BRIEF REPORT
The meeting
was held for 2 days from 27-28 January 2003. It took place at Sheraton Utama Hotel,
The meeting was divided into 8 sessions:
1. Introduction on Overall view of the coming Doha Round and
How It Differs from Previous Rounds
2. Agriculture Products (common issues, mechanism of
interaction between government and agriculture association/business
practitioners)
3. Manufacturing and Services (common issues, mechanism of
interaction between government and private sectors)
4. Violation of WTO Rules and Disputes Settlement Mechanism
and Procedures – What Can Developing Countries Do?
5. Government Support for Small and Medium Enterprises in the
Quest for Them to Become Internationally
6. Issues for Developing Countries Relating to Trade-Related
Aspects of Intellectual Property Rights (TRIPS)
7. Country Report Session
8. Working Group Discussion
Welcoming Speech by Mr.Omar Halim, Executive Director
of
In meeting the challenge of
globalization, which all developing countries - small and large in size of
population; high-income, middle-income or low-income; rich or poor in natural
resources – have to do, our effort has to be complemented by making our own
internal arrangements to solidify our positions in facing this challenge.
Policies have to be formulated taking fully into consideration the condition
and objectives of the private sector, so that in implementing these policies,
businesses can and will respond fully since their interests are already taken
into account. Furthermore, since attaining their political independence, when
the business sector in the newly independent countries was usually weak, most
if not all of today’s
This meeting will focus on
government and business collaboration relating to specific WTO-related issues
or areas that are considered crucial, namely agriculture; manufacturing;
services; government support for our small and medium enterprises (SMEs) to
become internationally more competitive; violation of WTO rules; dispute
settlement mechanism; and issues for developing countries relating to
trade-related aspect of intellectual property rights (TRIPs).
These issues are going to be negotiated in the
For the next two days, we have with
us experts and participants from
On behalf of the organizers and funder – the NAM CSSTC, the Ministry of Industry and Primary Resources and the Government of Brunei Darussalam – I would like to warmly welcome all of you for the opportunity of sharing your experience and thoughts together, so that we could collectively come up with very good conclusions and recommendations for the benefit of NAM member countries.
Finally, I should like to take this
opportunity, on behalf of the Board of Directors of NAM CSSTC, to thank His
Excellency the Permanent Secretary and the Staff of MIPR for their cooperative
spirit and deeds which have made the organization of this Meeting in
Thank you.
Opening Remarks by Dato Paduka Haji Idris
bin Hj.Belaman, Permanent Secretary of Ministry of
Industry and Primary Resources, Brunei Darussalam
We value the co-operation, friendship and
understanding that the Non-Aligned Movement (NAM) fosters among developing
countries. There is much scope for expanding the economic ties among our
regions In 2001, exports from Latin America and Africa to Asia (excluding Japan
and China) amounted to a mere USD23 billion, or 3 percent of the world total.
On the other hand,
Development issues lie at the heart of the Doha
Round. Through these negotiations, developing countries have the opportunity to
achieve enhanced access for their products in developed countries. The Doha
Round also provides an opportunity to reduce barriers to South-South trade. Whilst
development assistance and debt relief programmes are
important; studies by the World Bank indicate that reduced barriers to the flow
of developing country
goods result in $1.5 trillion in additional cumulative income for developing
countries between 2005-2015, much more than what they receive in development
aid. It is thus imperative that the Doha Development Agenda lives up to its
name.
However, many difficult issues remain without any
solutions in sight, leading to some unevenness in the negotiations. Agreement
needs to be reached in such key areas as special and differential treatment for
developing countries in implementing WTO agreements and the issue of providing
life-saving drugs in developing countries without domestic manufacturing
capacity. Moreover, the negotiations on agriculture, services and market access
for non-agricultural goods face looming deadlines.
Flexibility is thus needed on all sides and
Governments must remain committed to the multilateral trading system. People in
business have an important, indeed crucial, role to play in this.
However, they are often skeptical of the benefits
they can derive from the WTO and its framework of rules and disciplines. After
all, it is reasoned, it is governments that participate in the negotiations and
discussions. Another reason for this skepticism is lack of knowledge on the
part of the business community and the general public.
Government does not however operate in vacuum. In
the developed countries and some developing countries, there are institutional
mechanisms for government consultations with industrial associations and
chambers of commerce on WTO-related issues. In these consultations, government
seeks to obtain business views on the position they should adopt on the
specific issues under negotiations or discussions. Industry and business
enterprises also have an avenue for raising problems they may face in export
markets and Governments can bring complaints to the WTO.
