RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/GC/M/120 
21 August 2009 
 (09-3960) 
General Council 
26-27 May 2009  
 
 
 
MINUTES OF MEETING 
 
Held in the Centre William Rappard  
on 26-27 May 2009  
 
Chairman:  Mr. Mario Matus (Chile)  
 
  Prior to the adoption of the Agenda, Mr. Mark  Muller, Geneva State Councillor in charge of 
the Department of Constructions and Information Technologies, made  a statement regarding the WTO 
building project.
1  Several delegations and the Director-General expressed their appreciation for the 
report and their support for the project.   Subjects discussed
: Page  
 
1. Report by the Chairman of th e Trade Negotiati ons Committee ..........................................2  
2. Work Programme on Small Economies – Report by the Chairman of the Dedicated 
Session of the Committee on  Trade and Development ........................................................19  
3. Non-recognition of rights under Article XXIV:6 and Article XXVIII of GATT 1994 
– Communications from Honduras and Guat emala – Statement by the Chairman ........20  
4. Seventh Session of the Ministerial Conf erence – Communication from Uruguay............23  
(a) Date and Venue................................................................................................................. ........23  
(b) Election of officers........................................................................................................... .........23  
5. The economic and financial crisis and its repercussions on trade......................................28  
6. Possible further action by WTO Members in response to the financial crisis – 
Communication from Chile, Colombia, Hong  Kong China, Israel, Korea, Malaysia, 
Mexico, Morocco, New Zealand, Norway, Pa kistan, Peru, Singapore, Switzerland, 
Thailand and Turkey – Communication fr om Colombia, Costa Rica, Hong Kong 
China, Malaysia, Mexico, New Zealand, Norway, Pakistan, Peru, Singapore, Switzerland, Turkey and Uruguay........................................................................................39
 
7. Waivers under Article IX of  the WTO Agreement..............................................................50  
(a) United States – Caribbean Basin Economic Recovery Act – Request for renewal of 
waiver......................................................................................................................... ...............50  
(b) United States – African Growth and Op portunity Act – Request for waiver ...........................51  
(c) United States – Andean Trade Preference Act – Request for renewal of waiver .....................51  
                                                      
1 The statement is reproduced in the Annex to the present records. WT/GC/M/120 
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  (d)
 Procedures leading to the verification and certification of Harmonized System 1996 
changes relating to the schedules of 64 Members – Draft decision..........................................54  
(e) Introduction of Harmonized System 1996 changes into WTO schedules of tariff concessions – Requests for ex tensions of waivers....................................................................54
 
(i) Argentina ...................................................................................................................... ............54  
(ii) Panama ......................................................................................................................... ............54  
(f) Preferential tariff treatment for least-developed countries – Request for extension of 
waiver......................................................................................................................... ...............55  
8. International Trade Centre UNCTAD/WTO – Report of the Joint Advisory Group 
on its Forty-second Session .................................................................................................... 56 
9. Committee on Budget, Finan ce and Administration ...........................................................57  
(a) Report of the Committee on its meeting of March 2009 ..........................................................57  
(b) Report of the Committee on its meeting of May 2009 .............................................................58  
10. WTO Pension Plan – Election of an alternate to the Management Board – Proposal 
by the Chairman of the General Council..............................................................................59  
11. Accession of Developing Countries – Statement by Gabon on behalf of the Informal Group of Developing Countries.............................................................................................59
 
12. United States' export subsidies – Statement by Brazil on behalf of the G-20....................60  
13. Appointment of the Deputy Directors-General – Statement by the Director-General.....66  
14. Chairmanships of the Working Parties on the Accession of Afghanistan, Iraq, Lao PDR and Samoa .................................................................................................................. ....66
 
15. Administrative Measures fo r Members in arrears ..............................................................67  
ANNEX – Statement by Mr. Mark Muller, Ge neva State Councillor in charge of the 
Department of Constructions a nd Information Technologies .......................................68 
 
 1. Report by the Chairman of the Trade Negotiations Committee 
1. The Chairman
 invited the Director-General, as Chairman of the TNC, to report on the TNC's 
activities since his last report to the Council. 
2. The Director-General said2 that since his report to the General Council in February, the 
economic situation had continued to worsen for all Members.  Trade had beco me a casualty of the 
crisis.  The WTO forecast showed that world trade would contract by nine per cent in 2009, driven 
lower by the collapse in global demand and by shorta ges of trade finance that had created supply-side 
constraints to export growth, in particular in ma ny developing countries.  No one could foresee how 
long this recession might last, or how deep its conse quences would be on Members' social fabrics, but 
there could be no doubt either about the fragility of the world economy or the central importance of 
trade in the recovery.  The current global economic  crisis had taken centre stage at a number of 
international meetings he had atte nded recently, and he wished to share some of his impressions and 
conclusions from these gathering, as well as from some of his recent bilateral meetings.  He also wished to provide Members with his sense of the way ahead in the Doha Round over the next couple 
of months. 
                                                     
