JOB/GC/186  
 
9 May 2018  
(18-2821) Page: 1/3 
General Council    
 
REPORT BY THE DIRECT OR-GENERAL ON THE INFOR MAL TNC  
AND HEADS OF DELEGAT ION MEETING  
MONDAY, 7 MAY 2018  
1.1.  We last met in this format on 5 March. Since then I have conducted bilateral visits to Brazil, 
Portugal, the UK and the US, in each case meeting with senior government representatives  
1.2.  I also visited India for bilateral meetings and to take part in the inf ormal ministerial meeting 
in New Delhi. It was a very constructive meeting. I would like to take this opportunity once again 
to extend my thanks to India for organizing the meeting and for taking the initiative so soon after 
MC11. I will leave it to Ambass ador Deepak to report in more detail if he so wishes.  
1.3.  In recent weeks I have also attended the UN Chief Executives' Board for Coordination 
meeting and the Commonwealth Business Forum – both of which took place in London. And I 
attended the spring meetings of the IMF in Washington DC.  
1.4.  In addition, I met with the Secretary -General of the Pacific Islands Forum Secretariat Dame 
Meg Taylor, and I conducted various bilateral meetings with ministers and ambassadors in Geneva, 
and on the sidelines of other events.  
1.5.  As ever, I have also maintained close contact with General Council Chair and the Negotiating 
Group Chairs. I convened a meeting with all of the Chairs on Monday last week.  
1.6.  Over recent weeks I have participated in a range of other events, including:  
 A sess ion to mark International Women's Day at the WTO on 8 March.  
 The open -ended meeting of the Informal Dialogue on Investment Facilitation for 
Development on 23 April, at the invitation of the organisers.  
 And the symposium on Trade and Natural Disasters on 26  April.  
 
1.7.  I'd also like to highlight briefly another event which is actually yet to happen.  
1.8.  You will recall that in 2016 we were approached by the B20 and the ICC to facilitate a private 
sector discussion here at the WTO. We have now been approached to fa cilitate a follow -up event, 
which is going to take place at the WTO on 7 June.  
1.9.  The organizers intend to offer an opportunity for Member s to engage and to hear the 
outcomes of these discussions. They will soon provide you further details on all of this.  
1.10.   Turning to the substance of my engagements, the predominant themes in my bilateral 
discussions have been:  
 First, strong support for the WTO.  
 Second, a desire to re -energize our discussions and negotiating work.  
 And, third, serious concerns on issues of maj or economic and systemic importance – 
specifically, rising trade tensions and the blockage in appointments to the Appellate Body.  
 
1.11.   From my conversations it is clear that these concerns are very widely shared among the 
Member ship. JOB/GC/186  
 
- 2 - 
 
  1.12.   As long as tensions persi st between major trading partners, the risk of a serious escalation 
remains very real. This poses a significant threat to the global economy.  
1.13.   I announced our latest trade data and forecasts on 14 April, and looking purely at the 
economic factors the outlook is quite positive. Trade is growing in every region around the world.  
In 2017, world merchandise trade grew by 4.7%.  In 2018, we are forecasting growth of 4.4%.  
And in 2019, we expect that it will be around 4.0%. This would be the strongest sustain ed period 
of trade growth since the 2008 crisis.  
1.14.   But all of this could easily be undermined by an escalation in the current situation.  
1.15.   We must do all we can to avoid going down this path, and taking measures that are difficult 
to reverse.  
1.16.   When trade rest rictions are pursued in this way it can threaten growth and job creation 
everywhere. Today two thirds of global trade takes place through global value chains - and this 
clearly illustrates the potential for knock -on effects. And in these situations it is o ften the smaller 
players and the poorest communities that stand to lose the most. Resolving these issues is in 
everyone's urgent interest . 
1.17.   I am continuing to talk to Member s, and urge all sides to be very cautious in how they 
proceed.  
1.18.   It is positive that these matters are being taken up in the regular bodies of the WTO. The 
issues have been discussed in the Safeguards committee and in the Council on Trade in Goods, for 
example, as well as in the General Council. In addition, Member s continue to bring their  disputes 
to the WTO.  
1.19.   The system was built to resolve these problems in a way that prevents further escalation – 
and so it is right that Member s are using it. I believe that the WTO has a crucial role to play here – 
as we have done many times before.  
1.20.   I also encourage Member s to continue pursuing their bilateral contacts, to complement 
multilateral processes. The important thing is that conversations are taking place, and that 
Member s are trying to find solutions.  
1.21.   It is also of utmost importance that Membe rs work to resolve the impasse regarding 
nominations for the Appellate Body.  
1.22.   If we do not find a solution here – whatever shape that solution may take – we could 
severely compromise the whole multilateral trading system.  
1.23.   I can't emphasize enough the syste mic importance of this point.  
1.24.   So again I urge Member s to engage and talk to each other in a solution -finding mode.  
1.25.   I've been conducting my own conversations with Member s – in Geneva and in capitals. But I 
regret to report that I have no new information in dicating that we could see changes to the current 
scenario in the foreseeable future. We are no closer to a solution than before. And as yet I do not 
see a promising path forward.  
1.26.   Of course this doesn't mean we stop working. On the contrary we must redouble our efforts 
here. This should be of great concern to anyone who values the system. And therefore I call on all 
Member s to play their part in resolving the situation.  
1.27.   Now, let me  turn to our negotiating work.  
1.28.   I am pleased that all negotiating group chairs have been appointed and are now in place. I 
will refrain from commenting further on each area of work, as the Chairs will shortly be reporting 
themselves.  JOB/GC/186  
 
- 3 - 
 
  1.29.   We are still in early s tages of our work after Buenos Aires, but I think it is very positive to 
see Member s meeting and engaging. And I think that we need to maintain a sense of urgency. 
This applies particularly in areas where we have specific deadlines, such as in fisheries su bsidies – 
but also in areas where we are already behind the schedule that Member s set themselves, for 
example on Public Stockholding.  
1.30.   I will remain closely involved in this work, and am ready to assist the Chairs in any way that 
I can.  
1.31.   I expect that toda y Member s may want to report on these areas and also on any of their 
own initiatives, which may be happening outside the Negotiating Groups.  
1.32.   I have heard a few questions raised about how the processes around the various Joint 
Initiatives are going to deve lop – and what role the secretariat is going to play.  
1.33.   I'm in touch with Member s on this and have been explaining my perspective.  
1.34.   In terms of how the initiatives evolve, that is a matter for the proponents to determine. It is 
truly Member -driven. I have s imply urged those Member s involved to be as open, transparent and 
inclusive as possible, and to be as respectful of other Member s' positions as possible.  
1.35.   Ultimately, how open, how transparent and how the work in those groups will be conducted 
is entirely in the hands of proponents. I do believe however that inclusivity and transparency 
should be pursued to the extent possible.  
1.36.   In terms of the S ecretariat, my instruction has been to treat these initiatives in precisely the 
same way as any other request from  Member s. What is fundamental is that this support should be 
entirely on a demand basis.  
1.37.   So, as you can see, there are many challenges before us and we all need to respond in the 
best way we can. What it important is to keep engaged in a solution -finding m ode.  
1.38.   That concludes my report.  
__________