ARUN SHOURIE GIVEN CHARGE OF COMMERCE
AND INDUSTRY
The Disinvestment Minister, Mr.
Arun Shourie was given additional charge of the Ministry of Commerce & Industry, on
9th November, 2002 following the illness of Mr. Murasoli Maran who has been flown to the
US for treatment.
GROUP OF MINISTERS TO SPEED UP DECISIONS ON WTO ISSUES SET UP
The Composition of Group is as follows: Mr. Jaswant Singh, Minister of Finance & Company Affairs (in Chair); Mr. Arun Shourie, Minister of Commerce & Industry, Disinvestment and the North East; Mr. Ajit Singh, Minister of Agriculture; Mr. Yashwant Sinha, Minister of External Affairs; and Mr. Jana Krishnamurthy, Minister of Law & Justice.
The Group of Ministers will expedite the country’s decision-making process on WTO issues — including the negotiating position of India on agriculture, prior to the next WTO Ministerial Conference in Mexico (Cancun) in September next year, Mr Shourie told reporters in New Delhi. As far as the negotiations on agriculture is concerned, the Cabinet Committee on WTO matters discussed the principal guidelines which negotiators must follow during the discussions to be taken up in Geneva later this month, Mr Shourie said. “The GOM has been set up to take decisions rapidly on WTO matters and to bring to the notice of the Prime Minister any issue which warranted his urgent attention”, the Minister added.
Hindu Business Line 16-11-02
Financial Express 16-11-02
Financial Express 16-11-02
Hindu Business Line 16-11-02
Hindustan Times 16-11-02
ANTI-DUMPING:
WTO REPORT
India leads in anti-dumping
initiations
The WTO Secretariat reported that in the period 1 January to 30 June 2002, 17 members initiated 104 anti-dumping investigations against exports from a total of 39 different countries or customs territories. During the corresponding period of 2001, 19 WTO members had initiated 149 anti-dumping investigations. Out of the 104 initiations for the reported period 37 were initiated by developed countries, while 63 were initiated by developing countries.
India initiated 25 investigations during the first semester of 2002, as compared with 24 investigations initiated during the first semester of 2001. The United States had the second highest number of initiations (22) during the first half of 2002, compared with 40 during the corresponding period in 2001. Argentina had the third highest number of initiations, 10.
China, with 16 investigations on its exports, is at the top of the list of countries subject to anti-dumping investigations, although this number is a decrease from the 24 investigations initiated on Chinese exports during the first semester of 2001. India, Indonesia and Russia were next, each with six investigations initiated on their exports in the first half of 2002. South Africa had five investigations initiated on its exports, while Chinese Taipei, the European Communities, Korea, Romania, Singapore, and Ukraine each had four investigations initiated on their exports in the first half of 2002.
The largest group (38) of investigations initiated during the first half of 2002 involved products classified in the base metals sector of the Harmonised System of Tariff Classification, which includes iron, steel and aluminium products. The other most affected sector was chemicals, with 36 investigations initiated. Out of its 25 investigations India initiated the majority (20) on chemical products, while out of the 22 initiations by the United States there were 16 initiations on base metals products.
Fourteen WTO members imposed a total of 111 final anti-dumping measures against exports from 43 countries or customs territories during the first half of 2002. This total represents an increase from the 82 measures imposed during the corresponding period of 2001. This increase in the number of measures adopted may be the result of the high number of initiations for previous periods, notably the second half of 2000 (194) and the first half of 2001 (149). It is also worthy of note that for the period reviewed there were more final measures than initiations, suggesting a decline in the use of the anti-dumping instrument. The United States imposed the most final measures (25) during the first semester of 2002, a significant increase from the eight final measures imposed by the United States during the corresponding period of 2001. India was a close second to the United States in the number of final measures imposed during the period, with 21 measures, followed by Argentina and the European Communities, which adopted 17 and 14 measures respectively.
Exports from China were the subject of the largest number, 19, of final measures imposed during the first semester of 2002. Chinese Taipei was a distant second, with nine measures. For China, this represents a significant increase from the nine measures imposed against its exports during the first semester of 2001.
As was the case for initiations, the sector most affected by final measures was base metals, with 33 final measures imposed on products in that sector. This was followed by the chemicals sector, with 30 measures imposed, and the plastics sector with 18 measures.
MONTHLY REPORT ON MULTILATERAL TRADE ISSUES AND DEVELOPMENTS (September 2002)
Special Session on
Agriculture
The Special Session on
Agriculture in the WTO/Geneva held on 2-6/9/2002 discussed Market Access pillar of the
Agricultural negotiations. The positions remain wide apart. The Cairns Group Members
propose substantial reduction in tariff through Swiss formula approach whereas European
Communities / traditional economies / Norway, Switzerland, Japan and a few developing
countries have rejected Swiss formula approach for tariff reduction.
