142nd Session of the Trade Committee - Summary

The OECD Trade Committee provides senior trade policy officials of OECD Member countries and several observer countries the opportunity for a wide-ranging exchange on key trade policy issues and developments. It held its 142nd Session on 25-26 October 2005 in Paris (agenda of the 142nd Session of the Trade Committee - version francaise). The meeting was preceded by a one-day informal consultation between the Trade Committee and civil society organisations.

The meeting opened with a presentation by the Chair of the OECD Development Assistance Committee (DAC) on “Aid for Trade: What, why and how?”. The presentation addressed the issue of how to deliver aid for trade most effectively and how to maximise the impact of trade on poverty reduction. The Chair of the DAC informed Delegates of a special DAC meeting on Aid for Trade that was to take place on 27 October, and expressed the need for aid and trade communities to further strengthen their co operation. During the discussion that ensued, Trade Committee Delegates welcomed the presentation and the aid for trade initiative, indicating that it was a necessary complement to an ambitious outcome of the Doha Development Agenda (DDA). They felt that it was necessary to increase awareness and support for this initiative in Geneva, and hoped that the upcoming special DAC meeting would provide an impetus for the process. In regard to enhancing the Integrated Framework (IF), Delegates expressed the view that the IF should continue to be focused on the needs of LDCs, and that its enhancement could include the possible extension to other low-income countries.

The Deputy-Director for Trade updated the Committee on the follow-up to the horizontal project on Trade and Structural Adjustment (TASAP). After the completion of a major study on Trade and Structural Adjustment: Embracing Globalisation, which was published in August 2005, the Working Party of the Trade Committee will be pursuing further research on designated sectors, including agriculture, chemicals and telecommunications, as well as the information technology and business process services sector. In parallel with this follow-up work, the OECD is considering how best to pursue this work at the horizontal level as part of the OECD-wide project on Globalisation and Structural Adjustment. Delegates expressed strong support for this project and commented on the importance of continuing work in this area, which is central to trade policy. They expressed the need to continue to focus on how the adjustment process differs between developed and developing countries.

A significant portion of the discussion was focused on the DDA and the road to the sixth WTO Ministerial Meeting to be held in Hong Kong, China in December 2005. All Delegates expressed a sense of urgency and a commitment to making Hong Kong a success, as an important milestone for the completion of the DDA in 2006. They noted that there was much at stake and recognised the importance of a successful Hong Kong meeting for the credibility of the multilateral system. It was felt that significant advances had been made in recent months, but that there was still much to be accomplished in the short period between now and December. While recognising the central importance of agriculture in the DDA, they also underlined that the DDA was a single undertaking and that negotiations in all areas, agriculture, non-agricultural market access, services and rules, needed to advance in an effective and ambitious manner. They called for flexibility on the part of both developed and developing countries. They also reiterated that development is and should remain at the heart of the negotiations, and welcomed the Aid for Trade initiative.

The Secretariat presented a revised paper on “Special and Differential Treatment: Status and Prospects of Doha Round Proposals”, which focused on the negotiations on special and differential treatment (SDT) outstanding from the Marrakech and Doha Ministerials and reviewed the evolution of SDT provisions in the GATT/WTO system. It also analysed current proposals and suggested ways of advancing the negotiations. Delegates welcomed this paper and considered that it provided solid analysis and creative and valuable food for thought. They underlined that flexibility would continue to be necessary to allow developing countries to make the most of the multilateral trading system. It was agreed that this issue would again be brought to the attention of the Committee at its next meeting.

The Secretariat also provided an oral report on an OECD Global Forum on Trade on “Special and Differential Treatment: Thinking Outside the Box” which was held in Barbados in June 2005, with support from the World Bank and the Organization of American States (OAS). The proceedings of the event were distributed. Delegates welcomed the organisation of this event, which they found to be a useful forum for discussion and exchange among a variety of participants.

The Trade Committee will hold its next meeting on 9-10 March 2006.