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Edit Comment Close Premium member Presentation Transcript State-of-Play Doha Development Agenda: State-of-Play Doha Development Agenda Edwini Kessie Council and Trade Negotiations Committee Division, World Trade Organization edwini.kessie@wto.orgINTRODUCTION: INTRODUCTION Objective of presentation Historical Background of Doha Round Principal elements of the DDA Hong Kong Ministerial Conference Post Hong Kong State-of-Play Understanding the WTO at work HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Uruguay Round 1986-1994 Most ambitious of trade rounds since creation of GATT An expanded agenda included new issues (services, TRIPs) Round fatigue, but built-in-agenda on agriculture and services ensured that negotiations would begin on these in 2000HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Singapore Ministerial Conference 1996 First WTO conference; No Round Launch – more of a consolidation and adoption of a work programme; Controversial issues – trade and labour, Singapore Issues, environment. HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Geneva Ministerial Conference 1998 Largely ceremonial – 50th Anniversary celebration; The issue of implementation of the Uruguay Round results surfaced; First WTO conference to see large scale demonstrations. HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Seattle Ministerial Conference 1999 Envisaged as launch of comprehensive new round (Millennium Round?) Conference collapse - why? E.g. prep process, DG race, transatlantic division, developing country coalitions, labour standards, conference management etc. HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Doha Ministerial Conference 2001 Launched Doha Development Round Doha Declaration - Negotiation mandates + other work = Doha Development Agenda Subjects for negotiation: Agriculture Services Non-agricultural access TRIPS WTO Rules Dispute Settlement Understanding (outside SU) Trade and Environment Singapore Issues (Explicit consensus) Special and differential treatment for developing countries Implementation (para. 12)HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Work under the General Council, i.e. part of Doha Work Programme, but not part of 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 TRIPS Agreement and the CBD, the protection of traditional knowledge and folklore – para. 19 Trade Negotiations Committee (TNC); Doha Round conclusion by 1 January 2005HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Cancún Ministerial Conference 2003 Mid-point of negotiations –> stock-taking of progress; Original objective to adopt modalities in agriculture and NAMA; Reason for failure - missed deadlines (modalities; cotton issue added to the agenda; Singapore Issues, management of conference etc HISTORICAL BACKGROUND: HISTORICAL BACKGROUND General Council Decision 1 August 2004 Lack of substantive progress in the DDA - need to get negotiations back on track; Provided detailed frameworks for and direction to negotiations; Elimination of an end-date to the Round; Pointed towards Sixth Ministerial Conference. HISTORICAL BACKGROUND: HISTORICAL BACKGROUND General Council July 2005 Ambition to have first approximations of modalities, i.e. some numbers and some specific dates to prepare ground for HK. Much good technical work, political will not translating into tangible progress. HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Preparatory Process for Hong Kong Sept-Dec. 2005 New Director-General – smooth transition Some comparisons to pre-Seattle Recalibrating expectations for Hong Kong in November 2005 Expiry of US Trade Promotion Authority in mid-2007 a key factorPrincipal Elements of the DDA: Principal Elements of the DDA Doha Declaration (WT/MIN/(01)/DEC/1) sets out the mandates-remains the foundation; The 1 August 2004 General Council Decision (WT/L/579) provided substantive frameworks, more detail and political guidance; Hong Kong Ministerial Declaration (WT/MIN(05)/DEC) – attempt to agree on broad outlines/principles to govern the negotiations1 August 2004 GC Decision: 1 August 2004 GC DecisionSlide15: The purpose of the Decision: Reaffirmation of Doha Putting behind the ghost of Cancún Ensuring continued progress in the negotiations Building the comfort of development dimension High-Level ministerial involvement crucial – Bob Zoellick, Pascal Lamy, Celso Amorim, Kamal Nath., etcAugust Decision: Agriculture : August Decision: 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 S&D Reform of 3 pillars form an interconnected whole and need to be approached in a balanced and equitable mannerAugust Decision: Agriculture: August Decision: Agriculture Export Competition Parallel elimination of all forms of export subsidies by a date to be determined through negotiations. Export credits, export credit guarantees or insurance programmes as well as the trade-distorting practices of exporting STE. New disciplines on food aid to prevent commercial displacement.August Decision: Agriculture: August Decision: Agriculture Domestic support Countries with higher subsidy levels will have to reduce the most Overall trade-distorting domestic support ceilings will be substantially reduced, including a down payment of 20% in the first year alone of the implementation period In addition to the cuts, there will be product-specific capping on spending of Amber Box support Blue Box payments, for the first time, to be capped at 5% of the value of domestic agricultural production Green Box criteria to be reviewed and clarifiedAugust Decision: Agriculture: August Decision: Agriculture Market access Tariff reductions to be made through a tiered formula - deeper cuts to be made to higher tariffs. All countries, other than least-developed countries, are expected to undertake substantial improvements in market access for all agricultural products, including sensitive products whose treatment will allow for some flexibility. Special and differential treatment for developing countries to include longer time frames, lower reduction commitments, Special Products and a new Special Safeguard Mechanism.August Decision: Cotton: August Decision: Cotton Issue to be addressed ambitiously, expeditiously, and specifically within the Agriculture negotiations A sub-committee on cotton to be established Work on all trade distorting policies affecting the sector in all three pillars of market access, domestic support and export competitionAugust Decision: NAMA: August Decision: NAMA A framework was “adopted” by the Members in document WT/L/579 of 1 August 2004 Very similar to the so-called “Derbez Text” (Job(03)/150/Rev.2) The framework included a new first paragraph commonly referred to as “the vehicle” – basically said that nothing in the text has been agreed and that further work will be required August Decision: NAMA: August Decision: NAMA The “vehicle” (Para. 1) was designed to provide comfort to the Members in approving Annex B Additional negotiations on the formula, unbound tariffs, flexibilities for developing-country participants, sectoral tariff component NTBs and preferences. But Decision showed little progress. August Decision: Development: August Decision: Development S&D treatment – review all outstanding issues Technical Assistance Implementation Development concerns to permeate negotiations on market access August Decision: Services: August Decision: Services Services not a deal breaker in Decision ...but reaffirms commitment of Members to making progress in the services negotiations. Urges Members to submit their initial offers A deadline of May 2005 was set for the submission of revised offers. August Decision: Singapore Issues: August Decision: Singapore Issues Agreement to commence negotiations on Trade Facilitation – October 2005 to clarify and improve three existing GATT Articles with a view to expediting the movement, release and clearance of goods across borders, including goods in transit. Trade and Investment, Competition Policy and Transparency in Gov. Procurement No negotiations in the WTO during the Doha Round.August Decision: Other negotiations: August Decision: Other negotiations Dispute settlement negotiations to continue. Other negotiating areas – commitment to progress in line with the Doha mandates. They similarly reaffirmed the high priority Ministers at Doha gave to the other elements of the Work Programme which do not involve negotiations and instructed that reports should be made to the next Ministerial Conference.August Decision: What did it mean? : August Decision: What did it mean? DDA back on track + recommitment to Doha mandates Framework agreement in agriculture and NAMA Refocused membership with priorities: modalities in Agriculture modalities in NAMA a critical mass of market opening offers in Services significant progress in areas such as Rules and Trade Facilitation, and a proper reflection of the development dimension. Doha Round deadline extended, but no date. August Decision: What did it mean?: August Decision: What did it mean? Significance of ministerial involvement. Clearer picture of political trade-offs, gateway issues etc.July 2005 – A first approximation?: July 2005 – A first approximation? General Council July 2005 Ambition was to have first approximations of modalities, i.e. some numbers and some specific dates to prepare ground for HK. Much good work, some progress but key issues in agriculture and NAMA still outstanding. Hong Kong Ministerial Conference: Hong Kong Ministerial Conference Preparatory Process September – December 2005 Intensified Negotiating Group work Informal HODs, TNCs and General Councils Ministerial “get-togethers” “bottom-up” approachHong Kong Ministerial Conference: Hong Kong Ministerial Conference October – November Several new proposals in agriculture, e.g. US proposal on domestic support EC, G10, G33, G20, US proposals on market access However, while moving discussions forward wide divergence on cuts and co-efficients remained. Hong Kong Ministerial Conference: Hong Kong Ministerial Conference November 10 informal HODs Recalibration of expectations for HK, but consolidation of progress since August 2004 Decision November 26 First draft ministerial declaration December 1 Second draft ministerial declaration December 7 Third draft ministerial declaration Letter to Chairman of HK meetingHong Kong Ministerial Conference: Hong Kong Ministerial Conference 13-18 December 2005; 5500 delegates; 3320 media; 812 NGOs (1595 individuals); Around the clock negotiations by Ministers Continuation of Geneva process; Facilitators at work; Multi-layered consultative process; Conference adopted Ministerial Declaration at 10.30 pm 18 December Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration Agriculture: Export competition End date (2013) for all forms of export subsidies. Develop disciplines on food aid, export credits and exporting STEs by 30 April Creation of a “safe box” for bona fide food aid. Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration Domestic support Subsidies classified in three bands for purpose of reduction. Top band: EC, Middle band: US and Japan, Lower band: other developed countries and developing countries; Overall cuts must be at least equal to sum of reductions in amber box, blue box and de minimis support. Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration Market access Four bands for structuring tariff cuts Self-designation of Special Products for developing countries Recourse to SSM for developing countries Modalities 30 April 2006. Comprehensive draft schedules 31 July 2006. Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration Cotton export subsidies - to be eliminated by the end of 2006. Market access - cotton exports from LDCs will be allowed into developed countries without duty or quotas from the start of the implementation period of the new agriculture agreement Domestic support - subsidies for cotton should be more ambitious than would normally apply under the new agreement for the reduction of subsidies Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration NAMA adoption of a Swiss formula with coefficients at levels which shall inter alia (a) reduce or as appropriate eliminate tariffs, including the reduction of elimination of tariff peaks, high tariffs and tariff escalation, in particular on products of export interest to developing countries (b) take fully into account the special needs and interests of developing countries, including through less than full reciprocity in reduction commitments. Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration NAMA Reaffirms Paragraph 8 of August 2004 Decision as integral part of modalities Non-linear mark up approach for unbound tariff lines Modalities 30 April 2006. Comprehensive draft schedules 31 July 2006. Market access in NAMA and agriculture were put under the same comparably high level of ambition Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration Services Text points positively to the way forward 28 February 2006 deadline for plurilateral requests 31 July 2006 deadline for second round of revised offers 31 October 2006 deadline for final draft schedules of commitments Negotiations to give particular attention to sectors and mode of supply of export interest to developing countriesHong Kong Ministerial Declaration: Hong Kong Ministerial Declaration OTHER ELEMENTS Rules TRIPS Environment Trade Facilitation Dispute Settlement Understanding S&D Treatment Aid-for-Trade Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration LDCs Agreement by developed-country Members, and developing-country Members declaring themselves in a position to do so, to implement effective duty-free, quota-free (DFQF) market access LDC products from 2008 Those countries that face difficulties in providing full unrestricted access in 2008 will be required to provide DFQF to LDC products falling under 97% of their tariff lines. Hong Kong Ministerial Conference: Hong Kong Ministerial Conference Evaluation: Modest outcome, but given recalibration of ambitions prior to MC probably as good as could be expected. Signal of commitment to maintain ambition for the Doha Round and to seek conclusion end of 2006. Avoiding another collapse was important and sent strong signal of ministerial commitment to the Geneva process Hong Kong MC Outcomes (1): Hong Kong MC Outcomes (1) LDCs given extension until 1 July 2013 to provide protection for trademarks, copyright, patents and other intellectual property under the WTO’s agreement. WTO Members approved changes to the intellectual property agreement making permanent a decision on patents and public health originally adopted in 2003. This General Council decision means that for the first time a core WTO agreement will be amended. Hong Kong MC Outcomes (2): Hong Kong MC Outcomes (2) Others Duty-Free-Quota Free access by 2008 on 97 percent of the tariff lines exported by the least developed countries (LDCs). Agreement to allow LDCs to maintain measures inconsistent with the Agreement TRIMs for at least seven years and possibly until 2020. Extend the moratorium on tariffs on e-commerce until the next ministerial.Developments in 2006: Developments in 2006 Expectation that modalities would be agreed at the latest by July 2006 Formal and informal processes – G4/G6 meetings and Geneva process in parallel Chairman of the agriculture negotiations circulated reference papers on key issues under negotiation and later possible draft modalities on 22 June 2006 (TN/AG/3) Chairman of the NAMA negotiations also circulated a text in June (TN/MA/W/80) to assist Members to agree on modalities Documents highlighted the gaps in Members’ positions on the key issuesDevelopments in 2006 /2007: Developments in 2006 /2007 Attempts to bridge the differences failed culminating in the suspension of the negotiations in July 2006 The DG used the period after the summer to consult widely with Members Concern that if negotiations are not resumed, members would lose interest and turn their attention to bilateral/regional trade agreements Members and a number of groupings reaffirmed their commitment to the MTS and to the DDA negotiations. At Davos in early 2007, about 30 ministers issued a call for the resumption of negotiations and their commitment to work towards the conclusion of the Round Return to full negotiating mode in February 2007Developments in 2007: Developments in 2007 Much of the focus on the work of the G4, especially on agriculture and NAMA Acknowledgement that the G4 process is important, as without agreement among them, it would be extremely difficult to broker an agreement among the wider membership Concern that the G4 process was not delivering and that it was not transparent At the 20 April 2007 HODs, Members stressed the importance / primacy of the multilateral Geneva process and demanded that the G4 process and other informal processes should feed into the multilateral process Pressure on the G4 to deliver very soonState-of-Play – Agriculture : State-of-Play – Agriculture April and May 2007: Challenges Paper issued in 2 instalments by Chairman Crawford Falconer of New Zealand Papers identify possible “centers of gravity” in all 3 pillars of the Agreement on Agriculture (MA, DS and EC) Aimed at focussing the minds of negotiators on the key issues, where agreement thus far has been elusive Texts criticised by both developed and developing countries – pain felt all around which could be a good sign Objective is to agree on modalities by June 2007, so as to pave the way for progress to be made on the remaining negotiating issuesState-of-Play – Agriculture: DS : State-of-Play – Agriculture: DS US subsidies: below $19bn; above low teens EC should envision a cut above 70% On AMS, the US should improve its offer and aim at reducing support by at least 60% De minimis spending and Blue Box payments to be reduced by at least 50% Various options for limiting Blue Box and de minimis spending on specific commodities Cotton-“more ambitious” treatment: between US (53%) and C4 proposal (over 80%)State-of-Play – Agriculture: MA : State-of-Play – Agriculture: MA Structure Already agreed at the HK Ministerial Conference: 4 bands, progressivity –higher tariffs to be reduced by a greater percentage Possible deal on reducing tariffs: between US (85%) and EC (60%) positions as regards the top band: top band critical, as rest will be proportionate Negotiations would have to deliver more than a 50% overall cut. The G-20 has proposed a 54% cut Special and Differential Treatment for developing countries: two-thirds of the cut to be made by developed countriesState-of-Play – Agriculture: MA : State-of-Play – Agriculture: MA Sensitive Products Number: 1-5 per cent of tariff lines Treatment: 1-2/3 of reduction plus Tariff Rate Quota (TRQ) expansion (domestic consumption / import levels?) Special Products Number: 5-8 per cent of tariff lines Treatment: lesser tariff cuts – around 10-20% cuts Special and Differential Treatment Should developing countries be allowed to use the linear formula like in the Uruguay Round?State-of-Play – Agriculture: MA : State-of-Play – Agriculture: MA Constraining SSM: scope, triggers, remedies Preference erosion – tropical products linked to the problem: bananas and sugar Tariff escalation, commodities: issues have not been thoroughly discussed LDCs: DFQF – 97% at the start of the implementation period; 100% something to aim for by the end of the implementation period EXPORT COMPETITION: Remaining issues not as difficult as those under the first two pillars: food aid; state