In developing countries where such mechanisms do
not yet exist, it will be necessary to put them into place. It may also be
desirable to improve the mechanism in developing countries where it already
exists.
This notwithstanding, while industries and business
enterprises are increasingly becoming aware of the need to pay more attention
to the WTO’s work programme,
many of them require assistance in enhancing their understanding of the
multilateral trading system.
I am pleased to not that these are the dual
objectives of today’s meeting. Brunei Darussalam is also pleased to have this
opportunity to contribute to the capacity building efforts for more effective
participation of developing countries in the WTO negotiations.
Plenary Session 1:
Paper: An Overview of the
Speaker: Vincent Sui
Fong Kong, Ministry
of Industry and Primary Resources (MIPR),
The main points
addressed by Mr. Kong are as follows:
1.
The first six GATT rounds
of negotiations that were held between 1947 and 1967 focused exclusively on the
reduction of tariffs.
2.
Doha Development
Agenda includes negotiations on agriculture and services that actually began in early
200, as well as non-agricultural goods, the environment, WTO rules, regional
trade agreement on investment, competition, government procurement and trade
facilitation.
3.
The
4.
The major challenge
in the negotiations is agriculture.
5.
Business sector,
particularly SMEs are generally not fully aware of the benefits arising from
WTO agreements.
The presenter
recommended the followings:
1.
Knowledge of the
multilateral trading system will enable businesses to assist their governments
to take full advantage of the WTO trade policy review mechanism and the dispute
settlement mechanism.
2.
Businesses should
follow the ongoing discussions and negotiations and notify their governments of
their views and concerns, so as to ensure these are taken into considerations.
Plenary Session 2
Paper: Issues in the Agriculture Sectors
and Their Challenge to Developing Countries
Speaker: Sugihono Kadarisman, International Chamber of
Commerce (ICC)-
The main points of
Mr. Kadarisman’s paper are:
1. Implementation of Trade Agreements and Compliance by its members to the rules set forth have proven to be difficult because of the difference in economic development stages, culture and national interests among the members themselves.
2. In the context of liberalizing international
trade, developing countries including
3. Developing countries have not been able to take full advantage of the market in developed countries, while on the opposite their own markets must be readily wide opened to make easier access for products from developed countries.
4. The capacity imbalance to perform a competitive opening market with the same level of playing field between developed and developing/least developed countries is the source of today’s fierce criticism addressed to WTO.
5. The issue of capacity building for developing countries in adhering to WTO rules is becoming an urgent matter and needs.
6. Agriculture is one of the most sensitive sectors that the WTO is trying to liberalize especially in relation to the subsidy and market access/ tariffication issues.
7. The Agreement on Agriculture aimed at achieving a fair and predictable trading system of agriculture products through regulating the elimination of subsidies and creating the opportunity for market access by taking into account the needs of the least developed and developing countries.
8. The challenge faced by developing countries with regards to agriculture trade liberalization are two-folded, namely those are posed by “inbound traffic” and those by “outbound traffic” of products.
Mr. Kadarisman recommended the following items:
1. A more workable
cooperation scheme such as Regional Trade Agreement which has been flourishing
in recent years can be regarded as an ‘intermediate step’ towards a real MTS.
2.
Any initiative to regulate agriculture market,
including its liberalization must ensure to consider three major factors namely
food security, poverty alleviation and rural development which are basically
the main objectives in their economic endeavors.
3.
The
most suitable tariffication formula for
agricultural-based developing countries is to have a wide tariff range with
high maximum tariff and low minimum tariff levels.
4.
Developing
countries including
5.
Interface
between Government and Private Sector at national level as well as
Plenary Session 3
Paper: Manufacturer and Services:
Government-Business Collaboration to Make the
Speaker: Dr.Minendra P Rijal,
Dr.Rijal highlighted the following
issues:
1. One important distinction of the WTO from
its forerunner is that it contains a strong provision of dispute settlement
system that is faster, more automatic and its rulings not subject to blocking
by any disputing party.
2. With the rapid
innovations in information technology and the resultant impact on
communications, banking, and other service industries, the world trade in
services will continue to expand rapidly and may overtake trade in merchandise
within the next ten years.
3. Recognizing
the asymmetry in the development of service industries of developed and
developing countries, the GATS aims at facilitating increased participation of
developing countries through negotiated specific commitment relating to access
to technology on a commercial basis, improvement of access to distribution
channel and information network, and liberalization of access in the modes of
supply and service sectors of export interest to developing countries.
4. The
WTO tries to deal with special needs of developing countries which are special
provision dealing with developing countries, role of the Committee on trade and
development, and provisions for technical assistance.
