RESTRICTEDWORLD TRADE
ORGANIZATIONTN/C/M/9
24 July 2003
(03-3970)
Trade Negotiations Committee
9 May 2003Original:  English
MINUTES OF MEETING
Held in the Centre William Rappard
on 9 May 2003
Chairman: Dr. Supachai Panitchpakdi (Director-General)
Subjects discussed:
1. Reports by the Chairpersons of bodies established by the TNC
2. Statements by participants
1. Reports by the Chairpersons of bodies established by the TNC
1. The Chairman introduced the reports by the Chairpersons of bodies established by the TNC.
These reports had been circulated in the following official documents:
Special Session of the Dispute Settlement Body TN/DS/8
Special Session of the Council for TRIPS TN/IP/6
Negotiating Group on Market Access TN/MA/10
2. He had warned some time ago that the Round was facing imminent gridlock unless focused
political energy was applied to avert it.  Thus far, Members had avoided the worst, and he much
appreciated the responsible way in which participants had handled the setback in agriculture at the end
of March.  At the last TNC meeting, he had said that he was pleased to hear many delegations
reaffirm their commitment to conclude the Round su ccessfully and on time, and their determination to
keep on working hard to make progress in preparation for Cancún.
3. However, his fundamental concerns were still there, and his warning still stood.  Avoiding the
worst was no substitute for real progress in the work.  Furthermore, no-one could pretend that the
setbacks thus far had been cost-free.  The problem of negative linkages was still very much present,
and participants should take care to not simply postpone the gridlock until Cancún.  The consequencesof doing so would be very serious for the Round as a whole.
4. Other important deadlines were coming up at the end of the month in the dispute settlement
and non-agricultural market access negotiations, and he hoped that all participants would approach
these deadlines with the same sense of commitment that had been evident at the end of March.
5. In all, there were around a dozen issues requiring action before or at Cancún following the
mandates agreed at Doha, some of which were outside the negotiations themselves.  But all of these
issues had something in common – the aim overall should be to focus work on what needed to be
done in Cancún to maximize the chances of success thereafter.  A clear priority for work in the
immediate future should be to reduce this burden to manageable proportions by reachingTN/C/M/9
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understandings on as many of these issues as possible before the Ministerial Conference.  Those
issues which remained outstanding would need to be presented in a clear and operational manner.
6. He wished to stress his commitment to facilitate progress across all areas of the TNC's work.
In the first instance, he would be continuing his consultations on implementation issues, which he had
also raised in his recent conversations with Ministers.  The importance of the benefits this Roundcould offer all participants was such that Members could not allow any issue to become a roadblock to
progress elsewhere.  He urged all participants to bear this in mind in the coming weeks.
7. Ambassador Girard (Switzerland), Chairman of the Negotiating Group on Market Access,
said his report in document TN/MA/10 provided a factual summary of the formal meeting of the
Negotiating Group on 14-16 April 2003.  He wished to provide the body with an additional
assessment of the state-of-play of the negotiations on market access for non-agricultural products.
There had been substantial discussions on both tariff and non-tariff barriers at the last meeting, andMembers had been able to have an in-depth exchange of views on all the various elements proposed
in the submissions regarding both subjects.
8. Participants had taken up several new submissions on tariffs and six detailed submissions on
non-tariff barriers, and the group had continued its deliberation of the various aspects of the
modalities for tariff negotiations.  The discussions had advanced considerably on non-tariff barriersand Members had been able to catch up on the issues that needed to be addressed in that area.
9. With respect to the tariff part of the mandate, he wished to inform the TNC where progress
had been made and developments had emerged.  Firs t, as he had mentioned at the last TNC meeting,
many participants were focusing on a formula-type approach to these negotiations, and there had been
many proposals made with respect to different types of formulas and how they would be applied tomake tariff reductions.  Second, he underlined that much had been said about sectorial approaches,
with different sectors being mentioned and how these would operate, and he wished to add that other
complimentary approaches such as request/offer had also figured prominently in the discussions.
10. The other elements regarding tariff negotiations had been more technical, but nonetheless
very important to the formulation of possible modalities.  Elements such as the base year,nomenclature, and base rate had converged toward likely consensus.  There had been useful
suggestions on how to treat unbound items and how to deal with non-ad valorem duties.  Discussions
on other matters, such as giving sufficient flexibility to LDCs and taking into account the concessions
recently made by newly-acceded Members, had been very constructive and Members appeared to be
moving in the same direction regarding these matters.  There had been much discussion on S&D
treatment and the issue of less than full reciprocity – both integral parts of the mandate.  Members had
been able to demonstrate how they thought these elements should be reflected in the modalities.
11. Members had attached much importance and attention to non-tariff barriers (NTBs) and many
had emphasized the equal importance of NTBs in the mandate, which would equally need to be
addressed in the modalities.  Much of the discussion involved the scope of NTBs, namely where they
should be addressed, and also the possible modalities to address the different types of NTBs.  It had
been clear from the discussion, and also from the Doha Declaration mandate, that the overallresponsibility for NTBs lay with the Negotiating Group.
12. In order to develop methodologies to address the various types of NTBs, the discussions had
been structured to categorise NTBs according to subject and scope.  Four such categories had been
used, as follows:  1) NTBs related to other negotiating groups, such as Rules; 2) NTBs relating to
other parts of the Doha Declaration that currently did not have a negotiating mandate, such as tradefacilitation; 3) NTBs that were usually dealt with by other established WTO bodies, such as TBT,
SPS, Import Licensing and others; and, 4) NTBs that did not currently have an appropriate fora and
would have to be dealt with in the Negotiating Group in any case.TN/C/M/9
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13. Once the Group had identified and clarified the NTBs, it might be necessary to bring some
questions to the attention of the TNC.  Through the TNC Chairman, there would be proposals made to
ensure that the best use was made of existing WTO fora in deciding to deal with each matter in the
most practicable and efficient way.
14. He intended to circulate a paper with draft elements of possible modalities for these
negotiations during the course of the next week.  At this stage, the paper would contain the basic
elements that would further the work aimed at reaching consensus.  In drafting the possible elements
for modalities, he would keep in mind three overriding principles: the importance of preserving the
integrity of the WTO multilateral trading system as embodied in the WTO Agreements, building upon
the market openings realized thus far as a major element in promoting trade and development, and
incorporating S&D treatment as an integral part of the negotiations.
15. He wished to inform the Chairman and Members that in the past few weeks he had been
contacted by a few delegations who had drawn his attention to the points that were important to them.
He was happy to receive comments from Members in addition to what had already been discussed in
the meetings and, if they so wished, he would be available for personal contacts.
16. Ambassador Chung (Korea), Chairman of the Special Session of the Council for TRIPS, said
the sixth Special Session had been held on 29-30 April and as explained in report TN/IP/6, the
discussions about issues relating to establishing a multilateral system of notification and registration
of geographical indications for wines and spirits had been useful and comprehensive.
17. For the first time since the start of the negotiations, the discussions had been conducted on the
basis of a common draft text, which he had prepared on his own responsibility.  The discussions had
been helped by a written submission from the delegation of Hong Kong, China.  The draft text that hehad circulated presented several options on critical issues, such as the legal effects of registration,
mechanisms for settling differences and participation, which reflected widely divergent positions
among Members.  Not surprisingly, Members had not been able to narrow the gaps at the meeting.
18. Members had thus a considerable amount of work to do in a short period of time to complete
the negotiations by the Cancún Ministerial Conference as mandated by Ministers at Doha.  He hopedthat at the next Special Session, scheduled for 2-3 July, Members would be able to address a clean,
single text rather than a text with options of substantial difference.
19. To this end, he would hold intensive informal consultations with delegations before the July
meeting.  These consultations would take place in various formats, but he would always strive to
ensure maximum transparency.  As part of these consultations, he planned to hold an informal, open-
ended meeting, perhaps back-to-back with the next regular session of the TRIPS Council scheduled
for early June, where he intended to present his thoughts on the key issues with a view to producing asingle text for the July meeting of the Special Session.  However, consultations by themselves could
hardly achieve progress if delegations remained entrenched in their current positions, and he hoped to
see a greater degree of flexibility and willingness to compromise in the coming weeks and months.
20. Ambassador Biké (Gabon), Chairperson of th e Special Session of the Committee on Trade
and Environment, said her report in document TN/TE/6, covering the 1-2 May meeting, would be
distributed shortly.  At that meeting, the Special Session had continued its analysis, pursuant to
paragraph 31(i), of the specific trade obligations in MEAs.  In parallel, a number of delegations had
also continued analyzing in a conceptual way the various terms of the mandate.
21. For the time being, there appeared to be a convergence of opinions regarding explicit and
mandatory trade measures in MEAs.  Nonetheless, divergences continued on the various provisionsthat left a certain amount of room for manoeuvre for Parties to the MEAs with regard to the choice of
measures.  Furthermore, delegations still had differing opinions regarding the MEAs covered by the
mandate in paragraph 31(i), especially regarding those MEAs that had not yet entered into force.TN/C/M/9
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22. In the discussion, some delegations had also raised a number of concrete examples, listing the
commercial measures which they believed were covered by the negotiation mandate.  However, some
delegations had noted that it would be difficult for the Special Session to agree upon a comprehensive
list of specific trade obligations.  It had also been underlined that the adoption of criteria for the
identification of specific trade obligations would make it possible to also accommodate some futuredevelopments, such as amendments to MEAs or the entry into force of new MEAs.
23. Some delegations had mentioned a number of procedural aspects regarding future meetings,
and these would require attention.  The participation of representatives from six MEAs and UNEP at
the discussions under paragraph 31(i) had been welcomed by the Members.  This invitation had made
it possible for the Special Session to draw upon th e technical expertise of the MEAs relative to the
discussion under paragraph 31(i).  In their responses, the MEAs provided information regarding the
decision-making mechanisms of the Conferences of the Parties to the various MEAs.
24. She said the representatives of the MEAs had st ated that they were ready to help Members
better understand the operation of the MEAs within the framework of the negotiation that they would
be engaging in.  Although the Special Session did not have enough time to deal with the question of
inviting the MEAs and UNEP to the next meeting, she hoped this first experience would encourage
delegations to consider in a positive way the renewal of the invitation, and she would raise thisquestion during the next informal session on 22 May.   The Special Session should also decide whether
this type of invitation could be extended to other aspects of the negotiation mandate, namely
paragraph 31(iii), and to other organizations whose presence could positively benefit its work.
25. Under paragraph 31(ii) on the exchange of information between the Secretariats of MEAs and
the pertinent bodies of the WTO, she had recalled the suggestions made thus far, which she believedprovided Members with a sound basis from which to work.  The Secretariat would provide a
compilation of these various suggestions, which would facilitate progress on this item of the mandate.
Regarding the criteria for granting observer status to MEAs, delegations should continue their work
by putting forward concrete elements for the identification of the criteria and of the various WTO
Committees concerned by this mandate.  A proposal was made that Ministers in Cancún take up thequestion of the participation of the MEAs and UNEP in the work of the Special Session as a way to
"consolidate" the invitation to these organizations on an ad hoc basis.  This proposal could also give
rise to future consultations.
26.  On paragraph 31(iii), the Special Session had continued discussions regarding the definition
of environmental goods.  Certain delegations had said a good starting point would be the lists of
environmental goods from APEC and the OECD.  However, other delegations had emphasized that
the list of environmental goods to be drawn up for these negotiations should contain products ofparticular export interest to developing countries.  She wished to encourage developing countries to
identify the environmental goods and services of high interest to them, and she also encouraged
Members, particularly developing countries, to continue to be engaged in the discussions on the
definition of environmental goods.
27. Finally, she wished to underscore that the question of the preparation of a report for the
Ministerial Conference in Cancún on progress made in the negotiations, and/or potential
recommendations, would be examined at the informal consultation on 22 May.  The Special Session's
next formal meeting would be held on 8 July.
28. Ambassador Groser (New Zealand), Chairman of the Negotiating Group on Rules, said he
would not be addressing the "heartland" issues of the Rules Group, which were subsidies, anti-
dumping and countervailing issues, since these were going well and he had not changed the analyses
on their progress he had made at previous TNC meetings.  The Group's meeting on Regional Trade
Agreements (RTAs) had been interesting since an entire day had been set aside for discussion and the
meeting had lasted two and a half minutes.  He had opened the meeting and, since no one hadTN/C/M/9
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anything to say, he had then moved it to informal mode where still no one had anything to say, so he
had closed it.
29. Silences in politics, as in music, could be instructive and important.  The problem was that
people could either view the discussion on RTAs in a context of there being no demandeur, or one
could take his perspective that everyone was a demandeur.  In previous negotiations, there had beentwo camps.  This had produced a basis for negotiation, but it had been still difficult.
30. The situation now was perhaps that no-one was a demandeur because everyone belonged to a
RTA and therefore they looked at this in a defensive way.  Otherwise, one could turn the argument on
its head and say that everybody was a non-Member of an increasingly large number of regional trade
agreements, so everybody had an interest in finding out what was going on because their interests
could be severely compromised by this.  Thus, either nobody was a demandeur, in which case
Members would not have a result on that side of the mandate, or everybody was a demandeur, inwhich case there might be a result under the heading of transparency.  Due to the pregnant silence at
that last meeting, he would proceed with yet another Chairman's paper which he hoped would spur
some interest, and he would maintain the same level of ambition previously announced.  He wished to
reiterate that he was aiming for a decision at Cancún which would try to improve the disastrous
situation that Members had with the CRTA with respect to the issue of transparency.  That was wherehe was heading and nobody should be surprised.
31. Mr. Harbinson, Chairman of the Special Session of the Committee on Agriculture, said the
last Special Session had taken place at the end of March and he had made an oral report on that
meeting in early April.  The written report had s ubsequently been issued as document TN/AG/9, dated
8 April.  As foreshadowed in that report, a program of technical and other consultations had beenembarked upon aimed at facilitating progress on all fronts.  He wished to inform the TNC of the work
undertaken since the end of March.
32. Technical consultations had been held on 23, 24 and 25 April to discuss a number of specific
issues raised in the revised first draft of modalitie s, namely certain aspects of S&D treatment in the
area of domestic support, the calculation of domestic consumption, which could be used as a basis fora possible expansion of tariff quotas, and the Blue Box.  Participants remained very active and
focused and, as a result, some quite useful progress had in fact been made in the consultations so far.
