ࡱ> fheg 4bjbjVV v`r<r<*Y"6"N"N"N"$r"r"r"P"d&#Lr"2fr#r#(###$$$2222222$36>2N"&$$&&>2N"N"##HS2(((&N"#N"#2(&2((V0/p0#&|0 2i2020T[7'0[7p0p0[7N"0$"%(%0%$$$>2>2N($$$2&&&&[7$$$$$$$$$$ : World Trade OrganizationTN/CTD/26 21 April 2011(11-2024)Committee on Trade and Development Special Session SPECIAL SESSION OF THE COMMITTEE ON TRADE AND DEVELOPMENT Report by the Chairman, Ambassador Shahid Bashir (Pakistan), to the Trade Negotiations Committee This Report on the current status of work in the Special Session of the Committee on Trade and Development (Special Session), prepared under my own responsibility, attempts to capture the progress that has been made in the last few months, during which I have held two formal meetings (13January and 22 March 2011), and a large number of informal small-group meetings. Members have shown continuous and positive engagement during this period, because of which we have moved closer to convergence in many key areas. The Monitoring Mechanism Members know that for some time now, it has been difficult to make substantive progress in negotiations on the Monitoring Mechanism. In spite of sustained efforts over the past few years, it had not been possible to bridge the divergent views on the mandate, scope, structure and functions of the Mechanism. We, however, witnessed an important breakthrough in the small group of Ambassadors' led process on development issues, which attempted to capture the middle ground on the elements of the Monitoring Mechanism, and proposed some 'Guiding Principles' to help take the process forward. After intensive consultations on these 'Guiding Principles' the then Chair of the Special Session circulated a Fourth Revision (Rev.4) of his non-paper dated 16December2010 on the Monitoring Mechanism. At the 43rd Special Session of the Committee on Trade and Development held on 13 January 2011, the Membership agreed to work on the basis of the revised non-paper in the small-group process. In the small-group consultations that ensued thereafter, Members engaged on Rev.4 and tabled additional textual proposals. These proposals continue to be discussed. Based on a general agreement among Members to rearrange the elements of Rev.4 in a more coherent and logical format, so as to facilitate a structured discussion and therefore convergence, I issued an Addendum to Rev.4 of the non-paper on 17February2011. In this Addendum, different paragraphs of the Mechanism were placed under the headings of Scope, Functions/Terms of Reference, Operations and Reappraisal. The Addendum also contained a Preamble. All consultations thereafter were based on this Addendum. Although nothing is agreed until everything is agreed, there appears to be convergence on the following elements of the Mechanism: Scope: Although at one stage some Members felt that the scope of the Mechanism should be restricted to the covered Agreements only, others preferred the inclusion of Ministerial and General Council Decisions to the scope of the Mechanism. This divergence has now been bridged and Members broadly agree that "the Mechanism will apply to all S&D provisions contained in multilaterally agreed ϲʹ Agreements, Ministerial and General Council Decisions". Functions: The divergence in this section had been mainly on the issue, whether the Mechanism was meant to be an exercise in 'transparency', overseeing the implementation of S&D provisions, or a permanent negotiating forum on S&D provisions, even after the conclusion of the DDA. There now appears to be a compromise on these positions and Members feel that though the Monitoring Mechanism will not be a negotiating body, it will also not be precluded from making recommendations or proposals for initiating negotiations in other ϲʹ bodies. Besides, the Mechanism will complement, and not replace, other relevant Mechanisms in different bodies of the ϲʹ. Operations: Another area where there appears to be convergence is on the operation of the Mechanism in dedicated sessions of the CTD; meetings of which will be convened periodically, and at least twice a year, and which will follow the same rules of procedure as the Regular Session of the CTD. These dedicated sessions will be Member-driven and their work will be based on inputs and submissions by Members, as well as on reports received from other ϲʹ bodies. Prior to each such session, the ϲʹ Secretariat will compile a factual background document based on inputs and submissions received from Members and other ϲʹ bodies, detailing information relating to operation, utilization and implementation of the S&D provisions. Reappraisal: There is also a general agreement that the Mechanism will be reviewed three years after its entry into force and thereafter when deemed necessary. Negotiations on the Monitoring Mechanism have not yet concluded. Members continue to have divergent views on the language of the Preamble, on which the African Group and the EU delegation have tabled proposals, which are still being discussed by Members. In addition, while there is a broad agreement on combining paragraphs 4 and 5 of Annex 1 to this report, there is as yet no convergence on the possible language that will combine these two paragraphs. Similarly, Members continue to hold divergent views on the issue of the review procedure and any recommendations made under this Mechanism not prejudging the legal nature of S&D provisions nor affecting Members' rights and obligations under the ϲʹ Agreements. These issues remain under active consideration of the Special Session. In Annex 1 to this Report, I have tried to capture the current status of the non-paper after