Trade Clippings - April 7 to April 13, 2014

Dear International Trade and Investment Committee Members, 

Here are the international trade and investment articles and publications of interest for the week of April 7 to April 13. This week’s edition has been curated by Anastasia Semenova. Anastasia is an associate at Gowlings in Ottawa. 

Top News

The Guardia, “Time running out for international trade deal, says WTO boss” (April 8, 2014)

• Roberto Azevedo says the WTO has only eight months to consolidate last December's Doha round breakthrough in Bali.

Embassy, “Foreign affairs community reacts to Jim Flaherty's death” (April 10, 2014)

• News of the former finance minister's sudden death at his Ottawa home on April 10 ripped through Canada's foreign affairs and trade community. Colleagues around the world and parliamentarians of all political stripes paid tribute to Mr. Flaherty. Here's a look at some of their reactions. 

Foreign Affairs, Trade and Development Canada, “Canada Imposes Additional Sanctions in Response to Crisis in Ukraine” (April 12, 2014)

• Foreign Affairs Minister John Baird today issued the following statement:
• “Our Government has been clear that we cannot sit by while Russia illegally occupies Ukraine, violating its sovereignty and territorial integrity. Today, we are imposing sanctions on two additional individuals and on a Crimean oil and gas company. We remain steadfast in our support for Ukraine and will continue to work with allies and like-minded countries to apply pressure to Russia until it de-escalates the situation in Ukraine.

Other News

World Trade Organization, “Azevêdo asks members to shift up a gear on Doha preparation” (April 7, 2014)

• Director-General Roberto Azevêdo told the Trade Negotiations Committee on 7 April 2014 that “it’s time to shift things up a gear” in developing a work programme for the conclusion of the Doha Round. “We must now move into a second phase, focused on resolving the problems that we have been outlining—testing what went wrong and putting forward potential solutions,” he said. 

Revised WTO Agreement on Government Procurement enters into force (April 7, 2014)

• The revised WTO Agreement on Government Procurement (GPA) entered into force on 6 April 2014, some two years after the Protocol amending the Agreement was originally adopted. The parties to the revised GPA will see gains in market access of an estimated US$ 80 billion to US$ 100 billion annually for their businesses.

World Trade Organization, “China appeals panel report on US countervailing and anti-dumping measures” (April 8, 2014) 

• On 8 April 2014, China filed a Notice of Appeal regarding the Panel Report in “United States – Countervailing and Anti-Dumping Measures on Certain Products from China” (WT/DS449).

World Trade Organization, “US appeals rare earth panel report” (April 8, 2014)

• On 8 April 2014, the United States filed a Notice of Appeal regarding the Panel Report in “China – Measures related to the Exportation of Rare Earths, Tungsten, and Molybdenum” (WT/DS431).

World Trade Organization, “Bali trade facilitation deal challenged conventional WTO wisdom, new paper says” (April 8, 2014)

• The Agreement on Trade Facilitation — streamlining customs procedures and cutting red tape — reached in Bali in December 2013 was the result of negotiations in Geneva that broke new ground and could be a model for work in some other subjects, according to an account released on 8 April 2014.

World Trade Organization, “Members review six free trade agreements, EU enlargement to 28 member states” (April 8, 2014) 

• The Committee on Regional Trade Agreements, on 8 April 2014, reviewed six regional trade agreements (RTAs) and the enlargement of the European Union to 28 member states with the accession of Croatia.

World Trade Organization, “Aid-for-trade flows rebound, members told, as they mull future priorities” (April 9, 2014)

• Aid for trade has bounced back, with Africa as the largest beneficiary, WTO members heard on 9 April 2014, in a meeting where they also discussed the priorities for next two years of initiative.

Embassy, “Not too late to change Canada-Honduras trade deal” (April 9, 2014)

• Honduras saw 32 journalists murdered since 2009. This deal can’t move forward without this sad fact being taken into account.

Embassy, “Feds disclose almost $400,000 in travel expenses for EU trade talks” (April 9, 2014)

• Federal expense reports show Canada’s trade minister, chief negotiator and some staff billed taxpayers close to $400,000 from mid-2009 to 2014 on travel related to the free trade talks with the European Union, an Embassy analysis reveals.

International Centre for Trade and Sustainable Development, “EU Lodges WTO Challenge Against Russia Pork Import Ban” (April 10, 2014)

• The EU has challenged Russia’s ban on imported pork products, filing a formal complaint at the WTO on Tuesday. The move comes at a time of heightened bilateral tensions between the two sides, due both to the Ukrainian crisis and to other recent trade disagreements.