However there was no hiding the fact that, in the key areas, very wide gaps remained between the
various positions.
33. He could only yet again urge participants to reflect on the consequences for the Doha
Development Agenda (DDA) as a whole of a continuing lack of movement in the agriculture
negotiations, and also to search actively and urgently for new flexibilities, in order to find solutions tothese many difficult issues they faced.  Further consultations on a variety of subjects, as set out in the
relevant fax, were planned for 14, 19, 27 and 28 May.  Another invitation would be issued shortly
setting out dates for further consultations in June.  The next Special Session would be held on 26-27
June and 1 July.
34. Ambassador Jara (Chile), Chairman of the Special Session of the Council for Trade in
Services, said his last report given on 4 March had been an interim report, since the formal meeting of
the Special Session had been held on 3 and 6 March, and the formal report to the TNC was contained
in report TN/S/7.  The Assessment of Trade in Servi ces, an outstanding item of interest to many, had
elicited a contribution by the United States to which he supposed there would be more reaction during
the next meeting, and this was important because the assessment allowed the negotiations to beadjusted in light of it, as set out in the Guidelin es and Procedures for the Negotiations on Trade in
Services.  Members, particularly developing countries, were also facing a challenge conducting the
assessment due to the dearth of reliable statistics.TN/C/M/9
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35. At its meeting, the Special Session had adopted the Modalities for the Treatment of
Autonomous Liberalization and taken note of a statement by the Chairman, which reflected the
importance these modalities had for the negotiations.  These modalities would help build confidence
in the liberalization process since measures taken autonomously would be rewarded in the multilateral
context.
36. Work on the modalities for the special treatment of LDCs was an ongoing exercise and since
his last report, the group of LDCs had circulated a revised draft of the modalities which would be
considered at the upcoming formal meeting.  This was an important part of the architecture of the
negotiations and was of major importance to the LDCs, so he expected Members to move on this
quickly.  However, this required the cooperation of everyone, particularly those who were most
interested in this item – the LDCs.  After the next formal session, he encouraged Members to move
into drafting mode to speed up the work on this item.
37. At the March meeting, substantive discussions had also been held on the review of the
progress in the negotiations, with a large number of interventions.  Members had reported that good
progress was being made in the overall negotiations, and a number of delegations had reiterated
sectors of interest to them.  There had been calls for balance in the negotiations both in services and
within the overall context of the DDA.  Two reports of consultations in the so-called "Friends Group"
on energy services had also been presented, which was something to be encouraged.  Delegations had
met by themselves in different groupings, as in the case of energies, and had chosen to report to the
Council which enhanced transparency.  He encouraged delegations to report on sectoral or other
meetings to the extent possible in order to help other delegations understand and have complete
knowledge of what was going on.
38. Most importantly, by the 31 March benchmark date, a number of delegations had circulated
initial offers.  To date, the Council had 23 initial offers, counting the European Communities as one.
Some of these offers had come from developing countries, many of them from Latin America.  He
viewed circulated offers as a strong commitment on the part of Members to pursue the services
negotiations in a positive and constructive spirit, and would expect the number of offers to increase bythe time Members next met and thereafter.  The offers were not easy to elaborate and he hoped that in
time, and with enough technical assistance and cooperation among delegations, more offers could be
forthcoming from developing countries in particular.
39. However, an assessment still had to be made as to what the offers meant.  Many offers had
improved on commitments that had been made in the past, and some also included commitments on
sectors or on sub-sectors in which no commitment had been made previously, so they were brand
new.  From these offers, and with the caveat that this required a more detailed analysis, he had theimpression that many of the offers, if not most of them, were a stand-still exercise.  In other words,
Members were not yet crossing the line of undertaking real effective liberalization, but rather still
offering to make commitments on freezing the stat us-quo without actually changing regulations or
other aspects in a way which would effectively liberalize or open trade.
40. Most of these offers, as provided for in the rules, had been circulated in a restricted form, but
four Members so far had chosen to circulate them unrestricted, and perhaps this was something to be
encouraged, if Members wished to make offers publicly available and thus accountable.  In this
exercise, many Members had underlined the importance of some horizontal issues, which were still
pending in the work, particularly on the special safeguard mechanism as well as the question of
subsidies, particularly transparency.  He believed progress in these areas would greatly facilitate thenegotiations on, and actual liberalization of, trade in services.
2. Statements by participants
41. The representative of Morocco, speaking on behalf of the African Group
, said the present
TNC meeting, coming one month after the last meeting and four months before the CancúnTN/C/M/9
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Ministerial Conference,  was of critical importance for the fate of the Doha mandate and the success
of Cancún.  Success at Cancún would depend on the results of the work in the coming weeks and the
concessions and will on all sides in meeting the commitments undertaken by Ministers in November
2001.
42. He did not intend to go back over the missed deadlines nor the African Group's
disappointment that he had mentioned in earlier meetings, but he did wish to repeat the attachment of
all of the Group's Members to the Doha objectives and to reiterate the readiness and openness of the
African Group to move ahead, so that the much-vaunted Development Agenda became a reality.
43. The African Group wished to express its full support of the Chairman's work and the vision
he had outlined on the process until Cancún.  In this context, the Group continued to believe in the
possibility of reaching agreement, which was more necessary than ever given the context of the global
economic recession.  Such agreement could only stimulate growth and enable better conditions to thebenefit to all and for development in general.  Any such success remained dependent on the results of
the major issues in the DDA, such as TRIPS and Public Health, S&D and agriculture.  None of these
questions was on the agenda of the present meeting, but under the principle of the Single Undertaking
that linked all the Doha issues and established their equal footing, the African Group committed itself,
with goodwill but also with limited human resources , to being an active partner, and was determined
that the negotiations would conclude successfully.  The Group would like to assure the Chairmen of
the agriculture and services Special Sessions of its support for their efforts to make headway in the
negotiations, and it shared their will to succeed and committed itself to fully cooperating with them to
meet these objectives.
44. On the negotiations on clarifications and improvements to the DSU, the African Group
believed that the meetings to be held on 20-28 May referred to in the DSB Special Session Chairman's
written report would be of capital importance for future work in this area.  The African Group had
participated actively in these negotiations with the objective of making the use of the DSU more
concrete and more accessible to developing countries and LDCs.  The dispute settlement mechanism
was a cornerstone of the multilateral trading system, guaranteeing its just and fair operation, andimprovements to the DSU should include the Group's proposals, which had been supported by many
other delegations.  These included:
- The creation of a WTO Fund on Dispute Settlement providing supplementary
resources to developing-country Members to allow them to develop both the
institutional and human capacity necessary to defending adequately interests in the
DSB.
- The improvement of the relevant provisions to offset the injury suffered through to a
satisfactory monetary compensation when the contested measures were withdrawn
before or after the opening of a dispute settlement procedure.
- The taking into account of the development needs of Members, parties or third parties
to a dispute, in the work of Panels and the Appellate Body, and in the implementation
of recommendations and decisions of the Dispute Settlement Body.
45. The African Group believed the results of the dispute settlement negotiations should be
balanced, and success in this area would comprise an important contribution to the achievement of the
development objectives in the Doha Agenda.
46. With respect to market access for non-agricultural products, the Negotiating Group Chairman
had stated that the work at the Group's last session had focused principally on the reduction of tariffs
and Members had been divided on the approach to be adopted.  In this respect, the African Group
wished to recall that any approach should take into  account the following main considerations:  1) the
impact on the economies of African countries, given the considerable importance in these countries of
customs duties in terms of income;  2) the impact on industrial development in Africa;  and, 3) theTN/C/M/9
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erosion of trade preferences that most African c ountries would undergo.  In the light of the 31 May
deadline for modalities in this area, the Group wished to recall the importance of non-tariffs measures
(NTMs), which should be fully taken into account given their considerable negative impact on most
African exports.
47. On the negotiations on a multilateral system of notification and registration of geographical
indications for wines and spirits, the Group hoped that the deadline set for the conclusion of an
agreement on this matter would bring a satisfactory agreement for all parties, which would certainly
have a dynamic effect on other areas of the Doha Round.
48. The Group also wished to complement the work of the Chairperson of the Special Session of
the Committee on Trade and Environment and to encourage her to continue in her efforts to achieve
progress in this important area for Africa.  The Group had clearly heard her call for greater
involvement and interest from developing countries, particularly from Africa in these negotiations.Finally, the African Group wished to reiterate its support for the TNC Chairman in his efforts to
overcome the impasse faced by Members, and it was ready and willing to move ahead in the period to
Cancún.
49. The representative of the United States said that her delegation's point of departure was that
participants had a shared objective of meeting the Doha mandates.  This involved three inter-linked
goals:  retaining the high level of ambition and mandates agreed at Doha, concluding the negotiations
on schedule by January 1, 2005, and obtaining an overall balance in the outcome that ensured results
for all participants.
50. For many, the litmus test of success at the conclusion of the Round would be whether results
contributed to development.  The measure of success would be real and tangible gains, and most ofthese would come from the agriculture, non-agricultural market access and services negotiations.
Ministers would need to focus on a limited number of issues at Cancún, either by confirming
agreements already secured or by finalizing agreements.  The meeting needed to be well prepared and
provide Ministers with a game plan that would allow Members to complete the negotiations on
schedule.
51. The Doha agenda was complex, but the issues broke down into six broad areas where
"Ministerial action" would be essential.  These six areas were agriculture, non-agricultural market
access, services, development, the Singapore issues and rules, taken in a broad sense.
52. On agriculture, the aim at Cancún should be to confirm modalities and set timetables for
schedules and the remainder of negotiations.  These modalities should ensure that Members reach an
accord that met the significant ambitions on the 3 pillars of market access, domestic support and
export competition which were established at Doha.  Much attention was focused on the efforts of theEuropean Commission to pursue CAP reform, and the work on decoupling.  An agreement would
certainly help provide flexibility for the European Union in negotiating in the Doha context in some
areas, and the United States hoped it would enable a more responsive approach to market access.
53. On non-agricultural market access (NAMA), the 31 May deadline was rapidly approaching.
It was clear that productive work had been undertaken in the Negotiating Group, but wide differencesremained on the best approaches to modalities for tariffs and some differences still existed on non-
tariff barriers.  All Members needed to stop and think about what NAMA represented for them now,
for it did not just represent one more negotiating group or committee that faced a deadline.  The
United States believed that, at this stage, develo ping together a bold approach to liberalizing non-
agricultural trade was critical to the Round as a whole.  It was critical for the Round because it wouldhelp create momentum for other difficult tasks that should be accomplished before Cancún.  It was
critical for the institution of the WTO because Members needed to send a global signal to the world
that the WTO was open for business and still working successfully towards Cancún.  Finally, it was
critical for global markets that signals were sent that Members were seriously engaging inTN/C/M/9
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liberalization that would help stimulate global growth and contribute to improvements in the global
economy.
54. For the United States, the goal of a tariff-free world was a vision which it believed was worth
pursuing and it believed that such a vision could and should be adopted.  The question was how to
construct modalities to get Members there and the United States saw four basic parameters.  First, aformula-based reduction.  The United States supported the use of a single harmonizing formula as a
basic modality because it believed that a single formula would yield the most benefits, particularly as
it related to the Doha mandate on development.  Second, sectoral initiatives should be seen as a
complement to the core formula.  This could make a significant contribution to a market access
package that would improve access for items of expo rt interest to developing countries on the one
hand, and on the other stimulate business interest in the negotiations, provided terms of participation
could be agreed.  They should include sectors of significant interest to developing countries and theUnited States was prepared to work with others on how to include this element in the modalities, and
to look at the degree to which Members should be able, by Cancún, to define sectors or guidelines for
pursuing ideas further.
55. Third, elimination of low duties should be an element of the core modalities.  Delegations
would need to reflect further on the desirable leve l to consider – the range now was between 2% and
5%.  Delegations would also need to reflect further on dealing with this issue for developing countries
that had a preponderance of low duties and where tariffs accounted for a high percentage of tariff
revenue.
56. Fourth, clearly S&D treatment was an explicit part of the mandate.  The question of how to
ensure that this was most appropriately reflected remained a major consideration for manydelegations.  The United States, for its part, wanted to reflect further on dealing with this issue in
ways beyond the traditional transition or longer staging approaches, including how to reflect the
degree of competitiveness by product or sector, the extent to which credit might be given for
unilateral liberalization that had taken place since the Uruguay Round, and ensuring that any
mechanisms would enhance opportunities for the incr eased participation of the poorest countries into
the system.  A key issue that needed to be addressed was to recognize the unique contribution that
newly acceded Members had made to the system.  In contrast to other Members at similar and lower
levels of development, these Members had acceded by fully binding tariffs and reflecting, in large
measure, applied rates at the time of accession.  Taking into account this positive contribution,
Members needed to reflect further on the possible credit that could be applied for these Members in a
formula-based tariff reduction approach.
57. On non-tariff barriers, Members needed to ensure that as tariffs were lowered and eliminated,
they were also addressing the non-tariff barriers that could undermine all that was achieved through
tariff reduction.  This was an important element for both developing and developed countries and this
challenge should be taken up with both creativity and purpose.  The Negotiating Group had
undertaken some good work to outline ways in which the reduction and elimination of non-tariff
barriers could be undertaken, but clearly more work needed to be done to agree on the finalmodalities.
58. While no deadline was currently set for Cancún on services, Members should actively work to
elevate the prominence of the services negotiations as a contributor to growth.  Services were the
infrastructure to the twenty-f irst century economy that was so necessary for development.
Liberalization of financial services, telecommunications and related services, marketing anddistribution, tourism, professional services, a nd environmental and construction and engineering
services were all essential if the gains from broader liberalization were to be fully realized.  A critical
mass of offers, as the Special Session Chairman had said, was not yet on the table, but by Cancún the
majority of WTO Members should be engaged in the negotiations.  That meant working now to
ensure that offers were on the table by Cancún, at which time, there should be a game plan, withguidelines and a timetable to complete the negotiations.TN/C/M/9
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59. In the field of development, if Members succeeded in the three areas of agriculture, non-
agricultural market access and services, delegations would have secured a result that had positive and
major implications for development and poverty alleviation, which were key to the Doha agenda.
