• Abstract and Figures
• Public Full-text

RESTRICTED WORLD TRADE WT/GC/M/92 7 April 2005 ORGANIZATION (05-1409)

General Council 15 February 2005

MINUTES OF MEETING

Held in the Centre William Rappard on 15 February 2005

Chairman: Mr. Shotaro Oshima (Japan)

Subjects discussed: Page 1. Iran – Request for Accession...... 1 2. Accession of Serbia and Montenegro – Communication from the State Union....5 3. Montenegro – Request for accession...... 5 4. Serbia – Request for accession...... 7 5. Report by the Chairman of the Trade Negotiations Committee...... 9 6. Work Programme on Small Economies – Report by the Chairman of the Dedicated Session of the Committee on Trade and Development...... 11 7. Review of the Exemption provided under paragraph 3 of the GATT 1994...... 13 8. Non-recognition of rights under Article XXIV:6 and Article XXVIII of GATT 1994 – Communication from Honduras and Guatemala – Statement by the Chairman...... 15 9. Procedure for the introduction of HS 2002 changes to schedules of tariff concessions using the Consolidated Tariff Schedules (CTS) Database – Draft decision...... 19 10. Appointment of officers to WTO bodies...... 19 11. Rules of Origin – Harmonization Work Programme – Statement by the Chairman...... 21 12. Accession of Viet Nam – Chairmanship of the Working Party - Announcement by the Chairman...... 22 13. Election of Chairperson...... 23

1. Iran – Request for Accession (WT/ACC/IRN/1)

1. The Chairman drew attention to the communication from Iran in document WT/ACC/IRN/1, requesting accession to the WTO Agreement pursuant to Article XII. He recalled that the General Council had last considered this matter at its meeting in December 2004. In the light of the views expressed at that meeting, he had said that he would continue to consult with delegations, and the Council had agreed to revert to this item at the present meeting. On 11 February, he had held a WT/GC/M/92 Page 2 further consultation meeting in order to see if there were any movements in positions that might allow Members to work towards a satisfactory resolution to Iran's accession request. He had invited to these consultations all delegations who had spoken on this subject at previous Council meetings. It seemed clear from his consultations that a large part of the membership continued to be supportive of an early and positive action on this request in the Council on the basis of the provisions of Article XII of the WTO Agreement. However, he had to report once again that there still appeared to be no consensus at the present stage to accept Iran's request and to set up a working party for this purpose.

2. The representative of the United States said that the issue of Iran's accession to the WTO continued to be under review by her authorities. Her delegation had nothing to add to the statement it had made at the December 2004 meeting of the General Council.

3. The representative of Paraguay, speaking on behalf of the Informal Group of Developing Countries, thanked the Chairman for the consultations he had held on this subject. These countries took note of the statement by the United States and trusted that it would be able to complete its review rapidly, so as to be in a position to provide a positive reply to Iran's request for accession as soon as possible.

4. The representatives of Venezuela, Turkey, Malaysia, Indonesia, China, Oman, Singapore, India and Uruguay associated their delegations with the statement by Paraguay on behalf of the Informal Group of Developing Countries, and urged the Chairman to continue his consultations in order to reach an early resolution of this matter.

5. The representative of Venezuela said it was incomprehensible that almost ten years after Iran had first submitted its request for accession to the WTO, this issue was still on the Council's agenda. His delegation understood that there was an emerging consensus in favour of the accession of Iran, which, like other developing countries, had made significant efforts in the fields of economic relations and trade that qualified it, in accordance with WTO rules, for the establishment of a working party to examine its accession request. Members had agreed to establish working parties for other countries in situations similar to that of Iran, and were about to adopt identical decisions with regard to other requests on the present Council's agenda. He recalled Ministers' statement in paragraph 9 of the Doha Declaration with regard to the accession process: "We therefore attach great importance to concluding accession proceedings as quickly as possible … ." In this regard, Venezuela reiterated its support for Iran's legitimate request to enter the multilateral trading system. It was necessary to put aside considerations that were strictly political in nature. Otherwise, the question arose as to whether the WTO Agreements were subject to unilateral decisions. Should this be the case, it would jeopardize the universal nature of the organization, as well as its credibility. In the Doha Declaration Ministers emphasized in paragraph 10 that "[r]ecognizing the challenges posed by an expanding WTO membership, we confirm our collective responsibility to ensure internal transparency and the effective participation of all Members. While emphasizing the intergovernmental character of the organization, we are committed to making the WTO's operations more transparent … ." The time had come to examine other options envisaged in the rules on decision-making within the organization and Venezuela urged the Chairman to keep these options in mind as he continued consultations on this matter.

6. The representative of Turkey reiterated his delegation's hope that this long-overdue issue would be settled in due time on its own merits and in line with the spirit with which the organization was vested.

7. The representative of Pakistan joined in the statements by Venezuela and Turkey. This issue had been pending for a long time and needed to be resolved without any further delay. Pakistan urged flexibility and fairness in dealing with Iran’s request. WT/GC/M/92 Page 3

8. The representative of Indonesia said that this issue had been on the Council's agenda with no real progress for far too long. His delegation urged the Member who still had a problem with the establishment of a working party to examine Iran's request for accession to take the necessary steps so as not to degrade further the WTO accession process. Members had to uphold firmly the principle of accepting or rejecting a request for accession based on its individual merit, irrespective of differences on issues such as stage of development or political considerations. It was difficult to understand that Iran's request was still not acceptable to certain Members. The request itself fulfilled the standards that had been applied to other similar requests. The process of Iran's accession to the WTO would not only bring a positive change to the WTO, but also to Iran's participation in the world trading system. Indonesia wished to stress that all countries applying to join the WTO had to be treated in the same manner and be given equal opportunity to become a Member of the organization.

9. The representative of China said that although his delegation would not repeat its well-known position on this matter, it wished to express again its serious concern about the way this item was being treated. The early completion of a positive review of this matter by the relevant Member would help resolve this long-pending issue.

10. The representative of Cuba said that her delegation had maintained continuous support for Iran's accession request, and regretted – and viewed with much concern – that this accession process was not making progress. Cuba wished to reiterate that Members should not introduce into this issue elements that were not related to trade, and urged the country that had difficulties with this accession request to take a decision urgently and to allow this process to go forward. The principle of non- discrimination was of paramount importance in the WTO, and all accession processes had to be dealt with on an equal footing. Cuba maintained its support for Iran's request and for maintaining the accession process on the basis of WTO principles. Her delegation wished to continue to participate in the consultations the Chairman was holding, in the hopes of arriving at a satisfactory solution to this issue.

11. The representative of Oman noted that Iran's request had been on the Council's agenda for a long time. For several years Oman had repeatedly supported this request, and did not know how many more years it would have to do so. The WTO as a world organization was losing credibility, and it was time to think seriously about finding a way to resolve this issue.

12. The representative of the European Communities noted that this matter had now been on the Council's agenda more than 15 times. The Community had always supported Iran's request, fully supported it now, and wished to see it approved. The Community's position on WTO applicants had been to treat each application on its own merits, independent of political considerations. Iran fulfilled the accession criteria of Article XII, and any decision on a request for accession should be made on the basis of objective economic criteria. Other countries that were in a lesser state of readiness than Iran already had accession negotiations under way, or would soon. The Community expected all Members to treat all applications in the same way. Moreover, starting discussions on WTO accession with Iran would help promote reform in that country. The basic WTO principles of transparency and non-discrimination were at the heart of good governance, which the Community wished to encourage. WTO involvement would also be beneficial to other peoples in the region, as an element to encourage and drive the process of economic and political reform in their countries. His delegation regretted to hear at the present meeting that the United States was still not able to agree to grant Iran's request. The Community urged the Chairman to continue the process of informal consultations in order to find a way out of the current deadlock.

13. The representative of Singapore said he wished to underline that, as a matter of principle, Singapore strongly supported the objective of universal membership in the WTO, which was an important pillar of the rules-based multilateral trading system. Any applicant who qualified for WTO membership should, upon satisfactory completion of the accession requirements, be admitted. It was WT/GC/M/92 Page 4 important that this principle be applied consistently to all applicants. Otherwise, the credibility of the WTO would be affected.

14. The representative of India reiterated India's support for the early accession of Iran to the WTO, based on the principles of transparency and non-discrimination.

15. The representative of Djibouti said that as several delegations had pointed out, this issue had been on the Council's agenda for some time, and Members should now have reached a stage where they could agree to examine Iran's request. Once Iran had been accepted into the organization, it would contribute to the proper functioning of the WTO system and would enhance the universality of the organization. As some delegations had also said, in order for an organization to be universal, each Member should be able to see its interests and concerns met, once they had complied with the conditions for accession. All Members should understand these facts. His delegation hoped that Iran's request for accession would not be on the Council's agenda much longer.

16. The representative of Norway said that his delegation's point of departure was that any state or separate customs territory that fulfilled the criteria for membership laid down in the WTO Agreement, and that was willing and able to accept the obligations incumbent upon Members of this organization, should be able to have its accession request referred to a working party. For Norway, this was a systemic issue, independent of political issues per se. Norway noted that the Chairman had consulted on this issue as mandated by the General Council, but so far without success. Like others, his delegation urged the Chairman to continue consultations with interested Members, with a view to advancing this issue.

17. The representative of Switzerland said he would not repeat statements he had made on this matter at earlier occasions. Switzerland supported what had been said by other speakers, in particular the European Communities and Singapore. He endorsed the views in these statements even more, given that the eminent persons the Director-General had entrusted with studying the WTO's future had, in their recent report, stressed the importance of timeliness in dealing with accession requests, and that such requests should be examined solely in trade terms and in light of the concessions or commitments the candidates were willing to make.1

18. The representative of Uruguay said that his Government supported a request for accession by any country that complied with the provisions stipulated in the WTO Agreement.

19. The representative of Chile supported the statements by all of the previous speakers who had supported Iran's accession to the WTO. Chile urged the Chairman to continue his consultations so as to reach consensus on this issue. There were many ways to measure an organization's credibility. In the area of accessions, if Members continued along the track they were currently on, the organization would receive very poor marks for credibility.

20. The representative of New Zealand said his delegation had participated in the consultations on Iran's application for accession. It had been clear then, as it was now, that there was no change to the present stalemate and the absence of consensus. Like others who had spoken, his delegation too believed that any country meeting the requirements of Article XII should have the opportunity to begin the accession process. New Zealand believed strongly in the importance of the globality of the multilateral trading system, and wished to see all of its bilateral trading relationships governed by multilateral rules. As such, it regretted that in the present case there was still no opportunity to begin the essential process of bringing Iran into the multilateral trading system, and encouraged the Chairman to continue his work.

1 "The Future of the WTO – Addressing institutional challenges in the new millennium – Report by the Consultative Bard to the Director-General Supachai Panitchpakdi". WT/GC/M/92 Page 5

21. The Chairman said that while a significant part of the membership was supportive of an early and positive action on this request, once again there was no consensus at the present stage to accept Iran's request. He trusted that, in view of the many statements at the present meeting, his successor as Council Chair would take this matter up in consultations with delegations before the next meeting of the General Council.

22. The General Council took note of the statements.

2. Accession of Serbia and Montenegro – Communication from the State Union (WT/ACC/SCG/3 and Add.1)

23. The Chairman drew attention to the communication from the State Union Serbia and Montenegro signed by the Minister for Foreign Economic Relations of Serbia and Montenegro (WT/ACC/SCG/3), and to the related communication of 1 February circulated as an Addendum to that document. He recalled that the General Council had established a Working Party to examine the application for WTO accession from the Federal Republic of Yugoslavia at its meeting in February 2001. Following the promulgation and adoption of the Constitutional Charter of Serbia and Montenegro in 2003, through which the name of the State of the Federal Republic of Yugoslavia had been changed to "Serbia and Montenegro", the Working Party had been renamed the Working Party on the Accession of Serbia and Montenegro by the General Council at its meeting in February 2004. The General Council had taken note that in all other respects, the conditions under which the Working Party had been established, and its terms of reference, remained unaffected. He noted that although the usual background documentation for the work of the Working Party had been circulated, the Working Party had never met.

24. The communication in document WT/ACC/SCG/3 informed Members that the Government of the Republic of Serbia and the Government of the Republic of Montenegro had now decided to apply individually and separately for accession to the WTO. At the level of the State Union, the Council of Ministers of Serbia and Montenegro had taken note of the decisions of the two Governments, and confirmed that the Republic of Serbia and the Republic of Montenegro possessed full autonomy in the conduct of their external commercial relations. Furthermore, in the light of the individual applications for WTO membership, the Council of Ministers of Serbia and Montenegro had requested that the application lodged by the Federal Republic of Yugoslavia in 2001 be considered withdrawn. Clarifications with regard to the legal relationships, in areas relevant to WTO accession, which exist under the current constitutional arrangements among the Union and its two constituent Republics, had been provided in document WT/ACC/SCG/3/Add.1.

