APPENDIX 5
GENERAL AFFAIRS COUNCIL
PREPARATION OF THE THIRD WTO MINISTERIAL
CONFERENCE—COUNCIL CONCLUSIONS
1. The Council held a detailed discussion
on the preparations of the Third Ministerial Conference of the
WTO to be held in Seattle from 30 November to 3 December 1999
where decisions will be taken concerning the scope, modalities
and structure of a new round of multilateral trade negotiations.
2. The Council welcomed the Communication
from the Commission of July 1999 on "The European Union approach
to the WTO Millennium Round" and considered that this provided
a useful contribution to the elaboration of the European Union
position in the preparatory process for the Third WTO Ministerial
Conference.
3. The Council, whilst noting that market
opening, the development of trade and increasing technological
advances have contributed to world economic growth, underlined
that this growth should produce a fairer spread of the benefits
of globalization. The council agreed that the further development
of trade needs to be accompanied by the strengthening of rules.
The Council also reaffirmed the importance it attaches to the
primacy of the multilateral trading system and of its basic principles
as guarantees against protectionism and unilateralism. The Council
agreed on the following broad objectives for the forthcoming round:
— strengthening the WTO rules-based
system;
— promoting the further liberalisation
of trade;
— improving the integration of developing
countries into the multilateral trading system;
— addressing the interface between
trade and related issues and policies.
4. The Council underlined the need to ensure
that an appropriate balance between the further liberalisation
of trade and the strengthening of multilateral rules contributes
towards sustainable development, environmental protection, social
progress, the reduction in poverty and consumer health. In taking
into account these concerns, the WTO will be better able to respond
to the challenges resulting from rapid and fundamental economic
and technological change.
During the forthcoming WTO negotiations the
Union will ensure, as in the Uruguay Round, that the Community
and its Members States maintain the possibility to preserve and
develop their capacity to define and implement their cultural
and audiovisual policies for the purpose of preserving their cultural
diversity.
5. The Council underlined the need to involve
fully civil society in this process and to this end to continue
the dialogue with it in order to take into account its legitimate
interests and concerns.
6. The Council recalled that it has consistently
supported the aim of a comprehensive new round, as reflected in
its conclusions of 30 March, 30 April and 18 May 1998, 21 June
1999 and by the European Council at its meeting in Cologne on
3-4 June 1999.
7. The Council reiterated its firm conviction
that a comprehensive trade round involving a broad range of issues
is the best way to address the challenges resulting from rapid
and far-reaching economic changes, to manage properly and effectively
the globalisation process, to expand opportunities for international
trade and growth, and to respond in a balanced manner to the interests
of all WTO members especially the developing countries.
8. The Council underlined in particular
that a comprehensive approach offers the opportunity of achieving
the following broad range of objectives of benefit to all WTO
members:
— further liberalisation and expansion
of trade to the benefit of all countries, leading to increased
growth, competition and employment in a manner conducive to sustainable
development;
— increased transparency, fairness
and predictability through the strengthening of WTO rules and
disciplines;
— ensure that liberalisation promotes
sustainable development and addresses the concerns of civil society,
including representatives of business and consumers;
— the further enhancement of the contribution
of the WTO to development, with specific actions in favour of
developing countries, in particular the LDCs to promote their
integration into the multilateral trading system through market
access, improved rules and increased technical assistance;
— increased coherence on trade, monetary
and financial issues through improved co-operation between the
WTO and other international organisations, including the Bretton
Woods Institutions and other UN organisations, to help developing
countries to benefit fully from further trade liberalisation;
— equal opportunities for all WTO members
to obtain results on the basis of balanced negotiations.
9. The Council confirmed the EU position
that the launching, conduct and conclusion of a new comprehensive
round of negotiations should be guided by the principle of a single
undertaking in order to ensure that the priorities of all WTO
members are given equal attention throughout the negotiation process
and that the end results are acceptable to all and achieve a generally
advantageous balance of rights and obligations. The Council also
agreed that the objective should be to conclude the round within
three years.
10. The Council emphasised the particular
importance it attaches to ensuring that the new round responds
to the particular interests and concerns of developing countries,
and that a development agenda be reflected in all areas of negotiation.
