Bridges Weekly Trade News Digest • Volume 7 • Number 35 • 23rd October 2003

DEVELOPMENT COMMITTEE DISCUSS TA, COMMODITIES, AND SUSTAINABLE DEVELOPMENT

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The forty-sixth session of the WTO Committee on Trade and Development (CTD) met on 16 October and 23 October to discuss, inter alia, the 2004 technical assistance (TA) plan, the proposal from a group of East African countries on the declining prices of primary commodities, and the mandate from paragraph 51 of the Doha Declaration (under which the CTD is to identify and debate the developmental aspects of the negotiations, so as to help have sustainable development appropriately reflected). As discussions on the first two items filled the allotted time for the scheduled 16 October meeting, Members reconvened on the morning of 23 October 2003 to complete the agenda.

Technical Assistance

Members spent most of the 16 October meeting discussing the Secretariat’s planned technical assistance (TA) activities for 2004 (WT/COMTD/W/119, searchable at http://docsonline.wto.org). The issue of whether to continue certain TA activities, based on the outcome in Cancun, and the possible implications for the priorities of the future agenda played a central role in these discussions. According to a WTO official, the EC suggested suspending TA activities on subjects that were "rejected" in Cancun (e.g. the Singapore issues of investment, competition, trade facilitation, and transparency in government procurement). A number of developing countries responded by reiterating that TA was a core part of the Doha work programme — a work programme reaffirmed by ministers in Cancun — and thus should continue despite any "hiccups" in Cancun. Most Members agreed simply that they would have to wait until the mid-December General Council meeting for greater clarity on TA priorities (a caveat that was already included in the Secretariat’s plan). Based on these discussions, the Secretariat was instructed to revise the document.

Declining Prices of Primary Commodities

Members spent the remainder of the 16 October, and part of the 23 October meeting, discussing the May 2003 submission from Kenya, Uganda and Tanzania (WT/COMTD/W/113) on the problems posed by the long-term trend of declining primary commodities prices, and the need for action in the WTO to deal with the resulting crisis (see BRIDGES Weekly, 18 June 2003). Kenya suggested that in light of the negative implications for the development of the countries dependent on such primary commodity exports, the CTD should, inter alia, start examining in-depth the problems encountered by exporters of primary commodities, and that the matter should be dealt with expressly in a special session of the CTD. Other bodies with mandates related to the problems encountered should also be engaged in the discussions — including the Special Session of the Committee on Agriculture, the Negotiating Group on Non-Agricultural Market Access, the Working Group on Trade, Debt, and Finance, as well as the Working Group on Trade and Transfer of Technology.

One observer characterised the response from the major trading powers as "cool, at best". Another official noted that Canada and the US expressed "strong reservations" against the suggestions (a position also supported by Australia). The US argued that primary commodity prices were dependent on the forces of the market, and that previous attempts to interfere with these markets had become unworkable. The EU, while stating that the issue merited further discussion in the CTD, echoed the US and Canadian sentiment, saying the question was less about market management instruments, and more about competitiveness, diversification, and encouraging investment. The US also added that while some commodities might encounter problems at certain points, they could do better at others — referring to the record high cotton prices for the year.

Indeed, as a result of developing countries’ push to have them included, both this proposal on primary commodities and another specifically on cotton were eventually added as topics in the draft Cancun Ministerial text (see BRIDGES Weekly, 28 July 2003). As was the case for many of the issues included in that text however, Cancun facilitated little movement (see BRIDGES Daily Update, 15 September 2003 ).

Responding to developed country allusions to needing to let the market decide, one African delegate pointed to existing precedents of developed countries using supply management tools to ensure stable and profitable prices. They added that this issue falls well within ambit of the CTD’s mandate, and thus informed discussions should be commenced. Towards that aim, Members instructed the Secretariat to prepare an inventory of studies on the issue. Chair Habib Mansour (Tunisia) indicated he would undertake consultations on how to proceed.

Sustainable Development

This portion of the agenda mostly comprised a factual report from the Negotiating Group on Non-Agricultural Market Access (NAMA) as to the development dimensions of the NAMA discussions. While little discussion was held on the matter, a few delegates did remind Members that paragraph 51 was about sustainable development, and not just development. Calls were sounded for Members to engage more on this matter, if they wanted to go beyond such factual reports from the Secretariat. The following CTD session will hear a report on the services talks.

The next meeting of the CTD is scheduled for 27 November.

ICTSD reporting.