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Energy Systems and Technologies for the Coming Century ...

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<strong>the</strong>ir precise scope <strong>and</strong> nature differ across <strong>the</strong>se areas. The MFN rulerequires that a WTO member must apply <strong>the</strong> same conditions on all tradewith o<strong>the</strong>r WTO members. National treatment means that imported goodsshould be treated no less favourably than domestically produced goods<strong>and</strong> was introduced to tackle non-tariff barriers <strong>and</strong> discrimination againstimported goods. Reciprocity. Reduction in tariffs <strong>and</strong> elimination of trade barriers shall bereciprocal. This makes trade liberalization laws <strong>and</strong> regulations easier topass in countries that seek greater access to markets in o<strong>the</strong>r countries.Reciprocal concessions intend to ensure that such gains will materialise. Binding <strong>and</strong> en<strong>for</strong>ceable commitments. The tariff commitments made byWTO members in a multilateral trade negotiation <strong>and</strong> on accession areenumerated in a schedule (list) of concessions. These schedulesestablish "ceiling bindings": a country can change its bindings, but onlyafter negotiating with its trading partners, which could meancompensating <strong>the</strong>m <strong>for</strong> loss of trade. If satisfaction is not obtained, <strong>the</strong>complaining country may invoke <strong>the</strong> WTO dispute settlement procedures. Transparency. The WTO members are required to publish <strong>the</strong>ir traderegulations, to maintain institutions allowing <strong>for</strong> <strong>the</strong> review ofadministrative decisions affecting trade, to respond to requests <strong>for</strong>in<strong>for</strong>mation by o<strong>the</strong>r members, <strong>and</strong> to notify changes in trade policies to<strong>the</strong> WTO. Safety valves. In specific circumstances, governments are able to restricttrade. There are three types of provisions in this direction: articlesallowing <strong>for</strong> <strong>the</strong> use of trade measures to attain noneconomic objectives;articles aimed at ensuring "fair competition"; <strong>and</strong> provisions permittingintervention in trade <strong>for</strong> economic reasons. Exceptions to <strong>the</strong> MFNprinciple also allow <strong>for</strong> preferential treatment of developed countries,regional free trade areas <strong>and</strong> customs unions.WTO is a rule-based system made up over 60 agreements, annexes, decisions, <strong>and</strong>underst<strong>and</strong>ings reached through negotiations among WTO members. Theseagreements cover <strong>the</strong> rules <strong>and</strong> exceptions <strong>for</strong> international trade on goods, services,<strong>and</strong> intellectual properties. These agreements can be divided into six main types:umbrella WTO Agreement, goods, services, intellectual property, disputes <strong>and</strong> tradepolicy reviews (see Table 9).Table 9. The Structure of WTO AgreementsUmbrellaAgreement Establishing WTOGoods Services IntellectualPropertyBasic Principles GATT GATS TRIPSAdditional details O<strong>the</strong>r goodsService annexesagreements <strong>and</strong>annexesMarket accesscommitmentsDisputesettlementTransparencySource: WTOCountries’ schedulesof commitmentsCountries’ schedules ofcommitments (<strong>and</strong> MFNexemptions)Dispute SettlementTrade policy reviewsRisø International <strong>Energy</strong> Conference 2011 Proceedings Page 103

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