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Info Service on WTO and Trade Issues (Feb26/09) Geneva, 9 Feb (D. Ravi Kanth) — The Saudi Arabian chair of the World Trade Organization’s General Council (GC) issued a draft “MC14 Ministerial Declaration” on 5 February, calling it a “minimalist zero draft” for members’ consideration. The document was prepared for the WTO’s 14th ministerial conference (MC14), to be held in Yaounde, Cameroon, on 26-29 March. The draft appears to be a “sanitized, toothless” declaration that fails to address the central problems confronting the multilateral trading system, particularly how the Trump administration’s unilateral reciprocal tariffs have seemingly upended the WTO, said people familiar with the development. Fearful of likely US pushback against any mention of its unilateral reciprocal tariffs – which have allegedly breached Articles I and II of the GATT/WTO rules – the GC chair, Ambassador Saqer Abdullah Almoqbel of Saudi Arabia, issued a restricted room document (RD/GC/48) under his own responsibility. The document attempts to avoid line-by-line discussion of the substantive issues facing the multilateral trading system in general, and the WTO in particular, said people who preferred not to be quoted. Although a room document is meant only for discussion, the GC chair’s latest document, seen by the SUNS, states that: “it seems worthwhile to develop in Geneva a brief, high-level political declaration for Ministers’ endorsement at MC14.” The chair adds: “A consensual Ministerial Declaration would send an important signal about our shared commitment to the WTO, and the MC14 host country and continent also merit a genuine attempt from all of us in this regard.” However, the draft overlooks a fact-based global outlook, said a trade envoy who asked not to be quoted. “As mentioned in my report,” the chair said, “if we want to succeed, we need to proceed with caution and do things differently from the past.” This implies that if the document were to highlight members’ concerns about the current state of the WTO, it could backfire and there would be no outcome document for MC14, said people familiar with the development. The chair argues that “the annexed minimalist zero draft is my attempt at devising language that I believe could serve as a basis at this juncture for a possible consensual document for Ministers’ endorsement.” According to the chair, “In line with Members’ views, the draft is limited to areas where I perceive potential for convergence and it focuses on sending a positive, forward-looking, high-level political message about the importance and continued relevance of a meaningfully reformed WTO.” Members seem concerned about the chair’s emphasis on WTO reforms while seemingly neglecting several important issues, such as restoring the two-tier dispute settlement system to safeguard members’ interests in the face of alleged unilateral violations of the WTO rules by powerful countries like the United States, said people familiar with the development. Further, he does not appear to have taken members’ concerns into account when stating that “the annexed draft is being issued in my role and under my responsibility as General Council Chairperson, without prejudice to Members’ views and positions.” “As foreseen in my report, Members are now invited to vet this minimalist draft language, and to suggest improvements in a constructive spirit, as part of an open, transparent, and inclusive process over the coming weeks,” the chair maintained. The chair also argued that from his “exchanges with Members, it is clear that there is no readiness to repeat the “outcome document” exercises in the lead-up to recent Ministerial Conferences or engage in line-by-line negotiations.” However, it is unclear how many members made this suggestion, as line-by-line negotiations could reveal where they stand on the central issues confronting the multilateral trading system and the WTO. The chair said that in his “consultations held last November, virtually all Members stressed the need to avoid a prolonged, potentially acrimonious process that could drain limited resources, distract attention, and risk dividing the membership at this important juncture.” But without an honest discussion among members, the real issues could be buried, argued a former African trade envoy. The chair, however, stated: “the draft does not intend to address specific substantive issues, and I do not intend to engage myself or the wider membership in a process to negotiate language on such issues, or to assist in what many described as a “wish list approach”.” In a footnote to his document, he said: “As indicated in my report to the December General Council meeting, the ultimate lack of highlighting specific substantive issues, including in a possible MC14 Ministerial Declaration, does not entail leaving behind any priority areas on which discussions and negotiations will certainly continue post-MC14. Some of these were covered in statements and reports at the December General Council meeting, including in the inputs provided by Chairpersons of the negotiating groups and regular WTO bodies. Also, in my capacity as General Council Chairperson, I will be reporting to Ministers in Yaounde, stressing the need for continued work in these areas.” He assured members that he is “not foreclosing the possibility of specific substantive issues being ultimately covered – provided that proponents bring forward any proposed additions to the annexed draft with language on which they will have previously secured consensus.” “Based on my consultations, I am convinced that this is the only way to avoid a repetition of past experiences and to secure a draft that is acceptable to all,” he insisted. Explaining the structure of the draft, the chair said, “the first seven numbered paragraphs intend to capture the high-level political message.” The “unnumbered paragraph (paragraph X) serves as a placeholder for language on any substantive issues in regard to which proponents may secure consensus,” the chair said. “The final numbered paragraph (currently paragraph 8) is meant to welcome the various, more specific decisions and declarations that may be adopted by the Ministerial Conference,” the chair maintained. He informed members that “subject to progress over the coming period, I am planning to announce a specific deadline by which to conclude our exercise here in Geneva, in line with our “Geneva First” principle.” The chair also warned that, as foreshadowed in his report, “if even a minimalist consensual text should elude us by that deadline, I will avoid further protracting the process and report to Ministers that the only viable outcome in this context could be a statement to be prepared and issued by the MC14 Chairperson under his own responsibility.” DRAFT DECLARATION In the annex to the chair’s explanatory assessment, the draft Yaounde Ministerial Declaration includes the following language: 1. We recognize the WTO’s important contributions to our trade relations and its key role in global trade. In a rapidly evolving international environment and given mounting global challenges, we pledge to continue working together constructively in a Member-driven, open, transparent and inclusive manner towards a comprehensive and meaningful reform of the WTO, under the guidance of the Ministerial Conference and the auspices of the General Council, to make the Organization more fair and responsive. 2. We emphasize the importance of the WTO making a meaningful contribution to the economic growth and development of all Members, including developing and least developed country Members, in a manner consistent with their respective needs and concerns. 3. We acknowledge that trade in agriculture is vital for job creation, global food security and resilience for all Members, including net-food importing developing country Members and least developed country Members. 4. We underscore the growing importance of services and digital trade to the global economy, and their critical role in providing a stable environment for economic growth and development and tackling global challenges. 5. We celebrate the entry into force of the Agreement on Fisheries Subsidies, and support its full implementation. 6. We remain committed to enhancing the inclusiveness of the WTO through continued work to secure effective participation in the multilateral trading system and its benefits. We welcome all efforts in this regard, including towards facilitating the integration of all Members, in particular least developed country Members, into the multilateral trading system, and towards expanding the membership of the Organization in accordance with Article XII of the Marrakesh Agreement. [X. placeholder for additional language on any substantive issues in regard to which proponents may secure consensus] 8. We welcome the decisions and declarations adopted by the Ministerial Conference as follows: – [list of more specific decisions and declarations to be adopted by the Ministerial Conference] +
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