At a Special Session on Agriculture held on 23-27/9/2002, further discussion on ‘Domestic Support’ pillar of Agricultural negotiations took place. Positions of Cairns Group countries and most other developing countries on one hand and EC/Norway/Japan/Switzerland/US on the other remain quite apart. The EC/US and their supporters do not want to change the structure of the Agreement whereas demandeurs want changes to the basic structure of the Agreement for effecting meaningful reduction.
The Committee on Agriculture met again on 26/9/2002. Normal review of notifications took place. Further questions were asked on India’s Rice Export Policies and India’s notification on Domestic Support. We undertook to give replies at the earliest possible.
Meeting of the
Negotiating Group on Market Access
The second formal meeting of
the negotiating group on market access was held on 12/9/2002. At this meeting discussions
continued on tariffs and non-tariff barriers in market access for non-agricultural
products. Countries confined themselves to expressing their general preferences without
giving any detailed modalities. Formula approach was the most gacoured one but the exact
formula was left undefined. Various submissions by Korea, Japan, New Zealand, Singapore
and Norway were also discussed. The developed countries made frequent references to
greater South-South trade and hence the need to bring down barriers to the same. This is
viewed as an attempt to deflect attention from the markets in the North and creating a
divide in the developing countries.
Committee on market access also met on 23/9/2002. The issues discussed at this meeting included waiver requests regarding submission of HS schedules. A report on the status of International Data Base (IDB) submissions was submitted by the Secretariat. Ecuador raised the issue of the raise in toll duties by the Panama Canal Authority, which was in violation of GATT Article V. Under China’s transitional review mechanism, China provided information on status and methodology of quota allocations. They, however, expressed their inability to provide written answers to members’ questions, as it was not a legal requirement. The Chairman stated that he would make a factual report of the discussions to the CTG, which would be discussed in the CTG (Committee on Trade in Goods) meeting of 8th November 2002. The discussion on implementation issues was suspended, as they would be taken up for informal discussions on 7-10-2002. The next meeting of the Committee is slated for 26-3-2003.
TRIPs Council
TRIPs and Public Health (Para 6
of the Ministerial Decision), Geographical Indications (GIs), Trade Related Intellectual
Property Rights (TRIPs) & Convention on Bio-Diversity (CBD) and Traditional Knowledge
were the main items discussed. It was merely a repetition of the positions held by
Members. India also co-sponsored a paper on Non-violation complaints.
A Special Session of the TRIPs Council to discuss further on multilateral register for notification and registration of wines and spirits took place on 20 Sept. A discussion on definition, what is meant by registration and notification was held. Positions are still far apart between EC on one hand and the US and other opponents of GIs on the other.
DSB Special Session
Special Session of the Dispute
Settlement Body (DSB) was held in Geneva on 10/9/2002. Costa Rican proposals on third
party rights and the US proposals on transparency and amicus curiae briefs were formally
introduced and discussed. Members, including India generally welcomed Costa Rican
proposals. While Canada, EC welcomed the US proposals, several delegations, including
India expressed scepticism and criticised them as unacceptable. We made a formal statement
on behalf of Cuba, India, Malaysia and Sri Lanka indicating the proposals that are going
to be submitted to the DSU negotiating body. Thereafter, the meeting turned into informal
mode and discussed items on: consultations, establishment and composition of panels,
including permanent roaster of panellists, from the informal checklist prepared by the
Chair. It was decided to continue the discussion further after inclusion of new proposals
in the checklist.
A special DSB meeting was convened at the US request, on 16/9/2002, for establishment of a panel on EC – Steel Safeguards dispute. Since this was the second time request DSB established a panel with standard terms of reference. Egypt, Japan and Korea reserved third party rights. Argentina expressed concern at EC’s measure and indicated that it would also reserve third party rights in due course.
Working Group on Trade
and Investment
There was a brief discussion on
the Secretariat’s note on key issues concerning FDI and the Transfer of Technology
(ToT) to developing countries at the meeting of the WGTI in Geneva on 16/9/2002. Developed
countries stressed that host countries can play a large role in facilitating TOT.
