1/ The WTO’s 25 years of achievement and challenges

1 January 2020

As the WTO marks its 25-year anniversary, Director-General Roberto Azevêdo reflects on the organisation’s achievements and on the formidable challenges it faces in the coming years.

The WTO at 25: A message from the Director-General

Over this past quarter century, the WTO has helped transform international economic relations.

Binding rules for global trade in goods and services have facilitated dramatic growth in cross-border business activity. Since 1995, the dollar value of world trade has nearly quadrupled, while the real volume of world trade has expanded by 2.7 times. This far outstrips the two-fold increase in world GDP over that period.

Average tariffs have almost halved, from 10.5% to 6.4%. For the dozens of economies that joined the WTO after its creation, accession involved far-reaching reforms and market-opening commitments that research suggests have been associated with a lasting boost to national income.

The predictable market conditions fostered by the WTO have combined with improved communications to enable the rise of global value chains. Confident in their ability to move components and associated services across multiple locations, businesses have been able to disaggregate manufacturing production across countries and regions. Trade within these value chains today accounts for almost 70% of total merchandise trade.

The rise of GVCs has been a key factor in enabling rapid catch-up growth in developing economies, while facilitating increased purchasing power and consumer choice in all countries. It is not a coincidence that the past 25 years have seen the fastest poverty reduction in history: in 1995, over one in three people living around the world fell below the World Bank’s $1.90 threshold for extreme poverty. Today the extreme poverty rate is less than 10%, the lowest ever.

In recent years, WTO members have agreed to streamline border procedures through a landmark agreement on trade facilitation projected to lift trade by over $1 trillion per year. They have also liberalised trade in information technology products and abolished harmful farm export subsidies.

Despite these considerable achievements, it is no exaggeration to say that the WTO faces challenges today that are unmatched in our relatively short history. Over the past two years, governments have introduced trade restrictions covering a substantial amount of international trade — affecting $747 billion in global imports in the past year alone. The rising uncertainty about market conditions is causing businesses to postpone investment, weighing on growth and the future potential of our economies. How WTO member governments face up to these challenges will shape the course of the global economy for decades to come.

On balance though there is no doubt that the WTO and the trading system we oversee are regarded by our 164 members as a public good worth preserving and strengthening. This may explain the quiet dynamism in the WTO’s corridors. This energy is palpable, and it suggests profound changes are in the works.

The WTO’s negotiating functions are now seeing a phase of experimentation that promises to give rise to new rules of direct relevance to the 21st century economy and contemporary sustainability concerns.

As 2019 drew to a close, we saw a reset in the critically important negotiations aimed at slashing the most harmful fishing subsidies which are depleting our oceans. Members know that we must have an agreement by June at our 12th Ministerial Conference in Nur-Sultan, Kazakhstan, or we will have to collectively shoulder the blame for missing a critical target for the Sustainable Development Goals. Agriculture negotiations have been reenergised with members taking pragmatic steps to identify where agreement on vitally important issues may be reached.

Groups of members are also working towards new rules on a range of issues — electronic commerce, investment facilitation, domestic regulation in services — that aim to make trade more efficient and predictable in cutting-edge sectors of the economy. Members are seeking, as well, to make it easier, safer and more viable for women and smaller businesses to participate in global trade. This would help make trade more inclusive.

It is true that in dispute settlement we suffered a setback at the end of 2019 when members could not agree on reforms for the Appellate Body. But I have already started consultations with members to explore all aspects of dispute settlement reform and will engage at high political levels both in Geneva and in capitals to identify potential solutions. At the same time, many members are weighing an array of creative interim options to keep two-stage dispute settlement operational while we search for a permanent arrangement.

I continue to believe that the WTO is more important than ever before for the global economy, for job creation, for growth and for development. And despite the uncertainties around trade today, I think 2020 has real potential to deliver meaningful results. There is a good chance that negotiations percolating in Geneva will bear fruit in Nur-Sultan, in the shape of new agreements or frameworks. In fact, it’s conceivable that MC12 could produce one of the most impressive clusters of agreements in our history.

If the last 25 years have taught us anything about the WTO, it is that this organization is resilient and resourceful. We have served our members well over this past quarter of a century and we will continue to do so in the future.

Source: wto.org

 

2/ Vietnam ready for ASEAN Chairmanship Year 2020: ambassador

03 January 2020

As the permanent representative of Vietnam – the Chairman of ASEAN in 2020, the mission will preside over about 300 meetings during the year, Ambassador and head of the Vietnamese Permanent Mission to ASEAN Tran Duc Binh told Vietnam News Agency correspondents in Jakarta.

The mission will coordinate with Vietnamese agencies in the homeland and the ASEAN Secretariat in Jakarta to enhance consultation and information sharing with the group’s member nations through committees and ambassador-level cooperation mechanisms between ASEAN and partners.

The mission is scheduled to propose the adoption of a regulation or form to promote coordination between ASEAN cooperation channels, and participate in negotiations of cooperation documents between ASEAN and partners.

In 2020, up to seven action plans between ASEAN and its partners such as China, India, New Zealand, Russia, the US and Canada will be built and submitted to ministers and senior leaders for approval.

Ambassador Binh highlighted the effective implementation of regional cooperation, and plans and programmes to build the ASEAN Community over the past year. He stressed that the group has made important efforts in building the community as well as maintaining its centre role in the region.

According to the diplomat, the Vietnamese Permanent Mission to ASEAN has actively joined ASEAN’s activities in Jakarta and within the framework of the Committee of Permanent Representatives to ASEAN (CPR), and contributed to intra-bloc cooperation, as well as cooperation between the group and its partners.

As a member of the ASEAN Connectivity Coordinating Committee, the mission took part in promoting joint activities. Especially in 2019, the mission and permanent representatives of other ASEAN member countries worked with the ASEAN Secretariat and consultants to issue the list of priority infrastructure projects, which is a crucial foundation for calling for support from regional and international financial organisations for ASEAN in developing infrastructure.

Besides, the mission participated in the Initiative for ASEAN Integration Task Force, which was proposed and approved by Vietnam in 2000 when it was the chair of the CPR in 2000-2001. This initiative is the basis for ASEAN member nations to cooperate with each other. The mission coordinated with other permanent representatives of ASEAN countries in monitoring and promoting cooperation projects between the group and its partners, as well as in drafting important documents and submitting them to ministers and senior leaders for approval. The documents included the ASEAN-EU statement on cybersecurity cooperation, the ASEAN-Australia Action Plan in 2020-2024, and the East Asia Summit’s statement on cooperation to combat drug trafficking and transnational crime, among others.

Binh said all documents that the mission participated in building showed ASEAN’s stance and Vietnam’s important priorities in promoting ASEAN cooperation.

As the country coordinator of the ASEAN-Japan relations for 2018-2021, the mission presided over and carried out many cooperation activities with the Japanese mission to ASEAN as well as with the Japanese Ministry of Foreign Affairs, he noted.

The mission also coordinated with agencies in Vietnam to organise the first ASEAN-Japan Day in Vietnam to celebrate the 45th anniversary of the ASEAN-Japan partnership, the ambassador said.

Source: VNA

 

3/ Việt Nam targets $300 billion export value for 2020 after four-year trade surplus record

06 January 2020

For the first time, the nation’s trade turnover surpassed the $500-billion mark this year, witnessing the strongest growth of the Vietnamese-invested sector compared to foreign invested sector.

At a ceremony on Monday, Prime Minister Nguyễn Xuân Phúc highlighted the efforts made by ministries, localities and the business community, especially in the context that global trade this year had witnessed a 10-year low of just 1.2 per cent amidst trade conflicts.

Over the past eight years Việt Nam’s import-export value had soared 2.5 times, reaching $517 billion in 2019.

In 2019, 32 products witnessed turnover of more than $1 billion, and six sectors reached a turnover of over $10 billion, accounting for nearly 93 per cent of the total.

Việt Nam had tackled import-export related difficulties to boost the country’s trade, the Prime Minister emphasised, noting solutions to promote the ASEAN Single Window platform, electronic customs clearance and credit guarantees for exports.

The data showed that Việt Nam’s import-export value had increased 170 times compared to the time it embarked on the renewal process (1986), 37 times over the value when it joined ASEAN (1995) and five times over the year it was admitted to the World Trade Organisation (2007).

PM Phúc said policies on imports and exports had led to positive results. Việt Nam had negotiated and signed 14 free trade agreements (FTAs), of which the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Agreement was the most significant.

The total value of imports and exports from 2000-19 reached nearly $4 trillion, of which, only in the last five years, Việt Nam’s trade turnover surpassed $2.1 trillion.

The country has jumped on the global trade map, from 50th in exports and 44th in imports in 2006 to 26th in exports and 23rd in imports in 2018. This had helped Việt Nam maintain its position in the 30 biggest importers and exporters in the world and rank third in ASEAN, after Singapore and Thailand, PM Phúc said.

$300 billion export value target for 2020

Setting a goal of $300 billion in export turnover for 2020, the Prime Minister asked ministries and localities to work closely to attain the fifth-year trade surplus for the country.

He said Vietnamese businesses should work with foreign invested enterprises for mutual benefits, while continuing to defend and protect Vietnamese goods, protect key products and avoid litigation from foreign trade.

The Prime Minister also suggested fighting trade fraud, smuggling and handling violations of intellectual property rights, creating a fair, open and transparent business environment and reducing import and export costs of commodities.

Source: VNS

 

4/ General Department of Vietnam Customs actively solves problems of C/O

06 January 2020

To facilitate the import-export activities of enterprises, the General Department of Vietnam Customs has actively solved problems relating to certificates of origin (C/O).

Philip Morris Co., Ltd. remarked that, currently, enterprises have six preferential C/Os that were verified in 2015, but they have not received the verification results from the General Department of Vietnam Customs. Enterprises suggested that, for cases of C/O verification, the General Department of Vietnam Customs could provide the information to enterprises regarding: “The number of diplomatic notes/dispatches sent from the General Department of Vietnam Customs to the country granting the C/O as well as the place of receipt where the note was sent for businesses so that they could be more proactive in verifying the C/O.”

Regarding this issue, the General Department of Vietnam Customs said that, according to the enterprises, there were six preferential C/Os verified in 2015, but the results have not yet been released. However, according to a report by Can Tho Customs Department in Official Dispatch No.765/HQCT-NV dated May 17, 2019, Can Tho Customs proposed verification of five C/Os but there was no result.

On September 6, 2019, the General Department of Vietnam Customs issued official letter VN-06918/D-PL for verification and sent to the competent agency of the Philippines.

Accordingly, the address of receipt sent by the General Department of Vietnam Customs was:

1. Export Coordination Division Assessment And Operation Coordinating Group.

Bureau of Customs Export Coordination Division Office of the Commissioner 14th Street, Port Area, Manila.

2. Assessment And Operation Coordinating Group Bureau of Customs Department of Finance 3/F POM Building Gate 3, South Harbor, Port Area Manila, Philippines 1000.

Some enterprises have questioned the processing time of C/O form E and some other forms that Customs required to send for verification.

Regarding this issue, according to the General Department of Vietnam Customs, in the case there is information on the authenticity of a C/O, the customs authority would conduct C/O verification in accordance with Clause 4, Article 8 of Circular 38/2018 /TT-BTC. The verification would be done by the General Department of Vietnam Customs, based on dossiers and reports by the local Customs Department.

When receiving the verification results from the competent agency granting the C/O, the customs authority would immediately notify the enterprise. The notification of C/O verification depends on the time of receiving the verification results from the competent authority granting the C/O, specifically China’s competent authorities granting C/O form E.

However, according to Clause 6, Article 19 of Circular 38/2018/TT-BTC, the verification process should be carried out within 180 days from the day when the General Department of Vietnam Customs sends a document for verification.

For cases where C/O sent for verification exceeded the limit, the local customs authority would report to the General Department of Vietnam Customs and notify the enterprise immediately after receiving guidance from the General Department of Vietnam Customs.

Some businesses also said that the ASEAN Trade in Goods Agreement stipulating C/O form D would takes effect within 12 months from the date of issue and must be submitted to the customs authorities of the importing member countries within that time limit. However, according to the regulations of Vietnam Customs, enterprises can only send C/O form D within 30 days from the date of implementing customs declaration. Enterprises asked why there was a difference in the deadline for submission of C/O?

Regarding the question from enterprises, according to the General Department of Vietnam Customs, in Clause 1, Article 14, Annex VII, Circular 22/2016/TT-BCT dated October 3, 2016 of the Ministry of Industry and Trade stipulating the validity period of C/O; Article 7 of Circular 38/2018/TT-BTC dated 20 April, 2018, of the Ministry of Finance stipulating the time to submit C/O to enjoy preferential tariffs.

According to the General Department of Vietnam Customs, these were two different concepts, whereby customs declarants who want to enjoy special preferential tax rates must submit to Customs offices a valid certificate of origin (C/O) (validity period of 12 months) at the time of implementing customs procedure as prescribed in Clause 1, Article 7 of Circular 38/2018/TT-BTC (within 30 days).

Some enterprises suggested that customs authorities should update and unify HS codes between the agreement and preferential tariffs. Customs authorities should be flexible in handling this problem.

Regarding this issue, the General Department of Vietnam Customs said that, pursuant to Article 5 of the Customs Law 2014 stipulating the application of international treaties and international practices relating to customs; pursuant to Article 4 of Decree 31/2018/ND-CP of the Government; pursuant to Clause 2, Appendix 2, issued together with Decision No.44/2008/QD-BCT dated December 8, 2008, of the Ministry of Industry and Trade promulgating the regulation on granting certificates of goods origin form AJ in order to enjoy preferential tariffs according to the ASEAN-Japan Comprehensive Economic Partnership Agreement, this Annex was based on the Harmonized System amended on 1 January, 2002.

The General Department of Vietnam Customs said that, according to those regulations, Decision No.44/2008/QĐ-BCT was still valid. It means that the declaration of HS codes in C/O form AJ (with the HS code of 2007, 2012) of the importing country (as presented by the enterprise) still complied with regulations. Therefore, the case of HS code on C/O form AJ under the harmonized system in 2007 and 2012 was different from the HS code as present on the declaration, it may be considered as small difference so it would not affect the validity of C/O if the difference of HS code on the C/O with the code on the import goods declaration did not change the nature of goods origin and the actual imported goods must conform to the description of the goods as described on C/O prescribed at Point h, Clause 6, Article 15 of Circular 38/2018/TT-BTC by the Ministry of Finance.

The enterprises said the verification of preferential C/O took too long.

The General Department of Vietnam Customs said that C/O verification should comply with the provisions of the agreements. However, in practice, some member countries have a delay in responding to the request for verification. The General Department of Vietnam Customs would take measures, such as urging the response or refusal of C/O due to the time limit for verification as prescribed.

Source: VCN

 

5/ Businesses need to enhance competitiveness in RCEP market

06 January 2020

As of January 1, Vietnam has officially taken on the role of ASEAN Chair 2020. With the new position, the country has set out a number of priorities, including the facilitation of the signing of the RCEP.

The RCEP is expected to be signed in February between the 10 ASEAN member states and six partners, although India has a number of issues which it is currently attempting to resolve.

Despite the absence of India from the trade pact, RCEP will serve to create the world’s largest free trade area with approximately 3.5 billion people, making up 30 per cent of global GDP.

The trade deal will also help unify six separate bilateral free trade agreements (FTAs) between ASEAN and each nation of the remaining six RCEP partners.

Moreover, once in effect, the RCEP is expected to create additional opportunities for market expansion for the country’s manufacturing industry.

Despite this, a number of domestic enterprises are concerned that partners among RCEP members have similar products to the ones produced in Vietnam, in addition to being more competitive.

Assoc. Prof. Dr. Dang Hoang Linh, Head of Economics Department under the Diplomatic Academy of Vietnam, pointed out that locals items such as agricultural products, processed goods, and garments enjoy competitive advantage over those that come from other regional nations such as China and Thailand.

Elsewhere, the country is forecast to face stiff competition from regional rivals in sectors such as human resources, finance, banking, and telecoms, according to Assoc. Prof. Dr Linh.

Experts have advised Vietnamese businesses to stay proactive in gaining insights into the agreement’s specific content that relates to their respective industry and strive to improve product quality as a means of enhancing their competitiveness in the RCEP market.

Source: VOV

 

6/ International standard for welding symbols now updated

6 January 2020

Welding symbols are a necessary element of engineering, providing a common language for all involved in fabrication, from designers to the shop floor. The internationally agreed standard for these symbols has been updated.

They may look like hieroglyphics to the untrained, but welding symbols are an essential communication tool in the manufacturing industry that allows welders to put things together accurately and efficiently. While symbols abound, two systems from Europe and from Pacific Rim countries are the most widely used in technical drawings around the world.

ISO 2553, Welding and allied processes – Symbolic representation on drawings – Welded joints, combines both systems and is the key industry International Standard for welding symbols. It shows, on technical drawings, how and where welds are to be made, including information such as geometry, manufacture, quality and testing of the welds. It provides for easy comparison between both systems, where needed.

This fifth edition contains updates to align with other ISO welding standards and clarifies some issues such as plug welds in circular and elongated holes, dimensioning of joint preparations, and improvements to figures.

Source: iso.org

 

7/ Applications open for 12th WIPO-WTO Advanced Course on Intellectual Property

7 January 2020

The World Intellectual Property Organization (WIPO) and the WTO will hold the 12th annual Advanced Course on Intellectual Property for government officials from 16 to 27 March 2020. The deadline to submit applications is 17 January 2020.

What is the course about?

The purpose of the course is to enhance the capacity of policymakers to develop national expertise in global intellectual property law and policy issues. This course will focus on new developments and policy issues under debate in the two organizations. Participants will benefit from engaging with experts and stakeholders on a range of IP issues, including fast-evolving topics in today’s digital world such as artificial intelligence and IP, e-commerce and biotechnology.

Who should apply?

Senior government officials who want to build their technical knowledge and policymaking expertise on global IP issues may apply.

This course is designed for senior government officials involved in IP law and policymaking. Candidates must be responsible for IP and related policy issues in their country, demonstrate knowledge or professional experience in the field of IP, possess an extensive practical background in IP law, policy and practice and be proficient in English, the working language of the course.

How to apply?

WTO members and observers eligible to benefit from WTO training activities are invited to nominate up to three capital-based officials by 17 January 2020.

Source: wto.org

 

8/ Diversification vital for Vietnam

08 January 2020

Vietnam’s largest export market for fresh produce, China, has tightened import standards leaving Vietnam to look toward other markets.

Since 2018 China has been increasing its requirements for many fruits and vegetables exported from Vietnam, with new rules regarding testing, quarantine, quality control and traceability introduced.

According to a Nhân Dân report, data from Vietnam’s Import-Export Department (Ministry of Industry and Trade) shows the value of fresh produce exported to China in the first ten months of 2019 reached US$2.08bn, a 14.5 per cent drop compared to the same period in 2018.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetables Association, told Nhân Dân that Vietnamese companies had not yet been able to fully adapt to China’s new requirements.

Nguyen said to compensate for this, exporters were turning to other markets, particularly those Vietnam has signed Free Trade Agreements (FTA) with, such as the EU, South Korea and Japan.

In the first 10 months of 2019, the export revenue of fruits and vegetables sent to markets excluding China increased by 10 per cent.

Notably, export revenue to the EU rose 32.2 per cent (to US$121.7 million) on the back of a new FTA. Meanwhile, export revenue to ASEAN countries increased 26.6 per cent (to US$146.4m) and export revenue to Japan rose 26.2 per cent (to US$100.7m).

Nguyen Thi Mai Linh, head of the Agricultural, Forest and Aquatic Product Import-Export Division in Vietnam’s Import-Export Department, told Nhân Dân these markets contained lots of potential and the growth in exports to these markets may be a silver lining to Vietnam’s troubles with China.

Linh said Vietnam’s Ministry of Industry and Trade had been helping companies to take advantage of Vietnams’ FTAs, but the fresh produce industry also had to improve the quality of its produce and meet the standards of importing countries to increase the competitiveness of Vietnamese produce.

Source: Fruitnet

 

9/ Panel report adopted regarding Moroccan measures on hot-rolled steel from Turkey

8 January 2020

At a meeting of the Dispute Settlement Body (DSB) on 8 January, WTO members formally adopted the panel and Appellate Body reports in a case brought by Turkey regarding anti-dumping measures imposed by Morocco on imports of certain hot-rolled steel products from Turkey.

The panel report, circulated to WTO members on 31 October 2018, found that Moroccan authorities had violated several provisions of the WTO’s Anti-Dumping Agreement in their investigation on the targeted Turkish imports. On 20 November 2018 Morocco notified its decision to appeal certain panel findings.

On 4 December 2019, the Chair of the Appellate Body informed the DSB that it had received a letter from Morocco indicating the withdrawal of its appeal. The Appellate Body issued its report on 10 December stating that, in view of Morocco’s withdrawal of the appeal, it had completed its work and that the 30-day period for the DSB’s formal adoption of the ruling began from the circulation of the Appellate Body report.

The DSB adopted the panel report and Appellate Body report. Morocco will now have 30 days to inform the DSB of its intentions in regards to the implementation of the ruling.

Source: wto.org

 

10/ Figuring out finance in 2020 ISOfocus

9 January 2020

A new wave of disruption more forceful and more pervasive than what we have seen in recent years will likely unfold in the next decade. In the ISOfocus magazine (January/February 2020) entitled “A new wave of finance”, you will learn how standards can make a difference.

Foremost among the drivers of disruption should still be technology, says Deloitte Insights of the 2020 banking and capital markets outlook. These forces can change how banking is done. Banking should become more open, transparent, real-time, intelligent, tailored, secure, seamless, and deeply integrated into consumers’ lives and institutional clients’ operations.

Newly appointed ISO President Eddy Njoroge explains in his opening remarks: “With technology evolving at a fast pace, challenges are bound to rise in areas of information management, data management and cybersecurity.

“To this end, it is essential not only to promote the use of standards that can give the sector a competitive edge, but also to ensure the development of financial standards that can leverage on emerging technologies like blockchain, which promote efficiency and financial inclusion.”

Each of these forces presents exciting opportunities for finance. But they also engender new risks: How do we make long-term finance standards in the face of so much uncertainty?

This question is at the heart of the latest ISOfocus. Enriched throughout with international case studies and contributions from industry experts, the January/February 2020 issue provides a comprehensive and lively overview of today’s and tomorrow’s finance industry. A special focus on e-commerce also highlights the role of International Standards in shaping this technological disruptor and what’s in store for 2020.

Other highlights in this edition include articles on digital currencies, financial messaging systems for the banking industry and universal access to financial services.

Uncover all the latest trends in the newest ISOfocus issue!

Source: iso.org

 

11/ Building a framework for a sustainable future

9 January 2020

Tackling climate change, poverty and inequality requires an innovative financial system. In an interview with ISOfocus, Peter J. Young, Chair of the new ISO/TC 322 on sustainable finance, puts a compelling case for why International Standards are essential for mobilizing finance globally to address these environmental and social imperatives and ensure future prosperity.

What is sustainable finance and why does it matter? Economic growth has created unprecedented prosperity for many, but it has come at a high price – climate change, inequality and severely depleted natural resources. According to WWF, the world’s leading independent conservation organization, if we are to tackle these issues successfully, huge amounts of capital need to be shifted to more sustainable low-carbon sectors.

Commitment demonstrated through both public and private investment, and a new financial system, are urgently needed to meet these challenges, and to achieve the United Nations Sustainable Development Goals, which are designed to shift the world on to a path of sustainable prosperity in just over a decade. Time is running out. At the World Economic Forum Sustainable Development Impact Summit in New York in 2019, business leaders and public figures voiced concerns about the lack of progress, pointing to a deficiency in innovative financial solutions focused on sustainability.

So how can sustainability considerations, including environmental, social and governance practices, be integrated into the financing of economic activities? Peter J. Young, Chair of the recently formed technical committee ISO/TC 322, Sustainable finance, has some answers.

ISOfocus: With the world facing many challenges, from climate change to inequality, why is sustainable finance so important?

Peter J. Young: Sustainable finance is at the heart of solving the biggest global challenges that confront us today. Financial activities are vital for the transition to a sustainable global society – addressing key needs such as economic stability, poverty, inequality, climate change, environmental degradation, prosperity, societal stability in peace, and justice.

Financial services are estimated to be between 12 % and 19 % of the global economy. This is a huge sector characterized by many segments, often operating and regulated with limited overlap. The shift towards sustainable finance requires both an increase in coherence and a facilitation by common approaches, two elements that International Standards can help provide.

Achieving the United Nations Sustainable Development Goals (SDGs) by 2030 will require doubling current investment flows to the range of USD 5 trillion to USD 7 trillion each year, requiring a significant scaling up of both capital flows and the capacity to practise sustainable finance. This is essential to deliver strong, sustainable, balanced and inclusive growth, addressing the SDGs’ 2030 targets and international climate change commitments. All countries are falling short, but the greatest gap is in developing countries where a large increase in foreign direct investment is required. This can only be facilitated by increasing consistency, transparency and security in the sustainable finance market.

Why did ISO create a technical committee to address the subject?

Currently, there is no globally agreed definition of sustainable finance as applied to the practices, activities and products of the financial sector. There are also varying interpretations of what constitutes good sustainable finance practice and these issues are a drag on progress. Tackling these uncertainties is part of what ISO/TC 322 was created to help address.

A large number of voluntary and regulatory activities are being developed by countries, regions and sectors. Many of these are explicit in recognizing the benefit that International Standards could offer, although none is involved in developing such standards across the whole market. This partly reflects the fact that these stakeholders have had limited exposure to International Standards and developing them requires ISO/TC 322 to access a whole new audience, get them to engage in the ISO processes and direct them through their national standards bodies to participate. This is a challenge in itself.

The role of ISO/TC 322 is to establish a framework under which new standards may be developed to define and guide certain sustainable finance activities. This is a very broad remit which cannot be achieved without considerable contributions from other ISO/TCs (several of which already have directly applicable standards; for example, supporting management and reporting) and from external stakeholders and organizations.

ISO/TC 322 will reach its goals, partly by providing a harmonizing and collaborative platform for all relevant sustainable finance work and partly by developing new standards, often in cooperation with other ISO/TCs as appropriate.

What are your goals and hopes for the TC work programme?

I believe the planned work has global implications and is of interest to a great number of countries and organizations from across the global financial services sector. This structured ISO standards programme for sustainable finance will help align global financial systems with sustainability. Specific outcomes I would like to see arising from ISO/TC 322’s work include:

  • Development of globally recognized common terminologies, principles and standards for sustainable finance, helping to reduce market confusion and lowering transaction, verification and communication costs for players engaged in the sustainable finance market
  • Clearly defined standards to help prevent “sustainability washing”, underpin the credibility, integrity and scalability of sustainable finance activities, and guide financial institutions (including banks, investors and insurers) to better integrate environment, social and governance (ESG) considerations into investment and finance practices
  • Improved understanding of sustainable finance activities to facilitate the innovation and development of sustainable financial products, as well as related services such as third-party verifications and ESG data provision
  • Standardized metrics to allow the measurement and improved transparency of sustainable finance flows and the ESG performance of sustainable finance activities, financial institutions and markets
What are the TC work items, if any, that are currently underway?

ISO/TC 322 aims to support the alignment of the global financial system with the SDGs by developing standards (including a terminology guide, high-level principles, a framework, and specific technical standards to populate the framework) for financial institutions and financial products. This broad remit means we need a deep understanding of existing relevant activities, whether by other ISO technical committees or external organizations.

Existing work is, therefore, focused on enabling activities involving a “stock-taking” study group to map existing initiatives and needs, and a terminology group to develop a technical glossary. This glossary – potentially in the form of a technical report – will organize and explain commonly used terms and languages on sustainable finance, including sustainable finance concepts, financial products, analytical tools, organizations and initiatives. It is already under development with a view to publishing in 2020.

The first ISO standard envisaged sets out good-practice principles for sustainable finance applicable globally. It will provide a context for the development and role of future specific standards by providing consistent understanding of sustainable finance concepts, a framework for informed decision making and risk mitigation, techniques for measuring benefits and guidance on disclosure.

Do you have any future aspirations for the standards to be developed?

ISO/TC 322’s aim is to consolidate the rapid learning and innovations in sustainable finance at an international scale and enable all countries to finance delivery of the SDGs at a faster pace, lower cost and reduced risk. It wants to expose financial organizations to the value of the international standardization process. I also want us to anticipate and facilitate the trend towards a more balanced sustainable approach, competent in meeting ESG goals in even measure.

Building on the early work above (and bearing in mind that we have only existed for about nine months), my aspiration is to see a suite of technical standards developed over coming years. These could cover impact assessment requirements, disclosure requirements, verification and stewardship. Each can be applied to the major financial products which can deliver sustainable outcomes, including sustainable loans, sustainable bonds, funds, insurance, private equity and listed stocks.

Some standards will be delivered by supporting other technical committees and subcommittees (e.g. ISO/TC 207/SC 4 on its work related to sustainable lending/bonds) and some by joint working groups (e.g. with ISO/TC 207/WG 11 on green finance) to ensure the necessary expertise is convened during the standards development process. Close working relationships will have also been established with other organizations active in segments of the financial community.

Our outputs will help guide the sustainable operations of financial institutions and investees, define and classify sustainable finance activities, measure the sustainability impact, enhance transparency and ensure integrity of sustainable finance activities. They would help accelerate the growth of sustainable finance and provide reliable mechanisms for mobilizing finance globally to address our most pressing environmental, climate and social challenges.

Source: iso.org

 

12/ The migration of money

9 January 2020

The global financial system is currently undergoing its most far-reaching transformation in recent history as new market infrastructure, such as instant payment platforms, is being implemented worldwide. Underpinning these developments is ISO 20022, an international messaging standard that promises to be a game changer in payments.

The movement of goods and people is fundamental to global trade and is one of the areas where International Standards excel. From containers in which to pack goods, to electronic systems that identify contents and help with customs clearance, the headaches of moving stuff around are substantially reduced by standards. But the other half of the economic equation involves moving money, and this presents a whole different set of problems. Once again, ISO standards provide a solution.

In this ISOfocus dedicated to finance, we are looking at new technologies, including cryptocurrencies, that can circumvent some of the issues associated with transferring conventional fiat money. But they don’t work for everyone, and as you’ll see elsewhere in this issue, they do come with their own problems.

Trust: the essential component

People have been sending money, and other objects of value, to each other across great distances and even national boundaries for centuries. The earliest systems were established along the Silk Road over a thousand years ago and relied on a network of people who knew each other, at least by reputation.

Simply put, a person in one place who wanted to send things of value, such as coins, to a distant partner would approach an agent in their own region and explain how much they wanted to send, to whom and where. The sum would then be entrusted to this transfer agent, who would reach out to his network of fellow brokers and couriers. In many cases, multiple parties would become involved in a chain established through meetings and written notes that would end with the person receiving their payment.

Each step along the way required trust built on an established reputation and paid for in the form of a commission. This type of system is widely known as hawala in the Islamic world and continues to this day. Economists might classify hawala as an “informal” value transfer system, but that name can be misleading. It may not use the same sort of corporate structures and financial instruments as western systems, but it is highly organized, has stood the test of time and is trusted and widely used today. In fact, millions of migrant workers rely on hawala to send money back home to their families, particularly in countries where banking infrastructure is less developed, or has been wiped out through disaster.

Down to the wire

It was only at the end of the 18th century that a system for sending money was created within the western banking model. This began with money orders, which were effectively promissory notes that could be exchanged and redeemed between specified parties. The broker in the middle would typically be an institution, rather than a network of individuals.

The system was established in the United Kingdom where, in later times, post offices fulfilled the role of issuer and broker of the arrangement. It is their involvement, and evolution of the system, that gives rise to the name “postal order” for this type of transfer. Like hawala, the system is still in use today and is invaluable for those who don’t have a bank account. And like hawala, the central element is trust. All parties must be confident that the instruction given will be clearly understood, reliably transmitted and the payment honoured.

Despite significant operational differences between systems, these same principles are essential to any successful money transfer system, as I learnt when I spoke to Karin Deridder, Head of Standards Development at SWIFT, an organization that facilitates more than ten billion successful financial transactions each year.

The rise of SWIFT

Karin started out giving me some much needed background. SWIFT, whose name is an acronym for the Society for Worldwide Interbank Financial Telecommunication, is a global organization based in Belgium that has established a network to enable financial institutions around the world to send and receive information about transactions in a secure, standardized and reliable way. It came in to being when existing systems such as money orders and, later, wire transfers just couldn’t keep up with the pace of post-industrial finance.

Asked about the role of standards, Karin is clear that things simply couldn’t function without them. “Since its inception in the 1970s, standards have been an essential component of SWIFT’s way of working.” As such, SWIFT has a close working relationship with ISO, acting as the Registration Authority (RA) [1]. for ISO 13616 (which covers International Bank Account Numbers [IBAN]), ISO 10383 (which defines Market Identifier Codes [MIC]), ISO 9362 (which defines Business Identifier Codes [BIC]), ISO 15022 (which covers securities) as well as ISO 20022 (which defines how financial messages are structured).

The benefits are widespread, as Karin explains: “All these standards are important to SWIFT’s customers as they increase operational efficiency and straight-through processing (whereby electronic data for settling payments can be transferred directly from one party to another, reducing errors and work replication).”

It’s not just money that’s migrating

SWIFT, together with hundreds of other financial organizations, recognizes that the predictability and consistency offered by standards is essential to secure and trusted transactions. And with the volume and complexity of these transactions increasing, they work closely with ISO to keep standards in line with market practices and new business requirements, including regulatory ones. ISOfocus looks at one of the most talked about finance standards, the ISO 20022 series, which defines a universal financial industry message scheme.

To industry insiders, “migration” is the term most commonly associated with ISO 20022. But it’s not the whimsical notion of money moving from place to place, so much as the process of changing systems from SWIFT’s proprietary MT (Message Type) standard to ISO 20022 for cross-border payments and reporting, and implementing procedures that will take advantage of the full range of capabilities offered by ISO 20022.

It’s a change, but Karin reassures me that it’s one that is being carefully managed. “SWIFT is actively engaging with its customers and industry players in order to use the ISO 20022 common language and model that will ensure end-to-end consistency in traditional as well as new ecosystems.”

If it ain’t broke, don’t fix it

This wisdom was drummed into me as a child as I happily dismantled appliances, bicycles or furniture that seemed to be in need of a check-up. It’s worked to curb my tinkering, and limit the number of “projects” that I have on the go at any one time, so I put the question to Karin: If it’s working now, what are the advantages of changing, especially given the substantial investment and planning required (migration is a multiyear project for many organizations)?

Here’s what she said: “ISO 20022 facilitates the creation of new services and simplified end-to-end processing. It will enable richer, better structured and more granular data to be carried in electronic messages in business domains such as payments, securities, foreign exchange, and even your credit cards.”

Karin points out that it’s not just that the process is made simpler, but that the “quality” of data in these electronic messages will be improved. “For example, for payments this means more transparency and more remittance information for your customers, which in turn means better customer service.” I can begin to understand the attraction; as a customer, I get a better experience because quality data means quality payments.

Highlighting additional migration benefits for those who are already using SWIFT systems, Karin says that ISO 20022 promises “even better tracking, transparency and speed”. Further operational benefits include improved analytics, less manual intervention, more accurate compliance processes, higher resilience and improved fraud prevention measures.

Get with the programme

With payment systems of major reserve currencies adopting ISO 20022, the financial community came to a consensus decision to move to the International Standard in “financial-institution-to-financial-institution” payments and reporting.

SWIFT has orchestrated a specific programme to facilitate this community-wide adoption. “The ISO 20022 programme will establish a new messaging service, coexistence measures to support migration, training and adoption services towards this goal,” Karin tells me. A realistic time frame has been established, with new ISO 20022 messages, compliant with agreed market practice, set to go live on the SWIFT platform from November 2021. After a period of four years of coexistence, the corresponding legacy messages (known as SWIFT MT) will be decommissioned on the SWIFT platform.

For the time being, the adoption of ISO 20022 on the SWIFT platform applies only to payment instructions and reporting messages exchanged bilaterally between financial institutions. However, ISO 20022 clearly has the potential for much wider application, and I put it to Karin that other sectors will surely be asking if they also need to migrate. “Other transactions such as corporate payments and cash management, securities post-trade, clearing and settlement, corporate actions, foreign exchange, treasury and trade finance are currently not in scope,” she confirms.

Customer benefits beyond migration

ISO 20022 is an increasingly established global language for payments messaging. Already used by payment systems in over 70 countries, in the coming years it will be the de facto standard for high-value payment systems of all reserve currencies, supporting 80 % of global volumes and 87 % of value of transactions worldwide.

By creating a common language and model for payments data, ISO 20022 significantly improves the quality of data across the entire payments ecosystem. Richer, structured, meaningful data will enable new client experiences, while improving compliance and efficiency. It’s about getting the fundamentals right, and future-proofing business. As Karin concludes: “ISO 20022 is flexible enough to meet the needs of today and those of tomorrow.”

Source: iso.org

 

13/ Financial services for all

9 January 2020

In the world of haves and have-nots, nearly two billion people globally lack access to the mainstream financial system. Why does this matter and what can be done to tackle the issue? Experts explain how International Standards can help to establish transparency, rebuild trust and solve the identity crisis in the digital age.

Money makes the world go round, or so the saying goes. Great when you have it; not so good when you don’t. And in this day and age, it can be catastrophic for those who not only have little or no money but who also do not have access to the formal financial sector, which includes financial services such as banking, bank accounts, access to credit and financial products. Financial services are the foundation on which so many of us – as individuals and businesses – depend to make a decent living.

Financial inclusion is regarded as an enabler for seven of the United Nations’ 17 Sustainable Development Goals (SDGs). For example, SDG 1 is to end poverty in all its forms, and access to a properly regulated financial system would go a long way to helping the most vulnerable who put their lives at risk daily in desperate measures to make a living. The World Bank Group considers financial inclusion so fundamental to universal well-being that it has launched a global goal to reach universal financial access by 2020.

Paradoxically, those who have most difficulty acquiring banking services are the very people who could most benefit from them. For example, the working poor tend to access credit informally through pawnbrokers and money lenders who can charge exorbitant interest rates, much higher than any quoted at formal commercial banks. What’s more, they also often lack the financial literacy allowing them to plan ahead and expand their enterprise. Financial inclusion could give them a real chance of climbing out of poverty.

Patchy uptake

Although the digital age, with the spread of the Internet and the global usage of smartphones, has played a big part in lifting people out of poverty, the move towards financial inclusion is uneven and in some countries progress has been slow. According to the World Bank 2017 Global Findex report, about 1.7 billion adults around the world still remain unbanked. And this is not just a problem for developing countries, nearly 40 million citizens in the European Union alone, for instance, still do not have a bank account.

However, according to the Global Findex, nearly half of the world’s unbanked populations live in Bangladesh, China, India, Indonesia, Mexico, Nigeria, and Pakistan. Many of these are women, living in poor rural areas – so-called micro-entrepreneurs, small stallholders selling food and drink, who keep their money at home, stashed in jars and bags, with the attendant risks. And while mobile technologies are conquering poorer regions, spurring the development in 2017 of the ISO 12812 series designed to bring secure financial services to a wider audience, still, for many people, it is safer to keep money at home than in a bank.

The financial crisis of 2008 undermined public trust in the financial system and banking, and, ten years on, this trust remains low. How can confidence in financial institutions and the financial system be restored? And how can ISO standards help? One person with a key understanding of these issues is Stephan Wolf, Chief Executive Officer of the Global Legal Entity Identifier Foundation (GLEIF), and Co-Convenor of the ISO/TC 68 FinTech Technical Advisory Group (ISO/TC 68 FinTech TAG), set up by ISO’s technical committee ISO/TC 68, Financial services, to establish proactive dialogue with financial institutions and regulators. “Trust starts with transparency about identity,” he says. “And a global identity is the starting point to foster growth and prosperity for economies worldwide.”

The issue of identity hit the headlines in 2016 with the release of the Panama Papers. The investigation by the International Consortium of Investigative Journalists (ICIJ) into the offshore finance industry exposed a murky world of tax evasion and money laundering and showed how the rich exploit secretive offshore tax regimes. So far, according to the ICIJ, more than USD 1.2 billion in back taxes and penalties has been recovered around the world.

A trusted identity

For developing countries, Wolf says that one of the many challenges is the lack of a trusted identity for small and medium-sized companies and those individuals acting in a business capacity for these companies in order to know whom you are doing business with. “In many developing countries,” he says, “more than 50 % of economic activity is conducted by unregistered companies – businesses that lack transparency and identity. Those remain cut off from essential services, such as supply chains and payments. When that happens, there is higher vulnerability to corruption and bribery, economic decline and dependency on development aid.”

He goes on to explain that the Global Legal Entity Identifier (LEI) System is designed to uniquely and unambiguously identify participants in financial transactions. “Initiated by the G20, the Global Legal Entity Identifier System delivers a unique identification scheme as open, public good. It is accessible and free of charge for everyone.”

Research by GLEIF indicates that a globally accepted approach, based on the broad adoption of the LEI, “would remove complexity from business transactions, deliver quantifiable value to financial services firms and lead to financial inclusion”, Wolf says. And, he adds, ISO is an integral part of this approach as the LEI is an ISO standard (ISO 17442).

Another expert, Robin Doyle, Managing Director, Office of Regulatory Affairs at JP Morgan, and an active member of the ISO/TC 68 community, underscores the significance of establishing trust and the challenge of providing identity assurance for the one billion people who are without any legal/government issued credentials. “As documented in the Global Findex Database 2017, barriers to financial inclusion include lack of necessary documentation, financial institutions located too far away, high cost of opening accounts – and a lack of trust,” she says. Such challenges require innovative thinking and new approaches to allow underserved populations to enter the financial markets.

Regulated entities

Doyle points out that financial institutions are highly regulated entities and onboarding of customers requires strict compliance with know-your-customer (KYC) laws and regulations. “Compliance risk is high if current rules are not met,” she says. Rules aside, she goes on to say that the ability to unambiguously verify the authenticity of a person “is key to preventing criminals from accessing the financial system for nefarious purposes such as money laundering, terrorism and human trafficking”.

Finding new and innovative ways for verifying identity could help financial institutions tackle this challenge. Doyle says new approaches could include moving away from the gathering of traditional government-issued documents. She cites the growing use of smartphones in underserved populations as “an opportunity to leverage a person’s digital footprint as a means to identification and verification”.

Indeed, as the world moves deeper into the era of the Fourth Industrial Revolution and the economy becomes ever more digitized, the question of identity gains even more significance. Wolf explains that no one knows, globally, what companies exist in the world, nor how they are related. That is a big problem, he says, for regulation, research, resolution, transparency, and basic business efficiency. He points out that transactions among business partners will be in real time and warns that “ without a secure identification system as a foundation, it would be nearly impossible to manage a trustworthy business”. He says: “Looking beyond financial services, GLEIF is convinced that the LEI could serve as a key ‘data connector’ to advance digital entity identification and to simplify identification for the digital age.”

For Doyle, it is clear that new approaches to onboarding and KYC need to be accepted by the regulatory community. If that were the case, she says, banks could “better support financial inclusion by helping the unbanked to gain access to the financial system and be a trusted source of identity verification for them”.

A harmonized approach

She believes, like Wolf, that ISO has a clear role to play. She points to its work in newly convened ISO/TC 68ʼs working group WG 7 on addressing the challenges of assuring identity for natural persons, adding that ISO can promote a harmonized approach “using open standards in support of the broad diversity of jurisdictional identity regimes providing for consistency and interoperability of approaches taken by nations around the world”. ISO’s work, she says, will need to take into consideration not only traditional means of identification but must establish principles and standards that will support financial inclusion and the emerging digital economy.

ISO is also working with the International Telecommunication Union (ITU) in developing standards for secure digital financial services (DFS). Both organizations are working on different standards for security for digital financial services, with ISO focusing more on the financial services side and ITU on the technical standards related to the underlying telecommunications infrastructure and applications. Vijay Mauree is the main focal point for DFS at the Standardization Bureau at ITU and coordinates ITU’s contribution to the Financial Inclusion Global Initiative (FIGI), a joint programme led by ITU, the World Bank Group, and the Committee on Payments and Market Infrastructures of the Bank for International Settlements. FIGI is supported by the Bill & Melinda Gates Foundation.

Mauree explains that under FIGI, ITU is leading the Security, Infrastructure and Trust Working Group, which is composed of four workstreams: security; distributed ledger technology for financial inclusion; quality of service; and trust. The working group’s activities in the field of cybersecurity support financial sector authorities to better understand the threats, targets, risks and impacts of cyber-attacks, and to deploy adequate tools to increase cybersecurity. Mauree says: “The technical reports produced by the working group are stimulating new work in our standardization expert groups, ITU Study Groups.”

Mauree was also the coordinator of an ITU initiative investigating Digital Fiat Currency (DFC), digital currency authorized and issued by a country’s central bank. The initiative concluded its activities in June 2019 with the delivery of seven technical reports detailing the requirements of DFC as they relate to regulation, technical and business dynamics, and security. These reports will also feed into the standardization work of the ITU Study Groups, explains Mauree. He points out that highly developed countries are piloting DFC to ensure that their central banks retain authority over money management as the use of cash declines. “Developing countries that are home to populations without access to bank accounts see considerable potential for DFC to contribute to greater financial inclusion. ISO also participated in our DFC activities to share the work that is being done at its level in this field,” he says.

Tackling uncertainty

In digital financial services, Mauree says one of the greatest risks and challenges to achieving universal financial inclusion is the uncertainty that can be created in the cross-cutting nature of DFS regulation and supervision. “DFS regulators need to create an enabling DFS environment for financial inclusion. To do so, they need to develop policies and regulations that foster innovation, promote competitive markets, and enable the efficient and sustainable provision of high-quality financial services.”

As well as ensuring that consumers – particularly those who are poor – are protected from unfair practices, he says that “regulators need to ensure that the risks introduced by new providers and business models are effectively managed to maintain financial sector stability”.

Governments have a key role to play in closing the financial inclusion gap. According to Mauree, only 25 % of developing countries process their cash transactions and social benefits electronically. “It is, therefore, important for governments to create policy environments that encourage digital financial inclusion,” he says. In the Philippines, for example, “the regulator has quickly allowed digital platforms that can be leveraged by government and the private sector in delivering services, transacting with their partners and the general public to bring more people into the financial system”.

Progress has been made. The World Bank says that the spread of the Internet and the rapid growth of digital technologies have accelerated the rise of financial inclusion worldwide. Giving people access to the mainstream financial system enables them to channel their savings into investments; to buy insurance products that protect them in times of risk and ill-health; and pay for their children’s education.

ISO standards go a long way to ensuring that individuals and companies can enjoy the benefits of responsible and sustainable financial inclusion, helping the world go round more smoothly for everyone.

Source: iso.org

 

14/ The down-low on digital currency

9 January 2020

Everybody has heard about Bitcoin by now. It was the first cryptocurrency to go mainstream, but others are fast growing in popularity. There could be more than 1800 different types of cryptocurrencies in existence, and more are being developed every day. So how do we ensure digital currencies are safe? ISOfocus picks its way amid the confusion to find out more.

Imagine you’re sitting in the foyer of ISO, waiting for your meeting. Seated next to you are two gentlemen also waiting for their meeting. You greet each other and ask, “So what are you here for?” Edward and Ryan answer. “We’re here as part of the technical committee ISO/TC 68 to work on developing International Standards for security aspects of digital currencies.” Like most people, you’d probably nod politely and feel too uninformed to ask any further questions. That’s where we step in: What is digital currency, exactly? It is easy to get bogged down with the myriad of terms used: cryptocurrency, e-money, b-money, i-money, e-currency, virtual currency, but a useful definition sees digital currency as a type of currency – or money – that’s available in digital form, unlike the physical objects we know as banknotes and coins.

Like “physical” currency, digital currency can be used to buy objects and services, but some can be restricted to more specific items in online gaming communities. Unlike “real” currency, digital currency does not have to be issued by a government or bank, but instead uses cryptography to link transfers through online networking and date-stamping. The most well-known example is “Bitcoin”, which allows digital currency to be decentralized or unregulated and controlled by its developers and users in the online community.

Crypto rising

ISO already has a standard for “real” currency, ISO 4217. This has been in use since 1978 and lists currency codes based on World Bank verifications. These codes are three digits, such as EUR for euro, USD for United States dollar, and are used by banks around the world in their financial transactions.

However, digital currency is expanding faster than these codes can cope with. The ISO 4217 standard can allocate around 500 three-digit codes, yet digital currencies are being created and used online with thousands of separate versions. In 2018, it was estimated that over 1800 digital currency options existed.

In July 2019, the International Monetary Fund (IMF) published its paper “The Rise of Digital Money”, which found that the growth in popularity of digital currency boils down to convenience, workability with online apps and very low cost to users. Trust is also important in countries like Kenya where digital currency is considered more reliable than banks and telecommunications companies. In 2016, roughly a millennium ago where digital currency is concerned, the Study Group on core banking services of ISO /TC 68’s subcommittee SC 7 (now disbanded) noted that digital currencies can be used to replace some real currencies in many areas, which raised concerns about how to apply computer science, cryptography and banking guidelines to ensure that digital currency is properly defined and secure to use. It was then estimated that there were more than a hundred thousand digital currency transactions every day.

PROTECTING OUR DIGITAL ASSETS

Back to Edward and Ryan, or Edward Scheidt, Convenor of ISO/TC 68/SC 2/WG 17, Security aspects of digital currencies; and Ryan Pierce, expert member of ISO/TC 68/SC 8/WG 3, Digital Token Identifier – DTI. With such obscure titles, what exactly are these working groups focusing on?

Edward Scheidt liaises with ANSI (American National Standards Institute) and is the Vice-Chair for ANSI x9 Global Security Standards (banking standards under the American National Standards Institute); he also collaborates with the ITU (International Telecommunication Union) Fiat Digital Currency Committee. “Our first focus is to examine the potential security of digital currencies with a goal to develop a future ISO standard. We meet monthly and have 21 members representing various national bodies taking part.”

Technology is moving at an incredibly rapid pace, which raises issues on how the economic stability of currency (non-digital) could be affected; what commercial and private industry influences can affect digital currency; what various political and regional issues need to be addressed; and how to connect these elements into a robust framework that can be used by all.

Scheidt explains that physical money is already well supported by policies, laws and rules leading to banking regulations. Yet while convenience appears to be a big advantage for money in a digital format, three security-related issues need to be resolved:

  1. Trust, so that the supporting international financial ecosystem can warranty its financial payments and financial transactions
  2. Binding liability, so that investments supporting a financial ecosystem do not have negative legal ramifications
  3. Privacy, so that the individual, as a consumer, with the supporting financial infrastructure can ensure that information remains private when needed

Casting a wide net

Collecting input from ISO members and financial experts is vital, he says. The committee must consider issues from policy, legal, central authority and technical security standpoints.

“The technical committee is working on drawing a line between the security technology needed for these standards and how they can apply to business cases. Potentially, we’re looking at collections of concepts and directions by national authorities to end up with a security framework that all digital formats can adhere to.

“We need to take the standards we have today and update them to ensure interoperability across countries’ recognized digital currency systems. This will be the first step towards universal acceptance. Trust is paramount: without that, all the technology in the world is not going to provide the answer.”

As both gentlemen point out, it’s also important to note that digital currency is not just the concern of countries and their government agencies: businesses and commercial enterprises are also operating in this area, which was traditionally left to governments. These standards could, at a conservative estimate, affect up to one trillion dollars in digital transactions per day, so security is vital.

Distribution of trust

Ryan Pierce, who is also Co-Chair of the Digital Asset Working Group at FIX Trading Community, expands further. “We are examining the creation of identifiers for digital tokens. This is an obstacle facing us all right now because there are so many new types of digital assets being created, and we need to be able to identify them to help eliminate any ambiguity between firms sending and receiving them.”

He explains that while Bitcoin was the original digital currency, thousands more digital currencies have since been created and used. These digital currencies represent bartering, equity, securities and services, all of which have expanded beyond the original function of Bitcoin. They have a similar function to currencies in that they can be used as a medium of exchange, but they can move beyond that definition if they are also tokens tied to specific utilities or services such as allowing data storage in a shared cloud, earning extra tokens by viewing advertising, or providing other services.

“When Bitcoin was first introduced, it helped solve the problem of ʻdistributed trustʼ. If someone wanted to trade digital assets in the past, they would have had to pick a trusted party to hold the ledger and keep records of who owned what. For example, most of us place our trust in banks. We know that we can use our credit card and we can pay for our lunch; we trust that we will only be charged once for the correct amount.”

With Bitcoin, he says, no one person can censor or modify transactions, and it no longer requires placing absolute trust in one entity. The technology allows the creation of a ledger that does not depend on a bank. It operates by having enough people running the same computer software to achieve consensus on the state of the ledger; it would be cost-prohibitive to modify or delete past transactions.

Digital ID

Pierce provides a good example of how digital currency needs to be properly identified: “If you wanted to wire transfer one hundred US dollars to me, then you’d automatically be using the ISO 4217 currency codes, which identify US dollars as ʻUSDʼ. All banks know exactly what this means, and there is no confusion. There are also ISINs, defined by ISO, that identify other forms of securities such as stocks, bonds and derivatives. This results in making all transactions unambiguous by all banks around the world.”

However, digital currency has no official identifiers, names, or currency codes. Your bank can differentiate US dollars and euros, but how would they tell the difference between Bitcoin and Bitcoin Cash?” That is the issue facing ISO. There is no authority anywhere in the world in charge of digital currencies today, so there is no official way to define Bitcoin or any other digital currency, and no universally recognized identifier for it.

“Back in 2016, it was determined that digital currencies, such as Bitcoin, that were not issued by monetary authorities could not be assigned ISO 4217 currency codes (such as USD or EUR). However, we believe that they need a separate list of codes to identify them – digital token identifiers. These codes will eliminate confusion and allow banks and other financial entities to transfer digital tokens. By easily identifying them, we would avoid misunderstandings,” Ryan explains.

As with all ISO standards, these are best-practice guidelines and not regulations. “We will not provide any opinion on the reliability of the digital tokens that would be issued identifiers as we must not make judgments. If a digital currency or token exists, then it is eligible for an identifier. That does not mean that all digital currencies that have identifiers will be reliable or valuable. Think of your birth certificate: it establishes that you’re born, and you officially exist, but no other judgments (like creditworthiness or whether you are trustworthy) can be made solely based on that identifying document.”

FIGHTING FRAUD

A worrying business model is emerging where companies plan to create a digital platform to provide a service, then sell tokens that can be used to pay for that particular service. Investors buy these tokens in the hopes of seeing an increase in value when the service is launched. But there have been “exit scams” that see companies taking the money and disappearing. In these cases, a DTI (digital token identifier) could still be issued for that token.

Pierce explains the valuable role in introducing DTIs to reduce fraud. “Regulators frequently ask for transaction records in regulated industries. Banks can detect suspicious financial activity and file reports if you suddenly have a hundred thousand US dollars appear in your account. But can regulators ask for transaction records on suspicious financial activity involving digital currency? Without an official digital token identifier, it would be hard for regulators to make sense of such data.

“It’s not just the regulators. The average person benefits from being able to access and use the DTIs to know exactly what they are sending or receiving. I could sell my car to you for five Bitcoin tokens, but when we carry out the actual transaction, you could send me something completely different. Without an official definition of Bitcoin or a recognized identifying code, there are too many opportunities for confusion. Digital token identifiers will eliminate that confusion (or deliberate fraud) and will be an objective way to identify a particular digital currency or token.”

With all that explained, it seems that the world of cryptocurrencies will soon be as safe as a game of digital Monopoly.

Source: iso.org

15/ Our future from now on

10 January 2020

Message from the new ISO President Eddy Njoroge.

It is quite a privilege to be addressing you here as I take up my new role of ISO President. In a world of increasing uncertainty and challenges, there has never been a greater need for standards across all sectors, but particularly for finance. Economic prospects for many countries are increasingly uncertain and ISO standards, as a solid foundation of international expertise, are some of the best tools we have.

Financial services are just one of many sectors where ISO is, and always has been, at the forefront, working on standards in the fields of financial inclusion, digitalization of financial transactions, and, more recently, sustainable finance. These standards not only enable the world to speak a common language, they provide a much needed level of trust.

The financial sector is one I know quite well. After many years in the corporate and financial world, I am an entrepreneur at heart, looking to challenge the status quo and bring more stability to the industry. With strong experience in both the private and public arenas, I am fully aware of the impact that standards can have and how essential they are to our financial system.

Standards have made the financial industry more efficient and improved the exchange of data, an important factor when conducting financial transactions and reporting on financial activity. At the Board of Stanbic Bank in Kenya, we embraced not only management system standards such as ISO 9001, but also the sector-specific standard ISO 20022-6 on message transport characteristics, as a way of simplifying integration between service providers and clients. In addition, standards have made it possible for institutions to integrate and move data to solve the historical inefficiency associated with connecting new partners.

With technology evolving at a fast pace, challenges are bound to rise in areas of information management, data management and cybersecurity. In this regard, the implementation of ISO/IEC 27001 for information security management systems, published in conjunction with the International Electrotechnical Commission (IEC), is key to managing sensitive information and assets. This is particularly important in the financial sector so that it remains secure. To this end, it is essential not only to promote the use of standards that can give the sector a competitive edge, but also to ensure the development of financial standards that leverage on emerging technologies like blockchain, which promote efficiency and financial inclusion.

I intend to use this experience, coupled with my unwavering belief in the value of standards, in my role as ISO President, to further the outstanding work that the ISO international standards community is doing. My goal is to act as a global ambassador for the benefits of standards and the ISO system, and to facilitate the substantial work of coordination, promotion and advocacy.

It is also a remarkable time to be ISO President as we put the finishing touches to the ISO Strategy 2021-2030. We must ensure this strategy is effective and drives us towards making standards as widely used and as relevant as possible. Wider use of these standards is fundamental to a sustainable future, as each and every one of them contributes in its own unique way to achieving the United Nations’ 2030 Agenda for Sustainable Development, which promises a fairer, more peaceful and more prosperous world for all.

Standards are our ticket to a sustainable future. Among the objectives of the 2030 Agenda, you will see inclusive growth, clean water and greater equality. ISO has standards that contribute to all of these areas, as well as standards that enable financial inclusion.

A comprehensive set of International Standards for the financial sector has the capacity not only to help us achieve several of the United Nations’ 17 Sustainable Development Goals, but to strengthen our global financial system. In a nutshell, ISO standards attempt to tackle two main issues. First, because they are international, the standards facilitate global comparisons, and hence avoid the negative externalities created by confusing and incomplete information. Second, when ISO standards are used around the world, they can facilitate people’s access to mainstream financial services, including savings accounts, loans, insurance and other financial services that help towards a well-regulated financial system. You can read more about these in this ISOfocus issue.

It is paramount that developing countries are included in the financial world. One of the key challenges for them is the lack of trust and transparency, with much economic activity done by unregistered companies. This fosters vulnerability and the risk of corruption and economic decline. Developing country participation is not only desirable but is, indeed, indispensable for achieving sustainable financial markets, and thus greater stability and protection for all – so no one is left behind.

As we embark on a new year, I feel proud and honoured to be President of ISO, following in the footsteps of the many inspirational leaders that have gone before me. In this issue of ISOfocus, the first for 2020, I would like to take the opportunity to thank everyone in the ISO community for welcoming me into this new role. I have big shoes to fill, for sure, but I am confident these next two years will be fruitful and progressive. I very much look forward to working with you all.

Source: iso.org

 

16/ Vietnam always supports US investors: Party official

10 January 2020

At a reception in Hanoi on January 8 for Adam Boehler, first CEO of the US International Development Finance Corporation (DFC), head of the Economic Commission of the Party Central Committee Nguyen Van Binh affirmed that Vietnam always supports and facilitates the investment by US firms in general and the DFC in particular.

Binh also spoke highly of the DFC’s role in the US foreign policy and asked it to expand the list of the projects in Vietnam, especially in the fields of the country’s need like energy, infrastructure, heal care, aviation, and finance.

The official expressed his belief the organisation will serve as a bridge to provide information on investment chances and potential in Vietnam to US firms and investment funds, and that the support by the DFC will be an important catalyst for a stronger wave of investment from the US into Vietnam in the time to come.

For his part, the DFC head pledged support and said the US side will look for chances to invest in Vietnam’s private economic sector, especially in the fields of energy and infrastructure, thus helping ensure energy security and support to Vietnam’s key infrastructure projects.

Source: NDO/VNA

 

17/ More OCOP products to be certified

10 January 2020

Vietnam hopes to have 3 843 products qualified for standards of One Commune One Product OCOP programmes by this year said deputy minister of agriculture and rural development Tran Thanh Nam at a conference in Hanoi on January 9.

Among those products, more than 2,200 are food and 397 are drinks. The others are herbal products, textile fabrics, souvenirs, furniture and tourism or service products.

Localities across the country currently have about 2,400 products qualified for OCOP standards.

The programme targets standardising at least 1,200 more products by this year and having about 500 new small and medium-sized businesses and cooperatives making OCOP products.

The OCOP programme was launched in May, 2018 to develop one strong product for each commune. After one year and a half, it has contributed to rural area construction, according to the Ministry of Agriculture and Rural Development.

“The programme has become a widespread campaign in many countries in Asia, Africa and Europe with various names. Although Vietnam kicked off the programme quite late, it has come up with initiatives to connect global network. The values of OCOP, handicraft products and art souvenirs have been recognised,” Nam said.

According to the ministry, after the issuance of OCOP certificates, products have been given stamps to trace their origin.

Retailers and e-commerce suppliers have signed consumption contracts to buy OCOP products. Profits from these products have also been on the increase.

Ngo Tat Thang, deputy chief of staff of National Steering Committee on New-Style Rural Areas, said OCOP products have their quality improved and packaging persified as well as meet standards on stamps and labels.

Nguyen Minh Tien, chief of staff of the committee, said trade promotion at the national level needs to be prioritised. The Ministry of Agriculture and Rural Development plans to work with ministries and agencies to organise national OCOP trade fairs and festivals and three regional OCOP fairs.

The localities should step up provincial trade promotion and expand a network of OCOP product stores and centres as well as foster OCOP e-commerce, he said.

He urged localities to improve market forecast quality, especially long-term and annual forecasts to help enterprises with their business plans.

Authorities should encourage and offer support to people to preserve and develop traditional products. The Ministry of Agriculture and Rural Development recently launched a portal which shares market information to help farmers access markets easier, Tien said.

Source: VNA

 

18/ Vietnam most promising Asian investment destination in 2020: Japanese survey

13 January 2020

Vietnam has been noted by Japanese firms as the most promising place in Asia to invest in 2020, with India and Southeast Asian countries dominating other top spots, Kyodo News cited a survey as released on January 8.

In the survey, conducted online from November to December 2019 by NNA Japan Co., a Kyodo News group company, Vietnam received 42.1% of the 820 valid responses, based on factors such as its potential as a growing market and large supply of skilled, low-cost labor.

India was second at 12.2%, with expectations for its growing market and its potential as a doorway to the Middle East and Africa among the reasons cited.

Myanmar jumped three spots from the previous year to third place at 11.6%, while Indonesia was fourth at 6.6%.

China, which appears to have lost its appeal somewhat as an investment location due to concerns about its trade war with the United States and rising labor costs, ranking fifth at 5.1%.

Source: NDO/VNA

 

19/ Vietnam wants to cooperate with Japan in developing e-government: PM

13 January 2020

Vietnam is developing an e-government and cyber security, hence the country wants to cooperate with Japan – a reliable partner – in these fields, said Prime Minister Nguyen Xuan Phuc.

While receiving Japanese Minister for Internal Affairs and Communications Sanae Takaichi in Hanoi on January 9, PM Phuc said the Vietnam-Japan extensive strategic partnership is developing comprehensively while their political trust has been enhanced in many aspects.

Japan has remained an important economic partner, the biggest provider of official development assistance (ODA), the second biggest foreign investor and the fourth largest trading partner of Vietnam, he stressed.

The PM thanked Japan for its provision of ODA in almost 30 years, which, he said, has contributed remarkably to Vietnam’s socio-economic development, hunger elimination, poverty reduction and infrastructure development.

In order to boost the bilateral extensive strategic partnership in the coming time, PM Phuc proposed Japan continue to assist the Vietnamese Government in reforming and improving efficiency of the administrative apparatus, building an e-government towards a digital government, digital economy and digital society and effectively implementing state management projects on information and communications.

Takaichi said the Japanese Ministry of Internal Affairs and Communications and the Vietnamese Ministry of Information and Communications have signed a cooperation agreement, opening up a new page for partnership in the fields of post, information and communications.

Japan stands ready to cooperate and share experience with Vietnam in developing cyber security and apply information technology (IT) in statistical activities, she said.

Japanese enterprises can contribute to the development of IT and take part in IT expos in Vietnam, the minister said.

The two countries should cooperate in administrative consultation and settlement of administrative procedures to protect legitimate rights of Vietnamese citizens in Japan and Japanese nationals in Vietnam, Takaichi added.

On this occasion, PM Phuc and Minister Takaichi witnessed the signing of a diplomatic note of exchange between the two governments on the provision of hardware of the government report information system by Japanese Ambassador to Vietnam Kunio Umeda and Minister, Chairman of the Vietnamese Government Office Mai Tien Dung.

Source: NDO/VNA

 

20/ Improving biosecurity with first International Standard for biorisk management

13 January 2020

From diagnosing diseases to pharmaceutical and scientific research, the handling of biological materials in laboratories or elsewhere is essential for many industries but doesn’t come without its dangers. Effective risk management of biohazardous materials means a reduced chance of accidents, less impact on the environment and a more efficient use of time and other resources. A new international management system standard has just been published to help.

SARS, pandemic viruses and threats of the malicious use of pathogens have all woken the world up to the risks of biological materials and the need for stringent, risk-proof ways of handling them. A biorisk management system is a key step towards that as it enables an organization to effectively identify, control and manage the biosafety or biosecurity risks related to its activities.

ISO 35001, Biorisk management for laboratories and other related organisations, is the first International Standard for a biorisk management system. It defines the requirements and guidance for laboratories or any other organization that works with biological agents to control and reduce any risks associated with their use.

Patty Olinger, Convenor of the working group that developed the standard, said that while there are a number of regional or national standards that help organizations manage their risks and meet regulatory requirements, ISO 35001 is the first that harmonizes them to deliver international best practice that is recognizable everywhere.

“ISO 35001 provides organizations and individuals with a roadmap of how to organize and systematically manage and structure their biological risk programmes,” she adds.

“This is increasingly important to protect our global public health infrastructure as our world becomes more and more integrated.”

ISO 35001 was developed by ISO technical committee ISO/TC 212, Clinical laboratory testing and in vitro diagnostic test systems, the secretariat of which is held by ANSI, ISO’s member for the USA. It is available from your national ISO member or through the ISO Store.

Source:iso.org

21/ DDG Wolff: China of today is vastly different from the China that joined the WTO in 2001

13 January 2020

In a speech to Chinese university students visiting the WTO on 13 January, Deputy Director-General Alan Wolff underlined that China’s accession to the WTO accelerated the country’s process of internal economic reform. He said that the multilateral trading system provides the essential international legal structure to assure China’s economic future through trade and encouraged China to use its extensive expertise with respect to the WTO to help the organization update its rulebook and maintain the value of the global trading system. This is what he said:

It is a pleasure to welcome you to the WTO.  You will visit many international institutions, but none more important to China than this one.

China’s Technological Rise

China has experienced astounding economic growth over the course of the last forty years.  Hundreds of millions of its people have been lifted out of poverty (although, to be sure, there is more progress to be made especially in rural areas).

While the transformation began before you were born, dating back to 1978, you will also have witnessed substantial change each year during the time that you have been in school.  Visible technological progress is still very much occurring.

When I first visited China in 1988 – to give a lecture on international trade at Fudan University, there were no traffic jams.  There was a sea of bicycles flowing down Chang An Avenue in Beijing, but not many cars.

In the years since my first visit to China I have returned many times.  I have been back to lecture again at Fudan and I visited Tsinghua University as chair of the U.S. National Academies’ Committee on Comparative Innovation Policies, an activity of the Academies’ Science, Technology and Economic Policy Board.  I chaired meetings in Washington with delegations led by the Chinese Academy of Sciences.(1)  In my introductory remarks in those meetings which took place a decade ago, I would list some of the extraordinary Chinese inventions of centuries past.   The list went far beyond those which all schoolchildren in the West would know about, beyond the fact that China was the source of porcelain, paper, tea, gunpowder, fireworks, rockets, silk, and even noodles, inventions that stretched over the millennia dating back to and beyond the invention of silk cloth in 3600 B.C. The long list(2) (3) includes the invention of:

  • Lacquerware in 5000 BC;
  • The pinhole camera in 450 BC;
  • Natural gas for heat and light in 4th century BC;
  • Around 200 BC;
  • The magnetic compass
  • The diagnosis of diabetes, and
  • The rotary cooling fan
  • The seismometer in 132 AD;
  • Paper money in 700 AD;
  • Moveable type in 1050 AD, and
  • The isolation of hormones for medical treatment in 1110 AD.

I was surprised by the reaction from the Chinese side to my recitation of this astounding record of Chinese innovation.  Chinese delegations would invariably answer that “that was then but now Chinese innovation has stalled”.   That could not possibly be what delegations of Chinese scientists would say today.

China in the world economy today

China is now at the cutting edge or ahead in many advanced technologies. A recent article in Foreign Affairs Magazine notes that President Xi Jinping has described a formidable objective for Chinese tech: “catch up and surpass.”(4) Abbreviated as ganchao in Chinese.(5)

A number of observers consider that China is on the way to becoming a global technology leader:

China’s ability to leverage its competitive advantage in terms of market size, government industrial policy, and globalization spillovers and acquisitions has positioned it to achieve its goal of global technology leadership.(6)

China has quickly moved up the value chain, creating world-class industries in everything from 5G and artificial intelligence to biotechnology and quantum computing.(7)

China’s Chang’e-4 mission reached the lunar surface in December 2018, becoming the first mission to make a soft landing on the far side of the moon.(8)  A year later, China’s far side lunar rover Yutu 2, broke the longevity record for working on the surface of the moon.(9)

In an article published in the Wall Street Journal two months ago entitled China Emerges as Global Tech, Innovation Leader(10), the following data points are listed.

  • China has the highest mobile payment penetration in the world;
  • There are three times more internet users than in the United States—a total of over 800 million;
  • China will account for the largest number of 5G connections in 2025, with 416 million – greater than North America and Europe combined;
  • In 2017, China’s state council published a plan aiming to become the world leader in AI by 2030, and
  • China is investing heavily in semiconductor production

China is also a leader in facial recognition(11) and working at the leading edge of AI applications.(12)

Add to this the following:

  • China has the world’s second-largest economy;
  • China is the world’s largest exporter of goods by a wide margin, at some 37.5% over the next largest exporting country (the United States)(13), and   
  • China is the world’s largest manufacturing country.(14)

Thinking back to the discussions that we had at the U.S. National Academies with delegations from the Chinese Academy of Sciences a decade ago, in light of China’s impressive progress in technological capacity and accomplishments, feelings of pride should certainly have replaced any defensiveness on the Chinese side.  Even more to the point with respect to the world trading system, the China of today is vastly different from the China that joined the WTO in 2001.

Countries join the WTO for many reasons, but they can be summed up as consisting of a desire to promote their economic development.  That is where this institution, the World Trade Organization, played a vitally important role in the development of China’s economy.

The WTO and China’s Current Economic Position

Accession to the WTO is not a quick or easy process.  It involves in many cases economic reforms that are both broad and deep.

  • From China’s request to resume its status as a contracting party to the GATT to its final accession to the WTO, it took China 15 years to go through the negotiations process    (1986-2001).
  • Twenty Working Party meetings involving 63 WTO Members were convened in the GATT period and 18 Working Party meetings were convened in the WTO period.
  • China signed bilateral agreements on market access with 44 Members.
  • There are 754 pages in China’s Accession Protocol (consisting of the Report and Protocol 124 pages; Goods Schedule 575 pages; and Services Schedule 55 pages).
  • 168 accession commitment paragraphs were included in the Working Party report (144) and the Accession Protocol (24).
  •  After its accession, China reviewed and revised 2,300 laws, regulations and departmental rules at central government level, and 190,000 policies and regulations at sub-central government levels, covering trade, investment, IPR protection, etc.
  • Of the 160 services sub-sectors under the 12-sector WTO classification, China committed to opening up 100 sub-sectors under 9 sectors.
  • By 2010, China had fulfilled tariff reduction commitments, reducing the average tariff level from 15.3 % in 2001 to 9.8 %. It lowered the average tariff rate of manufactured goods from 14.8 to 8.9 % and cut the average tariff rate of agricultural products from 23.2 to 15.2 %.(15)

In addition, China made a number of commitments that go beyond what the other WTO Members at the time were bound by.  Notably among these are:

  • China committed not to influence state-owned and state-invested enterprises;
  • China was obligated to ‘eliminate all taxes and charges applied to exports’ except for 84 specific types of products. For these products, the Protocol sets maximum export duty rates, which may not be raised by China except under exceptional circumstances and after consultations with affected members, and
  • China accepted a de minimis threshold of 8.5% of the value of production of each basic agricultural product instead of the 10% level for developing countries, provided for under Article 6.4 of the Agreement on Agriculture.

On December 11, 2001, China officially became WTO’s 143rd Member.  Doing so required sweeping domestic reforms, substantial domestic and foreign investment and integration into the world economy.  Joining the WTO accelerated the process of internal economic reform in China. That is beyond dispute.

Trade is central to China’s economy, to its people’s well-being and to its future.  The One Belt One Road (BRI) Initiative provides the physical infrastructure for China’s trade.  That is only part of what is needed.  The multilateral trading system provides the essential international legal structure.  It is the necessary other half of what is needed to assure China’s economic future through trade.   The Belt and Road Initiative cannot succeed without the multilateral trading system’s rules.

The Current State of the WTO

Given that the WTO is essential to the future well-being of the Chinese economy, it is relevant to inquire into the health of this institution that embodies the multilateral trading system.

The WTO is under stress:

  • Measures and countermeasures in the form of substantial increased tariffs have been imposed.  Some have been given a WTO justification by the Member imposing the increased tariffs, a justification that is not accepted by the Member country whose trade is subjected to the increase.  Other measures have not been assigned any justification.
  • One tier of the dispute settlement system – the Appellate Body – ceased to function(16) just over one month ago, as no new appointments could be made to fill vacancies.
  • The negotiation on fisheries subsidies did not meet its agreed deadline, which has been extended to the next Ministerial Meeting in Nur Sultan, Kazakhstan in June.  Since the WTO was founded, only three agreements have been reached.  There has not been a successful conclusion of a broad package of agreements as in the preceding 8 rounds of multilateral trade negotiations.

However, it is not as bad as it looks.  Far from it.

  • Most of world trade by far still flows consistently with agreed WTO rules;
  • Cases are still being litigated, interim solutions are being sought and put into effect for instances where an appeal is deemed necessary, and efforts are underway to restore an appellate function to the WTO’s dispute settlement;
  • The regular work of the WTO committees continues unabated;
  • An e-commerce joint initiative of a coalition of interested Members is making progress to extend the WTO rules to the 21st century’s digitally enabled trade;
  • Negotiations are progressing in parallel joint initiatives to improve the trading system with respect to facilitating cross-border investment, as well as the participation of small and medium enterprises;
  • The empowerment of women is also receiving serious attention, and
  • A number of Members are considering the relationship of trade and the environment to see what improvements can be made in the rules of the trading system.

There is ample reason to conclude that the situation of the WTO is not dire.  It is not as bad as current public commentary makes it out to be, but attention must be paid, as the current situation could easily get worse.

The Future of the WTO

The WTO is a one-of-a-kind international accord.  Its rules are intended to be binding.  Making new rules requires consensus, meaning that for a new rule to be adopted no Member objects to doing so.  The WTO is the foundation for all bilateral and regional trade agreements.  It is impossible to achieve on a bilateral or regional basis what must be subject of multilateral agreements.  It is true of our species, and of countries, that co-operation is needed to achieve outcomes that cannot be accomplished individually or in small groups.(17) It has been said even by its most severe critics that if the WTO did not exist, it would have to be created.

As with national governments, in the long run an international organization of sovereign countries, must depend upon the consent of those who are subject to its rules. Compliance is in the main, voluntary.  It must be seen to be in the interests of each Member, or adherence to the rules will decline.  Legitimacy and effectiveness are essential to avoid this global system deteriorating.  The maintenance of the multilateral trading system depends upon there being a continuing net positive investment in it by all, consistent with each Member’s capacity, of giving something beyond mathematical reciprocity.(18)  Maintenance of the system requires that it be continuously updated.

The goal of military rivals is deconfliction.  The WTO aims for far more than that.  It depends upon convergence not coexistence.  It aims to have market forces determine competitive outcomes.  If it fails to deliver that outcome, Members will increasingly operate outside of its rules and world trade and therefore world economic growth will suffer.

China, perhaps because it is in some respects a relatively new Member, has a corps of WTO experts with very extensive expertise with respect to the WTO.(19)  This resource will, I hope, be deployed to help the WTO deliver on its promise.  This was the subject that I discussed recently in Beijing at Premier Li Keqiang’s “One + 6” meeting(20) and in a talk at the Center for China and Globalization (CCG).(21)

I hope that each of you, as a result of your visit to the WTO this week, will have a better understanding of the importance of the world trading system, and that further, that some of you will choose to dedicate yourselves to contributing to its future.

  1. See National Academies of Sciences STEP Volume: Building the 21st Century:  U.S.-China Cooperation on Science, technology and Innovation (2011). https://www.nap.edu/catalog/13196/building-the-21st-century-us-china-cooperation-on-science-technology. back to text
  2. A longer list is included in the National Academies Report cited in this talk. back to text
  3. See The Man Who Loved China, Simon Winchester, Harper Collins (2008). back to text
  4. https://www.foreignaffairs.com/articles/china/2019-08-27/chinas-long-march-technological-supremacy. back to text
  5. Ibid. back to text
  6. China as the World’s Technology Leader in the 21st Century: Dream or Reality? https://iems.ust.hk/publications/thought-leadership-briefs/china-as-the-worlds-technology-leader-in-the-21st-century-dream-or-reality. back to text
  7. Ibid notes 4 and 5. back to text
  8. https://www.history.com/news/china-plans-historic-landing-on-dark-side-of-the-moon back to text
  9. https://www.space.com/china-change-4-rover-moon-record.html. back to text
  10. China Emerges as Global Tech, Innovation Leader, Deloite sourced article, in WSJ, Oct 30, 2019. back to text
  11. https://www.manilatimes.net/2018/11/21/news/world/china-a-world-leader-in-facial-recognition-algorithms/471280/471280/ back to text
  12. https://www.nature.com/articles/d41586-019-02360-7 . back to text
  13. 2017 data.  https://en.wikipedia.org/wiki/List_of_countries_by_exports. CIA Factbook. back to text
  14. https://www.brookings.edu/research/global-manufacturing-scorecard-how-the-us-compares-to-18-other-nations/back to text
  15. Sources: 
    WTO Accessions Intelligence Portal
    WTO Commitments Database
    China and the WTO(MOFCOM,2018)
    back to text
  16. An exception was notably made for at least one case, plain packaging, a case brought by the Dominican Republic against Australia.  A decision will be rendered by former Appellate Body members who heard the case argued while they were still serving on the Body. back to text
  17. For the species, the comment is from Steven Pinker, Harvard Professor, writing in the Financial Times, December 26. 2019. back to text
  18. In a broader context going beyond the concept of an order based on sovereignty dating back to the Treaty of Westphalia, Richard Haas, in an article entitled World Order 2.0, The Case for Sovereign Obligation, in Foreign Affairs, January-February 2017, states “Today’s circumstances call for an updated operating system – call it World Order 2.0 – that includes not only the rights of sovereign states but also those states’ obligations to others.”  What is needed, I believe, is that all countries contribute more than specific trade concessions, but contribute to the common good.  No country is so small or poor that it cannot contribute its ideas and, to the extent possible, its policies and measures to the global trading system for the common good. back to text
  19. I was informed during my visit to Beijing two months ago that there are at least 500 WTO experts in China.  Whether or not that number is completely accurate, there are many.  This is not surprising for a country so deeply involved in world trade that sees its future as involving even deeper involvement through the Belt and Road initiative.  In addition, the countries most conversant with the rules of the world trading system are often those who concluding their accession process once the WTO was established.  back to text
  20. https://www.wto.org/english/news_e/news19_e/ddgaw_21nov19_e.htm. back to text
  21. http://en.ccg.org.cn/html/top-issues/3807.html. back to text

Source:wto.org

 

22/ Joint working group on Vietnam-Cambodia border gates meets

14 January 2020

The first-round meeting of the joint working group on Vietnam-Cambodia border gates was held in Hanoi on January 9.

The Vietnamese delegation was headed by Deputy Foreign Minister and Chairman of the National Border Committee Le Hoai Trung, while the Cambodian side was led by Minister of State at the Ministry of Interior Sok Phal.

The meeting took place in the spirit of friendship, sincerity and mutual trust.

The two sides evaluated the current operation of the border gates on the Vietnam-Cambodia land border.

They agreed that development of the border gates has contributed to promoting economic, trade, service, and investment activities between border provinces, thus improving the lives of people in shared border areas.

Further improvement of the border gates is needed to meet the increasing cross-border exchanges of goods and people between Vietnam and Cambodia, they said.

The two sides agreed to seek ways to develop a system of land border gates in line with the real development situation in each locality as well as in accordance with law and development plans of each country.

The immediate task is coordinating to conduct bilateral surveys of opening and upgrading pairs of border gates as proposed by the two countries within the framework of the 9th and 10th conferences on cooperation and development of Vietnamese and Cambodian border provinces.

The two sides agreed to ask for their governments’ permission to jointly draft an agreement on border gates and regulations on the management of Vietnam-Cambodia border gates, which aims to reinforce and develop the bilateral traditional friendship, and promote cross-border trade exchanges.

The Vietnamese side will soon give Cambodia the draft version of this agreement for studying.

The second-round meeting of the joint working group will be held in the second quarter of 2020.

Source: NDO/VNA

 

23/ Parliamentary cooperation promotes Vietnam – Laos friendship: Top legislator

14 January 2020

The Vietnam – Laos parliamentary collaboration, which has been unceasingly developed, helps boost the traditional friendship, special solidarity and comprehensive cooperation between the two nations, Chairwoman of the National Assembly Nguyen Thi Kim Ngan has said.

Meeting with her Lao counterpart Pany Yathotou in Hanoi on January 9, the top legislator spoke highly of the efficiency of the conferences held by the two National Assemblies in the past time, and recommended similar events should be organised to enhance experience sharing between the two legislative bodies.

Sharing the same viewpoint, Pany Yathotou said that the two parliaments have played an important role in the implementation of high-level agreements between Vietnam and Laos in the past years.

She cited as an example parliamentary cooperation in supervising the handling of free migration along the shared borderline, expressing her belief that it has created favourable conditions and brought practical benefits to border residents.

Congratulating Vietnam on taking over the Chairmanship of the ASEAN in 2020 and of the 41st General Assembly of the ASEAN Inter-Parliamentary Assembly (AIPA), Pany Yathotou affirmed Laos always supports and works closely with Vietnam so that the country can fulfil its heavy responsibilities.

On the threshold of the Lunar New Year (Tet), the Lao top legislator wished that that the Vietnamese Party, State and people will reap further achievements, successfully carry out the resolution adopted at the 12th National Congress of the Communist Party of Vietnam, and make good preparation for the upcoming congress.

Both leaders acknowledged the close coordination between the National Assemblies of Vietnam and Laos to commend organisations and individuals who have made outstanding contributions to the traditional friendship between the two countries.

The Lao NA Chairwoman suggested that local People’s Councils should also be involved in the commendation work.

The two top legislators were unanimous in promoting experience sharing and developing the cooperative ties into a more practical and effective fashion.

As Laos is revising its customs laws, it hopes Vietnam will share experience in the work, Pany Yathotou said, adding the National Assemblies should also enhance supervision in mutual legal assistance in criminal matters, especially after the two Supreme People’s Procuracies signed an agreement in the field.

NA Chairwoman Ngan agreed with her Lao counterpart’s recommendation, saying she will discuss the matters with the Prime Minister, and direct competent agencies to send experts to help Laos with the revision of its customs law.

