Financing for Development PrepCom
Wednesday, 16th of January, 2002
Morning Session 10:00 – 1:00 pm

 

Chapter 3 Trade

Paragraph 23

EU -  Like the paragraph, don’t disagree with it, but would like to see explicit reference to the Doha development agenda included in the last sentence of the paragraph

Canada will be submitting suggestions in writing

US – wants to make the text consistent with Doha, could’ve accepted it as is.  Yet, thinks it is important to use phrase such as  “system that embodies those characteristics is required”, as it has less of a negative connotation.  Why does G77 want to exclude “Welcome the WTO’s decision..”?  Would like to keep it.

Ukraine -  Agree with US, reference to Doha agreements essential.  Would like to add to the third sentence, and use exact wording from Doha

Dominican Republic – Would like reference to WTO launching new trade agenda, support the introduction, add “transition” as well as “developing” countries

Hondurassupport the position of G77, reference to Doha okay, but some pending issues from Uruguay round.  Would like to move onto next stage, too many trade barriers, want a non-discriminating way to have trade worldwide—fundamental aspect to move forward on.  Plan set up by Fox—to give greater importance to international trade agreements, signed agreements with Mexico, would like to do the same with US and Mexico.

NGO Caucus – The phrase “Freer trade would substantially stimulate development worldwide…” isn’t true.  When richer countries open markets to poorer ones it is, but when it is visa versa.  Then there are problems such as de-industrialization, etc.  Propose that the first line be changed to be more accurate, “Equitable, sustainable, and gender sensitive…”  In the second line, the commitment should be towards equitable and sustainable development.  The third line, agree with G77 to change because its not accurate.  The term “new round” as controversial (doesn’t appear in the Doha meeting), what does “new round” mean?  Should instead take text from Doha agreement.

Turkey – Problem with the classification of countries according to development level. 

Only industrial and developing countries have been identified, but according to the WTO there are 3 levels of classification: industrial/developed, developing and least developed.

Paragraph 24

Venezuela (on behalf of G77 & China) – the paragraph contains important ideas but wants to make clarifications and distinctions.  Would like to add adjectives to give greater force to ideas.  Want a separate paragraph in line with comments in 24, but in reference to countries with smallest economies.  After paragraph 24, would like 2 new paragraphs following.  The first would be based on the ideas if 24, developing, “as well as countries with economies in transition.”  In the second sentence of 24, would like to change the word “fundamental” to “meaningful.”  In the third sentence add comment on trade barriers.  For the last sentence, would like to clarify by adding “could boost,” and “could play an important role in new employment.”  A new paragraph would include information on a global fully funded programs to assist developing countries, especially Africa.  The last paragraph would deal with LDCs and wanting to improve their position in trade through WTO programs of work agreed upon in Doha.

EU – There are merit in the ideas of the paragraph, but will give written version of suggestions.  The last sentence is problematic because “active promotion of exports” could be a reference to subsidies, it should be replaced by “increased access to foreign markets…”  Also thinks there should be another reference to sustainable development in the paragraph which could recall that trade liberalization is necessary but not enough for sustainable development, there also needs to be in conjunction with trade liberalization environmental protection, social protection, sound economic policy, etc.  Would like to add the idea that exports and imports are important contributions to development.  Would like to add comment on poverty reduction papers, and be careful to respect the spirit of what was agreed upon at Doha.

Belarus – In the first sentence, would like to downplay the word “must.”  Last sentence should be expanded to include now just employment but international trade as well.

Turkey – Comments on the second sentence’s reference to trade liberalization.  In accord with general idea, but trade liberalization doesn’t cover the approach we should be taking.  Would like to add “among other relevant policy instruments.”

Azerbaijan – Would like to make paragraph more precise; agrees with Belarus that the word “must” in the first sentence is too much, impolite—change to “need.”  Would also like to change order of sentences, and put the second and third before the first. 

US – In the first line, trade isn’t the most important source of financing, replace with “international source.”  In the last sentence, would like to replace “active promotion of exports” with “active promotion of trade” to get away from the idea of subsidies, and would like to include exports and imports.  On G77’s comments, developing countries being provided with technical assistance dilutes nation’s responsibility, we have later paragraphs to discuss technical assistance.

