WORLD TRADE  
ORGANIZATION  TN/C/W/28 
15 August 2005 
 (05-3629) 
Trade Negotiations Committee 
21 and 28 July 2005 Original:   Spanish 
 
 
 
STATEMENT BY GUATEMALA 
  
 The following statement by the delegation of Guatemala, under agenda item 4, at the TNC meeting of 28 July 2005, is being circulated at the request of that delegation. 
 
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 Guatemala wishes to express its appreciation of the reports presented by the Chairmen of the 
Negotiating Groups.  We recognize the great efforts th at each one has made to facilitate agreements. 
  Today we could focus on the progress that has so  far been made, but we consider that we 
must rather focus on the outcome that we require  for the Ministerial Conference in December. 
 
 Guatemala sees the need for substantial progr ess in all the negotiations as parts of a single 
whole, believing that they must contain in their totality the development dimension.  As a small 
economy, we cannot imagine any outcome of the nego tiations or any advance that is not directed 
towards ensuring greater participation in world trad e and achieving concrete results in the form of 
provisions on special and differential treatment. 
 
 Having said that, I should like to pick up some of the points in the reports presented by the various chairmen of the negotiating groups.   In this connection, with regard to the negotia tions on agriculture, we should like first of all to 
express our appreciation of the efforts and the work of  Chairman Groser in directing the negotiations. 
 
 We should also like to associate ourselves with the views expressed by Brazil on behalf of the 
G-20 and of Australia on behalf of the Cairns Group,  to both of which groups our country belongs. 
  It is our view that very little time remains to  us after the summer break and there is much to 
be done if we are to be ready to achieve a text at the Ministerial Conference. 
  The subject of agriculture is complex and it is  for this reason that we understand the limited 
progress achieved, in view of what the Chairman ha s termed the interests of vital importance for the 
delegations. 
 
 It is extremely important that the three pilla rs of the negotiations advance simultaneously.  
Accordingly, we wish to emphasize that special and differential treatment has to  be included in all the 
subjects under negotiation.   
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  We should like to draw particular attention to the market access pillar, urging the 
development of a tariff reduction formula which ta kes account of the concerns of the small and 
vulnerable economies, the need to be flexible in the treatment and number of special products, and the 
new mechanism of safeguard measures.  
 With regard to the subject of food aid we should like it to be treated in a balanced fashion 
since it has a political and social connotation.  Guat emala recognizes the need for disciplines so as to 
prevent trade displacement and so as not compromise the humanitarian aspect. 
  We wish to reiterate our full readiness to  work constructively during the months which 
remain before the Ministerial Conference. 
  As regards the NAMA negotiations we wish to  express our appreciation of the work carried 
out by Ambassador Jóhannesson as Chairman of this  Negotiating Group.  We are grateful for his 
progress report, which summarizes the discussions which have taken place within the negotiating 
process on non-agricultural products. 
  In this connection, I wish to draw  attention to the following concerns. 
  We consider the tariff reduction formula to be the main element of these negotiations;  it must 
be complemented by the principle of less-than-full reciprocity and special and differential treatment, 
which are flexibilities which are included in Anne x B, paragraphs 2 and 8 of the Doha Work 
Programme.   We have emphasized in the most recent NAMA m eetings our concern at the approach of the 
simple Swiss formula:  it is our opinion that no d ecision should be taken which fails to state clearly 
the coefficients that will be applied within that form ula, in order to ensure that a coefficient does not 
act to the detriment of national industries, especia lly industries of the small economies.  We believe 
that the formula must take into account the various tariff structures of the Members.   Although our participation in this process is  constructive it must respond to national 
circumstances.  Accordingly, we cannot support a formula intended to modify the tariffs applied, 
since that would also affect other regional efforts that are being undertaken within the framework of a 
customs union, a process to which our government is committed.   We also request the inclusion of additi onal flexibilities for small economies such as 
Guatemala, which we believe should go beyond the provisions of paragraph 8. 
 
 We wish to reiterate our position that sectoral  initiatives must be on a voluntary basis and we 
regard as positive the progress which has been  made on the subject of unbound tariffs. 
  We consider it to be of great importance to  agree the methodology for the conversion of non 
ad valorem duties so as to simplify them in the schedules of Members.  The elimination of non-tariff 
barriers for the exports of the developing countri es is an essential objective to be achieved as an 
outcome of this Development round.   Finally, Guatemala considers that the leve l of ambition in these negotiations has to be 
balanced against the levels of access ach ieved in the agricultural negotiations. 
 
