RESTRICTED
WORLD TRADE WT/GC/M/18
19March 1997
ORGANIZATION(97-1125)
GENERAL COUNCIL
7February 1997
MINUTES OFMEETING
Held intheCentre William Rappard
on7February 1997
Chairman: Mr.W.Rossier (Switzerland)
Subjects discussed: Page
1. Observer status forinternational intergovernmental organizations 2
(a) International intergovernmental organizations having adhocobserver
status 2
(b) Requests forobserver status byother international intergovernmental
organizations 2
2. International Trade Centre UNCTAD/WTO 3
- Report oftheJoint Advisory Group 3
3. Conditions ofservice ofWTO staff 5
4. Committee onBalance-of-Payments Restrictions -Consultation withIndia 9
- Statement bytheCommittee Chairman 9
5. Ecuador -Commitments under theProtocol ofAccession 10
- Communication from theUnited States 10
6. Appointment ofofficers toWTO bodies 13
7. Follow-uptotheSingaporeMinisterialConference-WorkingGroupsontherelationship
between trade andinvestment, theinteraction between trade andcompetition, and
transparency ingovernment procurement practices 14
- Consultations onappointment ofchairpersons 14
8. Commemoration ofthefiftieth anniversary ofthemultilateral trading system 16
9. Offices oftheDeputy Directors-General 18
- Announcement bytheDirector-General 18
10. Scheduling ofmeetings ofWTO bodies 20
11. Election ofChairperson 20WT/GC/M/18
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1. Observer status forinternational intergovernmental organizations (WT/GC/W/51)
(a) International intergovernmental organizations having adhocobserver status
(b) Requests forobserver status byother international intergovernmental organizations
TheChairman recalled thatinaccordance withtheadhocarrangements forobserver status
forinternational intergovernmental organizations approved ataninformal meeting ofHeads of
Delegations inMarch 19951,anumber oforganizations --theUnited Nations, UNCTAD, IMF,
World Bank, FAO, WIPO andOECD --hadbeenattending meetings oftheGeneral Council regularly.
With regard totheIMFandtheWorld Bank, henoted thatthese organizations were given observer
status intheGeneral Council andother WTO bodies asprovided forintheirrespective Agreements
withtheWTO (WT/L/195). With regard totheother international intergovernmental organizations,
heproposed thefollowing: (a)thattheorganizations thathadadhocobserver status intheGeneral
Council, namely, theUnited Nations, UNCTAD, FAO, WIPO andOECD begranted observer status
immediately; (b)thattheChairman consult ontheinternational intergovernmental organizations whose
requests forobserver status hadnotyetbeenconsidered. Alistofthese organizations wasprovided
inSection IIofWT/GC/W/51. Since theInternational Grains Council andtheOffice International
delaVigneetduVinhadwithdrawntheirrequests,andsomeotherorganizationsmightalsosubsequently
doso,arevised document would becirculated later; and(c)thattheGeneral Council invite other WTO
bodies toproceed inasimilar waywithregard toobserver status forinternational intergovernmental
organizations.
Therepresentative ofJamaica proposed thatanyconsultations regarding observer status for
international organizations tobeundertaken bytheChairmen oftheGeneral Council andoftheother
WTO bodies begoverned byobjective andformally agreed criteria. Also, since theWTO wasitself
aMember-driven organization, similar organizations from amongst those requesting observer status
intheWTO should beidentified anddistinguished clearly from others. Hehoped, ifthere wasno
objection tohisproposal, thatonecould seecirculated shortly theguidelines fortheinformal
consultations.
TheChairman saidthatguidelines forobserver status forinternational intergovernmental
organizations intheWTO already existed, andhadbeen approved bytheGeneral Council on
18July1996. They werereproduced asAnnex 3oftheRules ofProcedure, contained indocument
WT/L/161.
Therepresentative oftheUnited States saidthattheChairman 'sproposal wasbroadly acceptable
tohisdelegation. Hedrew attention toparagraph 4oftheguidelines inWT/L/161, Annex 3,which
provided thatrequests forobserver status should beconsidered onacase-by casebasisbyeachWTO
body"taking intoaccount suchfactors as...reciprocity withrespect toaccess toproceedings, documents
andother aspects ofobservership ...."Clearly, theideabehind thisrulewasthatobservership should
beatwo-way street. Alsoimplied inthisrulewasthenotion thatonlythose organizations inwhich
theWTO desired observership rights should beconsidered forobserver status intheWTO. Whenever
anorganization sought WTO observer status, Members should askwhether thatwasanorganization
withactivities relevant totheWTO which theywould wanttheWTO toobserve. Iftheanswer were
yes,Members should ensure thattheWTO Secretariat obtained aguarantee ofreciprocal observer
rights inthatorganization before theyagreed toaccord itobservership rights intheWTO. Iftheanswer
were no,ontheother hand, theUnited States didnotbelieve thatMembers should givefavourable
consideration tothatorganization 'srequest forWTO observer status. Hisdelegation would bepursuing
thisissue further astheconsultations proposed bytheChairman continued.
1SeeWT/GC/M/3, item 3.WT/GC/M/18
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Therepresentative ofMorocco expressed support forthestatements byJamaica andtheUnited
States. Hebelieved there should bevalid andlogical reasons forgranting observer status toone
organization andnottoanother. Observer status requests from organizations should beconsidered
onacase-by-case basis, withfulltransparency, andinawaythatensured thatorganizations understood
whysome requests were granted andothers not.
TheGeneral Council tooknoteofthestatements andagreed totheChairman 'sproposal.
2. International Trade Centre UNCTAD/WTO
- Report oftheJoint Advisory Group (ITC/AG(XXIX)/157)
Mr.Forteza (Uruguay), Vice-Chairman oftheJoint Advisory Group (JAG), introduced the
report oftheGroup onitstwenty-ninth session (ITC/AG(XXIX)/157) onbehalf ofitsChairman,
Mr.Baldocci (Italy). TheJAGhadexamined thefollowing matters: (i)review oftheITC'stechnical
cooperation activities in1995, based onitsannual report; (ii)ITC'smission statement; (iii)ITC's
contribution totheUnited Nations Medium Term Planfor1998-2001; and(iv)thereport ofthe
Consultative Committee ontheGlobal Trust Fund.
Inhisopening statement totheGroup, theExecutive Director hadreported ontheITC'sefforts
during thepasttwoyears tosharpen itsvision; clarify itsmandate; intensify relations withitsparent
bodies, beneficiaries, partners anddonors; restructure theorganization; redefine divisional
responsibilities; reallocate resources; redeploy personnel andstreamline theorganization. TheGroup
hadvigorously reaffirmed therelevance andimportance oftheITC'stechnical cooperation activities
in1995whichwerejudgedpragmatic,result-orientedandrespondingtothecountries'needsandpotential
fortradepromotion andexport development. TheGroup hadwelcomed theITC'sinitiative todevelop
amission statement andhadexpressed fullsupport fortheformulation oftheITC'sstrategy, core
services, values andmodus operandi .Ithadalsonoted theITC'scontribution totheUnited Nations
Medium Term Planfor1998-2001. Recalling itsendorsement oftheproposal forsetting upaGlobal
Trust Fund atthetwenty-eighth session, theGroup hadexpressed itssatisfaction ontheestablishment
oftheGlobal Trust Fund andtheeffective functioning ofitsConsultative Committee.
Finally, onbehalf oftheJAG, heexpressed gratitude totheGovernments ofCanada, China,
Denmark, Finland, Germany, India, Japan, Netherlands, Norway, Sweden andSwitzerland, which
hadannounced confirmed orpossible voluntary contributions totheITCforitstechnical cooperation
programme.
Therepresentative ofEgypt saidhelooked forward togreater cooperation between theWTO,
UNCTAD andtheITCinfurthering theirtechnical cooperation activities fordeveloping countries,
andinparticular fortheAfrican region which comprised themajority oftheleast-developed countries.
Heexpressed gratitude tothegovernments thathadannounced voluntary trustfundcontributions to
theITC, andhoped thatthecreation ofthetrustfundwould notmean thatnormal contributions to
theITCforitsmuch-needed technical assistance activities would bereduced. Hepaidtribute tothe
Director-General andtheUNCTAD Secretary General fortheir joint efforts tofurther technical
cooperation fordeveloping countries inclose cooperation withtheITC. Heasked iftheExecutive
Director oftheITCcould inform Members ofhisplans regarding thefollow-up totheSingapore
Ministerial Declaration, which contained several points ofinterest todeveloping countries, andin
particular totheAfrican countries.
Therepresentative ofJamaica saidthatthecentral target oftheITC'stechnical assistance
activities should betostrengthen institutional capacity indeveloping countries suchthat,overtime,
fewer andfewer countries required thekindofassistance being offered through seminars andgeneralWT/GC/M/18
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discussion. Hewelcomed theideaof"measurable targets", referred toinparagraph 77ofthereport.
