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1 ,QIRUPDWLRQQRWHWRWKH&RPPLVVLRQ IURP&RPPLVVLRQHUV/DP\DQG)LVFKOHU 6XEMHFW WK :720LQLVWHULDO&RQIHUHQFH1RYHPEHU'RKD4DWDU± $VVHVVPHQWRIUHVXOWVIRUWKH(8 6XPPDU\ On 14 November 2001 the 142 members of the WTO concluded the 4 th Ministerial conference. The results of the meeting are far reaching, comprising: a decision to launch a new WTO round - the Doha Development Agenda - comprising both further trade liberalisation and new rule-making, underpinned by commitments to strengthen substantially assistance to build capacity in developing countries. The negotiations will last three years - until January 2005; a decision aimed at helping developing countries implement the existing WTO agreements; a decision to interpret the TRIPS Agreement in a manner that ensures Members rights under TRIPS to take actions to protect public health. The meeting also approved the long awaited waiver from WTO rules of the Cotonou preferential trade agreement between the EU and the ACP countries. Inter alia, this clears the way to completion of the bananas deal. An important event at the conference was also the accession of China and of Taiwan to the WTO, after 15 years of long and arduous negotiation: a major step towards making the WTO a truly global organisation. 2YHUDOO$VVHVVPHQW The overall assessment is that the result of the Doha conference is highly satisfactory not only to the EU, but also to the rest of the WTO s membership, developed and developing countries alike. The Doha Development Agenda moves the WTO into a new era, one which allows the organisation to play a fuller role in the pursuit of economic growth, employment and poverty reduction, in global governance, and in the promotion of sustainable development. The EU had to bargain hard (and up to the last minute) in order to ensure that its priorities were appropriately reflected in the final result, but so did others and WTO Members recognised the important contribution from the EU to an overall successful and ambitious outcome. 7KH(8$JHQGD5HIOHFWHG The Doha outcome reflects in very concrete terms the fourfold aims of the EU, namely: - agreement on further trade liberalisation to boost international economic growth, and to restore business confidence at a critical juncture of the world economy; -strengthening of the rules-based nature of the multilateral trading system by the decision to negotiate WTO agreements on investment, competition, trade facilitation and public procurement

2 as well as the decision to reach agreement on the rules governing the relationship between WTO rules and multilateral environmental agreements; - putting development at the heart of the negotiations by addressing the concerns of developing countries over the implementation of the Marrakech agreements and by mainstreaming the development dimension into all individual negotiations; - responding to the expectations of civil society, by increasing transparency, by reaffirming that the overarching goal of the WTO and the new round is sustainable development, that each country has the right to take the measures for the protection of the environment that it deems necessary, and by starting a negotiation to better frame the interaction between the WTO and international environmental agreements. The EU has also successfully defused the agricultural problem, in finding a very satisfactory compromise wording which clarifies that the commitment to negotiate on market access, domestic support and, crucially, all forms of export subsidies, is without prejudice to the final outcome. 7KHUHVXOWVLQGHWDLO 6XVWDLQDEOHGHYHORSPHQWDQG(QYLURQPHQW Although we did not get everything we wanted, the Doha declaration strongly reflects the European Union (EU) calls for increased action in the WTO in favour of sustainable development and for the protection of the environment. Several elements demonstrate this. First, Members agreed that sustainable development will be an overarching goal of the negotiations. Secondly, the declaration restates the right of Members to take measures they deem appropriate in the field of health, safety and environmental protection. Third, WTO members will enter into negotiations to clarify the relationship between the WTO agreements and the rules of multilateral environmental agreements. These are negotiations on a subject taboo until a few years ago. This is an important step towards ensuring coherence between various areas of international policymaking as well as a clear demonstration of the willingness of WTO members to take into account the concerns of civil society. Fourthly, by giving a special role to the WTO Committee on Trade and Environment (CTE), sustainable development and environmental concerns will be mainstreamed throughout the negotiations. The declaration shows that although the EU was the driving force to get the issue into the Declaration, other WTO Members are ready: - to address issues at the trade and environment interface; - to clarify the relationship between Trade and Environment and ensure that it is mutually supportive of sustainable development. This provides a sound basis for achieving progress on the key issues the EU has identified; - for the WTO to play a positive role in evolving global governance: this is vital because the Rio+10 summit is expected to underline the importance of governance as an essential factor in ensuring sustainable development.,psohphqwdwlrq

