./.   WORLD TRADE  
ORGANIZATION  TN/RL/19 
27 July 2006 
 
 (06-3614) 
Negotiating Group on Rules  
  
 
 
NEGOTIATING GROUP ON RULES 
 
Report by the Chairman to the 
 
Trade Negotiations Committee  
 
  
I. INTRODUCTION 
1. This report updates my May 2006 report to the Trade Negotiations Committee and indicates 
the steps taken, and the progress made, by the Group since that date. 
II. ANTI-DUMPING & SUBSIDIES & COUNTERVAILING MEASURES, INCLUDING 
FISHERIES SUBSIDIES 
2. With respect to anti-dumping and subsidies & countervailing measures including fisheries 
subsidies, the Group worked hard this spring and su mmer in order to be in a position to ensure that 
Rules would be ready to make its contribution to this  Round.  As indicated in the timetable circulated 
to this body in February, I had set a target of April for the receipt of any remaining text-based 
proposals in all areas, and a target of June for the Group to complete analysis of those proposals.  The 
Negotiating Group met intensively during the months of May and June to meet this goal, and although 
proposals continued to flow in after April, we succee ded with a series of sessions in the weeks of 1, 8 
and 29 May and again in the weeks of 12 and 26 June  to get through the material in front of us. 
3. During this period, the Group examined large num bers of proposals, almost exclusively on 
the basis of specific proposed texts, on anti-dumping.  It also received a significant if lesser number of proposals on horizontal subsidies disciplines, reflecting a welcome -- if somewhat tardy -- focus on this important area.  In the area of fisheries subsidies, it was a source of significant relief to me as Chairman that we finally received a critical mass of  four comprehensive textual proposals on fisheries 
subsidies, reflecting a range of approaches and le vels of ambition, as well as some helpful proposals 
targeted to specific issues such as special and di fferential treatment.  This allowed me to hold one 
round of serious Chairman's consu ltations in this important area. 
4. As you all doubtless remember, the Ministers at Hong Kong asked me to prepare and table 
consolidated texts that would represent the
 basis for the final stage of the negotiations.  Although I 
would have preferred that subsidies and fisheri es subsidies issues had advanced to the stage of 
comprehensive text-based proposals at the same pa ce as anti-dumping, in the end I consider that 
Members individually, and the Group collectively, did what was required in order to put me in a position where I could and would have tabled those consolidated texts in the areas of anti-dumping 
and subsidies and countervailing measures including fi sheries subsidies, had conditions elsewhere in 
the Round been right.  It was of course a profound disa ppointment to me, as it was to all of us, that 
this did not prove possible. 
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  III. REGIONAL TRADE AGREEMENTS 
5. Since early January this year, the Group's discussions have focused on a draft decision for the 
provisional application of a "Transparency Mechanis m for Regional Trade Agreements", in an effort 
to deliver a consensus text.  Such a text was forma lly approved at the Group's meeting on 10 July with 
no comments made.  The text has been transmitted to the TNC as document TN/RL/18. 
6. As for RTA systemic questions, the Group resume d negotiations in this  area after several 
months of inactivity due to lack of text-based prop osals.  A room paper recently distributed which 
outlines a "Checklist on RTA systemic issues for text -based negotiations " was the object of in-depth 
discussion by many Participants suggesting an inte rest by Members in further exploring the issues 
tabled and considered at previous Group's meetings (these are: the "substantially all the trade" 
concept, the length of transition periods, and the inclusion of special and differential treatment 
provisions in Article XXIV of the GATT 1994).  Partic ipants indicated that the scope of any future 
work in this area should be comprehensive (with  specific reference to Chair Roadmaps on RTAs 
systemic issues) and not lead to a dilution of current  provisions.  It has been reiterated that text-based 
proposals are at this point essential to advance the process. 
IV. CONCLUSION 
7. Obviously, next steps in Rules depend upon deve lopments not within my control.  While we 
await these developments, I would like to express my deep appreciation to delegations for the serious 
engagement and constructive efforts they made in  this Negotiating Group.  All delegations have 
shown real commitment to achieving good results in this area, and I believe that the Group would be 
prepared to resume its work at any appropriate ti me.  I have no doubt that, when that time comes, 
delegations will continue this a pproach and that the Rules area will be in a position to make its 
contribution to the successful conclusion of the Round. 
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