Developing countries made the point that restrictions on performance requirement inhibit
TOT. The US submitted a paper suggesting inclusion of portfolio investment in any possible
negotiations, but many members were not inclined favourably. The two issues that were
discussed in the Working Group were Exceptions and BOP Safeguards and Settlement of
Disputes. Many developing country members said that it is premature to discuss the subject
of settlement of dispute and were not in favour of DSU rules being made applicable to
investments. Most members including some developed country members were not in favour of
WTO handling investor-state disputes.
CTD Special Session
The Committee on Trade &
Development (CTD) – Special Session was held on 23/9/2002. The Chairman suggested a
programme of work till December, which was by and large accepted by members. Many
developing countries, however, pointed out that late evening/night meetings may pose
difficulties for them. The Secretariat has been requested to look into this and suggest
alternate timings for the meetings.
CTD Special Session meeting was convened also on 24/9/2002 to discuss the work programme of the CTD Special session for the period till December. The Chairman circulated a draft programme as well as schedule of meeting which was agreeable to most members. Some members expressed concern at the timing of special session (most of the meetings were suggested from 1800 hrs to 2100 hrs). The Chairman stated that the Secretariat would look at the calendar of the meeting and try to keep the meetings in the normal working hours or during lunch times as suggested by some members.
Panel Meeting
The compliance Panel on Bed Linen (DS141)
met on 10-11/9/2002 with the parties and third parties. India & EC made opening and
closing statements and answered Panel’s questions. Parties were allowed to put oral
questions to each other and answer. Except Japan, the other third parties, the US and
Korea made oral statements at the third party session on 11 September 2002.
Working Party on the
Accession of the Kingdom of Nepal
The Working Party on the
Accession of the Kingdom of Nepal to the WTO met on 12th September, 2002. Nepal made a
detailed presentation before the Working Party on the various initiatives taken by Nepal
aimed at economic and trade liberalization ever since the establishment of the Working
Party first in the GATT and later at the WTO upon its establishment. Nepal also made a
strong point about the lack of administrative capability within the country and also
infrastructural constraints faced by it while fulfilling various WTO related obligations
and emphasised that it is in an earnest need of technical assistance from the WTO on a
number of specific areas like Customs valuation, Sanitary & Phyto-Sanitary (SPS),
Trade Barriers to Trade (TBT) and TRIPS.
India in its statement supported an early accession of Nepal to the WTO. India also exhorted the Working Party to immediately commence work on the preparation of the Working Party Report. Sri Lanka, Malaysia and China supported India’s viewpoint on early accession of Nepal and drafting of the Working Party report. Some delegations showed interest in having bilateral discussions with Nepal on issues of mutual interests. Some delegations including Japan also emphasised that members should refrain from seeking WTO plus commitments from Nepal during accession negotiations.
The Working Party discussed Nepal’s revised market access offers in goods and services and also the legislative action plan. Some delegation sought certain clarification on goods and services offers and also on proposed legislative plan of action. Some members desired that information on implementation period including transition period in respect of various statutes should also be provided by Nepal. The Chairman finally invited the members of the Working Party to submit additional questions, if any, and also the inputs for the draft Working Party report to Nepal by 14th October 2002. The Chairman felt that by the beginning of year 2003, the draft working party report should be ready for circulation.
Plurilateral meeting on
Agriculture in the context of Russia’s accession
The meeting on 26/9/2002
discussed the document submitted by Russia outlining its policies in the green and amber
boxes. Members were unanimous in their view that Russia should include data from the most
recent period (1996-2002) for scheduling of its commitments. The Russians have however not
agreed to this saying that support in recent years has gone down and hence it cannot be
taken to be the most representative period. They also pointed out that some of the
developed countries have also not provided data for the year 1999.
Working Group on Trade
& Competition Policy
A meeting of the WG on Trade
and Competition Policy was held on 26-27/9/2002 to discuss core principle of
non-discrimination, procedural fairness and transparency as applied to Competition Policy.
India submitted two papers.
WG on Trade, Debt and
Finance
The meeting on 30/9/2002
focussed on trade and debt aspect. Presentation was made by ECLAC, World Bank and UN
Commission for Africa. Based on discussion, Chairman identified certain elements on the
issue of trade and debt on which members could reflect keeping in mind the mandate of the
Working Group.
Meeting of the
Committee on Customs Valuation
At this meeting held on
30/9/2002, Customs Officials from the Capital were present. India presented a paper to
kick start discussion on paper 8.3 of the Doha Ministerial Declaration. A number of
queries were raised which were responded to at the meeting itself. The other important
item was India’s response to the questions submitted by members on its implementation
tirets from 57- 61. Further clarifications and responses were also provided to members at
the meeting itself.
Meeting of the
Committee on Import Licensing
This meeting held on 24/9/2002
reviewed the notifications submitted to it. India’s notifications were also listed.
