Bridges Weekly Trade News Digest • Volume 8 • Number 33 • 6th October 2004
WTO Development Committee Focuses On Technical Assistance, Commodities, Sustainability
The WTO Committee on Trade and Development (CTD) met on 28-29 September to continue discussions on technical assistance for the upcoming year, declining commodity prices, and the operationalisation of Doha Declaration paragraph 51 on sustainable development. Chaired by Ambassador Trevor Clarke (Barbados), delegates also discussed the graduation of WTO Members from least-developed country (LDC) status.
Disagreements over focus of technical assistance
Following the decision in the "July Package" (see BRIDGES Weekly, 3 August 2004) to remove the ‘Singapore issues’ of transparency in government procurement, competition, and investment from the negotiating agenda of the Doha Round, several countries questioned the value of continuing to spend technical assistance resources on these topics. Members suggested that technical assistance would be more useful in the fields of non-agricultural market access (NAMA), services, TRIPS, trade facilitation and agriculture.
According to trade sources, the EC and Japan saw the full set of Singapore issues as still on the WTO’s broader agenda and were thus hesitant to eliminate technical assistance on them. China, on the other hand, suggested budgeting for agriculture, trade facilitation, and services, while Kenya suggested agriculture and services as topics worthy of technical assistance. There was no final decision on the matter.
Ways forward considered for commodities
Managing Director of the Common Fund for Commodities and Former Tanzanian Ambassador Mr. Ali Said Mchumo presented to the CTD on commodities concerns. The presentation built on an earlier submission to the CTD from Kenya, Uganda, and Tanzania of 19 May 2003 (WT/COMTD/W/113) on the need for urgent action in the WTO to deal with the crisis created by the long-term trend in the prices of primary commodities (see BRIDGES Weekly, 26 February 2004). The Common Fund for Commodities shared its experience concerning the declining terms of trade for primary commodities and related aspects of the relationship between commodity prices and development. Among other options discussed were compensatory financial programmes.
Members suggested two possible ways forward for the CTD’s involvement with commodities. Building on a paper from Kenya, Uganda, and Tanzania of 6 May 2004 (WT/COMTD/W/130), Members considered inviting other international organisations specialising in commodities — such as the UN Food and Agriculture Organization (FAO), the UN Conference on Trade and Development (UNCTAD) and the World Bank — to present and participate in discussions at subsequent CTD meetings. Canada, on the other hand, suggested that a non-paper be commissioned to examine success stories of countries that have been able to use trade in commodities to their advantage. Chile, South Africa and Brazil were cited, as were the importance of risk management models developed in Africa.
The chair was asked to consult with Members before the next meeting on the best approach to take between these options.
Meaning of ’sustainability’ questioned
Members continued their discussion on the implications of paragraph 51 of the Doha Declaration, which states that "The Committee on Trade and Development and the Committee on Trade and Environment [CTE] shall, within their respective mandates, each act as a forum to identify and debate developmental and environmental aspects of the negotiations, in order to help achieve the objective of having sustainable development appropriately reflected". Delegates spoke at some length regarding differing understandings of the mandate of the CTD in the context of this mandate.
Venezuela, in particular, said that paragraph 51 meant that the CTD’s mandate should be focused specifically on environmental issues as a result of the term "sustainable". He had also raised this issue at previous CTE and UNCTAD meetings. The CTD Chair suggested that such an interpretation would question the authority of the work that the CTD has done in the past two years. Other countries suggested that the definition of "sustainable development" was much broader, including not only environmental issues (to be focused on instead within the CTE), but also issues of equity, economic growth, social welfare, stability, well-being of developing countries, and general developmental goals that the CTD has been pursuing under its mandate since its inception. However, no specific decision was reached on this issue.
Clarification sought on smooth LDC graduation
Pursuant to a submission from the Maldives on graduation from LDC status, the CTD asked the WTO Secretariat to prepare a note on the WTO implications of graduation. At the last CTD meeting, the Maldives presented a submission (WT/COMTD/W/128) requesting the CTD to recommend a series of measures that would enable the Maldives and other LDCs a smooth transition as they graduated from LDC to developing country status (see BRIDGES Weekly, 13 May 2004). The graduation of the Maldives is currently being considered at the UN, but has been put on hold while Members deliberate on a Report of the Secretary-General presented to the UN Economic and Social Council (ECOSOC) on 15 July entitled "formulating a smooth transition strategy for countries graduating from least developed status". The report stresses that no country graduating from the LDC list should have its positive development reversed.
Members agreed that two prepared non-papers — one on ECOSOCs’ graduation process and another on special and differential treatment provisions for LDCs in the WTO — would be circulated to Members.
The next sessions of the CTD will take place on 3 (dedicated session) and 16 November.
ICTSD reporting.