WTO Ministerial Section • Volume 5 • Number 36 • 23rd October 2001

WTO Heads Of Delegations Meet On Developing Country Concerns

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On Friday 19 October, WTO Members convened for an informal Heads of Delegations (HOD) meeting to discuss ‘further points of consideration’ for the draft Ministerial Declaration (see BRIDGES Weekly, 2 October 2001). Specifically, this meeting touched on paragraphs 33 through 35 of the draft text - dealing with technical cooperation and capacity building, Least- Developed Countries (LDCs), and special and differential treatment (S&D). With new draft texts expected by the end of this week, sources indicate these discussions were critical in building confidence around the direction of these three important areas for developing country Members - particularly in S&D.

Special and differential treatment (S&D)

At the 19 October meeting, General Council (GC) Chair Stuart Harbinson put forward a proposal on text language that will likely constitute paragraph 35 of the next draft Declaration. This proposed text is intended to be "short, operational and directive and to link with the Work Programme text." Taking much of its content from the preamble of Annex 1 of "[S&D] Provisions in the WTO Agreements" in the report by the Chair of the Committee on Trade and Development (CTD) (WT/GC/52; see BRIDGES Weekly, 8 October 2001), the text "reaffirms that provisions for [S&D] are an integral part of the WTO agreements." It goes on to note concerns raised by developing countries in the operation of the provisions, and agrees to review them "with a view to strengthening them and making them more precise, effective and operational." Finally it takes note of the work programme on S&D, "agreed as part of the decision on implementation-related issues and concerns."

One trade source noted that the "lack of binding language", combined with the brevity of this paragraph, puts increasing importance on the outcome of negotiations regarding the composition of tiret 96 in the draft Implementation decision (the point dealing with S&D).

While Friday’s HOD meeting did not allow sufficient time to discuss tiret 96 (work programme on S&D), further discussions this week did result in a draft S&D text being put forward. This text is somewhat similar to that outlined in Annex 1 of the 3 October CTD Chairperson’s report (see BRIDGES Weekly, 2 October 2001, link noted above) - however there are some brackets (i.e. areas of contention) that no longer exist.

Specifically, the lead-in sentence now reads, "The Ministerial Conference instructs the CTD:" as opposed to "The General Council [proposes that the Fourth Ministerial Conference] instruct[s] the CTD:" (original brackets). Another related change was the inclusion in point three (regarding how S&D may be incorporated into the architecture of the WTO rules) that the consideration on this is now to be "in the context of the work programme adopted at the Fourth Ministerial…"

Sources say these subtle changes reinforce the notion that S&D has the potential to be a "make it or break it" issue and that any decision will be held off until Doha, or beyond, to exact maximum leverage from developing country Members for trade-offs in other negotiating areas.

Technical Cooperation and capacity building

HOD discussions on technical cooperation and capacity building looked at enhancing and rationalising the Integrated Framework for LDCs and the Joint Integrated Technical Assistance Program - with the aim of removing overlaps between the two programs. As well, in looking to coordinate delivery of technical assistance with other intergovernmental organisations, mention was made of addressing, inter alia, supply-side concerns - an issue that sources say developing country Members have been looking to include more explicitly on the WTO’s agenda.

Financing of technical assistance (TA) was another topic of discussion, particularly whether TA should have a separate budget or whether it should be a part of the WTO’s regular budget. The current draft declaration, while directing the General Council to develop a plan for long-term funding, gives no specifics on how to go about financing this item.

LDCs

A number of delegations made interventions based on the need to fast- track accession of LDCs to the WTO. As well, concerns were raised regarding the process of tying technical assistance to "mainstreaming trade into poverty reduction strategy papers (PRSPs)" (i.e. country- specific World Bank publications detailing growth and poverty reduction plans; see BRIDGES Weekly, 8 May 2001). A number of Members also raised concerns with this paragraph’s mention of LDC ‘domestic policy reforms’ as one of three pillars to further integrate LDC into the trading system (along with market access and TA).

"Special and Differential Treatment Provisions in the WTO Agreements" WTO WT/GC/52, 03 October 2001; ICTSD Internal Files.