Thiswasanareathatshould beelaborated sothatonecould seewhattheITCachieved withitsresources
within aspecific timeframe.
Therepresentative ofIndiaexpressed satisfaction thattheITChadbeenabletoprovide valuable
inputs fortheUNCTAD IXmeeting in1996. TheUNCTAD Secretary General hadappropriately
acknowledged thiscontribution oftheITCinhisaddress totheJAGlastyear. Members oftheWTO
hadasimilar appreciation fortheroletheITChadplayed, andwasexpected toplay, inassisting
developing countries tobenefit fullyfrom theresults oftheUruguay Round, especially inproviding
technical expertise toenterprises andtothepublic andprivate sectors indeveloping countries. The
involvement oftheITCandUNCTAD inthedeliberations oftheCommittee onTrade andDevelopment
lastyearhadproved ofgreat benefit indrawing upconcrete plans ofaction relevant todeveloping
country WTO Members. Thespirit ofcooperation between theITCandtheWTO wassummed up
inthecommitment ofMinisters atSingapore toendorse therecommendations oftheCommittee on
Trade andDevelopment, especially astheserelated tothecompliance ofsignificant newcommitments,
bothsubstantive andprocedural, undertaken bydeveloping country Members attheendoftheUruguay
Round. Inthisconnection, Indialooked forward totheITC'svaluable contribution tothejointmeeting
tobeorganized bytheUNCTAD, ITCandWTO thisyeartoenhance thetrading opportunities of
least-developed countries.
Inorder tobeabletodeliver onthese expectations, theITChadtofindthemost efficient
structure andmethod toprovide itsexpertise andassistance. India hadnoted theattempts under way
intheITCtorestructure itself tomeetthechallenges facing itintheyears ahead. Asacountry that
hadenjoyed anexceptionally close relationship withtheITC,India wished itsuccess inthese efforts.
Further, because ofitsclose linkswiththeITC,India expressed thehopethattherestructuring ofthe
organization would takeplace without losing theinvaluable resources andexperience theITChad
gathered overtheyears. Gradual change often hadalonger-lasting impact thansudden andabrupt
change, especially inthecaseofinstitutions liketheITCwhich symbolized afinely tuned balance
between resources andexpectations. Thecontribution ofexperts fromdeveloping countries, including
India,hadenrichedtheITCandhelpeddevelopingcountriesimmenselyinthepast.Indiawasconcerned,
however, atthesharp decline inthenumbers intheITCstaffinrecent years, andwished urgent steps
tobetaken toredress thegrowing imbalance. Inview ofsome recent problems atthesenior staff
level, Indiawished tobekeptinformed ofalldevelopments thathadabearing ontheefficient functioning
oftheITC. India requested thatMembers continue tokeeptheactivities oftheITCunder regular
review, especially inviewofthemandate collectively endorsed attheSingapore Ministerial Conference.
AsregardstheGlobalTrustFund,Indiawasasignificantcontributortheretodespiteitslimitedresources.
Itwasconfident thatwiththeadditional resources ofthistrustfund, theITCwould continue toplay
itsunique roleinthedesign andimplementation oftailor-made programmes andprojects atthenational
andregional levels. Byplaying sucharoletheITCwould bestserve thepurpose forwhich itwas
established,andenabledevelopingcountriestoparticipatemeaningfullyinthemultilateraltradingsystem.
Therepresentative ofSingapore, speaking onbehalf oftheASEAN countries, saidhewished
tohaveinformation from theITContheratiooftechnical assistance expenditures totheallocation
ofresources foritsheadquarters. Also, hebelieved itwastimetoputtogether acomprehensive paper
outlining thetechnical assistance activities undertaken bytheUNCTAD, WTO andITC. Thiswould
enable anassessment ofthevalue andscope ofsuchactivities andtheneedtofundthem.
Mr.Belisle, Executive Director oftheITC,saidthat,post-Singapore, theITCwasverymuch
involved, incollaboration withitsparent organizations andothers, indeveloping additional andmore
efficient ways ofhelping developing countries intrade matters. Hefully agreed withJamaica 's
suggestion thatthelogical conclusion oftheITC'scontinued assistance activities overtheyears was
thatthere should onedaybenoneedorreason forittoexist. Thiswould happen oncetheITC'sjobWT/GC/M/18
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ofnational capacity-building hadbeendoneanddeveloping countries wereabletoparticipate effectively
ininternational trade. Asformeasurable targets forprogrammes andprojects, hecould notagree
more withJamaica. Money thatwenttoward technical assistance should haveaveryspecific impact,
anditwasthecollective dutyofalltomeasure suchimpact. Newprojects andprogrammes ofthe
ITCdidinclude measurable targets, andactive discussion onthismatter washeldattheITCwiththe
consultative committee thataccompanied theGlobal Trust Fund. Onamatter raised byIndia, hesaid
thattheincreased presence ofexperts from developing countries intheITCatalllevels wasamust,
andtheITCwasdoing allitcould toensure thatthese countries wereappropriately represented. As
regards theITC'srestructuring andreform, governments hadbeenveryclearin1994astothenecessity
ofsubstantial andfundamental reform attheITC,andthiswasbeing undertaken andwould becontinued
totheend. While hewasunable atthepresent meeting toprovide aresponse toSingapore 'squestion
ontheallocation offunds between thefieldandheadquarters, hestressed thatefficient toolshadoften
tobedeveloped atheadquarters andcustomized onacountry-by-country basissoastoensure thatone
didnotreinvent thewheel eachtimeaproject wasundertaken inadeveloping country. TheITC's
regular budget existed forthisverypurpose. Asforthecomplementarity ofthetechnical assistance
provided bythethree organizations, thishadbeentheobject ofveryintense discussions between the
parent organizations andtheITC, andmuch progress hadbeen made inensuring notonly
complementarity butthesynergy ofthetechnical assistance provided bythethree organizations.
Therepresentative ofJapan asked whytheGeneral Council hadnothadanopportunity to
consider theJAGreport earlier, given thatithadbeencirculated inApril 1996. Thereport contained
auseful section onreview oftechnical cooperation activities in1995, andhebelieved thatamore
attentive andenthusiastic discussion could beheldifdelegations hadtheopportunity toreview these
activities intheimmediately following year.
TheChairmansaidthatthedelayedconsiderationofthisreportwasduetoorganizationalreasons,
linked totheunavailability oftheChairman oftheJAGandalsototheworkload related tothe
preparations fortheSingapore Ministerial Conference.
TheGeneral Council tooknoteofthestatements andadopted thereport inITC/AG(XXIX)/157.
3. Conditions ofservice ofWTO staff
TheChairman recalled that,notwithstanding thesupport ofalarge number ofdelegations,
ithadnotbeenpossible in1996 toreach aconsensus onadraftdecision onthismatter submitted by
thehimon18September 1996. TheGeneral Council hadtherefore decided inNovember that"itshall
in1997continue itsconsideration ofthedraftdecision of18September 1996, withaviewtoreaching
afinalconclusion by30June1997atthelatest" (WT/L/197). Accordingly, heproposed thatanopen-
ended working group beestablished toassist theGeneral Council inmeeting theabove deadline, with
thefollowing terms ofreference:
- tocomplete theconsideration ofthedraft Staff Regulations, including thecodeof
conduct;
- toexamine thedraftStaffRules;
- toexamine thedraftregulations oftheproposed WTO pension plan;
- toconsider thefinancial management structure oftheproposed WTO pension plan;
- toundertake afurther study oftheconditions forthewithdrawal ofICITO from the
United Nations JointStaffPension Fund, together withatimetable forsuchwithdrawal
andthepresentation ofaconditional request forwithdrawal totheUNJSPF Standing
Committee attheendofJune1997;WT/GC/M/18
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- tomake afurther, detailed study ofthecostimplications associated withthedraft
decision of18September 1996 andconsult thereon, asappropriate, withtheBudget
Committee;
- toreview theresults ofthepostclassification exercise currently inprogress; and
- topursue consideration ofaperformance evaluation andperformance paysystem on
thebasis oftheproposals tobesubmitted bytheSecretariat.
Theworking group should meet assoonaspossible inorder toestablish atimetable forits
work andshould report ateachmeeting oftheGeneral Council. Itsfinalreport, together withfinal
drafttextsofthestaffregulations andrules, pension planregulations andadraftdecision should be
submitted totheGeneral Council bytheendofMay1997. TheSecretariat would provide thenecessary
technical support totheworking group andmake available todelegations uponrequest aconsolidated
setofthepapers considered bytheworking groups previously established bytheGeneral Council.
Theworking group would befreetoinvite outside experts.
Healsoproposed thattheGeneral Council authorize itsChairman todesignate theChairman
oftheworking group inconsultation withMembers. Inthecourse oftheconsultations hehadheld
ontheestablishment oftheworking group, ithadbeensuggested thattheWTO Staff Council be
represented intheworking group asanobserver. However, thissuggestion hadnotmetwithaconsensus
andrequired further consultations when theworking group started itswork.
