51602 Trade & Development Quarterly 19th edition, July 2009 Highlights of the Quarter Toolkits Protectionist measures on the rise ­ The latest quarterly WTO monitoring shows that protectionist Global Trade Alert (GTA) ­ a web-based tool that draws measures are still being pursued and many are taking the upon expertise from independent research institutes form of measures permitted by the WTO. The use of around the world, and provides real-time information on safeguard investigations is on the rise; investigations have government measures taken during the current global been mainly initiated by developing countries, with India economic downturn that are likely to affect trade. This accounting for half of new investigations. Use of WTO- database could be of significant help to people engaged in consistent safeguard instruments (SG) is a preferred dialogues with governments on subjects ranging from policy measure to adopt in times of crisis because (i) the trade, business climate, to regulatory reform. WTO rules require SG protection be applied on a (More information at www.globaltradealert.org) nondiscriminatory (MFN) basis; (ii) SG have a built-in time process for scaling back and ultimately eliminating the UPCOMING! Trade and Transport Facilitation Audit protection over time; and (iii) SG involve an economy-wide Toolkit (TTFA), September 2009 ­ TTFA 2009 updates assessment of the pro's and con's of temporary assistance the original edition of the TTFA 2001. It aims to develop a for a domestic import-competing industry. More comprehensive diagnosis of operational and procedural countries--developed and developing--have adopted constraints to external trade and the transportation trade liberalizing or export promoting measures. Mexico services that support it. The revised edition will also factor introduced simplification of trade procedures in the experience of implementing actual audits using the (complementing its tariff reductions earlier in the year); original edition. Australia is reducing its applied tariffs on textiles, clothing and footwear; Ecuador eliminated tariffs on hybrid cars. Forthcoming Learning Events Trade continues to decline but appears to be For World Bank Staff and External Participants bottoming out. - The World Bank projects the global Trade Policy for Development Executive, September 28 ­ trade of goods and services to decline by about 10 percent October 9, Washington DC in 2009, and grow by 3.8 percent in 2010 and 6.9 percent (Details available at http://go.worldbank.org/LQ55DTOUC0 for in 2011, versus an average growth rate of 6.9 percent over World Bank staff or www.worldbank.org/wbi/trade for external the past 15 years. Developing countries and countries in participants) Asia in particular are projected to drive the rebound. China's trade is picking up and benefiting other developing Publications countries, and China may become the largest exporter in the world when the world economy recovers. African The fateful allure of protectionism: countries exports have recently benefited from an increase Taking stock for the G8 edited by Simon in commodity prices. World Bank research indicates that Evenett, Bernard Hoekman, and Olivier trade is especially responsive to income during a Cattaneo ­ the e-book summarizes the recession, but tends to rebound sharply when growth picks views of leading researchers and trade up. The elasticity of global trade volumes to real world policy practitioners who met at a CEPR- GDP has increased gradually from around 2 in the 1960s World Bank conference to assess the to above 3 in 2008, mainly as a consequence of cross-border impact of policy responses production-sharing networks and lean retailing. This leads to the crisis. (Free download at to a faster drop in trade when output declines, but will also http://www.voxeu.org/index.php?q=node/3728) lead to a faster trade recovery as the recession ends. Historically, output declines resulting from a financial crisis last 2 years as compared with about 4 years for Unlocking global opportunities: the employment. aid for trade program of the World Washington Office 1818 H Street NW Bank Group by the International Trade Washington DC WTO 2nd Global Review of Aid for Trade, July 6-9 Department (PREM) ­ the report 20433 USA Geneva ­ this 2nd Global Review aimed to evaluate provides a full and updated picture of the tradenews@worldbank.org progress made since the First Review held in November Bank's multifaceted aid for trade 2007 and to scrutinize how Aid for Trade is being program in the larger context of the operationalized on the ground, and complemented prior Bank's trade agenda to help developing Geneva Office regional workshops that aimed to disseminate good countries, particularly at the time of the 3 chemin Louis-Dunant practices among Members (More information on the WTO financial crisis and global slowdown. Post Office Box 66 website). The World Bank Group (WBG) disseminated a (More information at: 1211 Geneva 20 http://go.worldbank.org/CJVEJIR2J0) booklet on WBG efforts in support of