Source: NDO/VNA

 

24/ Strong FDI inflows poured into textile and fiber projects

14 January 2020

The first 11 months of 2019 saw a large amount of capital injected into various textile, dyeing, and fiber projects across the nation, according to information released by the Vietnam Textile and Apparel Association (Vitas).

Throughout the reviewed period, the total foreign direct investment (FDI) being pumped into the textile and garment industry reached US$1.546 billion across 184 projects.

Hong Kong led the way in terms of FDI investment in the country’s textile and apparel industry with US$447 million, followed by Singapore (US$370 million), China (US$270 million), the Republic of Korea (US$165 million), and the Seychelles (US$103 million).

In addition to these nations, Vietnam’s textile and apparel industry also enjoyed US$61 million of total registered capital from Japanese investors, the United States with US$19 million, Taiwan with US$15 million, with a further US$100 million coming from other sources.

In terms of the localities receiving the largest capital in the textile and garment sector, Tay Ninh province tops the list with 16 projects capitalized at US$464 million. This is followed by Quang Nam that has 10 projects valued at US$107 million, Nghe An with three projects worth a total of US$210 million, and Thua Thien Hue with two projects worth US$213 million.

FDI inflows being put into the textile and apparel industry throughout last year saw surges in capital turn into various material projects.

This includes 90 textile projects worth US$1.245 billion, 24 dyeing projects valued at US$673.3 million, 109 garment projects with US$587.2 million of capital, 45 fiber projects with US$640.4 million, and three fiber production projects with a total registered capital of US$1.3 million.

Source: VOV

 

25/ Vietnam, Japan look to stronger investment links

15 January 2020

The strategic partnership between Vietnam and Japan has been developing strongly in recent years with Japan currently Vietnam’s largest ODA provider and the second largest foreign investor, said Deputy Prime Minister Vuong Dinh Hue at the Vietnam-Japan trade and investment promotion conference in the central city of Da Nang on January 13.

The Deputy PM emphasised that Japan also represents the third largest tourism partner and fourth largest trade partner of Vietnam,noting that the nation is currently compiling a document to submit to the National Party Congresss in 2021 that focuses on the socio-economic development strategy between 2021 and 2030 with a vision for 2045.

Under the document, Vietnam is striving to become a developed nation with high income based on economic restructuring, in addition to the renovation of development models occurring simultaneously with active international integration.

With regard to foreign investment, the Vietnamese Government is also submitting draft revisions on the Law on Investment and Law on Enterprises to the National Assembly.

Deputy PM Hue laid stress on four major issues in attracting investment. They include revamping institutions and policies on foreign investment in line with development trends and international commitments in order to ensure openness, consistency, transparency, and a high level of competitiveness.

He also underlined the need to be more selective when it comes to foreign investment to give a greater focus on quality, efficiency, technology, and environmental protection.

Moreover, priorities should be put on hi-tech projects that have a connection with global value chains in order to boost economic restructuring , sustainable development goals, and serve to aid environmental protection, according to the Deputy PM Hue.

The Deputy PM added that the Vietnamese Government is willing to create optimal conditions for Japanese businesses and investors, including small and medium-sized enterprises that do business within the country, while also expressing a desire for Japan to become the leading investor in Vietnam.

At present, approximately 30,000 foreign enterprises are investing nationwide with a total capital of roughly US$370 billion, including 1,900 Japanese firms.

During the conference, the business community of both countries said there remains plenty of room for further co-operation in investment, tourism, and labour throughout the country in the near future.

Recent demographic shifts have seen the Vietnamese community in Japan become the third largest expatriate community with nearly 400,000 people. Last year saw more than 900,000 Japanese tourists visit Vietnam, with over 400,000 Vietnamese people taking a trip to the Land of the Rising Sun.

For his part, Nikai Toshihiro, Chairman of the Japan-Vietnam Friendship Parliamentary Alliance, said that bilateral relations are moving forward in a substantial and in-depth manner across multiple fields such as politics, economics, culture, security, and national defense.

Toshihiro, who is also Secretary-General of the ruling Liberal Democratic Party of Japan, said that with a delegation of more than 1,000 attending the conference, the Japanese side is determined to strengthen co-operation and exchanges with Vietnam in a bid to grow ties for the next generation to enjoy.

Source: VOV

 

26/ Vietnam holds key role in maintaining ASEAN peace, stability

15 January 2020

Vietnam has a special position and plays a key role in promoting peace and stability within ASEAN, has said UN Secretary General Antonio Guterres during a working luncheon of the UN Security Council.

Deputy Prime Minister and Foreign Minister Pham Binh Minh chaired a working luncheon of the UN Security Council with UN Secretary-General Antonio Guterres at UN headquarters in New York on January 9-10 that focused on adhering to the UN Charter to maintain international peace and security.

Minh also held bilateral meetings with the UN Secretary-General, Administrator of the UN Development Programme (UNDP) Achim Steiner, Executive Director of UN Women Phumzile Mlambo-Ngcuka, along with a number of other diplomats on the sidelines of an open debate of the UN Security Council chaired by Vietnam.

During his working lunch with UN Secretary General Antonio Guterres, Mr. Minh said regular exchanges of information and close cooperation between the UN Security Council and the UN Secretariat has contributed to providing related parties with updated information. This has helped seek solutions to any rising problems, prevent conflicts, peacefully settle disputes as a contribution to maintaining peace and security in the region and the world as a whole.

UN Secretary General Antonio Guterres said Vietnam has a special position and plays a key role in promoting peace and stability within ASEAN region. He affirmed his support for the settlement of disputes in the East Sea by peaceful means in line with international law. Deputy Prime Minister Pham Binh Minh called on the UN and Mr. Antonio Guterres to support settling disputes by peaceful means.

At the meeting with UNDP Administrator Achim Steiner, Minh thanked the UNDP for its support for Vietnam over the past four decades, suggesting it provide more counselling for the country, especially in economic restructuring, climate change response, realisation of the Sustainable Development Goals, and sustainable use and management of the Mekong River’s water resources.

Steiner congratulated Vietnam on its recent achievements, highlighting the country as a model in economic development. He also assured the UNDP’s readiness to give support and policy advice during the new development stage of Vietnam.

At another meeting with UN Women Executive Director Phumzile Mlambo-Ngcuka, Mr. Minh asked UN Women to continue its support for Vietnam in improving gender equality and women empowerment.

For her part, she applauded the remarkable outcomes Vietnam has gained in promoting gender equality, particularly women’s economic empowerment.

UN Women will keep working closely with and helping Vietnam to organize major events marking the 25th anniversary of the Beijing Platform for Action on gender equality, as well as others on women, peace and security.

Meeting with Foreign Minister of Nicaragua Denis Moncada, Minh and his guest consented to accelerate political dialogue in an appropriate point of time and consider the negotiation on a trade and investment framework agreement to create a legal framework for bilateral cooperation.

Denis Moncada expressed his confidence that the Southeast Asian nation will successfully serve as both a non-permanent member of the UN Security Council and ASEAN Chair.

Minh also used this occasion to convey Party General Secretary and State President Nguyen Phu Trong’s invitation to visit Vietnam to Nicaraguan President Daniel Ortega.

Meeting with Deputy PM Minh, Foreign Minister of Timor Leste Dionisio Babo Soares congratulated Vietnam and greatly valued its growing international role. He showed his country’s wish to become a member of ASEAN and augument bilateral collaboration with Vietnam, affirming the readiness to back activities of Vietnamese businesses, including Viettel, in Timor Leste.

Minh asked Timor Leste to soon ratify the trade agreement between the two countries toward creating a legal basis for enhancing trade connections.

The two sides also agreed to increase cooperation and share their stances at regional and international forums, including the UN. Meeting with Deputy Foreign Minister of Ukraine Sergiy Kyslytsya, Deputy PM Minh offered heartfelt condolences to the Ukrainian Government and people, and the families of the victims in the serious plane incident in Iran on January 8.

The two sides discussed measures to beef up their countries’ cooperation, including organising delegation exchanges at all level, holding annual political consultations, and strengthen economic and trade links.

The Ukrainian side expressed the hope to coordinate with Vietnam at multilateral forums, particularly the UN, and boost ties with ASEAN, saying the country wishes to join the Treaty of Amity and Cooperation in Southeast Asia.

Source: VNA

 

27/ International Standard for descriptive metadata just updated

15 January 2020

Descriptive metadata for the Web is essential for us to navigate our way around it, enabling resources to be found, identified and archived. Yet such metadata wouldn’t work if programmers worldwide weren’t using a common, universal metadata language. The ISO standard that defines that language has just been updated.

The Dublin Core is a small set of elements or properties for the description of digital resources such as Web pages. First developed in 1995 and maintained by the Dublin Core Metadata Initiative (DCMI), it is known as the worldwide common language for descriptive metadata on the Internet.

ISO 15836-2, Information and documentation – The Dublin Core metadata element set – Part 2: DCMI Properties and classes, extends the original set of 15 core properties with 40 properties and 20 classes in order to improve the precision and expressiveness of descriptions in the Dublin Core. The additions focus on generic properties widely needed for basic interoperability across languages and disciplines.

The International Standard has just been revised to ensure the definitions of terms are up to date, and expand its scope to include all properties and classes from DCMI Metadata Terms.

Juha Hakala, Chair of the ISO subcommittee that developed the standard, said the Dublin Core is the most widely used reference set of elements for descriptive metadata on the Web worldwide. The addition of a Part 2 provides a key means for users and programmers to create resource descriptions that interoperate on a general level across multiple domains and languages.

In developing the standard, the committee worked closely with the Dublin Core Metadata Initiative (DCMI), which in turn revised its DCMI Metadata Terms in response to committee feedback.

ISO 15836-2 complements ISO 15836-1, Information and documentation – The Dublin Core metadata element set – Part 1: Core elements, which contains the basic list of 15 core metadata elements for cross-domain resource description.

ISO 15836-2 was developed by ISO technical committee ISO/TC 46, Information and documentation, subcommittee SC 4, Technical interoperability, the secretariat of which is held by SFS, the ISO member for Finland. It can be purchased from your national ISO member or through the ISO Store.

Source:iso.org

 

28/  Austria gives EUR 200,000 to further developing countries’ negotiating capacity

15 January 2020

Austria is donating EUR 200,000 (approximately CHF 220,000) to the WTO’s DDA Global Trust Fund in 2020 to help developing countries and least-developed countries (LDCs) implement WTO agreements and to increase their trade negotiating skills.

Austria’s contribution to the DDA Global Trust Fund will finance training workshops for officials from developing countries and LDCs. Since the creation of the fund in 2001, over 2,800 workshops have been organized.

WTO Director-General Roberto Azevêdo said: “Austria’s donation will help developing countries and LDCs build the necessary skill-set to participate actively in multilateral trade negotiations. I welcome Austria’s continued generosity. ”

Austria’s Minister for Digital and Economic Affairs, Margarete Schramböck, said: “As a firm supporter of the multilateral trading system, Austria believes that inclusive trade and sustainable development are essential tools to stimulate economic growth and reduce poverty. By renewing our commitment to expand the trading capacity of developing countries and LDCs, we are helping them to access new markets and further integrate into global value chains and the global economy.”

Overall, Austria has donated just over CHF 4.5 million (approximately EUR 4.2 million) to the various WTO trust funds over nearly 20 years.

Source:wto.org

 

29/ United States notifies decision to appeal compliance panel ruling in steel dispute with India

16 January 2020

On 18 December the United States, under Article 16 of the Dispute Settlement Understanding, notified the Dispute Settlement Body of its decision to appeal issues of law and legal interpretations developed by the WTO compliance panel in its report in the case brought by India in “United States — Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India” (DS436). The compliance panel report was circulated to WTO members on 15 November (WT/DS436/RW and WT/DS436/RW/Add.1).

The United States notification was circulated to WTO members on 19 December 2019 in WT/DS436/21.

India and the United States subsequently issued a joint communication on the matter in WT/DS436/22, which was circulated on 16 January 2020.

Source:wto.org

 

30/ WTO and World Bank showcase updated version of Services Trade Policy Database

16 January 2020

An updated version of the Services Trade Policy Database, jointly developed by the WTO and the World Bank, was presented at the WTO on 16 January. The database now contains new information on the services trade policies and regulations applied by 68 economies and incorporates data on 23 sub-sectors, including financial services, telecommunications, distribution, transport and professional services.

The database can be accessed via I-TIP Services, which also provides information on WTO members’ commitments under the General Agreement on Trade in Services, services commitments in regional trade agreements, and services statistics.

The database was developed in response to the growing global demand for information on services trade policies and regulations in both developed and developing economies. The data increases the transparency of regulatory frameworks and provides critical information for national policy reforms, international trade negotiations and research on services. Entry requirements for services providers, licensing conditions and cross-border data flow restrictions feature among the data available.

An updated World Bank Services Trade Restrictions Index (STRI) was also presented. The STRI is used to quantify services policy restrictiveness, with the aim of allowing users to better analyse the impact of services trade policies, including on the costs of trading services, and to identify global patterns.

The Services Trade Policy Database was presented at a session of “Simply Services — A Trade in Services Speaker Series”, an informal platform for the exchange of knowledge and information on trade in services at the WTO.

More information can be found here.

Source:wto.org

 

31/ New WTO delegates invited to Secretariat briefing session on the TRIPS Council

17 January 2020

A WTO Secretariat briefing session for new WTO delegates on the work and mission of the Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS) will be held on 28 January. The aim of the briefing is helping delegates prepare for TRIPS Council meetings and become familiarized with the various online tools available to receive, submit and access TRIPS-related information.

When and where?

The briefing session will take place between 10h and 17h in Room S2. Interpretation will be provided.

What is the purpose of the Secretariat briefing session?

The session aims to help delegates prepare for and make full use of the TRIPS Council meetings. It provides a technical overview of the role and functioning of the TRIPS Council, and explains the factual background, purpose and subject matter of the items on the current agenda for the next formal meeting of the Council, scheduled for 6-7 February.

Who should attend?

While the briefing session is primarily intended to introduce new delegates to the TRIPS Council, all delegations are welcome to attend.

How to prepare?

The briefing session also provides an introduction and live demonstration of online tools available to receive, submit and access TRIPS-related information. These include the online meeting calendar and subscription to online alerts regarding the circulation of new TRIPS-related documents, use of the e-TRIPS Submission System to comply with TRIPS notification requirements and submit reports, and use of the e-TRIPS Gateway to browse and search most TRIPS-related documents and information online. Delegates are invited to bring their own device.

Source:wto.org

32/ As agreement deadline nears, first set of 2020 fisheries subsidies talks get under way

17 January 2020

At a 16-17 January meeting of the Negotiating Group on Rules, WTO members kicked off the first set of 2020 meetings aimed at securing a global agreement on reducing harmful fisheries subsidies by the 12th Ministerial Conference (MC12) in Nur-Sultan in June. Among other issues, members discussed a new proposal from Canada on prohibiting subsidies that contribute to overcapacity and overfishing, and special flexibilities for developing and least developed countries to help them implement a future deal.

The meetings were the first of six “clusters” of fish subsidy talks among capital-based negotiators scheduled during the run-up to MC12, with the aim of fulfilling the Ministerial Decision from the WTO’s 11th Ministerial Conference, and the mandate fixed under UN Sustainable Development Goal Target 14.6. Both set a deadline of 2020 for disciplines eliminating subsidies to illegal, unreported and unregulated (IUU) fishing and for prohibiting certain forms of fisheries subsidies that contribute to overcapacity and overfishing, with special and differential treatment for developing countries and least developed countries (LDCs).

Canada introduced its new proposal for a prohibition on subsidies that contribute to overcapacity and overfishing. The Canadian proposal has two parts: one with provisions for prohibiting subsidies that contribute to overfishing and overcapacity in the jurisdiction of the member where the fishing is taking place, as measured by certain indicators; and another prohibiting subsidies for fishing outside of the fisheries jurisdiction of a coastal member and outside the regulatory area of a relevant regional fisheries management organization or arrangement.

WTO members also addressed a series of outstanding questions related to special and differential treatment for developing and LDC members, including possible transitional arrangements as well as technical assistance and capacity building.

In the discussions, both the importance of quickly finding an approach to disciplining subsidies contributing to overcapacity and overfishing, and to special and differential treatment provisions in the context of particular disciplines, were emphasized. The chair, Ambassador Santiago Wills (Colombia), noted that these issues will need more engagement from members.

Members also heard reports from facilitators assisting the chair on specific negotiating issues. The facilitators reported on their consultations with members with regard to proposed disciplines on subsidies to illegal, unreported and unregulated (IUU) fishing, overfishing and overcapacity, and overfished stocks as well as matters related to institutional issues; definitions, scope, notifications and transparency; and dispute settlement, remedies and territoriality.

Noting that the facilitators have signalled their intention to conduct inter-sessional work between the next clusters, and recalling the call from heads of delegation last December to move to continuous negotiations mode, the chair said working in this continuous manner has started and will carry on up to Nur-Sultan in June.

Next meetings

The next cluster of fisheries subsidies meetings will take place in the week of 3-7 February.

Source:wto.org

 

33/ DDG Wolff: It is time to update the WTO rulebook for agriculture

18 January 2020

Addressing a group of agriculture ministers at the 12th Global Forum for Food and Agriculture in Berlin on 18 January, Deputy Director-General Alan Wolff highlighted the need to harness the power of multilateral trade agreements to meet the complex challenges facing the agricultural sector. In the run-up to the 12th Ministerial Conference in June, ministers need to work together, he said, to reform WTO rules. This would not only result in increased production in a sustainable manner but would also have a positive impact on the environment. This is what he said:

As we come to the close of the second decade of the second millennium, the challenges to agricultural policy, never inconsiderable, are of a different nature and magnitude than those faced by prior generations. Among these are major changes in weather patterns, emerging environmental constraints and the increasing use of trade measures to deal with geopolitical objectives.  The technological context in which agricultural policies will be set is evolving rapidly.  The global economy is well on its way to becoming to a large extent digital.   While less understood, artificial intelligence will play an increasingly stronger role.  Biotechnology will shape the production of food. Taken together these forces will shape global agriculture in the coming decades.  The changes wrought will be as profound as those that occurred due to the Green Revolution(1).  Added to these challenges will be demographic changes both in population size and location, outbreaks of animal and plant diseases and changes in consumer preferences affecting which foods are in increasing demand.

This past year was characterized by disruptive events — extremes of weather decimated the onion crop in India, swine flu had a severe impact on the domestic supply of pork in China, trade hostilities between the U.S. and China have shifted trade flows, and widespread bush fires in Australia are having a substantial impact on food production in that country.

The decision of Minister Julia Klöckner in hosting this 12th Agriculture Ministers’ Summit giving special attention to international trade is particularly timely as the 12th WTO Ministerial Conference will be held in June 2020.  It is now necessary for agriculture ministers to join together to consider how best to provide answers to common concerns and to reflect solutions in trade negotiations in a demanding global policy and physical environment.

Multilateral trade agreements will be needed to meet these challenges.  Solutions will be needed in at least six areas:

  1. Improving agility:  Extreme weather events as well as outbreaks of disease will require prompt and effective responses.   Food will need to move more freely from areas of surplus to areas of scarcity.  Demand will increase as the world’s population expands by an additional two billion individuals by mid-century and it must be met with sustainable agricultural production.
  2. Increasing transparency.  Knowledge about the policy measures that other countries take will be needed both to enable national decisions to be based on as full information as possible as well as to administer international agricultural accords.
  3. Achieving balance.  A new consensus will be needed to plot a path toward finding negotiated solutions with respect to market access, domestic support, export restrictions, food security, and to address the needs of cotton producers as well as addressing other issues of interest to the WTO’s Members.  Trade policies and related domestic policies that affect trade will need to be recalibrated and incorporated in an updated WTO Agreement on Agriculture.
  4. Benefitting from the global digital economy.  Agriculture ministers must assure that the E-commerce negotiations at the WTO fully serve the interests of their farmers and consumers.
  5. Increasing sustainabilty.  While feeding all, it is imperative to find ways of reducing waste, improving productivity, and limiting negative impacts on the environment.   Improvements in the rules of the trading system need to be viewed increasingly through the lens of creating a circular economy(2).  A first imperative is to come to an agreement by the Ministerial Meeting of the WTO in Nur Sultan in June to discipline fisheries subsidies.
  6. Rebuilding dispute settlement.  A major differentiating factor of the WTO is the enforceability of its rules.  A negotiated outcome that restores a binding, 2-stage, independent, dispute settlement system is an imperative for agriculture.

Agriculture ministers of major exporting and importing countries have a special responsibility(3) to address, through trade negotiations, challenges in which trade plays or can play a part:

  • Unpredictable, devastating weather conditions are having and will continue to have a severe negative impact on agriculture.
  • Demographics indicate that by the year 2050 there will be 2 billion more people to feed worldwide.
  • Environmental and health concerns will increasingly drive national policies as well as consumer preferences.
  • The work of updating the WTO rule book to address the needs of the digital economy is moving forward.  E-commerce negotiations at the WTO should take fully into account the needs of agriculture. Agricultural producers and consumers must have access to needed data, goods and services available in a global digital economy.

The world needs a smoothly operating agricultural machine, and the parts of that machine, national agricultural policies need to complement each other, not run at cross purposes.  Trade rules provide the necessary guarantee that food will be available at affordable prices when needed thereby ensuring livelihood security, particularly for rural households. Trade rules also help to ensure that food is safe by allowing countries to impose appropriate sanitary and phytosanitary measures without unnecessarily restricting trade.  In short, trade rules allow all countries to take care of their food security by working cooperatively with each other.

The WTO Agreement on Agriculture rests on the unstated recognition by all WTO Members that the agricultural policies of others matter. This is true whether the Member involved is a net importer or a net exporter, whether it is developed or developing.  Also unstated is the conclusion reached that no bilateral or regional agreement can be sufficient to address many of the most pressing issues of agricultural trade, particularly domestic support.  Only a multilateral approach is possible.

The international system is in the process of moving from one based solely on the nation state to one in which national governments increasingly take an active interest in other countries’ policies, especially those that result in effects outside those countries’ borders. (4)  Insofar as agriculture is concerned, this evolution can be seen in the Agreement on Agriculture which went into effect when the WTO was created.  The Agreement set limits on the amount of domestic support (subsidies) that any Member could give.  The next step in this process of international responsibility was the banning of agricultural export subsidies at Nairobi Ministerial Meeting in 2015.  The process is likely to go further.  At present, WTO Members have tabled proposals to place additional limits on the granting of domestic support.

The WTO is turning 25 this month, as are the Agreement on Agriculture, the Agreement on on the Application of Sanitary and Phytosanitary Measures and the Agreement on Technical Barriers to Trade.  These and many other WTO agreements – including the Trade Facilitation Agreement – adopted in 2013 and the Decision on Export Competition in 2015 – have successfully contributed to the reform of the agriculture sector and made the trading environment more predictable and fairer.

More needs to be done. Trade distortions, particularly in the form of subsidies that often also contribute to maintaining unsustainable production methods must be reduced.  Further efforts are needed to discipline border measures that often take the form of high tariffs and export restrictions.

As Agriculture Ministers, you need an effective multilateral trading system and, as important, the WTO needs your active engagement.  Reform of the WTO’s rules would not only result in increased production in a sustainable manner to feed the world’s growing population but will also have a positive impact on the environment.  You have a chance to multiply the benefits of your policies by becoming more deeply involved in trade negotiations and through collaborating extensively with your trade colleagues.  I urge you to do so.

Thank you.

Notes:

  1. The Green Revolution: Norman Borlaug received the Nobel Peace Prize in 1970 for the development of high-yielding varieties of cereal grains, expansion the use of synthetic fertilizers, and pesticides, greatly increasing yields of crops worldwide, with great benefits for developing countries.  Back to text
  2.   See for example the World Economic Forum Paper posted at  https://www.weforum.org/agenda/2019/01/how-to-build-a-circular-economy-for-food/. Back to text
  3. The term “countries” is meant here to include the European Union. Back to text
  4. Richard Haass, in an article in Foreign Affairs in January/February 2017,  entitled World Order 2.0, The Case For Sovereign Obligation, cites the WTO as an example of countries contributing to a global order in part through agreements that regulate policies that in much of world history was considered solely a matter of domestic concern. Back to text

Source:wto.org

 

34/ WTO opens NGO accreditation for Kazakhstan Ministerial Conference

20 January 2020

The WTO has opened the accreditation process for non-governmental organizations (NGOs) wishing to attend the 12th Ministerial Conference, which will be held in Nur-Sultan, Kazakhstan, from 8 to 11 June 2020.

A detailed explanation of the accreditation procedure is available here.

Online registration is available at https://eregistration.wto.org/mc12/ngo/register/en.

NGOs should submit their requests for accreditation no later than 29 March 2020 (midnight, GMT).

Online registration for individual NGO representatives will only be available for those NGOs that have been accredited. Individuals should be registered no later than 17 May 2020 (midnight, GMT).

For more information, please contact us by email at: mc12-ngo@wto.org.

More information on the Ministerial Conference is available here.

Source:wto.org

 

35/ Vietnam envoy for frequent exchange of business delegations

20 January 2020

Ambassador of Vietnam Pham Hoang Kim has stressed the need for frequent exchange of delegations for enhancing trade volume between the two countries.

Speaking at the Lahore Chamber of Commerce & Industry on Monday, he suggested business forums of two countries to focus this particular area for exploring each other’s market. LCCI Vice President Mian Zahid Jawaid Ahmad, Executive Committee members Fiaz Haider, Malik Khalid Gujjar, Yasir Khursheed, Haji Asif Sehar, Haris Attique, Sheikh Sajjad Afzal and Ch Khadim Hussain and former EC member Rehmatullah Javed were also present. The Ambassador said that there should be interaction between chambers of commerce of both countries. Pakistan and Vietnam have strong diplomatic relations. He said that entrepreneurs from both sides should have B2B meetings to strengthen mutual trade relations.

About getting business visas of Vietnam, the envoy said that there must be an invitation or immigration proposal from Vietnam. He said that the LCCI and the Vietnam Chamber of Commerce & Industry should join hands to arrange trade delegations and promote business activities. Mian Zahid Jawaid Ahmad highlighted investment opportunities in Pakistan under CPEC in Special Economic Zones. “It is encouraging to note that in the span of 10 years, Vietnam has become important trading partner of Pakistan.

Among the major importing and exporting countries for Pakistan, Vietnam comes at 27th and 18th places”, he said and added that the balance of trade was in favour of Vietnam whereas in 2018 the value of trade deficit stood at dollar 69 million. From 2017 to 2018, the bilateral trade came down from dollar 717 million to dollar 633 million. It was due to 24% decrease in imports from Vietnam. However, Pakistan’s exports remained almost unchanged at dollar 282 million.

“Pakistan exports to Vietnam comprise frozen fish, woven fabrics of cotton, oilcake, leather oil seeds and frozen meat whereas the imports from Vietnam are electrical equipment including wireless networks, dried vegetables, tea, man-made filaments and frozen seafood”, he said. He said that regular exchange of trade related information between two countries could prove vital in enhancing trade volume to initially 1 billion dollar.

“Respective commercial sections of missions have got to play key role in this connection. In addition to that the respective private sectors of both the countries should also come forward. By exchanging trade delegations and organizing single country exhibitions, we can explore the hidden trade potential”, he said.

He said that the economic development achieved by Vietnam in last 10 year was a perfect case study for Pakistan. In 2009, the volume of total trade of Vietnam was to the tune of dollar 127 billion that expanded to dollar 480 billion in 2018.

“We are keen to know about the economic policies implemented by Vietnam that produced such a wonderful result”, he said.

Source: The Nation

 

36/ Maintaining exports critical to cement industry this year

20 January 2020

Maintaining exports would be critical for the cement industry amid rising production output and anticipated sluggish domestic sales this year.

According to Nguyễn Quang Cung, President of the Việt Nam Cement Association, two new cement projects would go into operation this year, one in Tân Thắng Commune, the central province of Nghệ An with a capacity of 2-2.5 million tonnes per year, and one in Bỉm Sơn Commune, Thanh Hóa Province with a capacity of 4.6 million tonnes.

This would give the domestic cement industry total production capacity of more than 100 million tonnes, while local demand was estimated at around 70 million tonnes.

“Maintaining exports would be critical for the cement industry this year,” Cung said.

The Ministry of Construction forecast that cement sales would increase by around five per cent to reach 103 million tonnes in 2020, around 70 million tonnes of which would be sold to the domestic market.

According to Cung, domestic cement sales were anticipated to remain sluggish this year due to stagnant construction of infrastructure projects and the slowdown of the property market.

The association also predicted a five per cent growth rate for the cement industry in 2020.

Regarding exports, Cung said that cement export volume would be around 34 million tonnes this year but fall to 25 million tonnes in 2021.

“The lower cement export forecast in 2021 is based on expectation that domestic sales would increase,” Cung said, adding that reducing cement exports would be important in the long run because of the Government’s policy not to encourage exports of fully processed resources.

To cope with increasing pressure, Cung said cement producers should apply advanced technologies in production to enhance quality and added value while reducing environmental production, which would significantly help boost competitiveness.

Vietnamese cement was also facing rising pressure in international markets due to increasing production in China and Thailand, according to the ministry.

The ministry urged domestic firms to monitor the cement market and adjust their production plans accordingly to keep prices from falling. In addition, cement firms should also work out long-term development strategies.

FiinGroup predicted that cement demand would increase by around five per cent per year till 2030. An excess of supply over demand would continue until a balance was reached in 2028, the company forecast.

Statistics from the Import-Export Department under the Ministry of Industry and Trade showed that cement sales reached more than 99 million tonnes in 2019, up two per cent over 2018. Domestic sales accounted for 66 million tonnes.

Nearly 34 million tonnes were exported last year for nearly US$1.4 billion, $148 million higher than in 2018 and a record high. It was the second consecutive year Việt Nam saw cement exports to hit a new record.

Source: VNS

 

37/ Capitalizing on human capital: international guidance on competence management just updated

By Clare Naden on 21 January 2020

Ensuring people have the right skills for the job is a key element of an organization’s success. A recently revised and revamped International Standard will help integrate competence management into its daily work.

In a rapidly changing and increasingly globalized world, most companies have a wealth of varied skills and experience within their workforce, representing a significant opportunity for personal and organizational growth. A competence management system allows an organization to capitalize on this talent and expertise in order to reduce risks, improve its capabilities and help meet its strategic objectives.

ISO 10015, Quality management – Guidelines for competence management and people development, helps organizations address issues related to competence management by taking a quality management approach. It has recently been revised and expanded to align it more closely with the ISO 9000 family of standards for quality management and provide greater support and clarification on the determination of competence needs.

Gustavo Pontoriero, Chair of the ISO subcommittee that developed the standard, said ISO 10015 is designed to support ISO 9001, Quality management systems – Requirements, and now offers clear and systematic processes for competence management and people development.

“Using this standard effectively can bring a number of benefits to companies, including greater customer satisfaction, staff well-being and a more efficient working environment,” he said.

ISO 10015 was developed by ISO technical committee ISO/TC 176, Quality management and quality assurance, subcommittee SC 3, Supporting technologies, the secretariat of which is held by NEN, ISO’s member for the Netherlands. It can be purchased from your national ISO member or through the ISO Store.

Source:iso.org

 

38/ Deputy PM holds talks with Swiss Vice President

22 January 2020

Deputy Prime Minister Trương Hoà Bình had talks with Vice President and head of the Department of Economic Affairs, Education and Research of Switzerland Guy Parmelin in Geneva on Monday.

Both sides agreed to hold celebrations for the 50th anniversary of bilateral diplomatic ties next year.

Congratulating Việt Nam on its socio-economic achievements last year, Parmelin expressed his belief the country would be a success in the role of a non-permanent member of the United Nations Security Council for the 2020-21 tenure and the ASEAN Chair 2020.

Deputy PM Bình expressed his wish that both sides offer mutual support at multilateral forums, the UN and within ASEAN-Switzerland co-operation.

As of late September last year, two-way trade hit US$1.96 billion. Switzerland invested in 157 projects worth $1.95 billion, ranking 19th out of the 132 countries and territories investing in Việt Nam.

Host and guest affirmed the two governments will continue providing support for Swiss and Vietnamese firms, especially in fields of Switzerland’s strength and Việt Nam’s demand such as finance-banking, insurance, manufacturing, pharmaceuticals, farm produce and tourism.

The two sides will continue stepping up negotiations on the free trade agreement between Việt Nam and the European Free Trade Association (EFTA), to which Switzerland is a member, meeting the demand of the two economies.

Bình thanked Switzerland for development co-operation programmes for Việt Nam in personnel training, rural and urban development, and poverty reduction, contributing to realising sustainable development goals in Việt Nam.

He asked the European country to continue assisting Việt Nam in stabilising its macro-economy, reforming finance-banking, improving the capacity of global integration, coping with climate change, as well as reinforcing work across sustainable tourism, exports, labour market and social insurance with Vietnamese localities.

In education, the two shared experience in improving high-quality tertiary and vocational education in combination with science-technology development and discussed offering more scholarships for Vietnamese students to study in Switzerland.

They also highly valued the co-operation statement between the Vietnamese Ministry of Science and Technology and the Swiss State Secretariat for Education, Research and Innovation.

Bình proposed the Swiss government continue creating favourable conditions for the Vietnamese community in the country to stabilise their lives and bolster bilateral ties.

He applauded Switzerland’s contributions to maintaining peace, security and development in the world.

The two leaders highlighted the significance of settling disputes by peaceful means in line with international law, including the 1982 United Nations Convention on the Law of the Sea, in the East Sea (known internationally as the South China Sea).

During a meeting with Governor of Bern City, Canton Christoph Ammann, Bình said Việt Nam treasures the development of friendship with Switzerland and wished that the canton would continue making contributions to bilateral ties.

Host and guest vowed to enhance the sharing of information to tap bilateral co-operation, especially in fields of Bern’s strength such as tourism, technology, environment, education-training and research.

The Vietnamese official asked local authorities and the business community to continue supporting talks on a trade deal between Việt Nam and the EFTA, thus creating a new driving force for bilateral economic co-operation and facilitating trade and investment.

Source: VNS

 

39/ ASEAN Foreign Ministers’ retreat discuss 2020 plan

22 January 2020

Deputy Prime Minister and Foreign Minister Phạm Bình Minh on Friday presided over a retreat of foreign ministers of the Association of Southeast Asian Nations (ASEAN) countries (AMM Retreat), with the participation of the foreign ministers and the bloc’s Secretary General Lim Jock Hoi.

This was the first meeting of the top ASEAN diplomats this year to discuss the grouping’s plans this year, including the building of the community, the bloc’s foreign relations and international and regional issues.

Ministers said the themes and priorities set by Việt Nam for ASEAN 2020 are suitable for the goal of building the ASEAN Community. ASEAN 2020 co-operation will focus on fortifying the grouping’s solidarity and unity. The ministers also agreed to push up co-operation for the protection of the environment, peace, security and gender equity.

Representatives agreed with Việt Nam’s proposal on the action plan of the ASEAN this year.

Regarding foreign relations, they stressed the importance of broadening and deepening ASEAN’s external ties. The ASEAN – New Zealand commemorative summit will be held on April 9 right after the 36th ASEAN summit in Đà Nẵng. The foreign ministers agreed to propose ASEAN’s top leaders accept the invitation from the US President Donald Trump to a special summit to mark the fifth anniversary of the ASEAN – US strategic partnership to be held in the US in March, and accepted Việt Nam’s proposal on sending the ASEAN Secretary General to inform the UN Security Council on ASEAN – UN co-operation.

The ministers discussed the situation in the East Sea at length. They noted progress in the negotiations on the Code of Conduct (COC) and expressed concern over land reclamation at sea, especially recent developments, including serious incidents that violated sovereignty in the sea of severed ASEAN members and intensified tension, eroded trust and do not facilitate COC negotiations.

The diplomats reaffirmed the need to boost trust and avoid actions that complicate the situation, towards settling disputes by peaceful means, and to take international law, the UN Convention on the Law of the Sea (UNCLOS) as a basis for claims on sovereignty and sovereign right on the waters. They also stressed the need for the full implementation of the Declaration on the Conduct of Parties in the East Sea (DOC) to create an environment of mutual trust.

The ministers said ASEAN would continue supporting efforts to bring peace, stability and respect to the law and acceleration of reconciliation and concord among communities, as well as ensuring sustainable development in Myanmar’s Rakhine State. They agreed to continue supporting and facilitating repatriation and sustainable development there.

Minh thanked the countries for their support, describing it as a manifestation of ASEAN’s solidarity and unity. He stressed Việt Nam would do all it can to accomplish the tasks of the ASEAN 2020 Chair and work with the countries for a region of peace, stability and prosperity, for a cohesive and responsive ASEAN.

Source: VNS

 

40/ Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu gives TWD 4.5 million for LDCs at Ministerial Conference

22 January 2020

The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is donating TWD 4.5 million (approximately USD 150,000) in 2020 to help least-developed countries (LDCs) participate in the 12th Ministerial Conference (MC12), which will take place on 8-11 June 2020 in Nur-Sultan, Kazakhstan. The donation was acknowledged by WTO Deputy Director-General Yonov Frederick Agah at a meeting with Dr Yu-Ping Lien, Chargé d’affaires of the Permanent Mission of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu to the WTO, on 21 January 2020.

The donation is to the LDC Trust Fund, which is set up for each Ministerial Conference, the WTO’s top decision-making body. Contributions from WTO members help to defray the travel expenses such as air tickets and accommodation costs for officials from LDCs attending the Conference.

DDG Agah said: “The donation by the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu will help officials from LDCs participate actively in MC12 and will lay the groundwork for new market opportunities for businesses in their countries. I thank the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu for its generosity.”

Dr Yu-Ping Lien said: “The WTO’s 12th Ministerial Conference will be a major event for the multilateral trading system in 2020. Through our contribution, we aim to ensure that the Conference is inclusive and that the voices of the LDCs can be heard.”

The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has donated just over CHF 2 million to the various WTO trust funds since it joined the Organization nearly 20 years ago.

Source:wto.org

 

41/ New international guidance set to improve social responsibility in the global food chain

23 January 2020

Social responsibility is not only good for business, it is everyone’s business. New international guidance for the agri-food sector has just been published.

From ending hunger and obesity to protecting our natural resources, the food and agricultural industry has a huge role to play in the sustainable development of our world. ISO 26000 is an international reference document for social responsibility, providing best-practice guidance to help organizations operate in an ethical and transparent way that contributes directly to sustainable development. Now, a new technical specification for the agri-food industry offers sector-specific guidance on implementing social responsibility and, in particular, ISO 26000.

ISO/TS 26030, Social responsibility and sustainable development – Guidance on using ISO 26000:2010 in the food chain, provides guidelines on how an organization in the food production chain can contribute to sustainable development while considering all local laws, regulations and stakeholder expectations. It will help organizations such as food companies, farms, cooperatives, processors and retailers, regardless of their size or location, to develop a list of activities that will lead them to being more socially responsible.

Sandrine Espeillac, Manager of the ISO technical committee that developed the guidance, said there is increasing demand from consumers to have sustainable and socially responsible practices at every step of the food production chain, creating a real need for internationally agreed systems and processes.

“The food and agriculture sector has a significant influence on our world and our well-being,” she said.

“The use of ISO/TS 26030 will therefore not only help to improve social responsibility and sustainability in the food industry but have a positive impact on society as a whole. It also helps organizations contribute to many of the United Nations’ 17 Sustainable Development Goals.” This is reinforced by the participation of the United Nations’ Food and Agriculture Organization (FAO) in the development of the document, Espeillac adds.

In addition, this ISO technical specification will help to harmonize the various approaches to sustainability in the sector at the international level, giving users a competitive edge.

ISO/TS 26030 was also the subject of a symposium on achieving social responsibility objectives, held earlier today at the French government’s Economic, Social and Environmental Council in Paris, France.

The event, organized by La Cooperation Agricole, AFNOR and BPI France, was opened by Patrick Bernasconi, President of the Council, and featured speakers from the French ministry of agriculture, La Coopération Agricole and AFNOR, along with experts in social responsibility and standardization.

ISO/TS 26030 is a food-sector application of ISO 26000, Guidance on social responsibility, ISO’s flagship standard for social responsibility. It was developed by ISO technical committee ISO/TC 34, Food products, the secretariat of which is held by AFNOR, ISO’s member for France. It is available for purchase from your national ISO member or through the ISO Store.

Source:iso.org

 

42/ Vietnam, Indonesia agree to boost marine, fishery cooperation

23 January 2020

Vietnamese Ambassador to Indonesia Pham Vinh Quang had a working session with the host Minister of Maritime Affairs and Fisheries Edhy Prabowo on January 17.

At the session, the Indonesian minister held that there is much room for cooperation in sea food cultivation and processing, which is the main cooperation orientation. The Indonesian side will apply policies to expand import and export activities, he said, adding that a number of Vietnamese firms have contacted their Indonesian partners to implement the cooperation in the cultivation of lobster.

For his part, Ambassador Quang stressed that Vietnam totally supports the minister’s idea on pushing up the cooperation in sea food cultivation and processing, affirming this as a task to realise the agreement between Prime Minister Nguyen Xuan Phuc and President Joko Widodo on raising two-way trade value to 10 billion USD this year. He also expressed his hope that the cooperation will make positive contributions to the boost of bilateral trade in the time to come.

As for other fields of cooperation, the two sides agreed to accelerate the signing of the minute of cooperation between Vietnam’s Ministry of Agriculture and Rural Development and Indonesia’s Ministry of Maritime Affairs and Fisheries on the cooperation programme in the next five years.

Regarding the issue of the illegal fishing activities by their fishermen in the other side’s sea, they affirmed the primary principle of settling it in a harmonious and humane way in line with the two countries’ laws and the international law, as well as in the spirit of the high-level agreement and the bilateral strategic partnership.

The two sides also discussed the measures to strengthen the information exchange, to establish a hotline and to settle the issues seriously so as to contribute to the development of the bilateral relations in the time to come.

Source: VNA

 

43/ Vietnam’s Macroeconomic Report-Fourth Quarter 2019 unveiled

23 January 2020

A workshop co-hosted by the Vietnam Institute for Economic and Policy Research and the Konrad Adenauer Stiftung was launched in Hanoi on January 16 as a means of unveiling the Fourth Quarter Update and 2019 Review – Independent Assessment of Vietnam’s Macroeconomic Performance, with several senior economic experts in attendance.

According to figures released by the World Bank, global economic growth is expected to suffer a decline as we move into 2020. Evidence for this can be seen in the fluctuation of oil prices as a result of trade tensions between the United States and China, in addition to these between Japan and the Republic of Korea, whilst geopolitics tensions in the Middle East remain high.

Moreover, China’s economic growth is beginning to show signs of slowing whilst the price of Yuan remains unstable. In response to this, the People’s Bank of China cut interest rates on one-year Medium-Term Lending Facilities to 3.25 per cent in October as a way of boosting growth.

2019 also saw the US economy continue to grow at an increasingly slow pace with inflation reaching 2.05 per cent, while the FED decided to lower interest rates to 1.5 per cent from 1.75 per cent in November. Elsewhere, the European economy continued to suffer falls with the ECB deciding to keep interest rates stable until inflation reaches 2 per cent.

Moreover, Japan’s fertility rate hit an all-time low over the previous 120 years. Concerned about future economic slowdowns, the Japanese government launched a stimulus package of 13, 2000 billion yen as a way of dealing with the consequences of natural disasters, upgrading infrastructure, and investing in new technologies.

Regionally, the economic growth of ASEAN countries decreased slightly. Most notably, the price of Thai Baht continued to escalate, resulting in the Central Bank of Thailand deciding to cut interest rates to an all-time low of 1.25 per cent and loosening capital controls as a means of limiting the depreciation of the currency.

Locally, the nation’s economy grew at rate of 6.7 per cent on-year during in the fourth quarter of 2019, with FDI continuing to be the main contributor to growth through exports. Elsewhere, growth in the agriculture, forestry, and fishing sectors decreased as a result of a number of unfavourable factors.

The number of businesses ceasing to operate plummeted during the fourth quarter of the year whilst social investment capital stood at an estimated VND669,800 billion adjusted to current prices, an increase of 10.4 per cent compared to the previous year’s figure.

Furthermore, the GNI/GDP ratio widened further, from 98.6 per cent in 2000 to 93 per cent in 2018, indicating that currency outflows through expenditure and reimbursement loans were rising.

CPI in December 2019 rose sharply to 5.4 per cent on-year and 1.4 per cent month-on-month as a result of the fallout from the spread of African swine fever. It is estimated that during the first quarter of the year, CPI skyrocketed due to both the long Tet holiday and the rise in the price of oil prices due to geopolitics tensions.

The price of gold rose by 18 per cent, largely due to instabilities globally. Indeed, gold prices fluctuated at 16.7 per cent during 2019, higher than the corresponding figure from 2018 of 13.5 per cent.

The effects of tensions between the US and China, the US and Democratic People’s Republic of Korea, and between the US and Iran, alongside the depreciation of strong currencies, were factors in increasing the global and domestic price of gold.

Source: VOV

 

44/ Deputy PM urges enhancing ASEAN identity

23 January 2020

Deputy Prime Minister Trương Hòa Bình highlighted the necessity to enhance ASEAN identity and community awareness at a discussion on ASEAN during the 50th annual meeting of the World Economic Forum 2020 in Davos, Switzerland.

Bình joined other ASEAN leaders and experts to discuss how the region can capitalise on potential from the forecast that half of the world’s best-performing emerging economies are located in the ASEAN region.

Southeast Asia is predicted to play a big role in the dynamic development of Asia. However, changing demographics, rising inequality and economic tensions are jeopardising the momentum.

As ASEAN chair this year, Deputy PM Bình said Việt Nam was one of the countries with the highest growth in the world, and a major contributor to the development of ASEAN. “Making ASEAN stronger is a priority in Việt Nam’s foreign policy,” the Vietnamese official stressed.

Responding to a question on what Việt Nam would do as ASEAN chair to enhance trade facilitation among ASEAN member states, Bình said: “We need to have transparent and open policies and legal institutions by creating an equal playground for businesses and people within ASEAN.”

“Việt Nam also needs to have open and comfortable administrative procedures as well as attract resources within the country and open the door to external partners to conduct business activities,” he said.

Responding to questions over the scepticism of ASEAN’s role, Airlangga Hartarto, Co-ordinating Minister for Economic Affairs from Indonesia said that one of the things that keeps ASEAN one of the two strongest regional organisations like today is that it defends multilateralism and liberalisation of trade and investment.

ASEAN has proved that its way of upholding harmony and consensus is appropriate given how the regional bloc has maintained the fastest growth in the world even during and after the two global economic crises, the economic minister said.

In order to make the “ASEAN project” feel more of a people-driven initiative rather than mere Government’s efforts, the speakers agreed that there is a need to promote ASEAN’s identity, promote people-to-people exchanges – including the enabling of easier travelling and providing more student exchange opportunities, and promote the digital economy, which can easily connect people across countries and help push intra-regional trade.

Helianti Hilman, chairperson for the Indonesia-based artisanal food company JAVARA, said that within ASEAN, even though the producers and companies might be making the same products competing for the same exporting markets, social innovators and women entrepreneurship from ASEAN countries could still – and have been doing so – support and complement each other, through common denominators such as sharing a mission to tackle poverty and malnutrition, which is still an issue in many parts of Southeast Asia.

Source: VNS

 

45/ Ministerial meeting on investment facilitation for development, Davos

24 January 2020

Remarks by DG Azevêdo

(check against delivery)

Thank you, Vice-Minister Yañez,
Excellencies,
Ladies and gentlemen,

Good evening. Thank you for the kind invitation to join you today.

This meeting comes at an important juncture for the Structured Discussions on Investment Facilitation for Development.

Over the last few months you have made remarkable progress. This includes your meeting in Shanghai, which I also had the privilege to address.

Your motivation is very positive. So is the open, transparent and inclusive manner in which you have advanced since this initiative was launched.

Today is an opportunity to strengthen your commitment and provide political guidance as you move into negotiating mode. Your goal to deliver results by our 12th Ministerial Conference in Kazakhstan in June is perfectly doable and desirable

MC12 is an important moment to show that the WTO can deliver. A meaningful outcome on investment facilitation would be a huge achievement to that end. It would foster greater cross-border economic activity, contributing to growth, job creation, and development.

As you work towards that objective, I would like to leave you with a few messages.

First, maintain the pragmatism and open-mindedness that has been a hallmark of your discussions.

I understand that the Coordinator has prepared a ‘streamlined text’ to illustrate how a multilateral framework for investment facilitation might look. This will help guide your negotiations.

Second, I urge you to keep the discussions open, transparent and inclusive, as you have done so far.

Continue reaching out to other members, in particular developing and least-developed countries. I would encourage you to extend this outreach to the private sector, since businesses will be key users of an eventual agreement.

I am convinced that everyone stands to benefit from a shared investment facilitation framework that also leaves space for countries to address individual circumstances.

The numbers suggest that many members agree. Your initiative today counts almost 100 participants, up from the 70 that launched these discussions in 2017. I understand that other members have shown interest in the initiative and are participating in the discussions. This is very positive.

Third, there is great interest in your work from many constituencies.

This morning I attended a session on Easing Investment Worldwide. I heard strong business support for a WTO agreement on investment facilitation. The private sector leaders there saw an investment facilitation framework as encouraging investment in developing countries, contributing to job creation and the SDGs.

So I hope that your debates here will help you advance on these issues.

MC12 is just a few months away. Time may be short, but your determination is high.

I applaud that ambition and stand ready to help in any way that I can.

Thank you.

Source:wto.org

 

46/ In Davos, DG Azevêdo hears support — and urgency — for WTO reform

24 January 2020

Director-General Roberto Azevêdo welcomed the strong support expressed at the World Economic Forum in Davos this week by ministers, heads of state, private sector and labour leaders for ongoing efforts to reform and reinforce the WTO to keep up with changing business realities.

Towards the end of the annual gathering, the Swiss government convened an informal meeting of trade ministers on 24 January.

A recurring theme in their deliberations was the importance of the WTO dispute settlement system and the need to solve the impasse in its appeals stage. Ministers and senior officials also emphasised the need to deliver meaningful outcomes at the WTO’s 12th Ministerial Conference in Nur-Sultan, Kazakhstan, this June — particularly a multilateral agreement on disciplining fisheries subsidies. Calls were also made for progress in agriculture as well as the multiple joint statement initiatives in which groups of like-minded WTO members have been negotiating on issues such as investment facilitation, electronic commerce and services domestic regulation.

Earlier in the week, DG Azevêdo attended, at the organizers’ invitation, a Canada-led gathering on WTO reform as well as meetings of the groups of members negotiating agreements on investment facilitation for development and electronic commerce.

In addition to a number of bilateral meetings with political, business, and labour leaders, he participated in sessions organized by the World Economic Forum. While there was near-universal support for the WTO among his interlocutors, he felt a growing sense of urgency with regard to the ongoing reform process.

Speaking to ministers about his meetings in Davos, the Director-General said:

“I heard words of support for the WTO, the multilateral trading system, and its role in global economic governance, helping spur growth and development. But I still have to recall that the system is facing enormous challenges.

“2020 is a crucial year for the WTO. Concrete deliverables in Nur-Sultan would bolster the credibility of the WTO. It would prove that the WTO can adapt to the 21st century. The world economy is changing fast. Updated trade rules would give governments new tools to help businesses, consumers and workers thrive.

“On both dispute settlement and MC12, success will only be possible if members take an open-minded, business-like approach. We must be pragmatic, not theological, about finding solutions.

“Reform is essential for the WTO. This view is widely shared by members.

“WTO reform is — and should continue to be — an ongoing process of adapting to economic conditions and responding to members’ concerns.

“Sitting on our hands in Geneva means an ever-widening gap between WTO disciplines and business realities. It means fragmentation, as rules are defined elsewhere — or left for unilateral action.

“Reform is, ultimately, the product of your decisions. With the DSU and MC12, we have windows of opportunity for positive change.”

The Swiss-organised informal ministerial gathering was attended by a representative cross-section of the WTO membership. An attendee list is available here. Closing remarks by meeting chair Federal Councillor Guy Parmelin are here.

Ministers from 17 members issued a joint statement on the WTO dispute settlement system, promising to work together to develop a multi-party interim appeal arrangement based on Article 25 of the WTO Dispute Settlement Understanding (DSU). Their statement is here.

The DG’s statement to the investment facilitation joint initiative meeting is here.

The DG’s statement to the e-commerce joint initiative meeting is here.

Source:wto.org

 

47/ Joint Statement on E-commerce, Davos meeting

24 January 2020

Remarks by DG Azevêdo

(check against delivery)

Good morning everyone.

Thank you for inviting me to join you today — even though I can only stay for a few minutes.

At the outset, I would like to thank Australia, Japan and Singapore for organizing this meeting. I also want to commend all signatories of this Joint Statement for their work thus far.

The digital economy has already become central to the way we do business in the 21st century. And this trend will only increase. But unlike for goods and services, we have few international rules to facilitate cross-border electronic commerce and align regulations. The absence of such rules risks fragmentation and unilateral action.

Your efforts in this group offer a better path: towards predictability, interoperability and trust — and, of course, lower costs for businesses and consumers.

Your discussions have enabled WTO members to better understand the issues at stake in e-commerce. And you have taken important steps towards future rules in many areas.

Over the past year, this initiative took big steps forward. The talks became more concrete, as you streamlined proposals and debated policy alternatives. The Osaka Track, launched during the G20 summit in Japan, gave this work an important boost.

More and more members have joined this ministerial statement — Indonesia and Cameroon being the latest. This has brought a more diverse range of perspectives to the table.

All this engagement sends very positive signals. It shows a strong appetite for international economic cooperation on digital trade for the benefit of people and businesses in each participating country.

Today’s discussion is about building momentum for your negotiations in the run-up to our 12th Ministerial Conference in Kazakhstan.

That meeting is a clear landmark for many of the ongoing discussions at the WTO. So it is very important that this group looks very seriously at how to seize that occasion.

I would just like to leave you with two thoughts:

First, continue to keep this process inclusive and open. This means doing it at the WTO.

It is essential that issues fundamental to the 21st century economy, such as e-commerce, are debated at the WTO. At the same time, negotiating rules at the WTO will enhance their legitimacy and geographical coverage, since the door will be open to other members to get informed and join if they so wish.

Second, use MC12 to show that you mean business.

Substantive deliverables on e-commerce — if not full agreements, then concrete negotiating texts or partial agreements — would show the world that this process is serious about articulating shared rules of the game for digital trade.

Softer outcomes in Nur-Sultan, such as a general stocktaking or a roadmap, would be a missed opportunity.

I hope you will send a strong message to your negotiators to fully engage in the coming months. Success is within reach, given sufficient determination.

I will support you in any way I can.

Thank you.

Source:wto.org

 

48/ Guidance for information security management systems auditors just updated

By Clare Naden on 27 January 2020

Keeping sensitive company information and personal data safe and secure is not only essential for any business but a legal imperative. Many organizations do this with the help of an information security management system (ISMS). The international guidance standard for auditing an ISMS has just been updated.

In an age of increasing data usage and the risk of information security breaches and cyber-attacks, the benefits of an ISMS are clear. Not only can it help to minimize the chance of such breaches occurring, it can reduce the costs associated with keeping information safe.

ISO/IEC 27001 is one of the world’s best-known International Standards for the requirements of an ISMS, part of a series of standards designed to help organizations manage the security of their information.

One of the standards in that series, ISO/IEC 27007, Information technology – Security techniques – Guidelines for information security management systems auditing, provides guidelines for effective audits of ISMS to ensure they are as robust and competent as they are intended to be. It has just been revised to ensure it remains fit for purpose and align it with updates to its complementary standard, ISO 19011, Guidelines for auditing management systems.

The standard provides extensive guidance on auditing the requirements stated in ISO/IEC 27001 as well as on the competence of ISMS auditors. It is also intended to be used in conjunction with the guidance contained in ISO 19011.

ISO/IEC 27007 was developed by joint ISO and IEC (International Electrotechnical Committee) technical committee ISO/IEC JTC 1, Information technology, subcommittee SC 27, Information security, cybersecurity and privacy protection, the secretariat of which is held by DIN, ISO’s member for Germany. It can be purchased from your national ISO member or through the ISO Store.

Source:iso.org

 

49/ Members adopt panel ruling in Australia-Indonesia paper duty dispute

27 January 2020

At a meeting of the WTO’s Dispute Settlement Body (DSB) on 27 January, members adopted a panel ruling in a dispute initiated by Indonesia regarding anti-dumping duties imposed by Australia on imports of A4 copy paper from Indonesia.

DS529: Australia — Anti-Dumping Measures on A4 Copy Paper

Indonesia said a number of important issues related to the conduct of anti-dumping proceedings was raised in the DS529 dispute, including the determination of “normal value” (i.e. the domestic market price) for the product under investigation and the calculation of certain costs of production, with the panel finding in Indonesia’s favour on these points. Indonesia thanked Australia for its spirit of cooperation in agreeing not to appeal the panel ruling.

Australia said that while it was disappointed with the outcome, it intended to work closely with Indonesia in order to ensure prompt implementation of the findings. It said the dispute addressed important systemic issues not previously considered, notably with respect to the interpretation of “particular market situation” under Article 2.2 of the Anti-Dumping Agreement, where it welcomed the panel’s findings on this issue.

Russia said it had numerous concerns with the panel ruling which it said undermined the security and predictability of the multilateral trading system. Among other complaints, Russia criticized the panel’s interpretation of the term “particular market situation”, which it said would allow investigators to find dumping where no dumping exists. Thailand thanked the panel for its clear and well-written report and said it would follow this matter closely.

The DSB then adopted the panel report.

DS234: United States — Continued Dumping and Subsidy Offset Act of 2000

The European Union reiterated its request that the United States cease transferring anti-dumping and countervailing duties to the US domestic industry, arguing that every such disbursement was a clear act of non-compliance with the rulings on this matter. Canada supported the EU statement, while the United States said it has taken all actions necessary to implement the ruling.

DS316: European Communities and Certain Member States — Measures Affecting Trade in Large Civil Aircraft: Implementations of the recommendations adopted by the DSB

The United States said that once again the European Union has failed to provide a status report to the DSB concerning dispute DS316. The European Union repeated that the matter is subject to new compliance proceedings and thus there was no obligation on the EU to submit a status report.

Appellate Body appointments

Mexico, speaking on behalf of 120 members (Nepal becoming the latest co-sponsor), introduced once again the group’s proposal to start the selection processes for six vacancies on the Appellate Body. The increasing and considerable number of members submitting the proposal reflects a common concern over the current situation in the Appellate Body that is seriously affecting its workings as well as the workings of the overall dispute settlement system against the best interest of members, Mexico said for the group.

Nearly 20 members then took the floor to comment. Most of those speaking reiterated the importance of resolving the impasse over the appointment of new members as soon as possible and re-establishing a functioning Appellate Body. Many said it was the obligation of members to begin the process, as Article 17.2 of the WTO’s Dispute Settlement Understanding (DSU) requires members to fill Appellate Body vacancies as they arise. China said the present paralysis means that 10 pending appeals are suspended until the Appellate Body resumes functioning and that 33 pending panel disputes are also facing a potential legal limbo should the paralysis continue.

Several delegations noted the declaration by 17 WTO members in Davos on 24 January to develop a multi-party interim appeal arrangement that will allow the participating WTO members to preserve a functioning and two-step dispute settlement system at the WTO in disputes among them. Japan said it noted this development with great interest but that any attempt to adopt measures of a provisional nature must serve the purpose of finding a long-lasting solution.

The United States repeated that it was still not in the position to support the proposal and that the systemic concerns that it previously identified remain unaddressed. The fundamental problem is that the Appellate Body is not respecting the current, clear language of the DSU and members cannot find meaningful solutions to this problem without understanding how we arrived at this point, the US said. Without an accurate diagnostic, members cannot assess the likely effectiveness of any potential solution.

The DSB chair noted that, in his role as facilitator, he put forward a draft decision on the functioning of the Appellate Body (WT/GC/W/791) which did not secure consensus at the General Council’s 9 December 2019 meeting.  It was up to members to see how this work will be taken forward in the future, he said.  The chair also noted Director-General Azevedo’s statement on 9 December informing members that he would be undertaking more intensive high-level consultations on how to resolve the matter.

Surveillance of implementation

China presented its first status report regarding its implementation of the WTO ruling in DS511, “China — Domestic Support for Agricultural Producers”.  China told the DSB that its government agencies have conducted intensive consultations aiming to implement the ruling and that, given the complexity of measures at issue and the sensitivity of the subject matter, the internal process was still ongoing. China said it will accelerate the internal process and fulfil its implementation obligations in due course.

The United States thanked China for its statement and its readiness to accelerate the implementation process, and said it looked forward to hearing more detail from China on its implementation plan.

Brazil presented a further status report with regards to the implementation of the WTO ruling in DS472 and DS497, “Brazil — Certain Measures Concerning Taxation and Charges.” Brazil said that it enacted a law on 26 December bringing two challenged measures into conformity with WTO requirements and that, for the remaining programmes at issue, the measures either expired before the issuance of the WTO ruling or were revoked or replaced. Brazil is therefore in full compliance with the WTO ruling, it declared.

The European Union and Japan, which initiated the complaint against Brazil, said they were still analysing whether Brazil’s recent actions brought it into full compliance. Japan said it still had concerns that certain eligibility requirements for tax credits remain unchanged and that certain implementing orders remain in force that constitute prohibited subsidies.

The United States presented status reports with regard to DS184, “US — Anti-Dumping Measures on Certain Hot-Rolled Steel Products from Japan”,  DS160, “United States — Section 110(5) of US Copyright Act”, DS464, “United States — Anti-Dumping and Countervailing Measures on Large Residential Washers from Korea”, and DS471,“United States — Certain Methodologies and their Application to Anti-Dumping Proceedings Involving China”.

The European Union presented a status report with regard to DS291, “EC — Measures Affecting the Approval and Marketing of Biotech Products”.

Indonesia presented its status reports in DS477 and DS478, “Indonesia — Importation of Horticultural Products, Animals and Animal Products”.

Other business

Morocco said that the anti-dumping measure at issue in its dispute with Turkey in DS513, “Morocco — Anti-Dumping Measures on Certain Hot-Rolled Steel from Turkey”, expired on 26 September 2019, and that Morocco therefore did not need to take any further action to ensure compliance with the ruling.

Turkey said it agreed Morocco did not need to take any further action with regard to the anti-dumping measure at issue but said it trusted Morocco would take the ruling fully into account in future anti-dumping determinations. Turkey also said it regretted that Morocco’s anti-dumping measure has now been replaced by a safeguard measure.

Next meeting

The next regular meeting of the DSB will take place on 28 February.

Source:wto.org

 

50/ Advanced Trade Policy Course begins in Geneva

27 January 2020

Thirty participants from around the world are attending the two-month Advanced Trade Policy Course (ATPC) from 27 January to 20 March 2020 at the WTO headquarters in Geneva. The course was opened by Ms Bridget Chilala, Director of the WTO’s Institute for Training and Technical Cooperation (ITTC).

In her opening address, Ms Chilala encouraged the participants to adopt a constructive approach to learning by being both proactive and engaged in the course activities. This would allow them to maximize the benefits of exchanging ideas, perspectives and opinions with each other and with the experts taking part in the course.  She said that by deepening their knowledge and developing new skills, the participants would gain a better understanding of how the WTO agreements and global trade flows can support the growth of their economies.

The course will focus on helping participants develop and apply practical skills on issues including trade policy analysis, formulation and implementation; trade negotiations; dispute settlement; and trade monitoring.

Both legal and economic aspects of WTO rules and disciplines will be examined in a series of interactive sessions, including case studies, simulations and exercises. Roundtable discussions will provide a platform for practical exchanges, sharing of experiences and best practices as well as debating current trade topics. Participants will be expected to prepare and deliver a presentation relating to a trade policy topic. More information on the course can be found here.

The ATPC represents the highest level of training (level 3) in the WTO’s progressive learning programme. It is targeted at participants who already possess a sound knowledge of the WTO and its agreements.

List of participants

Albania Borana KALEMI
Azerbaijan Mahmud SEYIDOV
Belize Denise Althea MURILLO
Bhutan Tshering NIDUP
China Yuguo ZHAO
Eswatini Lungile Portia DLAMINI
Ghana Dilys ANKOMAH BOAFO
Grenada Ernie Christopher JAMES
Guyana Colin Junior LUCKIE
Hong Kong, China Wai Lun LO
Indonesia Zakiul FUAD
Iraq Kais Mayof Hassoune AL-QURAISHI
Kazakhstan Zhomart YELEUSSIZOV
Lao People’s Democratic Republic Vilayphone XINDAVONG
Malaysia Nurul Dalilah BINTI ALI
Montenegro Svetlana BOZOVIC
Myanmar Soe Htike AUNG
Oman Fatema Saif Hamood AL-MAMARI
Rwanda Cassien KARANGWA
Saint Kitts and Nevis Sherima Akiela POWELL
Saint Lucia Vernet Renee SAINT OMER-FONTENELLE
Samoa Terozita Maria UITIME
Senegal Aminata KANE
Sri Lanka Premathilake Jayakody BATAGOLLE GEDARA
Syrian Arab Republic Anas ALBUKAAI
Tanzania Mpanduji Gasto MATHIAS
Tonga Eva I Mahinafekite LIAVAA
Turkey Abdurrahman DENIZ
Uganda Steven Makwa WABUSANI
Zimbabwe Leonard MHURU

Source:wto.org

 

51/ New cohort of WTO young professionals welcomed by DG Azevêdo

28 January 2020

The WTO’s new cohort of Young Professionals was welcomed on 28 January by Director-General Roberto Azevêdo. The 12 participants in the Young Professionals Programme will spend a year in the WTO Secretariat to learn about the organization’s work and contribute to its activities.

Launched in 2016, the WTO Young Professionals Programme is part of the Secretariat’s efforts to increase diversity and broaden the representation of the membership. The Programme puts a special focus on WTO members that are not currently represented at the professional level in the WTO Secretariat.

The group includes this year professionals from: Albania, Bahrain, Cuba, Dominica, Fiji, Guyana, Israel, Lesotho, Mali, Mozambique, North Macedonia and Singapore. The 12 participants were selected from more than 1,200 candidates from developing and least-developed countries following a competitive selection process

“This is an important year for the WTO. We are celebrating our 25th birthday. Over this past quarter century, the WTO has helped transform international economic relations,” DG Azevêdo told the young professionals. “Despite considerable achievements however, and as you well know, the WTO is facing many challenges. Reforms are under discussion. Negotiations are underway on issues ranging from fisheries subsidies to, for example, e-commerce, MSMEs and investment facilitation.”

Speaking on behalf of the Young Professionals, Kérshia Cavele of Mozambique said: “We come from all walks of life, professional and academic backgrounds that we hope make us a valuable addition to the functioning of the multilateral trade system which the WTO nurtures. Considering ourselves as full advocates of multilateral cooperation under the spirit of inclusive and sustainable development, we hope to enthusiastically support the WTO Secretariat for the duration of the programme.”

Source:wto.org

 

52/ US gives USD 600,000 to help developing countries comply with farm trade standards

29 January 2020

The United States Department of Agriculture contributed USD 600,000 (approximately CHF 580,000) to the Standards and Trade Development Facility (STDF) in 2019 to help developing countries and least-developed countries (LDCs) meet international food safety, animal and plant health standards for trade, with the objective of increasing their access to world markets.

WTO Director-General Roberto Azevêdo said: “The United States has once again contributed generously to helping developing countries and LDCs meet agricultural standards, with the ultimate objective of furthering their integration into the global economy. This donation from the United States is very welcome.”

The US Ambassador to the WTO, Dennis Shea, said: “The United States is pleased to be renewing its support for strengthening the implementation of the Agreement on Sanitary and Phytosanitary Measures (SPS), a unique agreement aimed at improving health and preventing disguised trade barriers. Its provisions ensure regulatory approaches are transparent, and science and risk-based, setting the gold standard for protecting consumer health, supporting rural livelihoods and facilitating trade. Extreme poverty is predominately found in rural areas where agricultural productivity is low. Building farmers’ capacity to implement the SPS Agreement is critical to improving access to safe tools and technologies, increasing agricultural sustainability and achieving the vision of the United Nations Decade of Family Farming.”

The United States has contributed approximately CHF 24 million (USD 24.5 million) to the various WTO trust funds over nearly 20 years.

The STDF’s global network brings together leading trade, health and agriculture experts worldwide to address persistent and emerging SPS challenges. The STDF also provides support and funding for the development and implementation of projects that promote compliance with international food safety, animal and plant health standards. Through convening and connecting stakeholders across its knowledge and project work, and piloting and learning from innovative, collaborative and cross-cutting approaches, the STDF influences and catalyses SPS capacity development work globally. The STDF partnership is housed and managed by the WTO.

Source:wto.org

 

53/ STDF launches 2020-2024 strategy for safe and inclusive trade

30 January 2020

At an event held at the WTO on 30 January, the Standards and Trade Development Facility (STDF) launched its 2020-2024 strategy entitled “Safe and Inclusive Trade Horizons for Developing Countries”.

The strategy sets out a roadmap for STDF activities in line with the UN’s 2030 Agenda. Building on the STDF’s strong track record, the strategy will support small-scale farmers and micro, small and mid-sized businesses in developing countries to help them benefit more from trade.

Over the next five years, the STDF will develop the skills of people along the supply chain to help them meet international health and safety standards and reach global and regional markets.

To mark the launch of the strategy, WTO Director-General Roberto Azevêdo said in a video message: “I wish success to the STDF in implementing this strategy. On behalf of the WTO, I look forward to working with them to ensure that global trade drives growth, development and job creation for people everywhere.”

The strategy spells out how the STDF will work in partnership to promote sustainable solutions through dialogue, knowledge exchange and projects on the ground. Results will be jointly delivered by the STDF’s partners, donors, global and regional members, including the private sector and developing country experts.

The WTO is among the five founding partners of the STDF, along with the Food and Agriculture Organization of the United Nations (FAO), the World Organisation for Animal Health (OIE), the World Bank Group and the World Health Organization (WHO).

Source:wto.org

 

54/ DG Azevêdo: ACP’s support is key to strengthen the trading system

30 January 2020

Director-General Roberto Azevêdo attended a retreat of the African, Caribbean and Pacific (ACP) Group of States on 30 January to discuss the global trade landscape as WTO members prepare for the 12th Ministerial Conference in Nur-Sultan, Kazakhstan in June 2020.

Speaking at the invitation of the ACP Group, the Director-General and ACP members exchanged views on the state of play in WTO members’ ongoing discussions, ranging from fisheries subsidies and agriculture to WTO reform, trade and development, and the various Joint Initiatives being pursued by groups of members.

The Director-General emphasized that concrete deliverables in Nur-Sultan would help update and strengthen the trading system and ensure that it remains responsive to the needs of members. He urged the ACP to engage actively in the discussions.

The meeting was chaired by the Coordinator of the Group, Ambassador Cheryl Spencer of Jamaica.

The Director-General said:

“2020 will be a crucial year for the WTO. We will have windows of opportunity to strengthen the rules-based multilateral trading system – including at our upcoming Ministerial Conference in Nur-Sultan. Whether we manage to seize these opportunities is in members’ hands. Concrete deliverables in MC12 would bolster the credibility of the WTO. It would prove that the WTO can adapt to the fast-changing 21st century economy.

“The African, Caribbean, and Pacific Group of States will be important players in determining what we can achieve this year. I urge you to remain engaged and make your voices heard. Pragmatism, vision, determination and compromise will be necessary to deliver results and strengthen the trading system.”

Source:wto.org

 

55/ Ethiopia resumes WTO accession negotiations after eight-year pause

31 January 2020

Members expressed unanimous support for the resumption of Ethiopia’s WTO membership negotiations at the 4th meeting of the Working Party on the country’s accession, held on 30 January 2020. It was the first meeting of the working party in almost eight years. The Ethiopian delegation said it was ready to work jointly with members to advance and, hopefully, conclude, the accession process by the end of 2021.

The chair of the Working Party, Ambassador Morten Jespersen of Denmark, stressed that the resumption of Ethiopia’s accession process coincides with the internationally recognized peace and integration efforts by Prime Minister Abiy Ahmed, who was awarded the 2019 Nobel Peace Prize.

“As the Prime Minister said in his Nobel speech, while the world is shifting rapidly, it is time for Ethiopia to reap peace dividends with good faith to blossom into prosperity, security and opportunity. I have no doubt that today’s Working Party meeting will contribute to reaching this goal, by becoming a critical turning point in the history of Ethiopia’s accession” to the WTO, Ambassador Jespersen said.

“This meeting convened almost after eight years, has been critical at least on two accounts: first, sending a clear message that the accession of Ethiopia is back; and second, Ethiopia’s engagement is decisively different from the past — it is pro-active and offensive, as the WTO accession is integral to Ethiopia’s ambitious economic reform agenda,” he added.

The chair noted that Ethiopia plays a major role in the Horn of Africa region, which has the highest concentration of WTO accession activities. “Therefore, the resumption of the accession of Ethiopia is expected to give positive impetus to other African accessions, as well as regional integration efforts in the African continent, such as the African Continental Free Trade Area.”

Mr Mamo Mihretu, senior advisor to the Ethiopian Prime Minister and chief trade negotiator, led a high-level government delegation, including Ambassador Misganu Arga Moach, State Minister of Trade and Industry, Dr Eyob Tekalign Tolina, State Minister of Finance, Ambassador Zenebe Kebede Korcho, Permanent Representative of Ethiopia in Geneva, as well as other senior government officials and experts from a range of ministries and government agencies.

Mr Mamo underscored the government’s commitment to the accession process and called on members to accelerate negotiations in consideration of Ethiopia’s status as a least developed country (LDC).

“Membership of the WTO is only the logical next step in Ethiopia’s broader efforts to inject rule of law and predictability in its relations with all states around the world,” he said. “Let me emphasize that Ethiopia is now ready for a deal; I am here to seek your full support and commitment to facilitate this process and bring Ethiopia into the WTO within the shortest possible period, ideally not later than the end of 2021.”

The full statement of Mr Mamo is available here.

WTO members welcomed the resumption of the accession process and supported Ethiopia’s domestic reform efforts through this process. In addition, members pledged to provide technical assistance to Ethiopia to expedite its accession.

Bilateral market access negotiations

The Ethiopian delegation reported on its bilateral market access meetings in Geneva with six WTO members. Ethiopia provided a revised goods offer which envisages all tariff lines to be bound on the day of accession. Also, an initial services offer was submitted offering market access commitments in 10 services sectors. The chair urged members to work constructively in view of Ethiopia’s wish to speed up negotiations.

Foreign trade regime and WTO rules

Members reviewed the foreign trade regime of Ethiopia on the basis of an updated version of the Factual Summary of the Points Raised, which was issued in December 2019 ahead of the Working Party meeting.

Members provided comments and questions on a range of issues pertaining to the country’s trade and trade-related developments. The discussion helped to identify the list of issues which require further attention.

Legislative developments

The Ethiopian delegation updated members on legislative developments and reaffirmed its commitment to bring its trade regime into conformity with WTO rules. They assured WTO members that a fair and predictable legal system that encourages trade and investment is among the priorities of the government and the parliament in the ongoing legislative reform.

To that effect a special Advisory Council composed mostly of independent professionals from the private sector, academia and civil society has been established to provide for an innovative and participatory reform process that ensures its legislation is  in full conformity with WTO requirements.

Next steps

On the bilateral front, Ethiopia was invited to intensify bilateral market access negotiations with interested members; on the multilateral front, members were invited to submit comments and questions in writing by 28 February in order for the WTO Secretariat to prepare an “Elements of a draft Working Party Report”.

Concerning legislation, the chair asked the delegation of Ethiopia to revise its Legislative Action Plan and to continue submitting copies of WTO-related legislation, in order that members to have an up-to-date picture of the ongoing legislative reforms in Ethiopia.

Given Ethiopia’s strong drive to advance the accession process, the chair said members could aim at holding the 5th meeting of the Working Party after the northern summer break.

Background

Previous Working Party meeting: 27 March 2012 (3rd meeting)
Working Party Chairperson: Mr. Morten Jespersen (Denmark)
Working Party established: 10 February 2003

Source:wto.org

 

56/ Chair confident of making progress on agriculture talks ahead of Ministerial Conference

31 January 2020

At the first meeting in 2020 of agriculture negotiators, held on 30-31 January, the chair John Deep Ford said the “very spirited and frank” discussion gave him confidence that progress could be made between now and the WTO’s 12th Ministerial Conference (MC12) in Nur-Sultan in June.

The meeting took place shortly after 18 members of the Cairns Group of major agricultural exporting countries released at the World Economic Forum meeting in Davos on 24 January a blueprint outlining their negotiating proposal. The document states their readiness to at least halve all forms of trade and production-distorting agricultural subsidy entitlements by 2030. One member said it would not be acceptable if any agreement in MC12 does not include agriculture and that an outcome on domestic support should be delivered.

The negotiating proposal was introduced at the meeting by 19 WTO members (mostly from the Cairns Group). The proposal offered members new points for discussion on domestic support, a priority in the agriculture talks for the majority of WTO members. The proposal was supported by a new methodology paper submitted by Costa Rica. Other key objectives in the proposal include improving market access and addressing “unfinished business” on export competition.

China said per capita domestic support should be used as an estimate of potential distortions in farm trade and argued that looking at aggregate spending or entitlements would be misleading. One member welcomed China’s approach, which focused on comparing per capita subsidies among 18 major agriculture traders. Another member also said China’s argument was “valid” but questions were raised by others as to how to evaluate the aggregate impact of these subsidy programmes.

Six new submissions were tabled by members for review at the meeting, covering seven key topics: domestic support, market access, export competition, export prohibitions and restrictions, cotton, public stockholding (PSH) and the Special Safeguard Mechanism (SSM).

The chair said he is preparing a negotiation framework paper which will be circulated in mid-February. It does not have to be something agreed upon by everyone, he said, but “hopefully by May, we will have something stabilized for Nur-Sultan”.

The Russian Federation continued its efforts to push for enhanced transparency of applied tariffs, organizing a roundtable immediately after the meeting to deepen discussion on this topic.

New submissions

Domestic support

The new submission by 19 members, mostly from the Cairns Group, included a goal of reducing the sum of trade-distorting domestic support entitlements by at least half by 2030 (JOB/AG/177).  The group called for reductions on all forms of trade-distorting domestic support, including under Article 6 of the Agreement on Agriculture (Domestic Support Commitments). The proposal asks WTO members to take on commitments commensurate with the potential impact of their subsidies on global markets.

In the same vein, Costa Rica’s submission advocates the concept of “proportionality” to address the trade-distorting potential of each member’s domestic support and illustrates the concept by looking at 135 members’ shares of trade-distorting support under current de minimis entitlements.

Export prohibitions/restrictions

Following its submission in June 2019 (JOB/AG/156), Japan presented a new paper on behalf of some members of the Group of 10 (G10). The paper looks at export-restrictive measures from 2013 to 2018 (JOB/AG/175). Utilizing AMIS data (a trade database covering 28 countries and four main agriculture commodities: rice, maize, wheat and soybeans), the paper notes that the average duration of measures was longer in this period than in the 2007-2012 period,  while export restrictions stipulated by Article XI:2(a) of the General Agreement on Tariffs and Trade (GATT) must be temporary by nature. The paper also highlights the absence of notifications of export restrictions from 2013 to 2018.

Market access

Russia’s paper (JOB/AG/176) notes that despite the adoption of the Bali Ministerial Decision in 2013 to improve tariff rate quota (TRQ) utilization, TRQ fill rates declined in 2016. Russia called for enhanced transparency with regard to the availability of unused quota amounts to improve TRQ utilisation.

Special Safeguard Mechanism (SSM)

Indonesia, on behalf of the Group of 33 (G33), made a new submission on the SSM (JOB/AG/178). The paper recalls the mandates on the SSM issued at previous WTO ministerial conferences. Highlighting the persistent challenges caused by import surges and food price volatility in developing countries, the paper requests WTO members to engage with one another, with a view to reaching an outcome by MC12 on an effective and operational SSM. This should cover both price-based and volume-based triggers for use of the SSM, with no product limitations on its availability.

Public stockholding

The submission by the G33 group (JOB/AG/179) reiterates that public stockholding is a critical policy for supporting farmers in developing countries because governments can be the buyer of last resort when markets are not functioning efficiently. It urges members to respect the ministerial mandate on public stockholding and to redouble efforts on delivering an effective permanent solution by MC12.

Thematic discussions

Domestic support

Several Cairns Group members said that their paper is balanced, representing the interests of both developed and developing countries. Many WTO members expressed support for the principle of “proportionality” in subsidy reduction commitments. Under this principle, “those that have more potential to distort global markets would contribute more to the reform process”.

Explaining why all Article 6 subsidies should be targeted, one Cairns Group member said past experience has shown that a “cherry-picking” proposal is bound to fail and that no elements should be excluded. Costa Rica said that the “proportionality” methodology in its paper is only one possibility and welcomed other proposals. In conclusion, Costa Rica said it would issue a new submission soon.

Despite support for the paper issued by the group of 19 WTO members, a few members said discussions should focus on the most trade-distorting subsidies stipulated by Article 6.3 (Aggregate Measurement of Support, or AMS) and Article 6.4 (de minimis support) of the Agreement on Agriculture. The need to subsidize sensitive products for non-trade reasons was also highlighted.

A developed country insisted that Green Box support should  not be touched and said it will continue using this tool to “do good things” for its farmers.

Another member questioned whether there is enough time to resolve differences on domestic support issues. In its view, improving transparency remains a feasible outcome. It asked members to engage on other “equally important” areas, such as market access.

A group of developing countries said the priority should be addressing AMS above de minimis entitlements, which are more trade distorting than de minimis support. They reiterated that subsidy reductions should not target Article 6.2,  which allows developing countries additional flexibilities in providing domestic support.

A developing country expressed support for China’s per capita proposal. It said that as farmers with significant land in developed countries export most of their products, the subsidies they receive from government constitute de facto export subsidies. One member asked China to clarify its per capita proposal and argued against including it in new disciplines. China flagged there should be no uniform rules applying to WTO members at different stages of development.

Market access

A number of members supported Russia’s call for enhanced transparency in the application of TRQs, whereby imports within a quota are eligible for lower tariffs than those outside it. Some members lent their support to the proposal in Russia’s submission (JOB/AG/176) for the publication and notification of unused tariff quota volumes. Others highlighted the existing channels used to facilitate access to information on TRQs, including on unused quota volumes.  One member expressed reservations about adding new transparency obligations.

Several members underlined the importance of introducing market access reforms; caution was expressed by some about cherry-picking issues from the market access dossier. A number of developing countries expressed support for tariff simplification. The chair welcomed members’ continuing engagement on market access.

Public stockholding (PSH)

One WTO member questioned how Indonesia, as a sponsor of the paper submitted by 19 members (mostly from the Cairns Group) and the G33 paper, sees the interaction between these two papers. The first paper, it said, calls for reducing trade-distorting subsidies whereas the G33 paper is asking for additional ways of providing subsidies. “They are not necessarily contradictory but it is something we need to consider,” Indonesia said. It promised to respond to the question in due course.

One member was concerned about the impact of PSH programmes on global markets. It said developing countries did not make significant use of existing Amber Box support and could not justify the demand for additional avenues of support.

Some members said they understood the food security concerns but asked G33 members to be more creative in reaching their goal.

The chair expressed his “disappointment” on the state of play on PSH despite the “clear mandate” from previous ministerial conferences. He reiterated the need for “more details, flexible and creative ideas and new angles”.

Special Safeguard Mechanism (SSM)

Some developing countries renewed their call for a positive outcome on the SSM, citing their experiences of import surges and the adverse impact on poor and vulnerable farmers. They also referred to existing distorting subsidies and artificially cheap imports. Some food-exporting countries shared the concerns expressed by the G33 on distorting subsidies and the resulting instability in the international agriculture market. They offered their support in addressing the source of those distortions without hindering progress on trade opening.

The chair said that more analysis and discussion will be needed to move forward with this topic.

Export competition, export restrictions, cotton

A few members expressed their interest in looking at ways to strengthen transparency in export competition. One member proposed focusing on improving the response rate and quality of responses to the WTO’s annual questionnaire on export competition.

Several members supported the need to enhance transparency in export restrictions, in line with the new submission from Japan. One member indicated that it could only exempt from export restrictions the purchases of food for humanitarian purposes by the World Food Programme on a case-by-case basis due to domestic food security considerations.

In the absence of the Cotton-4 members (Benin, Burkina Faso, Chad and Mali) due to a Cotton-4 ministerial meeting taking place at the same time in Burkina Faso, the chair noted that consultations should continue in the coming weeks on this important topic.