25. He suggested that, given these circumstances, the most logical approach would be to deal first with the existing Working Party on the Accession of Serbia and Montenegro before considering the new applications under Items 3 and 4 of the present Council's Agenda. Accordingly, he proposed that the General Council take note of the communications from the State Union Serbia and Montenegro in document WT/ACC/SCG/3 and Add. 1, and agree to dissolve the Working Party on the Accession of Serbia and Montenegro with immediate effect.

26. The General Council took note of the statement and so agreed.

3. Montenegro – Request for accession (WT/ACC/CGR/1)

27. The Chairman drew attention to the communication from the Republic of Montenegro in document WT/ACC/CGR/1, requesting accession to the WTO Agreement pursuant to Article XII. He recalled that under Article XII of the WTO Agreement, accession to the WTO was open to "any State or separate customs territory possessing full autonomy in the conduct of its external commercial relations and of the other matters provided for in this Agreement and the Multilateral Trade WT/GC/M/92 Page 6

Agreements." The communications from the State Union Serbia and Montenegro in document WT/ACC/SCG/3 and Add.1 – which had been considered under the previous Agenda item – confirmed that the Republic of Montenegro: (i) maintained a customs and trade regime separate from that of the Republic of Serbia; (ii) possessed full autonomy in the conduct of its external commercial relations; and (iii) intended to undertake all the obligations associated with WTO membership and to be responsible to the WTO Members for its fulfilment of these obligations. Consultations carried out by the Secretariat on his behalf indicated broad acceptance among the membership of the decision of the Government of Montenegro to apply for accession pursuant to Article XII of the WTO Agreement. The support for Montenegro's application was based on the understanding that the conditions stipulated in Article XII would be adhered to during the accession process, and that the Republic of Montenegro would be fully responsible for the implementation of obligations arising from accession to the WTO.

28. As the current constitutional structure of Serbia and Montenegro granted international personality to the State Union Serbia and Montenegro, it was also understood that for the purposes of accession to the WTO, the Republic of Montenegro would be considered a separate customs territory. Accordingly, he proposed for Members' consideration that the General Council agree to establish a working party to examine the request with the following standard terms of reference and composition:

Terms of Reference:

"To examine the application of the Government of Montenegro to accede to the WTO Agreement under Article XII, and to submit to the General Council recommendations which may include a draft Protocol of Accession."

Membership:

Membership would be open to all Members indicating their wish to serve on the Working Party.

Chairmanship:

In keeping with customary practice, the General Council would authorize its Chairman to designate the Chairperson of the Working Party in consultation with representatives of Members and with the representative of Montenegro.

29. The General Council agreed to establish a Working Party with the terms of reference and composition as read out by the Chairman.

30. The Chairman then invited the delegation of Montenegro to consult with the Accessions Division of the Secretariat as to the further procedures, and in particular with regard to the basic documentation to be considered by the Working Party. He also invited Montenegro, on behalf of the General Council, to attend meetings of the General Council and, as appropriate, meetings of other WTO bodies as an observer during the period when the Working Party was carrying out its work.

31. The representative of Montenegro, speaking as an observer, expressed her Government's gratitude for the action just taken, which had cleared away the barriers to the rapid accession of Montenegro to the WTO – barriers which had prevented significant progress for the past three years and more. During that time, her Government had worked a lot on these issues, and intended to continue its work on economic reforms, as an integral part of its European integration process. One of the priorities of the economic reform agenda in Montenegro was accession to the WTO. A great deal of preparatory action had been taken to reform Montenegro's legal system and to bring it into conformity with the WTO, and most of the basic documentation necessary for consideration by the WT/GC/M/92 Page 7

Working Party had already been prepared. She was pleased to inform Members that her Government had recently adopted the memorandum on the foreign trade regime of the Republic of Montenegro and had drafted additional reports and documents. Within the next few days, this memorandum would be officially submitted. Her delegation hoped and believed that this would be the first step in a rapid accession process, and her Government pledged to make efforts to that end. Her Government expected that the accession process of Montenegro, which was a small country, would be speeded up, particularly after the full endorsement of the European Union's twin track approach to negotiation of the Stabilization and Association Agreement on the road to Montenegro's membership in the EU. Her delegation looked forward to beginning the dialogue with Members that was at the heart of the accession process, and to becoming a WTO Member in the shortest possible time.

32. The representatives of the European Communities and Croatia (on behalf of the informal group of CEFTA-plus countries) welcomed the establishment of a working party to examine Montenegro's request for accession.2

33. The General Council took note of the statements.

4. Serbia – Request for accession (WT/ACC/SRB/1)

34. The Chairman drew attention to the communication from the Republic of Serbia in document WT/ACC/SRB/1, requesting accession to the WTO Agreement pursuant to Article XII. He recalled that under Article XII of the WTO Agreement, accession to the WTO was open to "any State or separate customs territory possessing full autonomy in the conduct of its external commercial relations and of the other matters provided for in this Agreement and the Multilateral Trade Agreements." The communications from the State Union Serbia and Montenegro in document WT/ACC/SCG/3 and Add.1 – which had been considered under a previous Agenda item – confirmed that the Republic of Serbia: (i) maintained a customs and trade regime separate from that of the Republic of Montenegro; (ii) possessed full autonomy in the conduct of its external commercial relations; and (iii) intended to undertake all the obligations associated with WTO membership and to be responsible to the WTO Members for its fulfilment of these obligations. Consultations carried out by the Secretariat on his behalf indicated broad acceptance among the membership of the decision of the Government of Serbia to apply for accession pursuant to Article XII of the WTO Agreement. The support for Serbia's application was based on the understanding that the conditions stipulated in Article XII would be adhered to during the accession process, and that the Republic of Serbia would be fully responsible for the implementation of obligations arising from accession to the WTO.

35. As the current constitutional structure of Serbia and Montenegro granted international personality to the State Union Serbia and Montenegro, it was also understood that for the purposes of accession to the WTO, the Republic of Serbia would be considered a separate customs territory. Accordingly, he proposed for Members' consideration that the General Council agree to establish a working party to examine the request with the following standard terms of reference and composition:

Terms of Reference:

"To examine the application of the Government of Serbia to accede to the WTO Agreement under Article XII, and to submit to the General Council recommendations which may include a draft Protocol of Accession."

2 These statements were made under the next Agenda item, "Serbia – Request for Accession", and are reflected accordingly in the minutes. WT/GC/M/92 Page 8

Membership:

Membership would be open to all Members indicating their wish to serve on the Working Party.

Chairmanship:

In keeping with customary practice, the General Council would authorize its Chairman to designate the Chairperson of the Working Party in consultation with representatives of Members and with the representative of Serbia.

36. The General Council agreed to establish a Working Party with the terms of reference and composition as read out by the Chairman.

37. The Chairman then invited the delegation of Serbia to consult with the Accessions Division of the Secretariat as to the further procedures, and in particular with regard to the basic documentation to be considered by the Working Party. He also invited Serbia, on behalf of the General Council, to attend meetings of the General Council and, as appropriate, meetings of other WTO bodies as an observer during the period when the Working Party was carrying out its work.

38. The representative of Serbia, speaking as an observer, said his authorities were convinced that the multilateral trading system embodies in the WTO had much to contribute to global economic growth, development and increasing employment. Serbia recognized the importance of the WTO in creating this multilateral trading system, and wished to emphasize the importance it placed on its accession to the WTO. Serbia's WTO membership and its accession to the European Union were not just prime foreign policy objectives, but also provided criteria that would serve as guidelines and inspiration for assessing the political and economic reforms within Serbia. It was of particular importance for Serbia to become a WTO Member as soon as possible, as well as to conclude the Stabilization and Association Agreement with the EU in the course of 2006. He wished to reiterate that Serbia was committed to a swift and full integration into the multilateral trading system and to regional cooperation with its neighboring countries, based on the same principles. Serbia had achieved remarkable progress in its bilateral relations with its neighbors – Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Moldova and Romania. This had been achieved through a network of free-trade agreements signed in 2004, which had been drafted in full compliance with WTO provisions, in order to stimulate trade, investment and general economic development throughout the region. The average share of these seven neighboring countries in Serbian exports amounted to 35 per cent, and to about 10 per cent of Serbia's imports.

39. He also wished to draw attention to some of the main features of the present economic situation in Serbia. First, the Serbian Government was firmly committed to overall economic, social and institutional reforms aimed at a competitive market economy, including an intense privatization process. Serbia's GDP in 2004 had increased by eight per cent, and agricultural production by 12 per cent, compared to 2003. Annual inflation in 2003 had been at a level of 13.7 per cent. Foreign Direct Investment in 2004 had amounted to around US$1 billion. Serbia had the lowest corporate profit tax rate in Europe, at 10 per cent. Foreign trade and foreign investment regimes had been deregulated, liberalized and simplified. Significant autonomous international trade liberalization had been undertaken in the last three years – an average customs rate of 14.3 per cent had been decreased almost by half. He wished particularly to underline that Serbia believed that the success of the DDA negotiations was crucial, as this would provide an opportunity to improve the multilateral trading system and to enhance confidence in it worldwide. Serbia sincerely believed that its accession to the WTO would be a thorough and challenging process, not extended in time, and beneficial to all. Serbia's accession to the WTO would enable it, on the one hand, to benefit from broad trade liberalization and, on the other, to contribute to the universal success of the WTO. WT/GC/M/92 Page 9

40. The representative of the European Communities warmly welcomed the representatives of Montenegro and of Serbia and thanked them for their important statements. The Community welcomed the decision of the General Council to start accession negotiations with both Montenegro and with Serbia. His delegation hoped that this new endeavour would allow speedy and efficient negotiations. Generally, the Community believed that the WTO accession process would be very helpful for both Republics to undertake and drive forward reform at home in the perspective of integration into the international trading system.

41. The representative of Croatia, on behalf of the informal group of CEFTA-plus countries3, welcomed the delegations of Montenegro and Serbia and congratulated them on the Council's decision to start the negotiations for their respective accessions to the WTO. This was the second time that these countries welcomed the start of negotiations on the accession requests of these two Republics, and they hoped that the accession processes that Montenegro and Serbia were embarking on would prove to be more efficient and expeditious than the previous process. These countries supported the decision of both Republics to pursue their accession to the WTO in two separate accession processes. This decision reflected political and trade realities that could appropriately be addressed in this format when it came to WTO accession. The CEFTA-plus countries maintained traditionally good trade and economic cooperation with both Republics, and in that respect welcomed the prospect of their future WTO membership. They were confident that the adoption of WTO rules would assist both Republics in strengthening their trade relations in the region, as well as with other Members, and would provide an excellent framework for their further economic growth. They were also confident that the persistence of these two delegations and their willingness to engage in the negotiations would result in accession processes that would prove to be quick and successful. The CEFTA-plus countries wished both delegations all the best in their journeys to join the organization.

42. The General Council took note of the statements.

5. Report by the Chairman of the Trade Negotiations Committee

43. The Chairman recalled that at its first meeting in 2002, the Trade Negotiations Committee had agreed that it would report to each regular meeting of the General Council.

44. The Director-General, Chairman of the Trade Negotiations Committee, said the TNC had held its sixteenth meeting on 14 February 2005, which he was pleased to report had been a productive and business-like meeting. In his introductory statement at that meeting, he had been able to report that his recent contacts with Ministers had confirmed that there was a high degree of political commitment to the process leading up to Hong Kong, and that Members needed an ambitious outcome by that Conference if the Round was to conclude in 2006. In this connection, he had undertaken consultations with delegations prior to the TNC meeting on Members' objectives for 2005, looking to the Hong Kong Ministerial and beyond, as he had announced at the December TNC meeting. His aim was to build a collective sense as soon as possible of what level of progress would be needed in each area by the Hong Kong Ministerial Conference in order to attain an overall sense of balance. These consultations had indicated there was a high level of convergence on the need for a substantial breakthrough in Hong Kong in five key areas: 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.

45. He had also detected a strong sense of commitment at every level to flesh out the frameworks contained in the July 2004 Decision of the General Council, to strike a balance across all subjects and to ensure that the negotiations contributed to development. The scale of the task and the time available for it implied that careful planning would be required if Members were to reach their

3 Bulgaria, Croatia, Macedonia and Romania. WT/GC/M/92 Page 10 objectives. He had warned participants that they had to get down to real negotiations in all areas – meaning real give-and-take – and that they had to do this now. Achieving this would require a combination of hard work and flexibility here in Geneva, good coordination with capitals, and ongoing periodic political intervention. He had also pointed out that July 2005 had to be a marker in this process. Working back from the Hong Kong Ministerial Conference, by July Members had to be able to judge across the board whether they were on course for a significant outcome for Hong Kong. To allow this, Members would need to see the elements of the potential outcome product – or what some had called "first approximations" – emerging from the negotiating groups by early July at the latest. However, he had underlined that these elements had to be based on the results of real negotiations among Members.

