Market access: From bespoke solutions to unilateral standard setting 26 October2018, Bern Professor Michael Hahn University of Berne (Switzerland) Institute for European and International Economic Law IEW World Trade Institute WTI
Post WWII Multilateral Trade Liberalization From unilateral granting (à la Zibelemärit ) To Treaty-based market access Weighted Average Tariffs 45% 40% Foundation of GATT 40% G A T T Geneva 1947 (23 35% Annecy 1994 (13) T A R I F F S 30% 30% Average Tariff Torquay 1950-51 25% (38) 25% Geneva 1956 (26) 23% 20% Kennedy-Round Dillon-Round 15% 1964-67 (62) 15% Uruguay-Round Tokyo-Round 1960-62 (26) 1986-93 (117) 1973-79 (99) 10% 10% 5% 6.4% 4% 0% 1940 1950 1960 1970 1980 1990 2000 Year Source: GATT 2
Plus ca change…. • From Trade Liberalization to Trade Regulation and Behind-the- Border-Issues – Regulatory cooperation (-) • Plurilateral/bilateral FTA provisions are based either upon WTO non-tariff rules, plus MRA (e.g. CETA, EU-CH)…. • ….or upon non-tariff rules emanating from larger trading partner (EU, US, China) • Regulatory cooperation largely absent 3
The Relevance of the European Experience for Switzerland Cassis-de Dijon Principle and equivalence (full faith and credit) • Harmonization (directives, regulations) • è Single Market Variable Geometry (Schengen/Dublin, EMU, enhanced cooperation) • Rule export to 3 rd countries via “gravity” & Agreements (MRAs, • Association and FTAs) – “The Brussels effect” “The EU ecosystem” of governance as integral part of the • equivalence evaluation process 4
Back to unilateral granting of market access? • POTUS 45: e.g. VERs U.S. – Korea, USMCA • “Third country-/Switzerland clauses in EU legislation: “A privilege, not a right” • OBOR • Rule-Makers and Rule-Takers 5
Agreements “Autonomous (Recognition of) Adaptation” Equivalence
THANK YOU FOR YOUR ATTENTION! Any questions? michael.hahn@iew.unibe.ch michael.hahn@wti.org 7
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