Technical Capacity Building Workshop on Afghanistan’s Accession to WTO Report
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Technical Capacity Building Workshop on Afghanistan’s Accession to WTO Report
Technical Capacity Building Workshop on Afghanistan’s Accession to WTO New Delhi, 22-24 August 2012 Report South and South-West Asia Office (ESCAP-SSWA) UN-Economic and Social Commission for Asia and the Pacific (ESCAP) C-2 Qutab Institutional Area, New Delhi-110016, India Email: [email protected] International Trade Centre (ITC) 54-56 Rue de Montbrillant, 1202 Geneva, Switzerland Postal address : Palais des Nations, 1211 Geneva 10, Switzerland Technical Capacity Building for Afghanistan’s Accession to WTO Abbreviations ESCAP-SSWA : ESCAP South and South-West Asia Office FICCI : Federation of Indian Chambers of Commerce and Industry GATS : General Agreement on Tariffs and Trade IIFT : Indian Institute of Foreign Trade ITC : International Trade Centre LDCs : Least developed country MFTR : Memorandum on the Foreign Trade Regime MoCI : Ministry of Commerce and Industry – Afghanistan SAWTEE : South Asia Watch on Trade, Economics & Environment SPS : Sanitary and Phytosanitary measures UN ESCAP : United Nations Economic and Social Commission for Asia and the Pacific WTO : World Trade Organization Disclaimer: The views expressed in this report are those of the author(s) and should not necessarily be considered as reflecting the views or carrying the endorsement of the United Nations or its member states. Page 2 2 Technical Capacity Building for Afghanistan’s Accession to WTO INTRODUCTION ESCAP South and South-West Asia Office (ESCAP-SSWA) in New Delhi, in collaboration with the International Trade Centre (ITC) based in Geneva organized a public - private dialogue from 22 to 24 August 2012 in New Delhi to assist in building capacity in Afghanistan for its Accession to the WTO. Afghanistan applied for WTO Membership in 2004 and the Second Working Party was set up 2012 indicating that the negotiations has entered an active phase. In line with the Istanbul Programme of Action (IPA) which underlines the importance of supporting and facilitating the accession of LDCs to the WTO, and the Almaty Programme of Action that emphasizes on the need to assist landlocked countries in their WTO accession, this capacity-building Programme on WTO Accession of Afghanistan was mainly designed to initiate and nurture a well-informed and structured policy dialogue between public and private sector officials by addressing knowledge-gaps and related trade policy and development issues. Recognizing that each accession process is unique, the three day programme (Annex 1) was customized, and reflected the specific issues of interest to the Afghanistan’s WTO Accession process. The programme covered a diverse set of subjects relating to the accession process and negotiations including rules, market access, trade in services, standard and SPS Agreement, generating a rich debate among the participants. Besides, the programme also drew lessons from Nepal’s experience as the first Least Developed Country to have acceded to the WTO and helped national officials develop a road map for WTO accession. The participants at the workshop included 22 officials from Ministry of Commerce and Industry and several leading trade chambers in Afghanistan. The list of participants is at Annex II. ESCAP-SSWA and ITC considered the workshop as the first in a series of planned activities to assist Afghanistan for the accession process with more specific themes to be addressed in subsequent capacity building exercises in the future. As Afghanistan is moving into a crucial and demanding phase of accession negotiations, with several Working Party meetings scheduled from 2012 to 2014, this type of programme would gain even more relevance over time. BACKGROUND: WTO ACCESSION OF AFGHANISTAN Since applying for WTO Membership in 2004, the Government of Afghanistan has worked actively to accelerate the WTO accession process. Led by the Ministry of Commerce & Industry, the Government has identified policies and laws to be brought into compliance with WTO, and started to develop initial offers for market access negotiations in goods and services. The second Working Party of the Accession of Afghanistan took place in 2012 which signaled that Page 3 3 Technical Capacity Building for Afghanistan’s Accession to WTO the process has entered into higher gear of negotiation. WTO Members, during the Eighth WTO Ministerial Conference (December 2011), applauded the Government of Afghanistan for its liberal and export-led strategy as a basis for negotiating WTO membership. However, Afghanistan’s strong Government commitment alone will not be sufficient to conclude the negotiations; technical capacity and dialogue will need to be stepped-up in order to ensure backing of all players. In Afghanistan, as in most acceding countries, enhanced technical capacity of all stakeholders, public and private sector, will be required to establish and nurture meaningful dialogue throughout the negotiation process. In specific, a wider and deeper awareness of not only the benefits of openness, competition and the role of the WTO but also the importance of preserving the policy space for development is needed to bring about a national consensus for WTO Membership. A pro-active and constructive dialogue among key stakeholders in particular with the private sector, is needed in informing and consulting their member-base, as well as advocating their business interests in the negotiation process. This can only exist upon enhancing their understanding of the pros and cons of WTO Accession for their country. Day 1: Wednesday, 22 August 2012 Inaugural Session Dr. Nagesh Kumar, Chief Economist of ESCAP and Director, ESCAP-SSWA