The Impact of the Doha Development Agenda Negotiations on Developing Countries

1
The Impact of the Doha Development Agenda
Negotiations on Developing Countries

• DELHI, May 2006
• Vilaysoun Loungnarath

2
The Benefits of Trade to Developing Countries

• The link between trade and growth development
  is hotly debated by economists
• General acceptance that trade is an engine of
  economic growth and development
• Developing countries accept this fact and are
  determined to participate effectively in the Doha
  Development Agenda (DDA) negotiations and play a
  greater role in the multilateral trading system
• The potential benefits from the liberalization of
  trade

3
Developing countries broad interests in the DDA
Negotiations

• Developing countries are targeting the subsidies
  provided by developed countries to their farming
  sectors
• They are also targeting tariff peaks and tariff
  escalation as well as non-tariff barriers which
  prevent them from adding value to their
  commodities and other products
• In addition, they are pressing for policy space
  special and differential treatment to implement
  development-friendly policies

4
Challenges Facing Developing countries in the
Multilateral Trading System

• Developing countries will be required to give
  reciprocal concessions in the negotiations
  reduction of tariffs on both industrial and
  agricultural products and opening up certain
  service sectors to allow foreign participation
• There could be short-terms costs, including the
  possible loss of jobs in certain key sectors of
  developing countries economies, including the
  textiles and clothing industry
• Imperative that their firms become competitive
  and find a niche for certain product categories
  in their major export markets

5
Challenges in the Multilateral Trading System

• Supportive Government policies to assist firms to
  become competitive
• Supportive policies by major trading partners
  removal of subsidies, improvement of preferential
  schemes by simplifying rules of origin
• Improved technical assistance and
  capacity-building with the aim of addressing
  supply-side constraints which have prevented
  developing countries from participating
  effectively in the Multilateral Trading System

6
Challenges in the Multilateral Trading System

• Challenges are immense but so also are the
  opportunities for developing countries
• They have an opportunity to request their major
  trading partners to eliminate or reduce
  significantly barriers to their exports
• Increased exports are likely to generate
  employment and raise living standards
• They could attract investments into certain key
  sectors of the economy, particularly in the
  services sectors, which could generate positive
  welfare effects for them

7
Challenges in the Multilateral Trading System

• Developing countries can take advantage of the
  DDA negotiations to implement difficult but
  necessary reforms to improve the efficiency of
  their economies
• A strengthened multilateral trading system as a
  result of the DDA negotiations will be to the
  advantage of small developing countries
• It will safeguard their interests and ensure that
  their exports are not subjected to arbitrary
  measures discriminatory tariffs, unjustified
  technical standards and sanitary and
  phytosanitary measures

8
Main Elements of the DDA Negotiations

• Negotiations were launched at Doha, Qatar in Nov
  2001 in the following areas agriculture,
  services, non-agricultural market access, rules,
  dispute settlement, environment, TRIPS
• Implementation issues para. 12 of the
  Declaration
• Issue of GI Extension - paras 12 and 18 Opinions
  divided on whether it is a negotiating issue
• Singapore Issues to be negotiated only on the
  basis of an explicit consensus i.e. agreement
  among all present Members

9
Main Elements of the DDA Negotiations

• Special and differential treatment for developing
  countries
• Work to be pursued under the auspices of the
  General Council Constituent elements of the
  Doha Work Programme but not part of the Single
  Undertaking
• Electronic Commerce para. 34
• Small Economies para. 35
• Trade, Debt and Finance para. 36
• Trade and Transfer of Technology para. 37
• relationship between the TRIPS Agreement and the
  Convention on Biological Diversity, the
  protection of traditional knowledge and folklore
  (para19)

10
Main Elements of the DDA Negotiations

• Negotiations were supposed to have been concluded
  by 1 January 2005
• Principle of the Single Undertaking (nothing
  agreed until everything is agreed) except for the
  negotiations on dispute settlement
• Various Negotiating Groups were established by
  the Trade Negotiations Committee (TNC) to conduct
  the negotiations
• Membership of these bodies were open to any WTO
  member and acceding countries with accession
  Working Parties established
• Cancún Ministerial Conference was supposed to
  review progress made in the negotiations (10-14
  September 2003) and take any appropriate decisions

