WORLD TRADE
ORGANIZATIONWT/L/558
23 December 2003
(03-6752)
Original:  English
REPORT OF THE 7TH ACP MINISTERS OF TRADE TO THE
78TH SESSION OF THE ACP COUNCIL OF MINISTERS
Brussels, 27-28 November 2003
Communication from Botswana
The following communication, dated 1 December 2003, is being circulated at the request of
the Delegation of Botswana.
_______________
At the request of the ACP Group of States, we have the honour to transmit herewith, for
circulation to and the attention of WTO Members, the attached Report on the 7th Meeting of the ACP
Ministers of Trade, which was endorsed by the 78th Session of the ACP Council of Ministers, which
was held in Brussels, 27-28 November 2003.
_______________
REPORT OF THE 7TH ACP MINISTERS OF TRADE TO THE
78TH SESSION OF THE ACP COUNCIL OF MINISTERS
Pursuant to Decision No. 3/03 of the Special Se ssion of the ACP Council of Ministers held on
1 October 2003, the ACP Ministers of Trade met in Brussels on 26 November 2003 to consider a
strategy for advancing the interests of the ACP Group in the WTO negotiations under the Doha Work
Programme.  They received a report from the Joint Committee of Brussels and Geneva ACP
Ambassadors which met on 24 and 25 November 2003 in Brussels.∗
The Ministers noted that despite numerous efforts which had been made within and outside
Geneva with the objective of reactivating the ne gotiations under the Doha Work Programme, and an
indication of willingness by most Members to re-engage and get the negotiations back on track, there
had not been any clear signals on how to restart the stalled negotiations.  The major players remain
reticent and non-committal.  The Ministers felt that this was a worrisome situation in view of theforthcoming meeting of the General Council at Senior Officials level.  They also noted that the
Chairman of the General Council and the Director-General of the WTO had, as mandated by the
Ministerial Statement adopted by the Cancun Ministerial Conference, initiated consultations in
preparation for the General Council meeting at Senior Officials level. In this regard, it was decided to
                                                     
∗ Reproduced in Annex I.WT/L/558
Page 2
focus on the following four issues: agriculture, cotton, non-agricultural market access and Singapore
issues.
As a result of their discussions, the ACP Ministers of Trade:
A. General Principles1. Reaffirmed the importance of a more balanced and equitable multilateral trading system
underpinned by transparency and inclusiveness in the decision-making process.  In this regard, the
ACP Group must continue to participate actively and constructively in the post-Cancun process with a
view to ensuring the successful and timely conclusion of the negotiations under the Doha Work
Programme.
2. Affirmed their commitment to putting back on track the negotiations under the Doha Work
Programme on the basis of fullest recognition of and attention to the needs and interests of developingcountries in accordance with the Doha mandate.  They expressed concern that the deadline of
1 January 2005 may not be met given the slow pace of progress in the negotiations under the Doha
Work Programme.
3. Called on the WTO General Council to renew, as a matter of priority, negotiations or
consultations, as applicable, on key issues of interest to developing countries, such as special anddifferential treatment, implementation, special situation of LDCs, work programme for small
economies and the rules governing regional trade agreements.
4. Reiterated that their positions articulated in the ACP Declaration on the 5
th WTO Ministerial
Conference remain relevant and valid, and should co ntinue to form the basis for ACP participation in
the negotiations.  In this regard, they urged the ACP representatives in Geneva to actively put acrossthe ACP positions in view of the General Council meeting of next December.
B. Common Principles for Future Work
5. Recognized that negotiations are a dynamic process.  They therefore agreed to mandate the
ACP representatives in Geneva to adjust, where necessary, after adequate consultations, positionscontained in the Declaration.
6. Agreed that the ACP Group should continue to meet on a regular basis to share information
and exchange views on the developments on the Doha Work Programme, including in the informal
consultations being carried out by the Chairman of the General Council, which, regrettably, are not
always open to all delegations.  In this context, collaborating with institutions that could provide
technical support such as UNCTAD, the South Centre  and ÀITIC, among others, will be vital.  In
addition, it will be necessary to avail adequate resources, including those under the all-ACP capacitybuilding programme on the multilateral trading system.