Transparency on applied tariffs

Russia organized a roundtable on the transparency of applied tariffs immediately after the meeting of agriculture negotiators. It outlined the transparency challenge posed by frequent alterations in applied tariffs and proposed ways of addressing the issue.

Russia highlighted the importance of enhanced transparency for applied tariffs as a way of enabling more effective integration of micro, small and medium-sized enterprises (MSMEs) into multilateral trade and global value chains. Participants in the roundtable included WTO members and representatives of the International Grains Council, the International Trade Centre and international chambers of commerce. The full programme of the roundtable is available here.

Next

The chair said he was ¨very pleased¨ with the lively discussions and would intensify consultations with WTO members. He would reflect the ideas put forward so far into his upcoming report, which would aim at focusing the negotiations on more specific issues in the run-up to MC12.

The next meeting of the Committee on Agriculture in special session is scheduled for 24-25 February 2020.

See the glossary for agriculture terms.

Source:wto.org

 

57/ Lang Son: China suspending customs clearance of goods due to the Corona virus epidemic

31 January 2020

The Chinese side recently informed the Management Board of Dong Dang-Lang Son economic zone about the Corona virus epidemic. At the secondary border gates, customs clearance of goods will be suspended until February 9 and Huu Nghi International Border Gate will clear goods from February 3.

The Chinese side announced that due to the epidemic, all sub-border gates including Na Hinh, Binh Nghi and Na Nua will stop customs clearance for import and export goods until February 9. Particularly at Huu Nghi international border gate, customs clearance of import and export goods will be made from February 3. Entry and exit activities will still go on as normal.

The Chinese side requested management agencies of Lang Son notify enterprises to take the initiative in bringing goods to the border gate.

A representative of Tan Thanh Customs Branch (Lang Son Customs Department) said at Tan Thanh border gate, on the morning of January 28 (the 4th day of Lunar New Year) the Management Board of Dong Dang-Lang Son economic zone had a quick talk with China on the prevention of the Corona virus epidemic. Tan Thanh Customs Department requested its units to notify enterprises of the suspension of customs clearance for goods for them to take initiative in bringing goods to the border gate.

A representative of Coc Nam border gate Customs Branch said recently, at the border gate, there are few tourists and means. The Chinese side has almost no activities and has closed; people have not traveled and gone out.

Lang Son Customs Department said the department instructed border gate units to work with authorities to take many measures to prevent the epidemic and notified enterprises of the customs clearance situation for import and export goods.

Some Chinese travel companies also announced they would suspend pick-up and drop-off at Huu Nghi Quan border gate.

Recently, Dai Huu Tourism Development Company (Pingxiang, Guangxi, China) sent a notice to Huu Nghi International Border Guard Station that to prevent pneumonia caused by new Corona virus and prevent infection caused by crowed places and protect tourists health, Huu Nghi Quan Resort (China) will close from January 26 (the 2nd of the Lunar New Year) and will announce the re-opening later.

According to Huu Nghi International Border Guard Station, on January 25 and 26 (1st and 2nd of the Lunar New Year), 1,267 Chinese visitors entered Vietnam through the Huu Nghi border gate. Here, authorities have taken many measures to prevent and fight acute pneumonia by issuing medical declarations, monitoring body temperature by modern body temperature meters of the Health Quarantine Agency.

Source: VCN

 

58/ GUIDANCE FOR INFORMATION SECURITY MANAGEMENT SYSTEMS AUDITORS JUST UPDATED

1 February 2020

Keeping sensitive company information and personal data safe and secure is not only essential for any business but a legal imperative. Many organizations do this with the help of an information security management system (ISMS). The international guidance standard for auditing an ISMS has just been updated.

In an age of increasing data usage and the risk of information security breaches and cyber-attacks, the benefits of an ISMS are clear. Not only can it help to minimize the chance of such breaches occurring, it can reduce the costs associated with keeping information safe.

ISO/IEC 27001 is one of the world’s best-known International Standards for the requirements of an ISMS, part of a series of standards designed to help organizations manage the security of their information.

One of the standards in that series, ISO/IEC 27007Information technology – Security techniques – Guidelines for information security management systems auditing, provides guidelines for effective audits of ISMS to ensure they are as robust and competent as they are intended to be. It has just been revised to ensure it remains fit for purpose and align it with updates to its complementary standard, ISO 19011, Guidelines for auditing management systems.

The standard provides extensive guidance on auditing the requirements stated in ISO/IEC 27001 as well as on the competence of ISMS auditors. It is also intended to be used in conjunction with the guidance contained in ISO 19011.

ISO/IEC 27007 was developed by joint ISO and IEC (International Electrotechnical Committee) technical committee ISO/IEC JTC 1, Information technologysubcommittee SC 27Information security, cybersecurity and privacy protection, the secretariat of which is held by DIN, ISO’s member for Germany. It can be purchased from your national ISO member or through the ISO Store.

Source: iso.org

 

59/ WTO mourns the passing of former Director-General Mike Moore

2 FEBRUARY 2020

Mike Moore, the third Director-General of the World Trade Organization, died on Sunday 2 February at his home in Auckland, New Zealand.

The only WTO Director-General to have served as head of his country’s government, Mr Moore was DG during one of the WTO’s most historic and tumultuous periods.

His tenure (1999-2002) coincided with three particularly noteworthy events for the WTO: the 1999 Seattle Ministerial Conference, the accession of China to the WTO and the launch of the Doha Development Agenda, both of which occurred in 2001. During the often chaotic Seattle Ministerial Conference, Mr Moore never lost his sense of humour. In the aftermath, he exhibited a steely determination to help the organization recover, working tirelessly to facilitate the conditions for a new round of trade negotiations.

“Mike Moore was a man of passion, committed to helping those in need through a just and equitable trading system that delivered for all its members. He will be greatly missed. Our thoughts and prayers are with his family and friends,” said WTO Director-General Roberto Azevêdo.

Source: wto.org

 

60/ Media accreditation for 12th Ministerial Conference is now open

3 FEBRUARY 2020

Members of the media who wish to attend the WTO’s 12th Ministerial Conference to be held in Nur-Sultan, Kazakhstan, from 8 to 11 June 2020 can now apply for accreditation. The deadline for receiving applications is 29 May 2020 (midnight, GMT).

Before submitting the details for accreditation, media representatives are requested to make sure they fulfil the criteria specified on the WTO website. Non-governmental organizations (NGOs) have a separate accreditation process. Delegations should apply through their designated channels.

Journalists and other media representatives are required to submit a scanned copy of the letter of assignment from their editor on an official letterhead and a passport photo. Once the application has been considered, a confirmation letter will be sent by e-mail. A detailed explanation of the accreditation procedure is available here.

Accreditation for attending the Ministerial Conference does not automatically grant entry into Kazakhstan and a visa might be required. Information on visa requirements to enter Kazakhstan will be posted in due course.

For more information, please contact us by email at: media.accreditation@wto.org.

Source: wto.org

 

61/ UK notifies WTO on implications of withdrawal from the EU for itself and other members

3 FEBRUARY 2020

The United Kingdom has notified the other 163 WTO members of its status in the organization given its withdrawal from the European Union on 1 February. In a document sent on 1 February, the United Kingdom explains the WTO-related implications of Brexit for itself and other WTO members.

The United Kingdom has been a WTO member since 1 January 1995 and a member of the General Agreement on Tariffs and Trade (GATT) since 1 January 1948. Until 31 January 2020, it was a member state of the European Union. The European Union and the United Kingdom have agreed a Withdrawal Agreement pursuant to Article 50 of the Treaty on European Union, which provides for a time-limited transition period during which European Union law, with limited exceptions as provided for in the Withdrawal Agreement, will apply to and in the United Kingdom.

The communication from the United Kingdom states that the transition period provides continuity in the trading relationship between the United Kingdom and the European Union, and with other WTO members, with the United Kingdom remaining part of the European Union’s customs union and single market during that time.

For further information, see the UK page on the WTO website.

Source: wto.org

 

62/ WTO organizes regional trade policy course for French-speaking participants in Côte d’Ivoire

3 FEBRUARY 2020

Twenty-eight participants from 15 French-speaking African members of the WTO, as well as Haiti, are attending the two-month Regional Trade Policy Course (RTPC) being held in Abidjan, Côte d’Ivoire, from 3 February to 27 March 2020. This is the fourth RTPC organized by the WTO in partnership with the École nationale supérieure de statistique et d’économie appliquée (ENSEA), and the Government of Côte d’Ivoire.

RTPCs are intermediate training courses for government officials from WTO members and observers who are working on WTO-related issues. They are organized by the WTO in partnership with regional academic institutions selected through a competitive process.

The goal of the RTPCs is to deepen participants’ understanding of the WTO agreements; enhance their understanding of multilateral and regional trade policy issues; strengthen their capacity to access and utilize WTO information resources; and facilitate network building among WTO professionals. The courses are co-delivered by officials from the WTO Secretariat and trade policy specialists and academic experts from the region.

Many RTPC participants who successfully complete the course further specialize on WTO issues by attending Geneva-based courses. Several RTPC participants have been posted as delegates to their country’s Geneva-based missions to the WTO.

The course was opened with an address by Côte d’Ivoire’s Minister of Planning and Development, Ms Niale Kaba, who thanked the WTO for its continued support for trade-related capacity building in  French-speaking African countries.  Her message was echoed by Mr Albert Kouatelay from the Ministry of Commerce and Industry, who emphasised the importance of WTO technical assistance in strengthening the capacity of countries from the region —  many of them least developed countries (LDCs) —  to participate in the WTO’s work and better integrate in the multilateral trading system.

The opening remarks were followed by a conference entitled “Issues and challenges of the African Continental Free Trade Agreement (AfCFTA) for the expansion of intra-African trade in the face of the requirements of the WTO agreements.” The well-attended event included  an engaging round of questions and replies among the participants.

Source: wto.org

 

63/ Ministry seeks to sell farm produce in face of nCoV outbreak

03 February 2020

The Ministry of Agriculture and Rural Development held a conference in Hanoi on February 3 to seek ways to promote the trade and production of farm produce, given the complicated development of the acute respiratory disease caused by the novel coronavirus (nCoV) which originated in China’s Wuhan in late December 2019

Minister Nguyen Xuan Cuong said the nCoV outbreak has been hurting all economic industries, especially agriculture, because China is a major market of Vietnamese farm produce, making up 22-24 percent of the sector’s total export turnover

He urged relevant agencies and localities to build scenarios with specific groups of solutions to deal with the outbreak for 1-2 months or even 1-2 quarters

According to Deputy Minister of Agriculture and Rural Development Tran Thanh Nam, the nCoV outbreak will negatively impact the Vietnam-China trade of agro-forestry-fishery products

The limited transportation, especially the suspension of flights from and to China, will hinder the transaction and working between the two sides’ businesses and management agencies, he said

To deal with the situation, the ministry has directed the Plant Protection Department and the Department of Animal Health to coordinate with relevant forces in border areas to intensify the quarantine of animals and plants, prevent the H5N1 bird flu outbreak, and ban the import of wildlife animal into Vietnam

The Department of Farm Produce Processing and Market Development will have to proactively work with trade agencies of Vietnamese embassies in countries worldwide to diversify markets for agricultural products

Specifically, the ministry will lead a business delegation to visit Dubai on February 15 to expand the Middle East market. They will later visit the US from February 22 and Brazil in March, while expanding the market to Japan in March, Russia in June, Australia and New Zealand in July, the Republic of Korea in August, Europe in the second quarter of 2020, and Indonesia and Myanmar in the third quarter of this year

In case the nCoV outbreak lasts for months, the ministry will coordinate with businesses and localities to promote sales of farm produce at supermarkets.

Source: NDO/VNA

 

64/ PM urges Swedish Ambassador to bolster trade with Việt Nam

03 February 2020

Prime Minister Nguyễn Xuân Phúc has asked the new Swedish Ambassador to Việt Nam to further bolster trade and investment between the two countries during her tenure in Việt Nam.

He made the request at a reception in Hà Nội on Friday for Ann Mawe, who was the first foreign diplomat invited to the Government Office after Tết, the Vietnamese traditional New Year.

“Sweden is an important and trustworthy partner in the EU,” he said, noting that two-way trade has been on the rise, reaching US$1.5 billion in 2018 and $1.2 billion in the first three quarters of last year. Swedish investors currently operate 67 projects, worth a total $364 million, in Việt Nam.

The PM said the figures failed to match the two countries’ potential so the ambassador should work to boost the bilateral trade and investment.

Ambassador Ann Mawe said 2019 saw the exchange of many high-level visits between the two countries, highlighting the visit of PM Phúc to Sweden and of Crown Princess of Sweden Victoria Ingrid Alice Desiree to Việt Nam.

She also congratulated Việt Nam on its assumption of ASEAN Chair in 2020 and a non-permanent seat in the UN Security Council for the 2020 – 2021 term.

The diplomat suggested the two countries further enhance cooperation in innovation, a strong field for Sweden holds, as well as aviation and others.

She noted that the Sweden – Southeast Asia Business Summit would take place in the next two weeks, providing a good opportunity for leading Swedish companies to learn about ASEAN nations’ view on economic growth and to promote trade and investment between the two sides.

Sweden highly valued Việt Nam’s major steps in anti-corruption and the newly-adopted labour standards which are in line with international practices, Mawe said.

PM Phúc agreed with the Swedish ambassador on the promotion of high-level visits and expressed his wish to welcome the Swedish PM to visit Việt Nam soon.

He also asked Sweden to ratify the EU-Việt Nam Free Trade Agreement (EVFTA) and the EU-Việt Nam Investment Protection Agreement (EVIPA) to bring benefits to firms and people of both countries.

The PM expected to see more Swedish corporations arrive in Việt Nam to further lift the bilateral trade and the investment inflow into Việt Nam, contributing to strengthening the two countries’ relations.

Source: VNS

 

65/ DG Azevêdo: To modernize the WTO, we will need vision and determination

4 FEBRUARY 2020

Speaking at the Washington International Trade Association Conference on 4 February, Director-General Roberto Azevêdo said that WTO rules have provided stability and predictability for world trade but the WTO needs to adapt if it is to remain an effective entity in the years ahead. He called for political leadership and involvement to make the necessary changes and said both vision and determination will be required to modernize the organization.

Good morning, everyone.

Washington was my very first diplomatic posting – I have very fond memories of that period — and it’s always a pleasure to come back. Thank you and thanks to WITA for the invitation to join you here today.

I’d like to start by paying tribute to former WTO Director-General Mike Moore, who passed away over the weekend after a prolonged illness. Prior to his term at the WTO, Mike Moore served as New Zealand’s trade minister and prime minister. He ended his distinguished career as his country’s ambassador here in Washington. He was deeply committed to a WTO that worked for all of its members, big and small. Our thoughts and prayers go to his family and friends.

The global trading system we have grown accustomed to over the past 70 years was not built by accident.

It was deliberately constructed out of a hard-learned understanding: the understanding that absent cooperation in international economic relations, everyone is left worse off and growth opportunities are lost.

I’m not here to deliver a history lesson on the multilateral trading system. Plenty of people in this room would do a better job.

What I want to emphasise is that the value provided by the system is plain to see. This value extends well beyond the peace, prosperity, and interdependence fostered by trade. Businesses and consumers benefit every day from certainty and predictability about access to products and markets. Over 75% of current world merchandise trade occurs on the WTO’s non-discriminatory MFN terms (if we count the European Union as a single economy). All other bilateral and regional trade agreements together account for around 20%. And even under preferential terms, the WTO rules are still present, providing stability and predictability. When trade flows smoothly, it helps keep the economic engines running. The recent erosion of predictability and certainty has made the system’s value all the more evident.

Now, can we live without predictability in trading conditions? Absolutely. The world would not end because of trade policy uncertainty. But there would be a price to pay. Without predictability, growth and job creation would be slower and more fragile than they would otherwise have been. Investment and consumption decisions would be postponed, many of them indefinitely. All this would translate to lower productivity, and diminished future potential.

Modestly lower growth might not seem to make a big difference from one year to the next. Over a decade, though, it would add up. Over a generation, the gaps would become dramatic. Our children and grandchildren’s economic prospects would be significantly worse than they could have been.

In the event of a serious downturn, the short-term costs of unpredictability in trading relations would rise sharply. Governments providing fiscal and monetary stimulus would be tempted to add protectionism to their growth, promoting measures undoubtedly compromising their original goals. The collective result would be to weaken the effectiveness of everyone’s recession-fighting measures.

So the multilateral trading system is worth keeping. But that does not mean keeping it as it is. There are areas where it could improve — where it must improve.

In the 25 years since the WTO was created, global trade tripled in volume. Trade barriers have fallen. Poverty rates have hit historic lows.

And the world has changed in ways that could scarcely have been imagined. Look around: the main actors in the global economy are different. They have different economic models.

The bulk of the WTO rule book dates back to the Uruguay Round. These negotiations were concluded in Marrakesh back in April 1994. That’s four years before Google was even founded.

What this means for the WTO is that to endure as an effective entity in the years ahead, it will need to adapt. And adapting to changing realities will not be a big bang but rather a continuous, perpetual process.

I have been saying this since the first day I took office in 2013: that the system has to deliver more and deliver quicker. Its rules must cover more aspects of cross-border economic activity.

And we have been doing just this. The trade facilitation agreement concluded in 2013 is a boost to global transactions that could lift trade by over one trillion dollars. In 2015, members agreed to eliminate agricultural export subsidies, removing a major distortion in farm trade. That same year, a group of about 50 members agreed to expand the plurilateral Information Technology Agreement, cutting tariffs on $1.3 trillion worth of touch screens, new-generation microchips, GPS equipment and other infotech products that didn’t exist back in 1996.

These were important changes, but they are not enough. We need to go further.

Unless we do, grey areas in trade rules will keep expanding. They will become fodder for tensions.

In fact, some of the unconventional policies and bilateral arrangements we see today might never have arisen had we done more to update the system. The impasse on dispute settlement is a case in point. Many members, not only the United States, were dissatisfied with different aspects of how the Appellate Body was operating.  It is my hope that members will use the current crisis to produce an improved two-step appeals process.

Evolution and reinvention have been part of the multilateral trading system since its creation in the 1940s. It has incorporated new members and new issues. Governments have found new and creative ways of doing things, from the plurilateral codes on subsidies and other non-tariff policies, to the creation of rules in areas such as services and intellectual property.

That’s why I am pleased to be able to report that away from the gloomy headlines, WTO members are once again advancing on multiple fronts. At the multilateral level, they are working to reach an agreement that would curb fisheries subsidies and contribute to the health of our oceans. They are looking at how to liberalize and reduce distortions in agriculture trade.

At the same time, groups of WTO members are exploring potential future rules on investment facilitation, e-commerce and on domestic regulations that can unnecessarily obstruct services trade.

These ‘joint statement initiatives’, as they are called, tackle issues at the heart of the 21st century economy. They also represent a quiet revolution in the way governments negotiate at the WTO. Like-minded members are free to pursue issues without being held back by others. At the same time, no one is compelled to sign up to anything they don’t want to join.

The e-commerce talks, for example, bring together 82 members, accounting for around 90% of global trade, including the US, China, and the European Union. Establishing joint rules of the game would facilitate electronic transactions and digital trade, and could help manage wider tensions over technology.

For all of these processes, the WTO’s Twelfth Ministerial Conference, this June in Kazakhstan, will be a critical landmark. Delivering an impressive cluster of new rules is within members’ reach. These would go a long way towards preparing the WTO for the next 25 years.

Of course, the real question is not whether we need changes at the WTO. Just about everyone agrees on that. It is whether we can make the changes we need.

The fact is that change in multilateral institutions is hard. And it is doubly hard for institutions like the WTO, where every tweak in the rules has a concrete economic impact, threatening some interests even as it creates opportunities for others.

Technical experts sitting in Geneva cannot do it themselves.

We need political leadership and involvement. It’s either this, or we prepare to pay for the consequences.

For my part, I have been talking to leaders every chance I get. The G20 has endorsed WTO reform.

Now, getting the WTO’s 164 members to agree is always complex. But global problems require global solutions.

Looking ahead, I am sure that WTO members are ready for change. They want to improve the system we have — not throw it away and attempt to start from scratch. We have a solid foundation, one that has fostered growth, development, and increased purchasing power for decades. But a few coats of paint won’t be enough. We need structural changes.

All of you here have a role to play — businesses, academics, and government officials. We need your engagement. It’s not enough to say nice things about the system. Or to point out its flaws. To modernize the WTO, we will need vision and determination.

We need to roll up our sleeves and get to work.

Thank you.

Source: wto.org

 

66/ Footwear industry likely to hit goals this year

04 February 2020

The domestic leather and footwear industry was in good shape to reach its goals this year, according to Phan Thị Thanh Xuân, vice chairwoman and general secretary of the Việt Nam Leather and Footwear Association (Lefaso).

The industry’s industrial production index in 2020 would increase by about 11 per cent and the localisation rate of products would hit 60 per cent, she said.

The industry’s footwear and bag export value was forecast to reach US$24 billion this year, gaining 10 per cent compared to 2019.

Xuân said this year, the US-China trade war as well as trade conflicts between the US and other trade partners such as Europe and India would likely decrease, while the global economy would gradually recover.

Besides that, orders for footwear and bag would continue shifting from China to Việt Nam to take advantage of preferential tariffs from free trade agreements, she said.

Therefore, Lefaso forecast that the demand for local footwear products in Việt Nam’s main export markets would increase this year.

Foreign direct investment (FDI) enterprises would continue to expand production, helping the footwear industry maintain export growth.

According experts, the domestic leather and footwear industry had many opportunities to expand into new export markets. However, businesses needed to target value-added products and high-end brands for higher profits.

In addition to opportunities, free trade agreements would create many challenges for domestic footwear enterprises, so they needed to renew technology, improve production capacity, develop export markets and improve competitiveness.

According to the association, the industry must develop its support industries and raw materials, and increase labour productivity. It should also encourage investment to develop footwear production in central and southern provinces.

The association also said the biggest difficulty facing the leather and footwear industry was quality human resources. Businesses must retrain most of their staff who had not been trained at vocational schools.

In terms of exports, the industry last year gained stable growth and maintained competitiveness in traditional markets. The top five markets accounted for over 82 per cent of total national footwear export value, including the US, the European Union, China, Japan and South Korea.

Xuân said total export value of footwear and bags reached $22 billion last year, including $15.1 billion, or 75.8 per cent, from FDI enterprises.

The gap in export value between FDI and domestic enterprises has been narrowed. Domestic enterprises accounted for 19.7 per cent of the nation’s footwear and bag export value in 2017, and that figure surged to 24.2 per cent in 2019. This confirmed the recovery of domestic footwear enterprises.

Source: VNS

 

67/ Strides in Vietnam – US relations

05 February 2020

Vietnam and the US are implementing activities to celebrate the 25th founding anniversary of diplomatic relations (1995-2020). At the launching ceremony recently held in Washington DC, Vietnamese Ambassador to the US Ha Kim Ngoc stressed that, 25 years after the establishment of diplomatic ties and seven years after the establishment of their comprehensive partnership, Vietnam-US relations have seen robust development in many key areas of cooperation, ranging from politics-diplomacy, economy-trade-investment, science-technology, education-training, and settlement of post-war consequences to defence-security, locality-to-locality relations, and people-to-people exchanges.

Leaders of the two countries have regularly exchanged visits with commitments to respect each other’s independence, sovereignty, territorial integrity and political regimes. Vietnamese Prime Minister Nguyen Xuan Phuc was the first leader of an ASEAN country to visit the US after US President Donald Trump took office, while President Trump was the first US President to visit Vietnam twice during his tenure.

In addition, policy dialogue frameworks have been expanded, contributing to building mutual trust.

Recently, US Assistant Secretary of State for the Bureau of East Asian and Pacific Affairs David Stilwell emphasised that bilateral cooperation in economy, trade and investment has seen remarkable strides, holding a focal role and serving as an impetus for strengthening the countries’ comprehensive partnership.

The bilateral trade turnover, which stood at only US$450 million in 1995, has now surged to US$60 billion. For several consecutive years, the US has been Vietnam’s largest export market while Vietnam is the market in which the US’s exports grew at the fastest pace.

People-to-people relationships have laid a solid foundation for bilateral cooperation. 25 years ago, Vietnam welcomed less than 60,000 Americans every year. Now, the figure has reached nearly 700,000. Meanwhile, about 30,000 young Vietnamese people are pursuing their studies in the US, making Vietnam the sixth largest source of international students in the country.

Positive results have also been seen in the bilateral defence-security partnership, particularly in cooperation to address post-war consequences. The two sides have effectively cooperated in important projects, such as those on dioxin clean-up at Bien Hoa Airport; supporting people with disabilities in regions prayed with dioxin during the war; and bomb and mine clearance. Meanwhile, Vietnam continues to coordinate with the US in searching for US soldiers missing in action (MIA) in the war in Vietnam.

Vietnam and the US have collaborated in UN peacekeeping operations and enhanced coordination in coping with regional and international security issues. The two countries share strategic benefits in maintaining peace, security, stability, cooperation and rules-based order in Asia-Pacific.

That Vietnam has assumed the role as ASEAN Chair and as a non-permanent member of the UN Security Council for the 2020-2021 term will open up more opportunities to promote the Vietnam-US comprehensive partnership.

Both sides have agreed that significant strides in bilateral ties are a vivid illustration of the joint effort and determination of the leaders and peoples of the two countries over the last 25 years.

With shared trust and optimism, it is believed that Vietnam and the US will further develop their comprehensive partnership, lifting the bilateral ties to new heights.

Source: NDO

 

68/ Vietnamese leaders exchange congratulations on diplomatic ties

05 February 2020

Vietnamese leaders, on February 3, exchanged congratulatory messages with their Hungarian counterparts on the occasion of the 70th founding anniversary of the Vietnam-Hungary diplomatic ties (February 3, 1950-2020).

Party General Secretary and President Nguyen Phu Trong, Prime Minister Nguyen Xuan Phuc, and National Assembly Chairwoman Nguyen Thi Kim Ngan exchanged congratulatory messages with Hungarian President János Áder, Prime Minister Viktor Orbán, and Speaker of the National Assembly László Kövér, respectively.

On the same day, Deputy Prime Minister and Foreign Minister Pham Binh Minh also exchanged greetings with Hungarian Foreign Minister Péter Szijjártó.

* On the occasion of the 70th founding anniversary of the Vietnam-Romania diplomatic ties (February 3, 1950-2020), Party General Secretary and President Nguyen Phu Trong exchanged congratulatory messages with Romanian President Klaus Iohannis while Prime Minister Nguyen Xuan Phuc exchanged congratulations with Prime Minister Ludovic Orban.

Deputy Prime Minister and Foreign Minister Pham Binh Minh also exchanged greetings with Foreign Minister of Romania Bogdan Aurescu.

Source: NDO

 

69/ Registration opens for delayed broadcast of arbitration hearing in US-EU aircraft dispute

5 FEBRUARY 2020

At the request of the United States and the European Union in the dispute “United States — Measures Affecting Trade in Large Civil Aircraft” (Second Complaint) (Recourse to Article 22.6 of the DSU by the United States) (DS353), the Arbitrator has agreed to present a video recording of the non-confidential portions of the opening oral statements of the parties. The statements were originally made and recorded at the Arbitrator’s meeting with the parties held in January 2020.

The public presentation of the recorded opening statements will be on Thursday 5 March 2020 at 14:30 in Room S2 at the WTO in Geneva.

The statements will be made in English only. Interpretation will not be available.

The number of places in the presentation room reserved for the public will be allocated on a first-come, first-served basis upon receipt of a completed registration form. Applications will be accepted until 17:00, Geneva time, on Monday 2 March 2020.

Members of the general public to whom seats have been allocated will need to present a valid official photo identification on-site to access the presentation room. Members of the public allocated a seat are requested to arrive in good time, as WTO security checks may delay access to the presentation room.

Please note that any form of recording of the presentation is prohibited and that cell phones shall be switched off during the public presentation.

The WTO cannot offer any support, including financial, for accommodation, flight arrangements and visas.

Source: wto.org

 

70/ Workshop addresses incentives for technology transfer to LDCs under the TRIPS Agreement

6 FEBRUARY 2020

A workshop on incentives for technology transfer to least-developed countries (LDCs) under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) was held in Geneva on 4-6 February. Twenty-one capital-based government officials from 15 WTO LDC members and observers took part in the event held back-to-back with a meeting of the TRIPS Council on 6 February.

Article 66.2 of the TRIPS Agreement calls on developed countries to provide incentives to enterprises and institutions in their territories for the purpose of promoting and encouraging technology transfer to LDCs in order to enable them to create a sound and viable technological base.

As on previous occasions, the workshop provided the opportunity to exchange views between cooperation partners and to deepen the dialogue on incentives for transfer of technology to respond to the needs identified by LDCs. The event built upon a series of workshops annually convened in conjunction with sessions of the TRIPS Council aimed at strengthening cooperation in this area and looked at charting ways forward to enhance future dialogue, cooperation and effective use of transparency tools.

The chair of the TRIPS Council, Ambassador Lundeg Purevsuren of Mongolia, and Ambassador Ahmad Makaila of Chad, on behalf of the LDC group, opened the workshop and stressed the importance of an event that addresses a critical area of interest for LDCs within the scope of the TRIPS Agreement. The purpose is to improve stakeholder participation and to enhance the quality of the annual dialogue between developed country delegations and the LDC delegations, they said. WTO members should also aim at enabling LDC members and observers to analyse and enhance the benefits of the transparency mechanism concerning technology transfer measures under Article 66.2 of the TRIPS Agreement.

The workshop included presentations on technology transfer by WTO trainers as well as partner institutions and regional organizations, such as the World Intellectual Property Organization, the Organisation for Economic Co-operation and Development, the African Regional Intellectual Property Organization and the African Intellectual Property Organization.

LDC participants delivered presentations on their priority needs for technological development, related technology transfer projects and their experience with projects discussed in the reports from developed countries on the implementation of TRIPS Article 66.2. Additionally, participants heard presentations from eight developed countries. These presentations help to ensure transparency in the monitoring and implementation of Article 66.2 and provide an opportunity for LDC beneficiaries to learn about specific programmes implemented or planned in their countries.

All LDC participants, many of which have direct and hands-on experience in coordinating projects involving the transfer of technology in their countries, also attended the TRIPS Council and took part in the discussion on the implementation of Article 66.2 of the TRIPS Agreement.

List of participants

Bangladesh Mr. Md. Habibur RAHMAN
Bhutan Mr. Sangay CHOPHEL
Bhutan Ms. Sangay CHODEN
Burkina Faso Mr. Habraham SOMDA
Cambodia Mr. Seychanly TITH
Chad Ms. Nee Denebeye Walendom Genevieve TOUDJINGAR NAKIRI
Djibouti Ms. Ouloufa Ismail ABDO
Lao People’s Democratic Republic Mr. Makha CHANTHALAMs. Souvipha INTHAVONG
Malawi Ms. Ada KASOPA
Malawi Mr. Charles Vyawo CHAVULA
Mali Mr. Ahmadou SISSOKO
Mali Mr. Sidiki BOIRE
Sudan Mr. Ammar Mohammed
 Rwanda  ABUZAID ABDULLAHIMs. Ines IZERE
Switzerland
(Mission of Solomon Islands)
Ms. Christina Ghera Kuper WINI
The Gambia Mr. Abdoulie COLLEY
Vanuatu Mr. Iapatu Railau SAM
Zambia Mr. Peter Chewe CHILUFYA
Zambia Mr. Akashi Lawrence MWALYE

Source: wto.org

 

71/ Members discuss LDC technology transfer, highlight progress on transparency obligations

6 FEBRUARY 2020

At the meeting of the Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS) on 6 February, WTO members continued last year’s detailed discussions on how best to implement the Agreement’s obligations relating to technology transfer to least developed countries (LDCs). Members also noted the positive impact of the new e-TRIPS platform in increasing notification efforts and facilitating the fulfilment of transparency obligations.

Technology transfer to LDCs

workshop on the implementation of Article 66.2 of the TRIPS Agreement on incentives for technology transfer to LDCs was held back-to-back with the TRIPS Council. Article 66.2 of the TRIPS Agreement calls on developed countries to provide incentives to enterprises and institutions in their territories for the purpose of promoting and encouraging technology transfer to LDCs in order to enable them to create a sound and viable technological base.

Twenty-one capital-based experts from 15 LDCs, as well as Geneva-based delegates, participated in the workshop where they presented current areas of priority for technology development, projects that are relevant to these priority areas, and their experience with projects reported in the Article 66.2 reports over the last five years. Experts from eight developed countries presented and explained their 2019 reports.

All LDC participants, many of which have direct and hands-on experience in coordinating projects involving the transfer of technology in their countries, attended the TRIPS Council and took part in the discussion on the implementation of Article 66.2 of the TRIPS Agreement.

Notifications and transparency

The WTO Secretariat reported that so far 67 members (and five intergovernmental organizations that are observers) have requested log-in credentials for the e-TRIPS system, and virtually all the submissions of laws under Article 63.2 — and of contact points under Article 69 — were made using the e-TRIPS Submission System. The Secretariat said it remains ready and available to assist delegations to further increase use of the system, also for the submission of reports on technical assistance under Article 67 and on incentives for technology transfer under Article 66.2.

The Secretariat also reported on the progress made under the e-TRIPS system, which is now entering phase two. Apart from the submission system, the e-TRIPS Gateway, the online interface with which members can search and analyse TRIPS submissions and TRIPS-related information, will be improved and further integrated into the WTO website. The Secretariat will be again reaching out to delegations for feedback and suggestions in order to further refine the system.

Members acknowledged that a transparent intellectual property (IP) regime through notifications is essential for the growth of IP-intensive industries, including creative industries, technology, agricultural products, healthcare and the life sciences.

IP and innovation; IP and the public interest

Following up on past items on IP and innovation regularly added to the TRIPS Council agenda since 2012, the co-sponsors (Australia, Canada, Chile, Chinese Taipei, the European Union, Hong Kong China, Japan, Singapore, South Korea, Switzerland and the United States) expressed their intention to focus this year on the topic of “Making MSMEs competitive through trademarks”.

They underlined that the management of IP assets is a key consideration for businesses, and is particularly critical for micro, small and medium-sized enterprises (MSMEs), which tend to be new entrants to the IP environment. IP-holding businesses, including MSMEs, tend to be more active internationally (such as through stronger export performance) than non-IP-holding firms. Therefore, a better understanding of the relationship between IP rights and MSMEs, as well as the sharing of best practices by members in this regard, could help identify pragmatic ways to make the IP system more accessible to MSMEs and, in turn, enhance their competitiveness and trade performance.

At the proposal of South Africa, the Council also continued its debate on the intersection between IP and the public interest. South Africa invited members to address the relationship between the TRIPS Agreement and copyright, as it relates to the so-called three-step test on limitations and exceptions to copyright, with a view to clarifying the flexibilities to which members are entitled

The three-step test formulates three conditions with which any limitations and exceptions to a copyright holder’s rights must comply. Originating in the Berne Convention for the Protection of Literary and Artistic Works, it is also part of several subsequent international IP conventions, including the TRIPS Agreement which states in Article 13 that “members shall confine limitations or exceptions to exclusive rights to certain special cases which do not conflict with a normal exploitation of the work and do not unreasonably prejudice the legitimate interests of the right holder”.

South Africa invited members to discuss whether the three-step test constitutes an indivisible whole to the extent that each of the three steps are to be considered together in a comprehensive overall assessment, and to share experiences regarding their approach to reflect limitations and exceptions in their IP laws.

In response, some delegations recognized the important obligation members have undertaken with respect to copyright as provided in the TRIPS Agreement. They stressed that limitations and exceptions to exclusive rights should be confined to certain special cases that do not conflict with normal exploitation of the work and that do not unreasonably prejudice the legitimate interests of the right-holder. They noted that this is an ad-hoc agenda item and that it should be treated as such. One delegation said that questions concerning the interpretation and application of the three-step test were not the authority of the TRIPS Council but the prerogative of the Dispute Settlement Body.

Non-violation and situation complaints

Following the decision by the General Council on 10 December 2019 to extend the moratorium related to the initiation of “non-violation” complaints under the TRIPS Agreement until the 12th Ministerial Conference (MC12) in Nur-Sultan in June, members reiterated their well-known positions on this issue and did not show any indication of convergence.

This issue concerns the longstanding discussion of whether members should have the right to bring dispute cases to the WTO if they consider that another member’s action or a specific situation has deprived them of an expected benefit under the TRIPS Agreement, even if no specific TRIPS obligation has been violated.

The chair of the TRIPS Council, Ambassador Lundeg Purevsuren of Mongolia, informed delegations of two sets of informal consultations held in January on this topic where he asked members to explore ways to advance on this issue, but without success. “Let me highlight that MC12 is only four months away. It is therefore important that discussions soon begin to focus on concrete suggestions for the Council’s recommendation for the Ministerial,” said the chair.

Some members voiced their opposition to a further extension of the moratorium on the grounds that non-violation complaints are essential to maintaining the proper balance of rights and obligations within the TRIPS Agreement while helping to ensure that legitimate obligations are not circumvented or avoided.

Some other delegations preferred a complete ban of non-violation complaints under the TRIPS Agreement. These members believe there is no place for the application of non-violation complaints in the area of intellectual property because of the legal insecurity and curtailment of flexibilities that could ensue. They argued, however, that in the absence of an agreement on this issue, they could join consensus in support of a recommendation to further extend the moratorium.

Cross promotion

Mexico proposed to analyse the definition of “cross promotion” — a marketing technique which involves the promotion of other product(s) targeted to the customers of a related product — in relation to a draft Codex Alimentarius Commission standard which includes labelling provisions for different types of infant formula. Mexico noted that if that standard were to include a proposed prohibition on cross promotion among infant formula, follow-up formula for older infants and formula for special medical purposes, it could affect the use of protected trademarks.

Mexico recommended that the WTO, as an intergovernmental organization with observer status in Codex Alimentarius, take note of the concern that this concept’s lack of clarity could generate for its members. Some members welcomed the initiative while others favoured waiting for further discussion on a cross promotion definition in the appropriate fora before the Council assesses whether it conflicts with other international obligations in terms of IP.

TRIPS amendment

The chair reported that, since the last TRIPS Council meeting in October 2019, Burundi had deposited on 12 December 2019 its instrument of acceptance for the protocol amending the TRIPS Agreement. To date, 129 members have accepted the TRIPS Amendment which entered into force on 23 January 2017, securing for developing countries a legal pathway to access affordable medicines under WTO rules. At the last General Council meeting in December 2019, the period for acceptance of the protocol was extended until 31 December 2021.

Next meeting

The next meeting of the TRIPS Council will be on 14-15 May. The Council will formally elect its new chair at the beginning of that meeting, after the next General Council (3-4 March) agrees on the slate of new chairpersons for WTO bodies.

Source: wto.org

 

72/ VN, Poland marks 70th anniversary of diplomatic ties

06 February 2020

Việt Nam and Poland today marks 70 years of diplomatic ties.

Poland was among the first seven countries to recognise and establish diplomatic relations with Việt Nam in 1950. Since then, Poland has always supported and helped Việt Nam in the struggle of Vietnamese people for national independence and have a long tradition of friendship.

Over the past 70 years, the traditional friendship and multifaceted cooperation between the two countries have developed well in many fields like academic, scientific, cultural and economic platforms.

Trade and investment has also seen positive growth in recent years.

In 2018, two-way trade turnover between the two nations reached nearly US$1.6 billion, up some 60 per cent compared to 2017.

By the end of September 2019, total import and export turnover reached more than $1.3 billion of which, Việt Nam exported more than $1.1 billion and imported more than $207 million worth of goods.

The key sectors of cooperation are agro-food, pharmaceuticals, cosmetics, green technologies and wastewater treatment. Other potential areas are software/IT, heavy industries such as mining, shipbuilding, machinery and equipment for agricultural production, and food processing.

Over the past seven decades, thousands of Vietnamese students have chosen Poland as the destination for their academic pursuits.

Source: VNS

 

73/ Guidance for lodging proof of transport in CPTPP

07 February 2020

Relating to questions from provincial customs departments and enterprises about proof of transport for the case of imported goods transported through territories of one or many countries that are not members of the CPTPP, the General Department of Vietnam Customs offered specific guidance.

Accordingly, in cases of goods transported through territories of one or many countries that are not members of the CPTPP, but the goods are not stored in a country that is not a member of the CPTPP, customs declarants should provide proof of transport to customs authorities to prove that goods have been intact in the process of origin.

In case goods are transported through the territory of one or many countries that are not members of the CPTPP and the goods are stored in the non-member country, the customs declarant shall submit proof of preservation or customs documents proving that the goods are intact and in the same condition during transportation.

The General Department of Vietnam Customs’ guidance is based on the current provisions of law, and at Point d, Clause 1, Article 3.24 of the CPTPP on obligations relating to import stipulating that: “Providing relevant documents such as proof of transport and in the case of storage, archival documents or customs documents in the event that a Party requests proof of the provisions of Article 3.18 Transit and transhipment has been applied.”

Source: VCN

 

74/ THE SAME PAGE WITH NEW INTERNATIONAL STANDARDS

7 February 2020

Biometric data interchange formats provide the common language that allows for interoperability between different biometric technologies. As the field of applications has grown to give rise to different generations of such formats, so too has the need to ensure they are all compatible with one another. New International Standards have just been published that help to do just that.

A reliable means to verify identities, biometrics is a technology that is increasingly widespread, used in many domains such as border controls using machine-readable passports, healthcare, voter identification and restricted access areas. As the science has evolved, so too has the coding information behind it known as biometric data interchange formats.

In order to ensure interoperability and correct data interchange between different biometric applications and systems, the expert committee on biometrics of ISO and the International Electrotechnical Commission (IEC) has already developed a number of International Standards for a wide variety of applications.

As the technology evolves, however, so do the data elements and formats. Which is why, in order to avoid any future interoperability issues, the experts are developing an additional series of standards that provide the formats capable of being extended in a defined way. The first in this series have just been published and include:

  • ISO/IEC 39794-1Information technology – Extensible biometric data interchange formats – Part 1: Framework
  • ISO/IEC 39794-4, Information technology – Extensible biometric data interchange formats – Part 4: Finger image data
  • ISO/IEC 39794-5, Information technology – Extensible biometric data interchange formats – Part 5: Face image data
  • These standards will supersede the corresponding parts of the ISO/IEC 19794 series for data interchange formats, and it is anticipated they will be adopted by the International Civil Aviation Organization (ICAO) as the basis for their standard 9303 on machine-readable travel documents later this year.
  • The ISO/IEC 39794 series will be complemented by future additions, including specific parts related to iris, vascular, full body and gait image data.
  • Patrick Grother, Chair of the ISO/IEC technical committee responsible for the ISO/IEC 39794 series, said it is the latest in a large and comprehensive set of International Standards that support interoperability in biometrics.
  • “We intend to have internationally agreed standards for all biometric modalities, taking into account the diverse range of applications, the often sensitive nature of the data and the various regulatory and jurisdictional requirements,” he said.
  • The ISO/IEC 39794 series was developed by joint ISO/IEC technical committee JTC 1, Information technologysubcommittee SC 37Biometrics, the secretariat of which is held by ANSI, ISO’s member for the USA. The standards can be purchased from your national ISO member or through the ISO Store.

Source: iso.org

 

75/ Japan initiates second WTO dispute complaint regarding Korean support for shipbuilders

10 FEBRUARY 2020

Japan has requested WTO dispute consultations with Korea regarding alleged subsidies provided by the Korean government to its shipbuilding industry. Japan’s request was circulated to WTO members on 10 February.

The request is the second filed by Japan concerning support measures for Korea’s shipbuilders.  Japan initiated its first WTO complaint in November 2018 (DS571).

Japan claims the challenged measures, which include funds, loans, guarantees, insurance and other financing, are inconsistent with the WTO’s Agreement on Subsidies and Countervailing Measures (SCM Agreement) and the General Agreement on Tariffs and Trade (GATT) 1994.

Further information is available in document WT/DS594/1

What is a request for consultations?

The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.

Source: wto.org

 

76/ WCO has published accepted amendments to HS 2022

10 February 2020

The WCO has published the amendments to the Harmonized System (HS) Nomenclature accepted by all 158 Contracting Parties to the HS Convention.

The accepted amendments include 351 sets of amendments, divided as follows: the agricultural, food and tobacco sectors – 77; the chemical sector 58; the wood sector – 31; the textile sector – 21; the base metal sector – 27; the machinery and electrical and electronic goods sector – 63; the transport sector – 22; other sectors – 52.

The Preamble of the HS Convention emphasizes the importance of ensuring that the HS is kept up to date in light of changes in technology and patterns of international trade. Adaptation to current trade through the recognition of new product streams and addressing environmental and social issues of global concern are the major features of the HS 2022 amendments.

To achieve this, there has been more than 4 years of hard work within the Harmonized System Committee (HSC), the Harmonized System Review Sub-Committee (RSC) and the Scientific Sub-Committee (SSC) put into the 351 sets of amendments.

The WCO Council at its 133rd /134th Sessions in June 2019 adopted the recommended amendments prepared by the HSC. On 4 July 2019, the Secretary General of the WCO notified Contracting Parties of the amendments adopted by the Council. Since there is no objection from any Contracting Party to the recommended amendments outstanding after the period of six months allowed for such objections under Article 16.2 of the Convention, the recommended amendments are deemed to be accepted in accordance with Article 16.3 of the Convention. In accordance with Article 16.4 (b), these accepted amendments shall enter into force for all Contracting Parties on 1 January 2022.

Source: WCO/ VCN

 

77/ DDG Wolff affirms WTO commitment to support Africa’s economic integration

11 FEBRUARY 2020

In a speech delivered at the Addis Ababa University on 11 February, Deputy Director-General Alan Wolff stressed WTO commitment to supporting Africa’s continued economic integration, growth and development through the participation of African members in the organization. DDG Wolff paid his first visit to Ethiopia to participate in a Regional Dialogue on WTO Accession for Africa, bringing together all acceding governments from the African continent. This is what he said:

The World Bank’s webpage on Africa begins with the words:

Sub-Saharan Africa’s opportunities are vast … . Home to the world’s largest free trade area and a 1.2 billion-person market, the continent is poised to create an entirely new development path harnessing the potential of its resources and people.

What I left out of the first sentence I just quoted are the words “and [Africa's] challenges [are] persistent”.  Among the problems cited for Sub-Saharan Africa are “political and regulatory uncertainty; and fragility”.  The details of this World Bank assessment continue:

  the availability of good jobs has not kept pace with the number of entrants in the labor force; fragility is costing the subcontinent a half of a percentage point of growth per year; gender gaps persist and are keeping the continent from reaching its full growth and innovation potential, and 416 million Africans still live in extreme poverty.

The multilateral trading system, now administered by the World Trade Organization, is not a stranger to these kinds of challenges.  The system was created in 1947 in the wake of two cataclysmic world wars, accounting for almost 100 million killed.  It was a time when there was no assurance that the global economy would recover after the Second World War.  The interwar period, during the deepest part of the Great Depression, witnessed unemployment in Europe and North America reaching 25 million(1).  When the creation of the International Trade Organization (ITO) was being contemplated, there was no assurance that without war-driven demand and with demobilization of armed forces, that the world would not sink back into pervasive unemployment.

The avoidance of renewed conflict and a failure at economic recovery was very much on the minds of those planning for the post-war period. The opening words of the Havana Charter for the International Trade Organization (ITO), signed on 24th of March 1948, which was to be a sister organization with the World Bank and the International Monetary Fund, were:

RECOGNIZING the determination of the United Nations to create conditions of stability and well-being which are necessary for peaceful and friendly relations among nations, THE PARTIES to this Charter undertake in the fields of trade and employment to cooperate with one another … For the . . . the attainment of … higher standards of living, full employment and conditions of economic and social progress and development, . . . .

The signatory countries wanted to use economic ties among nations, through trade, to underwrite the peace, particularly in Europe, the countries of which had precipitated the two world wars.  The lessons learned during that period nearly three-quarters of a century ago when the multilateral trading system was founded have largely receded in the minds of today’s policymakers.  This is not true of number of the governments that have acceded to the WTO during its 25-year life.

The two most recent to join are Liberia and Afghanistan, no strangers to domestic conflicts.   Today, at the World Trade Organization (the WTO), the linkage of trade to world peace is most prominently seen in conflict-affected states joining the organization. In the list of countries at present actively seeking to accede to the WTO are Somalia, Sudan, South Sudan, Syria, East Timor and very prominently, Ethiopia.  All have the goal of domestic reform and integration into the world economy, to create greater stability and have a better chance at achieving an enduring peace.  Their motivations are not very different from those of the founders of the multilateral trading system in 1947.

The peoples of the African continent are not strangers to conflict.   The number of conflicts in Africa during the last two decades is staggeringly large, amounting to nearly fifty separate instances of armed conflict, a significant number of them continuing to this day.(2)(3)   This circumstance puts a premium on policies and measures that create stability and improve the prospects for peace.  This is the context in which a renewed interest in the WTO and the multilateral trading system is occurring.

Ethiopia applied to the WTO for observer status in 1997, when the WTO was only two years old.  It began its accession process in May 2008 with an Accession Working Party meeting in Geneva. This process was put on hold by the Government of Ethiopia in 2012.  Just two weeks ago, Ethiopia formally resumed its WTO accession process with the holding an Accession Working Party as a complement to Ethiopia’s extensive program of domestic economic reforms.  Ethiopia’s Chief Trade Negotiator, Minister Mamo Mihretu, provided details for the WTO Members of what he termed Ethiopia’s “wide-ranging home-grown economic reform agenda”, regarding finance, investment, taxation and a series of other domestic measures.  He went on to say the following:

  Ethiopia’s interest to join this Organization goes beyond the economic objectives outlined…. Ethiopia has learnt from its own experience, the hard way, that trade is a critical medium for the building of peaceful inter-state relations at all levels, bilateral, regional as well as global. … Ethiopia is here today because it is convinced that … there is no better way to advance free and fair trade than through a multilateral trading system based on the rule of law, transparency, good governance, and predictability. Just as the WTO aims to advance peace and stability through trade, the Government of Ethiopia is committed to use trade and regional integration as the central pillar for its mission to bring peace and stability to the Horn of Africa region.

There is another parallel between the nations of Africa today and the founding members of the multilateral trading system seventy-three years ago. Both have seen regional economic integration as a major tool for creating stability and underwriting economic progress.  The GATT made provision for the creation of deeper integration on a regional basis, and this is a major aspect of the WTO today. The EU’s founding fathers — including Jean Monnet, Robert Schuman, Paul-Henri Spaak, Alcide de Gaspari and Konrad Adenauer — were committed to building closer ties to support the new peace, first through integrated production and then through a unified European market.

On March 25, 1957, France, West Germany, Italy, the Netherlands, Belgium, and Luxembourg signed the Rome Treaty creating the European Economic Community (EEC) — the European Common Market.  Sharing the production of coal and steel, and the peaceful use of atomic energy, the free movement of goods within Europe was a cornerstone of post-war efforts to build a lasting peace. In 2012, the Norwegian Nobel Committee awarded the Nobel Peace Prize to the European Union (EU). In justifying its decision, the committee recognized the “stabilizing part played by the EU [which] has helped to transform most of Europe from a continent of war to a continent of peace”.(4)  In the same spirit Ethiopia is now part of a regional free trade agreement — the Agreement establishing the African Continental Free Trade Area, which entered into force on 30 May 2019.  On March 22, 2018, UN Secretary General, António Guterres, made the following statement on the signing of the African Continental Free Trade Area:

  I congratulate African leaders for taking the leap into history by signing the African Continental Free Trade Area (AfCFTA) to create one of the world’s largest trading blocs with over 50 countries. . . . This is an important step towards achieving the Sustainable Development Goals and delivering on the African agenda of peace and prosperity.

Ethiopia signed and ratified the African Continental Free Trade Area during 2019.

The WTO is committed to supporting Africa’s continued economic integration, growth and development, through the participation of African Members in the WTO and through the African Continental Free Trade Agreement (AfCFTA).  In June of last year, the WTO Director General, Roberto Azevêdo, congratulated the group of African Members of the WTO on the recent entry into force of the AfCFTA, which he described as “hugely welcome”.

I am here, on my first visit to Addis, to be with the WTO Accessions Division which has organized a Regional Dialogue on WTO Accessions for Africa, bringing together all acceding governments from the African Continent. This year’s theme for the Regional Dialogue is “Deepening Economic Integration in Africa through WTO membership and AfCFTA Implementation”. The meetings here this week are part of the WTO’s broader efforts to build a stronger bridge between the WTO and Africa.

The rate of change in Ethiopia, and the prospects for further change, are outstandingly positive, moving the country toward greater openness and connecting it more closely with other African nations and the world.  The new government led by Prime Minister Abiy Ahmed has embarked on an ambitious economic reform plan, with the aim of taking full advantage of the country’s development potential and transforming it into an icon of prosperity for the African continent by 2030.  Trade and regional economic integration are given special emphasis in this reform plan.

Among 22 countries acceding to the WTO, including nine from Africa, Ethiopia is the most populous and one of the key emerging markets that remains outside the multilateral trading system. What can Ethiopia expect from the process of WTO accession?  Looking at the results of WTO accessions completed to date — 36 of them, including China, Saudi Arabia, and the Russian Federation — we see that they have benefitted enormously from the process of economic reforms required to join the WTO.  China changed hundreds of laws and thousands of regulations to join, and its economy has burgeoned beyond anyone’s expectations.  During its 19-year accession process, the Russian Federation also used its WTO accession process both as an instrument for trade liberalization and economic transformation. Here is what Russia’s Chief Negotiator said at the last, the 31st WP meeting on Russia’s accession in November 2011:

Over the past 18 years, the Russian Federation had become the sixth largest economy in the world; a major player in global markets; and, had formed a Customs Union with Kazakhstan and Belarus.  One thing had not changed:  the confidence that the WTO was the only basis for the future development of the Multilateral Trading System and its Members.

WTO accessions have expanded the coverage of world trade taking place under WTO rules to 98%.  Accession roadmaps have served as an external anchor for economic reform and transformation that have resulted in faster economic growth and enhanced trade performance of new Members. Ethiopia aspires to become one of the leading economies in Africa by 2030, through pursuing WTO accession aggressively. The WTO accession process will support regulatory and administrative changes while improving the quality of economic management institutions.

Through its accession to the WTO and its domestic reform agenda, the government of Ethiopia hopes to raise the standard of living of its people and contribute to peace.  And it is intent on finding ways of achieving its objectives in a more sustainable way.

Support for Ethiopia’s accession and the fulfilment of the promise of the AfCFTA must be, and I am sure will be, high priorities for the WTO.  The result of the efforts of all those involved must be, and I believe will be, to improve the opportunities that you will have going forward as you choose your professions and enter the workforce.

Thank you.

Notes

  1. 1932/3 figure.  A survey of the Great Depression as recorded in the International Labour Review, 1931-1939, Rod Mamudi, ILO, 2009, https://www.ilo.org/wcmsp5/groups/public/—ed_emp/—emp_elm/—analysis/documents/publication/wcms_115475.pdfback to text
  2. https://en.wikipedia.org/wiki/List_of_conflicts_in_Africa#Egypt.back to text
  3. Eleven are related to the war on terrorism. Nearly three dozen conflicts do not have direct military involvement from outside the continent.  Of these, nearly one-third started in this century and are still ongoing at present.  There are also longer lasting conflicts, started in the last century. These are nine in number, one of which is an insurgency that has continued for 60 years.  The countries of the Horn of Africa account for eight of the conflicts occurring in the 21st century.  The countries of the Horn of Africa account for eight of the conflicts occurring in the 21st century. back to text
  4. Norwegian Nobel Committee, 2012.  back to text

Source: wto.org

 

78/ Prompt submission of notifications urged for full implementation of Trade Facilitation Agreement

11 FEBRUARY 2020

WTO members highlighted the need for continued transparency in trade procedures at the 11 February meeting of the Committee on Trade Facilitation. The prompt submission of notifications related to the implementation of the Trade Facilitation Agreement (TFA) is vital for reaping the benefits of the Agreement, several members said.

Members considered 43 notifications received since the last Committee meeting in October 2019. Canada, China, the European Union, Japan, the Russian Federation and the United States took the floor at the meeting to remind members to submit information to the WTO about implementation timelines, trade procedures, contact points, and other details required under the Agreement. The US also drew attention to the upcoming deadline of 22 February for least-developed countries (LDCs) to notify definitive dates when they would implement certain TFA provisions for which they required transition periods.

Under the TFA, which seeks to expedite the movement, release and clearance of goods across borders, developing countries and LDCs can self-designate which provisions they will implement either immediately (Category A), after a transition period (Category B), or upon receiving assistance and support for capacity building (Category C). They are required to communicate these choices within stipulated timeframes. Developed countries were required to implement all provisions of the TFA from its entry into force on 22 February 2017.

Out of 29 LDCs that are required to submit the Category B notification mentioned above by 22 February, nine have been received so far according to the Secretariat report presented at the meeting. The deadline for developing countries to make the same notification had been two years ago. The Secretariat report also noted that nine developing country members have designated all TFA measures as Category A, meaning they had committed to implement the Agreement in full immediately when it entered into force. These are Chile; Hong Kong, China;  Israel; Korea; Mexico; Saudi Arabia; Singapore; Chinese Taipei, and Turkey.

Full implementation of the Agreement, which seeks to expedite the movement, release and clearance of goods across borders, is forecast to slash members’ trade costs by an average of 14.3 per cent, with developing and least-developed countries having the most to gain, according to a 2015 study carried out by WTO economists. The TFA is also likely to reduce the time needed to import goods by over a day and a half and to export goods by almost two days, representing a reduction of 47 per cent and 91 per cent respectively over the current average.

The Secretariat also reported that 91 per cent of the membership, or 149 WTO members, have ratified the TFA roughly three years since it entered into force on 22 February 2017 when the WTO crossed the required threshold of 110 member ratifications. Guinea, Burundi and Cabo Verde were the latest to ratify the TFA since the last Committee meeting.

As of 11 February, the current rate of implemented commitments under the TFA stood at 64.7 per cent. Broken down by level of development, this equates to a 100 per cent rate of implementation by developed members, 63.9 per cent among developing members and 29.6 per cent among LDCs. Six developing country members have reached 100 per cent rate of implementation commitments as their B and/or C measures are now due to be applied according to their notifications. These are Brazil; China; Georgia; Macao, China; North Macedonia,  and Oman.  The implementation rate for each WTO member can be viewed here.

The Committee also heard presentations from Chile, Ecuador, India, Morocco, Sri Lanka, Ukraine, the United States about experiences in implementing TFA provisions. The US introduced a suggestion, welcomed by many members, for the Committee to explore next step to capitalize on the experience sharing particularly on the establishment of National Trade Facilitation Committees. Representatives of the WTO TFA FacilityUN Conference on Trade and Development, and the Global Alliance for Trade Facilitation updated members on their respective projects in support of TFA implementation.

Kyrgyz Republic transit concern

At the same meeting, the Kyrgyz Republic raised questions about Kazakhstan’s customs inspections on goods in transit from the Kyrgyz Republic through Kazakhstan. Kyrgyz Republic Deputy Minister of Economy Eldar Alisherov said that since March 2019, inspections by Kazakh authorities have delayed the movement of goods in transit from the Kyrgyz Republic. In response, Kazakhstan said its measures are compliant with WTO rules and are necessary to ensure correct customs declarations. Kazakhstan further noted that, as both countries are members of the Eurasian Economic Union, they should use mechanisms there to resolve the issue.

China’s intervention on the coronavirus

China took the floor to call on WTO members to avoid imposing unnecessary trade restrictions amid the ongoing coronavirus epidemic. China said that an overreaction to the health issue would impact not only the Chinese economy but the world economy as well. China also expressed appreciation for members’ support and hoped that all would work together to tackle this global challenge.

Next meeting

The next Committee meeting will be on 19-20 May.

Source: wto.org

 

79/ WTO members advance new Aid for Trade work programme, host workshop on rural economy

11 FEBRUARY 2020

WTO members moved closer to finalizing the new Aid for Trade (AfT) work programme for 2020-2021 at a meeting of the Committee on Trade and Development dedicated to AfT on 11 February 2020. Delegations also discussed at a workshop how Aid for Trade can help support rural economic transformation.

Members welcomed the draft Aid for Trade work programme for 2020-2021, entitled “Empowering Connected, Sustainable Trade”, tabled by the chair, Ambassador Chad Blackman of Barbados. He invited delegations to help finalize the biennial work plan, with the objective of agreeing to it ahead of the General Council’s next meeting on 3 March.

Aid for Trade is a multi-stakeholder initiative seeking to mobilize resources to address the trade-related and supply-side constraints identified by developing countries and least-developed countries (LDCs). More information can be found here.

Several WTO members reported on their AfT activities. The Russian Federation briefed delegations on the Russia-Africa Summit, which took place in October 2019 in Sochi, Russia, at which USD 20 billion worth of business contracts were signed. China reported on the first China-Africa Economic and Trade Expo held on 18-20 June 2019 in Changsha, China, highlighting its commitment to expand investment in Africa and reiterating its support for LDCs.

The United Kingdom reiterated its support for the AfT initiative and the funding it provides to various AfT mechanisms. This was the UK’s first intervention in the Committee since communicating to WTO members its withdrawal from the EU. The UK also highlighted outcomes of the UK Africa Investment Summit and its hosting of the UN Climate Change Conference (UNFCCC COP 26) scheduled to take place from 9 to 19 November.

Lao PDR and Peru provided overviews of how AfT has helped support trade opening  recorded in their recent Trade Policy Reviews. Jamaica highlighted the Micro Investment Development Agency, through which JMD 620 million (USD 4.4 million) was raised to promote job creation in the micro enterprise sector.

Updates by the Enhanced Integrated Framework, the Standards and Trade Development Facility and the International Trade Centre on Aid for Trade activities were warmly welcomed by members.

An Aid for Trade workshop held on the margins of the committee meeting explored the role Aid for Trade can play in transforming and promoting the rural economy, which involves over half of the world’s population. The discussion focused on rural development and transformation, a theme that emerged as a priority for developing countries and financing partners in the 2019 WTO-led Aid for Trade Monitoring and Evaluation Exercise.

Key points emerging from the workshop included the central role of agriculture in the rural economy and the need for governments to focus policy on productivity growth and enhancing the direct impact of agriculture and rural development on poverty reduction. The workshop also underlined the essential role of public policies, notably in helping farmers connect to global and regional value chains, and the importance of services that women entrepreneurs and farmers provide to the rural economy.

Farmers’ integration into value chains is hampered by demanding quality and safety standards, said Iris Krebber, Head of the Agriculture and Land Team at the UK’s Department for International Development.

Recalling Asia’s experience of rural development since the 1970s, Takashi Yamano, Senior Economist at the Asian Development Bank, highlighted the importance of public policy and productivity growth in agriculture. His call for public policies that promote well-functioning markets was echoed by Madhur Gautam, Lead Economist at the World Bank. Mr Gautam said there is scope for promoting productivity growth in agriculture if public policy is appropriately tailored to promoting the adoption of new technologies and if market failures are addressed — a task made more pressing by the need to adapt to climate change.

Magor Mbaye from the WTO’s Permanent Mission of Senegal explained how Senegal is seeking to unlock value in its agricultural and rural economy through the government’s Plan for Emerging Senegal.

The critical role that women play in the rural economy was underlined by the United Nations Conference on Trade and Development. It stressed, in particular, the role of cotton-by-products in promoting rural development and agri-processing in eastern and southern Africa.

Women’s economic empowerment is central to the Enhanced Integrated Framework’s programme, said the agency’s Deputy Executive Director, Annette Ssemuwemba, who shared several successes of the programme in rural development. said that

The scope of tourism in boosting non-farm rural incomes was also highlighted, together with ongoing work at the WTO to reform agricultural trade policy.

Source: wto.org

 

80/ UN official praises Vietnam’s role, cooperation

12 February 2020

Director-General of the UN Office Tatiana Valovaya spoke highly of Vietnam’s role and cooperation with the UN in various areas during a meeting with a Vietnamese ambassador in Geneva, Switzerland on February 10.

The meeting took place right after Ambassador Le Thi Tuyet Mai, new Permanent Representative of Vietnam to the UN, the World Trade Organisation (WTO) and other international organisations in Geneva, presented her credentials to UN Secretary-General António Guterres.

Valovaya hoped that in Mai’s term of office, Vietnam will continue making contributions to the UN and fostering ties between the UN and ASEAN for peace, security, sustainable development and prosperity for all nations.

The Vietnamese diplomat said she is honoured to take over the new role at the time when Vietnam holds a non-permanent seat at the UN Security Council for the 2020-2021 term and ASEAN Chair in 2020.

Promoting the ties with the UN is always a top priority in Vietnam’s foreign policy and the country is doing its best to be an active and responsible UN member who effectively contributes to the UN and other international organisations as well as beef up relations between the UN and ASEAN, she said.

She also looked forward to receiving continued support and cooperation of the UN Office to fulfil her mission.

Source: NDO/VNA

 

81/ Tobacco imports under tariff quota in CPTPP adjusted

12 February 2020

The Ministry of Industry and Trade issued Circular No. 03/2020/TT-BCT stipulating tobacco imports under the tariff quota described in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The circular adjusts imports of tobacco HS code 24.01 under the tariff quota described in the CPTPP.

Specifically, imports of tobacco HS 24.01 are adjusted in the 2020-2038 period as follow: in 2020 (525 tonnes); in 2021 (550 tonnes); in 2020 (525 tonnes); in 2020 (525 tonnes); in 2020 (525 tonnes); 2022 (575 tonnes); 2023 (600 tonnes); 2024 (625 tonnes); 2025 (650 tonnes); 2026 (675 tonnes); 2027 (700 tonnes); 2028 (725 tonnes); 2029 (750 tonnes); 2030 (775 tonnes); 2031 (800 tonnes); 2032 (825 tonnes); 2033 (850 tonnes); 2034 (875 tonnes); 2035 (900 tonnes); 2036 (925 tonnes); 2037 (950 tonnes); and 2038 (975 tonnes).

Subjects of the circular are importers of tobacco under the tariff quota committed in the CPTPP; organisations and individuals engaging in imports of tobacco under the tariff quota committed in the CPTPP.

Tax and tariff quotas are under the Government’s regulations.

The circular takes effect from February 9, 2020.

Source: VCN

 

82/ TRANSPORTING DANGEROUS GOODS GETS QUALITY TOUCH WITH UPDATED INTERNATIONAL STANDARD

12 February 2020

Transporting dangerous goods demands adequate quality and safety programmes in place to meet local and international laws. The International Standard that outlines the requirements for such programmes for packaging has just been updated.

ISO 16106Transport packages for dangerous goods – Dangerous goods packagings, intermediate bulk containers (IBCs) and large packagings – Guidelines for the application of ISO 9001, outlines the requirements for an effective quality management system for the manufacture and measurement of dangerous goods packaging.

Developed to be used with ISO 9001, ISO’s best-known standard for quality management, it is designed to meet the requirements of the United Nations (UN) Recommendations on the Transport of Dangerous Goods – known as the UN Model Regulations – which cover the legal requirements for such activities. The standard was recently revised to align with the most recent versions of both ISO 9001 and ISO 16495, Packaging – Transport packaging for dangerous goods – Test methods. Further information about large packaging was also added.

Stephen Wilkins, Chair of the ISO technical committee that developed the standard, said implementing a quality management system based on ISO 16106 ensures peace of mind not only that regulations are met consistently, but that customer expectations are satisfied as well.

“The transport industry is complex and changes rapidly and often,” he said, “and anticipating future needs for legislation as well as customer expectations is challenging for those involved in the design or manufacture of dangerous goods packaging.

“The quality management system approach taken in ISO 16106 and ISO 9001, used together, ensures harmony with international requirements, the reduction of risks and continual improvement at every step.”

ISO 16106 covers everything from how to establish a quality policy, the actions involved in achieving it, documenting it and communicating about it, to the importance of leadership involvement, monitoring and more.

This standard was developed by ISO technical committee ISO/TC 122, Packagingsubcommittee SC 3Performance requirements and tests for means of packaging, packages and unit loads (as required by ISO/TC 122), the secretariat of which is held by BSI, ISO’s member for the UK. It can be purchased from your national ISO member or through the ISO Store.

Source: iso.org

 

83/ WTO members prepare to firm up legal text for fisheries subsidies agreement

13 FEBRUARY 2020

At the 13 February informal meeting of the Negotiating Group on Rules, heads of WTO delegations took stock of the state of play of fisheries subsidies negotiations and discussed how best to develop a consolidated legal text for an agreement to curb harmful fisheries subsidies, with the aim of concluding talks by the 12th Ministerial Conference (MC12).

The Negotiating Group chair, Ambassador Santiago Wills (Colombia), said it was vital for the Negotiating Group as soon as possible to develop a consolidated text, for ministers to consider at MC12 in Nur-Sultan in June, and that he would consult with members on the best way to produce this. He sought members’ continued support and flexibility for a successful conclusion of the negotiations.

The chair also reported on developments since his last meeting with the heads of delegations in November, including on the clusters of meetings of the Negotiating Group during the weeks of 13 January and 3 February 2020. At the most recent meeting, members had the opportunity to respond to specific questions posed by facilitators to help refine approaches on subsidy prohibitions related to illegal, unregulated and unreported (IUU) fishing, fishing of overfished stocks, overfishing and overcapacity, as well as special and differential treatment for developing and least-developed countries and other cross-cutting issues. Members also heard presentations of three new proposals from the African, Caribbean and Pacific (ACP) Group of States, and of a revised proposal from the European Union, Japan, Korea and Chinese Taipei.

The next meeting of the Negotiating Group will be in the week starting 2 March, although informal consultations and smaller group meetings will continue to be held before then.

Based on the mandate fixed under the Ministerial Decision from the WTO’s 11th Ministerial Conference, and the UN Sustainable Development Goal Target 14.6, negotiators are expected to secure an agreement in 2020 for disciplines eliminating subsidies to IUU fishing and for prohibiting certain forms of fisheries subsidies that contribute to overcapacity and overfishing, with special and differential treatment for developing and least-developed countries.

Source: wto.org

 

84/ TEARING DOWN THE CARBON FOOTPRINT OF BUILDINGS WITH NEW INTERNATIONAL STANDARD

13 February 2020

Contributing nearly 40 % of global CO2 emissions from energy, the building sector has enormous potential to clean up our world. A new International Standard helps the industry do just that by optimizing how buildings are used as well as effectively reusing and recycling their components when their time is finally up.

ISO 20887Sustainability in buildings and civil engineering works – Design for disassembly and adaptability – Principles, requirements and guidance, helps owners, architects, engineers and any other party involved in the life cycle of a building to improve its sustainability, saving time and resources along the way.

It assists users in two ways: by extending the building’s life through effective adaptability that makes it suitable for another use; and by optimizing its resources at the end of life through effective disassembly, reuse, recycling and disposal of its various materials.

The result is reduced carbon emissions through optimal use of the building, lower costs through longer lifespan and better use of resources, and less waste going into landfill.

Philippe Osset, Chair of the ISO subcommittee that developed the standard, said users get the most benefit from disassembly and adaptability guidance if they consider its integration into the very early stages of the building works project.

“This will help them obtain the full potential value of a building throughout its life cycle, from repairs and refurbishments to the reuse, recycling and appropriate disposal of its components when it is no longer able to be used,” he said.

“What’s more, this approach is exactly what supports the circular economy, thus contributing to a more sustainable world.”

In that sense, the new standard also contributes directly to the United Nations’ Sustainable Development Goal 11 on sustainable cities and communities.

ISO 20887 was developed by ISO technical committee ISO/TC 59, Buildings and civil engineering workssubcommittee SC 17Sustainability in buildings and civil engineering works, the secretariat of which is held by AFNOR, ISO’s member for France. It can be purchased by your national ISO member or through the ISO Store.

Source: iso.org

 

85/ European Parliament ratifies EVFTA, EVIPA

13 February 2020

The European Parliament (EP) on Wednesday ratified the EU-Việt Nam Free Trade Agreement (EVFTA) and the EU-Việt Nam Investment Protection Agreement (EVIPA).

The EVIPA was passed with 407 votes for, 188 against and 53 abstentions; and the EVFTA, with 401, 192 and 40, respectively.

At a press conference on this event held by the Ministry of Industry and Trade in Hà Nội the same day, Minister of Industry and Trade Trần Tuấn Anh said: “This is a meaningful result for Việt Nam and the EU, two comprehensive strategic partners.”

The ratification of these two agreements has created a sustainable foundation for the two sides to improve quality in comprehensive cooperation, he said.

It has also shown the EU values Việt Nam as a comprehensive and trustworthy partner in Southeast Asia and the world over, the minister said.

He described the European Union – Việt Nam Free Trade Agreement (EVFTA) as a lever for growth, opening up opportunities to infiltrate into a market with a gross domestic product of US$18 trillion.

Nearly 100 per cent of Việt Nam’s goods to the EU will see their import tariffs eliminated in the short term. This is the highest level of commitment that a partner has given to Việt Nam in signed free trade agreements, he said.

Meanwhile, the two agreements are expected to be ratified in the upcoming session of the Việt Nam’s Nation Assembly in April-May. They are likely to come into effect from July this year in Việt Nam, he said.

The EVFTA is expected to create a major push for Việt Nam’s exports, helping diversify the country’s exports and markets.

Under the agreement, Việt Nam will cut 65 per cent of import tax on EU commodities after the deal takes effect, while the rest will be erased over a 10-year period. Meanwhile, the EU will cut more than 70 per cent of tariffs on Việt Nam’s commodities after the deal takes effect, while the rest will be abolished over the seven subsequent years.

The two documents were signed in Hà Nội on June 30 last year after eight years of negotiation. They include intensive, extensive and comprehensive commitments covering the fields of economy, trade, investment and sustainable development issues.

According to research by the Ministry of Planning and Investment, the two deals will help Việt Nam increase its GDP by 4.6 per cent and its exports to the EU by 42.7 per cent by 2025. Meanwhile, the European Commission has projected the EU’s GDP to increase by $29.5 billion and its exports to Việt Nam by 29 per cent by 2035.

The investment commitments will replace bilateral investment agreements between Việt Nam and EU members, helping the country continue to reform its economic structure, perfect business environment and institutions, and facilitate EU investors’ business in Việt Nam.

ILO welcomes EP’s EVFTA ratification

The International Labour Organisation (ILO) office in Việt Nam on February 12 said it welcomes the European Parliament’s ratification of the European Union – Vietnam Free Trade Agreement (EVFTA) in Paris earlier the same day, which is expected to bring economic benefits to both sides.

ILO Vietnam Country Director Chang-Hee Lee said the deal’s requirements on labour and environment will help bring about benefits for all sides, help Việt Nam achieve sustainable development and ensure that the current growth is achieved at the expense of future generation’s opportunities.

According to him, Việt Nam’s entry to the EVFTA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will make it easier for the country to modernise labour laws and industrial relations systems. The adoption of the revised Labour Code in November 2019 brought its legal framework closer to ILO fundamental conventions.

“Modern industrial relations based on recognition of freedom of association, together with better skilled workforce and effective social protection, is a key social driver for Việt Nam to move towards upper middle income country in a sustainable manner,” he said.

Source: VNS

 

86/ Vietnamese firms to join Gulfood Expo in Dubai

13 February 2020

Up to 20 Vietnamese firms will participate in the Gulfood Exhibition 2020 – the world’s largest annual food and beverage trade show, slated to be held at the World Trade Centre in Dubai from February 16-20.

The Vietnamese pavilion at the expo will showcase foodstuff, farm produce, seafood and forestry products, processed fruits and vegetables, beverage and spices, according to the agricultural promotion centre under the Ministry of Agriculture and Rural Development.

The centre described the event as a good opportunity for Vietnamese firms to seek new customers and expand their market shares in the Middle East, Africa and Southwest Asia.

This is the 25th year the trade show will be held, with more than 5,000 exhibitors from 200 countries worldwide. It is expected to attract more than 100,000 visitors.

At the previous edition, Vietnamese enterprises signed contracts worth approximately US$20 million, including some $7 million worth of seafood products and $4 million worth of spices, the online newspaper nhandan.vn cited the centre’s director Đào Văn Hồ as saying.

The Vietnam country pavilion covered 130sq.m with 20 leading Vietnamese food and beverage enterprises, including Vinamilk, Hapro and Đồng Giao.

Source: VNS

 

87/ CPTPP offers opportunities for Canadian enterprises in Việt Nam

13 February 2020

Việt Nam presents significant business opportunities to Canadian enterprises within the framework of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Robert Cameron, Regional Manager, Asia, Export Development Canada (EDC), made the statement at a workshop on the CPTPP and opportunities in Việt Nam held in Toronto on Monday. He said that with favourable demographic conditions and a rising middle class, Việt Nam offered significant opportunities to Canadian businesses.

He urged Canadian companies to prepare resources when investing in Việt Nam to develop long-term business partnerships in the country.

He said that agencies like EDC and Canada’s Trade Commissioner Service were willing to provide support to Canadian firms to penetrate and expand business in Việt Nam.

Within the framework of the CPTPP, opportunities for Canadian firms in Việt Nam varied across a number of sectors, from aviation, information-telecommunications to agriculture and mining.

Significant opportunities also came from financial services as Việt Nam imported financial services worth US$523 million in 2018.

In addition, Việt Nam had high demand for investment in transport infrastructure, which is a strength for Canada. It was estimated that Việt Nam needs $11 billion worth of investment for transport infrastructure by 2020 and $17 billion by 2025.

Education continued to be the highlight in the cooperation between the two countries. Việt Nam topped Southeast Asia and was fifth in the world in terms of the number of students studying in Canada – estimated at more than 20,000.

Opportunities also arose from sectors like renewable energy and waste treatment as Việt Nam is striving to cope with the impact of climate change.

According to Julie Nguyễn, Director of the Canada-Việt Nam Trade Council, the workshop attracted huge attention from Canadian businesses as they saw large opportunities in Việt Nam, which has a rapidly growing but stable economy.

She said that the council was developing plans to connect businesses from both sides.

The CPTPP so far took effect in seven countries, including Canada, Australia, Japan, Mexico, New Zealand, Singapore and Việt Nam. The CPTPP market with 11 member countries and 505 million consumers accounted for 13 per cent of the world’s gross domestic product.

Việt Nam was the biggest trade partner of Canada in Southeast Asia, with two-way trade estimated at $5.98 billion in 2019.

Before the CPTPP, there were no other trade deals between Việt Nam and Canada.

A year after the CPTPP took effect, Việt Nam’s exports to Canada rose by 28.2 per cent in 2019, compared to the average 18 per cent in the 2010-18 period.

According to Nguyễn Thị Thu Trang, Director of the WTO and Integration Centre under the Việt Nam Chamber of Commerce and Industry, the trade deal opened large opportunities for its members and businesses must be active to take advantage of them.

Source: VNS

 

88/ Regional Dialogue highlights synergies between African WTO membership and AfCFTA

14 FEBRUARY 2020

The 3rd Regional Dialogue on WTO Accessions for Africa was held on 12-14 February in Addis Ababa, Ethiopia, with the focus on the theme of “Deepening Economic Integration in Africa through WTO Membership and African Continental Free Trade Area (AfCFTA) Implementation”. Hosted by the government of Ethiopia, the three-day event was organized by the WTO Secretariat, in partnership with the African Union Commission (AUC), the International Trade Centre (ITC), the United Nations Economic Commission for Africa (UNECA) and the World Bank.

The event provided a timely context for African acceding governments to explore the synergies between WTO membership and the AfCFTA in order to advance domestic reforms and economic development. Over 70 representatives from African WTO accession candidates and WTO members as well as representatives of international organizations, government officials, academia, experts from partner institutions and the private sector attended the event.

The implementation of the AfCFTA is set to start on 1 July 2020, following the agreement’s entry into force on 30 May 2019. All 44 African WTO members and nine WTO observers are signatories to the AfCFTA, with 29 having ratified the agreement to date.

The event was opened with a high-level session dedicated to the memory of the late Nigerian Ambassador and former WTO Director Chiedu Osakwe. The session was chaired by WTO Deputy Director-General Alan Wolff and was attended by Ethiopia’s Minister of Trade and Industry Melaku Alebel, African Union (AU) Commissioner for Trade and Industry Alber M. Muchanga, UNECA Director for Regional Integration and Trade Stephen Karingi, former Minister of Commerce and Industry of Liberia Axel Addy and former WTO Senior Economist Patrick Low.

“Today’s event is the result of a true partnership and collaboration with several institutions,” said DDG Wolff. “This year, the WTO celebrates its 25th anniversary. As members are seriously embarking on WTO reform debate to improve the functioning of the system, what I see is that most often, acceeding governments can appreciate far better the value which the system can offer them and do for them.”

The event followed the 4th meeting of the Working Party on the Accession of Ethiopia on 30 January which restarted its WTO accession negotiations. Minister Alebel stressed that Ethiopia’s initiative to join the WTO is a key element in the pursuit of national development policy objectives. His speech is available here.

AU Commissioner Alber M. Muchanga underlined Africa’s two-way contribution to the multilateral system — through the accession of African countries to the WTO and the formation of the AfCFTA, particularly at a time when protectionism and retaliatory trade measures are on the rise. The AfCFTA offers opportunities for acceding African countries to trade across Africa and helps them to prepare for WTO accession. His speech is available here.

UNECA Director Stephen Karingi reaffirmed Africa’s confidence in a rules-based system as a tool for inclusive and people-centred development, and noted that, in spite of the challenges facing the multilateral trading system, almost half of the 22 countries currently negotiating WTO accession are from Africa. “Testing as these negotiations may be, it is notable that these countries are drawing on the successful accession experiences of three fellow African countries that joined the WTO since its establishment — Cabo Verde, Seychelles and Liberia.” His speech is available here.

Ambassador Amina Mohamed, Cabinet Secretary for Sports Culture and Heritage of Kenya, sent a statement where she underlined that the AfCFTA represents a bold and visionary step towards defining Africa’s place in the world trading community. With deeper African integration comes the scope for speaking with a stronger, more unified African voice, and an opportunity to shape the WTO system to be more responsive to Africa’s needs and to participate more fully in defining the WTO’s agenda and vision, she said.

Minister Axel Addy highlighted the benefits of Liberia’s WTO accession in 2016 and noted the role of the AfCFTA in boosting regional trade. While some institutional and human capacity constraints remain, these could be overcome with strong internal coordination and targeted assistance and support through regional integration initiatives such as the AfCFTA, he added.

Mr Low addressed some of the main aspects of the ongoing WTO reform debate, such as the WTO’s negotiating function, the discussion on special and differential treatment and the procedural issues of transparency and notifications.

The Regional Dialogue on WTO Accessions was originally dedicated to the Horn of Africa, which has the highest number of acceding countries in Africa, to share experience on WTO accessions. The previous two meetings were held in Kenya (2016) and Djibouti (2018). This is the first time the Regional Dialogue has extended participation to all African acceding countries.

Source: wto.org

 

89/ WTO issues call for papers for 2020 Essay Award for Young Economists

17 FEBRUARY 2020

The WTO has issued a call for young economists to submit papers for the 2020 WTO Essay Award. The award aims to promote high-quality research on trade policy and international trade co-operation and to reinforce the relationship between the WTO and the academic community. Essays must be submitted by 8 June 2020.

Prize

The annual WTO Essay Award provides a prize of CHF 5,000 to the author(s) of the winning essay. In the case of a co-authored paper, the prize will be equally divided among the authors. The winning paper will be officially announced at the annual meeting of the European Trade Study Group, which is the largest conference specializing in international trade. The award ceremony will take place on 10-12 September 2020 in Ghent, Belgium. The winning author will receive funding to attend the meeting.

Selection

An Academic Selection Panel is responsible for the selection of the winning paper. The panel comprises:

Dr Robert Koopman (Director, Economic Research and Statistics Division, WTO Secretariat) is ex officio member of the panel. Dr Roberta Piermartini (Chief, Trade Cost Analysis Section, WTO) coordinates the work of the selection panel.

Eligibility

The paper must address issues related to trade policy and international trade co-operation. The author(s) of the paper must possess or be engaged in the completion of a PhD degree and, if over 30 years of age, be no more than two years past a PhD defense. In the case of co-authored papers, this requirement shall apply to all authors. In addition, to be considered for the award, essays cannot exceed 15,000 words.

More on the WTO Essay Award can be found here.