46. Finally, he had informed participants that he was intensifying his already close coordination with the negotiating group Chairs and the General Council Chairperson to help guide further progress. In addition, he would use successive meetings of the TNC and in the Heads of Delegation format to foreshadow the elements for July and their overall balance over the coming months. He would also continue to use every opportunity to engage Ministers – both individually and when they gathered together on future occasions – on the key issues in the negotiations in Geneva. He had also underlined the importance of transparency and inclusiveness in the negotiating process, and the need to reduce the burden on smaller delegations as far as possible. In sum, 2005 had started with a good atmosphere and a high level of political-level commitment to achieving a substantial outcome at the Hong Kong Ministerial. While continued impetus from the political level should help Members achieve this, there was no substitute for the Geneva process, and all had a lot of hard work before them. If this commitment and this effort could be maintained and the focus kept on substance, he believed that the Hong Kong Ministerial could set the stage for a successful conclusion of the Doha Round in 2006.

47. The TNC had also heard oral reports from all the Chairpersons of the bodies established by it. These reports clearly showed there was still a need for the work to accelerate in most areas, especially in light of the timeline now ahead of Members. The meetings over the next two to three months would be crucial to achieving the sense of balance across the negotiations that Members would need to see later on. A large number of participants had made statements, reacting both to the Chairpersons' reports and to his introductory statement. He was grateful for the interesting and thoughtful views that had been set out, as well as the attendance of a large number of senior capital- based officials. From what had been said, he felt that all were working under the same game plan, with a view to concluding the DDA by the end of 2006.

48. Finally, he had made a further interim report to the TNC on his consultative process on all outstanding implementation issues under paragraph 12(b) of the Doha Ministerial Declaration, including on issues related to the extension of the protection of geographical indications provided for in Article 23 of the TRIPS Agreement to products other than wines and spirits. This process was being undertaken in accordance with the July 2004 Decision of the General Council. At the present stage, the work continued on two tracks, as he had reported in December. On the first track, covering all outstanding paragraph 12(b) implementation issues except the GI extension issue, the Chairpersons of concerned WTO bodies – who had agreed to act as his Friends – were continuing their consultations on his behalf. There continued to be a willingness among delegations to engage, and in some areas, there was continued hope to be able to find ways forward. On the second track, which concerned the GI extension issue, DDG Mr. Thompson-Flôres was also continuing his technical-level consultations on his behalf. He, as TNC Chair, had been able to report a good level of involvement by delegations in this process, but had cautioned that it clearly remained a difficult issue on which to make progress. He again urged all delegations to make every effort to allow progress to be made on all the outstanding implementation issues, so that the mandate contained in the July General Council Decision could be respected. WT/GC/M/92 Page 11

49. The representative of Rwanda, on behalf of the African Group, asked that the Group's statement at the February TNC meeting be included in the records of the present meeting.4

50. The representative of Benin, on behalf of the ACP Group, asked that the Group's statement at the February TNC meeting also be included in the records of the present meeting.5

51. The representative of Zambia, on behalf of the LDCs, asked that these countries' statement at the February TNC meeting also be included in the records of the present meeting.6

52. The General Council took note of the Director-General's report and of the statements.

6. Work Programme on Small Economies – Report by the Chairman of the Dedicated Session of the Committee on Trade and Development

53. The Chairman recalled that at its meeting in February and March 2002, the General Council took note of a framework and procedures for the conduct of the Work Programme on Small Economies, under which this Work Programme shall be a standing item on the General Council's agenda. The framework and procedures also provided that the Committee on Trade and Development shall report regularly to the General Council on the progress of work in its Dedicated Sessions on this subject.

54. Mr. Clarke (Barbados), Chairman of the Dedicated Session of the Committee on Trade and Development, reported that there was an understanding of the need for urgency in the deliberations of the Dedicated Session of the Committee on Trade and Development. Since his most recent report, he had held a number of consultations and one informal meeting of the Dedicated Session, which had addressed the Work Programme on Small Economies. That meeting had been held on 25 January. All were aware of the difficulties posed by the mandate in Paragraph 35 of the Doha Declaration. However, it was precisely these difficulties that Members had first to resolve, before they could move ahead with this work. Paragraph 35 required that the WTO launch a work programme to examine issues relating to the trade of small, vulnerable economies, and the General Council had launched that Work Programme in March 2002. He recalled that the objective of the Work Programme was "to frame responses to the trade-related issues identified for the fuller integration of small, vulnerable economies into the multilateral trading system, and not to create a sub-category of WTO Members". He believed that the Doha Ministerial Declaration honestly expected the membership to deliver something on this mandate, and time was running out.

55. He had seen over the past year how the second objective of not creating a sub-category of WTO Members continued to frustrate any progress on the first part of the objective, which was to frame responses. At the informal meeting of the Dedicated Session on 25 January, he had begun to seek an understanding on a possible way forward. Members had exchanged views based on three steps: the first was to consider the use of characteristics to identify what could be accepted as small, vulnerable economies, without naming any group of countries; the second was to consider the trade- related problems that could reasonably be attributed to those characteristics, without naming any group of countries; and the third was to frame responses to those trade-related problems, without naming any group of countries. He had informed the 25 January meeting that he had consulted and was satisfied that the CTD could not create a sub-category of WTO Members, even if Members wanted it to. However, he understood that the General Council could respond to characteristics, provided it treated all economies that fit those characteristics equally. The challenge was for Members to see if this approach, which focused on the characteristics without identifying any country, could help Members meet their mandate in time for the Sixth Session of the Ministerial Conference. 4 See Annex 1. 5 See Annex 2. 6 See Annex 3. WT/GC/M/92 Page 12

Members would revisit these issues the following week at the formal meeting of the Dedicated Session scheduled for 21 February.

56. The representative of Guatemala, also on behalf of Bolivia, Honduras, Nicaragua, Paraguay and the Dominican Republic, said that the Council's July 2004 Decision regarding the Doha Work Programme reaffirmed the commitment of Members to address, as part of the work programme and pursuant to the mandate in paragraph 35 of the Doha Ministerial Declaration, "the trade-related issues identified for the fuller integration of small, vulnerable economies into the multilateral trading system" without creating a sub-category of WTO Members. In accordance with that mandate, the objective was to frame responses to trade-related problems that had been identified, with a view to the fuller integration of small, vulnerable economies into the multilateral trading system. These countries wished to support fully the intensive work already done in this connection in the Dedicated Sessions of the Committee on Trade and Development under the direction of the Chairman of the CTD, aimed at forging ahead with the Work Programme on Small Economies and presenting concrete results to Ministers at the next Ministerial Conference in Hong Kong, China in December 2005.

57. The representatives of El Salvador, Cuba and Jamaica thanked the Chairman of the Dedicated Session for his report, for his tireless efforts to advance the Work Programme, and for the results achieved in the course of this important work.

58. The representative of El Salvador fully supported the statement by Guatemala, and fully supported continuing the work in the Work Programme on the basis of what the Chairman of the Dedicated Session had suggested.

59. The representative of Cuba said that the approach adopted by the Chairman of the Dedicated Session should enable Members to reach a satisfactory result in the light of the July 2004 package, and ensure success on this issue at the Hong Kong Ministerial Conference.

60. The representative of Jamaica said he wished to acknowledge, in particular, the creative – and at the same time practical – approach the Chairman of the Dedicated Session had outlined in addressing some of the difficult issues that had bedevilled the Work Programme so far. Like other issues of importance to developing countries, the Work Programme on Small Economies was well behind the original timeline set for meaningful progress to be accomplished, and thus needed an injection of momentum. Proposals had been tabled in the Dedicated Session, and Jamaica thanked the few Members who had responded positively and urged all Members to engage constructively in the time left to meet the timeframe set. It was very important to bear in mind also, as Members sought to arrive at so-called "first approximations" by July, that the framework agreed in July 2004 placed the trade-related issues of small and vulnerable economies in the context, as well, of the ongoing market access negotiations, and stated that these should be addressed. His delegation assured the Chairman of the Dedicated Session of Jamaica's continued support in seeking to achieve the fulfilment of the mandate set at Doha.

61. The representative of Fiji, also on behalf of Papua New Guinea and the Solomon Islands, associated these delegations with the status report by the Chairman of the Dedicated Session of the CTD. These countries called on the wider membership to support the characteristics approach as a way forward in the Work Programme, and remained committed to accomplishing credible results by the time of the next Ministerial Conference.

62. The General Council took note of the report by the Chairman of the Dedicated Session of the Committee on Trade and Development and of the statements. WT/GC/M/92 Page 13

7. Review of the Exemption provided under paragraph 3 of the GATT 1994 (WT/L/600)

63. The Chairman recalled that paragraph 3(a) of the GATT 1994 provided an exemption from Part II of GATT 1994 for measures under specific mandatory legislation – enacted by a Member before it became a contracting party to GATT 1947 – which prohibited the use, sale or lease of foreign-built or foreign-reconstructed vessels in commercial applications between points in national waters or waters of an exclusive economic zone. On 20 December 1994, the United States invoked the provisions of Paragraph 3(a) with respect to specific legislation that met the requirements of that paragraph. Paragraph 3(b) of the GATT 1994 called for a review of this exemption five years after the date of entry into force of the WTO Agreement, and thereafter every two years for as long as the exemption was in force, in order to examine whether the conditions which created the need for the exemption still prevailed. The General Council last considered this matter at its meeting in December 2003, at which it took note that under the two-yearly cycle provided for in paragraph 3(b) of GATT 1994, the next review would normally be held in 2005. For the purposes of the conduct of the review in 2005, he proposed that Members proceed in a manner similar to that in 2003. Accordingly, he would invite all interested delegations at the present meeting to speak for the record with regard to the review under the current cycle. He would also invite interested delegations to submit comments and questions to the United States regarding the operation of the legislation under the exemption, to which the United States would be invited to respond. These statements, questions and responses, together with the annual report provided by the US under Paragraph 3(c) of GATT 1994, would form the basis for the present year's review. For the purposes of the review, this matter would be on the agenda of subsequent General Council meetings in the course of 2005 as the Chairman deemed appropriate, or at the request of any Member.

64. The General Council would, furthermore, consider this matter again at its last meeting of the year. At that meeting, the Council would take note of the discussions held in the course of the review until then, and take any other action it might agree on. It would also take note that the subsequent review would normally be held in 2007. Regarding the exemption, he invited Members to note that, as provided in paragraph 3(e) of GATT 1994, the exemption was without prejudice to solutions concerning specific aspects of the legislation covered by this exemption negotiated in sectoral agreements or in other fora. He then drew attention to the annual report circulated by the United States in document WT/L/600.

65. The representative of the United States said that her delegation stood ready to participate in a review of the exemption under paragraph 3 of GATT 1994. This was the fourth review of that exemption. The United States had continued to provide Members with annual statistical reports pursuant to the requirements of paragraph 3(c) of GATT 1994, including the most recent one before Members at the present meeting. These reports provided detailed annual reporting of vessel orders and deliveries from US shipyards, as required by paragraph 3(c). Her delegation recognized that there were differing views on the nature of this review, and would again be willing to organize informal consultations in which interested delegations would be free to ask questions and discuss issues without prejudice to their national positions. The United States would also continue to do its utmost to respond to questions put to it on a more formal basis.

66. The representative of Japan said his delegation wished to place emphasis on this review of the exemption provided under paragraph 3 of GATT 1994. During the previous review of the exemption, Japan had pointed out that the United States had included in its data non-commercial vessels which were not the object of the exemption. Japan recognized that in the latest data provided by the United States, the annual statistical notification dated 4 February 2005 (WT/L/600), non-commercial vessels were largely excluded, and the data reflected the actual situation of shipbuilding in the United States for the purposes of this review, to some extent. It was necessary to study closely the aforementioned data, as well as other considerations, so as to examine whether or not the conditions which had created the need for the exemption – which was a deviation from the basic principles of the WTO – still WT/GC/M/92 Page 14 prevailed. With this in mind, Japan hoped that the review during this cycle would be pursued in an effective way, and wished to participate in a positive manner.

67. The representative of Norway said this was an important issue for Norway, as the exemption in essence made it impossible to sell ships to the United States. Thus, Norway had participated, and intended to continue to participate, actively in the review of this exemption. The review should focus on the salient point of paragraph 3(b), which was the examination of whether the conditions which created the need for the exemption still prevailed. Members needed to move beyond discussing only the statistical information submitted by the United States under paragraph 3(c), and to address also the conditions for the exemption. Norway was still in the process of reviewing the recent statistical document provided by the United States. and therefore reserved its right to present questions on this document at a later stage. However, Norway wished to note that in previous years, a number of questions had been posed by Members to the United States, concerning both previous notifications and the effects of the legislation, and the answers to these questions had not been satisfactory, in particular regarding the continued need for this exemption. Regarding the next practical steps in this process, Norway was willing to accept the offer of the United States to have dedicated consultations on this matter, and looked forward to an early date for such consultations. At the same time, his delegation reserved its right to revert to this matter in the General Council.

