MOORE ADVOCATES NEGOTIATIONS ON INVESTMENT, OTHER SINGAPORE ISSUES
In an opinion piece published in the 17 February edition of the Financial Times, WTO Director-General Mike Moore pushed for the establishment of "clear, transparent and predictable global rules for investment." Moore qualified his comments by indicating that there was a need to attract more investment to poorer countries, and that global rules could play a role in this regard. Many developing countries are concerned that investment rules could curtail their ability to tailor their domestic investment regimes to their particular economic situation, while many non-governmental groups fear enforceable multilateral investment rules would give corporations the right to sue governments over laws they deem as tantamount to expropriation. Moore also advocated the development dimension of the other so- called ‘Singapore’ issues — competition policy, transparency in government procurement, and trade facilitation — that were pushed primarily by the European Communities at the Doha Ministerial in November last year. He said that developing countries were in a position to impose ‘conditionalities’ of capacity-building and technical assistance on developed country Members. Members agreed to begin negotiations on the Singapore issues after the next Ministerial Conference in 2003, as long as there is agreement among Members on the nature of those negotiations.
"Moore speaks out on WTO rules," FINANCIAL TIMES, 18 February 2002; "Development needs more than trade," FINANCIAL TIMES, 17 February 2002.
DIRECTOR-GENERAL DESIGNATE SUPACHAI PANITCHPAKDI EMPHASISES TECHNICAL ASSISTANCE
On 5 February, following an address to business representatives and government officials in Washington DC, WTO Director-General designate Supachai Panitchpakdi told reporters that a "successful round" of multilateral trade negotiations would depend on whether early agreement on agriculture could be reached, and whether the demands of developing countries on technical assistance (TA) were met. Supachai pointed to a lack of resources as the cause of the inadequacy in the current programs, and accordingly, indicated that a pledging conference was set to occur on 11 March towards the WTO technical assistance trust fund for developing and least-developed countries (see BRIDGES Weekly, 12 December 2001). However, Supachai warned that the TA requests from developing countries "is much more comprehensive than only technical capacity building and participating in the negotiations." He suggested that the trust fund would not in itself be enough to satisfy all the commitments towards TA made in the Doha Ministerial Declaration. He proposed three ways the WTO could improve its delivery of TA: (a) that the WTO should work with the World Bank to help developing countries diversify their production as a form of trade-related development; (b) that the WTO help poorer Members analyse trade options in order to set their own agendas; and (c) that the WTO should work with the International Monetary Fund and the UN Conference on Trade and Development (UNCTAD) to help create a macro-economic framework that would include the promotion of investment in the developing world.
"Supachai Ties Round’s Successes To Improved Technical Assistance," INSIDE US TRADE, 8 February 2002.
FSC: US QUESTIONS SCALE OF SANCTIONS CLAIMED BY EC
Following up on its intention to challenge the $US4.043 billion in trade sanctions claimed by the European Communities in their WTO dispute with the US over corporate export tax subsidies (Foreign Sales Corporations - FSC), the office of the US Trade Representative (USTR) on 14 February announced its calculation of the level of retaliation it deems appropriate for the case. The USTR figure of $US956 million is less than a quarter of the EU’s claim (see BRIDGES Weekly, 16 January 2002). According to one US trade official, the USTR subtracted from the EC number FSC payments for service exports, which are not covered by WTO subsidies agreements. Both parties must submit briefs on their calculations by 26 February, and an arbitration decision is set for 29 April, following a WTO arbitration hearing on 7 March. The full US submission to the arbitrator can be viewed at: http://www.ustr.gov/enforcement/2002-02-14-fsc-arbitration- firstwritten.pdf.
"U.S. To Challenge Level of Trade Sanctions Claimed by EU," WASHINGTON FILE, 8 February 2002; "USTR Challenges EU Sanctions Claim in FSC Case," THE UNITED STATES MISSION TO THE EUROPEAN UNION, 14 February 2002.