The Council confirmed its view that the developed countries should
be open to consider constructively, as a part of a comprehensive
package, proposals from developing countries, aimed at their fuller
integration into the multilateral trading system, including proposals
to make the special and differential treatment more operational
and to improve market access in areas of interest to developing
countries. The Council also noted that there are a number of other
issues, such as those relating to trade defence and other WTO
rules and disciplines, which are of particular concern to developing
countries. The Council confirmed that the EU would be open to
consider the inclusion in the New Round of any issues relating
to the functioning and implementation of the Uruguay round agreements
requested by developing countries.
A development agenda for the new round should
be accompanied by the following actions at the Seattle Conference:
— WTO members should take the decision
to enter into a commitment to ensure duty-free market access no
later than the end of the new round for essentially all products
exported by the least-developed countries. Such a commitment should
be taken by all industralised countries and most advanced developing
countries should pledge to contribute as well;
— a work programme should be built
providing for a coordinated approach to trade related capacity-building,
for enhanced cooperation and transparency in support of trade
liberalisation between the WTO and the Bretton Woods Institutions
and for more efficient complementarity of action by international
organisations in support of policy coherence.
11. The Council noted with satisfaction
that the EU had maintained a leading role in promoting a comprehensive
round by submitting to the WTO written contributions in the main
areas to be covered by such a round. The Council endorsed the
content of all these contributions and confirmed that these constitute,
together with the Council conclusions, the EU position. All the
elements contained in the contributions clearly demonstrate the
EU determination to act in an equitable and balanced way in line
with the basic parameters as outlined in paragraphs 7 and 8.
The EU objectives developed in these contributions
can be summarised as follows:
(a) Agriculture
Negotiations will be based upon the mandate
provided by Article 20 of the Agreement of Agriculture. This conditions
the long-term objective of substantive, progressive reduction
in support and protection, resulting in fundamental reform, by
other concerns, notably by experience and effects of implementing
reduction commitments agreed in 1994, special and differential
treatment of developing countries, the objective to establish
a fair and market-oriented argicultural trading system, and non-trade
concerns.
The Council recalled the conclusions reached
at its session (Agriculture) on 27 September 1999. Concerning
the main areas of negotiation:
— the Union's position will be founded
on the full Agenda 2000 package decided by the European Council
in Berlin on key trade issues such as access, assistance to exports
and commitment to reduce support. With regard to the improvement
in access, the Union, as a major food exporter, must act with
a view to sharing in the expansion of world trade, which will
be offered as a result of the new round. The Union is willing
to continue to negotiate in the process of reducing trade barriers.
bearing in mind that this process is more advanced in some agricultural
sectors than in others, as well as both domestic and export support
while seeking to obtain improvements in opportunities for EU exporters
and ensuring that all forms of export support are treated on an
equal footing by including other less transparent forms of export
support (food aid, export credits and single desk buyers or exporters);
— the Union is prepared to negotiate
reductions in support provided that, in particular, the concept
of "blue and green" boxes will continue. The "Peace
Clause" and the "Special Safeguard Clause" have
proved to be very useful instruments in the implementation of
the Uruguay Round. Similar instruments will be needed in future;
— on the non-trade concerns, the Union
will take forward the multifunctional role of argiculture, food
safety, including the precautionary principle, food quality, and
animal welfare;
— the Union will promote actively special
and differential treatment for developing countries, in particular
for the least developed countries.
(b) Services
Negotiations should be comprehensive and bring
about a deeper and broader package of improved commitments from
all WTO members to market access and national treatment. Current
imbalances in commitments across countries and service sectors
should be reduced. Negotiations should also aim at strengthening
of GATS disciplines with the aim of ensuring transparent and predictable
regulatory environment. Any unfinished business (for instance,
safeguards, subsidies, government procurement) should also be
absorbed in the negotiations. Other aspects of the functioning
of GATS which have been subject to inconclusive discussion on
interpretation or implementation could be reviewed. The participation
of developing countries should be facilitated by exploiting fully
the opportunities offered by the GATS. For the efficiency of the
negotiations and in order to maximise the results while at the
same time ensuring coherence of commitments by sectors and by
mode of supply, horizontal formulas, when appropriate, should
be considered as a useful tool for the negotiations. This would
apply across the board to sectors committed, except where expressly
indicated.
(c) Trade and Investment
The WTO should begin negotiations aiming at
establishing a multilateral framework of rules governing international
investment, with the objective of securing a stable and predictable
climate for foreign direct investment worldwide. Such a framework
should focus on foreign direct investment to the exclusion of
short-term capital movements, and has to ensure the right conditions
for international investment to be conducive to sustainable development,
and preserve the ability of host countries to regulate the activity
of investors on their respective territories, in accordance with
basic WTO principles, also taking into account the concerns expressed
by civil society, including those regarding investors' responsibilites.
