Trade Policy Advice

1. Background
2. Development objectives
3. Approach
4. Expected outputs
5. Comparative advantages

 

1. Background

In line with its purpose of helping low-income countries to integrate into the world economy in a way that supports their development efforts, the Centre’s trade policy advice aims at enhancing and improving effective participation in the multilateral trading system and/or facilitating accession to the WTO.

The Centre offers trade policy advice to two sets of developing/transition countries: those who have already acceded, but are not yet in a position to fully participate in and take advantage from the WTO and those who are in the process of acceding to the WTO.

Currently, some thirty countries are involved in WTO accession procedures. Applicants include countries, such as Russia, Ukraine and Algeria, several former USSR Republics, other transition economies, as well as a number of developing countries and LDCs. So far, the Centre has been working in the following acceding countries: Cambodia, Laos, Lebanon, Macedonia, Serbia and Montenegro and Vietnam. Some preparatory work has also been supported in Iran (whose accession remains blocked). The work undertaken in these countries includes different kinds of support, ranging from strategic policy advice for high-level decision-makers to enhancing WTO awareness within the private sector and its participation in a transparent trade policy dialogue with the Government.

There are many more countries that have acceded but are still struggling to implement their WTO obligations or to find ways to participate effectively in multilateral trade negotiations. For example, several African countries and LDCs’ political agenda is determined by more immediate and urgent development priorities; these countries do not have the required capacities, nor are they in a position, to determine and voice their trade and development interests in the framework of the WTO.

One example of the Centre’s work with such WTO members is the project that led to the elaboration of a West and Central African cotton submission, which was transmitted in April 2003 by the four LDCs (Benin, Burkina Faso, Mali and Chad) to the WTO agricultural negotiations committee. Support to defend the negotiation proposals made in the submission is ongoing.

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2. Development objectives

The Centre focuses on three critical elements of successful trade policy-making:

 supporting the Government’s role,
 building institutional capacity and
 involving private sector stakeholders.

In trade policy advice, a broad range of domestic policy issues, going way beyond pure trade issues, need to be addressed. The Centre’s advice aims at reaching a set of interrelated sub-goals, such as:

 Strengthening the understanding of linkages between trade and development, of the functioning of the world trading system, of national, regional and global trade policy issues;

 Facilitating the articulation of a coherent trade development strategy, i.e. supporting the identification of a country’s trade interests and sustaining the development of skills required for active participation in regional or multilateral trade negotiations;

 Discussing economic policy adjustments and reforms required in order to ensure coherence between domestic economic legislation/regulations and international rules/disciplines;

 Encouraging interactivity - through consultative mechanisms and local networks for trade information - amongst stakeholders in trade policy, i.e. Government, private sector, workers and consumers;

 Fostering the development and efficient use of institutional structures and expertise for trade policy analysis and formulation (national think tanks, academia, research networks, and so on).

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3. Approach

The Centre’s team delivers its trade policy advice at the highest level possible (Ministers in charge of external economic relations, CEOs of private sector companies). It works on the basis of regular missions, permanent exchanges of information and frequent contact. The policy advice offered evolves in the form of a continuing dialogue with the partner(s). Trade policy advice projects can be extended, so as to include specific technical assistance components - research, legal expertise, training, production of learning material, and so forth - for which outside experts are identified and contracted by the Centre. Whenever a technical mandate is given to outside experts, the Centre keeps the overall management and monitoring responsibility over the entire programme of trade policy related technical assistance.

The Centre emphasises the need for close relationships with its partners and for customised services that take into consideration varied and evolving country priorities, as well as different cultural sensitivities and perceptions. The Centre sets world trade in the broader perspective of sustainable development and roots its services on a comprehensive and inclusive approach. The whole spectrum of trade policy stakeholders - trade-relevant government ministries, the business sector, trade promotion and regulatory bodies, academia, research networks and think tanks, consumer and other civil society organisations - are taken into account in the countries’ efforts towards elaborating and/or strengthening a national trade development strategy.

The Centre devotes considerable time to preparing, sustaining and updating its trade policy advice services: it keeps abreast of trade policy developments, WTO negotiations and country-specific information, it networks with partner institutions and experts, and it maintains a grid relating to expertise on specific themes and technical issues. The delivery of policy advice partly depends on political factors, which are not under the Centre’s control. In order to be in a position to respond to emerging political opportunities, the Centre maintains a permanent intervention capacity, based on the maintenance of information and contact networks.

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4. Expected outputs

Trade policy related assistance aims at building and/or strengthening national or regional capacities and institutions:

 to identify and analyse trade positions and interests, as well as the potential for trade development

 to identify and analyse trade issues at the regional and international levels

 to define and formulate a coherent national trade policy as part of a broader development strategy

 to balance competing development priorities and to defend legitimate trade priority issues

 to understand the rights and obligations contained in the WTO Agreements and to use the existing flexibilities, in order to support sustainable development

 to adapt domestic legislation and regulations according to a country’s development interests and in conformity with the obligations contained in external – bilateral, regional and international - trade agreements

 to design and implement domestic reforms required for WTO accession (for example: introduction of fiscal adjustments, customs modernisation, incentive policies for a competitive business environment, public sector reforms, social reforms and so on)

 to defend rights and obligations in regional and international trade agreements, in order to use multilateral mechanisms to protect rights

 to effectively participate in ongoing and future regional and multilateral trade negotiating rounds

 to cooperate and coordinate with Ministries and other national institutions dealing with trade related subjects or issues

 to collect and disseminate to national stakeholders (corporate sector and consumer organisations) information on trade policy as well as on regional and international trade agreements, e.g. through the establishment of appropriate institutions such as special “enquiry points”

 to establish national consultative mechanisms and to build the Government’s network capabilities with the private sector as well as with labour and consumer organisations

 to tap resources from internal and external academia and research networks

 to coordinate external trade-related assistance received from different funding sources and implementing agencies

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5. Comparative advantages

IDEAS Centre’s trade policy advice services build upon experiences accumulated since 1995 by Mr. Arthur Dunkel, former GATT Director-General and director of Stimena, a Swiss trade initiative for the Middle East and North Africa. Since September 2002, Mr. Nicolas Imboden, a former trade negotiator and development Ambassador within the Swiss Ministry of Economy, joined Arthur Dunkel in establishing IDEAS Centre, a non-profit association, specialised in trade policy and related cooperation projects in developing and transition countries. The combined policy know-how and international experiences of IDEAS Centre’s staff members constitute strong assets supporting high-level advisory services to Governments, policy-makers and private sector representatives. The Centre’s team members have complementary knowledge and skills that allow a comprehensive and integrated approach towards sound trade and economic governance. The Centre’s small size allows it to pursue demand-driven and flexible approaches, while its outside network linkages permit it to tackle the best available expertise.

Key words of IDEAS Centre’s mission statement are: relevance, innovation, flexibility and high service quality.

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For more information, please contact:

IDEAS Centre
Rue de l’Arquebuse 10
CH - 1204 Geneva, SWITZERLAND
Tel. +41-22-807 17 40
Fax +41-22-807 17 41
Email: info@ideascentre.ch