12th Geneva Week for
Non-Resident Members and Observers of the WTO
AITIC Briefing Session
The Doha Work Programme: At the Crossroads
Report on Meeting
26 April 2006, 14.00 - 19.00, Room CR II, Centre William Rappard
I. Introduction
II. From Hong Kong to the April Timelines
III. Cotton in the Hong Kong Ministerial Declaration
A. Progress Report
B. Domestic Support in Agriculture: An Outline
IV. Aid for Trade: Developments to Date
A. HE Ms Claudia Uribe
B. HE Mr Ransford Smith
V. The Small and Vulnerable Economies: The Role of the CTD
VI. Negotiations on Trade in Services
A. The Impact of Domestic Regulation
B. Specific Commitments
VII. Accession Negotiations and the Doha Work Programme
VIII. Time for Policy Decisions
IX. The Geneva Week Programme
A. Opening remarks by the Director-General of the WTO
B. Introductory Remarks by the Chairman of the General Council
C. Agriculture and Cotton
D. Status of the Negotiations on Non-Agricultural Market Access
E. Briefing on the Special Session of the Council for Trade in Services
F. Briefing on the Negotiating Group on Trade Facilitation
G. Briefing on the Negotiating Group on Rules
H. Special and Differential Treatment
I. Briefing on the Regular and Dedicated Sessions of the CTD
J. 14th Session of the CTD Dedicated Session
K. Briefing on the Committee on Sanitary and Phytosanitary Measures
L. Briefing on the Special Session of the Council for TRIPS
M. Briefing on the Committee on Rules of Origin
N. Briefing on the Special Session of the CTE
O. Briefing on the Working Group on Trade, Debt and Finance
P. Briefing on Aid for Trade
Q. Consultations on the WTO’s TA and Training Plan 2006
R. Exchange of Views and Presentations on National Experiences
S. Closing Session and Evaluation
Acronyms
I. Introduction
1. The AITIC Briefing Session [note 1] for the participants of the 12 th Geneva Week for WTO Non-Resident Members and Observers (24-28 April 2006), to which the Agency’s Members were also invited, took place on 26 April 2006. Its aim was to provide an update on the negotiations under the Doha Work Programme (DWP) focussing on those issues of particular importance for the less-advantaged countries (LACs). The Geneva Week and the AITIC session were well-timed as they were held just prior to the 30 April 2006 deadline set at the Sixth Session of the WTO Ministerial Conference to agree on the negotiating modalities for agriculture and Non-Agriculture Market Access (NAMA) [note 2].
2. This report is divided into two sections: the first focuses on the AITIC Briefing; the second provides an overview of the salient events of the Geneva Week programme organised by the WTO Secretariat.
II. From Hong Kong to the April Timelines — HE Mrs Amina Chawahir Mohamed, Ambassador, Permanent Representative of Kenya
3. Ambassador Mohamed began her presentation stating that the Doha negotiations are not deadlocked even if the 30 April 2006 deadline for arriving at modalities on agriculture and on non-agricultural market access (NAMA) set by the Hong Kong Ministerial Conference [note 3] are not met. Members’ political will and commitment to the successful conclusion of the negotiations is not lacking, but given that the stakes are high, the difficulties are numerous. The problem according to her was not missing the 30 April 2006 deadline; it was the consequence this would have in holding up other areas of the negotiations, some of which are extremely important to developing countries. In her view, a crucial precondition for making progress was to maintain the transparent and inclusive approach to negotiations in the face of mounting pressure and time constraints.
4. Ambassador Mohamed estimated that the Hong Kong Ministerial Conference was not a great success but a useful step in advancing the development aspect of the DWP. For example, after Hong Kong, the LDC and African Group tabled a joint proposal containing specific elements for disciplines on food aid [note 4]. These had been taken into consideration in the communications from the EC [note 5] and the US [note 6] on the subject. Likewise, the decision to grant duty-free and quota-free market access to least-developed countries (LDCs) taken in Hong Kong now required a follow-up.
5. The presenter took the opportunity to brief participants on a meeting of African Trade Ministers that was held in Nairobi, Kenya from 12-14 April 2006. The purpose of the event was to review measures in favour of intra-African trade and the current negotiations at the WTO as well as those for the Economic Partnership Agreements (EPAs) with the European Union (EU). Representatives of Africa’s main trading partners, Brazil (on behalf of the G-20), the EC, Japan and the US also attended.
6. The floor was then opened for questions. A delegate asked whether the concerns of the African countries are being considered in the current negotiations. She replied that, in her opinion, African negotiators are doing a good job in putting their interests forward on issues such as food aid, cotton, duty-free and quota-free market access for LDCs and erosion of preferences.
III. Cotton in the Hong Kong Ministerial Declaration
A. Progress Report — Mr Eloi Laourou, Second Counsellor, Permanent Mission of Benin
7. Mr Laourou reiterated the importance of cotton for many African economies and traced the development on this issue since the launch of the Sectoral Initiative in Favour of Cotton by four countries [note 7] countries (the so-called C4) at the WTO in May 2003.
8. After the Hong Kong Conference, the C4 have tabled proposals on a formula and modalities corresponding to the mandate of the Hong Kong Declaration to reduce domestic support for cotton more ambitiously and over a shorter time period [note 8] than generally applicable in the agriculture negotiations. Mr Laourou also referred to the July Package instruction to address cotton “ambitiously, expeditiously and specifically” and insisted that this is to be applied to the de minimis and the Blue Box, in the same way as to the total Aggregate Measurement of Support ( AMS).
9. Mr Laourou concluded his statement calling upon all cotton-producing countries to support the activities of the C4, as the benefits of the outcome of the Initiative would accrue to all of them.
B. Domestic Support in Agriculture: An Outline — Mrs Marième Fall de Pérez Rubín, Counsellor, Agriculture and Commodities Division, WTO
10. Mrs Marième Fall de Pérez Rubín referred to the four categories of domestic support covered by the WTO Agreement on Agriculture (AoA): Green Box, Blue Box, Amber Box and support granted under Article 6.2 of the AoA, i.e. the Development Programmes. The Development Programmes include investment and input subsidies and support to diversification from growing illicit narcotic crops. It is exempt from reduction commitments.