5. One
important trade liberalization issue to developing countries is the question of
market access.
6. Doha
Round has mandated to International Trade Centre (ITC) to provide technical
assistance and capacity building assistance in multilateral trade system
related matter to the business communities in developing countries and
transition economies.
Dr.Rijal presented the following recommendations:
1.
The developing countries should aim to bring down
the ration of maximum to average tariffs.
2.
The legal and regulatory environment in developing
countries should be conducive to generate supply-chain responses to the improved
market access.
3.
In order to be able to substantially improve their
supply-side responses to emerging trade opportunities, the developing countries
should pursue increased liberalization and enhanced efficiency in major
services including transport, finance, insurance, telecommunication and energy.
4.
Developing countries should have the need for
building capacity to be able to approach trade issues from national development
perspective.
5.
Since the benefits of liberalized trade regime
accrue to businesses directly, their role in trade negotiations to shape future
international trade regime is crucial.
6.
A qualitative national dialogue between the
government and businesses should take place in order to help materializing a
successful negotiation for the Doha Development Agenda
7.
Intra developing country request should be
encouraged.
8.
Developing
countries need to identify areas they are willing to gain more in the
liberalized trade.
Plenary Session 4
Paper: Accommodating Special Developing
Country Concerns on Antidumping: A Few Ideas on Operationalizing
Article 15 of WTO Antidumping Agreement
Speaker: Dr.Asad M Khan, Ministry of Foreign Affairs,
The key points
addressed are as follows:
1.
The multilateral Anti
Dumping (AD) regime, as it evolved in the last fifty years treated developing
countries discriminately.
2.
Not only are there no
legal safeguards protecting developing countries interests under AD laws but
even informally the developed countries do not take into account their special
status while initiating AD actions.
3.
Labor-intensive
exports not only made the developing countries more susceptible to competition
from new entrants but also made such exports a ready and easy target for AD
actions.
4.
It is widely believed
among the developing countries that the WTO Anti Dumping Agreement (ADA) did
not provide developing countries with the necessary tools to benefit from the
special and differential treatment they needed.
5.
The Doha Ministerial
entrusted the WTO Trade and Development Committee to review all the Special and
Differential (S&D) provisions in various WTO agreements with a view to make
recommendations on making them effective.
The speakers
suggested the followings:
1.
It is proposed to
take a three-tiered approach on how developing countries can be treated
differentially and more favorably under
2.
To facilitate the
process and to work out a politically neutral system of classifying countries
the WTO members may work on defining and drawing a composite Antidumping
Vulnerability Index (AVI) based on several universally recognized and
independently verifiable indicators.
3.
Another method to
grant exemptions from AD could be to devise a ‘Critical Exports’ criterion
whereby apart from just looking at the volume of exports from a particular
source, the nature and significance of the subject exports for the exporting
country shall be also be looked into.
4.
A strong political
will have to take place in undertaking courses related with solution to the
problem of AD actions particularly against developing country export.
Plenary Session 5
Paper: Government-Private Collaboration in Fostering Small and Medium
Enterprises in the Globalising Era
Speaker: Prof. Baijah Mhango,
The key issues he
highlighted include the following:
1. With the
establishment of the WTO, the developing countries have effectively lost their
ability to use trade policy as a tool for national industrial developments at a
time when it is most needed.
2. SMEs are being
forced to prepare for full competition against industrial giants anchored in
the industrialized countries
3. Liberalization and globalization are not
having the impact expected on developing economies, which indicates that the
development of SMEs, the backbone of these economies are adversely affected by
them.
4. SMEs are facing increased competition at hoe
against import
as no protection will be allowed, while they must as the same time compete to attain, maintain or increase their market
share at the international market.
5. The SMEs lack resources of their own to
produce efficiently for international market in the field of In-plant technical
assistance, export promotion services, export marketing and sales services, and
export sales and distribution services.
6. A necessary complement to the industrial
(SME) policy is the institutional framework for the provision of ancillary
services to assist individual producers to improve the efficiency of their
operations. These services are
indispensable in the achievement of competitive efficiency and structural
diversification.
7. The arrival of the WTO in the international
trading system has
narrowed down the room allowed to maneuver in support of SMEs since the
instruments of the industrial policy have to comply to the requirements of the
WTO as detailed in the TRIPS, TRIMS and GATS.
8. Countries referred as Newly Industrialising Countries (NICs)
will have to make some adjustment in their industrial policy to continue to
allow their SMEs to grow.
Professor Mhango also deliberated the following recommendations:
1.