welcoming the chief guest His Excellency H E Shaida M. Abdali, Ambassador of Afghanistan and other guests and participants stated that he was greatly encouraged by the overwhelming positive response received from the Government of Afghanistan when the proposal was forwarded to capital Kabul through the Embassy, in particular from H.E Mozammil Shinwari, Deputy-Minister of Commerce and Industry who responded immediately endorsing this programme. He further emphasized that UNESCAP SSWA has committed to support Afghanistan in providing technical assistance capacity building and training to support Afghanistan’s national effort of integrating with the world economy. In that light the accession to the World Trade Organization (WTO) which is the only multilateral trade rule making body is an important step for small countries like Afghanistan to further harness the benefits of participation in international trade despite the fact that Doha Round of trade negotiation is currently lagging behind. WTO membership can also help Afghanistan to initiate vital domestic legal and economic policy reform He highlighted the importance of weighing the cost of accession to the WTO against the benefits, which would otherwise result in compromising vital national interest such as loss of Page 4 4 Technical Capacity Building for Afghanistan’s Accession to WTO policy space that is needed to address future development needs of Afghanistan. In concluding his opening remarks, it was stated that this programme on WTO accession would not be one off event but the ESCAP-SSWA in partnership with the ITC would be happy to continue the programme in accordance with the specific need of the Government of Afghanistan including for building productive and trade capacity for taking advantage of the market access that may become available from a successful accession to WTO. Mr. Rajesh Aggarwal, Chief, Business and Trade Policy, ITC, Geneva, while thanking UNESCAP for its collaboration for hosting this workshop, described this three-day event as the first of its kind being organized by the International Trade Centre (ITC) in partnership with UNESCAP, in support of Afghanistan’s bid to WTO membership. He observed that this workshop was a part of ITC and WTO’s joint programme on building trade capacity for acceding LDCs under which ITC had supported Samoa, which acceded earlier this year, Lao PDR and Yemen, which are likely to complete their accession process later this year, and Ethiopia, where the pace of negotiations is yet to pick up. While emphasizing the importance of improved understanding by all stakeholders of the business implications of WTO membership, its opportunities and challenges, he outlined three basic principles of ITC’s strategy in implementing this ITC’s support programme on WTO Accession. First, ITC has always advocated the notion that WTO negotiations cannot be successfully concluded unless they are conducted in the backdrop of an already on-going domestic reform process which has the backing of all the important stake-holders. Second, the actual involvement and commitment of the private sector would be crucial in order to successfully conclude WTO accession deal to that extent this programme could play a part in widening and deepening the awareness of the benefits of openness, competition and the role of WTO. Third, ITC encourages the collaboration between the Government and the private sector on a regular and sustained basis through well-established and functioning mechanisms to ensure that the genuine concerns of the private sector are fed into the negotiating positions. In closing he stated that ITC was keen to continue this programme and plan on future activities in consultation with the Government of Afghanistan and private sector with UNESCAP. His Excellency Mr Shaida M. Abdali, Ambassador of Afghanistan in India, inaugurated the conference and in his opening address, he extended the gratitude of the Afghan people and government to UNESCAP and the International Trade Centre (ITC) for co-sponsoring the training seminar. He underlined that the benefits of accession to WTO would help Afghanistan to realize full multi-dimensional potential for sustainable development and achieve the core objective of the WTO itself, that is, to facilitate unhindered international trade and investment. Thus reforming legal environment and implementing improved trade facilitations must be seen as a source of welfare for the citizens of Afghanistan. Page 5 5 Technical Capacity Building for Afghanistan’s Accession to WTO In this regard, he recalled the historical importance of the geo-strategic position of the country in international trade relations, and enhanced the emerging economic regional opportunities in which Afghanistan should now be involved. Afghanistan –a landlocked country still faces various challenges such as terrorism, but is situated at the crossroads of the new centers of the world economy and will develop through bilateral and multilateral trade partnerships. His Excellency praised the progress made by his country on its path to WTO accession but also added that it was urgent to accelerate the process. He stated that the programme of this nature not only built the critical institutional capacity that is direly needed in Afghanistan but also encourage and facilitate public-private dialogue on issues that cannot be addressed by one side alone. Perhaps, more than in any country, the two sectors must communicate and collaborate closely in order to address the many intertwined security and economic needs of Afghanistan. he was delighted to see both sectors well represented at the workshop. Session 1 Multilateralism, Regionalism and Development Challenges Dr. Nagesh Kumar, Chief Economist of ESCAP and Director, ESCAP-SSWA in his presentation, provided