7. Agreed that the ACP Group should continue to engage in the Tripartite Alliance (ACP, LDC
and African Union) pursued in Cancun.  The Group should also build coalitions with other relevant
groups in seeking support for its positions.  In this regard, the ACP Group should continue to engage
the EU, and promote active dialogue with other Me mbers with a view to obtaining their support on
issues of importance for the ACP Group.
8. Urged WTO Members to fully implement the LDC Guidelines on Accession of December
2002 without seeking excessive and strenuous commitments from these countries or denying them
rights currently being enjoyed by founding LDC Members of the WTO.WT/L/558
Page 3
9. Agreed that the ACP Group should enhance its communication strategy in order to effectively
disseminate and lobby its positions.  In this regar d, liaison with the press, selected NGOs and other
public or private institutions should be pursued.
10. Called on WTO Members to urgently grant perm anent observer status in the WTO to the ACP
Group of States and ACP Inter-govern mental and Regional Organisations.
C. Issues under Consultations by the Chairman of the General Council
(a) Agriculture
11. Agreed that the conclusion of a framework for establishing modalities for further
commitments in the negotiations on agriculture could be a first step and that the task of developing
modalities could be left for a later stage.  In this regard, Ministers considered Rev. 2 of the draftCancun Ministerial text of 13 September 2003 (Derbez text) only as a starting point for negotiations
on agriculture while stressing as well the importance of other contributions made before and at
Cancun.
(b) Cotton
12. Reaffirmed that cotton continues to be a vital issue for the countries concerned and requires
an urgent solution.  In this regard, it should be treated as a stand-alone issue and not as part of the
overall negotiations on agriculture in the WTO.
13. Supported the request of the affected countries as contained in document WT/GC/W/516
dated 7 October 2003 (copy attached).
∗  They also supported the inclusion of cotton as an item on the
agenda of the General Council.
(c) Non-agricultural market access
14. Reaffirmed their position, as contained in paragraphs 29-32 of the ACP Declaration on the 5th
WTO Ministerial Conference.
15. Expressed concern at the possible erosion of preferences arising from further reductions in
tariffs.  They urged the maintenance of an adequate level of preferences necessary for the gradual and
smooth integration of the ACP States into the world economy.
16. Called for impact studies to be undertaken to assess the implications of further tariff
reductions.  In this regard, the ACP Group should seek the support of international institutions, likeUNCTAD and World Bank.
(d) Singapore Issues
17. Observed that contrary to views expressed in various fora, Singapore issues are not the key to
unlock the logjam in the negotiations.  They noted that the unbundling of the Singapore issues inCancun seemed to be irreversible.  They further noted that the following options seemed to be
emerging from the consultations of the Chairman of the General Council:
(i) launching negotiations on trade facilitation and transparency in government
procurement with a first phase devoted to agreeing on modalities for such
negotiations, and referring investment and competition back to the Working
                                                     
∗ Reproduced as Annex II.WT/L/558
Page 4
Groups for further clarification and excluding them from the Single
Undertaking. This referral would also acknowledge that the Working Group
would be the proper place to explore the "opt in/opt out" or the "plurilateral
approaches" or any other modalities for eventual negotiations (2+2
approach);
(ii) negotiations on trade facilitation and reference of the other three issues to
Working Groups (1+3 approach);
(iii) engaging immediately in negotiations in trade facilitation and transparency in
government procurement, but dropping investment and competition
completely from the Doha Work Programme (2+0 approach);
(iv) to proceed on the basis of the Derbez text;
(v) the EC has withdrawn the offer it made in Cancun to commence negotiations
on trade facilitation and transparency in government procurement and to
move the other issues out of the WTO agenda, and is currently exploring all
options.
18. Agreed that any further consideration of these issues should take into account the following:
(i) the need for agreement on modalities by explicit consensus;
(ii) provision of technical assistance, capacity building and clarification of the
implications of adopting multilateral frameworks on these issues;
(iii) commitment for provision of financial assistance to meet the costs of
compliance, adjustment and implementation of any eventual multilateral
frameworks on these issues;
(iv) the eventual outcome of any negotiations on those issues should not lead to
binding commitments that are subject to WTO dispute settlement procedures;
(v) consideration of any of these issues should be accompanied by progress on
development issues under the Doha Work Programme.