11. Payments and services in the Green Box, as defined by Annex 2 of the AoA, include, support for general services inter alia for pest and disease control, marketing and promotion, research and training, infrastructural services and also direct payments such as decoupled income support, relief from natural disasters, environmental programmes and structural adjustment assistance (i.e. producer and resource retirement, investment aids). The Green Box is exempt from reduction commitments but under the DWP, the criteria for this Box will be reviewed and clarified.
12. The speaker explained that the Blue Box support covers the direct payments under production-limiting programmes and is also exempted from reduction commitments provided payments obey certain criteria: being based on fixed and unchanging areas and yields or made on 85 per cent or less of a fixed level of production or number of livestock. WTO members are negotiating additional criteria to discipline the use of this Box. In the July Package [note 9], they agreed to cap Blue Box support at 5 per cent of a member’s average total production.
13. The most trade-distorting domestic support subsidies fall under the Amber Box which is expressed as final bound total AMS. It represents the sum of trade-distorting product-specific support (for example market price support payments) plus non-product-specific support (such as water and fertiliser subsidies). The presenter stated that the Doha mandate for “substantial reductions in trade-distorting domestic support” will translate into cuts in final bound total AMS, the de minimis support [note 10] and overall levels of trade-distorting domestic support. The overall level includes the AMS, Blue Box and de minimis support. Annex A of the July Package stipulates a first instalment of a 20 per cent cut to the overall domestic support in the first year of implementation of the DWP outcome. In the Hong Kong Declaration ministers have further agreed on the thresholds for the three reduction bands for the overall cuts [note 11]. The EC, which grants the largest sums of subsidies, will be in the top band, Japan and the US in the second and all other countries in the bottom band (including developing countries). Mrs Fall de Pérez Rubín noted that negotiations have not yet determined the levels of cuts for the different bands. It is only clear that the higher bands will be subject to higher linear cuts and that developed countries with high relative levels of AMS will make an “additional effort” in reductions.
14. Concluding her statement, Mrs Fall referred the non-residents to the special and differential treatment (S&D) envisaged for developing country member. It includes longer implementation periods, lower reduction coefficients for all types of domestic support and continued access to the provisions of Article 6.2 of the AoA, i.e. the Development Programmes. Also, de minimis support payable to subsistence and resource-poor farmers is exempt from reduction and developing countries without AMS will not need to reduce overall and de minimis support.
IV. Aid for Trade: Developments to Date
A. HE Ms Claudia Uribe, Ambassador, Permanent Representative of Colombia
15. Ambassador Uribe began by highlighting the role trade can play in fostering economic growth and development. She noted that it was for this reason that trade-related assistance had been a long-standing element of overall development assistance.
16. The speaker reported that the Development Committee of the International Monetary Fund (IMF) and the World Bank in its spring 2005 session identified three problems encountered by developing countries in connection with multilateral trade liberalisation: i) loss of tariff revenue; ii) increased foodstuff prices for net food-importing developing countries (NFIDCs); and iii) preference erosion. Ambassador Uribe recalled that the initiative for increasing Aid for Trade was taken up by the Group of Seven (G7) and the Group of Eight (G8) at their respective summits, which saw pledges for substantial increases in official development assistance (ODA). The presenter noted that traditionally, Aid for Trade was conceived as trade-related technical assistance and capacity-building. Paragraph 57 of the Hong Kong Declaration widens this scope to include assistance “to build the supply-side capacity and trade-related infrastructure that they need to assist them to implement and benefit from WTO Agreements and more broadly to expand their trade”.
17. In her capacity as member of the Task Force on Aid for Trade, Ambassador Uribe briefed the participants on the status of work in this body. Convened by the WTO Director-General on 8 February 2006 upon instruction from the Hong Kong Conference, the Task Force is still in the appraisal phase. It is presently assessing existing assistance and serving as a forum for an exchange of views on needs and priorities. An important task will be to identify measures that fall under Aid for Trade and the instruments of disbursement. Aid for Trade will be focused on LDCs and low-income economies. In conclusion she referred participants to several submissions to the Task Force [note 12], some of which provide an inventory of the assistance provided on boosting developing countries’ trade capacities.
B. HE Mr Ransford Smith, Ambassador, Permanent Representative of Jamaica
18. Ambassador Smith raised two potential pitfalls of concern to developing countries in relation to Aid for Trade: i) that it is used as a “carrot”, to convince them to accept commitments beyond their capacity; ii) that it will come with a new set of strings attached in the form of new conditionalities.
19. The presenter placed Aid for Trade in the wider context of the Monterrey Consensus of Financing for Development. He pointed out that Aid for Trade is by no means new and cited an evaluation recently issued by the World Bank on its trade-related assistance [note 13]. The Bank has conceded that results in terms of export performance have not been satisfying and that insufficient attention has been paid to external environment elements and distributional outcomes.
20. In his view, two new aspects have emerged with the recent drive for Aid for Trade. Firstly, the outcomes of the Monterrey Consensus of 2002, the 2005 World Summit, the Commission for Africa Report, the Millennium Project Report, and the G-8 Summit have all acknowledged the need to step up official development assistance (ODA). Secondly, Aid for Trade features in the specific context of the DWP negotiations because most WTO members agree that trade-related funding must accompany its outcome. In the wider context of development policy, Aid for Trade must be weighed against other needs in, say, health and education. Other challenges, however, emerge specifically as a result of the outcome of WTO negotiations. Developing countries need assistance in the implementation of existing and new commitments; coping with adjustment costs (i.e. preference erosion, revenue loss, training etc.); and improving institutions and trade-related infrastructure.
21. Ambassador Smith noted that the term “trade-related” is prone to being overused. This could mean a call for according priority to a variety of measures loosely connected to trade with the effect of sidelining other important objectives of the Millennium Development Goals (MDGs). ODA resources are rising, yet will remain limited, so it is important to let developing countries make their own choices according to their needs.