insights into the relationship between trade and development, the advantages of the multilateral framework for trade liberalization from a development perspective and challenges it faces. The presentation comprehensively covered the recent trends in regionalism and its place in a country’s trade policy in the context of recent trends in global economic order and multilateral trade negotiations. Dr. Kumar stressed the importance of strong multilateral framework and effective negotiation by leveraging the coalitions during the multilateral trade negotiations, especially for weaker players. The presentation emphasized on increasing regional economic integration as key step for countries’ development strategy, especially for the South and South West Asian countries. Session 2 Introduction to the WTO Accession: Functioning, Main principles and procedural aspects of accession: Benefits and challenges of WTO Membership Mr. Arif Hussain, Senior Adviser on WTO Accession, ITC (and former Director of the WTO Accessions Division) introduced the principal functions of the WTO and familiarized participants with the benefits and challenges of becoming a member of WTO. In the discussion Mr. Hussain introduced to participants the functions of the multilateral trading system and core principles that Page 6 6 Technical Capacity Building for Afghanistan’s Accession to WTO are the foundation of the multilateral trading system. He explained the functions, strengths, the effective dispute settlement system and the limitations of WTO as a multi-lateral organization. Mr Hussain highlighted, that the WTO membership is important for a country as it brings in predictability, transparency and enables to secure access for its products and services to foreign markets. The membership shall be an opportunity for Afghanistan to initiate effective national and domestic economic reform. And, as an LDC, Afghanistan will be eligible for concessions and flexibilities. Mr. Hussain also provided an overview of the accession process to the WTO, focusing on the organization and the flow of the work involved during the accession process. He explained the increasing role and active participation by Least Developed Countries (LDC’s) in bilateral negotiations and decision making process at WTO and on the vital role played by international organization like ITC in the accession process. Mr. Hussain applauded the efforts that have been so far made by the government of Afghanistan in submitting the Memorandum on the Foreign Trade Regime (MFTR) to the WTO Session 3 WTO Accession of Afghanistan: Status of the negotiation process; Benefits and Challenges Mr. Hafizullah Baha, Professional Member of WTO Directorate, International Trade Department, Ministry of Commerce and Industry, Government of Afghanistan presented the current status of his country’s WTO accession process. In the session Mr. Baha described briefly the objectives pursued by Afghanistan in pursuing WTO membership. He explained that presently the private sector is handicapped, for lack of internationally accepted trading companies, appropriate marketing, financing and support institutions. The WTO membership shall pave the way for addressing the above issues, bringing stability in policy and attracting foreign investments to the country. Afghanistan being a land locked country, the WTO membership shall also help gain transit rights to access to sea route through neighbouring countries and in turn to international markets. Mr Baha explained that the accession strategy would be mainly guided by above objectives as part of country’s effort to effectively integrate into the global economy. He also narrated the process and steps initiated by Afghanistan in pursuit of the accession to WTO to-date. Mr. Baha provided an update on the proceedings of Working Party meeting of Afghanistan which was held on 18th June 2012 and the first round of bilateral negotiations regarding services was conducted with the United States in June 2012. He informed the meeting that Afghanistan is in the process of drafting and amending laws, regulations and procedures to bring domestic Page 7 7 Technical Capacity Building for Afghanistan’s Accession to WTO legislation in line with WTO rules. Mr. Baha emphasized on the challenges and opportunities for Afghanistan in gaining WTO membership. Session 4 Case Study: Lessons Learnt from Nepal’s Experience During the session Dr. Posh Raj Pandey, Executive Chairman, South Asia Watch on Trade Economics and Environment (SAWTEE) who had been deeply involved in Nepal’s accession process presented a case study on ‘Nepal’s accession to WTO’. Nepal completed the negotiation process for WTO accession, and obtained WTO membership in 2003. The session discussed on the issue of ‘stakeholder confidence’ and the interplay between Government, society and private sector contributing to Nepal’s accession to the WTO. The case study of Nepal’s accession was interesting and relevant as both Afghanistan and Nepal are both land locked countries with LDC’s status facing similar development challenges in particular with respect to participation in international trade. Dr. Pandey, described how Nepal recognized WTO membership as a means for over all development by improving democratic accountability, identifying development needs of different sectors and capacity building of institutions. Nepal, after joining the WTO experienced high growth rate in GDP, investment, national savings, exports and overall economy. He highlighted industrialization, protection of local farmers, encouraging foreign investment, and improving exports as the basis for Nepal’s WTO negotiations. Dr Pandey emphasized the importance of wideranging consultation process and involvement of private sector in the accession process. In Nepal’s case establishment of