WORLD TRADE  
ORGANIZATION  TN/RL/9 
25 June 2004 
 (04-2740) 
Negotiating Group on Rules  
  
 
NEGOTIATING GROUP ON RULES 
 
Report by the Chairman to the 
 
Trade Negotiations Committee  
 
 
I. STATUS OF WORK 
1. Although the work of the Negotiating Group on Ru les (the "Group") was for a time delayed 
due to the general situation in the DDA negotiati ons following the Ministerial Conference in Cancún, 
the Group has since the spring of 2004 resumed its work in a vigorous and intensive manner.     
2. In the area of Anti-Dumping ("AD") and Subs idies and Countervailing Measures ("SCM") 
including fisheries subsidies, the Group held its first post-Cancún mee ting in March 2004.  A 
significant aspect of that meeting, which I will discuss in more detail below, was the decision to begin 
an informal process where elaborated proposals submitted to the Group as JOB documents would be 
discussed and analyzed in depth in informal meetings .  The Group has held two further meetings this 
spring and summer, on 26-28 April and 7-8 June, and these meetings have included such an informal 
process in addition to the formal meetings.  A furt her meeting on AD/SCM issues is scheduled to take 
place on 12-13 July. 
3. The Group held formal meetings devoted to the area of Regional Trade Agreements (RTAs) 
on 11 March and 5 May 2004.  In addition, the Group had open-ended informal discussions on RTAs' transparency and systemic issues.  The next meeting is scheduled for on 29 June.      
4. To date, nearly 150 formal submissions ha ve been received from Participants.  These 
submissions have been circulated in the TN/RL/ W/... series.  In addition, the Group has to date 
received and considered twelve informal submissi ons containing a wide range of proposals for the 
informal process discussed above.        
II. OUTSTANDING ISSUES 
5. Other than the issue of observers – a question with horizontal implications – there are no 
outstanding procedural issues in the Group at this time.   
III. FUTURE WORK 
A. 
ANTI -DUMPING , AND SUBSIDIES AND COUNTERVAILING MEASURES INCLUDING FISHERIES 
SUBSIDIES  
6. Progress in the Group should be assessed in light of its mandate, which is to identify 
provisions in the AD and SCM Agreements that Par ticipants wish to clarify and improve and to 
negotiate any appropriate clarifica tions and improvements to those provisions.  In my view, work in 
this direction has advanced significantly in the p ast few months.  Until Cancún, the Group met almost 
exclusively in formal mode and focused on identifyi ng issues that Participants wanted to pursue.  TN/RL/9 
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 Since the March 2004 meeting, by contrast, the bulk of the Group's work has been conducted 
informally and has involved the in-depth examina tion of detailed elaborated proposals submitted by 
Participants.  In particular, and without prejudice to  their rights to submit additional formal proposals, 
Participants are now engaged in presenting elaborat ed proposals in the form of JOB documents in 
respect of issues that have been identified for ne gotiation, setting forth in detail the precise changes 
that they seek to the existing rules. 
7. The shift towards informal work represents  not only a change in process but a major 
qualitative shift in the nature of the discussions.  While the formal discussions were characterized by 
issue identification and a relatively pro forma  exchange of views, the informal process has involved a 
lively and frank debate over the merits of hi ghly detailed proposals for clarifications and 
improvements to the AD and SCM Agreements.  Participants are now seeking to come to grips with 
the details of the proposals in question and with their practical implications.  It is my clear sense that 
Participants are now moving beyond formal positions  and are seriously exploring the feasibility and 
desirability of the proposals on the table with a view to finding solutions. 
8. Substantively, the discussions to date have reveal ed that there is considerable interest in the 
clarification and improvement of various aspects of  the AD and SCM Agreements, with a particular 
emphasis on trade remedy questions.  Proposals have been  tabled on a wide range of issues.  It is clear 
that many of these proposals are controversial, and th at even where there is a broadly-held view that 
an issue should be addressed there are often a wide range of options for addressing it.  That said, it is 
my perception that Participants are seriously seeking so lutions to the issues that have been identified.  
This is true also in the area of fisheries subsidies,  where there has been a sh ift in the debate from the 
issue of whether  there is a need for specific disciplin es in the sector to the question of the nature and 
extent of any such disciplines. 
9. While developments in the Group are encouragi ng, it is clear that a great deal of work 
remains to be done.  The serious examination of  proposals in which the Group is now engaged is 
highly technical and time-c onsuming, and I believe that the Group must accelerate its work.  In order 
to facilitate planning and  encourage the participatio n of capital-based experts, I have proposed to the 
Group an intensive programme of meetings of si gnificant duration between summer break and the end 
of the year.  As discussions at meetings of the Group are becoming increasingly serious and concrete, 
I strongly encourage all delegations with an inte rest in Rules issues to ensure attendance by 
appropriate experts and to participate actively.  In th e long-run, of course, the intensity of the work in 
our Group will depend upon the pace of progr ess in other areas of the negotiations.   
B. 
REGIONAL TRADE AGREEMENTS  
10. The Group has reinstituted its pre-Cancún practice of holding open-ended informal 
discussions on RTAs' transparency and systemic i ssues.  Regarding transparency, Participants 
continue to express a firm commitment to improvi ng procedures so as to enhance RTAs' transparency 
and to revitalizing the role of the Committee on Regional Trade Agreements (CRTA).  Progress has 
been registered on some elements of an approach already discussed before Cancún, in particular on 
the format of RTA factual presentations, should these be  entrusted to the Secretariat.  I am currently 
consulting with participants on how to advance furthe r on this matter and to tackle the more difficult 
issues, including the scope of RTAs to be covered by any new procedures and questions related to the 
consistency assessment role entrusted to the CRTA. 
11. The Group will engage, as from the June meeting,  on in-depth discussions on systemic issues, 
according to the roadmap I proposed , to sequence the consideration of  priority issues identified by 
Participants.  The June meeting will be devoted to discussions on RTAs' "coverage" questions.  TN/RL/9 
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 12. The developmental aspects of RT As have been important to the Group's work, mainly in two 
areas: the place of RTAs notified under the Enabling Clause vis-à-vis  any improved RTA's 
transparency and review process resulting from curr ent negotiations; and the inclusion of special and 
differential treatment (S&D) for developing countri es in some WTO provisions relating to RTAs.  
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