ࡱ> []Z @ -bjbj00 6@RbRb|%NR$R$R$8$$$$'Lh$$(%%%:&:&:&KKKKKKKMRO6K`-:&:&`-`-K%%4K@0@0@0`-*%%K@0`-K@0@0j B0H%$ ϛER$.^:H2KK0'LlHVP.BPdHHPH:& F(v@0),*x:&:&:&KK  *0JOB(07)/12 1 February 2007 INFORMAL TNC MEETING AT THE LEVEL OF HEAD OF DELEGATION Wednesday, 31 January 2007 Chairman's Remarks Opening Remarks Thank you all for coming to this meeting. I would like to welcome you all back after the end-of-year break, and wish you a happy, and successful, New Year. Since I reported to the General Council in December, we have witnessed a number of developments, starting with an increasing level of political engagement and clear signals of renewed commitment to a successful conclusion of the Round. I think we are all aware of the many recent messages stressing both the importance and the urgency of concluding the negotiations. These messages have been heard from all quarters, including ASEAN Leaders meeting in Cebu, the African Union trade ministers meeting in Addis Ababa, the US President and the President of the European Commission, the German EU Presidency, the Japanese Prime Minister and Brazilian President and most recently, Ministers gathered in Davos. There have also been very welcome expressions of support from business communities and from civil society organisations across a broad range of the membership. The political conditions are therefore more favourable for the conclusion of the Round than they have been for a long time, and the challenge now is to make the most of them. Political leaders around the world clearly want us to get fully back to business, and we in turn need their continuing commitment. It is encouraging that, in parallel with this renewed political impetus, various participants have been stepping up their discussions at various levels to work on possible areas of convergence. This work is not a substitute for the multilateral process, but, at this stage of the negotiations, it is a vital input. For my part, I have intensified my contacts with participants. I have attended the meeting of the African Union Trade Ministers in Addis Ababa. Ihave also visited Oslo, New Delhi, Berlin, London and Brussels. In addition, I have just attended the informal gathering of a number of Ministers hosted by our Swiss colleagues in Davos, and today I would like to brief you on what has taken place in these meetings, in the interests of transparency and inclusiveness. My main message has been that we need to restart the multilateral process fully, to reap the benefits of the political engagement that has been shown at the highest levels. I have also underlined the importance of building on the numerous bilateral contacts that have taken place in the last weeks. While it is essential that they continue over the coming weeks, I also believe that we need more clarity, from the part of those who have these contacts, as to the direction they are going both in terms of substance and of process, especially timing. To assist Ministers in Davos in their consideration of the way forward, Iprovided them with a brief "tour d'horizon" of the main areas of the negotiations and the core issues which remain to be tackled. For the sake of transparency, let me take you through the points I made. In Agriculture Domestic Support, in the past few months I have detected the start of a new discussion on the relationship between the OTDS (overall trade-distorting domestic support) number and the product-specific elements and disciplines in trade distortive support. In addition, new and fairly creative ideas are being explored for product-specific disciplines that have only surfaced following last year's suspension. Iwould encourage these ideas to be fully explored. As far as Agricultural Market Access is concerned, Members are now taking a slightly broader view of the relationship between the formula and the actual flexibilities, in particular for sensitive products, but there is less clarity on Special Products at this stage. In NAMA, work is progressing on NTBs and Sectorals, in addition to the coefficients for tariff cuts. These issues need to be tackled in the near future, as well as the relationship between the big numbers and the flexibilities. In Services, we need to make sure that this sector does not lag behind agriculture and NAMA. Members will need to be more precise about the form and content of progress they are willing to make. I said in Davos that it would be helpful to get a sense of direction on timing towards submission of revised offers. This remains to be done. In Rules, the intense discussions on Anti-dumping, subsidies and fishery subsidies in the first semester of 2007 should enable the Chairman of the Negotiating Group to continue to work and consult delegations to develop a basis to present a consolidated text when the time is ripe, as mandated in the Hong Kong Declaration, which would serve as the basis for the final stage of negotiations. On Regional Trade Agreements, agreement was reached on a mechanism for transparency of these agreements, which is already a concrete result of the negotiations. We should now move on to tackle the substantive issues of clarifying the rules in GATT Article XXIV on "substantially all the trade". There are of course other areas such as Trade Facilitation, Trade and Environment, Geographical Indications and CBD and, above all, the overarching issue of Development including Duty-Free Quota-Free Market Access, where progress is also being made. On the DFQF issue, we have very recently seen steps undertaken by Japan and the US to define product coverage. We have also seen steps being taken by a number of developing countries such as Brazil, India and Korea to provide DFQF treatment to LDCs imports. Finally, on Aid for Trade we are now moving towards setting up a the monitoring mechanism as mandated in Hong Kong. My aim in setting all of this out is to underline that there is no other way to make the negotiations move forward than by going to the heart of all the issues on the table. And now is the time to do it. I suggested to the Ministers that the best way to reenergize the negotiations is to go back to full negotiating mode in the Negotiating Groups here in Geneva, while also maintaining the intensified political input that we have seen lately. Doris Leuthard, who chaired the Davos meeting, was able to register a renewed commitment by all participants at the meeting to put the Doha Round back on track. All the Ministers present supported a quick resumption of full scale activity in the different Negotiating Groups, and they are all ready to engage on the key issues when needed. They also agreed that we should take a comprehensive approach in order to achieve a broad-based and balanced deal. We now need to make progress across the board not just in Agriculture and NAMA, but also in Services, Rules, Trade Facilitation, Development and all the other issues in the Round. It was no surprise the importance that the Ministers at Davos attached to the development dimension of the Round, which is key to these negotiations. To sum up, there is now a clear expectation that we should resume our negotiations fully across the whole spectrum. I am already working with the Negotiating Group Chairs to make this happen. The process here will continue to be bottom up, inclusive and transparent. All those present at Davos undertook to work in this manner, while also allowing for more discreet, informal, or bilateral, discussions. They also all expressed flexibility to reach a balanced result. Everyone wants to take advantage of the window of opportunity which we know lies ahead of us. However, what we should not strive to do, in my view, is set new explicit deadlines. Everyone is fully aware of the urgency of what we are doing. Governments are also aware of the importance of this work, both economically and systemically, and they are signalling their desire to follow through on what they agreed to in Doha. To sum up what I heard during this last week: "the sooner the better, but making sure we get the substance right". So, back to full negotiating mode, in Geneva, with Chairs of the Negotiating Groups steering the process and with the bottom-up, inclusive and transparent involvement of you Members. Be prepared for the intensification of the work in the negotiating groups in the weeks to come at the initiative of the Chairs. Be also prepared to engage constructively in this phase with the full, shared conviction that this deal is doable. Closing Remarks Before I close this session, let me make two remarks. First, I understand the concerns of some of you about this discreet diplomacy and the timing of it. We are well aware of these concerns. I remain of the view that this is necessary and that it is useful, but you have all taken out the necessary insurance policies, in the Single Undertaking, the July2004 Decision, which nobody questions, and of course the Hong Kong Declaration. And it is because of these concerns that I have advocated this return to full negotiating mode in Geneva which you all support. Its intention is to make clear that the main process has to be our traditional one, with the Chairs steering it. Second, I want to thank you all in my name and in the name of the Chairs for your engagement, your support, your energy we will need a lot of that in the coming weeks and months in order to write the last chapter of this long story. A famous American author wrote a book entitled "Of Mice and Men"; I think the title of our book is now available "Of Red Lines and Deadlines". 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