68. The representative of Australia said he had listened carefully to the Chairman's comments on the process the latter had in mind for the conduct of the present year's review, and could broadly agree with the Chairman's proposal. However, he was saying this with a degree of apprehension and caution. Australia attached the utmost importance to this review process. It appeared that Members were about to embark on a process that looked similar to the most recent review in 2003 – a process that had not lived up to the expectations placed in it. His delegation wished to see an improved, more substantive process in 2005, aimed at getting to the key systemic and commercial questions that were central to Australia's interests. As his delegation had said many times on earlier occasions, this exemption was a significant derogation granted to the United States, and the least Members could expect in return was a rigorous process of review, one that hopefully would avoid some of the sterile exchanges of the past. His delegation noted the United States' offer of informal consultations, but would want to build on this and on the level of engagement evident in 2003, if Members were going to have an effective review process in 2005. The prime driver for Australia was its very strong commercial interests in accessing the US export market in the maritime area. The Jones Act effectively constrained this, including in areas of prime interest to Australia, such as cruise vessels and fast ferries. Australia believed that significant opportunities would otherwise exist for its exporters, were it not for this exemption. His delegation therefore looked forward to a thorough review process in 2005, one in which there would be full engagement from all sides to make a proper assessment of whether the circumstances warranting the exemption under paragraph 3 of GATT 1994 really did continue to exist.

69. The representative of the European Communities associated his delegation with the statements by Japan, Norway and Australia. The Community intended to participate actively in the review exercise and would submit questions to the United States in due course.

70. The representative of Chile associated his delegation with the statements by Japan, Norway and Australia. Chile had a commercial and systemic interest in this issue, which had to be seen also in the light of the current negotiations on trade in services, where Chile sought specific commitments for liberalized trade and investment in services.

71. The representative of Korea said his delegation did not currently have any questions on the communication from the US, but wished to continue to participate in the review process and in subsequent informal consultations. WT/GC/M/92 Page 15

72. The General Council took note of the statements.

8. Non-recognition of rights under Article XXIV:6 and Article XXVIII of GATT 1994 – Communication from Honduras and Guatemala (WT/GC/85) – Statement by the Chairman

73. The Chairman recalled that this matter had been raised by Honduras and Guatemala at the Council meeting in December 2004, in pursuance of the Procedures for Negotiations under Article XXVIII adopted by the GATT Committee on Tariff Concessions on 10 November 1980. In the light of the views expressed at that meeting and the requests for consultations made by Honduras and Guatemala, he had proposed that he reflect on how best to proceed on this matter and on possible ways forward in consultation with delegations, and that the General Council revert to his matter at its next meeting, as appropriate. He informed delegations that on 2 February, he had held consultations to provide an opportunity for the Members concerned to seek clarifications, to the extent possible, and to see if he, as Chair, could facilitate a satisfactory resolution to the concerns raised at the December 2004 Council meeting. He had invited to these consultations all delegations who had spoken at the December Council, and had made clear that the consultations were without prejudice to any Member's rights under the WTO.

74. It was clear from the consultations that this matter involved both politically sensitive issues involving major trading interests that were being affected, as well as substantive legal issues where the parties concerned continued to have strong differences with regard to market shares and the resulting rights accruing under WTO provisions. It was also clear that there were several distinct and ongoing WTO processes relating to this matter, that each particular process needed to be given due consideration, and also that avenues beyond purely legal accommodation could be explored in this context. At the same time, the consultations he had been requested to hold had been focused only on the question of negotiating rights accruing under Articles XXIV and XXVIII of GATT 1994. The consultations had produced a frank, and very useful, interactive exchange that had helped to clarify further the concerns raised at the December Council meeting, as well as the basis for the positions taken by the delegations concerned. Honduras and Guatemala had also renewed their calls for the Community to examine the communications they had sent it in support of their case, and both sides had expressed a readiness to explore the issues further in bilateral consultations. Although the consultations had not produced any conclusive way forward, he had exhorted all Members present to continue to reflect on how one might move this matter forward.

75. The representatives of Honduras, Guatemala, the Philippines, Uruguay, Colombia, Costa Rica, Panama and the European Communities thanked the Chairman for the consultations he had held on this matter.

76. The representatives of Honduras, Guatemala, Ecuador, Uruguay, Costa Rica, and Panama requested that this item be maintained on the Council's agenda to enable a solution to be found to this issue.

77. The representative of Honduras thanked the Chairman for his report to the Council further to Honduras's request concerning the non-recognition of rights under Article XXIV:6 and Article XXVIII of the GATT 1994 and on the basis of the 1980 Procedures for Negotiations under Article XXVIII (BISD 27S/26), proposed as guidelines by the Committee on Tariff Concessions. He wished to inform all Members that at the meeting convened by the Chairman on 2 February, in which all delegations interested in addressing this issue had taken part, Honduras had stated that the EC had still not contacted it to discuss the request Honduras had made at the December meeting of the General Council. Subsequent to the consultation meeting and taking into account the new elements arising within this process, as notified by the EC in document G/SECRET/22/Add.1, Honduras had sent the EC a further communication dated 7 February, aimed at reserving rights and seeking WT/GC/M/92 Page 16 clarification, as it had done in the past. In that communication, Honduras had pointed out that two months had elapsed since the most recent Council meeting, without the EC contacting his delegation. Honduras had also stated that during that period, the EC had sent the Secretariat a communication dated 31 January 2005 (G/SECRET/22/Add.1) notifying its proposal for a duty of 230€/t, seemingly with the aim of initiating the process established in the Annex to the Waiver Decision adopted at the Doha Ministerial Conference of 14 November 2001.7 In this connection, he wished to point out that it was common knowledge that this Annex was designed to ensure that consideration was given to Article XXVIII procedures before commencing the consultations and arbitration proceedings, and that for Honduras, one of the basic prerequisites for initiating Article XXVIII procedures was appropriate recognition of the claim of substantial interest, which had not yet occurred. His delegation insisted that Honduras's claim of substantial interest be recognized and that consultations under Article XXVIII be held before the process of implementing the Annex advanced any further.

78. Honduras wished to place on record that at no time had it opposed compliance with the terms of the Annex. On the other hand, it could not accept that the EC should disregard the requirements laid down in the GATT 1994 and in that Annex. Honduras based this assertion on the 1980 Procedures for Negotiations under Article XXVIII and the Annex to the Decision of 14 November 2001, that is: (i) Paragraph 4 of the Procedures allowed Honduras to refer to the General Council the claim which the EC had failed to recognize – i.e. non-recognition of the right of substantial interest, it being understood that, for Honduras, the negotiations had not even begun. (ii) Paragraph 5 established that the parties should send to the Secretariat a joint letter to report on the outcome of each bilateral negotiation, along the lines of the models established in the Procedures; this requirement had not been fulfilled to date. (iii) The Annex to the Waiver Decision adopted at Doha provided that Article XXVIII negotiations were to be concluded prior to the commencement of the procedure initiated by the EC in G/SECRET/22/Add.1.

79. This reasoning was based on the obligations undertaken by the EC, and at the present meeting Honduras again had to insist on recognition of its claim of interest, so as to achieve full compliance with what was agreed in Doha. Lastly, he wished to inform Members that, further to its communication of 7 February, Honduras had had a meeting with EC officials the previous week to discuss this issue. However, Honduras had not obtained the outcome it had been seeking. Honduras's interest regarding this issue was very clear and manifest, to the extent that Honduras had referred the matter concerning the EC to a WTO panel. The Panel had ruled in favour of Honduras, but eight long years had passed since then – from 25 September 1997 to date – and Honduras was still waiting for its rights to be restored. Notwithstanding the above, a GATT panel had found that Honduras, Ecuador, Costa Rica, Colombia and Panama had been substantial MFN suppliers of bananas to the EC market prior to the discriminatory regime introduced in 1993 ("EEC-Import Regime for Bananas", DS38/R, para. 10). A WTO panel had later found that those same countries, again including Honduras, had been substantial MFN suppliers of bananas to the EC in 1994 ("EC – Bananas", WT/DS27/R, para. 3.3). A small country such as Honduras, which believed in the multilateral trading system and had made major concessions as a result of the launching of the Doha Round, considered it necessary to seek solutions to the problem of non-recognition of rights. His delegation therefore asked the Council, first and foremost, to monitor developments regarding its request by keeping the item on its agenda and by pursuing the consultation process.

80. The representative of Guatemala thanked the Chairman for his report on an issue of the utmost importance to his delegation. Guatemala shared the concerns expressed by Honduras. Unfortunately, to date, his delegation had not been formally contacted by the EC, and the situation remained unchanged. Guatemala had to insist that its rights under Articles XXIV and XXVIII of the GATT be recognized by the EC. As his delegation had said on earlier occasions, both orally and in writing to the EC, and also in the General Council, this issue was of interest to Guatemala, not only

7 WT/L/436 (also circulated as a Ministerial Conference document as WT/MIN(01)/15). WT/GC/M/92 Page 17 from a trade standpoint, but also from a systemic point of view since, to date, the EC had not carried out this process in an inclusive or transparent manner. For a small economy, such as Guatemala, keeping this item on the Council's agenda was one of the few mechanisms available for the enforcement of its rights, and for this reason, it was vital to keep the item on the Agenda until its rights were duly respected. He reiterated his country's desire to participate in a constructive dialogue with the Community and to participate in any kind of consultations the Chairman undertook in the future.

81. The representative of Brazil said that, as his delegation had stated at the December meeting of the Council, it supported the request by Honduras and Guatemala. The legal provisions involved had to be read in the light of their objective, and – as had been clearly stated in the Understanding on the Interpretation of Article XXVIII of the GATT 1994 – one of the objectives was to secure a redistribution of negotiating rights in favour of small and medium-sized exporting Members. Another important issue which had been raised by Honduras and Guatemala was that their substantial interests had to be examined in light of the market situation that would have existed if the EC had not had in place for such a long time a discriminatory regime. However, in addition, Brazil had also said it did not believe this was something that lent itself exclusively to a legalistic approach. There was a political context, which was the commitment in the Doha Declaration on small economies. The issue before Members was whether they wished merely to prove general principles that would continue to allow leeway for the largest trading partners to allocate benefits, or whether they were committed to a problem-oriented approach that would really take into consideration the needs of small economies.

82. The representative of Ecuador said that the arguments by both Honduras and Guatemala were important elements, not only from a legal, but also a systemic, point of view. It was important that the Community respond to the interests of these countries, and Ecuador therefore supported keeping this item on the Council's agenda and finding a solution.

83. The representative of the Philippines said that the consultations on this issue had been an important opportunity for the concerned delegations to clarify their respective positions in a more focused environment. As his delegation had said during the consultations, further discussions among the interested parties might be appropriate and should be encouraged, in order to arrive at a mutually satisfactory resolution of the concerns expressed, taking into account the spirit and intent of the WTO Agreement to maintain a balance of commitments. Regarding the specific interests of the Philippines, he wished to reiterate and incorporate by reference the points raised by his delegation at the 20 October and 13 December meetings of the General Council regarding its concerns and reservations about the process undertaken by the Community in relation to the EU enlargement. His delegation trusted that the minutes of these two meetings accurately reflected the points raised by the Philippines and the rights reserved by his Government.

84. The representative of Uruguay reaffirmed, as his delegation had done on previous occasions, its support for the clear position outlined by Honduras and Guatemala on an issue which referred to the rights of these two Members, and which also affected the proper systemic functioning of the organization and involved products that were of tremendous importance to the economies of these two countries. Uruguay hoped that recognition of the rights of these two countries would be rapidly ensured.

85. The representative of Colombia said that, as on an earlier occasion, his delegation reaffirmed that the request by Honduras and Guatemala was a legal issue that was covered by provisions of the GATT 1994, Article XXIV:6, Article XXVIII and the interpretative notes thereto, and the 1980 Guidelines.

86. The representative of Costa Rica supported the requests by Guatemala and Honduras for the recognition of their rights, as set out by these delegations to the EC regarding the negotiations under WT/GC/M/92 Page 18

Article XXVIII. Costa Rica also supported the points these delegations had made at the December Council meeting, and again at the present meeting. His delegation also wished to thank the Chairman for the interest the latter had taken in this matter. It was essential that the rights of Honduras and Guatemala be recognized in order to maintain a balance in the negotiations.

87. The representative of Panama supported the requests by Honduras and Guatemala on this important issue.

88. The representative of European Communities thanked Honduras, Guatemala and other delegations for their statements at the present meeting. As already stated at the December 2004 Council meeting on this same agenda item, the Community attached great importance to abiding by the WTO agreements, and thus ensuring that Members were able to meet their obligations and exercise their rights. He reiterated that, in recognizing and rejecting claims, the Community had based itself on WTO law and well- established practice. The EC would not change or add to the rules of the WTO, nor did it intend to change the methodology for establishing and according supplying rights. Moreover, supplying rights under Articles XXVIII and XXIV:6 of the GATT depended on the particular situation of each individual Member, and were therefore inherently an issue between the Member modifying its Schedule and the Member claiming rights. The Community was always ready to meet bilaterally with Members to explain its position on their claims. Accordingly, it had discussed bilaterally with Honduras and with Guatemala the past week, in particular with respect to their claims for supplying rights for bananas, and hoped it had clarified the issue. Should Guatemala and Honduras still continue to have specific concerns – which had become apparent at the present meeting – the Community stood ready to continue the dialogue with them.