 
2 The Director-General's statement was su bsequently circulated as JOB(09)/47.  WT/GC/M/120 
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  3. As Members knew, he had participated in the G-20 meeting in London in early April.  The 
focus and agenda of the meeting had understandably been geared towards finding solutions to the 
immediate challenges facing the international fina ncial system.  However, he had been very 
encouraged by the sensitivity of th e G-20 leaders to the importance of international trade in general, 
and the multilateral trading system in particular, in terms of boosting aggregate demand and restoring 
sustained growth globally.  In his intervention to the G-20 he had stressed four main points.  First, he 
had stressed the importance of keeping trade open a nd fighting against protectionist pressures.  He 
had emphasized the need for leaders to strongly su pport the WTO monitoring mechanism of trade and 
trade-related measures taken in the context of the crisis, which provided Members with regular 
updates, the next one due before the end of June .  Second, he had stressed the importance of 
continuing to open trade by concluding the Doha Round.  He had explained the important progress 
already made in what was eff ectively the most ambitious multilateral trade deal ever, and had 
encouraged participants to engage  vigorously in tackling the few remaining challenges.  Third, he had 
also stressed the importance of keeping the Aid fo r Trade promises, in particular since they would 
allow many of the poorest countries to prepare their exit from the crisis by investing in improving 
their productive capacity.  Finally, he had also raised the importance of ensuring availability and 
affordability of trade finance to keep oiling the wheels of trade.  All would have seen the G-20 
Communiqué.  In addition to rejecting protectionism, committing to provide funding for trade finance, engaging to maintain Aid for Trade pledges and committing to conclude the Round, leaders had sent 
an important signal to the world that trade and the WTO remained at the heart of a broader solution to 
this crisis.  This commitment had been further em phasized in a number of bilateral meetings he had 
had during the G-20 meeting. 
4. This renewed focus and political attention to trade and the Doha Agenda had been more 
recently in evidence at the spring meetings of the World Bank and the IMF, where his participation in 
the International Monetary and Financial Comm ittee and the World Bank Development Committee, 
as well as in meetings with a number of Minister s, had confirmed the momentum which had been 
building in recent weeks.  As the ILO had recently stat ed, it was clear that the full social impact of the 
current crisis was, unfortunately, still to come, and it would inevitably create more political pressures 
on the multilateral trading system.  However, it was precisely at this time, when protectionist temptations flourished, that the value of the multilate ral trading system was all the more apparent.  If 
there was one consistent message he could take out of his meetings in the past three months, it was 
that governments were looking to the WTO system of global trade rules for predictability, 
transparency, stability and as a provider of confid ence for economic operators.  All stakeholders 
agreed that open trade remained central to globa l economic recovery.  They were looking at the 
conclusion of the Doha Round as the lowest hanging global stimulus package available. 
5. Turning to the Doha Round, overall, his impr ession was that while the economic crisis had 
worsened since the beginning of the year, the political  atmosphere in the nego tiations had improved.  
There had been an increasing level of political e ngagement and clear signals of renewed commitment 
and support for a rapid conclusion of the Round.   The recent visit by the new US Trade 
Representative to Geneva in early May had been ve ry welcome and timely.  He had clearly expressed 
his commitment to a successful conclusion of the Round.   There had also been elections in India, and 
one was impatiently awaiting the nomination of the Commerce Minister.  The Geneva process was 
continuing to push ahead across the whole negotiati ng agenda.  While at the moment, much of the 
work in the Negotiating Groups could be described as  technical, it was no less important for that.  The 
Chairs were making every effort to clear the runw ay for political takeoff, and he thanked them for 
this.  In Agriculture, there was a new Chair for the Special Session.  Building on the good work that 
had been done in that body up to  the present, the latter was continui ng his consultations to advance a 
number of issues that remained open, among which w as the  formulation of the SSM.  Also to be 
considered over the coming weeks were outstandi ng technical issues, among others, under sensitive 
products, special products, tropical products and prefer ence erosion, cotton and tariff simplification.  WT/GC/M/120 
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  In addition, in his view it was not too early  to start preparing for the scheduling and 
verification process and the drafting of legal language. 
6. The NAMA Negotiating Group had recently held an open-ended meeting.  Sponsors of 
sectorals had reported on the technical work in wh ich they had been engaged and had expressed their 
intention to engage in the coming weeks with their tr ading partners to move this issue forward.  This 
week there would be a Negotiating Group session on the textual proposals on non-tariff barriers.  
In July, the Group would hold a scheduling workshop designed to give participants the opportunity to  prepare themselves in respect of the technical i ssues that would come up when the scheduling phase 
began for real.  The Rules Group had also been work ing on a broad front, with meetings recently on 
anti-dumping, subsidies and countervailing measures a nd fisheries subsidies, with further activity 
planned on regional trade agreements.  On anti- dumping, the Group had followed a three-tiered 
approach in discussing the Chair's text – first, discu ssing issues in square brackets;  second, text not in 
brackets;  and third, issues not currently reflected  in the text.  The discussions regarding horizontal 
subsidies had been of a general nature as delega tions were given the opportunity to present their 
general views regarding how they viewed negotiatio ns proceeding in this area.  The Group had also 
discussed fisheries subsidies and had continued its  discussions on the roadmap by focussing on issues 
such as prohibition and general exceptions.  The ne xt round of open-ended meetings was scheduled 
for the week of 29 June. 
7. The Services Special Session in April had seen  participants restate their offensive and 
defensive interests.  The discussion on LDC modalities was progressing, but detailed proposals were still awaited and hopefully would come soon so that this negotiation could also move forward.  The 
next meeting of the Special Session would take pla ce in conjunction with the next Services cluster, 
possibly to be preceded by one of the Chairman 's "enchiladas".  In the CTD Special Session, 
Members had been focusing on coming up with el ements of a monitoring mechanism on S&D.  
Discussions on the Agreement-specific proposals ha d been put on hold until Members were in a 
position to put forward new ideas or new language that  would de-freeze this part of the discussion.  
The TRIPS Special Session had seen some strategi c positioning, and the Chair was working to focus 
the group on getting ready to move forward as soon as the wider environment allowed.  At the next 
session on 10 June he would aim to orient the discussi on towards issues rather than specific proposals.  
The Negotiating Group on Trade Facilitation had also been making useful progress on all pillars under 
its mandate.  Work on the GATT Articles side had produced a number of additional suggestions on 
how to improve the existing texts.  Good progr ess was equally being made on the S&D front, where 
the Friend-of-the-Chair process now seemed firm ly established and well under way.  The Group 
planned to meet again in June. 
8. In Trade and Environment, the Chair had been  consulting delegations on various aspects of 
the July work programme.  An open-ended transpar ency meeting had been held recently, and overall 
there was a willingness to engage in activities that would help delegations to prepare for the next 
phase under this work programme, including technical work on a range of issues.  There was also 
further scope for deepening knowledge and understa nding of a number of issues under the mandate, 
including capacity-building and development-relate d issues.  The Chair intended to hold further 
consultations in the near future to discuss the diffe rent substantive elements of the work programme, 
including the cross-cutting issues.  Lastly, the DS B Special Session had recently discussed litigation 
costs for small participants, with the participation of the Advisory Centre on WTO Law.  Delegations 
were also discussing issues such as panel compositi on and confidential inform ation.  Thus, overall, 
worthwhile progress had been made at the technical level, which as all knew was a necessary but not a sufficient condition for concluding the Round.  The key question remained when participants would 
be ready to come back to the table at political le vel.  He hoped to start to see an answer emerging 
soon.  WT/GC/M/120 
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  9. As all knew, a series of major international po litical meetings were scheduled to take place 
over the next two months.  One could expect the Doha  Round to be a key consideration at all of these 
meetings – as it should be – and Members needed  to work for momentum to build through this 
sequence of meetings.  This se quence would provide a series of occasions at which the political 
process for the Round could be re-ignited.  There w ould be a meeting of the Cairns Group and other 
country trade Ministers on 8-9 June.  The OECD Trade Ministers' meeting would be another 
opportunity later in June.  In July there would be the meetings of leaders around the G-8 and G-8+, as 
well as the gathering of APEC Trade Ministers.  Each of these meetings should provide opportunities for greater political engagement at Ministerial leve l and help create the conditions for moving toward 
agreement on agriculture and indus trial goods and, of course, on the Round as a whole.  As always, he 
would keep Members informed of any developments on these fronts.  He would also be continuing his 
regular exchange of views and coordination with  the Chairman of the General Council and the 
Negotiating Group Chairs, with a view to advanci ng each area under the overall umbrella of the 
Single Undertaking. 
10. He had been informed of the informal discu ssions among some delegations – looking outside 
the current tool box of the negotiating process with a view to placing the talks on a more direct path 
for commencing the scheduling of Agriculture and NAMA commitments.  He was well aware that for 
some, the modalities approach was sacr osanct.  It was an approach that  made clear to all what was on 
the table through the formula cuts in tariffs and the specific flexibilities that would be agreed.  
However, others believed that while the modalit ies spelled out the defensive elements of the 
agreement, through flexibilities, these flexibilities in  themselves made it difficult to ascertain what 
new market-access opportunities might emerge.  If governments could indicate what products would 
be accorded more flexible treatme nt in the scheduling stage, whether on sensitive products, special 
products, Duty-Free Quota-Free or NAMA flexibilities, some countries believed it would lend greater clarity to the process.  His own sense was that th ere was scope to work on these two areas along two 
simultaneous tracks.  One would see technical e ngagement in the Negotiating Groups move to a 
higher gear to cover a number of technical issu es, as mentioned previously.  Simultaneously, 
Members would start some sort of "outcome testi ng",  through bilateral or plurilateral discussions, 
where they would provide each other with greater cl arity on the use of flexibilities and through it, on 
the value of the deal.  This was, in his view, doa ble, provided there was serious political engagement 
on the part of Members – in other words, provide d Ministers gave the necessary instructions for 
substantive work to happen on these two tracks. 
11. On Aid for Trade, he was happy to report that preparations for the Second Global Aid for 
Trade Review on 6 and 7 July were advancing well.   He had attended the High-Level Conference on 
the North-South Corridor in Lusaka on 6-7 April, which had allowed the Chairpersons of COMESA, 
EAC and SADC to outline the various projects an d programmes that constituted the North-South 
Corridor Model Aid for Trade Programme.  The Conference had offered a good outline of the 
bottlenecks to trade that needed to  be removed in a sequential manner in order to reduce trade costs.  
He had also recently attended the second regional revi ew of Aid for Trade in Montego Bay, Jamaica 
for Latin America and the Caribbean, where a numb er of projects had been showcased, focusing on 
progress made in implementing Aid for Trade on the ground.  He would be flying to Cambodia the following day for the Asia and Pacific regional revi ew.  On all these occasions, he had stressed the 
importance of ensuring that Aid for Trade promises were kept, despite the crisis.  In fact, Aid for 
Trade was an ingredient to help developing countries prepare better to exit the crisis.  By building 
their productive capacity, they would unlock their gr owth potential, and this would help them take 
advantage of new trade opportunities.  He had also emphasized the need to keep fostering this South-
South cooperation on Aid for Trade, the importance of which was obviously on the rise.  Looking ahead, he believed the Second Global Aid for Trade Re view on 6 and 7 July would provide a concrete 
and specific occasion to show how Aid for Trade was wo rking in practice and to review the fulfilment 
of the commitments to additionality.  He was wo rking closely with the Chair of the Committee on 
Trade and Development, with DDG Rugwabiza and with the membership to prepare this meeting.  In WT/GC/M/120 
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  concluding, he said that while according to some, one might be seeing the bottom of the economic 
crisis, one had not yet seen its full social impact , which would inevitably trigger negative political 
pressures on the trade front.  He personally believed, and wished to share this very openly, that the 
"stress test" of the multilateral trading system was sti ll to come.  It was theref ore crucial that Members 
kept their monitoring system on the alert and that th ey advanced towards the conclusion of the Round.  
A more solid house would resist the strong political winds that one unfortunately had to forecast. 
12. The representative of Gabon
, on behalf of the Informal Group of Developing Countries , said 
these countries looked upon the current stalemate in the negotiations with grave concern.  It was 
precisely at this moment when the world economy was undergoing a dire crisis that the Group stressed the urgency of a successful conclusion of the DDA, ensuring achievement of its development 
goals through a fair and balanced agreement on agricultural and industrial products, services and 
rules, among others.   A successful conclusion of the DDA would also send a clear signal about 
Members' commitment to the multilateral process pr ecisely at a time when th ey needed to work 
together to find global solutions to a global prob lem.  The Group called on all Members, developed 
and developing alike, to re-engage in the negotiating process to achieve the objectives set out in Doha, 
which had become all the more pressing in light of the global economic situation.  In finding the way 
that would lead to the successful conclusion of the Round, Members had to remain faithful to the 
principles that had guided them so far.  In this sense, developing countries wished to emphasize the importance of preserving the Doha mandate and the el ements of convergence achieved thus far.  This 
meant that Members should not selectively re-open certa in issues and pick apar t the initial stages of a 
consensus they had worked so hard to attain.  It also meant that they should not include new issues for 
negotiation, as there was already enough on their plates.  Developing countries also placed high 
importance on maintaining the multilateral process as the basis for all future work in the DDA.  
Members needed to go through all of the stages  set out in the road map for completing the 
negotiations, and in each of these stages they needed  to keep in mind the principles of transparency 
and inclusiveness.  However, the need for transparency should not  be translated into bilateral 
negotiation of commitments or trade-offs outside the multilateral process. 
13. Members should never lose sight of the concept under which the negotiations had been 
launched, which was that of a de velopment-oriented Round.  Devel opment should remain at the heart 
of the negotiations, most importantly by delivering on  the issues identified so far as being of relevance 
to the developing world.  These issues included, inter alia , the operationalization of S&D, the 
inclusion of flexibilities and respect for the principl e of less-than-full reciprocity in NAMA, as well as 
special consideration for LDCs through enhanced ma rket access and addressing the issue of cotton.  
The Group also wished to reiterate the importance of  the elimination of agricultural export subsidies 
and effective reduction of trade-distorting dom estic support by the developed countries as a 
developmental issue in the negotiations.  The Group continued to be committed to working with the 
Chairs of the various negotiating groups and the TNC, and with the rest of the membership to find a 
consensus that would bring a swif t and successful outcome to the DDA. 
14. The representative of Cuba
 said that regarding the Doha Round, his delegation endorsed what 
had been agreed by the Latin American and Ca ribbean Summit on Integration and Development in 
Salvador de Bahía in December 2008, at which the Heads of State of the region had emphasized the 
urgent need to bring the Doha Round to a successful  conclusion that would ensure the attainment of 
the development objectives through a balanced and equitable agreement on market access for 
agriculture and industrial products, respecting the cr iterion of less-than-full reciprocity and giving the 
developing countries room to implement their indust rial policies.  Furthermore, Cuba wished to 
reiterate that the developed countries had to make r eal cuts in the subsidies they granted to their 
farmers.  As had been stated at that summit, th e harmful practice of granting agricultural subsidies 
that created and increased distortions in world trad e, displaced the more competitive products of the 
developing countries, and discouraged investment and agricultural production, endangering the food 
security of the people of the most vulnerable developing countries.  Cuba also agreed on the  WT/GC/M/120 
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  importance of meeting the special needs of the developing countries, in particular the small 
economies, with a view to enabling them to integrat e effectively into world trade.  After each of the 
meetings of the financial G-20, in November 2008 and April 2009, a meeting of the TNC had been 
convened to inform Members of the firm and rene wed political commitment of the leaders of that 
group to conclude the negotiations, as if no one wa s able to understand what was happening in the 
world.  The current crisis – which according to the experts, was the worst that had ever occurred and 
which had arisen at the centre of the world financ ial, economic and regulatory system – together with 
the change of Administration in the United States, were the two key factors which completely undermined any attempt to make Cuba believe that Members would agree on modalities in 2009.  
What Members needed to achieve in 2009 was the re covery of confidence among the participants in 
the Round. 
15. In his statement at the 29 April meeting of  the General Council, the Director-General, 
speaking as a candidate for a second term, had communi cated some of his ideas for this new phase.  
His delegation wished to refer to some of them, since on that occasion there had been no opportunity 
for reactions from Members, or for the Director-G eneral to respond to these.  That meeting had 
seemed to be nothing more than an information m eeting, and another meeti ng of the General Council 
should be scheduled with a view to holding an interactive dialogue and commenting on the 
Director-General's plans.  Cuba agreed with the Director-General that the completion of the 
Doha Round was and should continue to be Members' first priority.  However, his statement that 
"what we need to do as of now is to reset the pro cess at a political level, building on where we left it 
last year" raised doubts as to whether he was referring to the texts of modalities or to the process of 
political consultations in which very few Members had participated.  Cuba was aware of the most 
recent mercantilist ideas of some developed-country Members on the conclusion of the Doha Round, 
which diverged from the Ministerial mandate to wh ich the Director-General had referred.  One of 
these ideas advocated abandoning modalities and p assing directly to the process of recording 
individual commitments to liberalization in schedules,  so that a few Members – and one in particular 
– could know the market access it would gain, thereby completely ignoring the mandate for 
development and for the modification of the rules of  the agreements to make them favourable to 
development.  For some Members, obtaining  modalities in Agriculture and NAMA was not 
sacrosanct, as the Director-General had said, but for the overwhelming majority of Members it was. 
16. The second of these recent ideas was a deceitful variation of the first, providing that in 
parallel with the negotiations on modalities, there would be a process of bilateral and multilateral 
meetings involving offers and requests.  In bot h cases, the small and medium-sized developing 
countries would not have the collective negotiating capacity they had at present.  The Round would 
lose its multilateral and development dimension a nd would simply become a Round on market access, 
in which the power of the large Members would be used to further their ambitions to protect their 
markets and open further the markets of the deve loping countries, which would remain practically 
defenceless.  Furthermore, the flexibilities and S&D for developing countries, envisaged in the 
mandates, would be eroded.  Regarding the negotia ting procedures, although in recent years these had 
improved somewhat in terms of inclusiveness an d transparency as compared with the Uruguay 
Round, they were still insufficient and did not fully comply with the mandate of the Doha Declaration 
on the real and effective participation of all Members in all stages of the process.  After the successful negotiation by the international community of do zens of complex international treaties on human 
rights, the environment, intellectual property, etc. with  the participation of all Members, to continue to 
ignore the clamour of many or most Members by clinging to old methods based on small, unelected groups was simply indefensible and unsustainable.  It was clear that mini-Ministerial meetings of a 
restricted group of Members had contributed nothin g to the process, and all of them had ended in 
disputes, mutual recriminations sowing absolu te distrust, and the temporary suspension of 
negotiations.  Members were facing enormous gl obal challenges that coul d only be overcome by 
global solutions with the involvement of all.  Ever ything that had been agreed after more than seven 
years of intense negotiations was fragile.  Any attempt to introduce new themes or modify the WT/GC/M/120 
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  mandate or the procedures would lead to a collapse of the whole process.  The only viable options 
were to complete the modalities, finalize th e Round with a balanced outcome, strengthen 
multilateralism and respect the principles of the Single Undertaking and of consensus. 
17. At the meeting of the Ministers of Health of the Non-Aligned Countries held in Geneva the 
previous week, the WHO Director-General had e nunciated several truths:  globalization was not 
self-regulating in such a way as to promote the fair distribution of its benefits;  enterprises would not 
automatically deal with social concerns and ques tions about their profits;  and international trade 
agreements in themselves would not guarantee f ood security, job security or access to affordable 
medicines.  All these required po litical deliberations and decisions.  Traders in agricultural goods and 
basic products had seen an increase in trade, and se rvice enterprises had also  benefited from access to 
markets and opportunities for investment throughout th e world in the absence of results in the Doha 
Round.  Benefits for the small agricultural producer s of developing countries and their response, in 
terms of supply, to possible trade reforms would be  limited or slight, since they depended on, among 
other factors, the rural infrastructure in terms of irrigation, roads, transport, electrification and telecommunications, on the availability of inputs su ch as fertilizers and technology, and on funding, 
which was practically non-existent in the case of mo st developing countries, particularly those in 
Africa, the LDCs and the small economies.  Most developing countries, if they were to genuinely 
benefit from trade liberalization, required plentiful resources in the form of official development 
assistance and investment in infrastructure, input s, technology and research, but both assistance and 
investment were being substantially reduced.  In the long term, cooperation a nd investment were more 
important than trade reforms in order to  make agriculture serve development. 
18. The difficulties in concluding the Round were not technical or short-term, but political.  They 
reflected the contradictions between different view s of how trade should develop, and the imbalances 
between the legitimate demands of developing countries to reform the multilateral trading system so 
that it genuinely promoted development, and th e mercantilist trading interests of the developed 
countries which benefited from the current rules.  World trade, which had enjoyed a relative boom in 
recent years, was not the cause but, as the Director General had observed, the victim of the crisis 
which had erupted in the property markets and th e banking and insurance sectors of the developed 
countries.  The cause had been financial specula tion unscrupulously generating fabulous profits on the 
margins of the real economy and trade, under cove r of the deregulation and liberalization of the 
financial markets – a liberalization that some were  still calling for in the negotiations on Services in 
the WTO.  This was a general systemic crisis.  Its causes were structural.  It was a crisis of 
overproduction and, at the same time, of underc onsumption, and thus a new global tariff reduction 
would not in itself bring an increase in world trade in a situation where global demand was more and more depressed by massive redundancies, the closing of  the plants of transnationals – principally in 
the developing countries – the bankruptcies of sm all and medium-sized enterprises, and the multi-
million dollar rescue and support measures of the developed countries that favoured their own 
enterprises.  Completion of the Doha Round would not  get Members out of the global crisis, at least 
not directly.  A failure of the Doha Round would be regrettable, but it would not represent a threat for 
international trade or the WTO system. 
19. It had been said repeatedly that Agriculture w as the engine of the Doha Round, but none of 
the current developed countries had become rich by exporting agricultural products.  None of them 
had become rich without developing their industria l sectors, by reducing tariffs and not increasing the 
levels of protection of industrial  property, as was now happening as a result of the WTO's agreements.  
During the colonial period, the main economic policy of the metropolitan countries had been to prohibit the growth of manufacturing industry in th e colonies.  The industrialization of the developing 
countries was no longer prohibited, but the policies of the developed countries, such as monopolizing 
technologies and patents, the escalation of tariff rates and their ever greater requirements for technical 
standards, made it practically impossible.  Th e theory of the comparative advantages of the 
developing countries in agriculture and mining – a philosophy that the current rich countries  WT/GC/M/120 
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  themselves did not follow in their own process of de velopment –  forced the developing countries into 
the trap of specializing in poverty and in producin g raw materials or semi-finished goods or, in the 
best of cases, in the production of components or  the assembly of the manufactured goods of the 
developed countries, so that the main earnings woul d stay with the subsidiaries of transnational and 
foreign enterprises in developing countries.   The crisis had spread to the developing countries 
principally through the financial and trading activities of the major transnational companies which 
dominated international markets.  The Nobel pri ze winner for economics and former Director of the 
World Bank, Joseph Stiglitz – formerly a defend er of globalization and liberalization – had 
acknowledged that globalization had fac ilitated the spread of the crisis, and that the irony was that the 
countries adversely affected were those which had more fully opened their markets to the global 
economy.  The draft recommendations of the Commission of Experts of the UN General Assembly 
had observed that the rapid expansion of the fina ncial crisis provided tangible evidence that the 
international trade and financial system should be profoundly reformed in order to confront the needs 
and challenges of the 21st century.  Members should learn and apply the lessons of the past. 
20. The representative of Tanzania , on behalf of the LDC Group , said the LDCs were generally 
encouraged to note from the reports by the Direct or-General and the negotiating group Chairs the 
collective important progress that had been made in  a number of areas of negotiations over the past 
few months.  Some delegations had already reacted  to the reports with a strong appeal for more 
intensified efforts aimed at building on that progr ess, in order to achieve the mutual objective of 
successfully concluding the DDA with development c ontent at the centre.  While appreciative of the 
value of bilateral and plurilateral consultative meetings as a means of  closing some of the gaps in the 
negotiations, the LDCs wished to emphasize again that such processes should eventually be 
mainstreamed into multilateralism that was inclusive.   Otherwise, small delegations like many of the 
LDCs would be left out.  While desiring an early conclusion of the DDA, the LDCs wished to stress 
again that the continued delay in concluding the Round was causing a painful burden and wasting 
opportunities for LDCs.  In this regard, as pointed out  time and again, the Group wished to propose an 
early harvest in the areas where consensus had been achieved for LDCs, such as in the 
operationalization of Duty-Free Quota-Free market  access in Agriculture and NAMA, providing a 
Services waiver in favour of LDCs, operati onalization of Mode 4 delivery in Services, 
implementation of S&D, and the development issu es pertaining to Cotton, which needed to be 
addressed ambitiously and expeditiously.  The Hong Kong Ministerial Conference had already 
pronounced itself on these issues with regard to LD Cs.  Therefore, any further delays were a clear 
contradiction of that spirit.  A political decision might therefore be necessary.  The Group was 
grateful for the market openings being provided by some Members, such as the United States through 
AGOA, the EU through EBA, Japan and other developi ng countries such as Brazil, China, India and 
Korea.  They requested the rest of  the membership to do the same in favour of LDCs.  In order to 
enable LDCs to benefit fully from such market -access opportunities, the Group urged sustained and 
targeted technical and financial assistance for grow th, and effective integration of LDCs into the 
multilateral trading system.  Accessible resource facilities through Aid for Trade and the EIF, as well as Official Development Assistance were importa nt components for strengthening production, supply 
and trading capacities, which would also make a significant contribution toward achieving the Millenium Development Goals for LDCs.  Another issue of concern was the cumbersome accession 
procedures for LDCs.  The Group urged the establishm ent and adoption of an effective mechanism for 
fast-tracking the accession process for LDCs, in the c ontext of the principle of S&D.  It was thus 
anxiously awaiting the outcome of the dialogue with  acceding LDCs organized by the Secretariat on 
28 June.  The Group remained committed and was re ady to continue engaging positively towards the 
realisation of the DDA objectives. 
21. The representative of Switzerland
 said that a translation of the Director-General's key 
message to Members might be that they needed to kill the flu virus in the machinery so as to put the 
negotiations back on track.  The first thing Member s needed to move towards was to rise above the 
level of unilateral consultations and engage in bilateral, plurilate ral and multilateral consultations, WT/GC/M/120 
Page 10  
 
