WORLD TRADE ORGANIZATION RESTRICTED WT/COMTD/SE/M/16 2 November 2006 (06-5269) Committee on Trade and Development Sixteenth Dedicated Session NOTE ON THE MEETING OF 29 SEPTEMBER 2006 Chairman: Mr. Faizel Ismail (South Africa) A. ADOPTION OF THE AGENDA ........................................................................................................ 1 B. DRAFT REPORT TO THE GENERAL COUNCIL ON MEASURES TO ASSIST SMALL ECONOMIES IN MEETING THEIR OBLIGATIONS UNDER THE AGREEMENTS ON SPS MEASURES, TBT AND TRIPS ..................................................................................................... 1 C. PARAGRAPH 41 OF THE HONG KONG MINISTERIAL DECLARATION: MONITORING PROGRESS OF THE SMALL ECONOMIES' PROPOSALS IN THE NEGOTIATING AND OTHER BODIES ........................................................................................................................................ 4 A. ADOPTION OF THE AGENDA 1. The Chairman recalled that the draft agenda for the meeting was contained in Airgram WTO/AIR/2889 issued on 19 September 2006. 2. The agenda was adopted. B. DRAFT REPORT TO THE GENERAL COUNCIL ON MEASURES TO ASSIST SMALL ECONOMIES IN MEETING THEIR OBLIGATIONS UNDER THE AGREEMENTS ON SPS MEASURES, TBT AND TRIPS 3. The Chairman recalled that the Dedicated Session had discussed a draft text of the report to the General Council at an informal, open-ended meeting on Wednesday, 27 September. He said that the informal discussions were useful and that the Dedicated Session was able to provisionally agree on the text of the report. However, after the meeting, some delegations noted that the added text was not sufficiently clear and set out to improve it. The Chairman said that the agreed draft text from Wednesday's meeting and a proposed change by some Members was available to delegations in the back of the room, in the three official languages. 4. The Chairman said that in paragraph 6 it was proposed that the last sentence read as follows: This recommendation is without prejudice both to the identification of other specific measures in due course to facilitate the fuller integration of small economies into the multilateral trading system and to the use of regional bodies as described in this report by other developing country Members. 5. The Chairman asked if the proposed change was acceptable, and if the Dedicated Session could agree on the text of the report. WT/COMTD/SE/M/16 Page 2 6. It was so agreed. 7. The representative of Canada said that his delegation was very pleased to be able to support the Report to General Council, as drafted by the Chairman. He thanked Members which had identified an area of concern and worked positively towards developing a proposal to address the underlying problem. He also thanked Members for their careful consideration of language that had been put forward by the Canadian delegation in previous meetings of the Dedicated Session. He said that while his delegation was very pleased to join the consensus for approval of the report, he would like to make a small procedural comment on the process by which the proposals from the small economies were considered. He said that by allowing Members to table proposals within the Dedicated Session for the purpose of considering them for adoption, the Dedicated Session may appear to be going beyond the guidance laid out in paragraph 41 of the Hong Kong Ministerial Declaration to monitor progress of the proposals in the negotiating and other bodies. Such a process may inadvertently bypass the responsibilities of the committees established to carry out the functions necessary to implement the provisions of the various WTO Agreements. He underscored that the Canadian delegation was fully supportive of Members making use of the Dedicated Session to discuss and formulate common proposals for simultaneous consideration by several negotiating or other bodies. However, he asked that such proposals also be tabled for adoption in those bodies. 8. The Chairman said he was satisfied that the proposals in question had been extensively discussed, both in the Dedicated Session and in the TBT, SPS Committees and the TRIPS Council. He recalled that ample opportunity had been given to the consulted bodies to guide the discussion on the proposals and that the proponents had subsequently revised their proposals to take into account the comments made in those bodies. He believed that all questions raised by Members in the consultations were addressed and that their concerns were taken into account in the draft of the report. He said that the CTD in Dedicated Session was a body which had the power to take decisions and make recommendations to the General Council in its own right. However, because the matters discussed in the Dedicated Session touched upon issues that were of concern to other bodies, the Dedicated Session consulted those other bodies and the results of those consultations were taken into account in the drafting of the report. 