Added to this significant contribution were a number of issues that required attention and political
direction, but which alone should not be the m easure of the Doha Agenda's contribution to
development.
60. The United States accepted that the systemic issues of S&D treatment were also important, it
commended the General Council Chairman's efforts to focus attention on the proposals that had been
made to date, and it believed that further work on this issue as well as how to respond to the differing
levels of development and needs of partners, would need action.  In the area of implementation, the
issues had been debated and the overwhelming number had been resolved, were the subject of
compromise, or had become a part of the negotiation.  Still others lacked consensus on a way forward,and some were simply not implementation issues such as whether to extend negotiations on
geographical indications beyond wines and spirits.  Nevertheless, the United States committed to
work constructively with the Chairman of the TNC in his capacity as Director-General as he consulted
on these issues.  On TRIPS and Public Health, her delegation welcomed the efforts by many to rebuild
the trust and confidence that had been evident at Doha, but eroded by discussions in Geneva.  TheUnited States' aim remained to have this done before Cancún.
61. The TNC Chairman would need the help of Members at Cancún, as he put forward his report
on Trade-Related Technical Assistance and the Integrated Framework.  The response to technical
assistance had been overwhelming to date, but to remain effective, Members would need to engage
other institutions in the effort.  The United Stat es was working with others toward welcoming new
LDCs into the WTO family at Cancún.
62. Members had agreed at Doha to pursue the four Singapore issues of trade facilitation,
transparency in government procurement, investment and competition.  The results did not need
necessarily to be the same, but the United States was prepared to work with others to keep the agenda
and move it forward.  Each of these issues needed to be addressed on its merits, but a process neededto be in place post-Cancún that enabled each of th ese items to have its own agenda and move forward.
The Doha Declaration asked Members to reach agreed modalities for negotiations and that remained
her delegation's expectation.
63. Turning to the rules area, broadly defined, for many rules issues there were no Cancún
deadlines, nonetheless they were important for many as part of the overall balance.  Broad agreement
already existed that the Rules Negotiating Group should ensure that post-Cancún work could move
seamlessly to the subsequent phase of negotiations.  On the DSU negotiations, the aim was tocomplete the review by the end of May, and given the richness of debate in Geneva, more work would
likely be necessary, meaning that at Cancún Members were going to need to decide how to proceed.
64. On environment, the United States was prepared to join others in securing a decision on MEA
observership.  The agenda of the CTE would also need to be considered further, consistent with the
Doha mandate.  On GIs, the results of the built-in agenda negotiations on the register for wines andspirits should be before Ministers, but strong differences remained in Geneva regarding this exercise.
While her delegation had strong views on the question of extension and roll-back, proposed by some,
it had nevertheless tried to engage and better understand the concerns.
65. The United States agreed with the many who had said that Members needed to move beyond
statements of national positions and towards finding common ground.  It had been working hard to doso, including most particularly, through Ambassador Zoellick reaching out to his counterparts.
Through these efforts, the United States was already seeing positive results, such as greater
convergence with the European Union on non-agricultural market access.TN/C/M/9
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66. The United States' list of the 6 areas for ministerial action was not intended to replace the
work plan agreed at Doha.  Members would have to go through a systematic review of the
requirements of Doha that was well prepared in advance by the TNC and General Council Chairmen.
The United States had taken care to cast these 6 areas in terms of goals all Members should be
working towards, as opposed to a recitation of its national position.  Through focus on these 6 areas,the United States believed that Members could and should retain the high level of ambition agreed at
Doha, meet the January 1, 2005 deadline, and develop a package that resulted in an overall balance
that ensured results for all participants.
67. The representative of Egypt said she would touch only on the written report by the Chairman
of the Negotiating Group on Market Access.  The report honestly listed some issues of divergence
among the Members on various items under consideration, such as the method for tariff reduction.
Although it was quite understandable that developed countries wished to see a formula-type approachfor tariff reduction in developing countries, the fact was that such approach did not correspond to the
mandate of these negotiations as provided in paragraph 16 of the Doha Declaration, which, inter alia ,
referred to the principle of less than full reciprocity as well as the special needs and interests of
developing countries.
68. Egypt did not believe a tariff harmonization fo rmula was appropriate because it did not take
into account the differences in production conditions and the needs of infant industries in developing
countries for the purpose of promoting trade and co ntributing to growth and development.  Nominal
tariff levels could not just be compared across countries.  Moreover, the principle of less than full
reciprocity in reduction commitments should be the core of the modality.
69. In carrying out its mandate, the Negotiating Group should not entertain exercises that would
stimulate unrealistic expectations or drive Members away from the Doha mandate, which was clear on
this subject.  The approach to be followed in developing modalities needed to allow all Members –
irrespective of production conditions and competitiveness – to address their industrial policy and
development objectives with the necessary flexibility through a certain degree of policy space and
option.
70. Egypt expected that the Negotiating Group Chairman would take into account the collective
views and different interests of Members in the proposal he intended to submit on possible elements
for modalities on tariffs and non-tariff barriers.  Egypt believed the proposal should not only be built
on the three principles mentioned by the Chairman in his comments at the present meeting, but should
also be based on the points raised or made during the discussions on the different items.  Otherwise, it
would not be reflective of the state of play and would not assist in moving forward on the basis of
Members' collective interests.  And above all, the proposal should be in conformity with the mandate
given by the Ministers in Doha.  Only such a proposal would help the Group fulfill its mandate within
the Work Programme and deadlines set out thus far.
71. The representative of New Zealand said he welcomed the statement by the United States
because he believed it matched his assessment of the negotiations, which was that some engagement
could now be seen.  He also agreed with Japan's comment at a recent informal meeting about therebeing two worlds, the Geneva process and that of the outside world.  Japan had suggested that a gap
should not open up between these two worlds.  He had been reminded of Lord Keynes' comment on
insider and outsider opinion.  The insiders' opinions was expressed by civil servants and experts and
the outsides' opinion by the public through their politicians and the media.  Keynes had said: "What is
said before the world is finally of deeper consequence than the subterranean breathings and wellinformed whisperings knowledge of which allows inside opinion to feel superior to outside opinion
even at the moment of bowing to it."  His delegation believed it was important that Members maintain
the connection between the Geneva process and the signals coming to Members from their capitals.
72. New Zealand's assessment, conveyed by its Prime Minister's statement at the recent OECD
meeting in Paris, was clear and conformed with the TNC Chairman's comments.  Deadlines mightTN/C/M/9
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have been missed, but the commitment to the Round was very much intact.  The commitment at Doha
had been fuelled by two very important exogenous developments, one political and one economic.
The economic one concerned world economic growth, which had been marked down for the tenth
consecutive month.  Ministers were becoming conscious of the linkages between that issue,
protectionism and what was at stake in the Doha Round, and the $300 billion boost to the worldeconomy – a figure the Chairman had used derived from World Bank analysis – that Members were
actually dealing with in this house.  The political aspect was more delicate, but as his Prime Ministers
had said, it was that the essence to effective multilateral progress was effective trans-Atlantic
cooperation.  Members were beginning to witness this with respect to the Doha Round, and New
Zealand welcomed it.
73. His delegation had also detected a strong commitment to development, and was aware of the
concerns of developing countries that this be given concrete expression.  Cynicism on their part –while understandable – was not justified.  Members still had a fundamental conceptual problem to
resolve which was where did the weight of the development dividend fall.  This was not a black or
white issue and it needed not to be over dramatised, but he wondered whether it fell primarily within
the S&D and implementation issues, which should progre ss, or whether it fell rather in giving greater
opportunities and removing some degree of distortions in the two areas where most of the world'spoor worked – agriculture and textiles and clothing.  It would be pointless to try to resolve this
discussion now, because there was nothing on the table on agriculture or textiles yet.  The promise
was there and it could perhaps be put into prospective later on, but for now this issue remained a
problem.
74. In sum, his delegation believed Members were strongly committed to the Doha Round, that
the development issue was fully understood by the developed countries, and it was clear that some
engagement was occurring.  However, if the WTO was not responsible for running a multilateral
trading system, but rather for running a railway sy stem, one could say that the trains did work, but
they rarely ran on schedule and sometimes took a very indirect route.  Those who had looked at the
schedule, the Doha Declaration, had perhaps been disappointed to see no train arrive at the station on31 March 2003, but the trains did actually work.  Theoretically, train wrecks could happen, yet
Members should remember in the course of the last eight negotiations since 1947 that there had not
been a train wreck.  There had been an occasional derailment at Seattle for example, but no
catastrophic train wreck and Members were not expecting one this time.
75. On the political rhythm of the current negotiations, his delegation believed the Geneva
process had done a lot of good work and there was a wide base for accelerating the negotiations and
for developing momentum.  Members had not quite been able to generate engagement on the criticalissues and this had created a vacuum which sucked in political power from other quarters.  One
should be cautious in such an analysis, but it was not a question of trans-Atlantic processes
supplanting the multilateral process, it was rather a question of trans-Atlantic cooperation filling a
void.  He had always made the same point on the sub-theme of this issue, transparency in the WTO.
Countries like New Zealand needed transparency, so as to ensure that their vital interests were takeninto account.  However, pushing this too far with elaborate arrangements on transparency would drive
the process underground, so it was completely counterproductive for small countries to try to do so.
This seemed to be understood by many delegations and the situation was reasonably satisfactory at the
moment.
76. The two major trading partners had made it clear that they could not do this alone.  They were
not amateurs and they appreciated that this could not be pushed onto 145 countries.  After all, during
the Uruguay Round when it had come to an essential component like agriculture, a null result could
not even be enforced on the then 12 countries of the Cairns Group.  That was the political message
form Montreal and also from Brussels.  Of course, engagement made people nervous because it meant
having to shift set positions which had taken time to arrange in capitals, and some of these concernswere quite legitimate.TN/C/M/9
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77. New Zealand's concerns were that it wanted a seat on the train with a nice view of the
agricultural countryside.  At the present, New Zealand could not find a seat with a view, but it was not
nervous about this.  This rested on a simple and robust political judgement that those countries that
had severe political difficulties in delivering on the Doha mandate on agriculture knew perfectly well
that there could not be balance in this negotiation without delivering on the key words of paragraph 13in the Doha mandate: "We recall the long-term objective referred to in the Agreement to establish a
fair and market-oriented trading system through a programme of fundamental reform".  He wished to
underline the words "fundamental reform".
78. From New Zealand's experience, the wagon containing its favourite agricultural seat was
particularly heavy and the train needed to develop momentum to get going.  Taking account of the
United States' statement, New Zealand would do what  it could to add momentum to this new sense of
engagement.
79. The representative of Costa Rica welcomed the efforts of the TNC and General Council
Chairmen to fulfill the Doha mandate and ensure that Cancún would give a boost to the negotiations
and result in negotiations on the four Singapore issues.  There had certainly been some difficulties,
but the collective work undertaken had made it possible to see to it that although some deadlines were
missed, the momentum was still there.  His delegation detected a will to maintain the momentum sothat the Ministers would be able to provide a positive push in Cancún.
80. Costa Rica attached great importance to the May deadlines for market access of non-
agricultural products and the DSU review.  His delegation was happy to see that progress had been
made as outlined by the Chairman of the Negotiating Group on Market Access and that there were
moves towards convergence.  Costa Rica supported an ambitious result in these negotiations whichencouraged South-South trade, included all sectors,  consolidated the tariffs systems of all Members
and applied a general formula which would lead to substantial reductions in tariffs for all Members.
However, at the same time, Costa Rica supported specific and limited flexibilities for developing
countries.
81. Turning to dispute settlement, his delegation welcomed the framework document and would
contribute to its elaboration and the inclusion of new paragraphs, and to the objective of reaching
agreement at the end of the month.
82. Everyone knew that links between the issues existed, and Costa Rica believed that the best
way for Members to use these links was for them to maintain their high levels of ambition in their
main areas of interest, but also to show flexibility in areas where they were not demandeurs.  Such
transparency did not mean that Members were running the risk of losing the game, it was rather a
scenario in which all Members could win.  It would require the necessary flexibility and a strongermeasure of transparency, and would facilitate the exchange of concessions so that the more difficult
areas could be re-examined in a serious and responsible way by capitals.  The principle that nothing
was agreed until everything was agreed allowed Members to use positive linkages without any risk.
Notwithstanding the frustration Costa Rica felt at the lack of progress in areas of fundamental interest
to it, he wished to reaffirm the unwavering support of his government for the Doha Agenda, without apriori exclusions.
83. He was in total agreement with New Zealand that this Round was the opportunity for
Members to do what was needed in favor of developm ent and if one looked at the list of development
issues, at the top would be the elimination of distor tions in agricultural trade and textile and clothing.
Costa Rica would perhaps have an even broader approach for the elimination of distortions inagricultural trade and in non-agricultural products as well.
84. Costa Rica was convinced that mediocre results in this Round, or any changes in the dates
that had been set, would be grave because the world economy needed the boost that higher levels of
trade could provide.  Not achieving this could be very damaging to developing countries, such asTN/C/M/9
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Costa Rica, due to the direct links that existed between trade and economic growth and trade and
development.
85. The representative of Chinese Taipei said that  despite the considerable delay in the progress
of the DDA, his delegation wished to express its gratitude to the Chairman, all the negotiating group
Chairpersons and the Secretariat for their efforts in keeping a forward momentum in all thenegotiations.  Some time ago, and again today, the Chairman had said the DDA was facing imminent
gridlock.  As the saying went, an optimist saw an opportunity in every calamity.  If Members did not
lose hope, the current gridlock could be translated into opportunity, and Chinese Taipei fully
subscribed to the Chairman's message at the last TNC meeting for the construction of positive
linkages among the different negotiation issues.  While many issues remained to be tackled, his
delegation was encouraged by the positive signals of Members' readiness for greater levels of
cooperation which was a key to the success of this Round.  It was also encouraged by the UnitedStates' statement at the present meeting as it sent positive signals.