3 The EU recognised, particularly after Seattle, that a new trade round could only be launched if there were demonstrable progress on implementation issues raised by a group of developing countries. That progress has now been made and the decisions reached at Doha - and indeed before Doha - have resolved several problems faced by developing countries. We welcome this result, which was achieved in part due to the constructive efforts of the EU. Regarding the mandate for future negotiations, the EU has always stressed that several of the proposals made under the label "implementation" had nothing to do with implementation in the strict sense but concerned the rebalancing or amendment of existing agreements. Before and at Doha, the EU affirmed its openness to discuss these proposals in a negotiation provided the fundamentals of the Uruguay Round agreements were not called into question. The negotiating mandate for this purpose in para 12 of the Doha declaration strikes this balance. 7UDGHDQG'HYHORSPHQW The integration of developing countries into the world trading system runs like a red thread through the Doha Declaration: from market access over rules to the special provisions on development: trade-related capacity building, Least Developed Countries, special and differential treatment. WTO Members commit to a comprehensive strategy for trade-related capacity building, as part of efforts to mainstream trade in development policies and in co-ordination with other donors. This provides the basis for coherent and effective assistance for the integration of developing countries in world trade. At the level of the EU, we must now follow through on this by ensuring that trade related technical assistance and capacity building is well integrated into the EU s current and future technical assistance/development co-operation programming. This is an issue of high priority, and proposals will be put to the Commission in due course. The Declaration recognises the special situation of LDCs and confirms the important commitments made at the 3rd UN Conference for LDCs, which will be integrated in the WTO work programme. Special and Differential Treatment provisions will be reviewed with the objective of strengthening them and making them more precise, effective and operational, so as to help LDCs integrate in the trading system and reap its benefits. 7UDGHDQG6RFLDOGHYHORSPHQW Although this is one disappointing area of the final declaration, WTO members reconfirmed the commitment to core labour standards and co-operation between the WTO and the ILO that they had taken at the 1st WTO Ministerial in Singapore. The Commission pushed on this all the way to the end, but there was simply too much opposition. In this context, the reference to the developments in the ILO process which took a decisive step forward this week on the social dimension of globalisation could provide a useful basis for moving this issue forward in a way that ensures the possibility of the other international organisations, including the WTO, to contribute to this process. The EU must now work to ensure that the WTO contributes in a constructive fashion to the ILO process, especially in light of the establishment by the ILO of a World Commission to deal with the social aspects of globalisation. The EU will of course continue to pursue these issues. $JULFXOWXUH

4 The result was highly successful, as it was fully compatible with the EU mandate adopted by the Council in 1999, and with the EU negotiating proposal adopted in December On market access, the Doha Declaration refers to negotiations aimed at substantial improvements, which recognizes, as the EU did, the importance of further trade liberalisation, but also implies that all subjects are to be discussed, including the protection of geographical indications. On export competition, the text precisely fits out mandate. It refers to the reduction of all forms of export subsidies, "with a view to phasing out", but with a qualification in the Declaration that this would be without prejudging the outcome of the negotiations. This clarifies beyond doubt that there is no commitment now to negotiate the elimination of export subsidies. On domestic support, the Declaration commits us to negotiating reductions in trade distorting support, which we also accept (as we proposed) further cuts in the "amber box" whilst keeping the concepts of the "green" and "blue" boxes. Our insistence that non-trade concerns be part of the negotiations is reflected in the Declaration, and in particular there is explicit recognition of the proposals in the area already submitted by Members. (It should be noted in this respect that we have already submitted proposals covering our key non-trade concerns, including environmental protection, rural development, food safety and animal welfare.) 66HUYLFHV The EU s objectives in the field of the services have been fully achieved. Clear dates have been agreed for moving forward the market access negotiations on services. The result of these negotiations are expected to bring considerable market opportunities for EU business as well as benefits to consumers worldwide. 70DUNHW$FFHVV The negotiating mandate reflects the essential objective of reducing and where possible eliminating industrial tariffs. It meets the aim of no a priori exclusions from the exercise, while focussing also on the reduction of peak tariffs and high tariffs, in both of which areas we have clear export interests, as do many other WTO members. The mandate also specifically recognises the need to take in account the interests of developing countries, in a number of ways, notably through targeting for reduction those products of export interest to developing countries, and the notion of "common but differentiated responsibility" - the concept that the contribution of developing countries to the reduction exercise should be commensurate with their abilities and needs.,qyhvwphqw Despite vociferous opposition from India in particular, the Doha Declaration sets, for the first time ever, the objective of establishing a multilateral framework aimed at improving the conditions for Foreign Direct Investment world-wide. Negotiations will be preceded by a preparatory phase until 5th Ministerial, with a clear commitment to launch such negotiations at a certain date and assurance that the issue will fall within the single undertaking. All the elements of the investment framework referred to in the Declaration correspond to the EC agenda: the scope (FDI), the main principles (transparency and non-discrimination), the structure (positive listing) and the applicable dispute settlement mechanism (State-to-State). We believe that the Doha Declaration provides a unique opportunity for all WTO members, and in particular Developing countries, to adequately prepare the negotiations of a balanced framework of rules that will improve investment conditions world-wide and be conducive to sustainable

