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Committee on Ways and Means U.S. House of Representatives 1 108TH CONGRESS WMCP: " ! 1st Session COMMITTEE PRINT 108–9 COMMITTEE ON WAYS AND MEANS U.S. HOUSE OF REPRESENTATIVES R E P O R T ON TRADE MISSION TO THE WTO MINISTERIAL MEETING IN CANCUN E:\Seals\Congress.#13 SEPTEMBER 2003 Prepared for the use of Members of the Committee on Ways and Means by members of its staff. This document has not been officially approved by the Committee and may not reflect the views of its Members U.S. GOVERNMENT PRINTING OFFICE 91–324 WASHINGTON : 2004 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate jul 14 2003 01:12 Jan 21, 2004 Jkt 091324 PO 00000 Frm 00001 Fmt 5012 Sfmt 5012 E:\HR\OC\E324A.XXX E324A COMMITTEE ON WAYS AND MEANS BILL THOMAS, California, Chairman PHILIP M. CRANE, Illinois CHARLES B. RANGEL, New York E. CLAY SHAW, JR., Florida FORTNEY PETE STARK, California NANCY L. JOHNSON, Connecticut ROBERT T. MATSUI, California AMO HOUGHTON, New York SANDER M. LEVIN, Michigan WALLY HERGER, California BENJAMIN L. CARDIN, Maryland JIM MCCRERY, Louisiana JIM MCDERMOTT, Washington DAVE CAMP, Michigan GERALD D. KLECZKA, Wisconsin JIM RAMSTAD, Minnesota JOHN LEWIS, Georgia JIM NUSSLE, Iowa RICHARD E. NEAL, Massachusetts SAM JOHNSON, Texas MICHAEL R. MCNULTY, New York JENNIFER DUNN, Washington WILLIAM J. JEFFERSON, Louisiana MAC COLLINS, Georgia JOHN S. TANNER, Tennessee ROB PORTMAN, Ohio XAVIER BECERRA, California PHIL ENGLISH, Pennsylvania LLOYD DOGGETT, Texas J.D. HAYWORTH, Arizona EARL POMEROY, North Dakota JERRY WELLER, Illinois MAX SANDLIN, Texas KENNY C. HULSHOF, Missouri STEPHANIE TUBBS JONES, Ohio SCOTT MCINNIS, Colorado RON LEWIS, Kentucky MARK FOLEY, Florida KEVIN BRADY, Texas PAUL RYAN, Wisconsin ERIC CANTOR, Virginia ALLISON H. GILES, Chief of Staff JANICE MAYS, Minority Chief Counsel (II) VerDate jul 14 2003 01:12 Jan 21, 2004 Jkt 091324 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 E:\HR\OC\E324A.XXX E324A MEMBERS OF THE DELEGATION MEMBERS OF THE U.S. HOUSE OF REPRESENTATIVES Hon. Bill Thomas, Chairman, Committee on Ways and Means Hon. Jim Kolbe, Chairman, Subcommittee on Foreign Operations, Export Financing, and Related Programs, Committee on Appropriations Hon. Sander M. Levin, Ranking Member, Subcommittee on Trade Hon. E. Clay Shaw, Jr. Hon. Wally Herger Hon. Dave Camp Hon. William J. Jefferson Hon. Sam Johnson Hon. Earl Pomeroy Hon. Phil English Hon. Mark Foley Hon. Kenny C. Hulshof Hon. Kevin Brady COMMITTEE ON WAYS AND MEANS Angela Ellard, Staff Director David Kavanaugh, Professional Staff Stephanie Henning, Professional Staff Julie Hasler, Committee Administrator Tim Reif, Minority Chief Trade Counsel Viji Rangaswami, Minority Trade Counsel (III) VerDate jul 14 2003 01:12 Jan 21, 2004 Jkt 091324 PO 00000 Frm 00003 Fmt 5904 Sfmt 6621 E:\HR\OC\E324A.XXX E324A VerDate jul 14 2003 01:12 Jan 21, 2004 Jkt 091324 PO 00000 Frm 00004 Fmt 5904 Sfmt 6621 E:\HR\OC\E324A.XXX E324A C O N T E N T S Page Members of the Delegation ..................................................................................... III Overview of the Mission .......................................................................................... 1 Discussion of Trip Meetings .................................................................................... 2 September 11, 2003 .......................................................................................... 2 September 12, 2003 .......................................................................................... 3 September 13, 2003 .......................................................................................... 10 (V) VerDate jul 14 2003 01:12 Jan 21, 2004 Jkt 091324 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 E:\HR\OC\E324A.XXX E324A VerDate jul 14 2003 01:12 Jan 21, 2004 Jkt 091324 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 E:\HR\OC\E324A.XXX E324A OVERVIEW OF THE MISSION From September 10 through 13, 2003, a delegation of the House Ways and Means Committee visited Cancun, Mexico, to conduct a fact-finding mission. The primary purpose of the trip was to partici- pate in the Ministerial Meeting of the World Trade Organization (WTO), to oversee U.S. trade officials during negotiations, to ex- plore issues related to international trade, and to discuss trade po- sitions with WTO delegates from other countries. The Congres- sional delegation had the opportunity to discuss WTO issues with delegations from other WTO members, including Australia, New Zealand, the European Union, Ecuador, Africa, and Brazil. The Ministerial Meeting began cautiously because there had been little progress in negotiations in the year leading up to the Ministerial as many countries had refused to yield from their ini- tial