86. To ensure success at the Cancún Ministerial Conference, Members could not overload the
agenda for Ministers by postponing the discussion on all the tough issues.  In the last few months
before Cancún, it was critical that the momentum be maintained and that greater flexibility be
demonstrated.  It was imperative that Members meet the mandated May deadlines on non-agriculturalmarket access modalities and improvement and clarification of the DSU in order to loosen the
gridlock and pave the way for positive linkages.
87. Furthermore, the failure to reach a permanent solution on TRIPS and Public Health had
eroded the confidence of most LDCs and developing-country Members in active engagement in the
DDA negotiations.  In light of the recent outbreak of SARS, a highly infectious yet previouslyunknown disease that was posing a serious threat to the entire world, his delegation strongly
encouraged Members to start afresh and find a permanent solution to the issue of TRIPS and Public
Health as soon as possible.  By reaching a consensus on this issue, the confidence of all Members in
participating in the Round would be restored.  At the same time, Members would also be sending a
strong message to the outside world that work at the WTO was worthwhile and important.
88. His delegation joined the United States in pointing out that newly-acceded Members had
made significant commitments for their accessions, some even beyond the requirements of the
Uruguay Round.  For example, the average tariff rates for industrial products of newly-acceded
Members were between 4% and 9%, with almost all of the tariff lines 100% bound.  Bearing in mind
that even some developed Members did not have their tariff lines close to being fully bound, newly-
acceded Members needed a reasonable period of time to effectively carry out the commitments.  His
delegation would therefore urge Members to take this factor into favorable consideration.
89. The representative of Kenya associated his delegation with the statement made by Morocco
on behalf of the African Group.  His delegation believed that the Negotiating Group on Market
Access Chairman's report was a balanced reflection of what had taken place so far.  Although the
majority of Members seemed to be inclined to use a formula approach, it would need to be handled
with caution to reflect developing-country interest s, including less than full reciprocity both in its
application and results.  Kenya's initial assessment was that it did not seem to favor developing
countries, particularly those from Africa, a point amplified at the present meeting by Egypt.  This was
the reason Kenya and a number of other African countries had proposed that developing countries
should be allowed to determine for themselves any further liberalization, including reduction
commitments.
90. Non-tariff barriers should be, as much as possible, discussed in the negotiations on non-
agricultural market access, and this not withstanding his delegation's expectation that the Negotiating
Group Chairman, in proposing elements for modalities, include in concrete terms the special interests
of developing countries, including less than full reciprocity in accordance with the relevant provisions
of Article XXVIII bis of the GATT 1994 and paragraph 50 of the Doha Ministerial Declaration.TN/C/M/9
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91. Negotiations in the Committee on Trade and Environment Special Session were converging
towards specific trade obligations in a number of MEAs, which was a good move as it would help
Members focus on the relationship between existing WTO rules and specific trade obligations set out
in MEAs as provided for in paragraph 31(i) of the Doha Declaration.  On environmental goods, the
Special Session would need to give specific inst ructions to the Market Access Negotiating Group on
what constituted environmental goods.  Both the OECD and APEC lists had been proposed by some
Members and were good starting points which might not favor the products of export interest to
developing countries.  Kenya also expected that the environmental goods identified by the CTE in
Special Session would be subjected to the same rules contained in paragraph 16 of the Doha
Declaration.
92. It had been encouraging to hear from the Agricultural Special Session Chairman that some
progress had been made, though work still needed to be done to bridge the differences that existedamong Members.  Despite this progress, Members w ould need to show some flexibility to move from
their entrenched positions and accommodate the views of other Members, which would require all
Members to make a sacrifice, particularly developed ones.
93. Developments in the current request and offer process on services should be evaluated in light
of the progress on GATS rules and the negotiations that were within the DDA.  Lack of progress inother areas of the negotiations made it difficult to evaluate potential specific commitments a country
might wish to undertake in order to come up with initial offers.  That was why most of the offers on
the table reflected the status-quo as stated by the Special Session of the Council for Trade in Services
Chairman.
94. Kenya expected a broad and equitable outcome in the DSB Special Session that would ensure
the integration of weaker Members into the multilateral trading system.  This should include, but not
be limited to, collective retaliation, a proposal that had been put forward by the African Group.  The
provision on technical assistance, especially the establishment of a fund that was touched upon by
Morocco, would be useful for training legal experts from developing countries.  Kenya had made its
position crystal clear on TRIPS and Public Health and S&D treatment and was committed to findinglegally binding and practical solutions on these issues before the Cancún Ministerial Conference.
95. The representative of Nigeria associated his delegation with the statement made by Morocco
on behalf of the African Group.  The pace of the services negotiations did not seem to take into
consideration the capacity and constraints of African countries, for it was quite clear that these
countries would require more time to catch up with the process.  His delegation believed that there
should be balanced progress between the various components of these negotiations.  It was equally
pertinent to conduct an evaluation of the results attained in terms of the objectives of Article IV of theGATS in accordance with paragraph 15 of the Guidelines and Procedures for the Negotiations on
Trade in Services.  Nigeria had participated actively in the dispute settlement negotiations and hoped
that a broad and balanced package would emerge at the end, which would assist developing countries
and LDCs to integrate into the multilateral trading system.
96. His delegation welcomed the intense level of discussions on non-agricultural market access in
the Market Access Negotiating Group, and noted that in addition to intensive discussions on tariffs,
more detailed discussions had begun on non-tariff barriers.  It could be said that negotiations had
reached a fairly advanced stage, but the issues had yet to be fully and exhaustively discussed.
Furthermore, the Negotiating Group had only begun to seriously discuss the subject of non-tariff
barriers, and judging from the debate so far, there was a wide degree of divergence on the variouselements raised under the subject of NTBs.  His delegation was concerned about the Negotiating
Group Chairman's attempt to come up with an initial draft of negotiation modalities, while
acknowledging the pending May 2003 deadline.  Although his delegation sympathised with the
Chairman's desire to meet this deadline, it urged caution and restraint in having an initial draft at this
stage.  He wished to reiterate Nigeria’s continued support and commitment to the process.TN/C/M/9
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97. It was regrettable that the TRIPS Council had been unable to come up with a solution to
paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health.  This was a
disturbing situation considering the health crisis facing many countries, especially in Africa, which
were afflicted by diseases like HIV/AIDS, malaria and others.  This was a moral and humanitarian
issue to which all Members should strive to find a solution before the Cancún Ministerial Conference.A resolution on this matter, would not only improve the outside world's image of WTO, but also
impact positively on other areas of the negotiations.
98. His delegation appreciated the work of the Council for TRIPS Special Session Chairman on
the establishment of a multilateral register for wines and spirits, including the draft text produced on
his own responsibility.  While Nigeria believed in establishing a system by the Fifth Ministerial, it
wanted the issues contained in the Chairman's draft to be further clarified before taking commitments.
The system should be voluntary and not burdensome, either financially or otherwise.
99. Nigeria welcomed the report of the Chairperson of the CTE Special Session and the work
done so far, including the new contributions made aimed at clarifying some of the issues.  The
interests of developing countries should be fully taken on board in these negotiations, including the
provision of technical assistance and capacity building, to enable them to meaningfully participate in
the negotiations and benefit from the outcome.
100. Finally, Nigeria believed that resolving the development-related issues on the agenda during
the preparation for Cancún would enhance the prospects for a successful Ministerial.  Since the Doha
Agenda had been dubbed a Development Agenda, it was imperative to resolve, as quickly as possible,
issues of concern to developing countries su ch as TRIPS and Public Health, S&D treatment,
implementation-related issues and concerns, and agriculture.  It was also important to providetechnical assistance and capacity building to enhance developing countries' participation and
confidence in the multilateral trading system.  Nigeria was prepared to participate fully and actively in
all areas of the negotiations so as to achieve a balanced outcome in all the negotiating mandates given
by the Ministers.
101. The representative of Mexico said his country intended to present an initial offer on services
in the coming days.  Dispute settlement was fundamental, not just for Mexico, but for the system.
Someone had said it was the cornerstone and jewel in the crown of the WTO and to make certain that
the system remained effective in the future, it had to be consolidated and improved.
102. In the discussions of the past months, the revision of the dispute settlement mechanism had
become much more complex than Members had expected, despite the admirable efforts of the DSB
Special Session Chairman.  The large number of proposals had prevented Members from coming
close to a satisfactory solution in this area and the problem today was that Members had a very broadlist of proposals.  In fact, Members were proposing changes to 23 of the 27 articles contained in the
DSU with the addition of six new articles and a proposed appendix.
103. Mexico saw the problem in the proliferation of proposals as being the lack of diagnosis to
enable Members to find their way through these proposals.  A method was needed that would allow
Members to create a hierarchy for the proposals, so they could look at which ones were the mostimportant and which deserved to be incorporated in an agreement.  In other words, Mexico felt that
negotiators were analyzing the various trees and birds in the forest, but no one had a complete overall
view of the forest.  For this reason, his delegation wished to propose that all Members, for the time
being, put aside proposals from the present until Cancún and carry out a deep, serious and responsible
examination of the dispute settlement mechanism to detect the main problems to be resolved.  Onlythen could Members use, classify and create a hierarchy for the proposals before them.
104. Mexico would like to initiate this process with three themes that it thought were fundamental,
and were the main challenges in improving the system.  First, there were too many cases which had
been initiated under the dispute settlement mechanism.  To date, 290 cases had been presented andTN/C/M/9
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this clearly demonstrated that Members were no t complying with the obligations under the WTO
agreement.  Second, there were no adequate incentives to encourage Members to comply with the
recommendations and rulings of the DSB.  Finally, there was clearly an accessibility problem to the
system by many developing countries.
105. Mexico felt that these were the main problems connected with the dispute settlement
mechanism.  However, his delegation was ready to discuss these ideas so as to have an accurate and
deep analysis of the problems that all Members wished to resolve.  This diagnosis should serve as a
basis for a well defined mandate in Cancún, and it should enable Members to maintain their
orientation within the forest and guarantee a successful outcome for this exercise.
106. On the negotiations overall, his delegation generally agreed with many of the points raised by
New Zealand, and it noted a renewal of constructi ve spirit on the part of many Members.  His
delegation applauded the flexibility shown by the United States with the view of maintaining thedynamics of the negotiations.  It also acknowledged the efforts by the European Communities and
hoped that these efforts would also be shared by the member states of the European Union in the
coming days in their analysis of CAP reform.  Mexico hoped that the evaluation of the political costs
that Members would incur in CAP reform would be offset by the benefits, in terms of the internal
political costs that would be offset by the external economic improvements stemming from majorreform in agriculture.  The recent positive signs seen in Paris and in Geneva should be reflected in
tangible, more concrete and more specific results in Geneva.
107. Finally, his delegation believed that no-one wanted to go to Cancún with only the results
which were on the table at the present, so intensive work was obviously required on all fronts in the
remaining weeks.
108. The representative of Australia commended the Chairman's leadership in seeking to press
forward in the negotiations, generate a sense of urgency and impress upon Ministers the need to
translate their political will into fresh instructions.  His delegation agreed with the Chairman's
assessment that gridlock, which could have resulted from the four missed deadlines, had so far been
avoided, yet there was no reason for satisfaction or a great deal of reason for optimism becauseMembers were still very much poised on a knife's edge.  There was no hiding the fact that unless there
was some movement before or at Cancún, the target date of 2005 would be at serious risk.
109. His delegation, like others, had been struck by the upbeat nature of the comments in Paris the
previous week by not only the OE CD Ministers, but also a number of other WTO Members, and it
was pleased that they had reaffirmed their commitment to fulfilling the Doha mandate.  They had
reaffirmed their commitment to getting the job done  next year and to an ambitious, balanced and
equitable outcome.  But at the risk of giving this a Geneva perspective, his delegation had also beenstruck that there had been very few signs of the flexibility that would be required to produce the
desired result.
110. By having missed the four deadlines, and with another two or three critical deadlines coming
up in the four months until Cancún, Members were threatening to backload a lot of the decisions onto
Ministers, and it was clear from the informal discussions so far that there were major differencesamong Members about the appropriate mix of taki ng note, guidance and decisions that would be
required in Cancún.  His delegation had detected from the discussion at the informal session of the
TNC that there was a great deal of difference as  to how Members thought they would arrive at a
result.
111. To Australia, market access was the backbone of the WTO, and it was the core of the Doha
Round as it was the area which had the potential to deliver the best development dividend to the large
majority of the Membership.  It was imperative that, as Members worked on non-agricultural market
access, their sights were kept high.  All empirical research showed that almost everyone stood to gain
from further reductions in tariffs and non-tariff measures, and his delegation looked forward to theTN/C/M/9
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following week's meeting with representatives of the World Bank and the IMF to listen to their
analysis and to discuss how they could help any countries which might have a problem in adjusting to
lower levels of international trade barriers.  His delegation also looked forward to the Negotiating
Group on Market Access Chairman's paper the foll owing week, and endorsed the comments by the
United States on what that package should contain.
112. On agriculture, everybody knew that an agreement on modalities before or at Cancún was
absolutely imperative.  Without agreement at Canc ún, this negotiation would be badly deadlocked and
there would then be little hope of meeting the target date.  He would not say a lot of what was
required to move those negotiations forward for he  thought most people in the room knew what was
required.  It seemed that while Members were making some progress under the Agriculture Special
Session Chairman's guidance, there would be a limit to the time that Members could continue to tread
water while waiting for those who were so far unable to meet the mandate to catch up with the rest.
113. Australia agreed that services, S&D treatment, Singapore issues and rules would be the
headline issues in Cancún.  It also hoped that progress could be made on the DSU, working on the
assumption that there would be a solution to the TRIPS and Public Health issue impasse before or at
Cancún.  The Chairman of the Negotiating Group on Rules had made an excellent point in identifying
the benefits for all of a more transparent and cleaner process for examining RTAs.  All Membersengaged in RTA negotiations at the present – just about everyone – claimed that regional initiatives
would be a building block for the multilateral trading system in public rhetoric, but there were a
number of dubious preferential agreements in existence, and there was prospect for more to come if
there was no success in these negotiations.
114. MFN was now an exception, not the rule, and it seemed that Members had gone full circle
from the views of those who had met in Havana 56 years ago and decided that the best way of dealing
with world economic cooperation was through the MFN principle.  It seemed that there would soon be
146 different levels of tariffs based on all sorts of political, strategic and non-trade considerations.  So
it was in everyone's interest to find a more transpar ent way to deal with these issues in the future.