incorporating the textual and schematic proposals of Members. This Annex is produced under my own responsibility. The Agreement-specific Proposals Work on the six Agreement-specific proposals has continued on the basis of the last language circulated in May 2010. While discussion on these proposals has proceeded in a positive and constructive spirit, Members remain far from developing any common understanding and so far it has not been possible to bridge the gaps in the divergent positions that Members continue to express. Some Members have expressed the view that the text falls short of accurately reflecting earlier discussions on these proposals. For them, the areas of divergence extend beyond the bracketed text and more work is required to develop convergence even on other parts of the text. On the other hand, some other Members feel that the draft text on these proposals accurately captures the progress that had been achieved during and before 2010. They hold the view that the text in its current form, with the exception of a few brackets, is fairly stabilized and that any attempt to reopen it could be a retrograde step. On my part, I intend to continue my efforts to encourage Members to work towards narrowing the remaining gaps so as to develop a common understanding. As for the 28 proposals annexed to the draft Cancn Ministerial Declaration, Members have a shared understanding that there was an in-principle agreement to these proposals on an ad referendum basis, and what remains is their formal adoption by the Membership at an opportune time. On the CategoryII proposals, the Chairs have, as in the past, reported that there has not been much progress on these proposals. This is largely due to the fact that the issues raised in some of the proposals form an integral part of the on-going work in the respective negotiating bodies. In the coming months, I shall continue coordinating with the respective Chairpersons so as to see how best to expedite progress on these proposals. Overall, it would be fair to state that the past four months have witnessed considerable progress in our work. As for the future course of action, it is proposed that Members continue to engage with a positive mind-set to bridge the remaining gaps. Personal involvement of Ambassadors/Heads of Delegation in this process may also be sought when required. _______________ ANNEX 1 The Monitoring Mechanism PREAMBLE Recalling the General Council Decision of July 2002 on establishing a Monitoring Mechanism 1. Members hereby agree to establish the Monitoring Mechanism (hereinafter referred to as the Mechanism) with the following: Scope, Functions/Terms of Reference, Operations and Reappraisal. SCOPE 2. The Mechanism will apply to all Special and Differential Treatment (S&D) provisions contained in multilaterally agreed ϲʹ Agreements, Ministerial and General Council Decisions. FUNCTIONS/ TERMS OF REFERENCE 3. The Mechanism shall act as a focal point within the ϲʹ to analyse and review the implementation of S&D provisions. 4. Through a bottom-up, horizontal and transparent process enabling information sharing, the Mechanism shall regularly evaluate the utilization and effectiveness of S&D provisions with a view that they are effectively and better implemented to facilitate integration of developing and least developed Members into the multilateral trading system. 5. Following discussions amongst Members, the Mechanism, shall propose actions, as appropriate, including to the General Council, to strengthen and improve the implementation of the S&D provisions. 6. The Mechanism will be a simple, practical, efficient and transparent one which complements, not replaces, relevant review mechanisms in other bodies of the ϲʹ. 7. The Mechanism is not a negotiating body. However, this does not preclude recommendations or proposals for initiating negotiations in other ϲʹ Bodies on S&D provisions reviewed in the Mechanism. 8. The review procedure under this Mechanism shall not prejudge the legal nature of the S&D provision(s) under consideration nor affect Members' rights and obligations under the ϲʹ Agreements, in any way. OPERATIONS 9. The Mechanism shall operate in dedicated sessions of the Committee on Trade and Development (CTD DS) and shall convene its sessions periodically, at least twice a year and follow the same rules and procedures applied by the Committee on Trade and Development. 10. Monitoring of S&D provisions in the Mechanism shall be undertaken on the basis of inputs/submissions made by Members, as well as on the basis of reports received from other ϲʹ Bodies to which inputs/submissions by Members could also be made. 11. Prior to each session of the Mechanism, the ϲʹ Secretariat shall compile a factual background document, based on, as appropriate, inputs/submissions made by Members and ϲʹ bodies, including information relating to operation, utilization and implementation of S&D provisions. REAPPRAISAL OF THE MECHANISM 12. The Mechanism will be reviewed three years after its entry into force and thereafter, when necessary, taking into account its actual functioning and evolving circumstances. __________  TN/CTD/M/43 and TN/CTD/M/44 (to be issued).  Two textual proposals on the Preamble have been tabled, which Members continue to discuss.  There is general understanding among Members that the formulations in paragraphs 4 and 5 may be merged into one paragraph - two textual proposals have been tabled, which Members continue to discuss.  This paragraph also continues to be discussed as reflected in my report.     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