22. Before concluding his statement, the speaker reported on the debates on Aid for Trade at the meeting in New York on 24 April 2006 of the UN Economic and Social Council (ECOSOC) with the International Monetary Fund (IMF), the World Bank, the United Nations Conference on Trade and Development (UNCTAD) [note 14]. General considerations were that Aid for Trade should follow a broad approach to address supply-side constraints, trade-related infrastructure, adjustment costs, and implementation of agreements. With the significant increase of Aid for Trade in the wider context of rising ODA, quality, effectiveness and enhancing country ownership will receive increasing attention from stakeholders.
23. In the following discussion, participants stressed the regional dimension of Aid for Trade, highlighting assistance programmes offered by regional organisations. Given past experience with the World Bank, some representatives expressed doubts that Aid for Trade delivered by the Bank will have more success in the future. They were particularly concerned that new means of assistance would come with more conditionalities. Delegates stressed that trade capacity-building is often sidelined in development strategies and that supply-side constraints pose the biggest problem for developing countries. Others noted that assistance is urgently needed in “getting products across the border”, i.e. in complying with standards and regulations, and pointed to the prime need to strengthen the “absorptive capacity” of developing countries, i.e. their ability to use the means of assistance in line with their national wherewithal.
24. Ambassador Uribe responded that it was difficult to imagine that new resources would be made available under Aid for Trade without conditionalities, However, she emphasised that this need not necessarily go against the interests of recipient countries. Conditions that ensure aid quality and effectiveness are favourable to all stakeholders. Ambassador Smith said that the regional approach is an integral aspect of the Aid for Trade initiative. The IMF and World Bank were instructed to look at this dimension by their Development Committee and it also features in the Millennium Development Project Report [note 15]. He took note of the priorities and needs expressed by participants to point out that the fundamental unanswered question is what falls under Aid for Trade and how broadly the concept should be defined.
V. The Small and Vulnerable Economies: The Role of the Committee on Trade and Development — Ms Kay McConney, Deputy Permanent Representative, Permanent Mission of Barbados
25. Ms Kay McConney began her presentation by recalling the mandate for the Doha Work Programme on Small Economies to “frame responses to the trade-related issues identified for the fuller integration of small, vulnerable economies into the multilateral trading system, and not to create a sub-category of WTO Members” (paragraph 35) [note 16]. She explained that the latter part of the mandate proved to be the most sensitive aspect, which is why almost no progress was made between 2002-2004 in the Committee on Trade and Development Dedicated Session (CTD-DS), the forum where the Work Programme on Small Economies is being conducted. To break the deadlock the small and vulnerable economy (SVE) proponents [note 17] of the Work Programme tabled a proposal [note 18] containing an indicative list of characteristics of SVEs. It was agreed to follow a three-step process: i) establish characteristics for identifying small and vulnerable economies; ii) consider the trade-related problems related to these characteristics; and iii) frame responses. The SVEs have been emphasising that it is the combination of the characteristics that give rise to the vulnerability of the small economies and not the individual characteristics themselves.
26. The speaker explained that the Work Programme is advancing on a two-track process: SVEs raise their concerns in the different negotiating bodies while work on framing responses continues in the CTD-DS. Paragraph 41 of the Hong Kong Declaration has reaffirmed this approach and set a deadline for providing responses no later than 31 December 2006. Ms McConney referred delegates to papers tabled in the relevant WTO bodies on agriculture [note 19], NAMA [note 20], services [note 21], fisheries’ subsidies [note 22], and subsidies and countervailing measures [note 23]. Forthcoming CTD-DS sessions will examine a submission on accession of SVEs [note 24] and revised proposals for the designation of regional institutions to assist in complying with obligations under the TBT, SPS and TRIPS Agreements [note 25].
27. Delegates discussed the concept of SVEs, especially in relation to the LDC category. Ms McConney reiterated that no creation of a new category was proposed. It was required of members to acknowledge the specific situation and resulting trade-related problems of SVEs and craft responses accordingly.
VI. Negotiations on Trade in Services: The Impact of Domestic Regulation and Specific Commitments
A. Mr Peter Govindasamy, (Singapore), Chairman, Working Party on Domestic Regulation
28. Mr Peter Govindasamy recalled the mandate on domestic regulation under Article VI.4 of the General Agreement on Trade in Services (GATS): members are to establish disciplines to prevent that qualification requirements and procedures, technical standards and licensing requirements constitute unnecessary barriers to trade in services. Ministers at the Hong Kong Conference instructed negotiators to develop a text for adoption before the end of the current round of negotiations. A basis for this undertaking will be the proposals to the Working Party and the illustrative list of elements for GATS Article VI.4 disciplines submitted by members, like those found in the Annex of the Report of the Chairman of the Working Party to the Council for Trade in Services Special Session [note 26].
29. Mr Govindasamy referred the participants to a background note on the state of play of the negotiations [note 27], which was circulated to facilitate domestic consultations, especially for non-resident members of the WTO. As Chairman of the Working Party, he has also prepared a “road map” [note 28], including specific timelines and a recommendation for members to conduct work on proposals with specific language during June 2006. He expected a draft of the consolidated text to be circulated for a first revision at the informal meeting of the Working Party on 27 July 2006.
30. The speaker made reference to the latest proposals received on domestic regulation [note 29], including one by SVEs [note 30]. In conclusion, he urged members to submit new and revised proposals as soon as possible and recommended participants to consult several documents with summaries of the thematic discussions held on the various proposals tabled on domestic regulation [note 31].
B. Mr Nicholas Niggli (Switzerland), Chairman, Committee on Specific Commitments
31. Mr Nicholas Niggli focused his presentation on scheduling and classification of services liberalisation commitments as provided for by Article XX of the GATS. To harmonise the format of the schedules and standardise terms used, WTO members in 2001 adopted Guidelines for the Scheduling of Specific Commitments under the General Agreement on Trade in Services (GATS) [note 32]. The issue was also taken up by ministers in paragraph 1 (f) of Annex C of the Hong Kong Declaration.