There were no questions raised on these notifications. It was noted that notifications
from at least 70 members’ were still outstanding. Under the item of China’s
transitional review mechanism, China read out its statement regarding its compliance with
the obligations undertaken pursuant to its accession to the WTO. They however declined to
provide written answers to member’s questions. They stated that whatever additional
questions members had could be answered by them in the meetings itself. The chairman
stated that he would be making a factual report of the discussions that had taken place on
the issue to the CTG. The next meeting of the committee were scheduled for 8th May and 2nd
October 2003.
Trade Policy Review
Body (TPRB): TPR of Mauritania
The first Trade Policy Review
of Mauritania was held at the WTO during 11 and 13 September 2002. Mauritania emphasised
the commitment of their Government towards trade liberalisation and acknowledged that
Mauritania believes and recognises the potential benefits of multilateral trading system
of the WTO. Mauritania also mentioned about the Government’s efforts towards revision
of a number of trade-related laws and regulations so as to make them WTO compatible.
Referring to various infrastructural constraints being faced by them in fulfilling its WTO
commitments, Mauritania urged the membership to provide Mauritania adequate technical
assistance. The Discussant for the Review appreciated the liberal trade regime and almost
absence of non-tariff barriers prevalent in Mauritania. The discussant also drew attention
of the members towards underdeveloped manufacturing sector, limited exportable goods and
also limited trade partners in respect of Mauritania.
All members appreciated Mauritania’s active and productive engagement in the WTO. Delegations also appreciated the institutional constraints being faced by Mauritania. Some delegation felt that Mauritania should reduce the gap between the bound rates and applied rates in respect of items where it is very large. The Chairperson thanked Mauritania for their commitment to the multilateral trading system and also to their wholehearted cooperation and frankness during the Review.
Trade Policy Review
Body (TPRB): TPR of Australia
The fourth Trade Policy Review
of Australia was held on 23 and 25 September, 2002. Our Ambassador was the Discussant for
the Review. Australia in its opening statement, inter alia, mentioned about their highly
transparent trade regime, priority and efforts for the successful conclusion of the Doha
negotiating agenda , very low average tariffs and a conservative approach towards
bio-security. The Discussant in general appreciated Australia’s contribution towards
trade liberalization and development and also noted issue like tariff peaks, high tariffs
on textiles and clothing and also motor vehicles, complex set of concessional duty
arrangements, regional trade initiatives, government procurement regime and strong
quarantine controls and food standards and their likely impact in encouraging/inducing
other members whose markets are Australia’s major export destinations to adopt
similar restrictive measures.
The basic theme of member’s presentation was Australia’s highly stringent quarantine regime including the lengthy and highly time-consuming procedure for completing import risk analysis (IRA). Members also raised concerns over Australian government procurement regime. Some delegations also raised concerns on the copy- right and parallel imports regime in Australia. The issues of ‘luxury car tax’, high tariff prevalent in textiles and clothing and footwear (TCF) and frequent use of anti-dumping instrument were also referred to by some delegations. Australia in its final remarks noted, inter alia, that due to its unique animal and plant disease status and also its high vulnerability to pests and diseases, Australia has to maintain a highly conservative approach towards bio-security. The Chairman finally thanked the Australian delegation for their willingness to engage in the true spirit of the review process.
[Source: PMI/Geneva]
MONTHLY REPORT ON MULTILATERAL TRADE ISSUES AND DEVELOPMENTS (October 2002)
Council for Trade in
Goods
In the formal meeting of the
Council for Trade in Goods held on 1 & 2 October, 2002, discussions took place on GATT
Article V that pertains to freedom of transit. A background paper prepared by the
Secretariat and EC submission on this Article was discussed. The WCO and UNCTAD also made
brief presentations.
Dispute Settlement Body
(DSB)
The DSB held on 1st October,
2002 adopted the panel report on Egypt – Steel Rebar (DS211) and established panels
on US – Softwood Lumber (DS257) and US – Orange Juice (DS250) at the requests of
Canada and Brazil, respectively. India become third party to the Softwood Lumber dispute.