89. He wished to refer to one further important and pertinent development since the Council meeting in December. On 31 January 2005, the Community had transmitted to the WTO a notification concerning the modification of its concessions regarding bananas by announcing the new proposed tariff. This notification had been circulated to all Members on 1 February. The notification constituted the announcement under the second indent of the Annex to the Decision of the Doha Ministerial Conference of 14 November 2001 concerning the ACP-EC Partnership Agreement. Within a specified period of time from the notification, any interested party, as defined in the Annex, could request arbitration. The EC also considered that this notification satisfied the requirement of the second indent to this Annex, as it provided information on the methodology used for the rebinding of the EC tariff on bananas. The Decision also provided for the parties to the Cotonou Agreement to consult with Members exporting to the EU on an MFN basis. Accordingly, subject to finalizing the practical details, he wished to take this opportunity to announce that the EC and the ACP countries would hold such consultations hopefully in the course of the following week. The Community would issue a communication very soon via the WTO to confirm this. The Community continued to remain fully committed to finding a mutually satisfactory outcome for all parties involved in the Article XXVIII negotiations on bananas and to its obligations, notably as regards the entry into force of the new EC tariff-only regime on 1 January 2006.

90. The representative of Guatemala said he wished to make a clarification. As the Community had just said, on 11 February, Guatemala and the Community had held a bilateral meeting. However, the purpose of that meeting had been exclusively for the Community to inform Guatemala as to the methodology used for the rebinding of the banana tariff. At the beginning and throughout the meeting, Guatemala had clearly stated that the meeting was without prejudice to the rights it was invoking under Articles XXIV and XXVIII of the GATT. The Community had agreed to this, and had also accepted that the meeting would be held on the conditions Guatemala had outlined. So far, no meeting with the Community had been held to discuss the present item on the agenda. The bilateral meeting had been held to deal with a totally different issue. As his delegation had said on previous occasions, Guatemala's interest was not limited to just bananas, but included other products, such as honey, macadamia, nuts and coffee. WT/GC/M/92 Page 19

91. The representative of Honduras said that his delegation had noted the statement by the Community. Once again, however, he wished to request, as his delegation had done at the previous General Council meeting, that Members clearly establish the basis or the rights involved, on which the Community was going to speak to Honduras in the future. Honduras also invited the Community to look again at the results of the panels which had given Honduras the rights of a substantial supplier, and to comply fully with the provisions of paragraph 7 of the Understanding on the Interpretation of Article XXVIII, before starting a discussion of document G/SECRET/22.

92. The representative of the European Communities said it was obvious from the present discussion, as it had been previously, that there was a difference of view between the Community and Honduras and Guatemala, as far as the recognition of supplying rights was concerned. However, as he had said on previous occasions, and had stated earlier at the present meeting, his delegation was totally open to any informal consultations with both of these countries and with any other country.

93. The representative of Jamaica welcomed the statement by the Community regarding consultations the following week, in which the Community and the ACP would participate. Jamaica looked forward to those consultations, and had a clear interest in the level of tariffs on bananas.

94. The representative of Honduras asked all Members to reflect on what rights a small country like Honduras had if the multilateral system was on its side but one of the major trading partners did not respect or apply its rights. It was important to look at this matter from this point of view, particularly since Members were involved in negotiations under the Doha Development Round.

95. The Chairman proposed, in view of the statements, that he request his successor as Council Chair to take this matter up in consultations with delegations on an informal basis before the next meeting of the General Council, in order to find the best way forward, and that the General Council revert to this matter at its next meeting.

96. The General Council took note of the statements and so agreed.

9. Procedure for the introduction of HS 2002 changes to schedules of tariff concessions using the Consolidated Tariff Schedules (CTS) Database – Draft decision (G/MA/W/65/Rev.2)

97. The Chairman drew attention to the draft decision in document G/MA/W/65/Rev.2 regarding a procedure for the introduction of HS 2002 changes to schedules of tariff concessions using the Consolidated Tariff Schedules Database. This draft text had been the subject of long discussions in the Committee on Market Access, and had been approved by that Committee in December 2004. He proposed that the General Council adopt the draft decision in G/MA/W/65/Rev.2.

98. The General Council so agreed.8

10. Appointment of officers to WTO bodies

99. The Chairman said that in accordance with the Guidelines for Appointment of Officers to WTO Bodies approved by the General Council in December 2002 (WT/L/510), he and his colleague, Mrs. Amina Mohamed (Kenya), the serving Chair of the Dispute Settlement Body, had conducted consultations with delegations on a slate of names for the appointment of Chairs to the bodies listed in Groups 1, 2, 4 and 5 in the Annex to the Guidelines. As he had announced at the December 2004 General Council meeting, since the three working groups on the Singapore issues were inactive at the present time, they had not consulted regarding their chairpersons. They had consulted delegations both individually and in groups, including through group coordinators. These consultations had 8 The Decision was subsequently circulated in document WT/L/605. WT/GC/M/92 Page 20 included an informal open-ended Heads-of-Delegation meeting on 10 February. On the basis of these consultations, he was pleased to be able to inform delegations that there was a consensus on the following slate of names:

General Council H.E. Ms. Amina Chawahir MOHAMED (Kenya)

Dispute Settlement Body H.E. Mr. Eirik GLENNE (Norway)

Trade Policy Review Body H.E. Mr. Don STEPHENSON (Canada)

Council for Trade in Goods H.E. Mr. Vesa Tapani HIMANEN (Finland)

Council for Trade in Services H.E. Ms. Claudia URIBE (Colombia)

Council for TRIPS H.E. Mr. CHOI Hyuck (Korea)

Committee on Trade and H.E. Mr. Shree Baboo Chekitan SERVANSING Environment (Mauritius)

Committee on Trade and H.E. Mr. Gomi THARAKA SENADHIRA Development (Sri Lanka)

Committee on Balance-of- Mr. Víctor ECHEVARRÍA UGARTE Payments Restrictions (Spain)

Committee on Regional Trade H.E. Mr. Ronald SABORÍO SOTO Agreements (Costa Rica)

Committee on Budget, Finance Mr. Jan-Meinte POSTMA and Administration (Netherlands)

Working Group on Trade and H.E. Mr. Manuel Antonio J. TEEHANKEE Transfer of Technology (Philippines)

Working Group on Trade, Debt and H.E. Mr. Kweronda-Ruhemba Finance (Uganda)

100. These appointments would be made formally by the WTO bodies concerned at their subsequent meetings during 2005.

101. The General Council took note of the statement and of the consensus on the slate of names for the appointment of officers. WT/GC/M/92 Page 21

102. The Chairman, on behalf of the General Council, expressed sincere appreciation to the outgoing Chairpersons of all WTO bodies for their very dedicated work in chairing these bodies during the past year, particularly given the heavy work load all had faced in the lead-up to the adoption of the July package by the General Council. Before concluding on this item, he recalled that, in accordance with Paragraph 7.3 of the Guidelines for Appointment of Officers to WTO Bodies, the outgoing Chairpersons of the Council for Trade in Goods and the Council for Trade in Services would normally conduct consultations to select Chairpersons for the bodies established under the respective authority of the Councils that they chaired. Paragraph 7.3 of the Guidelines also provided that these Chairs should announce the start of their respective consultation processes at the February General Council, and work in close coordination in order to ensure the efficiency of the process and the balance mentioned in Paragraph 3.3 of the Guidelines.

103. Mr. Brño (Hungary), Chairman of the Council for Trade in Services, said that in accordance with the Guidelines referred to by the Chairman, he would start the consultation process for the appointment of chairpersons to the four subsidiary bodies under the Council for Trade in Services. This process would aim at reaching agreement on a balanced slate of names to be proposed at the next meting of the Council for Trade in Services, which was scheduled for 23 February. For this purpose, he would undertake consultations in coordination with the Chairman of the Goods Council, and would make sufficient time available to meet with any interested Members. Pursuant to the Rules of Procedure of the Council for Trade in Services (S/L/15), which had also been adopted by its subsidiary bodies, the election of the new chairpersons of the subsidiary bodies should take place at the first meeting of the year and should take effect at the end of that meeting. Given the fact that for the present year, the first meeting of the subsidiary bodies to the Services Council had taken place during the week of 7 February and thus prior to the present meeting, the election of the new chairpersons of the subsidiary bodies would have to take place at the beginning of their next meeting.

104. The Chairman, in the absence the Chairman of the Goods Council, and on the latter's behalf and request, said that the Goods Council Chair would also be starting consultations for the appointment of chairpersons to the bodies established under that Council. He would be carrying out this process with a view to proposing and agreeing a balanced slate of names at the next CTG meeting, scheduled for 11 March. He would make sufficient time available to meet with any interested Members and to hear their views and suggestions, and would be sending a fax to all Heads of Delegations the following day, indicating his availability for this purpose. Following that, he would conduct further consultations as necessary. In order to ensure the efficiency of the process and the balance mentioned in the Guidelines, he would be working in close coordination with the Chairman of the Services Council.

105. The General Council took note of the statements.

11. Rules of Origin – Harmonization Work Programme – Statement by the Chairman

106. The Chairman, speaking under "Other Business", recalled that the Harmonization Work Programme for non-preferential rules of origin had been launched in July 1995 in the Committee on Rules of Origin (CRO), and that, due to the sheer number and complexity of the technical issues involved, Members had been unable to conclude this work, even though the deadline for its completion had been extended several times. As Members were aware, since July 2002, when the CRO had forwarded 94 core policy issues to the General Council for discussion and decision, this matter had been taken up at the General Council level. The substantive work had, since then, been pursued in informal consultations conducted by the Chairperson of the CRO, at the request and on behalf of the Chair of the General Council. As Members also knew, a further deadline of July 2005 for completion of this work was looming. WT/GC/M/92 Page 22

107. The Chairperson of the CRO had recently reported to him that since 2004, a number of small- group and open-ended consultations had been held, and continuous progress had been made on many product-specific rules of origin. However, differing views on the "implications issue" remained a major stumbling-block to the progress of the Harmonization Work Programme. On the basis of the report and advice he had received from the Chair of the CRO – following consultations with Members of her Committee – he believed that, to move this work forward, this matter should be taken up in consultations by the Chairpersons of the Committees relating to trade remedy measures, rather than in the origin context. This change of work environment might provide a new opportunity in which experts on trade remedy measures, based on their own experience and expertise, could negotiate this matter in a more focused manner. With this in mind, he informed Members that he proposed to take the following steps as a purely practical means to advance work on the Harmonization Work Programme, in view of the tight deadline Members were facing:

First, he would request the Chairpersons of the Committees on Anti-Dumping Practices, on Subsidies and Countervailing Measures and on Safeguards to take up the implications issue in consultations on his behalf with Members in their Committees as soon as possible, with a view to addressing the following questions, keeping in mind the July 2005 deadline for completing negotiations on the 94 core policy issues agreed by the General Council in July 2004:

(i) whether the harmonized rules of origin should be applied to the Agreements on Implementation of Article VI of the GATT 1994, on Subsidies and Countervailing Measures or on Safeguards; and

(ii) whether the harmonized rules of origin should be applied to the problem of circumvention of trade remedy measures.

Second, he would request the Chairpersons of these Committees to report on the outcome of their consultations to the Chair of the General Council before July 2005.

Third, he would request the Chairperson of the Committee on Rules of Origin to continue consultations on the 94 core policy issues on his behalf.

The Council Chair would, of course, keep Members advised of developments in this ongoing work, and delegations would have an opportunity to hear a full report on the progress of the Harmonization Work Programme as a whole at the July Council meeting.

108. The General Council took note of the statement.

12. Accession of Viet Nam – Chairmanship of the Working Party - Announcement by the Chairman

109. The Chairman, speaking under "Other Business", informed Members that, following informal consultations among the respective Working Party members and the authorities of Viet Nam, and in accordance with usual WTO practice, it had been agreed that Amb. Eirik Glenne (Norway) would replace the outgoing Chair, Amb. Seung Ho (Korea). On behalf of the General Council, he thanked Amb. Seung Ho for his long service in Chairing this Accession Working Party since its establishment, and for the dedication he had continued to show to this task following his departure from Geneva in 1997. Particularly noteworthy was that throughout these years, despite distances and other engagements, Amb. Seung Ho had made himself constantly available for the negotiations in Geneva and, where necessary, to advance Viet Nam's cause in capitals.

110. The General Council took note of this information. WT/GC/M/92 Page 23

13. Election of Chairperson

111. The Chairman, as the outgoing presiding officer of the General Council, said he wished to express four thank yous and make one small comment. First and foremost, he wished to thank all representatives, and through them, their governments, for allowing him the honour to serve them as General Council Chair, and for supporting him throughout the past 12 months in his activities. Whatever the General Council had achieved throughout the past year, the credit was due them, since this was a Member-driven organization. Chairs, as someone had once said, were at best midwives. If the General Council had been the mother and the July package the child, Chairs, including himself, had been midwives, and all representatives could collectively or individually claim paternity – and could prove it by DNA analysis, as he was sure the package would have part of their DNA in it.