 With regard to the negotiations on services, the Chairman's report has provided us – the 
Members – with the opportunity to review the prog ress of the negotiations.  An analysis of such 
progress clearly shows the importance the Members att ach to the basis of negotiation contained in the 
provisions of the General Agreement on Trade in Se rvices, the Doha Ministerial Declaration, the  TN/C/W/28 
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 Guidelines for Negotiations and th e July package.  We believe that these guidelines provide the 
Members with a basic approach for preserving the flexibility of the Agreement and maintaining a 
balance at the conclusion of the negotiations.   During the evaluation of the negotiations, howev er, we noted that opinion was divided as to 
the progress of the negotiations on services.  Guatemala considers that greater efforts are required and 
more work needs to be done if substantial progress is to be made and if the negotiations are to achieve 
a high quality package which reflects the needs of th e Members and, in particular, the needs of the 
developing countries.  
 We believe that a tangible outcome of these negotiations should be to ensure greater 
participation by the developing countries in the world trade in services.   With regard to the need for complementar y negotiating approaches for the submission of 
tenders and applications, we repeat that Guatemal a favours the current approach and that any kind of 
complementary approach should comply with the guidelines for negotiations and flexibilities 
contained in the Agreement.   The negotiations on services must achieve a balance in the level of commitments in market access, but also as regards the formulation of discipl ines in domestic regulations and rules within the 
Agreement. 
 
 With regard to the negotiations on trade facilit ation, we share the view that the negotiations 
have so far proceeded in a satisfactory manner.   We recognize that the negotiations have show n the flexibility needed for the presentation of 
proposals and national experience, which we regard  as positive since it enable s all the Members to 
participate in the process.   We have noted that there are currently e nough proposals on the table in these negotiations.  
We consider that they should be directed towa rds seeking decisions which always take into account 
the needs and priorities of technical assistance and capacity building for the least developed countries 
and the developing countries. 
  In this connection, we support, and regard as positive, the approach used in the document 
prepared by the WTO Secretariat under the title of "Compilation of Proposals", which it is important 
to keep up to date on account of its usefulness for the negotiating process. 
 
 As regards the WTO technical assistance progr amme and its relation w ith other international 
organizations, we should like to emphasize the importance of organizing technical assistance and capacity-building events.  We believe that such me asures should continue and should be reinforced in 
order to support the developing countries during and after the negotiations.  
 With regard to the Negotiating Group on Rul es, we should like to draw attention to the 
mandate to that group in the Doha Ministerial Decl aration.  The Doha mandate assigns this group the 
difficult task of clarifying and improving the highly complex and detailed texts.  Guatemala considers 
that the rules contained in the existing Agreements reflect the efforts of many years of negotiations, 
and are the outcome of previous Rounds. 
 
 However, we believe that th e current disciplines prevent the small economies from gaining 
access to the mechanisms of defen ce against unfair trading practices. 
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  We view with particular concern the fact that an increasing number of Members, taking 
refuge in the ambiguity of the rules, have tran sformed these mechanisms of  legitimate defence into 
means of placing barriers in the way of free trade.   Both the Panels and the Appellate Body have interpreted the provisions of the Agreements, 
thereby creating a body of law which has grown and evolved from day to day.  However, these 
interpretations are of limited scope and reveal the urgent need to clarify and improve the relevant 
provisions of the Agreements.   In this connection, we believe that negotia tions in the Negotiating Group on Rules must be 
directed towards finding a balance between gran ting protection against unfair trading practices and 
avoiding the inappropriate use of existing mechanis ms that may operate to the detriment of the 
exports of other Members.   Guatemala is aware that the task before us is complex, but it is difficult for us to imagine an 
agreement on these matters outside the framework of an overall outcome. 
  We share the view of the Chairman of the Negotiating Group on Rules that it is difficult to fit such concepts as "first approximation" or "m odalities" into the context of these negotiations. 
  On the other hand, effective negotiations that achieve concrete results will be reflected in a 
"negotiating text".  We are aware that, given the particular dynamics of the Negotiating Group on 
Rules, we must await the right time to obtain this text and ensure its viability.   In Guatemala's view this "right time" is very  close and we urge all the Members to seize the 
opportunity.  We believe that from now until the Mini sterial Conference all the meetings should focus 
on that objective. 
  With regard to the report of the Chairman of  the Council for TRIPS on the establishment of a 
multilateral system for the notification and registra tion of the geographical indications of wines and 
spirits, Guatemala wishes to reitera te its support for the establishment of  a system which facilitates the 
protection of such indications, but which at the same  time preserves the terr itoriality of intellectual 
property rights, in such a way that the Members ma y establish in their legislation the most suitable 
means of fulfilling their obligations, in conformity  with their own legal system.  Accordingly, 
Guatemala was a co-sponsor of the proposal submitted by Australia and other Members. 
  After this review of some important questions  for my delegation, I should like to express my 
country's determination to achieve substantial progress in these negotiations and our commitment 
to 
work in conjunction with others so as to be able  to transmit to the Ministers concrete progress of 
benefit for all Members of this Organization  at the next Ministerial Conference  to be held in Hong 
Kong, China.   Guatemala welcomes the recent approval in the United States Congress of the Free-Trade 
Agreement between Central America, the Dominica n Republic and the United States, as mentioned by 
Ambassador Allgeier.  Guatemala believes that the approval of that Agreement strengthens the 
objective and aspirations of this Organization.   Finally, I should like to thank you for your wo rk and wish you the greatest possible success in 
your new activities.  We trust that we shall continue to work together in other forums directly related 
to the success of our work here.  
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