Members should look not just at transparency, but also at hard rules – how some of the conceptsregarding substantially all trade were defined.
115. His delegation appealed to everyone to adhere to the DDA mandates.  There was already a
large agenda and those who wanted to add new issues should reconsider, because Members would
have enough problems digesting the existing mandates let alone dealing with those issues that others
would have liked to see included in the Doha ne gotiations.  There had already been efforts to dumb
down the agricultural mandate, and this was not going to work because it was clear that those who
signed on to it wanted to see a success based on that mandate.  His delegation was concerned that, inthe case of wines and spirits, Members – especially with some of the current text on the table –
wished to go way beyond the current mandate.  Since this reached beyond the Ministers' mandate, it
threatened all sorts of problems for those negotia tions.  Attempts were being made to prevent the
Secretariat from providing the kind of advice that would help delegations participate in those
negotiations.  His delegation appealed to all Members again to faithfully respect the mandates thatMinisters had agreed in Doha.
116. The representative of India said many interesting and important points had been raised at the
present meeting.  The issue of balance in the outcome of the negotiations referred to by the United
States was an extremely important concept, and undoubtedly the success of the negotiations would
depend on balance in the outcome.  There could not be some winners and some losers – all Membershad to gain equally from the overall result.
117. He said there could be balance within sectors and balance between sectors.  The Uruguay
Round Agreements had mandated sectoral and limited negotiations, particularly in agriculture and
services.  When Members had decided on a broader Work Programme at Doha, the sectoral approach
had been jettisoned in favour of a balanced outcome across sectors.  His delegation was concerned toTN/C/M/9
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hear talk of balance within sub-sectors of particular sectors, specifically in the area of non-agricultural
market access.  If balance was sought within sub-sectors, overall balance within the sector would be
difficult to achieve.  A balance within a particular sub-sector would mean that those countries that had
strengths and comparative advantage within that sub-sector would find it more difficult to show
flexibility in the other parts of that sector, which would undoubtedly complicate the negotiations.
118. There also had to be balance in the outcome between countries and groups of countries with
diverse interests, and it was necessary to be extremely sensitive to the political compulsions and
commercial needs of all Members.  The WTO had evolved into a deeply unpopular organization in
many parts of the world.  The Doha Work Programme gave Members an opportunity either to correct
its image or to reinforce it, and his delegation hoped that all Members would seize this opportunity so
that, by the end of the negotiations, the image of the organization would be considerably improved.
In the long term, this was far more important for what the WTO stood for than short term gains.  Hisdelegation hoped that Members would decide collectively to opt for a statesmen-like approach rather
than a mercantilist one.
119. It was important in this context that the development dimension of the Doha Work
Programme retain its primacy, which was essential to the balance implicit in the Doha Ministerial
Declaration.  India would like a greater appreciation of the demands made by developing countries.Members should resist the temptation to define the needs of development in terms of particular parts
of the negotiations, such as market access, and to denigrate the demands made by developing
countries in areas such as implementation and S&D treatment.  Constructive engagement in all areas
would create an atmosphere of trust which would facilitate the progress of the negotiations.
Furthermore, a large number of developing countries expected results on the issue of internaltransparency in the process leading up to and at Cancún.
120. On the reports by the Chairpersons, his delegation agreed with the views expressed by Egypt
and Kenya on non-agricultural market access.  The acceptability of the elements paper now under
preparation would depend on the extent to which it conformed to the decision taken in paragraph 16
of the Doha Ministerial Declaration.  His delegation also attached the highest priority to the principleof less than full reciprocity and the need to adhere to the principles outlined in GATT Article
XXVIII bis.  His delegation had noted the point made by the Negotiating Group on Rules Chairman
on RTAs and it would shortly be circulating a paper on this subject, which it hoped could contribute
to the debate.
121. His delegation also agreed with the observations made by New Zealand on the Geneva
process.  It was in this process that delegations reflected national positions, hence, the effectiveness of
the process would be directly proportional to the degree of convergence among capitals.  As suchconvergence grew, there would be a sea change in the atmosphere at Geneva and the speed at which
Members worked.
122. The representative of the European Communities agreed with India that there had been a
number of interesting and substantive interventions at the present meeting, which was a good omen.
It was important to work on convergence in the negotiating groups and in the framework of theGeneral Council, because all the issues and processes had to come together in Cancún and be part and
parcel of the overall balance that Members wanted to achieve.
123. The European Communities supported the efforts of the General Council Chairman to resume
the work on S&D treatment and to reach agreement on a substantive package of agreement-specific
proposals by Cancún.  The Community agreed wi th the suggested process, and would work
constructively with him and all partners with an open mind.  The Community also welcomed the
intention of the General Council Chairman to consult on the modalities for the Singapore issues with a
view to their adoption in Cancún.  It agreed with the United States that Members should move to
negotiations on all four issues at Cancún, and subsequently each of them would be dealt with on its
own merits.  Also in the context of the work of  the General Council, the European Communities, likeTN/C/M/9
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others, very much hoped to find a resolution to the TRIPS and Public Health issue before Cancún and
it knew that the TRIPS Council and TNC Chairmen were working hard on this issue.
124. Like others, the Community welcomed the statement of the United States, and it could agree
with most of it, in particular that Members collectively needed to maintain a high level of ambition
and that the negotiations had to be concluded on schedule, a point repeatedly made by the TNCChairman.  Members needed to have a definite development focus in the DDA, and they had to seek
an overall balance which included a balance among market access aspects, rule making aspects and
other concerns.  The Community, like others, was en gaged and ready to work with the Chairman and
with its partners to achieve this ambitious agenda.  Collaborative action, not only between major
partners but among all constituencies, would be important to help the Chairman guide Members to
success at the Fifth Ministerial Conference.
125. With regard to the broad areas where Ministers should take decisions or give further guidance
at Cancún, the Community agreed with the United States that Members had to adopt modalities on
agriculture – a sentiment echoed by many Members – and on non-agricultural products.  It was
important to keep up the momentum of the negotiations on services.  Also at Cancún, all the
development-related issues had to be dealt with, especially S&D treatment, implementation and
TRIPS and Public Health, modalities had to be adopted for the Singapore issues, and further guidanceand momentum would be needed in the rules and environmental negotiations.
126. In the review of the DSU, there were a considerable amount of proposals on the table with a
broad spectrum of issues, and different constituencies had different priorities on the Chairman's
revised framework paper.  The Community was committed to achieving substantial results by the end
of May, but Members should avoid putting form before substance.  Instead, they should take stock ofwhat would be agreed by the end of May, while keeping the negotiating exercise open between May
and Cancún, and possibly beyond.
127. On non-agricultural market access, the Community agreed with the United States that an
ambitious approach was needed in the interest of both industrial countries and developing countries.
A single formula approach was needed, but it should be compatible with developing-country concernsthrough a meaningful approach to S&D treatment and to sectoral complements, which should be
tailor-made to the interests of developing countries, especially LDCs.  The issue of low duties should
be addressed and the Community was looking forward to the Negotiating Group Chairman's modality
paper.  Once it was on the table, Members could engage in negotiations on modalities and be on the
way to convergence.
128. On wine and spirits, he looked forward to the genuine negotiating text on which the Special
Session of the Council for TRIPS Chairman was working.  However, a multilateral registerestablished only on a voluntary basis would not meet the mandate and was of no interest to the
Community.  The register had to have legal effect and the Community disagreed on this with
Australia.  The extension of geographical indications beyond wines and spirits was of considerable
interest to the Community.  Until now, Members had been bogged down on procedure with no serious
discussion on this item, given the different interpretations of paragraph 12 of the Doha MinisterialDeclaration.  There were also different views on future action, but this could not be a reason not to
engage in serious discussion.  The Community therefore agreed with the suggestion by the United
States that the TNC Chairman, as Director-General, should take this matter in hand through intensive
consultations.
129. On the environment negotiations, the Community was encouraged by the first participation of
the MEA Secretariats and UNEP in the Special Session.  This had been useful and Members should
take advantage of this in their future work.  The Community thus supported Ministers endorsing the
practice of giving observer status to MEAs and UNEP in the CTE Special Session, without prejudice
to the general issue of WTO observership.  This would be one of the decisions that could be taken inTN/C/M/9
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Cancún, and the Community hoped that in the work on paragraphs 31 and 32, other recommendations
could be arrived at in the field of environment.
130. On the rules negotiations, the Community agr eed with the Negotiating Group Chairman that
all parties had a stake in RTAs and it supported him in swiftly moving to conclusions on the
transparency aspect.  On anti-dumping and subsidies, work was on track.
131. The Community thanked the Agriculture Special Session Chairman for his hard work on
technical issues and the focused discussion and progress thus far.  There were still wide gaps in key
areas and obviously there was a need for intensive consultations between Members without which the
Chairman would lack the necessary guidance for his work.  The Community was satisfied with the
process so far on services, and it was important to note that 10 of the 23 initial services offers
originated from developing countries.  That was an important signal and the Community hoped that in
the weeks to come, more services offers would be forthcoming.  In terms of the multilateral work inthese negotiations, Members should reach agreement on modalities for the special treatment of LDCs.
Finally, the Community believed that the substantive discussions at the present meeting was a good
sign.
132. The representative of Pakistan said he fully  shared the European Communities' view on the
interest the present meeting had generated.  The TNC was frankly taking stock of where Members
stood and where they were going.  He also agr eed with New Zealand's remarks about the Geneva
process and the outside process, and said both were important and complimented each other, rather
than one replacing the another.  During the past few months, it had been commonly believed that the
Geneva process was dying, and most delegations had looked apprehensively at the coming series of
mini-Ministerials.  The only way to find out what was happening was through press reports andthrough conversations overheard at a dinner or lunch, if one was lucky enough to be invited.  The
informal meeting of the previous day was the first time delegations had received first hand reports and
his delegation welcomed such moves towards transparency.
133. At the start of the Round, there had been a lot of talk about transparency, and the previous
Chairman of the General Council had almost finalized a document to that effect, but it had notreceived consensus.  His delegation had hoped that since most of the work had already been done and
there were very few points which needed sorting out, it would have been finalized by now, but it
seemed to have been placed on the backburner.  This gave the signal that transparency should be kept
to the side and was convenient to talk about when it had no impact.
134. The Chairman of the Negotiating Group on Rules had referred to the short meeting on RTAs,
and his delegation believed that no-one wanted to discuss the issue because Members knew that,
under the cover of RTAs, they were all doing what they should not be.  They were negotiating tariffpreferences on a sectoral basis and mostly on political considerations without any regard to the
fundamental GATT rule of MFN.  His delegation agr eed with the statement on this by Australia and
India.
135. Pakistan agreed with the United States that development should mean market access.
However, market access was being granted by taking market share from one poor country and givingit to another.  All the recent initiatives for LDCs and others were at the expense of other poor
countries.  Therefore, Pakistan hoped that when the Chairman of the Negotiating Group on Market
Access presented his paper, the interests of developing countries would be in the forefront.  It was
well known what interested most developing countries and where there were maximum barriers to
trade – both tariff peaks and NTBs.  Members might have grandiose plans, but they should at leastachieve success in certain sectors.  Pakistan wish ed to remind Members that the deadline to complete
modalities on this issue was 31 May and this did not appear to be reachable.  His delegation was also
encouraged by the United States' comments on TRIPS and Public Health, and its expectation to
resolve the issue before Cancún was welcome news.TN/C/M/9
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136. On services, the Special Session Chairman's comment about standstill offers was noteworthy.
Nevertheless, Pakistan appreciated some aspects of the European Communities' recent offer, in
particular their finding a way around the Economic Needs Test and the increase of time under Mode 4
to make it more realistic.  However, his delegation wished to reiterate that during the course of the
negotiations, full adherence to and implementation of the Negotiating Guidelines and Proceduresadopted by the Special Session, and the provisions of GATS Articles XIX and IV should be ensured.
137. From the statements heard at the present meeting, participants had received mixed signals.
Apparently, a lot of work was required in all areas to prepare a meaningful package for Cancún.  His
delegation wished to echo the Chairman's remark that Members should try to reduce the burden
manifold, and hoped that such a package could be prepared without drastically reducing the level of
ambition and without losing sight of the clear mandate given by Ministers, while ensuring that the
development dimension of the Doha Ministerial Declaration was preserved.
138. The representative of Chile welcomed the message of the United States, for it expressed a
change in attitude to give new leadership to the negotiations, and agreed with Mexico on dispute
settlement.  His delegation thanked the European Communities for their recent contribution on fish
subsidies which would change the very tone of the negotiations.
139. The negotiations on the multilateral register for wines and spirits under Article 23.4 of the
TRIPS Agreement required Members to facilitate and enhance the registration of geographic
indications for wines, and also for spirits, which Members had accepted to add later.  Some Members
had suggested going beyond this obligation and, rather than facilitating things, they had suggested
stepping up the level of protection.  Going beyond the existing framework of obligations in this way
would take Members in a direction which Chile did not feel was right.  These Members were alsopushing for a compulsory registration system rather than a voluntary one, which went against the very
principle of territoriality – a fundamental element of intellectual property protection.  These proposals
would take Members out of the framework within which protection of intellectual property rights had
been drawn up in WTO and other international institutions and Chile felt that this was going too far.
These Members had suggested a system which would impose obligations not only on Membersparticipating in the system, but also on those which did not participate.
140. He wondered under which conditions one was allowed to create rights and obligations for
Members who did not participate in a given legal system, and since when it was admissible to oblige
countries to take on rights and obligations without having participated in the system and without it
having brought any advantages to them.  These were perhaps the most troubling aspects of these
proposals because they would oblige countries such as Chile to set up a system different from that
established in Article 23.4.  This was not correct, appropriate or constructive and Chile could notaccept it.
141. The representative of Japan, referring to the comment by the Chairman of the Negotiating
Group on Rules about RTAs, said his country fully understood the opportunities and the risks
involved in its relationship with the WTO and the multilateral trading system.  Members should
ponder the consequences of stalled negotiations within the WTO, because now that they had tasted theformidable fruits of FTAs and RTAs, these alternatives would become a cause for concern for
developing economies if the negotiations failed.