32. In the Committee on Specific Commitments members exchange information on their practices regarding economic needs tests (ENTs), i.e. requirements to demonstrate that an imported service cannot be provided by a domestic provider. Annex C on services of the Hong Kong Declaration stipulates removal or substantial reduction of ENTs as an objective for liberalisation under Modes 3 (commercial presence) and 4 (movement of natural persons).
33. Mr Niggli highlighted clarity, certainty, comparability and coherence, known as the four Cs as instrumental to high-quality commitments as well as reader-friendly schedules. He stressed that not only new sector commitments but particularly commitments of improved quality could substantially contribute to a balanced DWP outcome.
VII. Accession Negotiations and the Doha Work Programme: The Experience and Perspective of an Acceding Non-Resident LDC — Mr Roy Mickey Joy, Director of Trade, Vanuatu
34. Mr Roy Mickey Joy reported that Vanuatu’s accession process to the WTO, which was initiated in 1995, was suspended in 2001, mainly due to demands for liberalisation that went beyond the country’s capacities. The US in particular made such requests in the areas of import tariffs and investment, although trade and investment relations between Vanuatu and the US are practically inexistent. He pointed out that during accession negotiations, Vanuatu was asked to bind 100 per cent of its tariffs, a much higher than average level of tariff binding among WTO members. On services, Vanuatu was requested to schedule commitments for 10 out of 12 services sectors of the GATS, which by and large exceeds the commitments of most other countries.
35. The presenter also elaborated on the main obstacles encountered by Vanuatu in the accession process, such as capacity constraints and lack of human resources. Acceding to the WTO can be an unbearably costly undertaking for an LDC. For Vanuatu the administrative costs amounted to US$150,000 for the accession procedure and the country’s observer fees to the WTO amount to US$120,000. Mr Joy pointed out that this compares with the yearly budget of Vanuatu’s Department of Trade.
36. In December 2002, members adopted the Guidelines on LDC Accession [note 33]. The speaker said he would like to see more measures in favour of swift and beneficial accession of LDCs to the WTO. He suggested that the WTO Director-General’s good offices could be of help, as well as the regular submission of reports on the state of play of negotiations of LDCs to the General Council. The presenter also suggested the creation of a task force by the WTO Secretariat on technical assistance and capacity-building for acceding countries.
VIII. Time for Policy Decisions — Mr Peter Thompson, Minister, Permanent Delegation of the European Communities
37. Mr Peter Thompson presented the European Communities’ (EC) perspective on the current status of negotiations. The EC acknowledges the need for further agricultural reforms but insists that these must also be undertaken by the other big players in the multilateral trading system. Also, given the relative small weight of agriculture in international trade, he felt that more attention should be given to meaningful improvements in NAMA and services. This means cuts in applied tariffs by the larger developing countries and significant services offers. Mr Thompson stated that it was extremely difficult for the EC to make further concessions without overstepping its mandate from member countries. He said there was a possibility of the EC improving its offer on agriculture but it would need better offers in NAMA or services in return.
38. Mr Thompson reiterated the importance the EC is attaching to advance the negotiations on protection of geographical indications (GIs). Moreover, he elaborated on the outcome of the Banana dispute, which in his evaluation would cause damage to some LDCs who had benefited from the previous arrangement between the EC and the African, Caribbean and Pacific Group of States (ACP).
39. The speaker mentioned the challenge posed by the recent change in the head of the US Trade Representative (USTR); the difficulties faced by India in opening its agricultural market and by advanced developing countries in lowering industrial goods tariffs. Participants engaged Mr Thompson in a debate on these issues and were particularly interested on developments in the bilateral negotiations of the EC with African countries on the economic partnership agreements (EPAs).
IX. The Geneva Week Programme
A. Opening remarks by the Director-General of the WTO, Mr Pascal Lamy
40. Welcoming the non-resident members and observers, Mr Pascal Lamy, Director-General (DG) of the WTO, delivered a brief overview on the state of affairs in the DWP negotiations. He conceded that the 30 April 2006 deadline for modalities in agriculture and NAMA set at Hong Kong was to be missed, but assured non-residents that negotiations are not deadlocked. He presented his assessment of the issues that need to be settled in the coming weeks. Given the current situation, he said there was no point in fixing another deadline or convening a meeting at ministerial level. However, he mentioned that, given the end-2006 deadline for concluding the negotiations, modalities would have to be agreed to by mid-June 2006; the end of July (which has been the deadline fixed in 2004 and 2006) would be too late. Mr Lamy encouraged the non-residents to take advantage of the Geneva Week to make their contributions in advancing their interests.
B. Introductory Remarks by the Chairman of the General Council, HE Mr Eirik Glenne (Norway)
41. The Chairman of the General Council, HE Mr Eirik Glenne, discussed the development aspect of the current round of negotiations. The outcome of the Hong Kong Ministerial Conference regarding, inter alia, Aid for Trade and special and differential treatment (S&D) for LDCs proves that this dimension of trade talks is taken ever more seriously.
42. In view of the workload that remains to be tackled and the timelines [note 34] that needed to conclude the DWP before the expiry of the US fast-track negotiating authority in mid-2007, Ambassador Glenne said that an active participation of all members will be crucial.
C. Agriculture and Cotton — Ambassador Crawford Falconer (New Zealand), Chairperson of the Special Session of the Committee on Agriculture
43. Ambassador Crawford Falconer stated that though some progress since the Hong Kong Ministerial Conference has been made, completing the 20-30 per cent of outstanding work towards agreement on agriculture modalities would require meticulous and intense work over the next six weeks. Market access and the Blue Box disciplines will be at the centre of such efforts. The Chairman said he would regularly table reference papers outlining the approaches suggested for making progress.
44. On cotton, Ambassador Falconer noted that the debate has moved forward, but no agreement has as yet emerged on the more ambitious and expeditious reduction in domestic support for cotton which is prescribed in paragraph 11of the Hong Kong Declaration.
