WTO Reporter | October 25, 2001 | By Daniel Pruzin
GENEVA--The chairman of the World Trade Organization's General Council indicated Oct. 24 that he would propose an "opt-out" approach in regard to demands from the European Union, Japan, and others to include investment and competition policy on the agenda of a new trade round.
Hong Kong's top official in Geneva, Stuart Harbinson, told an informal meeting of WTO ambassadors that he would issue a proposal calling for two years of study on the issues that should be tackled in the investment and competition and policy talks, with members then free to decide whether to take part in the subsequent negotiations.
The proposal is expected to be included in a revised draft ministerial declaration that Harbinson plans to circulate to WTO members Oct. 26. The declaration sets out a "future work program" for the WTO (in effect a trade round), which will be put forward to trade ministers for approval at the organization's fourth ministerial conference in Doha, Qatar, Nov. 9-13.
Opt Out Plan Like One EU Previously Mooted
The "opt-out" proposal is identical to the approach first mooted by the EU back in December, when its initial proposal for WTO talks on investment and competition were met with strong opposition, particularly among developing countries. The EU said then that talks on investment and competition rules should be included in the new round but that members would have the choice to opt out of the talks as well as any final agreements in these sectors.
Harbinson read out his proposal to WTO ambassadors, which states that in "the period until the Fifth ministerial Conference, work shall focus on the elaboration of basic principles and core elements to be included in the framework" of the investment and competition policy negotiations. At the fifth ministerial due to take place before the end of 2003, WTO members "will be invited to notify their intention to take part in negotiations of rules and obligations and commitments under the multilateral framework."
The proposal adds that participating countries "accepting the results of the negotiations shall apply them on a most-favored-nation basis to all members of the WTO."
Trade officials attending the informal meeting said the United States indicated support for the Harbinson proposal. Washington has been lukewarm to the idea of initiating WTO talks on investment and competition but has said it is prepared to take part in negotiations. U.S. Deputy Trade Representative Peter Allgeier declared last June that in order to achieve the goal of a balanced round "it does seem to us that, in some way, it is necessary to address the issues of investment and competition policy."
Copyright c 2001 by The Bureau of National Affairs, Inc., Washington D.C.WTO Reporter:
