Why the US Proposals on Development will Affect all Developing Countries and Undermine WTO
By Aileen Kwa and Peter Lunenborg
US submitted two highly problematic proposals to the WTO in January and February 2019, undermining the place of Special and Differential Treatment (S&D) for developing countries at the WTO. In the first paper (WT/GC/757), US criticises the practice of self-declared development status by developing countries arguing that the North-South construct no longer makes sense due to “great development strides”. The second paper (WT/GC/764) – a proposed Decision for the General Council – provides a way to operationalise what was in the first paper. It gave criteria that would exclude 34 Members or 53.6 percent of global population from S&D treatment in “current and future WTO negotiations”. This fundamentally changes S&D from an unconditional right for all developing countries to a concession that may or may not be provided. Even for those developing countries that are not part of the 34 excluded Members, the US notes that in sector-specific negotiations, other Members could also be “ineligible for special and differential treatment.” This paper critiques the US approach on Special and Differential Treatment and concludes that these papers by the US cannot be the basis for any further discussions. All developing countries must be able to decide the pace of their adjustment to trade rules.
Building a Mirage: The Effectiveness of Tax Carve-out Provisions in International Investment Agreements
By Daniel Uribe and Manuel F. Montes
The present policy brief analyses the language of taxation carve-out provisions incorporated in International Investment Agreements (IIAs), and its effectiveness with regards to restricting the protection and dispute settlement provisions of IIAs only to non-tax-related claims. It illustrates that even in cases where such carve-out provisions have been incorporated into IIAs, the broad language and lack of clarity in the drafting of such provisions have effectively allowed Investor-State Dispute Settlement (ISDS) tribunals to scrutinize tax measures adopted by States, and even determine that such measures resulted in a breach of State’s obligations under the agreement. It makes recommendations on how States could effectively implement such carve-outs when negotiating, reforming or drafting new international investment agreements.
La coopération Sud-Sud en Afrique du Sud 40 ans après le BAPA
Par Neissan Alessandro Besharati
Alors que les États membres et les Nations Unies (NU) se préparent pour la deuxième Conférence de haut niveau sur la coopération Sud-Sud (CSS) quarante ans après l’adoption du Plan d’Action de Buenos Aires (PABA), cet article reflète le parcours de l’Afrique du Sud dans la mise en oeuvre de la coopération technique avec les pays en développement (CTPD). Bien que le gouvernement d’apartheid de Pretoria ait été exclu des discussions à Buenos Aires, l’Afrique du Sud a joué un rôle important au sein de la CSS, au cours des deux dernières décennies, en promouvant le renforcement des capacités, l’échange d’expériences et la CTPD en Afrique et au niveau intrarégional. L’article examinera le degré de conformité des 38 recommandations établies dans le PABA par l’Afrique du Sud et le travail de suivi qui reste nécessaire, aux niveaux national et mondial, pour faire avancer le programme de la CSS.
South Africa’s South-South cooperation 40 years after BAPA
By Neissan Alessandro Besharati
As member states and the United Nations (UN) prepare to come together for the 2nd High Level Conference on South-South cooperation (SSC) forty years after the adoption of the Buenos Aires Plan of Action (BAPA), this article reflects on the journey South Africa has made in implementing technical cooperation with developing countries (TCDC). Although the Apartheid government of Pretoria was excluded from the discussions in Buenos Aires, in the last two decades South Africa has played a major role in SSC, promoting capacity building, exchange of experiences, and TCDC in Africa and intra-regionally. The article will explore the degree of compliance by South Africa with the 38 recommendations (Recs. 1-38) set out in the BAPA, and the follow up work still required, both nationally and globally, to advance the SSC agenda. (more…)
Developing Countries and the Contemporary International Tax System: BEPS and other issues
By Marcos Aurélio Pereira Valadão
This policy brief addresses the design of international taxation and tax cooperation in the context of issues presented in the Organisation of Economic Co-operation and Development (OECD)/Group of Twenty (G20) Base Erosion and Profit Shifting (BEPS)Project. It further considers their significance for developing countries and provides the Brazilian approach to those issues. The brief concludes by exploring the importance of regional cooperation vis-à-vis international organizations and highlights relevant considerations for developing countries engaging with the contemporary international tax system.