Past winners

  • 2019: Jan Bakker (Oxford University) and Federico Huneeus (Princeton University)
  • 2018: Alonso de Gortari (Harvard University)
  • 2017: Meredith Startz (Princeton University)
  • 2016: Matthieu Bellon (Columbia University)
  • 2015: Christoph Boehm (University of Michigan), Aaron Flaaen (Federal Reserve Board of Governors in Washington D.C.) and Nitya Pandalai-Nayar (University of Michigan)
  • 2014: Jonathan Dingel (Columbia University) and Claudia Steinwender (LSE)
  • 2013: Felix Tintelnot (Princeton University)
  • 2012: Treb Allen (Yale University)
  • 2011: Rafael Dix-Carneiro (University of Maryland) and Kyle Handley (Stanford University)
  • 2010: Dave Donaldson (MIT) and Olena Ivus (Queen’s University)
  • 2009: Ralph Ossa (University of Chicago).

Deadlines

Essays must be submitted by 8 June 2020. The Economic Research and Statistics Division of the WTO Secretariat will shortlist eligible papers by 24 June 2020 and the selection panel will take a final decision by 24 July 2020. Only the author(s) of short-listed essays will be notified.

Publication

The winning essay will be published in the WTO Working Paper Series. It is the responsibility of the author(s) to endeavour to secure publication of the contribution in a journal.

Submissions

All submissions should be sent to essay.award@wto.org. Submissions should include as separate attachments in PDF format:

1. the essay
2. the CV of the author(s), specifying (i) current affiliation(s), (ii) the academic institution awarding the PhD, (iii) the year (or the expected year) of the PhD, (iv) the date of birth of the author(s).

Source: wto.org

 

90/ EVFTA brings chances and challenges to local agricultural production

17 February 2020

The new trade agreement between Việt Nam and the European Union opens many doors for agriculture, according to experts.

Nguyễn Đỗ Anh Tuấn, director of the Department of International Cooperation, Ministry of Agriculture and Rural Development said the newly-ratified EU-Vietnam Free Trade Agreement (EVFTA) offers plenty of opportunities.

He said as the EU imports about US$150 billion agricultural products each year so the EVFTA would open up a potential market for the local export agricultural products.

Tuấn told a discussion hosted by the Government Electronic Portal on the EVFTA in Hà Nội yesterday that: “There is room for Vietnamese agricultural products.”

Agreeing with Tuấn, chairman of Vietnam Chamber of Commerce and Industry (VCCI) Vũ Tiến Lộc said: “The EU is a large market with the world’s leading purchasing powers and the EVFTA Agreement marks a new phase for Việt Nam with favourable conditions for the local enterprises, including the agriculture firms, to increase exports.”

However, Lương Hoàng Thái, director general of the Multilateral Trade Policy Department, under the Ministry of Trade and Industry raised a number of challenges for the industry as the strict conditions from the EU market such as the regulation of origin, quality and labour relating to the agriculture production.

Thái added: “Local livestock industry would face increasing competitive pressure from imported products from the EU.”

He thought the small scale of the husbandry would make farmers and local livestock cooperatives fall behind imported products from EU.

As frozen pork meat would be duty-free after seven years, dairy products after five years, and processed food after seven years, and chicken after 10 years, Thái said: “Việt Nam should take time to improve the local livestock.”

Currently the EU’s livestock products exported to Vietnam are subject to tariffs of 10-40 per cent. The reduction of import tariff on livestock products from the EU will improve their penetration of the Vietnamese market and pose significant competition to domestic products.

Thái added the country should apply further modern technology to ensure clean production as well as avoid child labour in the production to improve agriculture production to better grasp the chance from the EVFTA.

Gov’t to issue lists of preferential tariffs under EVFTA

The Ministry of Finance said on February 13 that it will build and submit the draft decree to the Government.

When the agreement takes effect, Vietnam will immediately remove 48.5 per cent of import tariff lines, equivalent to 64.5 per cent of its imports from the EU. The respective rates will reach about 99 per cent and 99.8 per cent after 10 years.

Regarding the remaining tariffs, the elimination roadmap will last for more than 10 years, or Vietnam will give preferential treatment to the EU on the basis of the World Trade Organisation (WTO)’s tariff quota.

Meanwhile, the country pledged to erase tariffs on exports to the EU according to a 15-year roadmap, except for some products such as crude oil and coal.

On February 12, the European Parliament ratified the EVFTA with 401 votes in favour, 192 against and 40 abstentions. The EU-Vietnam Investment Protection Agreement was also passed the same day.

Both agreements were officially signed in Hà Nội on June 30, 2019.

The European Parliament will later issue an announcement on the completion of the EVFTA ratification process and transfer the ratification dossier back to the European Council to complete final procedures.

Vietnamese agencies are also working on procedures to submit the EVFTA to the National Assembly at the session in May. If the parliament adopts the deal in May and the two sides inform each other about procedure completion in June, the EVFTA will become effective on July 1 this year.

Source: VNS

91/ Industrial sector’s growth likely to hit almost 3% in Q1

17 February 2020

Việt Nam’s industrial sector in the first quarter is projected to grow 2.68 per cent compared to the same period last year if the novel coronavirus (COVID-19) outbreak is brought under control, according to the General Statistics Office (GSO).

Of which, the manufacturing and processing industry, that accounts for the lion’s share of the industrial sector, will be the hardest hit. This industry is likely to expand just 2.38 per cent instead of 10.47 per cent if the virus is handled.

Industries using materials imported from China are also badly affected as the country is a major supplier of materials and accessories for Việt Nam.

Other industries that will be affected include textile, garment, leather and footwear. In the first three months of this year, the textile industry is expected to grow 1.9 per cent, while the garment sector is forecast to contract 1.5 per cent and the leather and shoe production industry is likely to expand 0.5 per cent. Without the COVID-19 epidemic, the growth of these industries would have reached 10.5 per cent, 7.9 per cent and 8.5 per cent, respectively.

The production of motor vehicles and metals may also slow in the first quarter, rising only 6.9 per cent and 5.2 per cent, respectively. Meanwhile, electronics, computers and optical devices production will possibly see a decline of 2.3 per cent in this period.

Without the epidemic, production would have grown 9.3 per cent for motor vehicles, 9.6 per cent for metal products and 2.4 per cent for the group of electronics, computers and optical devices.

If this epidemic lasts until the end of the second quarter, the industrial sector’s growth is forecast to reach nearly 7 per cent in the first half of this year. In this scenario, the manufacturing and processing industry is estimated to gain growth of 8.51 per cent.

The GSO has proposed the Government take supportive measures for enterprises that suffer significant impacts from the coronavirus epidemic, such as seeking alternative suppliers, reducing export-import tariffs and boosting domestic consumption, said its General Director Nguyễn Bích Lâm.

Those are the enterprises operating in the industries of manufacturing, exporting and importing industrial products, especially textiles, leather, electronics, cars, steel, and food and foodstuff processing enterprises.

To stabilise domestic production, Lâm said the GSO has proposed the Government to continue managing macro-economic policies to control inflation and maintain stability in the macro-economy as well as the monetary market.

At the same time, the Government should follow issues relating to import and export, including key export products, major export markets and material imports for production, to solve problems of import and export enterprises.

The Government is advised to address bottlenecks, including administrative procedures, to accelerate the implementation of major public investment projects nationwide, thus boosting socio-economic development.

Source: VNS

 

92/ The Philippines launches safeguard investigation on motor vehicles

18 FEBRUARY 2020

On 18 February 2020, the Philippines notified the WTO’s Committee on Safeguards that it initiated on 6 February 2020 a “preliminary safeguard investigation” on motor vehicles.

In a document submitted together with the notification (see footnote of the notification) the Philippines indicated, among other things, as follows:

“[I]interested parties are invited to submit their comments and position on this matter […]. Submission may be made to the Bureau of Import Services (BIS), Department of Trade and Industry, 3rd Floor, Tara Building, #389 Senator Gil Avenue, Makati City, within five (5) days from the date of publication of this notice.”

The notification is available in G/SG/N/6/PHL/15.

What is a safeguard investigation?

A safeguard investigation seeks to determine whether increased imports of a product are causing, or is threatening to cause, serious injury to a domestic industry.

During a safeguard investigation, importers, exporters and other interested parties may present evidence and views and respond to the presentations of other parties.

A WTO member may take a safeguard action (i.e. restrict imports of a product temporarily) only if the increased imports of the product are found to be causing, or threatening to cause, serious injury.

Source: wto.org

 

93/ Ukraine launches safeguard investigation on caustic soda

18 FEBRUARY 2020

On 18 February 2020, Ukraine notified the WTO’s Committee on Safeguards that it initiated on 11 February 2020 a safeguard investigation on caustic soda.

In the notification Ukraine indicated, among other things, as follows:

“Notice of the Decision of the Interdepartmental Commission of Foreign Trade of 07 February 2020 No. SP 436/2020/4411-03 is published in ‘Uryadovuy Courier’ as of 11 February 2020, No 26 (https://cutt.ly/drNeGan).

Within 20 days from the notice publication, the Ministry for Development of Economy, Trade and Agriculture of Ukraine carries out registration of interested parties and considers the requirements for conducting of hearings. In investigation initiation enquiry it is necessary to indicate: name, juridical address, fax and telephone number, e-mail and name of contact person, type of activity (producer, importer, exporter, etc.). The recommended form of request for registration as an interested party of an investigation is provided in the annex to the notice.”

The notification is available in G/SG/N/6/UKR/16.

What is a safeguard investigation?

A safeguard investigation seeks to determine whether increased imports of a product are causing, or is threatening to cause, serious injury to a domestic industry.

During a safeguard investigation, importers, exporters and other interested parties may present evidence and views and respond to the presentations of other parties.

A WTO member may take a safeguard action (i.e. restrict imports of a product temporarily) only if the increased imports of the product are found to be causing, or threatening to cause, serious injury.

Source: wto.org

 

94/ ASEAN Chairman issues statement on response to COVID-19

18 February 2020

Prime Minister Nguyễn Xuân Phúc, as Chairman of ASEAN in 2020, issued a statement on ASEAN’s joint response to the outbreak of the acute respiratory disease caused by the novel coronavirus (COVID-19).

The statement expressed concerns raised by ASEAN leaders about the complicated development of the epidemic, which has seriously impacted people’s lives and the development of ASEAN countries as well as the region and the world as a whole.

Stressing ASEAN solidarity and spirit of a “cohesive and responsive” community, ASEAN leaders affirmed their strong commitment to joining hands to control the spread of the epidemic to ensure public safety.

The statement welcomed the efforts under the framework of ASEAN medical co-operation with its partners (China, Japan and the Republic of Korea), and underlined that ASEAN would enhance co-ordination at both national and regional levels, co-ordinate joint work among relevant sectors for a synchronised and effective approach, and stronger cooperation with the World Health Organisation, partners and international organisations.

The statement also affirmed the solidarity and strong support of ASEAN for the tremendous efforts the Government and people of China had made as well as the international community to respond to the epidemic.

ASEAN countries would maintain an open-door policy and agreed to co-ordinate in quarantine work at border gates of the member countries, the statement said, requiring diplomatic representative agencies of ASEAN countries in a third country to provide consular support for ASEAN citizens when necessary, and co-operate to fight fake information on the COVID-19 epidemic.

ASEAN leaders pledged to give high priority to fighting the epidemic and called for joint efforts with the international community.

As part of ASEAN’s joint response to the COVID-19, Deputy Prime Minister and Foreign Minister Phạm Bình Minh, as Chairman of the ASEAN Co-ordinating Council (ACC), proposed organising an extraordinary meeting of the ACC and co-ordinating with China to hold a special ASEAN-China Foreign Ministers’ Meeting on joint efforts to deal with COVID-19 the during the upcoming 5th Mekong-Lancang Co-operation Foreign Ministers’ Meeting in Vientiane.

Source: VNS

 

95/ Firms look for alternative sources of raw materials as epidemic closes China market

18 February 2020

Vietnamese companies, many of whom are facing a shortage of feedstock and raw materials as a result of the new coronavirus (COVID-19) outbreak in China, have started looking at alternative sources. 

The epidemic has had a significant impact on public health, transportation, tourism, education, and, importantly, trade and commerce, experts said.

It has affected Việt Nam’s trade not only with China but also other markets, and started hurting Vietnamese businesses.

According to the Department of Import and Export under the Ministry of Industry and Trade, the impacts include prolonging delivery times and customs clearance due to the quarantine requirements on both sides.

In addition, trade by road, rail and air with China has slumped.

With Chinese goods not available, Việt Nam has been unable to source imports, which has affected its production and exports to third markets.

Many textile and footwear enterprises are therefore looking at raw material imports from other markets such as South Korea, India, Bangladesh, and Brazil.

Phạm Xuân Hồng, president of HCM City’s Textile Association, said this would only be a temporary solution since China could not be replaced as the main supplier by anyone else due to its much lower costs.

Trương Văn Cẩm, vice chairman and general secretary of the Việt Nam Textile and Apparel Association (Vitas), said the textile industry sources a significant proportion of feedstock from China.

The epidemic has caused Chinese businesses to shut down production, especially in Wuhan, where there are a number of large factories, he said.

Since many textile plants in China are likely to be closed until the end of February or even longer, supply to Việt Nam would be hard hit, he said.

If the epidemic continues for the next one or two months, the global economy, including Việt Nam, would be in trouble, he warned.

But this is also an opportunity for Vietnamese businesses to look for other sources to relinquish their dependence on China, he pointed out.

Other countries like Thailand, India and Indonesia are also looking for other markets to source raw materials from to reduce their dependence on China, he said.

Companies, especially small and medium-sized enterprises, need Government support in the form of preferential loans and access to new technologies to sustain their business, he added.

Vitas has asked members for reports on the impact of the outbreak on their operations and instructed them to follow developments.

It urged businesses to focus on the domestic market and from other markets to sustain themselves and ensure workers are not affected.

Đỗ Thị Thúy Hương of the Việt Nam Electronics Industries Association said most enterprises in her industry are expected to be hit hard in the next one or two months, and face the risk of delaying payments to workers and stopping production.

Trần Thanh Hải, deputy director of the Ministry of Industry and Trade’s import-export department, said the ministry has worked with the Ministry of Health to take measures against the epidemic, but they would not impact trade.

Recently a number of credit institutions offered to earmark funds to meet credit demand from customers affected by the outbreak.

Source: VNS

 

96/ City aims to improve production of major industries

19 February 2020

The chairman of the municipal People’s Committee Nguyễn Thành Phong has asked agencies to improve production of major industries and diversify tourism products, as well as speed up the capital disbursement rate of public investment projects in the city.

Speaking at a conference on Tuesday, Phong said the city government had asked the Department of Industry and Trade to propose measures to improve production of four major industries in the first quarter.

The request came as the four industries, which include mechanical engineering, electronics, chemicals-rubber-plastic, and food processing, saw a production decrease of 2.71 per cent in January over the same period last year.

In addition, the city’s industrial production index (IPI) in January 2020 decreased by 3.9 per cent compared to the same period last year.

Phong also urged agencies to complete a logistics development project that would make the city a major logistics hub by 2025.

The project would build three logistic centres through technical infrastructure, and would aim to increase the number of businesses hiring specialised logistic services, with the goal of reducing costs, Phong said.

To cope with the Covid-19 epidemic, Phong asked the Department of Tourism to provide advice on a planned request to the Prime Minister to reduce taxes on the tourism industry, especially on small business households in the city.

This week the city would hold a conference to remove difficulties for businesses and accelerate the progress of some real estate projects, Phong said, adding the city had received a number of real estate requests about legal procedures from businesses.

In addition, Phong said the city received over US$5 billion of remittances annually, of which 7.2 per cent is for production investment.

“This is a great resource, and the city will develop effective schemes to maximise remittances,” he said.

Lê Thị Huỳnh Mai, director of the city’s Department of Planning and Investment, said the city’s total retail sales of goods and service revenue reached VNĐ113 trillion ($4.86 billion) in January, up 3.6 per cent compared to December and up 11.2 per cent over the same period last year.

HCM City was estimated to earn $3.9 billion worth of exports in the first month of the year, up 10.2 per cent over the same period last year, according to the city’s Department of Planning and Investment.

The city welcomed 840,000 international visitors in January, an increase of 5.9 per cent over the same period last year, bringing in tourism revenue of more than VNĐ13 trillion ($559.72 million).

The city collected nearly VNĐ43 trillion worth of budget revenue in January, equal to 96.07 per cent of the same period last year.

Nearly 2,800 domestic enterprises in the city were established in January with a total registered capital of more than VNĐ33.5 trillion, mostly in real estate, building, wholesale and retail, and processing and manufacturing industries.

Regarding the key task this month, Phong said the city would continue to implement serious measures to strictly control the Covid-19 epidemic by detecting early cases of the virus infection in people coming from affected areas.

In addition, the city would strengthen market management, monitor fluctuations in prices of essential commodities, and strictly handle violations of the law on pricing.

The city would also continue administrative reforms this year to attract investors with a strong capacity.

Source: VNS

97/ INSPIRING SUCCESSFUL INNOVATION WITH NEW INTERNATIONAL STANDARD

19 February 2020

An innovation management system helps organizations capture the best ideas and continually improve to keep up with the competition. The latest standard in the ISO innovation management series has just been published.

ISO 56000Innovation management – Fundamentals and vocabulary, is the fourth of an eight-part series of standards and other guidance documents designed to help organizations use the correct terminology for innovation management and communicate consistently about their processes, achievements and learning paths. It provides the vocabulary, fundamental concepts and principles of innovation management, and is useful for organizations wanting to make their innovation management activities visible and credible.

Alice de Casanove, Chair of the ISO technical committee responsible for the standard, says all organizations, whatever their nature or size, need to continually evolve in order to survive, and the ISO 56000 series will help them to do that in a structured and effective way.

“Innovation is about creating something new that adds value; this can be a product, a service, a business model or an organization. And the value that is added is not necessarily financial, it can also be social or environmental, for example,” she says.

“The ISO 56000 family will help organizations significantly improve their ability to survive in our changing and uncertain world. They allow organizations to permanently reinvent themselves.”

The experts that created ISO 56000 worked closely with the Organisation for Economic Co-operation and Development (OECD) to establish a common understanding of the concept of innovation. The agreed definitions are now used in both ISO standards and in the OECD-EU’s Oslo Manual, which is the international reference guide for collecting and using data on innovation.

The World Bank, the World Intellectual Property Organization (WIPO) and the World Trade Organization (WTO) were also consulted on technical points of terminology at several stages of the standard’s development.

Aside from ISO 56000, the ISO series on innovation management includes the following published documents:

  • ISO 56002Innovation management – Innovation management system – Guidance
  • ISO 56003Innovation management – Tools and methods for innovation partnership – Guidance
  • ISO/TR 56004Innovation management assessment – Guidance

It also has several standards in development, including:

  • ISO 56005, Innovation management – Tools and methods for intellectual property management – Guidance
  • ISO 56006, Innovation management – Strategic intelligence management – Guidance
  • ISO 56007, Innovation management – Idea management
  • ISO 56008, Innovation management – Tools and methods for innovation operation measurements – Guidance

The ISO 56000 family was developed by technical committee ISO/TC 279Innovation management, whose secretariat is held by AFNOR, ISO’s member for France. All published documents in the series can be purchased from your national ISO member or through the ISO Store.

Source: iso.org

 

98/ Ministry of Trade and Industry lays out five mission groups on anti-fraud of origin

20 February 2020

The Ministry of Trade and Industry issued an action programme of implementing Decree No.119/NQ-CP dated 31/12/2019 of the Government about urgent solutions to strengthen State management on anti-fraud of origin and the illegal transhipment of goods.

This action programme sets missions for authorities and units relating to Ministry of Trade and Industry with specific execution times.

The five main groups of missions include continuing to improve the legal system of origin of goods and checking and verifying origin of goods; strengthening capacity of apparatus of supervision, inspection and implementing effectively measures to combat fraud of goods origin, illegal transhipment and evade trade remedies; strengthen the inspection, examination and supervision of compliance with regulations on origin of goods; strengthening communication and education; promote cooperation with relevant authorities.

The action programme is aimed at preventing frauds of goods origin, illegal transhipment in import and export activities and proactively detecting and strictly handling cases.

Besides that, promoting the development of domestic production, protecting the rights and interests of Vietnamese manufacturers, maintaining export growth sustainably and attracting cooperation and foreign investment in high-tech projects with high value and spillover effects, connecting global production and supply chains.

It also aims to improve the efficiency of the international economic integration process, especially implementation of next-generation free trade agreements (FTAs), ensuring serious and effective implementation of commitments in multilateral frameworks and signed FTAs and to protect Vietnam’s rights and interests in international trade .

Source: VCN

 

99/ Vietnam pledges continued close coordination with WTO

20 February 2020

Vietnam vows to work actively and in close coordination with the World Trade Organisation (WTO) in all of its activities, said Vietnamese Ambassador Le Thi Tuyet Mai during her meeting with WTO Director-General Roberto Azevedo in Geneva, Switzerland on February 17.

The meeting took place right after Mai, new Permanent Representative of Vietnam to the UN, the WTO and other international organisations, presented President Nguyen Phu Trong’s credentials to the WTO leader.

Mai affirmed that Vietnam consistently pursues an open foreign policy and acts an active and responsible WTO member who fully supports a multilateral trading system, with the WTO as its core.

She reiterated Vietnam’s commitment to work in close coordination with the WTO Secretariat and member states to achieve worthwhile outcomes in the fisheries subsidies negotiations and WTO reforms at the 12th Ministerial Conference, to be held in June.

Vietnam will complete its second trade policy review this December, the diplomat added.

Azevedo, for his part, lauded Vietnam’s socio-economic development and appreciated its commitments to international integration and active participation in the WTO and global trade at large.

He congratulated Mai on her new mission and voiced his hope that Vietnam will make positive contributions to the WTO reforms at the time when the 164-member grouping faces multiple challenges, necessitating it to change to stay adaptive and remain as a key pillar of the global trade.

Vietnam officially became the WTO’s 150th member in 2007 after a decade of negotiations.

Source: NDO/VNA

 

100/ Exports of textile and garment industry to reach US$42 billion

21 February 2020

SSI Securities Cooperation estimates that the export turnover of the Textile and Garment industry will reach US$41.5 billion to US$42 billion in 2020, increasing from 6.4 to 7.7 percent compared to 2019.

According to SSI, the Vietnam National Textile and Garment Group and its branches set a revenue target of reaching VND50.9 trillion, up VND1.55 trillion of profit before tax, up 11 percent compared to 2019. According to the Vietnam Textile and Garment Association, most companies are still negotiating orders until the second quarter of 2020.

Regarding impacts on export activities of the textile and garment industry in 2020, SSI said that export growth could be accelerated when orders are shifted from China to Vietnam, especially new markets enjoying benefits from the CPTPP, such as Canada and Australia.

However, exports of the Textile and Garment Industry will face risks. The minimum wage level will be raised from 5.1 to 5.7 percent in 2020 with the same level in 2019.

According to VITAS, Vietnam has raised the minimum wage 12 times since 2008. When many FDI factories have shifted and established themselves in Vietnam, the wage competitiveness will be fiercer between domestic companies and FDI companies, wage inflation will be higher, affecting the companies’ gross profit margin. In addition, electricity and transportation costs will also affect competitiveness.

In addition, the Textile and Garment Industry is dependent on imports of machinery, raw materials and accessories. With strict regulations on origin in CPTPP and EVFTA, textile and garment companies that do not have fully integrated value chains in Vietnam will be not affected immediately, because they depend heavily on importing materials from China.

In 2019, Vietnam’s textile and garment export turnover reached US$39 billion, up 7.3% compared to 2018, lower than the national plan of US$40 billion.

Source: VCN

 

101/ VN to maintain dialogue with US to promote bilateral trade: vice spokesperson

21 February 2020

Việt Nam will continue to monitor and assess the impact of the US’ removal of Việt Nam from the list of developing countries under US countervailing duty laws, Vice Spokesperson of the Foreign Ministry Đoàn Khắc Việt said on Thursday.

The vice spokesperson stressed that Việt Nam will maintain dialogue and continue to coordinate measures with the US in order to promote the harmonious and sustainable development of bilateral trade, benefiting both sides.

He made the statement in response to reporters’ questions about Việt Nam’s response to US President Donald Trump administration’s move to revoke World Trade Organisation (WTO) subsidy preferences for a range of countries, including China, Singapore, Thailand, South Africa and Việt Nam.

Noting that Việt Nam is still benefiting from its developing nation status within the framework of the WTO, Việt Nam stressed that economic and trade ties between Việt Nam and the US have developed fruitfully over recent years, with two-way trade reaching nearly US$76 billion in 2019, up 25 per cent year-on-year.

The US has maintained its position as the biggest export market of Việt Nam, while Việt Nam is among the fastest growing export markets of the US, he added.

In a related question concerning the highly anticipated ASEAN-US Summit in the US at the invitation of US President Donald Trump – which is expected to be a chance for the US to reaffirm its commitment and engagement in the dynamic region – Việt said that while there is currently not yet detailed information to provide to the public, ASEAN member states and the US side are “actively preparing for the summit”.

Exchanges maintained

Responding to an earlier request from China’s foreign minister Wang Yi urging countries – including Việt Nam – to allow Chinese citizens to gain entry to Việt Nam, which have been interrupted following the COVID-19 outbreak, the Vietnamese vice spokesperson said there is definitely not an absolute ban on movement and trade between the two sides.

“To stem the spread of COVID-19 outbreak and minimise the impacts on the health of Vietnamese citizens, the two countries’ governments have been closely coordinating with each other in terms of transport, in the spirit of robustly combating the disease but not shutting off the borders and trying not to impact bilateral activities – including trade and people-to-people exchanges,” he said.

The Vietnamese Government also cracked down on goods transport or movement through unofficial border routes, while usual activities and trade are being gradually restored via the border gates, with tightened health quarantine protocols.

Regarding the chance of resuming airline links between China and Việt Nam, Việt said that the ban Việt Nam imposed was in line with World Health Organisation’s recommendation and the two governments’ agreements and the restoration can only be done when there is sufficient evidence showing that the outbreak situation has been contained.

However, Việt Nam believes that under the leadership of China’s Communist Party and Government, with international support, China will soon overcome the challenges and the outbreak will soon be under control, Việt added.

Source: VNS

 

102/ Boosting structural reform and businesses’ competitiveness vital to grab CPTPP opportunities

21 February 2020

Improving structural reforms and businesses’ competitiveness is critical to efficiently implement the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) in Việt Nam, heard a conference held by the Central Institute for Economic Management (CIEM) on Wednesday in Hà Nội.

The CIEM’s Director Trần Thị Hồng Minh said the CPTPP, which took effect in early 2019, was expected to create new impetus for trade and investment development and boost economic reform in Việt Nam.

However, Minh said efficiency in implementing CPTPP and competence in taking advantage of opportunities provided by the trade deal was heavily dependent on institutional capacities, the competitiveness and domestic firms’ ability to adapt.

According to Nguyễn Anh Dương, head of the CIEM’s General Research Department, it was necessary for Việt Nam to handle several institution-related problems to efficiently implement the CPTPP, including fully understanding the trade deal, enhancing co-ordination among ministries and agencies and timely issueing legal documents.

Dương added that the trade deal provided signicant opportunities to businesses but firms must make more preparations to realise the opportunities. Firms were paying more attention to taxes and tariff liberalisation but must also fully understand origin rules, he said.

Dương said opportunities would come first from businesses’ efforts to change their thinking and improve their competitiveness, adding that room for businesses to take advantage of the trade deal remained large.

Võ Trí Thành, Director of the Institute for Brand and Competitiveness Strategy, said that as the CPTPP would push structural reform, implementing the trade deal would follow the commitments then more importantly, go beyond commitments for efficiency.

Nguyễn Thị Trang, Director of WTO and Integration Centre under the Việt Nam Chamber of Commerce and Industry, said the CPTPP set requirements and created pressure for structural reforms in Việt Nam.

Together with the European Union – Việt Nam Free Trade Agreement, Việt Nam had singificnat economic opportunities, Trang said, adding that it was critical to speed up institutional reforms.

Tariff incentives provided by the trade deals would provide opportunities  to boost the development of the part-supply industry, Trang said.

Trade between Việt Nam and CPTPP members reached US$77.4 billion in 2019, a year-on-year rise of 3.9 per cent, statistics of the Ministry of Industry and Trade revealed.

Source: VNS

 

103/ EVFTA opens investment opportunities for Czech Republic

21 February 2020

The recent ratification of the EU-Vietnam Free Trade Agreement (EVFTA) by the European Parliament (EP) is a major success after more than nine years of negotiations, according to David Jarkulisch, an economic diplomat from the Czech Republic.

The recent ratification of the EU-Vietnam Free Trade Agreement (EVFTA) by the European Parliament (EP) is a major success after more than nine years of negotiations, according to David Jarkulisch, an economic diplomat from the Czech Republic.

The Czech Ministry of Foreign Affairs recently published an article by Jarkulisch on the website export.cz, saying the EVFTA is the biggest and most ambitious trade deal that the EU has ever signed with a developing country.

It will also bring enormous opportunities for European investors, including those from the Czech Republic, he said.

He added that the EVFTA will not only eliminate tariff lines for 99 percent of the goods to be traded, but also facilitate customs procedures and remove non-tariff barriers to trade, thus making it easier for European companies to access Vietnamese government’s public procurement contracts and provide stronger protection for intellectual property rights.

For the Czech Republic, since most of its exports to Vietnam belong to the group of machinery and equipment – which has the fastest tax reduction rate, the EVFTA will facilitate Czech products to penetrate into the Vietnamese market.

Automobile, farm produce and beer will also be promising fields for the European country, he added.

On February 13, the Chamber of Deputies (Lower House) of the Parliament of the Czech Republic passed a resolution supporting some international agreements, including the EU-Vietnam Investment Protection Agreement (EVIPA).

The EVIPA was adopted by the Czech Senate in late January this year./.

Source: VNA

 

104/ NEW STANDARD FOR CONSUMER WARRANTIES KEEPS EVERYONE IN THE SUPPLY CHAIN ON THE SAME PAGE

21 February 2020

The rise in e-commerce and globalization has revolutionized retail trade – for both the good and otherwise of the consumer. However, more choice doesn’t always equate to better quality. A new International Standard for consumer warranties will help to protect every player in the supply chain.

With an estimated USD 20 trillion worth of merchandise exported around the world each year, there is no denying we live in a globalized economy. But while digitalization and globalization bring with it unending choice for consumers, not all buyers get a good deal. Faulty goods or the unsatisfactory performance of products are the risk one takes.

Now, a new International Standard aims to reduce the likelihood of bad surprises for consumers and protect manufacturers and suppliers at the same time, enhancing confidence in all aspects of the deal.

ISO 22059Guidelines on consumer warranties/guarantees, specifies what is required for a sound warranty or guarantee that will meet the reasonable expectations of consumers. It includes stating exactly what is covered and not covered, the time frame of coverage and the manufacturer or supplier’s expectations of consumers. It also features the inclusion of remedial action should the product fail.

Dr Rahmah Ismail, Chair of the ISO committee of experts that developed the standard, said consumer protection levels vary greatly across the world, but this standard ensures an acceptable minimum for all.

“Being developed and internationally agreed by experts involved in both consumer and manufacturer rights, ISO 22059 will help both buyer and supplier understand their role in a successful transaction. It captures best practices from around the world, underlining both the consumers’ and manufacturers’ roles and responsibilities,” she said.

“This will in turn increase consumer confidence – a win-win deal for all.”

ISO 22059 was developed by ISO project committee ISO/PC 303Guidelines on consumer warranties and guarantees, the secretariat of which is held by DSM, ISO’s member for Malaysia. It is available for purchase from your national ISO member or through the ISO Store.

Source: iso.org

 

105/ Third anniversary of Trade Facilitation Agreement sees increasing implementation rate

22 FEBRUARY 2020

Three years since the Trade Facilitation Agreement (TFA) entered into force on 22 February 2017, WTO members have continued to make steady progress in its implementation. Director-General Roberto Azevêdo, on the occasion of the TFA’s third anniversary, welcomed members’ efforts to ensure traders can reap the full benefits of the Agreement.

The TFA, the first multilateral deal concluded in the 25-year history of the WTO, contains members’ commitments to expedite the movement, release and clearance of goods across borders. As of the TFA’s third anniversary, 91% of the membership have already ratified the Agreement. It entered into force three years ago when the WTO obtained the two-thirds acceptance of the Agreement from its 164 members.

“Through this landmark reform, WTO members are working to ensure that the global trading system creates more prosperity for people,”  Director-General Roberto Azevêdo said. “Delivering easier and faster trade through the TFA is a bright spot in international economic relations. WTO members are building upon the Agreement with continued cooperation and commitment.”

The chair of the Committee on Trade Facilitation, Ambassador Mohammad Qurban Haqjo (Afghanistan), said: “On this third anniversary, we now have a roadmap for the implementation of the Agreement by all developing country members in addition to those members which are already implementing the TFA in full. This is a very significant achievement.”

The Agreement is unique in that it allows developing countries and least-developed countries (LDCs) to set their own timetables for implementing the TFA depending on their capacities to do so. They can self-designate which provisions they will implement either immediately (Category A), after a transition period (Category B), or upon receiving assistance and support for capacity building (Category C).

As of 22 February 2020, over 90 per cent of developing countries and LDCs have notified which provisions they are able to implement after a transition period, and the ones for which they will need capacity-building support to achieve full implementation of the Agreement. Developed countries committed to immediately implement the Agreement when it entered into force.

“We look forward to additional clarity about the implementation of the TFA with the notification by LDC members of their definitive dates for the implementation of Category B provisions,” the chair added.

Based on members’ notifications of commitments, 65 per cent of TFA provisions are being implemented today compared to the 59 per cent implementation rate recorded on the Agreement’s first anniversary. Broken down, the latest figure equates to a 100 per cent implementation rate for developed members and 64 per cent for developing members. As for least-developed countries, the improvement in the implementation rate is particularly notable at 31 per cent today versus the 2 per cent recorded a year after the Agreement entered into force. The implementation rate for each WTO member can be viewed here.

The Agreement has the potential, upon full implementation, to slash members’ trade costs by an average of 14.3 per cent, with developing countries and LDCs having the most to gain, according to a 2015 study carried out by WTO economists. It is also expected to reduce the time needed to import and export goods by 47 per cent and 91 per cent respectively over the current average.

Members have also made strides in establishing the body of information needed to ensure transparency in trade procedures. Roughly half of the membership have submitted information that will help traders understand procedures for import, export and transit, the operation of single windows, use of customs brokers, and customs contact points. Much work remains, including in members’ provision of information needed to channel technical assistance and capacity building into areas of implementation that need most help.

TFA Facility (TFAF) was created at the request of developing and least-developed countries to help ensure they receive the assistance needed to reap the full benefits of the TFA. Further information on TFAF is available at www.TFAFacility.org.

Source: wto.org

 

106/ Lithuania donates EUR 50,000 to enhance developing countries’ trading capacity

24 FEBRUARY 2020

Lithuania is contributing EUR 50,000 (CHF 53,000) to help developing and least-developed countries take an active part in global trade negotiations. The contribution was acknowledged by Director-General Roberto Azevêdo at a meeting with Lithuania’s Minister of Foreign Affairs, Linas Linkevičius, on 24 February 2020.

Lithuania’s donation to the WTO’s DDA Global Trust Fund will finance training workshops for government officials to increase their trade negotiations skills and help them implement WTO agreements. Over 2,800 workshops have taken place since the fund was created in 2001.

DG Azevêdo said: “Inclusivity is central to the effectiveness of the multilateral trading system. I thank Lithuania for contributing to meeting this important goal.”

Minister Linkevičius said: “Supporting multilateralism not only with words but with actions is now more important than ever. Lithuania strongly believes that rules-based trade fosters economic growth and development. We are happy to be contributing to the WTO’s efforts to help developing countries implement WTO rules.”

Overall, Lithuania has donated approximately EUR 370,000 (just over CHF 390,000) to the various WTO trust funds over nearly 20 years.

Source: wto.org

 

107/ DDG Wolff hails ministers’ commitment to strengthen WTO for sustainable agriculture trade

24 FEBRUARY 2020

Speaking at a side event of the WTO agriculture negotiation meetings on 24 February, Deputy Director-General Alan Wolff hailed the strong commitment of seventy-two agriculture ministers to strengthen the WTO for achieving sustainable agriculture trade as expressed in a communiqué at the Berlin Global Forum for Food and Agriculture. He urged members to build on this effort and take necessary decisions to reform the agriculture sector at the 12th Ministerial Conference. This is what he said:

I would like to begin by congratulating Ambassador Bettina Waldmann for organizing this event and Ms Cornelia Berns for the successful organization of this year’s GFFA.

As you may know — the GFFA Ministers’ Conference is the world’s largest meeting of agriculture ministers underlining the importance of this year’s Communiqué on trade.

I would also like to pay tribute to Minister Julia Klöckner for her leadership and excellent chairing of the meeting. This year’s theme on trade was particularly apposite considering that agriculture is one of the issues where many Members are seeking an outcome in NurSultan in June.

I was pleased to have had an opportunity to make an opening statement at the Ministers conference together with DG Qu of the FAO and the Commissioner of Agriculture and Rural Affairs of the African Union, Ms. Josefa Sacko both of whom stressed the importance of trade and its contribution to the food security of our Members.

Today we are here for a presentation on the Communiqué that was adopted by 72 Agriculture Ministers at the Berlin Agriculture Ministers’ Conference.

My intention is not to anticipate the presentation by Ms Cornelia Berns on the Communiqué but just to highlight some of the key points from the WTO perspective.

First, the Final Communiqué is very supportive of the WTO and multilateralism.

i.The Ministers committed to facilitate agricultural trade by strengthening trade rules and underlined the crucial importance of the rules-based multilateral trading system.

ii.The Ministers also undertook to ensure the proper functioning of the WTO dispute settlement system considering its importance for agriculture trade.

iii.The Ministers welcomed the on-going discussions to further liberalize global agricultural trade, particularly in the domestic support pillar and committed to work constructively with other WTO Members in the lead-up to MC12, with a view to achieving a positive outcome.

Second, there were two main concerns that were repeatedly expressed during the discussions by Ministers and in the Communiqué itself.  These were:

i.sustainability, notably the potential impacts of agricultural production and trade on the environment), and

ii.fairness,  notably the distributional aspects of benefits from trade.

Third, — and a very important point — is the support by the Ministers of the concept note on Digital Council For Agriculture.  As you may know, Ministers at last year’s GFFA mandated the FAO together with other stakeholders — including the WTO — to develop a Concept Note for the establishment of an International Digital Council for Food and Agriculture.

The Concept Note was presented to Ministers at the GFFA this year and will now have to be presented to FAO’s governing bodies for further discussions and its formal establishment.  According to the planned structure of the Digital Council, the WTO — together with other IOs — would be part of an Advisory Committee.

The establishment of the Digital Council for Food and Agriculture responds to the urgent need to disseminate digital technologies and smart solutions to enhance production in a sustainable manner to feed the world’s growing population and to achieve the SDGs.

The mandate of the Council would be to support governments by facilitating exchange of ideas and experiences to harness the opportunities presented by digitalization.    It would serve:

  1. as a policy advisor, and
  2. as a central knowledge and coordination hub.  The importance of such a Council cannot be underestimated.

Finally, I would also like to say few words about the break-out session — led by Mr. Chris Forbes, Deputy Minister of Agriculture of Canada and supported by the WTO that focused on the theme of “Fair trade Rules” covered in Section 4 of the Communiqué.

The session participants included Ministers and high-level officials of 16 countries as well as high-level officials, including the Secretary General of UNCTAD, Mr Mukhisa Kituyi, the EU Agriculture Commissioner — Mr Janusz Wojciechowski, and representatives of the OECD and Codex Alimentarius Commission.

The key conclusions of these discussions were reported to the Ministerial conference and included some important additional points:

i.the call for Agriculture Ministers to work closely with their Trade counterparts to strengthen the rules-based multilateral trading system and reduce distortions to agricultural trade given its importance for the food security;

ii.the urgent need to increase agricultural production to feed the world’s growing population should not come at the expense of the environment and other societal goals;

iii.the need to assist developing countries in complying with the numerous standards to facilitate their exports, including through the provision of targeted technical assistance and capacity building.

I hope that as Members prepare for the Twelfth Ministerial Conference, they will take into account the views of agriculture Ministers and take the necessary decisions which would help reform the agriculture sector and enable it to effectively deal with contemporary challenges.

Thank you.

Source: wto.org

 

108/ Eyeing MC12 for an outcome, agriculture negotiators focus on doable elements and processes

24 FEBRUARY 2020

At a meeting of the Agriculture Committee in Special Session on 24-25 February, discussions focused on the elements and processes that are “oriented towards achieving an outcome” by the 12th WTO Ministerial Conference (MC12), in Nur-Sultan in June. “We need more engagement from delegations to find more common ground, more common language, to start very soon shaping what an outcome on agriculture might look like” said the chair, Ambassador John Deep Ford.

At the centre of the discussions was the chair’s new report entitled “Elements and processes for a possible outcome in agriculture at MC12” (JOB/AG/180). The document was intended to serve as a basis for members to narrow down the scope of negotiations and determine the contours of a draft text “which would be adopted by members at MC12.” Members also considered three new submissions.

Thematic discussions

Domestic support

The United States submitted a paper entitled “Notification of select domestic support variables in the WTO” (JOB/AG/181). The paper identifies several areas within the domestic support pillar where members have been following different notification practices and where agriculture committee discussions are driven by inquiries seeking to gain further transparency.  Members welcomed the US submission for its detailed information and comprehensive analysis. The US said it would explore discussion of this matter in the regular Agriculture Committee meeting. It reiterated the submission was meant to support “a technical discussion” on transparency, not to reflect any negotiating position.

The second new submission entitled “Formula for reduction of trade-distorting support” (JOB/AG/182) from the Russian Federation provides concrete examples for the reduction of trade-distorting support by applying the formula proposed in its previous document (JOB/AG/172.) Some members raised questions to seek further clarifications on some of the technicalities of the paper.  The Russian Federation said it had used a new approach based on the actual economic performance of members in order to try to avoid the failures encountered with old approaches.

The chair invited members to build on the elements listed in his report, including:

  • a concrete goal for capping and reducing trade-distorting domestic support;
  • key principles and possible ways to achieve that goal;
  • the importance of harmonizing support levels and reducing imbalances;
  • the importance of taking into account characteristics of members’ agricultural sectors, non-trade concerns and levels of development;
  • the importance of taking into consideration differences in the trade-distorting potential of individual categories of domestic support;
  • the importance of respecting the prescribed criteria for less trade-distorting support programmes; and
  • the importance of transparency.

Members of the Cairns Group (a group of agriculture-exporting countries), continued to drive the discussion on domestic support with the aim of halving trade-distorting domestic support by 2030. They also called for full commitment to the continuation of the Reform Process  set out in Article 20 of the Agreement on Agriculture, which gives a mandate to progressively and substantially reduce trade-distorting domestic support.

Some developing members insisted that the priority should be given to addressing the aggregate measurement of support( AMS) beyond de minimis. Meanwhile, a point was also made by several members that transparency could be a standalone outcome as it is “of equal importance to the substance”. Notifying the value of total production (i.e. the base for calculating a member’s de minimis subsidies) could be a starting point for improving transparency, one member suggested.  The view was also expressed however that while important, transparency alone could not constitute a sufficient outcome.

In conclusion, the chair noted again the importance of addressing the domestic support pillar before addressing other issues. He confirmed that most members embrace two chief elements: the need to reduce trade-distorting domestic support and to strengthen transparency. Current proposals have indicated a direction that may be taken, but a lot of work still needs to be done, he said.

Market access

The chair proposed the following four elements for members’ deliberations in the context of an outcome at MC12:

  • Changes in applied tariffs and treatment of consignments en route
  • Tariff simplification
  • Transparency of tariff rate quota (TRQ) administration
  • Framework and process towards market access reforms

The first three elements are in the spirit of enhancing transparency and facilitating agricultural trade without altering the core market access commitments that members currently have in their schedules. The fourth element alludes to some broad principles for a possible market access negotiating framework to which members may consider subscribing.

A number of members expressed interest to examine the issue of transparency of changes in applied tariffs and  the treatment of shipment en route. The suggestion by Russia that TRQs (i.e. by which imports within the quota pay a lesser tariff than those outside the quota) should be administered transparently was positively acknowledged at the meeting; however, some members considered the specific issue to be better addressed in the regular sessions of the Agriculture Committee.  Meanwhile, a number of developing members preferred to make progress on tariff simplification (i.e. converting non-ad valorem tariffs to ad valorem tariffs), while some others expressed caution in singling out this technically complex topic. The need to pursue negotiations towards broader market access reforms was also acknowledged.

The chair confirmed the clear interest in this pillar and reiterated the necessity to include market access elements when determining the contours of the overall agriculture outcome package for MC12. It is difficult but an outcome could be obtained through incremental steps and flexible approaches, the chair said. He hoped that all members who took the floor could lead the way.

Cotton

The Cotton 4 (Benin, Burkina Faso, Chad and Mali) circulated the Koudougou Ministerial Declaration on Cotton, adopted by the Cotton 4  on the occasion of their coordination meeting held in Burkina Faso on 27-29 February (TN/AG/GEN/50 and TN/AG/SCC/GEN/21). Recalling the WTO’s mandate on cotton and vital importance of this issue to the cotton-producing and -exporting African countries, the Declaration urges members to address longstanding issues at MC12, in particular trade-distorting domestic support for cotton.

Several groups of developing country members expressed support for the Cotton 4 declaration. A few members highlighted the importance of transparency in cotton before dealing with the thorny issue of domestic support reduction. Several members also reaffirmed their willingness to continue engaging on cotton development assistance, including cotton by-products.

The chair recalled the tireless efforts made so far while noting the absence of any sign of convergence. The chair therefore urged once more all members with a direct interest in this issue to be fully engaged and to explore all possible options to move forward.

Export competition

The chair recalled that proponents on this topic had focused in their recent discussions on how to improve transparency and monitoring of the December 2015 Nairobi Ministerial Decision on Export Competition, including by improving the response rate to the annual questionnaire on export competition (ECQ), the completeness and accuracy of members’ replies or the provision of contextual information.

Canada, with the support of several proponents, confirmed ongoing outreach efforts to develop some specific proposals in this regard, as part of their continuing efforts to address the unfinished business in the pillar, such as through enhancing disciplines on export credits, export credit guarantees/insurance programmes, agricultural exporting state trading enterprises and international food aid.

Export Restriction

The chair’s report highlighted two main elements in which there is the possibility of achieving an outcome for MC12:

  • The exemption of foodstuffs purchased for non-commercial humanitarian purposes by the World Food Programme(WFP) from the application of export restrictions;
  • The timeline for advance notification pursuant to paragraph 1(b) of Article 12 of the Agreement on Agriculture.

The interventions confirmed widespread support for the first element.

Regarding the second element, the proponents stressed the necessity to continue the work on all the issues covered in this area, while some developing countries reiterated their concerns regarding possible additional administrative burden and risks of market manipulation.

Public stockholding (PSH)

The chair’s report laid out the elements for a permanent solution, including suggestions on the core provision, product coverage, programme coverage, transparency, anti-circumvention and safeguards as well as a monitoring mechanism.

The main proponent, the G33 (a group of developing countries), and some other developing members restated the urgent need for fulfilling the mandates on the PSH pillar by MC12. Meanwhile, one question was put forward again by non-proponents on the interaction between the demand for subsidy reductions under the domestic support negotiations and the demand for increasing the same support under the PSH discussions.

Special safeguard mechanism (SSM)

The chair noted that the main obstacle in the SSM negotiation resides in its linkages with market access. He also made some observations on the recent discussions concerning, inter alia, the relationship between an SSM and subsidized imports  or the possibility of the Uruguay Round negotiations on the special agricultural safeguards (SSG) inspiring the SSM negotiations. This was with the expectation that the ideas and elements in these discussions may possibly pave the way for a constructive engagement among members on SSM, the chair said. Developing member proponents rejected the link between SSM and market access. They were also of the view that domestic support reform alone cannot address the challenges that they seek to address through an SSM.

Special session on the Global Forum for Food and Agriculture

The German government organized a side event to discuss the communiqué signed by 72 agriculture ministers at the Berlin Global Forum for Food and Agriculture.  Recalling ministers’ strong commitment to strengthen the WTO for achieving sustainable agriculture trade, members stated their readiness to build on this effort and take necessary actions to reform the agriculture sector at MC12.

Next

The chair stressed that March would be critical for agriculture negotiations and asked members to deliberate on his report further and come back with more concrete proposals and ideas in the next negotiation meeting.  He also plans to continue intensive consultations with members in coming months.

The next meetings of the Agriculture Committee in special session are tentatively scheduled for 23-24 March and 23-24 April.
See the glossary for all agriculture terminologies

Source: wto.org

 

109/ Export activities at border gates still slow: Ministry

24 February 2020

Export activities through border gates with China were still slow by February 23, according to the Ministry of Industry and Trade.

About 171 vehicles exporting products to China went through customs clearance between February 20 and 23 at the Hữu Nghị International Border Gate in Lạng Sơn Province, including fruits, electronic components and garments.

Up to 365 vehicles exporting products, including jackfruit, dragon fruit, mango, longan, chillies and electronic components, were still stuck at that border gate.

About 189 vehicles carrying electronic components, machinery, porcelain, glass and garments entered Việt Nam via the border gate during this period.

At the Tân Thanh International Border Gate in Lạng Sơn Province, 13 vehicles carrying dragon fruit and watermelon were exported from Việt Nam to China and 18 vehicles of yellow melon, green beans, onions, potatoes, peanuts, fresh mushrooms and garlic were imported to Việt Nam.

However, 107 vehicles of farming products to China, including dragon fruit and watermelons, are waiting for customs clearance at this border gate.

The ministry said the slow export activity at Tân Thanh border gate was due to a small number of workers loading and unloading goods on the Chinese side and a lack of trading activities performed by border residents.

From February 22, the Management Board of the border gate and the Chinese side agreed to implement customs clearance from 7am to 7pm daily to facilitate import and export activities, according to the ministry.

The ministry also said Lào Cai border gate imported 188 trucks of goods from China in the period from February 20 until February 23 while at present, about 200 vehicles of goods are waiting for export to this market.

In Quảng Ninh Province, the total trade value reached about US$525,700 at the Móng Cái border gate during the period. The customs sub-department of this border gate implemented customs clearance for 42 trucks, including 27 export goods trucks to China and 15 import goods trucks.

Source: VNS

 

110/ Singapore firms seek suppliers of agricultural products in Viêt Nam

25 February 2020

A delegation of firms from Singapore was expected to visit Việt Nam at the end of this month to seek fruit and vegetable suppliers, as imports from China were declining due to the outbreak of novel coronavirus (COVID-19).

The Department of Asian – African Markets under the Ministry of Industry and Trade said this hopefully would be a solution to tackle difficulties caused by the epidemic to Việt Nam’s exports of agro-forestry-fishery products.

The epidemic, which was hitting a number of sectors of Singapore, forced the country to look for new markets, especially in neighbours like Malaysia, Indonesia, Thailand and Việt Nam, to cope with interruptions in trade with China.

Singapore was mostly reliant on imports of agricultural products to meet domestic demand.

This was also a significant opportunity for Việt Nam to expand exports of fruits and vegetables to Singapore, diversify export markets and reduce reliance on China, the department said.

On February 18, Singapore announced a financial package worth US$4.6 billion to cope with the epidemic, which would focus on providing support to companies operating in sectors suffering the most from the epidemic, including aviation, tourism and retail and low-income households.

According to the ministry, Việt Nam’s exports of fruit and vegetable products decreased considerably, partly due to the impact of the COVID-19 epidemic.

Customs statistics showed that fruit and vegetable exports in January totalled $280 million, representing a fall of 20.6 per cent over the same month last year.

Although mainland China was the largest import market of Vietnamese fruit and vegetable products, accounting for 64.8 per cent of Việt Nam’s fruit and vegetable export value last year, exports to this market in January saw a drop of 32.4 per cent to $173.5 million.

In January, fruit and vegetable exports to Thailand, Laos, Taiwan and Russia increased at 162 per cent, 42 per cent and 123 per cent, respectively.

Visit to the US 

A delegation of 19 firms lead by Deputy Minister of Agriculture and Rural Development Lê Quốc Doanh on Monday started a visit to the US to seek opportunities to increase the agricultural trade between the two countries.

The six-day visit would focus on seeking opportunities to accelerate cooperation in the transfer of advanced technology in agricultural production and processing to develop domestic value chains and create favourable conditions for boosting trade of farming products between the two countries.

The two-way trade of agricultural products reached $14.4 billion in 2019.

Source: VNS

 

111/ Thailand imposes anti-dumping duty on Vietnamese steel products

25 February 2020

Thailand will impose anti-dumping tariffs ranging from 6.97 per cent to 51.61 per cent of cost, insurance and freight (CIF) prices on some imported steel products from Việt Nam, the Trade Remedies Authority of Việt Nam under the Ministry of Industry and Trade said.

The Việt Nam Trade Office in Thailand has informed the authority on Thailand’s final conclusion of an anti-dumping investigation on a number of iron and steel pipes and tubes originating or imported from Việt Nam including 169 HS codes.

The move aims to protect the Thai domestic manufacturing sector.

However, anti-dumping duties are exempted from the importation of related goods for production for export, goods imported for special use or goods classified as special categories.

In accordance with the Anti-Dumping Agreement, the anti-dumping duty will be applied for a maximum of five years and members can carry out any reviews every year.

Therefore, the Trade Remedies Authority of Việt Nam recommended that relevant Vietnamese exporters continue to consider participating in the reviews to ensure their rights and interests.

Source: VNS

 

112/ US donates USD 600,000 to further developing countries’ trading capacities

25 FEBRUARY 2020

The United States contributed USD 600,000 (CHF 590,000) in 2019 to help developing and least-developed countries (LCDs) participate effectively in global trade negotiations. This donation will finance training workshops for officials from WTO member governments to help them deepen their understanding of multilateral trade rules and strengthen their negotiating capacity.

Over 2,800 workshops have been organized since the WTO’s DDA Global Trust Fund was created in 2001.

Director-General Roberto Azevêdo said: “This donation from the United States will help enhance the ability of developing countries and LDCs to participate actively in trade negotiations. I thank the United States for its sustained generosity.”

The US Ambassador to the WTO, Dennis Shea, said: “The United States places great importance on ensuring that WTO obligations are implemented so that the benefits of open and transparent trade regimes can be realized by all our traders. We are pleased to continue our longstanding support for the Global Trust Fund. It is a signal of our commitment, both bilaterally and multilaterally, to support effective, targeted, and demand-driven technical assistance. By pooling resources with other donors within the Global Trust Fund, we are ensuring that all available resources are properly leveraged, and programmes are designed for the widest possible participation among developing and least-developed countries of the WTO.”

The United States has donated just over CHF 20.5 million (over USD 21 million) to the DDA Global Trust Fund over nearly 20 years.

Source: wto.org

 

113/ Kazakhstan prepares to negotiate accession to Government Procurement Agreement

26 FEBRUARY 2020

Kazakhstan informed the Committee on Government Procurement at its 26 February meeting of the progress it has made to initiate negotiations to join the WTO plurilateral Government Procurement Agreement (GPA). The Committee also discussed the ongoing negotiations of China, the Kyrgyz Republic, North Macedonia, Tajikistan and Russia to join the GPA.

Kazakhstan said that it hopes to submit its initial market access offer to the Committee in the near future. The delegation also said that opportunities for foreign bidders to participate in its government procurement market have been broadened by the creation of a new portal for government procurement and the acceptance of electronic forms under a new government procurement law. GPA parties welcomed the announcement and said they look forward to receiving the relevant documentation from Kazakhstan.

“Today’s discussion on Kazakhstan’s recent application for accession is very encouraging”, said Carlos Vanderloo of Canada, who was re-elected as the Committee’s chairperson at the meeting.

In addition to an initial market access offer, Kazakhstan is required to submit replies to a checklist of issues regarding its government procurement legislation to kick off negotiations.

Kazakhstan, the host of the WTO’s 12th Ministerial Conference from 8 to 11 June 2020, was granted observer status by GPA parties in October 2016 and submitted its application to join the GPA on 29 November 2019. This is in line with the commitment it made upon joining the WTO in 2015 whereby it would start negotiating its GPA accession within four years of becoming a WTO member.

Parties also welcomed the announcement by Switzerland that its Parliament has adopted the revised GPA and all implementing legislation and that it will subsequently submit its Instrument of Acceptance to the Committee later this year. The objective is to have both the revised GPA and the updated federal and cantonal government procurement legislation enter into force on 1 January 2021. The Chair welcomed this “encouraging” news. Switzerland is the last party that has yet to accept the revised GPA, which entered into force in April 2014.

The GPA is a plurilateral agreement — potentially open to all WTO members but binding only the parties to the Agreement. Each applicant’s terms of participation are negotiated with GPA parties and set out in its respective schedule, which contains several annexes defining the party’s commitments with respect to:

  • the procuring entities whose procurement processes will be open to foreign bidders
  • the goods, services and construction services open to foreign competition
  • the threshold values above which procurement activities will be open to foreign competition
  • exceptions to the coverage.

Currently, 48 WTO members are bound by the Agreement. Australia is the latest member to have acceded to the Agreement in 2019. The GPA aims to open up, in a reciprocal manner and to the extent agreed between WTO members, government procurement markets to foreign competition, and make government procurement more transparent. It provides legal guarantees of non-discrimination for the products, services and suppliers of GPA parties in covered procurement activities, which are currently worth an estimated USD 1.7 trillion annually. Government procurement typically accounts for about 15% of developed and developing countries’ economies.

Ongoing negotiations

Also under discussion at the meeting were other ongoing negotiations on accession to the GPA, including those by China, the Kyrgyz Republic, North Macedonia, Tajikistan and the Russian Federation. GPA parties reiterated their interest in seeing progress in these accession processes. The Chair encouraged the acceding members to keep engaging with GPA parties “with creativity and pragmatism.”

China

China said that its sixth revised offer submitted in October 2019 contains substantive progress, including on threshold values, inclusion of provinces and state-owned enterprises, the coverage of services and construction works and the notes on exclusions. China also noted that replies to the checklist of issues have been updated and will be submitted to the Committee once internal clearance has been given. Parties encouraged Beijing to address remaining concerns and to promptly submit the updated replies to the checklist of issues.

GPA accession application: December 2007

Latest revised market access offer (6th revision): October 2019

Kyrgyz Republic

The Kyrgyz Republic informed parties of a new government procurement law circulated in June 2019 and of the active steps taken to revise its market access offer “to smooth out parties’ concerns.” The Chair encouraged Bishkek to submit its revised market access offer in advance of the next Committee meeting in May to allow a revision by parties.

GPA accession application: May 1999, reactivated in 2016

Latest market access offer (4th revision): June 2018

North Macedonia

A delegation from Skopje, North Macedonia, reported on bilateral meetings with other GPA parties and expressed “hope to become a full-fledged party to the GPA in the near future”. Parties appreciated the delegation’s constructive engagement in bilateral meetings and encouraged Skopje to address their concerns. The Chair called on parties to keep engaging with each other to find a mutually-agreed path forward as quickly as possible.

GPA accession application: March 2017

Initial market access offer: February 2018

Russian Federation

Russia reported ongoing work on a future federal law seeking to make its procurement system more transparent. The delegation also said that while it continues to examine parties’ questions and comments, it remains open for consultation. Parties urged Moscow to submit the revised relevant documentation, including a significantly improved market access offer, as early as possible.

GPA accession application: August 2016

Initial market access offer: June 2017

Tajikistan

A senior official from Dushanbe introduced Tajikistan’s latest market access offer, which was recently submitted. He also reported on several constructive bilateral meetings with parties. Several parties said that the issue of a price preference programme has yet to be satisfactorily addressed.

GPA accession application: February 2015

Latest market access offer (5th revision): February 2020

Other negotiations

The United Kingdom, no longer a member State of the European Union since 1 February, became an observer to the GPA Committee at the meeting. The UK is seeking to accede to the revised GPA in its own right after the transition period (provided under the EU-UK Withdrawal Agreement) during which the United Kingdom is treated as an EU member State.

Other accession-related developments

Other WTO members with currently pending accession negotiations include Albania, Georgia, Jordan and Oman. In addition to Kazakhstan, four other members have GPA-related commitments in their respective accessions to the WTO, which they negotiated with WTO members. These are Afghanistan, Mongolia, Saudi Arabia and Seychelles.

Afghanistan announced a new law whereby government procurement markets are open to foreign bidders.

Albania informed parties that submissions of foreign bids are now possible online. New information has recently been made available online under a new law passed to further increase the efficiency and effectiveness of government procurement procedures.

Georgia said that the chapter on government procurement contained in its free trade agreement with the European Free Trade Association member States was based on the GPA. To that extent, GPA-based obligations were fully enforceable in Georgia, it said. The country also announced the creation in the near future of an independent and centralized review body for government procurement and said that all government procurement procedures can be completed electronically.

Seychelles announced the current review of its internal government procurement system, which it aims to complete in 2021.

The Chair welcomed the updates and expressed “hope for new developments from these WTO members in the course of the year.”

Notifications for transparency

The Chair reminded parties of the importance of notifying national legislation, threshold values and statistics. The Netherlands with respect to Aruba mentioned a recent workshop organized by the WTO in cooperation with the European Bank of Reconstruction and Development, which helped to address the challenges Aruba faces when notifying recent developments to the Committee.

Next meeting

The next meetings of the GPA Committee are scheduled for the week of 4 May. A workshop on enhancing information-sharing and transparency will be held in October.

Source: wto.org

 

114/ Vietnam licenses 460 US meat producers: deputy minister of agriculture

26 February 2020 

Vietnam has granted licenses to 460 US meat producers and another 210 companies applying to export seafood to Vietnam, according to Deputy Minister of Agriculture and Rural Development Le Quoc Doanh.

Doanh revealed the information during a working meeting with US Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs Ted McKinney and Chief Agricultural Negotiator Gregg Doud on February 24.

The deputy minister added that Vietnam has also approved the export of six types of US fresh fruit to Vietnam, namely cherry, pear, grape, apple, blueberry and orange, and is assessing the biological safety risks with four other fruits.

At the meeting with US officials, as part of his working visit to the US, Deputy Minister Doanh asked the US Animal and Plant Health Inspection Service to soon recognise the Hanoi Irradiation Centre and Toan Phat Irradiation Company as eligible for fresh lychee irradiation so that Vietnamese exporters can reduce costs from transporting the fruit to southern irradiation centres.

He also called for US inclusion of vapor heat treatment to sterilise fresh fruits exported to the US, in addition to irradiation, and to finalise risk assessment procedures so that Vietnamese pomelo can be exported to the US.

The US Department of Agriculture is expected to send a delegation to Vietnam from March 2-13 to conduct a periodical review of Vietnam’s catfish products.

Vietnam pledges cooperation during the review and ensures that Vietnamese catfish exported to the US are high quality, safe and reasonably priced.

Source: NDO

 

115/ ASEAN-US special summit set for March 14: ambassadors

26 February 2020

Vietnamese Ambassador to the US Hà Kim Ngọc attended a meeting of the ASEAN Committee in Washington, the first held under Việt Nam’s chairmanship, on Monday (local time).

The ambassadors discussed preparations for the ASEAN-US Special Summit, to be held in Las Vegas on March 14, saying they appreciated the US for hosting the meeting with leaders of the Greater Mekong sub-region as well as various sideline events to promote bilateral co-operation in the Mekong region, technology, energy and women’s empowerment.

They asked Laos, the current co-ordinator for ASEAN-US relations, to continue maintaining close contact with the US side in order to provide an excellent reception, logistics services and content for the summit.

Ngọc briefed participants on the major outcomes of the ASEAN Foreign Ministers’ Meeting (AMM) Retreat which took place in the resort city of Nha Trang in Khánh Hoà on January 17-18.

Ambassadors of other ASEAN nations congratulated Việt Nam on successfully hosting the AMM Retreat and praised the country for fostering common initiatives and its efforts to address regional and global issues, particularly the outbreak of the acute respiratory disease caused by SARS-CoV-2 (COVID-19).

At the meeting, the ASEAN Committee in Washington also held discussions with Acting Deputy Under Secretary for International Trade Diane Farrell and Acting Deputy Assistant Secretary for Asia Laurie Farris from the US Department of Commerce.

Farrell spoke highly of ASEAN’s position in the regional economic structure, saying the US government wanted to maintain fair and open trade relations with ASEAN nations for regional development and prosperity.

The US Department of Commerce is looking to step up co-operation with ASEAN for the development of a network of smart cities and harmonisation of standards to ensure the compatibility of ASEAN exports to the US and increase ASEAN investment flow to the US as part of the SelectUSA programme.

Source: VNS

 

116/ Covid -19 epidemic impact: Enterprises face difficulties because C/O form E cannot be submitted according to the deadline

26 February 2020

Due to the impact of Covid-19 impact, many import and export enterprises have suffered difficulties because there is no C/O form E submitted according to the deadline. This greatly affects the plans of enterprises.  

According to Point b, Clause 1, Article 7 of Circular 38/2018/ TT-BTC of the Ministry of Finance, if a certificate of origin is not available at the time of customs processing, the customs declarant will make an additional declaration and submit the certificate of origin within 30 days of the day the customs declaration is made.

In addition, Clause 3, Article 1, Circular 62/2019/TT-BTC dated September 5, 2019 amending and supplementing articles of Circular 38/2018/TT-BTC of the Ministry of Finance stipulates that “if the certificate of origin is available at the time of following customs procedures for imports but the customs declarant fails to provide a reference number or date of issue of that certificate of origin or where the certificate of origin is unavailable at the time of following customs procedures for imports and the customs declarant does not make the statement the certificate of origin is submitted later on the customs declaration of imported goods as regulated in Article 5 of this circular, the customs authority shall be entitled to reject the certificate of origin.

If the customs declarant has made the statement that the certificate of origin is submitted later as regulated in Article 5 of this circular but fails to make additional customs declaration and submit the certificate of origin within the time limit prescribed in Article 7 of this Circular, the customs authority shall be entitled to reject the certificate of origin as regulated.”

Many enterprises importing goods from China have suffered from the Covid -19 epidemic and failed to receive and submit C/O form E within the deadline for tax incentives. This is the case for VITECH Automation Equipment Joint Stock Company.

According to an import and export officer of the company, the Covid-19 epidemic not only affects the delivery progress the company has signed with its customers, the late submission of proof of origin has also affected the tax rate. “Normally, only a few days after receiving and delivering the goods, the Chinese side submits C/O to enterprises for tax inventive, but due to the epidemic, some customs declaration forms from January have not been yet submitted C/O to the Customs. Because import declaration forms of equipment shipments fell in the Lunar New Year in Vietnam and China together the development Covid-19, the company has not yet completed C/O and submitted it for tax refund. When the company has not yet has sufficient documents, it is subject to the normal tax rate, while the price in the contracts signed with its partner is calculated based on the incentive import price.”

Facing these difficulties, the VITECH Automation Equipment Joint Stock Company has proposed the General Department of Vietnam Customs to allow the company to extend the deadline for C/O submission to March 15.

KINGSMEN Vietnam Co., Ltd has carried out customs procedures for an imported shipment on January 20 and proposed to submit the C/O within 30 days since the date of registering declaration. Therefore, February 19 is the expiry date for submitting C/O form E. However, according to the firm, because the Chinese side was on the Lunar New Year holiday and the outbreak of Covid -19, the Chinese side has prolonged the holiday and is expected to return to work on February 20 and even this date is unofficial. Thus, the company cannot submit C/O form E on time. It has proposed the Customs to allow extending the deadline for submission of C/O form E within 30 days.

The Vietnam Manufacturing and Export Processing Limited Company (VMEP) imports components for motorcycle production from China and proposed to submit the C/O form E within 30 days. However, the company has faced difficulties due to the epidemic, as the Chinese government is currently trying to prevent and control the Covid-19 epidemic by extending the Lunar New Year holiday. Therefore, the company’s partner will apply for C/O and send it to the company later than the stipulated time. Therefore, VMEP proposes extending the deadline for C/O submission until February 28.

Signify Vietnam Co., Ltd opened a declaration to import two shipments of lighting equipment and accessories from China and applied for summiting C/O form E later due to the time of opening the declaration being near the Lunar New Year and the Chinese partner could not complete C/O form E to send to the company. According to current provisions, the company must submit C/O form E for the two declaration forms before February 16 and 12 for tax refund. However, the Chinese side has not yet applied to issue C/O form E. The time for express delivery of the C/O from China to Ho Chi Minh City is also affected by the epidemic, thus the company cannot submit the C/O before the deadline. It proposes the General Department of Vietnam Customs instruct and assist enterprises to solve problems on the deadline for submitting C/O due to the impact of the Covid-19 epidemic, and approve the extension of the deadline.

Source: VCN

 

117/ Gov’t keeps macroeconomic targets unchanged despite COVID-19 epidemic

27 February 2020 

The Government is striving to meet dual targets to avoid the spread of COVID-19 and ensure the safety of people while achieving the macroeconomic indicators set by the Party and the National Assembly.

Prime Minister Nguyễn Xuân Phúc made the statement chairing a meeting of the National Financial and Monetary Policy Advisory Council held in Hà Nội on Tuesday.

He said it was necessary to be cautious but not pessimistic when analysing the impacts on the country’s economy and take suitable measures adding there was no basis to adjust the country’s approved macro-economic targets.

The PM confirmed Việt Nam was a safe country with good and stable indicators.

In the current climate, the authorities must take strong, drastic and thorough measures and reforms to fight against the epidemic, boost production and business to meet the economic growth targets, Phúc noted.

The Prime Minister directed ministries, agencies, cities and provinces nationwide to work out plans to deal with socio-economic impacts caused by the virus.

It was necessary to strengthen the capacity of analysing, forecasting and coping with external uncertainties, the PM said.

At the meeting, members of the council agreed the need to continue consistently implementing targets of controlling inflation, stabilising the macro-economy and ensuring major balances of the economy, which they believed would create a firm foundation for sustainable development. They noted instability of the nation’s macro economy could have serious consequences.

Governor of the State Bank of Việt Nam (SBV) Lê Minh Hưng said the most important thing was to keep macroeconomic stability. Therefore, to control inflation, Hưng said the central bank would apply a cautious monetary policy, but not too tight, so as to not affect the economic growth.

As the council’s members advised the Government to continue applying credit supporting policies for businesses affected by the COVID-19 epidemic, the Governor also reported the SBV on Monday required commercial banks to reschedule debt repayments to help customers affected. The banks then needed to report back to the SBV between March 15 and March 31.

According to the SBV’s direction, Hưng said, banks would consider rescheduling repayments, reducing interest rates and temporarily suspending debts.

The central bank also asked banks to provide new loans to customers to stabilise their production and businesses.

According to local banks, customers suffering the most were firms involved in transportation, storage, accommodation, tourism, restaurant and food service. Others include agricultural and fisheries companies whose major export market is China and those whose main materials are imported from China.

At the meeting, the council members also advised the Government to continuously boost industries, which have potentials and advantages, to reduce and offset adverse impacts of the epidemic.

Appropriate solutions were also needed to ensure human resources, labour and normal business and production conditions for the sector, they said.

In addition, the Government should promote the disbursement of public investment projects, especially key national ones.

Concluding the meeting, Phúc told the central bank and the Ministry of Planning and Investment to continuously gather the council members’ recommendations and report to the Government’s upcoming meeting and complete a Government’s draft directive on solutions to support and promote production and business to issue next time.

Source: VNS

 

118/ Members discuss regulatory cooperation on self-drive cars and medical tools, debate concerns

27 FEBRUARY 2020

At a meeting of the Technical Barriers to Trade Committee on 25-26 February, WTO members discussed how to improve regulatory cooperation on self-driving cars and medical devices. They also exchanged experiences on procedures related to testing and certification. These discussions were followed by a regular meeting of the Committee on 26-27 February, where members discussed 64 trade concerns, 12 of which were new.

Medical devices and new vehicle technologies

The discussions among members highlighted the importance of cooperation between regulatory authorities in two sectors with rapid advances in technological innovation: autonomous vehicles and medical devices.

Members noted that cooperation in these sectors, where regulations have not been fully developed, could be especially valuable and trade facilitating for exporters. They highlighted the importance of following relevant international standards and establishing guidance to promote regulatory compatibility between members. In addition, it was pointed out that following the principle of good regulatory practices helps avoid unnecessary trade barriers, while at the same time allowing members to effectively achieve their public policy objectives, such as safety and environmental protection.

More information on the discussions, including presentations and a webcast of the meeting, is available here.

Conformity assessment results

Members shared their experiences and case studies on the way they accept conformity assessment results (tests, certificates) from other members. Specific sectors discussed included toys, medical devices, machinery and electrical and electronic devices. They also discussed challenges related to accepting these results. More information on the discussions, including presentations and a webcast, is available here.

Record number of notifications in 2019

The WTO Secretariat reported a record number of TBT notifications of new or changed measures in 2019, with over 3,330 such notifications circulated by 93 members. It was noted that 63% of notifications were from developing members. More detail — including on specific trade concerns (STCs) — can be found in the 25th Annual Review of the Implementation and the Operation of the TBT Agreement (G/TBT/44).

Specific trade concerns

At the regular meeting of the TBT Committee, WTO members discussed 64 specific trade concerns, including 12 new ones.  A full list of the trade concerns is available here.

Members used a new online system, eAgenda, to simplify the process of raising STCs for the meeting.  Around 90% of STCs were submitted using  this system.

A brief summary of new STCs is provided below. (For more information on previous trade concerns, see the 12-13 November 201918-19 June 2019,  6-7 March 2019  meeting summaries.)

Mexico — Labelling of pre-packed food and non-alcoholic beverages

Several members expressed concern about a draft Mexican regulation setting out nutrition labelling requirements for pre-packaged food and non-alcoholic beverages. The European Union, the United States, Switzerland, Costa Rica and Guatemala said that the proposal restricts trade more than necessary — although they recognize the importance of promoting public health and empowering consumers to make informed decisions. These countries are concerned, among other things, about the mandatory nature of the measure and how the proposal treats various types of nutritional information (e.g. on dietary fibres, added sugars, trans‑fat). They are also concerned that the requirements are not aligned with relevant Codex standards. Mexico was requested to provide an adequate transition period to allow industry to adapt.

Mexico said that the proposed regulation was introduced in order to address an obesity epidemic. The proposal had been subject to public consultations, which concluded in December 2019. Thousands of comments had been received from both national and international stakeholders. Following the consultations, in January 2020, a revised proposal had been agreed by the relevant Mexican authorities. The revised version would shortly be published in Mexico’s Official Gazette.

Colombia — Maximum sodium (salt) levels in agricultural products

A concern was expressed about proposed maximum sodium (salt) levels for agricultural products in Colombia. While supporting Colombia’s efforts to promote public health, the United States and Guatemala expressed concern that the measure did not consider the functional role of sodium; they also questioned the scientific basis for the regulation. They said the mandatory nature of the requirements could, potentially, lead to unnecessary restrictions on trade.

In response, Colombia emphasized that the measure aims to promote public health through consumer education. The objective is to reduce excessive intake of salt. Nevertheless, the proposal would not prohibit the sale of products that exceeded the limits but would instead put in place penalties. Scientific evidence had suggested that a voluntary approach (self-regulation) would not achieve a sufficient impact. In addition, Colombia noted that industry had been consulted on the matter.

United States — Toxic chemicals in children’s products

Members discussed a measure introduced by the State of New York (United States) concerning the regulation of toxic chemicals in children’s products. The European Union said that it appeared to entail an additional layer of requirements beyond the rules already in force at federal and state levels in the United States. In addition, the EU noted that the procedures for the listing of chemicals were not in line with good regulatory practices. The United States was requested to provide for an adequate transition period to allow industry to adapt.

The United States said that it was working with the State of New York on the matter and encouraged members to submit comments on the notification.

China — Regulation of overseas producers of imported foods

Potential new Chinese requirements affecting food products exported to China was raised as a concern by several members. Chinese authorities are considering (the regulation is still at the draft phase) additional certification procedures. Members expressing concern included Mexico, the Republic of Korea, Switzerland, the United States, Japan, the European Union and Chinese Taipei. They are seeking assurances that any additional certification procedures would not create additional burdens for exporters, and that any associated risk assessment be based on science. China was asked to notify the measure and allow for feedback from stakeholders. Mexico asked China to clarify whether the proposal would also cover alcoholic beverages; there was concern in Mexico that Tequila would be classified as a “high risk product”.

China emphasized that the measure was still in the drafting process and would be notified to the Committee with enough time for comments to be made. It was noted that the measure was being developed in response to an increase in trade.

Russian Federation — Law on Protecting Consumer Rights

Some members expressed concern about a proposed measure that would require the pre-installation of Russian software in technically complex goods sold in Russia. The United States, Japan and the European Union were concerned, among other things, about the rationale for the pre-installation requirement, possible discriminatory aspects of the measure, its proportionality and the absence of a notification (and associated 60‑day comment period). The US said that the measure appeared to be a technical regulation as defined by the TBT Agreement because it set out “product characteristics” with which compliance was mandatory. Further clarification was sought on the scope of the term “technically complex goods”.

The Russian Federation said that the proposed measure fell outside the scope of the TBT Agreement and that the TBT Committee was not the appropriate forum to discuss it. The proposed measure was not a technical regulation because it did not provide for requirements on “product characteristics”, nor did it prescribe “production methods”. It also did not set out any conformity assessment procedures. Russia also said that the proposal was non‑discriminatory and would not cause any negative impact on international trade.

India — Food safety standards

The United States and the European Union expressed concern with India’s recent draft measure on labelling for food products. The regulation requires front of package nutritional information on food products and a warning on alcoholic beverages.  The US said that the proposed measure would affect the export of processed products, including alcoholic beverages, and would create consumer confusion. The US urged India to notify any changes to the labelling requirements to the TBT Committee. The EU urged India to align the provision with Codex standards of labelling for pre-packaged foods and nutrition labelling. The EU asked for a longer transition period to allow industry to adapt to the new measures.

India said that members’ comments had been considered and that front of package labelling requirements had been removed from the draft measure, which would be re‑notified to the Committee. Regarding warning labels on alcoholic beverages, India said that these were based on recommendations by the World Health Organization and Codex.

EU — Organic production and labelling of organic products

A proposed measure by the European Union which introduces changes to the regulatory framework for the production and labelling of organic products drew reactions from several members. The Dominican Republic, Canada, Panama, Paraguay, Peru, Ecuador, Chile and Colombia expressed concerns about various parts of the regulation. The regulation required, it was noted, that a control certification and Certificate of Inspection be issued before the shipment was due to leave the country of origin and that it had to be approved by the authorities in the country of export. Furthermore, group certification would not be accepted any more. This would impact small producers who would have to bear the burden of the cost of individual certificates.

Concerned members were of the view that the measure could potentially cause administrative and financial ramifications for organic food exporters to the European Union. The EU was urged to notify any changes to its regulations to the Committee in order to allow time for comments.

The EU said that discussions were ongoing with EU member states. Nevertheless, organic products entering the EU market had to comply with EU organic production rules, including provisions on group certification. The EU would take into consideration the comments of members in the ongoing discussions.

Kingdom of Saudi Arabia — Conformity assessment online system

The European Union and Switzerland expressed concern with an online certification system for a conformity assessment safety platform (Saber Conformity Assessment Online Platform / Saleem Product Safety Program) launched by Saudi Arabia. The system was designed to help exporters obtain a Gulf Cooperation Council conformity tracking symbol from a certified body and required all products to be registered on the online platform. Members noted that the system was having a negative impact on the import of products — especially toys and ceramics — because it was burdensome for exporters.

The Kingdom of Saudi Arabia said that the purpose of the platform was to evaluate the conformity of products before shipment, and to reduce the clearance time at the border. It was in response to a growing number of instances of non-compliance on the market. The procedures were applied in the same manner to local and foreign manufacturers, and the measure had been notified to the WTO in line with transparency obligations.

Mongolia — Enrichment of agriculture products with vitamins

The Russian Federation sought clarification regarding a measure introduced by Mongolia involving mandatory requirements for wheat flour enrichment. Russia asked if the measure was consistent with relevant international standards and said that there was not enough time between the publication of the regulation and its entry into force to give producers an opportunity to adapt.

Mongolia said that all information related to the new regulation was available on the website of the Ministry of Food, Agriculture and Light Industry of Mongolia.

France — Labelling of radio equipment

China expressed concern with a new regulation that requires the display of the standard absorption rate (SAR) of radio terminal equipment in France. While China respected the objective of protecting human health and safety, it urged France to remove the requirement as it could lead to consumer confusion and added unnecessary costs. France was requested to postpone the implementation of the requirement for 12 months to allow industry to adapt.

The EU said that the regulation was a response to requests from consumer organizations regarding public exposure to radio equipment. The entry into force was set for July 2020.

Peru — Advertising warnings of food products

Several members expressed concern about a new Peruvian measure that would ban the use of adhesive labels for food and beverages to comply with labelling requirements on advertising warnings. Costa Rica, Chile, the United States, Brazil, Colombia, the European Union, Guatemala and Korea said that this change would create an unnecessary barrier to trade and would place a burden on small business to adjust. Peru was urged to modify the measure to allow for the use of less trade restrictive alternatives, such as stickers.

Peru said the measure sought to achieve the legitimate objective of protecting public health, especially of the most vulnerable members of the population, and of providing adequate information to consumers.

Kingdom of Saudi Arabia — Electrical clothes washing machines

Korea expressed its concern about a new regulation in the Kingdom of Saudi Arabia that stipulated temperature requirements when testing the performance of washing machines. Korea said that the requirement was not in line with international standards and urged Saudi Arabia to notify the measure to the Committee.

The Kingdom of Saudi Arabia said that it was willing to discuss the matter bilaterally.

Commemorative event

The Chair Mr Sung-hwa Jang (Republic of Korea) announced the WTO Secretariat’s intention to organize an event this year commemorating the 40th anniversary of the “original” TBT Agreement — known as the “Standards Code”.

The event will take place on 30 October, immediately after the conclusion of the Committee’s last formal meeting of the year. It will unite former and current TBT negotiators, scholars and stakeholders to look back at the past 40 years, to consider current issues and to look ahead to challenges in the future.

The event will be open to the public and webcast.

More information will be available in due course.

Next meeting

12 – 14 May 2020

Source: wto.org

 

119/ DSB meeting suspended over disagreement between the Philippines and Thailand in cigarette dispute

28 FEBRUARY 2020

The Dispute Settlement Body (DSB) meeting on 28 February was suspended due to a disagreement between the Philippines and Thailand regarding the Philippines’ request to impose retaliatory measures on imported Thai goods. The request stems from their dispute in DS371, “Thailand — Customs and Fiscal Measures on Cigarettes from the Philippines”.

Thailand, at the start of the meeting, said it could not accept the adoption of the meeting agenda without the removal of the Philippine request for DSB authorization to suspend concessions against  Thailand under Article 22.2 of the Dispute Settlement Understanding as a result of the DS371 proceedings

Thailand said the Philippine request was not proper because of ongoing appellate proceedings involving  earlier Article 21.5 compliance panel reports. Thailand further said the Philippines’ request highlighted the urgent need to resolve the Appellate Body crisis.

The Philippines responded that it had parallel rights to both Article 22.2 and  Article 21.5 and could suspend concessions against  Thailand. The Philippines noted the long period of time that had lapsed since it initiated the dispute in 2008, and since the DSB had adopted the original panel and Appellate Body reports in 2011. The Philippines said that Thailand was preventing the Philippines from exercising its full rights. It said Thailand’s request to remove this issue from the meeting agenda should be rejected.

The DSB chair, Ambassador David Walker (New Zealand), then proposed suspending the meeting to allow more time for consultations between parties. He said he will reconvene the DSB on 5 March at the latest.

Source: wto.org

 

120/ Ukraine launches safeguard investigation on polymeric materials

28 FEBRUARY 2020

On 28 February 2020, Ukraine notified the WTO’s Committee on Safeguards that it initiated on 25 February 2020 a safeguard investigation on polymeric materials.

In the notification Ukraine indicated, among other things, as follows:

“Address for correspondence: Ministry for Development of Economy, Trade and Agriculture of Ukraine; M. Hrushevskogo str. 12/2, Kyiv, 01008; Phone: +38044 253-93-94, +38044 253-74-69, +38044 253-63-71; Fax: +38044 226-31-81; e-mail: meconomy@me.gov.ua.
Information contact point: Phone: +38044 596-67-48, e-mail: tradedefence@me.gov.ua.”