D. Status of the Negotiations on Non-Agricultural Market Access — HE Mr Don Stephenson (Canada), Chairman of the Negotiating Group on Market Access
45. Ambassador Stephenson indicated that since the Hong Kong Ministerial Declaration provides for a non-linear tariff reduction formula under NAMA, the two options on the table are a simple Swiss formula with two coefficients, one for developing and the other for developed members, or the ABI (Argentina, Brazil and India) proposal [note 35].
46. On the treatment of unbound tariffs, a non-linear mark-up approach to set the base rates for starting the reduction of tariff was agreed at Hong Kong. He indicated that the percentage mark-ups under discussion (ranging from 5 to 30) would not result in a great difference, given that a non-linear tariff reduction formula will be employed. For the negotiations on sectorals, he considered the end of April deadline for submitting proposals as “soft”, meaning that proposals received as late as July may be considered.
47. No clarity exists on whether the requirement for LDCs to “substantially increase their level of binding commitments” (paragraph 9 of the “NAMA Framework”) will be determined as a percentage figure, and whether such tariff lines will be subject to reductions. On paragraph 8 flexibilities for developing countries, the speaker explained that the reference to not excluding entire HS chapters can only be interpreted in a strictly legal manner; in this context, presumably lower cuts could be made to an entire HS Chapter minus one tariff line, providing they amount to at least 50 per cent or more of formula cuts. On the exemption of countries with low levels of binding coverage from formula cuts, he reported that the threshold has been set at 35 per cent, making 12 countries eligible [note 36]. Disagreement remains on the level of binding that is expected from these countries in return.
48. Ambassador Stephenson referred to other issues that remain controversial in the Negotiating Group, such as the treatment of small and vulnerable economies SVEs, newly-acceded members (NAMs) [note 37] and erosion of preferences. He said he intended to focus work of the May meetings on the types of flexibilities under NAMA.
E. Briefing on the Special Session of the Council for Trade in Services — HE Mr Fernando de Mateo y Venturini (Mexico), Chairman of the Special Session of the Council for Trade in Services
49. Ambassador Fernando de Mateo y Venturini stated that a gap in the commitments to liberalising trade in services was widening between members and those developing countries and transition economies that have acceded to the WTO after 1995, since the latter have had to undertake much deeper liberalisation commitments.
50. In the Ambassador’s view the momentum in the current negotiations was not very impressive. Offers submitted so far are not very ambitious and their quality needs to be improved in terms of new sector inclusions and improvements need to be enhanced. Moreover, the participation of developing countries remains uneven. Little progress has been made in the negotiations on rules for emergency safeguard measures and government procurement, on the definition of subsidies in services, and on the removal of exemptions to the most-favoured-nation (MFN) principle.
51. The presenter briefly discussed the services parts of the Hong Kong Declaration and highlighted the flexibilities available to developing countries in terms of less ambitious commitments to cater for their national and development objectives. The Ambassador also recalled that LDCs were not required to make any commitments in the current round. In relation to negotiating approaches, he pointed out that it was agreed to pursue plurilateral request-offer negotiations in addition to the bilateral ones. Results of such negotiations will be extended on an MFN basis and will benefit all WTO members. Considering the experience of previous rounds, the Ambassador concluded by saying that he was optimistic that negotiations on trade in services will pick up momentum again.
F. Briefing on the Negotiating Group on Trade Facilitation — Mr Tony Miller (Hong Kong, China), Chairman of the Negotiating Group on Trade Facilitation
52. According to Mr Tony Miller, negotiations on trade facilitation have been advancing well since the Hong Kong Ministerial Conference. Work focuses on improving GATT Articles V, VIII and X and on technical assistance and capacity-building. Some international organisations are currently working on precise figures on costs related to trade facilitation measures. Two meetings of the Negotiating Group have been scheduled for May and July 2006 and a draft compilation of proposals received so far will be presented to the July meeting.
53. Given the technical nature of the issues under consideration in these negotiations, Mr Miller said that more input from officials with specialist expertise on customs issues would be desirable. He also advised participants that the EU has made a fund of €2 million available for this purpose.
G. Briefing on the Negotiating Group on Rules — Mr Jesse Kreier, Counsellor, Rules Division, WTO and Ms María Carmen Pont-Vieira, Counsellor, Trade Policies Review Division, WTO
54. Mr Jesse Kreier referred participants to the instructions of ministers contained in Annex D of the Hong Kong Declaration aimed at accelerating the negotiations on rules. On the Antidumping (AD) and the Subsidies and Countervailing Measures (SCM) Agreements, Mr Kreier explained that the Negotiating Group needs to clarify details on a variety of proposals. 22 of them are on AD, five on subsidy disciplines and four on fisheries’ subsidies.
55. On regional trade agreements (RTAs), Ms María Pont-Vieira said that considerable progress has been made but the deadline for submitting a draft provisional decision on transparency of 30 April 2006 would be missed. One question that remains to be resolved is whether the CTD or the RTA Committee will oversee the RTA transparency process for developing countries. Another relates to whether the transparency mechanism will also be applied to developing country trade agreements notified under paragraph 2 of the Enabling Clause. Discussions continue on revising GATT 1994 Article XXIV to clarify the term “substantially all the trade” in the definitions of a customs union and a free trade area. Under consideration is also an extension of the period of implementing RTAs for developing countries.
H. Special and Differential Treatment — HE Mr Burhan Gafoor (Singapore), Chairperson of the Special Session of the Committee on Trade and Development
56. Ambassador Burhan Gafoor (Singapore), Chairperson of the Special Session of the Committee on Trade and Development (CTD-SS), referred to an Informal Note [note 38] on the status of the 88 proposals submitted to make special and differential treatment (S&D) provisions in WTO agreements more effective [note 39]. Their review is to be completed by December 2006 according to paragraph 36 of the Hong Kong Ministerial Declaration.
