WTO Ministerial Section • Volume 2 • Number 18 • 18th May 1998

WTO Ministerial and millennium round

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Whether or not to engage in a new round of multilateral trade talks is to be a major topic of discussion when the WTO meets for its second ministerial meeting in Geneva this week.
The so-called Millennium Round has been promoted heavily by the European Union, which wants a fresh round of negotiations to start in 2000. The Uruguay Round of trade talks was concluded in 1994. Malaysia and a number of developing countries are opposed to a new round of talks, wanting instead to finish and assess implementation of Uruguay Round commitments. (See also page 5 of April-May issue of Bridges monthly ).

“As for Malaysia, the issue before us is the question of economic recovery. We don’t have time to concentrate on discussing matters relating to a new round of multilateral trade talks given the limited time,” a Malaysian trade official said last week.

Germany’s economics minister last week reinforced Europe’s desire for a Millennium Round, especially as it relates to job creation. “Germany is more strongly incorporated in the world economy than any other nation. Every fifth [German] job depends on foreign trade. [The Millennium Round] is especially important for smaller companies, which are increasingly profiting from foreign trade,” economics minister Guenter Rexrodt said last week.

According to an U.S. trade official, the U.S. does not support proposed Millennium Round negotiations. The official said a new round of talks is “not the way to go.” “The only thing [the U.S.] wants out of [the ministerial] is. . . a very broad directive to the General Council of the WTO to look at the full range of substantive areas,” the official said. President Clinton attended the ministerial meeting after the U.S.-EU summit on Monday.

No major decisions are expected to be taken at the ministerial this week. However, the U.S. is expected to push for a WTO dialogue on more public inclusion in the WTO process. U.S. officials argue this is the best way to promote the free-trade process, while skeptics wonder if it is not just an attempt to bring more U.S. trade union lobbyists and environmental groups–traditionally Democratic Party supporters, into the fold.

“U.S. pressing several themes to guide WTO work on new negotiations,” INSIDE U.S. TRADE, May 15, 1998; “Rexrodt calls for world trade talks ahead of WTO,” REUTERS, May 12, 1998; “Malaysia to reject any calls for new trade talks- Bernama,” DOW JONES NEWSWIRES, May 12, 1998; “Party goers seek next leap forward,” FINANCIAL TIMES, May 18, 1998.