5/26/25

Chapter 12
Vietnam’s integration in international trade

Assoc. Prof. Dr. Vu Thanh Huong

Faculty of International Business and Economics
UEB-VNU

WHERE ARE WE? Here we are!

PART 1 PART 2 PART 3 PART 4

Introduction & International International International

overview trade theories trade policies trade integration
Tran Huong Linh, FIBE - UEB

● Introduction ● The Ricardian Model ● Tariff ● VN Integration in WTO

● Overview of ● The Heckscher-Ohlin ● Non-tariff barriers ● VN Integration in ASEAN
International Trade Model ● Political economy of ● VN Integration into FTAs
● The Standard Trade Model Trade policy
● Modern Trade Theories ● Trade policy in
developing countries
● Controversies

1
 5/26/25

Main content

1. Vietnam's integration in the WTO

2. Vietnam’s trade integration in ASEAN

3. Vietnam's trade integration in Free Trade Agreements

1. Vietnam's integration in the WTO

1.1. WTO overview: history and principles

1.2. WTO agreements and dispute settlement
1.3. Vietnam’s integration in the WTO

2
 5/26/25

1.1. WTO overview: history and

principles

Nigeria's Ngozi Okonjo-Iweala.

She is the first woman, and the first African,
to lead the institution. But there was an
unexpected glitch in the process.

166 members

Roberto Azevêdo (2013 –

2020 as GD of the WTO)

3
 5/26/25

Type: Purpose: Members:

International Regulate 166 members and 23 observers
trade international trade (December 2024)
organization Founding members: 76
China: joined on 11/12/2001, 143th
member

Establishment date: 1/1/1995

Official English, French,

language: Spanish

Over 600
Headquarters: Region served: Budget: Secretariat regular
Centre William 196 million Swiss staffs
Worldwide
Rappard, Geneva, francs
Switzerland
Financial University under the Government of the Russian Federation

4
 5/26/25

The history of the WTO

World War II Bretton Wood conference in 1944

The history of the WTO

International
Trade
Organization

General Agreement on Trade and Tariff

Financial University under the Government of the Russian Federation

10

5
 5/26/25

History
- After the WW2, an initiative to establish International Trade
Organization (ITO) in 1946.
- 3/1948: ITO Charter was agreed at the UN conference on
Trade and Employment in Havana to create ITO
- ITO never started because the US and other signatories did
not ratify the establishment treaty => ITO was not formed.
- The WTO’s predecessors, GATT (General Agreement on
Tariffs and Trade) was established by a a multilateral treaty
of 23 nations in 10/1947, effective from 01/01/1948.
- Despite GATT is an agreement: Remained in force and the
single multilateral instrument governing international trade
until the WTO created.

11

History (cont.)
Year Location/Name Negotiated areas Countries

1947 Geneva Tariff 23

1949 Annecy Tariff 13
1951 Torquay Tariff 38
1956 Geneva Tariff 26
1960-1961 Geneva/ Dillon Tariff 26
Round
1964-1967 Geneva/ Kennedy Tariff and anti-dumping 62
Round measures

1973-1979 Geneva/ Tokyo Tariff, non-tariff barriers” 102

Round

1986-1994 Geneva/ Uruguay Tariff, non-tariff barriers, 123

Round services, intellectual
property right, trade
dispute, garments and
textiles, agriculture,
WTO establishment,…

12

6
 5/26/25

History (cont.)
• BUT
• At the end of 1970s and early 1980s, it became evident
that GATT was not built or structured to address
many of the new global trading challenges that were
arising.
– Coverage of GATT was limited to tariff reduction while many
new non-tariff barriers were emerged.
– GATT mainly regulated trade in goods in the context of
development of trade in services, investment and protection
of intellectual property rights relating to trade.
– Gap in GATT rules (many exceptions in agriculture, textiles
and garments)
– Lack of Dispute settlement system

13

History

14

7
 5/26/25

WTO map
166 members represent 98% of world trade

Members, dually represented Observers

by the EU
Members Non-participant states

15

Who the WTO is - Purposes of the WTO

• Progressively reduce obstacles to trade => trade opening
and liberalization
– Help countries and producers of goods deal fairly and smoothly
with conducting their business across international borders.
– Help trade flows smoothly for all member nations
• The WTO is not just about opening market, and in some
circumstances its rule support maintaining trade barriers
– e.g: to protect consumers and the environment

16

8
 5/26/25

...
...
...
...
...
Create a forum for governments to negotiate
trade agreements, and a place where member
governments to sort out the trade problems they
face with each other/CONFERENCES (how many
MC so far?
.Negotiate, Promote implementation and
monitoring of the WTO’s
What the WTO does agreements/REGULATIONS (Which agreements?)
(Functions)
Be a place for governments to settle trade
disputes/RECONCILE

Review trade policies regularly ( 5 years)

Vietnam trade policy review

17

...
...
...
...
...
Provide technical assistance, support
development and build trade capacity for
developing countries/ASSISTANCE
- Human resources training, consultancy
- The Aid for Trade initiatives to help
developing countries develop the skills and
infrastructure needed to expand their trade…
What the WTO does
.
(Functions)
Outreach
- Maintain regular dialogue
- Aim of enhancing cooperation and increasing
awareness of WTO activities

18

9
 • The WTO’s top-level decision-making At the next level, the Goods Council, Services
body is the Ministerial Conference, Council and Intellectual Property (TRIPS)
which usually meets every two years. Council report to the General Council.

Numerous specialized committees, working

groups and working parties deal with the
5/26/25
B
elow this is the General Council individual agreements and other areas such as
(normally ambassadors and heads of the environment, development, membership
delegation in Geneva, and sometimes applications and regional trade agreements.
officials sent from members’ capitals), which
meets several times a year in the Geneva All WTO members may participate in all
headquarters. The General Council also meets councils and committees, with the exceptions
as the Trade Policy Review Body and the of the Appellate Body, dispute settlement
Dispute Settlement Body. panels and plurilateral committees.

How the WTO Ministerial Conference

is structured?
General Council General Council
meeting as Trade Policy meeting as Dispute
Review Body Settlement Body

General Council

Appellate Body
Committees on Dispute Settlement Panels
Trade and Environment
Trade and Development
Sub-Committee on
Least-Developed Countries Council for Trade Council for Trade-Related Council for Trade Trade Negotiations
Regional Trade Agreements in Goods Aspects of Intellectual in Services Committee
Balance of Payments Property Rights
Restrictions
Budget, Finance and Committees on Committees on Doha Development
Administration Agenda Negotiations:
Agriculture Trade in Financial
Working parties on Anti-Dumping Practices Services Trade Negotiations
Accession Customs Valuation Specific Committee and
Import Licensing Commitments its bodies
Working groups on
Market Access Working parties on Special Sessions of
Trade, debt and finance Rules of Origin
Trade and technology transfer Domestic Regulation Services Council/
Safeguards
GATS Rules TRIPS Council/
Inactive: Sanitary and Phytosanitary Measures
Dispute Settlement
Relationship between Subsidies and Countervailing Measures
Body/ Agriculture
Trade and Investment Technical Barriers to Trade
Committee/Trade
Interaction between Trade Trade Facilitation
and Development
and Competition Trade-Related Investment Measures
Committee/ Trade
Participants on the Expansion of
Plurilaterals and Environment
Trade in Information Technology
Committee
Products Trade in Civil Aircraft
Plurilateral Committee Negotiation groups on
Working party on
Information Technology Government Procurement Market Access
State-Trading
Agreement Committee Committee Rules
Enterprises

19 Key
Reporting to General Council (or a subsidiary)
Reporting to Dispute Settlement Body
Plurilateral committees inform the General Council or Goods Council of their activities, although these agreements are not signed by all WTO members
Trade Negotiations Committee reports to General Council

200 A N N UA L R E P O R T 2 0 2 3
WTO Budget [Link]/org2

• Derived its income from annual contributions from

its 164 members and miscellaneous income.
– The contribution is calculated based on a formula that
takes into account each member’s share of international
trade.
– Miscellaneous income: contributions of observed
countries, sale of publication and rental of meeting
rooms
• Total WTO budget for 2024: CHF 197,203,900
– Vietnam: 1.07%
– The US: 11.23%
– China: 10.76%
– Germany: 7.20%
– Japan: 3.8%

