tài liệu 04 tariff negotiation.ppt

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SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK SEATRANET ADVANCED COURSE NON AGRICULTURAL MARKET ACCESS (NAMA) Module 3 TARIFF NEGOTIATIONS 1 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK 2 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Outline of Module 3 1. Nature of tariff Negotiations 2. Request – Offer Negotiations 3. Formula Negotiations 4. Sectoral Negotiations, including zero for zero 5. Regional Agreements 6. The Doha Development Agenda (DDA) 3 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK 1. Nature of Tariff Negotiations 4 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Nature of Tariff Negotiations Domestic Priorities • Export interests and import sensitivities • Support of domestic Economic and Social Policy – Economic development, national or regional – Social development, including employment of women – Political 5 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Export Interests and Gender Equality • Trade expansion creates jobs in export-oriented sectors • In many developing countries women often account for 53-90% of workers in export sectors • Women cannot easily move to more skilled or highly paid jobs • Export sectors can be identified, which create new opportunities both in current jobs and for future training. 6 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Import/Export Sensitivity and Gender Equality • Traditional export-oriented sectors – textile and clothing – dominated by female employees may continue to be treated as sensitive. • Prospective, new, potentially more highly paid, employment can be treated as sensitive on a prospective basis. • Clearly, trade policy by itself not a cure for gender inequality, but rather part of a domestic policy package aimed at taking advantage of trade liberalization and minimizing any negative effects. 7 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK 2. Request – Offer Negotiations 8 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Request – Offer Negotiations •Each Participant (Country) makes specific requests of other countries, and they respond with offers. Success is when the balance is perceived as equal or approximate. • Can have a target overall percentage reduction or simply continue to exchange until offers are exhausted and perceived balance is reached. • These bilateral negotiations are kept secret until agreement is reached. 9 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Benefits of Request – Offer Negotiations •Focused tariff reduction on areas of greatest interest with level of reduction dependant on interest. •Potential for exclusion or minimization of tariffs of greatest sensitivity. •Potential for smaller economies to be free riders (under the radar) as all benefits are MFN. 10 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Negative Aspects of Request – Offer Negotiations • May result in narrowly-focused results with relatively poor coverage across the range of tariffs. • Very time consuming and resource intensive. • Depending on transparency, there may be significant domestic resistance. • Smaller economies may have little to say in the overall shape of the agreement. 11 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK 3. Formula Negotiations 12 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Formula Approach A formula for “across the board” reduction of tariffs can be negotiated to be applied to an agreed base tariff. 13 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Formula Approach •There are two main types of formula: – A tariff independent formula is not dependent, in any way, on the initial tariff rate. Simple example: just reduce every tariff by a fixed rate. – A tariff dependent formula is dependent upon the initial tariff rate. Usually such a formula aims to have greater reductions for high tariff rates and smaller reductions for low rates. 14 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Formula Negotiations • Negotiations of a formula also involves an agreement on the phasing period of the reductions. 15 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Benefits of a Formula Approach • Once the coefficients in the formula have been agreed on, the negotiation can be quite simple, of short duration and not resource intensive. • During the negotiation the outcome of particular coefficient values is predictable. 16 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Benefits of a Formula Approach •Depending on the choice of formula, higher tariffs are reduced by a greater amount, there is tariff harmonization and a reduction in tariff peaks •Depending on agreed flexibilities tariff reduction is across the entire schedule, bringing about broad liberalization •There is less focused private sector resistance than in the request – offer approach, as reductions are spread across the schedule and the application is relatively transparent and easy to explain. 17 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Problems of Formula Approach •Because there is broad tariff reduction, particularly sensitive products do not get special treatment. •If tariff peaks represent greatest sensitivities, a tariffdependent formula will reduce them more than less sensitive tariffs. •If a single formula with a single coefficient is used, all parties are treated the same, i.e. no differential treatment for developing countries. 18 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK 4. Sectoral Negotiations 19 SOUTH EAST ASIA TRADE POLICY TRAINING NETWORK Sectoral Negotiations • Sector Negotiations lead to agreement to reduce or eliminate tariffs for a specific group of goods (sector or sub-sector) or for a specific industry. • Participants negotiate the definitions of the sector then agree upon a timeframe for the reduction or elimination of tariffs. 20
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