The developing
countries have to be loud and clear in calling for special and differentiated
treatment clauses to be strengthened and expanded to protect the interest of
developing countries. The critical sectors that desperately need that treatment
are agriculture and special protection for domestic production including the
SMEs.
2.
The developing
countries should be asking for appropriate mechanisms to ensure that adequate
financial and technical resources are made available for all developing
countries to improve their institutional and productive capacity.
3.
The developing
countries would be asking not only for “free trade” but also “fair trade”.
4.
Government and
Private collaboration will have to expend effort together to explain to the
population what is actually happening in the new international trading system
led by the WTO.
5.
SMEs should undertake
structural changes in the production, marketing and distribution of goods and
services to remain competitive even in their domestic market.
6.
Government-Private
collaboration should also focus on conducting personnel training
emphasizing on meeting quality and environment norms in the productions process
(ISO 9002 and others).
7.
The private sector
will be required to take more interest in helping to finance activities in
technological development.
8.
Government-Private
collaboration in fostering SMEs should also look into viable ways of linking
domestic enterprises with foreign ones.
9.
Translation of WTO
and other rules and regulations into local legislation products is a necessity.
10. Developing countries should concentrate on regional integration/regional
grouping as a familiar ground in the growth of SMEs.
Plenary Session 6
Paper: Strategies to Evolve Course
Corrections in TRIPS
Speaker: Dr. K.V. Swaminathan, Waterfalls Institute of
Technology
The important points
conveyed by Dr. Swaminathan are:
1.
Intellectual Property
Rights (IPR) is defined in the context of the Trade Related Aspects of
Intellectual Property Rights (TRIPS) as a right given to people over the
creations of their minds.
2.
For the purpose of
TRIPS Agreement Intellectual Property refers to all categories of intellectual
property and this includes copyright and related rights, trademarks,
geographical indications, industrial design, patents, integrated circuit layout
design and protection of undisclosed information.
3.
Despite the fact that
IPR is valuable to an enterprise, only very few enterprises know how to value
an IPR.
4.
To a certain extent
many countries of the world, particularly many developing countries had felt
that TRIPS Agreement is forcing their systems to make modifications which are
in conflict with their value system they had attached in many things they do in
their day to day walk of life.
Dr.Swaminathan recommended the
followings:
1. The flexibilities available
within TRIPS should be fully utilized to address the problems encountered in its
application, through evolving strategies to provide suitable course
corrections.
2. Enhancement of awareness programme on matter on IPR should take place in order to
enable more stakeholders to give a feed back to the government agencies who are
responsible for further negotiations.
3. It is
necessary for enterprises that in-house efforts must be made to regularly audit
the intellectual property portfolio.
4. Enterprises
taking up the core pf technical development are required to evaluate the
results as a management resource in the form of IPR and to strategically administer
and use them.
5. Government
should also provide support in capacity building of the enterprises to deal
with the competitive situations around them.
Plenary Session 7
Country Report Presentation
|
Country |
Key Points Highlighted |
|
|
·
Analysis of benefits
and drawbacks of joining of ·
The joining process
requires considerable changes of the national legislation ·
It is essential to
collaborate in a regional level for attaining of combined decisions on
joining the WTO ·
The existence of the ·
The electronic
commerce development and use of international experience in the field of
trade facilitation are component parts of preparation for ·
Recommendations: -
To prepare a draft law
on reconciling the legislation according to the WTO recommendations, and a
draft law regulating subsidy -
To identify the most
perspective national industries -
To implement detailed
analysis of export potential of Belarusian economy |
|
|
·
In order to benefit
from GATT/WTO activities, countries are expected to make reciprocal
commitment by way of tariff reductions and removal of non-tariff barriers. ·
·
Developing countries
such as ·
To be effectively
participate in the WTO activities, developing countries are faced with
challenges related to supply side constraints, globalization, technology,
limited human resources for negotiations, and human capital |
|
|
·
·
Policies of developing
countries to face TRIPS-related issues |
|
|
·
The GATT-WTO Regime ·
The TRIPS Agreement ·
Assessment of the
impact of TRIPS on ·
Conclusions: -
Similar concerns faced
by -
Regional collaboration
must be considered for safeguarding common interests of the third-world
country -
-
-
-
|
|
|
·
The importance of
private sector’s role in ·
Cooperation between
the private sector and the government ·
The interaction
mechanism between government and private sector ·
Accession process to
the WTO ·
Private sector role in
the accession process, and areas in which the private sector participated ·
