WTO Ministerial Section • Volume 7 • Number 21 • 12th June 2003

TNC Hears Statement by Burkina Faso President, Considers Submission on Road to Cancun

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The WTO Trade Negotiations Committee (TNC) met on 10 June to consider reports on progress in ongoing negotiations, and heard a statement by the president of Burkina Faso regarding a submission by West and Central African countries on cotton subsidies.

The chairs of the negotiating groups on dispute settlement, non- agricultural market access, services, and trade and environment provided their statements. In the general discussion, Members reiterated previous positions, expressing their disappointment with the current stalemate in negotiations and calling for movement especially in the area of agriculture in order to unblock the situation. Some made reference to current EU talks on reform of the Common Agricultural Policy (CAP), and their expectations for change.

Ambassador Péter Balás (Hungary), Chair of the special session of the DSB, reported that the group had failed to meet a 30 May negotiating deadline for the review of the dispute settlement understanding (see BRIDGES Weekly, 4 June 2003). He noted that discussions on a consolidated Chair’s draft began on 20 May, and a revised version of the draft was produced on 28 May. Members agreed that further work was needed, but disagreed on its format and on whether it should be based on the draft only or also on further submission (the Chair’s report, TN/DS/9, including the revised Chair’s draft is available at http://docsonline.wto.org). At the TNC, Members agreed to include the issue on its agenda for further discussion.

Chair Pierre-Louis Girard (Switzerland) of the negotiating group on market access said that he had issued draft negotiating modalities two weeks before (see BRIDGES Weekly), but that delegations were not yet in a "negotiating mood". However, Members had accepted the draft as a starting point, and discussions would continue as before despite the missed official 30 May deadline (TN/MA/11).

African President addresses TNC regarding cotton subsidies

The President of Burkina Faso, Blaise Campoare, in an unusual move addressed the TNC directly. He is the first head of state to speak at a regular WTO meeting. In his statement, he referred to an initiative at the WTO by four West and Central African (WCA) countries - - Benin, Burkina Faso, Chad and Mali — to eliminate cotton subsidies worldwide in an effort to ensure the survival and development of the cotton sector in their region (see BRIDGES Trade BioRes, 2 June 2003).

In his statement to the TNC, President Campoare said, "our countries are not asking for charity, neither are we requesting preferential treatment or additional aid. We solely demand that, in conformity with WTO basic principles, the free market rule be applied. Our producers are ready to face competition on the world cotton market - under the condition that it is not distorted by subsidies". He stressed that settling this issue is essential to the Doha round of trade negotiations, and would function as a test in Cancun, allowing Members to prove they can live up to their promises made in Doha. Most Members had positive reactions to the statement, with Morocco, speaking for the African Group, underlining the importance of the initiative. One Member commented however that the proposal should be considered in a broader context and questioned the singling out one specific product. EU Trade Commissioner Pascal Lamy, speaking at a subsequent public hearing in Brussels, said in relation to cotton that the proposal does not pose a problem to the EU.

Developing countries submit paper on road to Cancun

Colombia, on behalf of a group of 26 developing countries ranging from Argentina to Morocco and India, presented a paper entitled The Doha Agenda: Towards Cancun (TN/C/W/13). The paper was the outcome of discussions within an ad hoc group of important developing country players. They agreed on a set of elements they deemed essential to the Doha process, outlined in the paper: the centrality of the development dimension; the delicate overall balance of the package; and the importance of a transparent process. The paper goes on to outline actions to be taken at this point in order to enhance momentum with a view to the fifth Ministerial Conference in Cancun in September. The actions span the negotiating areas key to the developing countries in question.

On development issues, the paper highlights the need for concrete results prior to Cancun, "instead of calling into question the basic principles underlying them," and stresses the role of technical assistance and capacity-building. The paper underscores the central importance of agriculture to many developing countries and singles out the need to reduce or eliminate export subsidies and support, while calling for discussion on how to deal with market access in a way that safeguards developing country concerns. On non-agricultural market access, the paper emphasises less than full reciprocity for developing countries and elimination of non-tariff barriers.

On services, the paper states that progress has been moderate, and work could be boosted by progress in other areas. The paper notes that Members do not agree on the Singapore issues, and each issue should be treated separately. Were modalities to be decided in Cancun, by explicit consensus, they would need to provide certainly on the structure and precise content of negotiations. The paper also stresses the importance of changes to the DSU to guarantee the balance between Members rights and obligations, and urges Member’s to reach consensus on TRIPS and public health as the issue needs to be resolved before Cancun.

In their responses, a number of Members welcomed the submission. Canada, Norway, New Zealand felt that the paper was moderated and displayed a real commitment to the Doha round. However, some differences were expressed as well, with New Zealand pointing out that the level of ambition with regard to non-agricultural access could have been higher.

The next meeting of the TNC is scheduled for 14-15 July.

ICTSD Reporting; "African President to Make Direct Plea For Deal on Elimination of Cotton Subsidies," WTO REPORTER, 9 June 2003.