  because one of the goals they had not yet achie ved in the negotiations was to create genuine 
complicity among the participants – a sense of owne rship of the negotiating process by all Members, 
as Tanzania had just said.  The Director-General had raised the informally addressed question of a 
mixed-negotiation method in order to proceed towards modalities, adding other elements to 
supplement them.  This was a matter that should be  addressed in an informal process of consultation 
among Members in order to avoid creating the impression among the weakest Members of being 
subjected to unilateral pressure on the part of th e heavyweights.  Pressure was good if you did not 
want flat beer in your glass, but very bad when  it came to negotiations.  His delegation wished to 
thank the Director-General for having revived the consultation mechanism on issues associated with 
the TRIPS Agreement.  In three consultation se ssions, he had succeeded in doing a useful job.  
Switzerland was well aware that there was a lot more to  do in order to reach the goal, but wished to 
emphasize to those who were still reluctant, th at one could not disregard two-thirds of the 
membership.  For efficiency's sake, one needed  to stop filibustering and start tackling matters 
seriously, because the issues at stake were considerable for a vast majority of Members, and those who were not paying anything in this Round woul d do well to stop systematically objecting to a 
grievance harboured by two-thirds of the Members. 
22. The representative of Turkey
 said his delegation totally agreed with the Director-General's 
analysis of the world economic crisis and its imp act on world trade.  The latter's official visits 
contributed considerably to raising awareness of th e need to continue with the negotiation process.  
Although finalizing the modalities on Agriculture and NAMA was a major issue, realistically Turkey 
did not think they would be finalized soon, since th is would require the full -fledged participation of 
all the key players.  However, successful conc lusion of the Doha Round remained a necessity vis-à-vis  
the global financial and economic crisis.  It woul d also send a strong signal regarding protectionist 
tendencies.  Since protectionism was a separate item on the present meeting's agenda, he would take this up later.  Skipping over an agreement on ne gotiating modalities and moving straight to scheduling 
commitments would not serve the purpose of expe ditiously concluding the Round.  Such a move 
would move the negotiating process to a bilateral or , in some limited cases, a plurilateral request-and-
offer exercise.  This path carried  a serious threat of undermining what Members had achieved so far.  
The quest to find new ways and methods to lubri cate the negotiating process was welcome.  However, 
the idea of starting the process with schedulin g needed to be studied with great care. 
23. The representative of Egypt
, on behalf of the African Group , said that international trade had 
become one of the main casualties of the current global economic and financia l crisis.  Consequently, 
millions of jobs had been lost and others were at risk.  Years of successful economic reforms and 
economic and social development were in jeopardy.  The crisis was affecting economic sectors that 
were sensitive in African countries, and its impact  was spreading to touch on production, exports, 
employment, investment, commodity prices, tourism, and remittances.  There was a growing concern 
that trade flows of African countries were the most  vulnerable and were facing increased barriers in 
world markets.  The competitiveness of African eco nomies would further erode, due to the massive 
stimulus packages and bailout plans, and the in creased trade-distorting subsidies by developed 
countries to various agricultural and industrial activiti es.  Rising protectionist trends were real and 
dangerous, particularly for African economies.  Members should refrain from any protectionist 
policies and measures, since these would aggrav ate the current economic downturn.  Political 
commitments by major trading partners to open market s should be translated into concrete actions.  In 
such a context, the early conclu sion of the DDA became imperative.  With regard to the Director-
General's reference to a possible two-track approa ch, which the African Group was hearing for the 
first time, he wished to underline that the Group did not see the need for any changes to the current 
process.  The development component of the Round s hould not be put at risk, and there should not be 
any attempts to reinterpret or change mandates in any of the negotiating tracks.  Furthermore, there 
was a need to preserve and build on progress ach ieved in the negotiations, and to avoid any 
backtracking or selective reopening of sensitive issu es.  The African Group underlined the importance 
of maintaining the multilateral process of negotiati ons in full transparency, and wished to caution  WT/GC/M/120 
 Page 11 
 
