According to a note circulated to trade diplomats in Geneva the week of April 8-12, the WTO's next ministerial meeting will take place in September or October of 2003, as per the recommendations of Mexico, host of the next (fifth) Ministerial Conference. The venue of the meeting has not been selected, although the choice has been narrowed down to Acapulco or Cancun. The US and the EU had pushed for the Ministerial to take place in the middle of 2003 in order to coincide with the mid- point of the Doha round of trade talks, but Mexico said this was impossible because of local elections taking place at that time. Under WTO rules, Members are obliged to hold a Ministerial Conference -- the organisation's highest decision-making forum -- at least once every two years.

"Mexico Suggests September or October For Date of 2003 WTO Ministerial Meeting," WTO REPORTER, 17 April 2002.

WTO Working Group On Trade, Debt And Finance Gets Underway

Formed under the mandate of the Fourth Ministerial Conference in Doha last November, the WTO's Working Group on Trade, Debt and Finance (WG- TDF) met for the first time on 15 April -- with Amb. Hernando Jose Gomez (Columbia) presiding as Chair. The first part of the WG-TDF discussed a possible work programme for 2002. It was decided that the initial focus would be on trade and finance, and the second on trade and debt. The substance of the latter part of this programme ran into some difficulties, however, as the topic title to be used came under contention. This, noted one source, reflected divisions over how to approach the mandated work on trade and debt. A group of developing country Members, including India, sought a title (and substantive focus) that reflected its belief that trade measures could in fact provide a solution to debt problems. On the other hand, certain developed country Members, led by the US, held that any topic title should not imply that trade can either cause or solve debt problems.

While not falling under the single-undertaking of the Doha Mandate, the WG-TDF is accorded "a high priority" (Doha Ministerial Declaration para. 52) and shall report on its progress at the Fifth Ministerial Conference in 2003.

Chairperson Gomez indicated he would hold further consultations on the work programme. The WG- TDF next meets on 11 and 12 July, then again on 30 September and 17 December.

"No Accord Yet on Work Programme in Debt, and Technology," SUNS, 17 April 2002; ICTSD Internal Files.

Canada Tables First Negotiating Paper On WTO Trade Remedy Reform

In the first paper to be circulated to the WTO Negotiating Group on Rules, Canada on 15 April forwarded a position paper to other WTO Members on improvements and clarifications of the Agreement on Subsidies and Countervailing Measures (SCM) and the Agreement on Antidumping. In its two-page communication (WTO document TN/RL/W/1, searchable at http://docsonline.wto.org/ gen_search.asp) submitted to the newly established negotiating body, Canada points at "certain gaps/deficiencies in the fabric" of WTO rules which "have led to divergent interpretations and practices" in the use of such measures. Focussing primarily on subsidies, Canada deplores the end- 1999 expiration of both the 'deemed serious prejudice' provisions (SCM Article 6.1) and WTO provisions on non-actionable subsidies (Articles 8 and 9). In order to maintain the "traffic light framework of the SCM Agreement" -- i.e. green for non-actionable, amber for actionable, and red for prohibited subsidies -- the proposal suggests that "a non- actionable subsidy category should again be pursued." Further, Canada emphasises that it "remains concerned about efforts to fragment subsidy disciplines on a sector-by-sector basis," thereby addressing the ongoing debate of whether to address the issue of fisheries subsidies separately or under "generic rules/disciplines". Paragraphs 28 (WTO Rules) and 31 (Trade and Environment) of the Doha Declaration both reference fisheries subsidies, though the mandate for this sector falls under Rules. Regarding antidumping and countervailing measures, Canada generally suggests strengthening trade remedy rules with respect to procedural aspects, enforcement, the "consideration of broader public interest" as well as the review of already existing antidumping and countervailing duties. Doha Declaration Article 28 mandates Members to enter into "negotiations aimed at clarifying and improving disciplines" under the SCM and Antidumping Agreement. Members adopted this negotiating mandate last November in Qatar despite initial resistance from the US, an active user of trade remedy methods.