“Notice of the Decision of the Interdepartmental Commission of Foreign Trade of 21 February 2020 No. SP 440/2020/4411-03 is published in “Uryadovuy Courier” as of 25 February 2020, No 36 (https://bit.ly/392Fzec).”

“Within 20 days from the notice publication, the Ministry for Development of Economy, Trade and Agriculture of Ukraine carries out registration of interested parties and considers the requirements for conducting of hearings. In investigation initiation enquiry it is necessary to indicate: name, juridical address, fax and telephone number, e-mail and name of contact person, type of activity (producer, importer, exporter, etc.). The recommended form of request for registration as an interested party of an investigation is provided in the annex to the notice.”

Further information is available in G/SG/N/6/UKR/17.

What is a safeguard investigation?

A safeguard investigation seeks to determine whether increased imports of a product are causing, or is threatening to cause, serious injury to a domestic industry.

During a safeguard investigation, importers, exporters and other interested parties may present evidence and views and respond to the presentations of other parties.

A WTO member may take a safeguard action (i.e. restrict imports of a product temporarily) only if the increased imports of the product are found to be causing, or threatening to cause, serious injury.

Source: wto.org

 

121/ Conference addresses emerging research in intellectual property and innovation

28 FEBRUARY 2020

Some 150 academics, researchers and policy makers gathered on 27-28 February in Jakarta, Indonesia, to discuss emerging research challenges and opportunities in intellectual property (IP) and innovation. The discussion took place as part of the second IP & Innovation Researchers of Asia (IPIRA) Conference, jointly organized by the World Intellectual Property Organization (WIPO), the WTO, Universitas Indonesia, Texas A&M University and the University of Geneva.

The Conference featured empirical and analytical research from academics with a focus on IP law and policy issues in Asia, and in particular, challenges for policy makers in developing countries throughout the region. Opening remarks and plenary discussions emphasized the role of social and intellectual capital to promote innovation and entrepreneurship, the impact of IP law and policy on the innovation and dissemination of technology, and how IP and innovation scholarship influences public policy making.

Participants discussed their research on emerging issues in areas such as artificial intelligence, technology transfer, biotechnology, geographical indications and development, copyright in the digital environment, data protection, public health and trade secret protection. See the full programme.

The IPIRA Conferences are modelled on the IP & Innovation Researchers (IPRE) Conference, which coincided with the Geneva-based WIPO-WTO Colloquium for IP Teachers in 2018 and 2019.

The WIPO-WTO Colloquia for IP Teachers are among the two organizations’ flagship technical assistance programmes. As part of a practical capacity building exercise, WIPO and the WTO  regularly publish a selection of contributions from colloquia participants in the IP Colloquium Research Paper Series.

The WIPO-WTO Colloquia for IP Teachers and the IPIRA and IPRE networks form part of the WTO’s long-running collaboration with the academic community, with the purpose of facilitating academia’s contribution to the IP and trade policy making process.

Source: wto.org

 

122/ Viet Nam, India seek to bolster bilateral investment, trade

28 February 2020

India is a major trade partner and investor of Việt Nam and the two countries should spare no efforts to soon realise the target of bringing bilateral trade to US$15 billion.

This statement was made by Minister of Planning and Investment Nguyễn Chí Dũng during talks with his host Indian Minister of State for External Affairs Shri V. Muraleedharan on Tuesday, as part of his working visit to the country.

At the talks, Dũng spoke highly of India’s increasing position in the international arena and affirmed that the Việt Nam-India relations are thriving, voicing his hope that bilateral ties will be strengthened in the future.

Regarding India’s financial and scientific-technology potential, Dũng said that the nation’s investment in Việt Nam remains modest, adding that Việt Nam hopes to welcome more Indian investors in the future.

For his part, V. Muraleedharan pledged that India will closely collaborate with and support Việt Nam as the country is holding the role of the ASEAN Chairman in 2020 and a non-permanent member of the United Nations Security Council in 2020-21.

The host also affirmed that Việt Nam is a key partner in Southeast Asia and playing the role of a pillar in India’s Look East Policy.

The two officials also took note of existing difficulties in bilateral trade. That India adjusts floor rate and raises import tariffs on Viet Nam’s cashew nuts and imposes restriction on incense stick imports has caused difficulties for Vietnamese firms and producers, Dũng noted.

Meanwhile, V. Muraleedharan expressed his hope that Việt Nam will open its doors to Indian fruits and create favourable conditions for its pharmaceutical companies.

A roundtable between the Vietnamese minister and Indian businesses was held the same day, drawing nearly 100 leading firms including Essar, HCL and Mahindra.

The India visit of the Vietnamese Minister was made at the invitation of the National Institution for Transforming India (NITI Aayog). While in India, Dũng joined working sessions with leaders of Ministry of Commerce and Industry, Confederation of Indian Industry (CII), and visited Indian tech giants of Nasscom and Wipro.

Source: VNS

 

123/ FIVE THINGS YOU DIDN’T KNOW ABOUT GLOBAL PAYMENTS

28 February 2020

Market disruption is increasing in the USD 1 trillion global financial services industry, according to the recent “McKinsey on Payments” report (McKinsey & Company, 2020). Demand for better products and services and increased digitization are putting banks under pressure. Here are five top standards that underpin the global financial system and support the industry’s transformation.

1. FINANCIAL MESSAGING

First published in 2004, ISO 20022, Financial services – Universal financial industry message scheme, is widely recognized as the standard of the future. Representing international consensus on the way financial messages are structured, it is a key tool in the transformation of the global financial system, underpinning such technologies as instant payment platforms. It features eight parts covering aspects such as XML Schema generation, message transport characteristics and registration.

2. INTERNATIONAL BANK ACCOUNT NUMBERS (IBAN)

International bank transfers work quickly and easily thanks to the universally agreed way of defining and coding international bank account numbers. This is due to ISO 13616, Financial services – International Bank Account Number (IBAN), the ISO standard that specifies everything required to facilitate the processing of data internationally in data exchange, both in financial environments and across other industries.

The standard comes in two parts covering the specifications for the number itself as well as the role, responsibilities and requirements of the Registration Agency responsible for the registry of IBAN formats.

3. BUSINESS IDENTIFIER CODES (BIC OR SWIFT CODE)

One of the most widely used codes in the financial world is the BIC code, defined by ISO 9362, Banking telecommunication messages – Business identifier code (BIC). Originally known as the “bank identifier code”, its name was changed to “business” to cover financial or related institutions when the standard was revised in 2009.

For over 30 years, the standard has been used to identify banks and financial or related institutions to facilitate automated processing of information for financial services. ISO designated the Society for Worldwide Interbank Financial Telecommunication (SWIFT) as the BIC registration authority, hence the names BIC and SWIFT codes are often used interchangeably.

4. MARKET IDENTIFICATION CODES (MIC)

Trading on international stock exchanges such as the NASDAQ is possible thanks to MIC codes defined by ISO 10383, Securities and related financial instruments – Codes for exchanges and market identification (MIC). Used to identify securities trading exchanges, the MIC code has wide acceptance in the financial world, including the Financial Information eXchange (FIX) protocol, which is an electronic communications protocol for the international real-time exchange of information related to securities transactions and markets.

The standard specifies a universal method of identifying exchanges, trading platforms, regulated or non-regulated markets and trade reporting facilities as sources of prices and related information in order to facilitate automated processing.

5. MESSAGING IN SECURITIES

Before standardization, messaging used in transactions between financial institutions was ad hoc and inconsistent, resulting in inefficiencies and the risk of errors. The two-part ISO 15022, Securities – Scheme for messages (Data Field Dictionary), sets out the principles necessary to provide the different communities of users with tools for designing message types to support their specific information flows. This results in greater efficiencies, more clarity and less risk.

The two-part standard covers message design rules and guidelines and the maintenance of such data and messages. Updates to the standards have focused on improving straight-through processing capabilities and reducing the time taken to deliver new message types to the marketplace.

Source: iso.org

 

124/ DG Azevêdo: Weeks ahead are “window of opportunity” for WTO members to shape future of multilateral rule-making

2 MARCH 2020

At a meeting of the full WTO membership on 2 March, Director-General Roberto Azevêdo set out his views on how members could position themselves to deliver agreements on fisheries subsidies and other issues at the 12th Ministerial Conference (MC12) in June. He urged them to determine what can — and cannot — realistically be agreed by then, and to do the preparatory work needed to present ministers with a manageable agenda of issues to resolve at MC12.

In his remarks, the Director-General said that delivering concrete results at the 8-11 June Ministerial Conference in Nur-Sultan, Kazakhstan, would bolster the WTO’s credibility and position it to keep fostering predictability in the global economy in the years to come.

He identified three baskets of issues that members were considering in the run-up to MC12. The first, multilateral, basket is headed up by fisheries subsidies, along with agriculture, development, and the future of two moratoria concerning electronic commerce and non-violation complaints relating to intellectual property rights. The second basket comes from the joint statement initiatives that groups of members have been taking forward on issues such as investment facilitation for development, services domestic regulation, micro-, small and medium-sized enterprises (MSMEs) and e-commerce. The third basket pertains to institutional issues and proposals for improving our regular work in areas such as transparency, committee operations, small economies and dispute settlement.

DG Azevêdo warned delegates that in Nur-Sultan, ministers would not have the time to debate and resolve differences on such a wide array of issues.

“Past experience shows us that leaving inadequately prepared issues on the table for ministers to determine is, more often than not, a recipe for getting nothing,” he said. “Making the agenda for MC12 manageable would enhance our prospects for success there.”

“This means determining now – well in advance of the conference – which issues can realistically be harvested with ministerial input in Nur-Sultan.

“Let us save ministerial engagement for where we need it most – and where it will be most productive. For example: getting an agreement on fisheries subsidies.”

The Director-General announced that, along with the incoming General Council Chair, he would continue consulting with members on the process for determining the shape and content of the document to capture outcomes from MC12. “As with previous ministerials, I am committed to a preparatory process that is transparent and open, where all members will have the opportunity to put forward their views,” he said.

He urged members to focus on the substance, rather than the formal status, of any MC12 outcome document. “Success [at MC12] will be measured by the substance of what we deliver there. If we deliver new rules that curb overfishing and foster greater certainty and inclusiveness in the 21st century global economy, it doesn’t matter what the outcome document is called. If we don’t deliver any of these things – well in that case the document’s name won’t matter, either.”

On the subject of WTO reform, DG Azevêdo urged members to “focus on concrete deliverables”.

“Even without seeing eye to eye on every aspect of the future of the multilateral trading system, you can agree on meaningful updates to the WTO rulebook, and the way in which we do our work. These improvements would help governments, businesses, workers and consumers better adjust to changing economic conditions. This is all part of the reform process.”

The Director-General reiterated that MC12 would be a critical landmark for the future of this organization.

“The weeks ahead are a window of opportunity. It is within your hands to prove that multilateral rule-making is still feasible. To deliver outcomes that will help prepare the WTO for the next 25 years.

“I believe this is within reach. But only if we all take an open-minded, creative and compromise-oriented approach.”

Source: wto.org

 

125/ Checking the special preferential import tariff rate of AHKFTA

02 March 2020

To implement the list of special preferential import tariffs of Vietnam under AHKFTA, the General Department of Vietnam Customs requested provincial customs departments to check dossiers, identify origin and special preferential import tariff rates of AHKFTA.

In order to implement the ASEAN – Hong Kong, China Free Trade Agreement (AHKFTA) in the 2019-2020 period which come into effect, the Government promulgated Decree 07/2020/NĐ-CP on the issuance of the list of special preferential import tariffs of Vietnam.

Accordingly, imported goods from member countries of AHKFTA face conditions which are stipulated in Article 4 of Decree 07/2020/NĐ-CP, customs declarants would declare tax code of B23 in the import declaration in order to enjoy special preferential import tariff rates of AHKFTA.

The General Department of Vietnam Customs instructed that, for imported goods openning customs declarations from June 11, 2019 to the day before the effective date of Decree No. 07/2020/ND-CP, satisfying the following conditions to enjoy the special preferential import tax rate of AHKFTA as specified in Article 4 of Decree No. 07/2020/ND-CP and having paid tax at a higher rate, the customs declarants should make additional declarations to apply AHKFTA tariff rates and they would be handle to return the overpaid tax amount in accordance with Clause 2, Article 5 of Decree 07/2020/ND-CP and Clause 64, Clause 65 Article 1 of Circular 39/2018 / TT-BTC.

Accordingly, the declarants need to submit a document about requesting handling of overpaid import tax as stipulated in form 27/CVĐNHNT/TXNK issued together with Circular 39/2018/TT-BTC, attached with documents certifying origin of goods under the AHKFTA form and transport documents proving that goods are imported into Vietnam from member countries which is specified in Clause 2, Article 4 of Decree No. 07/2020/ND-CP.

In case goods were transported directly from an exporting member country to an importing member country or the goods are transported through one or more different member countries or through a non-member country, the goods must satisfy the conditions as stipulated in Clause 3, Article 4 of Decree No. 07/2020/ND-CP and lodge additional documents proving that goods were directly transported through non-member countries as prescribed in Clause 3, Article 8 of the Circular 38/2018/TT-BTC of the Ministry of Finance regulating the origin of import and export goods.

The General Department of Vietnam Customs requested provincial Customs Departments to carry out the inspection of dossiers and determine the origin of goods; special preferential import tariff rates of AHKFTA according to the provisions of Decree 07/2020/ND-CP and guidance documents. In case imported goods fully satisfy the conditions for enjoying preferences, customs declarants should handle the overpaid tax amounts in accordance with regulations.

The General Department of Vietnam Customs also requested customs units to instruct the branches and enterprises to synchronously implement the regulations.

Source: VCN

 

126/ Import-export turnover increases slightly, Vietnam continues to have trade deficit

02 March 2020

Import-export turnover in the first half of February has increased compared to the previous 15 days in January.

According to the General Department of Customs, Vietnam’s total import-export value in the first 15 days of February reached 19.23 billion USD, up 32% compared to the period of January 1, 2020 and up slightly by 3.3 % compared with the same period last year.

In the first half of this month, thecountry continued to have a trade deficit of 30 million USD. Accumulated from the beginning of the year to the end of February 15, Vietnam witnesseda trade deficit of 410 million USD.

Regardingexports, in the first 15 days of the month, Vietnam reached 9.6 billion USD, up 30% compared to the second half of January 2020 (due to a week of the Lunar New Year Holiday). Of which, FDI enterprises recorded6.78 billion USD.

Accumulated to the end of February 15, Vietnam’s export turnover reached 27.86 billion USD, up 5.4% over the same period in 2019. Particularly, FDI accounted for 18.5 billion USD.

About import, the turnover in the first 15 days of February reached 9.62 billion USD, up 33.7% compared to the first half of January. Of which, the import turnover of foreign-invested enterprises reached 5.8 billion USD.

Accumulated to the end of February 15, Vietnam’s import turnover reached 28.27 billion USD, down 1.3% compared to the same period last year. Of which, the import value of foreign-invested enterprises reached 16.5%.

In the early days of 2020, Vietnam’s import and export activities were greatly affected not only from the Tet holiday, but also because ofthe Covid-19 epidemic.

Although the Government, ministries, branches and localities are making great efforts in fulfilling the dual objective of effectively combating epidemics and ensuring the facilitation of import and export activities at the same time, however, the actual trade still faces many difficulties due to partners, especially the Chinese market,focusing on epidemic control.

Meanwhile, China is Vietnam’s largest trading partner with bilateral turnover for two years (2018 and 2019) surpassing 100 billion USD, and China is the market providing many materials for domestic production and also a major consumer market of Vietnamese goods, especially agricultural products.

Source: VCN

 

127/ Korea donates CHF 350,000 to enhance developing countries’ trading skills

3 MARCH 2020

The Republic of Korea is contributing KRW 417 million (approximately CHF 350,000) to help developing and least-developed countries (LCDs) participate effectively in global trade negotiations. This donation to the WTO’s DDA Global Trust Fund will finance training workshops for government officials to help them deepen their understanding of multilateral trade rules and strengthen their negotiating capacity.

Over 2,800 workshops have been organized since the fund was created in 2001.

Director-General Roberto Azevêdo said: “Korea’s donation will help developing countries and LDCs voice their positions more effectively in trade negotiations. This will in turn contribute to economic growth and sustainable development in their countries. I thank Korea for its generosity.”

Korea’s Ambassador to the WTO, the UN and other international organizations in Geneva, Ji-ah Paik, said: “Korea strongly supports the WTO’s efforts to enhance the trading capacities of developing countries and LDCs. We hope that through our contribution, they can achieve further economic development by actively participating in international trade.”

Overall, Korea has donated approximately CHF 6 million to the DDA Global Trust Fund over nearly 20 years.

Source: wto.org

 

128/ DDG Wolff: An update of multilateral trade rules is needed to increase their relevance

3 MARCH 2020

Speaking at an event in Washington DC on the future of the WTO on 3 March, Deputy Director-General Alan Wolff said that more intensive engagement is necessary to ensure that the benefits of the multilateral trading system continue and are increased. He continued: “Humanity has done great things when challenged to do so. This is one of those times of both being tested and being presented with enormous opportunities for improved international trade relations.” This is what he said:

I am very enthusiastic about the future prospects for the multilateral trading system embodied in the World Trade Organization.  The open question is the time frame for getting there.

In the meantime, while there is much greater uncertainty for trade, the multilateral trading system has not collapsed, nor has it been marginalized.  In fact, despite all the headlines of additional tariffs and the several hundred bilateral and regional trade agreements, 80% of world trade continues to be nondiscriminatory, as provided for in the foundational first principle and requirement of the multilateral trading system.

It is important to understand both what we have and what is needed going forward.  If you boil the WTO agreements down to their essence, you discover that they are about fairness.  Anyone who produces something that can marketed internationally, as a farmer, worker, or a business, whether that business consists of one person or tens of thousands of workers, will face a more level global playing field because the WTO exists.  If you are an innovator, there is a better chance that your intellectual property will be respected.

The WTO’s rules cover 98% of world trade.  They provide a level of increased predictability, without which investment would not occur.  The system is designed to reward hard work, capital investment and ingenuity.  Market forces are to determine competitive outcomes.  That is the ultimate promise; it is in the interests of all that that promise be made good.

This does not imply that the system cannot be improved.

We live in a different world than the one in which the rules were put into place, whether in 1947 when the multilateral trading system was founded or in 1995 when stewardship of the system was entrusted to the WTO.

An update of the rules is needed to increase its relevance  —

  • To adapt to the world of digital commerce.
  • To meet shared environmental objectives
  • To assure that small and medium enterprises can participate more fully in trade
  • To be clear that women are not disadvantaged.

Two of the most widely supported current near-term objectives of the WTO’s members are: (1) to curb the fisheries subsidies that are laying waste to the oceans’ food resources and depriving coastal fishermen of their livelihoods, and (2) to assure that digital commerce can expand without harmful government interventions.  These initiatives must succeed, and ultimately they will.

The WTO is the product of eight extensive rounds of multilateral trade negotiations that took place over seven decades.  It exists because of leadership of some and cooperation of many.  They shared goals and objectives.  It rests mainly on trust, trust that obligations will be lived up to, that rights will be respected.

These are times of both testing of the bonds that exist and working to expand the areas of agreement.   The negotiating function of the multilateral trading system must be fully restored to what it was during the half century that followed the Second World War.  A fully functional dispute settlement system must be rebuilt, with legitimacy accepted by all, as the system that was provided for in the WTO agreements no fully longer exists.

Fresh evidence as to the current value of the WTO is that 23 countries and customs territories seek to join it, and that all 164 current Members of the WTO seek to improve it.

There is more work to be done to keep the system vibrant.  For world commerce, it would be a gross understatement to say that the current times are merely interesting.  Humanity has done great things when challenged to do so.  This is one of those times of both being tested and being presented with enormous opportunities for improved international trade relations.

The chief burden placed on international trade does not consist of visible tariffs.  Economists estimate that moving a product from factory or farm across an international border to customers abroad faces obstacles that are on average the equivalent of a 270% tariff.  That must be changed.

It will take a more concerted effort by all to shorten the time to success.  That is where businesses and other private stakeholders can make a positive difference.  More intensive  engagement is necessary to ensure that the benefits of the multilateral trading system continue and are increased. That which exists today that is good can no longer be taken for granted, and that which is not good can no longer be tolerated.  What can be achieved is in no small part your hands.

Source: wto.org

 

129/ Members endorse Curaçao’s bid for WTO membership

3 MARCH 2020

WTO members agreed at a meeting of the General Council on 3 March 2020 to establish a working party for the accession of Curaçao to the organization. Situated in the southern part of the Caribbean Sea and with a population of 163,000 people, Curaçao is a constituent country and separate customs territory within the Kingdom of the Netherlands.

“This is a historic moment for Curaçao, which has been long in the making,” said Caryl M.C. Monte, Curaçao’s Chief Negotiator for WTO accession. In his statement to the General Council after WTO members accepted Curaçao as a new observer, Mr Monte underlined the long commitment to the multilateral trading system of his country and its predecessor, the Netherlands Antilles, which was a participant in the General Agreement on Tariffs and Trade (GATT) and its multilateral negotiating rounds.

“We believe in, and will actively support, the role of the WTO in organizing and nurturing effective global economic governance, especially where it concerns the interests of small island developing states within the WTO,” Mr Monte said. “Our fundamental aspiration is to directly participate in the global trade dialogue and seek mutual economic progress by connecting to other trading partners, especially in our Caribbean region, based on a transparent set of multilateral and plurilateral trading and other commercial rules, administered on the basis of equality and irrespective of the size of the member countries represented in this esteemed world body.”

WTO Director-General Roberto Azevêdo said: “I would like to take this opportunity to congratulate Curaçao on the members’ acceptance of its application to accede to the WTO, so let me welcome Curaçao to this room. I wish Curaçao the best for a swift and successful accession process. I can also assure you that you can count on the Secretariat’s full support to make this a reality as soon as possible.”

The request for separate WTO membership was fully supported by the Kingdom of the Netherlands. “Curaçao has been part of the original membership of the Kingdom of the Netherlands to GATT, and subsequently WTO, and with the request for membership as a separate customs union, Curaçao underlines its commitments to the WTO,” said the Dutch representative at the General Council. The Kingdom is constituted of four countries, three of which are situated in the Caribbean, namely Aruba, Curaçao and Sint Maarten, and one in Europe, the Netherlands.

Source: wto.org

 

130/ Event marks 25th anniversary of the WTO’s Agreement on Rules of Origin

4 MARCH 2020

Trade diplomats, technical experts and business representatives gathered at the WTO on 4 March to mark the 25th anniversary of the Agreement on Rules of Origin — one of the WTO’s key accords covering trade policy measures which increasingly impact everyday cross-border trade. The event took place on the margins of the WTO’s Committee on Rules of Origin (CRO).

Rules of origin are the criteria used to define where a product is made, and are thus critical in determining what the import conditions of an imported good, such as the tariff on an imported good, should be. They are also important for implementing other trade policy measures, including trade preferences, quotas, anti-dumping measures and countervailing duties.

The event provided an opportunity to review the conditions that led to the adoption of the Agreement on Rules of Origin and the initiation of work in the CRO, which first met in April 1995. Participants also identified other international and multilateral instruments that deal with rules of origin and discussed the effectiveness and gaps of these instruments.

The fact that the harmonization of non-preferential rules of origin has not been completed and the fact that there are no other international instruments regulating the design and use of rules of origin means that an increasing number of governments use their own sets of rules, leading to multiple and divergent rules being applied.

As a result of this situation, business representatives present at the event discussed  the costs of complying with diverse and multiple origin requirements and suggested priorities for work in the Committee in the years ahead.

Uma Shankari Muniandy, the Singaporean chair of the CRO, told the anniversary event that rules of origin have become increasingly important — and complicated — with the rise of global production chains and the proliferation of bilateral and regional trade agreements.

“Regional and global value chains fragmented the production of goods and made the determination of origin a more complex exercise,” she noted. “Preferential trade agreements have thrived, creating a spaghetti bowl of multiple regimes of rules of origin.”

“Consumers have increased expectations about their ability to trace the origin of the goods they purchase,” she continued.  “In fact, the list of developments putting more pressure on rules of origin and origin requirements could go on and on.”

The Agreement on Rules of Origin requires WTO members to ensure that their rules of origin are transparent; that they do not have restricting, distorting or disruptive effects on international trade; and that they are administered in a consistent, uniform, impartial and reasonable manner.

Ms Muniandy noted that the agenda of the Agreement has expanded greatly since it was concluded, covering the negotiation of harmonized non-preferential rules of origin and issues such as transparency, compliance costs and advance rulings.

The efforts to negotiate global harmonized non-preferential rules of origin — those which apply in the absence of any trade preferences — has not delivered final results, although several speakers noted that the intensive work which went into the effort did result in provisional agreement on rules for thousands of tariff lines and has proven beneficial for efforts outside of the WTO.

Stefan Moser, a former Swiss diplomat who previously chaired the CRO, said the work on harmonized non-preferential rules “was not in vain. Many of these rules found their way into free trade agreements and drew from the lessons learned at the WTO.”

In the meantime, committee efforts have focused on implementing two key rules of origin decisions intended to benefit the WTO’s poorest members — the 2013 Bali Ministerial Decision on Rules of Origin for LDCs and the 2015 Nairobi Ministerial Decision on Rules of Origin for LDCs. These decisions set out multilateral guidelines for rules of origin that WTO preference-granting members apply to their non-reciprocal preference schemes for least-developed countries (LDCs), making it easier for LDCs to qualify for preferences and better utilize market access opportunities available to them.

Assan Touray, First Secretary with the Mission of The Gambia to the WTO, praised the CRO as “one of the most productive committees I’ve been in,” with LDCs playing an active role in its deliberations.

Darlan Martí, Secretary of the CRO with the WTO Secretariat, said these decisions have “generated momentum in the identification of best practices” and serves as an example of how the work of WTO committees in general can be reinvigorated to help serve the needs of its members.

Nevertheless, the business community cautioned that much work remains on making rules much easier for traders to understand and comply with in general.

“For years we have been talking about the need to make rules of origin simple,” said  Martin Van Der Weide with the International Chamber of Commerce. “If I compare the situation 20 years ago and today, it’s not simpler; in fact the situation is becoming more complex, with more trade agreements and more procedures to follow.”

The event was streamed live on the WTO website.

Source: wto.org

 

131/ Vietnamese SMEs are ready before EVFTA takes effect

04 March 2020

The Free Trade Agreement between the European Union and Vietnam (EVFTA) was officially ratified on February 12, 2020. The strong commitments in terms of open markets within the EVFTA framework will boost Viet Nam – EU trade relations, furthering the expansion of Viet Nam’s export markets.

Since the negotiation is still ongoing, many Vietnamese small and medium sized enterprises (SMEs) have carefully prepared beforehand, which is shown through their participation at the Biofach organic trade fair in Germany from 12 – 15 February 2020. Those SMEs are confident that their products have met European standards and ready to take advantage of opportunities offered by the EVFTA.

Eleven Vietnamese SMEs had their chance to take part in such an accredited trade fair. Their pavilion was hosted by the Vietnam Organic Agriculture Association (VOAA) and funded by the Trade Promotion Agency (VietTrade). Six out of 11 Vietnamese SMEs have been supported by the BioTrade Vietnam project, funded by European Union (BioTrade EU project) in seedlings, cultivation techniques, product manufacturing process and certification application in European standards for many years.

Mr. Van Luong Pham, Director of Helvetas Vietnam, Representative of BioTrade EU project said: “Since 2014, when the EVFTA was not been signed, we have been sponsored by the European Union and the Swiss government in implementing BioTrade projects on agriculture to access European market. The project’s approach is to improve the capacity of farmers and SMEs in market access and product certification.”

Consumers in Europe as well as in Viet Nam are increasingly interested in healthy products in which the production process does not affect the soil, water and air environment. Regarding the law, the European Commission progressively requires more stringent criteria for sustainable exploitation and biodiversity conservation. The BioTrade EU project helps raise the awareness of Vietnamese SMEs on that requirement.

“We see that the European market does not merely require product quality, but they also care about its contribution to the society and the community. Therefore, we want to prove our social responsibilities in environmental, social, human and climate change issues,” said Ms. Lisa Nguyen, General Director of Vietnamese Staranise-Cinnamon Company, Vinasamex.

At Biofach 2020, Vietnamese SMEs introduced their agricultural products which were all certified with European organic standards.

Mr. Phuc Mich Ha, President of VOAA commented: “In my opinion, European organic standards are the most rigorous organic standards, but Vietnamese enterprises are ready for it. The proof is that they all bring their fully-certified products by European organic standards to this trade fair.”

The BioTrade EU project is the key to help Viet Nam’s economy open the door to international markets. The project provides support at the household level, guiding farmers to produce on a small scale but the product quality remains high as European market requirements. This is a way to help Vietnamese farmers and SMEs utilise their strengths in the European market, while the FTAs between the EU and other Southeast Asian countries have not been signed.

Source: Helvetas Vietnam – BioTrade EU Project/ VNS

 

132/  WTO members consider EU request for panels on Indian tech tariffs, Colombian duties on fries

5 MARCH 2020

At a meeting of the WTO’s Dispute Settlement Body (DSB) on 5 March, WTO members considered two requests from the European Union for dispute panels to examine India’s tariffs on certain high-tech goods and Colombia’s anti-dumping duties on frozen fries from Belgium, Germany and the Netherlands.

DS582 India — Tariff Treatment on Certain Goods in the Information and Communications Technology Sector

The European Union presented its first request for a panel to rule on India’s import tariffs on certain information and communications technology (ICT) goods. The EU said India had taken the commitment not to apply import duties on ICT products but that for several years India has adopted measures to reinforce and regularly increase import duties on those products, up to 20 per cent.  The EU held consultations with India on the matter in May 2019 but failed to settle the dispute, prompting the EU’s request for a panel.  The EU said the value of its annual exports of concerned goods to India amounts to around EUR 400 million.

India said it was disappointed with the EU request, which seeks to take advantage of an error made by India when transposing its tariff lines to an updated Harmonized System (HS).  India has attempted to rectify the error and said that objections to this rectification and the initiation of a dispute by the EU were against the requirements to interpret and implement a treaty in good faith.  For this and other reasons, India said it was not in a position to accept the EU’s request for the establishment of a panel.

Japan and the United States said they shared the concerns raised by the EU regarding India’s tariffs.

The DSB took note of the statements and agreed to revert to the matter.

DS591 Colombia — Anti-dumping Duties on Frozen Fries from Belgium, Germany and the Netherlands

The European Union presented its first request for a panel to rule on Colombia’s anti-dumping duties on frozen fries from Belgium, Germany and the Netherlands. The EU said nearly all aspects of the investigation and proceedings leading to the duties were inconsistent with the WTO’s Anti-Dumping Agreement.  The EU said it had other systemic concerns, including Colombia’s publication of confidential import data.  Consultations held in January of this year failed to resolve the dispute, prompting the EU’s request for a panel.

Colombia replied that the request was premature as the parties had not exhausted all possible means to reach a mutual solution.  For this reason, Colombia said it was not in a position to accept the establishment of a panel.

The DSB took note of the statements and agreed to revert to the matter.

DS499 Russia — Measures Affecting the Importation of Railway Equipment and Parts Thereof

Ukraine said it welcomed the Appellate Body’s ruling in the dispute, which was circulated on 4 February.  The resolution of this dispute is of importance for all WTO members as it addressed for the first time the application of certain provisions under the WTO’s Agreement on Technical Barriers to Trade, in particular Article 5.1 regarding conformity assessment procedures.  In general, Ukraine said it was pleased the panel and Appellate Body rulings upheld most of the claims made by Ukraine and rejected most of the arguments advanced by Russia.

Russia also said it welcomed the ruling.  Although it had concerns with some of the Appellate Body’s findings, the overall examination of the dispute underlined the importance of the Appellate Body in the WTO and the need for members to resolve the Appellate Body crisis.  Russia said that it has already brought all the measures at issue in the dispute into conformity with its WTO obligations.

The US said the case raised important systemic concerns, including the Appellate Body’s failure to respect the 90-day deadline for issuing rulings and the fact one member of the division continued to serve after his term of service had expired.  For this reason, the US said the ruling was not an Appellate Body report under Article 17 of the WTO’s Dispute Settlement Understanding (DSU) and not subject to the “negative consensus” rule under Article 17.4, whereby rulings are adopted unless all WTO members in attendance reject the ruling.  The US said it considered the report to be adopted on a positive consensus basis since no member was objecting to its adoption.

The EU and China rejected the US arguments and said the Appellate Body ruling must be subject to the usual negative consensus adoption procedures under Article 17.4 of the DSU.

The DSB took note of the statements and adopted the Appellate Body report and the panel report as modified by the Appellate Body.

DS505 United States — Countervailing Measures on Supercalendered Paper from Canada

Canada said it welcomed the panel and Appellate Body rulings in the paper dispute, in particular the findings that the US application of adverse facts available when respondents fail to disclose information deemed to be “other forms of assistance” in countervailing duty investigations constitutes “ongoing conduct” that could be challenged in WTO dispute settlement.  This practice results in the US applying artificially inflated countervailing duty rates.  Canada added that it looked forward to discussing with the US the deadline for the US to comply with the ruling.

The United States said it had serious concerns about the Appellate Body ruling that, in its view, resulted in the ruling not being a valid Appellate Body report.  Specifically, the US said the document was not provided and circulated on behalf of three valid Appellate Body members.  For two of the members, the US said both continued working on the appeal after their respective terms as Appellate Body members had ended without the DSB’s authorization to continue.

For the third member, the US said the member was not eligible because she was not “unaffiliated with any government” as required under Article 17.3 of the DSU. Specifically, the US said the member is affiliated with the government of China because she currently serves as vice president of an academy which is a public institution under Chinese law and subordinate to China’s Ministry of Commerce.  None of this information was disclosed to WTO members when she was nominated as an Appellate Body member, the US said, adding that it notified its concerns to the WTO Director-General and the DSB chair on 31 January when it became aware of the matter.  The issue is compounded if WTO members consider the substance of the dispute case in question, which involves an alleged measure that Canada noted was also at issue in eight other US countervailing duty investigations, seven of which involve China.

China said it was surprised with the US statement and described the accusations against the Appellate Body member as groundless. The institute in question has been registered as an independent legal entity since 1997, and the fact that it receives partial government support does not necessarily compromise the independence of the staff working for it; in fact, many universities, think tanks and research institutes in many WTO members are partially or wholly funded by the government, China said. The member in question went through the Appellate Body selection procedures scrutinized by the whole membership, and all members including the United States agreed to her appointment. No WTO member has ever questioned her independence and impartiality, either in the selection process or during her service as an Appellate Body member, China said.

The EU said there was no question of the report not being adopted under the DSU’s usual negative consensus rules and that, under the Rules of Conduct, any allegations of an Appellate Body member’s violation of the obligations of independence, impartiality or confidentiality, or potential conflicts of interest,  should be submitted on a confidential basis to the standing Appellate Body for it to take any appropriate action.

Canada said it agrees with the United States that serious allegations have been raised but pointed out that there is a process to deal with such allegations.  Canada said there was no doubt that the Appellate Body report in DS505 was a valid Appellate Body report subject to the negative consensus rule for its adoption.

The DSB took note of the statements and adopted the Appellate Body report and the panel report as modified by the Appellate Body.

DS371 Thailand — Customs and Fiscal Measures on Cigarettes from the Philippines

The Philippines said it regretted the DSB’s work was delayed the previous week as a result of a disagreement between the Philippines and Thailand on this agenda item and thanked the DSB chair for resuming the meeting.  The Philippines said it objected to Thailand’s characterization of the Philippines as acting unilaterally by requesting the right to retaliate against Thailand under Article 22.2 of the DSU.  A number of rulings issued by panels and the Appellate Body have confirmed that the Thai measures in question are not consistent with WTO rules and that Thailand has failed to comply.

The Philippines said its actions fully respect the earlier understanding it reached with Thailand regarding further proceedings in the dispute and the Philippines is acting within its WTO rights.  The Philippines noted that the chair, in his consultations with the two parties, suggested other means to resolve the dispute, and the Philippines said it was open to this option, including the possibility of arbitration under Article 25 of the DSU.  If Thailand fails to accept some solution to complete Thailand’s pending appeals promptly, this matter will inevitably come back before the DSB for a decision; the Philippines will not accept an indefinite suspension of its exercise of its Article 22 rights, it said.

Thailand said it was compelled to block the adoption of the DSB agenda when this meeting first convened on 28 February because the Philippines’ request raises broad systemic issues about the status and future of the dispute settlement system.

Thailand said the Philippines was presenting an inaccurate picture of the situation.  The present situation is straightforward, Thailand said — appeals proceedings regarding the compliance panel rulings are still ongoing, and the Philippines does not seem to believe it is bound by the earlier procedural agreement it concluded with Thailand.  If the Philippines no longer wishes to respect the agreement, then it must accept that, under the DSU rules, it should have submitted its request for the right to retaliate 30 days after Thailand’s deadline to comply, which was more than seven years ago.  Thailand said the real problem was not any individual dispute but the Appellate Body crisis, which has imposed significant challenges on the rules-based system, including with respect to pending disputes, such as DS371.

The chair said that without prejudice to the rights of both parties, he would suspend consideration of this item and continue to consult with Thailand and the Philippines on the matter.

China added that both sides entered into their procedural agreement in good faith but were now confronted with a situation resulting from the extraordinary situation with the Appellate Body, another example of the serious consequences resulting from its absence.

Appellate Body appointments

Mexico, speaking on behalf of 120 members (Bangladesh later added its support), introduced once again the group’s proposal to start the selection processes for six vacancies in the Appellate Body.  The increasing and considerable number of members submitting the proposal reflects a common concern over the current situation in the Appellate Body that is seriously affecting its workings as well as the workings of the overall dispute settlement system against the best interest of members, Mexico said for the group.

Twenty members then took the floor.  As in previous meetings, most of those speaking reiterated the importance of resolving the impasse over the appointment of new members as soon as possible and reestablishing a functioning Appellate Body.  Many said it was the obligation of members to begin the process, as Article 17.2 of the DSU requires members to fill Appellate Body vacancies as they arise.

The United States took the floor towards the end to repeat that it was still not in the position to support the proposal and that the systemic concerns that it previously identified remain unaddressed.  It referred to the report issued last month by the US Trade Representative’s office detailing the manner in which the Appellate Body strayed from the limited role that members have assigned it.

DS234: United States — Continued Dumping and Subsidy Offset Act of 2000

The European Union reiterated its request that the United States cease transferring anti-dumping and countervailing duties to the US domestic industry, arguing that every such disbursement was a clear act of non-compliance with the rulings on this matter. Canada supported the EU statement, while the United States said it has taken all actions necessary to implement the ruling.

DS316: European Communities and Certain Member States — Measures Affecting Trade in Large Civil Aircraft: Implementations of the recommendations adopted by the DSB

The United States said that once again the European Union has failed to provide a status report to the DSB concerning dispute DS316. The European Union repeated that the matter is subject to new compliance proceedings and thus there was no obligation on the EU to submit a status report.

Surveillance of implementation

China presented its first status report regarding its implementation of the WTO ruling in DS517, “China — Tariff Rate Quotas for Certain Agricultural Products”.  China and the United States reached an agreement last July under which China was given until 31 December 2019 to comply with the ruling, a deadline which was later extended to 29 February 2020.

China said it has adopted a number of measures in response to the ruling and that, as of 31 December, it was fully in compliance with WTO rules.  The United States said it was not in a position to agree with China’s compliance claim and that it looked forward to continued engagement with China on information it had requested from Beijing regarding allocation of quotas and on China’s administration of its tariff rate quotas.

China presented a further status report with regards to the implementation of the WTO ruling in DS511, “China — Domestic Support for Agricultural Producers”. China has until 31 March to comply with the ruling.

The United States presented status reports with regard to DS184, “US — Anti-Dumping Measures on Certain Hot-Rolled Steel Products from Japan”,  DS160, “United States — Section 110(5) of US Copyright Act”, DS464, “United States — Anti-Dumping and Countervailing Measures on Large Residential Washers from Korea”, and DS471,“United States — Certain Methodologies and their Application to Anti-Dumping Proceedings Involving China”.

The European Union presented a status report with regard to DS291, “EC — Measures Affecting the Approval and Marketing of Biotech Products”.

Indonesia presented its status reports in DS477 and DS478, “Indonesia — Importation of Horticultural Products, Animals and Animal Products”.

Other business

Australia and Indonesia announced that they had reached an agreement on the reasonable period of time for Australia to implement the panel report in DS529 “Australia — Anti-Dumping Measures on A4 Copy Paper”.  The reasonable period of time will expire on 27 September 2020.

Next meeting

The next regular meeting of the DSB will take place on 30 March.

Source: wto.org

 

133/ LDCs seek strengthened mandate for Committee on Rules of Origin

5 MARCH 2020

Least developed country (LDC) members called for a decision at the WTO’s upcoming Ministerial Conference in June to strengthen the mandate of the Committee on Rules of Origin (CRO) by setting clearer obligations for preference-granting members to monitor the impact of their rules of origin on LDC imports and to simplify their qualifying requirements. At a meeting of the CRO on 5 March, members also discussed a joint proposal for enhancing transparency in non-preferential rules of origin.

Rules of origin are the criteria used to define where a product is made and are important for implementing other trade policy measures, including preferences in favour of developing countries and LDCs. WTO members adopted the 2015 Nairobi Decision on Preferential Rules of Origin for LDCs which set out for the first time multilaterally agreed guidelines to facilitate LDC exports that qualify for preferential market access granted by WTO members. Five years later, LDC members said the time has come to acknowledge that, with few exceptions, implementation of the Decision is lagging by preference-granting members.

According to a WTO Secretariat paper presented to the committee in May 2019, LDCs are often unable to fully use preferences even when their exports are subject to simple origin requirements. For example, 82% of imports of fruits, vegetables, and plants by preference-granting members from LDCs do not receive any tariff preference, despite being eligible for such treatment.

Tanzania presented a paper (G/RO/W/194) summarizing the several submissions to the CRO by the LDC Group since 2015 which  identify reforms on rules of origin that preference-granting members should undertake to make the use of trade preferences more effective, as well to shed light on aspects of rules of origin that have benefitted not only LDCs but also the international trading community.

The LDC Group said that the mandate of the CRO should be strengthened not only by setting clearer obligations and simplifying requirements in line with the Nairobi Decision, but also by establishing a work programme as the basis for effective participation by both Geneva and capital-based experts in the Committee meetings. To reach this objective, the LDC Group said it will engage in the coming months with preference-granting members to develop appropriate language to be submitted to ministers when they meet on 8-11 June in Nur-sultan, Kazakhstan, for the 12th WTO Ministerial Conference.

In addition, during the meeting, the European Union updated members on the implementation of its Registered Exporters (REX) scheme, which replaced the previous system of certifications of origin issued by governments with self-certification by registered exporters. The REX system has been applied since 1 January 2017 in the Generalized System of Preferences (GSP) scheme of the European Union by exporters in beneficiary countries, as well as exporters in the EU, Norway, Switzerland and Turkey, for the purposes of bilateral cumulation. It is also applied in those four members for re-consignment and/or replacement of proofs of origin.

The Russian Federation also presented its latest notification describing new preferential rules of origin for LDCs, which includes regulation of the terms and procedure for the application of the Eurasian Economic Union’s (EAEU) Common System of Tariff Preferences, a list of developing and least developed country beneficiaries, a list of preferential goods, and the EAEU rules of origin for developing and least developed countries.

Enhancing transparency in non-preferential rules of origin

Members once again discussed a joint proposal for enhancing transparency in non-preferential rules of origin, which aims at introducing a template to notify rules of origin used in the application of most-favoured-nation (MFN) treatment and other non-preferential commercial policy instruments, as well as any other practices with respect to certification of origin for non-preferential purposes.

The proposal had broad support by members which acknowledged the potential benefits of the template, considering that non-preferential rules of origin cover a significant portion of trade and apply to all WTO members. However, some members asked for further clarification and posed additional questions about the proposal. The chair of the Committee, Ms. Uma Shankari Muniandy of Singapore, will hold further consultations to address the new concerns raised.

25 years of the CRO

The chair updated members on the event held on 4 March to mark 25 years of the first meeting of the Committee on Rules of Origin. Ms Munaindy stressed that the Agreement on Rules of Origin and the CRO “were the result of hours and hours of negotiations, which then led to hours and hours of negotiations and discussions over the past 25 years.”

She invited members to visit the dedicated webpage where the programme, all presentations made and video recordings of the session are available, and to share all these materials with colleagues in capital. “The Secretariat prepared a rich programme with substantive presentations. A number of interesting messages and recommendations came out of this event and I would like to ask delegations to reflect about some of these messages,” she added.

Source: wto.org

 

134/ VN posts trade deficit of $176 million in two months

05 March 2020 

Việt Nam reported an estimated trade deficit of US$176 million in the first two months of the year, according to the General Statistics Office of Vietnam (GSO).

The domestic economic sector posted a deficit of $3.94 billion while the foreign-invested sector (including crude oil) grossed a surplus of $3.76 billion.

The GSO said that total export revenue during January-February picked up 2.4 per cent year-on-year to $36.92 billion despite the impact of the COVID-19 epidemic, partly thanks to Samsung’s export of its new mobile phone model S20.

Products with high export value included telephone and spare parts ($6.9 billion, up 2.3 per cent); electronic products, computers and components ($5.4 billion, up 26.7 per cent); machinery and equipment ($3 billion, up 19.6 per cent); and footwear ($2.7 billion, up 3 per cent).

Meanwhile, export revenue of several farm produce fell, such as seafood ($921 million, down 17.7 per cent); coffee ($497 million, decreasing 9.8 per cent), vegetables and fruits ($481 million, falling 17.4 per cent); cashew nut ($315 million, dwindling 19.3 per cent); and pepper bean ($81 million, dropping 18.8 per cent). Rice is an exception, earning $372 million, up 20.5 per cent.

The US remained the largest importer of Việt Nam, splashing $9.8 billion on Vietnamese commodities, surging 19.6 per cent from the same time last year.

Revenues from exports to China increased by 3.7 per cent to $4.8 billion and to Japan by 8.9 per cent to $3.2 billion while the value of exports to the EU and ASEAN dropped by 7.7 per cent to $5 billion, and 9.3 per cent to $3.5 billion, respectively.

During the period, Việt Nam’s import revenue inched up 2.4 per cent to $37.1 billion, with high-value imports including electronic products, computers and spare parts ($8.6 billion); equipment, tools and components ($5.3 billion); and telephones and components ($2.1 billion).

Việt Nam imported $10 billion worth of products from China in the two months, falling 0.4 per cent from a year ago. It spent $4.5 billion on goods from ASEAN, $2.8 billion on goods from Japan, $2.1 billion on EU products and $2.1 billion on US goods.

Source: VNS

 

135/ PM, Gov’t Advisory Group aim to turn HCM City into int’l financial centre

05 March 2020

Prime Minister Nguyễn Xuân Phúc has asked his Government Advisory Group to submit a document by April 30 outlining necessary steps to turn HCM City into an international financial centre.

Dr Trần Du Lịch, member of the Government Advisory Group, said that HCM City was a gateway to major financial centres and capitals of ASEAN countries.The idea to turn the city into a regional and international financial centre is not new, but would be an essential part of the National Economic Strategy to 2030, he added.

The growth of the financial market, particularly in HCM City, has not been consistent and the dependence on the banking system for capital has been significantly distorting the financial market, he said.

Key characteristics of international financial centres include deep, liquid and sophisticated capital market, as well as competitive tax and regulatory regimes designed to attract foreign investment in financial services.

Lê Hồng Giang, director of Investment Strategy Fund Tactical Global Management, said the legal framework for financial centres must be clear.

Financial services have become more reliant on technology, so the nature of a financial centre will shift to a hi-tech centre, he said. “This will prove to be a challenge for existing centres but an opportunity for new financial centres.”

Deputy PM Vũ Đức Đam highlighted the city’s achievements in socio-economic development, which has made the city a destination for many firms across the world.

“HCM City will continue to aim for sustainable growth by improving its competitiveness and growth quality through healthy economic restructuring,” he said. “The city will also ensure a favourable business environment for enterprises, and encourage start-ups, innovation and smart-city measures.”

Though HCM City accounts for only 9.36 per cent of the national population, it contributes 14 per cent to the country’s export value and 27 per cent to State revenue.

Source: VNS

 

136/ US remains Vietnam’s largest export market in first two months

05 March 2020

The US was the largest export market of Vietnam in the first two months of 2020 with export revenue of US$9.8 billion, an increase of 19.6% over the same period last year, according to the General Statistics Office (GSO).

The EU was the runner-up with export revenue of US$5 billion, down 7.7%. China came in third with export revenue of US$4.8 billion, up 3.7% over the same period last year.

ASEAN, Japan and the Republic of Korea were also among the leading export markets of Vietnam during the two-month period.

The data from the GSO showed that despite negative impacts from the Covid-19 epidemic, Vietnam has remained on an upward trend in import and export revenue, thanks in part to Samsung’s export of their new phone, the Galaxy S20, in February.

Vietnam’s total import and export revenue was estimated to have reached US$74 billion in the first two months of this year, up 2.4% against the same period last year. Of the total, export revenue was reported at US$36.9 billion, an increase of 2.4%, and import revenue was posted at US$37.1 billion, up 2.4% over the corresponding period last year.

Several export items posted high export revenue including phones and components at US$6.9 billion (up 2.3%), electronics, computers and components at US$5.4 billion (up 26.7%), and garments and textiles at US$4.5 billion (down 1.7%).

In the January-February period, some products saw high import revenue such as electronics, computers and components at US$8.6 billion (up 17.1%), machinery, equipment and components at US$5.3 billion (down 3.7%) and phones and components at US$2.1 billion (up 17.2%).

Source: NDO

 

137/ Việt Nam looks to build ASEAN community by 2025

05 March 2020

Việt Nam is strongly committed to completing the role of ASEAN Chair in 2020, promoting the ASEAN community and foreign affairs as well as improving the working way of ASEAN.

Vietnamese deputy minister of foreign affairs, Nguyễn Quốc Dũng, made the statement at the opening ceremony of the ASEAN Senior Officials’ Meeting (ASEAN SOM) in the central city on Wednesday.

He said the ASEAN SOM was the second activity this year, and it focused discussions on achievements of a retreat of foreign ministers of the ASEAN (AMM Retreat) in Nha Trang in January.

Dũng, who chaired the ASEAN SOM, said the meeting also discussed plans and preparations for the 36th ASEAN Summit from April 8-9, and the ASEAN-New Zealand Commemorative Summit on April 9 to be held in Đà Nẵng.

At the opening ceremony, the deputy minister also confirmed that Việt Nam was a safe destination for all visitors, and measures were taken in prevention and monitoring of the novel coronavirus, or Covid-19.

“Don’t worry. We carried out all preparations for ensuring safety and health for all participants at the meeting,” he stressed.

Participants at ASEAN SOM also expressed support for initiatives and priorities proposed by Việt Nam in the year of chairmanship as well as plans for ASEAN Community development in 2025 and ASEAN after 2025.

Soonthorn Chaiyindeepum, deputy permanent secretary of Thailand’s Foreign Affairs Ministry, highly appreciated the preparations by Việt Nam at the ASEAN SOM.

He said Việt Nam has been doing well in stopping Covid-19 from spreading.

Chaiyindeepum also expressed his hope that Việt Nam would host ASEAN meetings successfully in the role of ASEAN chairmanship this year.

Participants also discussed the implementation of the ASEAN Charter, the co-operation of sub-region and the Mekong region as well as improving women’s role in building the ASEAN Community.

Following the ASEAN SOM, the 9th ASEAN Co-coordinating Council Working Group Meeting (ACCWG) and ASEAN Joint Consultative Meeting (JCM) will continue from March 5-6.

Việt Nam has chosen the theme ‘Cohesive and Responsive’ for the ASEAN Chairmanship 2020.

The ASEAN SOM drew the participation of 10 ASEAN member countries and deputy secretary of ASEAN.

Source: VNS

 

138/ EVFTA – important solution to achieve growth targets: minister

06 March 2020

The EU-Vietnam Free Trade Agreement (EVFTA) is a new stride in the country’s integration process and also an important solution to achieve growth targets of the industry and trade sector amid adverse developments in the global environment.

The EU-Vietnam Free Trade Agreement (EVFTA) is a new stride in the country’s integration process and also an important solution to achieve growth targets of the industry and trade sector amid adverse developments in the global environment.

Minister of Industry and Trade Tran Tuan Anh made the remark at a meeting in Hanoi on March 4 that discussed preparations for the EVFTA implementation as this deal is expected to take effect this July.

He stressed that to reap good implementation results, organisations and agencies of the whole political system, especially the industry and trade sector, need to engage in the work.

Luong Hoang Thai, Director of the ministry’s Multilateral Trade Policy Department, said the EU will finish relevant procedures at the European Council on March 12 and be ready for the agreement enforcement. As it had actively drafted documents for the implementation before the EVFTA was submitted to the European Parliament, the agreement could be carried out immediately.

Meanwhile, Vietnam has also completed much work in this regard, he noted, adding that the Ministry of Industry and Trade (MoIT) has submitted a dossier on the EVFTA ratification to the Government, and the Government’s Office has asked the Ministry of Justice to coordinate with other ministries and sectors to consider legal documents that need to be issued or amended to implement the EVFTA.

Thai said to accelerate the ratification, the MoIT should step up working with the Government’s Office, the President’s Office and the National Assembly’s Committee for External Relations to finish the dossier seeking ratification and serve legislators’ verification of the EVFTA and adoption consideration.

The EVFTA, along with the EU-Vietnam Investment Protection Agreement, was ratified by the European Parliament on February 12.

The two documents were signed in Hanoi on June 30 last year, featuring intensive, extensive and comprehensive commitments covering economy, trade, investment and sustainable development issues.

The EVFTA, in particular, is hoped to create a major push for Vietnam’s exports and help diversify the country’s export markets./.

Source: VNA

 

139/ ISO BRINGS GENDER TO THE FOREFRONT ON INTERNATIONAL WOMEN’S DAY

6 March 2020

Sunday 8 March is International Women’s Day. In the spirit of celebrating the next generation of women and girl leaders, the United Nations’ theme is “I am Generation Equality: Realizing Women’s Rights”. It’s a call to action for everyone to push for complete gender equality. ISO is helping to advance the agenda with a number of gender action initiatives.

Launched in 2019, the ISO Gender Action Plan outlines five priority areas that focus on collecting data, creating a network to share best practice, and raising awareness of standards in support of gender equality and women’s empowerment.

As a Gender Champion, ISO Secretary-General Sergio Mujica explains: “We, at ISO, recognize that International Standards are essential tools toward reducing inequalities, creating greater sustainability and encouraging inclusive economic growth, all of which largely contribute to the United Nations Sustainable Development Goals, including SDG 5 (Gender Equality).”

With gender equality and women’s empowerment being key to achieving all 17 Sustainable Development Goals, multiple efforts are underway within ISO to mobilize gender action initiatives. An International Workshop Agreement (IWA) on women-owned businesses will be held later this year. The IWA aims to increase accessibility for women business owners to public and private procurement opportunities, give access to capacity-building programmes and incentive schemes, and reduce certification costs for supplier diversity programmes. The IWA is being organized by SIS, the ISO member for Sweden, in collaboration with the International Trade Centre (ITC).

Society has come a long way since the first International Women’s Day over a hundred years ago. Yet, looking ahead, there are still barriers that need breaking. Applying a gender lens to standardization work means addressing specific needs for women and girls, which in turn will help to develop more gender-responsive and -inclusive standards for everyone. Ultimately, addressing gender responsibilities will lead to transformative change and a more equal world overall.

For more updates on ISO gender initiatives throughout the year, be sure to follow on TwitterFacebook and LinkedIn. Join the conversation with #ISOGenderAction.

Source: iso.org

 

140/ DG Azevêdo on Women’s Day: WTO has important role to play in promoting gender equality

6 MARCH 2020

At an event at the WTO on 6 March 2020 celebrating International Women’s Day, Director-General Roberto Azevêdo highlighted the organization’s role, both as a global trade authority and an employer, in making gender equality a reality. He reported on efforts undertaken so far and introduced new initiatives

Good morning everyone.

Let me start by wishing you all a happy International Women’s Day.

I am pleased to join you today. This event has become a highlight in the Secretariat’s calendar. So let me thank everyone involved in organizing it, in particular Anoush, Monica and Ninez.

Promoting women’s empowerment and gender equality is a moral imperative as well as an economic one.

I am also convinced — and the facts back me up on this — that concrete steps by governments, businesses, international institutions, and also at the individual level can help us get there.

The 2020 International Women’s Day campaign puts a spotlight on this. This year’s theme is “Generation Equality: Realizing Women’s Rights”.

This is a call for action as far as I see it. It’s about rolling up our sleeves and making sure that we take concrete steps to promote equal rights and opportunities for everybody.

This year we are also celebrating the 25th anniversary of the Beijing Declaration and Platform for Action, a landmark initiative that placed women’s empowerment firmly on the international agenda. Through it, governments committed to act to promote gender equality across multiple fronts, including education, health, and in the economy.

The 2030 Agenda for Sustainable Development also emphasises gender equality as essential to build a better future. It rightly recognises that so long as inequalities persist between men and women, boys and girls, we cannot hope to eradicate poverty or achieve equitable growth.

We all have a role to play to make gender equality a reality — and that includes us here at the WTO.

Today, we have an opportunity to take stock of what has been achieved so far and to introduce some new initiatives on trade and gender.

Over the last few years, we have seen members put greater weight on gender issues.

The Buenos Aires Declaration was a decisive step, putting trade and gender on the WTO agenda like never before.

The declaration aims to promote women’s economic empowerment and tackle barriers that hamper their participation in global trade. To achieve this, it provides a platform to better understand the links between trade and women’s empowerment.

I am very proud that this happened during my tenure as Director-General. This is a welcome addition to our efforts to make trade more inclusive.

126 WTO members and observers have endorsed this initiative, and concrete work has been done to bring this debate to the fore.

This includes a number of workshops as well as research and joint studies dedicated to this topic.

Members have also started to integrate gender into their WTO work. Last year, 10 out of the 12 members who went through the Trade Policy Review process voluntarily included information on their gender-responsive trade policies. This is a 66% increase from the year before.

In line with requests from members, we have also incorporated trade and gender into our Technical Assistance Plan. Last March the WTO launched its first training module on trade and gender. Since then, 13 courses have been provided to government officials, including three at the regional level.

WTO members’ demand for these courses is growing, so we will continue our efforts on this front. By 2021, we plan to launch an e-learning module on this issue, which will be available to all WTO stakeholders.

The Buenos Aires Declaration has been a catalyst for all this work.

As a next step, the Declaration’s proponents are currently working on a report on its implementation to be presented to ministers at our 12th Ministerial Conference in Nur-Sultan, Kazakhstan. They are looking at ways to take this work forward, including by making the discussion more structured and prominent.

I am looking forward to hearing about members’ discussions in the run-up to MC12 and to see what they will be able to accomplish in Nur-Sultan.

But the WTO also has an important role to play as an employer.

We are moving towards greater gender balance within the WTO. I have been reporting regularly on how we have improved on this front.

Women represent approximately 54% of staff in the WTO. In roles classified as ‘professional’, however, women account for 45% of positions. But this share is rising — it was 31% in 1995 and 42% in 2014. So we are on the right track.

In addition, the WTO has been working to ensure gender diversity in all aspects of our work.

This includes the “Respect and Harmony @ WTO” e-learning programme. This training aims to build a more harmonious, harassment-free and inclusive workplace by creating awareness on appropriate conduct.

This is a priority for me and for the organization. Our approach to harassment must be an approach of zero tolerance. That’s why we made this a mandatory e-learning programme for all staff.

Human Resources has also held a number of events to build awareness, such as the Gender Forum Event, “Building Bridges”, leadership trainings for female staff, and a Barbershop forum for male staff.

I am also pleased to announce that today, we are introducing a new set of Gender Diversity Guidelines for Events and Speaking Panels.

We want to avoid all-male panels and ensure that the WTO Secretariat works to bring a more representative set of perspectives to the table. While we have been ensuring gender diversity in practice, this is the first time we are enacting a specific policy.

But, of course, ensuring gender equality is an ongoing effort. This is a process, a change in culture.

We are making progress. But we can do even better. This year I also intend to look more specifically into developing a gender policy for the Secretariat. We’ll continue looking at ways to foster an even more inclusive organizational culture.

Progress should not give way to complacency. Looking ahead, we must continue this work towards equal and inclusive societies — in all areas of our lives.

This includes work at the institutional level, ensuring that we have in place policies that promote respect and inclusiveness. It also includes action at the personal level, making sure that we uphold gender diversity in our everyday conduct.

Step-by-step, we can ensure that nobody is left behind. So let’s keep up the good work!

Thank you for listening. I hope you have an excellent discussion today.

Source: wto.org

 

141/ Reminder: NGO accreditation for Kazakhstan Ministerial Conference closes on 29 March

6 MARCH 2020

Non-governmental organizations (NGOs) should submit their requests for accreditation for the 12th Ministerial Conference (MC12) no later than 29 March 2020 (midnight, GMT).

MC12 will take place in Nur-Sultan, Kazakhstan, from 8 to 11 June 2020. A detailed explanation of the accreditation procedure is available here.

Online registration is available at https://eregistration.wto.org/mc12/ngo/register/en.

Individual online registration will only be available for those NGOs that have been accredited. Individuals should register no later than 17 May 2020 (midnight, GMT).

For more information, please contact us by email at: mc12-ngo@wto.org.

Source: wto.org

 

142/ DG Azevêdo and chair call on members to intensify fisheries subsidies negotiations

6 MARCH 2020

Director-General Roberto Azevêdo and the chair of the fisheries subsidies negotiations, Ambassador Santiago Wills of Colombia, called on heads of WTO delegations (HoDs) on 6 March to immediately prepare to make critical decisions as work to develop a consolidated text of an agreement gets under way. They said negotiations must be intensified for members to successfully conclude an agreement at the 12th Ministerial Conference (MC12) in Nur-Sultan in June.

With less than 100 days left until MC12 and expectations from the wider public for a successful conclusion, heads of delegations will need to come to the next meetings empowered to make difficult decisions and demonstrate flexibility, DG Azevêdo said at the closing meeting of the 2-6 March round of fisheries subsidies discussions in the Negotiating Group on Rules.

The chair said he will be circulating a combined, single text in mid-March as a starting point for the final phase of negotiations. As COVID-19 travel restrictions could make it difficult to organize meetings of senior officials from capitals in the coming months to weigh in on the text before MC12, the Geneva-based heads of delegations will be called upon more and more to lead the process, the chair said.

HoDs meetings have been scheduled for 11-13 March in order to intensify discussions on prohibiting subsidies that contribute to overcapacity and overfishing, one of the three pillars of the negotiations. The other two are prohibitions on subsidies for illegal, unreported and unregulated (IUU) fishing and subsidies for fishing of overfished stocks.

All members who took the floor at the meeting expressed their readiness to intensify their engagement in the negotiations and text-based discussions, although some requested that efforts should still be taken to engage capital-based senior officials.

During the week, members also had the opportunity to discuss submissions from the European Union, Japan, Korea and Chinese Taipei; the African, Caribbean and Pacific (ACP) Group; and Brazil on overcapacity and overfishing. They also heard India introduce its revised proposal on special and differential treatment for developing and least-developed countries (LDCs), and the LDC Group introduce a new proposal covering the three pillars and some cross-cutting issues. Members also discussed China’s simulation of possible subsidy reductions based on its own proposal and a facilitator’s draft text on IUU fishing.

Based on the mandate fixed under the Ministerial Decision from the WTO’s 11th Ministerial Conference, and the UN Sustainable Development Goal Target 14.6, negotiators are expected to secure an agreement in 2020 on  disciplines eliminating subsidies for IUU fishing and for prohibiting certain forms of fisheries subsidies that contribute to overcapacity and overfishing, with special and differential treatment for developing and least-developed countries.

Source: wto.org

 

143/ Vietnam proposes 13 priorities for 26th AEM Retreat

09 March 2020

A preparatory senior economic official’s meeting for the 26th ASEAN Economic Ministers’ Retreat (PREP-SEOM for the 26th AEM Retreat) was held in Da Nang city on March 8.

The highlight of the PREP-SEOM was 13 priorities proposed by Vietnam – the ASEAN Chair in 2020. The priorities will be discussed at the 26th AEM Retreat before reaching consensus for key tasks for implementation in this year.

The priorities are based on three main orientations, namely promoting connection and economic connectivity in ASEAN, enhancing partnership for peace and sustainable development and raising adaptation capacity and operational effectiveness of ASEAN.

Earlier on March 7, with the complicated developments of the COVID-19, the Vietnamese delegation proposed that ASEAN should jointly work to maintain the supply chain in the grouping, creating conditions for supporting material supply sources for businesses, particularly small and medium-sized enterprises, in the context that the COVID-19 outbreak has impacted both human health and the economy in the region and the world.

At the PREP-SEOM, participants discussed a series of important issues to report to the 26th AEM Retreat, such as discussing and adopting initiatives and priorities of Vietnam in ASEAN Chairmanship Year 2020; reviewing and reaching consensus on ASEAN’s annual priorities for this year; and seeking measures for existing problems in intra-ASEAN cooperation as well as collaboration between ASEAN and its partners, among others.

Over the past years, Vietnam has participated in building the ASEAN Economic Community (AEC) in an active, proactive and responsible manner, and promoting the implementation of commitments to form the AEC has been one of Vietnam’s top priorities.

Source: NDO/VNA

 

144/ Việt Nam to have trade defence early warning system by 2025

10 March 2020

Việt Nam plans to develop an early warning system for trade defence by 2025, aiming to promote sustainable exports.

The goal was approved by Prime Minister Nguyễn Xuân Phúc on Sunday.

Accordingly, by 2025, an information technology infrastructure system, analysis software and an e-portal would be completed to effectively operate the early warning system and to calculate dumping margins and analyse damages.

The early warning system would provide support to investigators and relevant agencies in the investigation and handling of trade defence cases in domestic and foreign markets, as well as handling disputes at the World Trade Organisation.

The system would contribute to protecting domestic production while actively avoiding and coping with trade defence lawsuits filed by foreign countries towards promoting sustainable exports.

The project will upgrade the database of imported products under investigation by Việt Nam or imposed trade defence measures, products likely to avoiding trade defence measures, and products which witnessed sudden increases in imports and could cause damage to domestic production.

This would help to enhance the investigation capacity and the efficiency of applying trade defence instruments.

Within the project’s framework, training would be provided to 1,000 employees working in the fields related to trade defence to improve the capacity of providing warnings and support to businesses.

To efficiently operate the early warning system and minimise negative impacts from the international integration process, Việt Nam would invest in the IT infrastructure system and complete the database of trade figures with major partners.

International cooperation would be boosted towards protecting legitimate rights of Vietnamese firms in import and export activities and closely watching compliance with international commitments of bilateral and multi-lateral trade agreements of domestic firms.

According to statistics by the Việt Nam Chamber of Commerce and Industry’s WTO Centre, there were 156 trade defence investigation cases initiated by 19 countries and territories on Việt Nam’s export products as of the end of 2019. In comparison, Việt Nam initiated 16 cases on imported products.

Source: VNS

 

145/ Russian firm proposes to export meat to Việt Nam

10 March 2020

Miratong Agribusiness Holding, one of the biggest meat suppliers in Russia, can export meats and materials for producing animal feed to Việt Nam, the company’s president Viktor Linnik said. 

The president was speaking during a working session with Minister of Agriculture and Rural Development Nguyễn Xuân Cường in Hà Nội late last week.

The company has inked contracts with Vietnamese partners to import some seafood products such as shrimp and tra fish and it is considering to purchase some other farm produce of Việt Nam like coffee and pepper in the time to come, Linnik said.

Minister of Agriculture and Rural Development Nguyễn Xuân Cường said as Việt Nam now needs to import a large quantity of pork, chicken, wheat and soya bean, the group can boost its exports to Việt Nam soon.

Cường said his ministry will create the right conditions for Miratong to provide Việt Nam with its agricultural products especially pork and beef and to import Vietnamese goods to serve Russian customers.

The minister will visit Russia next month accompanied by Vietnamese enterprises which have a great demand for Russian foods.

Cường said he hoped that via this trip, the two countries’ businesses can seek more co-operation opportunities and expand their export markets.

Việt Nam and Russia have signed seven cooperation documents on animal health, quarantine, plant protection and food safety.

Two-way trade value of farm produce amounted to about US$1.35 billion in 2018 from the previous level of only $500 million. However, the figure last year fell to $900 million due to the strong fall recorded in Russia’s export of wheat products and fertilisers to Việt Nam and a drop in Vietnamese exports of coffee, pepper and rubber to Russia.

Source: VNS

 

146/ BUILDING SUCCESS THROUGH PEOPLE

10 March 2020

It’s one thing to bring people on board, but how do you keep your employees motivated, productive and happy? ISO standards have the solutions to better manage your workforce.

It is often felt that recruitment is a lottery. You interview candidates, make a shortlist and finally settle on the best person for the job. Or so you think. Many top employees begin to lose interest when they feel that their skills and talents are being underutilized. That’s why empowerment through career coaching and training can bring your demotivated star players back to life.

The truth is, employees with a high level of engagement in the workplace are more likely to contribute to their employer’s success. Online training provider eduCBA reports that organizations that are successful in the 21st century value the skills of their people at 85 % of their total assets. People may be defined as “intangible assets” in that they are not easily accounted for in monetary terms like factories, machinery or products, yet it is those same people who will stay longer in their jobs and work actively to contribute to improvements in the systems and outputs of their organizations if they feel respected and supported.

Two ISO standards on people management have undergone an update to include useful steps on how the value of an employee can be enhanced, extended and nurtured. And it’s not just the content that’s had a facelift, the titles have been revised too. ISO 10015 has become Quality management – Guidelines for competence management and people development, and ISO 10018 is now Quality management – Guidelines for people engagement. Both International Standards present practical steps for managers and leaders to follow, adopt and measure. These standards are designed to be regularly referred to and not simply handed to employees in binders and then left to gather dust on the shelf.

ALIGNING THE EXPERTS

Published by ISO’s technical committee ISO/TC 176 (quality management and quality assurance), through its subcommittee SC 3 for supporting technologies, with input from technical committee ISO/TC 260 (human resource management), both standards are based on the process-oriented concepts of ISO 9001 for quality management. John J. Guzik, who serves as participating member on the US Technical Advisory Group (TAG) to ISO/TC 176, explains that the two standards rely heavily on the definitions found within ISO 9000:2015, Quality management systems – Fundamentals and vocabulary, but also make this information more accessible.

“When it comes down to people, quality management systems (QMS) are often considered as being technical or inaccessible guidelines for compliance that bear little reality to the work or products they are involved in making.” During his career, Guzik was a quality manager at two large US packaging firms. “ I worked my way up from the plant floor, so I understand how quality management systems need to be accessible and understandable to the employees, and not be a burden to them.”

ISO 10015 provides guidelines to help organizations and their managers design appropriate and timely training for their staff. With the ongoing quest for continuous improvement and rapid changes in markets, technology and customer needs, organizations must regularly evaluate what skills and competencies their people need if they are to remain successful and competitive today.

Fellow ISO/TC 176 member Mark Eydman agrees that the standard is a good fit for most organizations. “ISO 10015 is all about how to build competence and develop people to make quality management happen. It considers requirements at the organizational, team level and individual level. It adopts a Plan-Do-Check-Act cycle and is a perfect partner with ISO 10018.”

A GAME CHANGER

With more investors demanding that public companies invest in human capital and engagement, the arrival of ISO 10018 promises to shake up the marketplace for traditional engagement solutions. It works by establishing an accepted framework that focuses on better integration of engagement strategies across an organization.

ISO 10018 recognizes that it can be difficult encouraging staff to take up quality management systems and understand how they are relevant to their daily work. The standard includes guidelines on how to enhance people’s involvement and competence within an organization and feel a valued part of it.

Dr Ron McKinley, former Chair of ISO/TC 260 on human resource management, who worked primarily on ISO 10018, agrees that it accompanies ISO 10015 but with a greater focus on the people. “Organizations are nothing more than a collective of people. Without people designing the product, making the product and using the product, there is no organization.”

ENGAGED AND HAPPY

The term “people engagement” has been around for a couple of decades and is an oft used buzzword, yet many organizations and managers are not entirely sure what it means. ISO 10018 provides clear definitions on how it relates to employees in an organization and how to enhance their involvement and competence within that organization. “People engagement means much more than being present as an employee; it means making an active contribution, feeling genuinely valued and achieving quality outcomes for your organization,” Eydman says.

McKinley goes further, explaining that the term “people engagement” used to mean organizations trying to find out if their people at work were “happy”. Two decades ago, the notion was that happy people would work harder and make better products, resulting in happier customers. He observes that surveys were often conducted, and action plans written, but they tended to lack a strategic and systematic approach which meant that they did not necessarily encourage people to stay at an organization.

“ISO 10018 applies to everyone, not just employees. It’s an ʻenterpriseʼ or organizational approach that includes vendors, investors and customers. Defining ʻpeople engagementʼ means that all people who are actively involved in the organization are doing so in a positive way. By ʻpeopleʼ, we mean anyone who encounters that organization: vendors, customers, owners, investors, staff.”

For employees, engagement means that they should have some ownership of the issues that are relevant to their jobs within the organization. “If they liaise with vendors, then they should have input into assessing current vendors or selecting new ones. That way, people will have a vested interest in the organization and be allowed to assert a reasonable amount of control and endure less micromanagement.”

Engaged organizations will have well-thought-out ways of developing their staff. Their aim is to have people there for a career, not just a job. Successful organizations often provide opportunities for staff to move to different areas within the organization to learn new skills and enhance their expertise. “While management still ultimately decides on promotions and training, staff should be able to see that a career trajectory is achievable within the organization and that their development is encouraged and valued,” McKinley says.

EVALUATING SUCCESS

Several metrics can be used to measure the success of people engagement. Turnover, in ISO 10018, does not mean financial profit or loss, but staff attrition. The aim for all organizations is to lower this rate. When people leave, they take their knowledge with them. Recruitment and training costs organizations money and a loss of human capital can be difficult to replace or replicate.

Customer satisfaction is also important. Customers are stakeholders who are actively affected by the organization and can provide valuable information for service and product improvement, which ensures that they will keep returning. McKinley cites company call centres as a good measure of satisfaction because they are the first point of contact for customers experiencing problems with a service or product and provide opportunities for organizations to collect data. “This is commonly known as the ʻgrudge-buying industry’ that deals with unhappy clients, and endeavours to resolve their problems and leave them satisfied after they hang up the phone. Bonuses for staff can be offered on customer satisfaction levels and not the volume of calls received, so that staff feel valued for the personal service and skills they use.”

Staff competence and development should be a collective aspect of the organization and not just for specific individuals, Guzik points out. People need to see the connection between their current work and how further training can provide more opportunities within the organization. “If they see that their organization is investing in their skills through training and other career tracks, they will feel engaged.”

WHAT WILL WE LEARN?

With these ideals in mind, what can busy managers and business owners expect? Practical measures, solutions and achievable steps. ISO 10018 was written for an audience of managers and leaders who realize the importance of staff retention and engagement, but don’t necessarily know where to start. Eydman explains: “We came up with six key areas where we believe that, if leaders give them attention, they will achieve a higher level of people engagement within their organization. The first three – strategy, culture and leadership – are perhaps the key principles.”

ISO 10018 proposes that quality management can only flourish in a setting where leadership is being demonstrated; the “do as I do” instead of “do as I say” approach. Strategy is a simple planning process to achieve your vision. ISO 10018 shows that if you want people to undertake a quality-driven journey with you, then they must understand the path to get there and the destination.

“Culture is very interesting,” says Eydman, “as it defines the rules, beliefs and behaviours that operate within an organization. Essentially, this is what happens when managers and leaders aren’t looking. It works alongside leadership, as leaders set the example.” Therefore, the other three principles – training and development, knowledge and awareness, and improvement – are intended to show people that they are valued and connected to the organization.

NEVER TOO SMALL

Ultimately, both ISO 10015 and ISO 10018 are useful for any organization that employs more than two people. From small local businesses to large corporate conglomerates, the dynamics are the same, McKinley explains. “Internal issues include ensuring that management keeps all staff informed about issues that affect them; that there is a top-down, down-up and sideways flow of information from all levels of staff, effective liaison with customers, and a good relationship with vendors. All of these aspects result in customers receiving the quality product or service that they’re paying for.”

There is an added bonus. The QMS principles are applicable to other management systems. “While these guidelines were originally written for quality management systems, they can be applied to any management system such as environmental systems and occupational health and safety,” Guzik says.

And if that’s not reason enough, there are also the cost savings, according to McKinley. “Ultimately, the beauty of an ISO standard is that for a small company that cannot afford to hire a large consulting firm to do the work, they can buy this standard instead, apply the strategies and it will help them.”

Source: iso.org

 

147/ HOW MICROSOFT MAKES YOUR DATA ITS PRIORITY

10 March 2020

Privacy protection is a societal need in a world that’s becoming ever more connected. As requirements for data protection toughen, ISO/IEC 27701 can help business manage its privacy risks with confidence. Here, Microsoft opens up about protecting data privacy in the cloud.

Whatever business you’re in today, you’re in the data privacy business. This isn’t a problem that just affects chief data officers or IT security departments anymore. It’s a problem that spans across organizations affecting human resources, customer service representatives, and more generally anyone who comes into contact with personal data.

With the number of cyber-attacks against businesses on the rise, cybersecurity is a growing concern. The question then becomes : How can organizations manage people’s private information ? New privacy regulations introduced by governments in recent years, such as the European Union General Data Protection Regulation (GDPR) or the California Consumer Privacy Act, require companies to respond. But with different countries developing different regulations for data privacy, how can global corporations such as Microsoft ensure seamless data protection ?

The recently published ISO/IEC 27701Security techniques – Extension to ISO/IEC 27001 and ISO/IEC 27002 for privacy information management – Requirements and guidelines, helps companies manage their privacy risks for personally identifiable information. It can also help companies comply with GDPR as well as other data protection regulations. Drafted under the joint stewardship of ISO and the International Electrotechnical Commission (IEC), it is the world’s very first global privacy standard. Here, Jason Matusow, General Manager of Microsoft’s Corporate Standards Group, gives us the low-down on this groundbreaking standard.

ISOFOCUS: ISO/IEC 27701 IS THE FIRST PRIVACY INFORMATION MANAGEMENT SYSTEM STANDARD, OR PIMS FOR SHORT. CAN YOU TELL US A BIT ABOUT THE STANDARD? WHAT MAKES IT SO GROUNDBREAKING?

Jason Matusow: The first thing about ISO/IEC 27701 is that it’s an easy and efficient way to address the issue of spreading consistent data processing practices across an organization. Although cybersecurity and privacy are interrelated, in many organizations they are still treated as different projects. The smart move with ISO/IEC 27701 – and my compliments to the experts who developed it – was to attach the standard to the cybersecurity world via the ISO/IEC 27000 series on information security management systems, to which thousands of companies are already audited each year. By layering PIMS on top of that structure, the cybersecurity community in an organization can work together with the privacy community to establish data processing practices that encompass both security and privacy considerations.

PIMS takes into account the need to think about data protection holistically. In GDPR, like many other privacy laws around the world, there’s a requirement for companies to have a data protection officer. One of the big challenges for these people is how to create effective documentation; in other words, how do you work across a whole organization to establish evidence that you’re handling the data processing of information correctly? The PIMS process allows you to build out more comprehensive operations for privacy and then to establish documentation and behaviours that are represented externally.

There’s a prevailing dynamic in data privacy which is that everyone is very focused on the regulators. But the underpinnings of business are the business-to-business relationships – contracts. Microsoft has thousands of companies in its supply chain, and we are in the supply chain of thousands of other companies, so the representation of good data processing behaviours becomes a real question mark in that whole chain. What PIMS does is enable that evidence of good behaviour. Trust comes with verification, and that verification is based on good PIMS practices.

CAN THIS NEW STANDARD HELP COMPANIES ACHIEVE COMPLIANCE WITH THE GDPR, OR THE CALIFORNIA ACT, FOR EXAMPLE?

At this point in time, there is no standard that is identified as a representation of legal compliance for privacy, so there’s a lot of discretion right now in Europe as to how regulation is interpreted by companies, and that includes Microsoft. The standard isn’t about having a clear path that leads to legal compliance – that doesn’t exist today. It’s about strong practices, good hygiene, establishing responsible behaviours that are documented, that are repeatable and that have the ability to get better over time. Because one of the main things about a processing management system is its focus on continuous improvement.

It’s important to note that there is not one privacy law; there could be as many as 30 of them… GDPR, the California Act, and countries like Australia or Japan all have their own. One of the things that makes PIMS so interesting is that it embodies a consistent set of privacy practices (i.e. controls) that can be mapped against any privacy law.

TECHNOLOGY IS CONSTANTLY EVOLVING AND COMPANIES MUST ADAPT. DO YOU SEE ISO/IEC 27701 STILL BEING USEFUL IN A COUPLE OF YEARS’ TIME?

The fact that technology moves on means you can never say “we’ve got it sorted and therefore we can hold still”. It just doesn’t work that way. Every business is evolving every day. A standard like ISO/IEC 27701 creates the opportunity for a consistency of approach while being flexible enough to adapt to the changes that happen underneath.

An important notion to master is the privacy impact assessment, which is a systematic process for evaluating the potential effects of your system on privacy. Although this is not a feature of the standard itself, ISO/IEC 27701 does have a requirement for a scope of applicability, where a company is called upon to measure the impact of its data processing in a given context. The standard then provides a series of controls to counteract that impact, which can be mapped against the law, either the GDPR specifically, or the Australia, Japan or California privacy laws. It’s the combination of these pieces put together that can get you across the line of responsible practices for data protection. Think of it as a journey, not a destination!

WHAT’S AT STAKE FOR MICROSOFT? WHY HAS IT BEEN SUCH A BIG SUPPORTER OF THE STANDARD?

That conversation starts essentially with our customers. The reality is that the standard allows the people who are working in cloud services, and using our technologies, to join forces with Microsoft, taking steps forward together and making assertions about good data management practices collectively. ISO/IEC 27701 plays that central role in building a harmonized conversation between organizations. It’s critical in the conversation you can have with regulators, but it’s really also about the business-to-business relationships.

PIMS is a valuable asset in the use of information technology in any business, so our primary interest has been in having the solid privacy approach that our customers need. The next step is about our own behaviours. But I will say this, our operations for privacy have reached well beyond the process to qualify for, let’s say, a PIMS audit at some point. That’s something we are committed to doing, and ISO/IEC 27701 is part of our audit process.

Microsoft has extended GDPR protections to all citizens in the world using our technologies. If we are going to do the essential engineering work and the ongoing improvements to make our systems respectful of citizens’ data, then we have to approach it in a constructive, holistic way. PIMS will be able to layer on top of that to put the practices we already have within the framework of a third-party audit.

WHAT DOES IT MEAN FOR A BUSINESS TO ADOPT ISO/IEC 27701? CAN YOU TELL US A LITTLE MORE ABOUT WHAT’S INVOLVED?

As I mentioned before, this standard builds on the ISO/IEC 27000 series, so PIMS involves taking that holistic route and accepting that it will require the engagement of an information security management system, which can later be extended to privacy. It’s about looking at your systems and processes, and then establishing controls. Think of a control as a prescriptive behaviour that you have committed to follow; in time, it will become a repeatable behaviour that you can then document.

That’s a job for the data protection officer whose primary responsibility is to make sure the company is adhering to its impact assessments. However, larger companies will ultimately call on an external compliance organization to help them think through all the systems they need. In a nutshell, though, the controls you put in place should span everything from the collection of data, use of data, disposal of data, how you handle data breaches, how you notify customers, and everything else that might be in that chain of thinking.

WHAT DOES THE FUTURE HOLD FOR MICROSOFT WITH REGARD TO STANDARDIZATION?

I will break that question down into two different concepts. First of all, not all standardization is the same. On the one hand, we have technical specifications like Bluetooth or Wi-Fi or other such protocols. These are done by Microsoft’s product groups on an as-needed basis. And within that space, one of the most interesting things to emerge over the last five years has been the massive growth in open source software. The way in which people are solving collaboration problems has not necessarily been in the traditional standards context, but via collaborative development in an open source context. That doesn’t mean standardization is going away, but the landscape is changing significantly.

