The Italian Industry Position on the Praparation of the WTO Ministerial Conference in Hong Kong

· The Doha Declaration reflects a market situation which differs from current scenarios. The EU negotiation strategies must take the new realities of the global market into consideration. · The WTO must rapidly change from a duty & tariff based organization to one with a more complex and effective function of political and trade regulation of the world markets and trade, bearing in mind the changes to international economic balances and levels of competition between old and new competitors. · The rate of industrial growth and participation in world trade should integrate the current criteria for the classification of Developing Countries in order to reserve derogations and facilitations to countries which really need them. · The talks on agriculture must not stall the entire DDA Round, which is vital to industry and for the services and all member countries of the WTO, which must be committed towards eliminating trade-distorting subsidies and the highest levels of protection. · The NAMA talks and those on Services must be independent of the Single Undertaking and, especially, of the outcome of the talks on agriculture, should the latter not reach a favourable conclusion. In this regard, the fact to be taken into consideration is that industrial products represent 90% of global trade, compared to 10% for agricultural products, and that the quota of industrial products in exports from Developing Countries is similar to that in advanced countries. · In addition to tariff issues, the aspect of non-tariff obstacles, which threaten to thwart efforts to reduce and harmonise tariff-based structures, must also be dealt with firmly. Italian industry would be favourable to the creation of a WTO arbitration and mediation mechanism to facilitate the removal of non-tariff barriers. Standards for the certification of conformity recognised by member countries would attenuate the protective effects of technical obstacles. · The subject of supplies of raw materials, especially those which are strategic to industrial production activities, must be the subject of talks in order to reach an agreement which guarantees the continuity and security of supplies, subjecting the restrictions of exports of these materials to WTO discipline. · If the Doha Round fails, the EU will have to orientate its trade policy strategy towards more integrated agreements with strategic geo-economic areas. The “double speed” option in the implementation of WTO agreements should be considered as a last resort for maintaining multi-lateral commitments, ensuring, at least, the satisfaction of the primary commitments (market access, tariff and non-tariff barriers, intellectual property, international standards, services, trade facilitations) on the part of the main member countries. · In the context of the NAMA talks, the Swiss formula would appear to be the most suitable to ensure rapid and effective tariff harmonisation. The double coefficient solution to facilitate Developing Countries should be limited to the LDCs (Least Developed Countries), thus avoiding concessions to the most competitive emerging countries which ought to be excluded from unilateral tariff reductions without significant compensation in terms of market access. The reduction in tariff structures for industrial products and the zero-for-zero option should also be conducted at a sectoral level and, if necessary, for single categories of goods. · In the talks on trade facilitation, an agreement must be reached which ensures the harmonisation of customs procedures in order to increase their transparency and reduce times and costs for companies. The priority aspects to be considered are: the harmonisation of regulations; the simplification and acceleration of procedures; the transparency of customs regulations; non-discrimination; reduction of costs and a single gateway for information. The figure of the Authorized Trader or Authorized Economic Operator (AEO) is already contained in the proposal for the modernisation of the EU customs code, and therefore its institution should be a priority. · The liberalisation and efficiency of services are of vital importance to companies. Italian industry hopes that the DDA talks will lead to a real opening of the markets and improved international regulation of services, in advanced countries and emerging countries, with the aim of favouring circulation and creating new opportunities for companies. More streamlined and standardised regulations are required to discipline the movement of intra-corporate personnel, with the aim of avoiding bureaucratic delays and costs to companies with production plants abroad or which must ensure assembly and maintenance in outlet markets. · The protection of intellectual property rights has become a fundamental problem in international trade. It is vital that the WTO should be equipped with legally binding instruments to enforce the respect and protection of trademarks and patents. · Similarly, but with even greater implications for information and the protection of consumers, multilateral regulations governing obligatory labelling of the origin of products would appear to be hollow and permanently breached by most countries, including Europe’s main competitors (USA, China and Japan). The WTO must establish whether this obligatory requirement is a technical obstacle to trade or not and guarantee uniformity and reciprocity of treatment.

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