high level committee, the technical committee, dedicated team and technical assistance received from UNDP and UNCTAD accelerated the accession process. He also briefed on Nepal’s WTO negotiations and commitments in goods and services. Dr. Pandey, based on his experience also put forwarded a few suggestions to Afghanistan as to the process and substance of negotiations. Thursday, 23 August 2012 (DAY 2) Session 5 National Trade Policy for Export Competitiveness: Informed Business Advocacy for Reform Mr. Rajesh Aggarwal, Chief, Business and Trade Policy, ITC, Geneva at this session provided participants with an understanding of the linkages between trade policy and export competitiveness. On the basis of ITC’s Trade Policy Framework, Mr. Aggarwal underlined the Page 8 8 Technical Capacity Building for Afghanistan’s Accession to WTO success-factors for business competitiveness, as well as objectives enabling export-led growth. He added that the trade competitiveness framework needs to be a comprehensive one targeting all the impediments at the border and behind border. Thus trade policy instruments should be focused on a range of issues: costs of inputs (import duties on raw materials and intermediate goods), infrastructure services costs (transport, communication and finance efficiency), business environment, standards compliance (SPS and other technical standards), exports costs (trade facilitation) and market access (distribution, preferential trade regime). The objectives of such framework are: removing anti-export bias, creating competitive infrastructure services, promoting foreign direct investment, moving good across borders effectively and addressing export market issues. Session 6 Roundtable Discussion: How can the private sector and stakeholders engage constructively in the negotiation process? Mr. Manab Majumdar, Assistant Secretary General, FICCI chaired the session. The other speakers of the session were and Mr Alhaj Rahmuddin Haji Agha, CEO of Raheem Khairy Ltd and Director of Afghanistan Advisory Board of National Entrepreneurs (AABNE) and Mr. Mohammad Daoud Sultanzoy, Expert on Political and Economic Issues. Sharing his experience at FICCI, Mr. Majunmdar emphasized the importance of constituting an effective consultation and communication mechanism involving key stakeholders (government officials, private sector, research organization) which is critical for ensuring inclusive trade policy making. It was stated that as part of the core activities of FICCI, it regularly interacts with policy makers on trade policy matters while providing valuable inputs to the government on the basis of feedback received from stakeholders through their own consultation mechanism that have greatly contributed to create a pro-active business community. He further underlined the importance of the predictability and credibility of any policy framework in the absence of which a country is unable to send out strong signals to outside countries. In this perspective, there is a necessity for the private sector to constantly engage with public sector. While the panelists recalled the important gaps in terms of industrial and banking capacities in Afghanistan, discussions focused on the need for access to foreign capital and the huge potential of the country as a transit for trade and energy distribution in the region. Thus representatives of Afghanistan regretted being hostages of unfriendly political choices from Iran and Pakistan when they closed all transit routes during the season of agricultural exports. Mr. Daoud stressed the importance of private sector in economic development of his country, which according to him has been reactive to market rather than proactive due to issues including lack of security, predictability and conducive environment. Furthermore, he expressed his optimism on much larger involvement of private sector in the future to act as a catalyst for Page 9 9 Technical Capacity Building for Afghanistan’s Accession to WTO development. He further added “it’s the right time for introducing better legislations and better government policies to support the private sector, benefiting from international experiences” Mr Alhaj Rahmuddin expressed his view on the advantages of WTO membership for Afghanistan and was optimistic that the membership would bring more opportunities in enhancing transportation of goods through transit corridors, dry ports and energy sectors. He also underlined the importance of regional cooperation for Afghanistan’s development. Sessions 7 & 8 Trade in Services and WTO Accession: Regulating Openness in Services Sectors, Economic importance of services trade and regulations; negotiating market access in services (lessons-learnt) In this session Mr. Sumanta Chaudhuri, Joint Secretary, Department of Commerce, Ministry of Commerce and Industry, Govt. of India, introduced participants to ‘services trade’ which is growing in economic importance globally and in the region and its relevance for the entire private sector. Mr. Chaudhuri explained key features, including categorization of services in different modes of services trade, and how domestic regulations are impacted by the GATS. Using the Indian example of liberalizing trade in services, the session highlighted the potentials for economic growth through the services sector development, regulation and liberalization. Services were included for the first time in the Uruguay round in 1995: General Agreement on Trade in Services (GATS) is very wide and affects all services, except those in exercise of Government authority, and most of Air Traffic Services. He clarified the four modes of supply: Cross border (e.g. consulting), Consumption abroad (e.g. tourism), Commercial presence (e.g. banking) and Presence of natural persons (e.g. migration of skilled