WORLD TRADE
ORGANIZATIONWT/GC/W/139
27 January 1999
(99-0306)
General Council Original:  English
PREPARATIONS FOR THE 1999 MINISTERIAL CONFERENCE
General Council Discussion of the Singapore Work Program Issues
and Other Issues of Concern to Members Pursuant to Paragraphs 9(b) and (d)
Communication from the United States
The following communication, dated 27 January, has been received from the Permanent
Mission of the United States.
_______________
This informal session of the General Council will be Members’ first opportunity to identify
issues of concern with respect to paragraphs 9(b) and (d)  of the May 1998 Ministerial Declaration.Paragraphs 9 (b) and (d) respectively require the Council to prepare recommendations for the 1999
ministerial concerning “...other possible future work on the basis of the work program initiated at
Singapore; and recommendations arising from consideration of other matters proposed and agreed to
by Members concerning their multilateral trade relatio ns.”    This meeting marks the completion of the
initial “issue identification” exercise undertaken by Members to outline issues that should be the
subject of preparations for the Ministerial Conference.
1   The preparatory process devised in May is
flexible enough to accommodate additional issues being raised as the process moves forward.  TheUnited States presents its views based on our on-going domestic consultations.
In February, the Council will set the schedule for submission of detailed proposals by
Members so that recommendations can be developed on the scope, structure and time frames of
further work to be agreed at the WTO’s Third Ministerial Conference.  In this regard, the UnitedStates looks forward to the convening of the Hi gh Level Symposium on Trade and the Environment
and Trade and Development in March as an integral part of the preparatory process for the
Ministerial.  Such discussions will provide important background to the Council’s consideration of
issues in these areas.  Finally, the General Council will receive an interim report in March on
                                                     
1In WT/GC/W/107, the United States raised issues arising from the implementation of
existing Agreements and commitments (Agriculture, Sanitary and Phytosanitary Measures, TechnicalBarriers to Trade, Services, Trade-Related Intellectual Property (TRIPS), Customs Valuation, Rules
of Origin, Preshipment Inspection, Market Access/Tariffs, Trade-Related Investment Measures
(TRIMS), Subsidies and Countervailing Measures, and Textiles and Clothing).  WT/GC/W/115,
submitted by the United States in November, addressed the issues subject to further negotiation post-
1999 (agriculture and services) and the built-in agenda work mandated in the areas of  TRIPS,Subsidies and Countervailing Measures, TRIMS,  and the Trade Policy Review (TPR).  The
e/commerce work program is to be completed in July 1999 and is expected to feature as an element of
the forward work program in the WTO.WT/GC/W/139
Page 2
electronic commerce, pursuant to decisions taken as a result of the May 1998 Ministerial Decision on
Electronic Commerce.
General Council consensus has emerged that the work already assigned to the WTO, either
for negotiations or review, must go forward on sc hedule and that existing WTO Agreements must be
implemented fully and work programs respected.  Two areas are addressed in this paper: (1)
identification of substantive negotiating or work program issues for the WTO’s agenda; and (2)
institutional improvements in the area of openness and consultation with other international
organizations and NGOS.  This latter element should facilitate development of consensus for the
ministerial agenda and the WTO’s future operation.  Attention to these important institutional
concerns will lead to a stronger trading system that shuns resort to bribery and corruption in
international trade transactions and promotes the rule of law.
I. SINGAPORE WORK PROGRAM ISSUES - PARAGRAPH 9(B)
A. WORKING GROUP ON TRADE AND INVESTMENT
In its earlier submissions, the United States raised a concern in respect of the timely
implementation by all WTO Members of the TRIMS Agreement’s obligations and this issue continuesto preoccupy our views on investment-related measures in WTO.
The Singapore-originated  Working Group’s ex amination of the relationship between trade
and investment has been both interesting and info rmative.  The Working Group’s consideration of a
full range of investment issues has been valuable to identify the concerns of Members.  The extensionof the Working Group’s analytic work should provide the opportunity to determine what, if any,
further work should be recommended in this area. Given the decision to extend the mandate of the
Working Group, the United States reserves the right to revert later to the issue of whether it would be
appropriate to forward specific recommendations to the Ministerial Conference in this area of our
work.