 
  against considering major changes in the negotiating process at this late stage.  It remained fully 
committed to a successful conclusion of the Doha Ro und, and would continue to  contribute positively 
to all efforts leading to convergence among Members. 
24. The Group supported all efforts by the Director-G eneral, as Chair of the TNC, to advance the 
negotiations.  However, it wished to emphasize the need to preserve what had been achieved in the 
negotiations up to the present.  While it understood  that many issues needed political decisions, it 
welcomed the resumption of the technical work with  a view to paving the way for political decisions 
when the time was right.  Regarding the dis pute settlement negotiations, the African Group had 
participated in the most recent special session where its proposal on a DSU fund had been discussed, 
along with the issue of litigation costs.  The Group wished to thank Uruguay for its initiative in calling 
for the holding of the Seventh Session of the Mini sterial Conference in 2009, in accordance with the 
obligation set out in the Agreement Establishing the WTO, and welcomed holding the Conference in 
Geneva from 30 November to 2 December 2009.  Ap art from the need to hold a Ministerial meeting 
on a regular basis, the current year’s meeting ha d more importance given the current global economic 
environment and the challenges faced by developi ng countries as a result.  It would provide an 
opportunity to exchange views on the role of the WTO in such an environment, and how Members 
could collectively work together to preserve and st rengthen the multilateral trading system, in addition 
to providing the necessary leadersh ip to conclude the Doha Round. 
25. The representative of Côte D'Ivoire  said his delegation endorsed the statement by Egypt for 
the African Group and supported the statement by Tan zania for the LDCs.  He wished to recall once 
again that his country's interest in the resumpti on of the Doha Round without delay was prompted by 
the utterly disastrous state of Africa's economic and social indictors as a result of the global financial 
and economic crisis.  The efforts a nd sacrifices made by African countries over the past decade that 
had boosted macroeconomic and sector al reforms geared towards growth and development had now 
been completely reduced to nothing.  The annua l average economic growth rate, which stood at 
six per cent in 2004 and 2008, was now projected to  be 1.5 per cent for 2009, precisely because of the 
crisis and the ensuing slack in economic, industrial and trade activity in his country, as shown by the 
downward trend in prices of its raw materials, ag riculture and mining resources as a consequence of 
the contraction in global demand, the drying up of financing and, hence, the drop in investment and 
the increasingly drastic fall in Côte d'Ivoire's export earnings and tax revenues.  This translated into an 
inexorable growth in its curre nt account and budget deficits. 
26. The greatest challenge for the 53 African countries,  of which 33 were LDCs, would be to find 
a formula to maintain the stability of macroeconomi c policies aimed at growth and the modernization 
of their production capacity, while pursuing the key obj ective of poverty reduction.  In the face of this 
crisis and the challenges it had brought, certain A frican countries, but not all of them, had taken 
initiatives to provide support for export businesses, to lower interest rates, to grant consumer loans 
and so forth.  Such national rescue measures we re commendable but clearly inadequate.  An 
international response in keeping with the challe nges raised by this crisis was the only possible 
answer for all countries, developed and developing alik e.  In this connection, Côte d'Ivoire welcome 
the adoption by the G-20 of the most significant macroeconomic support plan established in living 
memory, including making funds available to interna tional finance institutions and regional banks.  It 
also noted that the G-20 had urged the WTO to fi nalize the DDA negotiations, thus confirming trade's 
critical role in supporting growth – an obvious eco nomic truth of which all Members were well aware, 
and the developing countries even more so, since it was from their agricultural or mining exports that 
African countries derived their economic growth.  It was now clear that the commitment by the 
developed countries – as the Director-General had recently recalled in the United States – to put the 
Doha negotiations back on track appeared to be firm, and his country welcomed that commitment.  
However, he asked when Members were going to resume the process with a view to its completion in order to give clarity and predictability to the mark et, and fresh impetus and a new momentum to trade 
as a means of supporting economic growth for the developing countries.  It was time to take action, WT/GC/M/120 
Page 12  
 
  because the crisis affecting the African countries w as a genuine development crisis.  That was the 
fundamental challenge facing these countries.  This  development crisis was terribly deep.  To 
paraphrase President Obama, the time had perhaps come  to restore hope in the hearts of those that 
globalization had left behind.  In this connection, the approach suggested by the Director-General to 
try to revive the negotiating process was worthy  of interest and detailed consideration. 
27. The representative of Chinese Taipei
 said his delegation wished to thank the Chairs of all the 
negotiating groups for their hard work over the past few months.  Thanks to the Director-General's 
leadership and the concerted efforts of the Chai rs and the Members, substantial progress on the DDA 
had been made on all fronts.  The ongoing technical work was clearing the way for final decisions to 
be made, and his delegation supporte d continuing this work in all areas.  Members had the content in 
the form of the NAMA and Agriculture texts of De cember 2008, and seemed to be close to agreement 
on the process  –  the multilateral approach, plus the Director-General and the Chairs continuing their 
consultations with all the informal groups and Members – although it was necessary again to 
emphasize the need for transparency and inclusiven ess at every step of the way.  It seemed that 
Members were not that far away from being able to make the final move to complete the Round.  The 
other key element was the existence of a sufficient amount of political will.  In the coming months 
there would undoubtedly be several important and high-profile occasions when there was Ministerial engagement on trade issues.  These would present enormously valuable opportunities to get the WTO message across, and to drum up the political will need ed to carry Members over the last hurdle.  His 
delegation urged the Director-General and others to  make the best use of every opportunity that 
occurred.  His delegation would continue to work as closely as possible with the Chairman, the Chairs 
of the TNC and its negotiating groups, and with fellow Members to get the job done. 
28. The representative of th e European Communities
 said the Community fully agreed with the 
Director-General's report.  The EC wished to make progress on the Round as rapidly as possible.  A successful Round was, as the Director General had said many times, the best insurance policy against 
possible protectionism.  In July 2008 Members had made massive progress and Ministers had been 
close to agreeing on modalities.  Since then a great d eal of work had been done at technical level in 
order to find solutions to some of the remaining di fferences.  There had been suggestions for a change 
of approach on modalities.  While the EC believed it was time to step up the pace, it did not believe 
that a dramatic change in approach at the present stage would increase Members' chances of success.  
Rather, they had to continue their work toward s modalities by building on the wide-ranging progress 
achieved so far, and to close the remaining gaps.  Substantive work therefore had to continue in the 
different negotiating groups.  The EC was encourag ed with the engagement Members had shown in 
areas like Rules and Trade Facilitation, and expected  that comparable progress could be found on the 
rest of the agenda.  In this context, the EC welcomed the Director-General presiding over a group looking into TRIPS issues, notably GI extension a nd CBD.  With respect to the Director-General's 
suggestion on process, the EC agreed that modalities we re not an end in themselves, but a means to an 
end.  They were a tool, albeit a key one, to get Me mbers to the final phase of negotiation – a tool that 
Members needed in order to prepare draft schedul es in Agriculture and NAMA and the equivalent in 
Services.  From there Members had to move to the finishing line some months later.  Modalities were 
also necessary to help them set the course on othe r rule-making issues.  With this in mind, his 
delegation was open to discussing how  the work should be organised in the stage between agreeing on 
modalities and the final agreement under the Single Undertaking.  The Community agreed that 
increased transparency on the consequences of modalities would give all Members greater 
reassurances when they prepared their respective schedules – notably in terms of how they would 
each use their various flexibilities.  Some kind of indication to this end would be an element in 
helping all Members to gauge the overall balance of the emerging outcome.  His delegation was open 
to finding constructive ways to move this work fo rward.  He wished to underline his delegation's 
agreement with the Director-General's view th at what was now necessary was political commitment 
by leaders to provide the last push to move  the Round forward to a successful conclusion.  WT/GC/M/120 
 Page 13 
 