142. From the statements of previous speakers, Japan was much encouraged by the prevailing
sense of renewed engagement for maintaining the commitment Members had made collectively in
Doha.  There was a clear willingness to work towards this objective from now to Cancún so thatMinisters would be able to give the process redoubled momentum towards the final goal.  The
informal meetings held recently in Paris had contributed much to providing Members with this sense,
and he welcomed the statement by the United States for providing Members with a concrete
framework for the months ahead.TN/C/M/9
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143. Japan agreed with the six areas identified by the United States as the focus in the preparation
for a successful Cancún meeting.  Japan believed that it was imperative that Members in Geneva
engage in discussions in the six areas in parallel so that Ministers could achieve a balanced outcome at
the Ministerial.  Of the six areas, while it agreed with the overriding importance of the three market
access issues, Japan gave great significance to the Singapore issues, all four of which should bemoved to the negotiating phase at Cancún.  Together with the rules cluster, they comprised elements
which provided Members with overall balance.
144. Japan especially appreciated the United States' emphasis on the development angle, not only
in those areas specifically referred to as the development issues, but also for the importance it gave to
the positive impact of the result of work in market access on development and poverty reduction.
Japan was prepared to address the concerns of developing countries so that Members could have a
concentrated discussion on these development-related issues in preparation for Cancún.
145. On S&D treatment, Japan intended to engage seriously in the approach by the General
Council Chairman, and it suggested that all parties s hould take advantage of his efforts.  On the DSU
negotiations, Japan had been actively engaged in the negotiations with a view to reaching a consensus
on a realistic package of proposals to conclude the negotiations by the end of the month.  However,
his delegation had not yet seen much narrowing of positions, so it seemed difficult to envisionconsensus by the deadline.  In that case, Japan believed Members should continue to negotiate until
Cancún.  However, to reach consensus at Cancún, Members had to structure the negotiations in a way
that enabled more efficient discussions, and Japan believed it was premature to talk about post-
Cancún.
146. On the non-agricultural market access negotiations, Japan supported a single formula
approach as the core modality provided that ther e was flexibility in the formula.  Japan wished to
underline its proposal of targeting average tariff reductions to enable the use of built-in flexibility
while also addressing the issue of less than full reciprocity for developing Members.  Its proposal
would also be able to effectively address tariff peaks by combining the zero-for-zero harmonization in
specific areas, such as textiles, or those of high export interest to developing Members.  Japan alsoattached much importance to S&D treatment.
147. On agriculture, Japan was encouraged that Members had managed to avoid negative linkages
despite having missed the deadline at the end of March.  This did not mean that Members could relax
their grip on the sense of urgency or relax the political will that was driving Members forward.
Members should maintain their negotiating momentum by continuing discussions on the technical
aspects, following which the aim should be to establish practical and comprehensive modalities which
comprised rules elements as well.  Finally, Japan urged all Members which had not yet submittedtheir initial offers on services to do so quickly so as to advance substantive discussions.  Japan wished
to express its commitment to work ing closely with all delegations for a successful Cancún, which
would be crucial for the successful outcome of the DDA.
148. The representative of Croatia said Members were at an important stage in the negotiations,
given that the Cancún Ministerial was only 75 working days away, and they were facing a challenging
situation with a number of important missed deadlines.  This was serious, but it also reflected the
utmost importance of the negotiations and the high stakes involved for all.  The commitment and
sense of engagement by Members to achieve the objectives of the Doha Round mandate should be a
matter of encouragement, and Croatia pledged its commitment to continue working seriously and
constructively with other Members.
149. At an informal consultation the previous day, a large number of delegations had emphasized
the need for transparency and inclusiveness in the ne gotiating process, both in and outside of Geneva.
His delegation agreed with these calls, and hoped that the preparations for Cancún would continue to
be conducted in accordance with those principles, because the decision-making process on future
relations in the global trading system had to have the involvement of all Members.  Inclusiveness andTN/C/M/9
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transparency also meant that all ideas, concerns and proposals had to be taken on board and Members'
unique situations had to be recognized and adequately reflected, especially when it came to the phase
when real decisions and concepts were to be drafte d.  Only by doing so would the ambitious goals set
by Ministers be achieved.
150. These negotiations were inter-linked and Members had different areas of priority, so progress
or setbacks in one area influenced other areas.  However, given that Members were entering a crucial
stage of the negotiations in preparation for Cancún, progress in areas with looming deadlines before
Cancún would be a positive signal that Members were slowly, but steadily coming back on track.
151. Croatia attached particular importance to the negotiations on non-agricultural market access
and hoped that the first draft of the modalities would contain a balanced package in the spirit of the
Doha mandate.  This could only be possible if the modalities took into account the concerns and
positions of the recently-acceded countries expressed in the course of the negotiations.  TheseMembers could even serve as a good example for liberalization in this area, and Croatia hoped others
should follow this example.
152. The representative of Brazil said that at the previous week's OECD meeting, Brazilian
Minister of Foreign Affairs Celso Amorim had shar ed his vision of what the headlines should look
like at the conclusion of the Cancún Ministerial, envisaging the following: "Mexican Minister callsCancún meeting a success: points to breakthrough in agriculture" and "Poor nations' access to
medicine ensured: progress made in all other areas".
153. Judging from the interventions at the present meeting, Brazil believed that all Members
remained committed to the conditions for success at Cancún, which was the only outcome that would
generate the necessary momentum for the timely and overall implementation of the DDA.  As Cancúnapproached, the regular TNC meetings would become increasingly important mechanisms for
assessing the state of the negotiations and establishing parameters for future work.  A number of
parallel meeting were taking place as a means to advance the negotiations, but everything had to
converge at the TNC and the General Council to ensure transparency and legitimacy in the
negotiations.
154. On the implementation issues under paragraph 12(b) of the Doha Declaration, it was
incumbent upon Members to find a way to move beyond the impasses of 2002, and reach appropriate
solutions, to allow developing countries to participate fully in the world trading system.  The mandate
under paragraph 12(b) was clearly directed at negotiations, and this position of principle did not
prejudge the views of any delegation on the substance of any individual proposal.
155. Ministers had placed these issues on the table and it was up to the negotiating process to find
solutions acceptable to all.  At this point, the TNC, as the body in charge of the overall conduct of the
negotiations, should actively supervise and instruct other negotiating bodies to tackle all
implementation issues, with no exception.  Brazil supported the Chairman's endeavours in this regard.
It expected that, whatever the negotiating mechanisms agreed to, Ministers should receive a progress
report in Cancún with recommendations for action on as many implementation issues as possible.  Of
utmost priority to Brazil were implementation issues related to TRIMs and the relationship betweenthe TRIPS Agreement and the Convention on Biodiversity.
156. It was imperative to dispel the growing perception that the commitment to turn S&D
treatment provisions from rhetoric into action was empty and that there was a lack of political will to
deal with these issues, which relegated them to a sort of best endeavour dimension.  Brazil strongly
believed that S&D provisions should be made operational to better integrate developing countries intothe world trading system.  He welcomed the Genera l Council Chairman's initiative to hold informal
consultations to find solutions to this problem, and his ideas on how to deal with the deadlock in this
area seemed realistic and constructive.  This would allow all proposals to be addressed in the course
of the negotiations without prejudging the results.TN/C/M/9
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157. On non-agricultural market access, Brazil was pleased that the negotiations had been
proceeding at a steady pace, due to constructive engagement from Members.  While broad
convergence had emerged regarding the use of a formula approach, differences still persisted related
to the level of ambition in this area.  Brazil was prepared to work towards results that met the
ambitions expressed in the Doha mandate, but it would require a corresponding willingness to complywith the Ministerial mandate in other areas of the Doha Work Programme, in particular the core issue
of agriculture.
158. It was clear that the development of modalities on both agriculture and non-agriculture should
progress in parallel, and his delegation was pleased that the European Communities had explicitly
recognized the linkage between those two areas.  It  was essential that the mandate to incorporate the
concept of less than full reciprocity, which had been explicitly and unambiguously stated by
Ministers, be fully respected in the agreement on modalities for the negotiations.  He wished tohighlight the preceeding point, as had Egypt, Kenya, India and others, because the concept did not
seem to appear in the report by the Chairman of the Negotiating Group on Market Access.
159. Brazil believed that the services negotiations should be conducted in accordance with the
concept of progressive liberalization, allowing the necessary flexibility for developing countries in
opening their markets in line with their national policy objectives, and at the same time, it shouldfocus on sectors of interest to developing countries.  Brazil also attached fundamental importance to
the unfinished business of the GATS, the negotiations on rule making, particularly on safeguards,
subsidies and domestic regulation.  There should be commitment on the part of all Members to engage
substantively with a view to concluding the negotiations under Article X of the GATS within the
remaining time agreement.  His delegation wished to  stress that the services negotiations were not
isolated from the other ongoing negotiating processes in the WTO, particularly in the agriculture
sector.
160. On the DSU, the system had worked satisfactorily until now and Brazil believed that the
current system should be improved, not reinvented, through adjustments, amendments or decisions.  A
fully fledged reform as proposed by some delegations would require much more time than wascurrently available.  At present the mandate could be properly fulfilled by the following: a list of
issues sequencing, remand authority, some enhancement of third party rights, better decimation of
documents and notification of mutually agreed solutions among others.  Premature discussions about
an extension could eliminate the possibility of respecting the May 2003 deadline, which Brazil
believed was important for the consistency of the Round as a whole.
161. Brazil attached great importance to the rules negotiations within the WTO, and was
particularly concerned with the proliferation of abuse of anti-dumping measures and the disruptiveimpact these had on developing countries whose exporting industries were highly vulnerable.  His
delegation wished to stress that the anti-dumping negotiations were closely related to other areas of
the Doha mandate, in particular to further tariff liberalization.
162. Even those who took defensive postures were conscious of the fact that agriculture lay at the
center of the negotiating process.  Failure to arrive at meaningful results in agriculture would put intoquestion the Doha Development Round, since in no other area did developing countries have so much
at stake.  If momentum was lost in agriculture, it would be impossible to sustain it through movement
in other areas.  Members should keep in mind that the Single Undertaking negotiations required not
only that Members seek compensation for concessions on other negotiating areas, but also that
progress be achieved more-or-less simultaneously on all fronts.
163. Brazil had consistently stated that it was prepared to deal in every area of the Doha mandate
and it would do so to the extent that progress indeed encompassed all areas, especially the yardstick
by which it measured this Round: agriculture.  This was obvious, but sometimes it needed to be
restated.  Brazil trusted that progress would continue to be made under the Chairman's leadership and
it was prepared to continue working with the Chairman and the General Council Chairman to achieveTN/C/M/9
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balanced results and to contemplate the legitimate interests of those who were in most need of reform
in international trade and in whose name this Round was launched – the developing countries.
164. The representative of Indonesia said his delegation was encouraged to see from the various
reports by the Chairpersons that there was some movement in the negotiations, albeit slow.  However,
much more had to be done to fulfill the mandate of Doha Ministerial Declaration.  Indonesiaunderstood the difficulties in trying to balance and satisfy the needs and interests of the WTO's 146
Members.  Recognizing these difficulties, his delegation valued the balance that Ministers had
managed to strike in Doha, giving Members a clear mandate and roadmap for the negotiations.  This
balance had to be maintained throughout the negotiation process, and should not only be confined to
the substance of the negotiations, but also to their process and outcome.
165. Although the reports by the Chairpersons showed  some movement in the negotiating process,
which Indonesia welcomed, there were several issues of extreme importance to developing countriesthat were currently at a standstill, and this deviated from the balanced mandate given by Ministers.
166. On the multilateral system of notification and registration for wines and spirits, out of the 146
Members, a large number were non-producers of wines and spirits.  It was possibly due to this that the
TRIPS Agreement, while requesting all Members to give a different level of protection to wines and
spirits, also stated that participation in the multilateral system of notification and registration for winesand spirits was to be voluntary.  His delegation believed that the mandate given by the TRIPS
Agreement was clear, and to ensure a balanced outcome, negotiations on this issue should not deviate
from the mandate.
167. Given the importance of the dispute settlement  mechanism in resolving international trade
disputes, a limited package of negotiation was better than no results.  Even if Members extended thenegotiation, there was no assurance of a comprehensive package.  For Indonesia, the importance of
this negotiation was to improve the quality of S&D treatment in the DSU, in order to enable
developing countries to utilise more fully the dispute settlement mechanism in the WTO.  Members
had heard that the dispute settlement mechanism was the jewel in the crown of the WTO, but if only a
limited Membership could use this mechanism, then more work had to be done to improve thismechanism.  Any outcome in the DSU negotiation without a significant improvement of S&D
treatment was not a significant result.
168. Only a few days remained for negotiations on the modalities in the Negotiating Group on
Market Access and Indonesia urged the Group's Chairman to circulate his paper as soon as possible so
Members could have sufficient time to consider it.  His delegation expected the Chairman's paper to
be balanced, taking into account every Members' interests, especially developing countries, to give
effect to the development agenda in the negotiations.  While Indonesia recognized the importance oftrade liberalization to promote economic growth, liberalization should be carried out in a systematic
way and at a pace and manner which was in keeping with the special circumstances of each Member.
Negotiations should be balanced both in process and in outcome.
169. Non-tariff barriers was an important subject, and the reduction of tariffs as a result of a series
of trade negotiations had increased the relevance and importance of this issue.  However, negotiationsshould not eliminate legitimate measures taken by Members, especially for public policy purposes.  It
was his delegation's expectation that the Chairman's proposal would vigorously operationalize the
concept of less than full reciprocity and give priority to products of interest to developing countries by
addressing tariff peaks and tariff escalation.
170. On the trade and environment negotiations, his delegation welcomed the approach taken by
the Special Session Chairperson, which had enabled Members to share how they had implemented
specific trade obligations (STOs) in MEAs.  Indonesia believed this was a good way to understand the
use and purpose of trade measures in MEAs in general, and STOs in particular.  It was through this
approach that the relationship between existing WTO rules and STOs in MEAs could be betterTN/C/M/9
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understood.  While the presence of MEA Secretariats as observers on an ad-hoc basis in the
negotiation could be mutually beneficial, Indonesia felt that in inviting MEA Secretariats, Members
should first have a clear agreement on their status and the forum of their participation.