Therepresentative ofEgypt saidhisdelegation agreed totheChairman 'sproposal andhoped
thattheworking group would complete itstaskassoonaspossible, andtakeintoconsideration also
thework oftheBudget Committee inorder toavoid duplication. Toensure better coordination between
theBudget Committee andtheworking group, hisdelegation suggested thattheChairman oftheBudget
Committee beappointed Chairman oftheworking group.
Therepresentative ofGermany welcomed theestablishment ofaworking group andthe
opportunity tostudy thematter athand inthatgroup. Hisdelegation could agree totheterms of
reference, provided thateachdelegation hadanopportunity tostateitsposition. Given thatGermany
wasamember ofandmaincontributor tomany international organizations, itwished torecall itsgeneral
position thatpossible solutions should befound intheframework oftheUNcommon system. Approval
oftheproposed working group could nottherefore beinterpreted asanticipating approval ofan
autonomous WTO system. Hewelcomed toothattheworking group would befreetoinvite outside
experts, andsaidthatexperts fromtheInternational Civil Service Commission andtheUNJointStaff
Pension Fund should begiven theopportunity topresent theirviews. Hisdelegation could notjoin
aconsensus togrant observer status intheworking group totheStaffCouncil, andcould notseehow
decision-making inMember governments could beenhanced byobservers. Thenecessary decisions
could onlybetaken byMembers. Noting thatSecretariat staffwould bepresent atmeetings ofthe
working group, hesaidthattheyaswellaseachdelegation would befreetoinform representatives
oftheStaffCouncil ofthedeliberations. TheStaffCouncil might alsobegiven theopportunity to
address thegroup atanappropriate time. Hisdelegation believed there wasnolackoftransparency
onthismatter, butrather alackofdecision-making.
Therepresentative ofMorocco saidthatwhile theproposed terms ofreference fortheworking
group referred toareview oftheresults ofthepostclassification exercise andconsideration ofa
performance paysystem, anelement thatappeared tobelacking therein concerned thestructure of
theSecretariat. Hisdelegation believed thatthelatter issue should bedealtwithappropriately.
Therepresentative ofNorway saidhebelieved thattheChairman 'sproposal could contribute
toarelevant decision onsalaries andpensions notlaterthan30June. Since Marrakesh, Members
hadrepeatedly delayed asubstantial decision onthismatter. IftheWTO wished toretain itscredibility,WT/GC/M/18
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itcould notgoforyetanother prolongation on30June. Asregards observer status fortheStaffCouncil
intheworking group, Norway wished totakethisissue upatthegroup 'sfirstmeeting.
Therepresentative oftheUnited States supported theChairman 'sproposal, andexpressed regret
thatGermany could notjoininaconsensus toallow theStaffCouncil toparticipate asanobserver
intheworking group. Clearly, theStaffCouncil could notparticipate onthesamebasisasdelegations.
However, Members hadnothing tohidefromthestaffoftheSecretariat, andtheUnited States believed
itwould beuseful fortheStaffCouncil toobserve theworking group 'swork sothatitcould atleast
understand howanyposition wasarrived at.
Therepresentative ofUruguay supported theChairman 'sproposal. Healsosupported theUS
statement regarding participation oftheStaffCouncil asanobserver intheworking group. There
wasnothing tohideinthisexercise, anditwasimportant thatrepresentatives ofthose mostconcerned
should participate intheworking group 'swork. Theparticipation ofstaffrepresentatives inwork
onsimilar issues inother organizations hadproved veryuseful. Itwasonething tohavetechnical
support stafffrom theSecretariat present atameeting, andquite another tohave observers that
represented theStaffCouncil. Uruguay supported thelatter.
Therepresentative ofJamaica saidhedidnotbelieve itwaspossible forabody established
bytheGeneral Council totakeadecision onparticipation when theGeneral Council itself could not
reach aconsensus thereon. This was not amatter that could bedelegated to
theworking group. Theworking group wasnotdealing exclusively orprimarily withmatters only
ofinterest totheStaffCouncil. Hebelieved, however, thattherewasroom forparallel activity whereby
theStaffCouncil could befullyinvolved inareas ofinterest toit.
TheChairman saiditwasclearthatthere wasnoconsensus atpresent ontheStaffCouncil 's
participation asanobserver intheworking group. Forthisreason, hehadnotmade anyproposal
inthisregard. However, ashehadstated earlier, thismatter could beraised onceagain atthestart
oftheworking group 'swork, andaconsensus could bereached atthattime.
Therepresentative ofHong Kong saidthathisdelegation regarded itasveryunsatisfactory
thatthequestion ofconditions ofservice forstaffcontinued tobeunresolved. Itwasimportant now
tobring ittoasatisfactory conclusion. Hong Kong therefore supported establishment oftheworking
group asproposed bytheChairman, andunderlined theimportance ofobserving thesetdeadline strictly.
Also, progress intheworking group should bekeptunder review bytheGeneral Council. Finally,
Hong Kong supported theproposal thattheStaffCouncil bepresent asanobserver intheworking
group. Thiswould beinlinewithmodern management practices andwiththeprinciple oftransparency,
andwould behelpful tostaffmorale.
TheChairman saidthatunder hisproposal theworking group would report ateachmeeting
oftheGeneral Council.
Therepresentative ofCanada saidthathisdelegation supported theChairman 'sproposal, as
alsothepresence oftheStaffCouncil asanobserver intheworking group forreasons cited bythe
United States. Onthelatter question, Canada agreed withtheChairman 'sremarks inresponse to
Jamaica 'sstatement. Canada believed thataworking group comprising allWTO Members could well
decide whether ornottoinvite theStaffCouncil toattend itsmeetings. Inconcluding, hesaidthat
there wasnoconsensus intheGeneral Council onJamaica 'sviews.
Therepresentative ofHaiti saidthat,having listened tothedebate, hisdelegation could agree
totheChairman 'sproposal withoneexception. Haiti believed thatanissue asimportant asthe
participation oftheStaffCouncil intheworking group should notbelefttothelatter todecide, butWT/GC/M/18
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rather should bedecided bytheGeneral Council. Itwould beimportant fortheworking group 'swork
toknow whatthestaff'sviews were, because staffwerejustasconcerned inthismatter asMembers.
Referring totensions thathesaidhadarisen insome other organizations from thebadmanagement
ofsimilar issues, heemphasized thattheWTO wastooimportant tolaunch thiswork without staff
participation andtothenhavetoresolve anyproblems thatmight subsequently arise. Prevention was
better thancureand,forthegood health oftheWTO, staffparticipation wasneeded intheworking
group. Hereiterated thatthisimportant decision should betaken bytheGeneral Council. Ifthere
wasnoconsensus onthismatter yet,thenconsultations should continue.
TheChairman saidthat,given theapparent lackofconsensus, itdidnotappear possible at
thepresent meeting totake adecision onthequestion oftheStaff Council 'sparticipation
intheworking group. Itwasimportant, however, thattheGeneral Council decide ontheestablishment
oftheworking group atitspresent meeting. Hehadtherefore suggested thatthequestion oftheStaff
Council 'sparticipation betaken upsubsequently bytheworking group itself. Alternatively, theGeneral
Council Chairman could beauthorized tocontinue consultations onthismatter.
Therepresentative ofSingapore, speaking onbehalf oftheASEAN countries, supported the
Chairman 'sproposal ontheestablishment ofaworking group tostudy amatter onwhich adecision
hadbeencontinuously postponed byMembers. Thecurrent situation wasunfair andunjust tothestaff.
Given theconsiderable work theWTO hadtodointhenearfuture, itwasessential tohaveasatisfied
Secretariat, andanything Members could dointhisregard should bedone.
Therepresentative ofMexico saidthematter athandwasapriority issue andsome solution
hadtobefound. Hesupported theChairman 'sproposal toestablish aworking group tostudy this
matter without prejudging atthisstage thequestion ofparticipation oftheStaffCouncil. Itwashis
understanding thatconsultations onthelatter issue would becontinued.
Therepresentative ofKorea reiterated hisdelegation 'ssupport fortheearly resolution ofthe
issueofconditions ofservice ofWTO staffindependent oftheUNcommon system. Forthisreason,
Korea supported theChairman 'sproposal fortheestablishment ofaworking group withadecision
onparticipation oftheStaffCouncil pending. Hebelieved thelatter wasasecondary matter asfar
astheprocess oftheworking group wasconcerned. Ifsuchparticipation proved tobeinconvenient
ordifficult foronecountry oranother, thenKorea would notfavour allowing suchparticipation. This
would beamuch more realistic approach interms offacilitating apositive decision onthequestion
ofconditions ofservice ofthestaff.
