Bali Ministerial Package

 

About

·       The Bali Package is a trade agreement resulting from the 9^th Ministerial Conference of the World Trade Organization in Bali, Indonesia on 3 to 7 December 2013.

·       The package is part of the Doha round, which began in 2001.

·       The centrepiece of the package is a new agreement on trade facilitation aimed at reducing red tape, and facilitating customs procedures in an effort to cut down the cost of doing business.

·       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 amounts of agricultural imports exceeding specific limits.

·       Another important target is reforming customs bureaucracies and formalities to facilitate trade.

Area of Bali package

·       The Bali Package covering four areas as follow -

Ø  The Trade Facilitation Agreement (TFA), active since 22 February 2017 when two-thirds of the 164 WTO members formally accept the Agreement. The TFA aims to reduce red-tape and streamline customs.

Ø  Food security: 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.

Ø  Cotton: Subsidies for trading cotton was implemented by the WTO.

Ø  Development and Least Development Countries (LDC) issues: Preferential rules of origin for Least-Developed Countries (simplified rules for identifying origin and qualifying for preferential treatment with importing countries.), Operationalization of the Waiver Concerning Preferential Treatment to Services and Service Suppliers of Least-Developed Countries (preferential treatment to be given to LDCs for 15 years from date of agreement adoption.), Duty-Free Quota-Free (DFQF) Market Access for Least-Developed Countries, Monitoring Mechanism on Special and Differential Treatment.

 

Doha Development Round   ·       The Doha Development Round or Doha Development Agenda (DDA) is the trade-negotiation round of the World Trade Organization (WTO). ·       Its objective was to lower trade barriers around the world, and thus facilitate increased global trade. ·       The Doha Agenda began with a ministerial-level meeting in Doha, Qatar in 2001. ·       The major factors discussed include trade facilitation, services, rules of origin and dispute settlement. Special and differential treatment for the developing countries were also discussed as a major concern.