B. W
ORKING GROUP ON TRADE AND COMPETITION POLICY
This Working Group has provided the first forum in which WTO Members have been able to
explore broadly the concepts of competition policy and to consider how competition policy and the
work undertaken by competition policy officials relates and contributes to WTO principles and
objectives.  The Working Group’s consideration of the issues to date has been valuable to identifying
the concerns of Members, and its extension should help further consideration to determine what, ifany, further work should be recommended in this area.   Pending the outcome of the more tightly
focused work to be undertaken in the Group, the United States believes it would be premature to
discuss possible recommendations to the Ministerial Conference.
C. W
ORKING GROUP IN TRANSPARENCY IN GOVERNMENT PROCUREMENT
At Singapore, Ministers established a Working Group on Transparency in Government
Procurement and mandated that it conduct a study on transparency and develop elements for an
appropriate agreement.  The Working Group currently is poised to make a timely and  important
contribution to the broader effort underway in international organizations to establish principles of
transparency, and to promote regulatory reform and good governance in government decision making.
The financial crisis has underscored the urgent need for all countries to establish an
environment where procurement decisions are made on the basis of ensuring the best value for
money, utilizing a transparent set of procedures .  Work is sufficiently advanced to produce a
multilateral transparency agreement for Ministerial approval in 1999.  Such an achievement would beWT/GC/W/139
Page 3
a major contribution to national and international efforts to establish an open and competitive
environment for governments to make procurement decisions.  This goal, we believe, should be
broadly shared as a means of: (1) addressing irregularities and misallocation of  resources to the
detriment of important social needs; (2) promoting fiscal and financial stability; and (3) minimizing
the potential for bribery and corruption.
The United States recognizes that some trading partners may be concerned about the
implications of such an agreement for work unde rway in the WTO regarding improvement of the
Agreement on Government Procurement, or the work program established under the GATS auspices.
Specifically, we know that some question whether a multilateral transparency agreement would
impose requirements beyond transparency (e.g., the elimination of national preference policies).
These are not appropriate elements for a transparency agreement.   Moreover, completion of atransparency agreement should not prejudge positions with respect to other WTO activities in the area
of procurement.
− The Council should support Working Group efforts to develop an agreement for Ministerial
approval in December 1999, recognizing that such a free-standing multilateral agreement
would neither prejudge in any way participation in the plurilateral Government ProcurementAgreement (GPA), nor call into question the maintenance of national preference policies –
effectuated through transparent procurement methodologies – that a Member may deem
necessary to achieve particular social or economic development goals.
D. T
RADE FACILITATION
The United States agrees with others that the Council’s recommendations to the Third
Ministerial Conference should address the WTO’s contribution to resolving problems of  “trade
facilitation.”  This is based on our consultations domestically and our assessment of the work
conducted thus far under the auspices of the Council  on Trade in Goods (CTG).  The CTG  has held a
seminar and a series of informal discussions -- including with the private sector and other
international organizations –  in order to identify problems of real concern and the activities underway
in other international organizations.  A wide range of barriers was identified,  including customs-
related difficulties, such as barriers presented by the ways in which preshipment inspection regimes
presently operate, arbitrary customs valuation which already is illegal under the Valuation Agreement,
difficulties for express deliveries, the general absence of transparent procedures, unwarranted delaysin getting goods released, and the potential for corruption in the absence of transparency and
automation in customs administrations.  The CTG’s next discussion will be critical in the
development of the issues.  It will focus on relevant elements of various WTO Agreements, the role of
electronic commerce and the link between economic development and the trade facilitation
environment.
The arguments for additional WTO action in this area are compelling, given the undeniable
link between economic development and improvements in the trade facilitation environment.  In a
global economy that operates with just-in-time delivery and just-in-time distribution, a transparent
system that allows rapid release of goods is a necessity for expanding economic output.