D. Bound Duty- and Quota-Free Market Access for LDCs
19. Urged the developed countries to provide bound duty-free and quota-free market access to all
imports from LDCs.  The product coverage should include agricultural products in their primary,
semi-processed and processed forms.
20. Reiterated that LDCs are exempt from reduction commitments, in accordance with Article
15.2 of the Agreement on Agriculture.
21. Reaffirmed their support to the proposal to exempt LDCs from making any reduction
commitment with respect to non-agricultural market  access (NAMA).  In this connection, they urged
the removal of the provisions in paragraph 8 of the framework for establishing modalities in NAMA
contained in the Derbez text, which calls upon LDCs to substantially increase their level of binding
commitments.WT/L/558
Page 5
E. Concerning the 15-16 December Senior Officials Meeting
22. Mandated Senior Officials to appoint an overall spokesperson and designate spokespersons
for the four areas that are expected to be the main  subjects for consideration at the meeting, namely
agriculture, cotton, non-agricultural market access and Singapore issues.  An additional spokespersoncould be identified to address other issues, especially development issues.
23. Agreed that the ACP Group should convene a meeting in Geneva at the Senior Officials level
on the eve of the General Council meeting of next December.
F. Reform of the WTO
24. Mandated the ACP Group in Geneva to examine the Geneva preparatory process for
Ministerial Conferences and the decision-making process in the WTO with a view to makingrecommendations on how the shortcomings could be improved, and report to their next meeting.
25. Noted that not all ACP States Members of the WTO have Missions in Geneva.  They
mandated the ACP Group in Geneva and Brussels to propose ways and means of increasing their
involvement in the negotiation process.  They noted that in view of the EPA negotiations, there could
be need for the Brussels and Geneva-based ACP Ambassadors to meet regularly.
Negotiations of EPAs:  Updates by Regions
Ministers received oral reports from regional coordinators on progress and/or preparations
being made on the negotiations of EPAs at the regional level.WT/L/558
Page 6
ANNEX I
PREPARATIONS FOR THE 7TH ACP MINISTERS OF TRADE MEETING
Recommendations of the Joint Committee of Brussels and Geneva ACP Ambassadors
on post-Cancun outlook
The Joint Committee of Brussels and Geneva ACP Ambassadors met in Brussels on
24 November 2003 to prepare the 7th meeting of ACP Ministers of Trade scheduled for
26 November 2003.  The Committee received a report from H.E. Mr. Charles Ntwaagae,
Ambassador of Botswana and Coordinator of the ACP Group in Geneva, on the post-Cancun
outlook, and considered the strategy for advancing the interests of the ACP Group in the WTO
negotiations under the Doha Work Programme.  A background document was circulated in thisregard (ACP/61/118/03 Rev. 1).
The Ambassadors noted that despite numerous efforts which had been made within and outside
Geneva with the objective of reactivating the negotiations under the Doha Work Programme, and an
indication of willingness by most Members to re-engage and get the negotiations back on track,there had not been any clear signals on how to restart the stalled negotiations.  The major players
remain reticent and non-committal.  The Ambassadors felt that this was a worrisome situation in
view of the forthcoming meeting of the General Council at Senior Officials level.  They also noted
that the Chairman of the General Council and the Director-General of the WTO had, as mandated
by the Ministerial Statement adopted by the Cancun Ministerial Conference, initiated consultationsfocused on the following four issues: agriculture, non-agricultural market access, Singapore issues
and cotton.
As a result of its discussions, the Joint Committee recommends as follows:
A. General Principles
1. The ACP Group should reaffirm the importance of a more balanced and equitable multilateral
trading system underpinned by transparency and inclusiveness in the decision-making process.  In this
regard, the ACP Group must continue to participate actively and constructively in the post-Cancun
process with a view to ensuring the successful and timely conclusion of the negotiations under the
Doha Work Programme.
2. The ACP Group should also reaffirm its commitment to putting back on track the negotiations
under the Doha Work Programme, while ensuring that subjects of interest to developing countries are
fully addressed.
3. As a matter of priority, the ACP Group should require the WTO General Council to renew
consultations on key issues of interest to developing countries, such as special and differentialtreatment, implementation, work programme for LDCs, small economies and the rules governing
regional trade agreements.