TheDirector-General saidhewelcomed theestablishment oftheworking group proposed by
theChairman andexpressed appreciation tothelatter forhisefforts. Hehoped thattheworking group
would conclude itswork andarrive atapositive outcome assoonaspossible --evenbefore thedeadline
oftheendofMay--andthattheposition oftheStaff Council would betaken intoaccount ina
transparent way. Hecould onlyreiterate atthisstage hisstatement attheSingapore Ministerial
Conference, when hehadsaid:"Atthismoment ofcelebration Ifeelobliged torecall theimperative
needtoestablish theWTO Secretariat asanindependent unitassoonaspossible. Thiswould beonly
alogical consequence ofhaving created theWTO asalegally independent andsuigeneris organization.
Twoyears havealready gonebysince thecreation oftheOrganization, andthetimehascome totake
thisdecision which hasnofinancial implications butiscrucial forthefateofcloseto500staffmembers.
Thestaffdeserved recognition fortheirdedication andoutstanding contribution, andthebestwayto
dothatisforMembers todecide assoonaspossible ontheestablishment oftheSecretariat".2He
hoped thatthetimehadcome, aftertwoyears ofdiscussions andclarifications. Herecalled thatthe
2SeeWT/MIN(96)/SR/9, page 4.WT/GC/M/18
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WTO wasbased onconsensus andthatconsensus required responsibility andflexibility. Thishadbeen
thereasonforthesuccessoftheGATT,theUruguayRoundandtheMinisterialConferenceinSingapore.
Atthisstage ofdiscussion oftheissue ofconditions ofservice ofWTO staff, themaintenance of
inflexible minority positions would appear contrary tothetradition thathadguided thesuccess ofthe
multilateral system andtheeconomic success ofsomany countries. Theconsequences could bevery
serious forthesystem asawhole. Hestrongly recommended thatMembers consider these points
carefully.
TheGeneral Council tooknoteofthestatements, agreed totheChairman 'sproposal regarding
theestablishment andterms ofreference ofaworking group tostudy thismatter, andauthorized the
Chairman todesignate theChairman oftheWorking Group inconsultation withMembers. TheGeneral
Council alsoagreed thattheChairman should holdfurther consultations onthequestion ofparticipation
oftheStaffCouncil asanobserver intheWorking Group.
4. Committee onBalance-of-Payments Restrictions -Consultation withIndia
- Statement bytheCommittee Chairman
Mr.Witt(Germany), Chairman oftheCommittee, saidthattheCommittee hadmeton
20-21 January 1997 tocontinue itsconsultation withIndia which ithadstarted inDecember 1995.
TheCommittee hadnoted thepositive developments inIndia'seconomic situation since 1995. Ithad
welcomed India'scontinued commitment toward economic reform andliberalization, andhadnoted
itsprogressive removal ofquantitative restrictions notified under Article XVIII:B. TheCommittee
hadalsonoted theIMF'sstatement thatIndia'scurrent monetary reserves were notinadequate and
were notthreatened byaserious decline. India hadcautioned thatitsBalance-of-Payments needed
close monitoring andthattheprecipitate removal ofquantitative restrictions notified under
Article XVIII:B could undermine thestability ofitseconomy andthereform process. Inthelightof
ongoing discussions, theCommittee hadagreed toresume theconsultation withIndia atthebeginning
ofJune1997 toconsider aplanfortheelimination ofmeasures notified under Article XVIII:B and
toconclude theconsultations consistently withallrelevant BOPprovisions. Indrawing upaplan,
India would givedueconsideration toMembers 'interests inabalanced manner.
TherepresentativeoftheEuropeanCommunitiesexpressedconcernatIndia'scontinuingrecourse
toArticle XVIII:B provisions, andlooked forward totheresumption ofconsultations inJuneandto
India'sfullcompliance withitsWTO obligations.
TherepresentativeoftheUnitedStateswelcomedIndia'scommitmentattheJanuaryconsultation
toeconomic reform andliberalization. Theremoval ofquantitative restrictions notified under
Article XVIII:B would beanimportant element ofthatreform. TheUnited States looked forward
toreceiving India'splantoeliminate these measures nolaterthanthesecond week ofMayinorder
tohavetimetoprepare fortheJuneconsultations.
Therepresentative ofSwitzerland reiterated hisGovernment 'sviewthatthemaintenance of
India'smeasures werenotjustified under theBOPprovisions, andwelcomed India'sreadiness todraw
upaprogramme fortheremoval ofthese measures.
Therepresentative ofJapan welcomed theprogress made attheCommittee meeting inJanuary
andlooked forward toIndia'ssubmission ofaplantoeliminate itsquantitative restrictions. Healso
looked forward toreceiving thatplanwellinadvance oftheCommittee meeting inJuneinorder to
haveample timetoexamine itandprepare forthediscussion.WT/GC/M/18
Page10
Therepresentative ofIndiasaidthatthestatement bytheBOPCommittee Chairman wasbased
onwhathadbeencollectively decided intheCommittee following twodaysofintensive discussions.
India stood bytheconclusions thathadbeenarrived atinthose discussions, andwhich, asallwere
aware,hadbeenbasedonaparticularcontextandoncertainunderstandings.Hewasthereforeconcerned
atthestatements bytheCommunity andSwitzerland implying thatIndia wasnotincompliance with
some ofitsobligations. Thiswasacomplicated technical andlegal issue thattheBOPCommittee
wascompetent tolookinto,andIndia would stand bythecommitments ithadmade initsconsultation
withtheCommittee. Headded thatthenecessary political climate forreform andliberalization in
India could becreated ifmajor Member countries could ensure increased market access forproducts
inwhich India hadacompetitive advantage.
Therepresentative ofKorea welcomed theposition taken byIndia, andlooked forward to
discussing, attheJunemeeting oftheCommittee, India'splantobring itsmeasures intoconformity
withWTO provisions.
TheGeneral Council tooknoteofthestatements.
5. Ecuador -Commitments under theProtocol ofAccession (WT/ACC/ECU/6)
- Communication from theUnited States (WT/L/202)
TheChairman drew attention tothecommunication from theUnited States indocument
WT/L/202, andinformed theGeneral Council thatEcuador hadrecently submitted totheSecretariat,
forcirculation toMembers, information relating toitscompliance withthespecific commitments
contained inthereport oftheWorking Party onitsaccession (WT/L/77).3
Therepresentative oftheUnited States saidthatEcuador hadbeenthefirstcountry afterthe
entry intoforceoftheWTO Agreement tojointheWTO aftercompletion ofafullArticle XIIaccession
process. After almost three years ofnegotiations, Ecuador hadagreed toanumber ofspecific
commitments thatinsome cases provided atime-limited transitional period togiveEcuador timeafter
accession totakethemeasures necessary toimplement thecommitment. Ecuador 'sbarriers toimports
covered bythese commitments wereclearviolations ofWTO provisions, andthedates arranged had
beendiscussed andapproved byallcountries intheWorking Party. Ecuador hadtaken several months
toconsider andapprove theaccession package. With itsapproval, ithadadopted theprovisions of
theWTO Agreements intoitslaw.Nevertheless, Ecuador hadnotimplemented anumber ofitsexplicit
commitments inthatProtocol. Ecuador hadnotyetmetitsobligation tobring intocompliance the
application oftheSpecial Consumption Taxonsimilar domestic andimported products by1July1996,
andimports stillfaced discrimination relative todomestic goods. Ithadalsonotlifted itsimport bans
onusedtyres, clothes, andautomobiles by1July1996, asithadpromised, nortaken thesteps to
implement standards forsuchimports toaddress health andsafety concerns. Furthermore, Ecuador
hadnotabandoned, upon accession, itspractice ofdiscretionary denial forprotectionist purposes of
import permits foragricultural andother imports. USexports toEcuador hadbeenblocked bythe
refusal ofEcuador 'sauthorities toissue permits ortoindicate anyreason fortherefusal. Ecuador
hadalsodeclined toapply theprovisions oftheTRIPS Agreement nolaterthan31July1996, asit
hadpromised, notwithstanding theexistence ofsimilar obligations already contained inabilateral
agreement, alsounimplemented.
