Bridges Weekly Trade News Digest • Volume 10 • Number 8 • 8th March 2006
CTD-SS Continues Examining S&D Proposals
Meeting on 6 March, the WTO Committee on Trade and Development Special Session (CTD-SS) again failed to agree on where to discuss the implementation of the Hong Kong Ministerial Decision on duty- and quota-free access for products originating in least-developed countries (LDCs). Consensus seemed within reach in flexibilities in the application of the Agreement on Import Licensing Procedures. Sharp differences of views, however, prevail on exempting LDCs from WTO disciplines on government assistance to economic development.
The new CTD-SS Chair, Ambassador Burhan Gafoor of Singapore, enjoined Members to refrain from political statements in order to move on with text-based negotiations.
On behalf of the LDCs, Nepal argued that the CTD-SS was the right venue to address the implementation of the Hong Kong decision on duty- and quota-free market access since it was a negotiating body, while the US maintained this was not a negotiating issue (see BRIDGES Weekly, 1 March 2006). Instead, the US suggested that discussions on how to proceed should be dealt with at the regular session of the CTD. The Chair invited both sides to consult bilaterally in order to find a solution.
Members also considered the wording of three proposals (from the African Group, Thailand and India) aimed at giving more (binding) flexibilities to LDCs with respect to providing import statistics on products subject to import licensing. According to one developing country delegate, there is room to find compromise language that would combine the three proposals. However, many developed countries said that flexibilities already existed and that more flexibilities should not be given at the expense of the need for transparency in the application of the agreement.
The discussion was much more contentious on a proposal by the African Group concerning GATT Article XVIII (which outlines "protective or other measures affecting imports" that governments can take to promote the development of their economies). The proposal calls for LDCs to be exempted from all restrictions on government assistance under Article XVIII. Kenya, which took the floor several times, said that the purpose of the proposal was to ensure that flexibilities for LDCs to pursue development objectives were maintained. Kenya argued that such flexibilities were being "squeezed every day" and that LDCs wanted them strengthened.
The US, supported by other developed countries, said it was not prepared to "rewrite history" in order to make Article XVIII more precise, effective and operational. Switzerland noted that there was a need to balance rights and obligations for all WTO Members, and that the African proposal would encroach on those of other (developing) countries. Although none of these other countries took the floor on this issue, some developing country delegates privately indicated that the African proposal went too far in undermining the predictability of the trading system. The Chair will hold consultations on the basis of new language proposed.
Discussions were postponed until the next CTD-SS, on 7 April, on waivers and obligations under GATT 1994 and the Agreement on the Application of Sanitary and Phytosanitary Measures.
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