IGNOU : M.COM : IBO 1 : UNIT 10 : Q - 4. What is plurilateral trade agreements ? Explain major plurilateral trade agreements.

 

Ans. PLURILATERAL TRADE AGREEMENTS

The agreements on goods, services and IPRs are grouped together under the heading 'Multilateral Agreements'. The significance of the Multilateral Agreements is that accession to the WTO is dependent on their acceptance in full by potential members. However, a number of other agreements whose acceptance is not a prerequisite to WTO membership, were also concluded during the Uruguay Round. These 'Plurilateral Agreements' were formally annexed to the Final Act of the Uruguay Round and will be regulated and supervised by the WTO. These agreements will, however, only be applicable (and thus enforceable) between their signatories.

There are four Plurilateral Agreements concerning (i) Public Procurement; (ii) Trade in Civil Aircraft; (iii) International Dairy Products; and (iv) International Bovine and Meat Products.

Public Procurement

The new agreement on public procurement will supersede the current limited 'Code' which has been in operation since 1981. The new agreement expands the Code in the following manner:

i) The key feature of the new agreement on public procurement is that foreign suppliers and foreign goods and services must be given no less favourable treatment in government procurement than national suppliers of goods and services. To achieve this, tendering procedures have been revised and strengthened, as have rules relating to the qualification of suppliers, the contents of tender documentation provided to those potential suppliers and the time limits for tendering and delivery. In addition, information explaining how and why a contract has been awarded is now mandatory.

ii) whereas the earlier Code only covered a limited number of central government departments, the new agreement includes additional government departments at a national and sub-national level, regional states, cantons and, in some cases, large metropolitan authorities;

iii) procurement for construction projects and services, as well as products, is now covered;

iv) additional countries have become signatories to the new agreement, taking the total to eight, in addition to the EU Member States;

v) a Committee on Government Procurement under the supervision of the WTO General Council has been established; and

vi) private patties will be able, through the national courts, to challenge violations of the Code by parties to the agreement.

Trade in Civil Aircraft

The agreement which has 21 signatories was originally concluded during the Tokyo Round and came into force on 1 February 1980. Its major points include:

i) the elimination of import duties on all aircraft (other than military aircraft) as well as on civil aircraft engines and their parts and components, all civil aircraft components and sub assemblies as well as flight stimulators and their parts and components;

ii) the imposition of strict regulations to cover government directed procurement of civil aircraft (including inducements to purchase) as well as government financial support for the civil aircraft sector; and

iii) the establishment of a Committee on Civil Aircraft, under the supervision of the WTO General Council.

International Dairy Products

The International Dairy Agreement became effective on 1st January 1980. The agreement, which covers all dairy products, aims to introduce greater stability is the market by seeking to limit surpluses, shortages and large fluctuations in price. In addition, the agreement:

i) seeks to improve international cooperation in the dairy products sector:

ii) commits itself to assisting in the economic and social advancement of developing countries; and

iii) establishes an International Dairy Council, under the guidance of the WTO ,' General Council, with responsibility for setting minimum export prices for trade in milk powders, milk fat (including butter), and certain cheeses.

International Bovine and Meat Products

Along with Dairy and Civil Aircraft Agreements, the International Bovine Meat Agreement, with 27 signatories including the EU, was originally negotiated during the Tokyo Round. The agreement which covers beef, real and live cattle, seeks an expanded but regulated market in meat and livestock. In particular, the agreement:

i) aims to improve international cooperation in the meat products sector: and

ii) establishes an International Meat Council under the guidance of the WTO General Council, to evaluate the world supply and demand situation for meat and to generally act as a forum for discussion on all matters relating to the bovine meat products, sector of world trade.