Ecuador hadaspecific obligation toreport totheSecretariat annually onitsprogress towards
compliance withthetransitional arrangements negotiated, andonthereasons whythese commitments
3Thecommunication from Ecuador wassubsequently circulated asWT/ACC/ECU/8.WT/GC/M/18
Page11
were notbeing kept. Thisreport hadnotbeenmade. TheUnited States hadbeenincontact with
Ecuador since June1996onthese issues, attempting toalertEcuador toitsconcerns. These concerns
hadbeenraised orally andinwriting andEcuador hadnotevenwritten back. Furthermore, Ecuador
hadundertaken legislative initiatives which tookitevenfurther fromthegoalofcompliance withthe
WTO Agreement. These actions were harmful totheWTO, toMembers 'trade interests, andto
Ecuador'seconomicdevelopmentanditscredibilityintheWTO.Evenifabsolutetradevolumesaffected
atthecurrent timeweresmall, thisissuewasofcentral importance totheWTO, sinceEcuador 'sactions
undermined thebalance ofrights andobligations established initsaccession package. Thatbalance
wasthefoundation oftheWTO. TheUnited States urged Ecuador todevelop andsubmit therequired
report oncompliance immediately. Furthermore, Ecuador should begin immediately totakethesteps
necessary forcompliance. IfEcuador wasprepared tobegin taking thestepsnecessary forcompliance,
theUnited States, andcertainly other WTO Members, would bewilling towork withittodevelop
aplantoaddress theseproblems. TheUnited States stood ready toworkclosely withEcuador todevelop
arapid action plantoaddress theseissues, based onatimetable ofspecific stepstoimplement Ecuador 's
WTO obligations. Action should betaken now. Ecuador should speak totheseissues, andgivetangible
evidence ofitsintent tocomply withallitsaccession commitments.
Therepresentative ofEcuador saidthatEcuador 'strade policy inrecent years hadclearly
promoted theattainment oftheWTO 'sobjective ofincreasing world trade through freertrade based
onmultilaterally agreed rules. Thelatter wasoneofthemainobjectives ofallWTO Members, which
theywereseeking toachieve through theapplication oftheUruguay Round Agreements. Thestate
ofimplementation oftheseAgreements, andofMembers 'compliance withthecommitments thereunder,
hadrecently beenreviewed attheSingapore Ministerial Conference. After evaluating theprogress
andtheapplication ofeachofthese Agreements, andanalyzing theimportant commitments thateach
Member wastohavecomplied with, allknew nowhowmuch progress hadbeenmade, what had
effectively beenachieved thusfar,andwhatobligations could notbecomplied withbyMembers despite
theirwillingness todoso.Herecalled thisinlightoftheGeneral Council 'sconsideration oftheUS
communication inWT/L/102 concerning certain commitments undertaken byEcuador initsProtocol
ofAccession (WT/ACC/ECU/6). Thiscommunication drew attention totwomain facts. First, that
Ecuador hadbecome aWTO Member on21January 1996, andthisafterhaving fullydemonstrated
thatthesubstantive partofitslegal regime andforeign trade practices inallareas were compatible
withWTOrulesanddisciplines.Second,thatinitsProtocolofAccession,Ecuadorhadsometime-limits
tobring intoconformity asmall number ofprovisions concerning theapplication ofadomestic tax
ontheconsumption ofalimited andselected number ofproducts, whether domestic orimported, and
those establishing prohibitions ontheimportation ofusedautomobiles, usedclothes andusedtyres.
Ecuador hadspared noeffort incontinuing tomove towards adopting measures tocomply withits
WTO accession commitments. Ithadrecently submitted acommunication totheSecretariat toinform
Members ofthestateofcompliance andtoindicate reasons forpossible delays incertain areas
(WT/ACC/ECU/8). Thissituation, however, didnothaveanyincidence ormajor repercussion on
tradeflows and,despite economic difficulties experienced in1995andin1996, Ecuador 'sforeign trade
regime continued torespect fundamental WTO rules.
Asindicated initsrecently submitted communication, Ecuador had,on30December 1996,
implemented amendments adopted byitsCongress withaview tothespeedy implementation ofits
accession commitments withregard totheSpecial Consumption Tax. Thedelay inthisregard had
stemmed fromtheneedtodefine anappropriate formula toavoid fiscal repercussions andimbalances
inthecountry 'sbudget. Asregards measures onusedgoods, subsequent toitsaccession andinseeking
elementsofreferenceinestablishingitsnewregime,EcuadorhadfoundthatseveralMembersmaintained
measures somewhat similar toitsown. Yet,anddespite thefactthatitsmeasures onthese products
didnotsubstantively affect trade duetotheverynature ofthese goods anddomestic consumer
preferences, Ecuador hadnevertheless initiated aprocess tobring itsprovisions intoconformity with
those oftheWTO. Ithadrecently issued various Ministerial decisions toestablish compatible criteriaWT/GC/M/18
Page12
fortheimportation ofusedvehicles, based ontheneedtoprotect human health andsafety andthe
environment. Local usedvehicles were subject tosimilar regulations. Ecuador would continue to
deploy itsbestefforts tomeetitsoutstanding commitments, particularly intheremaining used-goods
sectors, having regard totheneedtoensure theprotection ofhuman health andtheenvironment. It
would require areasonable period oftimetocomplete therevision ofitsregulations related tosome
ofthese pending commitments.
Asregards theprotection ofintellectual property rights, herecalled thatEcuador hadapplied
since1993, together withotherWTO Members alsopartytotheAndean integration agreement, common
legislation thatconstituted anadequate baseforprotecting suchrights. Ecuador hadnotneglected
thisimportant subject, anddidnotwishtoignore itsWTO commitments inthisarea. Onthecontrary,
ithadundertaken theprocess ofimplementing certain measures toregulate various domestic aspects
linked totheTRIPS Agreement. Inorder toincorporate intoitsnational legislation therights and
obligations stemming from theWTO Agreement andtheMultilateral Trade Agreements, including
theTRIPS Agreement, Ecuador hadpublished these instruments initsOfficial Register inJune1996,
andconsidered thatitsaccession commitment hadbeencomplied with. Thecompletion oftheprocess
ofissuance ofadditional rules andregulations wasclosely linked tothedevelopment oftechnical
cooperation programmes thatgovernments andinternational organizations would beprepared tooffer
Ecuador. Ecuador could assure Members thatinthose circumstances, andthanks tosuchcooperation,
itwould notneed, inthisparticular case,toavailitselfofitsrights asadeveloping country asreflected
inthereport oftheWorking Party onitsaccession.
Therepresentative oftheEuropean Communities expressed appreciation fortheinformation
providedbyEcuadorandlookedforwardtoreceivingfurtherinformationinduecourse.TheCommunity
shared theUnited States 'concerns regarding anyfailure byanacceding country tobring itself into
compliance withallWTO provisions within areasonable timeperiod asagreed intheconditions
negotiated foritsaccession.
Therepresentative ofVenezuela, speaking alsoonbehalf ofColombia, saidthat,aspartof
theAndean Community, Ecuador shared withtheother countries ofthatCommunity acommon regime
fortheprotection ofintellectual property rights thatwasinkeeping withWTO rules and,more
specifically, withtheTRIPS Agreement. Ecuador 'scommitment injoining theWTO obviously covered
theTRIPS Agreement asawhole, including theprovisions infavour ofdeveloping countries and,more
specifically, those relating tothefive-year transitional period fortheadjustment ofcertain national
regulations. Adifferent interpretation ofthecommitment reflected inparagraph 78ofthereport of
theWorking Party onEcuador 'saccession, apartfrombeing inequitable, would create legaldistortions
within theAndean Community andaffect therights ofother members ofthatintegration agreement
vis-a-vis theWTO. With regard tothelifting ofthebansontheimports ofusedproducts, suchan
obligation should notimpair Ecuador 'sright toimpose trade measures intended toprotect the
environment,orhuman,animalandplantlife,aswaslegitimatelydonebymost,ifnotall,WTOMember
countries. Proper account should therefore betaken ofthisfactor inassessing Ecuador 'scompliance
withitsWTO commitments.
Therepresentative ofNewZealand saidthatEcuador 'saccession negotiation hadbeenimportant
forNew Zealand, andhisdelegation wasconcerned thatcommitments entered intoshould be
implemented. NewZealand would follow developments onthisissue, andwould examine thereport
submitted byEcuador.
Therepresentative ofSwitzerland welcomed theinformation provided byEcuador, which his
delegation would study carefully. Switzerland shared others 'concerns about thesystemic implications
ofacountry 'snon-compliance withitsWTO obligations ascontained initsProtocol ofAccession.
Theterms ofeachaccession weretheresult ofanegotiation, andrepresented abalance between theWT/GC/M/18
Page13
benefits anacceding country could drawfromitsmembership andtheconcessions thatitshould make.
Ashisdelegation hadstated attheTRIPS Council meeting inNovember 1996, itconsidered thatEcuador
should haveapplied theTRIPS Agreement asof31July1996, pursuant totheterms ofitsProtocol
ofAccession. Switzerland expected Ecuador toimplement allitsaccession commitments assoonas
possible.
TheGeneral Council tooknoteofthestatements.
