Dynamics of WTO Negotiation from Macao Perspective

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Dynamics of WTO Negotiation from Macao Perspective

• Rajesh Sharma, Assistant Professor , MUST
• 2006 Asia WTO Research Network Meeting, Taipei,
  23-25 April 2006

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From Cancun to Hong Kong

• Cancun Failure
• Failure of Substance
• No agreement
• Failure of Process
• Negotiation process
• Role of Chairman
• Timing, etc. etc.
• Whether process caused failure of Substance?

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How Come in Hong Kong

• Only one agreement in CancunNext venue to be
  Hong Kong
• How name of HK came?
• Initiative was taken by Hong Kong WTO Research
  Institute in March 2003
• Several good reasons were forwarded
• HK Government reacted positively

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The Road to Hong Kong

• Process of Negotiation was the key
• Substance cannot be controlled but process can
• Lessons to be learnt from Past Ministerial
  (Seattle, Doha, Cancun)
• Venue, facilities, infrastructure, support
  services etc pulled together

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Special Attention

• Selection of Friends of Chair (3 months in
  advance)
• Good Coordination between Chairman, DG, DDG and
  Friends of Chair
• DDGs were actively mobilized
• HK government involved in lobbying before the
  ministerial

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Improvements Issues-1

• HK ministerial raised the bar
• Transfer of text from Geneva to Ministerialnot
  smooth yet
• Is it possible to separate technicalities from
  policy matters?
• Policy decided by Ministers with political will
• Technicalities--- should be worked out in Geneva,
  eg agricultural negotiation

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Improvements Issues--2

• Mini-Ministerial
• 4 before HK ministerial Davos, Mombasa, Paris
  and Dalian
• Is it part of Geneva Process or a Ministerial in
  itself?
• Should it be included in the WTO process formally?

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Improvement Issues-3

• Transparency and Inclusiveness
• Is it possible to maintain in strict terms?
• Transparencyis possible !
• InclusivenessNO
• Two Reasons 1. due to large number of membership
  2. Some countries would not like to be included
  

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Inclusiveness Vs Aloofness

• Inclusivejust to be in WTO
• Aloofness from the Negotiation eg. Macao
• Service Commitment 3 sectors Tourism, Financial
  services,
• (Telecommunication)-not accepted
  Telecommunication Agreement
• Same in GPA

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Effect of Domestic law or situation

• Domestic Law and Situation may not allow
  inclusiveness
• Example Telecommunication Sector
• Exclusive licence to CTM till 2011 for local and
  intl fixed telephone, fax, telex services IDD
  calls
• Mobile phones are open (3 operators now including
  CTM)

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Another example

• Cable TV Exclusive Licence to Macao Cable
• Antenna Companies are also operating at cheaper
  price
• Cable TV vs Antenna Companies
• Antenna Companies violate of IPR
• low price and public interest push government to
  continue the system

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One more example

• Concessions given to PVT companies to provide
  necessary services
• Concession Vs Competition
• Eg. Water, Electricity
• Bus transport (now duopoly)
• Lands are given on concessions
• Decisions are made by CE or Secretary

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Special Situation of Small Economies

• Small population
• Small economy
• Pursues Government to be aloof from WTO
  negotiation and/or
• Violate WTO principles
• Does not promote Business Advocacy or
  participation of Civil Society

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Dealing With Such Economies

• Should they be made part of decision making
  negotiation process?
• Should they be brought to WTO if they violate WTO
  principles?
• Or Should they be given advantage of SD from
  process and commitment ?

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Conclusion

• There should be guidelines for the Ministerial
  power of the Chairman, role of DG DDG, role and
  limits of Friends of Chair
• Technical matter and policy/Political matter
  should be separated for Geneva Process and
  Ministerial
• Mini-Ministerial Should be part of the WTO
  negotiation process
• Transparency in decision making negotiation
  process must be absolute but Inclusiveness may
  be relative