"Rules: Canada Calls For Improved WTO Rules On Subsidies, Trade Remedy Measures," WTO REPORTER, 18 April 2002.

Panel Established in US-Mexico Telecom

At a 17 April meeting of the WTO's Dispute Settlement Body (DSB), a trade panel was established following a US second request to have Mexico's practices vis-à-vis US cross-border basic telecom suppliers assessed by the WTO (see BRIDGES Weekly, 26 February 2002, http://www.ictsd.org/ weekly/02-02-26/story6#2.htm). The US alleged in its request (see WTO document WT/DS204/3, searchable at http://www.wto.org/english/info_e/search_e.htm) that Mexico was in violation of its commitments under the General Agreement on Trade in Services (GATS) Annex on Basic Telecommunications as well as under the so-called Reference Paper, as it had not: (i) ensured that US carriers can connect their calls to Mexico at reasonable rates, terms and conditions; (ii) ensured that US firms have reasonable and non- discriminatory access to and use of Mexico's telecom network; (iii) provided national treatment to US-owned commercial agencies; and (iv) prevented Mexico's dominant carrier from engaging in anti-competitive practices. The Reference Paper (viewable at http://www.wto.org/english/tratop_serv_e/telecom_e/tel23_e.htm) was previously used during the post-Uruguay Round (UR) negotiations on basic telecom services as a tool in deciding what regulatory disciplines to undertake as additional commitments. As such, the Reference Paper has no legally binding nature, but it can create new commitments if integrated into a Member's schedule on basic telecoms (see also services-related story, this issue). Mexico has formally inscribed the obligations contained in the Reference Paper in its schedule on telecommunications services (GATS/SC/Suppl.2), but categorically rejects the US' claim while accusing the US of "inventing disciplinary violations" so as to obtain more favourable conditions for its national telecommunication companies. Just recently at an 8 March DSB meeting, Mexico had blocked the US' first request for the establishment of a WTO panel. A second request cannot be blocked and automatically establishes a DS panel.

ICTSD Internal Files.

WTO Report On Anti-Dumping Activity Highlights Major Trade Remedy Users

On 22 April, the WTO Secretariat reported on anti-dumping (AD) activity for the period 1 July to 31 December 2001. During this period, the report shows, 19 Members initiated 186 anti-dumping investigations against exports from a total of 55 different Members. The WTO Agreement on Anti- Dumping allows measures to be applied to an import that can be demonstrated to be causing "material injury" to the domestic industry for that import. For this to occur, the importing government has to determine that dumping is taking place (i.e. goods are being sold below production costs), and that the alleged dumping is in fact causing injury to the domestic market. During the period of the report, 121 investigations were initiated by developing countries, with developed countries initiating 65. On a per-country basis, approximately 1.2 investigations were launched per developing country Member and approximately 1.5 per developed country Member. With respect to final measures applied (resulting from the 186 investigations), eight Members imposed 79 final measures against exports from 33 Members (with the US & India imposing 21 and 22 final measures respectively). Specifically, developing country Members imposed 33 final measures, while developed country Members imposed 46 -- which on a per-country basis translates into 0.33 per developing country Member, and 1.04 per developed country Member. On the receiving side of the equation, exports from developing countries (including transition economies and China) were the subject of 135 investigations, while exports from developed countries were the subject of 51 initiations. China, with 25 investigations on its exports, comes in at the top of the list of countries subject to anti- dumping investigations. The key sectors of focus in these investigations were base metals, such as steel (with 60 instances), chemicals (41 instances), and plastics (34 instances). Out of 35 investigations launched by the US, 33 were related to products in the base metals category.

The anti-dumping semi-annual reports by Members for the period 1 July - 31 December 2001 can be found under document series G/ADP/N/85 via the WTO's online documents search page at http:// docsonline.wto.org.

"WTO Members Report On Anti-Dumping Activity," WTO, 22 April 2002; ICTSD Internal Files.