11
Elements of the July 2004 Decision Agriculture
12
AGRICULTURE

• Reaffirmation of the mandate in paragraph 13 of
  the Doha Ministerial Declaration
• Long-term objective of establishing a fair and
  market-oriented trading system through a
  programme of fundamental reform
• Final balance to be found only at the conclusion
  of negotiations and within the single undertaking
• Modalities to be developed will need to
  incorporate operationally effective and
  meaningful provisions for SD.
• Reform of 3 pillars (market access, domestic
  support, export competition) form an
  interconnected whole and need to be approached in
  a balanced and equitable manner

13
AGRICULTURE COTTON -1b

• It is Recognized that cotton plays a vital role
  in the economies of several developing countries,
  particularly LDCs
• The issue is to be addressed ambitiously,
  expeditiously, and specifically within the
  Agriculture negotiations
• A special Session of the Committee on Agriculture
  will ensure appropriate prioritization of the
  cotton issue independently from other sectoral
  initiatives
• A sub-committee on cotton will be established and
  will meet periodically and report to the Special
  Session to review progress
• Work should encompass all trade distorting
  policies affecting the sector in all three
  pillars of market access, domestic support and
  export competition, as specified in the Doha text
  and also in the Framework

14
Domestic Support

• Overall support (amber de minimis blue) to be
  reduced by a tiered formula. 20 cut in the first
  year of implementation
• Amber Box (supports having a direct impact on
  prices and quantities) tiered formula, so that
  higher levels are reduced more caps on support
  provided to individual products reductions to be
  made on some
• Green Box (currently unlimited, e.g.
  environmental protection, rural development)
  Review and monitor
• Blue Box (distorting supports but less so because
  of production limits or other criteria) to be
  capped at 5 of value of production, some
  flexibility envisaged
• De minimis (minimal amounts of amber-type
  supports) To be reduced percentage to be
  negotiated. SD for developing countries
  exemption of support to subsistence and
  resource-poor farmers

15
Export Subsidies

• Parallel elimination of all forms of export
  subsidies. Disciplines on all measures of
  equivalent effect subsidised credit, credit
  guarantees, insurance, state trading enterprises,
  food aid etc
• Max 180-day repayment on credit, food aid, state
  trading enterprises etc
• Other subsidised credit, food aid, state trading
  enterprise (monopolies) disciplines to be
  negotiated
• End date for the phase out of all form of export
  subsidies to be negotiated
• SD for developing countries right to have
  recourse to Art.9.4 (subsidies to reduce costs of
  marketing exports of ag products/subsidized
  internal transport and freight charges) of the
  Agreement of Agriculture to be maintained until
  removal of all forms of exports subsidies and
  implementation of all disciplines
• Due account to be taken of the interests of LDCs
  and NFIDCs in the formulation of disciplines on
  export credits, export credit guarantees etc.
• Special consideration to be given to STEs which
  enjoy special privileges in order to preserve
  domestic consumer price stability and food
  security Possibility of ad-hoc financial
  arrangements in exceptional circumstances

16
Market Access

• Substantial improvements in market access for all
  products
• Reductions to be made using a tiered (banded)
  formula
• Progressive tariffs in higher tiers to be
  subject to deeper cuts
• To be negotiated how many tiers, which
  formula(e), sensitive/special products, quotas
• Sensitive products flexibility for Members, but
  substantial market access improvement for every
  product
• SD for developing countries more time, gentler
  cuts, Special Safeguard Mechanism SSM, Special
  Products SP, improved access for tropical
  products, narcotic replacement crops
• LDCs not required to undertake reduction
  commitments duty-free and quota-free access for
  LDC products, importance of cotton to LDCs
• Preference erosion to be addressed

17
AGRICULTURE July 2005 Job(05)/163 126 MA

• Both the DG and the Chairman Groser noted that
  negotiations stuck over another gateway issue
  the structure of the tiered formula for tariff
  cuts
• Key issue is whether progressivity should be
  achieved solely through the number of tiers or
  through the number of tiers and also on the
  nature of the formula(e) within the tiers
• Another key issue is how to deal with
  sensitivities should the criteria be based
  solely on food security, livelihood security and
  rural development needs, or should the formula
  itself contain some flexibilities
• Growing acceptance that the G-20 formula offers
  a possible way forward
• Solving this issue is important if progress is
  also to be made on SSM, tariff peaks and
  escalation, preference erosion, tropical products
  etc

18
AGRICULTURE July 2005 Job(05)/163 126 DS

• With respect to domestic support, a key issue is
  the structure of the reduction commitments,
  particularly with respect to the tiered formula
  for reductions of the Final Bound Total Aggregate
  Measurement of Support AMS (domestic
  subsidization policies having a direct effect on
  production and trade)
• Where should the 3 largest users (EC -60
  billion Japan - 36 billion and the U.S. 19
  billion of the amber box be placed)? Should there
  be 3 or 4 tiers? A further question is whether
  they should be placed in the higher category
• What flexibilities should be provided to
  developing countries
• How to handle product-specific AMS caps? Tied to
  the structure of the formula and depth of cuts
• What about de minimis Is it simply a matter of
  the size of the cut or should they be eliminated?