20

10
 5/26/25

WORLD TRADE REPORT 2024

Trade and inclusiveness

How to make trade work for all

WORLD TRADE Re-globalization for

a secure, inclusive
REPORT 2023 and sustainable future

21

WTO Activities/Roles

• 27 years of establishment: not so long

– Conduct trade negotiation
• Reduce tariffs and non-tariff barriers
• Ministerial Conferences: at least every two years
– Implement and monitor WTO rules and regulations
– Settle disputes
– Provide technical assistance and build up trade capacity
for developing countries
– Carry out outreach activities

22

11
 5/26/25

Milestones of the WTO during the last 30 years

1994 1995 1996 1997 1998

• Marrakesh • The WTO • The first • Reach a • Second

Agreement was born Ministerial multilateral Ministerial
establishing • Renato Conference agreement Conference
the WTO is Ruggiero (MC) in to open the (MC) in
signed (Italy): 1st Singapore financial Geneva
DG • Information services
Technology sectors
Agreement
concluded

23

Milestones of the WTO during the last 30 years

1999 2000 2001

• Third Ministerial • Negotiations began • Fourth Ministerial

Conference (MC) on services and Conference (MC) in
in Seattle, US agriculture Doha, Qatar
• Mike Moore (New • Doha Development
Zealand): 2nd DG Agenda was launched
• China: 143rd member

24

12
 5/26/25

Milestones of the WTO during the last 30 years

2002 2003 2005 2006 2007

• Supachai • Fifth MC, • Pascal Lamy • First WTO • Vietnam:

Panitchpakdi Cancun, (France): 4th Public 150th
(Thailand): Mexico DG Forum, member
3rd DG Geneva • First Global
Review of
Aid for trade
takes place
in Geneva

25

Milestones of the WTO during the last 30 years

2009 2010 2011 2012

• Pascal Lamy: • “Chairs • Eighth • Russia: 156th

second term of Programme” Ministerial member
four year launched to Conference,
• First WTO support Geneva
Open day, developing
Geneva countries
• Seventh universities
Ministerial
Conference,
Geneva

26

13
 5/26/25

Milestones of the WTO during the last 30 years

2013 2014

• Roberto Azevedo (Brazil): 5th

• Revised WTO Agreement on
DG
Government Procurement comes
• Ninth MC, Bali, Indonesia into force
• Bali package adopted • Approval of Trade Facilitation
Agreement (TFA) – the 1st
multilateral trade agreement
concluded since the WTO was
established

27

Milestones of the WTO during the last 30 years

2015: 2016:

• Seychelles and Kazakhstan: 161st and • Liberia and Afghanistan:

162nd member 163rd and 164th member
• Tenth Ministerial Conference, Nairobi, • Amendment of WTO’s
Kenya intellectual property
• Nairobi Package adopted agreement
• Expansion of Information Technology
Agreement (ITA) concluded

28

14
 5/26/25

2015 Milestones of the WTO during the last 30 years

December
1
o support Tenth Ministerial Conference takes
place in Nairobi, Kenya. “Nairobi
Package” adopted, including abolition
2017:
of agricultural export subsidies. 2018: 2019
Expansion of Information Technology
Agreement concluded.
• TFA comes into force • WTO and UN Environment• General council
2016 host leadership dialogue appoints
• Roberto Azevedo: 2nd
July
term on expanding trade’s facilitator to help
Afghanistan and Liberia become
• 11ththeMC innewest
WTO’s Buenos Aires, contribution to
members. WTO members
Argentina sustainability resolve
differences on
akes functioning of
Appellate Body

29
2017
January
Amendment to the TRIPS Agreement
enters into force, easing access
Milestones of the WTO during the last 30 years
to medicines.
February
Trade Facilitation Agreement enters
into force.
2020: 2021:
September
Roberto Azevêdo begins second term
• WTO makes
as WTOits 25th anniversary
Director-General. • February
December • Dr Ngozi Okonjo-Iweala becomes the first
Eleventh Ministerial Conference takes African and first woman to be chosen as
place in Buenos Aires, Argentina. Director-General.
• December
• Negotiations on services domestic
regulation conclude successfully.
• The 12th Ministerial Conference is
postponed until June 2022.
l.

2018
ng 30 July
t. Members accept Kazakhstan’s
invitation to host WTO’s 12th Ministerial
Conference in June 2020.

overnment
15
 5/26/25

Milestones of the WTO during the last 30 years

2022 2023 2024

• June: 12 MC results in an • Switzerland: 1st • 13 MC concludes

unprecedented package of country to with series of
decisions, including a formally accept multilateral
landmark Fisheries Agreement on decisions,
Subsidies Agreement Fissheries commitment to
Subsides in continue talks.
January
• First-ever “Trade
Day”

31

No Location Time
1 Singapore WTO activities (cont.)
12/1996
2 Gevena 5/1998
3 •Seattle
26 years of establishment: not 11,12/1999
so long
4 Doha
– (Quatar)
Ministerial 11/2001
Conferences: at least every two years
5 Cancun (Mehico) 9/2003
– Conduct trade negotiation
6 Hongkong 12/2005
7 Geneva 12/2009
8 Geneva 12/2011
9 Bali 12/2013
10 Nairobi (Kenya) 12/2015
11 Buenos Aires (Argentina) 12/2017

12 Geneva, Switzerland June 12 2022

13 Abu Dhabi, UAE March 2 2024

32

16
 5/26/25

MC12: WTO members secure unprecedented

package of trade outcomes at MC12

WTO members approved decisions at MC 12

33

MC12: WTO members secure unprecedented

package of trade outcomes at MC12
• Round-the-clock negotiations among delegations produced the “Geneva
Package”, which contains a series of unprecedented decisions
– Fisheries Subsidies
– WTO response to emergencies, including a waiver of certain requirements
concerning compulsory licensing for COVID-19 vaccines
– food safety and agriculture, and
– WTO reform
• “Trade is part of the solution to the crises of our time” and the WTO “can and
must do more to help the world respond to the pandemic, tackle environmental
challenges and foster greater socio-economic inclusion.”

[Link]

34

17
 5/26/25

Topic for current discussion

• Thương mại điện tử (E-commerce)
• Dự trữ sản phẩm nông nghiệp của quốc gia (Public Food
Stockholding)
• Trợ cấp cho ngành Thuỷ sản (Fisheries subsidies – a
progress in MC12)
• Nền Kinh tế xanh (Blue economy)
• Thuận lợi hoá đầu tư (Investment Facilitation)
• Lợi ích của các nước kém phát triển (LDC interests)
• Thuận lợi hoá thương mại dịch vụ (Facilitation in Trade in
Services)
• Các vấn đề sở hữu trí tuệ liên quan đến thương mại (TRIPS -
Trade related Intellectual Property Rights)

35

MC 13
• No Consensus Reached at WTO on Agriculture and Fisheries
Issues...
• No Breakthrough in Agriculture and Fisheries Negotiations
– C13 in Abu Dhabi concluded with the adoption of a Ministerial
Declaration outlining a reform-oriented agenda and a forward-
looking vision for the organization.
– After five days of discussions, reached a consensus on adopting the
Abu Dhabi Ministerial Declaration. The declaration reaffirms their
commitment to preserving and strengthening the multilateral trading
system, with the WTO at its core, to address current trade challenges.

36

18
 What we stand for
What we stand for 5/26/25

Principles of the trading system(see WTO annual

report 2024 p 32-33)
• he WTO agreements are lengthy and complex because they are legal texts covering
a wide range of activities. But certain simple, fundamental principles run throughout
all of these documents and form the foundations of the multilateral trading system

In In
brief The fundamental goal
Improving
Improving people’s lives
people’s lives

of the WTO is to improve the

The fundamental goal of the
brief Opening trade

The WTO seeks to ensure

that trade flows as smoothly,
Improving
people’s lives

The fundamental goal of the

predictably and freely as possible.
Opening trade
Opening trade
The WTO seeks to ensure
that trade flows as smoothly,
predictably and freely as possible.
WTO is to improve the welfare
Lowering trade barriers isofan The WTO seeks to ensure that trade flows as
WTO is to improve the welfare
Lowering trade barriers is an
welfare of people around the Marrakesh
world. The WTO’s
of people around the world.
obvious way to encourageThe
people around the world.
trade; obvious way to encourage trade;
The WTO’s founding
these barriers include customs smoothly, predictably and freely as possible. Lowering
WTO’s founding Marrakesh
these barriers include customs
founding Marrakesh Agreement
be conducted withrecognizes
Agreement recognizes that trade
that trade Agreement recognizes that trade
duties – or tariffs – and measures duties – or tariffs – and measures
trade barriers is an obvious way to encourage trade;
should a view should be conducted with a view
such as import [Link] raising standards of living, such as import bans.
should be conducted with a view to raising standards
to raising standards of living,
ensuring full employment and
these barriers
ensuring full employment and
include customs duties – or tariffs – and
What we stand for

of living, ensuring full employment

for the optimal use of and increasing
increasing real income while increasing real income while
allowing
measuresresources. such as import bans.
allowing for the optimal use of

real income while allowing for the optimal use of the

the world’s resources. the world’s

world’s resources.