trading enterprises and export creditsState-of-Play – Cotton : State-of-Play – Cotton Trade Aspects: progress depends on overall progress in the agriculture negotiations Development Aspects. High Level Meeting on March 2007 to take stock and evaluate progress Positive and intensive exchange of views on a number of issues Follow-up to the high level meeting: Eighth DG consultative framework meeting to take place on 18 June 2007State-of-Play – NAMA : State-of-Play – NAMA Intensive Chair consultations on all key issues Not much progress; positions of Members have not evolved Linkage with agriculture Aim is to agree on a text by June 2007. Full modalities in tandem with agriculture to pave the way for progress to be made on other negotiating issuesState-of-Play – NAMA : State-of-Play – NAMA Which formula – Simple Swiss Formula with two co-efficients or a Swiss-type formula with variable co-efficients depending on the average tariff rates of Members Overwhelming support for the use of a simple Swiss formula with two co-efficients Should co-effiecients be within sight of each other? Proposals range from 5 to 30 per cent Flexibilities for developing countries – paragraphs 6 &8 Treatment of unbound tariffs NTBs: notified but what are the solutions Preference erosionState-of-Play – Services: State-of-Play – Services Number of offers satisfactory, issue is quality Third Round of request-offer plurilateral negotiations assessed as “positive” Overriding issue is the quality of offers – would revised offers result in new market access opportunities? Some Members (US and EC) want to see services addressed as part of any “breakthrough” package – horizontal commitments? Draft Chair text on possible disciplines on domestic regulation welcomed as basis for further negotiations Other areas where progress needed: LDC modalities; sectors of export interest to developing countries; mode 4, GATS rules Next cluster of meetings in July 2007State-of-Play – Rules: State-of-Play – Rules RTAs track: insufficient number of proposals to improve substantive rules Review of RTA Transparency Mechanism: need to gain experience in both the CRTA and the CTD before review AD/SCM, including fisheries subsidies track: deadline and context set by Ministers overtaken by suspension What is needed as a part of breakthrough” package? Linkage with other areas – agriculture, NAMA etcState-of-Play – TRIPS-GI Register: State-of-Play – TRIPS-GI Register Positions still polarised with regard to the 2 key issues of legal effects and participation in the system Costs and fees another area of concern Linkage to wider issue of extension of higher level of protection to other products: an implementation issue Some Members have invited the Chair to introduce a text under his own responsibility. Might come out with an options paper insteadState-of-Play – Dispute Settlement: State-of-Play – Dispute Settlement Work before suspension quite useful but not a basis for a final agreement Key issues – sequencing, enhanced third party rights, remand authority for the Appellate Body, procedures for post-retaliation, transparency Recent meetings taking place in good atmosphere; new submissions received Revised submissions required to clarify certain issues and positions of Members – LDCs and African Group to submit revised proposals State-of-Play – Trade & Environment: State-of-Play – Trade & Environment Focus has been on the mandate in para. 31(iii), i.e., “the reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services” Revised list of Environmental Goods for liberalisation has been submitted, narrowing scope by almost 70% Developing countries – concerns about the list approach Possible convergence on elements for an outcome on the collaboration between the WTO-MEA Secretariats Progress on the examination of the relationship between WTO and MEA rulesState-of-Play – Trade Facilitation: State-of-Play – Trade Facilitation Good progress in the negotiations -active engagement by developing countries Text-based contributions from Members – platform for a draft text to be circulated for Members’ consideration Range of detailed technical contributions limited Negotiations have not reached full drafting mode: considerable workload remains Some Members seem to waiting for overall progress in the negotiations S&D: some developing countries want upfront commitments on technical assistance and capacity building - needs assessment exerciseState-of-Play – S&D: State-of-Play – S&D Positive discussions, clarifying what could eventually be landing zone for Agreement-specific proposal Text-based discussions on some category I&III proposals, based on revised language from proponents Out of the 16 proposals, some progress made on 7 proposals. With respect the other 9 proposals, new language needed if progress is to be made Monitoring Mechanism: questions (structure, function and relation to existing mechanisms) DFQF for LDCs: need for discussions based on LDC proposals on rules of origin and market accessState-of-Play – Aid for Trade: State-of-Play – Aid for Trade A4T Taskforce Report and Recommendations on how to operationalise A4T were adopted by the General Council in July 2006 In addition to the next steps, recommendation on monitoring body in WTO to undertake a global review Additional financing: DG reported that donors are committed Three regional A4T reviews in September; global review in November 2007 Concluding the Round in 2007?: Concluding the Round in 2007? Challenge: how to make most of the renewed political commitment Work progressing in all negotiating bodies Role of G4+/- mainly on agriculture and NAMA; Failure at Potsdam, Germany in June 2007 Other offstage bilateral/plurilateral contacts – APEC July 2007 Concluding the Round in 2007?: Concluding the Round in 2007? Establish modalities in Ag and NAMA: July? Prepare schedules based on modalities Verification of schedules Conclude negotiations in other areas including services Legal drafting Signing of Final Act Domestic ratification processes Concluding the Round in 2007: Concluding the Round in 2007 ●After the G-4 impasse at Potsdam, momentum has shifted to Geneva Chairs of Agriculture and NAMA to circulate texts by middle of July 2007 Texts to be discussed in the last week of July August 2007 – month of reflection on the texts and the way forward Work on the texts to begin earnest in September 2007 Can Round be concluded by end of 2007? Other considerations: TPA renewal/extension – expired on 30 June 2007; US Farm Bill reform? You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