Conclusions: -
-
-
There should be a
coordinated cooperation between the government and private businesses in
addressing post accession challenge |
|
|
·
‘Open door’ policy;
second phase of accession negotiations into the WTO ·
Characteristic of
Vietnamese enterprises ·
Difficulties in
Government-Business collaboration ·
Preliminary measures -
Establishing a
rule-based environment -
Creating more
participatory and responsive government -
Undertaking
administrative reforms -
Strengthening the
banking system -
Equitization of SOEs -
Consolidating R&D
activities -
Raising the awareness ·
Government-Business collaboration is a key factor
ensuring the successful process of international economic integration of |
Working Group on Manufacturing
and Services Sector
|
No |
Issues |
Policies and mechanism |
Recommendation |
Action by |
|
1. |
Lack of communication and coordination |
Ad hoc Forum |
Increase awareness either formally or informally |
Seminars organized by government Q & A Column in mass media Dissemination & updates of information in government websites |
|
2. |
Poor knowledge and understanding of WTO and its related issues |
Identify training needs at the seminars |
Structure a schedule of regular formal training programme |
Initial training by relevant agencies e.g. MIPR in Specific Agreement training by the WTO |
|
3. |
Transparency in policies and procedures |
Limited and unclear guidelines |
Enacting relevant laws which among others address WTO rules and regulations |
Both public and the private sector partnership in providing feedback and active participation in reviewing and drawing up guidelines, policies and procedures |
Working Group on Agriculture
Sector
1. The role of agriculture
sector in
As
2. WTO Multilateral Trading System (MTS)
NAM countries believe in the merits of MTS where in the long term market
oriented agriculture sector will be beneficial to all countries and the world
economic growth, provided that all WTO stipulations are implemented sincerely, fairly by
all members and on the same level of playing field. MTS shall by no
means undermine the role of agriculture sector in achieving the above
objectives of developing / NAM-countries.
3. Special Differential Treatment
Due to lack of capacity, in the
short to the medium term developing /
The agriculture issues and
the challenge that they are posing to
a. Tariff
reduction formula
Tariff reduction schedule
is the core issue in the AOA. Most developing /
Recommendation :
In implementing the AOA, developing/
q High bound tariff (converted from non-tariff border measures);
q Reduction tariff rate lower than previously agreed;
q To ensure food security applied tariff may be as low as possible, but with high bound tariff, thus flexibility is obtained through this wide tariff range;
q Implementation time frame should be extended beyond 2005 (ref: APEC 2020);
q Staple food (such as rice, corn, sugar and soya bean) to be excluded from the tariffication formula.
b.
Minimum market access
q
For inbound products minimum market access stipulation
(by TRQ instrument) is not urgent, but if applied, low TRQ is most suitable to
q
For outbound products to developed country
markets higher TRQ is welcome.
Recommendation :
TRQ must be administered consistent with MFN principle of the WTO, and with transparency and fairness.
a. Agreement on SPS
q While boldly allowing all member to take high standards SPS measures, the conditions for such measures are vaguely defined;
q Although International Standards such as the CODEX Alimentarius are to be referred to, the Agreement allows higher standards to be adopted individually by WTO member countries;
q Due to lack of capacity, developing/ NAM–countries will always be on the losing side with regard to SPS.
Recommendation
:
b.
Agreement on TBT
q The issue related to agriculture products here is on the standard conformance and procedure commensurate to SPS;
q Implementation of TBT Agreement is a routine matter in developed countries while in developing countries it will add tremendous costs because of lack in capacity.
Recommendation :
c. Anti-dumping
q The Agreement on anti-dumping contains clauses, particularly on allowing the application of provisional anti-dumping measures, while dumping margin investigation is being conducted;
q This will open the opportunity for abuse of anti-dumping as a pretext of market protection, which will more likely be taken by developed countries to competitive products imported from developing countries, vis a vis the other way around (because lack of capacity and weaker markets of developing countries).
Recommendation :
NAM countries recommend that this clause is to be amended so as to eliminate such “trade harassment” (e.g. petition for investigation or repeated petition for investigation on the same presumption of dumping act---but while the proof is not conclusive during the allowable time period for applying anti-dumping measures, the market momentum of the product has been lost).
d. Subsidies and Countervailing Measures (SCM)
q The Agreement on SCM categorises three types of subsidy namely prohibited subsidies, actionable subsidies and non-actionable subsidies;
q Wide coverage of prohibited subsidies will greatly reduce capability of NAM-countries in their economic development efforts, while also risking the consequence of prosecution in actionable subsidies because of its vague definition in the Agreement.