37
032 A N N UA L R E P O R T 032 A N N UA L R E P O R T [Link]/whatiswto [Link]/whatiswto

Principles of the trading system(see WTO annual

report 2024 p 32-33)
• he WTO agreements are lengthy and complex because they are legal texts covering
Harvesting coffee cherries

a wide range of activities. But certain simple, fundamental principles run throughout
at Banaran Coffee Village
in Central Java, Indonesia.

all of these documents and form the foundations of the multilateral trading system

In
The WTO seeks towillbuild
Inclusive
Inclusivetrade
trade
The WTO seeks to build a more
inclusive trading system that
allow moreawomen
more and inclusive
small
brief
trading
its trading
Non-discrimination

Under WTO rules, a WTO member

should not discriminate between
partners, and should
Protection
The fundamental goal ofand
the
people’s
Protection of
Improving
environment
lives

thepreservation of
Opening trade
Non-discrimination
The WTO seeks to ensure
that trade flows as smoothly,
predictably and freely as possible.
the environment
WTO is to improve the welfare are fundamental
businesses to participate in
system that will allow
trade andmore
to reap thewomen
economic
not discriminate between its of people around
and ownsmall Under
goals
and foreign products,The WTO’s founding
theofworld.
agreements
WTO
the WTO. The rules,
permit members
Marrakesh
WTO
obvious
to
a WTO
way member
Lowering trade barriers is an
to encourage trade; should not
benefits of global trading.
businesses to participate in trade
The WTO also recognizes the and to reap the
takediscriminate
services or citizens. Agreement recognizes measures
public, animal
should be conducted with aand
between
to protect not
that trade
view
these
duties
plant health
its
only barriers include trading
customs
but– or tariffs – and measures
partners (MFN),
economic benefits
importance of addressing the
ofdivide
digital globalso thattrading.
economies The WTO also and
also the of
to raising standards
ensuring fullthese
should
environment.
living,
measures
employment and
not
must be applied
discriminate
However, such as import bans.
between its own and
across the world can take
recognizes the importance of addressing the digital
advantage of the opportunities
increasing realforeign
in the same
income way
while
and foreign
allowing for the optimal use of
products,
to both local
businesses.
services or citizens (NT).
provided by the digital economy.
divide so that economies across the world can take the world’s resources.

advantage of the opportunities provided by the digital

Predictability
economy. and transparency

Foreign companies, investors and

governments should be confident
Partnerships
Fair competition that trade barriers will not be

38
032 A N N UA L Rraised
E P O R Tarbitrarily. With stability [Link]/whatiswto
and predictability provided The WTO maintains regular
“Unfair” practices, such as export by WTO rules, investment is dialogue with civil society,
subsidies and dumping products encouraged, jobs are created and labour unions, universities, the
at below normal value to gain consumers can fully enjoy the business community and other
market share, are discouraged. benefits of competition – such as intergovernmental organizations
WTO rules try to establish increased choice and lower prices. to enhance cooperation and
what is fair or unfair and how
build partnerships. The WTO’s
governments can respond, in
Trade Dialogues initiative and the
particular by charging additional
annual Public Forum provide a
import duties calculated to
platform for civil society, business

19
compensate for damage caused
groups and others to discuss the
by unfair trade.
latest developments in world trade
and to propose ways of enhancing
the multilateral trading system.

Support for less

developed economies

Over three-quarters of WTO

members are developing
 5/26/25
Harvesting coffee cherries
at Banaran Coffee Village
in Central Java, Indonesia.

Principles of the trading system(see WTO annual Inclusive trade Non-discrimination Protection of
the environmen

report 2024 p 32-33) The WTO seeks to build a more

inclusive trading system that
will allow more women and small
businesses to participate in
Under WTO rules, a WTO member
should not discriminate between
its trading partners, and should
not discriminate between its
Protection and preservatio
the environment are fundam
goals of the WTO. The W
trade and to reap the economic own and foreign products,

• he WTO agreements are lengthy and complex because they are legal texts covering
agreements permit membe
benefits of global trading. services or citizens. take measures to protect no
Harvesting coffee cherries The WTO also recognizes the public, animal and plant hea
importance of addressing the
a wide range of activities. But certain simple, fundamental principles run throughout
t Banaran Coffee Village also the environment. How
n Central Java, Indonesia. digital divide so that economies these measures must be ap
across the world can take in the same way to both lo

all of these documents and form the foundations of the multilateral trading system advantage of the opportunities
provided by the digital economy.
and foreign businesses

Predictability
and transparency

Foreign companies, investors and

governments should be confident
Inclusive trade Non-discrimination Protection of Partnerships
Protection of the environment Fair competition that trade barriers will not be
the environment raised arbitrarily. With stability

The WTO seeks to build a more Under WTO rules, a WTO member Fair competition
“Unfair” practices, such as export
and predictability provided
by WTO rules, investment is
The WTO maintains regu
dialogue with civil socie
inclusive trading system that should not discriminate between Protection and preservation of subsidies and dumping products encouraged, jobs are created and
will allow more women and small Protection and preservation
the environment areof
its trading partners, and should the environment are
fundamental at below normal value to gain consumers can fully enjoy the
labour unions, universities
business community and o
“Unfair” practices, such as export subsidies and
businesses to participate in not discriminate between its
goals of the WTO. The WTO market share, are discouraged. benefits of competition – such as
trade and to reap the economic
benefits of global trading.
fundamental goalsagreements
of the permit
own and foreign products,
services or citizens.
WTO. Theto WTO agreements
members WTO rules try to establish increased choice and lower prices.
intergovernmental organiza
to enhance cooperation a
The WTO also recognizes the
permit members to
take measures to protect not only
take
public, animalmeasures to protect not only
and plant health but dumping products at below normal value to gain
what is fair or unfair and how
governments can respond, in
build partnerships. The W
Trade Dialogues initiative an
importance of addressing the
market share, are discouraged. WTO rules try to
also the environment. However, particular by charging additional
digital divide so that economies public, animal andthese
plant health
measures must be but
appliedalso the import duties calculated to
annual Public Forum provi
platform for civil society, bu
establish what is fair or unfair and how
across the world can take in the same way to both local compensate for damage caused
environment. However, these measures must be
groups and others to discus
advantage of the opportunities and foreign businesses. by unfair trade.
latest developments in world
provided by the digital economy.
applied in the same way to both local and foreign governments can respond, in particular by charging and to propose ways of enha
the multilateral trading sys

businesses.
Predictability
additional import duties calculated to compensate
Support for less
and transparency for damage caused by unfair trade. developed economies
Over three-quarters of WTO
Foreign companies, investors and
members are developing
governments should be confident
Partnerships economies or in transition to
Fair competition that trade barriers will not be
market economies. The WTO
raised arbitrarily. With stability

39
agreements give them transition
and predictability provided The WTO maintains regular periods to adjust to WTO
“Unfair” practices, such as export by WTO rules, investment is dialogue with civil society, provisions and, in the case of the
subsidies and dumping products encouraged, jobs are created and labour unions, universities, the Trade Facilitation Agreement,
at below normal value to gain consumers can fully enjoy the business community and other provide for practical support for
market share, are discouraged. benefits of competition – such as intergovernmental
Harvesting organizations
coffee cherries implementation of the Agreement.
WTO rules try to establish increased choice and lower prices. to enhance cooperation
at Banaran and
Coffee Village
what is fair or unfair and how
build partnerships. The
in Central Java, WTO’s
Indonesia.
governments can respond, in
Trade Dialogues initiative and the
particular by charging additional
annual Public Forum provide a
import duties calculated to [Link]/whatiswto A N N UA L R E P O
platform for civil society, business
compensate for damage caused
groups and others to discuss the

Principles of the trading system(see WTO annual

by unfair trade.
latest developments in world trade
and to propose ways of enhancing
the multilateral trading system.