112. Second, he wished to thank the Director-General and the Secretariat. He wished to thank Dr. Supachai very much for supporting him throughout the year. Dr. Supachai had done an excellent job as Director-General leading Members through these past months, and had been instrumental as a lynchpin between the Geneva process and the capital-based political masters, through his travels and his direct phone calls, which had always brought the political masters and the Geneva process closer together and made them more integrated, which was, of course, the basis for Members' achievements so far. He also wished to thank the members of the Secretariat – the DDGs, Directors, interpreters, officers, secretaries, security staff, translators and everyone else, who were a wonderful group of people. As he had said at the end of July, he had never seen such a dedicated public service. However, his special thanks went to the Director of the Council and TNC Division, and all the members of that team, who had had the misfortune of serving him twice – first as DSB Chair and then as Council Chair.

113. Third, he wished to thank the Japanese Mission and Government – the Government for allowing him to do what he thought was necessary to carry out his duties as Chair, and his team at the mission, under Mr. Kitera, who had done a great job representing Japan while he himself had not been able to do that. Since he worked on UN matters as well, he wished to thank all the members of the Japanese mission, who had done very well. In fact, they had done so well that Tokyo realized that the permanent mission could function just as well, if not better, without him at the helm, and had decided to recall him. There had to be some message in this to all those who aspired to become Chairs. Fourth, he wished to thank his friend and colleague, Ambassador Katsuhiko Oku, who had been killed on his way to Tikrit from Bagdad while serving in Iraq over a year earlier. He had mentioned the latter on assuming the Council chairmanship. Ambassador Oku had always been a good friend, had always encouraged him when they were working together, and had been his source of inspiration for public service. He once again wished to thank him for his spiritual encouragement when he had had some difficult moments and had sought his moral support. He wished to dedicate whatever he had done in the past year to him.

114. Finally, he said that one of the issues that was much discussed was development. The previous day, in the TNC meeting, many had voiced their views on this subject. While its importance was not disputed, he was concerned by the way some addressed this issue by juxtaposing trade against development. He did not believe that there was any dichotomy between trade and development. He believed that trade was development. It was very important that Members of this organization shared this basic notion that trade was development. He was saying this as someone who represented a country that had based its basic policy on this notion and on its conviction and commitment to the multilateral trading system and the WTO, and to the GATT which had preceded it. Thus, he had been very pleased to have been able to serve this organization, albeit in a very small way, because personally he was a free trader. He had come to the end of his tenure, and this was his last day as Chair. It also happened to be his last month as Ambassador to the WTO, and could be his last year as a trade negotiator for Japan. As someone had once said, "old trade negotiators never die, they just WT/GC/M/92 Page 24 fade away". However, the rules-based multilateral trading system was forever. It was eternal, and long live the WTO.

115. The General Council then unanimously elected Ms. Amina Mohamed (Kenya) to the Chair.

116. The Director-General said he wished to put on record on behalf of the Secretariat and the Members his deepest gratitude for the outgoing Chair's very significant contribution as Chairman of the General Council. His hard work and commitment to the WTO had been impressive and would be remembered by all. The outgoing Chair had injected into this position characteristics that were much needed and valued: tact, diplomacy, patience and firmness. He wished to pay respect to those qualities. During his Chairmanship, many things had been achieved, not the least the July package. It had been to a large extent thanks to the outgoing Chair's unwavering commitment that Members had been able to use Cancún as a turning point in the negotiations and move forward to where they were now. He also wished to highlight that in all deliberations, the outgoing Chair had always emphasized the need to be as inclusive and transparent as possible. He was sure that all delegations had appreciated this.

117. He hoped that the outgoing Chair would remember how they had worked together, in the pursuit of their common values and objectives, and that this very cooperative relationship had set a model for the relationship between the Chairman of the General Council and the Director-General. He had appreciated this enormously. On behalf of himself and the WTO Secretariat, he wished to say that it had been a great personal pleasure to have worked with the outgoing Chair, and to wish him all success and happiness in future. With these words, he wished to present him with the gavel, which the latter had used so well.

118. The newly-elected Chairman expressed her personal appreciation to the Members for the honour to Africa, to Kenya and to herself in electing her Chair of the General Council. 9 She felt especially humbled to be the first woman to Chair the Council, and was grateful for this privilege. She wished to make a few remarks about issues before the Council, Members' work together, and the year ahead, and said that this was probably the only speech she would make in the Council. However, the starting point was the debt of gratitude owed the outgoing Chair by the General Council for his stellar leadership. Since the launch of the DDA, 2004 had been a critical year, perhaps more than any other year. Members had been close to the loss of the Doha Round. The General Council, under the quiet but solid technical leadership of the outgoing Chair, had risen to the challenge to ensure that the DDA was not abandoned either because of Members' frustration with the speed of progress, or due to entrenched positions before the July package. The outgoing Chair had now joined the pantheon of an illustrious list of General Council Chairs who, when confronted with the challenge, had risen to the occasion, had persevered and had produced concrete results and progress in the work of the Council. On behalf of the Council she wished to convey Members' gratitude to him.

119. The organization would be challenged in the coming year. Difficult decisions would have to be made, and all knew it. Members could not afford distractions, paralysis, drift or controversy. Neither could they allow themselves to be stymied by perceived irreconcilable differences. They were at an historic juncture. 1999 had been a similarly tough year. She believed that together, with the necessary goodwill and resolve, Members would be able to respond to the challenges they would face, and to the problems they had to solve. She was ready to play her part and exercise the leadership necessary on Members' behalf, in the hard and painful decisions that needed to be taken in 2005. However, progress and success could only be achieved collectively, and in several areas, Members would have to bite the bullet. They were faced with three major challenges in 2005: first, the organization and preparation of the Sixth Ministerial Conference in Hong Kong, China, in December; second, to make substantive progress in agriculture, non-agricultural market access,

9 The full text of the Chair's statement was subsequently circulated as document WT/GC/88. WT/GC/M/92 Page 25 services, rules and development issues before the summer break; and third, in the shortest possible time, to elect a new Director-General from the four excellent candidates.

120. However, beyond these immediate tasks there were the legitimate expectations that the WTO had to show from the results of its work – and not merely from a statement of its rules, goals, objectives and agenda – that it could continue to raise the level of its contributions to the over-arching goals of international cooperation, to achieve the Millennium Development Goals, particularly for poverty reduction. Much had been achieved and much accomplished in the multilateral trading system, but as all knew, much more remained to be done. The inescapable dilemma for the WTO was that because it was a result-oriented organization with outcomes directly affecting various spheres of national economic life, the organization was and would be judged by real outcomes on a success and failure yardstick. It was difficult to escape this dilemma. However, perhaps the absence of dullness and the lack of respite for the WTO was not such a bad thing after all. She recalled one of her favourite poets, Alfred Lord Tennyson, who in his poem "Ulysses" wrote, "How dull it is to pause, to make an end, to rust unburnished, not to shine in use as tho’ to breathe were life. Life piled on life were all too little, ….". He had gone on to write, "Tho’ much is taken much abides".

121. As an organization, Members were challenged, and in responding to those challenges they needed to set clear, achievable priorities and provide the collective leadership to achieve them. The cardinal priority was to intensify their work and accelerate their efforts on the DDA negotiations, with a view to completing the negotiations as early as possible. At the same time, within the DDA negotiations Members needed to acknowledge that there were areas of urgency which themselves were linked to broader global priorities. Liberalization in agriculture, NAMA, services and trade facilitation were vital and indispensable. They were linked to broader national and global objectives of growth, poverty reduction and development. The Marrakech Agreement clearly recognized, and the Doha Declaration reaffirmed, the role of multilateral trade in the growth of economies. Being from a developing country herself, she recognized the importance and potential of free trade in achieving economic growth and reducing poverty. This made the WTO's role both central and pivotal. Within the framework of the rules and disciplines of the organization, and having regard to the necessity for significant improvements in market access, Members needed to respond better to the needs of the weakest, the poorest and the most vulnerable among the membership. If they did not, questions would remain about the development meaningfulness and relevance of the organization. The G8, the recent World Economic Forum, and other international fora had identified Africa as a priority.

122. Members needed too to think more clearly and more creatively about the organization's contribution to poverty reduction in Africa, and to join and contribute to these efforts more significantly. The WTO was and had to remain part of the broader international agenda. A lot of its efforts would turn on progress in the agriculture negotiations, within which cotton and other agricultural commodity sectors were being treated, and which had huge potential development dividends for Africa and LDCs. What Members already knew, and what sometimes needed reaffirmation, was that systemic responses to the development and the trade aspects of the Sectoral Initiative on Cotton – and, more broadly, to the improvement of trade and development opportunities for commodities – were key tests of the development responsiveness of the WTO, as seen by Africa and the LDCs.

123. In focusing on the priorities of the DDA negotiations, Members needed to keep their eyes on the wider objectives of international cooperation and coherence among the principal economic institutions for growth, poverty reduction, development and environmental protection. These were the key objectives for the current generation, but they could not be simply stated as objectives. The results of Members' work and the output of this organization needed to be more directly related to specific outcomes. The WTO, World Bank and IMF had key roles to play. Without improved coordination and coherence among these organizations, progress would be severely lacking in issues on the global agenda. No Member could go it alone. There was no greater challenge in the world WT/GC/M/92 Page 26 today than poverty reduction, because, among other reasons, poverty reduction would contribute to democratization and to the fight against terrorism, and would give hope, reducing the desperation, hopelessness and misery, which sometimes – but not in all instances – drove individuals and fringe groups to hatred, violence and flagrant abuses of human rights. Growth from trade liberalization would also contribute significantly to the fight against HIV/AIDS and diseases such as malaria, TB, polio and others. It had to be a priority that individual countries be encouraged to commit themselves to making better use of multilateral institutions. That is why the latter had been created. However, there was also a responsibility for sustained and effective leadership by the heads of multilateral institutions, and a need for them to combine the small picture with the larger global picture. Strengthening multilateralism was a key priority. Institutions needed to link their individual mandates to the broader global mandate.

124. The non-discriminatory rules-based multilateral trading system had made vital contributions in the past half century. The WTO worked and was effective, but Members had to strengthen and improve it. She wished to express her gratitude to the Director-General for establishing the group of wise men who had produced a report on how the organization could be strengthened. Their report merited careful study. Members had already given their initial reaction. Collectively, they needed to pursue this dialogue and seek results, where possible, to strengthen the organization, particularly in respect of the Secretariat. The Secretariat had been a solid and reliable anchor for the organization, but now Members needed to make sure that its senior managers merited recruitment and were well placed for the right jobs, and that its human resources were better and more efficiently and rationally deployed. An immediate priority was the selection of the next Director-General. Of the four candidates, only one could be selected. Members could neither allow this process to become a distraction, nor afford to dedicate more time to it than was necessary. Their substantive preoccupation had to remain the preparations for the Hong Kong Ministerial.

125. Her commitment to consensus-based decision-making was absolute. This had been the practice of the organization, and she intended to maintain it. Although some felt this was the organization's weakness, to her it was its strength, notwithstanding the frustrations it could generate. The organization would again be put to the test in 2005 in several areas on account of consensus decision-making. However, one might think of this in the way that Magnus thought of related issues in his discussions with Orinthia in George Bernard Shaw’s "The Apple Cart", in which Magnus says to Orinthia: "Well, what more can you ask? Do not let us fall into the common mistake of expecting to become one flesh and one spirit. Every star has its own orbit; and between it and its nearest neighbour there is not only a powerful attraction but an infinite distance. When the attraction becomes stronger than the distance the two do not embrace; they crash together in ruin. We two also have our orbits and must keep our distance between us to avoid a disastrous collision. Keeping our distance is the whole secret of good manners; and without good manners, human society is intolerable and impossible". The point of this was that balance, respect for the vital, and only the vital, interests of Members in the system of consensus-based decision-making was critical if Members were, in the words of Magnus to Orinthia, not "to crash together in ruin", and if they were to "avoid a disastrous collision". Members needed to participate fully in and support the work of the TNC. She wished to pay tribute to the Director-General for what he had achieved and for his continuous efforts. She was committed to working in close cooperation with the Director-General and with whomever his successor would be. Members also needed to support the Chairpersons of WTO standing bodies and negotiating groups. Regional groups had an impact on the functioning of the multilateral trading system. She would maintain contact with and consult Chairpersons of standing bodies and negotiating groups, as well as coordinators of regional groupings.

126. In conclusion, she wished to emphasize the need for speed in respect of the tasks and challenges ahead. The current signals and reports were positive, but there was still much to do. Members needed to change gears and to improve their play in several areas as they prepared for Hong Kong, China. Formal and informal consultations among Ambassadors, senior officials and Ministers WT/GC/M/92 Page 27 would remain part of the preparatory efforts. However, she wished to assure Members that decisions would only be taken by the entire membership. The Director General and she would ensure full participation and transparency of results in meetings and consultations, while understanding that different mechanisms, arrangements and formats would be used to serve the larger interests and priorities of the organization. She again wished to thank Members, her colleagues and friends for the honour of being elected Chairman of the General council for 2005. She wished to thank the African Group for nominating her, and to pay tribute to the coordinator of that Group for his leadership, encouragement and wisdom. She wished to thank her friends in the Secretariat. Last, but not least, she wished to thank her colleagues and especially her husband, for his support and friendship. She pledged to do her best, and with Members' support, was confident that the DDA could be significantly advanced.