At a Special Session of the DSB meeting on DSU negotiations, held on 14/10/2002, India
presented DSU proposals on behalf of a group of developing countries and Pakistan
introduced S&D proposals. Japan and Jamaica also introduced their proposals. Our
proposals, especially on amicus briefs, litigation costs, etc., were generally welcomed by
many developing Members. However, developed Members did not choose to comment on the
proposals. We welcomed African Group and LDC proposals as well as Jamaican proposal, some
of which would be complimentary to ours. The
DSB special meeting held on 23/10/2002 adopted the panel and Appellate Body reports on disputes: Chile – Price Band System (DS207) and EC – Sardines (DS231). India made statements on both these disputes. While we welcomed the Appellate Body’s interpretation in the former dispute, we criticised its decision on withdrawal of notice of appeal and amicus curiae briefs. Also we made a statement on Appellate Body’s amendments to its working procedures doing away with the practice of ‘passive observer’ status in its oral hearings.
Budget Committee
The budget proposals for 2003
were presented at the WTO’s Budget Committee meeting on 2 & 18 October. The
Secretariat has asked for a 15.8% increase in the Budget. Important elements contributing
to this increase are provision for 12 additional posts and increase of over 10% in pay
scales for the personnel of the Secretariat.
Committee on Balance of
Payments (BoP) restrictions
In this meeting of the
Committee on BoP restrictions held on 2/10/2002, the Secretariat paper on Reserve Adequacy
prepared at India’s request was presented and discussed. The representative of IMF
also gave a brief overview of the parameters used in judging reserve adequacy. A second
item that was discussed was Bangladesh’s request for extension in BoP cover for a
period of seven years on certain items.
Trade Negotiations
Committee (TNC)
The reports by the chairpersons
of the negotiating groups were discussed in detail at the TNC meeting held on 3 & 4
October, 2002. The Chairman said that he would involve himself fully in the negotiations
and that from the statements of members he discerned that the priorities would be TRIPS
and Public Health, S&D issues, Implementation and Agriculture.
Committee on Trade
& Environment (CTE)
A meeting of the CTE was held
on 8.10.2002. The focus of this meeting was ‘labelling requirements for environmental
purposes’. The demandeurs like Switzerland felt that the discussions on eco-labelling
should not be limited to voluntary labelling but should also encompass mandatory labelling
schemes. The other delegations felt that eco-labelling should be discussed under the ambit
of the Technical Barriers to Trade (TBT) Agreement. The discussion in CTE Special Session
on 10 & 11 October was more or less a repetition of the discussion on interpretation
of the Doha Ministerial mandate and linked to that were Members views on the process for
further work under paragraph 31(1) of the Doha Ministerial Declaration. No finality in
respect of the concreteness of the work programme for future emerged.
Committee on Trade
& Development (CTD) – 42nd Session
The focus of the discussion was
the draft WTO Annual Technical Assistance Plan for 2003. Members offered their preliminary
comments on the draft plan as well as their expectation from the planned technical
assistance activities. Other important issues discussed at the meeting included discussion
on outstanding implementation issue relating to Article XVIII; there was no serious
engagement on this issue from other members. No comments were made on the notification on
FTA between India and Sri Lanka under the Enabling Clause. The CTD Special Session met to
discuss agreement specific proposal relating to TBT Agreement on 17/10/2002. The proposal
from Like Minded Group (LMG) and Africa Group was discussed. There was wide support from
developing country members on LMG’s proposal on Article 12.3. The stance of developed
members remained same, expressing difficulty in accepting the proposals.
The CTD Special Session met at Geneva on 21 & 23 October, 2002 to discuss agreement specific proposal relating to antidumping/subsidies/safeguards and GATS (General Agreement on Trade in Services).The proposal from LMG; Africa Group and LDCs were discussed. The position of developed members remained same, expressing difficulty in accepting the proposals. Agreement was, however, reached on Africa Group’s proposal on Article 9:1 of the Safeguard agreement; the Committee re-confirmed that the provision was binding.
Working Group on
Transfer of Technology (WGTOT)
UNIDO gave a detailed
presentation on its activities and on how it promotes dissemination of technology at the
meeting of the Working Group on TOT held on 10/10/2002. There was a presentation by Canada
also. It highlighted that much of the patents are held by private companies/institutions
and as such the Government can do very little for transferring technology. A paper
identifying provisions on TOT in the existing WTO agreements was presented by India and
some other developing countries. The regular bodies of the WTO have been requested to give
information on how effectively these provisions are being implemented.
Working Group on
Transparency in Government Procurement
The working group met over two
days, on 10 & 11 October, and discussed issues from VI through XII of the
Chairman’s checklist. In addition to the secretariat paper the submissions by Canada,
Japan and the US were also discussed.