On the International Standards side, the type developed by ISO and its partner organizations, the International Electrotechnical Commission (IEC) and the International Telecommunication Union (ITU), I think people are really looking at the growth of regulation and how standards act as “soft law” in relation to regulation. How does PIMS stand between the existing laws and the behaviours of an organization? You need something in between them and standards can play a central role in bridging the gap. They are particularly helpful in dealing with the diffusion of regulatory approaches, for example reconciling Australia’s privacy laws with those of the GDPR. So the incredibly important role that ISO/IEC 27701 can play is to act as a Rosetta stone between the different regulatory approaches.
It’s a very powerful thing!

Source: iso.org

 

148/ KEEPING UP WITH COLLABORATION

10 March 2020

Collaborating with business partners successfully is not just about talking to them when there is an issue to be resolved. Rather, it’s a long-term commitment and work ethos that fosters an environment of trust between organizations and people.

Imagine organizations around the world thriving together – it’s easy if you try. With today’s ever-changing business climates, companies can achieve more by collaborating. Collaboration can usher companies into success in a myriad of ways, but what exactly does it take for organizations to collaborate? And what is the real bottom line for business?

The world keeps changing, and big challenges call for big solutions. Climate action requires countries and industries to work together in order to lower carbon emissions by 2050. Fighting off large-scale conflicts compels everyone to cooperate. Upholding human rights and equality for all requires policy solutions from government sectors around the globe. One thing is clear: no one organization or individual can do it alone. And that is why collaborating is inevitable as a means of achieving the world’s most important goals.

From a business perspective, organizations will often seek partners that complement their capabilities to ensure that they meet the expectations of their stakeholders and, at the same time, gain access to new markets. Collaborating in business requires a commitment amongst parties to co-create opportunities that would lead to mutual and fair benefits for all. A recent study (2018 Global CEO Outlook) conducted by KPMG reports that global CEOs favour strategic alliances as the most important strategy to drive growth, making it an imperative for organizations to learn how to collaborate successfully.

However, successful collaborations don’t just happen overnight. While there is absolutely no iron-clad rule on how to collaborate, ISO 44001 presents a framework to assist an organization of any size, industry or region to develop its internal and external business relationships – opening doors for greater innovation, competitiveness and successful outcomes.

A MANAGEMENT SYSTEMS APPROACH

ISO 44001Collaborative business relationship management systems – Requirements and framework, provides the overall components of a management system for business relationships as well as operational process requirements. It bridges the gap between organizational cultures to form a more robust partnership or alliance, provide confidence to participants and lay a strong foundation for collaboration. The International Standard features an eight-stage life cycle to ensure a disciplined approach to collaborative relationships which includes operational awareness, value creation, knowledge, internal assessment, partner selection, working together, staying together and exit strategies.

David Hawkins, Chief Operating Officer at the Institute of Collaborative Working and Chair of ISO/TC 286, the technical committee for collaborative business relationship management that developed the standard, says the publication of ISO 44001 has established a recognized framework on which to build and sustain collaborative working: “The need for organizations to work together has perhaps never been more critical in today’s economic environment, to meet the demands of the market and growing global competition and the impact of technology and in particular communications and transparency of markets. We see today a marketplace where success is more about what we bring to the market rather than simply what we produce as individual organizations,” he says.

Collaborating is easier said than done, and perhaps some of the key factors organizations might consider are: What would be the scope and boundaries of the collaboration? What would be each partner’s role in it? And how do we monitor and measure its success ? These points are all very relevant and important to bear in mind, as even the most strategic alliances often involve organizations with very different cultures. Parth Amin, Head of the US Delegation of the same ISO technical committee, says that despite increased awareness of the importance of strategic alliances in the corporate world, most organizations still lack the knowledge and management capabilities to realize the full potential of collaboration: “This is where ISO 44001 comes into the picture. For the very first time, there is now an International Standard that any organization can use as a strategic tool in making collaborative relationships and alliances work,” he says.

The standard is applicable to both private and public organizations of all sizes and follows the same overall structure as other ISO management system standards (known as the High-Level Structure), making it easier for any organization using multiple standards to integrate it into its management systems. Since its publication in 2017, organizations worldwide that implemented the standard have reported that, with a systemic approach to collaboration through ISO 44001, relations are strengthened.

BREAKING NEW GROUND TOGETHER

When something works really well, it’s quite easy to assume that you can always make it even better. That was the vision of NATS, the UK’s leading provider of air traffic control services, when it collaborated with Leidos, a global leader in information technology, engineering, and science solutions and services.

With London Heathrow having some of the busiest airport runways in the world with an average of 1 300 aircraft landings and take-offs per day, it faces a big challenge on disruptive impact of weather – particularly strong winds affecting airport operations and mainly its passengers. Together, NATS and Leidos have pioneered an innovative solution, enhanced Time-Based Separation (eTBS), a technology which separates arriving aircraft by time instead of distance, in order to cut delays caused by strong winds.

Through this collaboration, the results were multifold: not only were the aircraft landing delays addressed and reduced by 62 %, it also allowed two additional aircraft landings per hour average, which is equivalent to extending Heathrow’s operating day by over 30 minutes, with a bonus on overall cost savings of EUR 23 million a year. This paved way for NATS and Leidos to deliver valuable operational resilience, enhanced on-time performance and a better passenger experience. Adrian Miller, Head of Supply Chain Partnerships & Collaboration at NATS, says: “We expanded our thinking on where we could be more together as partners, and in order to find new business opportunities, we had to fully collaborate with Leidos.”

Early last year, the NATS/Leidos partnership, alongside Heathrow Airports Limited, was recognized at the annual Jane’s Air Traffic Control Awards in Madrid for its contributions to enhancing the capacity and safety of its stakeholders. Following the success of the eTBS implementation in Heathrow, the same technology and partnership is now set to benefit Toronto Pearson Airport in Canada and Schiphol Airport in the Netherlands – a concrete testament that collaborative business models, when managed successfully, can help companies reach greater heights and be replicated by other players in the same industry and beyond.

THINK WIN/WIN

Let’s keep it real though: Regardless of the type of model, the process of forming an alliance is not easy. Most collaborations fail because of competitive self-interest, lack of trust and absence of shared purpose among partnering organizations. A study conducted by the Chief Marketing Officer (CMO) Council and the Business Performance Innovation (BPI) Network reports that while 85 % of companies view partnerships and alliances as essential to their businesses, only 33 % have a formal and clear strategy for collaboration, and almost half of them still report failure rates of 60 % or more. To fully collaborate means that all parties should be willing to look beyond and see what more could be achieved together, in order to realize that the whole is truly greater than the sum of its parts.

A collaborative relationship can only produce desired outcomes if both parties meet the expected levels of performance and demonstrate the right behaviours. According to Miller, what made the NATS and Leidos collaboration truly successful is that they created a 50/50 balanced partnership wherein both organizations will benefit equally. “We recognized that the best way to ensure a successful collaboration is to guarantee mutual benefits that are fair and shared. We maintain a focus with our partners to ensure that our collaboration delivers the results all of us expect,” Miller noted.

A SHARED PURPOSE

Competition is growing. Consumers make smarter decisions, influencing the way organizations should behave, both ethically and in terms of sustainable responsibility. The business world is forever changing to meet these challenges. Despite new technologies opening up new avenues for organizations, at the core of these will be the ever-present need to ensure that the relationships between them and the individuals involved will have a significant effect on stability, resilience and performance. “In this turmoil, one factor remains constant: relationships are a core ingredient for successful business,” Hawkins adds.

What organizations need is a structure that supports their alliance strategy. ISO 44001 endorses that approach, with its structured framework designed to help organizations identify potential key partners, develop shared policies and processes, and promote the culture and behaviour required to establish successful collaborative relationships and to drive continual improvement.

Collaboration is at the core of every successful business. Whilst every business relationship is unique and there is no “one size fits all” solution for everyone, ISO 44001 provides a roadmap that will enable organizations to consider the implications and benefits of collaborative working. Collaboration is not a solution in itself but more of a means towards a common goal driven by a shared purpose. Just keep in mind: if you want to go fast, go alone; but if you want to go far, better go together!

Source: iso.org

 

149/ STANDARDS MEAN BUSINESS IN THE LATEST ISOFOCUS

10 March 2020

If you’re a business, you already know the multitude of challenges you’re up against in today’s business world. That’s where our standards come in. Whether you want to monitor and improve your brand, toughen up your IT security, or keep your employees motivated, productive and happy, using ISO standards can help.

The March/April 2020 issue of ISOfocus highlights the fastest-growing trends in business, including how to tackle today’s complex and interconnected challenges. It features everything from collaborative business relationships to new payment solutions for seamless transactions to brand dos and don’ts, to business continuity management systems.

What we uncover in this issue is the contribution of ISO standards to solving many of today’s business-related challenges. As Dr Endo, President of the Japanese Industrial Standards Committee (JISC), writes in his introductory remarks: “International Standards play a significant role in helping companies adapt to the new realities of society, providing practical solutions for a better, safer and more sustainable world.”

The latest issue of ISOfocus provides expert analysis and commentary on the biggest business standards. It gives a thorough review of how standards can boost business, including their impacts and their relevance for international trade, innovation and economic development. What’s more, a one-on-one interview with Microsoft gives us a sneak peek into a real-life standards best practice.

Here’s the bottom line: Standards are a set of powerful business tools for organizations of all sizes. They inspire confidence, drive down costs, boost productivity and improve profits. Interested to learn more? Browse for business trends and read all about standardization successes in the latest ISOfocus.

Source: iso.org

 

150/ DG Azevêdo announces suspension of WTO meetings following confirmation of COVID-19 case

10 MARCH 2020

Director-General Roberto Azevêdo has informed WTO members that, as of 11 March, all meetings at the WTO will be suspended until 20 March. The decision follows confirmation that one WTO staff member has contracted the COVID-19 virus.

“We take the health of Secretariat staff and our members very seriously which is why we have taken this unprecedented step,“ DG Azevêdo said. ”We are monitoring the situation very closely and will take whatever measures are necessary to protect health and safety.”

The decision was taken in full coordination and with the support of the General Council Chair, Ambassador David Walker of New Zealand, DG Azevedo said in a communication to members on 10 March.

“We will monitor the situation constantly and review this decision before the end of next week,” he said.

The WTO has a coronavirus Task Force in place to monitor developments and is taking all precautions necessary in response to the evolving situation.

Source: wto.org

 

151/ Priorities for ASEAN Economic Community approved

11 March 2020

Việt Nam’s 12 priorities as ASEAN Chair in 2020 were approved by other member countries at the 26th ASEAN Economic Ministers (AEM) Retreat and the ASEAN Business Advisory Council (ASEAN-BAC) Consultation Meeting on Tuesday.

Member countries also agreed 62 measures to be prioritised in the ASEAN Agenda 2020.

They included commodities commercialisation, facilitation of trade and skillful worker movement, one-stop shop ASEAN policies, the investment environment, competition policies, consumer protection, intellectual co-operation, electronic trade and boosting the role of small-medium-sized enterprises, as well as ASEAN globalisation.

Minister of Trade and Industry Trần Tuấn Anh announced the results of the AEM Retreat and ASEAN-BAC meeting at a press conference yesterday.

He said Việt Nam was focused on regional economic integration and connectivity, strengthening partnerships for peace and sustainable development, and enhancing the capacity and operational efficiency of ASEAN.

“This meeting provided an important chance to discuss the ASEAN Economic Community. Twelve out of the 13 priories that Việt Nam proposed have been approved,” Anh said.

“The meeting once again strongly confirmed the central role of ASEAN in dealing with global challenges and trade tensions as well as threats of epidemics. The spread of COVID-19 has posed a problem for ASEAN, but it has also created opportunities for regional countries,” he said.

He said ministers of ASEAN countries also agreed to restructure supply chains to cope with the virus.

“We also discussed how the ASEAN will recover after COVID-19, and the need to build a sustainable growth model while boosting co-operation among ASEAN members and with partners including India, Canada, New Zealand and the UK after Brexit,” he said.

Anh also said six recommendations of the 37th High-level Task Force on ASEAN Economic Integration (HLTF-EI) Meeting in Hà Nội on February of 2020 were approved by ministers at the meeting.

He said ASEAN ministers focused on restarting negotiations for the ASEAN-India Trade in Goods Agreement (AITIGA) and co-operation with South Korea.

Public-private partnerships were also discussed at the ASEAN-BAC meeting on how to develop businesses.

Boosting investment in ASEAN countries through trade and development of medium-and-small sized enterprises was the main focus of initiatives proposed at the ASEAN Business Advisory Council (ASEAN-BAC) Consultation Meeting.

The meeting also raised ideas on business development in the fields of electronic trade, tourism transport and logistics.

Speaking at the press conference, ASEAN Secretary-General Lim Jock Hoi highly appreciated the efforts of ministers and representatives of ASEAN member countries.

“Despite the spread of COVID-19, participants worked hard to complete a very important agenda. I believe that economic engagements and negotiations will be finalised by the year end,” he said.

Relating to the ASEAN-India negotiations as part of the Regional Comprehensive Economic Partnership (RCEP), the Vietnamese minister said more technical talks were needed to complete the agreement by November.

Representatives of ASEAN countries also discussed investment service regulations and a flexible open-door market policy among members and partners, including China, Japan, Korea, Australia, India and New Zealand.

Ministers of ASEAN countries agreed to boost reforms and create a framework for closer connectivity and co-operation, diversifying supply chains and partnerships.

Participants said legal frameworks needed perfecting to boost the circulation of goods human resources and investment capital.

Despite rapid growth in the past decades, the ASEAN economy was only valued at US$3 trillion per year with 9.1 per cent growth, while commodities trade reached $700 billion.

The ASEAN Economic Ministers Caucus Meeting on the Regional Comprehensive Economic Partnership (RCEP) will be held on Wednesday.

Source: VNS

 

152/ US-China trade relations affecting business performance of garment, textile companies

11 March 2020

A survey on business performance of garment and textile companies in 2019, recently released by SSI Securities Corporation shows remarkable impacts of US – China relations on the business performance of these companies.

In the fourth quarter of 2019, net revenue saw a slight increase of 1.55% while after-tax profit reduced 1.29% compared to the same period last year, said SSI.Total revenue of the garment and textile industry in 2019 reached VND68.9 billion, equivalent to 2018 but after-tax profit reduced 9.15%.

The US-China trade tensions greatly affected orders of companies. Because of passive status about that Chinese garment and textile products are likely to be subject to safeguard tax upon exporting to the US market, many customers tend to make monthly orders to explore advantages of China’s production capacity while easily shifting to other market if this tax is valid.

Consequently, when the US stopped its plan on imposing taxes in the fourth period phase 2, as well as reduced 50% of tax rates for goods subject to taxes in the first period, customers of many companies still took priority to choose Chinese producers because of their advantages on production technique, infrastructure and complete value chain. This is a cause leading to shortage of orders in the short term forVietnamese companies.

In addition, competing processing orders with countries which have lower costs such as Bangladesh, Cambodia and Pakistan also put pressure on business performance of the garment and textile industry.

Some companies topped the industry saw low business performance such as Viet Tien Garment Corporation had net sales and after-tax profit in 2019 reduced 7% and 12% respectively compared to 2018. Thanh Cong Garment Textile and Garment Investment Trading Joint Stock Company also recorded a decline of 16.4% in after-tax profit compared to 2018 due to profit margin of many orders reducing.

2019 was a hard year for the natural fiber industry. The US-China trade war made the demand for textile dyeing in China fall, thereby affecting the import demand for natural fiber from Vietnam. China is the largest market of Vietnam’s fiber industry with total imports of 65% (2019). According to Vinatex,Vietnam’s natural fiber industry suffered a loss of 3.500 billion in 2019.

For some listed companies, Dam San Joint Stock Company recorded a strong decline of as much as 83% of after-tax profit in 2019 compared to 2018 and Duc Quan Investment and Development Joint Stock Company suffered a loss of 95% compared to 2018.

Similarly, for the man-made fiber industry, the net sales of Century Synthetic Fiber Corporation reduced 7.4% compared to 2018 due to cautious psychology of customers before the trade war together with the competitive pressure from Chinese polyester yarn.

Source: VCN

 

153/ Philippines participates in transmitting and receiving data of electronic C/O form D on ASEAN Single Window

12 March 2020

The General Department of Vietnam Customs has sent an announcement to provincial Customs Departments to check electronic C/O form D (e-C/O form D) via the ASEAN Single Window mechanism.

From February 25, 2020, the Philippines is the last member to carry out data transmission of e-C/O through the ASEAN Single Window system.

Customs authority will check the receipt of e-C/O form D sent by the Philippines through the National Single Window system. The inspection will comply with current regulations.

The guidance of General Department of Vietnam Customs is based on provisions of Circular No. 22/2016/TT-BCT dated October 3, 2016 of the Ministry of Industry and Trade and based on results of the 32nd Meeting of the Sub-Committee on Rules of origin (SC-AROO 32) on implementing the ATIGA Agreement (C/O form D) that took place from 24-28 February 2020 in Bandung, Indonesia. The meeting informed all member countries to implement e-C/O through ASEAN Single Window from February 25, 2020.

According to statistics of the General Department of Vietnam Customs, as of January 31, 2020, the results of exchanging e-C/O form D with eight ASEAN countries were as following: Total number of C/O sent from Vietnam to ASEAN countries was 165,061 C/O; total number of C/O received from ASEAN countries to Vietnam was 201,652 C/O.

Source: VCN

 

154/ DG Azevêdo provides urgent information to WTO members on MC12 date and venue

12 MARCH 2020

WTO Director-General Roberto Azevêdo was today informed by the Government of Kazakhstan that, in connection with the current situation with COVID-19 and the WHO declaration of a pandemic, it would be appropriate for members to revisit the decision to hold the 12th Ministerial Conference from 8-11 June in Nur-Sultan.

Together with the Chair of the General Council, Ambassador David Walker, and in consultation with the delegation of Kazakhstan, DG Azevêdo circulated a note to members saying that “it is our considered view that holding MC12 as previously agreed from 8-11 June will not be feasible”.

In light of this development, DG Azevêdo said that he and the chair of the General Council will consult with WTO members, including through a special General Council meeting to be held as soon as conditions permit, on how to proceed with revised arrangements for MC12.

Source: wto.org

 

155/ DRIVING HOME CLEAN TRANSPORTATION WITH TWO NEW INTERNATIONAL STANDARDS

12 March 2020

Responsible for nearly a quarter of global carbon emissions, transport is the achilles heel of nearly every city. Yet, with energy demand on the rise, so much needs to be done to tackle the 2030 Agenda targets. New standards have just been published to help achieve smart and efficient transportation in new and existing urban areas.

Car-sharing apps, electric cars and buses and new bike lanes have all helped to stem the rise in energy demand for transport, but they are not enough. As populations grow, demand goes with it, meaning that road vehicles continue to account for the vast majority of transport-related CO2 emissions.

Smart transportation that uses less energy and has a reduced impact on the environment means everyone can breathe easier: citizens, the environment and the world. What’s more, it makes for a more attractive city. Two new International Standards have just been published to help.

ISO 37161Smart community infrastructures – Guidance on smart transportation for energy saving in transportation services, provides guidance to transport organizations, local and national governments and any other industry player on how to reduce energy used in transportation for passengers, delivery, freight and postal services. It features energy-saving options that can be adopted, along with the maintenance and monitoring of such measures.

The standard is complemented by ISO 37162Smart community infrastructures – Smart transportation for newly developing areas, that helps town planners of new developments and areas implement transport services that not only meet the needs of the population but address sustainability issues.

Dr Yoshiaki Ichikawa, Chair of the ISO subcommittee that developed the standards, said reducing energy consumption and implementing changes that favour the environment must take a holistic approach.

“Transportation networks can be very complex, involving not only the vehicles used but the entire operational system,” he said.

“These standards provide guidance on all aspects of transportation, including the criteria and parameters to be considered in the selection of energy-saving options, for long-term results.”

ISO 37161 and ISO 37162 are two of many ISO standards aimed at smart transportation, with others including ISO 37157 (compact cities), ISO 37158 (battery-powered buses for passenger services) and ISO 37159 (rapid transit in and between large city zones).

The standards were developed by ISO technical committee ISO/TC 268, Sustainable cities and communitiessubcommittee SC 1Smart community infrastructures, the secretariat of which is held by JISC, ISO’s member for Japan. They can be purchased from your national ISO member or through the ISO Store.

Source: iso.org

 

156/ Advanced Trade Policy Course concludes at the WTO

13 MARCH 2020

Thirty participants from around the world attended the Advanced Trade Policy Course (ATPC) from 27 January to 13 March 2020 at the WTO headquarters in Geneva. Due to the COVID-19 pandemic, the course had to be shortened by one week from its original eight-week programme. The course was closed by Mr Jorge Castro, Chief of the Course Design and Training Section, on behalf of Mrs Bridget Chilala, Director of the WTO’s Institute for Training and Technical Cooperation.

Mr Castro commended the participants for their hard work and active engagement and encouraged them to make good use of their enhanced knowledge and skills in trade policy making back home. He noted that the main objective of the course was to strengthen the participants’ critical and analytical thinking so that they would be better equipped to consider policy options and make informed decisions. Mr Castro also encouraged the participants to take advantage of a network of contacts they have built among themselves as well as with staff members of the WTO Secretariat and other Geneva-based experts.

The ATPC focused on developing and applying practical skills on trade-related issues, including: trade policy analysis, formulation and implementation; trade negotiations; and trade monitoring. Both legal and economic aspects of WTO rules and disciplines were examined in a series of interactive sessions including case studies, simulations and exercises. Roundtable discussions with external experts, including Geneva-based delegates, provided a platform for sharing of experiences and best practices as well as debating current trade-related topics. To gain first-hand experience of WTO activities, participants attended two formal meetings of WTO committees and bodies. Participants also prepared and delivered a presentation relating to a trade policy topic.

The ATPC represents the highest level of training (level 3) for generalists in the WTO’s progressive learning framework.

Details of the ATPC are provided in the Course Booklet and the Final Programme.

List of participants:

Albania Borana KALEMI
Azerbaijan Mahmud SEYIDOV
Belize Denise Althea MURILLO
Bhutan Tshering NIDUP
China Yuguo ZHAO
Eswatini Lungile Portia DLAMINI
Ghana Dilys ANKOMAH BOAFO
Grenada Ernie Christopher JAMES
Guyana Colin Junior LUCKIE
Hong Kong, China Wai Lun LO
Indonesia Zakiul FUAD
Iraq Kais Mayof Hassoune AL-QURAISHI
Kazakhstan Zhomart YELEUSSIZOV
Lao People’s Democratic Republic Vilayphone XINDAVONG
Malaysia Nurul Dalilah BINTI ALI
Montenegro Svetlana BOZOVIC
Myanmar Soe Htike AUNG
Oman Fatema Saif Hamood AL-MAMARI
Rwanda Cassien KARANGWA
Saint Kitts and Nevis Sherima Akiela POWELL
Saint Lucia Vernet Renee SAINT OMER-FONTENELLE
Samoa Terozita Maria UITIME
Senegal Aminata KANE
Sri Lanka Premathilake Jayakody BATAGOLLE GEDARA
Syrian Arab Republic Anas ALBUKAAI
Tanzania Mpanduji Gasto MATHIAS
Tonga Eva I Mahinafekite LIAVAA
Turkey Abdurrahman DENIZ
Uganda Steven Makwa WABUSANI
Zimbabwe Leonard MHURU

Source: wto.org

 

157/ Finance Ministry proposes 5-month extension of VAT and land rent payment for businesses

13 March 2020

The Ministry of Finance has submitted to the Government a five-month extension of value-added tax (VAT), personal income tax and land rent fee payments for those affected by the COVID-19 epidemic.

The extension is a key part of the Government draft decree on extension of tax payment and land rent to those affected by the epidemic, which is expected to come into effect soon to help businesses recover production and overcome difficulties, contributing to gaining the set economic growth target of 2020.

If the draft is approved by Prime Minister Nguyễn Xuân Phúc, there will be three groups of beneficiaries.

The first group includes businesses, organisations, individuals, groups of individuals and households engaged in production activities in agricultural, forestry and fisheries sectors, production and processing of food, textile and garment, footwear, production of rubber products, production of electronic products and computers, and automobile manufacturing and assembling (except for cars with nine seats or fewer).

The second group covers those operating in transport sectors (railway, road, waterway, aviation, warehousing and supporting activities for transportation), accommodation and catering services, activities of travel agents, tour businesses and support services related to tour promotion and organisation.

And the third is small and super small enterprises defined by regulations of the Law on Supporting Small and Medium Enterprises.

The ministry said the total amount of the five-month extension is estimated to be about VNĐ30.1 trillion (US$1.3 billion), which is not expected to affect the State budget balance in 2020. However, the budget revenue this year will not decrease because enterprises must complete payment to the State budget before December 31, 2020.

According to recommendations of the Vietnam Association of Small and Medium Enterprises sent to the Prime Minister and the Ministry of Finance recently, the COVID-19 epidemic has directly affected many industries and production fields of Việt Nam, causing supply chain disruptions and indirectly effecting the entire economy.

A forecast by the Ministry of Planning and Investment shows that in case the epidemic is controlled in the first quarter of this year, the country’s economic growth rate is forecast at 6.25 per cent, down 0.55 percentage point compared to 6.8 per cent set out in the Government’s Resolution No.01/NQ-CP on January 1, 2020.

In case the epidemic is controlled in the second quarter of this year, the economic growth will reach 5.96 per cent, down 0.84 percentage point ​​against the target.

Phạm Đình Thi, Director of the Tax Policy Department under the Ministry of Finance, said that in a short time, the ministry collaborated with other ministries and agencies to finalise the draft decree to submit it to the Government for approval and promulgation, aiming to provide assistance to those engaged in production and business activities in economic sectors directly affected by the Covid-19 epidemic.

All beneficiaries of the draft decree must send a written request for extension of tax and land rent to the tax authorities before May 31, 2020 (electronic or other methods selected by taxpayers).

Source: VNS

 

158/ Exports increase by more than $3 billion in period of Covid-19

13 March 2020

According to statistics of General Department of Vietnam Customs, the export turnover increased sharply compared to imports in the first two months of 2020.

In the first two months of 2020, import-export activities were strongly affected by the Covid-19 epidemic. However, export activities achieved good growth.

In February, the country’s export turnover exceeded $20.8 billion, bringing turnover in the first two months of the year up to more than $39 billion, up by 8.4 percent (equivalent to more than $3 billion) compared to the same period last year.

An important contribution to the growth of export turnover is phones and accessories; computers, electronic products and components; machinery, equipment and tools with a two-digit growth rate.

In particular, phones and components increased by more than $900 million (equivalent to 12.2 percent); computers, electronic products and components increased by more than $1.6 billion (equivalent to 27.4 percent); and machinery, equipment, tools and spare parts increased by more than $630 million (equivalent to 25.3 percent).

The three above groups contributed greatly to the turnover with an increase of $3 billion, equivalent to the additional increase in exports of the whole country in the first two months.

In the first two months of the year, the country imported goods with a turnover of nearly $37.3 billion, up by 2.9 percent over the same period in 2019.

Notably, imported finished unit cars (CBU cars) reached 14,523 units with turnover of $333.34 million, down by 43.3 percent in volume and 41.8 percent in turnover compared to the first two months of last year.

By the end of February, Vietnam experienced a trade surplus of nearly $2 billion.

Source: VCN

 

159/ DG Azevêdo communicates COVID-19 measures to WTO members and staff

15 MARCH 2020

Director-General Roberto Azevêdo has informed WTO members and staff that access to the organization’s premises will be restricted as of 16 March. All WTO meetings are suspended until the end of April and Secretariat staff have been requested to work from home until the end of March.

“In light of developments related to the COVID-19 virus and after meeting  with UN agencies and observers in Geneva, we have taken a decision to suspend all meetings at the WTO until the end of April 2020. This decision will be reviewed as appropriate,” the Director-General said. “Additionally, all WTO Secretariat staff (except on-site critical staff) are to work from home until the end of March 2020. This decision will be reviewed by the end of March.”

The decision to restrict WTO operations was taken after consultations between the Director-General and the General Council Chair Amb. David Walker of New Zealand. Amb. Walker has fully endorsed the announced measures.

The WTO is reviewing alternatives for arranging virtual meetings to enable members to participate remotely.

Source: wto.org

 

160/ WTO DG welcomes G7 leaders’ statement on COVID-19

17 MARCH 2020

WTO Director-General Roberto Azevêdo today welcomed the co-ordinated statement by G7 leaders calling for closer cooperation to fight the COVID-19 pandemic and minimize its economic fallout

“This global challenge requires a global response, on the public health front and in the economy,” said Director-General Azevêdo. “It is only by working together that we will find solutions.”

On 16 March, G7 leaders agreed to support global trade and investment and do “whatever is necessary to ensure a strong global response through closer co-operation and enhanced co-ordination.”

“Rarely, if ever, has the world economy seen supply and demand shocks so sudden, so widespread, and so deep,” said the Director-General. “This is inevitably causing major disruptions to trade, as will be visible in our trade forecast for this year, which we are set to release in a few weeks.”

“The top priority now must be to protect the health and safety of people at risk from COVID-19,” Director-General Azevêdo added, heartened by governments’ moves to introduce fiscal and monetary measures to prevent social lockdown from leading to large-scale business failure and job losses.​

“Alongside these measures, maintaining open trade and investment flows will be critical to protect jobs, prevent supply chain breakdown, and ensure that vital products do not become unaffordable for consumers,” he said. “And once recovery begins to take hold, trade will play a central role in returning economies to full speed. By allowing countries to tap into each other’s growth as it picks up, our economies will recover more quickly than if we try to act alone.”

DG Azevêdo commended the G7 statement for its emphasis on cooperation to fight the virus, from data-sharing and access to medical equipment to efforts to develop potential treatments and a vaccine. He was encouraged by the G7 pledge to “address disturbances to international supply chains and continue our work to facilitate international trade.” DG Azevêdo said that the WTO would do its part to support this work.

Source: wto.org

 

161/ Regional Trade Policy Course concludes in Abidjan, Côte d’Ivoire

17 MARCH 2020

A Regional Trade Policy Course (RTPC) for French-speaking African members and observers of the WTO concluded on 17 March. Organized in partnership with the École Nationale Supérieure de Statistique et d’Économie Appliquée (ENSEA) and the government of Côte d’Ivoire, it was attended by 28 government officials from 15 French-speaking African members of the WTO and Haiti. It was the fourth RTPC organized in partnership with ENSEA and the government of Côte d’Ivoire.

The 2020 RTPC started on 3 February and ended on 17 March, slightly earlier than the scheduled closing date due to the travel restrictions being imposed globally in response to COVID-19. The course’s content and objectives were not severely affected by the early closure of the RTPC thanks to a coordinated response by ENSEA and the WTO. Parts of the course’s curriculum were condensed and delivered remotely to allow participants to sit the final exam and obtain the RTPC diploma. This course of action was highly praised by the participants since obtaining the diploma rewarded their work during the previous six weeks of the course and it ensured their access to higher level courses should they wish to apply for further WTO training.

The WTO Institute for Training and Technical Cooperation is very grateful to ENSEA and the government of Côte d’Ivoire for the help and support provided during the four-year long partnership, which has successfully trained a total of 115 government officials (47 women and 68 men) from the French-speaking Africa region.

Regional Trade Policy Courses (RTPCs) are “generalists” Level 2 training activities on the WTO’s Progressive Learning Strategy (PLS). These two-month training events are directed at government officials working on trade-related issues who have successfully completed a PLS-Level 1 course. The training curriculum covers the multilateral trade agreements and it includes a final exam. A distinctive feature of RTPCs is their focus on regional trade policy issues and capacity building; to this end, RTPCs are organised and implemented in partnership with regional academic institutions and they include regional academics and trade practitioners who co-lecture with WTO officials. A related objective of the co-lecturing approach is to foster networks among government officials, regional trade experts and regional trade-related institutions, with a view to enhancing dialogue on national and regional trade policy issues.

Source: wto.org

 

162/ State needs to activate support package for businesses

17 March 2020

Local enterprises have urged the Government to soon activate support policies to help them overcome difficulties in production and business due to the novel coronavirus (COVID-19) pandemic.

The Government has offered a credit package worth VNĐ285 trillion for businesses due to difficulties caused by COVID-19. The State has also extended payment deadlines for taxes and fees to support businesses, including value added tax, income tax, corporate tax and land rent.

The finance ministry said the total amount of the five-month extension is estimated to be about VNĐ30.1 trillion (US$1.3 billion).

Those assistance measures are expected to help businesses and ensure social security during the COVID-19 pandemic. However, they have not yet come into effect.

Mặc Quốc Anh, Chairman of Hà Nội Association of Small and Medium Sized Enterprises, said the State should take action to help businesses receive the support as soon as possible.

In addition, the State needs specific solutions to give support to businesses that are experiencing real trouble due to the pandemic. It will avoid businesses that have experienced difficulties due to other reasons, he said.

The Department of Private Economic Development under the Prime Minister’s Advisory Council for Administrative Procedure Reform has released a report on the impact of COVID-19 on production and business activities of enterprises.

This report surveyed 1,200 enterprises in various fields, including agriculture, industry and services. According to the survey, this pandemic has had a great impact on enterprises’ production and business.

If the pandemic lasts for up to six months, 60 per cent of them would lose at lease 50 per cent of their revenue and 29 per cent would lose 20-50 per cent of the revenue. Only 1.8 per cent of the surveyed businesses have not suffered losses in revenue during the pandemic.

Meanwhile, 80 per cent of the surveyed non-State educational facilities (institutions) have had losses of at least 50 per cent, so 90 per cent out of them are at risk of bankruptcy.

If only 1,000 foreign language training centres are closed, they will lose trillions of đồng and 30,000 workers will lose their jobs, including teachers, staff and guards, according to the report.

Most experts believe the support has been issued in a timely manner, but the State should have specific regulations on implementing the support and monitor its implementation to avoid risks for the economy.

Ngô Trí Long, former director of the Ministry of Finance’s Price and Market Research Institute, said the most important thing is to identify firms in real need to enjoy the support measures.

Supporting the wrong firms is likely to be an inefficient and unsustainable investment, leading to poor quality economic growth and risking high inflation after the support package ends, he said.

Source: VNS

 

163/ VN imports of US goods continue to rise

17 March 2020

The US is one of Việt Nam’s largest sources of goods and its imports are increasing, according to the General Department of Customs.

Last year the imports were worth US$14.36 billion after rising by 18 per cent.

They included $4.85 billion worth of computers, electronic products and components, a 59.1 per cent rise.

Imports of plastic products rose by 84.3 per cent to nearly $826.5 million.

Other imports set to rise this year are seafood and feed ingredients imported as prices drop due to the US-China trade war and the Covid-19 pandemic.

Trần Văn Trường, director of the Hoàng Gia International Seafood Trading Company Limited, said with the US’s lobster exports to China falling, so have prices, and so imports by Việt Nam have been increasing sharply.

Lobster prices are at their lowest ever. Animals weighing 1.3-3 kg now cost only VNĐ750,000 per kilogramme to import compared to VNĐ900,000-1 million usually.

People are not eating out much because of the Covid-19 scare, and so supply to restaurants has decreased but on the other hand the number of people cooking lobsters at home has increased, Trường said.

Phạm Đức Bình, general director of Thanh Binh JSC, a cattle feed production company, said the prices of feed ingredients imported from the US have dropped by 20-30 per cent because of the trade war.

Source: VNS

 

164/ REDUCING THE RISK OF ERRORS IN MEDICAL LABORATORIES WITH UPDATED INTERNATIONAL STANDARD

17 March 2020

Never before have reliability and accuracy been so important for medical laboratories. Robust risk management processes are the best defence against errors and false results. One of the world’s most trusted guidance documents for risk management in medical laboratories has just been updated to help.

The reliability of laboratory results in medical settings is essential for correct diagnoses and positive clinical outcomes, so implementing measures to reduce the risk of errors is an essential part of business.

ISO 22367Medical laboratories – Application of risk management to medical laboratories, specifies a process for a medical laboratory to identify and manage the risk to patients and service providers that are associated with medical laboratory examinations. It has just been updated to align with other International Standards in the industry, such as ISO 14971 for risk management in medical devices, and to provide more effective guidance for the sector.

The standard replaces ISO/TS 22367, Medical laboratories – Reduction of error through risk management and continual improvement, a technical specification used by governments and laboratories around the world to help reduce and manage risks associated with medical laboratory services.

Dr Jack J. Zakowski, Chair of the committee of experts that developed the standard, said risk management in medical settings is complex because it involves the cooperation of many stakeholders, and each stakeholder may have a different perspective on the risk of harm. Internationally agreed and adopted standards, therefore, ensure adequate safety levels.

“Activities in a medical laboratory can expose patients, workers or other stakeholders to a variety of hazards, which can lead directly or indirectly to varying degrees of harm,” he said.

“Effective risk management involves a planned, systematic process that addresses both the probability of harm occurring and the consequences of that harm.

“It works best when aligned with quality and safety management to cover all possible sources of risk, which is why ISO 22367 was updated to correspond with the latest version of ISO 14971 for risk management in medical devices and ISO 15190 that provides guidance on medical laboratory safety. It is also a key requirement of ISO 15189 for the quality and competence of medical laboratories.”

ISO 22367 was developed by ISO technical committee ISO/TC 212Clinical laboratory testing and in vitro diagnostic test systems, the secretariat of which is held by ANSI, ISO’s member for the USA. It can be purchased from your national ISO member or through the ISO Store.

Source: iso.org

 

165/ Turkey initiates WTO dispute complaint against EU steel safeguard

19 MARCH 2020

Turkey has requested WTO dispute consultations with the European Union regarding the EU’s safeguard measures on imported steel products. The request was circulated to WTO members on 19 March.

Turkey claims that the EU safeguard measures, in the form of tariff-rate quotas and additional duties, and the investigation that led to their imposition, are inconsistent with a number of provisions of the Agreement on Safeguards and the General Agreement on Tariffs and Trade (GATT) 1994.

The EU initiated the safeguard investigation in March 2018, with provisional measures imposed in July 2019. In February 2019 the EU decided to apply a definitive safeguard on 26 categories of steel products through June 2021.

Further information is available in document WT/DS595/1

What is a request for consultations?

The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.

Source: wto.org

 

166/ Promoting cross-border exports

19 March 2020

Recently, the COVID-19 epidemic has badly affected economic and trade cooperation activities between Vietnam and other countries, including cross-border import-export activities between several Vietnamese northern border provinces and China’s Guangxi and Yunnan.

Due to the COVID-19 outbreak, China had previously suspended customs clearance of goods at its border gates to prevent spread of the disease, resulting in congestion of goods in Vietnam – China border gates. Although China then allowed clearance to resume, the congestion continued. According to Ministry of Industry and Trade (MoIT), there were 905 freight trucks waiting for export at the border gates in Lang Son Province on March 14. Specifically, Huu Nghi Border Gate had 116 vehicles carrying agricultural products and electronic components while Tan Thanh Border Gate had 686 trucks of agricultural products and fruits still waiting for export procedures.

In order to remove difficulties for export activities, especially for agricultural products, as well as to implement effectively the Prime Minister’s Directive No.11/CT-TTg (March 4, 2020) on urgent measures to remove difficulties for production, business and ensure social security in response to COVID-19, the MoIT has just issued an Directive to ask its subordinate units to urgently deploy many solutions. Accordingly, the Ministry asked the Import and Export Department and relevant agencies to coordinate frequently and effectively with the Ministry of Finance to ensure the clearance and timely removal of obstacles in export and import activities, while cooperating and supporting the border provinces.

In addition, it is crucial to devise measures to promote exports, improve the efficiency of trade promotion and diversify the import-export markets and seeking new markets as well as to proactively take advantage of free trade agreements and prepare essential conditions and actively develop plans for the export of goods to EU after the EU – Vietnam Free Trade Agreement (EVFTA) takes effect.

Minister of Industry and Trade Tran Tuan Anh also held a phone call with the Secretary of the Party Committee of Guangxi Zhuang Autonomous Region of China Lu Xinshe, asking for closer coordination between the two sides in order to completely recover economic and trade cooperation, restore supply chains and resume custom clearance to serve the demand of people and enterprises. The minister suggested Chinese relevant agencies to create favourable conditions for Vietnamese agricultural and aquatic products, including permitting more border gates to import fresh fruits on the land border line and railway routes, as well as putting into operation the customs clearance way on Bac Luan (Beilun) II Bridge, which runs through the Mong Cai (Quang Ninh Province) – Dongxing (China) pair of border gates. He also expressed his hope that there will be more kinds of agricultural products and fruits imported at Bang Tuong railway gate, while the General Administration of Customs of China will accelerate legal procedures to open the market for Vietnam’s goods of strength such as durian, passion fruit, avocado, pomelo, coconut, custard-apple, salanganes nest and sweet potato.

It is hoped that with to the drastic measures of the Government as well as the efforts made by the people, ministries and agencies, the difficulties in trade activities at Vietnam – China border gates in particular and exports in general will be quickly removed, helping producers, traders and businesses overcome the challenges caused by the COVID-19 epidemic.

Source: NDO

 

167/ No significant impact of EU’s border closure on goods circulation: official

19 March 2020

The European Union (EU)’s lockdown of its borders to the stop the spread of the novel coronavirus (COVID-19) pandemic had not yet had a significant impact on goods circulation, an official from the Ministry of Industry and Trade said to Việt Nam News Agency.

CNN on Tuesday reported that the EU had formally agreed to temporarily close its external borders for 30 days to restrict non-essential travel in an effort to slow the spread of the COVID-19 pandemic.

Tạ Hoàng Linh, director of the ministry’s European – African Market Department, said that it was too early to say how the EU’s closure of its external borders would affect cross-border trade.

Linh predicted that there would not be any significant impact on goods circulation as the European Commission stressed that goods would not be restricted across external borders.

The biggest impact of the COVID-19 pandemic, according to Linh, was the declining demand as Europeans would stay at home and reduce shopping for products like footwear, clothes and wooden items which were Việt Nam’s major export products to the bloc.

Linh stressed that the ministry was keeping a close watch on the development of the EU’s closure of its external borders and the impacts on cross-border trade to raise detailed scenarios and measures to limit the negative impacts on Việt Nam’s exports.

He also urged firms to prepare for any possible impacts on their import-export activities.

According to statistics of the General Department of Customs, Việt Nam’s export revenue to the EU market was estimated at US$5.15 billion in the first two months of this year, representing a drop by 4.56 per cent over the same period last year. Experts said that the decline was, however, just temporary and more time was needed to see the trend.

Việt Nam was having significant opportunities to boost exports into the $18 trillion EU market when the EU – Việt Nam Free Trade Agreement (FTA) came into force, expected in July.

Research by the Ministry of Planning and Investment pointed out that the trade deal would help increase Việt Nam’s export revenue to the EU market by 20 per cent in 2020 and 42.7 per cent in 2025 compared with the scenario of no trade deal.

EU was a major export market of Việt Nam with revenue increasing more than 14 times from $2.8 billion in 2000 to more than $41.5 billion last year.

Source: VNS

 

168/ Việt Nam jumps 23 places in economic freedom index

19 March 2020

Việt Nam jumped 23 places from last year to reach 58.8 points, ranking 105th place in the economic freedom index this year.

The Heritage Foundation has released the 2020 Index of Economic Freedom report.

The country’s overall score has increased by 3.5 points due to a dramatic gain in fiscal health.

Việt Nam is ranked 21st among 42 countries in the Asia–Pacific region, and its overall score is slightly below the regional and world averages.

The Vietnamese economy has gradually been climbing the ranks of the mostly unfree since 2011.

Strong GDP growth over the past five years has mirrored this improvement, driven by export-focused manufacturing and processing sectors.

Economic freedom will be enhanced in Việt Nam if the government can successfully expand economic liberalisation by promoting international trade and restructuring state-owned enterprises, said the report.

“Improvement of the investment climate will be slow without improvements in judicial effectiveness and stronger efforts to fight corruption.”

Although all land is collectively owned and managed by the state, as of September 2018, the government had issued land-use rights certificates for 96.9 percent of land in Việt Nam.

The top personal income tax rate is 35 per cent, and the top corporate tax rate is 22 per cent. Other taxes include value-added and property taxes. The overall tax burden equals 18.6 per cent of total domestic income.

Government spending has amounted to 28.3 per cent of the country’s output (GDP) over the past three years, and budget deficits have averaged 4.7 per cent of GDP. Public debt is equivalent to 57.5 per cent of GDP.

“Starting a business has become easier, and the cost of business registration has been cut. Corporate governance standards and the enforcement of labour laws are weak,” said in the report.

Price stabilisation controls remain in effect for fuel, energy and water utilities, natural resources, and pharmaceuticals.

The total value of exports and imports of goods and services equals 187.5 per cent of GDP.

The average applied tariff rate is 2.7 per cent, and 80 non-tariff measures are in force.

The overall investment framework has been modernised and facilitates foreign investment, but it lacks efficiency.

The financial sector continues to evolve, and directed lending by state-owned commercial banks has been scaled back in recent years.

Source: VNS

 

169/ Việt Nam, Senegal look to sign extra deals to boost trade, investment

19 March 2020

Việt Nam and Senegal will complete the necessary legal steps to ink a number of agreements to boost bilateral trade and investment.

The two sides reached the agreement at working sessions held during a visit of Vietnamese Ambassador to Algeria and Senegal Nguyễn Thành Vinh, accompanied by the defence attaché and trade counsellor of Việt Nam to Algeria and Senegal from March 8-14.

Ambassador Vinh presented his letter of credentials to Senegalese President Macky Sall on March 10, followed by a reception hosted by the president.

President Sall highlighted the Việt Nam-Senegal relations, saying the two countries are friends with long-standing ties. He reiterated that Senegal wants to further boost cooperation with Việt Nam in multiple sectors, particularly trade, investment, agriculture and industry.

The president emphasised the close partnership between the two nations in agriculture, with Việt Nam sending many experts to share experience and helping the Senegalese people develop paddy rice farming, contributing to strengthening the African country’s food security.

The Vietnamese diplomat, for his part, said Việt Nam always attaches importance to traditional relations and multi-faceted cooperation with Senegal in areas where both sides have advantages, such as agriculture, sea-based economy and trade.

He vowed to do his utmost in his new position to foster friendship and cooperation between the two countries.

Ambassador Vinh also had separate working sessions with Senegal’s Ministry of Foreign Affairs, Ministry of Commerce, and Chamber of Commerce and Industry, during which the two sides again affirmed they hold great potential to expand partnerships in agriculture, trade, marine economy and information technology.

The two sides agreed to continue completing a legal framework for the signing of a Memorandum of Understanding on industry and trade and agreements on investment protection and double taxation avoidance to encourage more of their businesses to invest and trade with each other.

They will also increase exchanges of trade promotion delegations and take part in large international trade fairs and exhibitions on each side, for example, the Việt Nam Expo and Foire Internationale de Dakar.

The Senegalese side asked Việt Nam to share experience in international integration and signing free trade agreements with major partners around the world, and hoped to see more Vietnamese firms investing in cashew nut and fruit processing, rice production and telecommunication services.

Việt Nam and Senegal set up diplomatic ties in December, 1969. In 2019, Viet Nam’s exports to Senegal totalled US$52.56 million, doubling the previous year’s figure. The exports included $32 million worth of rice.

Việt Nam’s imports from the African country however went down by 50 percent to $15 million.

Source: VNS

 

170/ Việt Nam proposes postponing 36th ASEAN Summit and related meetings

20 March 2020

Prime Minister Nguyễn Xuân Phúc on Thursday wrote to leaders of ASEAN countries and New Zealand proposing the 36th ASEAN Summit, the ASEAN-New Zealand Summit and related meetings, initially scheduled for April 8-9 in Việt Nam’s Đà Nẵng City, be postponed until the end of June.  

In his letter, PM Phúc said Việt Nam has basically completed organisational work for the events, but the postponement is necessary due to the COVID-19 pandemic spreading in the region and the world.

The Vietnamese Government leader expressed thanks to the countries for working together with Việt Nam to promote the building of a cohesive and responsive ASEAN Community.

He said with resolve and joint efforts, solidarity and mutual compassion, the ASEAN Community will stand firm in the face of challenges, ensure a peaceful life for its people and prosperous development of its member countries.

Deputy Foreign Minister Nguyễn Quốc Dũng handed over the PM’s letter to the Ambassadors of ASEAN countries and New Zealand at a meeting in Hà Nội on Thursday.

The Deputy FM called on ASEAN countries to push ahead with efforts to maintain co-operation and connection, and promote the spirit of a cohesive and responsive ASEAN Community in the current difficult period under the impacts of the COVID-19 pandemic.

He asked ASEAN member states to continue to co-ordinate closely to mitigate the pandemic’s negative effects on the process of building the ASEAN Community as well as on socio-economic situations in member countries.

He informed the ambassadors on measures that Việt Nam, as ASEAN Chair this year, will actively promote in the future in order to keep the pace of ASEAN working plans and bolster co-operation in preventing and controlling the pandemic.

Representatives from the Foreign Ministry’s Consular Department informed the ASEAN embassies about Việt Nam’s measures to respond to the COVID-19 pandemic.

Ambassadors of ASEAN countries praised Việt Nam’s preparations for the events and its effective response to the pandemic. They expressed support of the decision of the ASEAN Chair and pledged to continue working closely with Việt Nam to prepare for the 36th ASEAN Summit.

Source: VNS

 

171/ Textile and footwear firms go local to survive pandemic

20 March 2020

While most textile and footwear enterprises in Việt Nam struggled to find alternative sources of raw materials to maintain production, some with local sources have survived during the COVID-19 pandemic.

Trương Văn Cẩm, vice chairman and general secretary of Việt Nam Textile and Apparel Association, said due to the heavy dependence on supplies from China, most of the firms lacked raw materials.

Cẩm said: “They are now either shifting to import raw materials from other countries or using domestic ones.”

However, he said: “The diversification of sources of imported raw materials takes time and is more expensive because of higher import prices, higher shipping and warehousing costs,” adding that: “Using domestic sources is a more feasible solution.”

Thân Đức Việt, general director of May 10 garment firm, said together with the largest supplier of China, his firm also used a variety of fabric sources from over 600 different suppliers in the world to make their shirts.

Though Việt felt the burden of loan interest and debt repayments as well as the risk of order cancellations from customers in such a difficult time, his firm with alternative raw materials can maintain production in the next few months.

For the longer period, Việt said: “Currently, we are considering using the local resources of fabric, but we must negotiate with partners to postpone or extend delivery time, as well as change the requirement of origin to be able to use those sources.”

Nguyễn Văn Thời, chairman of TNG Investment and Trading Joint Stock Company, said as the majority of the firm’s orders was the free-on-board (FOB) which their customers prepared raw materials early, “we have sufficient input for production until the end of the first half of the year and are planning sources for the third quarter and the whole year now.”

Thời added: “Compared to last year, our traditional customers have increased their orders in 2020. For example, Decathlon (France) increases their orders by 29 per cent while Spormaster (Russia) increases by 73 per cent.”

After the first two months, TNG achieved a total revenue of VNĐ559.5 billion (US$23.8 million), up 4 per cent compared to the same period in 2019. In 2020, TNG expects revenue growth of about 10 per cent to reach VNĐ4.9 trillion for the whole 2020.

With 70 per cent of the materials from local sources, Nguyễn Thanh Tùng, director of Hà Tây Chemical Weave Company which produced vulcanised shoes, sports shoes and injection shoes to export to Europe, Japan and South Korea, said: “Most domestic suppliers can meet our production demand.”

With a maximum capacity of 120,000 pairs of shoes per month, Tùng’s firm still ordered 30 per cent of the materials from other countries. Now, he was negotiating with customers to ask them to change those outside sources to local ones.

Source: VNS

 

172/ FIVE TOP WAYS OF USING WATER TO FIGHT CLIMATE CHANGE ON WORLD WATER DAY

20 March 2020

Water is one of the world’s most powerful weapons against climate change. Without it, we would have no natural protection such as wetlands, mangroves and peatlands to protect us from flooding and erosion or capture carbon emissions. We can all do our bit to better manage water and support this year’s World Water Day. Here are five top ways to help:

1. CALCULATE YOUR WATER FOOTPRINT

Knowing the true environmental impact of an organization’s use of water is the first step in improving it. ISO 14046Environmental management – Water footprint – Principles, requirements and guidelines, is the world’s first internationally agreed method for determining your organization’s water efficiency. It covers everything from the quantity, quality and location of water to changes in water due to land use or other activities. It also helps organizations identify opportunities to reduce potential water-related impacts associated with products at various stages in their life cycle as well as processes to become more water-efficient. The result is not only reliable data that can be used in environmental reports worldwide, but a method to ensure continual improvement.

2. MANAGE YOUR WATER EFFICIENTLY

Climate change, increased populations and water-intensive methods in manufacturing and farming are all putting huge pressure on our water supply, thus we have no choice but to be more efficient with the water we have.

According to the United Nations, over the last hundred years, the use of water worldwide has increased twice as much as the global population: this means that seven hundred million people risk being displaced due to lack of water by 2030.

Knowing how much water we use, where and how, as well as having effective strategies in place to minimize consumption and maximize efficiencies, is the key objective of a water efficiency management system.

ISO 46001Water efficiency management systems – Requirements with guidance for use, aims to help organizations of all sizes and status be more water-efficient. Through a clear framework and guidance on water efficiency management, it provides methods and tools for assessing and accounting for water usage, as well as ways to identify and implement measures to optimize water use and continually improve ways of doing so.

3. REUSE WASTEWATER IN IRRIGATION

Agriculture is a thirsty business, and increased populations mean even more water is used to irrigate crops. But there is another way. Reusing wastewater is a surefire method of easing the pressure on limited water supplies and improving an organization’s water footprint. It can also provide a lifeline for agricultural communities where water is scarce.

Treated wastewater can be used for land reclamation, improving agricultural growth and reducing fertilization costs. An environmentally productive use of treated wastewater can also prevent ecological damage to water sources.

The four-part series ISO 16075Guidelines for treated wastewater use for irrigation projects, is a key tool for the agriculture industry. It contains guidelines for the development and execution of treated wastewater projects, including design, materials, construction and performance, and covers a wide range of issues such as water quality, types of crops that can be irrigated, associated risks and main components (e.g. pipeline networks and reservoirs).

The standards in this series are currently being revised to make them even more effective and relevant to industry, with the new versions due out later this year.

4. SOLUTIONS FOR SEWERS (WHERE THERE AREN’T ANY)

Many people around the world rely on basic on-site sanitation systems like outhouses and latrines. On-site systems, where the wastewater treatment is done locally rather than off site (i.e. in a sewage system), can be a hygienic low-cost solution if it is implemented correctly and the waste is disposed of safely. Yet in too many places, these systems are poorly made or just don’t exist and local streams, rivers, seas and plants are polluted as a result.

ISO 24521Activities relating to drinking water and wastewater services – Guidelines for the management of basic on-site domestic wastewater services, aims to change this situation by offering practical guidance on the management and maintenance of basic on-site domestic wastewater services. The result is cleaner sanitation facilities and improved health for people and the environment.

5. TURNING WASTE INTO WATER

Complementing ISO 24521 is a new technology that can not only treat human waste in a clean and environmentally friendly way but turn it into useful resources such as clean drinking water. ISO 31800Faecal sludge treatment units – Energy-independent, prefabricated, community-scale, resource recovery units – Safety and performance requirements, specifies requirements and test methods to ensure the performance and safety of units that can serve up to a hundred thousand people. Developed by an ISO expert committee in partnership with the Bill & Melinda Gates Foundation, it is due to be published this year.

Source: iso.org

 

173/ Despite COVID-19, Vietnam enjoys US$1 bln trade surplus in mid-March

23 March 2020

Vietnam achieved a trade surplus of approximately US$1 billion in the first half of March, with total import-export turnover reaching over US$21.47 billion despite the impact caused by the novel coronavirus (COVID-19), according to the General Department of Vietnam Customs.

Most notably, the nation exported goods worth US$11.2 billion whilst importing items worth US$10.3 billion throughout the reviewed period.

Since the beginning of the year up until March 15, the country’s total export turnover increased by roughly 7% on-year to US$50.3 billion, with imported goods standing at over US$47.55 billion in value, an annual rise of nearly 1.9%.

The positive results has provided fresh impetus to local firms in their great efforts to overcome difficulties caused by the COVID-19 epidemic. Moreover, domestic companies are keen to ensure that an adequate supply of raw materials for production activities is maintained and signed export orders are fulfilled.

At present, several export and import commodities have reached over US$1 billion in turnover with some even going on to achieve revenue in the tens of billions of dollars.

With regard to exports, phones and components maintained their leading position with a turnover of over US$10.2 billion, up 8.5% in comparison to last year’s corresponding period.

In terms of imports, electronic products and components, along with computers, are the commodity groups that enjoyed the largest turnover with US$11.03 billion, an increase of over 15%.

According to the Ministry of Industry and Trade, the country’s import and export of goods are projected to face a number of hurdles over the short term due to the impact of the COVID-19 epidemic which has spread rapidly to countries outside of China. The virus has hard hit the Republic of Korea and Japan which are Vietnam’s leading trade partners.

In the event of a prolonged epidemic, it is likely to have an adverse effect on the export growth target for the year.

The country’s agricultural exports through border gates in northern border provinces were disrupted throughout February due to China moving to temporarily suspend the exchange of border goods as a means of dealing with the COVID-19 epidemic.

Despite this, customs clearances for import and export goods through northern border gates has significantly improved since the beginning of March, therefore helping to ease the worries that enterprises may have regarding a shortage of raw materials for production.

Source: VOV

 

174/ US, EU not restrict imports of goods from Vietnam

23 March 2020 

Amid the information that the EU and the US shut down borders to immigration and medical quarantine and will also halt the import and export of goods, the Ministry of Industry and Trade (MoIT) on March 21 informed that the EU and the US do not apply any measures to restrict the import of goods from Vietnam.

Minister Tran Tuan Anh of the MoIT affirmed that the Government, ministries, and departments will do their utmost to support enterprises to overcome the difficult period due to the impacts of the Covid-19 pandemic. However, solutions cannot seek perfection, enterprises cannot only rely on the State but they should have the initiative, responsibility, and specific calculations in an attempt to overcome this difficult period. Agreeing with the opinion of the Asia-Africa Market Department on promoting import and export in newly-recovered markets, including China, South Korea, and Japan, and the ASEAN market, Minister Tran Tuan Anh requested thorough survey and evaluation on these markets. Moreover, it is essential to restructure the processing stage and develop relationships with neighboring countries.

Regarding the fact that the EU’s border closure affected the circulation of goods, Mr. Ta Hoang Linh, Head of the European-American Market Department, shared that as the pandemic became more and more serious, European countries have decided to shut down borders. Border closures are to protect the health of European people and they are not lockdowns. According to the European-American Market Department, the US also affirmed that they will not apply any measures to restrict imports of goods from Vietnam.

According to Minister Tran Tuan Anh, because these are two important markets that affect the target, plan, production, business, and export activities in the supply chain, the European-American Market Department needs to closely monitor the situation of these countries to put forward solutions and specific plans in the months to come to implement when the EU-Vietnam Free Trade Agreement becomes effective, unify the mechanism and policies, and create favorable conditions to support the market.

Relating to the information that the US Government has been applying the policy to halt the import of garment and textile products of Vietnam, the Vietnamese Ambassador to the US Ha Kim Ngoc affirmed that this information is inaccurate.

According to the Vietnam News Agency, Vietnamese Ambassador to the U.S.A Ha Kim Ngoc said that the comprehensive partnership between the US has continued to develop with positive results. The governments of the two countries have cooperated closely to promote the trade relations between Vietnam and the US in the direction of balance and sustainability. Currently, the US is one of the largest trade partners and the largest export market of Vietnam. Data by the US Department of Commerce showed that two-way trade between the two countries hit US$77.6 billion last year, making Vietnam become one of 15 largest trade partners of the US. In the first two months of this year alone, while export turnover to other markets slumped, export turnover of Vietnam to the US continued to grow, reaching $10.26 billion, an increase of 25.7 percent over the same period last year. In the first two months of this year, garment and textile exports touched $2.25 billion, up 5.3 percent over the same period last year, accounting for nearly 48 percent of the total garment and textile export value of the country.

Source: SGGP

 

175/ WTO members aim to keep up momentum in fisheries subsidies negotiations

23 MARCH 2020

WTO members are sustaining efforts to craft new rules against harmful fisheries subsidies despite disruptions posed by the COVID-19 outbreak. Negotiators have been requested to exchange views in writing on two proposals, which will also serve as helpful input for a consolidated text.

In a communication dated 19 March, the chair of the negotiations, Ambassador Santiago Wills (Colombia), assured members that it remains his intention  to prepare and distribute a first single basic consolidated text containing provisions on the three main subsidy prohibition pillars: illegal, unreported and unregulated fishing; fishing of overfished stocks; and overcapacity and overfishing. It will also integrate relevant provisions on special and differential treatment for developing countries and least-developed countries (LDCs).

Previously, members were scheduled to hold a virtual fisheries subsidies meeting but it was called off due to restrictions arising from further COVID-19 developments. Director-General Roberto Azevêdo on 15 March had informed WTO members and the Secretariat that access to the organization’s premises will be restricted and that all WTO meetings are suspended until the end of April.

The chair said that given the continued urgency of fisheries subsidies negotiations and the state of global fish stocks, it remains important to maintain momentum. He requested members to make comments or ask questions on the latest proposals from India and the LDC Group via e-mail and for the proponents to respond in the same manner in a process which will run from 26 March to 6 April. All inputs in this correspondence will be compiled and distributed to all delegations.

The chair said this exchange of views will be of assistance to him as he puts together the consolidated text. He reiterated his request to members for flexibility and engagement.

Based on the mandate fixed under the Ministerial Decision from the WTO’s 11th Ministerial Conference, and the UN Sustainable Development Goal Target 14.6, negotiators are expected to secure an agreement in 2020 on disciplines eliminating subsidies for IUU fishing and prohibiting certain forms of fisheries subsidies that contribute to overcapacity and overfishing, with special and differential treatment for developing and least-developed countries.

Source: wto.org

 

176/ Media, NGO accreditation suspended for 12th Ministerial Conference

24 MARCH 2020

Accreditation for media and non-governmental organizations for the WTO’s 12th Ministerial Conference (MC12) has been suspended, following host country Kazakhstan’s request to revisit the decision to hold MC12 in Nur-Sultan on 8-11 June due to the COVID-19 outbreak.

WTO Director-General Roberto Azevêdo informed WTO members on 12 March that he and the chair of the General Council will consult with them on how to proceed with revised arrangements for MC12, including through a special General Council meeting to be held as soon as conditions permit.

All meetings at the WTO have been suspended until the end of April.

Journalists and non-governmental organizations (NGOs) will be informed of the revised accreditation arrangements in due course.

Source: wto.org

 

177/ Japan donates CHF 125,000 to help LDCs participate effectively in global trade

24 MARCH 2020

Japan has contributed CHF 125,000 in 2020 to enhance the trading capacities of developing countries and least-developed countries (LDCs). This donation to the WTO’s DDA Global Trust Fund will finance training workshops for government officials to help them better understand and implement WTO agreements and improve their negotiating skill-set.

Over 2,800 activities have been organized since the fund was created in 2001.

Director-General Roberto Azevêdo said: “Japan’s donation is very welcome. It will help sustain the active engagement of developing countries and LDCs in multilateral trade negotiations and drive new opportunities for economic growth and development.”

Japan’s WTO Ambassador, Kazuyuki Yamazaki, said: “Global trade plays a key role in enhancing the world’s prosperity by fuelling economic growth and raising living standards across the world. Through our contribution, we are pleased to be contributing to helping developing countries and LDCs participate more effectively in global trade and increase their economic opportunities.”

Overall, Japan has donated CHF 11 million to the various WTO trust funds over nearly 20 years.

Source: wto.org

 

178/ EVFTA poses challenges to Vietnamese agricultural products

24 March 2020

Since the EVTFA was approved, experts have been analysing the opportunities for Vietnam to penetrate deeper into the high-value foreign markets. However, the implementation of the deal also poses many challenges to Vietnamese agricultural products. Besides strict standards from the European Union market, competitive pressure in the domestic market is also a big issue.

Tien Giang province is home to the second largest orchard area in the Mekong Delta region with about 80,000 ha. The province has exported many of its products, such as dragon fruit, mango, and durians, achieving fame for the locality.

Notably, most of the exports go to China while exports to markets like the EU remain modest.

Soc Trang also has more than 30,000 ha of orchards. The province has exported more than 100 tons of purple star apples to the US market. The EU market has started buying locality’s pomelo. The province is confident that it can meet the demand of the EU market through the free trade agreement.

Exporters said that farmers have also increased their awareness of the EU’s requirements. For example, their products must meet international standards like GlobalGap. However, some businesses still do not fully understand the importance of these standards.

Besides, competitive pressure will be fiercer in domestic market when agricultural products from EU countries pour into Vietnam.

Like many other free trade agreements, the implementation of the EVFTA will lift tariff barriers but for many countries it will create more difficult technical barriers. The Ministry of Agriculture and Rural Development has said the deal will change the entire production and structural processes to create a closed chain for enterprises to participate in the global value chain./.

Source: VNA

 

179/ Businesses search for ways to overcome COVID-19

24 March 2020

Many businesses are struggling from a lack of raw materials and falling exports due to the impacts of the global pandemic COVID-19.

The Ministry of Industry and Trade said the pandemic had had a strong impact on industrial production.

The index of industrial production in the first two months of this year increased by 6.2 per cent over the same period last year, much lower than the increase of 13.7 per cent in 2018 and the 9.2 per cent reported last year.

The processing and manufacturing industry was the most heavily affected with growth in the first two months at only 7.4 per cent, much lower than the increase of 11.4 per cent posted in the same period last year.

The Ministry of Industry and Trade stated that if the pandemic continued until the second quarter of this year, the impacts would become evident on the manufacturing industry.

A representative of the Việt Nam Steel Corporation (VNSteel) also said that the market was unfavourable and the pandemic was having a negative impact on production and business of its units.

Production and business at Thái Nguyên Iron and Steel JSC (Tisco) under VNSteel were seriously affected last month.

Specifically, Tisco’s consumption reached 14,000 tonnes by February 26, only fulfilling 23 per cent of its monthly plan.

The representative said the most badly hit was the Việt – Trung Mining and Metallurgy Co., Ltd due to its location near the Việt Nam – China border.

The company is heavily dependent on commercial activities between the two sides. Its raw materials and equipment, which are mainly imported from China, stand stagnant now.

Especially, coke inventories are very low, failing to meet the domestic demand for iron ore production and consumption.

To solve the difficulties, VNSteel has asked the company to work with relevant authorities in the northern mountainous province of Lào Cai to resume normal import and export activities for coke and steel billets in order to maintain production and business activities.

At the same time, the company is also looking for alternative sources from Russia and Indonesia.

The corporation also proposed support solutions from the People’s Committee of Lào Cai such as extending tax payment times for businesses.

Nguyễn Quang Vinh, CEO of Vision Materials Vietnam Company Limited, said that in the current situation, finding new markets was very important because the disease would remain complicated.

Difficulties in importing raw materials would continue, he said. The company was actively seeking alternative sources of goods instead of China.

“We hope the authorities will strengthen trade promotions so the business community in general and our company in particular can access other sources,” Vinh said.

In order to solve these difficulties, Minister of Industry and Trade Trần Tuấn Anh has directed his departments to work directly with industry associations and localities to find solutions to “rescue” businesses.

The Ministry of Industry and Trade will co-ordinate with branches and localities to handle border-gate issues to promote import and export circulation with China and find alternative markets for Vietnamese goods.

At the same time, the ministry has also directed trade offices and branches in Asia, Africa, Europe and America to assess consumption demand, market capacity, tastes and Vietnamese export growth potential to offset export declines due to the impacts of COVID-19, especially taking advantage of the preferential policies offered by the EU – Việt Nam Free Trade Agreement (EVFTA).

Source: VNS

 

180/ MoIT proposes Prime Minister reopen secondary border gates with China

25 March 2020

The Ministry of Industry and Trade (MoIT) has proposed Prime Minister Nguyễn Xuân Phúc permit customs clearance of goods through all secondary border gates in the northern province of Lạng Sơn, which is on the border with China.

The proposal aims to boost the volume of import and export goods on the border gates between the two countries, which currently reach about 50-60 per cent in comparison with months prior to the COVID-19 pandemic.

If the proposal is approved, fresh agricultural products and fruits of Việt Nam will be exported to China soon.

Lạng Sơn has ten secondary border gates, of which Tân Thanh and Cốc Nam were re-opened last month after they were closed due to impact of COVID-19 outbreak in China early this year.

The ministry said that the secondary border gates between the two countries were qualified for customs clearance of goods according to the Government’s Decree 112/2014/ND-CP providing management on border gates, as well as the agreement of trade, exchange, import and export of goods signed by Việt Nam and China, in which the prevention of COVID-19 outbreak must be ensured.

According to the ministry, the current clearance capacity at Tân Thanh border gate in Lạng Sơn Province is very limited, with about 130 to 150 trucks carrying goods to China, accounting for 50 per cent of goods prepared for daily export. The remaining goods are stored at the border gate area.

Meanwhile, the volume of vehicles carrying goods from inland provinces to this border gate is increasing, leading to congestion.

The Lạng Sơn Industry and Trade Department said the Chinese side is facing a shortage of labour, especially those loading and unloading at the border area due to the impact of the COVID-19 pandemic.

In addition, the Chinese forces are strengthening control and prevention of diseases on vehicles transporting goods exported from Việt Nam because the COVID-19 outbreak is increasing in some cities of provinces of the country.

Lạng Sơn Province and China’s Guangxi Zhuang Autonomous Region have agreed to prepare necessary conditions to soon restore customs clearance of import and export goods at this border, on the basis of ensuring strict implementation of disease prevention processes.

The ministry said China’s control of the COVID-19 pandemic had been greatly improved, in which Yunnan and Guangxi Zhuang Autonomous Region had lowered the emergency response level from one to three. “These two provinces have been partially restoring trading between border residents of the two sides to meet the increasing production and consumption demands when the pandemic is almost controlled.”

“This is a favourable factor to recover, promote import and export activities, and transport goods to the country’s northern border gates in the future,” the ministry said.

Source: VNS

 

181/ Agro-forestry, fisheries exports to US, EU hit by Covid-19 pandemic

25 March 2020

With Việt Nam’s main agro-forestry and fisheries export markets after China such as the US and Europe being hit by the new coronavirus (Covid-19) pandemic, Vietnamese exporters are suffering.

Nguyễn Đình Tùng, chairman and CEO of Vina T&T Group, which exports fresh fruits to several demanding markets, said fruit exports by air to the US and EU were down 70-80 per cent since many airlines had stopped flights.

“Shipments by sea are relatively stable but customs clearance in importing countries is expected to be prolonged because workers and officials are absent from work due to the pandemic, which could affect the goods quality.

“Therefore, at least in the next one month, vegetable and fruit exports to these markets will drop sharply.”

After that the export situation would depend entirely on how the countries control the pandemic, he said.

His company now exports only three items, coconut, longan and durian, because they last long, and temporary stops exporting other fruits.

Đặng Phúc Nguyên, general secretary of the Việt Nam Fruits and Vegetable Association, said most fruits and vegetables were exported in fresh form and by air.

The sector must improve storage and packaging technologies to enable the products to last over 30 days so that they could be shipped to Europe and the US by sea, he added.

Trương Đình Hòe, general secretary of the Việt Nam Association of Seafood Exporters and Producers (VASEP), said the main seafood export markets such as China, the US, the EU, Japan, and South Korea had all been hit by Covid-19.

In the first two months of the year seafood exports were worth nearly US$935 million, down 15.9 per cent from the same period in 2019, with exports to China down by 46.8 per cent to $80 million, and to the EU by 17.4 per cent to $106 million and to South Korea by 16 per cent to $90 million.

According to VASEP, shrimp exporters expect the China market to recover in April and will focus on shipping by sea.

Pangasius exports to China are expected to recover by 70 per cent in May and fully recover in June.

Exporters will restrict exports to China through intermediaries and outsourcing to avoid oversupply.

In the case of non-essential items such as wood and wood products, demand could slump at a time like this. According to the Việt Nam Timber and Forest Products Association (VIFOREST), exports of timber and timber products will plummet in the next three months, especially to the country’s five key export markets that are severely affected by the pandemic.

The five are the US, EU, China, Japan and South Korea, which buy nearly 90 per cent of the country’s total exports.

Importers in these markets have informed suppliers in Việt Nam they would delay or stop buying or defer payment.

According to insiders, agricultural exports in the first two months of the year were estimated at $5.34 billion, down 2.8 per cent year-on-year.

If the Government and related ministries did not provide timely support, the sector’s export prospects were very gloomy, they said.

Source: VNS

 

182/ COVID-19 and trade

25 MARCH 2020

The WTO has set up a dedicated webpage to help governments, business, the media and the public track the latest information on trade-related responses to the COVID-19 outbreak.

The webpage will provide up-to-the-minute information, including relevant notifications by WTO members, the impact the virus has had on exports and imports, and how WTO activities have been affected by the pandemic

Source: wto.org

 

183/ Azevêdo sees sharp fall in trade, calls for global solutions to COVID-19 crisis

25 MARCH 2020

Director-General Roberto Azevêdo said cross-border trade and investment flows have a role to play in efforts to combat the COVID-19 pandemic, and will be vital for fostering a stronger recovery once the medical emergency subsides.

In a video message recorded from his home, the Director-General said a global solution is needed to address the global challenge brought about by the pandemic.

“No country is self-sufficient, no matter how powerful or advanced it may be. Trade allows for the efficient production and supply of basic goods and services, medical supplies and equipment, food and energy … Keeping trade and investment flowing will be critical to keep shelves plentiful and prices affordable,” he said.

WTO economists are analysing the fallout from the crisis and will report their findings and projections for trade in 2020 and 2021. Although the report is still a few weeks away, the Director-General said the economists “foresee a very sharp decline in trade”.

“Once the medical crisis begins to recede, trade will allow countries to help each other grow, bringing faster and stronger economic recovery for all of us. The WTO will do its part,” he said.

Source: wto.org

 

184/ DG Azevêdo requests WTO members to share information on trade measures related to COVID-19

25 MARCH 2020

As the WTO ramps up monitoring of the COVID-19 pandemic’s trade implications, Director-General Roberto Azevêdo calls for transparency with regard to trade-related policies introduced to fight the virus.

In a 24 March message asking all members to submit information to the WTO Secretariat about recent trade and trade-related measures, DG Azevêdo called specific attention to the policies members had introduced in response to the coronavirus outbreak.

“The current COVID-19 pandemic represents an almost unprecedented health crisis, and members are understandably responding by introducing legislation and policies to seek to combat this health emergency,” he wrote. “These include measures that are trade-related, such as export measures and economic support programmes.”

The DG asked members to provide the Secretariat with information about their COVID-19 policies with trade implications, emphasising that whatever they submit would be used purely for transparency purposes.

The request was part of a longstanding transparency exercise in which the WTO Secretariat compiles regular reports on trade-facilitating and restricting measures introduced by members of the Group of 20 leading economies as well as by the WTO membership as a whole. The next trade monitoring report will look at measures taken between mid-October 2019 and mid-May 2020.

The monitoring exercise has previously shone a spotlight on trade measures taken in the context of health emergencies, notably the H1N1 flu outbreak in 2009-10.

In comments on the COVID-19 outbreak, DG Azevêdo has stressed the importance of transparency with regard to trade-related measures, arguing that it would be particularly useful for the many countries that rely on imports for medical supplies.

More broadly, the Director-General has set up a task force of experts from across the Secretariat to monitor the impact of COVID-19 on trade flows and the overall global economy. Some of the task force’s findings will inform the WTO’s annual trade projections which will be released next month.​

Source: wto.org

 

185/ DDG Wolff: COVID-19 crisis calls for “unprecedented level” of international cooperation

26 MARCH 2020

In a speech delivered to a virtual meeting of the Washington International Trade Association on 26 March, Deputy Director-General Alan Wolff said the COVID-19 pandemic calls for an “unprecedented level” of international cooperation to tackle the crisis. He outlined six priorities the WTO has for meeting the challenge, including providing a cooperative framework for members to consider their responses, making it clear members have wide freedom to take necessary positive actions to address the crisis, and helping craft coordinated responses to keep trade flows open. The text of DDG Wolff’s speech is below.

What is the WTO Doing in Response to the Coronavirus?
Remarks of Alan Wm. Wolff, Deputy Director General World Trade Organization at a virtual meeting

Question: “World trade is obviously in the process of taking a very substantial hit from the Covid-19 pandemic.  What is the WTO doing about it?”

The WTO has six current priorities for meeting the current crisis:

The first priority of the WTO as with any government, corporation or organization, is to keep our Members, our staff and the public, all of whom are our stakeholders, safe and to assure continuity of service.

Without this first step, maintaining the ability to function, nothing else that we might think about would matter.

  • 16 days ago, on Tuesday, March 10, the WTO suspended all meetings at its building and twelve days ago, on Saturday, March 14, extended the suspension until the end of April.
  • 12 days ago, on Saturday, March 14, the WTO informed all staff whose work did not require them to work on-site to work from home.
  • The response has been very good.  Virtual staff meetings are being held.  The IT and administrative staff that have to be onsite have risen to the current challenge. A Health Task Force keeps us informed.  And importantly, the WTO Secretariat’s daily work has continued unabated, adapting to remote access to and for colleagues, resources and Members.
  • At the same time, the chiefs of mission of the 164 Members of the WTO, correctly gave their first priority to safeguarding their own staffs and making sure that their offices could still function.
  • The G7 leaders pledged to do all that is necessary to fight the spread of the virus and to deal with its economic consequences, and WTO is pledged to fully support this effort.
  • The primary ways in which the WTO can implement this pledge are the following:
  • The WTO agreements act as a framework for trade and trade-related policy design.
  • The WTO agreements are very flexible in these circumstances, but still have built in best practices.  Emergency measures should generally be targeted, temporary, and transparent.
  • The WTO also serves as a venue for discussions, cooperation, coordination and negotiation, even if the discussions will for the time being largely not be face-to-face.
  • Today, the WTO Director General is participating in the G20 leaders’ virtual meeting. In the coming days, he will be updating the G20 on the trade aspects of the crisis.
  • The first priorities of WTO Members have sensibly been to protect the health of their peoples and then of their economies through macroeconomic measures such as fiscal stimulus packages and tax relief, to go along with measures that Central bankers have taken with respect to the money supply and interest rates.  Dealing with trade measures is necessarily the next step for WTO Members to consider.
  • The WTO set up a cross-divisional task force to gather all possible information on measure taken by countries that have an effect on world trade related to the spread of the virus.  This includes measures that facilitate as well as those which restrict international trade.
  • The WTO Director General has urged WTO Members to provide notifications of trade measures they have taken in response to the Covid-19 outbreak, and that is happening.
  • A Covid-19 web page has been established to make publicly available relevant information including trade measures taken by WTO Members.
  • The WTO will in a few weeks issue its Trade Forecast for 2020 which will assess the impact of the sudden and widespread supply and demand shocks to the world economy.
  • The central factor to focus on is the figure for the recent increase in trade costs – the costs of moving goods from their point of origin to a market beyond an international border.
  • The increase in trade costs due to the coronavirus is substantial.  It is a multiple of total current average tariffs worldwide.
  • Increased costs of trade:
  • It is not just overtly trade restrictive measures and traditional tariffs that affect costs of trade;  there is a change for the worse of the conditions for trade since Covid -19 began to spread.  Among these –
  • Air cargo on passenger planes has been cut back as the number of commercial flights has plummeted;
  • The people who conduct trade and whose expenditures constitute trade cannot travel internationally; and
  • Uncoordinated and differing national standards for urgently needed emergency medical equipment, supplies and pharmaceuticals can have a serious adverse impact.
  • Members are completely free to apply lower tariff rates or have no tariffs on any and all products whatsoever.
  • Tariff rates in WTO schedules are maximum permissible levels.  In the case of WTO Members who have committed to high rates, the applied rates are very often lower.  In addition, some 20% of world trade flows outside of WTO notified rates, much of which is subject to duty free treatment under bilateral and regional trade agreements.
  • The tariff rates on individual products are all rendered anachronistic by the current crisis.  The tariff rates that are contractually bound were for 122 of our 164 Members established in 1993.  For the 36 other Members who came into the WTO since then, they are set at the time of entry.  For example, for China, the world’s largest trading country, the rates were set in 2001.
  • There are two examples of attempted coordinated action at the WTO to meet specific economic objectives through tariff elimination.
  • One succeeded, with participants eliminating tariffs on information technology goods under the Information Technology Agreement.
  • The other did not succeed, and that was the Environmental Goods Agreement (the EGA), upon which negotiations began in 2014.  The fact that 195 nations entered the Paris Agreement on Climate Change in 2015 did not cause the Environmental Goods Agreement to become a reality.
  • The WTO Rules permit Members to take actions to protect the health and safety of their citizens.  Regrettably export restrictions on medical supplies have in a number of instances been put into place in recent days, without notice or consultation.  Emergency actions must not impose unwarranted restrictions on trade.
  • Nothing in the WTO rules prevents a roll-back of export restrictions.
  • Nothing in the WTO rules prevents subsidies from being granted to increase the global supply of medical products needed to respond to the Covid-19 pandemic.
  • Additional flexibility in the WTO’s Agreement on Trade Related Intellectual Property can facilitate countries’ access to affordable life-saving medicines.
  • A number of Members have taken steps together to pledge to keep trade flows open, both with respect to imports and exports.  Yesterday, on March 25, Canada, Australia, Chile, Brunei, New Zealand, New Zealand and Singapore joined together to make that commitment.  A broader conversation among Members on next steps is underway.
  • WTO Members are also well aware of the useful suggestions made by trade experts, like the ones suggested by those on this program and are actively discussing appropriate responses.
  • The very important questions put by Simon Evenett of St. Gallen University, Wendy Cutler at the Asian Policy Institute, Jennifer Hillman at the Council on Foreign Relations, and Anabel González at the Peterson Institute for International Economics, as well as her colleagues, include:
  •  whether tariffs can be eliminated on medical supplies,
  • whether export restrictions on these products can be lifted if already imposed, and eliminated if already in place, and
  • whether subsidies are needed to spur necessary production and economic activity?
  • For the WTO, the next Ministerial meeting is as important as the 2020 Olympics was to Tokyo.  It has to be rescheduled.
  • The pace of negotiations on key subjects such as E commerce, the moratorium on imposing on electronic commerce and curtailing fisheries subsidies is usually geared to the rhythm of meetings of trade ministers.
  • In addition, ideas on WTO reform, environmental issues, empowerment of women, and a host of other useful initiatives are stimulated by the fact of a ministerial being held.  Intensive consultations with members as to the timing and venue of the next ministerial meeting and ministerial input are underway.
  • The circumstances brought about by the pandemic are unprecedented in our lifetimes and in the history of the multilateral trading system.  They call for an unprecedented level of international cooperation.
  • The WTO was remarkably successful in avoiding the spread of protection during the Financial Crisis in 2008 and in the years following.  There is nothing preventing WTO Members from engaging in a successful coordinated response to the coronavirus pandemic if the will exists to do so.
  •  There are approximately 500 individuals on this conference call who are a self-selected cohort of those interested in the impact of Covid-19 on trade.  Collectively and individually, you can have an impact by making your voices heard and your expertise available to trade policymakers.

The second WTO priority is to provide an international cooperative framework in which  Members can consider their individual responses to this crisis.

The third priority is to be in a position to inform  Members of the effects on world trade of the spread of the virus.

The fourth priority is to make it clearly understood that there is wide freedom to take necessary positive actions to meet the crisis.

THE fifth priority is to facilitate the crafting a coordinated response

The sixth priority is to assure the continuation of ongoing negotiations and work at the WTO

Conclusion

Source: wto.org

 

186/ WTO members continue efforts to advance agriculture negotiations despite COVID-19 crisis

26 MARCH 2020

WTO members continue exchanging views on various issues in the agriculture negotiations and the possible options for a positive outcome through written communications while WTO meetings are suspended in response to the COVID-19 outbreak.

In a communication dated 16 March, the chair of the agriculture negotiations, Ambassador John Deep Ford (Guyana), invited WTO members to make the best possible use of their time despite the unforeseen circumstances resulting from the pandemic.