4. The positions articulated in the ACP Declaration on the 5"' WTO Ministerial Conference
remain relevant and valid, and should continue to form the basis for ACP participation in the
negotiations.
B. Common Principles for Future Work
5. Recognising that negotiations are a dynamic process, Ministers may consider adopting a
mechanism that would facilitate response to this dynamic process which may include mandatingWT/L/558
Page 7
representatives in Geneva to refine the positions contained in the Declaration as may be necessary
after consultations with the Chairman of the ACP Ministers of Trade.
6. The ACP Group should continue to meet on a regular basis to share information and exchange
views on the developments on the Doha Work Programme, including in the informal consultations
being carried out by the Chairman of the General Council, which are not open to all delegations.  Inthis context, collaborating with  institutions that could provide technical support such as UNCTAD,
the South Centre and AITIC, among others, will be vital. In addition, it will be necessary to avail
adequate resources, including those under the all-ACP capacity building programme on the
multilateral trading system.
7. The ACP Group should continue to engage in the Tripartite Alliance (ACP, LDC and African
Union) pursued in Cancun.  The Group should also build coalitions with other relevant groups in
seeking support for its positions.  In this regar d, the ACP Group should continue to engage the EU,
and promote active dialogue with other Members with a view to obtaining their support on issues of
importance for the ACP Group.
8. The ACP Group should urge WTO Members to fully implement the LDC Guidelines on
Accession of December 2002 without seeking excessive and strenuous commitments from these
countries or denying them rights currently being enjoyed by other Members.
9. The ACP Group should enhance its communication strategy in order to effectively
disseminate and lobby its positions.  In this regar d, liaison with the press, selected NGOs and other
public or private institutions should be pursued.
10. The ACP Group should continue consultations, as a priority, with the WTO in order to gain
Permanent Observer Status for the ACP Group of States and ACP Intergovernmental and RegionalOrganizations.
C. Issues under Consultations by the Chairman of the General Council
(a) Agriculture
11. The ACP Group supports, as a first step, the conclusion of a framework for establishing
modalities for further commitments in the negoti ations on agriculture, while leaving the task of
developing modalities for a later stage.  However, the ACP Group should not accept the Rev. 2 of the
draft Cancun Ministerial text of 13 September 2003 (Derbez text) as the basis for negotiations on
agriculture.
12. The ACP notes the informal offer by the EU to include a special and differential treatment
component which was omitted in the Derbez text, incl uding flexibility for developing countries in the
three pillars.
(b) Non-agricultural market access
13. The ACP Group's position, as reflected in the ACP Declaration on the 5"' WTO Ministerial
Conference, is still valid.
14. The ACP Group continues to express concern at the possible erosion of preferences arising
from further reductions in tariffs.
15. The ACP Group should continue to call for impact studies to be undertaken to assess the
implications of further tariff reductions.WT/L/558
Page 8
(c) Singapore Issues
16. Contrary to views expressed in various fora, Singapore issues were not the cause of the failure
of the Cancun Ministerial Conference nor are they the key to unlock the logjam in the negotiations.
Therefore, Ministers may wish to reaffirm their position on the Singapore issues, as contained in theACP Declaration on the 5
th WTO Ministerial Conference.  Ministers may also wish to note that:
(i) the unbundling of the Singapore issues in Cancun seems to be irreversible;
(ii) a proposal has been made for launching negotiations on trade facilitation and
transparency in government procurement, with a first phase devoted to
agreeing on modalities for such negotiations, while referring investment and
competition to the respective Working Groups for further clarification and for
exploring the "opt in/opt out" or the "plurilateral approaches"or any othermodalities for eventual negotiations (2+2 approach);
(iii) another proposal is to launch negotiations on trade facilitation and to refer the
other 3 issues to the respective Working Groups for further clarification (1+3
approach);
(iv) yet another proposal is to engage immediately in negotiations in trade
facilitation and transparency in government procurement, but dropping
investment and competition completely from the Doha Work Programme
(2+0 approach);
(v) the EC has withdrawn the offer it made in Cancun to commence negotiations
on trade facilitation and to move the other issues out of the WTO agenda, andis currently exploring all options.