Manufacturers need inputs, and investors need to k now that sourcing plans and operations will not be
subject to interference because of difficulties in customs clearance.  Improvements in theadministration of customs regimes address the potential for arbitrary decision making and corruption.
− The Council should ensure that any recommendations for new work on trade facilitation will
build on and complement, rather than delay, implementation of  trade facilitation-relatedelements that are already within the WTO, such as Articles VIII and X of the GATT 1994, theWT/GC/W/139
Page 4
Agreements on Customs Valuation, Rules of Origin, Preshipment Inspection and Technical
Barriers to Trade (Standards).2
− The Council should examine whether its recomm endations should be limited to the classic
definition of trade facilitation –  which refers to the manner in which the trade transaction
process for goods is administered by governments, particularly customs administrations -- orbe more broadly focused.
II. CONSIDERATION OF OTHER MATTERS TO BE AGREED -- PARAGRAPH 9(D)
A. I
NDUSTRIAL MARKET ACCESS LIBERALIZATION
The United States is prepared to work with other delegations to consider how further
industrial tariff negotiations could be accommodated in the WTO’s forward agenda and the
appropriate modalities for undertaking further negotiations.3    The United States supports the
submission and presentation made by New Zealand, on behalf of APEC members, which challenges
WTO members to finalize, by the time of  the 1999 Ministerial, the liberalization initiatives in the
areas of: chemicals, environmental goods, energy-related goods, fish, forest products, gems and
jewelry, medical and scientific equipment, and toys.  We look forward to consulting with other WTO
Members on the details of these initiatives, and on a longer term negotiating program for tariffs, post-1999.
− The Committee on Market Access should advise the Council of its progress to date in
preparing for further market access negotiations.
− WTO Members or accession applicants that are not APEC Members, should advise the
Secretariat and the New Zealand Representative of their interests in the initiatives outlined in
the APEC submission.
B. T
RADE AND LABOR STANDARDS
Ministers, acting on behalf of the Ministerial Conference at Singapore in 1996,  renewed their
commitment to the observance of internationa lly recognized core labor standards. They
drew attention to the work of the Internationa l Labor Organization (ILO) and the collaboration
between the WTO and ILO Secretariats.  While the Singapore Declaration was an important initial
step, more attention to the intersection of trade and labor standards is warranted as governments and
industries wrestle with the complex issue of globalization and adjustment.
Since Singapore, there have been important developments in the ILO on trade and core laborstandards and child labor, among other issues.  Ministers at Singapore acknowledged that economic
growth and development fostered by increased trade and further trade liberalization contribute to the
promotion of core labor standards.
− The Council should recognize that important trade-related issues arising out of the effort to
promote observance of core labor standards are currently under examination in the ILO,
OECD and other fora, but have thus far not been considered by the Members of the world’s
                                                     
2  See WT/GC/W/107 regarding action needed to ensure effective implementation of these
Agreements.
3WT/GC/W/107 focused on the issues in the Market Access Committee related to the loose-
leaf program and the development of the Integrated Data Base (IDB), both of which are essential to
exploring various approaches to further broad-based tariff liberalization.WT/GC/W/139
Page 5
main trade organization, the WTO.  We believe that a recommendation should be forwarded
to the Ministers for the establishment of a forward work program in the WTO that would
address trade issues (e.g., abusive child labor, the operation of export processing zones, etc.)
relating to labor standards and where Members of the WTO  would benefit from further
information and analysis on this relationship and developments in the ILO.  Provision shouldbe made to address this important relationship at the High Level Meeting on Development in
March, drawing upon available analysis.
C. I
NSTITUTIONAL ISSUES : STRENGTHENING THE FUNCTIONS OF THE TRADING SYSTEM
A number of systemic issues require Council action as part of the preparations for the 1999
Ministerial, beyond the issues raised in the context of Dispute Settlement and the review that is due to
conclude in July.4  They include enhancing the transparency of the WTO and its operations, providing
for appropriate interaction with international or ganizations and NGOS before, during, and after the
Third Ministerial Conference, and ensuring that provision is made for the participation of applicants
in the process of accession to follow developments  in the forward work program.  Council attention
now should set the stage for systemic reforms in the WTO on an on-going basis as part of the post-
1999 agenda.  There are currently 133 WTO members, with accessions pending for another 31.  Thissubstantial increase in membership anticipated over the next few years along with the expansion of
the range of issues the WTO addresses should renew consideration of a management board, as part of
the post-1999 agenda.