19
AGRICULTURE July 2005 Job(05)/163 126 DS

• With respect to Blue box, the challenge is to
  ensure that they are less trade-distorting than
  AMS measures is capping at 5 satisfactory?
• Complex linkages would depend on the size of
  the cut of the AMS and de minimis
• With regard to Green Box measures, how do you
  ensure that they satisfy the overarching
  criterion of no or at most minimal
  trade-distorting effects or effects on
  production
• What flexibilities should be provided to
  developing countries?

20
AGRICULTURE July 2005 Job(05)/163 126 ES

• Need to flesh out parallel commitments in export
  credits, State Trading Enterprises (STEs) and
  Food Aid
• Defining the credible end date
• Need to develop additional disciplines on export
  credits of 180 days or less
• Should STEs continue to have monopoly powers,
  what constraints should be placed on them
• What disciplines should be enacted with respect
  to subsidies, government financing and
  underwriting of losses
• Which flexibilities should be granted to
  developing countries

21
AGRICULTURE July 2005 Job(05)/163 126 ES

• With regard to food aid, how do you achieve a
  balance between preventing commercial
  displacements and giving genuine assistance to
  people in vulnerable countries who need food aid
• With respect to cotton , how can the mandate be
  met? Should discussions be fast-tracked and
  should obligations be front-loaded
• Action on the development aspects of the cotton
  mandate

22
AGRICULTURE HK MIN DEC

• Establish modalities no later than 30 April 2006.
  (Paragraph 10)
• Complete disciplines on export credits, export
  credit guarantees or insurance programmes,
  exporting state trading enterprises and food aid
  by 30 April 2006 as part of modalities.
  (Paragraph 6)
• Date (2013) for elimination of all forms of
  export subsidies, together with agreed
  progressivity and parallelism, to be confirmed
  only upon completion of modalities. (Paragraph
  6)
• Submit comprehensive draft Schedules based on
  modalities no later than 31 July 2006.
  (Paragraph 10)

23
AGRICULTURE HK MIN DECCotton

• All forms of export subsidies for cotton to be
  eliminated by developed countries in 2006.
  (Paragraph 11)
• Director-General to furnish updates on
  development assistance aspects, at appropriate
  intervals, to General Council. (Paragraph
  12)modalities no later than 30 April 2006.
  (Paragraph 10)

24
NAMA Job(05)/147 and Add.1

• Progress has not been very rapid probably
  because of the lack of substantive progress in
  agriculture
• Need to agree on the structure of the formula
  some Members do not want to discuss numbers
  without first having a defined structure, while
  others have problems discussing the structure
  without first having the numbers
• Key issue is how to strike a balance between the
  level of ambition and the flexibilities to be
  allowed developing countries. Structure of the
  formula is less contentious
• The roadblock can only be removed if Members
  start discussing numbers and engage in real
  discussions about trade-offs
• Broad support for the use of the Swiss Formula as
  the central tariff cutting mechanism

25
Swiss - Swiss type

• Original Swiss formula
• Coefficient a fixed exogenously
• Swiss-type
• Coefficients are function of other variables
  (e.g., taking into account credits, tariff
  profiles, etc ...)
• a1 can be equal or smaller than a2

26
Girard /Derbez Formula

• T1 ( B x Ta x T0 ) 1 x 5 x 5 25 2.5
• ( B x Ta T0 ) (1 x 5) 5 10
• Where,
• T1 is the final tariff rate, to be bound in ad
  valorem terms
• T0 is the base tariff rate
• Ta is the average of the base tariff rates
• B is a coefficient with a unique value to be
  determined by the participants

27
NAMA Job(05)/147 and Add.1

• Issue is whether there should be a limited number
  of co-efficients or whether there should a
  largely pre-determined coefficient for each
  member using its tariff average as a starting
  point
• Growing support for the first option but there
  remains some hurdles which have to be cleared
• Only way out is to plug in the actual numbers. A
  numbers-based negotiation should address both the
  actual levels of co-efficients and the final
  numbers to be used in paragraph 8
• Growing acceptance of the principle of applying
  formal cuts to unbound tariffs and using a
  non-linear mark-up approach as opposed to a
  linear mark up.
• Some difficulties for Members having low unbound
  tariffs