Support for less

developed economies
report 2024 p 32-33)
Over three-quarters of WTO Inclusive trade Non-discrimination Protection of
members are developing
the environment
• he WTO agreements are lengthy and complex because they are legal texts covering
economies or in transition to
market economies. The WTO
agreements give them transition
The WTO seeks to build a more
inclusive trading system that
Under WTO rules, a WTO member
should not discriminate between Protection and preservation of

a wide range of activities. But certain simple, fundamental principles run throughout
periods to adjust to WTO
provisions and, in the case of the
will allow more women and small
businesses to participate in
trade and to reap the economic
its trading partners, and should
not discriminate between its
own and foreign products,
the environment are fundamental
goals of the WTO. The WTO

all of these documents and form the foundations of the multilateral trading system
Trade Facilitation Agreement, agreements permit members to
provide for practical support for benefits of global trading. services or citizens. take measures to protect not only
implementation of the Agreement. The WTO also recognizes the public, animal and plant health but
importance of addressing the also the environment. However,
digital divide so that economies these measures must be applied
across the world can take in the same way to both local
advantage of the opportunities and foreign businesses.
[Link]/whatiswto A N N UA L R E P O R T 033
provided by the digital economy.

Predictability
Predictability and transparency
and transparency

Foreign companies, investors and

Foreign companies,
Fair competition investors and thatgovernments
trade barriers will not beshould bePartnerships
governments should be confident
confident that
trade barriers will not be raised arbitrarily. and predictability With
provided stability and predictability
raised arbitrarily. With stability
The WTO maintains regular
“Unfair” practices, such as export by WTO rules, investment is
provided subsidies
by WTO rules,
and dumping investment
products is encouraged,
encouraged, jobs are created and jobs areunions,
labour created and
dialogue with civil society,
universities, the
at below normal value to gain
consumers can
market fully
share, enjoy the benefits
are discouraged. of competition
consumers can fully enjoy the
benefits of competition – such as – such as increased
business community and other
intergovernmental organizations
WTO rules try to establish
choice andwhatlower
is fair or prices.
increased choice and lower prices. to enhance cooperation and
unfair and how
build partnerships. The WTO’s
governments can respond, in
Trade Policy Review
particular by charging Mechanism
additional
Trade Dialogues initiative and the
annual Public Forum provide a
import duties calculated to
platform for civil society, business
compensate for damage caused
groups and others to discuss the
by unfair trade.
latest developments in world trade
and to propose ways of enhancing
the multilateral trading system.

Support for less

developed economies
40 Over three-quarters of WTO
members are developing
economies or in transition to
market economies. The WTO
agreements give them transition
periods to adjust to WTO
provisions and, in the case of the
Trade Facilitation Agreement,
provide for practical support for

20
implementation of the Agreement.

[Link]/whatiswto A N N UA L R E P O R T 033
 Inclusive trade Non-discrimination Protection of
the environment
5/26/25
Harvesting coffee cherries The WTO seeks to build a more Under WTO rules, a WTO member
at Banaran Coffee Village inclusive trading system that should not discriminate between Protection and preservation of
in Central Java, Indonesia. will allow more women and small its trading partners, and should the environment are fundamental
businesses to participate in not discriminate between its goals of the WTO. The WTO
trade and to reap the economic own and foreign products, agreements permit members to
benefits of global trading. services or citizens. take measures to protect not only
The WTO also recognizes the public, animal and plant health but
importance of addressing the also the environment. However,
digital divide so that economies these measures must be applied
across the world can take in the same way to both local
advantage of the opportunities and foreign businesses.

Principles of the trading system(see WTO annual

provided by the digital economy.

Inclusive trade Non-discrimination Protection of Predictability

report 2024 p 32-33)

the environment and transparency
The WTO seeks to build a more Under WTO rules, a WTO member
inclusive trading system that should not discriminate between Protection and preservation of Foreign companies, investors and
will allow more women and small its trading partners, and should the environment are fundamental governments should be confident
businesses to participate in not discriminate between its Partnerships
goals of the WTO. The WTO
Fair competition that trade barriers will not be
trade and to reap the economic
benefits of global trading.
The WTO also recognizes the
• he WTO agreements are lengthy and complex because they are legal texts covering
own and foreign products,
services or citizens.
agreements permit members to
take measures to protect not only
raised arbitrarily. With stability
and predictability provided The WTO maintains regular
public, animal and plant health but “Unfair” practices, such as export
a wide range of activities. But certain simple, fundamental principles run throughout
by WTO rules, investment is dialogue with civil society,
importance of addressing the also the environment. However, subsidies and dumping products encouraged, jobs are created and labour unions, universities, the
digital divide so that economies these measures must be applied at below normal value to gain consumers can fully enjoy the business community and other
across the world can take
all of these documents and form the foundations of the multilateral trading system
in the same way to both local market share, are discouraged. benefits of competition – such as
advantage of the opportunities intergovernmental organizations
and foreign businesses. WTO rules try to establish increased choice and lower prices.
provided by the digital economy. to enhance cooperation and
what is fair or unfair and how
build partnerships. The WTO’s
governments can respond, in
Trade Dialogues initiative and the
particular by charging additional
annual Public Forum provide a
Predictability import duties calculated to
platform for civil society, business
compensate for damage caused
and transparency by unfair trade.
groups and others to discuss the
latest developments in world trade
and to propose ways of enhancing
Foreign companies, investors and the multilateral trading system.
governments should be confident
Partnerships
Partnerships Support for less
Fair competition that trade barriers will not be
raised arbitrarily. With stability developed
Support for economies economies
less developed
“Unfair” practices, such as export
The WTO maintains The
and predictability provided
by WTO rules, investment is
regular dialogue
WTO maintains regular with civil society,
dialogue with civil society,
subsidies and dumping products
at below normal value to gain
labour unions, universities,
encouraged, jobs are created and the business
labour unions, universities, the community Over three-quarters of WTO
members are developing
Over three-quarters of WTO members are
consumers can fully enjoy the
business community and other
market share, are discouraged.
WTO rules try to establish
and other intergovernmental
benefits of competition – such as organizations to enhance
intergovernmental organizations
increased choice and lower prices.
economies or in transition
market economies. The WTO
to

what is fair or unfair and how

cooperation and build
to enhance cooperation and
partnerships.
build partnerships. The WTO’s The WTO’s Trade developing economies or them
agreements give in transition
transition to market
governments can respond, in periods to adjust to WTO
particular by charging additional
import duties calculated to
Trade Dialogues initiative and the
Dialogues initiativeannual
andPublic
theForumannualprovide aPublic Forum economies. The provisions
WTO agreements
and, in the case of the give them
Trade Facilitation Agreement,
compensate for damage caused
platform for civil society, business
provide a platformlatestfordevelopments
groups civil society,
and others business
to discuss the groups transition periods toforadjust
provide to WTO
practical support for provisions and,
by unfair trade. implementation of the Agreement.

and others to discussand to the

proposelatest
in world trade
developments
ways of enhancing in world in the case of the Trade Facilitation Agreement,
trade for
and
the multilateral trading system.
to propose ways of enhancing the provide for practical support for implementation of
Support less 033
multilateral
developed economies trading system. the Agreement.
[Link]/whatiswto A N N UA L R E P O R T

Over three-quarters of WTO

members are developing
economies or in transition to
market economies. The WTO
41 agreements give them transition
periods to adjust to WTO
provisions and, in the case of the
Trade Facilitation Agreement,
provide for practical support for
implementation of the Agreement.

[Link]/whatiswto A N N UA L R E P O R T 033

Principles of the trading system (cont.)

• Principle 1: Non - discrimination
– A country should not discriminate between its trading partners, implemented
through Most Favored Nation Treatment (MFN)
– A country should not discriminate between its own and foreign products,
services or nationals, implemented through National Treatment (NT)
FTA with the EU: 0%

42

21
 5/26/25

Principles of the trading system (cont.)

• MFN (Most Favored Nation): Treating partner countries equally
– Exceptions: FTAs
• Free Trade Agreements
• Preferences for developing countries (GSP)

Main reasons

- Doha Round stagnation

- Second best
- Support the deeper integration
- Balance with other types of integration (regional
integration e.g)

43

Principles of the trading system (cont.)