the Aid for Trade and Switzerland President Robert Zoellick gave a speech on global prospects, the risk of rising protectionism, the importance to conclude a Doha deal and the WBG's commitment to increased Aid for Trade. (More information under the Publications section and on the World Bank trade website: www.worldbank.org/trade) FROM THE POVERTY REDUCTION AND ECONOMIC MANAGEMENT NETWORK (PREM), INTERNATIONAL TRADE DEPARTMENT | The World Economic Forum Global Enabling Trade Report 2009 features a chapter by World Bank staff on Implementing Trade Facilitation. For the Record Trade facilitation can play an important role in Experts meeting on the Services Trade Restrictiveness Index achieving national development objectives (STRI), Paris, July 2-3 ­ the meeting marked the culmination of because it enhances countries' the pilot phase of an OECD project that aims at quantifying barriers competitiveness, and allows them to trade to trade in services by developing the services trade restrictiveness goods and services on time and with lower indices (STRI). The key purpose of this meeting was to present transaction costs. and discuss the final STRI for specific sectors. World Customs Organization Meeting, Brussels, June 25-27 ­ Bernard Hoekman, World Bank Director of the International Trade Working Papers Department made a presentation on border management modernization and trade facilitation in a panel discussion on "the The ASEAN free trade agreement: impact on trade flows and foundations for coordinated border management". external trade barriers (WPS 4960) by Hector Calvo-Pardo, Caroline Freund, and Emanuel Ornelas Valuing International Trade Rules, Pfäffikon, Switzerland, June Labor skills and foreign investment in a dynamic economy: 17-19 ­ The event was co-organized by the World Bank and Swiss estimating the knowledge-capital model for Singapore (WPS 4950) National Science Foundation. Little is known about the incentives by Gnanaraj Chellaraj, Keith E. Maskus, and Aaditya Mattoo created by - let alone the empirical impact - of fundamental trade rules such as the Most Favored Nation (MFN) provision, the The better you are the stronger it makes you: evidence on the binding of tariffs and subsidies, provisions to promote asymmetric impact of liberalization (WPS 4930) by Leonardo transparency, and National Treatment obligations. The conference Lacovone sought to redress this lacuna, bringing together theoretical and empirical academic economists, trade policy officials and analysts, A special safeguard mechanism for agricultural imports and the political scientists, and legal experts. management of reform (WPS 4927) by J. Michael Finger International migration, transfers of norms and home country Lunch meeting with WTO developing country delegations, fertility (WPS 4925) by Michel Beine, Frederic Docquier, and Maurice Geneva, June 11 ­ Bernard Hoekman, World Bank Director of Schiff International Trade Department, and Carlos Braga, Director of the Economic Policy & Debt Department met with high representative The crisis-resilience of service trade (WPS 4917) by Ingo Borchert of country delegations to look at the financial crisis and at its and Aaditya Mattoo impact on developing countries on the possible policy responses available to developing countries to ensure a fast recovery from the Beyond the information technology agreement: harmonization of global distress. standards and trade in electronics (WPS 4916) by Alberto Portugal- Perez, Jose-Daniel Reyes, and John S. Wilson The Cross-Border Effects of Policy Responses to the Crisis, Weathering the storm: investing in port infrastructure to lower Brussels, May 26-27 ­ the World Bank and CEPR jointly trade costs in East Asia (WPS 4911) by Kazutomo Abe and John S. organized a conference on the trade implications of policy Wilson responses to the crisis, with the objective to assess the state of play regarding the use of the different policy instruments to either Services in Doha: what's on table? (WPS 4903) by Batshur Gootiiz restrict or support trade. The e-book will be made available for the and Aaditya Mattoo G8 in the second week of July. Does tougher import competition foster product quality Data Day - WTO, Geneva May 18 - 19 ­ an inter-agency initiative upgrading? (WPS 4894) by Ana M. Fernandes and Caroline Paunov promoted by the World Bank, ITC and UNCTAD aiming to raise Career placement of skilled migrants in the U.S. labor market: a awareness on data-related issues. The event covered topics dynamic approach (WPS 4891) by Ileana Cristina Neagu related to trade policy, including services, tariffs and trade, non- tariff measures, agriculture-specific issues, trade facilitation, and Professional services and development: a study of Mozambique other technical information on available tools. (WPS 4870) by Ana Margarida Fernandes and Aaditya Mattoo For more information and download of papers, please visit our website at www.worldbank.org/trade FROM THE POVERTY REDUCTION AND ECONOMIC MANAGEMENT NETWORK (PREM), INTERNATIONAL TRADE DEPARTMENT |