Mexico – Thinks that the comments in the paragraph could be weightier if we began with the second sentence on trade liberalization and included a reference to the role of trade to creating greater resources for combating poverty.

Thailand – Supports comments of G77 and China; trade liberalization isn’t good enough on its own for quality growth—it has to be supported.  Would like to add the word “reform” as in “process of reform and trade.”

Japan – Wants the wording to be consistent with Doha agreements.  The promotion of trade is important, however, doesn’t want to take up issues of WTO in FfD meetings.  Would like to see reference to trade related capacity building, wants to see concrete evidence of technical assistance, add sentence at the end that includes on how  importance of trade related capacity building should be emphasized and mainstreamed and extended to developing countries. 

Honduras – International trade is a means, not an objective.  Endorses EU to achieve sustainable development, supports G77 proposal.  Would like to add development objectives. 

Dominican Republic – Support G77.  Agree that “must” in first sentence too strong.  Wants to link paragraph to Millennium Objectives.

Russian Federation – Support Belarus and Azerbaijan that it isn’t good to imply obligation with the word “must”, should instead frame it as a recommendation.
Agree with Japan in that we need to use terminology that we have been using, as this is an UN conference, and now use WTO terminology.

International Chamber of Commerce – Would like to address issues of linkage, the relationship between trade and FfD.  Linkage between promotion of foreign direct investment and trade facilitation.  Foreign direct investment will only take place in an enabling environment.  Linkage should be added to the paragraph.  In order to attract foreign direct investment, developing countries need to facilitate trade practices.

Labor Caucus – There should be a reference to informal economy.  In the last sentence add, “boost equitable economic growth, create quality employment, solid national production system.”

Paragraph 25

Venezuela – Importance of the solidarity of the group.  Any idea that implies breakdown of different compartments isn’t true politically.  In terms of paragraph 25, the ideas are already presented in 24 and should therefore be eliminated.

EU – Wants to propose the deletion of the word “only” in the first sentence, to make it more positive.  Problems with the last part of the paragraph—it addresses Doha issues but gives an unbalanced view and doesn’t represent consensus interest.  “Subsidies” too broad and too narrow.  “Eliminated” not acceptable.

US -  Likes the paragraph as drafted

Japan – Isn’t necessary to compare negative effects of trade barriers in developing countries and aid flows.  Would like to simplify the second sentence.

Republic of Korea – Agree with EU and Japan that paragraph 25 needs to be revised—its gone too far.  The second sentence should be simplified—“Trade…measures must be reduced or as needed  eliminated.”

Australia – Likes the paragraph, would like to keep it or the sentiments reflected within it.

NGO rep – Didn’t get a chance to comment on 24—First sentence: trade can take away from financing as well, identifying fallout of trace, draining away funding for sustainable development.  A last line should be added to say that there can be positive and negative effects of export liberalization.  In terms of paragraph 25, would like a reference to imbalances in the trade system.  Wants to emphasize that liberalization isn’t everything and that developed countries should improve liberalization.

 

Paragraph 26

Venezuela – Would like to add some additions to the bullets.  First bullet: “…measures, tariff and non-tariff and technical measures…developing countries, especially the least developed countries with economies in transition to the WTO.”  The second bullet: Multilateral rules must provide for greater trade.  “Liberalized trade in all products, in particular agricultural…provisions for developing countries in trade agreements.”  In the last bullet, want to retain central idea.  Would like : “…recognition of the need for protection of trade knowledge… innovate, and to build the capacity of indigenous technology…”  “WTO members…to fulfill their obligations…adopted at the negotiations.” (Wants to refer not only to Doha, but at what took place before.)

EU – The text gives the impression that only certain issues are important to development, the language used isn’t in conformity with Doha’s outcome, would like to suggest a reference to Doha and commitments made without references to specific issues.  “To ensure…goals we will faithfully implement the Doha agenda.”

Russian Federation – Just editorial proposals—place “non-discriminatory” at the end of the paragraph, instead of after “facilitate.”

