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II. the World Trade Organization II. The World Trade Organization A. Introduction element of the broader international economic landscape. Given its magnitude and scope, the This chapter outlines the progress in the work potential of the DDA to transform world trade program of the World Trade Organization commands priority attention. (WTO), the work ahead for 2004, and the multi- lateral trade negotiations launched at Doha, The WTO and multilateral trading system are Qatar in November 2001. The United States constantly evolving. Members need to continue remains steadfast in its support of the rules-based to take responsibility for important institutional multilateral trading system of the WTO. As a key improvements. Pursuant to the Uruguay Round architect of the postwar trading system and a Agreements Act, the United States will continue leader in the pursuit of successive rounds of trade to press for increased transparency in WTO oper- liberalizations, the United States shares a ations, in WTO negotiations and in Members’ common purpose with our WTO partners: to trade policies. The WTO needs to expand public obtain the expansion of economic opportunities access to dispute settlement proceedings, to for the world’s citizens by reducing trade barriers. circulate panel decisions promptly, to encourage A recent statement by the Bretton Woods institu- more exchange with outside organizations and tions reflects the energy that the WTO can bring continue to encourage timely and accurate to the global economy: “.... collectively reducing reporting by Members. barriers is the single most powerful tool that countries, working together, can deploy to reduce The Doha Development Agenda poverty and raise living standards.” The DDA covers six broad areas: agriculture, non-agricultural market access, services, the so- The multilateral trade negotiations and the imple- called “Singapore issues” (transparency in mentation of WTO Agreements remained at the government procurement, trade facilitation, forefront of U.S. trade policy in 2003. Despite the investment and competition) and rules (trade impasse at the WTO’s 5th Ministerial Conference remedies), TRIPS, and development-related in September 2003 in advancing the Doha issues. In addition to reviewing progress in the Development Agenda (DDA), the year closed on negotiations overall, Box 1 below identifies the a more upbeat note. On December 15, General issues for Ministerial consideration at the WTO’s Council Chairman Perez del Castillo outlined the 5th Ministerial Conference in Cancun Mexico. overall direction required to reinvigorate the negotiating process in 2004—expressing his hope The DDA in 2003 had an extensive negotiating that the sense of urgency evident during his post- agenda and deadlines, but lack of progress in agri- Cancun consultations would quickly enable culture early in the year determined the overall governments in 2004 to put the negotiations back pace of the negotiating agenda. Delays by the on track. 2003 closed with all WTO Members European Union in adopting, then translating, its carefully reflecting on next steps. reform of its Common Agricultural Policy (CAP) into WTO negotiating positions led to slowed The objectives agreed in Doha remain a priority negotiations overall, and hardened disagree- in U.S. liberalization efforts. The WTO’s mandate ments in areas including the extent to which the to reduce barriers and to provide a stable trading negotiating agenda should be broadened to system in order to raise standards of living and include the Singapore Issues, and whether there reduce poverty continues to be an essential was sufficient attention to development-related 1 Box 1 5th Ministerial Conference, Cancun, Mexico—September 2003 Tasks for Cancun from the Doha Declaration Ministers agreed at the launch of the Doha Round to use the 5th Ministerial Conference as a midterm review of progress in the negotiations and provide any necessary political guidance on, including: • Singapore issues: Take decisions by explicit consensus on modalities of negotiations on Singapore issues (investment, competition, transparency in Government Procurement and trade facilitation). • Agriculture negotiations: Members were to submit their initial offers (draft schedules no later than date of Fifth Session). • TRIPS: Conclude negotiations on the establishment of a multilateral system of notification and registration of geographical indications for wines and spirits. Receive reports: • from the Committee on Trade & Environment on issues in para. 32 with recommenda- tions, where appropriate, for future action, including the desirability of negotiations; • on technical assistance and capacity building in the field of trade and environment; from General Council on: • progress on those elements of the Work Program, which do not involve negotiations; • the continued e-commerce work program; • recommendations for action on small economies; • progress in trade, debt and finance examination; • progress in trade and technology transfer examination; from Director General on: • implementation and the adequacy of technical cooperation and capacity-building commitments; issues. The EU’s agricultural reforms were not the rules and disciplines of the WTO system. agreed until late July 2003. As a result of U.S. The market access related negotiations of the efforts, in August of 2003 agreement was reached DDA offer the greatest potential to create jobs, on the question of TRIPS/health and compulsory advance economic reform and development, and licensing for countries with little or insufficient reduce poverty worldwide. The United States manufacturing capacity—the resolution of which recognizes there are many important issues in all hoped would provide new impetus to the the national economic strategies of our devel- Cancun meeting. Despite great efforts, Ministers oping country WTO partners, yet believes the arrived at Cancun with less progress than had focus of the WTO must remain concentrated on been envisioned in the Doha Declaration. its mandate of reducing trade barriers and providing a stable, predictable, rules-based envi- Since the launch of the Doha Development ronment for world trade. As the experience at Round in 2001, the United States has tabled the Cancun Ministerial clearly showed, this is seventy formal submissions to dramatically work that requires the focus, flexibility and reduce barriers to trade in services, agricultural political will of all Members. The United States products and industrial goods, and to strengthen is prepared to meet these requirements in order 2 | 2004 TRADE POLICY AGENDA AND 2003 ANNUAL REPORT to reach an ambitious outcome in the DDA resolution of disputes, the Members believed it negotiations, along with contributions of other would be important for Ministers to meet on a WTO Members. regular basis in order to provide necessary direc- tion and political oversight to the organization’s Given the emphasis on development in the DDA, work. The regular cycle of ministerial meetings the United States has led the effort to provide was an important innovation for the WTO. unprecedented contributions to strengthen tech- nical assistance and capacity building to ensure The Doha Agenda is heavily oriented towards the participation of all Members in the negotia- market access issues, with agricultural reform at tions. After detailing the DDA’s progress to date, the heart of the negotiations. The DDA, along this chapter follows with a review of the imple- with the day-to-day implementation of the rules mentation of existing Agreements, including the governing world trade, are an important part of critical negotiations to expand the WTO’s the Bush Administration’s overall trade strategy in membership to include new members seeking to ensuring global growth and economic prosperity. reform their economies and join the rules-based In addition to work on the DDA at Cancun, Trade system of the WTO. Ministers approved the accession protocols of Nepal and Cambodia, the first least-developed The General Council and The Trade countries to join the WTO since its establishment Negotiations Committee Pursue The Doha in 1995. Each government now must complete its Development Agenda Preparations for the respective domestic ratification process to Cancun Ministerial Meeting. complete membership. The Trade Negotiations Committee (TNC), established at the WTO’s Fourth Ministerial In addition to the meetings convened in Geneva, Conference in Doha, Qatar, oversees the agenda a series of informal ministerial-level meetings and negotiations in cooperation with the WTO were held in 2003 to engage ministers on the General Council. The TNC met regularly issues. Various regional meetings, from APEC throughout 2003 to supervise negotiations and to ACP and Africa where the Doha negotiations work with the General Council. Annex II identi- were the focus of attention and concern. A series fies the various negotiating groups and special of developed and developing country informal bodies responsible for the negotiations, some of “mini-ministerials” were held in Tokyo, Paris, which are the responsibility of the WTO General Sharm-El-Sheik and Montreal to help shape the Council. The WTO Director-General serves as issues for Cancun, and obtain ministerial direc- Chair of the TNC, and worked closely with the tion. The Doha negotiations were also a topic at Chairman of the General Council, Ambassador various regional meetings, including APEC and Carlos Perez del Castillo of Uruguay. The the G-8 Summit. Chairman of the General Council
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