WTO MEMBERS REMAIN DIVIDED OVER SINGAPORE ISSUES

The WTO working groups on the so-called 'Singapore issues' of investment, transparency in government procurement, competition policy and trade facilitation submitted their respective reports to the WTO General Council (GC) on 24-25 July. The reports contained procedural information on the working groups' activities (sources and materials used, meetings held and cooperation with other intergovernmental organisations) as well as a substantive discussion on elements. While outlining various Members' views on the way forward, the reports did not contain any conclusions or recommendations with regard to whether negotiations should be launched at the WTO's fifth Ministerial meeting in Cancun in September. The process toward Cancun was also discussed at the GC.

Divergences persist in informal consultations process

During an informal consultation process on the Singapore issues in the lead-up to the GC, existing differences between Members persisted. Four "Friends of the Chair" -- namely, the Chairs of the working groups on investment (Ambassador Luiz Felipe de Seixas of Brazil), competition policy (Frederic Jenny of France), transparency in government procurement (Ambassador Ronald Saborio Soto of Costa Rica) and trade facilitation (Ambassador Milan Hovorka of the Czech Republic) -- convened the informal consultations. These "Friends" had been appointed by GC Chair Carlos Perez del Castillo of Uruguay at an informal Heads of Delegation (HOD) meeting in early June to assist in consulting Members on the Singapore issues. According to trade sources, consultations on competition, trade facilitation and transparency in government procurement involved smaller initial meetings with both proponents and opponents of negotiations, followed by larger meetings with additional Members. Meetings gathering opponents, proponents and 'neutral' or 'undecided' Members were convened separately on investment.

During these informal meetings, there was no agreement on modalities -- setting out the framework for negotiations -- that could trigger negotiations on the Singapore issues at Cancun. Perceptions among Members differed, with demandeurs for negotiations, notably the EU, claiming that modalities only needed to be procedural in nature. The EU also insisted that the Singapore issues were part of the single undertaking, i.e. the full package of negotiations agreed at Doha. On the other hand, most developing countries felt that modalities must involve substantive issues, including definitions and the nature of obligations involved. This view was reflected in a submission by twelve developing countries (see BRIDGES Weekly, 17 July 2003) stressing that the Doha mandate referred to a clarification process that had not been completed owing to a wide divergence of views. Members have further been unable to decide whether to address the four issues separately on as a package.

Draft ministerial text sets out options on Singapore issues

The recently released draft text of a Cancun ministerial declaration (see http://www.ictsd.org/issarea/development/resources/16-07-03_S&D-text.pdf) "takes note of the work done" by each of the working groups as well as "the work on the issue of modalities carried out at the level of the General Council..." It further provides, in square brackets, two options: "we adopt by explicit consensus the decision on modalities of negotiations set out in document..."; or simply "we decide that," assuming no negotiations would be launched. The modalities document mentioned in the bracketed text would be drawn up later.

GC discussions reveal divergences

In discussions on the reports, as they were delivered to the GC, some Members said they felt that the reflection on progress in the reports was "subjective". The Philippines said that the sections on discussion of potential modalities did not necessarily reflect the views and needs of all Members.

GC Chair Perez del Castillo stressed that the future fate of the Singapore issues depended on progress in other areas, such as agriculture and S&D. "I'll be very honest, I think the fate of the Singapore issues are very much linked to the package that we will be able to bring to Cancun," he said. "If it is a decent package, I think the Singapore issues will have much better prospects than in the absence of a package, in which case I would say they have no prospect whatsoever". He also said he would circulate a first draft of negotiating modalities after 18 August, to gage reactions and responses from Members and explore whether a deal could be possible.

Members will meet in daily HOD meeting after a two-week recess, covering all key negotiation areas, including the Singapore issues.

GC reports on the Singapore issues

The report of the Working Group on Trade and Investment (WT/WGTI/7) outlines technical assistance activities, and describes the main views expressed by Members on scope and definition, transparency, development provisions, non-discrimination and modalities for pre-establishment commitments, balance-of-payments safeguards, investors' and home governments' obligations, and the relationship between a multilateral framework on investment and the General Agreement on Trade and Services (GATS). The report also highlights written submissions and discussions of a more general nature, noting divergences over whether or not negotiations should be launched.

The report of the Working Group on Trade and Competition Policy (WT/ WGTCP/7, searchable at http://docsonline.wto.org), seeks to capture some of the key views expressed in discussions in the Working Group on a possible multilateral framework on competition policy. Discussions included consideration of pros and cons of a multilateral framework on competition policy; the potential scope and application of core principles; implications for national industrial and other policies; the harm caused by international cartels; the nature and scope of possible modalities for cooperation; and alternative approaches to cooperation on competition policy. The report also includes views expressed on the nature and scope of possible compliance mechanisms, including alternative approaches to the WTO dispute settlement understanding (DSU).

The Trade Facilitation section contained in the Update to the 2002 Report of the Council for Trade in Goods (G/L/637) outlines views expressed by Members in this area, noting broad agreement among Members on the importance of trade facilitation. The report highlights many Members' reservations and calls for further clarification and concerns about the feasibility of Members adopting measures in this area due to their varying levels of development. Highlighting the importance of technical assistance, including in infrastructure, many Members had called for a flexible approach, and potential commitments featuring broad objectives, non-binding guidelines and special and differential (S&D) treatment for developing countries.

The report of the Working Group on Transparency in Government Procurement (WT/WGTGP/7) provides an overview of substantive work undertaken, highlighting discussions on transparency-related provisions in existing international instruments on government procurement and national procedures and practices and on the nature of a potential multilateral agreement. The report reveals a divergence of views among Members, especially as regards whether the pre-conditions for negotiations, including consensus on modalities, has been achieved.

ICTSD reporting; "Same Differences Among Countries Maintained In Informal Consultations On Singapore Issues, But Will These Be Reflected In Draft Cancun Declaration?," TWN, 16 July 2003; "WTO General Council 'Cautiously Optimistic' About Deal on Ag Modalities at Cancun Talks," WTO REPORTER, 28 July 2003.