Committee on
Participants on the Expansion of Trade in Information Technology Products
The 33rd meeting of the
Committee of Participants on the Expansion of Trade in Information Technology Products was
held on 14th October 2002. In the light of the Canadian proposal of organising an EMC/EMI
project workshop, it was agreed that such a Workshop might be held on 3rd March 2003 (for
1 1/2 days). On the issue of De-restriction policy for the document series
G/IT/SPEC/… of the Committee, it was agreed that the GC decision on de-restriction
(WT/L/452) may be made applicable in respect of documents of the Committee. Draft Annual
Report of the Committee (2002) (G/IT/W/8) was also agreed to by consensus in the meeting.
Textiles Monitoring
Body (TMB)
TMB continued its discussion on
various notifications and administrative arrangements between restraining countries and
China/Chinese Taipei on 15/10/2002.
General Council
FYROM (Former Yugoslav Republic
of Macedonia) was admitted as member of the WTO at the GC meeting held on 15 & 16
October, 2002. The meeting which was short carried out the annual review of long term
waivers. Revision in the salary package of the DG was agreed to.
Sub-Committee on LDCs
The Chairman convened a meeting
on 16/10/2002 to seek views on a checklist that he had prepared on facilitating faster
accession for LDCs. While there was a broad support for the most of the suggestions from
developing countries, developed countries were, however, less forthcoming.
Negotiating Group on
Rules
A paper by India on
Anti-Dumping was presented at the meeting of the Negotiating Group on Rules held on
16/10/2002. The US presented a series of questions on our earlier proposal. The US
informed members about the initiative in the OECD. India and New Zealand responded that
negotiations of such nature should take place in the WTO.
Panel Organisational
Meeting
A teleconference between the
parties (India and US) and the Chairman of the Panel on the dispute US – Rules of
Origin (DS243) was held on 17/10/2002 to finalise the working procedures and timetable of
panel. We rejected the US request to make our submissions public. US agreed with us that
submission of executive summaries should be optional. In view of tight scheduling of panel
timetable and year-end holidays, we agreed to submit our first written submission one-week
earlier than the proposed timetable at the Panel Chairman’s request.
Plurilateral meeting on
Sanitary & Phytosanitary & Technical Barriers to Trade (SPS & TBT) –
Russia’s Accession to the WTO
In this meeting, held on
18/10/2002, some new documentation submitted by Russia in respect of their draft laws in
the case of SPS and TBT were discussed. Emphasis was laid by members on greater
transparency through appropriate notifications as well as full compliance with the SPS and
TBT Agreements.
Committee on Trade in
Financial Services (CTFS)
Bolivia announced at the CTFS
meeting held on 21/10/2002 that it had completed formalities with respect to accepting
Fifth Protocol. China’s TRM was conducted. It was agreed that World Bank will make a
presentation at the December meeting on its 11th Policy Research Report ‘Finance for
Growth’.
Working Party on
Domestic Regulations (WPDR)
The discussion at the meeting
of WPDR on 22/10/2002 focused on the Secretariat’s consultation with international
professional organisation on the relevance of Accountancy Disciplines for different
sectors. A draft letter prepared by the Secretariat was discussed and approved with some
changes. Discussion were also held on examples paper prepared by the Secretariat;
Japan’s new submission on regulatory measures as well as synthesis paper.
Appellate Body
Appellate Body on 22/10/2002
held hearing on US – CVD (DS212) dispute raised by the EC against US on methodology
of calculating countervailable subsidy in a company that was privatised at arms length and
on commercial principles. As third party to the dispute, we made a written submission
questioning WTO-consistency of such methodology and also requested Appellate Body not to
accept amicus curiae brief submitted by an American Steel Association and reiterated the
same at the hearing.
Working Party on GATS
Rules (WPGR)
Discussions continued on
EC’s paper on modal application of a Emergency Safeguard Measures (ESM), various
approaches for ESM notes prepared by the Secretariat on subsidies as well as discussion on
EC’s paper on govt procurement.
Trade Policy Review
Body (TPRB) : TPR of Zambia
A meeting of the Trade Policy
Review Body was held on 23 and 25 October 2002 to conduct the second Trade Policy Review
of Zambia. The major issues discussed during the review include Zambia’s economic
reforms Programme, the reasons for very limited manifestation of the Programme on Zambian
economic growth, Zambian approach towards RTAs, tariff bindings, benefits expected from
the Integrated Framework (IF) Programme, and Zambian efforts and approach towards
diversification of its economic activities.
Committee on Subsidies
and Countervailing (CSC) Measures
Discussions were held on 24
& 25/10/2002 on WTO Secretariat notes on the scheduling of new commitment; scheduling
of additional commitments as well as compendium of classification proposals prepared by
the Secretariat. The CSC agreed to have an informal meeting to take up the Secretariat
compilation of classification proposals.