The chair shared an updated assessment of the possible options in the agriculture negotiations, building upon his report on the “Elements and processes for a possible outcome in agriculture at MC12” circulated on 14 February 2020 and subsequent consultations held with members. He urged members to table new submissions and asked them to express in writing their views on his assessment as well as on all new submissions by 15 April 2020. All the views expressed will be compiled and circulated to members, constituting inputs for future talks.

The chair acknowledged that the negotiation process was even more challenging in this unprecedented environment. The situation would need to be reassessed once there is more clarity regarding the work schedule of the WTO and the new dates for the 12th Ministerial Conference, he added.

The chair said that “with determination and flexibility, members will be able to make progress and take a step forward in achieving our collective goal towards establishing a fair and market oriented agricultural trading system, enabling it to effectively address the challenges facing it and to contribute to the realisation of the Sustainable Development Goals”.

Source: wto.org

 

187/ DG Azevêdo welcomes G20 pledge on COVID-19 response and economic recovery

26 MARCH 2020

WTO Director-General Roberto Azevêdo today (26 March) took part in an extraordinary G20 virtual leaders’ summit on COVID-19. He welcomed the pledge by the Group of 20 major economies to work together to combat the COVID-19 pandemic and “restore confidence, preserve financial stability, revive growth and recover stronger.”

DG Azevêdo hailed the group’s resolve to “ensure the flow of vital medical supplies, critical agricultural products, and other goods and services across borders,” part of a broader commitment to “minimize disruptions to trade and global supply chains”.

In a joint statement, G20 leaders pledged to do “whatever it takes and to use all available policy tools to minimize the economic and social damage from the pandemic,” promising to coordinate fiscal action to restore global growth. The leaders agreed to “facilitate international trade and coordinate responses in ways that avoid unnecessary interference with international traffic and trade”. Emergency trade measures aimed at protecting health should be “targeted, proportionate, transparent, and temporary,” they said.

Ahead of the summit, the Director-General had sent a letter to the current chair of the G20, Saudi Arabia, warning that while the COVID-19 pandemic is “first and foremost a health crisis, threatening millions of lives,” it is also a social and economic crisis that is endangering the livelihoods of millions more. Noting that WTO economists foresaw “a sharp fall in trade”, he underlined that cooperation, including on trade, would help ensure that the economic downturn caused by the pandemic “is short, and followed by a swift, sustained, and inclusive recovery”.

The Director-General emphasized that trade would be a vital channel for getting essential products to where they are most needed. He noted that cross-border cooperation on research, development, production, and trade would lower costs for countries now working to ramp up health system capacity, and develop testing kits, treatments and vaccines at scale.

“Few countries — if any — can produce all the medical supplies, food, and energy they need,” DG Azevêdo said. “Closing borders would be particularly harmful to people in the many developing countries that rely on imports for sophisticated medical equipment.”

He also encouraged G20 members to set an example by promptly sharing information about any COVID-19 related trade policies with the WTO Secretariat.

DG Azevêdo appealed for solidarity and cooperation among G20 governments and international organizations to deliver an effective pandemic response and a strong global recovery. “History will not remember us kindly if we fail to work together,” he wrote.

The G20 Extraordinary Virtual Leaders’ Summit on COVID-19 was organized by the Kingdom of Saudi Arabia, which currently holds the group’s rotating presidency. In addition to the WTO Director-General, the heads of international organizations including the United Nations, the World Bank Group, the World Health Organization, the International Monetary Fund, the International Labour Organization and the OECD participated in the meeting.

Source: wto.org

 

188/ VN increases application of trade defence instruments

26 March 2020

Việt Nam is increasing the application of trade defence instruments to protect the legitimate rights of domestic producers as the country integrates rapidly into the global economy.

The Ministry of Industry and Trade on March 18 issued an initial decision to temporarily impose anti-dumping duty on monosodium glutamate (MSG) products originating from China and Indonesia.

Exporters of products originating from China would face tariffs ranging from VNĐ2.889 million (US$124) per tonne to VNĐ6.385 million. A tariff of VNĐ5.289 million per tonne would be applied to all products originating from Indonesia.

The tariff would be in effect from March 25 for 120 days.

The ministry initiated investigations in October 2019, which found that despite the imposition of a safeguard tariff of VNĐ3.2 million per tonne, MSG products originating from China and Indonesia had dumping margin of up to 28 per cent, posing significant injuries to domestic production.

According to Trade Remedies Authority of Việt Nam, from 2016, the MSG production industry in many countries saw rising inventories, which might lead to dumping to other countries, including Việt Nam. This created difficulty and pressure on local industry.

In addition, the US and European Union were imposing anti-dumping tariffs on MSG originating from China and Indonesia, thus, the authority said that producers from the two countries might seek to expand export markets, including Việt Nam.

Việt Nam was the second largest MSG export market of China and fourth of Indonesia.

Further investigations were still ongoing for a final decision. Investigations to evaluate impacts to related parties, including end-users, were expected to finish in the last quarter of this year.

On the same day, the ministry also decided to impose temporary anti-dumping duty on biaxially oriented polypropylene (BOPP) originating from China, Thailand and Malaysia. The duties would range from 14.99 per cent to 43.04 per cent for products from China, 10.91 per cent to 23.05 per cent for Malaysia and 20.35 per cent for Thailand.

The investigation would be carried out until the third quarter of this year.

Starting in August 2019, the investigation found that strong rise in import volume during the investigation process caused injuries to local production, especially drops in output, sale, revenue, profit, and market share. Many local producers suffered losses and went bankrupt, according to the Trade Remedies Authority.

In another development, Canada temporarily imposed anti-dumping and subsidy duties on corrosion-resistant steel sheet originating from several countries, including Việt Nam.

The investigation initiated in November 2019 found Vietnamese exporters had dumping margins from 36.3 per cent to 91.8 per cent, thus, anti-dumping duty was imposed from March 20. The final decision was expected on June 18.

The Ministry of Industry and Trade said it would continue working with relevant agencies to ensure that the dumping margins in the final decision were more reasonable.

Exporters of products originating from Việt Nam were not subject to subsidy tariff as initial findings showed that the Government did not subsidise them.

Source: VNS

 

189/ CPTPP eases pathway for Vietnamese exports to Canada, Mexico

26 March 2020

Following the signing of the Comprehensive and Progressive Agreement for Trans Pacific Partnership CPTPP Vietnamese firms are keen to utilise the trade pact to make inroads into Canada and Mexico two members who had yet to sign a bilateral trade agreement with Vietnam.

Luong Hoang Thai, Director of the Multilateral Trade Policy Department of the Ministry of Industry and Trade (MoIT), says during the CPTPP implementation period Vietnamese businesses used the agreement for their own advantage in ways better than had previously been forecast.

Indeed, 2019 saw the country’s exports to CPTPP members grow, despite the pact being in effect for less than a full year, Thai says, adding that exports to Canada and Mexico alone represented increases of 26% and 29%, respectively.

This positive trend was maintained in the first two months of this year as Vietnamese firms continue to take advantage of the CPTPP as a means of increasing exports.

During the reviewed period, the country successfully shipped US$578 million worth of goods to Canada, an annual increase of 20.39%.

With a market of 37 consumers and an urbanisation rate of 80%, the North American nation is one of the potential markets where Vietnamese businesses can export a greater quantity of garments and textiles, footwear, seafood, tea, peppers, cashew, coffee, and wood products.

MoIT statistics show businesses exported more than US$100 million worth of garments and textiles to Canada between January-February, 2020, a rise of 5.86% on-year.

In terms of value, phones and their spare parts topped the list of export items, raking in US$122.09 million, a sharp leap of 104.22% compared to last year’s figure.

Export items posting the highest growth were steel/iron and raw plastic materials, making jumps of 153.69% and 354.06% over last year’s corresponding period.

Throughout January and February, Vietnam shipped US$497.2 million worth of goods to Mexico, led by electronics products and spare parts at US$133.6 million.

The value of phones and their spare parts was estimated at US$122.6 million, with footwear at US$47.5 million and garments at US$16.3 million.

Source: VOV

 

190/ Export of agricultural products to China show positive signs, says businesses

27 March 2020

Trade and customs clearance for agricultural products at the border with China are slowly returning to normal due to strict regulations to prevent a further outbreak of COVID-19.

According to Nguyễn Văn Giang, an official from the Ministry of Agriculture and Rural Development, China had controlled the coronavirus pandemic so the market for agricultural products would recover later this month, boosting demand for imported products, especially food.

Giang said China has paid special attention to restoring logistics services to promote domestic consumption.

“Besides administrative reforms, China has reduced taxes on 80 food items (out of a total of over 800) to boost imports. This will be an opportunity for Vietnamese businesses to promote exports, including agricultural products,” Giang said.

Statistics from across the country in the first two weeks of this month showed that more than 15,000 tonnes of food, including fruit, seafood and cassava powder, had been exported through the Móng Cái border gate in the northern province of Quảng Ninh. However, in Lạng Sơn Province, there were still more than 1,000 container trucks, mostly carrying fruit and agricultural product, stuck waiting for export clearance.

Hoàng Văn, the Deputy Director of Trường Giang Seafood Joint Stock Company in the southern province of Đồng Tháp, said Chinese partners have come back in the recent two weeks, however their import of seafood products is only by 30 per cent prior to the COVID-19 pandemic because their logistics system has not yet completely restored.

To stabilise the market and ensure the quality of tra fish, Văn said many businesses have directly exported, not via intermediaries like before.

Nguyễn Lâm Viên, vice president of the Việt Nam Farms and Agricultural Enterprises Association, said the Chinese market had shown signs of reviving, but remained unstable.

Viên, who is also chairman and CEO of Vinamit Joint Stock Company, said agricultural and food products would recover sooner than others, but it would be a few months before the market could be properly assessed.

“China has basically controlled the COVID-19 pandemic, but strict measures remain in place, affecting the circulation of goods. The Chinese market is in need of high quality food products, which can be good for the health and improve resistance,” Viên said.

CEO of Trung An High-tech Agriculture Joint Stock Company in the southern city of Cần Thơ, Phạm Thái Bình, said many Vietnamese rice enterprises were confident that exports of rice to China would remain stable in the long term.

Bình said that rice exports to China plummeted in 2019. Early this year, the forecasts were that China would import more rice. “Unfortunately, the disease in China has become complicated, so rice exports have not bounced back yet.”

“After the Chinese market recovers, this country’s inventory of rice will decrease because production has been affected by the COVID-19 pandemic. They will increase imports,” Bình said.

He predicted that Việt Nam’s rice exports to China this year would be higher than 2019’s volume of 500,000 tonnes.

Source: VNS

 

191/ MoIT warns of trading risks in US market

30 March 2020

The Ministry of Industry and Trade (MoIT) told local business to be more cautious in trading with US partners as some Vietnamese firms reported being cheated in the US.

The ministry’s Việt Nam Trade Promotion Agency in New York, US, informed the MoIT that some Vietnamese firms have recently suffered losses in transaction with their US partners which were already bankrupt or unable to pay.

According to the agency, the main reason for the losses was that the Vietnamese firms did not carefully research their partners before trading.

The agency said: “Some have sought and found their partners online but did not inspect their real capacity.”

It added, as of the selling target, local firms often gave their partners the advantage in contract terms, especially payment terms of documents against acceptance, or DA.

As per DA terms, the buyer accepts documents by signing bills of exchange sent by the exporter, agreeing to pay the value of goods shipped as per agreed period of time. The agency said buyers in the US often take advantage of the payment method to delay payment or may not pay because they only need to confirm the payment instead of really pay to get the goods.

In the context of the COVID-19-affected market, Vietnamese businesses need to be more cautious in signing contracts with foreign partners, said the agency

To avoid risks for businesses, the office suggested Vietnamese businesses pay more attention to their partners’ information, especially the ones they found online.

It suggested businesses moderate the contract value and not use DA payment terms but a secured one with first-time business partners.

The local business can seek support of trade representative offices in the areas they wish to do business in a foreign land to have more information of their business partners to avoid losses.

Source: VNS

 

192/ NEVER TOO LATE TO GET READY

30 March 2020

We’re living in challenging times. Putting to one side the immediate personal health impacts of Coronavirus, its economic effects are likely to be felt for a long time. With suggestions that similar outbreaks might become a regular occurrence, we need to ask what we can learn, and what steps can be taken to prepare for the future.

Some businesses will be forced to close their doors permanently, and many will struggle to recover. Few will come through unscathed. CEOs and business owners alike count on perseverance, knowledge and adaptability, both from themselves and those around them, to get through times like these. But with a crisis of such unprecedented scale and so many unknowns, it will take more to survive.

A return to stability and growth will require systematic plans that take into account a fragile economy overshadowed by the threat of a drawn-out pandemic. An ISO business continuity management system is the right way to start filling in the blanks. Often abbreviated to “BCMS” within industry, we’re talking about ISO 22301 and related ISO standards.

The entangled nature of globalized business adds layers of complexity to the current situation with governments and experts conflicted on the best way through. What they all agree on is that you can’t be too prepared. The good news is that increasingly granular data allows us to understand both the causes and effects of disruptions with better clarity. An information-driven approach is at the centre of ISO 22301, which was updated just last year under the direction of ISO’s technical committee on security and resilience (ISO/TC 292).

Considering that a BCMS identifies preventative measures, leaders and entrepreneurs might well ask if it’s too late to start. Is now really the moment to create, or update, a BCMS?

At a time when all hands are on deck, most businesses will have more immediate priorities. But there is a message of hope for businesses of all sizes. You can get through this, but you cannot afford to be hit twice. If you have never implemented, or even considered, a BCMS, now could be the right time to do it.

BCMS is covered in greater detail in the current ISOfocus magazine.

ISO MEMBERS IDENTIFY ROLE FOR STANDARDS DURING COVID-19 CRISIS

A number of ISO members around the world, including those in Europe who are part of CEN/CENELEC, have identified some standards that can help address the current crisis.

Source: iso.org

 

193/ DG Azevêdo welcomes G20 ministers’ commitment to notify WTO of COVID-19 related trade measures

30 MARCH 2020

At a virtual gathering of G20 trade ministers on 30 March, WTO Director-General Roberto Azevêdo urged them to “lead the way” in using trade to lower the cost of fighting the pandemic, and to lay the foundations of a strong economic recovery.

DG Azevêdo welcomed the ministers’ joint declaration, in which they committed to “actively working to ensure the continued flow of vital medical supplies and equipment, critical agricultural products, and other essential goods and services across borders, for supporting the health of our citizens”. They also pledged to “take immediate necessary measures to facilitate trade” in such goods, consistent with national requirements.

Echoing language from G20 leaders after a meeting on the pandemic last week, the trade ministers agreed that “emergency measures designed to tackle COVID-19, if deemed necessary, must be targeted, proportionate, transparent, and temporary, and that they do not create unnecessary barriers to trade or disruption to global supply chains, and are consistent with WTO rules”.

The statement highlighted their “commitment to notify the WTO of any trade related measures taken, all of which will enable global supply chains to continue to function in this crisis, while expediting the recovery that will follow”.

In his remarks to the meeting, the Director-General had urged the ministers to leverage trade in their pandemic response, emphasizing that trade could lower the cost of efforts to fight COVID-19, while fostering a stronger economic recovery.

“We can and must scale up the production of things like protective equipment, ventilators, testing kits — and ultimately treatments and vaccines,” he said. “But we want manufacturers to be focused on maximizing output, not figuring out how to source domestically, or whether imported materials or components will ever arrive.”

He also stressed the importance of open trade flows for countries to be able to import essential medical equipment, food and energy.

In addition, DG Azevêdo reiterated his call for governments to share information about any trade-related measures — whether facilitating or restrictive — they introduce as part of their COVID-19 response. “The WTO has set up a transparency process for COVID-19 related trade measures,” he told ministers. “Please lead the way, by promptly sharing information about your policies.”

“The COVID-19 pandemic is unprecedented in our lifetimes,” he said. “It demands unprecedented solidarity and cooperation from governments and international organizations. The WTO stands ready to do its part.”

The extraordinary G20 trade ministers meeting was organized by the Kingdom of Saudi Arabia, which currently holds the group’s rotating presidency.

Source: wto.org

 

194/ 2020 Public Forum theme to be “Building on 25 Years of the WTO”

30 MARCH 2020

The WTO’s 2020 Public Forum, to be held from 29 September to 2 October, will examine the important role the multilateral trading system has played over the past quarter of a century and will look ahead to how the WTO might be strengthened to address existing and future challenges to trade and the global economy, not least unexpected crises such as the COVID-19 pandemic.

Under the main theme “Building on 25 Years of the WTO”, the Public Forum’s sub-themes will be “WTO: past, present and future”, “Innovation in the digital age” and “Collective action for sustainable trade”.

Sessions for the Public Forum are organised by civil society, academia, business, governments, parliamentarians and intergovernmental organizations. The call for proposals will open soon. Registration is due to open on 4 May 2020.

Background

The Public Forum is the WTO’s largest annual outreach event. It provides a unique platform for heads of states, parliamentarians, business people, students, academics and civil society to come together and debate a wide range of trade and development topics. Over 1,500 participants attend the Forum each year.

Source: wto.org

 

195/ Agency chiefs issue joint call to keep food trade flowing in response to COVID-19

31 MARCH 2020

The heads of the World Trade Organization (WTO), the UN Food and Agriculture Organization (FAO) and the World Health Organization (WHO) issued a joint statement on 31 March calling on governments to minimise the impact of COVID-19 related border restrictions on trade in food. “Now is the time to show solidarity, act responsibly and adhere to our common goal of enhancing food security, food safety and nutrition and improving the general welfare of people around the world,” the agency heads said. The Joint Statement is below.

Joint Statement by QU Dongyu, Tedros Adhanom Ghebreyesus and Roberto Azevêdo, Directors-General of FAO, WHO and WTO

Millions of people around the world depend on international trade for their food security and livelihoods. As countries move to enact measures aiming to halt the accelerating COVID-19 pandemic, care must be taken to minimise potential impacts on the food supply or unintended consequences on global trade and food security.

When acting to protect the health and well-being of their citizens, countries should ensure that any trade-related measures do not disrupt the food supply chain. Such disruptions including hampering the movement of agricultural and food industry workers and extending border delays for food containers, result in the spoilage of perishables and increasing food waste. Food trade restrictions could also be linked to unjustified concerns on food safety. If such a scenario were to materialize, it would disrupt the food supply chain, with particularly pronounced consequences for the most vulnerable and food insecure populations.

Uncertainty about food availability can spark a wave of export restrictions, creating a shortage on the global market. Such reactions can alter the balance between food supply and demand, resulting in price spikes and increased price volatility. We learned from previous crises that such measures are particularly damaging for low-income, food-deficit countries and to the efforts of humanitarian organizations to procure food for those in desperate need.

We must prevent the repeat of such damaging measures. It is at times like this that more, not less, international cooperation becomes vital. In the midst of the COVID-19 lockdowns, every effort must be made to ensure that trade flows as freely as possible, specially to avoid food shortage. Similarly, it is also critical that food producers and food workers at processing and retail level are protected to minimise the spread of the disease within this sector and maintain food supply chains. Consumers, in particular the most vulnerable, must continue to be able to access food within their communities under strict safety requirements.

We must also ensure that information on food-related trade measures, levels of food production, consumption and stocks, as well as on food prices, is available to all in real time. This reduces uncertainty and allows producers, consumers and traders to make informed decisions. Above all, it helps contain ‘panic buying’ and the hoarding of food and other essential items.

Now is the time to show solidarity, act responsibly and adhere to our common goal of enhancing food security, food safety and nutrition and improving the general welfare of people around the world.  We must ensure that our response to COVID-19 does not unintentionally create unwarranted shortages of essential items and exacerbate hunger and malnutrition.

Source: wto.org

 

196/ Vietnam gains higher exports to Canada, Mexico partly due to CPTPP

31 March 2020 

Vietnam has taken full advantage of the CPTPP to gain strong growth in exports to Canada and Mexico, according to the Ministry of Industry and Trade (MoIT).

These are the two CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) members that have not yet signed bilateral free trade agreement (FTAs) with Vietnam.

In the first two months of this year, Vietnam’s exports to Canada rose by 20.39% to US$578 million year on year.

With over 37 million people, a high standard of living and an urbanisation rate at 80%, Canada is considered a potential market for many key export items of Vietnam, including textiles, footwear, seafood, tea, pepper, cashew nut, coffee and wooden furniture.

During the first two months, textile and apparel export value reached more than US$100 million, up 5.86% year on year. The export value of mobile phones and accessories surged by 104.22% to US$122.09 million compared to the same period last year.

Other products with strong growth in exports included the group of iron and steel and plastic materials with rates of 153.69% and 354.06% year on year, respectively.

Vietnam’s export value to Mexico reached US$497.2 million in the first two months. Of which, many products gained high export value, including computers, electronic products and components (US$133.6 million), telephones and components (US$122.6 million), shoes and sandals (US$47.5 million), textiles and garments (US$16.3 million), machinery, equipment and other spare parts (US$34.5 million), vehicles and spare parts (US$35.2 million).

Assessing the implementation of FTAs to promote exports, especially the CPTPP, Luong Hoang Thai, director of the MoIT’s Department of Multilateral Trade Policy, said that Vietnam’s enterprises have efficiently exploited markets with which Vietnam has not yet signed FTAs.

In fact, Vietnam’s enterprises have done more than expected, taking full advantage of the CPTPP, Thai said. In 2019, Vietnam gained high growth in exports from the CPTPP countries, especially Canada and Mexico, while the agreement came into effect on January 14, 2019.

The country gained a year on year growth of 26-29% in export value to Canada and Mexico last year, he said.

The CPTPP has partly contributed to the strong growth in exports of Vietnam so the country had a trade surplus of US$1.6 billion with the CPTPP market last year.

Before this agreement, Vietnam had a total trade deficit of US$900 million with this market, said Thai.

Source: NDO/VNA

 

197/ FDI enterprises’ import-export turnover hits nearly US$62 billion

31 March 2020

The growth rate of foreign direct investment (FDI) enterprises accounts for a large proportion of Vietnam’s total import-export turnover, but it is showing signs of decreasing in the first months of the year.

According to the General Department of Vietnam Customs, in the first 15 days of March, the FDI enterprises’ import and export turnover reached US$13.65 billion, increasing by 4.7%, equivalent to US$614 million compared to the second half of February.

From the beginning of the year to the end of March 15, FDI enterprises’ import and export turnover was US$61.77 billion, up 2.7%, equivalent to an increase of US$1.65 billion compared to 2019.

The balance of trade in goods of the FDI sector had a surplus of US$1.64 billion in the first half of March and reached more than US$5.97 billion at the end of March 15.

In the first half of March, the FDI enterprises’ export value reached US$7.64 billion, down 0.4% (equivalent to US$29 million) compared to the second half of February.

Thus, at the end of March 15, the total export value of FDI enterprises reached US$33.87 billion, up 3.4%, equivalent to an increase of US$1.11 billion compared to 2019 and accounting for 67.3 % of Vietnam’s total merchandise export value.

But the proportion of FDI contributions to the country’s total export turnover decreased by 2.3% (contributing 69.6% in 2019).

The FDI enterprises’ import turnover reached more than US$6 billion in the first half of March, increasing by 12% (equivalent to US$644 million) compared to the second half of February.

By the end of March 15, the total import value of FDI enterprises reached nearly US$27.9 billion, up 2%, equivalent to an increase of US$535 million compared to 2019; accounting for 58.7% of the total import value of the country, this proportion is equivalent to the same period in 2019.

Currently, FDI enterprises’ import-export turnover has contributed to almost all major import and export sectors of Vietnam, especially related to electronics such as telephones and computers.

Source: VCN

 

198/ VN records $2.8b trade surplus in Q1 despite pandemic

01 April 2020 

Việt Nam recorded a trade surplus of US$2.8 billion in the first quarter of this year, higher than $1.5 billion seen in the same period last year despite the COVID-19 pandemic sweeping its major export markets.

The domestic sector posted a trade deficit of $4.4 billion while the foreign-invested sector witnessed a trade surplus of $7.2 billion, the General Statistics Office (GSO) has said in its monthly report.

The country’s export turnover was estimated at $59.08 billion during the period, up 1 per cent year-on-year. The export value of the domestic sector saw a year-on-year increase of 8.7 per cent to $18.65 billion, accounting for 31 per cent of the country’s exports. Meanwhile, the foreign-invested sector reaped $40.43 billion from overseas shipments, down 3 per cent year-on-year and making up 69 per cent of the total.

Eight groups of commodities saw export turnover surpassing the $1-billion benchmark during the period, accounting for 71 per cent of the total. Of them, phones and parts earned the largest export turnover of $12.4 billion, accounting for 21 per cent of the nation’s total exports.

Electronic products, computers and components ranked second with $8.2 billion, up 16.2 per cent year-on-year, followed by garments with $6.5 billion, down 9 per cent; equipment and parts ($4.7 billion, up 18 per cent) and footwear ($3.9 billion, down 2 per cent), besides wood and wooden products ($2.5 billion, up 9.5 per cent); transportation vehicles ($2 billion, down 6 per cent) and seafood ($1.6 billion, down 11.2 per cent).

From January to March, the US remained the largest importer of Vietnamese goods with a value of $15.5 billion, a yearly hike of 16.2 per cent. It was followed by China with $8.4 billion, up 12 per cent; the EU ($7.5 billion, down 15 per cent); ASEAN ($6 billion, down 5.2 per cent); Japan ($4.8 billion, up 4 per cent) and South Korea ($4.5 billion, down 3 per cent).

Meanwhile, the country spent $56.26 billion in three-month imports, decreasing 2 per cent compared to last year’s corresponding period, the GSO said.

Production materials were bought for an estimated $52.6 billion, down 1.2 per cent year-on-year and equivalent to 93.5 per cent of the total import value while expenditure on consumer goods stood at $3.66 billion, down 11 per cent, accounting for 6.5 per cent of the total.

In the three-month period, China retained its position as Việt Nam’s largest provider of goods with a turnover of $13.3 billion, down 18 per cent year-on-year. South Korea came next with $11.7 billion, up 2.5 per cent, while ASEAN ranked third with $7.2 billion, down 8.3 per cent, followed by Japan ($4.9 billion, up 16 per cent); the EU ($3.4 billion, up 5.2 per cent) and the US ($3.4 billion, up 13 per cent).

The GSO predicted that once the EU-Việt Nam Free Trade Agreement (EVFTA) comes into effect, Việt Nam’s exports to the EU will surge by over 20 per cent this year and the growth will be on the rise in the following years. Seafood products are expected to benefit most from the deal.

The EU is now the second largest importer of Vietnamese seafood products, behind the US.

Việt Nam’s shipment of farm produce to the EU is also forecast to increase by around 10 per cent this year.

Source: VNS

 

199/ DDG Wolff outlines measures taken in response to COVID-19, highlights key role of WTO

1 APRIL 2020

In a virtual address to the Washington International Trade Association on 1 April, Deputy Director-General Alan Wolff highlighted the range of trade-related measures and policy responses governments have adopted worldwide in response to the COVID-19 pandemic as well as ideas for future trade policy responses. He underlined that the WTO provides an essential forum for international cooperation on how trade can best be deployed to fight COVID-19 and to reduce the disease’s severe negative impact on the world economy and jobs. This is what he said:

This virtual talk produced for the members of the Washington International Trade Association is designed to pull together in one place the highlights of official trade policy pronouncements and proposals made in the last three weeks as governments, business groups and trade experts react to the spread of the novel coronavirus.

The Extinction of Dinosaurs and the Coronavirus

Some 65 million years ago, the dinosaurs that had populated the earth became extinct.  One theory is that a huge asteroid hit the earth and a dust cloud filled the atmosphere, choking the dinosaurs to death.(1)  The facts are a bit more complicated.  The dinosaurs lacked several key attributes that might have helped them survive.  They were not known for their forward planning.  In fact, their thought processes appear to have been generally very narrow and slow.  Their social organization was characterized by a seeming lack of care for other species of dinosaurs.  In short, their ability to create an effective collective response to their predicament was nil.

Untold thousands of millennia later, humans are facing a serious crisis.  If not collectively existential, it is nevertheless  extremely serious.  As a society, our cycle times — getting ideas, agreeing to a plan of action, and acting — are too slow.  The mega-challenges faced are actually two-fold: the threat to human health, and, following hard on the heels of that challenge, the threat to the world economy, and at a personal level, the loss of jobs and savings.

Trade measures in a time of pandemic

Central bankers and finance ministers are used to taking emergency coordinated action to lower interest rates and provide fiscal stimulus when there is a sharp economic downturn.  This has not been generally true of trade ministers.  Trade ministers have not been called upon to act together to counter a world economic downturn since the Financial Crisis in 2008.  The multilateral trading system responded very well then, holding the line against protectionist measures.  All that was called for at the time was inaction — not imposing new restrictions.  This time, the challenge is much greater.  While it includes not taking measures that may cause harm to one’s own population as well as to peoples living outside a country’s borders, it goes beyond that, to consider what might be done as components of a sensible positive response.

Cycle time and the acceleration of events.  It is said that if a brontosaurus was bitten on its tail, it would take a long time for the signal that that had happened to reach its brain.  Sapiens operating as part of societal organizations are better than that. The cycle time does not equal that of instant messaging, but the fact is that around the planet, health professionals,  researchers in laboratories, mechanical engineers in textile mills and automobile plants, software engineers working on 3D printing and a vast array of innovators are working on what is and will become the global response to the coronavirus.

The timeline to date of the on-site responses as seen from the Centre William Rappard, WTO’s headquarters building in Geneva Switzerland.

On 2 February 2020, the New York Times quoted Dr. Anthony S. Fauci, director of the National Institute of Allergy and Infectious Disease, as saying: “It’s very, very transmissible, and it almost certainly is going to be a pandemic.  But will it be catastrophic? I don’t know.” (When I landed in Addis Ababa on 10 February, all airport personnel were wearing face masks.  No masks were in evidence in the airports in Switzerland).

  • On 2 March, the Swiss authorities visited the WTO and suggested handwashing, avoiding kissing, shaking hands and hugging.  They urged the WTO Secretariat to use common sense.
  • On 6 March, a list was drawn up of staff members who should be able to work from home, if a decision were taken to permit that.
  • On 9 March, those with symptoms were asked to stay at home.
  • On 10 March, the first confirmed case of the coronavirus infecting a staff member was notified to all staff.  On the same day, all WTO delegates meetings were cancelled for the next ten days.  Staff with vulnerabilities with respect to health were told to work from home until the end of the month.
  • On 12 March, the Government of Kazakhstan informed the WTO that the Twelfth WTO Ministerial Conference scheduled for 8-11 June would not take place.
  • On 13 March, those with young children at home due to school closures were told that they could work from home.
  • On 14 March, the WTO premises were closed. All WTO meetings were suspended until the end of April.
  • On 15 March, a list was created of 24 staff members who would be given permanent access to the WTO headquarters building.
  • On 16 March, the Swiss cantonal authorities closed all bars and restaurants, and other public places.  All WTO staff were as of that date instructed to work from home through March 31 with the exception of a very few who provided services to others.
  • On 21 March, the WTO Health Task Force circulated an official Swiss regulation that not more than five persons could gather in one place and that even those should stay 2 meters apart from each other.
  • On 23 March, even those given permanent access were barred from entry into the WTO building.  This did not prevent on-site critical staff, such as IT service providers, from working there.
  • On 26 March, all staff were requested to work from home until the end of April.
  • On 27 March, the access to the building was curtailed further and a zero-contact protocol was announced for the building, sharply curtailing the space in which any critical staff could work.
  • As of 4 am on 1 April, the number of people testing positive in Switzerland was 16,605 and the death toll was 433.(2)

Coordinated policy responses timeline (to date)

  • On 21 March, New Zealand and Singapore committed to keeping supply chains open.
  • On 25 March, Australia, Brunei, Canada, Chile and Myanmar joined this pledge.

Canada, Australia, Chile, Brunei and Myanmar have joined forces with New Zealand and Singapore by committing to keep supply chains open and remove any existing trade restrictive measures on essential goods, especially medical supplies, in the face of the COVID-19 crisis.

Trade and Export Growth Minister David Parker today welcomed the announcement. 

“I welcome the commitment made by Canada, Australia, Chile, Brunei and Myanmar in joining New Zealand and Singapore to help ensure our citizens can access the important goods and medical supplies we need in this time of global crisis,” David Parker said. 

“It is important we have assurance from some of our key partners that trade lines between us will remain open, including via air and sea freight, to facilitate the flow of goods including essential supplies. 

“Trade policy on its own can’t solve the problems and challenges we face, but it can and must be part of the solution. We are thinking about next steps to give practical and swift effect to our shared commitment to address the global pandemic through global cooperation.”

JOINT MINISTERIAL STATEMENT BY AUSTRALIA, BRUNEI DARUSSALAM, CANADA, CHILE, THE REPUBLIC OF THE UNION OF MYANMAR, NEW ZEALAND AND SINGAPORE

The COVID-19 pandemic is a serious global crisis.  As part of our collective response to combat COVID-19, Australia, Brunei Darussalam, Canada, Chile, the Republic of the Union of Myanmar, New Zealand and Singapore are committed to maintaining open and connected supply chains. We will also work closely to identify and address trade disruptions with ramifications on the flow of necessities.  

We recognize that it is in our mutual interest to ensure that trade lines remain open, including via air and sea freight, to facilitate the flow of goods including essential supplies.  

We affirm the importance of refraining from the imposition of export controls or tariffs and non-tariff barriers and of removing any existing trade restrictive measures on essential goods, especially medical supplies, at this time. 

We are committed to working with all like-minded countries to ensure that trade continues to flow unimpeded, and that critical infrastructure such as our air and seaports remain open to support the viability and integrity of supply chains globally. 

  • On 26 March, the G20 Leaders had a virtual meeting and issued a declaration that provides respect to international trade:

Addressing International Trade Disruptions

Consistent with the needs of our citizens, we will work to ensure the flow of vital medical supplies, critical agricultural products, and other goods and services across borders, and work to resolve disruptions to the global supply chains, to support the health and well-being of all people.

We commit to continue working together to facilitate international trade and coordinate responses in ways that avoid unnecessary interference with international traffic and trade. Emergency measures aimed at protecting health will be targeted, proportionate, transparent, and temporary. We task our Trade Ministers to assess the impact of the pandemic on trade.

We reiterate our goal to realize a free, fair, non-discriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open.

On 30 March, the G20 trade ministers had a virtual meeting and committed to the following:

Consistent with national requirements, we will take immediate necessary measures to facilitate trade in … essential goods.

We will support the availability and accessibility of essential medical supplies and pharmaceuticals at affordable prices, on an equitable basis, where they are most needed, and as quickly as possible, including by encouraging additional production through incentives and targeted investment, according to national circumstances.

We will ensure our collective response is supportive of micro, small and medium-sized enterprises. 

We agree that emergency measures designed to tackle COVID-19, if deemed necessary, must be targeted, proportionate, transparent, and temporary, and that they do not create unnecessary barriers to trade or disruption to global supply chains, and are consistent with WTO rules.

We will implement those measures upholding the principle of international solidarity, considering the evolving needs of other countries for emergency supplies and humanitarian assistance.

We emphasize the importance of transparency in the current environment and our commitment to notify the WTO of any trade related measures taken,

[We will] seek to mitigate … impacts on international trade and investment, we will continue to work together to deliver a free, fair, nondiscriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open.

We will ensure smooth and continued operation of the logistics networks that serve as the backbone of global supply chains.

We will continue monitoring and assessing the impact of the pandemic on trade.

We call on the international organizations to provide an in-depth analysis of the impact of COVID-19 on world trade, investment and global value chains.

The WTO’s rules provide a wide scope for governments to take emergency actions.  Self-restraint is vitally important.

Proposals for specific future trade policy responses(3)

A discussion paper prepared on 11 March for the later cancelled 18 March Ottawa group meeting included the following point for discussion.  It emphasized broad tariff reductions as a fiscal stimulus measure and posited tariff elimination as a direct response to the coronavirus outbreak.

There is neither sufficient time nor evident WTO Member desire to initiate and conclude a new round of tariff negotiations.  The only effective step would be to engage in autonomous coordinated tariff reduction (ACTR).  To be swift, the action could not be contractual.  It would be reciprocal to the extent that other WTO members voluntarily joined in the action.  The goal could be to for all industrialized nations to cut their applied MFN tariffs to an average of below 5%, developing countries that are not industrialized would cut to an average tariff of 10% ad valorem, and least developed would cut their bound tariffs by 10%, if possible, as a token contribution.  MFN bound tariffs would have to be cut as preferential tariffs are on average already low, and in any event utilization of FTA tariffs may also be low due to cumbersome rules of origin. 

In two areas, [the paper continued] it should be possible to go further than the autonomous cut program.

First, given current circumstances, removing all duties on health-related goods should be politically feasible.  This would include medical equipment, medical supplies, hazardous materials handling clothing, soap, disinfectant and pharmaceuticals.  (Of even greater urgency, a parallel commitment not to impose export limitations on these goods could be considered, although this, as a political matter, could prove more challenging.) 

Secondly, goods that were listed in the suspended Environmental Goods and Services Agreement (EGA) could be cut to zero.  The rationale would be that these goods were already vetted for duty elimination, and autonomous nonreciprocal tariff elimination for these goods (and services) has the additional justification that doing so is good for the environment, and therefore a direct benefit for the country taking the action, whether or not other countries reciprocate.

Would these steps be welcomed by a sufficient number of WTO members?  The health crisis and the slowing global economy individually are justification enough for emergency action.  Broad swaths of business, finance ministers, and central bankers would welcome the move. Markets would react favorably.  The program would be a vote of confidence for the WTO and the multilateral trading system, a concrete and substantial measure of support going beyond rhetoric that is very much needed.  The EU, which is greening its policies, as well as a number of other WTO Members, should see merit in taking this step because of their pro-environment leanings.  The current US Administration should welcome these measures in what it should see as harmonization to its low average tariff level. It might even join in the action. No negotiation would be required over what is an environmental good or why any action should be taken.  

Adoption by a large number of WTO Members is not needed if Members accounting for a significant share of world trade act.

On 26 March, WTO Director General Roberto Azevêdo made three suggestions to the G20 in response to the Leaders statement:

  • G20 members could ask the WTO the WHO, the WCO, and other IOs to establish coordinated norms and best practices to facilitate trade in COVID-19 related health products and services.
  • G20 members could pledge to cooperate to ensure sufficient supply and smooth cross-border circulation of goods and services, in particular, those critical for the crisis and its aftermath
  • G20 members could agree that any recourse to export restrictions should be targeted proportionate, temporary and transparent and commit to sharing information about such measures with the WTO.

On 28 March, John Denton, ICC President wrote a letter to G20 trade ministers with the following recommendations (edited to a summary of the points made):

1. Use trade policy to speed the health response to COVID-19

[I]n order to operationalize G20 leaders’ commitments to ensure the flow of vital medical supplies, we call on G20 trade ministers to:

  1. Eliminate tariffs on essential products. G20 countries must do all they can to ensure the accessibility and affordability of necessary medical supplies.
  2. Expedite trade facilitation for essential products. … [E]stablish ‘green lanes’ to provide for rapid inspection and release of essential products. [R]estrictions must not apply to: personnel whose travel is necessary to:

i.                        scale up the production of medical supplies;

ii.                        develop, test, produce and distribute vaccines; or

iii.                        transport internationally such products.

  1. Eliminate export curbs on essential products.
  2. Suspend all national public procurement regulations and state-required localisation measures that frustrate the cross-border sourcing of essential medical supplies.

2. Keep trade flowing to restore growth and safeguard jobs

We are seeing an unprecedented collapse of value chains in many sectors — with major implications for employment and the supply of goods.

  1. Keep cargo and transport moving.   [A]ddress the shortage of air cargo pilots caused by quarantine requirements.
  2. Extend timeframes for payments of duties and fees.
  3. Keep trade finance flowing. … promoting the use of digital documents.
  4. We also encourage G20 trade ministers to be mindful of the possible need for early policy interventions to maintain liquidity in the trade finance market.

3. COVID-19 must not inhibit long-term reform of the trading system

  1. Comprehensively reform the WTO.
  2. Speed up the transition to digitally enabled trade. [R]ecognise the imperative of achieving a high-standard agreement on the trade-related aspects of e- commerce, built around common rules to ensure open, non-discriminatory access to digital and digitally enabled markets.
  3. Enable digital trade through standardisation. [P]romote greater economic inclusion through the development of open trade standards. … such as the ICC’s Digital Trade Standards Initiative (DSI), that can help move trade from analogue to digital. 

The emerging literature of suggested trade policy prescriptions

  • The extraordinarily valuable Global Trade Alert(4), under the aegis of Simon Evenett of the University of St Galen, suggests the following measures:

Recommended Trade Policy Response — Ease the Delivery of Medical Supplies and Soap.

  1. For at least six months, scrap import taxes and quotas on all needed imported medical equipment, medicines, disinfectant, and soap.
  2. Review all non-tariff barriers affecting imports of relevant medical supplies, excepting those whose sole, demonstrated purpose is to ensure the safety of those supplies.
  3. Publicly commit not to implement export bans or limits on relevant medical supplies.
  4. Reverse existing export bans on medical supplies needed to tackle the Coronavirus.
  5. Strengthen incentives to ramp up domestic production by instituting generous price floors (minimum prices) for medical supplies sold to the state.(5)
  • Wendy Cutler, a highly respected veteran trade negotiator, included the following ideas in a blog that she published on 17 March 2020:
  • The WTO should call an emergency session (virtual) to discuss and act upon the expanding use of export restrictions being placed on medical supplies and related equipment and materials. This is a time when countries should be cooperating and helping one another, not following an “all for me” approach. Article XI of the General Agreement on Tariffs and Trade (GATT) specifically prohibits export bans or restrictions, albeit with limited exceptions that certain countries may argue apply to the current circumstances.
  • The G7 and G20 should announce agreement on an immediate freeze, called a standstill in the trade world, on further tariff hikes, export bans or limitations, and other trade-restricting actions for the remainder of the year.
  • To provide a needed jolt to the global economy and ensure that trade restrictions aren’t exacerbating the current health crisis, the U.S. and China should rollback their respective tariff hikes imposed over the past two years affecting hundreds of billions of dollars of both finished and intermediate goods. To kick-start this process, the United States should immediately (1) rollback the remaining 7.5 percent tariff on the $120 billions of Chinese imports imposed last September that affect certain medical and consumer-related products; and (2) make the temporary product exclusions granted so far, including on medical-related products, permanent. With these good-faith actions, China would have no choice but to follow suit.
  • Recognizing that there will likely be pandemics in the future, the WTO should launch negotiations, on a plurilateral basis if necessary, to eliminate tariffs and other restrictions on the wide range of medical-related equipment, supplies, and materials. This sectoral tariff exercise should be modeled after one of the few successful WTO agreements, the Information Technology Agreement, which involved a critical mass of WTO members.(6)
  • Jennifer Hillman, former member of the WTO’s Appellate Body, a senior fellow for trade and international political economy at the Council on Foreign Relations, put forward the following policy suggestions:
  1. Eliminate Tariffs on Imports of Pharmaceuticals and Medical Equipment
    Recommendation: G-7 and G-20 leaders should agree to temporarily suspend all tariffs on needed pharmaceuticals, medical devices and supplies, along with disinfectants and soap.  These global leaders should encourage all other countries to follow suit.
  2. Agree Not to Impose Export Bans on Medical Supplies and Medicines
    Recommendation: The G-20 countries should agree not to impose export bans or limits on relevant medical supplies and should urge other countries to follow suit. Keeping markets open is the surest way to create incentives around the world to ramp up production of needed equipment and medicines.
  3. Green-light Subsidies for Production of Medicines and Medical Supplies
    Recommendation: WTO members—either formally or informally—should reinstate the concept of a non-actionable or “green light” subsidy found in Article 8 of the WTO’s Agreement on Subsidies and Countervailing Measures for all subsidies provided to companies producing medical equipment, supplies, disinfectants, and other goods used in combatting coronavirus and for all research conducted to discover vaccines against or medicine to treat the virus.
  4. Waive “Buy America” Provisions Limiting Government Procurement
    Recommendation: The President should use the authority granted to him by Congress to waive Buy America requirements for medical supplies, devices, equipment, disinfectants, and soap to ensure that government-owned hospitals and clinics, Veterans Affairs, and Health and Human Services have access to all needed materials to fight against coronavirus, no matter where they are made. Issuing a sweeping waiver right now would give all government medical providers the comfort of knowing that they could make necessary purchases as quickly as possible without concern over whether the items are covered by Buy America or not.
  5. Speed Up the Visa and Entry Requirements to Permit Medical Personnel to Travel Where Needed
    Recommendation:  The administration should announce immediate efforts to expedite the processing of H-1B visas for health care professionals, including waiving the $4,000-$4,500 fee currently being incurred by hospital and health-care providers employing foreign health care workers. The Administration should also seek a temporary waiver of the 20,000-person cap on the number of highly skilled workers who can be admitted this year.
  6. Agree to Compulsory Licensing of Intellectual Property Rights on Needed Pharmaceuticals and Medical Devices
    Recommendation: G-20 countries should commit to making newly discovered vaccines, effective medicines and patented medical devices available at reasonable costs throughout the world, whether through compulsory licenses or other alternatives to monopoly pricing under traditional intellectual property protections. All those who have the capacity to manufacture these key medicines should be given the opportunity to make them and distribute them to those in need.(7)
  • Anabel González, Senior Staff Research Member, Peterson Institute for International Economics, has the following recommendations:

Lower tariffs on pharmaceuticals, medical devices, and other medical supplies.  A starting point is the indicative list of essential COVID-19 medical supplies published by the World Customs Organization. 

Improve trade facilitation to reduce the cost of moving health-related products and materials across borders.  Cross-border movement of relief goods is critical to support the sick in a timely manner, as well as domestic producers who rely on imported inputs to manufacture these products. China and the European Union have established “green lanes” to provide for rapid inspection and release of goods to avoid delays in importing critical supplies. The World Customs Organization can help with simplified procedures and improved risk management.

Adopt international standards to ensure the quality and safety of imported health-related products.  Pharmaceutical products and medical devices are typically subject to product registration and approval to ensure consumer safety and public health. Even while not specifically designed to restrict trade, the regulatory regime for these products can unreasonably limit access to medicines and medical equipment. Domestic regulations incompatible with international standards should be eased, and complex and lengthy procedures to assess conformity with those standards should be speeded up. One option is to provide for automatic registration of medical supplies that have already met standards in advanced economies.

Allow health professionals to move across borders.  Movement of doctors, nurses, and health professionals is needed especially in poorer countries. Special visas, work permits, and more flexible regulations can help.

Share knowledge via e-health and other cross-border digital interactions. Telemedicine is rapidly becoming the first line of defense against the coronavirus. The global health community is turning to digital technologies, data, and cross-border e-health interactions to share evidence and experience to detect, prevent, respond to, and recover from COVID-19. A sound digital framework is key to support the free flow of data, protect privacy and security, and overall provide a trusted environment for digital exchanges.

Ensure that appropriate intellectual property protection does not hinder development of new technologies and drugs.  New technologies—such as 3D-printing respirator parts developed by Italian engineers—can address shortages. Inventors of those innovations deserve intellectual property protection, but their needs must be balanced against the global significance of the pandemic.

Avoid export restrictions.  More than 24 nations have reportedly taken steps to limit their exports of medical equipment, such as face masks, and medicines and their ingredients. In the 2006–08 food crisis, export restrictions reduced global food supplies and caused price surges.  In the past, it has proven difficult to multilaterally discipline abuse of these restrictions, despite the harm they do to exporters and importers alike by raising prices, discouraging investment, and provoking retaliation. To meet rising global demand for personal protective equipment (face masks, goggles, etc.), manufacturing must increase by 40 percent. The solution is to utilize subsidies or other measures to stimulate global production and expedite distribution.

Take collective trade action.  Governments should enhance, not restrict, global trade cooperation, if not among all, at least among the willing. They should agree to a freeze on export bans, ease recent restrictions, and exercise self-restraint when the impact is devastating. Governments could also negotiate agreements to slash tariffs and nontariff barriers on health-related products, building, for example, on the WTO initiative on trade in pharmaceuticals. Increased certainty of open markets would stimulate investment. Governments could also develop a detailed framework to support medical services trade reform or e-health services to facilitate the flow of medical knowledge and expertise. Importantly, they could take advantage of the WTO to conduct these negotiations.(8)

Ms. González on 27 March supplemented these recommendations with the following recommendations with respect to global value chains:

Large manufacturers should expand and convert current production facilities to increase capacity, leveraging global and regional value chains; international transportation and logistics firms should prioritize movement of COVID-19-related gear and parts and components.  [M]ultinationals should move to retrofit production lines in their developing-country plants to produce PPE to serve the needs of patients, be they in New York or in Honduras. and for final products to get to hospitals and patients in a timely manner.

Governments in developing countries should facilitate investment in and operation of companies and commit to trade policy measures that keep supply chains moving.

Governments in advanced countries should ensure that procurement regulations do not hinder foreign sourcing, make product standards freely available, and expedite approvals of imported supplies. They also need to keep supply chains open and support poor countries hit by COVID-19.  Governments should follow the EU example by making freely accessible technical standards needed for the production of certain medical devices and equipment, while expediting approval of COVID-19-related supplies.

The World Bank and other development institutions should provide development finance to complement private investment, technical advice to developing countries to strengthen their own public health response capabilities, and financial aid to poor countries.(9)

Attention is needed in the application of product standards

Tariffs can, when they are substantial, slow trade.  Standards all too often stop trade.  This is a particularly acute problem now. Some policy makers seek self-sufficiency, and standards can be a tool that supports achieving that aim.  That said, autarky is not a viable policy long term, and it is completely impossible in the short term.  Trade experts worry that regulatory measures will inadvertently slow the limited supply of essential medicines and medical products.  Product standards are particularly important to assure quality for most of these products.  There is an entire world of specialists who deal with the normal challenge of assuring conformity with standards.  Risk assessments must continue but red tape has to be cut.  These are not normal times.  This means finding reliability in other ways and in other places.  Shipments need to move without interruption.

Existing supplies need to respond flexibly to changing needs.  The incidence of the virus peaks in different locations at different times.  This can help with management of supplies, but new sources and increasing quantities have to enter the market smoothly.  Solutions to avoid duplicative processes need to be found.  The costs of trade are growing and need to be pared back.
The WTO is a forum for sharing expertise on managing the promulgation and administration of standards.  Virtual meetings of the Committee on Technical Barriers to Trade will be held. New regulations and conformity assessment procedures will continue to be notified and discussed, and concerns raised.  This is now more important than ever.  All participants in these meetings need to work toward the objective of increasing efficiency without any unacceptable reduction of the margin of safety.  International standards need to be adhered to in combatting the pandemic.  They have to be fit for purpose, and not an obstacle to meeting the challenge.  Best practices need to be shared.  Alternative procedures that facilitate the international flow of medical equipment and supplies may be necessary.

COVID-19 poses a global challenge and it will require a global response.  The framework for cooperation exists within the WTO.  It is there for Members to utilize.  Standards-making and administration have been a remarkably cooperative endeavor under the Agreement on Technical Barriers to Trade.  The framework of the Agreement and the WTO’s structure and processes are well-adapted to assisting Members in their urgent efforts to increase supplies of essential products and facilitating getting them to where they are needed most.

Feeding the planet

All countries are dependent on trade in agricultural products, both to feed their own people and to assure their livelihoods through exports.  In this time of crisis, restrictive border measures are proliferating.  Just as in manufacturing, there is an international food production chain.  It is more sensitive to disruptions as food can spoil, particularly fruits and vegetables.  Disruptions need to be managed from the farm to the table, often through added value through local processing.  At a time of this pandemic, other causes of disruption, such as unavailability of sufficient farm labor, are also of concern.

There is flexibility to impose trade measures under the WTO agreements to meet the current emergency.  It is imperative that the pandemic be dealt with in the least trade-restrictive way possible.  This is necessary not just for the sake of efficiency, but for the cause of food security.  Volatility of supplies can price the poor out of the market as was witnessed during the 2008 food crisis.  Should this occur again, public instability would add unnecessarily to the burdens placed on social structures by the disease itself.

In normal times and in times of crisis food must be able to flow from surplus to deficit countries.  Safety from disease and security of food supply are co-equal needs.  Full transparency is needed with respect to both trade measures and the information needed to fulfil needs.

The WTO provides a vitally important forum for exchanging information and for adopting practices that limit the adverse effects on other nations.

On 31 March, the heads of the FAO, WHO and WTO issued a Joint Statement which I part reads:

Millions of people around the world depend on international trade for their food security and livelihoods. As countries move to enact measures aiming to halt the accelerating COVID-19 pandemic, care must be taken to minimise potential impacts on the food supply or unintended consequences on global trade and food security.

When acting to protect the health and well-being of their citizens, countries should ensure that any trade-related measures do not disrupt the food supply chain.  …

Uncertainty about food availability can spark a wave of export restrictions, creating a shortage on the global market. … We learned from previous crises that such measures are particularly damaging for low-income, food-deficit countries and to the efforts of humanitarian organizations to procure food for those in desperate need. 

… It is at times like this that more, not less, international cooperation becomes vital. In the midst of the COVID-19 lockdowns, every effort must be made to ensure that trade flows as freely as possible, specially to avoid food shortage. …. .

We must also ensure that information on food-related trade measures, levels of food production, consumption and stocks, as well as on food prices, is available to all in real time. … .

Now is the time to show solidarity, act responsibly and adhere to our common goal of enhancing food security, food safety and nutrition and improving the general welfare of people around the world.  We must ensure that our response to COVID-19 does not unintentionally create unwarranted shortages of essential items and exacerbate hunger and malnutrition.(10)

Moving to a war footing

  • On 26 March, Andrew Cuomo, Governor of New York State, which was facing a huge outbreak of coronavirus cases, stated: “This is a war, we have to treat it like a war.”
  • The next day US President Donald Trump invoked a long dormant war powers authority, the Defense Production Act, to order General Motors to manufacture ventilators.

The United States has known how to ramp up production rapidly to meet wartime demand.

  • In May 1940, President Franklin D. Roosevelt called for the production of 185,000 aeroplanes,120,000 tanks, 55,000 anti-aircraft guns and 18 million tons of merchant shipping in two years. In 1939, annual aircraft production for the US military was less than 2,141 planes. The 1938 number was tripled in 1940.  The 1940 number was tripled again in 1941, and in 1942 it was 250% larger than in 1941.  By the end of the war US factories had produced 300,000 planes.

There was no medically useful penicillin when World War II began in Europe. This is how the shortfall was remedied:

A team of an Australian researcher working at Oxford University successfully cured infected mice with penicillin on May 25, 1940.  in July of 1941 to continue research and seek help from the American pharmaceutical industry, they relocated to Peoria, Illinois. They convinced four drug companies, Merck, E. R. Squibb & Sons, Charles Pfizer & Co., and Lederle Laboratories, to aid in the production of penicillin. …The Oxford team searched for more productive strains of Penicillium notatum, finding the best specimen growing on an over-ripe cantaloupe in a Peoria grocery store. … Following Japan’s attack on Pearl Harbor on December 7, 1941, it was clear to scientists and military strategists that a combined effort was needed to produce the large amounts of penicillin needed to win the war.(11)

By the Fall of 1944,

the U.S. government’s interest in the drug spurred more than 20 companies to join the efforts to produce sufficient quantities of penicillin. Production ramped up so much that by the invasion of Normandy in June 1944, companies were producing 100 billion units of penicillin per month.(12)

The United States, the world’s manufacturing powerhouse when WWII was being waged, became the arsenal of democracy. Underutilized capacity will exist in the United States in the coming months, but manufacturing is also distributed far more globally.  Much as national policy makers might wish for immediate self-sufficiency, that is not possible.  Global value chains must be brought back to life, nourished and expanded.  That is a global responsibility.  International financial institutions can help fund the conversion of existing facilities from general consumer textiles and apparel to face masks and protective garments.(13)

There may be workforce availability issues where quarantines are in place. The coronavirus is the equivalent of a neutron bomb(14).  The machinery and plants are left in place. The workforce is not.

Capability is essential, including the knowhow to produce sophisticated equipment that is desperately needed now.  To be successful, all the tributary streams of components must be maintained and strengthened. It will then be imperative that final products be made available globally.  The CEO of Germany’s top ventilator producer is quoted in the FT on 30 March as saying:  “We source different parts that we need from suppliers around the world.  A lot comes from Europe but also from the US, Asia, Australia and New Zealand.  These supply chains must not be interrupted under any circumstances.  If they [are], the whole world has a problem.”

International trade flows are vitally important to providing an effective global response to the pandemic.

Trade policy in a time of coronavirus

The WTO provides an essential forum for international cooperation with respect to how trade can best be deployed to fight COVID-19 and to reduce the disease’s severe negative impact on the world economy and jobs.  It can accomplish this by keeping borders open to needed medical supplies, by connecting production in any location with demand wherever needs exist, by opening borders to those who can provide essential services, by keeping the digital economy open and by balancing the need for fostering innovation through the protection of intellectual property with the exigencies of the current emergency.  One area that requires immediate attention: Addressing the fact that the rules for the digital economy are scant, and those that do exist (such as the moratorium on applying customs duties on electronic transfers) are fragile.

This is a time for international cooperation.  The need has never been greater. Fortunately, there are positive examples of it taking place.  Korea has provided the United States with the technological knowhow it gained in creating drive-through virus test centers, now deployed in the United States. The White House announced in the last few days that the first cargo jet had left Shanghai on its way to New York with badly needed medical supplies.  It is the first of twenty flights, the White House announced, in a modern airlift.(15)

With respect to the rules governing international trade, the place for that international cooperation is the WTO.

Notes:

  1. https://www.history.com/topics/pre-history/why-did-the-dinosaurs-die-out-1. back to text
  2. Switzerland has very limited testing available but has the highest number of tests per million of population of any country according to the Financial Times. back to text
  3. There are some redundancies in this section, as a number of respected experts would be expected to have overlapping policy prescriptions, and they do.  I have kept their recommendations as they were, but for eliminating most of the supporting narratives.  In addition, the experts will have moved on to other recommendations, or updated existing ones.  This is a snapshot of what existed at a particular moment. Moreover, there are other respected and knowledgeable individuals whose recommendations are not included here.  This is, however, a reasonable sample.  back to text
  4. See https://www.globaltradealert.org. The site is unmatched for up to date information on trade-distorting measures. back to text
  5. The Trade Policy Dimension: Tackling the Coronavirus, St Gallen, March 11, 2020. https://www.globaltradealert.org/reports/50 back to text
  6. https://asiasociety.org/policy-institute/coronavirus-need-adjust-and-reshape-our-trade-agenda back to text
  7. https://www.thinkglobalhealth.org/article/six-proactive-steps-smart-trade-approach-fighting-covid-19back to text
  8. https://www.piie.com/blogs/trade-and-investment-policy-watch/memo-trade-ministers-how-trade-policy-can-help-fight-covid back to text
  9. https://www.piie.com/blogs/trade-and-investment-policy-watch/yes-medical-gear-depends-global-supply-chains-heres-how-keep back to text
  10. https://www.wto.org/english/news_e/news20_e/igo_26mar20_e.htmback to text
  11. Thanks to Penicillin…He Will Come Home!”  The Challenge of Mass Production, A Lesson Plan from The Education Department, The National WWII Museum. back to text
  12. https://cen.acs.org/articles/83/i25/Penicillin.html back to text
  13. Nine US apparel manufacturers have begun producing masks today, 30 March, and aim to produce 5-10 million by mid-April. FT “US factories retool from hoodies to face masks to fight coronavirus”. back to text
  14. A specialized type of nuclear weapon that would produce minimal blast and heat but would release large amounts of lethal radiation.  Encyclopedia Britannica. back to text
  15. Not since the Berlin Airlift, can one recall this term being used in this fashion. https://www.nytimes.com/reuters/2020/03/29/world/asia/29reuters-health-coronavirus-trump-airlift.htmlback to text

Source: wto.org

 

200/ ICC, WTO heads urge business dialogue to inform response to trade fallout from COVID-19

2 APRIL 2020

WTO Director General Roberto Azevêdo and International Chamber of Commerce Secretary-General John Denton issued on 2 April a joint statement calling for more dialogue with business to maximize the effectiveness of public policies to mitigate the economic damage resulting from the COVID-19 pandemic, particularly with regards to trade.

“We are concerned about the severe disruptions to value chains in many sectors — with major implications for employment and the supply of goods, especially essential medical and food supplies,” they said in the 2 April statement. “Business can play a key role in signalling where trade flows and production chains are being affected, helping to identify solutions that maximize health outcomes while minimizing economic damage.”

“It is increasingly clear that the economic downturn caused by the pandemic will necessitate a significant rebuild of domestic policies — and of international cooperation,” they said. “Ongoing efforts to improve and strengthen the global trading system, including the WTO, must therefore continue.”

The two leaders welcomed governments’ efforts “to mitigate the pandemic’s effects on jobs and growth, and lay the foundations for a strong and inclusive recovery.” To generate “constructive recommendations to governments on trade policy measures that can be readily deployed to speed the response to the COVID-19 pandemic in the immediate and mid-term,” they said the ICC would host a “virtual business roundtable” organized with its partners, as well as with support from the WTO.

Source: wto.org

 

201/ WTO issues new report on worldwide trade in COVID-19 medical products

3 APRIL 2020

The WTO Secretariat has released a new report on trade in medical products critical for the global response to the COVID-19 pandemic. The report traces trade flows for products such as personal protective products, hospital and laboratory supplies, medicines and medical technology while providing information on their respective tariffs.

Trade in medical products which have now been described as critical and in severe shortage during the COVID-19 crisis(1) totalled about US$ 597 billion in 2019, accounting for 1.7% of total world merchandise trade according to the report. The ten largest supplying economies accounted for almost three-quarters of total world exports of the products while the ten largest buyers accounted for roughly two-thirds of world imports.

Commitments made under various WTO negotiations and agreements have helped slash import tariffs on these products and improve market access, with the average tariff on COVID-19 medical products standing at 4.8%, lower than the 7.6% average tariff for non-agricultural products in general. The statistics show that 52% of 134 WTO members impose a tariff of 5% or lower on medical products. Among them, four members do not levy any tariffs at all: Hong Kong, China; Iceland; Macao, China; and Singapore. The report, however, also identifies markets where tariffs remain high. Tariffs on face masks, for example, can be as high as 55% in some countries.

Key points

  • Germany, the United States and Switzerland supply 35% of medical products; (2)
  • China, Germany and the United States export 40% of personal protective products;
  • Imports and exports of medical products totalled about US$ 2 trillion, including intra-EU trade, which represented approximately 5% of total world merchandise trade in 2019;
  • Trade of products described as critical and in severe shortage in the COVID-19 crisis totalled about US$ 597 billion, or 1.7% of total world trade in 2019;
  • Tariffs on some products remain very high. For example, the average applied tariff for hand soap is 17% and some WTO members apply tariffs as high as 65%;
  • Protective supplies used in the fight against COVID-19 attract an average tariff of 11.5% and go as high as 27% in some countries;
  • The WTO has contributed to the liberalization of trade in medical products in three main ways:
  • The results of tariff negotiations scheduled at the inception of the WTO in 1995;
  • Conclusion of the plurilateral sectoral Agreement on Pharmaceutical Products (“Pharma Agreement”) in the Uruguay Round and its four subsequent reviews;
  • The Expansion of the Information Technology Agreement in 2015.

The report is available here.


Notes

  1. Those products include: computer tomography apparatus; disinfectants/ sterilization products; face masks; gloves; hand soap and sanitizer; patient monitors and pulse oximeters; protective spectacles and visors; sterilizers; syringes; thermometers; ultrasonic scanning apparatus; ventilators, oxygen mask; X-ray equipment; other medical devices. They are frequently mentioned by countries, international organizations and in news reports as the goods in short supply.  Back to text
  2. The values of imports and exports in this study are calculated at HS 6-digit subheading level. Those subheadings could cover products that are for non-medical use.  Back to text

Source: wto.org

 

202/ European Council passes final procedure for EVFTA

03 April 2020

The European Council on March 30 passed a decision to ratify the EU-Vietnam Free Trade Agreement (EVFTA), paving the way for the deal to come into force.

The European Council on March 30 passed a decision to ratify the EU-Vietnam Free Trade Agreement (EVFTA), paving the way for the deal to come into force.

Once ratified by the Vietnamese National Assembly, the deal will officially take effect expected at the beginning of this summer.

The EVFTA is expected to create a major push for Vietnam’s exports, helping diversify the country’s exports and markets.

Under the agreement, Vietnam will cut 65 percent of import tax on EU commodities right after the deal takes effect, while the rest will be erased in a 10-year period. Meanwhile, the EU will cut more than 70 percent of tariff on Vietnam’s commodities right after the deal takes effect, while the rest will be abolished in the seven subsequent years.

The document, together with the EU-Vietnam Investment Protection Agreement, was signed in Hanoi on June 30 last year. They include intensive, extensive and comprehensive commitments covering the fields of economy, trade, investment and sustainable development issues./.

Source: VNA

 

203/ Vietnamese economy to grow despite COVID-19: ADB

03 April 2020 

Việt Nam’s economic growth rate is expected to slow sharply to 4.8 per cent this year due to the impact of the COVID-19 pandemic, said a new Asian Development Bank (ADB) report released on Thursday.

The report showed the country would suffer an ongoing drop in demand from its principal trade and investment partners.

Economic growth decelerated to 3.8 per cent in the first quarter of 2020, compared to 6.8 per cent in the same period last year. Travel and other restrictions imposed by the Government to slow the spread of the virus led to lower domestic consumption. Manufacturing weathered early headwinds but inputs, including those part of global value chains, are being depleted.

Growth in agriculture stagnated because of lower demand for agricultural exports and severe saline intrusion in the Mekong Delta.

“Growth in services, the sector hardest hit by the pandemic, was halved to 3.2 per cent in the first quarter of this year, down from 6.5 per cent in the corresponding period in 2019,” said the report.

ADB experts said that to support economic activity, in early March the Government unveiled a US$10.8 billion credit relief package of debt restructuring and lowered interest rates and fees. The Government also launched a fiscal package worth $1.3 billion that reduces taxes and fees for affected firms and defers tax payment.

Meanwhile, the central bank cut policy rates by 0.5-1 per cent, lowered interest rate caps on VND deposits of less than six months and on short-term VND lending to prioritised sectors.

According to ADB’s flagship annual economic publication Asian Development Outlook 2020, the Vietnamese economy’s fundamentals remain resilient. If the pandemic is contained within the first half of 2020, growth should rebound to 6.8 per cent in 2021 – ADB’s pre-COVID-19 forecast for Việt Nam in 2020 – and remain strong over the medium and long-term.

“Despite the deceleration in economic activity and the downside risks posed by the COVID-19 pandemic, Việt Nam’s economic growth is projected to remain one of the highest in Southeast Asia,” said ADB Country Director for Việt Nam Eric Sidgwick.

Drivers of economic growth— like the growing middle class and a dynamic private sector are still robust. The country’s business environment continues to improve, while public spending to combat the impact of the pandemic will likely be raised further.

The large number of bilateral and multilateral trade agreements Việt Nam participates in, which promise improved market access, will help the country’s economic rebound. Việt Nam would also benefit from the containment of the pandemic and eventual return of economic growth of China, which would help revive the global value chains.

Source: VNS

 

204/ NA Standing Committee to consider ratification of EVFTA in April

03 April 2020

The National Assembly Standing Committee (NASC) has asked relevant agencies to complete the dossier on the ratification of the EU-Vietnam Free Trade Agreement (EVFTA) for submission to the NASC at its 44th session, scheduled for mid-April this year.

According to the NASC, the trade deal is expected to be ratified by the National Assembly at the 14th National Assembly’s ninth session.

Earlier, the European Council signed a decision on ratifying the EVFTA on March 30, paving the way for the deal to come into force.

The EVFTA will take effect after it is ratified by the Vietnamese National Assembly and 30 days after the two sides have completed the procedures to notify each other.

The trade pact is expected to create a strong boost for Vietnam’s exports, helping to diversify markets and export items, particularly agricultural and aquatic products and products for which Vietnam has competitive advantages.

Source: NDO

 

205/ Regulations on goods origin in CPTPP revised from May 8th

03 April 2020

The Minister of Industry and Trade recently signed theissuance of Circular No. 06/2020 / TT-BCT amending and supplementing articles of Circular No. 03/2019 / TT-BCT regulating rules of goods origin in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

In particular, new C / O formsin the CPTPP attached to this circular have beenamended and supplemented at boxes 1, 2, 3, 5 and 11. The guidelines for declaring new C / O formshave beenamended in accordance with Circular No. 06/2020 / TT-BCT at the attached appendix.

The timely issuance of new C / O forms under Circular No. 06/2020 / TT-BCT, replacing the former forms in Circular No. 03/2019 / TT-BCT, helps solve problems of some businesses upon exports to some CPTPP markets and creates more favorable conditions for businesses in taking advantage of opportunities from enjoying tariff preferences in theagreement.

Circular No. 06/2020 / TT-BCT will take effect from May 8, 2020. C/O issuers willgrant new C/O forms on the same day with the effective date of the circular.

Previously, the CPTPP agreement, which came into effect in Vietnam on January 14, 2019, provided opportunities for Vietnamese exporters to expand markets and enjoy tariff preferences, especially inmarkets that Vietnam has not had free trade agreements in like Canada, Mexico andPeru.

For businesses to take advantage of tariff preferences when the CPTPP is effective, the Ministry of Industry and Trade issued Circular No. 03/2019 / TT-BCT dated January 22 2019, regulating rules of goods origin in the CPTPP agreement and guiding documents.

Before businesses’ comments on the fact that some CPTPP member countries said new C/O forms in the CPTPP of Vietnam lacks statements proving the origin of manufacturers and exporters as prescribed in section 9, Appendix 3- B of the agreement, the Ministry of Industry and Trade has requested C/O issuers guide traders to declare this content in C / O forms in the CPTPP at the request of the importer.

Along with that, the Ministry of Industry and Trade will also review and amend Circular 03/2019 / TT-BCT to add the above-mentioned content.

Source: VCN

 

206/ Economists: More measures needed to support enterprises amid COVID-19

06 April 2020

More measures and policies should be introduced to support enterprises, especially small and medium-sized enterprises (SMEs), in the context of a growing number of businesses temporarily ceasing operations due to the COVID-19 pandemic, economists have said.

More measures and policies should be introduced to support enterprises, especially small and medium-sized enterprises (SMEs), in the context of a growing number of businesses temporarily ceasing operations due to the COVID-19 pandemic, economists have said.

Figures from the National Database on Business Registration show that some 6,553 enterprises withdrew from the market during March, a 55.5 percent increase year-on-year. Of these, 2,452 registered to temporarily suspend their operations, or 78.6 percent more than in the same period of 2019.

Meanwhile, nearly 12,300 new enterprises were established during the month with total registered capital of over 131.3 trillion VND (over 5.5 billion USD), down 1.6 percent in number and 2.5 percent in capital year-on-year.

In the first quarter of 2020, the country had 29,711 newly established enterprises, a rise of 4.4 percent year-on-year. This is one of the lowest increases in the number of Q1 newly-established businesses from 2015-2019 (the average increase is 10.9 percent).

During the three-month period, total additional capital in existing enterprises was down 23.5 percent compared to the same period of 2019, revealing that enterprises are afraid of investing more in production and business given the pandemic.

Deputy Minister of Planning and Investment Tran Quoc Phuong said the Government is considering issuing a raft of policies to help enterprises stabilise their production and business activities during these difficult days, particularly measures relating to extensions on timelines for tax payments and introducing tax reductions.

According to Phan Dinh Thuy, head of the General Statistics Office (GSO)’s Industry Statistics Department, the GSO has proposed that priority be given to supporting SMEs and household businesses facing difficulties in securing materials for production.

Relevant authorities, he went on, should also adopt special policies to support enterprises operating in agriculture, transport, and tourism, which have been most affected by the pandemic.

He added that credit institutions need to ensure they hold adequate capital for production and business, especially for seasonal sectors and those facing difficulties regarding consumption.

Meanwhile, Nguyen Viet Phong from the GSO’s Construction and Investment Capital Department stressed the importance of public investment in promoting growth in the construction sector.

He explained that every 1 percent of growth in public investment in the sector contributes 0.06 percentage points to GDP growth.

The Government, he continued, has paid due regard to flexibly operating monetary policy, interest rates, and exchange rates in accordance with domestic and international market movements, at the same time harmonizing fiscal and other macroeconomic policies to control inflation, support production and business, and promote economic growth.

Most economists agree that relevant authorities need to focus on other solutions such as increasing the ability to meet production needs, promoting the development of the domestic market, meeting the internal demands of the economy, and gradually replacing imported goods with domestically-produced goods./.

Source: VNA

 

207/ SUPPORTING NURSES AND MIDWIVES ON WORLD HEALTH DAY

6 April 2020

It is not just when there’s a pandemic that nurses and midwives work tirelessly for the good of public health. It is every single day, and ensuring they can work to their full potential is a powerful step towards universal health coverage. This year’s World Health Day theme is “Support Nurses and Midwives” and ISO has International Standards to help.

Educating nurses and midwives to International Standards makes economic sense, according to the World Health Organization (WHO). Improving health, promoting gender equality and supporting the financial strength of the economy are just some of the benefits of a well-functioning healthcare system where nurses and midwives can work to their full potential.

As we celebrate World Health Day with this goal in mind, ISO has just approved a project to develop an International Workshop Agreement (IWA) designed to improve the quality of clinical learning environments for healthcare professionals.

Aimed predominantly at nurses and midwives, the future IWA 35Quality of clinical learning environments for healthcare professionals – Requirements, will offer a global approach to ensuring the quality of clinical learning environments for healthcare trainees across the world.

Sally Swingewood, Convenor of the ISO working group that is developing the document, said that nursing and midwifery make up 50 % of the healthcare workforce in many countries. This, coupled with a global shortage of professionals, means there is a crucial need for qualified staff with broad clinical experience who are well equipped to adapt to a wide variety of needs.

“Much has been done over the years to improve nursing training in academic settings, but the same level of attention has not been given to clinical placements,” she commented. “Yet, with increased migration and mobility, there is a greater demand on healthcare professionals to deal with a wider range of cases and settings. So effective clinical placements are key. Some countries have guidelines at a national level on how to evaluate clinical placements and some have none at all, hence the need for a globally agreed standard in this area.”

Also in development is another ISO standard that aims to support nurses and midwives from a management level. The future ISO 22956Healthcare organization management – Guidelines for patient-centered staffing, aims to help healthcare organizations best consider and provide for workforce capabilities and resources in relation to patient needs.

Dr Veronica Muzquiz Edwards, Chair of the ISO technical committee* responsible for the standard, said: “COVID-19 has been declared a global pandemic and the world is in awe with respect and appreciation for the many nurses and midwives who are selflessly focusing on the patients at this time. This standard recognizes that nurses and midwives need adequate support and resources to be more effective and that a patient-centered approach to staffing can have a positive impact on the safety and quality of patient care.”

When published, both documents will join the hundreds of other ISO International Standards for healthcare.

For more information about ISO standards for health, see our dedicated page on ISO.org.

*ISO 22956 is being developed by ISO technical committee ISO/TC 304Healthcare organization management, the secretariat of which is held by ANSI, ISO’s member for the USA. Anyone interested in getting involved in its development should contact their national ISO member.

Source: iso.org

 

208/ WTO, WCO chiefs pledge joint efforts to facilitate trade in essential goods

6 APRIL 2020

The heads of the WTO and World Customs Organization (WCO) issued a joint statement on 6 April pledging to work together to facilitate trade in essential goods such as medical supplies, food, and energy.

WTO Director-General Roberto Azevêdo and WCO Secretary General Dr. Kunio Mikuriya said the two organizations would work closely together to minimize disruption to cross-border trade in goods — in particular those essential to combat the COVID-19 pandemic — while safeguarding public health.

They also pledged to establish a coordinated approach to support initiatives that facilitate cross-border trade so that essential goods can quickly reach those most in need, including in least developed and land-locked countries.

WTO and WCO members have already been invited to increase transparency by sharing information on new trade and trade-related measures introduced in response to the COVID-19 pandemic.

“As COVID-19 continues to spread globally and governments consider new measures to protect the health and well-being of their citizens, we urge Members to ensure that any new border action is targeted, proportionate, transparent and non-discriminatory,” they declared.

The text of the joint statement is below.

WCO-WTO Joint Statement on COVID-19 related trade measures

The COVID-19 pandemic, while above all a public health crisis, presents the world with unprecedented social and economic challenges.  Emergency measures needed to curb the spread of the disease have unintended impacts on the world economy and trade, including the global supply chains that produce and distribute essential goods such as medical supplies, food, and energy.

To support the ongoing efforts to mitigate the social and economic effects of the pandemic, we, the Secretariats of the World Customs Organization (WCO) and the World Trade Organization (WTO), agree to work closely together to minimize disruption to cross-border trade in goods — in particular those essential to combat COVID-19 — while safeguarding public health. We commit to provide appropriate support to all relevant stakeholders.

Within our respective mandates, we have already invited Members to increase transparency by sharing information on new trade and trade-related measures introduced in response to the COVID-19 pandemic. To the extent appropriate, we are making such information publicly available through our respective websites.

We are also willing to establish a coordinated approach in support of initiatives that facilitate cross-border trade in goods, in particular those key to combat COVID-19. This would allow that essential goods can quickly reach those most in need, including in least developed and land-locked countries.

As COVID-19 continues to spread globally and governments consider new measures to protect the health and well-being of their citizens, we urge Members to ensure that any new border action is targeted, proportionate, transparent and non-discriminatory — as agreed by G20 leaders. We stress that these measures should be temporary, and we encourage Members to rescind them once they are no longer needed, especially if they restrict trade. We welcome initiatives to facilitate and simplify cross-border procedures and urge our Members to prioritize those for exporting and importing essential goods.

As the pandemic evolves, we will continue to further explore ways to coordinate the efforts of the two organizations in response to the COVID-19 pandemic aimed at keeping trade flows open for the safety of populations around the world and a strong recovery of the global economy.

Source: wto.org

 

209/ WTO launches call for proposals for 2020 Public Forum

7 APRIL 2020

The WTO has issued a call for proposals for this year’s Public Forum, whose theme is ‘Building on 25 Years of the WTO’. Participants interested in organizing sessions at the Forum, scheduled to take place from 29 September to 2 October, are invited to submit their proposals by 1 June 2020.

This year’s Public Forum will examine the important role the multilateral trading system has played over the past quarter of a century and will look ahead to how the WTO might be strengthened to address existing and future challenges to trade and the global economy, not least unexpected crises such as the COVID-19 pandemic.

Further information on this year’s theme and three sub-themes — WTO: past, present and future; Innovation in the digital age; and Collective action for sustainable trade — is available here.

All the sessions at the Public Forum are organised by the participants. These include civil society, academia, business, governments, parliamentarians and intergovernmental organizations. Participants interested in organizing working sessions or workshops will find further details in this information note.  The online application form can be accessed from the information note and should be completed no later than 1 June 2020.

Background

The Public Forum is the WTO’s largest annual outreach event. It provides a unique platform for heads of states, parliamentarians, business people, students, academics and civil society to come together and debate a wide range of trade and development topics. Over 1,500 participants attend the Forum each year. See more information on previous Public Fora.

Source: wto.org

 

210/ Việt Nam issues list of special preferential tariffs for goods imported from Cuba

07 April 2020 

The Government has recently issued Decree No 39/2020/NĐ-CP on a list of Việt Nam’s special preferential import tariffs to implement the Việt Nam – Cuba Free Trade Agreement from now until 2023.

Accordingly, goods subject to the special preferential tax rates must be imported and directly transported to Việt Nam from Cuba in compliance with the trade deal.

They must meet rules of origin as stipulated in the agreement and be accompanied with certificates of origin (C/O).

Goods imported from Việt Nam’s non-tariff areas are also subject to the preferential tariffs if they satisfy these requirements.

The decree will become effective from May 20.

Source: VNS

 

211/ COVID-19: ILO Việt Nam willing to help Vietnamese gov’t, employers, workers

08 April 2020

Country Director of the International Labour Organisation (ILO) Việt Nam Chang-Hee Lee has said that ILO Việt Nam stands ready to help the Vietnamese Government, employers and employees to find suitable jobs as the coronavirus takes its toll on the health and labour markets and the economy.

Lee hailed Việt Nam for its efforts to control the COVID-19 pandemic, reflected via the Prime Minister’s message of accepting economic losses to protect people’s lives.

As the fight against the epidemic continues, it is necessary to take immediate action to mitigate its negative impacts on businesses, employment and workers’ incomes, he said.

According to the ILO, the crisis will cut the total working hours by 6.7 per cent worldwide in the second quarter of this year, equivalent to the loss of 195 million full-time jobs. The hardest-hit regions include Arabian countries (8.1 per cent of working hours, or 5 million full-time jobs), Europe (7.8 per cent, or 12 million full-time jobs) and Asia-Pacific (7.2 per cent, 125 million full-time jobs).

The ILO forecast there will be huge losses across all income groups, especially in upper-middle income countries, including those in Southeast Asia.

An estimated 81 per cent of the global workforce, or 3.3 billion people, are being hurt by partial or full-closure of their workplaces. The most-affected sectors include lodging and dining services, manufacturing, retail, trade and administrative services.

ILO General Director Guy Ryder said workers and businesses are facing a catastrophe in both developed and developing economies.

The ILO has called on countries to take urgent measures on a large scale in four pillars, namely supporting businesses, employment and income; stimulating the economy and employment; protecting workers; and using social dialogue between governments, workers and employers to seek solutions.

It suggested expanding social welfare, supporting job retainment, tax reductions and fiscal support for micro, small and medium-sized enterprises, along with several sectors.

Source: VNS

 

212/ German firms optimistic about VN economy’s recovery in the medium-term

08 April 2020

German enterprises were optimitic about the medium-term recovery of the Vietnamese economy, according to the AHK World Business Outlook 2020 released by the Association of German Chambers of Commerce and Industry (DIHK) on Tuesday.

Although German firms expressed concerns about negative impacts of the COVID-19 pandemic on their business with 82 per cent of investors forced to lower revenue growth targets in the 2020 fiscal year, they expected recovery to come in the medium term.

Up to 72 per cent of the respondents to the survey on which the report was based said they would continue to invest in Việt Nam while 27 per cent plan to recruit more workers.

Domestic demand and economic policies were identified as the major challenges to the country’s economic development in the next 12 months, according to the report.

German firms also felt pain from the pandemic at different levels and from different perspectives.

Specifically, some 86 per cent of surveyed firms said that the suspension of entry and exit as well as the imposition of travel limits significantly affected their business operation. About 59 per cent said that the COVID-19 pandemic disrupted their supply chains, 55 per cent faced cancellation of orders and 50 per cent were forced to postpone their plans for new investment.

Still, 2020 was predicted to be a challenging year for the global economy due to the COVID-19 crisis and its impacts on business.

Customs’ statistics showed that Việt Nam exported goods worth US$455 million to Germany in January, a drop of 25.3 per cent against the same period last year due to the impact of the COVID-19 pandemic. Major export products of Việt Nam to Germany were phones and components, footwear and garment products.

Germany was the biggest trade partner of Việt Nam among 28 member countries of the European Union (EU). The bilateral trade between the two countries accounted for 28 per cent of the total trade of Việt Nam with the EU.

The two-way trade totalled $10.25 billion last year, in which, Việt Nam’s export was $6.55 billion.

Germany has 358 existing projects in Việt Nam as of March 20, worth more than $2 billion, according to statistics from the Foreign Investment Agency.

Source: VNS

 

213/ Trade ministry proposes resuming rice exports

08 April 2020

Minister of Industry and Trade Tran Tuan Anh on April 6 sent an urgent official dispatch to Prime Minister Nguyen Xuan Phuc after collecting opinions from relevant ministries and agencies relating to rice export management.

Accordingly, the MoIT proposed to allow rice exports but strictly control monthly quota after careful consideration to ensure food security amid the COVID-19 pandemic.

The plan takes into account suitable solutions to maintain rice production to ensure economic growth while ensuring food security.

Especially, the plan was also based on the official announcement from the Ministry of Agriculture and Rural Development on the rice volume of 3.2 million tonnes which could be exported in the winter-spring crop. This is the remaining quantity after ensuring normal domestic consumption and reserves.

The ministry said the country shipped around 1.7 million tonnes of rice under signed export contracts as of March 31. Therefore, the rice export volume in the future would be 1.5 million tonnes. Meanwhile, the total rice reserves in the next two months before the summer-autumn crop would be 700,000 tonnes.