personnel). Mr. Chaudhuri stressed the importance of mode 3 as crucial and said it depends on the way Afghanistan will define its foreign investment regime. In light of Afghanistan’s negotiations on services, as a WTO acceding country, Mr. Chaudhuri elaborated how the ‘Scheduling of Commitments’ should be structured under different modes taking into account of policy intentions. In this exercise he emphasized the importance of drawing lessons from the implications of commitments that have been inscribed by the recently accessed countries such as Viet Nam and Nepal. Page 10 10 Technical Capacity Building for Afghanistan’s Accession to WTO DAY 3: Friday, 24 August 2012 Session 9 &10 Market Access Negotiations (request and offer) in goods and services. LDC Accession Experience and Commitments The speaker of session Mr. Sajal Mathur, Centre for WTO Studies, IIFT, New Delhi who also served as secretary to Working Party of Accession of Afghanistan, provided insights into the conditions and processes that need to be followed by countries before becoming a member of WTO. In this context Mr. Mathur elaborated on the process of bilateral negotiations involved in market access, commitments on tariffs of Goods and commitments on trade in services which constitute, among others, an integral part of WTO accession process. The presentation also explained important WTO rules and disciplines and allowed an in-depth understanding of the actual negotiation and accession process. During the discussion a great deal of attention was paid to clarifying the preparation of ‘Schedule of Tariff Concessions’ and other key terminologies used in scheduling such as Tariff bindings, Initial Negotiating Rights (INRs), Tariff-Rate Quotas, non-tariff concessions, Agriculture Subsidies, MFN rates. Mr. Mathur also enlightened the participants about other substantive disciplines embodied in WTO system customs-related regulations, import and export restrictions, domestic support, rules on state-trading enterprises etc. Transparency and notification obligations that acceded members are required to abide by, were explained with some specific examples. Further, while sharing the experiences of recently acceded LDCs he discussed about market access negotiations and how to approach them by identifying sensitive products and service sectors, and also underlined the importance of sector by sector analyses of domestic capabilities while deciding on the limits of negotiation. Considering the LDC status of Afghanistan, Mr. Mathur also elaborated on special and differential treatment for acceding LDCs and transitional arrangements to be granted taking into account individual development, financial and trade needs of the LDC. He suggested that Afghanistan should fully make use of such flexibilities while negotiating with the WTO membership. He also stressed that transition periods are granted on the basis of action plans and with Technical Assistance (TA) to support implementation of verifiable action plans. Page 11 11 Technical Capacity Building for Afghanistan’s Accession to WTO Session 11 Market Openness in Selected Service Sectors: Telecommunications; Financial Services; Energy; Transport Mr. Hafizullah Baha, Professional Member of WTO Directorate, International Trade Department, Ministry of Commerce and Industry, Government of Afghanistan made a comprehensive presentation clarifying the domestic policy-issues and considerations that would determine Afghanistan’s position and interests in the area of accession negotiations in services. The following points were highlighted. Previously the public sector was the primary supplier of services in Afghanistan and the role of the private sector was highly limited. By adopting a development and growth strategy based on an open, private sector-led market economy, there had been a substantial increase in trade in services in a number of areas. The aim of the Government's policy was to efficiently meet consumer needs by ensuring effective competition among service providers subject to the regulation of services sectors via licensing. Foreign investment in services and foreign companies in general were currently leading the development of the service sector. The general policy is to promote open competition in all sectors of services in the country. there is no exclusive or monopolistic rights to provide services in the country, except in electricity and drinking water He informed the meeting that Afghanistan’s offer on services was submitted to WTO secretariat in June 2012 after having completed an extensive domestic consultation process involving concerned departments and private sector. While elaborating the commitments inscribed in the schedule submitted, he stated that almost around 90 service sub sectors are added to the Afghanistan offer on services with the hope that these sectors would bring tangible employment creation opportunities in Afghanistan through foreign direct investment. In this context he clarified that offers inscribed in national treatment and market access columns in the schedule of horizontal commitments are clear indication of a friendly foreign investment regime intended to encourage FDI in to the country. Page 12 12 Technical Capacity Building for Afghanistan’s Accession to WTO Session 12 Negotiating WTO Accession: Standards and SPS Agreement Dr. Dayaratna Silva, Deputy Head, ESCAP SSWA, in the session reinforced the importance of food and agriculture sector of Afghanistan economy and the need for compliance of WTO discipline on SPS discipline in the accession negotiations. Dr. Silva discussed international standards and measures to be followed by WTO member countries while trading in food and agricultural products. He explained sanitary and phytosanitary measures (SPS Agreement) which allows governments to restrict