127. The representative of Rwanda, on behalf of the African Group, expressed the Group's appreciation and satisfaction to see the incoming Chairman in the Chair. To the outgoing Chair, the Group wished to support the ovation he had received earlier. That ovation conveyed the African Group's appreciation for all his efforts, which had enabled Members to achieve substantial results, not the least of which was the July 2004 package. The African Group was very grateful for this result, and wished the outgoing Chair every success in his future career. The African Group was also very proud to have produced the first lady Chair of the General Council through the appointment of the incoming Chair. Her impressive track record, her dedication and devotion to the multilateral trading system, her experience and excellent knowledge of the WTO, as well as her leadership and diplomacy abilities would immensely contribute to the success of this organization and the completion of the DDA. The African Group wished to express its warmest congratulations on her election as Chairman of the General Council and assured her of its full support and co-operation.

128. The representative of Nigeria fully supported the statement by Rwanda on behalf of the African Group. His delegation joined in the gratitude to the outgoing Chair, the Director-General and other outgoing Chairs, as well as the Chairs of the negotiating groups for their hard work and the smooth running of the WTO. The hard work of the outgoing Chair and of all the WTO officers had resulted in the successful completion of the July 2004 package. This had been due to the outgoing Chair's dedication and firmness. That success had helped to keep the WTO and the DDA afloat. Nigeria fully supported the incoming Chair's election to the General Council Chair for the coming year, and believed that she would lead the organization through the challenging periods ahead, including the appointment of the next Director-General and preparations for the Hong Kong Ministerial. Nigeria congratulated her and the other colleagues who had been elected to chair WTO bodies. The incoming Chair's election was a big challenge to Africa, and particularly to African women. His delegation was sure that she was fully qualified to tackle the responsibilities the General Council had entrusted to her. He recalled that in 2005, Africa had decided to advance its trade and development efforts in the WTO through three remarkable women: the incoming Chair, the coordinator of the African Group, and the Permanent Representative of Egypt. Nigeria hoped that these women would make the men proud and Africa proud. His delegation assured the incoming Chair and all the other new officers of its full support, as they worked with Members to make the Hong Kong Ministerial and the WTO agenda a success.

129. The representative of Zambia, on behalf of the LDCs, said that the LDCs fully endorsed the slate of names of the new officers of WTO bodies that had been communicated at the present meeting. The LDCs had no doubt that these incoming Chairpersons would discharge their responsibilities with as much diligence as had their predecessors. On the election of the Chairman of the General Council, it was with great pleasure that the LDCs welcomed the incoming Chair's appointment for 2005. It was their strong conviction that with her cheerful and pleasant personality and outstanding dedication to the development agenda of this Round, the incoming Chair would steer the membership to a successful outcome in Hong Kong, China. The LDCs also wished to pay a special tribute to the outgoing General Council Chair and the outgoing Chairs of other WTO bodies for the professional WT/GC/M/92 Page 28 manner in which they had conducted the business of the organization. The LDCs assured the incoming Chair of their continued commitment and cooperation.

130. The representative of Benin, on behalf of the ACP countries, conveyed these countries' congratulations and gratitude to the outgoing Chair for the remarkable work he and his team had carried out during his mandate, which had begun after the Cancún Ministerial Conference. Thanks to his determination, his ability, his careful handling, and his availability at all times, he had been able to lead the negotiating programme since Cancún up to the present time, and thanks to him, Members had been able to achieve some impressive results in July, which they now had in the form of the July framework agreements. The ACP countries wished him every success in his future career, much happiness at home, and a safe return to his country or to whatever post he might be taking up. They welcomed the incoming Chair's election to the Chairmanship of the General Council, and assured her of their full support in carrying out her work. The ACP countries knew how committed the incoming Chair was, and of her constant search for a consensus and her ability to maintain contact with all the different Members of the organization. They were sure that under her leadership and with her easy touch, Members would be able to go through the different phases of the negotiating programme.

131. The representative of Argentina, on behalf of GRULAC, expressed these countries' gratitude to the outgoing Chair for his many endeavours in the course of his term of office as Chairman of the General Council. The latter had constantly demonstrated a sense of balance and discretion, and Argentina hoped that his future would be as brilliant and fruitful as his tenure at the WTO had been. GRULAC also wished to express gratitude to all who had served in the course of 2004 as Chairs of the various WTO bodies, and to the African Group for having selected the incoming Chair as the General Council Chair for 2005. GRULAC knew that she would provide a very special personal touch, and would help Members carry through their work in the course of the year to culminate at the Hong Kong Ministerial Conference.

132. The representative of Morocco associated his delegation with the statement by Rwanda on behalf of the African Group. Morocco wished to congratulate the outgoing Chair and to express its gratitude for the way he had led Members during his chairmanship of the General Council – for his tact and for enabling the adoption of the July 2004 package. To the incoming Chair, his delegation wished to convey its warm and personal congratulations, and assure her if its full support in carrying out her tasks. It was an honour for the African continent to see her presiding over this assembly, and an honour for all African women she represented. Under her chairmanship, Morocco was sure that the work would gain a new impetus and a new momentum, and there was no doubt that in carrying out her responsibilities – which were by no means easy or light – both her human and professional qualities would enable her to lead Members into a safe harbour. The current phase Members were undertaking was crucial. The upcoming July and December phases were very important benchmarks moving towards results from the Doha Round. Morocco wanted to achieve balanced results that would reflect the interests of all parties, taking into consideration the interests of the developing countries as well. The incoming Chair's diplomatic skills, her handling of all the technical issues and her international background would help her to meet the interests of all Members. His delegation fully supported her Chairmanship and was ready to give her its full support and cooperation throughout her term.

133. The representative of Singapore, on behalf of the ASEAN Members, extend these countries' gratitude and appreciation to the outgoing Chair for his very hard work and for his distinguished, patient, dedicated and business-like leadership of the General Council over the past twelve months. In particular, the ASEAN Members recognized and commended the outgoing Chair for his leadership role in advancing the DDA process through the July package in 2004, and wished him all the best in his future endeavours. The ASEAN Members extended their warmest congratulations to the incoming Chair. They had every confidence in her leadership and thought it a fitting tribute, and appropriate, that in this concluding phase of the Doha Development Round, Members had in the Chair WT/GC/M/92 Page 29 someone from the developing world, someone from Africa, someone from Kenya and, most appropriately, a woman. This was most appropriate because the outgoing Chair had referred to the July 2004 package as a child that he had helped to deliver – he had been the mid-wife. The child was in need of nurturing, so that the July package could grow into a balanced package in time for Hong Kong, China and the ASEAN Members had every confidence that the incoming Chair would rise to the occasion.

134. The representative of Kenya congratulated the incoming Chair for her well-deserved appointment as General Council Chair for 2005. Kenya was convinced that her strong leadership qualities and deep commitment to the multilateral trading system would significantly contribute to the attainment of the objectives of the organization. His delegation wished to assure her of its full and enthusiastic support. She was assuming the Chair in a critical year when the organization was going through the process of selecting a new Director-General and preparing for the Hong Kong Ministerial Conference, which was expected to endorse key decisions setting the platform for the final phase of the Doha negotiations. This was no mean task, and his delegation would cooperate and work closely with her to ensure success. For those who might not know the qualities the incoming Chair brought to the Council, he would only summarize these as experienced visionary leadership, a gift of genuine and devoted conviction to the diverse, dynamic and growing WTO. His delegation also wished to pay tribute to the outgoing Chair, who had brought to the Council strong personal contacts, a great respect for WTO's accomplishments, and the drive that had made the organization achieve its potential. The latter's personal involvement in the July 2004 process had led to a major achievement in the organization that was now guiding Members' work. Kenya wished him success and happiness in his future endeavours.

135. The representative of Barbados, on behalf of the CARICOM Group, thanked the outgoing Chair for his outstanding contribution to the work of the organization over the past year. These countries, like others, had admired his quiet, honest human style, which carried a very focussed determination to deliver results, which he had certainly done. They welcomed the incoming Chair and pledged their full support as Members moved into yet another difficult year.

136. The representative of India thanked the outgoing Chair for his wisdom, his sagacity and his sense of fair play. He had led Members with great dexterity, leadership and skill. India wished him success and good fortune in his new assignment. His delegation added its voice to the expressions of congratulations and welcome to the incoming Chair, whose election emphasised the fact that the WTO was a fully representative organization and that it recognized merit. Needless to say, she would have his delegation's full support in the challenging days ahead.

137. The representative of Djibouti expressed his delegation's gratitude to the outgoing Chair, the Director-General and all those who had worked on his team. It was thanks to that team that the July 2004 package had been established ,and Members had to continue to work on it until there were satisfactory results for all. The outgoing Chair had said earlier that a child had been born in July. It was now for the incoming Chair, together with Members, to bring this child up until it could walk on its own. Djibouti warmly welcomed her election to the Chairmanship of the General Council, and was grateful to the Members who had selected her. This showed that although Africa might not be a heavyweight in world trade, it nonetheless knew the role it played on the world scene. It also showed that Africa had the determination, despite its very slight share of world trade, to be integrated into the multilateral trading system. It was thanks to the African Group having chosen the incoming Chair, that Members had seen this determination personified. There was a good reason the African Group had chosen a woman. It was the first time in the WTO that Africa – often referred to as a poor continent – had chosen a woman for the Chair of one of the highest bodies of the organization. It was a singular honour not only for Africa, and not only for Kenya and its government, but indeed for the whole of the continent. Djibouti was sure that a year hence, the Chair would see that all Members had given her their full support up to the end of her mandate, regardless of the results achieved. WT/GC/M/92 Page 30

138. The representative of Egypt associated his delegation with the statement by Rwanda on behalf of the African Group expressing appreciation to the outgoing Chairs of the various WTO bodies for their very dedicated work. Egypt also wished to commend and to express its deep appreciation to the outgoing Chair of the General Council for his able chairmanship and for his significant contributions regarding the success of the July package. Egypt also wished to welcome the incoming Chair, and agreed with Kenya concerning her qualities. His delegation assured her of its full support in her challenging role, and of Egypt's commitment to cooperate with her in the most constructive manner.

139. The representative of Jamaica joined in extending the warmest congratulations to the incoming Chair on her assumption of the post. Jamaica also associated fully with the statement by Argentina on behalf of GRULAC. The unanimous support that had attended the incoming Chair's elevation to this high post was a tribute to her diplomatic skills, to her qualities of leadership, and to the energy she had demonstrated in all posts during her tenure at the WTO. Given the important challenges that lay ahead in 2005, her abundant skills would be fully tested, but Jamaica knew of no better person in whom to put trust and confidence in the challenging year ahead. She could be assured of the fullest cooperation of his delegation in all matters. He also wished to join publicly in the tributes paid to the outgoing Chair, whose manner of departure at the present meeting was as professional and as business-like as his stewardship had been all year.

140. The representative of Honduras supported the statement by Argentina on behalf of GRULAC and associated his delegation with all those who had welcomed the incoming Chair. For Honduras, it was indeed a great honour to see the incoming Chair at the helm of the General Council. Honduras knew her ability and her great wisdom, and was sure this would be an important year for the organization. She could count on Honduras in all respects. His delegation also wished to thank the outgoing Chair for the excellent work he had done, and would not forget his leadership in the course of his tenure as Chair. Honduras wished him good fortune and every success.

141. The representative of Senegal thanked the outgoing Chair. All delegations had praised his qualities as Chairman of the Council, and Senegal wished to endorse the unanimous tribute paid to him. Senegal had also been much surprised by the outgoing Chair, because he had shown at the present meeting that he was moved and touched. No doubt, he had been equally touched throughout the year, but his competence and dedication to his task had been very focussed. Senegal also wished to thank the outgoing Chair for his having laid emphasis on an important couple – trade and development. This was a signal he had given Members before leaving. It was a message to the Council, and all should take this into consideration. As for the incoming Chair, the reasons she had been elected were obvious. Not only was she charming, but all agreed that at the present stage, she would be one of the most competent Chairmen to guide the General Council. Her intimate knowledge of the rules had been clearly demonstrated in her statement of general policy, and he was sure that everyone would retain that statement, which perhaps should constitute a roadmap for the year to come. It was only right that she should have been elevated to the Chairmanship of the General Council, because she represented a country that had always been committed to the cause of liberalization on the international scene. He fully associated his delegation with the statement by Rwanda on behalf of the African Group, congratulated the incoming Chair, and assured her of Senegal's full support in the arduous task that awaited her. That task awaited all Members, and Senegal appealed to all to give her their full support, so that the confidence placed in her would be fully enjoyed by all.

