KEY DEVELOPING COUNTRIES SUBMIT PAPER ON SINGAPORE ISSUES

Twelve developing countries -- Bangladesh, Cuba, Egypt, India, Indonesia, Kenya, Malaysia, Nigeria, Pakistan, Venezuela, Zambia, and Zimbabwe -- submitted a paper in early July on the four Singapore issues of investment, competition, government procurement and trade facilitation (WT/GC/W/501, searchable at http://docsonline.wto.org). The paper responds to an EU paper on modalities (WT/GC/W/491), i.e. the scope of negotiations, the methodology to be followed during the process, and the end-results expected submitted in February (see BRIDGES Weekly, 5 February 2003). The developing country paper stresses that the 'explicit consensus' among Members required to launch negotiations does not exist, and criticises the EU's superficial treatment of modalities, which only lays out procedural matters and lists relevant elements. Instead, the developing countries call for a substantive definition of modalities, including the nature and direction of the obligations involved. They conclude that "the exercise of clarification of certain elements relating to the four Singapore issues is still on going. Differences of opinion still abound, even amongst proponents. It is therefore clear that more discussion and clarification would be necessary so that Members are in a position to look at the issue of modalities for each of the Singapore issues in an informed manner". The paper quotes similar positions in the statements made at recent ministerial summits: the Eastern and Southern Africa meeting held in Nairobi, Kenya 28-29 May; the LDC Trade Ministers meeting held from 31 May - June 2 in Dhaka, Bangladesh; and the Trade Ministers of the African Union meeting from 19-20 June at Grand Baie, Mauritius.

ICTSD reporting; "12 Developing Countries Challenge EU Approach To WTO Singapore Issues", THIRD WORLD NETWORK REPORT, 7 July 2003.

PROCESS ON IMPLEMENTATION ISSUES FINDS NEW SPARK

Following a Heads of Delegations meeting on 7 July, WTO Director General Supachai Panitchpadkdi announced that discussions on certain implementation-related issues will resume, with some continuing under the auspices of the Trade Negotiations Committee (TNC) and others returning to subsidiary bodies for further technical work. Of greatest significance to developing countries is an issue related to trade- related investment measures (TRIMs). On this, Members agreed to proceed in the TNC, considering a proposal by India and Brazil (G/TRIMS/W/25, available at http://docsonline.wto.org) that seeks to re-open spaces for developing countries to use certain trade-related investment measures in their development policies (see BRIDGES Weekly, 12 December 2002). However, the proponents (mainly developing countries) and the opponents (mainly developed countries) remain widely divergent on the issue. Other issues being re-vitalised include two on technical barriers to trade, and one on traditional knowledge and genetic resources. According to sources, some other implementation-related areas look less likely to move forward, including customs valuations, safeguards, textiles, and review of the provisions related to countervailing duties in the subsidies agreement. Prior to the 7 July meeting, implementation issues had been stalled due to EU demands that the issue of extending geographical indications (itself an implementation issue) be resolved as a top priority (see BRIDGES Weekly, 12 December 2002). Members had agreed to address the approximately 80 outstanding implementation issues in a decision at the ministerial conference in Doha.

ICTSD reporting.

CAMBODIA READY TO ENTER WTO BY CANCUN MEETING

On 15 July officials announced the impending accession of Cambodia to the WTO. Negotiations with six Members -- including the EU, Japan and South Korea -- out of the required nine Members had been completed. The US, India and Panama are expected to sign the bilateral agreements with Cambodia by 22 July, which would complete the process. All formalities for Cambodia's accession to the WTO could then be completed by the fifth WTO Ministerial Conference in Cancún on 10-14 September. Cambodia would then ratify the agreement, becoming a member 30 days after informing the WTO that its parliament had ratified the documents. Cambodia would be the first LDC acceding since the creation of the WTO in 1995. Cambodia applied to join the WTO in December 1994, but negotiations effectively started only in May 2001 with the first meeting of a specifically designated Working Party. According to Cambodian Secretary of State for Commerce Sok Sophana, WTO membership would protect the country's lucrative garment industry, the most significant source of foreign income. Other LDCs currently negotiating accession to the WTO include Bhutan, Cape Verde, Ethiopia, Laos, Nepal, Sudan, Vietnam and Yemen.

"Cambodia to become first of world's poorest countries to enter WTO- minister," AFP, 15 July 2003; "Cambodia closer to WTO membership," BUSINESSDAY, 17 July 2003; "EU And Cambodia Conclude Bilateral Package For Cambodia's Accession To The WTO," EUROPA, 19 June 2003.