57. The Committee is acting as coordinator for the 38 category II proposals, which need to be addressed in other negotiating bodies. Notwithstanding the 27 proposals agreed to in principle in Cancun, plus the five decisions contained in Annex F of the Hong Kong Declaration, the Committee needs to address 16 outstanding proposals [note 40]. Out of these, members have agreed to give priority toeight category I proposals. Ambassador Gafoor noted that good progress has been made on five proposals relating to SPS and import licensing procedures. He added that given the time constraints, it is necessary to further single out the proposals to be treated with priority.
I. Briefing on the Regular and Dedicated Sessions of the Committee on Trade and Development — Mr Faizel Ismail (South Africa), Chairman of the Regular and Dedicated Sessions of the Committee on Trade and Development
58. Mr Ismail referred participants to a revised note [note 41] by the WTO Secretariat on the developmental aspects of the DWP negotiations, which the Committee on Trade and Development (CTD) is mandated to identify according to paragraph 51 of the Doha Declaration. African countries have put forward “tentative ideas” [note 42] as a basis for discussions on how to address commodity price declines and volatility, raised in paragraph 55 of the Hong Kong Declaration. The speaker also informed participants that the EC is due to notify its revised Generalised System of Preferences (GSP) to the CTD at its next regular session on 11 May 2006 [note 43]. Upon request from the LDC Group, the review of measures taken to implement the decision on duty-and quota-free access for LDCs of Annex E of the Hong Kong Declaration has been added as a standing item in the work programme of the CTD in 2006.
59. On the CTD-DS Mr Ismail stated that work on the next steps in the Work Programme on SVEs is advancing well. The references in the Hong Kong Declaration (paragraphs 21, 26, 41 and paragraph 8 of Annex C on Services) prove that the proponents have accomplished their objective of raising awareness among members of the WTO.
J. 14 th Session of the Committee on Trade and Development in Dedicated Session, 26 April 2006
60. The CTD-DS held its fourteenth Session on 26 April 2006, in pursuit of its mandate to advance the Doha Work Programme on Small Economies, that is to “frame responses to the trade-related issues identified for the fuller integration of small, vulnerable economies into the multilateral trading system” (paragraph 35 of the Doha Declaration). Chaired by Mr Faizel Ismail (South Africa), the CTD-DS follows a two-track approach for the Work Programme. It is enacting a monitoring and coordinating role for proposals submitted to relevant bodies, while continuing its work in the Dedicated Session.
61. The CTD-DS has received proposals on accession [note 44], TBT, SPS and TRIPS [note 45]. The last three proposals seek to designate regional bodies in the delivery of technical assistance in complying with obligations under the respective Agreements. The proponents of the three proposals were requested to submit draft texts to the General Council in July 2006. The CTD-DS also examined papers that have been submitted to the Committee on Agriculture [note 46], the Negotiating Group on Market Access [note 47], the Negotiating Group on Rules [note 48], and the Council for Trade in Services [note 49]. Some larger developing countries argued that the question of eligibility is still not settled; in particular they opposed a set list of countries eligible for new rules. The proponents responded that this would be addressed in forthcoming text-based proposals. Disagreement also prevailed on the monitoring role of the CTD-DS. The SVEs have submitted two communications [note 50] in this context providing an overview of the main elements of proposals recently submitted. Members disagree on the role the Chair of the CTD-DS should play in this regard.
K. Briefing on the Committee on Sanitary and Phytosanitary Measures — Mr Gregg Young (US), Chairman of the Committee on Sanitary and Phytosanitary Measures
62. Mr Gregg Young briefed participants on the outcomes of the second review on the implementation of WTO Agreement on Sanitary and Phytosanitary Measures (SPS) with a focus on i) equivalence; ii) technical assistance; and iii) special and differential treatment (S&D).
63. Mr Young recalled that the Committee has clarified some aspects of a decision taken on equivalence in 2001 [note 51] pertaining to the facilitation of recognition of equivalence. He also mentioned that guidelines on equivalence recognition have been developed by the Codex Alimentarius Commission, the World Organisation for Animal Health (OIE) and the Interim Commission on Phytosanitary Measures (ICPM).
64. The speaker reported on some initiatives taken by international organisations, such as FAO, the OIE, the WHO, the World Bank and the WTO to support developing country delegations to improve their participation in institutions working on SPS. Although the SPS Committee is registering an increase in the participation of developing countries, much work remains to be done to involve LDCs more actively.
65. On technical assistance, Mr Young explained that the first results of the Standards and Trade Development Facility (STDF) are due in the first half of 2006. The STDF, which is administered by the WTO, was established in 2002 to promote a more efficient use of resources in SPS-related activities. He referred participants to a database that provides information on SPS-related technical assistance and capacity-building programmes [note 52].
66. Many participants asked for more information on technical assistance on SPS delivered by the WTO. Mrs Gretchen H. Stanton, Secretary of the SPS Committee, WTO responded by encouraging developing country delegations to submit information on their needs. She noted that the Division had a very poor response on questionnaires circulated for this purpose. At the moment, the information flow was going too much in one direction: only donors report on what they supply.
L. Briefing on the Special Session of the Council for TRIPS —Ambassador Manzoor Ahmad (Pakistan),Chairman of the Council for TRIPS Special Session
67. Ambassador Ahmad described the status of work on a multilateral system of notification and registration of geographical indications (GIs) for wines and spirits which WTO members are supposed to establish according to Article 23.4 of the TRIPS Agreement.
68. He explained that the GI issue divides WTO members along unconventional lines. The “Old World” parties, such as the EC and Switzerland hold high stakes in multilateral protection of GIs, while “New World” countries, Australia, Canada, US and others, also referred to as the “Joint Proposal Group”, see less merit in such a system. Ambassador Ahmad reported that only few developing countries are active on this matter. A paper [note 53] by the WTO Secretariat outlines the positions in the Council. Two key issues are debated: whether legal effects at the international level should apply to all members or only to those opting to participate in the system and the extent to which GI protection should have legal effects at the national level. On S&D, the Joint Proposal Group seeks to make participation voluntary so that developing countries could opt out of the system thus incurring no extra costs. The EC and Switzerland envisage S&D for developing countries within the system, for example in terms of technical assistance. In his capacity as Chairman, Ambassador Ahmad has informed the Trade Negotiations Committee (TNC) [note 54] of his intention to table a working paper in July 2006.