1. Transparency/Openness of the WTO
(a) Access to Information:
The United States is committed to obtaining improvements in the WTO’s operation to address
the lack of transparency that is limiting both opportunities and support for trade expansion and the
WTO.  It is possible to address these problems while respecting the government-to-government
character of the WTO and its operations.  Consultations to date reveal two important concerns:(1) the perceived lack of commitment by Members to making the WTO’s operation more open and
transparent is a major obstacle to building public support for further trade liberalization and
confidence in the WTO; and (2) lack of information is limiting opportunities to engage in trade (such
as: information that is not provided despite the fa ct that it is required by existing agreements;
information that would expedite customs transactions and procedures; procurement bids; or
information that would address the interests of potential investors about the country’s trade regime).
− The Council has before it a draft decision on circulation and derestriction of documents  that
should be adopted at the February 1999 General Council meeting.  The decision provides formore timely access to WTO documents, including the release of the findings and conclusions
of the dispute settlement reports as soon as they are available in all three WTO languages.
Urgent action in this area is needed to restore credibility to the WTO dispute settlement
process.
5
− The United States renews its earlier suggestion that Members consider whether in some cases
the transparency and notification provisions could be revised to be more responsive to the
                                                     
4 The United States presented its views on the main issue to be addressed in the DSU review
in Job No. 5835, DSU/12 (29 October 1998).
5  The decision would not, in any way, modify the DSU.  Provisions on circulation and
derestriction were agreed in July 1996; the Council decision would build on this decision.WT/GC/W/139
Page 6
needs and interests of stakeholders while being less of an administrative burden to those
providing information.
− The review of the Trade Policy Review Mechanism, to be concluded before the end of 1999,
provides an excellent, on-going means to consult, share information and maximize resources.
(b) Relations with Nongovernmental Organizations:
The WTO has made important improvements to ensure better communications with the NGO
community in a variety of areas.  There is now an Internet WEB page where information can be
shared and an active outreach program undertaken by the Director General.  The two High Level
Meetings to be convened in March will have the be nefit of NGO participation.  It is appropriate that
the WTO explore various types of cooperation with the NGO community as we prepare for the
Ministerial, drawing on the experiences of national governments and their various approaches, as wellas other international organizations.
− We encourage continued efforts by the WTO Secretariat and the Members to explore various
approaches to consultations with stakeholders.  This should enable the Council to makerecommendations with respect to the organization of the Ministerial Conference and
institutionalization of consultative mechanisms for the WTO.
− WTO Members should be invited to summarize their various consultative programs and
mechanisms and distribute this information by the time of the formal General Council
meeting in February.
(c) Relations With Other International Organizations:
The General Council has pending before it requests for observer status from a number of
international organizations.  Granting observership should facilitate cooperation between the WTO
and these organizations and their Secretariats.  By way of example, the work of the OECD in the field
of agriculture was and remains important to the Agreement on Agriculture.  Similarly, the OECD’s
Convention on Bribery
6, in addition to the work on regulatory reform and governance principles are
relevant to the WTO’s work in a number of areas, including in trade facilitation and transparency in
government procurement.  The ILO has devoted substantial analytical effort to the issues of
development and labor standards, as noted by Ministers in Singapore.  UNCTAD continues to support
work on a variety of issues before the WTO.  Moreover, the financial crisis brought into focus the
important role that adherence to WTO rules, fundamental principles of transparency and due processplay in the restoration of economic growth in WTO Member and applicants’ economies.
With respect to the International Financial Institutions, pursuant to the Marrakech
Declaration, the Heads of the IMF, World Bank and WTO (and their staffs) have initiated activities to
broaden and deepened the process and substance of coordinating international economic policy
making.