Recommendation :
e. Safeguard measures
q
If implemented professionally and sincerely the
Agreement on Safeguard will be beneficial to developing /
q Unfortunately many non-MFN bilateral Agreements on Safeguard are still in place today (VERs), which constitute “ grey areas” that is yet to be dealt with by WTO.
Recommendation :
Maximum utilisation by
f. Modification of tariff schedule
q Article XXVIII of GATT /1994 provides the opportunity to members to exit from the agreed tariff reduction schedule through justifiable reasons;
q
This Article is generally favourable
for
Recommendation :
1. Consolidated negotiation positions
In preparation for the Cancun WTO Ministerial Meeting which is due to commence in September 2003, it is desirable that NAM-countries can consolidate negotiation positions on :
a. Common modalities & methodologies for conclusive commitments in the agriculture sector ;
b. Concrete proposal on special differential treatment ;
c. Concerted deliberations during the negotiation process.
In doing so NAM-CSSTC may serve as a coordinating point.
2. Government-
private sector collaboration
a. Enhanced coordination and linkages among core Ministers of Government, so that issues affecting business and farmers are resolved in a concerted manner. Discussion on issues and deliberations towards an acceptable agreement will be more effective if representatives from the private sector are included in the negotiation delegation.;
b. Effective Forum for dialogue and interaction between Government Ministers, Departments and
Agencies through events such as regular workshops, seminars and periodical
Government-Private Sector Consultative Meetings. At
c. Development of capacity building programmes for compliance to the WTO rules, in technical as well as negotiation capabilities. A prerequisite for that is an effective exchange of information between government and the stakeholders. Adequate and timely supply of relevant information on WTO related issues to the private sector and farmers, and vise-versa on the actual concerns of private sector and farmers to the government, are very important. Translation of WTO Agreements and their related issues into local language is necessary, to enhance knowledge and understanding by the local people so that they can easier accept and appropriately react on government decisions.
d. Strengthening of Business Associations.
Working Group on Violation of WTO Rules
and Disputes Settlement Mechanism and Procedures
The compulsory jurisdiction accorded to the WTO panels in an integrated system of agreements allows the new regime an unprecedented out reach over the largest number of sovereign states in the history of international trade relations. The administration of disputes under WTO has received mixed assessments. Some of the shortcomings in the WTO Dispute Settlement regime (DSU) discussed and identified by the Working Group were as follows:
- WTO through DSU is arrogating to itself the right of writing new rules.
- The competence of the panelists and their impartiality, besides the lack of transparency has also come under attack.
- Instead of accepting the panel/appellate body findings in good faith some member states are retaliating through counter institution of cases in WTO.
- The diminished reliance or resort to constructive and mediatory mechanisms in practice even though available on paper because of the automatic creation of panels is undermining the system.
- Excessive reliance on the WTO dispute resolution system made easier more than ever before because of the automaticity allowed for the creation of panels and an ever widening area of coverage in an integrated system is having its toll on the system.
- Developing Countries remain handicapped in view of their limited means to retaliate and even where they do have the means, the potential for such retaliation being self-injurious is enormous.
- The system is clearly overburdened and bringing in new issues under the WTO rubric and by implication under DSU would only make it more unwieldy.
The general issues identified particularly in reference to the Government- Business Collaboration were as follows:
- The understanding of the Dispute resolution procedures and mechanisms under WTO remains skimpy in the developing countries both in the public as well as in the private sector.
- Dispute Resolution being a cross cutting issue, the need for closer collaboration remains imperative particular to enhance capacity in the business community to enable them to effectively respond to the various challenges posed by WTO regime
- The exorbitant cost, complex nature and serious vulnerability of the developing countries to be involved in import remedy related actions demands greater focus on capacity building in this critical area of dispute resolution.
- The need to collect and collate a wide range of data to make a legally tenable case demands close coordination between government and private sector in this critical area.
-
There was an absence of proper institutional
arrangements by way of the existence of various forums facilitating closer
collaboration not only between government and business but other farming
interests also.
General Recommendations
The Working Group proposes the following set of general recommendations in regard to the broader issues faced by the developing countries in regard to the improvement of WTO dispute settlement regime:
- The ever-increasing burden on WTO Dispute Resolution Mechanism could be reduced by further strengthening the consultation and mediation procedures and by devising mechanisms that would encourage the member states to have e recourse to these procedures in a practice as well.
- Rather than allowing the victorious party to have automatic recourse to retaliation members should be encouraged to voluntarily offer compensation to the aggrieved party.
- Member states should be persuaded to explore bilateral and regional options to settle disputes.
- Any attempt to rewrite or introduce major changes in the existing DSU, which would change its rule-based character should be resisted.