171. In the Negotiating Group on Rules, many anti-dumping proposals had been discussed, and the
Doha mandate on clarifying and improving anti-dumping and subsidies rules was of great interest todeveloping countries such as Indonesia.  In this area, S&D treatment should be fully taken into
account to have a balanced outcome for both developed and developing countries.  Finally, Indonesia
welcomed the statement by the United States on focusing work in six areas, and his delegation was
ready to work closely and constructively with the Chairman and all Members to move forward in
these negotiations to achieve a balanced outcome for all.
172. The representative of Thailand said her delegation shared the concerns on the lack of
sufficient progress in the negotiations, within the specified timeframe as mandated by the Ministers in
Doha, particularly on development-related issues such as agriculture, TRIPS and Public Health, S&D
treatment and implementation-related issues.  The priority of work until Cancún had to be set around
such issues to have a meaningful outcome of the Ministerial Conference.
173. Thailand believed that the agricultural negotiations, at this stage, should not only be
concentrated on technical work, but also be focus on the three main pillars of reform in parallel tomake it possible to establish agreed modalities in time.  Her delegation was pleased to hear the
European Communities' assurance that modalities would be adopted at Cancún.
174. In the Negotiating Group on Market Access, her delegation hoped that the Chairman, in his
draft outline, would come up with modalities that a ddressed the concerns of developing countries with
respect to non-trade barriers and S&D treatment.  This should be without any differentiation amongdeveloping countries.  In this connection, it was encouraging to hear the Negotiating Group Chairman
report that the principle of less than full reciprocity would be embodied in his modalities.
175. While Thailand was satisfied with the progress on services made so far in the negotiations, it
believed that attention and efforts should be equally given to rules and issues of interest to developing
countries.  Market liberalization alone would not meet development aspirations if proper rules thatanswered to developing countries' needs were not put in place.  Members had yet to see strong
political will from the major countries to engage faithfully in the emergency safeguard negotiations,
as well as to permit access under Mode 4 of their supply of services.
176. With respect to these three core issues of the negotiations, Thailand sadly noted that some
developed countries were only interested in market access aspects without taking proper and sufficient
consideration of the concerns and interests of developing countries on the specific issues she had just
outlined in each area.
177. On dispute settlement, much work needed to be done hastily to accommodate the Members'
views and concerns so that possible consensus could be reached by the agreed deadline.  Thailand was
pleased that the Chairman was willing to work hard to arrive at a positive outcome.  However, due to
the amount of proposals on the table, her delegation hoped that any outcome arrived at would address
the interests and concerns of all Members.
178. On TRIPS and Public Health, her delegation had been encouraged by the statement by the
United States that there would be a political solution on this issue before or at Cancún.  A positive
outcome on this issue would help build confidence among developing countries.  On S&D treatment,
she appreciated the General Council Chairman's attempts to produce a paper, and his suggestions on
the informal categorization of the Agreement-specific proposals were constructive.  After the longdiscussion on S&D for a year and a half, this approach might be the most pragmatic way to move the
issues forward.  However, Thailand wished to see the negotiations concluded before Cancún withTN/C/M/9
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meaningful results both in substance and value.  Only substantive results on the issue could earn the
trust and confidence of developing countries to engage in other important areas of the negotiations.
179. On implementation-related issues, Thailand hoped that Members would be flexible and
engage in discussions on the problems and the ways to solve them.  It agreed with many delegations
that the outcome in agriculture as well as other development-related issues would be the key forpositive linkages in other areas of negotiations.  Some developed countries wanted to advance the
negotiations only in area of interests to them withou t having to make concessions in areas of interests
to other Members, particularly developing countries.  This situation had resulted in unilateral, not
multilateral negotiations, and if Members were to move the process forward, all Members had to
recognize that they had to give something in orde r to get something in the negotiating process, and
this should be done sooner rather than later.
180. The representative of Cuba said his delegation attached high importance to fulfilling the DDA
mandate, and was ready to cooperate with the Chairman to bring the work to a positive outcome.
There was little time left with much to do and this was urgent.  His delegation agreed with the African
Group, Kenya, India, Egypt and Pakistan, on the question of mini-Ministerials and the need to have
more transparency in the negotiating process, because Members should not learn about progress in the
negotiations in the press.
181. With regard to the statement by New Zealand, Cuba considered that the fundamental reform
mentioned in paragraph 13 of the Doha Ministerial Declaration could not be limited to liberalization
in agriculture, but also include other areas.  Fundamental reforms in the WTO implied the
introduction of the development dimension in the Agreements, and this could be done by S&D
treatment to allow for market access in agriculture, textiles and other products.  S&D treatment aimedat fairer trade was needed to solve the ambiguities in the different provisions of the Agreements.  If
developing countries were unable to use them, the Agreements were not particularly useful to them.
The focus should be on proposals with an important trade content and not merely on procedural
issues.  Cuba agreed with Brazil's statement on development aspects, particularly on implementation.
It was absolutely necessary to take measures to  move this work forward and to make sure that
Members made progress on the proposals which had been on the table for many years.
182. Cuba was unhappy that the TRIPS and Public Health issue had not been resolved and hoped
that an appropriate solution could be found at Cancún without any limitations to the diseases or
medicines covered.  On the Singapore issues, Cuba continued to believe that more study and research
was necessary.  It was not possible for developing  countries, many without experience in these areas,
to commit themselves to new obligations which would incur high costs for them.  New obligations
could not be imposed on such indebted countries without specific development results first.
183.  The representative of Argentina said the discussion at the present meeting was important for
the negotiations, as was the statement by the United States.  His delegation agreed with others that a
sense of convergence was appearing.  The statements by the European Communities and the United
States were welcome in this respect.  Without th e leadership role and commitment of the major actors
in the system, very little progress would be possible.  It was said that danger helped focus the mind,and perhaps a parallel could be drawn between the circumstances of 2001 and the present.  There was
a confluence of various factors impacting on economic growth, employment and other aspects of the
world economy.  In the face of danger there were two natural reactions, fight or flee.  The second
reaction would just postpone the danger, but the prob lem with the first was that one had to be sure
who one was fighting, or what one was defending.
184. Argentina would support any effort to move th e process forward if it respected certain simple
principles, in particular having a level of ambition which respected the Doha mandate and deadlines
in full respect of the balance set out in paragrap h 49 of the Doha Declaration.  Argentina would accept
any agreement which provided equal benefits to all Members, and which harmonized rules on the
trade of all products.  A trading system which allowed subsidies in agriculture while prohibiting themTN/C/M/9
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in other areas, or which had single digit tariffs on non-agricultural products while there were tariffs of
three digits in agriculture was not acceptable to Argentina.  In situations of imbalance, everyone had
to make adjustments, not just one side, and this was the only way to solve problems.  The current
imbalance in the world of finance could also be detected in world trade, and it could be resolved.
Argentina agreed with the Chairman that Members should make the most of positive linkages among
all the negotiating areas.  In this respect, Argentina would do this because it had interests in all areas
beyond agriculture.
185. The report of the Chairman of the Negotiating Group on Market Access had recognized the
divergences which existed on modalities to reduce tariffs and the direction in which the work on non-
tariff barriers was headed.  The relationship between these negotiations and those on agriculture had
to be seen within the framework of positive linkages.  The modalities should take into account the
Doha mandate on less than full reciprocity, the need for different reduction coefficients for developedand developing countries, and the fact that tariff harmonization was not an objective of the
negotiations.  On modalities for non-tariff barriers, the focus should be on barriers which impeded
trade and the role assigned to the group for their treatment.  His delegation would assess the results of
these negotiations in this area in the light of the notifications presented and it was therefore necessary
that the Negotiating Group did not lose control of the question of the notified measures.  The Group'swork on measures which obstructed trade could not be diluted by issues which were outside its
negotiating mandate, such as export duties.
186. His delegation agreed with the Special Session of the Council on TRIPS Chairman's report
that there was divergence of positions among delegations.  Some delegations were trying to introduce
elements which went beyond paragraph 23.4 of th e TRIPS Agreement and paragraph 18 of the Doha
Declaration, and his delegation regretted that these delegations were trying to achieve objectives
which were "TRIPS plus" which put at risk the successful establishment of a system of registration
and notification.  His delegation would continue to wo rk constructively within the framework of these
negotiations as long as the results were consistent with the Ministers' mandate, which it urged the
Chairman to respect.
187. On the DSU negotiations, at previous meetings his delegation had highlighted the need to
focus the discussion on a number of issues which would be likely to achieve consensus before the
deadline.  His delegation hoped that the proposals in the Special Session Chairman's paper would be
in line with the positions which had been expressed.  There were a series of issues that appeared to
have more convergence than others, while others were clearly not candidates for consensus.
Argentina believed the final phase of the work should be undertaken in a realistic manner, to ensure
results for this fundamental instrument for the multilateral trading system.
188. The representative of the Philippines agreed wi th the United States on the need to maintain
the DDA's amb itions and to end the negotiations by 1 January 2005, while ensuring overall balance
for all participants to positively contribute to development.  His delegation had also been heartened by
the positive response of the European Communities.  The Philippines agreed with the United States
that development benefits emanated from the core market access issues, in particular agriculturewhere the greatest development dividend would arise.  Negotiations on the basis of the ambitions in
the DDA would benefit the global community, and th e development outcomes would depend most on
the degree of distortion that would be eliminated from agriculture.
189. The modalities agreed in agriculture should offer a concrete opportunity for returning this
dividend in development aspirations, particularly for developing countries and LDCs.  The formula-based proposals on the table in non-agricultural market access could address different levels of
ambitions, which would depend on those agreed in agriculture.  It was a challenge to integrate S&D
treatment into all the modalities.  On services, his delegation was heartened that ten of the offers came
from developing countries.TN/C/M/9
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190. His delegation wondered how the Singapore issues could be considered part of the
development agenda when developing countries had always insisted that these issues would be
barriers to development discussions and objectives.  His delegation also wondered how negotiations
on these issues could be taking place when the mandate required explicit consensus before
negotiations could start.  Explicit consensus was not the same as passive consensus, and as theEuropean Communities had said, a decision had to be taken on this basis at Cancún.
191. His delegation commended the Chairman of the Services Special Session for his balanced
approach and steadfast commitment to development issues.  The emerging trans-Atlantic convergence
and the leadership of the United States and the European Communities would ensure the success of
the Cancún Ministerial and the Doha negotiations.  His delegation hoped consensus would shortly be
reached on the issue of TRIPS and Public Health.  However, it was concerned at the European
Communities' intention to wait until Cancún on the issues of modalities in agriculture, TRIPS andPublic Health, implementation and S&D treatment.
192. In the Special Session of the CTE, the Chairperson's guidance would help Members overcome
issues on the future of specific trade obligations and MEAs.  The presence of the 6 MEA
representatives and UNEP proved that these organizations were not barriers, but rather friendly
counsellors in the discussion of specific trade obligations, and WTO Members would have to make adecision on their future status.  Finally, his dele gation hoped that with the TNC Chairman's assistance,
good progress would be able to be reported to Ministers in Cancún.
193. The representative of Uganda supported the statements by Morocco on behalf of the African
Group and Kenya.  His delegation believed that market access for non-agricultural and agricultural
products and for services was the best way to ensure development.  The LDCs had undertakenrestructuring programs, but to further that process and the development agenda, it was important to
make progress in allowing agricultural exports by lowering tariffs in agricultural markets and
eliminating subsidies to accommodate products.  His delegation hoped that reforms in domestic
support and export subsidies would be possible.  It looked forward to the reforms of the Common
Agricultural Policy in June and hoped the European Communities would then come forward with apackage which met the concerns of all participants.
194. His delegation looked forward to the Negotiating Group on Market Access Chairman's paper
and – like other developing countries – would carefully examine how less than full reciprocity was
dealt with and the provisions of Article XXVIII of GATT as set out in paragraph 16 of the Doha
Declaration.  His delegation had been encouraged by the statement by the United States that TRIPS
and Public Health could potentially be solved before Cancún.  On S&D and implementation, it looked
forward to the consultations to be held by the Chai rmen of the TNC and the General Council.  On the
question of transparency, being a small delegation, Uganda counted on the Chairman's commitment to
keep all delegations abreast of developments and involved, and promised its full cooperation in all
future work.
195. The representative of Bangladesh, speaking on behalf of the Least-Developed Countries
,
agreed with others that the success of the D oha Round would depend on the extent to which the
outcome could contribute to development and that agriculture, non-agricultural market access and
services contained some of the most important issues before Members in the context of development.
196. At the last TNC meeting, he had already set out the LDCs concerns on agriculture and would
only reemphasize that progress had to be made in view of this sector's importance to the economies of
the LDCs.  Any decision taken might have far-reaching consequences on LDCs and they were hopefulthat the Membership would take their concerns on board.
197. The LDCs commended the initiative of the Chairman of the Negotiating Group on Market
Access to advance the work of the Group.  Many delegations appeared to accept the concept of a
formula-type approach to tariff reduction and the LDCs had been heartened from the clear indicationsTN/C/M/9
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that they would not be required to undertake reduction commitments.  If that was the express
understanding of the Membership, the Group might not take a position on any formula.  For the
LDCs, the key issues in any approach that might be adopted were S&D treatment and less than full
reciprocity, and whatever approach was adopted, these concerns should be taken on board.
198. The Negotiating Group Chairman's report had raised the issue of binding coverage, and it was
hoped that the LDCs would not be required to undertake binding, apart from what they might do on a
unilateral basis.  At this stage, he wished to emphasize how important it was that duty and quota-free
access for LDC products be bound.  This would provide a great deal of comfort in regard to tariff
peaks and tariff escalation, which was so important  to the development of LDCs through growth in
exports.  At the request of the Chairman, many Members of the Group had provided examples of non-
tariff barriers that prevented the entry of their products into other markets, and they expected that the
bulk of such non-tariff barriers would be addresse d within the framework of the Negotiating Group on
Market Access.
