Report by the Chairman of the Trade Negotiations Committee

Thank you Mr. Chairman.

In my report to the General Council in December, I suggested that we were getting closer to achieving the major goal we all share — establishing modalities in Agriculture and NAMA. Today, I would like to report that the political conditions for reaching a deal on the modalities have clearly improved. We know that the task ahead of us is a big one, and that the time available for it is tight, but we have never been nearer to achieving it. We are, I believe, on the last lap and we have now started the final sprint towards establishing modalities.

Since my last report, the TNC has held one informal meeting on 31 January. The purpose of this meeting was to take a look at where we are in the negotiations and to provide clarity on the next steps. My remarks at that meeting were made available to delegations in document JOB(08)/2, but today I would like to reiterate some of the points I made then.

From the discussion at our meeting, I think we are clearer about the process ahead. This week, the Chairs of Agriculture and NAMA will circulate comprehensive revised modality texts, building on the discussions which have taken place since their first versions. After a brief pause to allow delegations to reflect on the texts and to consult their capitals, the texts will go back to the two Negotiating Groups for consideration in the multilateral forum, as is our normal practice. How long that will need to take should become clearer when they table their texts, and it will also depend on the level of engagement participants show in the Negotiating Groups.

The decisive step in the process of establishing modalities will involve a cross-cutting discussion — a negotiation across both texts. As I outlined last year, this horizontal process would start at Senior Official level, with any Ministerial involvement which may be needed taking place later on.

The timing of this process will be tight. Taking a look at the calendar, we can see that the horizontal process would have to come to fruition around Easter, to allow us to respond to what has now become a collective determination to conclude the talks by the end of 2008. This of course allows some 6 to 8 months after the modalities are established for the scheduling exercise in Agriculture and NAMA and to conclude the negotiations in the other areas.

From the statements at our meeting, I think we have broad agreement on the urgency of what we are doing, and on the basic steps we need to take to reach a deal. Delegations repeated that substance must drive process, and that our process must remain a multilateral one. There was strong support for proceeding step by step and making the transition from one phase to another in the light of progress on the substance. On the other hand, we have to factor in the need for urgency. We have to reconcile these two considerations as we move forward.

Our meeting provided less clarity on the scope of the horizontal process. This is a matter on which further consultation will be needed over the coming days and weeks. However, I believe we have to work within the mandates agreed in 2001 at Doha, in 2004 by the General Council, and in 2005 at Hong Kong. In my consultations so far and at our informal meeting, many delegations have indicated the view that we must ensure strict compliance with the mandates. We should also bear in mind that we are working under the principle of the Single Undertaking, and that the establishment of modalities is not the end of the Round.

We all know what is happening in the world economy right now. I think we are also aware of the need for a successful outcome to the Round by the end of this year. The coming weeks will be an extremely intensive period for all of us, but I believe the potential results of the Round, and the benefit they can provide across the membership, are worth fighting for, and I will keep helping you doing that.

That concludes my report today, Mr. Chairman. Thank you.