17. Further consideration of these issues should take into account the following:
(i) the need for agreement on modalities by explicit consensus;
(ii) provision of technical assistance and capacity building for clarification of the
implications of adopting multilateral frameworks on these issues;
(iii) the eventual outcome of any negotiations on those issues should not lead to
binding commitments that are subject to WTO dispute settlement procedures;
(iv) consideration of any of these issues should be preceded by agreement on
development issues under the Doha Work Programme.
(d) Cotton
18. Cotton continues to be a pressing issue in respect of which an urgent solution is required.  In
this regard, it should be treated as a stand-alone issue and not as part of the WTO negotiations on
agriculture.
19. The ACP Group supports the request of the affected countries as contained in document
WT/GC/W/516 dated 7 October 2003 (copy attached).
∗
                                                     
∗ Reproduced as Annex II.WT/L/558
Page 9
D. Concerning the 15-16 December Senior Officials Meeting
20. The ACP Group should appoint an overall spokesperson and designate spokespersons for the
four areas that are expected to be the main su bjects for consideration at the meeting, namely
agriculture, non-agricultural market access, Singapore issues and cotton.  An additional spokespersoncould be identified to address other issues, especially development issues.
21. In the event that the December meeting is a substantive one, the ACP Group should consider
convening a meeting in Geneva at the Senior Officials level on the eve.  If need be, they could also
meet and consult periodically during the General Council.
E. Reform of the WTO
22. Ministers may wish to consider mandating the ACP Group in Geneva to examine the Geneva
preparatory process for Ministerial Conferences and the decision-making process in the WTO with a
view to making recommendations on how the shortcomings could be improved, and report to the next
meeting of ACP Ministers of Trade.
23. Since not all ACP States Members of the WTO have Missions in Geneva, Ministers may wish
to consider mandating the ACP Group in Geneva and Brussels to propose ways and means ofincreasing their involvement in the negotiation proces s.  In this regard and in view of the EPA
negotiations, there is need to hold regular meetings of the Brussels and Geneva-based ACP
Ambassadors.WT/L/558
Page 10
ANNEX II
POVERTY REDUCTION:  SECTORAL INITIATIVE ON COTTON
Wording of Paragraph 27 of the Revised Draft Cancún Ministerial Text
Communication from Benin
The following communication, dated 26 September 2003, has been received by the Director-
General from the Permanent Mission of Benin.
_______________
In the course of the 5th Ministerial Conference of the World Trade Organization (WTO), held
in Cancún (Mexico) from 10 to 14 September 2003, the delegations of the four countries that co-sponsored the sectoral initiative on cotton and several other delegations pointed out that the wording
of paragraph 27 of the revised Draft Ministerial Text far from reflected the proposed modalities
submitted to the Ministerial Conference for adoption in Draft Decision WT/GC/W/511 of
22 August 2003.
Indeed, the proposed formulation does not offer any basis for finding appropriate solutions to
the problems facing the West and Central African least-developed countries (LDCs) affected by the
subsidies granted to the production and export of cotton.
On the basis of the general observations and remarks concerning paragraph 27 of the Draft
Ministerial Text (JOB(03)/150/Rev.2 of 13 September 2003) made during the meeting of Heads of
Delegation held on 13 September 2003 in Cancún, the co-sponsors of the sectoral initiative on cotton
prepared a new text for paragraph 27 worded as follows:
Quote:
"We recognize the importance of cotton for the development of a number of developing
countries and the need for urgent action to address distortions related to the international trade of this
product.  To that end, we take note of the proposal submitted by Benin, Burkina Faso, Chad and Mali
entitled 'Poverty Reduction:  Sectoral Initiative in Favour of Cotton' and agree to take, within three
months, specific measures concerning cotton.  These specific measures include the complete
elimination of export subsidies over a period of three years, and the elimination of production-relateddomestic support over a period of four years, in each case as from 1 January 2005.
Furthermore, we decide to set up a transitional cotton sector support fund in favour of LDC
cotton producers and net exporters, and mandate the WTO Director-General to create a working group
to draw up practical modalities for supplying and implementing this fund.  The fund shall remain in
place until subsidies relating to the production and export of cotton have been completely eliminated."
End of quote
I would be grateful if you would circulate this text to WTO Members and include it for
examination in the forthcoming meetings of the Special Session of the Committee on Agriculture, of
the Trade Negotiations Committee and of the General Council.
__________