9. The representative of the United States said that her delegation supported the text of the draft report. She also shared the procedural concerns raised by the representative of Canada. She urged the Dedicated Session to exercise caution when adopting decisions on issues where other committees had direct responsibilities. She said that it was not just a question of consulting these other bodies but also of being mindful that they also had the right to take decisions. 10. The representative of Australia said that her delegation also supported the adoption of the Report to the General Council on Measures to Assist Small Economies in Meeting their Obligations under the Agreements on SPS Measures, TBT and TRIPS. She believed the report demonstrated the desire and commitment of small economies to comply with their WTO obligations, which should be supported and acknowledged. She thanked the proponents for the flexibility that they had shown in addressing concerns that other Members had raised. She also shared some of the procedural concerns that had been raised by the Canadian delegation. However, having listened to the response provided by the Chairman, she agreed with his assessment of the situation concerning the report. She thought the Dedicated Session should be mindful of the procedural concern that had been raised in carrying out its future work. 11. The representative of Costa Rica said the recommendation would help small economies to comply with their WTO obligations in the areas of SPS, TBT and TRIPS. The recommendation was an adequate response to a trade-related problem identified by the proponents and helped with their integration into the multilateral trade system, without creating a new sub-category of Members. He noted that the types of measures proposed in the recommendations should also be available to other WT/COMTD/SE/M/16 Page 3 developing countries. Therefore, he welcomed the clarification introduced in paragraph 6 of the report. His delegation understood that the recommendations in the report did not limit the rights of developing countries to request technical assistance individually. Nor did it oblige donors or the WTO to channel technical assistance solely to regional organizations. 12. The representative of Mexico expressed support for the report to the General Council and welcomed the amendment to paragraph 6 of the report. She noted that the report resulted from discussions, both within the Committees on TBT and SPS and the TRIPS Council, as well as the Dedicated Session. She also noted that the purpose of the recommendations was to help small economies comply with their WTO obligations, without altering the rights and obligations of Members. She highlighted that the report: (i) recognized that Members would continue to be responsible, on an individual basis, for their notifications and for other obligations under the covered agreements; (ii) was in accordance with paragraph 41 of the Hong Kong Ministerial Declaration, which expressly cautioned against the creation of new sub-categories of Members; and (iii) recognized in paragraph 6 that other developing countries may also use regional bodies as described in the report. She said that her delegation joined the consensus in adopting the recommendation and transmitting it to the General Council. She also suggested that the Chairman inform the Chairpersons of the SPS and TBT Committees, and TRIPS Council, about the adoption of this decision by the Dedicated Session. 13. The representative of Barbados on behalf of the small economies accepted that the procedural concerns that had been raised by some delegations were important. However, he agreed with the analysis of the situation made by the Chairman. On behalf of the small economies, he thanked the Chairman, the Secretariat and the former Chairman of the Dedicated Session for the impartial support that had been given throughout this process. He also thanked the delegations of the European Communities, Canada, the United States, Colombia and India for helping with suggestions for specific language to be included in the report. He expressed support for the suggestion made by the representative of Mexico to inform the Chairmen of the SPS and TBT Committees and TRIPS Council. He noted that the report reflected the intention of small countries to honour and respect their responsibilities in the WTO, with the help of WTO technical assistance and capacity-building programmes. 14. The representative of the Solomon Islands said that for small-island countries in the Pacific, regionalism constitutes the only way to ensure that their obligations under the SPS and TBT and TRIPS Agreements were effectively implemented. He, therefore, looked forward to a favourable consideration by the General Council of the report and recommendations. 15. The representative of Antigua and Barbuda said that the adoption of the report sends an important positive signal to constituencies in small countries that the WTO is making progress in addressing the trade-related problems of small economies. Therefore, there was value in the multilateral trading system for the small economies and their development. 