Committee on Trade in
Services (CTS)
Discussions were held on
25/10/2002 on proposals for technical review (Art XX:2). Preliminary discussions on the
note prepared by the Secretariat on Article XX:2 were also held. The Council agreed to
have informal meeting before the December cluster to discuss the proposal. China’s
TRM was also conducted. Discussions were held in the Special Session of CTS on 28/10/2002
on assessment of trade in services (South Africa made a presentation); report of the
Chairman on the issue of autonomous liberalisation; modalities for LDCs; paper by US on
SMEs and EC’s paper on CPC 84.
E-Commerce: Dedicated
Session
The agenda of the meeting held
on 25/10/2002 comprised: Classification issues and Revenue Implications of E-commerce.
Discussion mainly focused on classification issues. There were no new submission for this
meeting. US suggested to have some guiding principles covering issues such as MFN/NT
commitments, domestic regulations, moratorium on customs duties and developmental issues.
Members requested US to submit a written contribution. No substantive discussions were
held on other agenda item namely revenue implications of e-commerce. Next dedicated
session is proposed for December 2002.
Anti-Dumping Committee
The Working Group on
Implementation of the anti-Dumping Committee met in the week of 21-25 October. The
implementation issues on Articles 5.8, 18.6 and 15 of the anti-Dumping Agreement were
discussed. The discussion is still continuing as draft decisions have been put up.
Committee on Safeguards
A formal meeting of the
Committee on Safeguards was held on 28 October. Review of legislations and notifications
of the Safeguards actions taken by Members was held. Four safeguard actions taken by India
were also reviewed.
[Source: PMI/Geneva]
DG Supachai urges
acceleration of work on Doha Agenda
The WTO’s Trade
Negotiations Committee (TNC), which is responsible for co-ordinating the trade
negotiations under the Doha Development Agenda, met on 3 October, 2002 in Geneva to review
progress to date and discuss the future negotiating agenda.
Following the start of the meeting, the first to be chaired by Director-General Supachai Panitchpakdi, the Director-General issued the following statement:
“Our Fifth Ministerial Conference in Cancún will take place in less than one year, and we have much to do between now and then. We all know that we must make rapid substantive progress in all areas of the Doha Development Agenda if we are to have a successful conference. I am confident that we can do this, and I intend to take an active part in this collective undertaking.
“This conference is set to act as a mid-term review. This means that by then we will need a clear picture of what is achievable across the negotiating agenda. Only on that basis will ministers be able to provide the necessary additional political guidance in order to conclude the DDA Work Programme successfully by the 1 January 2005 deadline.
“From the reports given today by the chairpersons heading our negotiating groups, and from the discussions which followed those reports it is clear we have made a reasonably good start, but much remains to be done and time is running quickly.
“I am concerned that the positions of some delegations have not been sufficiently clarified. This meeting of the TNC marks the start of a new phase of the negotiations — the phase of substantive engagement. Only by accelerating our work, where necessary producing and discussing concrete proposals, can we make real progress across the board. Our work needs to be directed not only towards meeting individual key deadlines, but also towards building a sense of the negotiations as a whole.
“December represents a set of important deadlines concerning matters related to implementation, special and differential treatment for developing countries and a solution to the problem of supplying pharmaceuticals in those countries which lack sufficient manufacturing capacity. These issues are of great importance to developing countries. We need to continue moving on these issues, so that they become part of our forward process, not an obstacle to it.
“I would also like to underline the importance of the deadlines in the period from March to May 2003. During this period we will face deadlines in the negotiations on Agriculture, Services, Non-agricultural Market Access and Dispute Settlement. Many of us believe that what happens then will define the rest of our process. We will face an uphill battle at Cancún if we do not grapple successfully with these intermediate deadlines.
“It is important we meet all of these deadlines. But a deadline is not an end in itself. Deadlines are important because they allow us to measure how we are advancing. And we all know we must advance the substance of the negotiations progressively across all areas of the negotiating agenda as a whole.
“You should expect the TNC to be more active. In line with this, I will be an activist as TNC Chairman — working closely with the Chairpersons to support and help them where I think it may be useful. I will also be active in consulting with delegations as we prepare for the important issues on the table in December.
“A successful outcome for the Doha Development Agenda is essential for the future of our societies. A larger degree of openness and predictability in international relations can only come about if we have the same set of rules and if we set our sights on similar objectives. That is precisely what this Organisation can offer.
“The Doha Development Agenda was launched in a world economic situation which was widely regarded as being weak. It has not improved since then, and the outlook is uncertain in many ways. This is why it is even more important to deliver on this Round. The future prospects of many, many people depend on it.”
