WIPO IPR/TK COMMITTEE CLOSES WITHOUT AGREEMENT ON MANDATE

The WIPO (World Intellectual Property Organization) Intergovernmental Committee on Intellectual Property and Genetic Resources, Traditional Knowledge and Folklore closed its 7-15 July meeting -- the last session under the current mandate -- without agreement on the future mandate of the Committee. The matter will now be discussed at the WIPO Assemblies on 22 September - 1 October. Developing countries were generally in favour of a mandate to develop an international regime for the protection of genetic resources, traditional knowledge and folklore, although countries differed on the legal nature of such a regime. Some developing countries, mainly from Latin America and Asia, favoured joint recommendations or principles with the possibility of developing a legally binding treaty. These countries also called for language stating that WIPO's work should not preclude outcomes of other negotiations. The African Group, however, opposed the latter proposal and insisted on a mandate to negotiate a legally binding treaty within the next two years. The US strongly resisted any reference to a legally binding instrument. In the end, the Committee ran out of time and discussions had to be postponed until September. Describing the meeting as "confusing and messy," one trade source noted that members appeared willing to come to an agreement and would likely have done so had they been given the time, and had the WIPO Secretariat put more pressure on them. Another source speculated that countries were unwilling to agree on a weak mandate simply for the sake of consensus, opting instead to leave the decision to the Assemblies where they might have a stronger negotiating position.

ICTSD reporting.

EU BIOTECH REGULATIONS SET TO ENTER INTO FORCE

After being adopted by the European Parliament on 2 July (see BRIDGES Trade BioRes, 11 July 2003), the European regulations on traceability and labelling of genetically modified food and feed received the final nod from the European Council of Ministers on 22 July. The regulations were adopted with all the amendments proposed by the Parliament, including language to allow EU member states to impose "appropriate measures" to avoid the unintended presence of GMOs in other products ("co-existence"). Luxembourg, the UK and Denmark voted against the regulations. The legislation will enter into force 20 days after publication in the Official Journal of the EU. Operators have to comply with the new previsions on labelling within six months of the date of publication. While the European Commission has repeatedly said that the de facto moratorium on the approval of new GMOs would be lifted once the regulations entered into force, it remains unclear whether the US and others would drop their WTO challenge even if approvals resumed.

In related developments, the European Commission on 23 July released Guidelines for the development of national strategies and best practices to ensure the co-existence of GM crops with conventional and organic farming. The guidelines are available at http://www.euractiv.com/ndbtext/biotech/gmocoexistence-gl.doc.

"European legislative framework for GMOs is now in place," EU PRESS RELEASE, 22 July 2003; GMOs: Commission publishes recommendations to ensure co-existence of GM and non-GM crop," EU PRESS RELEASE, 23 July 2003.

US-AUSTRALIA FTA TALKS ENTER MARKET OFFER PHASE

On 23 July, approximately 100 US and Australian trade negotiators met for a week in Hawaii to exchange their market access offers for the proposed free trade agreement (FTA) between their two countries. Australia's chief trade negotiator, Stephen Deady, called for a firm commitment to the timetable for a deal between the countries on agriculture. He said a free trade deal would yield USD 2.5 billion per year to Australia if the US agreed to further open its agricultural sectors -- especially its beef, dairy and sugar industries -- to Australian imports. However, some Australian civil society groups expressed concern about the potential impact of the FTA, both in the farming sector and with regard to investor rights giving corporations the right to sue governments over regulations. "If an Australia-US Free Trade Agreement is to include provisions similar to those of the North American Free Trade Agreement (NAFTA), the almost inevitable outcome will be a reduction in the capacity of all levels of Australian government to regulate," said the convenor of the Australian Fair Trade and Investment Network (AFTINET), Pat Ranald. The free trade deal is scheduled to be completed by the end of the year.

In related news, the US House of Representatives approved the FTAs the US has recently concluded with Singapore and Chile on 24 July, and the US Senate may vote on them as soon as next week.

"Australia: Opposition Mounts to Free Trade Deal with US," ONEWORLD, 23 July 2003; "US-Australia free trade negotiations enter crucial phase," ABC RADIO AUSTRALIA NEWS, 18 July 2003.

FTAA MEET TAKES STOCK OF PROGRESS, SEEKS TO FORGE COMMON VIEW

The Free Trade Area of the Americas (FTAA) Trade Negotiations Committee (TNC) convened in El Salvador from 7-11 July to discuss visions for the proposed FTAA and the status of the FTAA process. The goal of the meeting was to forge a common view of what the FTAA should ultimately look like. According to a senior US trade official, the TNC meeting provided an opportunity to address the challenges before a November meeting of hemispheric trade ministers in Miami. He said market access discussions -- negotiations that set the schedule for tariff reductions -- have progressed well, while negotiations in the areas of services, investment and government procurement have slowed due to a lack of engagement on the part of Brazil and Argentina. "Those negotiations continue but, it would be obviously a lot better if Brazil and Argentina were playing a more active role there," the trade official said. Brazil has proposed liberalising hemispheric trade by dividing negotiations into regional, hemispheric and global talks. However, the official said US negotiators had rejected the proposal, warning that such an approach could "balkanise" the FTAA. Trade officials also discussed a Hemispheric Cooperation Program aimed at strengthening the ability of the region's smaller and less developed economies to participate in FTAA talks and to benefit from hemispheric trade.

