Trade: Concerns over draft Ministerial text
(Goh Chien Yen) -- The draft Ministerial text put forward on 26 November by the WTO Director-General and the General
Council chair received some pleasantries over the so-called 'bottom up' approach on how the text was put together, with
several developing countries however highlighting the fact that many parts of the current draft did not enjoy the
agreement of all members.
Source: http://www.twnside.org.sg/ Third World Network
Nepal, speaking on behalf of the Group of Least Developed Countries, said that they were "deeply concerned that some of
these reports [appended to the draft ministerial text as annexes], that could be a guide for Ministers in Hong Kong, did
not go through the agreed modalities and consultative process."
The LDCs pointed out that "it has been the general understanding of the Members that the reports of the Chairs would be
made to the TNC (Trade Negotiating Committee) and that a separate text would be negotiated and agreed upon for inclusion
in the draft Ministerial Text." This had not taken place.
As such, the LDCs wanted an "assurance that these reports, particularly on Agriculture and NAMA, that are prepared under
the responsibility of the respective Chairs as they see the negotiations, will neither alter the Doha mandate" nor the
July framework adopted last August. More specifically, "this assurance should be in paragraph 2 of the Draft Ministerial
Declaration," the LDCs underscored. "Without such an assurance there has to be a reference to the effect that neither
the Doha mandate nor the [July framework] would be affected by the chairs' reports, in each paragraph [in the
Declaration] that refers to a Chair's report", the LDC added.
Several developing country members also objected to the services part of the draft ministerial declaration. Malaysia
pointed out that there was "no consensus on Chair's text" on services, which now formed Annex C of the draft
declaration, and that it was also imbalanced in relation to the parts of the draft declaration on agriculture and NAMA.
The services text is "too prescriptive" and "recalibration is needed" in line with the agriculture and NAMA annexes,
Malaysia argued. Malaysia expressed its concern that Annex C on services went beyond the agreed modalities as contained
in the Doha mandate.
This concern was shared by many other developing countries including Jamaica, Nigeria, Barbados, Trinidad and Tobago,
Thailand, Indonesia, Venezuela and the Philippines.
Nigeria articulated its concern over the inclusion of what it regarded as new elements to the negotiations such as
sectoral and modal objectives and the plurilateral approach and reiterated the need for the negotiations to be based on
the GATS architecture. Nigeria proposed that "only issues which enjoy consensus are to be reflected in the Annex on
services."
Jamaica, Indonesia, Thailand and others underscored the fact that the services text is not a consensus document, and has
not been approved by members. They also pointed out that divergences between members have not been reflected in the
text. They therefore proposed that the service annex be "recalibrated."
Kenya suggested that in so doing, elements could be taken from the Arusha Declaration of African Trade Ministers.
Delegates also raised concerns with other parts of the draft Declaration. Several developing country members such as
India and Nigeria had difficulties with the current Annex on NAMA. They were of the view that important negotiating
principles and precepts, in particular "less than full reciprocity" in tariff reduction commitments and special and
differential treatment were not sufficiently defined and clarified in the Chair's report on NAMA.
In relation to the Chair's report on agriculture, appended as Annex A to the draft declaration, the G20 stated their
disappointment with the substance of the report, as it shows that members "are still very far away from completing the
modalities for agriculture negotiations." Brazil, speaking on behalf of the G20, wanted to see the ministerial Draft
improved. One possibility of doing so "would be to try to highlight areas of convergence in the chair's report and
introducing them in the main text of the Declaration."
The G20 also suggested that issues for negotiations by Ministers in Hong Kong should be identified. "They should cover
the central elements in the three pillars, having in mind the need for proportionality of commitments. These issues
would include formulae for cuts and adequate disciplines in domestic support, formula for tariff reduction, sensitive
products, special products and SSM."
On export competition, in which there is an agreement for elimination, the definition of a date and how to treat
parallelism could provide much need push for progress. Indonesia speaking on behalf of the G33 wanted to see their
recent and detailed proposal on SSM to be acknowledged in the Chair's report. This was supported by other delegations
including the LDC group.
Benin and the LDC group also wanted the Annex to the draft Declaration on agriculture (Annex A) to be amended so that
the "modalities on Cotton be reflected in the main text of the Annex as opposed to keeping them as footnotes," as they
currently are.
During the informal HOD, the EC was of the view that the text annexes are unambitious and imbalanced, such as between
the annexes on agriculture and NAMA. It said that "there needs to be more homogeneity" and this should be taken up at
the TNC.
The EC felt that there should be more "explicit progress in the Declaration language, and that members have to ensure
that HK will produce a balanced outcome in each sector and across the sectors. Contrary to many developing country
members' perspectives, it pointed out that "progress in services and rules are lagging behind agriculture."
On the way forward, Director-General Pascal Lamy suggested that members should focus on agriculture, NAMA and Special
and Differential Treatment parts of the draft declaration, "from now until the end of this week, since there remain wide
divergences on these issues." As for the other issues, they should be put aside for the moment, he advised, despite the
serious disagreements over them.