Non-discrimination: National Treatment (NT)

National • Treat domestic and foreign

products, services and nationals
Treatment equally

• Trade in goods
• Trade in services
Scope • TRIPs
• Investment

44

22
 5/26/25

Principles of the trading system (cont.)

• Principle 2: Opening trade (More open)
– Lowering trade barriers gradually through trade
negotiations

Roadmap for
progressive
liberalization

Expanding
the scope of
negotiations

8 rounds, the on-going

9th round (Doha)

45

Principles of the trading system (cont.)

• Principle 3: Predictability and Transparency
– Foreign companies, investors and governments should be
confident that trade barriers should not be raised arbitrarily.
– Binding commitments (set the maximum/celling tariff rate)
– Modify commitments: renegotiation and compensation
– Trade Policy Review Mechanism
– Specific measures and laws notified

46

23
 5/26/25

Principles of the trading system (cont.)

• Principle 4: Fair competition/More competitive
- Discouraging “unfair” practices, such as export subsidies and
dumping products
- However, the issues are complex: the rules try to establish what is
fair or unfair, and how governments can respond

47

Principles of the trading system (cont.)

• Principle 5: Support for less developed countries/More
beneficial for less developed countries
– Over three-quarters of WTO members are developing countries and
countries in transition to market economies.
– Giving them more time to adjust, greater flexibility and special
privileges;
– In the case of the Trade Facilitation Agreement, provide for practical
support for implementation of the Agreement.
– Provide technical assistance to build up trade capacity
– S&D treatment: Special and Different

48

24
 5/26/25

Principles of the trading system (cont.)

• Principle 6: Protection of the environment
– The WTO’s agreements permit members to take measures to protect not only
the environment but also public health, animal health and plant health
– These measures must be applied in the same way to both national and foreign
businesses. In other words, members must not use environmental protection
measures as a means of introducing a trade barrier.

• Principle 7: Inclusive trade

– a more inclusive trading system that will allow more women and small businesses
to participate in trade and to reap the economic benefits of global trading.

49

Principles of the trading system (cont.)

• Principle 8: Partnership
• The WTO maintains regular dialogue with civil society, labour unions, universities
and the business community to enhance cooperation and build partnerships.
• The WTO’s Trade Dialogues initiative and the annual Public Forum provide a
platform for civil society and business groups to discuss the latest developments in
world trade and to propose ways of enhancing the multilateral trading system.

• Principle 9: Supporting digital trade

– The WTO recognizes the growing importance of e-commerce.
– Periodic reviews of the WTO’s work programme on e-commerce are conducted by
the General Council based on reports from various WTO bodies.
– A group of like-minded members are conducting negotiations
on e-commerce, with a view to developing global digital trade rules and addressing
challenges posed by the digital divide.
50

25
 5/26/25

The basic
1.2. WTO Agreements andstructure
of WTO agreements
dispute settlement

The conceptual
framework
Broadly speaking, the WTO agreements
for the two largest areas of trade – goods
and services – share a common three-
part outline, even though the details are
sometimes different (see Figure 1).
51
They start with general disciplines contained
in the GATT (for goods), the General
Agreement on Trade in Services (GATS)
(for services) and the Agreement on Trade-
Related Aspects of Intellectual Property
Rights (TRIPS) (for intellectual property).
Structure of the WTO Agreements (cont.)
Figure 1: The basic structure of the WTO agreements

Umbrella AGREEMENT ESTABLISHING THE WTO

Intellectual
Goods Services
property

Basic principles GATT GATS TRIPS

Other goods
Additional details agreements and Services annexes
annexes

Countries’
Countries’
Market access schedules of
schedules of
commitments commitments (and
commitments
MFN exemptions)

Dispute settlement DISPUTE SETTLEMENT

Transparency TRADE POLICY REVIEWS

• Source: WTO, 2021

Technical Barriers to Trade 5

52

26
 5/26/25

General Agreements for Goods (under GATT)

1. Agreement on Technical Barriers to Trade (TBTs)

2. Agreement on Sanitary and Phyto-sanitary
3. Agreement on Anti-dumping measures (AD)
4. Agreement on Subsidies and Countervailing Measures (SCM)
5. Agreement on Safeguards (SG)
6. Agreement on Customs Valuation (CV) methods
7. Agreement on Pre-shipment Inspection (PSI)
8. Agreement on Rules of Origin (ROO)
9. Agreement on Import Licensing Procedures (IL)
10. Trade Facilitation Agreement (TFA)

53

Agreement on Agriculture (cont.)

• What are agricultural products?
• AOA: all listed products from Chapter I to XXIV (excluding fish and fish
products) and some other products in HS (harmonized system) (Part I to part
IV).
• Agricultural products include a wide range of commodities that are derived
from agricultural activities such as:
– The basic agricultural products such as rice, wheat, flour, milk, live animals, coffee, pepper, cashew
nuts, tea, fresh vegetables ...;
– The derivative products such as bread, butter, cooking oil, meat, ...;
– The products processed from agricultural products such as confectionery, dairy products,
sausages, soft drinks, wine, beer, tobacco, cotton fiber, crude animal skin ...
• All other products: non-agriuclutral products

54

27
 5/26/25

Agreement on Agriculture (cont.)

• The difference in concept of agricultural products between the WTO
and Vietnam
– Vietnam: agriculture is often understood in a broad sense covering
• agriculture (crop, livestock)
• Seafood
• forestry and salt production.
– Under WTO, agricultural products include all products under Chapters 1 to 24
and does not include the products in the fields of fisheries, forestry and salt
production.
• Vietnam: The industries of processing forestry and fisheries are
included in the industrial sector.
• The implication: enterprises should clearly identify the product type
that they produce and trade .

55

AOA Vietnam

Fisheries
Processed Crop and
Agricultural Livestock
products
Forestry and
salt production

56

28
 5/26/25

Agreement on Agriculture (AOA)

§ Why does the WTO must have a separate agreement on agricultural
products???
§ Sensitive products in international trade
§ Many economic reasons, politics, culture, society
§ Agricultural trade touches the interests of a part of the population which have low
incomes in both developed countries and developing countries
§ Every country has the need to ensure a stable food supply in the world context that is
facing with crop fluctuations and the risk of famine.
§ Agricultural trade policies are especially more conservative compared with
that of industrial goods
§ It is not easy to reach an agreement on market opening and reduction of
distorting subsidies for agricultural products
§ The results of the Uruguay Round, signed in Marrakesh in 1994 - turning
point (the US-EU on beef)

57

Agreement on Agriculture (cont.)

Agricultural
Opening up Subsidies
agricultural • Domestic Subsidies
markets • Export subsidies

Objective:
Liberalization
of
agricultural
trade

58

29
 5/26/25

Agreement on Agriculture (cont.)

• Opening up agricultural markets: reduce barriers
– Tariff reduction on roadmap (by group of countries)
– Raising tariff is conditional (applicable only to developing and
underdeveloped)
– Removal of non-tariff measures (quotas, minimum price regulation,
taxes and expenses related to import ... - except for some cases)
– Proceed tariffication of non-tariff measures
• Transfer non-tariff measures into tariffs (WTO principles: transparency,
stability and predictability), for example, with the automobile policy and
policies with tulip bulbs and Fedex
• With developed countries: tariffs will be cut by 36% in 6 years
• With developing countries: 24% in 10 years
• LDCs: exemptions
• There are few non-tariff measures applied Reduction of trade barriers are
Obligations of country
members. Should enterprises
of member countries know???

59

Agreement on Agriculture (cont.)

• Agricultural Subsidies: The concept is complex
– Domestic Subsidies
– Export subsidies
• Often the cause of international trade distortions, unfair competition
activity (the industrialized countries subsidize agriculture => conflicts
between groups of countries).
• The eligible types of subsidies are still very diverse in scope and degree
• Enterprises should pay attention to the issue of subsidies

60

30
 5/26/25

Agreement on Agriculture (cont.)

[Link]
/agboxes_e.htm

• Domestic Subsidies in industrial sector

– Green box:
• Permitted
– Yellow box:
• Must slow down
• Not forbidden but may be complained if cause damages
to the partners
– Red subsidies:
• Forbidden
• Export subsidies
• Domestic consumption preferences

61

Agreement on Agriculture (cont.)

[Link]

Domestic supports in agriculture

– Green box :
• Permitted without limits
– Amber box:
• Create distortions
• Must reduce
– Green boxi:
• Conditional amber box
• No limit
– Development Box:
• Permitted

62

31
 5/26/25

Agreement on Agriculture (cont.)