Report by the
Chairperson of the Trade Negotiations committee
Reporting to the WTO General
Council on 15 October 2002, Mr. Panitchpakdi made the following statement.
“I am pleased to report to the General Council that the Trade Negotiations Committee (TNC) held its fourth meeting on 3-4 October 2002 and that it marked the start of a new phase of the negotiations — the phase of substantive engagement. Indeed, this meeting was the first time that substance itself was discussed in such detail at the level of the TNC. The prime function of the TNC is to build a sense of the negotiations as a whole, which is vital if we are to arrive at a balanced package in line with the Single Undertaking that Ministers agreed on. In this respect, I believe our fourth meeting was a step in the right direction.
I would like to thank the Chairpersons of the bodies established by the TNC for their written reports, but especially for their oral interventions at the meeting. I think we have made a good start at making the TNC a more interactive forum — this is something I intend to encourage at future meetings. The TNC will be more active as the negotiations advance, and as its Chairman, I will be an activist. I believe that is what delegations expect of me.
I will work closely with the Chairpersons to support and help them where I think it may be useful in the interests of advancing progress in the negotiations. I will also be active in consulting with delegations, first of all as we prepare for the important issues that will be on the table in December. I will, of course, also work in close cooperation with the Chairman of the General Council, as set out in the TNC’s Principles and Practices agreed earlier this year.
I should also thank delegations for their many constructive statements and suggestions covering a wide range of views, different priorities and concerns. I listened carefully to everything that was said at our meeting, and as I noted in my concluding remarks, the issues of Agriculture, Special and Differential Treatment, Implementation, and TRIPS and Public Health stand out as the areas at the forefront of everyone’s minds in the period until December. Clearly there are some strongly-held views in these areas and we shall have to work hard to reach consensus.
Shortage of written inputs The Chairpersons’ reports and the comments by delegations on them confirmed my impression of our current situation. That is, we have got off to a reasonably good start, but much more remains to be done in a very short period of time, and time is running quickly. From the Chairpersons’ reports, it is clear that in some areas there is an urgent need to move forward and a shortage of written inputs. I can only repeat my exhortation to all of you to make the greatest possible efforts to submit your remaining papers rapidly — this is essential if we are to meet the deadlines that are coming up fast.
Prior to the meeting, I circulated a revised Timeline to Cancún to all participants, on my own responsibility and without prejudice to any participant’s position on the issues listed. I did this because I wanted to make sure that everyone was aware of the key dates and deadlines established so far. I hope that participants keep all of them in mind when they consider their tactical and strategic moves as they enter the middle period of the negotiations.
It is important we meet all of the deadlines set out in the Timeline. But a deadline is not an end in itself. Deadlines are important because they allow us to measure how we are advancing. And we all know we must advance the substance of the negotiations progressively across all areas of the negotiating agenda as a whole. We have some important deadlines coming up over the next few months, and if we leave too much for Cancun, I believe we may make our task of achieving a successful outcome to the negotiations almost impossible.
Sense of globality. However, I did find it encouraging at our meeting that there is already a widespread sense of the globality of the negotiations, of the need to make progress across a broad front and to build a balanced overall result. But I would encourage delegations to move rapidly away from defensive positions — we no longer have the time to wait for someone else to make the opening move.
This is not a zero-sum game. It is certainly about national interests, but it is also about our shared interest in a system which delivers for all its members. We have a shared responsibility to move these negotiations on to a timely and positive conclusion. Trade is often mentioned as a means to find a way out of the evolving economic uncertainties that the world faces and is likely to increasingly face in the near future. We can only counter these uncertainties by strengthening predictability, by achieving what we are supposed to achieve within the time that we have been mandated to do so.
Dealing with meetings I would like to end by mentioning briefly one administrative matter, namely the issue of scheduling of meetings. In my discussions with the Chairpersons and also with other Members, it emerged that we are facing some practical problems in this area. This question has many aspects — how to apply the relevant guidelines in a way which helps not hinders our work, other purely physical limitations, such as the number of meeting rooms and the availability of interpreters, and the limitations faced by small delegations.
In order to address this problem, and in line with the TNC’s Principles and Practices, I have decided to ask Deputy Director-General [Roderick] Abbott to work together with the Chairpersons and with the smaller delegations, in the first instance, to ensure that we will be in a position to meet our deadlines while also taking into account the constraints those delegations are facing. The coming months will be a busy period for us all, and I am sure that with careful management and appropriate mechanisms we can respect our mandate to conduct the negotiations in a transparent manner among participants, in order to facilitate the effective participation of all.”