International Centre for Trade and Sustainable Development, “EU-Africa Summit Eyes Increased Trade, Investment Ties” (April 10, 2014)

• EU and African leaders meeting in Brussels last week pledged to deepen trade and investment ties between their two continents, with both sides calling for a “fundamental shift” in cooperation. The 2-3 April gathering brought together over 60 heads of state, making it the EU’s largest ever summit.

World Trade Organization, “Steps agreed on implementing Bali decision on rules of origin for LDCs” (April 10, 2014)

• The Committee on Rules of Origin, on 10 April 2014, agreed on steps to implement the Decision on Preferential Rules of Origin for the Least Developed Countries (LDCs) adopted at the 9th Ministerial Conference in Bali last December. This decision would ensure that non-reciprocal rules of origin for LDCs are simple, transparent and that they take into account the productive capacities of LDCs.

European Commission, “Stakeholder meeting on investment protection in the TTIP” (April 10, 2014)

• The European Commission has launched a public consultation on investment protection and investor-to-state dispute settlement (ISDS) in the Transatlantic Trade and Investment Partnership (TTIP). The aim of the consultation is to better define the EU’s approach to investor protection and ISDS in the proposed TTIP negotiation by allowing all stakeholders an opportunity to provide their reflections. (Meeting taking place on May 14, 2014)

International Centre for Trade and Sustainable Development, “EU Lawmakers Approve Revised Aviation Emissions Rule” (April 10, 2014)

• The European Parliament backed a “compromise” revision to the aviation portion of the EU’s Emissions Trading System (ETS) last week, agreeing to exempt international long-haul flights from the controversial measure until at least 2017. The updated policy, now in its final stages, will need to be approved by the bloc’s ministers in order to become law.

International Centre for Trade and Sustainable Development, “Australia, Japan Reach Trade Deal” (April 10, 2014)

• Japan and Australia clinched a bilateral trade pact on Monday, agreeing to slash import tariffs on a series of products, including beef, dairy, and automobiles. The news has sparked questions over what impact the deal might have on the pace - and outcome - of the 12-country Trans-Pacific Partnership (TPP) negotiations, of which both countries are members.

International Centre for Trade and Sustainable Development, “Japan Reports Increase in Trade-Distorting Farm Subsidies” (April 10, 2014)

• Japan has increased its trade-distorting support to farmers, according to new figures for 2010-2012 that the country has reported to the WTO.

Government Announcements/Press Releases

Foreign Affairs, Trade and Development Canada, “Harper Government to Highlight Benefits of Canada-Korea Free Trade Agreement for British Columbia” (April 13, 2014)

• The Honourable Ed Fast, Minister of International Trade, and the Honourable John Duncan, Member of Parliament for Vancouver Island North and Minister of State and Chief Government Whip, will host a round table with hard-working Canadians and business representatives looking at opportunities in the South Korean market for the fish and seafood sector. Minister Fast will also make an announcement supporting a local organization’s efforts to create jobs. (Date: Monday, April 14, 2014)

Commentary

Noemi Gal-Or, “Responsibility of the WTO for Breach of an International Obligation under the Draft Articles on Responsibility of International Organization”, Canadian Yearbook Of International Law (attached)

• This article has graciously been provided for circulation by the author.
• The paper challenges the argument that the World Trade Organisation (WTO) is devoid of executive governing functions hence is immune to the regime of the Responsibility of International Organisations (RIO). A brief drafting history of RIO and especially, a clarification of the terminology associated with matters of international responsibility, followed by two hypothetical examples of the context within which the WTO may invoke international responsibility for an unlawful act, set the stage for the paper’s main (counter) argument. An examination of WTO’s nature, consisting of an analysis of the organisation’s constituent law, sui generis essence, mandate and functions, international legal personality, and associated terminology and the WTO’s own presentation to the world lays out the WTO-specific elements pertinent to a finding of responsibility. A critical study of RIO Articles 64 on lex specialis and 10 on the existence of a breach of an international obligation and their application to the WTO concludes the paper’s argument. It thus dispels both notions that (a) the WTO is exclusively member-driven hence not an executive and governing organization but sui generis, and (b) therefore, unable to commit a breach of an international obligation and immune to RIO. Although the WTO may exceedingly rarely be in breach of an international obligation, it nonetheless – as any international organization – comes within RIO’s jurisdiction. The organisation should therefore consider adjusting its internal rules accordingly. It is hoped the paper will stimulate a debate to further explore this subject.