Notably, the rice exports would be only allowed through international border gates including road, railway, seaway and airway which were connected to the General Department of Customs for observation.

In addition, the ministry required the 20 biggest rice exporters to sign agreements with at least a supermarket system to ensure food reserves for circulation. The MoIT could revoke the licences for rice exports if exporters do not meet the requirement.

Earlier, the Government announced on March 25 to ban signing new rice export contracts to ensure sufficient domestic supplies to cope with the COVID-19 pandemic.

Source: VNA

 

214/ Trade forecast press conference

8 APRIL 2020

Remarks by DG Azevêdo

Hello everyone. You have all seen the press release, so I will keep this short to allow more time for questions.

The format of this press briefing is not the only unusual thing about this year’s forecast. COVID-19 has upended the global economy, and with it, international trade.

The pandemic is first and foremost a health crisis. We at the WTO are profoundly saddened by the loss of life that has occurred around the world. A number of our colleagues have fallen ill with the virus. We share the anxiety that has shaken households everywhere.

This pandemic is also however a major social and economic crisis. Millions of people around the world have already lost jobs and income. Our forecast reflects the enormous ongoing shocks to supply and demand.

We project that trade in 2020 will fall steeply in every region of the world and across all sectors of the economy.

In light of the uncertainty about the pandemic’s precise duration and economic impact, forecasts are inevitably based on strong assumptions. As a result, our economists have developed two plausible scenarios instead of their usual single set of numbers.

In an optimistic scenario, our economists see the volume of global merchandise trade falling by 13% this year compared to 2019.

If the pandemic is not brought under control, and governments fail to implement and coordinate effective policy responses, the decline could be 32% — or more.

Again, let me emphasize that all these projections are highly uncertain given the large number of unknown factors at play here. For instance, credit market stresses are affecting the availability of trade finance.

Nevertheless, these numbers are ugly — there is no way around that. Comparisons with the financial crisis of 2008 and even the Great Depression of the 1930s are inevitable.

And that is why I want to emphasize that the underlying causes of this economic crisis are very different from the previous ones. Our banks are not undercapitalized. The economic engine was in decent shape. But the pandemic cut the fuel line to the engine. If the fuel line is reconnected properly, a rapid, vigorous rebound is possible.

Two factors will determine the strength of our recovery. One, how quickly the pandemic is brought under control. And two, the policy choices governments make.

A strong rebound is more likely if policymakers show businesses and households reason to believe the pandemic was a temporary, one-time economic shock. To do this, fiscal policy, monetary policy, and trade policy must all pull in the same direction. A turn towards protectionism would introduce new shocks on top of those we are currently enduring. Keeping markets open to international trade and investment would help economies recover more quickly.

Our economists estimate that, if the pandemic is brought under control relatively soon, and the right policies are in place, trade and output could rebound nearly to their pre-pandemic trajectory as early as 2021 — regardless of how steep the initial fall is. But there are other scenarios in which trade volumes post-recovery would remain below the pre-COVID trendline.

It is worth remembering that even before the first COVID-19 case was registered, we were not making the most of trade’s potential to drive growth. This new forecast we’re issuing today confirms that global merchandise trade was falling at a significant pace in the final quarter of 2019.

The WTO is one of many international organizations coming out with depressing statistics this week.

As we confront what may well be the deepest economic downturn of our lifetimes, we should aim to make the most of all potential drivers of sustainable growth to reverse the situation.

Governments around the world can and must lay the foundations for a strong and socially inclusive recovery. Trade — and international coordination more generally — will be important ingredients here. If countries work together, we will see a much faster recovery than if each country goes it alone.

Thank you all.

Source: wto.org

 

215/ DDG Wolff: Time to start planning for the post-pandemic recovery

9 APRIL 2020

The multilateral trading system must start preparing to assist in the recovery of the global economy following the COVID-19 crisis, WTO Deputy Director-General Alan Wolff said in a virtual lecture delivered to the Washington International Trade Association on 9 April. DDG Wolff cited a number of ways in which trade can be facilitated to aid in the recovery. His remarks are below:

Meeting the Challenge of the Coronavirus

State of Play as Seen from the WTO

A Virtual Talk, Washington International Trade Association (WITA)

For the multilateral trading system during the current crisis it is necessary to engage in a process of triage in setting priorities.

  • The first, most pressing issue, is dealing with the threat to public health.
  • The second priority is dealing with the calamitous decline of the global economy and preparing to assist in the essential recovery that must follow.
  • The third priority is to consider structural reforms for the WTO and the world trading system to make it more effective.

Today, we are dealing with the first of these priorities, and I would argue, it is time to plan for the second priority.  In addition, governments should be thinking about the third priority, even if action will only come later.  We need to learn from our responses to the crisis and its aftermath and consider before too long what institutional reforms current experience will suggest.

Priority 1.   DEALING WITH THE THREAT TO PUBLIC HEALTH

On 3 April  2020 the WTO released a report on trade in medical products(1).  The salient points of the report are:

  • Medical products account for approximately 5% of total world trade (imports and exports); this is about $2 trillion, more than half of imports are medicines;
  • About one-third of total trade in medical products is described as critical and in severe shortage in the COVID-19 crisis; they total about $597 billion (or 1.7%) of total world trade in 2019;
  • Tariffs on some products remain very high.
  • For example, the average applied tariff for hand soap is 17% and some WTO Members apply tariffs as high as 65%;
  • Protective supplies used in the fight against COVID-19 attract an average tariff of 11.5% and is as high as 27% in some countries;
  • The number of export restrictions on exports is substantial and growing.
  • The WTO coronavirus website points to two categories of measures that should be of particular multilateral concern, national export controls on medical supplies, equipment and medicines and those applied to food.
  • The two categories are dissimilar in one major respect.
  • Supplies of ventilators, personal protective equipment, and some medicines deemed relevant to treating Covid-19 symptoms, are in short supply. 
  • Food is not in short supply.  In fact, global cereal production is headed toward the third highest level on record.(2)

WHAT IS THE IMPACT OF THE PANDEMIC ON WORLD TRADE?

The WTO released its Trade Forecast yesterday, April 8.  The forecast is sobering:

  • World trade is expected to fall by between 13% and 32% in 2020 as the COVID‑19 pandemic disrupts normal economic activities … around the world. UP TO A ONE THIRD DROP IN WORLD TRADE.
  • The predicted decline … will likely exceed the [decline] in trade brought on by the global financial crisis of 2008‑09.
  • Nearly all regions will experience double digit declines in 2020.
  • Trade will likely fall more steeply in product sectors with complex value chains.
  • Services trade will likely be very adversely affected, especially in transportation and travel.
  • Estimates of the expected recovery are currently very positive for 2021 but are uncertain, with outcomes depending largely on the duration of the outbreak and the effectiveness and extent of the policy responses, and
  • I would add, epidemiologists point out that every outbreak of influenza during the last 250 year had a second wave.(3) 

Discussion

What is behind the trade forecast?  Of course, supply shocks and demand falling are two primary explanations.  But there is more.

  • The costs of trade – moving goods from a  factory or farm to the other side of an international border – increased by a staggering 25% estimated conservatively.
  • The increase in trade costs is caused by a variety of factors — global value chains being impaired, commercial travel being shut down, along with curtailed logistics.
  • To assess what increased trade costs of this magnitude means in terms of impact, consider that current applied global tariffs average 7.6% on the value of the imported goods; retail margins are well below that figure; online margins are often at under 1%, and for most retail sectors the margin is between 0.5% and 3.5% of cost of goods sold.(4)
  • This means that to the extent producers cannot absorb the increase in trade costs, the consumers must do so to the extent that they are physically present in the market and can afford to pay more.  Since demand is also strangled by half the globe’s peoples being locked down, with many unemployed, the net effect is a dramatic fall in trade.
  • Liberalized trade in medical products stems from:
  •   The schedules of bound tariffs, the results of almost a half century prior tariff negotiations;
  •   The plurilateral zero tariffs Agreement on Pharmaceutical Products in the Uruguay Round and its four subsequent reviews;
  •   The Expansion of the Information Technology Agreement in 2015.
  • SPS – rules based on international scientific standards are to be applied
  • TBT – technical regulations, standards, and conformity assessment procedures are to be non-discriminatory and not create unnecessary obstacles to trade.
  • Currently, positive responses have been made by individual Members:
  • A number of major importing countries have eliminated tariffs on needed medical imports – EU according to press reports, US with respect to its China tariffs.
  • New Zealand, Singapore, Australia and four other regional countries have
  • Affirmed the importance of refraining from the imposition of export controls or tariffs and non-tariff barriers and of removing any existing trade restrictive measures on essential goods, especially medical supplies, at this time.
  • Committed to working with all like-minded countries to ensure that trade continues to flow unimpeded, and that critical infrastructure such as our air and seaports remain open to support the viability and integrity of supply chains globally.
  • The WTO Secretariat is supporting the G20.  It is also working with other international organizations – WHO, FAO and WCO — suggesting appropriate policies, as well as establishing a business forum with the ICC.
  • The WTO is informing its Members and the public of Covid-19 related trade measures on a dedicated website.

Why did this happen?

THE POSITIVE TRADE POLICY FOUNDATION THAT IS ALREADY IN PLACE

The urgent need to find a vaccine for medical supplies and medicines has some laudable aspects.  Scientific information is being shared among researchers looking for a vaccine without pausing to publish in scientific journals to get the credit that may be due.  Urgent attempts are being made by industry to ramp up production to overcome shortfalls in supply.  Emergency airlifts are delivering  supplies to affected areas, bypassing international borders and overcoming past and current enmities and other obstacles.

There are also substantial downsides.  The market is not a perfect means of allocating scarce supplies when human lives are at risk.  Governments are limiting exports and demanding that domestic production be reserved for national consumption.  There is a rising chorus of cries of “foul” with current allocations, including claims of “modern piracy” when expected shipments are said to disappear en route.(5)  Supplies are being priced out of the reach of developing countries and competing purchasers.  In the scramble for procurement and to meet demand, substandard, nonfunctional goods are sometimes found.

Pre-emptive purchasing is not the kind of measure that the WTO traditionally looks at.  If the actors are private, this is generally considered a matter for competition authorities and not within the scope of the WTO’s rules.  This does not mean that there should not be international discussion in multilateral fora of this practice, and if Members wish, within the WTO.  Pre-emptive purchasing certainly affects trade flows.  When governments are involved, it is the opposite side of the coin from the conduct that the Government Procurement Agreement is designed to regulate, and arguably should receive international attention.

Importantly, the WTO has tools that are adaptable to meet a number of the current challenges.

  • They go beyond providing transparency and a forum to discuss the trade aspects of the medical device coronavirus issues.
  • All of the following would work in the same direction, serving the same laudable objective, namely, lowering the costs of trade –
  • The multilateral trading system provides the only forum for multi-participant tariff elimination.
  • The Members can choose to take coordinated action.  Speed might require actions in parallel rather than by negotiated agreement.
  • Directly relevant:

Tariffs

[The] WTO Pharmaceutical Agreement … came into force on January 1, 1995 and eliminated tariffs in signatory countries for all WTO members on a nondiscriminatory, Most Favoured Nation (MFN) basis.
The original list of 7,000 items has been updated periodically. The first update in 1996 saw duties eliminated on a further 496 pharmaceutical items; 642 items in the second update in 1998, and 823 items in the third update in 2006 … There are now 34 signatories to the Pharmaceutical Agreement.
Given that WTO Pharmaceutical Agreement members such as the US, EU, Switzerland, and Japan are amongst the biggest players in the global pharmaceutical market, this implies that a large proportion of global trade in pharmaceuticals is tariff-free.
 However, three major emerging pharmaceutical manufacturing nations, namely, China, India and Brazil, are notably absent from this agreement, as are major importing nations such as Russia, Mexico and Turkey.

Export restrictions

In a time of pandemic, the WTO rules accord great flexibility to limit exports of critical medical materials in short supply.  GATT Article XI (2) 1 provides
That the provisions of paragraph 1 of this Article [prohibiting export restrictions] shall not extend to the following: 
(a)  Export prohibitions or restrictions temporarily applied to prevent or relieve critical shortages of foodstuffs or other products essential to the exporting contracting party;
While at some future point, there might be litigation as to whether short supply did exist for a particular product and whether the measure was otherwise applied in a justifiable manner, litigation is not a useful response in the present.  As a practical matter, it is not the rules that will prevent what objectively might be seen as excessive use of export restrictions, it is self-restraint supported by full transparency.

As was the case for decades with the national security exception of the WTO/GATT, Members may not wish to create a potential precedent through litigation that narrowed the scope for emergency use of export restrictions.  What is needed is mutual understanding among key exporting countries that export restraints are self-defeating.  WTO notifications and consultations may not cure the problem of a resurgence of export restrictions but could lead to some mutual self-restraint.

I do not underestimate the political difficulties of rolling back export restrictions, which action would have to be justified to domestic audiences which are facing shortages of critical goods.  Self-restraint would need to be seen as being reciprocated.   In a pandemic, it is vitally important that global supplies do not go underutilized, fragmented into local hoardings.  It is less selflessness than self-interest that will keep borders open.

One suggestion that has been made is to create a forum at the WTO for dealing with the current crisis:

A WTO committee on crisis response should be established to minimize disjointed responses to crises and create a venue for coordinated action and discussion of trade measures taken—notified and not notified—in times of crisis. The WTO is a familiar venue for countries to assess foreign trade measures, request additional information, and head off disputes before they spiral out of control.  As trade-restrictive measures proliferate, the WTO’s ability to convene countries and offer a space for mediation prior to dispute settlement is more important than ever.(6)

Going forward, it can be determined, whether there would be substantial Member support based on current experience for a WTO Arrangement on Dealing with Short Supply.  This could logically encompass pre-emptive purchasing as well as the use of export controls.

Food and agricultural products

As noted earlier, there is no global shortage of food, as evidenced by cereal production which is headed for attaining the third highest level since records have been kept.  In addition, stock levels relative to consumption for major grains are 70-100% higher than in 2007/08.  This does not mean that the agricultural sector is immune from the effects of the coronavirus pandemic.  Export restrictions have been notified and others put into place that have not yet been notified.  A few major producing and exporting Members have suspended exports of key food staples (e.g. wheat, wheat flour, buckwheat, rice, sunflower seeds and oil, eggs), processed food (e.g. pasta, sugar, animal feed, bran, salt, etc.), and some vegetables. Additional sanitary and phytosanitary requirements, especially with respect to live animals have been imposed.   To date, the export restrictions in place will mostly have limited effects other than in local markets.  The level of transparency regarding the introduction of temporary export prohibitions and restrictions is, however, short of what it should be.

At this point, the FAO does not anticipate major disruptions due to the export restrictions that have been put into place.  Food prices have been declining due to demand being suppressed by measures taken to slow the spread of the coronavirus.  Monthly sugar prices are down 19% and vegetable oil by 12%.  Dairy prices are down by 3% due to supply chain disruptions affecting demand.

There are problems, however.  Farm labor shortages due to restrictions on the movement of people are being experienced in a number of countries in Europe, North America, Latin America and Asia.  In Latin America, labor shortages are affecting soybean and meat processing, and in Malaysia the palm oil harvest will reportedly be severely depressed due to labor shortages where workers have gone home to other countries(7). Logistical issues are a major factor going forward, affecting both supply and demand.  Offsetting these factors to an extent, are subsidies and increased plantings in the agricultural sector designed to increase supplies.  Argentina lifted its export tax on rice and lowered the export taxes on other products.  Australia is subsidizing air freight linked to the fall off of commercial service.

The World Food Program has warned(8) of dire effects on the poorest countries due to the strain on their economies, failing logistics and the potential for panic buying.  The worries cited are not about a shortfall of global supplies, but about trade disruptions, the high levels of LDC public debt and potential price spikes.  In 2008, cash crop farmers suffered substantial harm.  It could be worse this time.  Logistics can adversely affect not only shipments but plantings.  The loss of most of the availability of air freight hurts high value exports.

Measures that could be taken to reduce disruptions due to the pandemic that have been listed by experts at the World Bank, the FAO and other international institutions include: removing trade restrictions and refraining from introducing new ones; increasing technical guidance on sanitary standards; focusing on keeping global food chains fully functioning; moving approved imports through green channels; and labeling employment in the agriculture sector as “essential” and therefore unimpeded by economy wide restrictions.

Services

The WTO Trade in Services and Investment Division is monitoring the services sectors that are suffering heavy losses due to the pandemic. There is a sharp drop of demand for services as industries and consumers relying on them are increasingly locked down.  Some services require physical proximity between suppliers and consumers, such as tourism and passenger transportation (air, maritime, land).  Some services require onsite work by  suppliers, such as maintenance contracts, which cannot be fulfilled due to travel restrictions.  The lockdown of consumers affects trade in demand for services closely related to goods trade as well, such as maritime freight transportation.  Similarly, the curtailment of passenger flights cuts express delivery options.

There are some offsets for services as a whole. Those that can be delivered online and those which facilitate delivery online are in increasing demand. This includes online retail, health, education, telecommunications and audiovisual services.  All are working to expand online supply as well as consumption. This may result in a substantial permanent shift toward reliance on e-commerce.

There is a heightened awareness of digital-enabling services as the current boundaries of remote working conditions have tested.  This should lead to a more public policy focus on the needs of the global digital economy.  It would be costly to watch an accelerated growth of national and regional digital regulatory frameworks in isolation from international coordination.  To do so would risk the same sorts of conflicting standards and differing requirements that travelers from Europe face when trying to plug an appliance into a socket in North America, Asia, Australia or New Zealand, and vice versa.

Eight national and regional organizations representing a substantial portion of the world’s service providers issued a joint statement dated 1 April 2020 with suggested reactions to the current pandemic.  The group notes that “Financial services, ICT services, retail and distribution, and transportation and logistics services are all examples, though not exhaustive, of critical enablers of trade in goods and agri-food products, as well as services that enhance social welfare.”

In their joint statement, the eight associations make the following recommendations:

  • Cargo flights must be able to continue in order to move critical life-saving medical equipment and supplies, as well as other goods that consumers rely for daily sustenance.
  • Government should also consult about facilitating greater use of passenger aircraft for essential deliveries of critical supplies.
  • Sophisticated medical equipment and therapies cannot be put in place without key medical services.
  • … the work of individual service suppliers, such as technicians that service (e.g. maintenance & repair services) critical medical equipment, is also crucial to fighting the pandemic. Governments should therefore ensure that travel restrictions justifiably put in place do not have unintended consequences that inhibit the cross-border movement of critical services.
  • Banks, insurers, reinsurers, electronic payment service suppliers, mutual funds and pensions, and related professions supporting them, including call centres and in-person customer support functions, must be allowed to facilitate the purchase and delivery of those goods and food supplies.
  • Information and communications technology (ICT) services … must remain available so that essential supply chains can continue to function. … [B]usiness services allow continuous access to the goods and services that are needed to protect against COVID-19.
  • Some ICT services are especially critical. They include: remote exchanges among research teams to fight against the virus and look for medicines and vaccines; e-health services to allow daily medical services be delivered to millions of patients; e-learning services to allow teachers to continue the education of millions of pupils and students; teleworking facilities to allow workers to stay at home but continue to sustain economic activity; and connectivity services that minimize the adverse effects of social distancing.
  • Free flow of anonymous medical/health data among trusted partners should be ensured in this context.
  • It is therefore vital that countries cooperate multilaterally to avoid constricting the global supply of these essential enabling services through an uncoordinated patchwork of country lockdowns.
  • … [G]overnments [need] to be transparent about the measures that they are taking nationally to respond to COVID-19, including in services sectors.

An obvious candidate for inclusion in any list of recommendations would be to make permanent the moratorium on the imposition of customs duties on electronic transfers.  The moratorium, having been extended often for two-years at a time, is about to expire once again in June of this year.

Product standards

On 19 March 2020, Hoe Lim, Lauro Locks and Devin McDaniels of the WTO Trade and Environment Division, published an article via LinkedIn entitled Facilitating trade to address Covid 19 crisis(9).  It made the following key points, updated and summarized here:

  • Trade in medical products must continue to flow to fight the global covid-19 pandemic. No one country can alone produce the wide range of supplies, devices and drugs in adequate quantities. International exchange is the critical conveyor belt between excess demand and supply.
  • Even without a pandemic, suppliers of medical products must navigate and comply with a diverse range of measures and procedures.  At the same time, medical products do pose complex risks and controls are often needed to mitigate them.
  • Can products which can prove conformity with international standards be allowed entry without additional checks?
  • Can duplicative testing be reduced – for instance, can trading partners accept tests from other countries instead of requiring re-testing in their own labs?
  • Can inspection frequency be reduced based on risk assessment, so that only the highest risk shipments receive greater scrutiny?
  • Can an audit of a manufacturing facility (of the most risky and sensitive products) by your trading partner be relied upon by national authorities of the producing country, rather than conducting an additional repetitive audit?
  • Trade-facilitating TBT measures can take the form for example of special Conformity Assessment Procedures (CAP), Mutual Recognition Agreements or Arrangements (MRA), alignment with international standards, or other schemes for expediting approval of, and thus quicker access to, novel medication, medical devices or medical supplies essential for combating the pandemic. These are expressly encouraged under Articles 6 and 9 of the Agreement on Technical Barriers to Trade (TBT Agreement).
  • Brazil  recently notified a range of temporary and exceptional alternative conformity assessment procedures in response to covid-19, that streamline and expedite access for personal protective equipment, pharmaceuticals and medical devices, including by using remote assessment and recognizing audits carried out by trading partners.
  • Ukraine notified temporary and exceptional procedures that broaden market access for personal protective equipment and medical devices which otherwise would not comply with its technical regulations, but the use of which are considered necessary to protect health due to the pandemic. 
  • Canada notified related measures in the context of previous pandemics or health emergencies.
  • The TBT’s strong transparency obligations are more flexible with respect of measures taken to respond to urgent situations, including “urgent problems of health”. This means that governments can use this flexibility to apply measures as quickly as possible.
  • Peru recently notified a technical specification for a “textile face mask” for community use as an urgent measure.

Priority 2.  RESCUING THE WORLD ECONOMY

While policy measures that may aid in the recovery are not the top priority for most governments at present, it is expected that they may be needed within a matter of weeks. 

Trade restrictions did not cause the Great Depression of the 1930s and trade restrictions certainly did not cause the plummeting of international trade during the coronavirus.  Shocks to supply and a fall of demand were the principal factors.  Nevertheless, trade restrictions contributed to the economic downturn in both cases, mercifully so far to a much lesser extent in the current crisis.  But as was true from 1934 onward, trade liberalization played an important part in the economic recovery.

There a number of ways in which trade can be facilitated.  Those that suggest themselves for inclusion in any list of potential measures to aid in the recovery:

  • Trade Facilitation Agreement Implementation.  Progress has been made toward this objective.  It is, as one would expect, not uniform.  An assessment should be made of current progress and deficiencies should be addressed.  For LDCs and developing countries this may require receipt of substantial additional technical assistance which will in turn entail substantial funding by international financial institutions.  Much of the implementation will be digital, and here the digital divide must be overcome.
  • Tariff reduction and elimination.  The clearest fiscal policy tools for which trade ministers have responsibility are the conditions for imports and exports.  In a world of global value chains, which may be damaged and reduced but are on the whole unavoidable if both Adam Smith and David Riccardo’s teachings are not to be tossed into an intellectual dustbin, making trade more costly makes little sense.  Exports of a very large number of goods are dependent on inputs from a variety of sources.  Testimony to this fact is available from the CEO of a major German producer of ventilators, which sources components from half a dozen different geographically diverse and distant sources.

Included in my talk to WITA on 1 April 2020(10) was the idea of there being mutual autonomous coordinated tariff reductions (ACTR), with a goal for all industrialized nations to achieve a cut in applied MFN tariffs to an average level of below 5%.  For developing countries that are not industrialized, the envisaged cut would be to an average tariff of 10% ad valorem.   The least developed countries could aim for a reduction in their bound tariffs by 10%, if possible.  These targets are solely for the purpose of discussion.  The largest developed countries actually have average tariff levels below 5% and would each still need to contribute.  The 10% target level for developing countries may be too difficult to reach, so another number at a still moderate resulting tariff level might be chosen.  The 10% cut in LDC tariffs might not fit all LDCs, but some contribution would be welcome.  The tariff reductions would through  suspensions of existing tariffs and not a contractual obligation.  Negotiating tariff reductions in a timely manner would not be feasible.  The duration of the suspension could be for a year or two and cold be renewable.

In two areas, it should be possible to go further than the autonomous cut program.

  • First, making permanent zero duties on all health-related goods (including medical equipment, medical supplies, hazardous materials handling clothing, soap, disinfectant and pharmaceuticals(11)).
  • Second, goods that were listed in the suspended Environmental Goods and Services Agreement (EGA) could be cut to zero.  The rationale would be that these goods were already vetted for duty elimination.
  • A third area would be to update duty free treatment of information technology goods.  The coverage of the ITA was to have been reviewed in 2018, but this did not occur.

Trade finance

Trade finance for small and medium enterprises never fully recovered from the Financial Crisis.  The WTO has for several years been engaged in an initiative to increase the availability of trade finance for small and medium-sized enterprises,  by developing ways to address shortages of trade finance.  This has included meetings with representatives of multilateral development banks involved in trade finance, the Financial Stability Board Secretariat, leading private sector financial institutions and companies, and professional associations such as the Bankers Association on Finance and Trade, the International Chamber of Commerce, the Berne Union, Factoring International and G-NEXID.

The WTO proposals are to: support multilateral development banks’ trade finance facilitation programs by way of advocacy; help increase capacity- building support; maintain an open dialogue with trade finance regulators; and continue to track trade finance gaps.

A very large share of the trade finance market supports transactions in developing countries and between developing countries. As we know from the Asian Development Bank’s Trade Finance Gap survey, this is where the trade finance gaps are the largest.

The shutdowns to fight the spread of Covid-19 have a particularly disastrous effect on small businesses.  When asked recently what should be done for small business, an official of the OECD said by way of preamble: “Well, for small businesses, if there are any . . .”.   Urgent attention should be paid to meeting the needs of small business.  It should be noted that initiatives aimed at the empowerment of women will disproportionately benefit small businesses (and vice versa), and so are mutually reinforcing objectives.

Priority 3.  WTO STRUCTURAL REFORM

The world is balanced on a knife’s edge, between increasing nationalism and international cooperation.  Solid arguments can be made as to which of each of these opposite courses of action will prevail.  The jury is out on which will provide the new standard for the world trading system.  Dystopia or closer cooperation. 

It is not too early to consider what lessons are being learned now during the pandemic, and what experience from the prior 25 years of the WTO’s history suggest areas of improvement – for the rules and the processes, for how negotiations are conducted and how disputes are settled, for the way in which the Members organize their activities, and for the kind and amount of support that the Members would expect from the WTO’s professional secretariat.  

The G20 called for WTO reform before the  Covid-19 crisis arrived.  The crisis has not reduced the need for reform, it has made it ever more necessary.  It will take place after more urgent needs are met, but the reform effort should not be put off for long.  There is nothing to prevent consideration now.  Governments actually do have the capacity to address more than one aspect of trade policy at a time.  A shut down of facilities during this health emergency does not require a shutdown of planning for what should follow.

Notes

  1. Trade In Medical Goods In The Context Of Tackling Covid-19, https://www.wto.org/english/news_e/news20_e/rese_03apr20_e.pdfback to text
  2. Agricultural Market Information System.  See the latest monitoring report here:  https://reliefweb.int/sites/reliefweb.int/files/resources/AMIS_CropMonitor_202004.pdf back to text
  3. Article citing U.S. National Academies Report. https://www.nytimes.com/2020/04/08/health/coronavirus-summer-weather.html?action=click&module=Top%20Stories&pgtype=Homepageback to text
  4. https://www.investopedia.com/ask/answers/071615/what-profit-margin-usual-company-retail-sector.asp back to text
  5. https://www.ft.com/content/03e45e35-ab09-4892-899d-a86db08a935cback to text
  6. CSIS.  https://www.csis.org/analysis/trade-symptoms-pandemicback to text
  7. Reuters, April 3.  https://www.reuters.com/article/health-coronavirus-malaysia-palmoil/malaysia-palm-growers-warn-of-bigger-labour-shortage-due-to-virus-curbs-idINKBN21L1D3back to text
  8. COVID-19: Potential impact on the world’s poorest people A WFP analysis of the economic and food security implications of the pandemic,  March 2020back to text
  9. https://www.linkedin.com/pulse/facilitating-trade-address-covid-19-crisis-aik-hoe-lim/?trackingId=5HgwLVaHQwSvws30N7bOaw%3D%3D back to text
  10. https://www.wto.org/english/news_e/news20_e/ddgaw_01apr20_e.htm. back to text
  11. Since the last updating of the Pharmaceutical Agreement was in 2011, its coverage can readily be expanded, as lists exist of more recent drugs in which there is substantial international trade.  back to text

Source: wto.org

 

216/ EASY STEPS TO GREENER COMMUNICATIONS THANKS TO ISO STANDARD

9 April 2020

In the race to meet our global climate goals, organizations everywhere are increasingly expected to communicate their environmental policies and commitments as well as the implications of what they do. Reporting their actions effectively can be a powerful catalyst for change. The International Standard for environmental communication has just been updated to help.

From sharing ideas to restoring faith in your green commitments, clear and compelling communication about environmental issues and activities is essential to getting anything useful done. When handled well, organizations can foster trust, improve their reputation and raise awareness of important environmental challenges in a way that can lead to real and lasting change. What’s more, it helps when demonstrating compliance to national and international regulations and in environmental reporting.

ISO 14063Environmental management – Environmental communication – Guidelines and examples, gives guidance on the principles, strategies and activities related to environmental communication using internationally agreed best practices. It has just been updated to harmonize with other International Standards in the field, offering additional guidance and new features.

Dr John Shideler, Chair of the ISO committee of experts that developed the standard, said environmental communication is not just about sharing information. It should reflect an organization’s values and can have a powerful influence over how it is perceived and what gets done.

“There is an increasing need for organizations to be transparent about their environmental impact, demonstrate that they are committed to the cause and engage with their stakeholders about that,” he said.

“This standard provides a solid basis for developing environmental communications strategies and policies so that organizations can talk about their activities and facilitate dialogue in a clear and effective way.”

ISO 14063 was developed by technical committee ISO/TC 207, Environmental managementsubcommittee SC 4Environmental performance evaluation, the secretariat of which is held by ANSI, ISO’s member for the USA. It is available from your national ISO member or through the ISO Store.

Source: iso.org

 

217/ VASEP requests support for seafood exporters

09 April 2020 

The Việt Nam Association of Seafood Exporters and Producers (VASEP) on Tuesday asked the Ministry of Finance to offer support to its members amid the coronavirus outbreak.

In a document sent to the ministry, VASEP proposed extending payment time for taxes and land rental fees to help businesses, households and individuals operating in the industry which have been affected by the pandemic.

According to VASEP, Việt Nam’s seafood sector employs more than four million people in areas ranging from raising and exploiting to processing, preserving and exporting. COVID-19 has caused serious damage to the sector.

At the end of March, the country’s seafood exports had fallen by more than 14 per cent from the same period last year to US$549 million.

This is why VASEP has asked for the support, which would all include excluding interest on late payments. In addition, land rental fees should be reduced by 20 to 40 per cent while extending leases by at least six months to a year to help firms raise more capital to recover after the pandemic.

The association also asked for seafood producers and exporters to be allowed to defer value added tax payments in 2020.

Source: VNS

 

218/ 16,000 businesses still need Ministry of Finance rescue

09 April 2020

About 16,000 businesses are not included in the Ministry of Finance’s support package on tax and land rent.

Phạm Đình Thi, director of the Tax Policy Department under the Ministry of Finance, said about 98 per cent of businesses would benefit from the package with a total tax and land rent being extended to VNĐ180 trillion (US$7.66 million).

However, economic experts said that there were 2 per cent of 800,000 enterprises nationwide, equivalent to 16,000 enterprises, that had not been considered for tax extension support.

Notably, more than 1,000 businesses in the beverage sector have been affected by COVID-19. Most of the goods are not consumed.

More than 200,000 workers of the Việt Nam Beer Alcohol Beverage Association (VBA) have had their work interrupted.

Nguyễn Văn Việt, VBA chairman, said that not only workers but the State’s revenue was also affected by the impact of COVID-19.

Every year, this association contributed more than VNĐ60 trillion to the State budget.

Therefore, the chairman proposed the Government and the Ministry of Finance to consider and allow beverage industries to be subject to tax and land rent extension.

Associate Professor Doctor Nguyễn Thị Thùy Dương, lecturer at the National Economics University, said that in order to cover all businesses hit by COVID-19, the Ministry of Finance should stipulate businesses which were damaged by the pandemic would be supported from the package, and not distinguish specific industries.

The National Economics University recently had a report on the impact of the COVID-19 pandemic on the Vietnamese economy.

Results from the survey showed that to deal with difficulties caused by the pandemic, 65.5 per cent of businesses cut down their regular operating costs; 35.3 per cent of enterprises had to reduce labour; 34 per cent had to cut workers’ wages and 34.5 per cent of enterprises had to let workers leave without pay.

Nearly 45 per cent of businesses cut production and business scale; 34.7 per cent of businesses chose to suspend production and business activities to wait through difficult times and 15.1 per cent of enterprises will change their business and production form to suit the new context.

The report also showed that although the COVID-19 pandemic was unlikely to have an impact in the medium and long term, the economy would need at least one quarter to recover after the pandemic is under control.

Source: VNS

 

219/ ASEAN events and summits under Việt Nam’s chairmanship year might be conducted online: diplomat

10 April 2020

Deputy Foreign Minister Nguyễn Quốc Dũng said there is a possibility ASEAN events and highly anticipated summits could be held online, due to the COVID-19 pandemic.

With Việt Nam in the role of ASEAN chairman in 2020, Dũng told a press briefing in Hà Nội on Thursday they are not ruling out the possibility of hosting events in a teleconference format.

He also informed the press of the postponement of the 36th ASEAN Summit and ASEAN-New Zealand Leaders’ Summit from April 8-9 to the end of June in the central city of Đà Nẵng.

The ASEAN Special Summit and the ASEAN+3 Special Summit on COVID-19 Response will be held online on April 14 with Prime Minister Nguyễn Xuân Phúc chairing over the events as ASEAN Chair 2020, the diplomat announced.

Việt Nam, as ASEAN 2020 Chair, has been proactively promoting joint efforts of the 10-member group in the fight against COVID-19 with the spirit of being “cohesive and responsive”, Dũng said.

Deputy Foreign Minister Dũng said after consulting ASEAN leaders, Prime Minister Phúc issued the ASEAN Chairman’s Statement on February 14, affirming the bloc’s strong determination and political commitment to control and prevent the pandemic.

The ASEAN Coordinating Council, composed of ASEAN Foreign Ministers, held two sessions on March 20 and April 9 under the chair of Việt Nam’s Deputy Prime Minister and Foreign Minister Phạm Bình Minh to discuss measures for stronger collaboration within the bloc and its partners.

Emergency response mechanisms in ASEAN and its partners namely China, Japan and the Republic of Korea (ASEAN+3) have been launched right after the disease outbreak.

The ASEAN defence ministers, economic ministers, and ministers in charge of tourism have issued statements and agreed on measures to curb the spread of the novel coronavirus SARS-CoV-2.

As ASEAN 2020 Chair, Việt Nam pushed the establishment and organisation of the teleconference of the ASEAN Coordinating Council Working Group on Public Health Emergencies on March 31 to take steps to implement intra-bloc coordination against COVID-19 in the future.

Specific recommendations included containing the spread of the pandemic; supporting affected people in ASEAN countries, including those living, working and studying in each other’s member states and in the third countries; and mitigating the disease’s impact on socio-economic development.

The ASEAN countries also pledged to strengthen solidarity and mutual assistance, share efforts, and enhance resilience to cope with the pandemic.

At the meeting of the ASEAN Coordinating Council, ministers agreed to hold the ASEAN Special Summit and the ASEAN+3 Special Summit on COVID-19 Response online on April 14. The events will be presided over by Prime Minister Nguyễn Xuân Phúc, who is Chair of ASEAN and Chair of ASEAN+3.

The countries’ leaders are expected to adopt a joint statement of ASEAN Special Summit and another of the ASEAN+3 Special Summit on COVID-19 Response reaffirming their strong commitment and determination in preventing and eliminating the risks of the pandemic that threaten people’s lives and socio-economic stabilisation of the member states.

In response to reporters’ queries about evaluating the cooperation of the US and China with ASEAN in the COVID-19 fight, Deputy Foreign Minister Dũng, who is head of the ASEAN Senior Officials’ Meeting (SOM) Việt Nam, said Việt Nam supports the two powers in promoting their role in the world, adding that the country has also cooperated with the two countries since the beginning of the outbreak.

Within the framework of ASEAN, China was the first country, then the US and the European Union (EU), to have first meetings with the bloc in this joint effort. This is the hope and endeavour of the ASEAN countries to strengthen partnerships with these countries.

“We have received very strong commitments from China and the US in supporting and uniting with ASEAN in fighting the pandemic,” he said.

Founded in 1967, the Association of Southeast Asian Nations (ASEAN) groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Việt Nam.

The pandemic has spread to all ASEAN member countries with a total of more than 14,000 infection cases, including 493 deaths.

Source: VNS

 

220/ Ministry urges VCCI to speed up registration of REX Code to facilitate exports

10 April 2020 

The Ministry of Industry and Trade has urged the Việt Nam Chamber of Commerce and Industry to speed up the registration of REX codes for producers to facilitate exports to the European Union (EU).

REX, or registered exporter system, is a system of certification of origin of goods based on self-certification.

The VCCI is in charge of receiving exporters’ application for registration of REX Code and carrying out the registration.

According to the ministry, the process of registering the codes has been slow.

The ministry cited figures on the EU’s REX Authorization system that the VCCI had registered a REX Code for 429 producers or just 10.7 per cent of the total 4,000 exporters who were applying for C/O form A.

Some enterprises said they had sent documents to the VCCI for certification for a REX Code but had not received a response from the VCCI, according to the ministry.

The ministry asked the VCCI to speed up the registration of REX Codes for firms to facilitate exports to the EU, Norway and Switzerland, together with providing instructions for firms on how to complete documents for registration.

The REX system means producers would not need to apply for C/O form in each time they export goods to the EU.

Instead, they could self-certify the origins of the goods for orders with a value of below 6,000 euros and for orders worth above 6,000 euros, they would need to register REX Code at the VCCI for self-certification of goods origin.

Source: VNS

 

221/ CPTPP presents challenges and opportunities for local firms

13 April 2020

Over one year after coming into effect the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has posed both challenges and served to create a wealth of opportunities for domestic businesses, according to insiders.

The government’s official report submitted to the National Assembly for ratification of the CPTPP to assess the impact of the trade pact outlines that exports to CPTPP markets are expected to increase by 4.04% by 2035, representing an annual rise of approximately US$700 million.

Since coming into force, Vietnam has made good use of the trade deal with the country’s export turnover to six CPTPP members surging by 8.3% to US$34.4 billion.

Most notably, exports to new markets that Vietnam had previously never signed free trade agreements with such as Canada and Mexico have enjoyed significant rises of 28.2% and 26.8%, respectively.

Luong Hoang Thai, Director of Multilateral Trade Policy Department under the Ministry of Industry and Trade, said the robust export growth enjoyed last year could be partly attributed to the implementation of the CPTPP.

The apparel and textile industry can be regarded as the biggest beneficiary of the trade pact which has also yielded remarkable results since coming into force.

According to Phan Thi Thanh Xuan, vice chairwoman and general secretary of the Vietnam Leather and Footwear Association, local businesses have successfully taken full advantage of the CPTPP, with garment and textile exports to CPTPP members increasing by 11%.

In spite of some bottlenecks emerging due to the rule of origin, garment and textile enterprises have been able to sign lucrative orders with CPTPP signatories.

Despite achieving initial success, experts believe that the country has yet to take full advantage of the opportunities brought about by the CPTPP, noting that the agree would operate in the same manner as the proposed Trans-Pacific Partnership Agreement which involved the participation of the United States.

Nguyen Thi Thu Trang, Director of WTO Integration Center under the Vietnam Chamber of Commerce and Industry, said that the CPTPP has served to create pressure for institutional reforms domestically, particularly those related to issues such as the environment and labour

She underscored the importance of the CPTPP in accelerating an improvement of the local business climate, adding that relevant ministries and agencies should come together to effectively co-ordinate and promptly promulgate legal documents regarding the implementation the CPTPP.

Source: VOV

 

222/ EU finalizes procedures for EVFTA to become effective

13 April 2020

Minister of Industry and Trade Tran Tuan Anh and European Commissioner for Trade Phil Hogan compared notes on a range of issues regarding the European Union – Vietnam Free Trade Agreement (EVFTA) and bilateral cooperation and trade amid the COVID-19 pandemic during their recent phone talks.

Concerning the EVFTA, the EU official said the European Council on March 30 adopted the EVFTA while the EU officially completed its internal procedures for the trade pact to come into force.

The dossiers for the ratification of the trade deal have been submitted by the government to the state President to consider submitting it to the National Assembly for discussion and ratification right in its session slated for May. It is hoped that the EVFTA will officially enter into force in July, minister Tuan Anh said.

The Vietnamese government has drawn out a plan on the implementation of the deal. After the agreement is approved by the National Assembly, the draft plan will be revised

for the Prime Minister to officially sign it for circulation.

During the talks, both sides also discussed bilateral trade and cooperation within the framework of the World Trade Organisation (WTO).

They concurred to redouble efforts to enhance trade links in the context of the increasingly complicated developments of the epidemic

With regard to cooperation within the framework of the WTO, the two sides consented to step up closer coordination to give ideas on the reforms of the WTO, with a major focus on increasing mechanism efficiency regarding dispute settlement which is the centre of attention of all WTO members.

Source: VOV

 

223/ Ministry launches investigation into anti-dumping duties on polyester yarn

13 April 2020

The Ministry of Industry and Trade (MoIT) has launched an investigation that may result in anti-dumping duties on polyester filament yarn (PFY) originating from China, India, Indonesia and Malaysia.

The investigation was launched after a request from the domestic manufacturing industry.

The request, which was submitted on November 7 last year, said that PFY imports from the above-mentioned countries had surged, causing significant damage to the local PFY manufacturing industry.

Fabrics used in the apparel industry are mainly made up of three types of yarn including PFY yarn, polyester staple fibre (PSF) and natural fibre (mainly cotton). PFY accounts for around 30 per cent of total consumption. The designed capacity of PFY production factories in the country is estimated at 350,000 tonnes per year.

During the investigation, the ministry will assess the socio-economic impacts to ensure the legitimate rights and interests of importers, consumers and domestic PFY manufacturers.

The MoIT will send questionnaires to relevant parties for analysing the anti-dumping level and damages. Relevant parties can also exchange information with the ministry before the final decision is released.

Under the provisions of the Law on Foreign Trade Management, the ministry can apply provisional anti-dumping measures. In addition, anti-dumping duties may be imposed within 90 days prior to the imposition of provisional anti-dumping duties.

Source: VNS

 

224/ Regulation on coordination in settling international investment disputes issued

14 April 2020 

Prime Minister Nguyen Xuan Phuc has signed Decision No. 14/2020/QĐ-TTg promulgating the Regulation on coordination in the resolution of international investment disputes.

The regulation prescribes the principles, tasks, power and process of coordination among state agencies, organisations and individuals concerned in settling international investment disputes through international arbitration or at other tribunals outside Vietnam.

It does not apply to the settlement of investment complaints at arbitration centres, courts, agencies and organisations of Vietnam according to Vietnam’s law.

Regarding the principles of coordination, the leadership agency, the legal representative agency of the Government, and relevant agencies, organisations and individuals are responsible for promoting full, effective and timely coordination in handling international investment disputes pursuant to the provisions of the Regulation and the Vietnamese law to optimally protect the lawful rights and interests of the Government and state agencies of Vietnam.

The leadership agency, the legal representative agency of the Government, and relevant agencies, organisations and individuals are also obliged to keep State secrets and conceal the information and documents obtained during the process of dispute settlement, in accordance with the provisions in international arbitral proceedings and the provisions of Vietnam’s law.

The leadership agency, the legal representative of the Government, and relevant agencies, organisations and individuals must take responsibility before the law for the consequences incurred by their failure to coordinate in line with the aforementioned principles.

The Regulation specifies the contents of coordination, including the exchange of information and documents among relevant agencies in the process of settling foreign investors’ complaints, denunciations and problems in order to prevent international investment disputes.

In addition, the agencies concerned coordinate in the resolution of international investment disputes through appointing their competent persons to join the intersectoral working group on dispute settlement at the request of the leadership agency, as well as to participate in negotiating and mediating international investment disputes, designing and implementing the strategy and roadmap for dispute handling, and collecting and providing information, records, evidences and documents serving the settlement of international investment disputes.

These authorised individuals are also in charge of dealing with contents related to judgments and decisions by international arbitrators, and performing other affairs in the resolution of international investment disputes.

Source: NDO/VNA

 

225/ A SAFER APPROACH TO WATER RESCUE WITH NEW ISO GUIDELINES

14 April 2020

Prevention is better than cure, especially when it comes to accidents at sea. Having survival craft available is a given for any law-abiding seafaring vessel, as is having survival craft that are maintained, repaired and tested by competent personnel. A new series of ISO specifications has just been published to help such personnel meet new international and legal requirements regarding lifeboats and rescue boats.

One hopes never to have the use of a lifeboat or rescue boat, yet they need to be in tip-top shape should the day ever arise. Strict regulations by the International Maritime Organization (IMO) covering lifeboat and rescue boat maintenance have recently taken effect to ensure the personnel responsible for carrying out this task is fully competent to do so.

A new series of ISO publicly available specifications (PAS) has just been published to help those involved in the testing, repair, maintenance and overhaul of lifeboats and rescue boats to comply with the new rules.

ISO/PAS 23678Service personnel for the maintenance, thorough examination, operational testing, overhaul and repair of lifeboats (including free-fall lifeboats) and rescue boats (including fast rescue boats), launching appliances and release gear, contains detailed guidance on the requirements for certification that is mandatory under the IMO.

Robin Townsend, Chair of the ISO subcommittee that developed the four-part series, commented that ISO/PAS 23678 was developed with the input of the IMO and is recognized as supporting its requirements.

“The series provides a comprehensive basis for a robust and uniform international application of the IMO requirements,” he said. “More importantly, it will help to ensure the safety of those performing these activities, those on board the craft, as well as the lifeboats and rescue boats themselves.”

The four documents in the series cover requirements for training providers, initial training for service personnel, Level 1 technician training and Level 2 in-field competence.

The ISO/PAS 23678 series was developed by technical committee ISO/TC 8, Ships and marine technologysubcommittee SC 1Maritime safety, whose secretariat is held by ANSI, ISO’s member for the USA. It is available from your national ISO member or through the ISO Store.

Source: iso.org

 

226/ Fifty percent of enterprises will only survive for half a year, VCCI continues to petition the Government for support

15 April 2020

According to the Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), the Covid-19 epidemic is the main cause of the decline of enterprises.

According to a quick VCCI survey conducted in late March and early April, the impact of the pandemic on business and production activities of enterprises is very serious.

Specifically, 82%of businesses thought that revenue in 2020 would be reduced compared to 2019, of which 30% of businesses forecasted a decline of 30-50%, while 22%of businesses would decline by more than 50%.

According to VCCI’s survey, if the pandemic continues, nearly 30% of enterprises can operate for no more than three months, 50%of enterprises can only survive for half a year. The consequence of this trend will be that millions of workers are at risk of losing their jobs in the coming months.

Facing this situation, Dr. Vu Tien Loc, Chairman of VCCI, said that no one could predict when the disease would pass, but one thing is certain that the consequences and the impact of the disease on the economy will be lasting and it can’t be recovered when the epidemic ends Businesses still face many difficulties in the near future.

Therefore, VCCI continued to send documents to the Prime Minister to propose some solutions to support businesses.

Accordingly, VCCI expects that the epidemic is under relatively good control, except for a limited number of industries/sectors that need to temporarily close, encouraging and creating favorable conditions for production. Circulation of goods is carried out normally with conditions to fully comply with disease prevention measures so that enterprises can save themselves, maintain production and business, and ensure social security.

VCCI also proposed to extend the time to carry out administrative procedures related to business investment, especially to foreign investors because of the disease conditions that can’t enter Vietnam to complete the procedures in time according to regulatory requirements.

Regarding fiscal policy, VCCI proposed to immediately suspend the payment of VAT, corporate income tax, personal income tax of employees, social insurance, union fees for waiting specific policies because the implementation process is still delayed, enterprises may stop operating and go bankrupt before the mechanism and policy are applied.

Along with allowing the transfer of losses for the next five years, VCCI proposed to allow the deduction of losses of 2020 due to the impact of the Covid-19 epidemic to the profit year of 2019. This allows businesses to pay taxes within two years of 2019-2020 and help avoid bankruptcy for businesses that have profits in 2019 but lose a lot in 2020 due to the impact of the Covid-19 epidemic.

Regarding credit policy, businesses also propose a further reduction of 2-3% per year for new and existing loans (to about 4-5% per year for VND loans and 2-3% per year for USD loans) to different groups of customers affected by the disease.

Along with that, VCCI also proposed not to adjust the regional minimum wage for 2021; suspend employers and employees contributions to trade union fund, social insurance, health insurance, unemployment insurance in 2020.

Regarding the policy of supporting some areas seriously affected by the Covid-19 epidemic, VCCI proposed in the field of tourism, proposing to allow 50% of tourism deposits in 2020 to support production business or 50% reduction of travel deposit, immediate for 2020.

Regarding logistics, VCCI proposed to reduce seaport fees to 50% in 2020 and requested the Ministry of Transport to work with foreign shipping lines to request to reduce the excessive and unreasonable surcharges like nowadays. In the field of road transport, it is suggested to extend the toll collection time to reduce BOT costs.

Despite offering a series of recommendations, the Chairman of VCCI still said that businesses need to monitor the situationclosely, must save themselves, continue to promote initiatives and solutions to continue to survive and develop.

During the “post-Covid-19″ period, according to Mr. Vu Tien Loc, the economy will restructure and transform its business model so Vietnam will face unprecedented opportunities and challenges. Therefore, synchronous reform of institutions, infrastructure and humanresources will be a platform for businesses to grow.

Source: VCN

 

227/ Chair of fisheries subsidies talks seeks members’ views on next steps amid COVID-19 crisis

15 APRIL 2020

Ambassador Santiago Wills of Colombia, the Chair of the Negotiating Group on Rules which is responsible for the fisheries subsidies negotiations, will consult WTO members on 16-17 April on how best to continue work amid disruptions caused by the COVID-19 crisis. In a video message, the chair thanked members for having kept up the momentum so far and called on their continued support for the fish and the oceans.

With all WTO meetings having been suspended last month, members in the Negotiating Group on Rules will soon conclude a written exchange of views on the proposals of India and the Least-Developed Countries (LDC) Group, the chair said. He would like to hear members’ views on how to continue making progress in a transparent and inclusive manner, he said. Here is Ambassador Wills’ statement.

Based on the mandate fixed under the Ministerial Decision from the WTO’s 11th Ministerial Conference, and the UN Sustainable Development Goal Target 14.6, negotiators are expected to secure an agreement in 2020 on disciplines eliminating subsidies for illegal, unreported and unregulated fishing and prohibiting certain forms of fisheries subsidies that contribute to overcapacity and overfishing, with special and differential treatment for developing and least-developed countries.

Source: wto.org

 

228/ WTO members discuss use of virtual platforms during COVID-19 lockdown

17 APRIL 2020

At a virtual meeting of all WTO members on 17 April, over 50 delegation heads took the floor to exchange views on the use of online discussions and written procedures to continue WTO work and decision-making during the COVID-19 lockdown. Director-General Roberto Azevêdo also used the informal session to urge members to submit information about pandemic-related trade measures to the WTO Secretariat’s ongoing monitoring exercise.

In-person meetings at the WTO and other Geneva-based international organizations have been suspended since mid-March, in line with Swiss government recommendations to curb the spread of the virus. While different WTO bodies have continued with smaller-group conference calls and written exchanges since the lockdown started, this was the first virtual meeting of the entire membership.

In his remarks, the Director-General said the virtual meeting responded to the desire expressed by a large number of members to find ways forward on WTO work during the lockdown. He also noted that several delegations had underscored the challenges involved in maintaining proper consultations with officials and other stakeholders, both in capitals and in Geneva, during the pandemic. He therefore invited delegations to indicate whether they would be comfortable conducting informal meetings and information exchange through virtual platforms. He also asked if they would be open to formal decision-making through virtual meetings or written procedures until traditional in-person gatherings can resume.

“The idea for today is to give members a chance to provide their views on whether they feel this online format is viable for some types of work until we can resume normal meetings,” he said.

“We are facing the deepest recession of our lifetimes, so we cannot lose sight of the big picture. But today’s meeting is about smaller-scale practicalities — about how we can advance work in the weeks ahead,” DG Azevêdo added, noting that the United Nations General Assembly had agreed on a written process for adopting resolutions.

The Director-General briefly addressed the economic consequences of the pandemic, which include severe disruptions to global trade. He pointed to the recent forecast by WTO economists projecting that global merchandise trade would shrink sharply in 2020 and emphasized that maintaining open markets for trade would be critical, along with fiscal and monetary measures, in laying the groundwork for a strong recovery.

DG Azevêdo reported on his recent engagement with the G20 at the group’s emergency virtual meetings of leaders and trade ministers on the COVID-19 crisis. He also described the WTO’s outreach to other international organizations on keeping trade flows open, particularly for essentials such as medical products and food.

The virtual meeting had over 250 participants. A total of 54 delegations spoke. At the end of the meeting, the Director-General said he had heard overwhelming support for the use of virtual meetings for information exchange. As for deliberations on current negotiations and taking formal decisions remotely, members did not have a common view, so more consultation would be needed, possibly with a case-by-case approach for individual decisions. He urged the chairs of WTO bodies to consult with members on how to proceed with regular committee meetings.

The chair of the General Council, Ambassador David Walker (New Zealand), also addressed the meeting, reminding members that keeping trade open was in everyone’s interest, both to prevent supply shortages and to help crisis-stricken economies recover. “Attention now is rightly focussed on protecting people’s lives. Going forward our biggest challenge will be to ensure that trade is part of the solution for the recovery,” he said. “As WTO members it is important to give the signal that we are capable of working together to provide the kind of global answer which will be desperately needed as governments start planning for the aftermath of the crisis.​”

Source: wto.org

 

229/ Heads of WTO, WHO cite importance of open trade in ensuring flow of vital medical supplies

20 APRIL 2020

WTO Director-General Roberto Azevêdo and World Health Organization Director-General Tedros Adhanom Ghebreyesus issued a joint statement on 20 April underlining their support for efforts to ensure the normal cross-border flow of vital medical supplies and other goods and services. “Protecting lives is our top priority, and these efforts can be impeded by unnecessary disruptions to global trade and supply chains,” they declared. The joint statement is below.

Joint statement by WTO Director-General Roberto Azevêdo and WHO Director-General Tedros Adhanom Ghebreyesus

COVID-19 has rapidly progressed to become a global pandemic, causing unprecedented, far-reaching impact on the health, social and economic well-being of communities around the world. The World Health Organization (WHO) and World Trade Organization (WTO) are committed to responding effectively to the situation, working together with other international organizations and our respective memberships. Global, coordinated action is required to deal with the extraordinary challenges the pandemic poses to people’s health as well as their livelihoods.

Protecting lives is our top priority, and these efforts can be impeded by unnecessary disruptions to global trade and supply chains. Governments’ trade policy decisions significantly influence both getting medical equipment and supplies to where they are urgently needed and catalyzing the supply of critical inputs for the production of medicines and health technologies to fight the pandemic. Keeping trade in health technologies as open and predictable as possible is therefore of vital interest. This will help countries to respond to this crisis, to recover from it and to build the health systems that will foster greater resilience in the future.

WHO and WTO are working together to support efforts to ensure the normal cross-border flow of vital medical supplies and other goods and services, promoting them where possible, and to resolve unnecessary disruptions to global supply chains, in furtherance of the International Health Regulations (2005) and WTO rules.

The purpose of the International Health Regulations is to prevent, protect against, control and provide a public health response to the international spread of disease in ways that are commensurate with public health risks, with a view to minimizing interference with international traffic and trade. WTO rules provide governments with the flexibilities they may need to address essential medical supply shortages and/or public health challenges. But any measure taken to promote public health that restricts trade should be “targeted, proportionate, transparent and temporary”, consistent with recent calls from world leaders.  Governments need to avoid measures that can disrupt supply chains and negatively impact the poorest and most vulnerable, notably in developing and least developed countries that are typically reliant on imports of medicines and medical equipment.

We call on our Members to continue to share information about their measures with WHO and WTO, in line with the established transparency mechanisms, which are now especially valuable in supporting a coordinated response. To ensure that health technologies, including diagnostics, medicines, vaccines and other medical supplies vital to treating patients infected by COVID-19, reach those in need quickly, we emphasize the importance of streamlining conformity checks based on regulatory cooperation and international standards.

While we are heartened by the remarkable research efforts and the rapid mobilization of public and private resources to develop COVID-19 health technologies, we call upon governments to implement policy measures that can further facilitate their research and development, and to promote their rapid dissemination within countries and across borders so as to ensure equitable access to those technologies. Such initiatives include targeted investment, ensuring open access to clinical test results, the sharing of relevant intellectual property rights, increasing manufacturing capacity, open and transparent procurement regimes, the elimination of tariffs on relevant health technologies, and trade facilitation measures to reduce costs and delays.

Global action, solidarity and international cooperation are more necessary than ever to address this health situation.  WHO and the WTO are working together to play their part.​

Source: wto.org

 

230/ WTO launches call for candidates for 2021 Young Professionals Programme

20 APRIL 2020

The WTO has issued a call for candidates for the 2021 Young Professionals Programme (YPP). Candidates up to the age of 32, as of 1 January 2021, from eligible developing and least-developed countries are invited to submit their application by 29 May 2020. The selected candidates will work at the WTO Secretariat for one year, starting in January 2021.

Launched in 2016, the YPP has attracted over 40 young professionals from countries that are under-represented in the WTO Secretariat. The Programme demonstrates the WTO’s efforts to increase diversity and broaden the representation of its membership.

In 2020, the programme consists of 12 young professionals from the following countries: Albania, Bahrain, Cuba, Dominica, Fiji, Guyana, Israel, Lesotho, Mali, Mozambique, North Macedonia and Singapore. They were selected from more than 1,200 candidates from all over the world following a highly competitive selection process. More about these young professionals is available here.

Background

The YPP provides a unique opportunity for qualified young professionals to enhance their knowledge and skills on WTO and international trade issues. The selected young professionals are allocated to various divisions of the WTO Secretariat based on their qualifications and the needs of the division. The areas of work may include accessions, agriculture, dispute settlement, intellectual property rights, market access, media and external relations, WTO rules, trade and development, trade and environment, trade in services and investment, trade facilitation, trade policy analysis and trade-related technical assistance.

Applicants interested in the YPP programme will find further details on a dedicated information page. Candidates must be from developing and least-developed countries that are members of the WTO and under-represented in the WTO Secretariat. The online application form can be accessed on the WTO e-Recruitment website and should be completed no later than 29 May 2020

Source: wto.org

 

231/ WHEN THE STARS ALIGN

21 April 2020

ISO 22483 is the all-new standard that takes the guess work out of hotel booking.

They say that it’s better to travel than to arrive. And if you’ve ever finished a journey at a hotel that falls below your expectations, you may well agree. For every world traveller who’s ever found themselves wondering why the number of stars awarded to hotels can vary so much between countries, there’s a new International Standard.

ISO 22483Tourism and related services – Hotels – Service requirements, published this month, was developed by the group of experts in ISO’s technical committee on tourism and related services, ISO/TC 228.

Committee Chair Manuel Otero highlights the wide applicability of the standard:

“ISO 22483 provides a common and attainable reference for all hotels in terms of quality service provision and has been developed considering the different types of hotels in the world, existing categorization systems, business models, sizes and services offered, as well as the current demands of guests and global trends.”

The new ISO standard establishes quality requirements and recommendations for hotels regarding staff, service, events, entertainment activities, safety and security, maintenance, cleanliness, supply management and guest satisfaction.

ISO 22483 can be purchased from the ISO member in your country or through the ISO Store.

Source: iso.org

 

232/ DG Azevêdo welcomes G20 farm ministers’ commitment to safeguard global food security

21 APRIL 2020

At a virtual meeting of G20 agriculture ministers today (21 April), WTO Director-General Roberto Azevêdo urged them to “act collectively to ensure that our responses to the COVID-19 pandemic do not unintentionally create food shortages”. He welcomed the ministers’ joint declaration, in which they committed to “cooperating closely and taking concrete actions to safeguard global food security and nutrition”.

In his remarks to the meeting, the Director-General pointed out that deep shocks to supply and demand along with tightened border controls and travel restrictions have dealt a serious blow to international trade, not least the food and agriculture sector. Despite the currently abundant stocks of key staples, he warned that “we must avoid measures that could change the current outlook and lead to supply shortages in the future”.

He stressed the importance of ensuring that food continues to flow from countries with a food surplus to countries in deficit, underlining that “three billion people depend on international trade for their food security”.

DG Azevêdo said that G20 leaders and trade ministers have highlighted the importance of keeping international markets open for vital medical products and food and stressed that any COVID-related trade measures should be “targeted, proportionate, temporary, and transparent”. He referred to the WTO’s monitoring of such measures and urged G20 governments to “lead by example on transparency”.

The Director-General ended his remarks by calling for enhanced cooperation to ensure that “international markets continue to be seen as a reliable source of food supply”. “The COVID-19 health crisis is already a major economic and social crisis. Let’s not add a food security crisis.”

The G20 Extraordinary Virtual G20 Agriculture Ministers’ Meeting was organized by the Kingdom of Saudi Arabia, which currently holds the group’s rotating presidency.

Source: wto.org

 

233/ Egypt launches safeguard investigation on raw aluminium

22 APRIL 2020

On 22 April 2020, Egypt notified the WTO’s Committee on Safeguards that it initiated on 16 April 2020 a safeguard investigation on raw aluminium.

In the notification Egypt indicated, among other things, as follows:

“Interested parties must make themselves known to the investigating authority within a period of 30 days after the initiation of the investigation.

Any information which the interested parties may wish to submit in writing and any request for a hearing before the investigating authority that they may wish to put forward should be submitted within 30 days following the initiation of this investigation.

The address of the competent authority for correspondence is:

Ministry of Trade and Industry

Trade Remedies Sector

Mr. Ibrahim El Seginy

El Maleya Towers – Tower No. 6 – 9th floor

Extension of Ramses St. – Naser City – Cairo

Tel : (202) 23422479

Fax : (202) 23420784

E-mail: itpd@tas.gov.eg

Website: www.tas.gov.eg

Further information is available in G/SG/N/6/EGY/15.

What is a safeguard investigation?

A safeguard investigation seeks to determine whether increased imports of a product are causing, or is threatening to cause, serious injury to a domestic industry.

During a safeguard investigation, importers, exporters and other interested parties may present evidence and views and respond to the presentations of other parties.

A WTO member may take a safeguard action (i.e. restrict imports of a product temporarily) only if the increased imports of the product are found to be causing, or threatening to cause, serious injury.

Source: wto.org

 

234/ WTO report finds growing number of export restrictions in response to COVID-19 crisis

23 APRIL 2020

Eighty countries and customs territories so far have introduced export prohibitions or restrictions as a result of the COVID-19 pandemic according to a new report by the WTO Secretariat. The report, which is based on information from official sources and news outlets, draws attention to the current lack of transparency at the multilateral level and long-term risks that export restrictions pose to global supply chains and public welfare.

The new export prohibitions and restrictions mostly cover medical supplies such as face masks, pharmaceuticals, ventilators and other medical equipment, the report finds. Some of the measures have extended the controls to other products such as food and toilet paper.

However, only 13 WTO members (or 39 if EU member states are counted individually) have submitted information on these new measures in line with WTO rules for quantitative restrictions. Three of them have notified export restrictions on foodstuffs pursuant to the WTO Agriculture Agreement. The report notes the harms and delays that insufficient information inflicts on countries seeking to procure materials to fight against the COVID-19 pandemic and provides guidance on how WTO members can notify their measures. Only a handful of notifications were submitted in March 2020 and these have since increased in April.

While the report acknowledges exceptions in WTO rules for export prohibitions or restrictions, it also highlights costs that both importing and exporting economies will face in the long run, particularly in terms of lower supply and higher prices for much-needed products.

Key points

  • The COVID-19 pandemic presents the world with an unprecedented public health challenge. Measures to curb the spread of the disease have shut down large swathes of the world economy. Worldwide demand for medical products to fight the pandemic is unprecedented. All countries depend on international trade and global value chains to source these products. This is challenging in light of ongoing disruptions to international transport, particularly air cargo, which often goes together with passenger travel.
  • An additional complicating factor is the growing number of export prohibitions and restrictions, which some WTO members have introduced to mitigate critical shortages at the national level. Responding to COVID-19 urgently requires sharp increases in global production of essential medical supplies. Well-functioning value chains can help quickly ramp up production while containing cost increases. As new production becomes available, trade will be essential to move supplies from where they are abundant to where they are lacking, especially as the disease peaks at different times in different locations. However, a lack of international cooperation risks hampering the urgently required supply response.
  • The information available thus far suggests that 80 countries and separate customs territories have introduced export prohibitions or restrictions as a result of the COVID 19 pandemic, including 46 WTO members (72 if EU member states are counted individually) and eight non-WTO members. Most of these have been described as temporary measures. At least two members have already removed some of those restrictions.
  • The products covered by these new export prohibitions and restrictions vary considerably; most have focused on medical supplies (e.g. facemasks and shields), pharmaceuticals and medical equipment (e.g. ventilators), but others have extended the controls to additional products, such as foodstuffs and toilet paper.
  • While Article XI of the General Agreement on Tariffs and Trade (GATT) 1994 broadly prohibits export bans and restrictions, it allows members to apply them temporarily to prevent or relieve critical shortages of foodstuffs or other essential products. If members move to restrict exports of foodstuffs temporarily, the Agreement on Agriculture requires them to give due consideration to the food security needs of others. WTO rules also contain more general exceptions, which could be used to justify restrictions provided that they do not constitute a means of arbitrary or unjustifiable discrimination between countries, or a disguised restriction on international trade.
  • Export prohibitions and restrictions applied by large exporters may in the short run lower domestic prices for the goods in question and increase domestic availability. But the strategy is not costless: the measures reduce the world’s supply of the products concerned and importing countries without the capacity to manufacture these products suffer. And exporters also risk losing out in the long run. On the one hand, lower domestic prices will reduce the incentive to produce the good domestically, and the higher foreign price creates an incentive to smuggle it out of the country, both of which may reduce domestic availability of the product. On the other hand, restrictions initiated by one country may end-up triggering a domino effect. If trade does not provide secure, predictable access to essential goods, countries may feel they have to close themselves from imports and pursue domestic production instead, even at much higher prices. Such a scenario would likely result in lower supply and higher prices for much-needed merchandise. The long-term effects could be significant.
  • Transparency at the multilateral level is lacking. In principle, all these measures should be notified as soon as possible to the WTO pursuant to the 2012 “Decision on Notification Procedures for Quantitative Restrictions” (QR Decision), while those relating to foodstuffs should also be notified to the Committee on Agriculture. However, to date, 13 WTO members (39 if EU member states are counted individually) have notified the introduction of new measures under the QR Decision and three have notified export restrictions on foodstuffs pursuant to Article 12 of the Agreement on Agriculture.
  • Economic operators and members are having to cope with a high degree of uncertainty, as it remains unclear what measures have been adopted by which countries, and new measures are being introduced regularly. Insufficient information makes it hard for them to efficiently adjust their purchasing decisions and find new suppliers This could be particularly damaging for those seeking to procure materials needed for the fight against the COVID-19 pandemic.
  • The G20 Ministerial Statement of 30 March 2020 stressed that “emergency measures designed to tackle COVID-19, if deemed necessary, must be targeted, proportionate, transparent, and temporary, and that they do not create unnecessary barriers to trade or disruption to global supply chains, and are consistent with WTO rules.” More recently, the G20 Agriculture Ministers Statement of 21 April 2020 reaffirmed the “agreement not to impose export restrictions or extraordinary taxes on food and agricultural products purchased for non-commercial humanitarian purposes by the World Food Programme (WFP) and other humanitarian agencies”.
  • WTO Director-General Roberto Azevêdo has urged members to exercise maximal restraint in the use of export restrictions and other measures that could disrupt supply chains. He has also called on WTO members to improve transparency on any new trade-related measures introduced as a result of the COVID-19 pandemic.
  • Possible actions to improve transparency in this area include:
  • Ensuring that the new measures are adequately published at the national level and, when possible, making them available in the website(s) of the relevant national authorities.
  • Notifying as soon as possible any new export restriction to the WTO pursuant to the QR Decision; in case these restrictions affect foodstuffs, notifying them to the Committee on Agriculture as well.
  • Updating as necessary the information under the “transparency notification” of Article 1.4 of the Agreement on Trade Facilitation, including the relevant enquiry points.
  • Endeavouring to provide additional information to other members beyond that required by the notifications, whenever possible.

Source: wto.org

 

235/ IMF and WTO heads call for lifting trade restrictions on medical supplies and food

24 APRIL 2020

International Monetary Fund (IMF) Managing Director Kristalina Georgieva and WTO Director-General Roberto Azevêdo issued a joint call on 24 April for governments to refrain from imposing export and other trade restrictions on key medical supplies and food and to quickly lift those put in place since the start of the year.

In response to the COVID-19 pandemic, some governments have adopted measures to facilitate imports of medical products, such as cutting import duties, curbing customs-clearance processes, and streamlining licensing and approval requirements, the two agency heads noted.

Similar attention should be paid to facilitating exports of key items such as drugs, protective gear and ventilators, they added.

While global trade rules allow for temporary export restrictions to prevent or relieve critical shortages, “we urge governments to exercise caution when implementing such measures in the present circumstances”.

“What makes sense in an isolated emergency can be severely damaging in a global crisis,” they warned. “Such measures disrupt supply chains, depress production, and misdirect scarce, critical products and workers away from where they are most needed.”

“The result is to prolong and exacerbate the health and economic crisis — with the most serious effects likely on the poorer and more vulnerable countries.”

Ms Georgieva and DG Azevêdo also expressed concern with the decline in the supply of trade finance, which ensures that imports of food and essential medical equipment reach the economies where they are most needed. In addition, despite strong supply, export curbs on some food items are beginning to appear.

“The experience in the global financial crisis showed that food export restrictions multiply rapidly across countries and lead to ever greater uncertainties and price increases,” they noted.

The WTO and the Group of 20 offer two forums for global policy coordination on these important matters, the agency heads added.

The joint statement is below. It can be downloaded here.

WTO and IMF Joint Statement on Trade and the COVID-19 Response

As our members grapple with their response to the global health and economic crisis, we call for more attention to the role of open trade policies in defeating the virus, restoring jobs, and reinvigorating economic growth. In particular, we are concerned by supply disruptions from the growing use of export restrictions and other actions that limit trade of key medical supplies and food.

Trade has made cutting-edge medical products available throughout the world at competitive prices. Last year global imports of crucial goods needed in the fight against COVID-19, such as face masks and gloves, hand soap and sanitizer, protective gear, oxygen masks, ventilators, and pulse oximeters, totalled nearly $300 billion. Recognizing the importance of this trade, governments have taken dozens of measures to facilitate imports of COVID-related medical products — cutting import duties, curbing customs-clearance processes, and streamlining licensing and approval requirements.

We welcome these actions. Accelerating imports of critical medical supplies translates into saving lives and livelihoods. Similar attention should be paid to facilitating exports of key items like drugs, protective gear, and ventilators. Anticipating governments’ need to address domestic crises, World Trade Organization (WTO) rules allow for temporary export restrictions “applied to prevent or relieve critical shortages” in the exporting country. We urge governments to exercise caution when implementing such measures in the present circumstances.

This time is different

Taken collectively, export restrictions can be dangerously counterproductive. What makes sense in an isolated emergency can be severely damaging in a global crisis. Such measures disrupt supply chains, depress production, and misdirect scarce, critical products and workers away from where they are most needed. Other governments counter with their own restrictions. The result is to prolong and exacerbate the health and economic crisis — with the most serious effects likely on the poorer and more vulnerable countries.

To ramp up the production of medical supplies, it is essential to build on existing cross-border production and distribution networks.

Trade finance and food items

We are also concerned by the decline in the supply of trade finance. Adequate trade finance is important to ensure that imports of food and essential medical equipment reach the economies where they are most needed. Our institutions are tracking developments and engaging with key suppliers of trade finance.

In addition to restrictions on medical goods, curbs on some food items are starting to appear, despite strong supply. The experience in the global financial crisis showed that food export restrictions multiply rapidly across countries and lead to ever greater uncertainties and price increases. We are also concerned that if critical agricultural workers are not able to move to where the harvest is, crops could rot in the fields. Where new cropping seasons are starting, planting could be hampered, lowering both domestic and international supplies and increasing food insecurity. We urge governments to address these challenges in a safe and proportionate manner.

Cooperative effort needed

Amid the unfolding global financial crisis, global economic leaders in 2008 jointly committed to refrain for a year from new import, export, and investment restrictions. This pledge helped to avoid widespread trade restrictions that would have worsened the crisis and delayed recovery — just as trade restrictions deepened and prolonged the Great Depression of the 1930s.

A similarly bold step is needed today. We call on governments to refrain from imposing or intensifying export and other trade restrictions and to work to promptly remove those put in place since the start of the year. The WTO and the G20 offer two forums for global policy coordination on these important matters.

History has taught us that keeping markets open helps everyone — especially the world’s poorest people. Let’s act on the lessons we have learned.

Source: wto.org

 

236/ EIF sets up web page, hosts webinars to examine trade impacts of COVID-19 on LDCs

24 APRIL 2020

The Enhanced Integrated Framework (EIF) has set up a dedicated webpage and will be organizing webinars to examine the trade impacts of the COVID-19 pandemic on least developed countries (LDCs).

The dedicated web page within the EIF’s Trade for Development News will provide news and analysis so that this information can help keep LDC trade flowing even in a time of crisis. Regular news roundups offer the latest on how LDC countries are being affected, and what impacts are being felt.

Recently published articles have looked at issues such as soap tariffs, the commitments of international financial institutions and the trade situation in Africa.

Alongside this coverage, the EIF is launching a series of webinars with partner experts that looks into the various ways LDCs are being affected by the crisis.

The first, slated for 13 May 2020, will look at fragile and conflict-affected countries, their unique vulnerabilities to COVID-19, and what governments and global institutions can do to create more stability.

About the Enhanced Integrated Framework

The EIF is the only multilateral partnership dedicated exclusively to helping LDCs use trade as an engine for growth, sustainable development and poverty reduction. It is a unique global partnership between LDCs, donors and partner agencies, including the WTO, which work together to build trade capacity in LDCs.

Source: wto.org

 

237/ COVID-19: NATIONAL RESOURCES

25 April 2020

This page is dedicated to featuring national resources developed by ISO members to support the fight against COVID-19.

MEMBER RESOURCES

BSI, UNITED KINGDOM

Following the outbreak of Novel Coronavirus (COVID-19), BSI, as the UK’s National Standards Body has assessed how we can best support Government, UK businesses and ultimately the UK population. At this time, it is important that business and Government is equipped with expert, consensus base best practice information to help them navigate the current and rapidly developing situation.
After careful consideration of their portfolio, BSI selected the most relevant standards to meet the immediate challenges faced by Government and UK business, and will be opening access to these standards during this time of emergency. As a result, a number of standards have been made accessible to help support manufactures produce medical equipment in short supply and to help UK organizations navigate the current period of instability.

IPQ, PORTUGAL

IPQ has created several informative documents (available on its website), and has collaborated with the national health entities to create a micro-site listing all regulations and standards that must be followed in the manufacture and distribution of Medical Devices and Personal Protective Equipment (PPE).
IPQ has edited and published the Portuguese versions of EN 14638 and EN 13795-1, Standards of utmost importance for the current situation.
In addition, IPQ has created a specific area on its website where, besides information targeted to the national manufacturers, it provides free access to relevant NP, EN and ISO Standards.

ICONTEC, COLOMBIA

In order to help people, governments and enterprises overcome this challenging period, ICONTEC is providing free access to more than 80 standards related to medical equipment, biosafety, business continuity, personal protective equipment and disinfection protocols and test methods. Visit https://www.icontec.org/nuestro-proposito-es-dejar-una-huella-de-confianza-en-cada-una-de-nuestras-acciones-2/ for more information.

UNE, SPAIN

The Spanish Association for Standardization, UNE, has published Specification 0065, which establishes requirements for the materials used for the design, manufacture, marking and use of protective masks for adults. This document will facilitate the manufacture of reusable masks for protection against the COVID-19 pandemic. UNE makes this document available free of charge.

SSC, SINGAPORE

To support businesses during this challenging period, the Singapore Standards Council (SSC), Enterprise Singapore, is providing free viewing access to some 40 ISO, IEC and national standards. These standards aim to help companies develop business continuity management systems, facilitate production of key medical equipment, promote hygiene in public places and support delivery of products (including medicine).
Visit www.enterprisesg.gov.sg/standards-covid19 for more information.

GOST R, RUSSIAN FEDERATION

Russian manufacturers, state and local authorities, as well as other interested parties, can access a range of current national, interstate and international standards for medical devices and personal protective equipment. The documents will be provided in electronic format, protected from modification, replication and without the right to further commercial distribution.
Visit STANDARTINFORM’s web site for more information.

SAC, CHINA

SAC has created a web page where stakeholders can get access to the standards information about epidemic prevention, including the Chinese national standards list of epidemic prevention products, comparison information of Chinese and foreign standards related to epidemic prevention, list of Chinese national standards in English version related to epidemic prevention, and so on. Visit www.sac.gov.cn/sacen/FAC for more information.

SCC, CANADA

Many Standards Development Organizations are providing access to essential standards to assist companies and manufacturers as they switch production lines or develop new products to respond to the global demand for medical equipment and to deal with the pressures of business continuity and crisis management related to the COVID-19 pandemic. SCC has compiled this information as a reference guide for government and industry.

UNI, ITALY

On 18 March 2020 UNI made 14 standards about protective and medical products freely available from his website (later updated with some more documents according to CEN and ISO inputs). The decision was taken to help Regione Lombardia and other local government in the most affected Bergamo area to improve their procurement calls, and to help industries (basically textile and garments) to change their production lines to manufacture face masks intended to limit the transmission of infective agents.

ABNT, BRAZIL

The Brazilian Association of Technical Standards (ABNT), has made available, free of charge to society, the technical standards related to the manufacture, import and acquisition of medical devices identified as priorities for use in health services, as well as the standards for pulmonary ventilators and some other products.
In total, 32 free technical standards can be viewed in full directly from the ABNT Virtual Store, at ABNTCatálogo.

NBN, BELGIUM

NBN has created a web page where Belgian stakeholders can request access to a collection of standards for face masks and personal protective equipment. Via our myNBN platform, organisations can quickly get access to this collection of important standards.
Visit www.nbn.be/nl/nieuwsberichten/gratis-normen-voor-mondmaskers to request your access.

AFNOR, FRANCE

AFNOR has taken the initiative of drawing on the collective wisdom of leading experts to produce a reference document proposing the requirements that should be satisfied when making new protective masks. Version 1.0 of the document, entitled AFNOR Spec – Barrier masks, can be downloaded free of charge

Source: iso.org

 

238/ STRENGTHENING COMMUNITIES AT CHALLENGING TIMES

25 April 2020

We are all feeling the impact of Covid-19, but some people are at greater risk than others. How can communities identify those who are vulnerable and ensure they get the help they need? Structured guidance on how to do that can provide a lifeline to communities already stretched to their limits.

Few of us were prepared for the current pandemic, but it’s clear that some are more vulnerable than others, whether it be due to their current state of physical or mental health or their social situation. As with any kind of crisis, exactly who is most vulnerable depends on what the crisis entails, but what is certain is that those people need specific kinds of assistance.

Internationally agreed guidance for any organization charged with assisting the more vulnerable members of our community, including governments, associations, emergency services and community groups, can help put in place strategies at a much faster rate, ensuring no one is left behind.

Standards such as ISO 22395Security and resilience – Community resilience – Guidelines for supporting vulnerable persons in an emergency, are useful as they assist relevant organizations, such as local governments or community groups, in doing just that.

Identifying who is vulnerable and most at risk is the first big challenge, from which suitable strategies can be developed to establish what these people need and prepare them to actually be helped – and help themselves. This could include the types of information they require to reduce their levels of anxiety and be more receptive to the help on offer.

What’s more, effectively assisting vulnerable people is not about giving handouts. The most important thing is being able to see what capacities they currently have and how they can help themselves – not an easy task, but essential when resources are stretched.

Times like these also call for greater mobilization of volunteers, yet organizing people who have the will, but not necessarily the skills or experience to help, is a challenge in itself. Community resilience is essential in this regard because the potential difference that volunteers can make is enormous. The variety of skills on offer, as well as local knowledge and contacts, is vital when all hands are needed on deck.

Guidance contained in ISO 22319Security and resilience – Community resilience – Guidelines for planning the involvement of spontaneous volunteers, can aid those organizations involved in coordinating help to manage the process of mobilizing volunteers and integrating them effectively into response activities.

Togetherness is the key to survival in times of crisis and reinforcing the resilience of communities through well-thought-out plans and checklists can make the difference.

Source: iso.org

 

239/ NEW ISO STANDARD ROLLS OUT PRACTICAL TIPS FOR EMPLOYEE ENGAGEMENT

27 April 2020

Looking for the latest on employee engagement practices? Look no further. The arrival of ISO 10018 promises to shake up the marketplace – even for the most innovative of organizations. Learn ways to engage people in your quality management system and enhance their involvement and competence within it.

People engagement is the emotional commitment that people have to the organization and its goals. This commitment means engaged people actually care about their work and their organization. They don’t work for just a pay cheque, or just for the next promotion, but invest their energies towards the organization’s goals. This is where ISO 10018 can make a difference.

ISO 10018:2020Quality management – Guidance for people engagement, recognizes that it can be difficult encouraging staff to take up quality management systems and understand how they are relevant to their daily work. By focusing on better integration of engagement strategies, the standard provides a framework to enhance people’s involvement and competence within an organization, helping them to feel a valued part of it.

The new standard complements ISO 10015:2019Quality management – Guidelines for competence management and people development, explains John J. Guzik, Convenor of the joint working group for guidance on people involvement and engagement (ISO/TC 176/SC 3/JWG 21). Both International Standards present practical steps for managers and leaders to follow, adopt and measure.

Staff competence and development should be a collective aspect of the organization and not just for specific individuals, Guzik points out. People need to see the connection between their current work and how further training can provide more opportunities within the organization. “If they see that their organization is investing in their skills through training and other career tracks, they will feel engaged.”

So what organizations can benefit? ISO 10018 is applicable to any organization, regardless of its size, type or activity. Aimed at bringing quality management principles down to staff level, the standard is designed to be regularly referred to and not simply handed to employees in binders and then left to gather dust on the shelf.

ISO 10018:2020 was developed by technical committee ISO/TC 176, Quality management and quality assurancesubcommittee SC 3Supporting technologies, the secretariat of which is held by NEN, ISO’s member for the Netherlands.

Source: iso.org

 

240/ Website promoting relic sites comes online

28 April 2020

The “Digital data bank on relics and relics conservation” at http://ditich.vn/FrontEnd provides scientific papers and research studies on thousands of relic sites nationwide as well as information on restoration projects.

Using digital technology, it is expected to further promote the land and people of Vietnam and create added value in preserving and sustainably using the country’s heritage.

Vietnam welcomed a record 18 million international tourists last year, according to the General Statistics Office.

The figure was up 16.2 percent year-on-year, with tourists from Asia making up 79.9 percent of the total, up 19.1 percent, while those from Europe were up 6.4 percent, America 7.7 percent, and Africa 12.2 percent.

The Vietnam National Administration of Tourism (VNAT) said the country also catered to 85 million local holidaymakers during the year, an increase of more than 6 percent.

Vietnam was honoured with a host of prestigious global prizes last year, winning at the World Golf Awards, the World Travel Awards, and Asia’s Best Destination.

Source: VNA