Developing Countries in the Doha Round WTO Decision-making Procedures Ernst -Ulrich Petersmann and Negotiations on Trade in Agriculture and Services edited by edited by Ernst-Ulrich Petersmann Developing Countries in the Doha Round € 15,00 (Europe) € 18,00 (other destinations) [email protected] www.iue.it/RSCAS/Publications Robert Schuman Centre for Advanced Studies European University Institute European University Institute Robert Schuman Centre for advanced studies Developing Countries in the Doha Round WTO Decision-making Procedures and Negotiations on Trade in Agriculture and Services Edited by Ernst-Ulrich Petersmann Robert Schuman Centre for Advanced Studies European University Institute Florence, Italy © 2005 Robert Schuman Centre for Advanced Studies; selection and editorial matter © Ernst-Ulrich Petersmann; individual chapters © contributors. All rights reserved. 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For further information: Transatlantic Programme Robert Schuman Centre for Advanced Studies European University Institute Via delle Fontanelle, 19 50016 San Domenico di Fiesole (FI), Italy Fax: + 39 055 4685 770 E-mail: [email protected] www.iue.it/RSCAS/Research/Transatlantic/ iii Table of Contents WTO Negotiators Meet the Academics: Developing Countries in the Doha Round – Foreword H. E. Ambassador Eduardo Pérez Motta ............................................................... 1 Introduction and Summary Ernst-Ulrich Petersmann ........................................................................................... 3 Part I Transatlantic Programme Annual Lecture ......................................... 49 The Future of the World Trade Organization Peter D. Sutherland .................................................................................................. 51 Part II WTO Decision-making Procedures, "Member-driven" Rule-making and WTO Consensus-practices: Are They Adequate? ............................................................................ 61 Chairing a WTO Negotiation John S. Odell .............................................................................................................. 63 Are WTO Decision-Making Procedures Adequate for Making, Revising and Implementing Worldwide and ‘Plurilateral’ Rules? Claus-Dieter Ehlermann and Lothar Ehring ...................................................... 91 Part III Building Blocks for Concluding the Doha Round Negotiations on Agriculture ........................................ 119 How to Forge a Compromise in the Agricultural Negotiations Stefan Tangermann ................................................................................................ 121 Strategic Use of WTO Dispute Settlement Proceedings for Advancing WTO Negotiations on Agriculture Ernst-Ulrich Petersmann ...................................................................................... 143 © 2005 EUI-RSCAS, editor and contributors v Part IV Less-developed WTO Members in the Doha Round Negotiations.................................................................. 161 Operationalizing the Concept of Policy Space in the WTO: Beyond Special and Differential Treatment Bernard Hoekman .................................................................................................. 163 Can WTO Technical Assistance and Capacity Building Serve Developing Countries? Gregory Shaffer........................................................................................................ 185 Developing Countries’ Issues in the Doha Round Negotiations: Comments H.E. Ambassador Matthias Meyer ...................................................................... 219 Traditional Knowledge and Geographical Indications: Foundations, Interests and Negotiating Positions Marion Panizzon and Thomas Cottier................................................................ 227 Part V Doha Round Negotiations on Services Trade ................................. 269 Developing Country Proposals for the Liberalization of Movements of Natural Service Suppliers L. Alan Winters ........................................................................................................ 271 Navigating between the Poles: Unpacking the Debate on the Implications for Development of GATS Obligations Relating to Health and Education Services J. Anthony VanDuzer ............................................................................................. 291 Negotiations on Domestic Regulation and Trade in Services (GATS Art. VI): A Legal Analysis of Selected Current Issues Joel P. Trachtman .................................................................................................... 329 Conference Agenda ......................................................................................... 345 List of Contributors......................................................................................... 347 vi © 2005 EUI-RSCAS, editor and contributors WTO Negotiators Meet the Academics: Developing Countries in the Doha Round Foreword What has been called, for some time now, the development dimension of trade negotiations has always been a touchy subject, ripe with deeply held and seemingly immovable positions. Development within the WTO means very different things to different people. For some, in the roughest terms, it is centred on the realization that opening up to international trade and investment flows can bring a powerful boost to growth and higher living standards in poorer countries. A related broad position is focused on the internal policy discipline brought about by enacting multilateral commitments, a discipline which helps balance domestic interest groups. Others (again in very broad terms) emphasize that the effort of development needs to be supported by preferential treatment and exemptions from obligations. Within this current, there are different opinions on how deep this special treatment should go and how long it should be sustained. I, for myself, believe that we cannot build a truly multilateral trading system where the emphasis lies on carving out exemptions and finding ways to avoid commitments. It is clear that freer trade must be married to deep internal reform in order to deploy its considerable benefits, and that this reform is often difficult. This is why transitional periods—fixed and credible—are needed, and why flexibilities— precisely defined and limited—have to be found to make sound policy politically feasible. But if one goes around forever avoiding the pain of reform, it is very likely that development will be slow in coming, if it comes at all. My own country, Mexico, has learned this the hard way. We started our own trade opening in 1986, in the middle of deep economic crisis brought about by © 2005 EUI-RSCAS, editor and contributors 2 EDUARDO PÉREZ MOTTA years of mismanagement, cronyism and overregulation. There were—there still are—powerful interests opposed to reform, but international commitments, both multilateral and regional, have helped offset these forces and create the internal constituencies that support free trade, clear rules and a lean state. Almost twenty years later, Mexico is the world’s eighth trading power, and annual export growth of 12% on average over the past 10 years has been responsible for half of total GDP growth during that period. Of course, these results would be even better with the adoption of additional outstanding reforms. Wherever one stands on the trade and development debate, what seems to be clear is that the development dimension has to be solved for the multilateral trading system to maintain its strength and, more immediately, for the Doha Round to arrive to safe port. This is not an issue we can dodge anymore. And the only way I know of solving it is through open-minded discussion, aimed at abandoning entrenched positions,