Thailand – Support G77.  But in 3rd bullet, would want “traditional knowledge and folklore,” as well as a reference to geographical indicators.

US – Going to provide long list of suggestions in writing.  Agrees with G77 – could accept an expanded list that they proposed or eliminate the reference to antidumping measure.  Would like to add “non-discriminatory and commercial terms.”  Also at the end of first bullet, include transition countries that have applied for WTO membership.  Second bullet: eliminate export, and want s to clarify “accelerate the elimination of trade barriers of all countries,” not just developing countries.  Would go further and say “reduce or eliminate tariff peaks.”  Would want to completely redo bullet three.  Promote Trips agreement and its flexibility in addressing health needs of developing countries.  Like the EU’s suggestion to eliminate all this for one sentence.

Japan – Language should be in line with the wording of the ministerial declaration of the WTO, will submit amendments in writing.  Agree with the EU.

Turkey – Reference be made to Doha ministerial declaration,  Four points redefined or reworded.  “Strengthen the rules and disciplines” to “Clarify and improve,” in the 2nd bullet, “export subsidies” to “all forms of subsidies,” “production subsidies” to “trade distorting domestic supports,” “elimination of tariffs” to “reduction of tariffs with a  view of phasing out…”

Korea – Needs and interests of developing countries should be addressed

Mexico – Wants to reflect agreements made at Doha.  Subsidies cause distortions in international markets, in addition to reduced tariff peaks, wants a reference to reduction or elimination.  In the last bullet, instead of “respecting,” “reporting.”

Australia – Bullet 3: “providing incentives to innovate,” as first sentence.

Labor Caucus – wants to include specific reference to respect for migrant worker’s rights under employment.

NGO rep – First sentence on implementation-recognition that developing countries have been trying to get WTO to resolve implementation.  Instead of “secure full implementation,” “resolve problems of implementation of developing countries in WTO effectively and rapidly” Add consider reforming Trips agreement, rights of countries to take measures to protect public health.  Add fourth bullet point, to ensure measures to protect livelihood for farmers, especially women, measures that promote jobs…

Paragraph 27

Venezuela – add “give support to protect the projects”

EU -  Fine with the paragraph as is.

Poland – Add two words in last sentence…”integration among developing and transition countries.”

Russian Federation – Wants to extend 27 to transition countries also

Azerbaijan – supports Russian Federation in extending to transition countries, delete “sub-regional” in 2nd sentence

US – We shouldn’t decide on priorities for institutions, rephrase to say that they are “invited” to give priority

Australia – Concerned that the wording promotes regional trading blocks, agrees with the US.  Thinks there should be complete deletion of paragraph.

Mexico – to clarify 27, it should refer to regional and sub-regional free trade agreements should support, rather than construct a “global” trading system, should use “world” trading system, to make sure we’re clearly talking about the WTO.

Paragraph 28

Venezuela – Add “immediate steps to benefit developing countries, especially Africa…”

EU – There is a problem in that the paragraph confuses issue of market access for least developed countries vs other developing countries—language should be modified to cover this.  Text is also unclear as to small island, land locked, transit countries.

Japan – Comment on first part of paragraph: reference is made to access of developing country exports in general, which is confusing. 

Russian Federation – Would like to extend provisions of 28 to transition countries, we shouldn’t anticipate the outcome of negotiations.

US – Support the EU, LCD treatment should be separate in this document.  Eliminate last two words of paragraph.

Ukraine – Add “We stress the need to speed up our efforts…”

NGO Women’s Caucus – comment on New Partnership for Africa’s Development: replace with “Africa’s development”

Paragraph 29

Venezuela Wants to retain central ideas, should include some new ideas.  “…In order to improve their terms of trade and sustain their balance of payment.”  Add fully funded programs for technical assistance to developing countries, make in line with capacity building.

EU Aim for concrete connection to capacity building and technical assistance, 29 isn’t specific or ambitious enough.  Add reference to regulatory assistance, overlap with content of 31, perhaps should merge the two.

Time ran out to finish paragraphs

 

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