140th 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 140th Session on 18 to 20th October 2004 in Paris.  The meeting on October 19th was devoted to a one-day informal consultation between the Trade Committee and civil society organisations.

The Trade Committee devoted the first portion of its meeting to discussing the Framework for multi-lateral trade negotiations on the Doha Development Agenda agreed in July among WTO Members in Geneva.  (The text of the “July package” can be found at: http://www.wto.org/english/tratop_e/dda_e/draft_text_gc_dg_31july04_e.htm).  Delegates agreed that the Framework provides a positive thrust to WTO negotiations.  The Framework creates momentum for continuing negotiations in a wide variety of areas:  agriculture, market access in manufacturing goods, trade facilitation, trade in services, and issues of particular interest to developing countries.  Delegates also agreed that much needs to be done in all of these trade areas in a way that is acceptable to all WTO members in order to prepare the ground for the Ministerial-level meeting in Hong Kong in December 2005.

Discussions continued on the OECD horizontal project on Trade and Structural Adjustment.  This project aims to identify the requirements for successful structural adjustment via the reallocation of resources to more efficient uses – in response to shifts in comparative advantage, technological change or shifting consumer preferences – while limiting adjustment costs for individuals, communities and society as a whole.  Existing macro-economic frameworks and the structures of labour markets are analysed as complements to a liberal trade policy.  Identifying ways of achieving a balance of efficiency and equity, or minimizing adjustment costs on individuals and communities, remains a key objective of this analytical work.  The study was generally welcomed by Trade Committee Delegates, many of whom provided detailed technical comments in addition to the general discussion.  This work will undergo further revisions and consultations with the aim to complete it by the annual meeting of the OECD Council at Ministerial level in the spring of 2005.  One of the major outreach events during which structural adjustment issues will be discussed is a Global Forum on Trade, to take place in Bangkok on November 3-4.

Delegations were provided with the opportunity to comment on on-going and up-coming analytical work in the Trade Directorate and events organized by the Trade Committee and its subsidiary bodies.

The next meeting of the OECD Trade Committee will be 9-10 March 2005 at the OECD Headquarters in Paris.