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TWN
Info Service on WTO and Trade Issues (Aug26/08) WTO:
Large divergences mark foundational issues Geneva, 7 Aug (D. Ravi Kanth) -- In her report issued on 4 August, the Facilitator on "foundational issues," Ambassador Sumathi Balakrishnan of Malaysia, said that compared to other tracks, the foundational issues track has been less extensive, resulting in less clarity regarding its scope. "Many Members have expressed a desire for a clearer understanding of what this track encompasses," the Facilitator noted. Some members seemingly urged caution given the sensitivities involved, while others emphasized that the track "should not be left behind." To resolve this, many members proposed undertaking a neutral scoping or mapping exercise to clarify the track's scope and objectives, while strongly emphasizing the need to distinguish this track from other reform tracks to avoid duplication. According to the Facilitator, many members emphasized that all contributions - whether oral or written - should receive equal consideration, and that any timelines must account for capacity constraints faced by smaller delegations. A suggestion was made that written questions be submitted to proponents in advance of plenary discussions, with written responses circulated beforehand. However, many members favored a more flexible approach, recognizing that "proposals differ in nature" and that progress could be achieved through multiple channels, including bilateral exchanges and informal consultations. Divergent views For many members, the foundational issues comprise "the core principles embedded in the Marrakesh Agreement that underpin the legitimacy and functioning of the WTO." These include most-favoured-nation (MFN) treatment and non-discrimination, transparency, predictability, consensus-based decision-making, binding dispute settlement, development, special and differential treatment (S&DT), and the balance of rights and obligations reflected in the Marrakesh Agreement. Also, many members seem to have described foundational issues as "treaty-embedded principles that form the constitutional architecture of the multilateral trading system." According to the Facilitator, a significant division has seemingly emerged regarding the track's objectives. "Many Members considered that the purpose of this track should be to reaffirm the WTO's foundational principles rather than to renegotiate or dilute them, arguing that many of the challenges facing the Organization arise from shortcomings in implementation rather than deficiencies in the principles themselves." Conversely, a small group of industrialized countries seem to reckon that the foundational issues should provide an opportunity to examine "whether the existing foundational principles remain fully suited to contemporary realities." Next steps The Facilitator acknowledged that due to time constraints, only the United States' submission was presented, focusing on MFN-related elements. She suggested that members exchanged views focusing on "whether the concerns identified stem from the MFN principle itself, its implementation, existing exceptions, including Article XXIV of the GATT, gaps in existing disciplines, or broader systemic challenges." They also apparently sought greater clarity on "how such reforms would preserve the predictability, stability, and multilateral character of the trading system." The Facilitator confirmed that the next plenary session will resume discussion of the US communication, followed by submissions from the European Union and China. The Facilitator noted that "this track will require sustained engagement over time before reaching decision points." +
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