28
NAMA Job(05)/147 and Add.1

• With respect to countries falling under paragraph
  6, whether they should be obliged to bind all
  their tariffs or whether should be encouraged to
  bind their tariffs (i.e. not obligatory)
• With regard to paragraph 8, the key questions
  are whether the flexibilities foreseen in this
  paragraph should remain intact and separate from
  the formula whether they should be modified
  through a mechanism which creates a trade-offs
  between the formula and these flexibilities, and
  whether the flexibilities should be eliminated in
  exchange for a higher co-efficient for
  developing-country Members
• With respect to paragraph 9, recognised that LDCs
  do not have to make tariff reductions, should
  they be expected to increase substantially the
  level of their tariff bindings
• What about improved market access for them?

29
NAMA Job(05)/147 and Add.1

• With respect to paragraph 7 sectoral tariff
  component the key issues are product coverage,
  participation and SD.
• Work taking place in informal Member-driven
  processes based on the critical mass approach.
  Work focussing on the ff electronics/electrical
  equipment, bicycles and sporting goods,
  chemicals, fish, footwear, forest products, gems
  and jewellery, pharmaceuticals and medical
  devices, and raw materials
• Transparency has been raised results shall be
  binding and applied on MFN basis
• How to take account of the interests of Recently
  Acceded Members
• With regard to para. 12, which supplementary
  modalities should be envisaged?

30
NAMA Job(05)/147 and Add.1

• With respect to paragraph 13, how to handle the
  issue of the elimination of low duties
• With regard to NTBs, the phase of identifying and
  categorizing notified NTBs is complete. The
  second phase is the examination and negotiation
  of such NTBs. Modalities being used bilateral,
  vertical and horizontal
• Need for more written proposals from Members.
  Transparency should be assured as process is
  increasingly being Member-driven.
• With regard to para. 15, how to ensure that
  appropriate studies are carried out and build the
  capacity of developing countries to participate
  effectively in the negotiations simulations
• With regard to para. 16, how to handle the issue
  of non-reciprocal preferences and tariff revenue
  dependency
• With respect to para. 17 on non-agricultural
  environmental goods, list being complied in
  Com.T.Envir. Special Session.

31
NAMA HK MIN DEC

• Establish modalities no later than 30 April 2006.
  (Paragraph 23)
• Submit comprehensive draft Schedules based on
  modalities no later than 31 July 2006.
  (Paragraph 23)
• May seminar on preference erosion related
  problems (agriculture NAMA).

32
SERVICES

• Modest progress in the negotiations. Currently,
  70 offers have been tabled by Members, counting
  the EC-25 as one. Thus 95 offers received thus
  far (14.02.2006)
• Excluding 32 LDCs who are not required to table
  any offers, 12 Members are yet to submit their
  initial offers. Counting LDCs, the figure is 44.
  
• 31 revised offers have been submitted by Members
  (14.02.2006)
• The May 2005 deadline has been a catalyst in
  getting Members to respond
• While the number of offers and revised offers
  have improved, the quality of the offers is far
  from encouraging. Few, if any, provide new
  business opportunities to service suppliers. If
  current offers were to enter into force, the
  average number of sub-sectors committed by
  Members would increase only from 51 to 57

33
SERVICES

• Overall, feeling among delegations that
  negotiations are not progressing as they should.
  Members outlined their objectives and aspirations
• Need for the quality of offers to improve if a
  deal is to be struck. Need for real policy and
  regulatory reforms leading to market opening
• Recognition that request-offer method alone is
  not producing the desired results.
  Resource-intensive and time-consuming. Some
  Members urged other approaches to hasten the
  negotiations
• With respect to the rules aspect of the
  negotiations, some limited progress in the
  elaboration of disciplines on domestic regulation
• Not much progress on GATS rules emergency
  safeguards measures and government procurement

34
SERVICES

• Importance of the modalities for the special
  treatment of LDCs and their increased
  participation in the negotiations stressed. Role
  of technical assistance alluded to. Paper by LDCs
  discussed (Job(05)/114)
• LDC expectations include realising export
  opportunities on mode 4 (movement of natural
  persons in services trade), appropriate
  mechanisms for effective access for LDC services
  exports, and measures aimed at increasing LDC
  participation in trade in services
• With respect to assessment of trade in services,
  a substantive discussion took place on the basis
  of a submission by Cuba. Presentation made by
  UNCTAD
• Much work remains to be done.

