WTO: 2006 NEWS ITEMS
Tuesday, 28 March 2006
TRADE NEGOTIATIONS COMMITTEE
“The moment of truth is fast approaching” — Lamy
Director-General Pascal Lamy, in his introductory statement to the Trade Negotiations Committee on 28 March 2006, reminded members of the end-April deadline for establishing modalities in agriculture and industrial products, and stressed that “the moment of truth is therefore fast approaching — we do not have time to waste”.
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Lamy’s speeches
Statement by Pascal Lamy
I would like to welcome delegations to the twenty-fourth meeting of the
Trade Negotiations Committee.
Since our last meeting on 7
February, intensive activity has been taking place at various levels
across the whole spectrum of the DDA. Our work here in Geneva has been
complemented by a number of initiatives among some Members aimed at
trying to take our work forward. This work is both useful and necessary,
as I think all participants understand. However, it is also clear that
progress made in these informal contacts must be brought back to the
multilateral forum for all to consider.
One such initiative was the exercise in simulations of the effect of
different formulae and coefficients in Agriculture and NAMA which was
undertaken by a number of Members. I understand that these simulations
have now been shared with the wider membership. I believe they are an
important contribution to clarifying the impact of the choices that we
face. As I have said in the past, we in the secretariat stand ready to
help any country conduct similar kind of simulations provided we are
given the numbers.
Just over two weeks ago I was invited to attend an informal gathering in
London, where Ministers from six Members were meeting to look at some
key issues — the harder nuts to crack, if you like — to try to help
progress in our work here.
As I always do in these cases, I made it clear that I was accepting the
invitation only on the basis that this meeting was in no way a
decision-making forum, that only the entire membership in Geneva could
take decisions, and that I had a duty to report back to the wider
membership following the meeting in the interests of transparency.
The focus of the meeting was mostly on narrowing gaps in numbers and
some elements of disciplines in three key elements of the modalities —
Agricultural Domestic Support, Agricultural Market Access and
Non-Agricultural Market Access. My feeling is that it was useful in
terms of discussing numbers and seeing how to narrow them, as well as
testing zones of possible convergence. You will all be aware that no
major move was made on any side — not that this was the purpose of the
meeting — but I believe the picture of what a final deal could look like
is starting to appear.
The key question is how to reach the right level of ambition on the
triangle of issues, which will serve as benchmark for the remainder of
the issues on the agenda. This level of ambition is the result of both
the cuts and flexibilities in all three elements. On the cuts, the
question is how much should it affect applied rates over and above cuts
at bound level, both on domestic support as well as on market access and
how should this affect developed as well as developing countries. On
flexibilities, it is a question of precision on parameters such as the
new blue box, de minimis, sensitive and special products, the special
safeguard mechanism, paragraph 8 flexibilities as well as possibly other
specific cases, and how should this affect developed as well as
developing countries.
In sum, the question is how to make sure that the cuts, both in
subsidies and in tariffs, are a multiple of the Uruguay Round results,
it being given that the flexibilities must not water down these
multiples.
The intense activity which has taken place since our February meeting
has allowed us to move from generalities, to talking numbers and texts,
which is exactly what we need right now. For the texts, we are getting
closer to real textual negotiations. A good example of this is the new
paper on Food Aid submitted to the Agriculture Special Session by the
African and LDC Groups, the recent G-33 paper on the special safeguard
mechanism or the G-20 paper on green box just to cite some examples.
On the key numbers, we are nearing a more clearly delineated range of
possibilities and their implications. But some very big decisions remain
to be taken, and that is the challenge facing us now.
As you know, meetings took place last week in the negotiating groups on
Agriculture and NAMA, and we will be hearing reports from the respective
Chairs very shortly. First, though, it would be useful to take a broader
look at progress across the DDA beyond the triangle. As we heard at our
last TNC meeting, our aim is now to move “in concert”, so it is
important to keep our eyes on the perspectives for the work in all areas
over the next few weeks.
In the Services negotiations, since our last meeting plurilateral
requests have been tabled following the calendar adopted in Hong Kong.
These requests provide a good basis for the preparation of offers to be
presented by 31 July. In the meantime some Members believe it would be
useful to hold a cluster of meetings mid-May to ensure a rhythm between
tabling of plurilateral requests and preparation of offers.
On Rules, in the RTA area of these negotiations, the Chairman's
papers on both RTA transparency and systemic issues have provided some
good impetus to the work. In the Anti-dumping/Subsidies area, we are
should have proposals with draft legal text on all issues on the table
in the near future. A number of proposals have also been recently tabled
on fishery subsidies which have given an impetus to this part of the
rules negotiations.
Similarly, we must quickly develop a more complete picture of the issues
that could be the basis of a final agreement in the negotiations on
Trade Facilitation, Trade & Environment, TRIPS and
Dispute Settlement, although we know dispute settlement is not
part of the single undertaking. In some of these areas, this will
involve the rapid tabling of proposals, or revisions of earlier
submissions.