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Edit Comment Close Premium member Presentation Transcript State-of-Play Doha Development Agenda: State-of-Play Doha Development Agenda Edwini Kessie Council and Trade Negotiations Committee Division, World Trade Organization edwini.kessie@wto.orgINTRODUCTION: INTRODUCTION Objective of presentation Historical Background of Doha Round Principal elements of the DDA Hong Kong Ministerial Conference Post Hong Kong State-of-Play Understanding the WTO at work HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Uruguay Round 1986-1994 Most ambitious of trade rounds since creation of GATT An expanded agenda included new issues (services, TRIPs) Round fatigue, but built-in-agenda on agriculture and services ensured that negotiations would begin on these in 2000HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Singapore Ministerial Conference 1996 First WTO conference; No Round Launch – more of a consolidation and adoption of a work programme; Controversial issues – trade and labour, Singapore Issues, environment. HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Geneva Ministerial Conference 1998 Largely ceremonial – 50th Anniversary celebration; The issue of implementation of the Uruguay Round results surfaced; First WTO conference to see large scale demonstrations. HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Seattle Ministerial Conference 1999 Envisaged as launch of comprehensive new round (Millennium Round?) Conference collapse - why? E.g. prep process, DG race, transatlantic division, developing country coalitions, labour standards, conference management etc. HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Doha Ministerial Conference 2001 Launched Doha Development Round Doha Declaration - Negotiation mandates + other work = Doha Development Agenda Subjects for negotiation: Agriculture Services Non-agricultural access TRIPS WTO Rules Dispute Settlement Understanding (outside SU) Trade and Environment Singapore Issues (Explicit consensus) Special and differential treatment for developing countries Implementation (para. 12)HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Work under the General Council, i.e. part of Doha Work Programme, but not part of 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 TRIPS Agreement and the CBD, the protection of traditional knowledge and folklore – para. 19 Trade Negotiations Committee (TNC); Doha Round conclusion by 1 January 2005HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Cancún Ministerial Conference 2003 Mid-point of negotiations –> stock-taking of progress; Original objective to adopt modalities in agriculture and NAMA; Reason for failure - missed deadlines (modalities; cotton issue added to the agenda; Singapore Issues, management of conference etc HISTORICAL BACKGROUND: HISTORICAL BACKGROUND General Council Decision 1 August 2004 Lack of substantive progress in the DDA - need to get negotiations back on track; Provided detailed frameworks for and direction to negotiations; Elimination of an end-date to the Round; Pointed towards Sixth Ministerial Conference. HISTORICAL BACKGROUND: HISTORICAL BACKGROUND General Council July 2005 Ambition to have first approximations of modalities, i.e. some numbers and some specific dates to prepare ground for HK. Much good technical work, political will not translating into tangible progress. HISTORICAL BACKGROUND: HISTORICAL BACKGROUND Preparatory Process for Hong Kong Sept-Dec. 2005 New Director-General – smooth transition Some comparisons to pre-Seattle Recalibrating expectations for Hong Kong in November 2005 Expiry of US Trade Promotion Authority in mid-2007 a key factorPrincipal Elements of the DDA: Principal Elements of the DDA Doha Declaration (WT/MIN/(01)/DEC/1) sets out the mandates-remains the foundation; The 1 August 2004 General Council Decision (WT/L/579) provided substantive frameworks, more detail and political guidance; Hong Kong Ministerial Declaration (WT/MIN(05)/DEC) – attempt to agree on broad outlines/principles to govern the negotiations1 August 2004 GC Decision: 1 August 2004 GC DecisionSlide15: The purpose of the Decision: Reaffirmation of Doha Putting behind the ghost of Cancún Ensuring continued progress in the negotiations Building the comfort of development dimension High-Level ministerial involvement crucial – Bob Zoellick, Pascal Lamy, Celso Amorim, Kamal Nath., etcAugust Decision: Agriculture : August Decision: 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 S&D Reform of 3 pillars form an interconnected whole and need to be approached in a balanced and equitable mannerAugust Decision: Agriculture: August Decision: Agriculture Export Competition Parallel elimination of all forms of export subsidies by a date to be determined through negotiations. Export credits, export credit guarantees or insurance programmes as well as the trade-distorting practices of exporting STE. New disciplines on food aid to prevent commercial displacement.August Decision: Agriculture: August Decision: Agriculture Domestic support Countries with higher subsidy levels will have to reduce the most Overall trade-distorting domestic support ceilings will be substantially reduced, including a down payment of 20% in the first year alone of the implementation period In addition to the cuts, there will be product-specific capping on spending of Amber Box support Blue Box payments, for the first time, to be capped at 5% of the value of domestic agricultural production Green Box criteria to be reviewed and clarifiedAugust Decision: Agriculture: August Decision: Agriculture Market access Tariff reductions to be made through a tiered formula - deeper cuts to be made to higher tariffs. All countries, other than least-developed countries, are expected to undertake substantial improvements in market access for all agricultural products, including sensitive products whose treatment will allow for some flexibility. Special and differential treatment for developing countries to include longer time frames, lower reduction commitments, Special Products and a new Special Safeguard Mechanism.August Decision: Cotton: August Decision: Cotton Issue to be addressed ambitiously, expeditiously, and specifically within the Agriculture negotiations A sub-committee on cotton to be established Work on all trade distorting policies affecting the sector in all three pillars of market access, domestic support and export competitionAugust Decision: NAMA: August Decision: NAMA A framework was “adopted” by the Members in document WT/L/579 of 1 August 2004 Very similar to the so-called “Derbez Text” (Job(03)/150/Rev.2) The framework included a new first paragraph commonly referred to as “the vehicle” – basically said that nothing in the text has been agreed and that further work will be required August Decision: NAMA: August Decision: NAMA The “vehicle” (Para. 1) was designed to provide comfort to the Members in approving Annex B Additional negotiations on the formula, unbound tariffs, flexibilities for developing-country participants, sectoral tariff component NTBs and preferences. But Decision showed little progress. August Decision: Development: August Decision: Development S&D treatment – review all outstanding issues Technical Assistance Implementation Development concerns to permeate negotiations on market access August Decision: Services: August Decision: Services Services not a deal breaker in Decision ...but reaffirms commitment of Members to making progress in the services negotiations. Urges Members to submit their initial offers A deadline of May 2005 was set for the submission of revised offers. August Decision: Singapore Issues: August Decision: Singapore Issues Agreement to commence negotiations on Trade Facilitation – October 2005 to clarify and improve three existing GATT Articles with a view to expediting the movement, release and clearance of goods across borders, including goods in transit. Trade and Investment, Competition Policy and Transparency in Gov. Procurement No negotiations in the WTO during the Doha Round.August Decision: Other negotiations: August Decision: Other negotiations Dispute settlement negotiations to continue. Other negotiating areas – commitment to progress in line with the Doha mandates. They similarly reaffirmed the high priority Ministers at Doha gave to the other elements of the Work Programme which do not involve negotiations and instructed that reports should be made to the next Ministerial Conference.August Decision: What did it mean? : August Decision: What did it mean? DDA back on track + recommitment to Doha mandates Framework agreement in agriculture and NAMA Refocused membership with priorities: modalities in Agriculture modalities in NAMA a critical mass of market opening offers in Services significant progress in areas such as Rules and Trade Facilitation, and a proper reflection of the development dimension. Doha Round deadline extended, but no date. August Decision: What did it mean?: August Decision: What did it mean? Significance of ministerial involvement. Clearer picture of political trade-offs, gateway issues etc.July 2005 – A first approximation?: July 2005 – A first approximation? General Council July 2005 Ambition was to have first approximations of modalities, i.e. some numbers and some specific dates to prepare ground for HK. Much good work, some progress but key issues in agriculture and NAMA still outstanding. Hong Kong Ministerial Conference: Hong Kong Ministerial Conference Preparatory Process September – December 2005 Intensified Negotiating Group work Informal HODs, TNCs and General Councils Ministerial “get-togethers” “bottom-up” approachHong Kong Ministerial Conference: Hong Kong Ministerial Conference October – November Several new proposals in agriculture, e.g. US proposal on domestic support EC, G10, G33, G20, US proposals on market access However, while moving discussions forward wide divergence on cuts and co-efficients remained. Hong Kong Ministerial Conference: Hong Kong Ministerial Conference November 10 informal HODs Recalibration of expectations for HK, but consolidation of progress since August 2004 Decision November 26 First draft ministerial declaration December 1 Second draft ministerial declaration December 7 Third draft ministerial declaration Letter to Chairman of HK meetingHong Kong Ministerial Conference: Hong Kong Ministerial Conference 13-18 December 2005; 5500 delegates; 3320 media; 812 NGOs (1595 individuals); Around the clock negotiations by Ministers Continuation of Geneva process; Facilitators at work; Multi-layered consultative process; Conference adopted Ministerial Declaration at 10.30 pm 18 December Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration Agriculture: Export competition End date (2013) for all forms of export subsidies. Develop disciplines on food aid, export credits and exporting STEs by 30 April Creation of a “safe box” for bona fide food aid. Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration Domestic support Subsidies classified in three bands for purpose of reduction. Top band: EC, Middle band: US and Japan, Lower band: other developed countries and developing countries; Overall cuts must be at least equal to sum of reductions in amber box, blue box and de minimis support. Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration Market access Four bands for structuring tariff cuts Self-designation of Special Products for developing countries Recourse to SSM for developing countries Modalities 30 April 2006. Comprehensive draft schedules 31 July 2006. Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration Cotton export subsidies - to be eliminated by the end of 2006. Market access - cotton exports from LDCs will be allowed into developed countries without duty or quotas from the start of the implementation period of the new agriculture agreement Domestic support - subsidies for cotton should be more ambitious than would normally apply under the new agreement for the reduction of subsidies Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration NAMA adoption of a Swiss formula with coefficients at levels which shall inter alia (a) reduce or as appropriate eliminate tariffs, including the reduction of elimination of tariff peaks, high tariffs and tariff escalation, in particular on products of export interest to developing countries (b) take fully into account the special needs and interests of developing countries, including through less than full reciprocity in reduction commitments. Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration NAMA Reaffirms Paragraph 8 of August 2004 Decision as integral part of modalities Non-linear mark up approach for unbound tariff lines Modalities 30 April 2006. Comprehensive draft schedules 31 July 2006. Market access in NAMA and agriculture were put under the same comparably high level of ambition Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration Services Text points positively to the way forward 28 February 2006 deadline for plurilateral requests 31 July 2006 deadline for second round of revised offers 31 October 2006 deadline for final draft schedules of commitments Negotiations to give particular attention to sectors and mode of supply of export interest to developing countriesHong Kong Ministerial Declaration: Hong Kong Ministerial Declaration OTHER ELEMENTS Rules TRIPS Environment Trade Facilitation Dispute Settlement Understanding S&D Treatment Aid-for-Trade Hong Kong Ministerial Declaration: Hong Kong Ministerial Declaration LDCs Agreement by developed-country Members, and developing-country Members declaring themselves in a position to do so, to implement effective duty-free, quota-free (DFQF) market access LDC products from 2008 Those countries that face difficulties in providing full unrestricted access in 2008 will be required to provide DFQF to LDC products falling under 97% of their tariff lines. Hong Kong Ministerial Conference: Hong Kong Ministerial Conference Evaluation: Modest outcome, but given recalibration of ambitions prior to MC probably as good as could be expected. Signal of commitment to maintain ambition for the Doha Round and to seek conclusion end of 2006. Avoiding another collapse was important and sent strong signal of ministerial commitment to the Geneva process Hong Kong MC Outcomes (1): Hong Kong MC Outcomes (1) LDCs given extension until 1 July 2013 to provide protection for trademarks, copyright, patents and other intellectual property under the WTO’s agreement. WTO Members approved changes to the intellectual property agreement making permanent a decision on patents and public health originally adopted in 2003. This General Council decision means that for the first time a core WTO agreement will be amended. Hong Kong MC Outcomes (2): Hong Kong MC Outcomes (2) Others Duty-Free-Quota Free access by 2008 on 97 percent of the tariff lines exported by the least developed countries (LDCs). Agreement to allow LDCs to maintain measures inconsistent with the Agreement TRIMs for at least seven years and possibly until 2020. Extend the moratorium on tariffs on e-commerce until the next ministerial.Developments in 2006: Developments in 2006 Expectation that modalities would be agreed at the latest by July 2006 Formal and informal processes – G4/G6 meetings and Geneva process in parallel Chairman of the agriculture negotiations circulated reference papers on key issues under negotiation and later possible draft modalities on 22 June 2006 (TN/AG/3) Chairman of the NAMA negotiations also circulated a text in June (TN/MA/W/80) to assist Members to agree on modalities Documents highlighted the gaps in Members’ positions on the key issuesDevelopments in 2006 /2007: Developments in 2006 /2007 Attempts to bridge the differences failed culminating in the suspension of the negotiations in July 2006 The DG used the period after the summer to consult widely with Members Concern that if negotiations are not resumed, members would lose interest and turn their attention to bilateral/regional trade agreements Members and a number of groupings reaffirmed their commitment to the MTS and to the DDA negotiations. At Davos in early 2007, about 30 ministers issued a call for the resumption of negotiations and their commitment to work towards the conclusion of the Round Return to full negotiating mode in February 2007Developments in 2007: Developments in 2007 Much of the focus on the work of the G4, especially on agriculture and NAMA Acknowledgement that the G4 process is important, as without agreement among them, it would be extremely difficult to broker an agreement among the wider membership Concern that the G4 process was not delivering and that it was not transparent At the 20 April 2007 HODs, Members stressed the importance / primacy of the multilateral Geneva process and demanded that the G4 process and other informal processes should feed into the multilateral process Pressure on the G4 to deliver very soonState-of-Play – Agriculture : State-of-Play – Agriculture April and May 2007: Challenges Paper issued in 2 instalments by Chairman Crawford Falconer of New Zealand Papers identify possible “centers of gravity” in all 3 pillars of the Agreement on Agriculture (MA, DS and EC) Aimed at focussing the minds of negotiators on the key issues, where agreement thus far has been elusive Texts criticised by both developed and developing countries – pain felt all around which could be a good sign Objective is to agree on modalities by June 2007, so as to pave the way for progress to be made on the remaining negotiating issuesState-of-Play – Agriculture: DS : State-of-Play – Agriculture: DS US subsidies: below $19bn; above low teens EC should envision a cut above 70% On AMS, the US should improve its offer and aim at reducing support by at least 60% De minimis spending and Blue Box payments to be reduced by at least 50% Various options for limiting Blue Box and de minimis spending on specific commodities Cotton-“more ambitious” treatment: between US (53%) and C4 proposal (over 80%)State-of-Play – Agriculture: MA : State-of-Play – Agriculture: MA Structure Already agreed at the HK Ministerial Conference: 4 bands, progressivity –higher tariffs to be reduced by a greater percentage Possible deal on reducing tariffs: between US (85%) and EC (60%) positions as regards the top band: top band critical, as rest will be proportionate Negotiations would have to deliver more than a 50% overall cut. The G-20 has proposed a 54% cut Special and Differential Treatment for developing countries: two-thirds of the cut to be made by developed countriesState-of-Play – Agriculture: MA : State-of-Play – Agriculture: MA Sensitive Products Number: 1-5 per cent of tariff lines Treatment: 1-2/3 of reduction plus Tariff Rate Quota (TRQ) expansion (domestic consumption / import levels?) Special Products Number: 5-8 per cent of tariff lines Treatment: lesser tariff cuts – around 10-20% cuts Special and Differential Treatment Should developing countries be allowed to use the linear formula like in the Uruguay Round?State-of-Play – Agriculture: MA : State-of-Play – Agriculture: MA Constraining SSM: scope, triggers, remedies Preference erosion – tropical products linked to the problem: bananas and sugar Tariff escalation, commodities: issues have not been thoroughly discussed LDCs: DFQF – 97% at the start of the implementation period; 100% something to aim for by the end of the implementation period EXPORT COMPETITION: Remaining issues not as difficult as those under the first two