35
SERVICES HK MIN DEC

• Any outstanding initial offers shall be submitted
  as soon as possible. (Annex C, paragraph 11(a))
• Submission of plurilateral requests by Groups of
  Members by 28 February 2006 or as soon as
  possible thereafter. (Annex C, paragraph 11(b))
• Members to strive to complete requirements in
  9(a) (develop appropriate mechanisms for
  according special priority including to sectors
  and modes of supply of interest to LDCs) before
  (31 July 2006). (Annex C, paragraph 11(e))
• Second round of revised offers to be submitted by
  31 July 2006. (Annex C, paragraph 11(c))
• Final draft schedules of commitments shall be
  submitted by 31 October 2006. (Annex C, paragraph
  11 (d))

36
TRIPS

• It appears that delegations positions have not
  evolved very much on the fundamental issue in the
  negotiations.
• On the one hand, some Members are advocating a
  database system to which Members would have
  regard when deciding which GIs to protect
  nationally.
• Others are advocating a registration system
  which, once a name has been registered at the
  multilateral level, would create a presumption of
  protectability at the national level in a Member,
  unless the notified name has been opposed by that
  Member

37
TRIPS

• In his last report to the TNC, the Chairman
  stated that there has been an increase in the
  level of activity in the Special Session. New
  proposals have been submitted
• Although negotiations were useful in elucidating
  the positions of Members, they did not succeed in
  narrowing the positions of Members
• Differences still persist on the merits of the
  different proposals and their consistency with
  the mandate of the Special Session as contained
  in para 18 of the DMD

38
TRIPS

• The two key points of difference that continue to
  impede progress are (i) the extent to which
  legal effects at the national level should be
  consequent on the registration of a GI in the
  multilateral system, and (ii) the extent to which
  such effects should apply in all WTO Members or
  only those opting to participate in the system
• There are other issues which would also need to
  be further considered costs and administrative
  burdens
• If progress is to be made, need for flexibility
  on all sides
• In HK MIN DEC Intensify negotiations in order to
  complete them within the overall time-frame for
  the conclusion of the negotiations (in 2006).
  (Paragraph 29)
• July working document to be tabled.

39
RULES

• A substantial result in the rules negotiations is
  one of the pillars of a successful DDA ( all
  three areas of dumping, subsidies, including
  fisheries subsidies and Regional Trade
  Agreements) should make their contribution to
  overall balance
• The Neg. Group has substantially intensified its
  work. With respect to dumping and subsidies,
  the NGs plenary and informal processes have been
  supplemented with bilateral and plurilateral
  consultations directed by the Chairman, which
  work on the basis of third generation
  submissions proposing specific changes to the
  Agreement text
• The objective is to identify areas of particular
  and salient interest to participants and to
  encourage a concrete and precise discussion
  involving real engagement with a view to
  identifying solutions

40
RULES

• The expectation that it would give the NG the
  most realistic sense of areas in which some
  progress may be possible, and the types of
  changes that might be acceptable to all members
• Political input will be necessary to move
  forward the negotiations
• Process should be sharpened by limiting work to
  precise textual proposals to improve the
  Agreements on Anti-Dumping and Subsidies and
  Countervailing Measures
• On Regional Trade Agreements, good progress has
  been made. A draft decision text for a new
  process to improve RTA transparency has been
  developed on the basis of intense informal debate
  within the Group
• Work is done on the application of new process
  to agreements notified under the Enabling Clause

41
RULES HK MIN DEC

• Participants promptly to undertake further
  detailed work on disciplines on subsidies in
  fisheries sector. (Annex D, section I, paragraph
  9)
• March proposals in the form of detailed legal
  drafting.
• Group to complete process of analysing proposals
  by participants as soon as possible. (Annex D,
  section I, paragraph 10, AD/SCM)
• April tabling of remaining proposals on AD/SCM
  including fisheries subsidies.
• June analysis of all proposals to be completed.
• Chairman to prepare, early enough to assure
  timely outcome within context of 2006 end date
  for DDA, consolidated texts of AD and SCM
  Agreements that shall be the basis for final
  stage of negotiations. (Annex D, section I,
  paragraph 11)
• July target date for the submission of
  consolidated texts by the Chairman.

