Bridges Weekly Trade News Digest • Volume 7 • Number 41 • 4th December 2003
WTO: Informal Talks Keep Geneva-Based Delegates Busy
During the past week, WTO General Council (GC) Chair Carlos Perez del Castillo kept negotiators busy with a tight schedule of meetings in various small group formats, focussing mainly on industrial market access, the Singapore issues (investment, competition, transparency in government procurement and trade facilitation) and cotton. Reportedly, the talks led to scant progress at a substantive level. Chair Perez del Castillo is expected to hold talks with key Members on the way forward in the near future.
Chair Perez del Castillo is currently completing a second round of informal consultations on four key issues — agriculture, industrial market access, cotton and the Singapore issues — with the aim of finding convergence on the way forward after trade talks failed in Cancun, Mexico this year (see BRIDGES Weekly, 19 November 2003).
No progress on NAMA
Chair Perez del Castillo met with around 30 delegates to discuss non- agricultural, or industrial market access (NAMA) on 27 November. The talks, which followed both discussions in smaller groups and a first set of talks in October (see BRIDGES Weekly, 30 October 2003), reportedly saw a widening rather than breaching of positions. Members continued to disagree on which approach to take to tariff reduction, and on whether or not to go ahead with a proposal to eliminate tariffs in selected sectors. According to sources, the talks saw mainly North-South rifts, and many developing countries felt they were not ready to move in NAMA until there was progress in agriculture talks.
On the formula for tariff cuts, the US and EC wanted to proceed with a the same non-linear formula for both developed and developing countries. A number of developing countries strongly opposed. On the sectoral approach, or the elimination of tariffs in selected sectors, the US and Japan suggested tariff elimination should be mandatory for all, including least developed countries (LDCs). This was opposed by a number of developing countries, including a representative of the African Union, which felt participation should be voluntary and supplementary. Venezuela, India and Indonesia said the sectoral approach should be dropped altogether.
Frustration around the cotton issue
In discussing the initiative to eliminate cotton subsidies put forth by four West African countries some months before Cancun, Members made no progress in informal talks. Some delegates voiced their frustration, as they felt all views were already known, and the issue may be sliding backward rather than progressing. Most delegates agreed that there is little chance for movement, and supported the view expressed by Chair Perez del Castillo at a heads of delegation meeting on 18 November that the issue should be integrated into the agriculture talks (see BRIDGES Weekly, 19 November 2003). The demandeurs, however, fear the issue will drop off the agenda of active talks if it does not proceed on a separate track. The ACP Council of Ministers, meeting at the end of November, also supported keeping cotton on a separate track (see related story, this issue). The cotton initiative is currently on the agenda for the 15 December GC meeting.
Members are actively engaging in talks on the Singapore issues, with some convergence emerging around trade facilitation (see related story, this issue). On agriculture, no new developments were reported over the last week (see BRIDGES Weekly, 26 November 2003).
HOD meeting coming up
Chair Perez del Castillo is scheduled to hold a stock-taking session at the heads of delegation (HODs) on Tuesday, 9 December. The meeting would serve as a "dress rehearsal" for 15 December session of the General Council expected to agree on "necessary action" for Members to be able to conclude the round. After the second round of talks on the four key issues wrap up, Chair Perez del Castillo is expected to hold talks with key Members on what the "necessary action" could be. As no significant decisions are expected from the 15 December meeting, delegates are now considering a plan B, which could involve sending the various issues under discussion back to formal negotiating groups.
The 9 December HOD meeting is expected to run for a full day, allowing Members to express their opinions on the current state of negotiations, while the 15 December meeting would merely adopt a statement without debate. Few governments are currently planning to send high-level officials to Geneva for the GC meeting.
G-20 meeting on 12 December
Prior to the 15 December meeting, the G-20 group of developing countries is meeting in Brasilia, Brazil on 12 December. WTO Director General Supachai Panitchpakdi and EC Trade Commissioner Pascal Lamy will also attend. The 15 December GC meeting is expected to wrap up the work at the WTO for 2003. In 2004, GC Chair Perez del Castillo will spend much of the first two months on the selection process for new chairs for the various WTO working groups, after which negotiations may resume again, pending the outcome of the December GC meeting.
ICTSD reporting; "Polarisation Of Views At WTO Consultations On Non- Agricultural Market Access," TWN INFO SERVICE ON WTO ISSUES, 2 December 2003.
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