WTO Ministerial SectionVolume 9Number 18 • 25th May 2005

TNC: Supachai Downplays Expectations for July, Focus Now on Hong Kong

The WTO Trade Negotiations Committee (TNC), chaired by Director-General Supachai Panitchpakdi, convened for a half-day meeting on 19 May to take stock of progress in the Doha Round. Although he welcomed a preliminary deal at a recent mini-ministerial allowing forward movement on agriculture, Supachai urged delegates to speed up their talks, saying that the overall negotiations are progressing too slowly. He toned down the significance of coming up with ‘first approximations’ of a Doha Round deal in July, and said Members should focus on what is needed for a successful outcome at the December WTO Ministerial Conference in Hong Kong.

Supachai stresses importance of the Geneva process

In his statement to the TNC, Supachai welcomed progress at the 4 May Paris mini-ministerial, where ministers from thirty key WTO Member countries agreed on how to convert ’specific’ agricultural tariffs based on quantities imported into ‘ad valorem’ equivalents (AVEs), i.e., tariffs based on the price of the product, a prerequisite for market access negotiations to proceed (see BRIDGES Weekly, 11 May 2005). He expressed hope the momentum generated by the agreement would continue and spill over into other areas, such as the industrial market access negotiations. He also took note of upcoming ministerial-level meetings, stressing, however, that the Geneva process — which includes all Members — remains the primary negotiating forum.

Supachai also told Members that the ‘first approximations’ of modalities delegates are striving to agree on in July, will not be a substantive package deal of the kind Members agreed on at the same time last year (WT/L/579) He cautioned that Members need to be realistic in their expectations, and keep their focus on the greater goal of the WTO Hong Kong ministerial in December.

Overall he stressed that the "picture is probably better than last time we met, but not good enough," and called for a greater sense of urgency in the talks.

Members react

Some Members said what while the mini-ministerial process could help generate some momentum, such meetings should not be institutionalised. Singapore, Indonesia, Thailand and Malaysia all called for transparency and inclusiveness in this regard.

Mexico noted that negotiations are far behind schedule, and said Members should focus on the post-July phase rather than try to achieve a cosmetic result in July. Rwanda, speaking for the African Group, also said that negotiators should focus on Hong Kong, and that they should work their way backwards to understand what would be necessary in July to support a successful Hong Kong outcome. Rwanda, supported by Zambia (for the least developed countries) and Uganda, further called for a development-friendly outcome. India also expressed concern with regard to progress on development issues, and called for some form of "development audit" of the Round. Barbados supported this idea.

Korea, speaking for Asia-Pacific Economic Cooperation (APEC) countries, expressed concern over the lack of progress in services negotiations. Canada noted that it had submitted its revised services offer. The revised offers are officially due by the end of May, but a large number of countries have not yet submitted even their initial offers.

Scant progress on implementation issues

Also at the TNC, Supachai reported on how consultations are progressing with regard to outstanding "implementation issues," or obligations under the existing agreements that developing countries would like to see enforced and carried out in a way that would better reflect the original intent and balance of the multilateral trading system. Supachai has been carrying out consultations on the implementation issues with the assistance of the chairs of the various bodies the implementation issues fall under. He said he could report no breakthroughs in terms of substance. He did, however, suggest there had been some forward movement in certain areas, such as discussions on the relationship between TRIPS and the Convention on Biological Diversity (CBD). On the question of the extension of Geographic Indications (GIs) beyond wines and spirits, he said the WTO Secretariat had prepared a factual compilation of the different views on the table. Differences remain, he said, on the fundamental issue of whether or not GIs should be extended.

The WTO General Council will meet from 26-27 May. The next TNC has not yet been scheduled, although the Director General has indicated he may convene another TNC in a month.

ICTSD reporting.