Bali Package

The Bali Package is a trade agreement resulting from the Ninth Ministerial Conference of the World Trade Organization in Bali, Indonesia on 3–7 December 2013. It is aimed at lowering global trade barriers and is the first agreement reached through the WTO that is approved by all its members.^[1][2] The package forms part of the Doha Development Round, which started in 2001.^[3]

Provisions

The accord includes provisions for lowering import tariffs and agricultural subsidies, with the intention of making it easier for developing countries to trade with the developed world in global markets. Developed countries would abolish hard import quotas on agricultural products from the developing world and instead would only be allowed to charge tariffs on amount of agricultural imports exceeding specific limits. Another important target is reforming customs bureaucracies and formalities to facilitate trade.^[4]

The Bali Package consists of ten separate decisions by the Ministerial Conference, covering four areas as follow.^[3][5]

Trade facilitation

• Agreement on Trade Facilitation – reaffirms that the non-discrimination principle of Article V of GATT 1994 remains valid.^[5] Agreement will reduce red-tape and streamline customs.^[6] It will be legally binding, require some expense and a certain level of technology. LDCs will be supported in building capacities to implement the changes. ^[7] Some critics worry governments may have to prioritize funds for trade facilitation over other important areas, such as public health or education.^[8]

Agriculture

Covers food security in developing countries.

• General Services
• Public Stockholding for Food Security Purposes
• Understanding on Tariff Rate Quota Administration Provisions of Agricultural Products, as Defined in Article 2 of the Agreement on Agriculture
• Export Competition

Cotton

• Subsidies for trading cotton was implemented by the WTO

Development and LDC issues

Covers measures for Least developed countries (LDCs) and developing countries, including preferential treatment and market access.

• Preferential Rules of Origin for Least-Developed Countries - simplified rules for identifying origin and qualifying for preferential treatment with importing countries.^[6]
• Operationalization of the Waiver Concerning Preferential Treatment to Services and Service Suppliers of Least-Developed Countries - allows preferential treatment to be given to LDCs for 15 years from date of agreement adoption.^[9][7]
• Duty-Free and Quota-Free (DFQF) Market Access for Least-Developed Countries
• Monitoring Mechanism on Special and Differential Treatment - consisting of meetings and other methods for monitoring special treatment given to developing countries.^[6]

Negotiations

Before the agreement, the negotiations repeatedly came close to collapsing. India's demand that it should be allowed to extend its domestic agricultural subsidies indefinitely was met by opposition from the U.S., while Cuba, Bolivia, Nicaragua, and Venezuela objected to the removal of a text relating to the U.S. embargo against Cuba.^[10][11] Eventually, India and the U.S. reached a compromise where a permanent solution to the Indian subsidies will be decided in separate future negotiations within four years, while Cuba reached a compromise that saw it refrain from vetoing the agreement.^[12][13] The U.S. and India came to a permanent agreement regarding India's food subsidies in November 2014.^[14]

The negotiations were originally scheduled for 3–6 December 2013.^[15] However, they had to extend until 7 December for an agreement to be reached.

This was the first global agreement by the WTO. Director-General Roberto Azevêdo said: "For the first time in our history, the WTO has truly delivered. We're back in business … Bali is just the beginning." He also expressed fears of bilateral agreements if the WTO talks failed. The Trade Minister of the host country, Indonesia, Gita Wirjawan, said the agreement was "historic". The United States Chamber of Commerce issued a statement that read: "With this landmark accord on trade facilitation and other issues, the WTO has re-established its credibility as an indispensable forum for trade negotiations."^[11]

Financial estimates

The Peterson Institute for International Economics estimate that if the customs measures of the agreement are properly implemented, they could create US$1 trillion worth of global economic activity, add 21 million new jobs and lower the cost of doing international trade by 10–15 percent.^[11][2][16]

See also

• Trans-Pacific Partnership
• Food security

References

External links

• Bali Ministerial Conference on WTO.org
• Draft text of the declaration
• Agritrade. ACP aspirations and expectations and the outcome of the Ninth WTO Bali Ministerial Conference.