WORLD TRADE
ORGANIZATIONWT/GC/W/412
6 October 2000
(00-4109)
General Council Original:  English
IMPROVING THE FUNCTIONING OF THE WTO SYSTEM
Discussion Paper from the European Community to the WTO General Council
The following communication, dated 2 October 2000, has been received from the Permanent
Delegation of the European Commission.
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Seven years after the conclusion of the Uruguay Round, it appears appropriate to consider
possible improvements in the functioning of the WTO system. The EC is of the view that, in overall
terms, the WTO is performing its mandate in a generally satisfactory manner. There are, however,
valid reasons to seriously consider institutional improvements. The challenges raised by the process ofglobalisation make it imperative for all institutions to adapt their functioning to the growing
complexity of the issues falling under their mandate. At the same time, as the WTO comes closer to
becoming a universal organisation, there is a need to further consider how to ensure both effectiveness
and transparency in a manner which fosters participation by all WTO members. Moreover, all these
changes are taking place in political context in which trade policy issues are increasingly a matter of
public interest.
Following the Seattle Ministerial, particular attention has been given to the issue of how to
ensure internal transparency and effective participation of all Members. The Chairman of the General
Council has been conducting informal consultations on these issues and a large number of delegations
have presented written and oral contributions. Discussions have shown that delegations share the view
that there is no need to envisage changes that would alter the basic character of the Organisation andits decision – making process. In particular, decisions should continue to be made by consensus, in
accordance with Article IX of the WTO agreement. At the same time, there is a clear interest in
seeking a number of improvements in WTO functioning, in order to achieve enhanced effectiveness,
transparency and participation. Broadly speaking, many of the suggestions made can be classified
under three headings:
(a) Measures to improve decision-making, including issues relating to the organisation
and functions of informal consultations.
(b) Measures to foster the flow of information and participation by all members.(c) Measures to improve Ministerial meetings and the General Council.At the same time, it is worth recalling paragraph 4 of the 1998 Ministerial Declaration which
said: « We recognise the importance of enhancing public understanding of the benefits of the
multilateral trading system in order to build support for it and agree to work towards this end. In this
context, we will consider how to improve the transp arency of WTO operations ». So far, however, noWT/GC/W/412
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action has been taken in the General Council to implement this mandate. The EC presented a
communication on the issue of external transparency in July 1998 (…) and has presented additional
ideas in informal submissions to the General Counc il. We consider that further progress on external
transparency would reinforce the role of WTO as an institution without, in any way, affecting its
intergovernmental nature.
This communication presents a number of ideas on how to improve the functioning of the
WTO both as regards internal transparency and effective participation and on external transparency.
In our view, there are important synergies between both aspects of WTO functioning and both of them
require appropriate consideration in the General Council. We wish to stress, however, that each
individual suggestion in this paper should be considered on its own merits. Indeed, we think it is
essential that issues relating to the institutional functioning of the WTO be discussed as “systemicquestions” which require open consideration by WTO members, outside any possible negotiating
context. It is in this spirit that, apart from presenting a number of suggestions and proposals, we have
also included in this paper certain ideas which, in our view, deserve further consideration and study
by WTO members. We have also tried, as much as possible, to draw on a number of ideas presented
by other WTO members in the context of our informal consultations.
1. Measures to improve decision-making including  issues relating to the organisation and
functioning of informal consultations.
As already noted, the basic procedures for decision-making, as established by Article IX of
the WTO agreement, appear to be sound in view of the impact of WTO decisions on the rights and
obligations of WTO members. However, there is a need to further reflect on the best consultation
procedures to foster consensus in a manner which is transparent and participatory while ensuring
effectiveness.
A large number of suggestions have been made on the organisation and functions of informal
consultations, which remain an essential instrument for fostering consensus. In this connection, the
EC sees merit in the proposal by the African group to develop guidelines for the conduct of such
consultations.
Obviously, such guidelines should remain flexible since they would need to be adapted to the
specific requirements of any individual consultation process. Drawing upon ideas presented by manyWTO members and on the July Statement by the Chairman of the General Council, we would suggest
that elements to be considered for such guidelines could include:
• The purpose of informal consultations should be to facilitate the process of building-up consensus
and not to replace decision-making in the competent WTO bodies.