6. Appointment ofofficers toWTO bodies
TheChairman saidthatinaccordance withtheguidelines forappointment ofofficers
toWTO bodies approved bytheGeneral Council inJanuary 1995 (WT/L/31), hehadheldinformal
consultationsonthismatter.Onthebasisoftheseconsultations,heconsideredthattherewasaconsensus
onthefollowing slateofnames:
Chairperson oftheGeneral Council Mr.C.Lafer (Brazil)
Chairperson oftheDispute Settlement Body Mr.W.Armstrong (New Zealand)
Chairperson oftheTrade Policy Review Body Mr.M.Akram (Pakistan)
Chairperson oftheCouncil forTrade inGoods Mr.T.Johannessen (Norway)
Chairperson oftheCouncil forTRIPS Mrs. C.LuzGuarda (Chile)
Chairperson oftheCouncil forTrade inServices Mr.J.Yung Sun(Korea)
Chairperson oftheCommittee onTrade and Mr.B.Ekblom (Finland)
Environment
Chairperson oftheCommittee onTrade and Mr.D.Baichoo (Mauritius)
Development
Chairperson oftheCommittee onBudget, Finance Mr.K.Morjane (Tunisia)
andAdministration
Chairperson oftheCommittee onBalance-of-Payments Mr.P.R.Jenkins (United Kingdom)
Restrictions
Chairperson oftheCommittee onRegional Trading Mr.J.Weekes (Canada)
Arrangements
TheGeneral Council tooknoteoftheconsensus ontheabove slateofnames.
Therepresentative ofHong Kong noted thattheguidelines fortheappointment ofofficers
stipulated thatthechoice ofachairperson should primarily reflect thecapacity ofthatperson toundertake
thespecial responsibilities required ofsuchposts intheWTO system. There wasalsoreference in
theguidelines tothepresumably subsidiary needforabalance reflecting theoverall membership of
theWTO, although what sortofbalance wasnotmade explicit. Inview ofthis,andgiven that
chairpersons hadyettobeappointed forthethreeworking groups established byMinisters atSingapore4,
itwashisunderstanding thatthere would benolinkbetween theslateofnames justmentioned bythe
Chairman andthechoice ofchairpersons forthesenewgroups. Hewished toemphasize thatinagreeing
totheabove slateofnames, Members were innowayprejudging theoutcome oftheconsultations
tobeheldonthelatter appointments. InHong Kong'sview, theessential quality required ofthe
chairpersons selected forthese sensitive newareas would betheiractual andperceived neutrality.
Therepresentative ofSingapore, speaking onbehalf oftheASEAN countries, saidthattheir
countries hadputforward acandidate theyhadconsidered tobeexceptionally good. However, in
4SeeItem 7.WT/GC/M/18
Page14
thelightofanappeal bytheChairman, andtoenable himtobring consultations ontheabove slate
toaconclusion, theyhadagreed toabide bythelatter'sdecision onthismatter. Hehoped thatthe
ASEAN countries 'reasonableness inthissituation would bereciprocated attheappropriate time.
Therepresentative ofTanzania saidthathehadnoted thebalance achieved intheslateofnames,
andexpressed satisfaction thatAfrica hadbeengiven twooutoftheeleven posts. While itwastrue
thattherewasnoquota system intheallocation oftheseposts, decency demanded thatMembers should
besensitive totheneedforregional balance. Byexpanding theparticipation ofAfrica initsleadership,
theWTO wassending thecorrect signals thatitwasserious initscommitment tostemthetideof
marginalization ofthatcontinent initsactivities. Hewasconvinced thatthesame spirit would prevail
inconsultations onposts inother subsidiary bodies, andthatnolinkages would bemade when electing
thechairpersons ofthethree newworking groups established byMinisters atSingapore. Hehoped
thatdueregard would begiven totheneedtostrengthen Africa 'sparticipation intheactivities and
leadership oftheWTO.
Asarepresentative ofaleast-developed country, hehoped that,asinthepast,theWTO would
thisyearcontinue topayparticular attention totheplight oftheLDCs. Itwashisanticipation that
thedecisions taken inSingapore concerning theLDCs would beimplemented intheirspirit. TheLDCs
looked forward toapractical andfruitful outcome oftheenvisaged meeting whose aimwastofoster
anintegrated approach toassisting LDCs inenhancing theirtrading opportunities. Thatmeeting would
goalongwayinhelping theircountries stemthetideoffurther marginalization.
TheGeneral Council tooknoteofthestatements.
7. Follow-uptotheSingaporeMinisterialConference-WorkingGroupsontherelationshipbetween
trade andinvestment, theinteraction between trade andcompetition, andtransparency in
government procurement practices (WT/MIN(96)/DEC, paragraphs 20and21)
- Consultations onappointment ofchairpersons
TheChairman recalled thattheSingapore Ministerial Conference hadestablished threeworking
groups ontherelationship between tradeandinvestment, theinteraction between tradeandcompetition,
andtransparency ingovernment procurement practices. Paragraphs 20and21oftheSingapore
Ministerial Declaration (WT/MIN(96)/DEC) contained themandates ofthese working groups, and
stipulated thattheGeneral Council keepthework ofeachbodyunder review anddetermine aftertwo
years howtheirwork should proceed.
Since these working groups came within thepurview oftheGeneral Council, hebelieved it
wasimportant thattheGeneral Council takethenecessary steps toenable these groups tostarttheir
work assoonaspossible. Hetherefore proposed thattheGeneral Council authorize itsChairman to
designate theChairpersons forthese three working groups inconsultation withMembers.
Therepresentative ofPakistan saidthat,astheChairman hadrightly stated, itwastheGeneral
Council thathadresponsibility forthesupervision ofthework ofthese groups. Itshould therefore
betheGeneral Council thatapproved theappointment oftheirChairpersons. Accordingly, itwashis
understanding thattheresults oftheChairman 'sconsultations would bepresented fortheconcurrence
oftheGeneral Council attheappropriate time.
TheChairmanrecalledthatunderhisproposaltheGeneralCouncilChairmanwouldbeauthorized
todesignate chairpersons ofthese working groups inconsultation withMembers. Itwasclearfrom
thisthattheChairman could notmake anydesignation without theapproval ofMembers. TheintentionWT/GC/M/18
Page15
wassimply thatthisapproval beobtained ataninformal meeting sothattheGeneral Council didnot
havetowaituntilitsnextscheduled meeting inApril toensure theappointment ofthese chairpersons.
Therepresentative ofJamaica saidthatthedesignation ofthechairpersons ofthethreeworking
groups should notbelefttotheChairman. Rather, theGeneral Council should approve their
appointment, andanadditional meeting oftheGeneral Council could certainly beconvened before
April forthispurpose. While informal consultations hadtheir place intheWTO, theycould be
overdone, andthelegitimacy oftheformal institutional arrangements lost.
Therepresentative ofPakistan saidthat,likeJamaica, hisdelegation believed thatanadditional
General Council meeting should beconvened toapprove thenominations forthechairpersons tobe
proposed bytheChairman following hisconsultations. There wasnoreason todepart fromthenormal
procedure inthisregard.
Withregard totheworking groups oninvestment andcompetition policy, hesaidthat,pursuant
totheSingapore Ministerial Declaration, theyweretowork incooperation withsimilar endeavours
under wayinUNCTAD, andthetiming oftheirwork should berelated tothework being donein
thatorganization soastobenefit therefrom. Also, thescheduling ofthemeetings ofthethreeworking
groups should besuchthatitdidnotaddtotheburden ofsmaller delegations. Inthisconnection,
hesaidthatthemeeting ofexperts ontrade andinvestment intheUNCTAD hadnotyetbegun its
work. Therefore, itwould notbepossible fortheWTO working group ontrade andinvestment to
benefit from thework ofthegroup inUNCTAD, aconsideration thatshould bekeptinmind with
regard tothescheduling oftheWTO working group. Similarly, thecommittee dealing withcompetition
policy intheUNCTAD alsohadtohave substantive meetings thisyear. Hehoped thatthese
considerations would bekeptinmind inaccordance withtheSingapore Ministerial Declaration.
Onthefollow-up totheSingapore Ministerial Conference generally, hesaidthatoneofthe
criticisms thathadbeen made, especially insome developing countries, wasthattheMinisterial
Conference hadunfortunately focused toosignificantly onnewissues andhadnotdealt withthe
bread-and-butter issues important todeveloping countries. Hehoped thatMembers would beable
toprove these criticisms wrong. Tothisend,hehoped thattheSecretariat could, inthenearfuture,
identify theactions thatMembers hadcommitted themselves totaking within theWTO inthevarious
areas ofitsresponsibility. Examples ofsuchcommitments related totheareas ofmarginalization,
regionalarrangements,notifications,developingcountries,least-developedcountries,textilesandclothing,
trade andenvironment, services andthework programme inthebuilt-in agenda. Hehoped thatat
anearlystage, andperhaps atthenextGeneral Council meeting, apaper identifying theseactions could
bemade available, sothatMembers could monitor theprogress thathadbeenmade intherun-up to
future meetings.
Therepresentative ofMorocco saidheagreed withJamaica andPakistan thatthedecision on
theappointment ofthechairpersons ofthethreeworking groups should betaken bytheGeneral Council.
Animportant consideration inmaking thesechoices would betheduration oftheirmandate, i.e.whether
theirmandate would belimited to1997 onlyorextend beyond it.