Negotiations should address the issues of access to investment
opportunities and non-discrimination, protection of investment,
and stable and transparent business climate.
(d) Trade and Competition
The WTO should begin negotations on a basic
framework of binding core principles and rules on domestic competition
law and policy and its enforcement. The WTO principles of transparency
and non-discrimination would provide key foundations for the development
of such core principles and rules. The WTO should also aim at
developing common approaches on anti-competitive practices with
a significant impact on international trade and investment as
well as on the promotion of international co-operation. The development
dimension should also be at the centre of the considerations of
such a multilateral framework by combining possible transitional
periods together with technical assistance and flexibility in
the rules.
(e) Trade facilitation
The objective of trade facilitation would be
to reduce operating costs and delays for all traders, especially
small and medium-sized enterprises, and to help governments to
improve administration, increase revenue intakes and to better
detect illicit transactions. Negotiations should aim at establishing
a framework of commitments on the simplification of trade procedures.
They should encompass inter alia the application of GATT/WTO
principles for trade procedures, simplification and harmonisation
of data and documentation, streamlining of customs and related
border crossing procedures and measures to develop capacity in
developing countries.
(f) Market access for non-agricultural products
Negotiations should be based on a comprehensive
approach aiming at substantial tariff reductions and the elimination
of tariff peaks. These negotiations should aim at harmonising
and simplifying the tariff structures of all WTO members across
all non-agricultural products, without any products being excluded.
Such an approach should be sufficiently flexible to secure full
participation of developing countries while taking into account
their different levels of development. Modalities should consist
of a tariff-band approach to be accompanied by average tariff
objectives allowing for deeper reduction or tariff elimination
for specific products or product groupings. A credible market
access negotiation would have to be accompanied by a comprehensive
non-tariff initiative to make sure that non-tariff measures do
not counter the benefits of further tariff reductions. The non-tariff
initiative may have to be based on a rules approach, looking at
horizontal issues such as customs valuation, licensing, origin,
product safety standards and certification procedures, but should
also allow for discussions of specific non-tariff measures on
a case-by-case basis.
Any decision on trade liberalisation will take
due account of the compliance with the United Nations International
Convention on the Law of the Sea and the objectives of International
Agreements on environmental preservation and natural resources
management and of the International Fisheries Agreements.
(g) Trade and environment
Trade and environment policies should play a
mutually supportive role in favour of sustainable development.
Environmental considerations should be taken into account throughout
the negotiations with a view to achieving by the end of the round
an overall outcome where environmentally friendly consequences
can be identified in the relevant parts of the final package.
In order to meet every participant's trade interests, in particular
the legitimate interests of developing countries and to promote
sustainable development, the new round should maximise the potential
for positive synergies between trade liberalisation, environmental
protection and economic development. Specifically a set of issues
should be included in the negotiations aiming at greater legal
clarity on the relationship between WTO rules and trade measures
taken pursuant to provisions of Multilateral Environment Agreements
to the effect that the WTO should accommodate the use of such
globally agreed instruments and at a clarification of the relationship
between WTO rules and non-product related process and production
methods requirements with regard, in particular, to eco-labelling
schemes, at examining the role of core environmental principles,
notably the precautionary principle in WTO rules and at encouraging
co-operation between WTO and relevant international bodies.
(h) Trade related aspects of intellectual
property rights (TRIPS)
It will be necessary to take decisions on the
follow-up of the "built-in agenda" in TRIPS, notably
concerning the extension of protection under geographical indications
(multilateral register for wines, spirits and other products).
Issues left aside at the end of the Uruguay Round require further
examination for instance concerning the filing of patents. The
pursuit of additional amendments to the TRIPS Agreement should
be undertaken whilst preserving a balance between the interests
of all countries as well as between the users and the rightholders.
New developments which have taken place outside the WTO, in particular
in WIPO and on which international consensus has made progress
should also be taken into account in the WTO.
(i) Government procurement
The new round should be the opportunity to consolidate
and build on the existing multilateral work programme in this
area. Negotiations should be engaged with the objective of a multilateral
agreement providing for transparency and non-discrimination with
a broad sectoral coverage. The results should take account of
national policies and practices as well as the different levels
of development of WTO members. They should apply to the procurement
of both goods and services and to all levels of government. On
the Agreement on Government Procurement, the current work should
be continued to improve it further, through expanding its scope
and coverage as well as to attract new Members.