• Without prejudice to initiatives undertaken by individual WTO members, informal consultations
may be initiated by the Chairman of a WTO body and/or the Director-General (or one of hisdeputies). Members should be advised of the intention to initiate such consultations.
• Participation in informal meetings should be broadly representative of the WTO membership at
different levels of development and reflect the breadth of substantive views on the issue being
discussed. The Chairman of the WTO body or the DG (DDGs) has particular responsibility toensure adequate representation in the meeting.
• The results of such informal consultations should be reported on a regular basis to the competent
body concerned. Further informal consultations should take into account the views expressed inWT/GC/W/412
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the open-ended meeting. Before an issue is brought for decision in the competent WTO body,
there should be sufficient time for all delegations to undertake consultations with capitals.
Apart from the issue of guidelines for informal consultations – on which we hope a consensus
can be rapidly reached – the EC is interested in further analysis of a number of other ideas that havebeen suggested to improve decision-making. In partic ular we would suggest further discussions of the
following:
• The feasibility of a Consultative Group:
A number of delegations have expressed interest in further discussing the possibility of
establishing a consultative group (formal or informal) broadly representative of the WTO
membership, but which could advise the Dire ctor-General and, where appropriate, present
recommendations to the General Council. A similar type of body (the CG 18) was in function between
1975 and 1988. A consultative group could contribute towards ensuring greater involvement of senior
level capital based officials in the management of the WTO and foster open discussion on broad
trends affecting the WTO System. Such a group would not, however, constitute an alternative to
informal processes aimed at facilitating consensus on individual subjects, as discussed above.
• Decisions on procedural matters:
Without prejudice to the need to maintain the overall principle of decision-making by
consensus, consideration could be given to simplified procedures in relation to certain types of
decision which do not affect the substantive rights  and obligations of WTO members. The Director-
General could be asked to present a typology of different kinds of WTO decisions with a view to
examine the opportunity of developing specific rules in respect to certain decisions.
• Role of the Director-General:
The Director-General does not have an expressly recognised right of initiative and normally
acts on the basis of mandates specifically given by the membership. While maintaining the nature of
the WTO as a member-driven organisation, there is a need to review the role of the Director-General
with a view to enhance his/her capacity to provide the members with independent, objective analysis
and advice. The EC would be interested in further discussions on this issue.
2. Measures to foster the flow of inform ation and participation by all members.
An important objective of any effort to improve WTO functioning should be to facilitate the
flow of information and effective participation by all WTO members and, in particular, those
developing countries that do not have resident representatives in Geneva or only maintain small
missions. The efforts by such countries to have a greater input in WTO processes deserve the full
support of other WTO members and the WTO Secretariat.
We welcome the efforts undertaken by the Director-General – and individual WTO members
– to involve non-resident representatives more fully in the work of the Organisation while avoiding
duplication of initiatives. The establishment of an ACP/liaison office in Geneva should contribute
towards this goal. Enhanced transparency in informal consultation processes would contributetowards more effective participation. There is, however, a need for targeted measures to facilitate
participation by non-resident representatives and small developing country delegations. The
Secretariat should develop particular efforts to facilitate the flow of information towards such
countries. Moreover, their needs should be given particular priority in WTO technical assistance.WT/GC/W/412
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Effective participation by all members can also be promoted through measures to improve the
management of WTO meetings. In this connection, we see much merit in the proposal by the African
group to rationalise the scheduling, number and duration of meetings with a view, where appropriate,
to having longer and less frequent meetings and to ensure better thematic co-ordination in establishing
the calendar of meetings.
While some progress in the short term can be achieved through improved working methods
and management of meetings, there is also merit in initiating a reflection on whether the current WTO
committee structure could be further streamlined. For instance, consideration could be given to the
possibility of merging a number of existing committees along functional lines rather than a situation
in which each individual WTO agreement has a sepa rate committee for its administration. It should be
noted, however, that such changes would imply am ending existing WTO agreements. The Director-
General could also further study the scope for further streamlining of notification requirements, while
maintaining overall transparency.
