135th 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 135th Session on 29-30 October 2002 in Paris ( agenda of the 135th Session of the Trade Committee).

The morning of the first day of the meeting was devoted to a comprehensive discussion of the various deadlines laid out in the Doha Development Agenda (DDA). Delegates were asked to respond to a set of questions concerning how best to meet these deadlines, and Observer countries to the Trade Committee were invited in particular to express their views. All Members and Observers who spoke reiterated their commitment to meeting all of the Doha deadlines. While some areas were highlighted, particularly by Observer countries, as being crucial to both a positive outcome of negotiations and the characterisation of the DDA as a true "development round" - notably, agriculture, special and differential treatment, implementation, and TRIPS and public health- it was understood that progress needed to be made in all areas of negotiation under the single undertaking of the DDA. Attention was drawn to the importance of meeting the earliest deadlines in order to pave the way for meeting subsequent commitments. This was seen as a necessary condition for a positive setting for the 5th WTO Ministerial in Cancun. In this regard, several Delegations expressed concern at the uneven progress in different areas of the DDA. It was underlined that positive synergies between different areas were needed in order to move forward; progress on the crucial areas mentioned above, along with progress on rules, the Singapore issues, and environment, among others, were cited in this context. Concerning the use of mini-ministerials, bringing together different groupings of countries, and regional high level meetings to advance on issues in the DDA, these were thought to be a useful complement, but not a substitute, to the process taking place within the WTO. Capital-based involvement was also considered to be important in this context. There was a call for collective leadership and a focus on substance, rather than procedural debates, in ensuring the success of the DDA. The Chair recalled that trade alone is not a panacea; other supporting policies are also essential. The OECD was seen as making an important contribution to this process, by providing a setting for informal discussions and brainstorming, as well as by continuing analytical work that could help inform the development of negotiating positions.

The afternoon of the first day of the meeting was devoted to a consultation between the Trade Committee and Russia, whose Delegation was headed by Maxim Medvedkov, Deputy Minister for Economic Development and Trade and Russia's WTO Chief Negotiator. Delegates to the Trade Committee and Mr. Medvedkov both welcomed these regular consultations as a useful opportunity for a frank, informal and interactive discussion on various areas of mutual interest. Mr. Medvedkov briefly presented recent developments in trade and trade policy in Russia, pointing to the increasing role of international trade in the Russian economy (and in particular trade with OECD countries) and the corresponding increased vulnerability of the Russian economy to external shocks. An exchange of views took place on the state of play in Russia's accession to the WTO. In this context, Mr. Medvedkov highlighted Russia's efforts to make its trade legislation compatible with the WTO. While there has been significant progress in negotiations in many areas of trade in goods, OECD Members felt that more progress still needs to be made in the area of trade in services. In addition, agreement has yet to be reached in negotiations in the agricultural and energy sectors. Mr. Medvedkov expressed Russia's appreciation for the Trade Committee's work, which has been useful in helping the Russian government organise trade reforms. He presented several suggestions for future co-operation between Russia and the OECD.

Trade Committee Delegates also discussed an OECD report on the relationship between regional trade agreements (RTAs) and the multilateral trading system. The study consolidates papers comparing rule-making provisions in RTAs with those in the WTO in respect of ten issue areas (services, labour mobility, investment, competition policy, trade facilitation, government procurement, intellectual property rights, contingency protection, environment and rules of origin). It also contains an overview which explains the context and methodology of the work and seeks to draw some cross-cutting conclusions. Delegates welcomed this consolidated report as one of the few comprehensive studies on this topic, praising it for its objective analysis and as a timely and useful contribution to deliberations in Geneva. They strongly supported its timely diffusion to a wide audience and expressed their interest in being informed of reactions the Secretariat may receive to this report.

Delegates discussed the organisation of outreach events in 2003. The importance of pursuing dialogue with non-Members was reiterated. Strong participation from OECD Members, particularly from capitals and Geneva, was also considered critical for the success of such events. For 2003, events are currently foreseen in the areas of trade and competition and trade and investment, resources permitting, and support was expressed for a Global Forum on Trade dealing with Market Access. Delegates discussed their preferences concerning the venues and timing for these events (before or after the 5th WTO Ministerial), as well as preferred topics for possible further events. The importance of ensuring co-ordination and synergies with other international trade events (e.g. those organised by the WTO, UNCTAD) was highlighted.

Delegates had the opportunity to assess the Trade Committee fourth annual informal consultation with civil society organisations (CSOs) that was held on 28 October. Delegates welcomed the consultation as an opportunity for constructive dialogue between the Trade Committee and CSOs, and among CSOs themselves. They appreciated the opportunity to address a broad set of issues, grouped thematically, as an indication of the complexity of the issues discussed within the WTO. Several Delegates were struck by the misunderstandings that persist relative to negotiations under the DDA. They agreed that this pointed to the need to continue dialogue and information exchange on these topics. Delegates agreed to continue the process of informal consultation with CSOs on a regular basis.

In response to the invitation made to Delegations to share information and discuss recent developments in policies that may significantly affect trade relations or the functioning of the multilateral trading system, the European Commission and Chile presented their recently concluded EU-Chile Association agreement, (see http://europa.eu.int/comm/trade/bilateral/chl.htm). Delegates were also informed of a free trade agreement recently concluded between Korea and Chile. Finally, the Canadian Delegation informed the Trade Committee of efforts to create a new instrument in Canada for cultural diversity.

The Trade Committee will hold its next meeting on 10-11 March 2003.