42
RULES (Regional Trade Agreements HK MIN DEC

• Negotiating Group to intensify efforts to resolve
  outstanding issues, with a view to provisional
  decision on RTA transparency by 30 April 2006.
  (Annex D, section II, paragraph 2)
• January Chairman's working document
  (circulated).
• Negotiating Group to intensify negotiations,
  based on text proposals as soon as possible, so
  as to arrive at appropriate outcomes by end 2006.
  (Annex D, section II, paragraph 3)
• January Chairman's working document (circulated).

43
DISPUTE SETTLEMENT

• Work progressing at a satisfactory pace
• The Special Session is examining proposals tabled
  by Argentina, Brazil, Canada, India, Mexico, New
  Zealand and Norway, Japan, the EC and the U.S.
• Proposals cover remand authority for the
  Appellate Body (send issues back to the panel to
  make further findings of facts), sequencing
  between Articles 21 and 22 of the DSU (compliance
  panel versus retaliation), post-retaliation
  (reduction of the level of suspension or
  withdrawal of the retaliatory measures),
  transparency and panel composition

44
DISPUTE SETTLEMENT

• Process to be intensified
• Objective is to make a substantial progress
• Chair encouraged delegations to consult among
  themselves, so as to clarify positions and build
  consensus around proposals. Negotiations to move
  to a text-based negotiation
• Combination of formal and informal meetings

45
DISPUTE SETTLEMENT

• Special Session to continue to work towards rapid
  conclusion of negotiations. (Paragraph 34)
• March/April revised contributions on specific
  issue.
• July presentation of Chairman's draft working
  document.

46
ENVIRONMENT

• With respect to paragraph 31(i) relating to the
  relationship between WTO rules and multilateral
  environment agreements, the negotiations had
  entered into a phase of substantive discussions.
• Some delegations have requested that national
  experiences should be shared with the Committee
  on Trade and environment Special Session (CTESS)
  and coordinated between trade officials and
  environment officials
• Coordination at the national level key to
  preventing conflicts between Multilateral
  Environment Agreements (MEAs) and WTO obligations
  at the international level
• In parallel to the national experience sharing,
  some members have begun to discuss potential
  outcomes examining the principles that underlie
  the MEAs-WTO relationship

47
ENVIRONMENT

• With respect to paragraph 31(ii) relating to
  exchange of information between MEAs Secretariats
  and relevant WTO Committees, a number of
  delegations called for improved coordination at
  the international level
• Some delegations highlighted the linkages between
  paragraphs 31(i) and (ii). The Chair encourages
  delegations to explore potential synergies
  between the first and second parts of the mandate
• On paragraph 31(iii), the Chair stated that he
  was encouraged by the level of engagement that
  has taken place . Numerous submissions have been
  made, including the submission of lists of
  environmental goods (e.g. products to manage
  pollution or natural resources, goods
  environmentally friendly in their production)

48
ENVIRONMENT

• As far as negotiations on para. 31(iii) are
  concerned, there is a need to agree as early as
  possible on the overall approach to be adopted
  Should the focus be on a list-based approach or a
  project approach or a combination of the two?
• The pace of negotiations tied to progress in
  other areas, particularly the NAMA negotiations
• There is need to make progress on what
  constitutes an environmental good
• There is also need to identify environmental
  goods which are of export interest to developing
  countries
• The overall objective should be to deliver both
  environmental and trade gains

49
ENVIRONMENTHK MIN DEC

• Members to intensify the negotiations, without
  prejudging their outcome, on all parts of
  paragraph 31 to fulfil the mandate. (Paragraph
  30)
• September with regard to sub-paragraphs 31 (i)
  and (ii) begin negotiations based on drafts.
• Members to complete work expeditiously under
  paragraph 31 (iii). (Paragraph 32)
• April clarification of parameters to fulfil the
  mandate in this area.

50
S D

• Members attempted to find a new approach that
  would take forward the work on SD, e.g. longer
  time periods for implementing agreements and
  commitments, measures to increase trading
  opportunities, support to build trade policy
  infrastructure, etc.
• The Chair had suggested that it would be more
  productive if the underlying reasons of the 88
  Agreement-specific proposals were identified.
  Proposals could be redrafted and where necessary
  discussed in cross-cutting thematic clusters
• Chairs proposal would have meant discussing
  Agreement-specific proposals in parallel with
  cross-cutting thematic issues
• Chair conceded that some Members, particularly
  developing countries had strong reservations
  against the proposed strategy of the Chairman.
  View that the Special Session should stick
  closely to its mandate in paragraph 44 of the
  Doha Declaration

