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Parliamentary Conference on the WTO Summary of Discussions DEBATE ON SUBSTANTIVE THEME (A): Multilateralism in midst of rising tide of bilateral and regional trade pacts Senator Luis Alberto Heber (Uruguay), Mr. Paul Rübig, Member of the European Parliament and Mrs. Ditte Juul-Joergensen, acting Director, WTO Affairs, Directorate-General for Trade, European Commission provided statements on the topic and a debate followed. As the international trading system looks increasingly fragmented and multi-layered, the question is to know if regional trade agreements and bilateral arrangements present a challenge to the credibility and viability of the WTO. Generally, parliamentarians agreed that there has been an increase in bilateral and regional agreements because of the protracted WTO negotiations. However, the Multilateral Trade System (MTS) remains the preferred option for many since it allows small countries to be treated equally, and it is a better forum to address certain topics such as trade distorting subsidies. For some participants it is better to control bilateral agreements than to delay them. While the MST must remain the foundation for global trade, many parliamentarians indicated that bilateral and regional agreements are here to stay. They must not be seen as obstacles; rather, they must be drafted in a way that makes them complementary to the MTS. A good bilateral agreement must be ambitious (comprehensive in terms of products) and in compliance with WTO rules. Nevertheless, some participants have cautioned that the longer the Doha negotiations last, the more credibility the MTS loses. For those participants, a reason why regionalism has not been a problem is that the MTS has remained solid during the recent economic downturn. Yet, a side effect of the proliferation of bilateral agreements may be a diminished interest in the MTS, and one way to slow down this movement is a successful conclusion of the Doha negotiations. DEBATE ON SUBSTANTIVE THEME (B): Rebalancing the rules of MTS in favour of the poor Mr. Lormus Bundhoo, MP (Mauritius), Mr. Helmut Scholz, Member of the European Parliament, and Ambassador Anthony Mothae Maruping (Lesotho), Chairman of the WTO Committee on Trade and Development provided statements on the topic and a debate followed. The objective of development, with particular focus on trade-related needs of the least developed countries, is central to the Doha Development Agenda, which seeks to redress asymmetries and imbalances affecting these countries. Despite the promise made at the start of the Doha Round, tangible results in the area of development are yet to be seen. The discussions focused on reforms necessary to ensure that developing countries can benefit from the increase of their share of world trade. Participants proposed various solutions, but for many, trying to create a level playing field and expecting that developing countries will catch up must not be the only solution. Senator Frank Mahovlich highlighted Canada’s current policy of duty-free, quota-free (DFQF) for least developing countries as one of the most far-reaching in terms of eligible countries, product coverage, rules of origin and ease of administration. According to some participants, DFQF policies are important but there is also a need to reduce non tariff barriers and to ease the rules of origin. Other suggested that DFQF policies for 99% of products are not enough if they are not opened to services. Participants also suggested other solutions including: · Better policy coherence between trade and other issues such as labour or environmental issues, and between agreements; · A more democratic global monetary system; · Policies to help developing countries wean themselves from custom duties as their main source of revenue; · Increased aid for trade commitments; and, · A resolution of the cotton issue. DIALOGUE WITH WTO NEGOTIATORS: Trade and sustainable development: From collision to cohesion Ambassador Manuel A.J. Teehankee (Philippines), Chairman of the Special Session of the WTO Committee on Trade and Environment, Ambassador David Walker (New Zealand), Chairman of the Special Session on Agriculture, Ambassador Hiswani Harun (Malaysia), Chairperson of the WTO Committee on Trade and Environment, and Mr. Bruce Christie, Deputy Permanent Representative of Canada to the WTO provided statements and answered questions from the floor. Sustainable development is at the core of the WTO's mission. However, the pace of negotiations under the Doha mandate related to the environment leaves much to be desired and appears to be linked to progress on other negotiation tracks. Panelists pondered on the linkage between the need to promote international trade and sustainable development. Issues that were addressed include: · The environmental dimension of the Doha round of negotiations (for example, the environmental impacts of fish subsidies); · The relationships between WTO rules and multilateral environmental agreements; · The Montreal Protocol on Substances That Deplete the Ozone Layer. The protocol was held up as an environmental agreement that did not affect trade negatively; · Trade being part of the solution to sustainable development, notably through comparative advantages (production occurs where it makes more economic sense, particularly where resources are most available); and, · Reducing barriers to trade on environmental goods. HEARING WITH THE WTO DIRECTOR GENERAL Mr. Pascal Lamy, Director General of the WTO made a presentation and answered question from the floor. Mr. Lamy first gave a brief overview of the state of play of the