5 development. As a consequence of this, we also now need to reflect on how to upgrade our ambitions in bilateral / multilateral deals. 9. &RPSHWLWLRQ The Doha Declaration sets, for the first time ever, the objective of establishing a multilateral framework on competition policies. This should contribute towards the more effective application of domestic competition regimes and be of benefit for consumers around the world. As for investment, negotiations will be preceded by a preparatory phase until the 5 th Ministerial. The elements for a multilateral framework on competition correspond to those which were proposed by the EU. They reflect a realistic and progressive approach towards the development of competition disciples at multilateral level, including the need to respond to the particular interests and concerns of developing countries. The co-ordination of our position with Commissioner Monti has been excellent, and contributed strongly to the good result. 107UDGH)DFLOLWDWLRQ The negotiating mandate reflects the essential objective of simplifying customs and related trade procedures, including transit measures. While the EU would have preferred to start negotiations at once, we have nevertheless an unambiguous commitment to negotiations within the single undertaking of the Round. This was our main aim. The scope of the mandate is broad, addressing all the issues relevant to the movement of goods in international trade, including measures for rapid release of goods at the border. The mandate also reflects the development objectives of trade facilitation, including the notion that assistance to build capacity should be an integral part of the work and be approached in a systematic manner. We must now pursue this with developing country partners. 11*RYHUQPHQW3URFXUHPHQW Negotiations on a multilateral agreement on transparency in government procurement will take place after the 5 th Ministerial, resulting in a set of rules requiring public entities to procure in a transparent and accountable manner. We welcome the fact that the WTO has recognised the important contribution that procurement makes to the economy and its effect on trade. The agreement to work on transparency is an important step towards reducing the trade distorting effect that different procurement practices may have. The work will also facilitate the conclusion of broader reaching bilateral and regional agreements on procurement as well as helping to make the GPA more accessible to non-members. 75,36SXEOLFKHDOWKDVSHFWV The adoption of the Ministerial declaration on TRIPs and Public Health is an indication that the WTO is supportive of public health matters and that intellectual property is part of the solution to the tension between public health objectives and the interests of private companies. This text, which is in line with the positions adopted by the EU, is a major achievement and provides a delicate balance between the interests of the proponents and those whose major preoccupation was to safeguard the TRIPs Agreement. This substantive declaration clarifies the relationship between TRIPs and public health. In addition, it reflects the consensus of the clarification on the flexibility inherent in several key provisions of the TRIPS Agreement, while members maintain their commitments in the TRIPS Agreement.

6 75,36RWKHUDVSHFWV The EU s goal in relation to the TRIPS agreement has been achieved. The declaration contains a clear provision that negotiations on multilateral register will have to be completed by the 5th WTO ministerial. It contains a mandate for negotiations on extension of the coverage of geographical indications for the benefit of business and consumers around the world. It stipulates that the issue of TRIPS/CBD relationship and protection of traditional knowledge will be examined and that appropriate action be taken, which shows the commitment of the EU to take into account developing countries interests, also in this area. :725XOHV The EU welcomes the possibility of a balanced negotiation on WTO rules to take place, that will meet the demands of developing countries and allow them to search for improvements to existing WTO Agreements without calling into question their basic principles. Our aim will be to ensure that these instruments will continue to provide effective relief for the efforts of unfair trade practices and that at the same time any future rules on trade defence would reduce the scope for abuse of those instruments and ensure that partners adopt the same strict standards in these areas as the EU. As regards regional trade agreements, the EU objective to start negotiations for clear and quite strict rules defining the conditions to be met, for FTAs and regional agreements to be WTOcompatible, has been agreed. Finally, the fisheries negotiating mandate is generally satisfactory in that it straddles the subsidies and environment fields - we fought away the notion that this issue should reside solely in the rules (i.e., subsidies) chapter. 3DUWLFLSDWLRQRI&LYLO6RFLHW\DQGWUDQVSDUHQF\ The EU continues to seek improvements to the transparency and effectiveness of the organisation, including possible institutional improvements. The declaration, despite not being very specific, clearly provides a mandate for greater transparency, above all vis-à-vis the members of the organisation. In addition, on issues such as consultation and open meetings, the Secretariat will, with its greater autonomy, be able to launch more intensive dialogue with parliaments and civil society, which of course the EU will support. Further thought needs to be given to WTO reform, and how to advance a mandate for the present Director General, or his successor (who takes over next September), to bring forward proposals. &RQFOXVLRQV The Doha declarations are both faithful to the EU's negotiating mandate and reflect our broad political and economic objectives. The emphasis on sustainable development is particularly welcome and the result of this new round should over time significantly improve the contribution of the WTO to development in the developing world, against a background of improved economic governance. The immediate task in front of the Commission is now to carry out negotiations in a way that reflects the objectives of the Doha Development Agenda and the EU's own goals. The Commissioner for Trade and the Commissioner for Agriculture wish, in concluding, to express their thanks and appreciation to the President and to all members of the College, as well

7 as to the Commission services under their charge, for their significant contribution to defining the EU position on the Round, as well as for their support in the preparatory process for Doha as well as the Conference itself. This unity of purpose contributed strongly to the EU s success at Doha, as of course did support for the Commission provided by the Council throughout the launch negotiations. European Commission 19 November 2001