199. The LDCs wished to re-emphasize that services were of critical importance to them.  Studies
indicated that the services sector held potential that might be several times more than might be
obtained from complete liberalization of trade in goods.  The LDCs had looked at the offers that had
been tabled and found that some of the key issues of interest to them had not been adequatelyaddressed.  In particular, the LDCs wished to highlight the importance they attached to the temporary
movement of natural persons, particularly unskilled and semi-skilled persons.
200. The Group had submitted a revised proposal on the modalities for the services negotiations,
and hoped that Members would adopt this soon and advance the process of negotiations with the full
participation of the LDCs.  Members would appreciate that due to constraints in their capacity toengage on a request-offer basis, many LDCs had not been able to participate in bilateral negotiations.
201. On the dispute settlement negotiations, the LDCs appreciated the framework document,
which had been issued under the Chairman's responsibility.  They hoped that the document would be
yet another step in the process of the negotiations, as the concerns of the Members were taken on
board.  The LDCs had made specific proposals in this area, which were currently under discussion.The previous day, informal meetings with the Chairman had taken place, but it was still too early to
comment on the outcome of the negotiations.  It was the LDCs hope that the Membership would be
able to take on board their concerns.
202. Frequently, there was a tendency to look at development only in the context of S&D issues.
While S&D provisions in each agreement were vital, the development dimension should be reflected
in the core of each agreement.  The Group was fully supportive of the General Council Chairman's
effort to resolve the outstanding S&D issues.  S&D al so had to be looked at in the context of the on-
going negotiations in other areas, because it was vital to enable LDCs to fully implement the WTO
Agreements and to integrate into the multilateral trading system.  The Group had full confidence in
the Chairman's leadership and would work with him to complete the Doha negotiations.
203. The representative of Djibouti supported the statements by Morocco on behalf of the African
Group and Bangladesh on behalf of the LDCs.  The Chairman of the Negotiating Group on Market
Access had raised many important issues such as the modalities and S&D treatment.  The Chairman
of the Special Session of the Council for TRIPS had mentioned the discrepancies that existed in this
area and both the African Group and the LDCs had submitted papers insisting on the need for
technical assistance.  If Members wanted to acquire more knowledge, technical assistance was
absolutely essential, especially in the area of TRIPS.
204. His delegation agreed with the Chairperson of the Special Session of the Committee on Trade
and Environment that developing countries should co mmit themselves more to the negotiations in this
area and take on board the important issue of the environment in their development.  The Chairman of
the Negotiating Group on Rules had highlighted the problems that existed in RTAs and suggested thatTN/C/M/9
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the work on certain issues in the Group should be stepped up.  The Chairman of the Special Session of
the Council for Trade in Services had indicated that there was some progress, but that it did not meet
expectations.
205. All of this showed that technical assistance was important and the Special Session of the
Committee on Trade and Development might be a good venue to discuss it at length.  Somedelegations wished to know whether the WTO technical assistance given to LDCs actually helped
these countries meet their expectations and become  fully-fledged Members of the multilateral trading
system.  Djibouti believed that, if LDCs wanted to become full partners in international trade,
technical assistance was essential.  His delegation urged the Chairman to insist on this matter with the
IMF and the World Bank and other regional organizations in charge of financial and development
issues.  The participation of these organizations would allow more funds to be available to hold
longer, more detailed regional activities.  Most people could not learn the WTO agreements andunderstand all the rules in two or three days.  Th e WTO Trade Policy Courses in Morocco and Kenya
were a model in this respect.  His delegation urged the Chairman to appeal for better funding for these
courses as soon as possible.  This would be an important step in favour of development.
206. The representative of China said that since this was a development round, it had to live up to
its name by producing results that should contribute to development and bring tangible benefits for
developing countries.  China was pleased that the TNC Chairman and the General Council Chairman
were working on implementation issues and S&D treatment, and it hoped that with the active
participation of Members these efforts would produce positive results.
207. A solution on TRIPS and Public Health would help build confidence among developing
countries, so he hoped that the large pharmaceutical companies would finally give up their resistanceand try to reconcile profit with their social responsibilities.  On agriculture, China hoped that the
Special Session Chairman's modalities would be furt her improved to address the long-term distortion
of the world agricultural market so that developing countries would be able to export products which
enjoyed a competitive advantage on the world market.
208. On non-agricultural market access, China believed the Negotiating Group Chairman's draft
modalities should be improved to address tariff reduction and non-tariff barriers, which had become
an increasingly important obstacle for developing-country exporters.  The principle of less than full
reciprocity for developing countries should be observed, as should the concerns of the newly-acceded
Members and China concurred with Croatia on this matter.
209. China noticed the encouraging developments unde r the leadership of the Chairman of the
Special Session of the Council for Trade in Services in the presentation of requests and offers, and it
hoped there would be parallel developments in the GATS rules negotiations, particularly onEmergency Safeguard Measures and subsidies, which were of great importance to many developing
Members.  Furthermore, the improvement of Mode 4 and the liberalization of maritime services
would be beneficial for many developing countries.
210. On the Singapore issues, much work remained to be done on further clarification in the
various working groups before Members could work on modalities for decision by Ministers.Progress in agriculture and on development issues would help the discussions on these issues.  A very
challenging task was still facing Members, but through joint efforts they should be able to achieve
positive results before Cancún.
211. The representative of Colombia welcomed the initiation of a process of informal consultations
with a view to preparing for Cancún, as his dele gation believed that it would introduce greater
flexibility to the preparatory work.  Colombia ag reed with the United States on the objective of
maintaining a high level of ambition and taking into consideration overall balance in the negotiations.TN/C/M/9
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212. He recalled the importance of maintaining the concepts of development and balance
introduced at Doha.  This included – and was not limited to – S&D treatment, implementation issues,
TRIPS and Public Health and the central importance of agriculture for so many Members.  He was
certain that the Chairman of the Negotiating Group on Market Access would include the issue of less
than full reciprocity in his draft paper.
213. The representative of Korea said participants had recently witnessed positive movement,
which had started at the OECD Trade Minister’s meeting and become more clear at the present
meeting.  His delegation appreciated the United States' initiative of setting out an approach to Cancún
and it also appreciated the efforts of the major countries to maintain, or reinvigorate, the momentum
for a successful Ministerial Conference.  Korea was prepared to participate actively in the
forthcoming process, and therefore it hoped other key players would not forget that transparency and
inclusiveness were required in this process.  Members should also not forget that some of them hadsignificant domestic political pressure being exerted on them.
214. On agriculture, given the wide gaps and intrinsic difficulties faced by some Members, Korea
believed realism was needed in order to make progress.  It would actively participate in the technical
consultations and hoped for a result allowing for flexibility for Members.
215. Korea believed that achieving an agreement on non-agricultural product modalities within the
deadline was essential for a successful Cancún meeting.  It was of utmost importance for Members to
realize sufficient reductions in tariffs, to provide flexibility on sensitive items, and to tackle tariff
peaks and high tariffs.
216. The Doha mandate required a decision on the modalities for all four Singapore issues, and
Korea hoped that Members could prepare concise and horizontal draft modalities, where basicelements, a timeline and S&D related elements could be included.  Korea agreed that the rules
negotiations were on track and that a seamless transition to the subsequent phase of the negotiations
should be ensured at Cancún.  Members were appro aching an important moment in the preparation of
a successful Cancún Ministerial Conference, and Korea was committed to participating actively on all
fronts to achieve a balanced and realistic outcome.
217. The representative of Hungary welcomed the clear expressions of commitment by virtually all
Members on the level of ambition, the end date, the overall balance and the development element in
the DDA.  His delegation hoped that this commitment would be translated into tangible convergence
of actual positions.  Hungary was encouraged by the United States' statement on TRIPS and Public
Health that their objective was to reach a solution before the Ministerial Conference, and it attached
high importance to finding a workable, balanced and multilateral solution to this problem as soon as
possible.  Hungary had always believed that the text of the former Chairman of the Council for TRIPSprovided the best chance for achieving this.
218. Statements had been made at the present meeting that the extension of geographical
indications was not an implementation issues, but, in fact, it was irrelevant whether Members
considered the extension of Article 23 protection an implementation issue or not.  What mattered was
that, as reflected in the second sentence of paragraph 18 of the Doha Ministerial Declaration, allMinisters had decided to address this as such, namely pursuant to paragraph 12 of the Declaration.
Hungary expected movement on this issue no later than Cancún and welcomed the Chairman's
announcement that he intended to intensify consultations on this issue.
219. Statements had also been made on the register for geographical indications, not for the first
time, that certain options in the Special Session Chairman's text went beyond certain delegations'interpretations of the negotiating mandate.  His delegation did not believe that the approach that it had
advocated went beyond the mandate in paragraph 4 of Article 23 of the TRIPS Agreement and
paragraph 18 of the Doha Declaration.TN/C/M/9
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220. Hungary also did not believe that the debate over which proposal fitted the mandate or not
would be fruitful at this stage, since obviously Members did not have a shared interpretation of the
mandate.  Hungary and other delegations whose objective was a register with a strong legal effect
believed that the criticism of this mandate fell short, since the counter proposal would not create a
register but a database of notifications where notification and registration would be substantivelydifferent.
221. The representative of Switzerland said the DSU deadline in May was probably not going to be
met due to differences among Members and the fact there was only one formal Special Session
meeting left before then.  On the positive side, there was some agreement on S&D treatment and the
timeframe, but on the negative side, no consensus could be found on the most important issues.
While some favoured a broad review, other delegation s called for a review limited to “doables”.  His
delegation supported the Chairman's call to hold intensive consultations, essentially in the “grey”areas of the framework document, where the Chairman thought he could reach consensus.
222. His delegation favoured a broad review and supported a system of permanent panelists,
enhancing third party rights and sequencing, on which it would like to see a decision by the end of
May.  On issues not yet ripe for decision, his delegation believed negotiations should be allowed to
proceed and it understood that Ministers in Ca ncún would give Members an updated mandate.
223. Switzerland noted that Members continued to submit a large number of papers on anti-
dumping and subsidies, including fish subsidies, at each meeting of the Negotiating Group on Rules
and it welcomed this involvement.  It had a keen interest in anti-dumping and had co-sponsored a
number of papers submitted to the Group.  His delegation supported those Members who had tried to
reduce the one-sided orientation of the Anti-dumping Agreement towards producer interests and tointroduce a broader view encompassing competition policy aspects.  His delegation favoured limiting
the room for manoeuvre for interpretation by national anti-dumping authorities and the full
applicability of the WTO Dispute Settlement Mechanism to the Anti-dumping Agreement.
Switzerland supported all proposals aimed at facilitating the anti-dumping procedures, since this issue
was closely related to market access.
224. On subsidies, his delegation favoured improving the rules and it supported those delegations
which called for the disciplines on industrial subsidies aimed at preventing the use of countervailing
measures that were not compatible with liberalization efforts.  By Cancún, the first phase – indicating
the provisions that Members sought to clarify and improve – should be successfully completed.
Members should aim to have a decision which allowed them to proceed in a substantive way with the
negotiations on the provisions already identified.
225. His delegation noted that the levels of ambition in the offers on services already on the table
were unequal.  A reasonably high level of ambition was needed to ensure success in this area of the
negotiations.  The bilateral discussions had been constructive, which indicated the seriousness of all
Members who wanted to make progress in this area.  However, it was important that the number of
Members who participated increase significantly before Cancún, so that the GATS negotiations took
on the speed that was essential if Members wanted to achieve specific results by 2005.  The stress puton bilateral negotiations should not make Members forget that, at the multilateral level, other
important elements were currently being discussed.  The modalities for the LDCs would have to be
considered a priority.  The Services negotiations played an important role in the DDA, and it was
essential to examine the LDC Members' draft as soon as possible.
226. His delegation believed the negotiations in the Special Session of the Council for TRIPS were
turning in circles.  Some Members, like Switzerland, were promoting a strong register with legal
effects, and others were calling for a simple database with no legal effects on non-participating
Members.  His delegation welcomed the intensive informal consultations held by the Chairman and
the draft text listing the various options proposed by Members tabled on 16 April.  If a system of
registration and notification for GIs should be established, his delegation supported a strong registerTN/C/M/9
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with legal effects and an opposition mechanism.  Th e simple database in the joint proposal by the
United States, Australia and others was not sufficient.  In order not to prejudge the outcome of other
negotiations, it was important that a register be open to all products, not only to wines and spirits.
Switzerland believed that the multilateral system of registration and notification should be established
as foreseen in the Doha Declaration.
227. On Singapore issues, his delegation welcomed the discussions that had taken place in the
respective working groups since Doha and recognized that these discussions were at different stages.
On some issues, considerable differences in views still existed, while on others it appeared that a
consensus could be found.  Switzerland expected that modalities be adopted on the four issues in
Cancún, and it was crucial that by then an intense discussion on the actual modalities take place, so
that Ministers could make the necessary decisions.
228. The Chairman said that the present meeting had been one of the most constructive and
encouraging TNC meetings ever held.  It had been supposed to be a formal meeting, but had turned
out to be more informal than many informal ones held in the past.  Several highly constructive
statements had been made that would help Members in the process of constructing the agenda for
Cancún, and he hoped that, in the weeks to come, Members would have the opportunity to make use
of the comments.  Different Ministerial meetings he had attended in the past few weeks had shownthat there was definite political momentum to move the process forward.  At the present meeting,
Members had seized the moment, and he hoped that th is spirit would be maintained in the weeks and
months to come.  He hoped that this dynamic would help create convergence.
229. From what had been said, it was clear that the area of non-agricultural market access needed
an urgent focus.  He hoped delegations would keep up their interest and do their best to give theirsuggestions and support to the Negotiating Group Chairpersons, so that they could move towards a
successful framework of modalities for further negotiations.  He wished to commend the General
Council Chairman's efforts on S&D treatment, aimed at finding a pragmatic way froward that he
hoped would be met by a positive response from Members.  This was one area of the work where
much could be done before Cancún, and the details should not be left to Ministers in Cancún, since
too many other issues would already be before them.
230. He would continue his work, starting with hold informal consultations at the level of Heads of
Delegations on the paragraph 12(b) implementation issue the following week.  He looked forward to
helping move the entire DDA process forward.
231. The Trade Negotiations Committee took note of the statements.
232. In closing the meeting, the Chairman said the next meeting of the TNC would take place on
10-11 June 2003.
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