Bridges Weekly Trade News Digest • Volume 7 • Number 41 • 4th December 2003
Singapore Issues: Convergence Emerging On Trade Facilitation
At an informal consultation on the so called Singapore issues (investment, competition, government procurement and trade facilitation) on Wednesday 3 December, most developing countries reportedly indicated a willingness to discuss trade facilitation. However, they still differed on whether the clarification of modalities should continue in a working group, or whether negotiations could go ahead directly. Most Members expressed ‘wariness’ regarding the idea to negotiate plurilateral agreements on the Singapore issues — something one trade expert attributed to reduced possibilities for countries to negotiate trade-offs across issues.Movement in other negotiating areas important
According to a trade source, many developing countries, notably least developed countries (LDCs), African, Caribbean and Pacific (ACP) countries and Africa Group members supported further discussions of modalities for trade facilitation within a working group. Once the modalities had been sufficiently clarified within the working group, they would agree to negotiate. The LDC group further conditioned any agreement on developments in other areas.
Certain developed countries, including Canada, the US and Switzerland, reportedly declared themselves ‘demandeurs’ for talks on trade facilitation.
A number of Latin American developing countries indicated that they could consider negotiations on trade facilitation as well as transparency in government procurement. However, they said they required greater clarity on technical aspects, and needed to see movement in other negotiating areas, especially agriculture. Chile, supported by a few other Members, was in favour of deferring any decision on negotiating investment and competition policy. India reiterated its position that the Singapore issues were not part of the single undertaking. According to a developed country trade source, Brazil surprised other Members by stating that the Singapore issues were very much part of the Doha Agenda and that the ‘demandeurs’ would have to pay to keep them there. The EC reportedly responded by saying that the EC was not a ‘demandeur,’ and was willing to contemplate the possibility of one or more of the Singapore issues being negotiated outside the single undertaking.
Investment, competition policy likely to drop off ‘radar screen’
Investment and competition policy appear set to disappear from the radar screen for the moment. Chair Perez del Castillo reportedly does not intend to include these issues in further informal consultations this year.
A European diplomat said that the EC strategy paper on the post-Cancun process (see related story, this issue) showed that the EC was willing to show flexibility in three areas, namely, including the Singapore issues. He pointed out, however, that the EC was the only Member showing some flexibility, and that others needed to come on board and engage ‘constructively’. He added that it "takes all 148 Members to tango at the WTO".
Chair Carlos Perez del Castillo reportedly feels enthusiastic about examining further the possibility of a general agreement on trade facilitation and, perhaps, on transparency in government procurement. A further informal meeting is expected to take place Thursday afternoon, 4 December. However, according to one developing country trade source, this meeting was likely to reveal that differences still persist on how to approach trade facilitation. The source stated that the Chair favoured presenting the modalities contained in an annex to the 13 September "Derbez text" at the meeting. However, many developing countries are not yet ready to proceed based on this text.
WTO Deputy-Director General Rufus Yerxa has been assigned by Chair Perez del Castillo to conduct discussions on the Singapore issues. A meeting of the ‘core-group’ of developing countries on the Singapore issues is also set to take place shortly.
ICTSD reporting.
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