Bridges Weekly Trade News Digest • Volume 8 • Number 39 • 17th November 2004
CTD Focuses On Technical Assistance, Commodities
WTO Members continued discussions on technical assistance, the post-quota textile and clothing industry and the declining terms of trade in primary commodities at a 16 November meeting of the Committee on Trade and Development (CTD). Ambassador Trevor Clarke chaired the session, which included a presentation from the UN Conference on Trade and Development (UNCTAD) on commodities, as well as discussion on whether to include textiles and clothing in the proposed 2005 technical assistance plan. However, the meeting was unable to complete its agenda and will resume on 26 November.
2005 technical assistance plan
The WTO Secretariat presented the proposed 2005 Technical Assistance and Training Plan (WT/COMTD/W/133/Rev.1). Delegates also heard a short verbal report on training by the International Development Law Organisation. The Plan, which must be adopted with amendments by the end of 2004, drew debate in particular for its reference to textiles and clothing as a training component for 2005 regional workshops. Members clashed over whether this sector should be included in the plan, with China saying that with the elimination of the Agreement on Textiles and Clothing (ATC) in December, and given that technical assistance (TA) is generally provided on topics that are either referred to in the WTO Agreements or the Doha Declaration, there was no reason to have textiles and clothing assistance. Brazil supported China’s position, with trade sources suggesting that a possible motivation for the resistance of these countries to TA in the sector was that if TA were provided on this non-Doha mandated issue, this could in turn open the TA scope to other non-mandated areas — including the three rejected Singapore issues (competition policy, transparency in government procurement and investment). Sources also suggested that China might fear that lack of clarity on "post-ATC" textiles and clothing assistance could lead to an attempt by some countries to revive quotas in this sector within NAMA negotiations in 2005.
Uganda, Kenya and some Central American countries clarified that they did not want to revive the quotas, but rather preferred to seek assistance on how to facilitate the adjustment of their economies and domestic industries in the post-ATC era. At an informal lunchtime meeting, the delegate from China suggested holding national seminars on the topic instead, and Brazil suggested it could be flexible if the regional workshops were solely on the post-ATC trading environment, and did not seek to extend quotas or other restrictions in the sector. In addition, Members sought clarification on the Technical Assistance Plan’s proposed services activities and in particular asked for information on what level of assistance would be provided and whether this assistance would be regionally balanced.
UNCTAD presentation on commodities
UNCTAD presented a document (Online) as part of the CTD’s ongoing examination of the declining terms of trade of primary commodities (see BRIDGES Weekly, 26 February 2004). Owing to a lack of time, only a few questions were asked and Members decided to postpone discussion until the 26 November meeting.
Members were divided on how to proceed with the commodities issue, with developed countries suggesting a series of presentations by various organisations with discussion by the CTD on the topic being postponed until the very end. Developing countries, on the other hand, wanted to have discussions immediately, and feared that the developed country approach may be too time-consuming and not lead to action anytime soon. Members were therefore considering a mixed approach with a series of organisations making presentations, followed by discussions. The debate on this issue was also postponed, with Members hoping the Chair would help resolve what was described as an "unnecessary impasse".
Secretariat considers rules and development linkages
In the context of ongoing debate on the meaning of "sustainable development" within paragraph 51 of the Doha Declaration (see BRIDGES Weekly, 6 October 2004), which mandates the CTD to "to identify and debate developmental and environmental aspects of the negotiations, in order to help achieve the objective of having sustainable development appropriately reflected," the WTO Secretariat made a presentation on those aspects of the proceedings of the Negotiating Group on Rules that have developmental and, in particular, special and differential (S&D) treatment implications.
The second half of the November CTD meeting, to be held on 26 November, will include the completion of the technical assistance plan, a discussion on the UNCTAD presentation, a presentation from the International Telecommunications Union on electronic commerce, and the preparation of the report to the General Council. Delegates will also address a WTO Secretariat report on the participation of the developing economies in the global trading system (WT/COMTD/W/136).
ICTSD reporting.