M. Briefing on the Committee on Rules of Origin — Ms Vera Thorstensen (Brazil), Chairperson of the Committee
69. Ms Vera Thorstensen explained that the Committee on Rules of Origin (CRO) is conducting a harmonisation work programme (HWP) on non-preferential rules of origin set up by the Uruguay Round Agreement on Rules of Origin. In view of the complexity of outstanding issues in the HWP, she said it would be difficult to meet the deadlines established by the General Council (July 2006 for core policy issues and December 2006 for technical issues).
70. In her presentation, she described the criteria used to determine the origin of a product and highlighted the challenges related to their practical implementation. She cited a number of examples, in particular those of relevance to small economies (i.e. fish).
71. Preferential rules of origin apply to bilateral or regional trade agreements granting tariff preferences. They are often complex and obstruct access to developed country markets. Since they are not part of the CRO’s mandate, the parties affected can only push bilaterally for simplification and compatibility of the existing 350 systems of preferential rules of origin. However, the issue was taken up by the decision in Annex F of the Hong Kong Declaration on duty- and quota-free market for at least 97 per cent of products originating from LDCs. It states that preferential rules of origin applicable to these imports shall be “transparent and simple, and contribute to facilitating market access”.
N. Briefing on the Special Session of the Committee on Trade and Environment — Ambassador Toufiq Ali (Bangladesh), Chairman of the Committee on Trade and Environment Special Session and Ms Marie-Isabelle Pellan, Secretary of the Committee, WTO
72. Ambassador Ali recalled that the Hong Kong Declaration (paragraphs 30-32) reiterated the Doha mandate for negotiations to enhance “mutual supportiveness of trade and environment”. He described some of the positions in the CTE Special Session on the relationship between WTO rules and trade-related commitments set out in multilateral environmental agreements (MEAs) [note 55]. A central task is to avoid any potential conflict between the two in the future. On information exchange (paragraph 31(ii) of the Doha Declaration), Ms Marie-Isabelle Pellan cited some examples of collaboration between WTO and MEAs and stated that members need to determine whether such arrangements should be more formal.
73. On the third part of the mandate, the liberalisation of environmental products and services, Ambassador Ali noted that not a single developing country has submitted a list of proposed items. Some members have advocated a “living list” that can be updated and expanded. Some members are still advocating a project-based approach whereby products for certain environmental purposes (i.e. air pollution control, water and waste management, energy saving) would be temporarily liberalised.
O. Briefing on the Working Group on Trade, Debt and Finance — HE Mr Peter Brño (Slovakia), Chairman of the Working Group
74. Ambassador Brño recalled the mandate of the Working Group on Trade, Debt and Finance (paragraph 36 of the Doha Declaration and paragraph 42 of the Hong Kong Declaration). Members are instructed to craft measures to respond to the problems of external debt and financial and monetary instability which constrain developing countries’ capacities to benefit from trade liberalisation.
75. The Chairman stated that the level of commitment to this work was limited, as illustrated by the fact that most working papers were submitted to the Working Group, either by the WTO Secretariat or other international organisations. The ACP has proposed to establish a regular Committee to address those matters which developing countries have raised, but which have not been addressed by the Working Group [note 56]. This is opposed by Colombia, the EC and US, arguing that these issues fall under the mandate of the CTD. The Ambassador said that he hoped that members would revise their positions so as to allow some level of convergence to develop at forthcoming meetings of the Working Group in July 2006.
P. Briefing on Aid for Trade — Ambassador Mia Horn Af Rantzien (Sweden), Chairperson, Aid for Trade Task Force
76. Ambassador Horn Af Rantzien briefed participants on the status of work in the Task Force after three sessions. She said that work on the scope of measures under Aid for Trade is guided by paragraph 57 of the Hong Kong Ministerial Declaration, which includes supply-side constraints, trade-related infrastructure but also assistance for adjustment and implementation assistance.
77. In the current phase, the Task Force is focusing on an inventory of trade-related assistance. There is a general perception that trade often has too low a profile in national development strategies, in particular in Poverty Reduction Strategy Papers (PRSPs). It was found that there is a general lack of awareness among donors and beneficiaries of the potential of trade when fine-tuned with other economic and development policies. Moreover, the speaker highlighted that LDCs receive very little trade-related assistance in relation to their needs. Another gap that was identified during the stocktaking of what is in place is a weak regional approach to Aid for Trade.
78. Ambassador Horn Af Rantzien noted that convergence is developing on some points, such as to make Aid for Trade user-friendly, demand-driven and to follow a flexible and country-based approach which achieves a strong sense of ownership within the beneficiary country. Monitoring and evaluating the effectiveness of activities will be an integral part of Aid for Trade. There is wide agreement that the private sector needs to be closely involved in the initiative. A recurrent theme in the discussions of the Task Force is how Aid for Trade can be used to ensure coherence between trade and development policies on a national level but also on the national, sub-regional, regional, and global levels.
79. A number of participants enquired if the resources that will be made available really represent are really additional. Others raised the problem of country-eligibility and coverage in the Aid for Trade debate.
80. Ambassador Horn Af Rantzien reiterated the mandate from Hong Kong for members and the Director-General (DG) to secure “additional resources”. She also referred participants to the pledges made by donor countries in 2005, to increase ODA overall, and Aid for Trade in particular. It is widely agreed that LDCs should be the primary target of new assistance mechanisms. Work on enhancing the Inetgrated Framework (IF) is under way in the IF Task Force. As the IF is focused on LDCs, discussions are taking place in the Task Force on Aid for Trade on how to extend assistance to low-income economies and through which mechanisms.