pillars: food aid; state trading enterprises and export creditsState-of-Play – Cotton : State-of-Play – Cotton Trade Aspects: progress depends on overall progress in the agriculture negotiations Development Aspects. High Level Meeting on March 2007 to take stock and evaluate progress Positive and intensive exchange of views on a number of issues Follow-up to the high level meeting: Eighth DG consultative framework meeting to take place on 18 June 2007State-of-Play – NAMA : State-of-Play – NAMA Intensive Chair consultations on all key issues Not much progress; positions of Members have not evolved Linkage with agriculture Aim is to agree on a text by June 2007. Full modalities in tandem with agriculture to pave the way for progress to be made on other negotiating issuesState-of-Play – NAMA : State-of-Play – NAMA Which formula – Simple Swiss Formula with two co-efficients or a Swiss-type formula with variable co-efficients depending on the average tariff rates of Members Overwhelming support for the use of a simple Swiss formula with two co-efficients Should co-effiecients be within sight of each other? Proposals range from 5 to 30 per cent Flexibilities for developing countries – paragraphs 6 &8 Treatment of unbound tariffs NTBs: notified but what are the solutions Preference erosionState-of-Play – Services: State-of-Play – Services Number of offers satisfactory, issue is quality Third Round of request-offer plurilateral negotiations assessed as “positive” Overriding issue is the quality of offers – would revised offers result in new market access opportunities? Some Members (US and EC) want to see services addressed as part of any “breakthrough” package – horizontal commitments? Draft Chair text on possible disciplines on domestic regulation welcomed as basis for further negotiations Other areas where progress needed: LDC modalities; sectors of export interest to developing countries; mode 4, GATS rules Next cluster of meetings in July 2007State-of-Play – Rules: State-of-Play – Rules RTAs track: insufficient number of proposals to improve substantive rules Review of RTA Transparency Mechanism: need to gain experience in both the CRTA and the CTD before review AD/SCM, including fisheries subsidies track: deadline and context set by Ministers overtaken by suspension What is needed as a part of breakthrough” package? Linkage with other areas – agriculture, NAMA etcState-of-Play – TRIPS-GI Register: State-of-Play – TRIPS-GI Register Positions still polarised with regard to the 2 key issues of legal effects and participation in the system Costs and fees another area of concern Linkage to wider issue of extension of higher level of protection to other products: an implementation issue Some Members have invited the Chair to introduce a text under his own responsibility. Might come out with an options paper insteadState-of-Play – Dispute Settlement: State-of-Play – Dispute Settlement Work before suspension quite useful but not a basis for a final agreement Key issues – sequencing, enhanced third party rights, remand authority for the Appellate Body, procedures for post-retaliation, transparency Recent meetings taking place in good atmosphere; new submissions received Revised submissions required to clarify certain issues and positions of Members – LDCs and African Group to submit revised proposals State-of-Play – Trade & Environment: State-of-Play – Trade & Environment Focus has been on the mandate in para. 31(iii), i.e., “the reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services” Revised list of Environmental Goods for liberalisation has been submitted, narrowing scope by almost 70% Developing countries – concerns about the list approach Possible convergence on elements for an outcome on the collaboration between the WTO-MEA Secretariats Progress on the examination of the relationship between WTO and MEA rulesState-of-Play – Trade Facilitation: State-of-Play – Trade Facilitation Good progress in the negotiations -active engagement by developing countries Text-based contributions from Members – platform for a draft text to be circulated for Members’ consideration Range of detailed technical contributions limited Negotiations have not reached full drafting mode: considerable workload remains Some Members seem to waiting for overall progress in the negotiations S&D: some developing countries want upfront commitments on technical assistance and capacity building - needs assessment exerciseState-of-Play – S&D: State-of-Play – S&D Positive discussions, clarifying what could eventually be landing zone for Agreement-specific proposal Text-based discussions on some category I&III proposals, based on revised language from proponents Out of the 16 proposals, some progress made on 7 proposals. With respect the other 9 proposals, new language needed if progress is to be made Monitoring Mechanism: questions (structure, function and relation to existing mechanisms) DFQF for LDCs: need for discussions based on LDC proposals on rules of origin and market accessState-of-Play – Aid for Trade: State-of-Play – Aid for Trade A4T Taskforce Report and Recommendations on how to operationalise A4T were adopted by the General Council in July 2006 In addition to the next steps, recommendation on monitoring body in WTO to undertake a global review Additional financing: DG reported that donors are committed Three regional A4T reviews in September; global review in November 2007 Concluding the Round in 2007?: Concluding the Round in 2007? Challenge: how to make most of the renewed political commitment Work progressing in all negotiating bodies Role of G4+/- mainly on agriculture and NAMA; Failure at Potsdam, Germany in June 2007 Other offstage bilateral/plurilateral contacts – APEC July 2007 Concluding the Round in 2007?: Concluding the Round in 2007? Establish modalities in Ag and NAMA: July? Prepare schedules based on modalities Verification of schedules Conclude negotiations in other areas including services Legal drafting Signing of Final Act Domestic ratification processes Concluding the Round in 2007: Concluding the Round in 2007 ●After the G-4 impasse at Potsdam, momentum has shifted to Geneva Chairs of Agriculture and NAMA to circulate texts by middle of July 2007 Texts to be discussed in the last week of July August 2007 – month of reflection on the texts and the way forward Work on the texts to begin earnest in September 2007 Can Round be concluded by end of 2007? Other considerations: TPA renewal/extension – expired on 30 June 2007; US Farm Bill reform?