On Cotton, the establishment of modalities for the Agriculture
negotiations is, of course, key. I probably do not need to remind you
that Ministers have instructed that Cotton be treated ambitiously,
expeditiously and specifically, within the Agriculture negotiations and
through the Sub-Committee on Cotton. On the development assistance
aspects of cotton, I convened a meeting of my Informal Consultative
Framework on 16 February and reported on the progress made then to
Members at the Sub-Committee on Cotton on 2 March. A further report on
progress was made at the Sub-Committee meeting which took place
yesterday.
In the area of S&D, we must start to move towards points of
convergence very soon, including on the implementation of the Hong Kong
decisions for LDCs, where we have a first paper on the table on rules of
origin to be applied in the duty free quota free context.
On preference erosion and in light of the discussions we had at
our last meeting, the Secretariat is organizing a seminar on the erosion
of preferences in the areas of Agriculture and NAMA which will be held
on 3 April.
I would also like to review progress in some of the other areas of our
work under the DDA, even if they are not strictly speaking under the TNC,
so that we can develop a good overall picture of where we should be in
the coming weeks and months.
On issues related to Small Economies, it is important that we
continue to monitor progress in other areas of negotiations, in
particular Agriculture and NAMA, with aim of providing responses to
these issues.
On Aid for Trade (A4T), our work is progressing well. In my
consultations on securing additional financial resources for A4T, there
are some good ideas on the table and we are working towards convergence
on common positions. The Task Force has now met twice, and discussed
definitional issues, the scope of A4T, current flows and future trends.
The Task Force will move on to discuss needs and available mechanisms
for operationalizing A4T.
On the Integrated Framework (IF), the work is very much on track.
The Task Force will shortly finalize its report containing the
recommendations on an enhanced IF. Once these recommendations have been
considered by the IF managing body, they will be submitted to the
membership in the IF Steering Committee in early May.
On all of these fronts — the issues within the Single Undertaking and
those outside — I am continuing my consultations with delegations here,
including with the various groupings, and with officials in capitals. I
am also continuing to work in close cooperation with the General Council
Chairman and the Chairs of the negotiating groups to ensure coordination
across our work. Let me underline the need to offer our Chairs all the
support we can over the coming weeks. But let me also repeat what I said
at the last TNC — this remains a negotiation among you, the
participants.
I would encourage you to step up contacts among yourselves, at every
level. You all know you will have to move, and now is the time to
explore with your partners the margins for manoeuvre which you all have.
We have 33 days to go to establish modalities. The moment of truth is
therefore fast approaching. We do not have time to waste.
Before Hong Kong I recommended and you all agreed that we recalibrate
our ambition for the Ministerial Conference, without compromising the
overall ambition of the round. Today I believe we would be making a huge
collective mistake if we thought we could postpone the establishment of
modalities by the end of April. Backloading the three key areas of
agriculture domestic support and market access in agriculture and
industrial products is in my view a recipe for failure. These three
areas hold the key to open the door to the many other issues which also
need to fall into place to conclude this Round by the end of the year:
remember 279 days to go to the end of 2006.
And let us not forget that the decisions to be taken are multilateral
ones in which all the membership must share, and that the process of
consideration at that level takes time. All participants must factor
this into their planning. We need significant progress among key players
on key issues, but it will not be enough for a small number of Members
to suddenly arrive with a piece of paper in their hands on 30 April. The
no surprises principle remains as valid as it was before Hong Kong.
I will now report on my work on Implementation. As requested by
Ministers in Hong Kong, I have intensified my consultative process on
all outstanding implementation issues under paragraph 12(b) of the Doha
Ministerial Declaration, without prejudice to the positions of Members.
In this process, I have been assisted by a number of the Chairpersons of
concerned WTO bodies acting as my Friends and two of my Deputy
Directors-General, Valentine Rugwabiza for TRIMs issues and Rufus Yerxa
for the issues of GIs and TRIPS/CBD.
Overall, I think the process has been reinvigorated with a good level of
engagement by delegations. In some areas there seems to be growing
clarity on the interests of Members and better identification of key
issues for progress. I will now provide an update on where we are in
each area.
As you are aware, on the issues of GI extension and TRIPS and
CBD, Rufus Yerxa has been holding intensive informal consultations
on my behalf. He held open-ended meetings on 17 February and on 15, 16,
21 and 23 March, as well as meeting with delegations in other formats.
In each area, a list of points and questions has been drawn up, on Mr.
Yerxa's own responsibility but on the basis of inputs from delegations.
They have served to facilitate what has proved to be an organized and
intensive exchange of views. Notwithstanding differing positions on the
mandate, delegations have actively engaged on the substance of the
issues and of the proposals and approaches put forward.
On the issue of GI extension, the consultations have only covered half
of the questions and issues identified by delegations as requiring
attention, and further time will be required to complete this process.
Although I believe the discussion has enabled a deeper understanding of
the concerns of delegations, the positions of the more active
participants in the discussion remain essentially unchanged and
polarized, between those who support GI extension and those opposed.