7The Director General has already initiated a program of closer cooperation with the
                                                     
6  The OECD Convention on Combating Bribery of  Foreign Public Officials in International
Business Transactions, signed on December 17, 199 7, includes all OECD Countries (Australia,
Austria, Belgium, Canada, Czech Republic, De nmark Finland, France, Germany, Greece, Hungary,
Iceland, Ireland, Italy, Japan, Korea, Luxembour g, Mexico, Netherlands, New Zealand, Norway,
Poland, Portugal, Spain, Sweden, Switzerland, Turk ey, United Kingdom and the United States, plus 5
non-member countries (Argentina, Brazil, Bulgaria, Chile and the Slovak Republic).
7 WT/GC/13 provided a report by the Director General on coherence, including the
identification of a number of mutually supportive activities to support the WTO.WT/GC/W/139
Page 7
International Financial Institutions. The Council needs to agree on an appropriate methodology to
address this problem, taking into account the issue of reciprocity, so that the WTO and its Members
may benefit from the work and expertise of these international organizations as we develop the
WTO’s forward agenda.   This may lead to additi onal agreements regarding cooperation and increased
liaison activity.
− The Chairman of the Council, as a matter of priority, should undertake consultations so that
the upcoming General Council meetings can take action to expand the number of international
organizations that may be observers to the WTO Councils and Committees. In the view of the
United States, progress can be made in this regard if we can agree that, as a starting point
WTO should offer observer status where requested:  (a) to all intergovernmental
organizations with universal membership; and (b) to those organizations or specific agencies
within organizations which are demonstrably principally economic in nature.
− Recognizing that we remain in the midst of the most serious international financial challenge
since World War II and the urgent need to address the issue of coherence, Members should
strengthen the WTO’s relations with the Inte rnational Financial Institutions (IFI’s) and
explore a range of options that would support closer cooperation and increased liaison
activity.
2. Trade and Environment
The Preamble of the WTO Agreement sets forth sustainable development as a central
objective of the work of the WTO.  This objective must be taken into account in all aspects of our
activities.  The Committee on Trade and Environment has done important work in identifying andexploring issues that arise at the interface between trade and environment.  Related issues have also
arisen in various other WTO Committees, demonstrating how closely the work of the WTO relates to
environmental issues.  We look forward to the High Level Symposium on Trade and Environment
which we anticipate will provide fresh and valuable input to our work in this area and help in framing
a vision for future work.
− The Council should emphasize that the WTO’s forward agenda must contribute to sustainable
development, including in particular maintaining and improving the levels of protection of the
environment.  It should also affirm that nothing in the forward agenda of the WTO will in any
way compromise the rights of countries to protect health, safety and the environment from
risk at levels which they deem appropriate.  The Council should emphasize the need forcontinued cooperation and coordination between trade and environmental policy makers. The
forward agenda must take into account the lessons  that have been learned with respect to trade
and environment in the CTE and other relevant committees of the WTO, and will benefit
from the important discussions that will take place in the High Level Symposium on Trade
and Environment.
3. Technical Assistance
In the discussions regarding implementation, the United States identified a number of areas
where further technical assistance is required and available, but Member governments do not appear
to be taking advantage of such resources to fulfill the desired results of facilitating implementation.
This continues to be a major concern.  A second area of concern relates to the increasing need of
countries to develop the institutional infrastructure to maintain an open, transparent, WTO-consistenttrade regime.WT/GC/W/139
Page 8
The Committee on Trade and Development has played an important role in monitoring the
technical assistance activities now underway, in particular for the least-developed countries.
Although the WTO Secretariat has signed cooperation agreements with a number of international
organizations, the WTO Secretariat estimated that it spent over 20% of its budget on technical
assistance activities last year.  Rationalization and coordination of the technical assistance provided toMembers and accession applicants are needed.  The materials prepared for the High-Level Meeting on
Least Developed were helpful to governments as they designed their own national technical assistance
programs.
− Beyond the immediate needs related to implementation, the WTO should reevaluate its
program of technical assistance in light of programs provided by other internationalinstitutions, and at the national level, with the aim of taking a more integrated and coordinated
approach among members and institutions.
__________