trade in order to protect human animal or plant life or health but arbitrary use of such measures are not consistent with WTO discipline. He emphasized, Afghanistan being an agricultural economy, compliance with the SPS standards is vital to develop strong export oriented food sector which is currently limited to regional markets in the region. The session enabled participants gain insights into the agreement that sets out the basic rules for food safety and animal and plant health requirements. With regards to the Afghanistan’s WTO accession Dr. Silva recommended an action plan with government establishing a dedicated unit to service the negotiation relating to SPS issue, manned with staff specialized in the field of food safety, animal and plant health. Concluding Session Dr. Nagesh Kumar, Chief Economist of ESCAP and Director, ESCAP-SSWA, Mr. Rajesh Aggarwal, Chief, Business and Trade Policy, ITC, Geneva and Mr. M. Ashraf Haidari, Deputy Ambassador, Embassy of Afghanistan spoke during the session Mr. Rajesh Aggarwal, in his remarks assured the representatives of government of Afghanistan other participant every possible support of ITC to government of Afghanistan in the Accession process. Mr. M. Ashraf Haidari, in his concluding remark highlighted the strategic advantage of Afghanistan connecting the east to the west and north to the south and look ahead for Afghanistan to play key role in international trade he also thanked and welcomed the support and assistance extended by ESCAP, ITC and the international community as a whole. In his closing remarks Dr. Nagesh Kumar, thanked the deputy Ambassador of Afghanistan, distinguished participants from Afghanistan, expert speakers of the sessions and guests, for the strong support they extended for making the program a grand success. He assured that he and his team would strive to meet the developmental aspirations of members States from the South and South-West Asian Subregion. Page 13 13 Technical Capacity Building for Afghanistan’s Accession to WTO 14 Annexure I Technical Capacity Building for Afghanistan’s Accession to WTO – Lessons from Recent Accession & their Development and Business Implications 22-24 August 2012, New Delhi Venue: Conference Hall, ESCAP-SSWA C-2 Qutub Institutional Area, New Delhi Programme Wednesday, 22 August 2012 (DAY 1) 09.30 – 10.00 Registration and coffee 10.00 – 10.30 Opening Session Welcome Address by Dr. Nagesh Kumar, Head, ESCAP South and South West Asia Office and Chief Economist of UN-ESCAP Opening Remarks by Mr. Rajesh Aggarwal, Chief, Business and Trade Policy, ITC, Geneva Statement by H.E. Mr. Shaida Mohhamad Abdali, Ambassador of Afghanistan, New Delhi 10.30 – 11.30 Session 1: Multilateralism , Regionalism and Development Challenges Speaker: Dr. Nagesh Kumar, Head, ESCAP SSWA Open Discussion 11.30 – 11.45 Coffee/Tea Break 11.45 – 13.00 Session 2: Introduction to the WTO Accession: Functioning, Main principles and procedural aspects of accession. Benefits and challenges of WTO Membership Speaker: Mr. Arif Hussain, Senior Adviser on WTO Accession, ITC (and former Director of the WTO Accessions Division) Highlighting the principal functions of the WTO, this session will introduce participants to the benefits and challenges of becoming a member of WTO. Participants will be introduced to the functions of the multilateral trading system, core principles that are the foundation of the multilateral trading system ‘Most Favoured Nation’, and National Treatment. Overview of the accession process to the WTO, focusing on the organization and the flow of the work involved during the accession process. Open discussion 13.00 – 14.00 Lunch 14.00 – 15.00 Session 3: WTO Accession of Afghanistan: Status of the negotiation Page 14 Technical Capacity Building for Afghanistan’s Accession to WTO 15 process; Benefits and Challenges Speaker: Mr. Hafizullah Baha, Professional Member of WTO Directorate, International Trade Department, Ministry of Commerce and Industry, Government of Afghanistan Presentation and discussion focusing on the objectives pursued with WTO Membership of Afghanistan, as well as the accession strategy guiding those objectives. Perspectives on the unique situation of Afghanistan economy and regulatory environment, as a background to the Government-led negotiations and reform-process. Open Discussion 15.00-15.15 Tea break 15.15 – 17.00 Session 4: Case Study: Lessons Learnt from Nepal’s Experience Speaker: Dr. Posh Raj Pandey, Executive Chairman, South Asia Watch on Trade Economics and Environment (SAWTEE) Nepal completed the negotiation process for WTO Accession, and obtained WTO Membership in 2003.SAWTEE was one of the non-governmental organizations (NGOs) which played an active and positive role in Nepal’s accession to WTO, emphasizing critical areas for attention, and pointing towards opportunities for the country’s development. This session sheds light on the issue of ‘stakeholder confidence’ & the interplay between Government, society and private sector contributing to Nepal’s accession to the WTO. Open Discussion Thursday, 23 August 2012 (DAY 2) 09.30 – 11.00 Session 5: National Trade Policy for Export Competitiveness: Informed Business Advocacy for Reform Speaker: Mr. Rajesh Aggarwal, Chief, Business and Trade Policy, ITC, Geneva This session provides participants with an understanding of the linkages between trade policy and export competitiveness. On the basis of ITC’s Trade Policy Framework, participants will understand the success-factors for business competitiveness, as well as objectives enabling export-led growth. 