• Domestic Subsidies

– Green box:
• Permitted without limits
• no obligation to cut down because they do not distort trade or cause
minimal distortion.
• E.g: programs that are not targeted at particular products, General services,
research, environmental protection, the national reserve for the purpose of
food security, poverty allowances, income support for the poor and the
program of social security and income insurance; disaster mitigation;
restructuring subsidies agricultural direct payments in the framework of
environmental protection and support the development of the region, etc.)

63

Agreement on Agriculture (cont.)

• Domestic Subsidies

– Amber box:
• Subsidies distort production and trade
• E.g: subsidies to support prices, subsidies directly related to
production quantities.
• not exceeding 5% of production in developed countries
• Not exceeding 10% in the developing countries

64

32
 5/26/25

Agreement on Agriculture (cont.)

• Domestic Subsidies

– Blue box:
• Do not have to reduce if are being used
• No limits on spending blue box subsidies
• E.g: The direct payments in the production-limiting programs
(in some developed countries)

65

Agreement on Agriculture (cont.)

• Export subsidies
– Member countries commit to reduce export subsidies
– Developed countries must reduce by 36% of export subsidies value and at
minimum by 21% of export subsidies volume within 6 years from 1/1/1995
– The developing countries were 24% and 14% over 10 years
– The least developed countries were not asked to reduce export subsidies.
– The data base used to calculate the export subsidies: the period 1986 - 1990

67

33
 5/26/25

Agreement on Agriculture (cont.)

Reduce export subsidies: 06 main categories
1. Direct subsidies to producers of exports
2. Liquidation of agricultural products stock for export at cheap prices.
3. Financing payments for export, including the funding from tax revenues
4. Subsidies for agricultural products based on export proportion
5. Subsidies to reduce marketing costs, including handling costs, products
upgrading and recycling, international freight charges, and shipping
charges.
6. Incentives on domestic and international freight for exports is higher
than that for domestic goods
The developing countries can apply 5 and 6 due to special and
differential treatments (S & D)

68

Agreement on Agriculture (cont.)

• Implications for Government and Enterprises
– The regulations on agricultural subsidies is complicated
– The permitted types of subsidies is very diverse (in scope) and large (the
degree)
– Each country should take advantage of eligible subsidies to support for
farmers and agricultural enterprises without violating WTO
commitments.
– Enterprises actively recommend the Government to provide eligible
subsidies
– Enterprises require government to intervene if detecting foreign
partners adopting unfair trade activities.

69

34
 5/26/25

The TBT Agreement

• Agreement on technical barriers to trade (Technical Barriers to Trade -
TBTs) – new reports of WTO

• Goals:
– Avoid unnecessary obstacles to international trade
– Preserve members’ right to regulate to protect legitimate interests (Recognition of
countries’ rights to establish reasonable technical measures and a level of protection)
– Encourage countries to use international standards as appropriate.

• In fact, if used arbitrarily => create unequal and unfair trade barriers
• E.g:
– Car import through certain border crossings
– Vietnam: Circular 116 effective from 1/1/2018
– Imported mobile, wine, and cosmetics by shipping

70

The TBT Agreement (cont.)

• Scope of application:
– Products: Both agricultural and industrial products
– TBT Measures: covers
• Technical regulations
• Standards
• Conformity assessment procedures
– Excluded:
• Measures on trade in services
• Government procurement specifications:
• Sanitary and phytosanitary measures: SPS Agreement

71

71

35
 Many TBT measures concern, among other
things, regulations about the way products are Three categories
labelled or packed, for example, a measure of TBT measures
regulating – for public health purposes – the
appearance of, and any information contained The TBT Agreement distinguishes between
5/26/25
in, the labels and packages of certain three types of measures: technical
consumer goods. Let’s also assume that regulations, standards and CAPs. These
some of these labels and packages contain measures are precisely defined in Annex 1 to
the brand of the manufacturers of these the TBT Agreement. Box 1 offers a simplified
goods, which are affected by this measure. characterization of these measures.

Box 1: TBT measures The TBT Agreement

Technical regulations Standards Conformity assessment
procedures

Technical regulations Standards are approved by CAPs are used to

lay down product a recognized body that is determine that relevant
characteristics or their responsible for establishing requirements in technical
related processes rules, guidelines or regulations or standards
and production characteristics for products are fulfilled.
methods. Compliance or related processes
They include procedures
is mandatory. They and production methods.
for sampling, testing and
may also deal with Compliance is not mandatory.
inspection; evaluation,
terminology, symbols, They may also deal with
verification and assurance
packaging, marking and terminology, symbols,
of conformity; and
labelling requirements. packaging, marking and
registration, accreditation
labelling requirements.
and approval.

Technical Barriers to Trade 17

72

Example of labeling requirements for medical

products

73

73

36
 5/26/25

The TBT Agreement (cont.)

• Encourage nations and enterprises to adopt international
standards published by international organizations.
• International Standardization Organization (ISO)
• International Electronic Commission (IEC);
• International Telecommunication Union (ITU);
• International Food Standards (CODEX)

74

The SPS Agreement

• Sanitary and Phytosanitary Measures (SPSs)
• Objectives:
– Avoid unnecessary obstacles to international trade
– Recognition of the rights to use SPS measures appropriately

75

75

37
 5/26/25

The SPS Agreement (cont.)

• What are SPS measures?
– Regulations, conditions and requirements that affect international
trade
– to protect the humans, animal or plant life or health
– through the assurance of food safety and/ or prevention of the
entry of diseases originating from imported animals and plants.

76

77

38
 5/26/25

The SPS Agreement (cont.)

• Protect human life from from
plant or animal-carried diseases;

79

79

The SPS Agreement (cont.)

• Protect animal or plant life from
pests, diseases, or disease-causing
organisms;
• E.g: Quanrantine regulation of Japan
and Australia

80

80

39
 5/26/25

The SPS Agreement (cont.)

• Protect a country from damage
caused by the entry, establishment
or spread of pests.

81

81

Which international orgnizations?

Standard-setting
organizations

food safety animal health plant health

Codex OIE IPPC

Codex = joint FAO/WHO Codex Alimentarius Commission

OIE = Office international des epizooties
IPPC = International Plant Protection Convention (FAO)

82

82

40
 products, the labelling of cigarettes or even regulations are generally not considered to
requirements for seatbelts and child seats in be SPS measures and hence are normally
cars. While some measures addressing human subject to the TBT Agreement. However,
diseases may fall under the TBT Agreement regulations that, for example, address the
(for example, requiring warning labels in microbiological contamination of food, set 5/26/25
or safety, TBT measures
tanning equipmentcould includerisks
addressing CAPsof most
allowablelabelling
levels of requirements, information
pesticide or veterinary
to approve the marketing
developing of pharmaceutical
skin cancer), if the measures on
drug nutrition
residues, or andidentify
quality and food
permitted packaging
concern
products, diseases that
the labelling are carried byorplants
of cigarettes evenor additives all fall under the SPS Agreement.
regulations are generally not considered to
animals (such as rabies or bovine spongiform Some packaging and labelling requirements,
requirements for seatbelts and child seats in be SPS measures and hence are normally
encephalopathy (BSE)) – or are transmitted if directly related to the safety of the food,
cars. While some measures addressing human
through food – they most probably will fall
subject to the TBT Agreement. However,
are also subject to the SPS Agreement. More
diseasesinstead
may fall
underunder theAgreement.
the SPS TBT AgreementFor food, regulations
examples are that, forin example,
provided Table 1. address the
TBTs or SPSs?
(for example, requiring warning labels in microbiological contamination of food, set
tanning equipment addressing risks of allowable levels of pesticide or veterinary
developing skin
Table cancer),
1: SPS the measures drug residues, or identify permitted food
if examples
or TBT
concern diseases
Fertilizer
that are carried by plants or additives all fall under the SPS SPS
Regulation on permitted fertilizer residue in food
Agreement.
animals (such as rabies or and
bovine spongiform
animal feed Some packaging and labelling requirements,
encephalopathy (BSE)) – or are transmitted if directly related to the safety of the food,
Specifications to ensure fertilizer works effectively TBT
through food – they most probably will fall are also subject to the SPS Agreement. More
instead under the SPS Agreement. Fortofood,
Specifications examples
protect farmers fromare provided
possible harm in Table 1.
TBT
from handling fertilizer