There are also a fair number of less active delegations following the
work closely with a view to assessing their own national interests in
the matter. Among the key issues on which positions remain divided are:
whether the current level of protection for GIs for products other than
wines and spirits under Article 22 of the TRIPS Agreement is or is not
sufficient for protecting such GIs; the implications of extension for
other producers that have been using the terms in question in their own
market and in third country markets; and the extent to which extension
of the exceptions provisions of Article 24 would meet concerns on this
count. One of the aspects mentioned as making it difficult to make
progress is the interrelationship perceived by some delegations between
the GI extension initiative and other initiatives on the table on GIs
elsewhere in the WTO.
On the issue of TRIPS and CBD, all the points in the list drawn up have
been covered in the consultations. While, once again, positions have
remained essentially unchanged, the consultations have, I believe,
facilitated a more clear cut identification of the points of divergence
and convergence and of the key policy questions that remain to be
decided. On this issue, there is perhaps a somewhat more discernible
spectrum of views than on that of GI extension — with, on the one hand,
the patent disclosure proposal put forward by a group of developing
countries, with wide support from other developing countries, aimed at
avoiding erroneous patents and facilitating compliance with national
access and benefit sharing regimes and, on the other, the view that the
case has not been made that a proposal of this sort is either necessary
or appropriate and that these shared objectives can be most effectively
realized in other ways without involving the patent system. In between
these two positions, support has been expressed for a more limited
patent disclosure requirement at the international level, restricted to
the origin or source of genetic material and related traditional
knowledge and without substantive implications for patentability. My
sense is that, notwithstanding these different positions, there is a
general willingness to continue to engage in fact-based discussions on
how the shared objectives in this area could be most effectively
realized.
The intensified consultations that have taken place have provided a good
basis for making progress towards a narrowing of differences; but that
progress remains to be made. It will take further work in good faith on
the part of all delegations to do this. To this end, I am asking Rufus
Yerxa to continue his consultations using various formats with a view to
exploring how to move forward on the key policy issues, and I will
report to you again in April on the progress that has been made.
On the other TRIPS proposals, I have previously reported that no Member
had taken up the opportunity provided by the TRIPS Chair to pursue any
of these matters. I now understand that the African Group has indicated
that it intends to reactivate its proposals on the table and it is
working on this.
On the Balance of Payments area, a further consultation has been
held but there has been no change on this issue since before Hong Kong.
There still remains a sizeable gap between the positions of the
proponents and opponents.
The consultations seem to indicate that the gap cannot be closed through
further technical level negotiations on possible compromise language, at
least not without political input that would allow both sides to be much
more flexible.
In the Market Access area, a paper aimed at providing precision
to the original proposal made by Saint Lucia on a redistribution of
negotiating rights is still awaited.
In the area of TRIMs, Valentine Rugwabiza has informed me that
significant differences of view remain both on the substance of these
issues and on the way to address them. However, both proponents and
opponents agree that a procedural solution to this issue would not
suffice. It therefore appears that rather than continue consultations at
a technical level, what is needed now is political input to explore the
possibilities for allowing greater flexibility in Members' positions.
This would include more clarity from the proponents on concrete examples
of issues at stake.
On all five proposals dealing with the Customs Valuation
Agreement, the situation is still unchanged. There is no visible
prospect for moving forward on these issues.
On the single proposal in the Safeguards area, the situation remains
unchanged. The Committee reported in 2002, that it was not able to
suggest a course of action on the issue due to a lack of convergence. I
understand that since the proponent is not actively pursuing its
proposal, it is difficult for the Committee to revert to it unless
specifically requested by the proponent.
On Technical Barriers to Trade (TBT), in the context of the
Fourth Triennial Review, both technical assistance and conformity
assessment, which are relevant to the issues contained in the two tirets
in the TBT area, are on the table as agreed elements which should figure
in the Committee's report in November this year. However, no further
substantive discussion of the implementation issues per se has taken
place. In the light of the consultations he undertook, the former Chair
was also unable to suggest a course of action to be followed on these
tirets.
In sum, despite best efforts, we are yet to make concrete progress
towards finding appropriate solutions to these issues. However, in most
areas, there does seem to be a willingness to continue discussion on
them. We all know that this exercise has gone on for a very long time,
and we now need to work to bring it to closure. In short, we must be
result-oriented in the very short timeframe we have for this process. I
would suggest that our work should be focused on any deliverables for
July, or earlier if possible. I would once again urge everyone to make
every effort to allow progress to be made in order to respect the
mandate in paragraph 39 of the Hong Kong Ministerial Declaration.
That concludes my report on Implementation.
Regarding process, I believe the establishment of modalities as foreseen
by the HK Declaration will require some sort of Ministerial involvement
during the last week of April, with a safety net beginning of May. For
this to happen you will need to intensify your work between now and the
start of the agriculture and NAMA weeks starting 17 April.
To sum up the mood today a strong sense of urgency as we get closer to
end of April and a need to change gear on all areas of the negotiation,
starting with the triangle of domestic support and market access in
agriculture and in industrial products.
Statements by chairpersons of bodies established by the TNC (TN/DS/15, TN/IP/15, TN/MA/17, TN/RL/16, TN/S/25)
Statement by TNC chair Pascal Lamy at the 28 March TNC meeting
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