11.00 – 11:15 Coffee/Tea Break 11:15 – 12.00 Continued Session 5 + Open discussion 12.00 – 13.00 Session 6 : Roundtable / Discussion How can the private sector and stakeholders engage constructively in the negotiation process? Speaker/Moderator: Mr. Manab Majumdar, Assistant Secretary General, FICCI Supporting a pro-active business community, this presentation will also shed light on potentials and instruments of effective business advocacy and public private collaboration. Page 15 Technical Capacity Building for Afghanistan’s Accession to WTO 16 Open Discussion 13.00 – 14.00 Lunch 14.00 – 15.00 Session 7: Trade in Services Speaker: Mr. Sumanta Chaudhuri, Joint Secretary, Department of Commerce, Ministry of Commerce and Industry, Govt. of India This session will introduce participants to services trade, the growing economic importance and its relevance for the entire private sector. Using the Indian example of liberalizing trade in services, this session will highlight the potentials for economic growth through services development, regulation and liberalization. Open discussion 15.00 - 15.15 Coffee/Tea Break 15.15 – 17.00 Session 8: WTO Accession: Regulating Openness in Services Sectors. Economic importance of services, trade and regulations; negotiating market access in services (lessons-learnt) Speaker: Mr. Sumanta Chaudhuri, Joint Secretary, Department of Commerce, Ministry of Commerce and Industry, Govt. of India Introduction to multilateral framework that regulates services trade multilaterally; the General Agreement on Trade in Services (GATS). Explanation of key features, including categorization of services in different modes of services trade, and how domestic regulations are impacted by the GATS. In light of Afghanistan’s negotiations on services, as a WTO Acceding country, introduction to the ‘Scheduling of commitments’ and commitments undertaken by recently acceded countries. Open Discussion Friday, 24 August 2012 (DAY 3) 09:30 – 11:00 Session 9: Market Access Negotiations (request and offer) in goods and services. LDC Accession Experience and Commitments Speaker: Mr. Sajal Mathur, Centre for WTO Studies, IIFT, New Delhi In this session, participants will gain insights about the conditions of becoming a member of WTO, on ‘terms to be agreed’. The presentation will focus on the substance of the negotiation process, specifically market access commitments on tariffs. The presentation will take into account lessons learnt from recently completed WTO Accession processes. Open Discussion 11:00 – 11:15 Coffee/Tea Break 11:15 – 13:00 Session 10: Negotiating WTO Accession: rules and other specific commitments, including their business implications Speaker: Mr. Sajal Mathur, Centre for WTO Studies, IIFT, New Delhi Page 16 Technical Capacity Building for Afghanistan’s Accession to WTO 17 This session will introduce participants to experiences from recently acceded countries, in specific with regard to complying with multilateral rules, such as customs-related regulations, import and export restrictions, domestic support, rules on state-trading enterprises. Attention to Members transparency and notification obligations. Open discussion 13:00 – 14.00 Lunch 14.00 – 15.00 Session 11: Market Openness in Selected Service Sectors: Telecommunications; Financial Services; Energy; Transport Speaker: Mr. Hafizullah Baha, Professional Member of WTO Directorate, International Trade Department, Ministry of Commerce and Industry, Government of Afghanistan With a view to Afghanistan’s negotiations in the field of services, this session sheds light on the domestic policy-issues and considerations that will determine Afghanistan’s position and interests in the negotiations. Open Discussion 15.00 – 16.00 Session 12: Negotiating WTO Accession : Standards and SPS Agreement Speaker: Mr. Dayaratna Silva, Deputy Head, ESCAP SSWA As the Agriculture sector remains a cornerstone for many economies, it also is a sensitive part of the WTO Accession negotiations. Apart from market access for agricultural products, WTO Membership also requires countries to comply with international standards in protecting health. The WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) allows governments to restrict trade in order to protect human, animal or plant life or health, provided this is scientifically justified and follows certain requirements. In this introductory session, participants will gain insights into the agreement that sets out the basic rules for food safety and animal and plant health requirements. Open Discussion 16.00 – 16.15 Coffee/Tea Break 16.15 – 17.00 Concluding Session: Recommendations for Afghanistan Strategy for WTO Accession Building stakeholder confidence for WTO Accession of Afghanistan: what role for the private sector? What lessons from Nepal and other countries’ accession processes for Afghanistan? Open Discussion 17.00 Evaluation and Vote of Thanks Page 17 Technical Capacity Building for Afghanistan’s Accession to WTO Annexure II LIST OF PARTICIPANTS AFGHANISTAN H.E. Mr. Shaida Mohhamad Abdali, Ambassador Extraordinary and Plenipotentiary, Embassy of Afghanistan, 5/50F, Shantipath, Chanakyapuri, New Delhi 110 021. Tel: +91-11-24103331, 24100486 Mr. M. Ashraf Haidari, Deputy Ambassador, Embassy of Afghanistan, 5/50F, Shantipath, Chanakyapuri, New Delhi 110 021. Tel: +91-11-24870486; E-mail: [email protected] Mr. Ahmad Fardin Zalali, Deputy Commercial Attache, Embassy of Afghanistan, 5/50F, Shantipath, Chanakyapuri, New Delhi 110 021. Tel: +91-11-26111527; E-mail: [email protected] Mr. Hafizullah Walirahimi, Director, Ministry of Commerce and Industries (MOCI), 19, DarulAman Road, Kabul, Aghanistan. Tel:+93-79831333/772016828; Email: [email protected] Mr. Mirwais Ahmad Zai, HR Director, Ministry of Commerce and Industries (MOCI), Karte Say Darulaman Road, Kabul, Afghanistan. Tel: +93-202502370/700176070; Email: [email protected] Mr. Anar Gul Sahadat, Director of Enterprises and Reforms Corporation, Ministry of Commerce and Industries (MOCI), Kart-e-Now, 