Food Regulation on permitted food safety: health warnings, use, SPS

labelling
Table 1: SPS or TBT dosage
examples
Regulation on size, construction/structure, safe handling TBT
Fertilizer Regulation on permitted fertilizer residue in food SPS
Fruit and animal feed
Regulation on treatment of imported fruit to prevent pests SPS
spreading
Specifications to ensure fertilizer works effectively TBT
Regulation on quality, grading and labelling of imported fruit TBT
Specifications
Bottled water: tocan
Materials that protect farmers
be used becausefrom
safepossible
for humanharm
health SPS TBT
from handling fertilizer
specifications
83 for the bottles Requirements: no residues of disinfectant, so water not SPS
Food contaminated
Regulation on permitted food safety: health warnings, use, SPS
labelling dosage
Permitted sizes to ensure standard volumes TBT

Regulation onshapes
Permitted size, construction/structure, safe handling
to allow stacking and displaying TBT TBT

Fruit Cigarette Government

Regulation health warning:
on treatment “Smoking fruit
of imported to prevent pests TBT SPS
can seriously
packets
TBTs or SPSs?
damage your health”: the label’s objective is health but it is
spreading
not about food, so it is not SPS
Regulation on quality, grading and labelling of imported fruit TBT

Bottled water: Materials that can be used because safe for human health SPS
specifications
14 WTO Agreements Series
for the bottles Requirements: no residues of disinfectant, so water not SPS
contaminated

Permitted sizes to ensure standard volumes TBT

Permitted shapes to allow stacking and displaying TBT

Cigarette Government health warning: “Smoking can seriously TBT

packets damage your health”: the label’s objective is health but it is
not about food, so it is not SPS

84
14 WTO Agreements Series

41
 5/26/25

Agreement for services: GATS

• General Agreement on Trade in Services (GATS)
– An agreement under the WTO system
– Launched in 1995: The rules and principles on trade in
services
• Objectives: promote services trade liberalization
• The annex to the GATS and the Ministerial decision
– Annex on Movement of Natural Persons
– Annex on Air Transport Services
– Annex on Financial Services
– Annex on Shipping
– Annex on Telecommunications

85

GATS (cont.)
• Business Services
• Information services
• Building services
• Distribution Services
• Educational services
• Environmental Services
• Financial services
• Health services
• Travel services
• Service culture, recreation and sport
• Transport services
• Other Services

The services sector under GATS

classification: 12 sectors with 155
sub-sectors.

86

42
 5/26/25

GATS (cont.)

• 04 modes of supply
– Mode 1: Cross-border supply
– Mode 2: Consumption abroad
– Mode 3: Commercial presence
– Mode 4: Natural persons presence

87

TRIPs
• Contents of TRIPS is consistent with The conventions of the World
Intellectual Property Organization (WIPO), the Paris Convention,
Berne Convention, the Rome Convention, IPIC Treaty.
• Coverage:
– Copyright and Related Rights
– Trademarks
– Geographical Indications
– Industrial Designs
– License of invention
– Design
– Protection of confidential information

88

43
 5/26/25

Dispute Settlement System

of the WTO

89

Overview
• Applies to all the multilateral
agreements
• Dispute • A single set of rules for all
settlement system disputes
of the WTO - An – Only a few specific rules in some
integrated system: agreements
• All members must accept the
jurisdiction of the DSB

90

90

44
 5/26/25

The DSB - Dispute Settlement Body

Ministerial Conference

Trade policy Review Body General Council Dispute settlement Body

(DSB)

91

91

The DSB (cont.)

• WTO Members: Members of the DSB
• WTO’s DSB has executed under 2 levels
– Panel – Ban Hội thẩm
• Ad-hoc mechanism
• Established by DSB for each particular dispute (3-5 members)
• “well-qualified government and /or non-governmental individuals” (8.1)
– Appellate Body (AB) – Ban Phúc thẩm
• Regular
• Appointed by DSB (7 members)

• DSB is not directly involved in the process of adjudication (xét xử)

of disputes
• The Panel and the Appellate Body will take role of legal institutions

92

45
 5/26/25

Main stages of dispute settlement

Consultation

• Stages ( 10 Stages)
• Four main stages:
Panel
– Consultation
– Panel and Appellate Body
review
– Adoption of report by the AB → DSB Adoption

DSB
– Implementation
Implementation

93

93

WTO annual report 2023 (see page 132-136)

• Disputes initiated since the WTO was established in 1995: 615
• From mid-March 2022, improvements regarding the COVID-19 pandemic
allowed panels, arbitrators and parties to resume in-person meetings in
Geneva. As of the end of December 2022, panel proceedings were ongoing
in 18 disputes.
• Nine panel reports, two arbitration decisions and two arbitration
awards were circulated during 2022.
• At the 12th Ministerial Conference (MC12) in June 2022, ministers
agreed to talks on addressing concerns with respect to the dispute
settlement system, with a view to securing a fully functioning system by
2024
• All seven positions on the Appellate Body remained vacant and no
appeals could be heard.

94

46
 5/26/25

WTO annual report 2024

• Ten panel reports were circulated in 2023, including three reports where a mutually agreed
solution had been reached. In 2023, nine reports were the subject of a notification of
appeal to the Appellate Body.
• All seven positions in the Appellate Body remained vacant in 2023 and the Appellate Body
was consequently unable to hear appeals.
• During 2023, WTO members filed six requests for consultations concerning allegedly WTO-
inconsistent measures (see Table 3), the first stage in the dispute settlement process,
compared with eight
in 2022.
• By the end of 2023, a total of 621 disputes had been initiated under the DSU since the
entry into force of the WTO agreements in 1995 (see Figure 12).

CHAPTER 3
95

Table 3: Disputes initiated in 2023 (requests for consultations)

Dispute settlement number Title Date of request Status on 31 December 2023

DS616 EU – CVD/AD on Stainless Steel Cold 24/01/2023 Panel composed (13/09/23)

Rolled Flat Products

DS617 US – AD Measure on Oil Country Tubular 17/05/2023 Panel established (26/10/23)

Goods (Argentina)

DS618 EU – CVDs on Biodiesel (Indonesia) 11/08/2023 Panel established (27/11/23)

DS619 Poland – Agricultural Products (Ukraine) 18/09/2023 In consultations

DS620 Hungary – Agricultural Products (Ukraine) 18/09/2023 In consultations

DS621 Slovak Republic – Agricultural 18/09/2023 In consultations

Products (Ukraine)

DS577 US – Ripe Olives from Spain 28/04/2023 Panel composed (31/07/23)

(Article 21.5 proceeding) (Article 21.5 – EU)

With a view to providing for review of panel a final panel report (see Table 5). The
reports in the absence of a functioning parties to these disputes agreed to use
96Appellate Body, parties in three disputes the so-called multi party interim appeal
informed the DSB during 2023 that they had arbitration arrangement (MPIA).
agreed to resort to an alternative mechanism
based on arbitration proceedings under In March 2023, Japan informed the DSB that
Article 25 of the DSU to decide any appeal of it had joined the MPIA. As of end-December
47
Figure 12: Disputes initiated, and original panels established, 1995 to 2023
50
50
 5/26/25
DISPUTE SETTLEMENT

Table 4: Panels established in 2023

Dispute settlement number Short title Date of establishment

(and composition)

DS610 China – Goods (EU) 27/01/2023

(composed 18/04/23)

DS611 China – IPRs Enforcement (EU) 27/01/2023

(composed 28/03/23)

DS616 EU – CVD/AD on Stainless Steel 30/05/2023

Cold-Rolled Flat Products (Indonesia) (composed 13/09/23)

DS617 US – AD Measure on OCTG (Argentina) 26/10/2023

DS618 EU – CVDs on Biodiesel (Indonesia) 27/11/2023

DS577 US – Ripe Olives from Spain Referred to original panel

(Article 21.5 proceeding) (Article 21.5 – EU) 28/07/2023
(composed 31/07/23)
CHAPTER 3