negotiations. According to Mr. Lamy, the rule based aspect of the Doha Development Agenda (DDA) is as valuable as the market access aspect, but the discipline on fisheries and the special safeguard mechanism in agriculture are some of the trickiest remaining issues. The next step for the chairs of the negotiating groups is to capture the level of progress thus far in draft texts by the end of April 2011. This would provide a picture of the remaining gaps, and a tool to move into a more horizontal phase of negotiations. Mr. Lamy then highlighted the many reasons why countries should conclude the round: It would boost the global economy, give a vote of confidence to the multilateral trade system, and confirm the value of the WTO as an insurance policy against protectionism. He views the WTO as a catalyst of trust and unity that contributes to a stable world. He also pointed to the benefits of trade for food security (free movement of food from surplus to deficit areas), climate change (exchange of tradable green technology), and for least developed countries (aid for trade). He indicated that the DDA is as relevant today as it was 10 years ago when it was launched, and asked parliamentarians to assist in its conclusion. . Mr. Lamy then answered questions on the following issues: · The current round of negotiations: Mr. Lamy highlighted what has currently been agreed upon i.e. 97% of tariff lines will be duty-free quota-free for products originating from least developed countries, and export subsidies will be eliminated. He stressed that there is no plan B if the DDA fails. He also indicated that many countries are waiting to become members of the WTO, and that a successful resolution of the DDA would make it more desirable for countries to join the WTO. · The current WTO rules: Mr. Lamy discussed how the WTO system might affect domestic regulations regarding emerging issues such as cloned animals, carbon tax and other domestic taxation policies. He stressed the importance of the dispute resolution system to address these issues as they may not be covered explicitly in WTO agreements. · Developing countries: Mr. Lamy indicated that the dispute resolution system is a good measure of the amount of trade in the world and that more and more developing countries are using it. However, market access for developing countries is one thing, and transforming that access into tangible trade is another. He stressed the importance of Aid for Trade to help developing countries take a bigger role in global trade. He indicated that Aid for Trade has increased by 50% since 2005 without undermining other types of aid. However, progress must be made on measuring the impact of Aid for Trade, and on increasing the private sector’s involvement. · The global trading system: in response to various questions Mr. Lamy pondered the role of the WTO to regulate commodity price volatility, the influence of the global monetary system on trade, and the relations between bilateral trade agreements and the WTO. · Relations with parliamentarians: Mr. Lamy stressed the benefits of a deeper implication of parliamentarians. The WTO has created various initiatives for parliamentarians for the past six years. For example, developing countries can include workshops for parliamentarians in their request for technical assistance program. INTERACTIVE PANEL DISCUSSION: Connecting to society: Trade policy-making in the era of mass communication Mr. Jamil Chade, journalist, "O Estado de S. Paulo" (Brazil), Mrs. Hedayat Abdel Nabi, journalist (Egypt), President of the Press Emblem Campaign, and Mr. John Zarocostas, journalist, "The Washington Times" (USA), President of the Association of Correspondents to the United Nations made presentations and answered questions from the floor. The discussion was moderated by Mr. Niccolò Rinaldi, Member of the European Parliament and former journalist. There was a general sense among the panelists that the public and media interest in WTO has faded over the years and that the general public does not understand what is happening. While there has been more geographical coverage mostly in countries newly invested in the WTO (China, Brazil, India, etc.) the overall coverage has decreased. For example, the number of accredited journalists to cover WTO events went down from 500 journalists at the Hong Kong ministerial in 2005, to only 30 journalists for the same ministerial five years later in Geneva. The panelists also mentioned that some trade disputes did not attract the same attention that they would have 10 years ago. The panelists provided various reasons for this situation. They explained the difficulty to understand the WTO for an outsider and a non specialist because of the technical terminology and jargon. The lack of transparency of the negotiating process was also mentioned as a reason for the diminished public interest. Panelists also talked about the WTO losing credibility because of the length of the Doha round of negotiations, as well as the dispute resolution system, which is seen as a long procedure with no guarantee that a win will give you what you want. The lack of identifiable message was also mentioned as an issue: There are very few stories on the positive or negative impacts of WTO decisions at the local level. Potential solutions were briefly addressed during the question period. The involvement of parliamentarians to counterbalance the diplomats’ influence at the WTO was mentioned to improve the credibility of the negotiating process. Other stressed the need for a communication action plan to improve the general public’s understanding of the WTO.
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