WHY THE US PROPOSAL (WT/GC/W/764) WILL AFFECT ALL DEVELOPING COUNTRIES AND UNDERMINE THE MULTILATERAL SYSTEM
US’ recent submissions to the WTO attempt to fundamentally change the concept of Special and Differential Treatment (S&D) at the WTO from an unconditional right for all developing countries to conditioned concessions available to only a few. This will affect developing countries and undermine the multilateral trading system!
Key Issues for BAPA+40: South-South Cooperation and the BAPA+40 Subthemes
By Vicente Paolo B. Yu III
Developing countries today face multiple interlinked macroeconomic, financial, climate, and development challenges. South-South cooperation is an important element for developing countries to meet these challenges individually and collectively, and in multilateral North-South dialogue and global governance. The overall theme of the Second High-level United Nations Conference on South-South Cooperation (40 years after the Buenos Aires Plan of Action for Promotion and Implementing Technical Cooperation among Developing Countries/BAPA+40) is the “Role of South-South cooperation and the implementation of the 2030 Agenda for Sustainable Development: challenges and opportunities”, with sub-themes. This research paper will present some concepts relating to South-South cooperation that have been developed by the South and the United Nations system, and looks at some issues that would be relevant to discussions that may be undertaken with respect to Subthemes (i) “Comparative advantages and opportunities of South-South cooperation”; (ii) “Challenges and the strengthening of the institutional framework of South-South cooperation and triangular cooperation”; and (iv) “Scaling up the means of implementation of the 2030 Agenda for Sustainable Development in support of South-South cooperation and triangular cooperation”. It concludes by providing recommendations for the consideration of developing countries in response to the various subthemes, as inputs to support the active engagement by developing countries in the negotiations for the BAPA+40 outcome document.
24th Conference of the Parties of the UNFCCC: The US COP?
By Mariama Williams
Despite its stated intentions to leave the Paris Agreement, the United States negotiating team continued to dominate many of the negotiations of key areas of the twenty-fourth meeting of the Conference of the Parties (COP 24) agenda of the United Nations Framework Convention on Climate Change (UNFCCC). The outcome of the meeting, branded the ‘Katowice Climate Package’, again showed developing countries sacrificing many redlines to save multilateralism. The Katowice Outcome reflects very little substantial advancement of the global climate protection agenda. However, the discussion and further refining of the rules will continue in the UNFCCC’s upcoming negotiating sessions in 2019 as well as COP 25. Hence, developing countries have a chance to regroup and push forward to ensure sustainable development objectives are ensured and protected.
Scientific and Efficient Establishment of Urban Environmental and Resource Management System
By Youba Sokona
Transformation in urban areas needs to happen now to achieve sustainable development and fight against climate change. This transformation needs to be inclusive by focusing on social justice, power asymmetries and vulnerable populations; and requires all actors at the national and international level to collaborate in order to exchange information, generate and work with accurate data, develop technology and provide the financial resources for the implementation of the right programs and policies. These are messages of the keynote speech by Prof. Youba Sokona, South Centre Senior Adviser on Sustainable Development and Intergovernmental Panel on Climate Change (IPCC) Vice-Chair, at the “Forum on the Implementation of the 2030 Agenda for Sustainable Development”. He also highlighted the main take-aways from the recently released IPCC Special Report on Global Warming of 1.5°C. (more…)
Illicit Financial Flows: Conceptual and Practical Issues
By Hon. Irene Ovonji-Odida and Algresia Akwi-Ogojo
The issue of illicit financial flows (IFFs) is of great significance for many countries looking to mobilize domestic resources for achieving their development goals. The High Level Panel on Illicit Financial Flows from Africa, led by H.E. Thabo Mbeki, brought the issue into the global spotlight, notably since the release of exposés like the ‘Panama Papers’. This policy brief elaborates on the conceptual underpinnings of IFFs, its sources and the development costs they generate. Building on the report of the High Level Panel, it provides recommendations to stem IFFs from developing countries.