positions. Consequently, several negotiating deadlines in 2003 had not been met, most notably the deadline to determine modali- ties for negotiations of agricultural trade liberalization. The United States made efforts to contribute to the trade negotiations in ad- vance of the Cancun meeting, including reaching agreement on a text providing access to medicines for the least developed countries, which was an important goal of the Doha agenda, and showing a willingness to make concessions on agriculture. Ultimately, the negotiations at Cancun collapsed on September 14, 2003, for various reasons. Ostensibly, failure of the negotiations was the result of an impasse on whether to include one or more of the so-called ‘‘Singapore Issues’’ (trade facilitation, investment, competition, and government procurement) in the Round’s negoti- ating mandate. Deeper problems existed, and several other factors contributed to the collapse: • The inability, or unwillingness, of the European Union, Japan, and Korea to negotiate ambitious liberalization in agricultural tar- iffs and cuts in domestic supports and export subsidies; • Efforts by some countries to stall, delay, and obstruct further trade liberalization in general; • Refusal of the newly created G–21, a group of approximately 21 (the numbers fluctuated as countries joined or left the group) developing countries,1 to consider market access liberalization in addition to its otherwise liberal position on cutting agricultural subsidies and domestic supports. Many of these countries were frustrated that the joint U.S.–EU paper on agriculture, developed after the Montreal mini-ministerial, did not go nearly far enough in liberalizing agriculture trade; 1 At the end of the Cancun Ministerial, the following countries were G–21 members: Argen- tina, Bolivia, Brazil, Chile, China, Colombia, Costa Rica, Cuba, Ecuador, Egypt, Guatemala, India, Indonesia, Mexico, Nigeria, Pakistan, Paraguay, Peru, the Philippines, South Africa, Thailand, and Venezuela. (1) VerDate jul 14 2003 01:12 Jan 21, 2004 Jkt 091324 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 E:\HR\OC\E324A.XXX E324A 2 • Reluctance of some developing countries to embrace trade lib- eralization because of the resulting erosion of their trade advan- tages created by preference programs granted by developed coun- tries. Some developing countries proposed ‘‘compensation’’ for loss of their preferential advantage, an unacceptable option for devel- oped countries; and • Insistence by several western African nations on the imme- diate elimination of supports and subsidies on cotton plus com- pensation as opposed to dealing with the cotton sector in a broader context. DISCUSSION OF TRIP MEETINGS Thursday, September 11, 2003 Briefing by Adriana Velasquez, Director of the Mexican Na- tional Institute of Archaeology (INAH) at the Tulum ar- chaeological site Ms. Velasquez provided the delegation with a briefing on Mayan culture, Mexico’s efforts to preserve and study Mayan archaeology, and trade issues related to antiquities. She also provided a brief tour of the Tulum archaeological site, which is located 81 miles south of Cancun. Tulum was a Mayan city that flourished even during the early period of the Spanish conquests. Tulum was an important trading city, and although it was never conquered by the Spanish, the city eventually died out and was abandoned because the Spanish prevented the Mayan traders from using ships. INAH is the Mexican government bureau established in 1939 to research, preserve, protect, and promote the historical heritage of Mexico. Mexican law prohibits the export of archaeological monu- ments without the authorization of the INAH. Violators are subject to a maximum fine of 50,000 pesos (approximately $5,500) and 12 years imprisonment. The United States and Mexico entered into a bilateral treaty for the recovery of stolen archaeological, historical, and cultural properties in 1971. President Nixon issued a Presi- dential Proclamation in 1971 implementing the treaty. Among other obligations, the United States agreed to help recover and re- turn cultural property taken from Mexico. Briefing by Jim Grueff, member of the U.S. Foreign Agri- culture Service Because of the importance of trade in agriculture to Members of the delegation and its key position in the WTO negotiations, Mr. Grueff of the U.S. Foreign Agriculture Service gave the first brief- ing to Members of the various Congressional delegations about the status of agricultural negotiations leading up to Cancun. He fo- cused his comments on the draft Ministerial Declaration prepared by WTO General Council Chairman Carlos Perez del Castillo. The Declaration drew partially from a framework paper proposed joint- ly by the United States
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