 
  29. The representative of Bangladesh  said his delegation wished to congratulate the Director-
General on his re-appointment for a second term.  It  had supported his candida ture not because he was 
the lone candidate, but because of his astute leader ship skill, unwavering commitment to conclude the 
DDA and, above all, the sincere commitment to th e development dimension of the Round he had 
demonstrated in his previous term.  Bangladesh associated fully with the statement by Tanzania 
enumerating the concerns of LDCs , including regarding accession.  He wished to add or stress a few 
points.  This was the eighth year of the current Doha Round.  Obviously, the Doha Round was moving slowly, perhaps slower than the Uruguay Round, but slowly and steadily.  So far, only modalities on Trade Facilitation had been agreed, in 2004 under the Ju ly package.  In spite of relentless efforts by 
the Director-General, modalities in Agriculture and NAMA had not been completed in 2008.  
Conclusion of the Doha Round should be the Directo r-General's topmost priority, as mentioned in his 
vision for the WTO explained in the General Council on 29 April 2009, and completion of 
Agriculture and NAMA modalities would form the first step of that priority.  Other negotiating areas 
like Services, Rules, TRIPS, Trade Facilitation, Environment and S&D could not be ignored under the so-called umbrella of the Single Undertaking.  Ho wever, the progress achieved in negotiations during 
the mini-Ministerial in July 2008 and thereafter ha d to be retained.  Meanwhile, the global financial 
crisis had given rise to protectionism and was gra dually unfolding its damaging impact on his country.  
Bangladesh had started to receive fewer orders fo r its garments exports.  Its workers abroad had 
started to return home, triggering a sharp fall in remittances.  The poorest countries, like Bangladesh, 
were being hit hardest, although they had not caused th e crisis.  Members had to carefully examine the 
impact of the financial crisis on the trade prosp ects of LDCs.  The General Council had a moral duty 
to protect those who were the poorest within its area of competence. 
30. In order to integrate the LDCs into the multilateral trading system, these countries sought 
market access in three areas – Agriculture, NAMA and Services.  They were not asking for anything 
new.  They wanted full and faithful implem entation of the duty-free quota-free Decision of 
Hong Kong, so that their limited products got meaningfully enhanced market access in the 
developed-country markets.  Unfortunately, one developed-country Member had not yet granted 
duty-free quota-free market access to the products of export interest to the poorest Members 
in the 
region of Bangladesh .  His delegation urged them again to grant this access to products of export 
interests to the LDCs, de-linking it from the progr ess of the Round and following the good example of 
other developed-country Members.  Bangladesh al so requested the Director-General to use his good 
offices in this regard.  By definition an LDC was s upposed to receive more preferential treatment than 
a developing country.  As one of the poorest members of the world community, an LDC could not 
receive less favourable treatment than any other developing-country Member.  This was the bottom 
line and a core principle of S&D that should be up held and respected by all throughout the Doha 
process and in all negotiating bodies.  Otherwise,  the development dimension would be rendered 
meaningless, and Bangladesh could not accept such an outcome.  His delegation expressed its full 
solidarity with the poor cotton-producers of Africa.  It felt strongly that both the trade aspect in the 
form of substantial reductions of  subsidies, and the development assistance aspect in the form of 
adequate financial aid, should be ensured to the satisfaction of the C-4 countries.  As in goods, the 
share of LDCs in global services trade was less than one-half of one per cent.  In the light of the Hong 
Kong mandate, the waiver option to grant a special priority mechanism to LDCs' services suppliers 
had commanded overwhelming support by Members.  Bangladesh wanted an immediate roadmap to 
grant that priority mechanism as a matter of early  harvest.  The collective Mode 4 request of LDCs 
should also be reflected in the revised offer of the Members. 
31. So far he had spoken mainly about the demand si de of the equation.  Even if LDCs were 
granted preferential market access in goods or services,  they could not make use of that because of 
their inherent supply-side capacity constraints.  Th is capacity gap could be filled in by additional, 
predictable and untied funding under trade financi ng and Aid For Trade.  Bangladesh thanked the 
donors for their commitment at the Stockholm Conf erence under the Enhanced Integrated Framework 
(EIF), and looked forward to the formal launch of the EIF very soon.  However, the global financial WT/GC/M/120 
Page 14  
 
  crisis should not in any way erode it.  His dele gation hoped that the Director-General, with his 
renewed mandate, would be able to pull the rabbit out of the hat sooner rather th an later.  Otherwise, 
the WTO rules-based multilateral trading system ra n the risk of withering in the vineyard of 
irrelevance.  Members could not afford to let that happen.  Finally, his dele gation reiterated its full 
commitment to remain engaged in the nego tiation process under the overall guidance of the 
TNC 
Chair with renewed vigour and optimism. 
32. The representative of Bolivia  said she wished to briefly express her country's position 
regarding the proposal for a parallel track involvi ng the preparation of schedules before modalities 
were finalized.  This was not a course of action Boliv ia could support.  It considered modalities to be 
the guidelines on which possible schedules could be based.  Without such guidelines, devised during 
eight years of negotiations, her delegation did not see how the course proposed could be followed.  
The Single Undertaking had to be maintained, toge ther with Ministers' mandate, without adding new 
stages or jumping from one stage to another.  A mu ltilateral, genuinely partic ipatory, transparent and 
fair outcome with positive results for the developi ng countries in this Development Round could only 
be achieved through the conclusion of modalities w ithout recourse to non-transparent and exclusive 
procedures where her delegation lacked negotiati ng strength, since bilateral and plurilateral 
procedures as such had no place in a multilateral foru m.  Consequently, Bolivia could not support the 
suggestion for parallel tracks.  The right course of  action involved a succession of stages that could 
not be mixed together.  Bolivia would closely mon itor the workshops the Secr etariat was seeking to 
set up for the preparation of schedules, as it was for sovereign governments, at the appropriate time, to 
draw up their own schedules and not for a multilatera l body that could not have information on the 
specific sensitivities of each country. 
33. The representative of Japan  said his country very much shared  the Director-General's view on 
the current situation.  The latter had mentioned vari ous international meetings in which he had been 
involved in the past few months.  Japan attached im portance to the G-20 Leaders' Statement issued in 
April in London, which talked a lot about the DDA.  Members should aim at early agreement on 
modalities through building upon the progress already made.  They should also proceed with the 
negotiations in all areas – not only in Agriculture and NAMA, but also in other areas such as Rules 
and Services.  The Director-General had mentioned the doability of simultaneous tracks, that is, the 
very important continuation of the exercise in th e respective negotiating groups and at the same time 
bilateral and plurilateral consultations for the sake of outcome-testing, in order to provide greater 
clarity in the negotiations.  Such an  approach was realistic and useful. 
34. The representative of the Bolivarian Republic of Venezuela  said his country endorsed the 
statement by Gabon for the Informal Group of Developing Countries, and wished to make a few comments on the Director-General's report.  In th e same way as previous speakers, such as Cuba and 
Bolivia, had already made clear in their statements , his country's attention too had been immediately 
attracted by the mention of a possible parallel track .  However, his delegation had not been surprised, 
because in this organization everything was an open secret.  The rumour had been, however, that this 
idea had been shelved, but it was now clear that this  was not the case.  As other delegations had said, 
these ideas generated more uncertainty.  If the m odalities in themselves were already uncertain, 
adding a new element without knowing what it would produce would lead Members to consider wider 
issues and would create more uncertainty as to when  the negotiations would c onclude.  His delegation 
was trying to imagine – bearing in mind that this  was an exercise clearly  involving market access – 
how Venezuela in particular could negotiate the flex ibility required for one of the main issues of the 
negotiations.  In fact, it could not imagine this, and so believed and hoped this would not be the case.  
Nevertheless, as expressed by Gabon for the Informal  Group of Developing Countries, Venezuela was 
in favour of a successful conclusion of the Roun d, which would place development first and give 
priority to content over haste to reach an agreement.  It appreciat ed that the current situation was 
difficult for all countries – perhaps more so for some than others – but that should not induce 
Members to subscribe to an agreement that would help  perpetuate the errors of the past and set aside  WT/GC/M/120 
 Page 15 
 
 
  the reasons that had led to the la unching of this Round in 2001.  Very  wide asymmetries still existed, 
and it was Members' duty to reduce them, so that all countries had access to growth and, consequently, development.  It was for this reason th at Members had to avoid all situations that would 
widen existing divisions still further.  The Round wa s for all Members equally.  One had to ensure 
that it was beneficial for all, and to create the conditions, within the existing framework of 
possibilities, that would enable Members to  obtain the balanced outcome desired. 
35. The representative of Barbados
, on behalf of the SVEs , said these countries would support 
any inclusive process that helped bring the negotia tions to a balanced and successful conclusion.  
However, they would not want to see a process that was capable of undermining the progress 
Members had made over the years, nor would they wish to see any further erosion of the focus on 
development in the DDA, including issues relate d to LDCs.  Without taking any position on the 
scheduling idea, the SVEs looked forward to the conclusion of the modalities negotiations. 
36. The representative of Burkina Faso , on behalf of the cosponsors of the Sectoral Initiative in 
Favour of Cotton , said the C-4 endorsed the statements by Tanzania for the LDCs, Egypt for the 
African Group, Gabon for the Informal Group of Developing Countries, and Côte d'Ivoire.  The C-4 
wished to emphasize the need for an early harvest on cotton, and were concerned about the opposite 
stand which some delegations had ta ken on the subject.  According to the latest analyses, all African 
cotton enterprises were virtually bankrupt, especially those located in free zones.  Input prices had 
almost doubled in a very short time, while producer pr ices had been falling consistently.  Like most of 
the previous speakers, the C-4 were ready for an early resumption of the multilateral negotiations, so 
that the cotton issue could be addressed expeditious ly, ambitiously and specifically, as prescribed in 
the Hong Kong mandate.  They were willing to do what ever they could to ensure the resumption of 
the negotiating process.  They therefore suppor ted the informal frame work for consultation 
established by the Chairman of the Committee on Agri culture and the Director-General to enable the 
negotiations to proceed and move fo rward towards a definitive outcome. 
37. The representative of Argentina  said he wished to thank the Director-General for having 
carried out consultations on this matter in which hi s delegation had been able to participate.  His 
delegation had taken that opportunity to express its reservations regarding the course of action the 
Director-General had proposed, reservations he wish ed to reiterate formally now.  The statement by 
Gabon for the Informal Group of Developing Countries had been substantive and extremely clear.  It 
had called upon Members to respect the principles under which they had initiated these negotiations, 
had invited Members to maintain this multilateral pr ocess in an inclusive and transparent fashion, and 
had stressed that this Round had to be directed towards development.  These three elements were 
central to Members' future action.  Out of a tota l of 153 Members, two were in favour of a certain 
course of action.  This questioned the turn the de mocratic process was taking.  The same applied to 
modalities – these might not be the best, but they were what Members had.  There was no question 
that the modalities were sacrosanct.  Members had spent seven years in negotiations, which had found 
expression in a number of understandings, and these unde rstandings were partially or totally reflected 
in those modalities.  Therefore, no one could now say that he had doubts about flexibilities in the 
modalities, when Members had spent seven years nego tiating them.  This applied particularly in the 
case of Agriculture, since those who were complain ing about these flexibilities were the same ones 
who had negotiated those flexibilities and had made the negotiation of flexibilities a precondition for 
agreeing certain outcomes, especially in Agriculture .  Accordingly, it was necessary to think again 
whether Members really wanted to obtain results in this exercise and really wanted to conclude these 
negotiations, or whether they had other objectives – and if that was the case, the membership needed 
to carry out an evaluation of this situation.  Hi s delegation could not betray from top to bottom the 
principles of the road map of any negotiations, of  transparency and of the multilateral approach, and 
ignore the centrality of the question of development.   Several delegations ha d spoken of the need for 
an early result.  That would be a major contribution to a package on development in these WT/GC/M/120 
Page 16  
 