3. Measures to improve Ministerial meetings and the General Council.
As regards improvements in the preparation and organisation of WTO Ministerials, a number
of measures could be taken which, to a large extent, correspond to prior GATT/WTO practice:
I. Both in the preparatory process and in the Ministerial itself, there has to be a proper
combination of informal processes and meetings open to all WTO members.
II. There has to be a clear delineation between the role of the host country and that of the
Director-General. The role of the host country should be limited to chairing the plenary
session, while informal processes should be handled by the DG, assisted by his DDGs.
III. The structure for negotiations must be set in advance of the Ministerial meeting and planning
should imply that all necessary time is given to the actual negotiation of texts. Chairs of
working Groups should also be identified su fficiently in advance to allow for proper
preparation. Where appropriate, sessions at senior official level should be held before the
Ministerial starts.
Apart from the issue of improved preparation of Ministerial meetings, there is merit in
considering the periodicity and functions of WTO Ministerials. Most international organisations –
such as the Bretton Woods institutions or UN specialised agencies – hold yearly meetings at
ministerial level. Political involvement and steering of the organisation could be enhanced if WTO
Ministerial Conferences were also held on a yearly basis.  Apart from decision making, Ministerial
Conferences would also be expected to discuss a report on the activities of the WTO. This reportcould also highlight significant policy issues affecting the trading system
Apart from improvements in WTO Ministerials, consideration could be given to means of
enhancing the role of the General Council. The General Council should have overall responsibility for
the coherent management and to supervise the activity of subsidiary bodies. Periodic meetings withthe chairs of the main WTO bodies would contribute towards this goal. Moreover, the capacity of the
Council to exercise an oversight role would be enhanced through a streamlining of the WTO
Committee structure and improved procedures for decision making, as discussed previously in this
paper.
4. Enhanced external transparency.
In 1998, the EC presented proposals on derestriction of WTO documents and called for a
review of existing WTO guidelines in order to strengthen procedures for consultation with NGOs.WT/GC/W/412
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Since then, there has been considerable discussion of such issues in the General Council. The primary
responsibility for dialogue with civil society falls at the level of each WTO member. However,
enhanced external transparency in WTO operations has an important facilitating role.
Building upon the proposals presented so far, the EC supports the following steps to enhance
external transparency:
• Ensure immediate derestriction of most WTO documents. With a few limited exceptions, it
should be possible to provide for the immediate derestriction of working documents, Secretariatbackground papers, meeting minutes and agendas and panel reports once translated into all
3 official languages. The Secretariat could also be encouraged to increase further the user-
friendliness of the WTO web-site on which the derestricted documents are published.
• Enhance contacts and exchange of information between the WTO Secretariat and NGOs, along
the lines of existing initiatives.
• Ensure a more regular organisation of symposia and other forms of informal dialogue with civil
society on a broader range of WTO issues.
• On a voluntary basis, meetings of the TPRM could be open to parliamentarians and NGOs of the
country under review. This would enhance public interest in the TPRM exercise and would
provide an opportunity for stakeholders to be better aware of other countries concerns with the
trade policies followed by the country under review.
• Hold an annual open meeting of the WTO. Such a meeting could be held at either ministerial or
senior official level. Apart from the discussion of a report on WTO activities, a symposium could
be organised for dialogue with civil society as well as discussion panels including theparticipation of the heads of other international organisations.
• Hold, on a yearly basis and back to back with the annual open WTO meeting, a meeting of
parliamentarians of WTO members. Greater involvement of national parliaments in WTOactivities would play an important role in fostering greater public understanding and support for
the multilateral trading system. The establishment of a WTO Parliamentary ConsultativeAssembly would provide a valuable forum for in terparliamentary dialogue on the main subjects
discussed in the WTO and should therefore be further pursued.
Apart from the measures above, a review could be initiated of existing WTO guidelines in
order to strengthen procedures for consultations with NGOs. In this connection, consideration could
be given to the possibility of establishing a formal accreditation system for NGOs. In this connection
different systems of accreditation could be discussed, taking into account the experience of other
international organisations.
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