51
S D

• The Chairman addressed the remaining Category I
  and Category III agreement-specific proposals in
  the two thematic clusters suggested in his
  conceptual approach enhanced flexibility for
  developing countries in WTO rules and enhanced
  technical assistance and capacity building for
  developing countries
• The intention was to address the proposals in
  each of the clusters along with the underlying
  cross-cutting issues related to that thematic
  cluster
• Assurances from Chairs of WTO bodies to which
  category II issues have been referred that they
  are looking at ways to re-invigorate the
  discussions on them in their respective bodies

52
S D

• The Chairman carried out informal consultations
  on the way forward. He appealed to developed
  countries to put the ghost of differentiation to
  rest and urged developing countries to show
  flexibility and consider issues on their merits
• During consultations, it was agreed that work on
  the agreement-specific proposals should resume.
  Further agreed that priority should be given to
  LDC issues covering waivers, the Enabling Clause,
  TRIMS and the Decision on Measures in Favour of
  LDCs.

53
S D

• Progress made on the LDC issues, but there has
  been no agreement to harvest them. Some doubts
  were expressed about the economic value of the
  proposed decisions in terms of facilitating the
  integration of LDCs into the MTS
• A lot of work remains to be done. If an
  agreement was to be reached on the LDC issues, it
  would be necessary to address the remaining
  agreement-specific proposals which are of vital
  interest to developing countries
• Other outstanding issues are the inclusion of
  the cross-cutting issues, the monitoring
  mechanism and the incorporation of SD treatment
  into the architecture of WTO rules

54
DEVELOPMENT ISSUES HK MIN DEC

• Special and Differential Treatment
• Members to notify implementation of schemes
  adopted under decision every year to Committee on
  Trade and Development. (Annex F 36, Decision
  on Measures in Favour of Least-Developed
  Countries)
• by September developed-country Members to notify
  the means by which they will implement the
  decision.
• by December developing-country Members declaring
  themselves in a position to do so to notify the
  means by which they will implement the decision.
• CTD to conduct a review on an annual basis of all
  steps taken by Members to provide duty-free and
  quota free market access for all
  products originating from LDCs. (Annex F 36,
  Decision on Measures in Favour of Least-Developed
  Countries)
• November CTD to conduct first review.

55
DEVELOPMENT ISSUES HK MIN DEC

• SD
• Committee on Trade and Development in Special
  Session to expeditiously complete review of all
  outstanding Agreement-specific proposals and
  report to General Council, with clear
  recommendations for decision, by December 2006.
  (Paragraph 36)
• May, July, October General Council meetings.
• WTO bodies and negotiating groups to which
  Category II proposals referred to expeditiously
  complete consideration of proposals and report
  periodically to General Council, with objective
  of ensuring that clear recommendations for
  decision are made no later than December 2006.
  (Paragraph 37)
• May, July, October General Council meetings.
• Special Session to report on all other
  outstanding issues on regular basis to General
  Council. (Paragraph 38)
• May, July, October General Council meetings.

56
DEVELOPMENT ISSUES HK MIN DEC

• Implementation
• Director-General to report to each regular
  meeting of TNC and General Council Council to
  review progress and take any appropriate action
  no later than 31 July 2006. (Paragraph 39)
• February-June DG to report to TNC and General
  Council (notably on GIs and TRIPS/CBD).
• Integrated Framework
• Task Force to provide recommendations to IFSC by
  April 2006. (Paragraph 49)
• Enhanced IF to enter into force no later than
  31 December 2006. (Paragraph 49)
• July report by Director General to the General
  Council.

57
DEVELOPMENT ISSUES HK MIN DEC

• Aid for Trade
• Director-General to create Task Force Task Force
  to provide recommendations to General Council by
  July 2006. (Paragraph 57)
• February setting up of Task Force.
• DG to hold consultations and report to General
  Council on appropriate mechanisms to increase
  financial resources for Aid for Trade.
  (Paragraph 57)
• March, May Director General to consult with
  Members and Agencies.
• July General Council discuss Task Force
  recommendations.
• September/October Annual Meetings of the
  IMF/World Bank (Washington) Trade-Finance-Develo
  pment Ministers discussion of Aid-for-Trade
  package for DDA.
• December Aid-for-Trade programme and enhanced IF
  become operational.

58
DEVELOPMENT ISSUES HK MIN DEC

• Small Economies
• Committee on Trade and Development to continue
  work in Dedicated Session and to monitor progress
  of small economies proposals in negotiating and
  other bodies, with aim of providing responses to
  trade-related issues of small economies as soon
  as possible but no later than 31 December 2006.
  (Paragraph 41)
• July deadline for addressing proposals.
• April-December monitoring progress on topics of
  interest to small economies in other areas of
  negotiations, in particular Agriculture and NAMA,
  with aim of providing responses to trade-related
  issues of small economies.

59
TRADE FACILITATION

• Since its establishment on 12 October 2004, the
  Group has met on a number of occasions and agreed
  to a work plan and schedule of meetings. Good
  progress is being made in the negotiations
• Work has proceeded on the basis of contributions
  from Members and inputs from other relevant
  international organizations. Developing countries
  have been very active and have submitted a number
  of proposals.
• Presentations have been made by the WTO
  Secretariat on the main legal framework under
  discussion and the technical assistance provided
  by the WTO
• Presentations have also been made by the World
  Bank, World Customs Organization and UNCTAD on
  the work they are doing on trade facilitation.
  This creates synergies and avoids duplication of
  functions

60
TRADE FACILITATION

• Mandate of the Group is to clarify and improve
  relevant aspects of Articles V, VIII and X of the
  GATT 1994
• Proposals have focused on these articles,
  particularly Articles VIII and X, as well as
  other on other elements of the mandate, including
  cost implications, technical assistance and
  capacity building
• Examination of proposals underway would help
  increase Members understanding of the proposals
  and lay the ground work for consensus to be built
  around them
• Overall good progress is being made.
• The main challenge is how to strike the right
  political balance between the level of ambition
  and the degree of political commitment to policy
  reform that will be acceptable in an eventual
  agreement
• The importance of SD is stressed in that regard.
  Developing countries would need time, technical
  and financial support to implement reforms
  domestically

61
TRADE FACILITATIONHK MIN DEC

• Members to be mindful of overall deadline for
  finishing negotiations and resulting need to move
  into focussed drafting mode early enough after
  Sixth Ministerial Conference so as to allow for
  timely conclusion of text-based negotiations on
  all aspects of mandate. (Annex E, paragraph 4)
• February submission and discussion of proposals
  on all three pillars (Articles, Special
  Differential Treatment and Technical Assistance
  Capacity Building).
• July first full draft, report to the TNC.

62
CONCLUSIONS

• It is quite clear that most of the subjects under
  negotiation can benefit developing countries.
• A successful outcome in agriculture would, for
  example, level the playing field and enable
  developing countries to increase their
  agricultural exports. This could have positive
  effects in the overall economy, including
  generating jobs in other sectors
• With regards to NAMA, depending on the formula
  that is adopted, it could help lower tariff peaks
  and tariff escalation in developed countries, and
  also facilitate increased exports by LDCs and
  other poor developing countries to economically
  advanced developing countries, including Brazil,
  India and China which maintain relatively high
  tariffs

63
CONCLUSIONS

• An ambitious result in services could help
  developing countries to attract investment into
  certain key sectors of their economy, including
  telecommunications, tourism and financial
  services and improve the competitiveness of
  domestic service suppliers
• Strengthened rules on anti-dumping and subsidies
  and countervailing measures will help creating a
  level playing field and ensure that exports of
  developing countries are not subjected to
  arbitrary duties and other measures
• A successful outcome in trade facilitation will
  reduce red tape and help developing countries to
  improve on their customs procedures for the
  benefit of importers and exporters alike

64
CONCLUSIONS

• It is clear that a lot of work remains to be done
  if the negotiations are to be concluded
  successfully in 2006 as foreseen in the HK 6th
  Min Dec.
• Generally, WTO Members attach priority to the
  multilateral trading system, but their attention
  is increasingly being diverted by bilateral and
  regional trade initiatives
• Perception that the WTO process is too slow and
  that it takes long to get results

65
CONCLUSIONS

• It is up to Members to strengthen the
  multilateral trading system and make it
  responsive to the needs of business operators
• For modalities for agriculture and NAMA to be
  achieved in April 2006, Members must redouble
  their efforts and demonstrate flexibility and
  show a greater willingness to accommodate the
  interests of others

66
CONCLUSIONS

• Trade is not a zero sum game. Exchanging
  concessions may be difficult in the short term,
  but in the medium to long term this would
  benefit all Members
• Developed countries and advanced developing
  countries should do more in terms of undertaking
  more responsibilities than least-developed and
  other poorer developing countries
• Continued political involvement is necessary to
  move negotiations forward
• There is a need for the process to continue to be
  inclusive (involving all WTO Members) and
  transparent