  negotiations.  He asked how Members could ignore seven years of negotiations in which there had 
been many exchanges relating to flexibilities. 
38. The representative of India
 said that India, a millennial civilization, had an inexhaustible fund 
of patience.  Thus, his country patiently waited fo r the appointment of a new Minister of Commerce 
and hoped it would be announced soon.  His delega tion appreciated the Dir ector-General's report on 
the work of the different negotiating groups.  It  also appreciated the consultations under his 
chairmanship on two important TRIPS implementati on issues – CBD and GI extension.  This process 
had to continue, as it would address issues of inte rest to a vast majority of the membership.  
Additionally, India, along with Like-Minded Gr oup members and the African Group, had recently 
proposed a non-paper on the establishment of a DSU fund, and hoped this fund would soon be 
established to facilitate the effective utiliza tion of the dispute settlement procedure. 
39. The representative of Ecuador  said his delegation endorsed the statement Gabon for the 
Informal Group of Developing Countries.  Ecua dor supported the comprehensive and accurate view 
of global economic reality outlined by Cuba, and the concerns voiced by Bolivia regarding a parallel 
process distinct from the existing mandates.  Like Venezuela and Argentina, Ecuador also believed 
that such ideas had been buried, but  like the biblical Lazarus, they were being brought back to life, to 
Ecuador's great surprise. 
40. The representative of the United States  said his delegation felt compelled to react to some of 
the statements made at the present meeting, and b asically wished to express its confusion over the use 
of two terms fundamental to Members' work – modalities and mandate.  The United States agreed 
with the EC's statement that modalities were a means to  an end, not an end in themselves.  If that was 
true generally for modalities, it was even more tr ue for any specific modality.  He recalled that 
formula was not the only modality.  Members had agr eed five years earlier as part of the July 2004 
Framework that there were multiple modalities, at  least with respect to tariff reduction, which 
included the formula Members had been work ing with, as well as sectoral initiatives and 
request-offer.  Nowhere had Members agreed th at modalities precluded Members from knowing what 
was or was not on the table.  This would be a rath er odd way to reach the conclusion of a negotiation.  
Members needed to look very pragmatically at how to get to the finish line.  This did not mean 
ignoring or dismissing progress made so far on modalities, but nor did it mean rigidly refusing to see if some modification of the negotiating paths envisi oned seven years earlier would be a more certain, 
effective and rapid path to the success all wanted .  He was not making any specific proposals now, but 
wished to express his delegation's eagerness to discu ss with other Members on how to get to the final 
stage of negotiations, and how to do so sooner rather than later.  As to the second cause of confusion, 
there had been certain references to the mandate, and many statements saying the mandates could not 
be changed.  The United States agreed with that.  Certainly it was not proposing  any change to the 
mandate, but he wished to remind delegations that th at a fundamental element – indeed a principle of 
the mandate agreed in Doha – was the Single Undert aking.  His delegation saw no reason at present to 
change that part of the mandate. 
41. The representative of Norway
 said her delegation was particularly heartened by the Director-
General's view that the political atmosphere had impr oved lately, even if he felt the main question was 
still when Members would be ready to come back to the negotiating table.  Norway also welcomed his 
thoughts on the mix of processes to take Members forward and the political discussions in the near 
future that would hopefully help Members get back to the negotiating table.  This, in combination 
with his ideas on a double track – namely, as she u nderstood it, renewed effort s to address outstanding 
political/technical issues like SSM, cotton, special products, sensitive products , and so forth, and 
preparations for scheduling and draft legal texts.   Obviously, there would be no magic in adding 
preparation for the end game to the agenda in Geneva – Members would still have to resolve the 
remaining problems through the negotiations on modaliti es.  However, these things – the preparation 
for the scheduling and for the legal texts – had to be done sooner or later, and why not start to prepare,  WT/GC/M/120 
 Page 17 
 
 
  if Members really believed they c ould and should finish this Round s oon.  Her delegation also wished 
to thank the United States for the clarifications it had just made regarding the US position on how to 
proceed.  If Members followed the d ouble track just proposed by th e Director General, they should 
take on board the warnings raised at the present m eeting to stay on the multilateral track, which had 
brought Members a very long way forward in the negotiations over the past year. 
42. The representative of the Dominican Republic  said his delegation supported the statements by 
Gabon for the Informal Group of Developing Countries, Barbados for the SVEs, and most of the countries that had taken the floor under this agenda  item.  The completion of the Doha Round could 
make an effective contribution to improving the economic situation, given the profound and 
prolonged crises in which Members found themselves.  Furthermore, the Round all wished to 
conclude had a genuine developm ent dimension and, consequently , Members should not re-open the 
mandates and procedures already agreed, but had to work on the basis of the advances already made.  
Regarding the Director-G eneral's proposal for a dual-track  approach involving modalities and 
scheduling, his country supported the statement by Egypt for the African Group, since it did not see the need to modify the procedures already agreed. 
43. The representative of Korea
 said his delegation agreed with the Director-General's assessment 
on the state of play.  Korea was encouraged by th e recent visit of the US Trade Representative to 
Geneva and the message he had delivered, includi ng the strong US commitment to the Doha Round 
and the multilateral trading system represented by the WTO.  However, at the same time it was mindful of the fact that there was still a long way to go before achieving Members' final goal.  Even 
though political willingness was essential to fill the ga ps between the current stage of negotiations and 
the final outcome, there were other parts to be fille d by technical level work.  In this respect, on the 
basis of the accomplishments made thus far, Member s had to continue the necessary  work in Geneva 
as suggested by the Director-Gener al, thereby preparing for the time  when the political environment 
was mature and favourable.  In so doing, they s hould not dilute the multilateral nature of this 
negotiation.  Negotiations in the negotiation groups should remain at the centre of this process.  The 
Director-General had shared his thoughts on a two- track approach.  While there had been a proviso 
attached to these thoughts, Korea wondered whether this was indeed doable.  His delegation worried 
that instead of leading Members closer to the conc lusion, it would cause them to drift farther away 
from the goal of an early conclusion of the Round .  Thus, much caution was necessary on this 
particular point. 
44. The representative of China
 said that all shared the view that it was important for the Doha 
negotiations to conclude as soon as possible.  Th e focus needed now was how to move forward 
collectively in the multilateral process.  In view of the current state of play, his delegation wished to 
highlight three points.  First, Members should always keep in mind that this was a development Round.  Concerns of deve loping-country Members should be addressed as a priority.  In an effort to 
address the overall imbalance of previous rounds of trade negotiations, developing-country Members 
were entitled to flexibilities and policy space for deve lopment.  These flexibilities had been delicately 
established in the modalities as the result of nego tiations and trade-offs, with flexibilities for 
developed-country Members, and should not be s ubject to negotiation again.  Developed-country 
Members had gotten quite a lot of flexibilities on thei r own part.  The new blue box, OTDS reductions 
and sensitive products were just a few examples.  China therefore encouraged Members to take 
realistic approaches.  Second, the nature of the ne gotiations for the next stage should continue to be 
multilateral, as the African Group had pointed out.   Members should focus on modalities and try to 
close the remaining gaps.  The principle of a bottom-up approach, inclusiveness and transparency 
were crucial for the success of the Round and to ge t every Member on board with the final result.  
Third, China supported the LDC positions expressed by Tanzania and Bangladesh on the issue of a 
possible early harvest, as further delays would cau se painful burdens for the LDCs, which were the 
poorest countries.  China hoped that the Minister ial Decisions at Hong K ong would be implemented WT/GC/M/120 
Page 18  
 
  as soon as possible.  It remained committed to the early conclusion of the Round and would continue 
to play an active and constructive role in the negotiations. 
45. The representative of Brazil
 said that having listened to the Director-General's report, his 
delegation had to stress once again that substance ha d to come before process.  At present, Brazil was 
not convinced that there was a bridgeable gap in term s of substance, and first wished to hear what the 
problems were.  Once his delegation understood what  the problems of substance were, it could talk 
about whether there was a process that could brid ge any existing gaps. Regarding the substance, 
Brazil wished to make several points.  First, an y negotiation on substance, according to Members' 
mandates, had to be development-friendly.  S econd, Brazil would not accept any negotiations that 
would presuppose the existence of any type of imba lance against one or many developing countries 
requiring the selective reopening of the package.  If  Members reopened one end of the package, the 
whole package was reopened.  Brazil also did not see how and whether Members should 
fundamentally change the landing zone.  Any adjustment s to the package had to be at the margins, had 
to be balanced, and had to take into account that  the flexibilities negotiated over the past seven years 
were an integral part of the package.  Attemp ts to renegotiate these flexibilities were not minor 
adjustments, and Brazil fully supported the statement by  China in this regard.  No type of process that 
was envisaged could disregard the multilateral natu re of the negotiations.  Having said that, Brazil 
was open to discussing with other Members in search of a way forward. 
46. The representative of Mexico  said that like the Director-General, his country was convinced 
that the economic situation continued to be very diff icult, but that there were encouraging signs in the 
various areas of the financial economy and the real  economy.  Also like him, Mexico was convinced 
that unemployment would continue to grow and that  this might increase protectionist temptations.  As 
had been said repeatedly, the conclusion of the Round was the greatest insurance against 
protectionism, and that had to be Members' objectiv e.  Consequently, they needed to restart the 
political process as soon as possible, although that in itself was not sufficient.  They needed to use 
their imagination in order to achieve the results all desired.  This resumption of the political process 
had to start from the point at which Members had le ft it.  The progress achieved in over seven years 
could not be set aside, and it was from that point that  Members had to continue the negotiations.  They 
needed to find a way to bring the Round to a rapid conclusion.  There was no doubt that closing the existing gaps in modalities was fundamental, but ther e might be elements that were complementary 
and that would enable Members to advance as rapidl y as possible.  Mexico was ready to explore any 
idea that would enable Members to achieve, as soon as possible, the conclusion of the Development 
Round, but without abandoning what had been achie ved so far, without abandoning the multilateral 
approach and without adding themes that were not in the mandate of the negotiations.  The outcome 
of the Round had to be balanced and could not cha nge what had been achieved so far.  Mexico was 
ready to enter into discussions with all interested pa rties in order to seek new paths that would enable 
Members to attain rapidly the objective all desired. 
47. The representative of Australia
 said his country had been an extremely strong supporter of the 
conclusion of the Doha Round and of the early co mpletion of modalities.  He recalled that in 
discussions towards the end of 2008 in this regard , Australia had said it also wanted an ambitious 
outcome, but bore in mind the importance of  development aspects.  Australia had been one of the first Members to introduce duty-free quota-free acces s for LDCs without exceptions and without any 
implementation period, so it had provided a very ear ly harvest.  Members now had to think how they 
were going to bring this Round to an end, and the issues thrown up in the context of modalities again 
had to be resolved one way or another.  As th e United States had rightly pointed out, the modalities 
were not just formulas – they did include a request -offer element, whether Members wanted that or 
not.  Australia had been one of those who had strongly supported a credible reliance on formulas 
rather than a request-offer approach, given the e xperience in the Uruguay Round.  While there seemed 
to be various interpretations of what the Directo r-General had said, his delegation had not heard him 
say anything that suggested Members were going to abandon modalities or the multilateral process.  WT/GC/M/120 
 Page 19 
 