142. The representative of Tanzania, also on behalf of Uganda, associated these delegations with the statements by Rwanda on behalf of the African Group and by Zambia on behalf of the LDCs. They congratulated the incoming Chair on the assumption of this prestigious position, which was an honour to East Africa, and wished her well. They had the greatest confidence in her ability to lead the work of the General Council to greater heights. Her array of qualities had already been highlighted by many speakers, and he could only say that the DDA could not have found better hands, as Members WT/GC/M/92 Page 31 worked towards the Hong Kong Ministerial. These delegations also joined those who had paid tribute to the outstanding work done by the outgoing Chair. The latter's exemplary work and personal qualities would leave indelible memories. They wished him a successful and enjoyable career in the future.

143. The representative Oman expressed appreciation to the outgoing Chair for his work and patience, and wished him all success and good luck. As a woman, she thought it was important for her to congratulate the incoming Chair for being elected as the first woman Chairperson of the General Council, and to express Oman's full support for her. Her delegation wished the incoming Chair all success, and was keeping its eyes open to the Director-General's position next.

144. The representative of Cuba said that, as a woman, a representative of a developing country and a Latin American, it was an honour to have the incoming Chair guiding Members, through the latter's experience and ability, in view of all the work that lay ahead. José Martí, who was the father of Cuba's independence, had said that no work was complete without the hand of a woman. She, as a Cuban and as a follower of these ideals, was personally convinced that under the incoming Chair's leadership, Members would reach a safe harbour and attain the objectives the membership hoped to attain through the current negotiations and, above all, that this process would help reduce the inequalities and poverty that still existed in the world – which was the best goal any human being could set for himself. Cuba wished the incoming Chair happiness, and assured her of its humble cooperation.

145. The General Council took note of the statements. WT/GC/M/92 Page 32

ANNEX 1

Statement by Rwanda on behalf of the African Group at the meeting of the TNC held on 14 February 200510

The representative of Rwanda, on behalf of the African Group, said that given that, Members were faced with enormous tasks ahead, they could consider having additional TNC meetings, in order to continue taking stock of the progress and guiding the negotiations. All Members bore a huge responsibility in ensuring the success of the Hong Kong Ministerial Conference and in delivering benefits to their people in terms of improved economic and social welfare, which was the ultimate goal of the Doha Round. In that regard, the African Group was ready and remained committed to working very closely with the Chairman and the Chairpersons of the Negotiating bodies. All Members needed to be engaged in a constructive spirit in order to make progress in the negotiations and achieve the objectives of the Doha Development Round.

She noted that many informal mini-Ministerial meetings were already scheduled in various parts of the world and said the African Group welcomed the good will of Ministers to be regularly involved at the political level. The Group believed that the involvement of Ministers would positively influence and advance the Geneva process, for instance by making political decisions such as "a credible end date for export subsidies". The African Group therefore welcomed more Ministerial contacts at regular intervals to consider a number of issues which would guide delegations.

She stressed the need for transparency and inclusiveness in order to ensure the participation and ownership of the process by all Members. Equally the issue of parallel meetings was of great concern to small delegations, as their limited capacity affected their ability to attend all meetings. This was a very serious issue that should be addressed.

This being a development round, any success would be measured by the extent to which the outcomes would be development-oriented. Accordingly, for the African group "first approximation" equalled "fair approximation" and this had to be in conformity with the Doha mandate, and responsive to their needs and interests.

On Agriculture, she said the Group aimed to achieve substantial progress in the discussion on issues of interest to it such as the treatment of NFIDCs, exemptions of LDCs, SP/SSM, preference erosion, the treatment of food aid and greater market access for African agricultural products. Since last July, the discussions in the Special Session of Agriculture had been technical in nature, and the Group hoped those discussions would translate into positive outcomes. One should recall that the objective of modalities by Hong Kong required substantial progress in technical discussions, in a manner which accorded special priority to the issues of interest to the African Group.

On the issue of cotton, the Group wished to re-affirm its view that discussions in the Sub- Committee on Cotton had to take into account both the trade and development aspects, and also had to find an early solution to the cotton initiative including the drastic decline of prices.

Regarding NAMA, she said the view of the African Group was that the formula that would be agreed upon had to include S&D treatment, and the principle of less than full reciprocity among other elements. Furthermore solutions had to be found within the WTO for countries that would be affected by preference erosion. Similarly, NTBs had to be given more attention in the NAMA negotiations, as they had become huge barriers to market access.

10 Included in the records of the present meeting under Item 5 at the request of the delegation of Rwanda. WT/GC/M/92 Page 33

Turning to the Services negotiations, the African Group continued to look forward to more offers which took into consideration the interests of developing countries, such as in Mode 4, professional services, construction and tourism. The Group hoped to achieve more commercially meaningful S&D treatment which would help this group of countries, particularly the least developed of them to address some of the challenges they faced in services trade. In that respect, Members had to commit themselves to operationalize Article IV of GATS. She expressed the Group's desire to have more discussions and proposals on how to ensure that developing countries received targeted technical assistance as envisaged in Annex C of the July 2004 Decision

The African Group wished to underscore the need for Members to intensify their efforts on development-related issues without any further delay. This was another measure which would gauge the success of the DDA. The Group was disappointed at the very slow progress made, both on S&D and implementation-related issues, and hoped that earlier pledges would be translated into reality. For example, the Group wanted to see an early completion of the amendment of the TRIPS Agreement to incorporate the 30th August 2003 Decision on TRIPS and Public Health.

The Group hoped work in the Special Session of the Committee of Trade and Development would focus on achieving progress on the Agreement-specific proposals. It should be recalled that making S&D more precise, effective and operational was one of the main goals of the negotiations. After the previously missed deadlines, Members needed to deliver by July this year, the date set out in the July Decision.

On Trade Facilitation, the Group had observed that the negotiations were moving very fast, with a danger that some countries would be left behind. Therefore it wished to emphasize the need for more in-depth technical assistance from the early stages of the negotiations, so that Members could continuously gauge what their needs and priorities were. The Group called upon Members who made proposals to assist the Group's members by accompanying each proposal, where necessary, with specific cost implications both in terms of financial and institutional needs. The Group also wished to emphasize that each proposal brought to the table had to come with precise and meaningful S&D treatment for developing and least-developed countries as that was an integral part of the Trade Facilitation negotiations. WT/GC/M/92 Page 34

ANNEX 2

Statement by Benin on behalf of the ACP Group at the meeting of the TNC held on 14 February 200511

The representative of Benin, on behalf of the ACP Group, associated the Group with the statements by Rwanda on behalf of the African Group and Zambia on behalf of the LDCs. The year 2005 would see a very important stage in the long path of the Doha Round, which was the Sixth Ministerial Conference at the end of the year in Hong Kong, China. In order to make this decisive event a success, Members needed to work unstintingly to intensify the technical work and the search for positive agreements in the preparatory phase which was starting with the present meeting. In the context of the enormous amount of technical work going on in the various negotiating bodies, he wished to give the ACP's views on the evolution of this work.

On agriculture, the Group believed that the work of the past week had been very useful. It had enabled participants to focus on one of the most crucial issues for the ACP Group which was the question of preferences. In the July 2004 framework, paragraph 44 had recognized the importance of long-standing preferences and had established a framework for dealing with this matter. It was now accepted by the majority of the Members, who had repeatedly stated that the result of the negotiations should not lead to the distress or the disappearance of certain agricultural systems. This implied a higher level of understanding from all partners for the concerns about preferences, which remained a central issue for countries in the ACP Group. The agricultural negotiations of the previous week had shown that a number of Members and other groups were favourable to a practical solution in this area. The ACP Group was willing to have a constructive exchange of views on this with all Members in future technical meetings.

In the work on cotton, Members should maintain their current impetus and engagement to find appropriate solutions to this important question. The first meeting of the Sub-Committee on Cotton would take place on 16 February, and the work should lead to ambitious, expeditious and specific solutions. The ACP cotton producers were facing distortive trade practices, the consequences of which were a severe fall in the price of cotton, the disappearance of cotton production and an automatic alienation of small farmers. It was thus more than ever necessary to establish a Special Emergency Fund to allow ACP cotton-producing States to meet the problems faced by their small farmers, whose competitiveness through reduced costs was being wiped out by the effect of subsidies. The ACP Group counted on support from all Members in this work.

On NAMA, the Group agreed with the Chairman of the Negotiating Group that the negotiating sessions in March and May 2005 would be decisive if Members wanted to have an initial outline of modalities by July 2005 on the basis of which a decision would be take in Hong Kong. The Group hoped the different efforts which would be made to give political input to these negotiations would be transparent and inclusive. The essential concerns of the Group in these negotiations were well known. The principle of less than full reciprocity, as well as S&D Treatment, could furnish essential elements for the work. Paragraph 16 of Annex B of the July 2004 Framework requested the Negotiating Group to take into consideration, in the course of its work, the particular needs that might arise for the Members concerned because of the challenges that might be faced by non-reciprocal preference beneficiary Members. In this technical phase of work, the Group was aware of the need to table specific proposals. Some Members had stated that addressing the erosion of preferences would hold up the process of reducing tariffs and interrupt trade liberalization. It was also the case that small vulnerable economies which had small market shares because of preferential access, would be

11 Included in the records of the present meeting under Item 5 at the request of the delegation of Benin. WT/GC/M/92 Page 35 destabilized by the application of a MFN tariff to all developing countries benefiting from preferences. In order not to compromise international trade liberalization, the Group suggested an approach concerning preferences applied to a list of well identified products. This was a pragmatic approach which the Group would promote in the NAMA negotiations.

Turning to Trade Facilitation, he said the work of the Negotiating Group the previous week had enabled progress to be made through a better understanding of the aims and problems of the Group's member States, who had spoken quite clearly on the subject. It was clear to the Group that these negotiations concerned mainly Articles V, VIII and X of GATT 1994. Moreover, the S&D Treatment which the Group's Members needed should not be limited exclusively to longer transition periods. Targeted technical assistance and capacity building would enable the Group's members to better assess their needs to prepare for the adjustment of infrastructures and to implement the results of the negotiations. Financial support from donors was more necessary than ever in order to carry out these assessments and identify the flexibilities required by their economies.

In the area of Services, the deadline of May 2005 was important for many of the Group's members. However, their lack of technical capacities, together with the various constraints that these negotiations contain, had complicated progress in this area. Several Group members needed technical assistance in order to submit their revised offers and become more proactive in the negotiations. The Group believed, however, that progressive liberalization which took into account its members' specific constraints and levels of development should guide the continuation of the work.

The ACP Group was very concerned at the progress in the review of S&D Treatment. The Group wished to reiterate its hope to see all Members become fully engaged so that the re- examination of all of the pending proposals on specific agreements could be undertaken by the July 2005 deadline. The Group believed that the July 2004 Decision had clearly defined the parameters for progress in this area. The Group appreciated the efforts undertaken by the Chairman of the Special Session in his contacts with the Chairpersons of other bodies in order to move the work forward. The Group supported his approach of examining the proposals by the LDC Group as a priority. Endowing the WTO architecture with precise, effective and operational S&D provisions rules which also had an economic value was essential to letting the ACP countries be fully integrated into the multilateral trading system.

The ACP Group was paying considerable attention to the evolution of the rules negotiations in general and would continue to support the efforts of the negotiating group Chairmen. Turning to the preparatory process for the Ministerial Conference in Hong Kong, he said that several Ministerial gatherings were foreseen in the near future. The ACP Group would like the process to be more inclusive and transparent in order to take better account of its concerns and needs. The impetus given to the negotiations by these meetings was of interest to all of the Group's members. The Group wished to express its determination to work positively toward progress in the negotiations as a whole so that the results in Hong Kong would be balanced and faithful to the development label of the Doha Round. WT/GC/M/92 Page 36

ANNEX 3

Statement by Zambia on behalf of the LDCs at the meeting of the TNC held on 14 February 200512

The representative of Zambia, on behalf of the LDC Group, said the Group remained committed to working with the Chairman in order to ensure that the Work Programme was followed successfully and that it was in line with the mandates of the Marrakesh Agreement, the Doha Ministerial Declaration and the July Decision. The Group hoped that Members would be able to strike a deal by July on most key areas, especially in NAMA and Agriculture, taking into account the developmental aspects for the benefit of developing countries, especially the LDCs. The urgency and the importance of these aspects of the Doha Development Round could therefore not be over emphasized. As it had previously stated, the Group believed that the goodwill and spirit of engagement demonstrated by all Members would lead to a positive outcome from the first approximation.

The LDC Group would liaise with the Chairpersons of negotiating bodies regarding issues of specific interest to it which had been raised in their reports, with a view to putting those issues in their proper perspective in terms of prioritization and emphasis. In this regard, the Group had taken note of the proposal made by the Chairman of the Services negotiations. The Group wished to express its appreciation to all Members for their continued support for the LDCs and trusted that everyone would strive to make the Doha Development Round a real development round for developing countries and in particular for the LDCs. Finally, the Group supported the statement by Rwanda on behalf of the African Group.

______

12 Included in the records of the present meeting under Item 5 at the request of the delegation of Zambia.

Load more

  36

Copy Link