8th District, Kabul, Afghanistan. Tel: +93-700200438/ 788921459 Mr. Mohammad Daoud Sultanzoy, Expert on Political and Economic Issues and TV Presenter at Tolo News TV. House # 259, Street 4, District 6, Karti Se, Kabul, Afghanistan. Tel: +93700626666; Email: [email protected] Ms. Bibi Haji Parwin Durani, Afghanistan Advisory Board of National Entrepreneurs (AABNE), Hasa Sewan Khair Khanna Parwan Hotel Mohsin Massod Co Kabul, Afganistan. Tel : +93 799329632; E-mail: [email protected] Mr. Alhaj Rahmuddin Haji Agha, CEO of Raheem Khairy Ltd and Director of Board, Afghanistan Advisory Board of National Entrepreneurs (AABNE), Darulaman Road, Kart C-3, KabulAfganistan. Tel: +93 700 36 7918 Fax: +93 781367918; E-mail: [email protected] Mr. Mirwais Yousufzai, Ministry of Commerce and Industries (MOCI), Karta-Maw-District 8, Kabul, Afghanistan. Tel: +93-785504505/700976322; Email: [email protected] Mr. Hafizullah Baha, Professional Member of WTO, Ministry of Commerce and Industries (MOCI), 1004 Darul Aman, Kabul, Afghanistan. Tel: +93-791802832/772652564; Email: [email protected] Mr. Mohammad Asghar Anwari, Professional Member of WTO, Ministry of Commerce and Industries (MOCI), 1004 Darul Aman, Kabul, Afghanistan. Tel: +93-787523218/700224812; Email: [email protected] Page 18 18 Technical Capacity Building for Afghanistan’s Accession to WTO Mr. Sultan Masoud Sultani, Trade Agencies Officer, Ministry of Commerce and Industries (MOCI), Kart-se-darul Aman Road, Kabul, Afghanistan. Tel: +93-799389510; Email: [email protected] Mr. Nisar Ahmad Masoud, Regional Trade Advisor, Ministry of Commerce and Industries (MOCI), Karte Se Darulaman Road, Kabul, Afghanistan. Tel: +93-795400178/774241250; Email: [email protected] Mr. Mohammad Azim Wardak, WTO Desk Officer, Ministry of Foreign Affairs (MOFA), 5th District, Kabul, Afghanistan. Tel: +93-2104350; Email: [email protected] Mr. Naqibullah Ahmadzai, National Expert, Ministry of Commerce and Industries (MOCI), 1004 Darul Aman, Kabul, Afghanistan. Tel: +93-776084228; Email: [email protected] Ms. Somaya Salman Ali, Office Manager, Afghan Women Business Federation (AWBF)Affiliated member of the Afghanistan Chamber of Commerce & Inudstries (ACCI). Email: [email protected] Mr. Mohammad Muhsin, Afganistan Advisory Board of National Entrenears (AABNE), Esa Sewan Khair Khanna Parwan Hotel Mohsin Massod Co Kabul, Afganistan. Tel: + 93 799329632; E-mail: [email protected] Mr. Abdul Hai Qadari, Director of New Qadari Co. Ltd. and Member of Kandahar Advisory Borad, 308 # 3rd Floor Ansari Buisness Center Kandahar, Afghanistan. Tel :+ 93 30 200 2818 Fax: +93 700837085; E-mail: [email protected] Mr. Mir Ahmad Haji Malim, Director of Pashton Gafari Col. Ltd. and Assistant, Kandahar Advisory Board, Haji. Nazar Jan Market, First Floor No: 45, Kandahar, Afghanistan. Tel: +93 700 304181; E-mail: [email protected] Mr. Sarfaraz Sahebzada, Business Development Manager, Balkh Chamber of Commerce and Industries (BCCI), Kart-e-aryana-mazar-e-sharif, Kabul, Afghanistan. Tel: 93-502045042; Email: [email protected]; [email protected] Mr. Ali Zaki, Regional and International Organization’s Desk Manager, Afganistan Chamber of Commerce and Industries (ACCI), Chaman-e-Huzuri, next to Kabul Nandari, Kabul, Afghanistan. Tel: +93-752130773; Email: [email protected]; [email protected] Mr. Ahmad Fawad Farhmand, Export Promotion Manager, Kabul Chamber of Commerce and Industries ( KCCI), Chaman-e-Huzuri, next to Kabul Nandari, Kabul, Afghanistan. Tel: +93752130773/798251241; Email: [email protected] Mr. Mojahedullah, Vice President, Kunar Chamber of Commerce and Industries ( KCCI), C4, 3rd Floor, Computer City Plaza, Haji Yaqoob Square, Kabul, Afghanistan. Tel: +93-202200995; Email: [email protected] Mr. Ajmal Shams, Association Development Officer, Nangarhar Chambers of Commerce and Industries (NCCI), Nangarhar, Jalal Abad City, Afghanistan. Page 19 19 Technical Capacity Building for Afghanistan’s Accession to WTO RESOURCE PERSONS/SPEAKERS Dr. Nagesh Kumar, Head, ESCAP South and South-West Asia Office and Chief Economist of ESCAP, C-2, Qutab Institutional Area, Post Box No. 4575, New Delhi 110 016. Tel: +91-1130973701/02; Fax: +91-11-26856274; E-mail: [email protected] Mr.Rajesh Aggarwal, Chief, Business and Trade Policy, International Trade Centre (ITC), Geneva, Palais des Nations, 1211 Geneva 10, Switzerland. Tel: +41 22 730 0306; Fax. +4122-730.0570; E-mail: [email protected] Mr. Arif Hussain, Senior Adviser on WTO Accession, International Trade Centre (ITC) and Former Director, WTO Accession Division, International Trade Centre (ITC), Geneva, Palais des Nations, 1211 Geneva 10, Switzerland. E-mail: “Arif Hussain” <[email protected]> Mr. Sumanta Chaudhuri, Joint Secretary, Department of Commerce, Ministry of Commerce and Industry, Government of India, Udyog Bhawan, New Delhi. Tel: +91-11-23063766; E-mail: [email protected] Dr. Dayaratna Silva, Deputy Head, ESCAP South and South-West Asia Office, C-2, Qutab Institutional Area, Post Box No. 4575, New Delhi 110 016. Tel: +91-11-30973703; Fax: +91-1126856274; E-mail: [email protected] Dr. Posh Raj Pandey, Executive Chairman South Asia Watch on Trade Economics and Environment (SAWTEE) P.O Box: 19366 Tukucha Marg, Baluwatar Kathmandu, Nepal. Tel: 977-1-4444438, 4424360; Fax: 977-1-4444570; Email: [email protected] Mr. Sajal Mathur, Professor, Centre for WTO Studies, Indian Institute of Foreign Trade, Room No. 722 D, IIFT Bhawan, B-21, Qutab Institutional Area, New Delhi – 110016. Telefax: +91 11 26512151; Email: [email protected] Mr. Manab Majumdar, Assistant Secretary General, Federation of Indian Chambers of Commerce of Industry (FICCI), Federation House, Tansen Marg, New Delhi 110001. Tel: +9111-23357390/23765322; E-mail: [email protected]; [email protected] ********** Page 20 20