Therepresentatives ofUruguay andEgypt saidtheysupported theprevious speakers 'views
thatthedecision ontheappointment ofthechairpersons should betaken bytheGeneral Council.
Therepresentative ofEgypt saidhewished alsotoassociate theAfrican Group withthelast
partofPakistan 'sstatement regarding thefollow-up totheSingapore Ministerial Declaration.WT/GC/M/18
Page16
Therepresentative ofHong Kong saidthathisdelegation 'sremarks under item6oftheAgenda
regarding theseparateness ofthisexercise ofchoosing chairpersons aswellasthequalities required
ofthechairpersons applied alsotothepresent item, andshould betaken intoaccount.
TheChairman proposed, inlightofthediscussion, thattheChairman oftheGeneral Council
beauthorized toholdconsultations andtopropose totheGeneral Council thenames ofchairpersons
forthethree working groups.
TheGeneral Council soagreed.
Therepresentative ofMorocco saidthatalthough Egypt hadspoken onbehalf oftheAfrican
GroupinsupportofPakistan'sstatementregardingthefollow-uptotheSingaporeMinisterialDeclaration,
thiswasnotMorocco 'sposition. Thepoints raised byPakistan hadindeed beenconsidered inthe
course ofpreparing theMinisterial Declaration. Morocco believed thatconsensus hadbeenreached
inthediscussions totheeffect thatneither theWTO northeUNCTAD could make theirownwork
dependent onwork intheother organization, andthateachorganization could asktheSecretariat of
theother tokeepitinformed oftheprogress ofwork inorder toavoid duplication andtoensure that
work progressed harmoniously. ItwasnotMorocco 'sunderstanding thatthework inWTO would
inanywaybesubject totheprogress ofwork inanother organization.
Therepresentative ofSingapore, addressing aseparate butrelated matter, recalled thattheWTO
wasstillwithout alogoaftertwoyears inexistence. Since theMinisterial Conference inDecember,
hehadbeenasked byseveral delegations ifhisGovernment would beprepared tooffertotheWTO
thelogousedattheMinisterial Conference. Having consulted withhisauthorities, hecould inform
theGeneral Council thatSingapore would bepleased tohandoverthelogoandthecopyright thereon
totheWTO foritsuse.
TheChairman saidthattheGeneral Council would revert tothismatter atanappropriate time.
Therepresentative oftheUnited States saidthat,asaformer Chairman ofaSub-Committee
oftheBudget Committee thathadexamined thequestion ofthelogo, hewould endorse thesuggestion
thattheWTO, ifitdecided itwanted alogo, takeSingapore uponitsoffer.
Therepresentative ofIndia saidthathehadunderstood thepresent Agenda itemtobedealing
withthefollow-up totheSingapore Ministerial Conference onlyinsofarasitconcerned consultations
ontheappointment ofchairpersons ofthethree working groups established byMinisters. Asregards
thesubstantive issues related tothefollow-up totheMinisterial Conference, hepresumed thathis
delegation would haveanopportunity toexpress itsviews atanappropriate time.
TheGeneral Council tooknoteofthestatements.
8. Commemoration ofthefiftieth anniversary ofthemultilateral trading system
TheChairman recalled thatwithregard tothefiftieth anniversary ofthemultilateral trading
system thatwould occur earlyin1998, Ministers inSingapore hadagreed toinstruct theGeneral Council
toconsider howthishistoric event could bestbecommemorated (WT/MIN(96)/DEC, paragraph 23).WT/GC/M/18
Page17
Therepresentative ofCanada recalled5thatCanada 'sMinister forInternational Trade had
proposed paragraph 23oftheMinisterial Declaration instructing theGeneral Council toconsider how
thefiftieth anniversary ofthetrading system could bestbecommemorated. Canada proposed ameeting
atMinisterial leveltocommemorate thisanniversary. Canada 'sMinister hadmade hisproposal at
Singapore because heconsidered itimportant thatthere beabetter public understanding ofthe
fundamental contribution thatthemultilateral trading system hadmade toeconomic growth and
prosperity. Thecommemoration presented anidealopportunity tohighlight tothepublic theimportance
ofthemultilateral trading system togrowth andprosperity. Aparticular point tobeemphasized was
theintegration ofdeveloping countries asfullandactive participants inthetrading system. However,
allshould reflect alsoonwhysome WTO Members, particularly theleast-developed, hadnotyetshared
fullyinthebenefits ofanopentrading system. Thecommemoration would alsoprovide anopportunity
forMinisters toreflect onthemanagement oftheWTO asaninstitution. Inconsidering possible
approachestothefiftiethanniversarycommemoration,Canadahadlookedathowthefortiethanniversary
hadbeencommemorated. Herecalled thattheGATT hadorganized ahigh-level round-table todiscuss
where theGATT andworld tradewereheading inthecontext oftheearlydaysoftheUruguay Round.
Onemight want toconsider utilizing asimilar format, although thiswould obviously needfurther
discussion. TheDirector-General could perhaps beasked tocome upwithsome ideas andproposals
fordiscussion among delegations.
Canada 'svision ofsuchaMinisterial meeting would notinvolve aMinisterial Declaration nor
anyMinisterialDecisions.Canadaproposedcombiningthefiftiethanniversarycommemorationmeeting
withthenextbiennial meeting oftheMinisterial Conference, andbelieved thatpreparations forsuch
anevent should notparalyse theimportant day-to-day workoftheWTO 'sstanding bodies. Preparations
fortheSingapore Ministerial Conference hadbeenextremely time-intensive andsometimes overly
politicized, thereby detracting from theday-to-day work oftheorganization. Canada didnotwant
toseethathappen again. Members hadenough substantive work arising fromtheSingapore Ministerial
Conference interms ofthebuilt-in agenda andthefurther issues theyhadagreed todiscuss. They
could notafford theluxury ofapreparatory process thatdistracted themfromthisimportant ongoing
work. Canada believed thatMembers needed aperiod oftwoorthreeyears tocontinue withtheprocess
ofimplementation oftheUruguay Round results andtoprepare forthenewnegotiations thatwere
inprospect attheendofthedecade. Forthese reasons, ashort one-to-two-day fiftieth anniversary
celebration, back-to-back withaone-day stocktaking Ministerial Conference would bethepreferred
format, which would notentail thesame sortofpreparations astheSingapore Ministerial Conference
andwould yetserve important objectives oftheinstitution.
Memberssharedacommonviewthatthemultilateraltradingsystemremainedatleastasrelevant
today totheirbasicobjectives asitdid50years earlier. Thecommemoration ofthefiftieth anniversary
representedanidealopportunitytohelpthepublicineachMembercountryunderstandhowthecontinued
evolution ofthemultilateral trading system could, andwould, contribute totheirnational aspirations,
andhowthese aspirations were shared byagrowing number ofcountries. Canada looked forward
todiscussing howtoproceed withthese suggestions atanearly date. Clearly, ameeting ofthissize
andprofile would require anumber oflogistical preparations, including ensuring theavailability of
adequate meeting andhotel room facilities. Herecalled thatithadalready beenagreed thatthenext
Ministerial Conference would beheldinGeneva, andthiswasindeed thesiteCanada envisaged for
themeeting itwasproposing. Itwastherefore important totakeanearly decision onthismatter, and
Canada believed thisshould bedonenolaterthanMarch 1997.
TheChairman saidthat, asarepresentative ofthehostcountry forthenextMinisterial
Conference, hecould notover-emphasize theimportance oftaking adecision assoonaspossible.
5ThefulltextofCanada 'sstatement wassubsequently circulated asWT/GC/8.WT/GC/M/18
Page18
TheDirector-General saidhestrongly welcomed Canada 'sstatement. Hehadbeendiscussing
thisquestion informally withMinisters anddelegations, andtheideas thathadcome upinthese
discussions corresponded verymuch towhat hadjustbeensaidbyCanada. Helooked forward to
afurther exchange ofviews inthecoming weeks andmonths. Herecalled thatattheendofhisstatement
totheSingapore Ministerial Conference (WT/MIN(96)/7), hehadasked Ministers toconsider a
high-profile celebration ofthefiftieth anniversary. Hewished tounderline theimportance ofusing
theoccasion ofthefiftieth anniversary toreflect together onhowallcould collectively improve the
functioningofthesystemwhileremainingtruetoitsfundamentalprinciples,ofwhichnon-discrimination
wasthekey. These principles wereasimportant nowastheywere50years earlier. Itwasessential
toensure thattheycontinued toguide asystem which would eventually havesome 160members, and
tomake itpossible forallthese members, whatever theireconomic circumstances, toparticipate fully
intheundertakings andthebenefits ofthemultilateral system. Heagreed ontheurgency ofsetting
adateforthiscelebration andforthenextMinisterial Conference.