 
  Bilateral and plurilateral discussions were, always had been and would cont inue to be an essential 
component of the multilateral process.  What was im portant was that all Members had the ability, as 
they approached the final stages of the Round, to ha ve an input into those negotiations.  He suspected 
that at the end of the present meeting, there would be a flurry of bilateral and plurilateral meetings that 
would take place within the WTO, in missions and in  the restaurants of Geneva, and this was a very 
healthy component of the multilateral process.  
48. The General Council took note  of the Director-General's report and of the statements. 
2. Work Programme on Small Economies – Report by the Chairman of the Dedicated 
Session of the Committee on Trade and Development 
49. The Chairman  recalled that at its meeting in Febr uary and March 2002, the General Council 
had taken note of a framework and procedures fo r the conduct of the Work Programme on Small 
Economies, under which this Work Programme w ould be a standing item on the General Council's 
agenda.  The framework and procedures also pr ovided that the Committee on Trade and Development 
should report regularly to the General Council on th e progress of work in its Dedicated Sessions on 
this subject.  Furthermore, Ministers at Hong Kong had instructed the CTD, under the overall 
responsibility of the General Council,  to continue the work in the Dedicated Session and to monitor 
progress of the small economies' proposals in the ne gotiating and other bodies.  In December 2006, on 
the basis of a report by the Chair of the CTD in Dedicated Session, the General Council had taken note that Members in that body would be pursui ng the substantive work under the Small Economies 
Work Programme.  In the absence of the Chairman  of the Dedicated Session of the CTD, and on his 
request and behalf, he invited Mr. Faizel Ismail (Sout h Africa), the previous Chair of the CTD, to read 
his report on developments in this area since the February Council. 
50. In the absence of the Chairman of the Dedicat ed Session of the CTD, and on his request and 
behalf, Mr. Ismail (South Africa), the previous Chair of the CTD
, reported that the Dedicated Session 
of the CTD had continued to monitor issues of inte rest to SVEs as they developed in the Doha Round 
and in the WTO Committees.  In this context, the Secretariat had recently issued a revision of the 
compilation document with the SVE proposals and their treatment in the draft modalities and 
Chairmen's texts (WT/COMTD/SE/W/22 Rev.3 and Corr.1).  The compilation document would be reviewed at the next meeting of the Dedicated S ession, which would be held back-to-back with the 
regular meeting of the CTD in July.  In the past months the proponents of SV Es and the Secretariat's 
Financial Crisis Task Force had also  held consultations to monitor th e situation and to gather as much 
information as possible in order to identify the scope and possible reperc ussions of the economic 
crisis on the SVEs.  He understood that the SVE proponents had communicated their concerns to the 
Task Force, and he would keep the General C ouncil informed about how work on this issue was 
progressing. 
51. The representative of Barbados
, on behalf of the SVEs , expressed their appreciation for the 
continued interest of the Chair of the Dedicated  Session and his predecessor in SVE issues, and for 
the Chair's report.  While the Dedicated Session ha d not met since the February General Council, the 
SVEs continued to be engaged in the ongoing ne gotiations.  They acknowledged the work of the 
Secretariat as contained in document WT/COMTD /SE/W/22/Rev.3 and Corr.1, which was the most 
recent version of the compilation document reflec ting the WTO proposals and reports where SVEs 
issues were referenced.  This continued to be a valuable monitoring document both for Members in 
Geneva as wells as for the non-resident SVEs currently  participating in the Geneva Week activities.  
The SVEs also thanked the Chair of the Financial Crisis Task Force for continuing to meet and 
exchange views with them on issues related to  the impact of the economic slowdown on their 
economies.  Regarding Geneva w eek, the SVEs wished to further commend the Secretariat for 
working with them to ensure there were dedicat ed slots for their issues in the Geneva Week 
programme.  This was an opportunity for resident  SVE delegations to share with non-resident WT/GC/M/120 
Page 20  
 
  colleagues the progress made and hurdles remaining re garding SVEs' issues in the WTO.  This was 
further recognition of the importance of the SVE ar chitecture as a mechanism to allow the smallest 
and most vulnerable Members to express their view s on the progress and challenges evident in the 
DDA negotiations, the outcome of which would have an impact on their economies.  The SVEs welcomed the new Chairman of the Agriculture  negotiations and we looked forward to his 
continuation of the progress made by his predecessor.  They also wished to take this opportunity to 
warmly welcome the re-election of Mr. Pascal Lamy as Director General.  Mr. Lamy recognized the constraints being experienced by small economies and exhibited an appreciation of the need for 
treatment commensurate with their capacity to contri bute.  They looked forward to a continuation of 
this support, and the support of all Members,  as one moved towards a conclusion of the DDA. 
52. The General Council took note
 of the report by the Chairman of the Dedicated Session of the 
Committee on Trade and Development and of the statement. 
3. Non-recognition of rights under Article XXIV:6 and Article XXVIII of GATT 1994 – 
Communications from Honduras and Guatem ala (WT/GC/85, WT/GC/90 and Corr.1, 
WT/GC/100, WT/Min(05)/9) – Statement by the Chairman 
53. The Chairman  recalled that this matter had first been  raised by the delegations of Honduras 
and Guatemala at the Council meeting in December 2004 .  It had subsequently been considered by the 
General Council at each of its regular meetings sin ce then, without resolution.  In the light of the 
views expressed at these meetings, and the re quests for consultations made by Honduras and 
Guatemala and other delegations, his predecessors as Chair, and he, had held consultations regularly 
in order to assist in finding a way forward.  He recalled that the matter referred to the General Council 
concerned the non-recognition of claims of substa ntial interest submitted by Honduras and Guatemala 
in the very specific context of the EC's modification of its concessions as a result of enlargement from 15 to 25 members, and the modification of its  concession on bananas in its move to a tariff-only 
regime as from 1 January 2006.  This matter had been  brought to the General Council in keeping with 
Paragraph 4 of the 1980 Procedures for Negotiati ons under Article XXVIII, under which, when a 
Member renegotiating its Schedule did not recognize a claim of principal or substantial supplying 
interest, the Member making the claim "may refer the matter to the Council." 
54. At the February General Council meeting, hi s predecessor had reported to delegations on his 
most recent consultations.  In view  of the statements made at that Council, the latter had proposed that 
the General Council revert to this matter at the present  meeting.  The previous day he had held further 
consultations to allow delegati ons to be updated on contacts that  might have taken place among the 
parties directly concerned since February, and on an y developments on the overall banana issue that 
could provide a possible solution to the non-recognition issue raised in the Council.  He had invited to 
the consultations all the delegations  who had spoken on this issue at pr evious meetings of the Council, 
and made clear that the consultations were without  prejudice to any Member's rights under the WTO.  
He could report that while there had been little s ubstantive development overall since the February 
Council, the consultations had proved useful in cl arifying both the current state-of-play and its 
ramifications, as well as the steps that were inte nded to be taken in the coming weeks towards a 
resolution to the concerns of the delegations involved .  From what he had heard the previous day, he 
believed there was a glimmer of hope  that the threshold of the pa th towards convergence had been 
crossed. 
55. The representative of Honduras
 said his country regretted that it had been necessary to 
include once again on the Council's agenda the issue of Honduras's interest as a substantial supplier.  
His delegation wished to state its position on this ma tter before giving its views on the comprehensive 
solution to the banana problem set forth in the agreement reached on 27 July 2008.  Regarding the 
first issue, the applicable WTO ru les stated that the calculation had to be made on the basis of trade 
levels that would have existed in a market "fr ee from discriminatory quantitative restrictions", and  WT/GC/M/120 
 Page 21 
 
 
  thus, the period 1989-1991 should be used – a period  in which Honduras had been one of the leading 
suppliers of bananas to the EC, as recognized by WTO dispute settlement panels.  Moreover, 
according to the Understanding on the Interpretati on of Article XXVIII, there should be flexible 
application of the rules in the case of small a nd medium-sized developing countries that had been 
adversely affected by the withdrawal of a tariff  concession.  The way in which the EC had conducted 
the Article XXVIII and Article XXIV proceedings was inconsistent with transparency requirements 
and due process.  Honduras' position that the agreem ent of 27 July provided a suitable basis for 
settling the whole banana issue had not changed.  However, he repeated that it had never been 
Honduras' intention that the settlement of the banana issue – and hence the satisfaction of its claims as 
a substantial supplier – should be subject to a series of conditions that depended on the will of other 
countries or concerned matters that had nothing to do  with bananas.  No one would have thought that 
the EC would try to confront Honduras with the dilemma of resolving the Doha Round issues in 
exchange for its freedom from the illegal and discr iminatory tariff the EC had imposed on it.  He 
asked why Honduras should have to pay any price at all for the EC to honour its compliance 
obligations.  He repeated that for his Government , the agreement of 27 July provided a comprehensive 
and just means of putting an end to all aspects of th is dispute.  His delegation would further state for 
the record that the talks Honduras had recently held with the EC had not provided it with the kind of 
clarity and certainty it would need to negotiate th e substantive aspects of any settlement.  The EC had 
to withdraw its conditions, and should not under any circumstances be given the possibility of 
renewed non-compliance.  In other words, the ke y to a settlement was in the hands of the EC. 
56. The representative of Guatemala  thanked the Chairman for his report and his good offices 
regarding the consultations carried out the previous day on this matter.  He wished to refer to and 
endorse the views expressed by Honduras.  On this occasion, as the previous day, his delegation was 
sorry to have to inform Members that it had no subs tantial progress to report on this item, and that the 
situation had not changed since the May meeting of  the Council.  Consequently, the concerns it had 
expressed in this Council continued to exist.  He re peated that a comprehensive solution to the banana 
issue would bring to a final close all on-going di sputes and legal proceedings , including the current 
claim pertaining to bananas under GATT Articles XX IV and XXVIII.  His delegation's mandate was 
to monitor Guatemala's commercial and systemic inte rests.  It was optimistic and believed it was still 
possible for a definitive solution to be found to this  issue when the European  Communities effectively 
complied with the terms of the agreement on banan as reached in Geneva on 27 July 2008.  Until that 
was the case, Guatemala would conti nue to exercise its rights in the Council and in any other relevant 
body of this organization. 
57. The representative of Ecuador  said his delegation thanked the Chairman for his efforts to 
settle this matter.  As it had said in the past, for Ecuador the question was a systemic one in the WTO 
that was critical for the recognition of the ri ghts of small exporters under Articles XXIV:6 and 
XXVIII of the GATT 1994.  This agenda item had always inspired a long debate on the entire 
problem of bananas, a debate that avoided the subs tance of the issue because of a decision by the EC, 
which was seeking to resolve all of the matters rela ting to the long-standing banana dispute in a single 
package, including the present complaint by Honduras and Guatemala.  Ecuador wished to reach a 
definitive solution in the WTO to this recurring dead lock on bananas, a solution that could have been 
reached in July 2008.  In order to do so – an d it was hoped this would happen before the summer 
break – all Members who were directly  or indirectly involved in this di spute would have to be flexible 
and pragmatic.  Otherwise, they might end up prolonging the dispute in the DSB and hardening 
positions in the Doha negotiations. 
58. The representative of Panama  said his delegation wished to express its support for the 
statements by Guatemala and Honduras on this su bject.  Unlike Guatemala and Honduras, Panama 
was a principal supplier recognized by the Europ ean Communities in its access to that market.  
However, despite its status as a principal supplie r, Panama – like Guatemala and Honduras – had not 
been able to obtain the effective implementation of its rights, and accordingly urged the parties WT/GC/M/120 
Page 22  
 
