Medlemmerne af Folketingets Europaudvalg og deres stedfortrædere Bilag Journalnummer Kontor 1 400.C.2-0 EUK 4. august 2005 Til underretning for Folketingets Europaudvalg vedlægges beretning af for- manden for TNC under WTO's Generelle Råds møde den 27. og 29. juli 2005.

2 WORLD TRADE ORGANIZATION WT/GC/95 3 August 2005 (05-3502) General Council 27 and 29 July 2005 Item 10(c) statement by the chairman Colleagues, We  have  just  heard  the  report  of  the  Chairman  of  the  TNC,  who,  along with others, has painted an accurate portrait of where we are in the negotiations.   The Chairs of the Negotiating Groups painted very similar portraits yesterday, at the TNC. It would certainly be fair to say that we are not where we wanted to be.  We have made some progress on some issues, but far too many remain to be resolved.   The progress we have made has been slow – much too slow.  We have done exactly what I raised in my acceptance statement in February and what we said we did not want to do – backload most of the decisions into the Fall and, potentially, overload the agenda for Ministers at a five-day, politically charged, Ministerial Conference in Hong Kong. We have all seen that movie – we all know how it ends. To make it more challenging still, we will have a relatively high turnover in Heads  of  Delegation  this  summer,  including  some  Chairs  of  the  Negotiating Groups.  Some have been temporarily averted, and others are in abeyance, but all of these changes will add to our burden. And on the subject of not adding to our burden, let me join the Director- General and others who have said that there is not a "crisis" in the negotiations – that we need not "press the panic button".  The truth is that we long ago came to the realization that we would not likely make much greater progress in the negotia- tions by July.  But then it is not in my nature nor yours I believe to throw in the towel.  The challenge before us is to remain deliberate and determined. I have consulted informally with Members and I believe that we will need three things if we are to succeed in Hong Kong.

3 First, we are going to have to make the most efficient, rational use of time.   Among other steps we could take, this could mean: - reducing the work of regular bodies, other than the Dispute Settlement and the Trade Policy Review Bodies, to essential business only –  to al- low Members to focus their resources on the negotiating bodies; - avoiding  informal  Ministerial  meetings  outside  Geneva  that  conflict with the negotiating agenda and take negotiators away from Geneva for extended periods; - ensuring  more  frequent  and  active  participation  of  Senior  Officials  in the Geneva process; - ensuring  that  Ministers  are  on  call  to  provide  political  guidance  on  a continuous  basis,  including  by  travelling  to  Geneva  to  consult  each other ... and by ensuring that they are in regular contact with each other between meetings, deepening their understanding of each other’s posi- tions and needs; - in addition to this ongoing involvement, it may be useful to provide a stocktaking  session  early  in  the  Fall  for  Ministers  to  assess  whether progress is being made;  and, - perhaps most importantly, we  need more coherent, integrated, central- ized and continuous management of the negotiating process.  It is now critical  to  begin  pulling  the  different  threads  of  the  negotiations  to- gether, which have, quite often, run on separate tracks.  It is my inten- tion to consult both the out-going and in-coming Directors-General on how this can be done quickly so as to provide a focus to all of our work in the Fall. And part of using the Fall efficiently is using the August break effi- ciently too.  We need to take this time to reassess our negotiating positions with capitals – to look for new approaches that will ensure acceptable outcomes.   Second, transparency and effective participation in the negotiations are issues on which I have received countless petitions from our smaller Members.   I share the collective importance that Members attach to this issue, and I believe that  the  Organization’s  commitment  to  transparency  and  effective  representation will be met in several ways.  For instance, the Bureau for the 6th Ministerial Con- ference, that we have just established, is representative.  But the Members of the Bureau owe their constituencies regular briefings.  Transparency and effective par- ticipation  will  also  be  achieved  through  more  frequent  TNC  meetings,  informal meetings of Heads of Delegation, and by effective integration and participation of Regional Coordinators in formal and informal consultations.  Again, regional coor- dinators will then be responsible for briefing their constituencies in an effective and timely manner.    As Chairman of the General Council, I stand ready to brief individ- ual delegations and groups on issues arising in the negotiations on which they may require clarification. I am certain that the Director-General and the Chairs of the

4 Negotiations  Groups  would  also  be  pleased  to  provide  such  assistance  to  any Member. I also intend to consult with the Director-General to ensure that we make  the  most  effective  possible  use  of  the  Second  Geneva  Week  for  Non- Residents, so that the Week is focussed on the issues Members will need to address prior to and at the Hong Kong Ministerial meeting. Third,  and  most  importantly,  we  will  need  real  political will.   Not political  speeches,  but  political  action  and  political  courage.    Not  political  con- straints, but creative political solutions to problems.  Ultimately, it will be political will that will determine whether we succeed in Hong Kong. And  our  objectives  for  Hong  Kong  must  not  be  lowered.    They remain the same ones we set out at the beginning of the year: modalities for agricul- ture, still the engine of the Round; modalities for non-agricultural market access;  a critical mass of high quality offers in services;  an agreed negotiating agenda in the area of rules, including trade facilitation; and a meaningful contribution to  devel- opment in all aspects of the negotiations.    I would also like to remind Members, as I did in February when I took up this position, of the importance attached by African Members, the Least- Developed Countries and the ACP, to progress on the issue of cotton, in  accor- dance with the negotiating mandate in agriculture for substantial reductions in trade distorting  internal  support  and  substantial  improvements  in  market  access.    This mandate, too, cannot be lowered.  This is one of the areas of urgency itself linked to broader global priorities that I addressed in February. Our progress, thus far, has been disappointingly slow.  But I urge the  General  Council  to  keep  the  big  picture  in  mind.    The  Doha  Development Agenda  can  make  a  real  contribution  to  the  broader  global  priorities  of  poverty reduction and sustainable development.  The Hong Kong Ministerial could set the stage for the completion of the DDA.  It is a rare opportunity – one we cannot afford to miss. I said at the beginning of the year "This year the organization will be challenged.  Difficult decisions will have to be made. And we know it."  I also said that in several areas we have to bite the bullet.  Well nothing has changed.  As I said then the challenge for this organization is that it is a result oriented organization with outcomes directly affecting various spheres of economic life.  The organiza- tion will continue to be judged by real outcomes on a success and failure yardstick. We cannot escape that challenge. We must face it. We need to change gears and to improve our play in several areas as we prepare for Hong Kong. Progress and suc- cess can only be achieved collectively. In closing, I would like to inform the Council that I will be in Ge- neva during the month of August.  My door will be open and I would welcome any guidance  on  the  ideas  I  have  presented,  or  any  other  suggestions  that  Members would like to offer to ensure our collective success at Hong Kong.

5 __________

7