(j) Technical barriers to trade
Negotiations should aim at further removing
and reducing the range of regulatory barriers through, among other
things, strengthening existing provisions in the TBT Agreement
in particular concerning regulatory co-operation, clarifying existing
definitions and provisions regarding especially the promotion
of international standards, and by expanding the scope of certain
provisions with special consideration to the development of multilateral
guidelines on labelling. The EU also sees the need to address
in this context health, consumer safety and environmental issues
in a manner that ensures an appropriate balance between the right
to take action to achieve those objectives, and the obligation
to avoid disproportionate restrictions.
12. The Council underlined that the overriding
objective for the Seattle meeting must remain the launch of a
new comprehensive round. In addition to the two developing country-orientated
proposals set out in paragraph 10, the EU should also continue
its strong advocacy of greater transparency. Decisions could also
usefully be taken on improvements to the Dispute Settlement Understanding
as well as on a balanced package of trade principles on electronic
commerce, covering inter alia such issues as domestic regulation,
anti-competitive practices and clarifying the application of GATS
rules. Decisions on issues other than the launch of the round
must however be balanced, with benefits to all WTO members, and
underpin the launching of a new round.
13. The Council agreed that the EU should
strongly support the protection of core labour rights. In this
context, the Council discussed in detail the role that the WTO
should play to promote the observance of core labour rights as
well as the implications of an EU initiative to this end in the
WTO. The Council recalled the importance of the Singapore declaration
and agreed that additional initiatives should be taken on the
following lines:
The WTO should, in cooperation with other relevant
international organisations, encourage positive incentives to
promote observance of core labour rights. For this purpose, the
EU should undertake a continuous dialogue with partners in the
WTO and in the ILO as well as civil society, in order to define
and agree approaches, which would be in the best interests of
those who are really affected by these issues.
The European Union will advocate the following
measures for progress on the issue of trade and labour rights:
— enhanced cooperation between the
WTO and the ILO and their Secretariats;
— support to the work of the ILO and
its observership in the WTO;
— creation of a Joint ILO/WTO Standing
Working Forum on trade, globalisation and labour issues to promote
a better understanding of the issues involved through a substantive
dialogue between all interested parties (including Governments,
employers, trade unions and other relevant international organisations).
This dialogue should include an examination of the relationship
between trade policy, trade liberalisation, development and fundamental
labour rights. This Forum would also prepare for a ministerial-level
meeting which should take place no later than 2001. The EU will
propose to host such a meeting;
— pursuit and encourage of further
positive measures building on the incentives already applied by
the EU for the enhancement of labour rights, in particular through
additional improvements in market access for developing country
exports, and not through trade-restrictive measures.
The Council confirmed the EU's firm opposition
to any sanctions-based approaches. The Council also agreed to
pursue international consensus through discussions and negotiations
with its partners. The EU will oppose and reject any initiative
to use labour rights for protectionist purposes. In addition,
the Council agreed that the comparative advantage of countries,
particularly low-wage developing countries, must in no way be
put into question.
14. The Council stressed the importance
that close contacts be maintained, both in preparations for the
Seattle meeting and during subsequent negotiations, with parliaments,
including the European Parliament. The Council also encouraged
the Members of the Council to continue and intensify their dialogue
with the organisations of civil society and expressed its appreciation
for the efforts undertaken by the Commission in organising regular
dialogue with the civil society at European level. The Council
also agreed on the need for continuous improvement in transparency
within the WTO.
15. The Council took stock of the preparatory
process for the Seattle meeting and noted in particular that work
has started on the elaboration of a Draft Ministerial Declaration.
The Council expressed its full support to the Commission to continue
to promote the EU position in favour of a comprehensive new round
and to participate actively, with the assistance of the 133 Committee,
to the concrete formulation of the elements of the Draft Ministerial
Declaration on the basis of the objectives as identified by the
EU in the various sectors and issues.
16. The Council agreed to continue to follow
closely the developments of the preparatory process for the Seattle
meeting and to return to the matter as appropriate. It also decided
to meet in special session in Seattle throughout the duration
of the Conference and to be assisted by the 133 Committee in order
to contribute to the final stage of negotiations, take a position
on the draft WTO Ministerial Declaration resulting from those
negotiations, and to take the necessary decisions.
17. The Council intends to adopt negotiating
directives as soon as possible after the launching of the New
Round.
25 October 1999
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