2023, WTO members participating in the

97 Table 5: Disputes where parties
MPIA were: Australia; Benin; Brazil; Canada;
agreed to resort to the MPIA in 2023
China; Chile; Colombia; Costa Rica;
Ecuador; the European Union; Guatemala; Dispute number Short title Date of
Hong Kong, China; Iceland; Japan; Macao, notification
China; Montenegro; Mexico; New Zealand;
Nicaragua; Norway;
Table Pakistan; Peru; circulated inDS601
6: Panel reports 2023
China – AD on Stainless 11/04/23
Steel (Japan)
Singapore; Switzerland; Ukraine; and Uruguay.
Dispute settlement number Short title
DS610 Date of circulation
China – Goods (EU) 04/07/23
Panel reports
DS582 India – Tariffs
DS611on ICT Goods (EU)
China – IPRs 17/04/2023 04/07/23
Ten panel reports Enforcement (EU)
were circulated in 2023 India – Tariffs on ICT Goods (Japan)
DS584 17/04/2023
(see Table 6), including three reports where a
mutually agreed solution had been reached. India – Tariffs on ICT Goods
DS588 17/04/2023
The DSB adopted two panel reports during (Chinese Taipei)
establishment of the panel lapsed as the
this period (see Table 7) and nine panel panels had not been requested to resume
reports were DS601
appealed (see Table 9). China – AD on Stainless Steel (Japan)
work within 12 months of a request to 19/06/2023
DS605 suspend
Dominican the proceedings.
Republic – AD on Steel Bars 27/07/2023
Suspension/termination of dispute (Costa Rica)
settlement proceedings In eight disputes, the parties notified the
DS547 US – Steel
DSBandthatAluminium
they had reached a mutually 08/08/2023
During 2023, the panels in three Products (India)
agreed solution on the matter at issue,
disputes notified the DSB that they had including three disputes in which the
DS585 India – Additional Duties (US) 08/08/2023
agreed to requests to suspend their work. appellants withdrew their appeals against
In two disputes, the authority for the
DS558 China –panel reports.
Additional Duties (US) 16/08/2023

DS561 Turkey – Additional Duties (US) 19/12/2023

DS598 China — AD/CVD on Barley (Australia) 24/08/2023

If the parties to a dispute are unable to resolve their differencies
98 through consultations, the complainant can ask the Dispute Settlement
Body (DSB) to establish a dispute settlement panel. In 2023, the DSB
established five
Table 7: original
Panel panels.
reports adopted in 2023

Dispute settlement number Short title Date adopted

48
DS546 US – Safeguard Measure on Washers 28/04/2023
132 A N N UA L R E P O R T [Link]/disputes
DS601 China – AD on Stainless Steel (Japan) 28/07/2023
 DS588 India – Tariffs on ICT Goods 17/04/2023
(Chinese Taipei)

DS601 China – AD on Stainless Steel (Japan) 19/06/2023

DS605 Dominican Republic – AD on Steel Bars 27/07/2023 5/26/25

(Costa Rica)

DS547 US – Steel and Aluminium 08/08/2023

Products (India)

DS585 India – Additional Duties (US) 08/08/2023

DS558 China – Additional Duties (US) 16/08/2023

DS561 Turkey – Additional Duties (US) 19/12/2023

DS598 China — AD/CVD on Barley (Australia) 24/08/2023

Table 7: Panel reports adopted in 2023

Dispute settlement number Short title Date adopted

DS546 US – Safeguard Measure on Washers 28/04/2023

DS601 China – AD on Stainless Steel (Japan) 28/07/2023

In one dispute, the complainant notified the Dispute settlement reform

DSB that it wished to terminate the panel
composition process and formally withdrew Members agreed at MC12 to conduct
its complaint (see Table 8). discussions with the view to having a
99 fully and well-functioning dispute settlement
CHAPTER 3
Appeals system accessible to all members by
2024. Informal discussions on
In 2023, nine reports were the subject of dispute settlement reform continued
a notification of appeal to the Appellate during 2023.
Body (see Table 9) and the appeals in three
disputes were withdrawn. This brings to 30 On 14 February 2024, then DSB chair
the number of disputes in which appeals Petter Ølberg, Permanent Representative
were
Table 9: pending as ofappealed
Panel reports 31 December
in 20232023. of Norway, together with Marco Molina,
Deputy Permanent Representative of
Dispute settlement number Short title Date of notice of appeal
Given the ongoing absence of consensus Guatemala and convenor of informal dispute
among WTO members on launching
DS597 US – Origina marking (Hong Kong,
settlement
China) reform discussions, reported to
26/01/2023
selection
DS556
process, all seven positions in the the General Council
US – Steel and Aluminium Products (Switzerland)
on the status of the
26/01/2023
Appellate Body remained vacant in 2023 and discussions. Mr Molina also presented
DS564 US – Steel and
the Appellate Body was consequently Aluminium Products
unable (Turkey) draft text on dispute
a consolidated 26/01/2023
to hear appeals.
DS552 settlement
US – Steel and Aluminium Products reform.
(Norway) 26/01/2023

DS544 US – Steel and Aluminium Products (China) 26/01/2023

DS584 India – Tariffs on ICT Goods (Japan) 17/05/2023

[Link]/disputes A N N UA L R E P O R T
DS558 China – Additional Duties (US) 18/09/2023

DS605 Dominican Republic – AD on Steel Bars (Costa Rica) 18/09/2023

DS582 India – Tariffs on ICT Goods (EU) 08/12/2023

Students from the South Pacific region support from the WTO. Among other
100(University of the South Pacific) took part prizes, winners of individual and team
for the first time with the support of Australia awards have the opportunity to receive
and New Zealand. The participation of African scholarships to study at the competition’s
teams was supported by various international academic supporter institutions:
and individual donors. Georgetown University Law Center
(United States), the World Trade Institute
The WTO co-hosted the final oral round, (Switzerland) and the European Public 49
which took place in Geneva in June. The Law Organization (Greece).
University of Ottawa (Canada) and the
National University of Singapore advanced The John H. Jackson Moot Court Competition
 5/26/25

101

Trade Remedies
(Các biện pháp phòng vệ thương mại)

102

102

50
 5/26/25

What are Trade Remedies?

• Anti-dumping (Chống bán phá giá)
• Subsidies and countervailing measures - SCM
(Trợ cấp và biện pháp đối kháng)
• Safeguards (Biện pháp tự vệ)

103

103

Anti-dumping: When investigate?

Dumping: price for

export is lower than
price of like products in
domestic market Domestic injury
(volume, price, the
• Like products?
industry)
• Non-market
economies?

Causal link between

dumped products
and injury

104

104

51
 5/26/25

Subsidies and countervailing

measures: When investigate?

Subsidy (yellow box)

Domestic injury
• Red box? (volume, price,
• Green box? the industry)

Causal link
between subsidy
and injury

105

105

Safeguards: When investigate?

Increased imported
quantity Domestic injury
(volume, price,
the industry)

Causal link
between
increased
imported quantity
and injury

106

52
 5/26/25

1.3. Vietnam’s integration in the

WTO

107

A long process from 1995

108

53
 5/26/25

A long process from 1995

7/1994 Became observer of GATT

4/1/1995 WTO received Vietnam’s application from for
membership
30/1/1995 The working team on Vietnam’s accession was
created (about 40 persons)
26/8/1996 Submitted the Memorandum on Foreign Trade
Regime
7/1998 đến Multilateral negotiations on the implementation of
7/2006 WTO agreements, bilateral negotiations on market
access of goods and services
7/11/2006 Vietnam joined the WTO
11/1/2007 Officially became the 150th member of the WTO

109

Negotiations
è 11 years of negotiations
è More than 200 talks/sessions
è 14 sessions of multilateral negotiations related to
policy transparency and commitments consistent
with the WTO Agreements.
è Bilateral negotiations with 28 partners. 3 Fastest;
3 sessions, Slowest: 13 sessions

110

54
 5/26/25

Multilateral negotiations: 14 sessions

• To make policies transparent and commit on
macroeconomic policies.
• Basically accept to fulfill all of the WTO Agreements
– Removal of the prohibited subsidies concerning export
ratios, local content requirement, direct subsidies for
exports
– Implementation of the allowed subsidies concerning
the promotion of trade, investment, tourism, enhancing
the quality of goods, freight ...
– Domestic support to agriculture: 10%
– Remove import prohibitions: cigarettes, used cars

111

Bilateral negotiations: 28 partners

• Each WTO member had the right to set out specific

requirements on tariffs, non-tariff measures and
regulations affecting trade in services
– China: 7 sessions
– EU
– USA (May 5-2006)

112

55
 5/26/25

113

Vietnam – 150th member of the WTO

114

56
 5/26/25

Rạng rỡ nụ cười Việt Nam khi hoàn tất chặng đường

vào WTO

115

• END OF PART 1

116

57