Bridges Weekly Trade News Digest • Volume 6 • Number 25 • 3rd July 2002
Busy Days For Development Committee At WTO
On 2 July, WTO delegates concluded the last of three meetings in two days for various sessions of the Committee on Trade and Development (CTD) that addressed a wide range of issues of importance to developing countries. The 2 July formal special session of the CTD was preceded by a regular session on the morning of 1 July, followed by a dedicated session on small economies. The regular session looked at, inter alia, the technical assistance plan for 2002 and 2003, a paper on the participation of developing countries in world trade, an EC paper on sustainability assessments, and a review of government assistance to economic development (Article XVIII of GATT 1994). The small economies session discussed a proposal from Macao, China and another from a group of small countries (including Barbados, Belize, Bolivia, Dominican Republic, Guatemala, Honduras, Mauritius and Sri Lanka). The 2 July special session on special and differential treatment was to consider an addendum to the LDC proposal as well as further talks on other proposals made so far. This special session was also scheduled to look at the elements for a report to the General Council, which is due by 31 July 2002.
Technical assistance for 2002/2003
The regular CTD began with a report from the Chairman of the Budget and Finance Committee notifying Members that as of 25 June, CHF 14.7 million (USD 9.84 million) out of CHF 30 million had been received by the Doha Trust Fund. This was followed by a Secretariat report on the implementation of the 2002 technical assistance plan and a look ahead to preparations for the 2003 plan. One source noted that Members were informed at the meeting of the Secretariat’s intention to require all 2003 technical assistance requests to be submitted by 31 July 2002. Numerous developing country delegates voiced strong concern that this was far too soon as (a) they had yet to see the impact of technical assistance from 2002, and (b) they are not yet sure of their needs for the future (this especially in light of the precedent set this year for not allowing ad hoc requests, see BRIDGES Weekly, 20 February 2002). Furthermore, with various mid-year deadlines pending, developing country delegates made it clear that this timeline was not acceptable. Further consultations on this matter are expected.
Participation in world trade
As part of the CTD’s mandate to continually review developing countries’ participation in world trade, the Secretariat prepared a paper entitled “Participation of Developing Countries in The Global Trading System” (WT/COMTD/W/100, searchable at http://docsonline.wto.org). The paper, which saw brief discussion at the meeting, generally outlines that while there is an increasing trend in the share of developing countries in world trade, wide disparities amongst them are prevalent.
Putting sustainable development in the WTO
Coming under the mandate outlined in para 51 of the Doha Ministerial Declaration to help achieve the objective of having sustainable development appropriately reflected, the EC presented its paper “Sustainability Impact Assessment”. The document, (WT/COMTD/W/99, searchable at http://docsonline.wto.org) provided an assessment of the impact on sustainability objectives arising from trade liberalisation. A number of countries questioned the approach and methodology of the report (including Chile, Argentina, and Australia), with Argentina making further mention of the impact of developed country subsidies on the rural development of developing countries.
Reviewing Article XVIII
Following an initial discussion at the 25 April CTD session where Members disagreed whether the CTD in fact had a mandate to review Article XVIII of GATT (see BRIDGES Weekly, 2 May 2002, http://www.ictsd.org/weekly/02-05-02/story3.htm), the item was included for discussion in the 1 July session. Article XVIII, entitled ‘Government Assistance to Economic Development’ is one of the embodiments of development in the WTO in that it allows for special and differential treatment for developing countries. A brief discussion was held, with many developing countries reiterating their concern that the clause was not serving its original objective — that of facilitating the implementation of policies designed to help in the progressive development of the economies of developing countries. The EC intervened to ask exactly how that article had constituted an impediment in the real world. Further consultations on this agenda item will continue, to be taken up again at future CTD sessions.
Small economies dedicated session
Immediately following the 1 July regular CTD session, a second dedicated session on small economies was held (see BRIDGES Weekly, 2 May 2002). The first proposal discussed — from Macao, China — looked at the structural impediments of small economies and suggested “providing justifiable remedial measures to complement the structural smallness and to counteract the detrimental effects affecting small economies by trade dominance” (WT/COMTD/SE/W/2, currently restricted).
The second submission, from a group of countries including Barbados, Belize, Bolivia, Dominican Republic, Guatemala, Honduras, Mauritius and Sri Lanka, contained proposals to address the concerns and problems affecting the trade of small economies (WT/COMTD/SE/W/3, currently restricted). Inter alia, the proposal made recommendations on asymmetrical treatment of ’small economies’ in a range of key WTO agreements. In response, the US indicated that while it was willing to explore the issue of a smooth transition for small economies that are also least-developed countries when they graduate to developing countries, it was not willing to consider the creation of a new category of Members. A number of Latin American developing countries also raised concern that elements of the proposal could harm the balance of the Uruguay Round vis-à-vis subsidies and anti-dumping. Chair Taoufiq Ali said he would hold consultations on these topics.
CTD Special Session
At time of press, BRIDGES Weekly became aware of informal special sessions scheduled for 3, 4, and 5 July (in addition to the 27 June informal and the 2 July formal meetings). As such, BRIDGES Weekly will provide in-depth coverage of these meetings in next week’s edition.
The next CTD (regular and dedicated sessions) will take place on 8 October, with various informal consultations prior.
ICTSD reporting.