Bridges Weekly Trade News Digest • Volume 7 • Number 29 • 28th August 2003
Discussions Wrap Up In Geneva; Remaining Rifts Left For Cancun
Trade negotiators in Geneva have been involved in hectic last-minute attempts to pave the way for the fifth WTO Ministerial meeting, to take place from 10-14 September in Cancun, Mexico. Delegates continued to meet daily in informal heads of delegation (HOD) gatherings, a process that began on 11 August following a brief WTO recess (see BRIDGES Weekly, 21 August). In addition, delegates met in smaller groups to flesh out deals, working late into the nights and over the weekend. With divisive issues such as agriculture, non-agricultural market access, the Singapore issues — investment, competition, transparency in government procurement and trade facilitation — and access to essential medicines topping the agenda, a new version of a draft ministerial text for Cancun was delayed over the weekend until 24 August, and the final pre-Cancun General Council (GC) meeting scheduled for 25 August started on the 26th.
New, final pre-Cancun ministerial declaration draws criticism
The new, amended draft of the Cancun ministerial text was released by GC Chair Carlos Perez del Castillo on Sunday, 24 August, and discussed in the evening of 25 August at an HOD meeting where delegates provided their initial reactions. The text itself contains six pages of decisions in the various areas under negotiation, including agriculture, non-agricultural market access, services, rules, trade- related aspects of intellectual property rights (TRIPS), environment, dispute settlement, special and differential (S&D) treatment for developing countries, implementation issues, the Singapore issues, and some smaller topics (see http://www.ictsd.org/ministerial/cancun/docs/Job.03.150.Rev.1.pdf). Three new paragraphs have been added: a sectoral initiative on cotton; commodity issues; and coherence. The draft further contains an annex outlining a framework for establishing modalities in agriculture, a similar annex for non-agricultural market access, an annex on S&D, and annexes on the Singapore issues (for more detailed information, see related stories in this issue of BRIDGES Weekly). Dates and deadlines, as well as specific figures — as relevant — are left open for ministers to decide.
During the 25 August HOD meeting, Members discussed the draft text paragraph by paragraph, until late in the evening. Addressing the meeting, GC Chair Castillo said that while the text was put forward on his own responsibility, and in close co-operation with the Director- General, it was based on many hours of consultation and discussion with Members. It was by no means an agreed text, and sought to reflect the progress — or lack of progress — achieved on negotiations. In their initial reactions, many delegates expressed disappointment, especially regarding the draft text on agriculture. Brazil called the draft fundamentally flawed, while the EU said it "can still be repaired. It’s flawed because of its imbalance". In reaction to the text, and especially its section on agriculture, New Zealand’s Trade Negotiations Minister Jim Sutton called for more ambition, saying that "we’re after fundamental reform in these areas … export subsidies must go in this round". Coming from more of a development perspective, Indian Commerce and Industry Minister Arun Jaitley said "we would press for a framework in which there is sufficient cushioning in terms of tariff levels — a provision for special products and a safeguard mechanism against any surge in imports". The US and others noted that their positions had not been appropriately reflected in the text.
CG discusses draft text, Chair Castillo to forward text to Cancun
During the final pre-Cancun GC, held from 26-27 August, Members gave their comments on the draft ministerial text. Many repeated statements from the 25 August HOD meeting, with others providing additional views based on consultations with capitals. The majority of the comments focussed on agriculture, non-agricultural market access and the Singapore issues.
After 40 speakers had taken the floor, WTO Director-General Supachai Panitchpakdi summed up criticism voiced over the text, including that some Members felt it was not faithful to the so-called "Doha Development Agenda" nor met its mandate, it was unbalanced, and reflected the positions of certain groups of countries better than others. He said the text had been left somewhat open-ended, leaving room for constructive ambiguity, as this would provide ministers — working on the basis of this text in Cancun — with flexibility and not prejudge the final outcome of negotiations. He also noted that Members finally were engaging on real negotiations, and encouraged them to continue.
Summarising discussions on the text, Chair Castillo noted that no greater convergence had emerged, and referred back to the discussions at the 25 August HOD meeting. He said that while the text had drawn much criticism, the criticism had been varied and focussed on different aspects of the text, and no one had outright rejected it. The fact that no one loved it, but everyone could live with it, was a good sign rather than a bad sign. The Geneva process had come to an end, and he said he would now forward the text as it stands to ministers in Cancun - - not as an agreed text nor as one that reflects all positions, but on his responsibility, and accompanied by a cover note. In this cover note, Chair Castillo, with the Director-General, would compile various concerns Members had identified, highlighting the fact that wide disagreements still persisted in key areas. He said he would draft this letter on his own responsibility, in an "objective" way. He concluded that discussions had come to an end in Geneva, and the large remaining divisions could only be worked out at the political level by ministers.
ICTSD reporting; "WTO negotiators mull compromise bid to break talks deadlock," AFP, 25 August 2003; "U.S. official warns September WTO talks may fail," REUTERS, 26 August 2003.