Q. Consultations on the WTO’s Technical Assistance and Training Plan 2006 — Mr Paul Rolian, Director of the Institute for Training and Technical Cooperation
81. Mr Paul Rolian discussed the WTO’s Annual Report on Technical Assistance and Training [note 57]. He reported that in 2005, Africa and the LDCs were a priority target of assistance with a 38 per cent and 40 per cent share respectively of the total number of activities. He highlighted the more flexible approach in the application procedure: applicant countries can now submit their requests to the Institute at any time during the year.
82. On the Technical Assistance and Training Plan 2006 [note 58], Mr Rolian highlighted the Netherlands Trainee Programme [note 59] and the WTO Trade Reference Centres and National Enquiry Points, which provide capital-based officials access to WTO resources. Some Brussels-based non residents expressed their concerns of not having enough access to technical assistance. Mr Paul Rolian made clear that the capitals are given priority due to their responsibilities in providing policy recommendations.
R. Exchange of Views and Presentations on National Experiences
83. The aim of this session was to provide an opportunity for country representatives to elaborate on constraints their governments are facing in effectively participating in the WTO negotiating process.
84. Despite a strong political will and important interests in the negotiations, the lack of financial resources for establishing a permanent mission to the WTO in Geneva constitutes the most important obstacle. Some governments are now planning to establish regional missions in Geneva, so that they can share their scarce resources.
85. Many participants highlighted the lack of human resources and the expertise required for understanding, implementing and benefiting from WTO Agreements. In this context, participants emphasised the need for enhanced technical assistance and capacity-building activities. Other issues, raised by the delegates, included supply-side constraints and lack of trade-related infrastructure. They highlighted the importance of Aid for Trade and hoped that an appropriate mechanism will be found for its operationalisation.
S. Closing Session and Evaluation of the 12 th Geneva Week — HE Ms Valentine Sendayoye Rugwabiza, WTO Deputy Director-General and Mr Alberto Campeas, Director, Development Division, WTO
86. In her closing statement Ambassador Rugwabiza noted that WTO negotiations have reached a critical juncture due to the failure to comply with the 30 April 2006 deadline established by Ministers at Hong Kong. Strong determination was now required from all parties if the Doha Round were to be brought to a satisfactory conclusion. The proactive participation of non-resident members and observers in the events of the Geneva Week proved that the interest and willingness to engage on the issues under negotiation exists. She said that the WTO Secretariat had sought to design a Geneva Week programme that took account of suggestions for improvements made in the evaluations of the last Geneva Week in November 2005.
87. Many delegates stated they were overwhelmed with the amount of information to be processed and followed-up in dealing with WTO matters. They suggested supplementing the number of participants in the Geneva Week. A representative asked if resources could be made available to finance the participation of regional bodies in technical assistance activities. Some said that the information on developments at the WTO should be more concisely summarised and centred on the relevant aspects. Others felt that consultation with participants on logistical and travel arrangements could be better organised.
88. Ms Rugwabiza pointed out that a decision to increase funding rests with members through the Budget Committee of the General Council. Moreover, she believed that members were unlikely to review their decision on financing regional organisations’ participation in technical assistance. As a former representative of a small country facing resource constraints in its representation in Geneva, she was aware of the problem of struggling with an oversupply of information. On the other hand, the WTO Secretariat is faced with the challenge to provide concise yet comprehensive information. She referred to a rather short document [note 60] containing a good overview of the development aspects of the issues under negotiation.
List of Acronyms
ABI: |
Argentina, Brazil and India |
ACP: |
African, Caribbean and Pacific Group of States |
ACWL: |
Advisory Centre on WTO Law |
AD: |
Antidumping |
AMS: |
Aggregate Measurement of Support |
AoA: |
Agreement on Agriculture |
CRO: |
Committee on Rules of Origin |
CTD: |
Committee for Trade and Development |
CTD-DS: |
Committee for Trade and Development in Dedicated Session |
CTD-SS: |
Committee for Trade and Development in Special Session |
CTE: |
Committee on Trade and Environment |
CTG: |
Council for Trade in Goods |
DG: |
Director-General |
DWP: |
Doha Work Programme |
ECOSOC: |
Economic and Social Council of the United Nations |
EC: |
European Communities |
ENT: |
Economic Needs Test |
EPAs |
Economic Partnership Agreements |
EU: |
European Union |
G7: |
Group of Seven |
G8: |
Group of Eight |
G20: |
Group of Twenty |
GATS: |
General Agreement on Trade in Services |
GATT: |
General Agreement on Tariffs and Trade |
GIs: |
Geographical Indications |
GSP |
Generalised System of Preferences |
HWP: |
Harmonisation Work Programme |
ICPM |
Interim Commission on Phytosanitary Measures |
IF: |
Integrated Framework |
IGO: |
Intergovernmental Organisation |
IMF: |
International Monetary Fund |
LACs: |
less-advantaged countries |
LDCs: |
Least-Developed Countries |
LLDCs: |
Landlocked Developing Countries |
MDGs: |
Millennium Development Goals |
MFN: |
Most-Favoured Nation Treatment |
MEAs: |
Multilateral Environmental Agreements |
MTS: |
Multilateral Trading System |
NAMA: |
Non-Agricultural Market Access |
NFIDCs: |
Net Food Importing Developing Countries |
NTBs: |
Non-Tariff Barriers |
ODA: |
Official development assistance |
OECD: |
Organisation for Economic Co-operation and Development |
OIE: |
World Organisation for Animal Health (OIE) |
PRSPs: |
Poverty Reduction Strategy Papers |
RAMs: |
Recently-acceded members |
RTAs: |
Regional Trade Agreements |
S&D: |
Special and Differential Treatment |
SCM: |
Subsidies and Countervailing Measures |
SPS: |
Sanitary and Phytosanitary Measures |
STDF: |
Standards and Trade Development Facility |
STEs: |
State Trading Enterprises |
TBT: |
Technical Barriers to Trade |
TNC: |
Trade Negotiations Committee |
TRIPS: |
Trade-Related Aspects of Intellectual Property Rights |
US: |
United States |
WTO: |
World Trade Organization |
|