"Hemispheric Trade Officials Seek to Forge Common View on FTAA", WASHINGTON FILES, 17 July 2003; "US Official: Some Countries Moving Slowly In FTAA Talks", DOW JONES BUSINESS NEWS, 17 July 2003.

US TARIFFS ON VIETNAMESE CATFISH THREATEN TRADE RELATIONS

A decision of the US International Trade Commissions (ITC) to allow new duties of 37 to 64 percent to be imposed on Vietnamese catfish imports is threatening to block one of the few products in which the impoverished nation enjoys a comparative advantage. Examining a claim by US catfish producers, The ITC determined on 23 July that Vietnamese catfish farmers were selling frozen fish fillets at unfairly low prices, threatening American producers. This decision clears the way for the US Department of Commerce to impose anti-dumping tariffs from mid-August on Vietnamese tra and basa catfish shipped to the US. The dispute between the two countries is expected tarnish their trade relations, raising concerns in Vietnam that the ruling could set a negative precedent for future trade, including products of even greater economic importance to the country, such as shrimp. Vietnam, which is not yet a WTO Member, will not be able to challenge the duties through WTO dispute settlement procedures.

"The great catfish war," NYT, 21 July 2003; " Vietnam loses tariff, fears America will target shrimp market next," AP, 25 July 2003.

NEW UN TASK FORCE ON GENDER AND TRADE

A new UN inter-agency task force on gender and trade held its first meeting from 17-18 July in Geneva, Switzerland. Created in February 2003 by the Inter-Agency Network on Women and Gender Equality, the task force aims to sensitise policy makers to gender and trade issues, and to promote gender perspectives in national and international policies, global economic processes and trade agreements. It is headed by UNCTAD, and also includes the FAO, ILO, the Office of the High Commissioner for Human Rights, UNDP, UNEP, the UN Industrial Development Organisation (UNIDO), UNIFEM, UN regional commissions, the World Bank and the WTO. According to UNCTAD officials, the gender issues related to trade have taken on increasing importance among policy makers. The role women play in the economy has become a significant variable -- they are a source of inexpensive, low-skilled labour in export sectors such as clothing, electronics assembly and non-traditional agricultural exports. UNCTAD officials also mentioned current difficulties women face: labour market liberalisation and "flexibilisation" lead to job insecurity and reliance on part-time jobs. This situation mainly threatens women, and tends to reinforce the gender division of labour. The task force challenged participants to empower women and to make trade supportive of gender equality. Several activities will be undertaken under the auspices of the task force, including socioeconomic analysis of the linkages between trade and gender, capacity-building, and publication of studies.

"U.N. Gender And Trade Task Force Begins Work," UNCTAD RELEASE, 22 July 2003.

DELEGATES PREPARE FOR POPS CONVENTION ENTRY INTO FORCE

The Intergovernmental Negotiating Committee of the Stockholm Convention on Persistent Organic Pollutants (POPs) met for the last time -- assuming the Convention enters into force in 2005 -- in Geneva from 14- 18 July. The seventh meeting of the negotiating committee (INC-7) was attended by 400 delegates, and focussed on continuing international action on POPs and preparing for the first Conference of the Parties (COP), which will take place once the POPs Convention enters into force. The Convention is set to eliminate 12 toxic chemicals at first stage, and further chemicals can later be added. During the meeting, participants agreed on a standardised format for countries requesting specific exemptions from the treaty's ban on harmful POPs. Delegates further adopted interim guidelines for national implementation plans for the treaty. However, the meeting failed to agree on the composition of a Review Committee overseeing changes to the list of banned chemicals. The debate focussed on keeping the size of the Review Committee manageable while ensuring geographic representation. Delegates also debated the status of observers in the Review Committee. The INC-7 meeting deferred a decision on the permanent home of the Convention Secretariat. Switzerland, Italy and Germany have submitted their candidacy. Delegates also briefly discussed cooperation with the WTO, with Canada introducing a draft decision requesting the Convention Secretariat to seek observer status in the WTO Committee on Trade and Environment. Argentina, Ecuador, Venezuela and Egypt however objected to the proposal as premature, and no action was taken. Since the Stockholm Convention's adoption on 22 May 2001, 151 countries have signed the treaty, and 33 have ratified it. The Convention is expected to enter into force sometime in 2005, 90 days after receipt of the 50th instrument of ratification.

"Nations Endorse Standardized Format For Seeking Exemptions to POPs Ban," BNA, 23 July 2003; "Summary of the Seventh Meeting of the Intergovernmental Negotiating Committee on Persistent Organic Pollutants," IISD's Earth Negotiations Bulletin, 21 July 2003; "Swiss want to host fight against 'dirty dozen'," SWISSINFO, 14 July 2003; "Stockholm Convention on POPs," UNEP, June 2001.