Therepresentative ofMorocco supported Canada 'sstatement, andagreed thatadateforthe
proposed meeting should besetassoonaspossible. Hesuggested thattheDirector-General andthe
General Council Chairman work together onthismatter andholdconsultations assoonaspossible
tocome upwithpractical proposals onwhich theGeneral Council could subsequently takeadecision.
Therepresentative ofCuba welcomed Canada 'sinitiative. Cuba wasitself planning to
commemorate thefiftieth anniversary ofthetrading system inviewofthefactthatHavana hadbeen
thesiteoftheUNConference onTrade andEmployment in1948, which hadculminated inthedrawing
upoftheCharter fortheInternational Trade Organization. Cuba proposed toorganize aninternational
seminar inHavana towards theendof1997 thatwould aimatacritical andconstructive appraisal of
thepast50years from adevelopment-oriented perspective.
Therepresentative ofNewZealand thanked Canada forfocusing attention onthismatter. New
Zealand agreed thattheformat oftheproposed meeting would needfurther consideration, andsuggested
thattheDirector-General, perhaps inconsultation withtheGeneral Council Chairman, come upwith
ideas forMembers toconsider. Itwasimportant tosetatimeforthismeeting assoonaspossible.
Heendorsed Canada 'sstatement thatthepreparatory process should notparalyse theWTO, andnot
inhibit itsday-to-day work. However, since themeeting would beheldsome eighteen months after
theSingapore Ministerial Conference, hebelieved Ministers might notwishsimply togather together
totoasttheorganization andpublicize itsbenefits, butalsotomark theWTO 'sachievements over
theprevious yearorso.They might alsowishtolookahead andgiveimpetus toparticular aspects
ofthebuilt-in agenda.
TheChairman proposed thattheGeneral Council authorize itsChairman toholdconsultations
onthismatter.
TheGeneral Council tooknoteofthestatements andsoagreed.
9. Offices oftheDeputy Directors-General
- Announcement bytheDirector-General
TheDirector-General, speaking under "Other Business", recalled hisstatement onthismatter
attheGeneral Council meeting on16April 1996,6andtheagreement todefer hisconsultations thereon
untilaftertheSingapore Ministerial Conference. Inaccordance withtheprocedures forthefuture
6WT/GC/M/11, Item 5.WT/GC/M/18
Page19
appointmentsoftheDeputyDirectors-General(BISD34S/173),hewishedtoinformtheGeneralCouncil
thathewasnowinitiating hisconsultations ontheposts oftheDeputy Directors-General. Hewould
inform theGeneral Council ofhisdecision assoonaspossible, andinanycasenotlaterthantheend
ofApril.
Therepresentative ofMorocco saidthataftertwoyears oftheWTO 'sexistence, andthe
experience thathadbeengained therefrom, Members needed toclosely scrutinise thestructure ofthe
WTO aswellofitsSecretariat. Hisdelegation suggested thatwhen Members considered thequestion
oftheposts ofthepresent Deputy Directors-General, theywentbeyond questions oftherenewal or
non-renewal ofcontracts andconsidered alsothereform oftheWTO 'sinstitutional structure andof
theSecretariat. Members were wellplaced in1997 toreflect ontheirinstitution. There were no
Ministerial meetings toprepare for,andsubstantive preparatory work forthenegotiations scheduled
fortheendofthedecade hadnotyetbegun. Although theWTO hadworked wellthusfar,andall
hadwelcomed theperformance oftheSecretariat, thisshould notstopMembers fromreflecting, for
example,onhowmanyDeputyDirectors-GeneralordivisionstheSecretariatneededtohaveand,equally
important, onhowmany committees andcouncils theWTO should have. Given themultitude ofthe
WTO 'sstanding bodies, working groups andworking parties, small delegations likehisownwere
unable tokeepupwiththework oftheWTO. Some order therefore needed tobebrought intothe
structure, andanyapparent problems remedied. Hewould therefore propose thattheDirector-General
expand thescope ofhisconsultations and,together withtheChairman oftheGeneral Council, consider
thepossibility ofinstitutional reform andtherestructuring oftheSecretariat. Thequestion ofsalaries
andpensions ofWTO staffwaslinked tothatofthestructure oftheSecretariat. Inviewofthefact
thatseveral other international organizations were intheprocess ofrestructuration, hebelieved that
governments could perhaps notaccept theWTO Secretariat continuing withastructure thatappeared
nottoberational. Heasked therefore thattheDirector-General andtheGeneral Council Chairman,
within theirownfields ofcompetence, work onthisquestion andattempt toprovide some results by
April. Heproposed alsothattheGeneral Council meeting scheduled forApril include onitsagenda
anitementitled: "Possibility ofinstitutional reform andrestructuring oftheSecretariat".
Therepresentative ofPakistan saidthathisdelegation hadnotyetdetermined itsposition
regarding theappointment oftheDeputy Directors-General. However, ithadsome concerns regarding
therationalization oftheSecretariat andlooked forward toafurther opportunity toconvey itsviews.
Therepresentative ofSingapore, speaking onbehalf oftheASEAN countries, saidthatMorocco
hadtouched onsome important issues. TheASEAN delegations looked forward tobeing consulted
bytheDirector-General ontheappointments oftheDeputy Directors-General.
Therepresentative ofMexico saidthattheconcerns raised byMorocco wereveryimportant,
andthattherationalization exercise wasonethatMembers would havetoundertake. However, if
hehadunderstood Morocco correctly assuggesting thatthisexercise becarried outatthesame time
astheDirector-General'sconsultationsontheappointmentsoftheDeputyDirectors-General,hebelieved
thatthiswould betooshort atimeperiod. Hisdelegation requested thatthetwoissues beclearly
separated.
TheChairman saidthatMorocco 'sproposal concerning institutional reform andrestructuring
oftheSecretariat could besubject toconsultations andplaced ontheAgenda ofthenextmeeting if
Morocco sowished.
TheGeneral Council tooknoteofthestatements.WT/GC/M/18
Page20
10. Scheduling ofmeetings ofWTO bodies
TheChairman,speakingunder"OtherBusiness",recalledthaton15November1995,theGeneral
CouncilhadadoptedguidelinesonarrangementsforschedulingofmeetingsofWTObodies(WT/L/106).
Theobjective hadbeentorationalize theprogramme ofWTO meetings inorder toensure theefficient
useofresources andtotakeintoaccount thedifficulties ofsmaller delegations. Onthebasis ofthese
guidelines, acalendar ofmeetings hadbeenprepared for1996inwhich themeetings ofallWTO bodies
hadbeenspread outasevenly aspossible overthe12months. Asimilar calendar hadbeenprepared
for1997. However, thecalendar established in1996hadbeenconsiderably modified overthecourse
oftheyear. Theincrease inmeetings hadputdelegations under considerable strain, andhadstretched
theSecretariat logistics forservicing meetings tothelimit. Asaresult, therehadbeenatotalof2,340
meetings intheWTO building in1996, ofwhich 751hadrequired simultaneous interpretation.
Furthermore, 349scheduled meetings, mostly withinterpretation, hadbeencancelled orrescheduled
in1996, atacostofSwF90,000 inthefirstsixmonths ofthatyear.
Anumber ofdelegations hadexpressed concern about theexcessive number ofmeetings and
theirability tofollow them. Although thishadmainly involved delegations withlimited resources
andlimited permanent staffinGeneva, evendelegations withmore ample resources hadfeltthatthe
guidelines inWT/L/106 hadnotbeenadequately adhered to,particularly asregards theconvening
ofinformal meetings. While ithadtoberecognized that1996 hadbeenparticularly difficult because
ofthepreparationsforthefirstMinisterialConference,theconcernsexpressedbydelegationsnevertheless
pointedtotheneedtofurtherintensifyeffortstorationalizeworkintheWTOthroughastricteradherence
tothese guidelines. Hetherefore intended tosuggest tothefuture Chairperson oftheGeneral Council
totakethismatter intoaccount inconsultation withchairpersons ofother WTO bodies, toensure that
theguidelines wereapplied tothefullest extent possible andtoseekpractical solutions totheproblems
encountered. Hesuggested thatitmight beworth considering whether anadditional mechanism for
thecoordination oftheschedules ofmeetings intheWTO wasnecessary.
Therepresentative ofTanzania saidhehoped that,inlightoftheproliferation ofWTO meetings,
dueaccount would betaken oftheplight ofsmall delegations. Hehoped alsothatmeetings ofWTO
bodies would notunduly overlap, andthatinscheduling these meetings account would betaken of
meetings inother major international organizations. Theguidelines forscheduling ofmeetings should
berespected andthecommitment embodied intheSingapore Ministerial Declaration tofacilitate the
fullparticipation ofsmall delegations inWTO meetings should beconcretized.
TheGeneral Council tooknoteofthestatements.
11. Election ofChairperson
Astheoutgoing presiding officer oftheGeneral Council, theChairman made astatement
(WT/GC(97)/ST/1).
TheGeneral Council thenunanimously elected Mr.Lafer (Brazil) totheChair.