WTO Ministerial Section • Volume 5 • Number 33 • 2nd October 2001

Sustainable Development Lacking In Draft Declaration

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As BRIDGES Weekly went to press, WTO Members were busy deliberating a new draft Declaration for the forthcoming WTO Ministerial in Doha, Qatar on 9-13 November. The 9-page text was circulated on 26 September along with an 11-page draft decision on specific issues of concern to developing countries, referred to as implementation (see related story, this issue). Development and environment aspects of the Declaration have drawn a mixed reaction from Members. The two texts — plus an expected third document on the relationship between intellectual property and access to medicines/public health — will form the framework for negotiations at Doha. They were compiled by WTO General Council Chair Stuart Harbinson in cooperation with WTO Director-General Mike Moore after months of consultations (both texts are available on ICTSD’s website at: http://www.ictsd.org/ministerial/doha/relevantdoc.htm). Not surprisingly, this first draft declaration paints a mixed picture of the various interests angling to be included in the Doha trade talks. Inter alia, the Declaration calls for improving disciplines on anti-dumping; negotiating or expanding analysis on investment and competition; negotiations on a multilateral agreement on transparency in government procurement; and examinations of trade, debt and finance and of trade and technology transfer. Language on trade and environment is limited to pursuing work in environment-trade ‘win-win’ situations and in deepening the understanding between the WTO and multilateral environmental agreements. The text also directs the WTO Committee on Technical Barriers to Trade (TBT) to expedite its work on labelling issues. While agriculture is included, the Declaration merely notes that further elaboration on this topic is needed based on a number of principles, including special and differential treatment, the long-term objective of reform in agriculture, and the aims of reform in the areas of market access, domestic support, and export competition. Members say they expect that more detailed language on agriculture should be ready in about two weeks’ time. A text on Special and Differential Treatment for developing countries will also be considered for inclusion in the Declaration following a report to be submitted by the WTO Committee on Trade and Development following its 8 October meeting. Preambular language soft on sustainable development The draft Declaration’s preamble, which lays out the broad aims of the WTO for Doha, makes mention of sustainable development principles, though one developed country diplomat said that the text lacks a clear statement affirming that sustainable development is a primary objective of the organisation. The preambular wording states that the aims of "upholding and safeguarding an open and non-discriminatory multilateral trading system, and acting for the protection of the environment and the promotion of sustainable development can and must be mutually supportive." The preamble also makes brief mention of labour, though further references are absent from the substantive text. It reaffirms the WTO’s support for core labour standards under the International Labour Organization (ILO) and takes note of ongoing work in the ILO on the social dimensions of globalisation (see BRIDGES Weekly, 26 June 2001). Also in the preamble, the draft text points to promoting better public understanding of the WTO through more effective information dissemination and improved dialogue with the public, though it is not clear what form such dialogue would take. Mixed emotions While no Member has rejected the text outright, most are unsatisfied with one or more aspects of the Declaration. On environment, one EC trade official said that the language used in the draft text was "obviously not adequate" for acceptance by EU member states. The EC has been pushing to include stronger language on precaution and ecolabelling as part of its environmental agenda for trade talks. Most other Members, particularly the US and Canada, oppose tougher disciplines on precaution and ecolabelling. Diplomats say the EC may therefore raise the precaution issue in the context of further agriculture talks. A number of developing countries welcomed the minimalist approach to environment adopted in the draft Declaration. The EC official also said that EU members would be disappointed with the noncommittal stand taken in the Declaration on investment and competition. Many developing country Members, pointing in particular to the draft implementation paper, say the text runs roughshod over their interests. Said one Asian diplomat who expressed concerns over areas such as TBT and health standards, "I don’t see how this text can be accepted". Members are meeting on 3 October to tackle the thorny implementation issue; developing countries are sceptical they can reach an agreement on it then as originally intended. For the most part, the US has backed the Harbinson text, but it has voiced concern over the inclusion of provisions for a review of anti- dumping procedures, which the US often uses as a protection against cheaper imports from other countries. Wiboonlasana Ruamraksa, director of Thailand’s Bureau of Multilateral Trade Negotiations, said the draft Declaration was acceptable to her country since issues of essential importance to Thailand, such as agriculture negotiations and anti-dumping measures, had been included on the agenda. Wiboonlasana also pointed to the fact that the draft did not force Members to adopt negotiations on the developed country issues of competition policy and investment. Observers expect a number of revisions and additions to the draft Declaration to take place between now and November. Informal meetings on the language are occurring regularly at the WTO, and a meeting of 22 trade ministers is scheduled for Singapore on 13-14 October to further prepare for Doha. "Quad members to iron out agenda differences," WASHINGTON TRADE DAILY, 1 October 2001; GENEVA WATCH, 28 September 2001; "WTO draft declaration draws mixed reaction among trade diplomats," INTERNATIONAL TRADE DAILY, 28 September 2001; "Draft WTO declaration calls for antidumping talks," KYODO NEWS, 27 September 2001; "WTO trade talks draft draws fire from poorer states," REUTERS, 1 October 2001; "Thai officials satisfied with initial draft of declaration," BANGKOK POST, 29 September 2001; "Draft Ministerial Declaration," WTO JOB(01)/140, 26 September 2001; ICTSD Internal Files.