- Attempts to seek solutions for environment and social problems through trade rules and the DSU should not be allowed.
- The suggestion to allow submission of amicus curiae briefs by the non-parties or to allow public hearings for the panels would only complicate the DSU further.
- The need for concerted joint government-private sector collaboration in addressing issues pertaining to dispute resolution procedures remain imperative. Creation of advisory bodies and panels comprising legal and trade experts may be considered to guide and educate the business and other private sector groups including farmers on various important issues in this area.
- The need for Government-Business collaboration in the context of WTO remains urgent and more so in the case of import remedy laws, particularly the Antidumping and countervailing duty laws.
- In the domestic context the advisory groups could liaise with concerned associations and counsel them in preparing them to face WTO complaints. In cases where national manufacturers are facing AD actions abroad the groups could also assist the business in filing questionnaires besides counseling them on how to avoid AD/CVD actions in the first place.
- Another step to facilitate Business in responding to AD/CVD actions is to pool resources by way of creating a fund to particularly help the small and medium enterprises that face such challenges.
- Developing Countries should pool their resources to set up institutions that could facilitate as well as accelerate the process of capacity building in the area of dispute resolutions.
-
In this regard
- NAM CSSTC may in collaboration with other institutions hold region and sector specific seminars and workshops to jointly study the WTO disputes.
Working Group
on Public-Private Collaboration in the Development of SME’s
in the WTO and other Rules
1. RECOMMENDATIONS
1.1 The working group recalled that in terms of Para 6 of the Declaration of the TRIPS Agreement on Public Health, the Council of TRIPS is to give an expeditious solution on the problem faced by countries without sufficient manufacturing facilities in the pharmaceutical sector.
The working group noted that as December 2002 the necessary agreement has not been arrived at and it is expected that the negotiation will be continued and a solution is hoped for in early 2003.
The working group emphasized the importance of access to medicines, particularly to certain major diseases and urged that a solution to this should find in view of great importance to countries in this region.
1.2 The working group recognised that with respect to Para 7 of this Declaration, the TRIPS council has reported that the obligations of the least developed countries in giving effect to the transitional provision (Article 66.1) is now extended until 1st January 2016.
The countries of the region should now make efforts to build their capacity during the next decade and assess their position and seek further extension to this time if required.
1.3 The working group recognised
the ongoing revisiion to the TRIPS provisions
particularly in the context of
Patenting relating to biotechnology invention is a matter of great importance to developing countries. In view of this, the review of this provision under Article 27 and the further developments will greatly influence the capacities of the developing countries to benefit from such inventions.
1.4 Also recognising the importance of examination of the relationship of TRIPS and the provisions of the convention for biological diversity, the working group emphasized the necessity of clarifying this relationship through negotiation in the TRIPS Council. The countries of the region should examine the specific experiences and make them available in such a form that they can be used in the further negotiations.
The working group express concern that their traditional knowledge, which is in public domain, is now being pirated and converted to proprietary knowledge through patenting in other countries or in that country itself.
1.5 The working group recognised
the contents of
This information obtained should be analysed and the TRIPS Council should bring out a public document so that the least developed countries could examine the adequacy and the effectiveness of the incentives given by the developed countries to their enterprises for the transfer of the technology to the least developed countries.
1.6 The working group recognised the importance of geographical indications on several products and stressed the importance of the same to the countries and the community which had worked, nurtured, and brought it to the present standard. This should result in due reward and recognition. In the DOHA Declaration, the ministerial committtee had endorsed the need for extending protection for products in a manner similar to those for wines and spirits.
While noting with disappointment, the lack of progress in resolving the issues, the working group would urge further negotiations on this.
1.7 The working group recognised the necessity of enhancing awareness of the business enterprises about the current state of negotiations. Since they are the centre stage players who would be benefitted or those who would suffer when these provisions are being implemented. Several mechanisms for enhancing such awareness were reported in the working group suggested that these should be taken in the different countries with suitable adjustments according to their needs.
Some of these would include:
· organising seminars, workshops and training programmes;
· preparing newsletters, updates and other materials to disseminate correct information;
· preparing CD-Roms particularly of multi-media interacting types for the enterprise to get the required information;
· creating web-sites which can be accessed by the enterprises;
· mechanisms for sharing experiences relating to any specific aspects which has posed a problem; and
· providing a feed-back mechanism so that responses received will be processed in a timely manner.
1.8 The working group suggested creating a well-structured modal point or a cell in a country which could facilitate establishing joint ventures involving local enterprises. Providing linkages with regional centres could enhance the capability of the model point or cell.