16. The Chairman proposed that the CTD in Dedicated Session take note of all the statements that had been made. He also proposed that the CTD in Dedicated Session adopt the Report to the General Council on Measures to Assist Small Economies in Meeting their Obligations under the Agreements on SPS Measures, TBT and TRIPS and forward it to the General Council for its 10 October 2006 meeting. 17. It was so agreed. WT/COMTD/SE/M/16 Page 4 C. PARAGRAPH 41 OF THE HONG KONG MINISTERIAL DECLARATION: MONITORING PROGRESS OF THE SMALL ECONOMIES' PROPOSALS IN THE NEGOTIATING AND OTHER BODIES 18. The Chairman recalled that the monitoring role of the Dedicated Session was part of the two-track approach on small economies contained in paragraph 41 of the Hong Kong Ministerial Declaration. He also recalled that at the last meeting, the Dedicated Session requested the Secretariat to prepare, for discussion, a compilation paper on the proposals by the small economies in the negotiating and other bodies. However, given the fact that the negotiations had been suspended, he suggested that the Dedicated Session revert back to the discussion of this item at a future meeting. He asked whether this would be agreeable to Members. 19. The representative of El Salvador noted that the small economies had introduced a proposal in the Committee on Subsidies and Countervailing Measures (SCM) and that it was still being discussed. He requested that the monitoring process include those proposals that were still being examined in the regular WTO bodies. 20. The Chairman said that he was in the hands of Members on how to proceed with the monitoring of proposals by the small economies in the negotiating and other WTO bodies. 21. The representative of Barbados said that he agreed to suspend the Dedicated Session's monitoring of the proposals in the negotiating bodies. However, he was not aware that there was any suspension of discussions in the other bodies. Therefore, the Dedicated Session should not suspend the monitoring of any of the small economy issues which were being discussed in WTO bodies. 22. The Chairman made two suggestions on how the Dedicated Session should proceed with the monitoring process. The first suggestion was to request the Secretariat to compile the proposals that concern small economies that are before the WTO bodies that are not negotiating bodies. The second suggestion was that the Dedicated Session review at its next session the situation regarding the negotiations and discuss whether it would be useful to have the Secretariat prepare a compilation of all the proposals that had been submitted to the negotiating bodies. The compilation would then be discussed at the following meeting of the Dedicated Session. 23. The representative of the European Communities said he did not object continuing the monitoring of proposals by the small economies that were before the regular WTO bodies. On the basis of document WT/COMTD/SE/W/21/Rev.1, he believed that the proposals in the SCM Committee and the Working Party on Domestic Regulation should continue to be monitored. He also saw merit in the Chairman's proposal to discuss at the next meeting of the Dedicated Session whether there would be any value in continuing the monitoring of the proposals in the negotiating bodies. 24. The representative of Colombia clarified that the discussions in the Working Party on Domestic Regulation had also been suspended, although that body was not considered to be a DDA negotiating body. 25. The representative of Barbados noted that the request for a paper by the Secretariat at the previous meeting was intended to go beyond a mere compilation of the proposals. He said that the objective of the paper was to take into account the discussions, the minutes and the chairpersons' reports in the negotiating and other bodies and to give delegates in the Dedicated Session an overview of what was happening in those bodies. He said that his delegation supported the proposal to continue monitoring the proposals in the regular bodies and to re-evaluate the situation with respect to the monitoring of proposals in the negotiating bodies at the next meeting of the Dedicated Session. WT/COMTD/SE/M/16 Page 5 26. The Chairman said that the monitoring idea mandated in Paragraph 41 of the Hong Kong Ministerial Declaration was to use the Dedicated Session to add value to the process without the Dedicated Session becoming a forum for negotiations. He requested the Secretariat to prepare a compilation of all the proposals made by the small economies which were being discussed in the regular WTO bodies. As for the proposals in the negotiating bodies, the Dedicated Session would review the situation at its next meeting. He asked whether this was agreeable. 27. It was so agreed. 28. The meeting was adjourned. __________