Bridges Weekly Trade News Digest • Volume 6 • Number 13 • 9th April 2002
WTO Market Access Prep Snags On Modalities
At an 8 April informal meeting of the WTO’s Negotiating Committee on Market Access, a number of developing countries opposed a negotiating schedule calling for agreement on ‘modalities’ by 31 March 2003 proposed by Chair Pierre-Louis Girard (Switzerland). The issue stands in the way of Members agreeing on a timetable for non-agricultural market access negotiations as mandated by the Doha Ministerial Declaration agreed last November.
Negotiation modalities lay out the framework for how talks will proceed, including numerical targets and formulas. Two approaches predominate: a ‘formula’, or across-the-board approach, and a ‘request/offer’ method, whereby principal or substantial suppliers of goods engage in bilateral tariff reduction talks that are then extended multilaterally. In the 1986-94 Uruguay Round of negotiations, countries primarily employed request/offer modalities which led to targeted tariff cuts on a product-by-product basis. According to informed sources, sector-by-sector approaches have largely been abandoned since the Uruguay Round. As a result, it remains unclear how the Market Access Negotiating Group will deal with environmental goods, for example, as Market Access has been designated as the forum to negotiate reduction or elimination of tariff or non-tariff barriers in this sector.
Kenya, India, Egypt, Malaysia and China, supported by other developing countries, pointed out that the Doha Declaration did not indicate a specific date to agree on the modalities, and said that assigning a 31 March deadline imposed too much of a burden on developing country Members for a variety of reasons. For its part, China said that as a newly-acceded Member it needed more time to formulate a position, while others pointed to the already-packed WTO negotiating agenda and to capacity constraints at missions and capitals as major restrictions.
Australia, New Zealand, the US, the EU, Japan and Canada expressed support for Girard’s proposed deadline. Australia said it was perplexed by the developing countries’ resistance to the idea of a modalities deadline given that they are expected to be the main beneficiaries from the market access talks on non-agricultural goods. Australia further emphasised that it was important to know what other countries will put on the table before negotiations begin.
Latin American countries such as Brazil, Chile and Mexico said they were flexible on the issue, although Chile said it was important to have some agreement before the WTO’s next Ministerial Conference, due to take place in Mexico in the second half of 2003.
Girard said he would hold further consultations with Members and would revisit the issue at the formal meeting of the Negotiating Group scheduled for 10-11 April.
The Chair’s proposed timetable sets out a work programme establishing seven negotiating sessions over the next year, including the establishment of modalities by 31 March 2003. Two sessions, on 11-12 July and on 12-13 September, would focus on specific tariff issues in the Doha Declaration such as tariff peaks and tariff escalation as well as non-tariff barriers to trade, with a specific focus on products of export interest to developing countries. 15 October is set as a target date for the submission of proposals on modalities, with consideration of possible modalities discussed at negotiating sessions during November and December. A comprehensive review of possible modalities, based on an overview paper presented by the Chair, would take place in January 2003, with the Chair presenting a first draft agreement on modalities at a session in February. A subsequent session in March would set agreement on modalities by the end of the month.
ICTSD will report on the outcome of the formal Market Access session in the next issue.
"Countries Reject Proposal for Modalities Deadline in WTO Market Access Talks," WTO REPORTER, 9 April 2002; ICTSD Internal Files.