2. SUGGESTIONS TO NAM-CSSTC
2.1 The working group felt that the most recent documents on the progress relating to DOHA Development Agenda should be widely distributed among the business enterprises so that they could appreciate the issues involved and respond to them in a suitable manner. The working group requests that the NAM-CSSTC could assist in procuring and distributing the same to their members.
2.2 The centre could prepare well-structured programmes for workshops which are targeted to specific industries or commerce groups which will be of immediate interest to the member countries of the region.
2.3 The centre could also consider preparing in depth studies on specific topics currently under discussions on the DOHA Development Agenda and have them transmitted to the members seeking their immediate response so that they may be incoporated in finalising their study reports.
Working Group on TRIPS-Related
Issues
1. RECOMMENDATIONS
1.1 The working group recalled that in terms of Para 6 of the Declaration of the TRIPS Agreement on Public Health, the Council of TRIPS is to give an expeditious solution on the problem faced by countries without sufficient manufacturing facilities in the pharmaceutical sector.
The working group noted that as December 2002 the necessary agreement has not been arrived at and it is expected that the negotiation will be continued and a solution is hoped for in early 2003.
The working group emphasized the importance of access to medicines, particularly to certain major diseases and urged that a solution to this should find in view of great importance to countries in this region.
1.2 The working group recognised that with respect to Para 7 of this Declaration, the TRIPS council has reported that the obligations of the least developed countries in giving effect to the transitional provision (Article 66.1) is now extended until 1st January 2016.
The countries of the region should now make efforts to build their capacity during the next decade and assess their position and seek further extension to this time if required.
1.3 The working group recognised
the ongoing revisiion to the TRIPS provisions
particularly in the context of
Patenting relating to biotechnology invention is a matter of great importance to developing countries. In view of this, the review of this provision under Article 27 and the further developments will greatly influence the capacities of the developing countries to benefit from such inventions.
1.4 Also recognising the importance of examination of the relationship of TRIPS and the provisions of the convention for biological diversity, the working group emphasized the necessity of clarifying this relationship through negotiation in the TRIPS Council. The countries of the region should examine the specific experiences and make them available in such a form that they can be used in the further negotiations.
The working group express concern that their traditional knowledge, which is in public domain, is now being pirated and converted to proprietary knowledge through patenting in other countries or in that country itself.
1.5 The working group recognised
the contents of
This information obtained should be analysed and the TRIPS Council should bring out a public document so that the least developed countries could examine the adequacy and the effectiveness of the incentives given by the developed countries to their enterprises for the transfer of the technology to the least developed countries.
1.6 The working group recognised the importance of geographical indications on several products and stressed the importance of the same to the countries and the community which had worked, nurtured, and brought it to the present standard. This should result in due reward and recognition. In the DOHA Declaration, the ministerial committtee had endorsed the need for extending protection for products in a manner similar to those for wines and spirits.
While noting with disappointment, the lack of progress in resolving the issues, the working group would urge further negotiations on this.
1.7 The working group recognised the necessity of enhancing awareness of the business enterprises about the current state of negotiations. Since they are the centre stage players who would be benefitted or those who would suffer when these provisions are being implemented. Several mechanisms for enhancing such awareness were reported in the working group suggested that these should be taken in the different countries with suitable adjustments according to their needs.
Some of these would include:
· organising seminars, workshops and training programmes;
· preparing newsletters, updates and other materials to disseminate correct information;
· preparing CD-Roms particularly of multi-media interacting types for the enterprise to get the required information;
· creating web-sites which can be accessed by the enterprises;
· mechanisms for sharing experiences relating to any specific aspects which has posed a problem; and
· providing a feed-back mechanism so that responses received will be processed in a timely manner.
1.8 The working group suggested creating a well-structured modal point or a cell in a country which could facilitate establishing joint ventures involving local enterprises. Providing linkages with regional centres could enhance the capability of the model point or cell.
2. SUGGESTIONS TO NAM-CSSTC
2.1 The working group felt that the most recent documents on the progress relating to DOHA Development Agenda should be widely distributed among the business enterprises so that they could appreciate the issues involved and respond to them in a suitable manner. The working group requests that the NAM-CSSTC could assist in procuring and distributing the same to their members.
2.2 The centre could prepare well-structured programmes for workshops which are targeted to specific industries or commerce groups which will be of immediate interest to the member countries of the region.
2.3 The centre could also consider preparing in depth studies on specific topics currently under discussions on the DOHA Development Agenda and have them transmitted to the members seeking their immediate response so that they may be incoporated in finalising their study reports.