  involved, in particular the EC, to seek pragmatic and realistic solutions.  The July 2008 agreement 
fully met these criteria, but his delegation was read y to take part in any discussions that might be 
necessary to deal once and fo r all with this issue. 
59. The representative of Mexico
 said his delegation wished to thank the Chairman for his efforts 
to try to find a solution to this matter.  Me xico obviously supported Honduras and Guatemala, but 
again had to reiterate that the only way to resolve this issue was through a definitive agreement on the 
longest running dispute in the WTO's history, which went back to a time when it was still the GATT.  
Consequently, Mexico urged the EC to reach an ag reement that would allow Members to bring an end 
to this situation where at every General Council meeting his delegation said more or less the same 
thing. 
60. The representative of  Colombia  thanked the Chairman for his report and his optimism.  The 
General Council would not still be d ealing with this issue if the European Communities had honoured 
the agreement reached on 27 July 2008.  However, Co lombia shared the Chair's view that it would be 
possible to reach an agreement soon if the n ecessary flexibility and pragmatism were shown. 
61. The representative of El Salvador  said his delegation wished to remind Members of his 
country's systemic interest in seeking solutions to the issue being discussed under this agenda item.  It 
hoped that in the course of 2009, Members would try to  find a rapid solution to the concerns raised by 
Guatemala and Honduras with respect to the recognition of rights under Articles XXIV:6 and XXVIII of the GATT 1994. 
62. The representative of Bolivia
 said that as all were aware, Bolivia supported the conclusion of 
an agreement favourable to the developing countries th at found themselves in this type of situation, 
and in particular Honduras and Guatemala, which ha d made the necessary effort to reach a solution as 
soon as possible.  In this connection, Bolivia called once again for greater flexibility on the part of the 
European Communities in order to reach an agreement. 
63. The representative of Cameroon  said he wished to recall his de legation's statements under this 
agenda item at previous meetings of the Genera l Council, particularly since on this long-standing 
issue, its position had remained the same.  Camer oon had always said that a lasting solution to the 
banana dispute could be found on ly through negotiation and an in clusive process which safeguarded 
the interests of all parties.  Having said this , Cameroon welcomed any suggestions that could 
contribute to this process.  However, a solution for th e sake of a solution – one that failed to take into 
account the identified and recognized interests of certain parties concerned – could not be a long-
lasting solution in the current context.  While it was true that the General Council was not necessarily 
a negotiating forum, these issues ha d been raised in this body as mu ch as in the Dispute Settlement 
Body.  If the approaches taken had not led to a defin itive and lasting solution, there had clearly been a 
problem.  Perhaps this was Members' opportunity to be more pragmatic, but also more inclusive, in 
order to reach a more lasting and definitive solution. 
64. The representative of the European Communities  thanked the Chairman for his report on the 
efforts he had undertaken, like many of his predeces sors, to reach agreement on the question of the 
negotiating rights of some countries.  As far as this  specific issue was concer ned, the Community had 
expressed its views many times and would reiterate its very clear position on this subject.  To those 
who regretted that Members had to discuss this item  again and again, he wished to recall that in 
July 2008 when the Director-General had finish ed his good offices exercise, the latter had made a 
proposal to the parties, and the only ones to acce pt it had been the EC and one Latin American 
country.  The EC regretted that at that time it had not been possible to reach an agreement, but some 
of the MFN suppliers had chosen to bring this subj ect into the Ministerial Conference to discuss it in 
the context of modalities, and as knew, Members had failed to achieve modalities.  His delegation had 
signalled on every occasion its readiness to sign the initial deal achieved in the discussions in  WT/GC/M/120 
 Page 23 
 
 
  July 2008 as soon as modalities were achieved.  The parties were now unfortunately in a situation 
where they had to find a solution which took account of the fact that modalities had not yet been achieved.  In this spirit, the EC had made a proposal already in January  2009, which again reflected its 
commitment to implement the July agreement at  the moment when modalities were achieved.  
However, the EC had also incorporated elements which took account of the fact that modalities had 
not been agreed.  Nevertheless, in substance the agreement discussed in July 2008 would be very 
much preserved with a proposal the EC had made.  Members had unfortunately spent a lot of time 
discussing process and details of the decision-maki ng process, but had advanced relatively well on 
this side, and hoped that the parties could soon enter into a discussion on the substance.  As a 
permanent optimist, he shared and appreciated the optimism the Chairman had brought to this 
discussion, and hoped that progress could be ma de and that Members would not miss another 
opportunity to conclude this  matter relatively soon. 
65. The General Council took note
 of the statements and agreed  to revert to this matter at its next 
meeting. 
4. Seventh Session of the Ministerial Conference – Communication from Uruguay 
(WT/GC/W/599) 
(a) Date and Venue (WT/GC/W/601 and Rev.1) 
(b) Election of officers 
66. The Chairman  drew attention to the communication from Uruguay in document 
WT/GC/W/599 requesting that the date and venue, and the election of officers, of the Seventh Session 
of the Ministerial Conference be placed on the Age nda of the present meeting.  He suggested that 
these two sub-items be taken up to gether, and invited th e delegation of Urugua y to introduce its 
communication . 
67. The representative of Uruguay  said that any Member could initiate the present discussion, 
since the convening of a Ministerial Conference was at the very least, a matter of interest to all 
Members.  His delegation wished to offer some co mments on the particular features, scope and the 
timing of such a decision.  First, when Uruguay had requested that this item be included on the agenda 
of the present meeting, it had done so convinced of th e need to bring an end to an informal discussion 
that had already lasted several months on the advi sability or not of calling a Ministerial Conference.  
Uruguay believed then, and continued to believe now , that it was necessary to discuss this matter 
formally and above all to take a decision, and not to continue for the fourth consecutive year to let 
circumstances and the mere pas sage of time prevent Members from convening a meeting of the main 
organ of this institution.  If one was encouraging the regularity and greater efficiency of all the WTO 
subsidiary organs and all its func tions, one had to do the same with regard to the main organ, which 
was at the very summit of the organizational pyramid.   Uruguay's main aim, therefore, was to take a 
decision on this matter.  Second, there was a need to  demystify Ministerial meetings.  In recent years, 
these had been synonymous with short meetings inte nded to reach a particular agreement concerning 
the Doha negotiations.  That had perhaps been n ecessary, but in fact the failure to convene a 
Ministerial Conference since 2005 had given rise to three factors that needed to be rectified.  First, 
inadvertently an informal approach had come to replace an institutionalized approach.  Second, the 
Doha Round had monopolized political attention and th e proceedings of the WTO.  Third, the false 
idea had gained ground that meetings of Ministers of Trade were justified only when attempting to 
achieve major agreements.  That was not what Ur uguay was proposing.  It was proposing no more, 
but certainly no less, than to convene the Seventh Session of the Ministerial Conference, the main organ of this institution.  Uruguay did not ex pect, nor should the Members expect, specific 
agreements or major decisions, either for th e WTO as a whole or for the Doha Round.  The 
Ministerial Conference should meet at least once every two years in order to analyse the current state WT/GC/M/120 
Page 24  
 
  of the multilateral trading system and to enable the Ministers of all Members to set out their priorities 
publicly in the presence of the international community of which they formed part.  In short, meetings 
of the Ministers of Trade should be held with at  least the frequency requ ired by the Marrakesh 
Agreement and should be seen, as far as their frequenc y and the expectations to which they gave rise 
were concerned, in the same way as the Ministerial meetings of the International Monetary Fund and 
the World Bank. 
68. Demystifying and reducing expectations of the regular sessions of the Ministerial Conference 
in no way implied minimizing the importance of the wo rk of that organ, but rather the very opposite, 
as regular meetings of all Ministers would strengthe n political participation and the collective sense of 
the relevance of this internationa l organization, thereby possibly facilitating all the functions of the 
WTO, including perhaps the Doha Round negotiations.  That aspect was of vital importance in any 
circumstances, but particularly so at a time when  international trade was su ffering one of its deepest 
crises.  For an international organization direct ed by its Members, as was the case with the WTO, 
regular, direct and formal political participatio n could only increase collective confidence and, 
therefore, international cohesion.  It was the stre ngth of, and the confidence in, institutions that would 
give Members the greatest reinsurance in the face of an economic crisis causing huge social 
consequences and growing domestic political pressures.   Regarding the subject of the meeting, as a 
consequence of all the reasons mentioned above, Uru guay understood that there was no need to have a 
specific theme in order to be able to convene the main organ of this institution.  The convening of a 
Ministerial Conference every two years was not an option but a legal obligation, and therefore there was no requirement for a theme to make a regular  session legitimate.  However, in the current 
circumstances, in order to achieve a certain regul arity with a view to demystifying Ministerial 
meetings and in order to reinvigorate collective pa rticipation, it might be a good idea to have a broad 
central topic, a sort of theme guiding the deliberati ons.  In this connection, what the Chairman had 
proposed in informal consultations seemed to be ac ceptable and appropriate.  The organization of the 
meeting should be simple, and the central objectives those previously mentioned.  In any event, the 
agenda would be agreed at a later date, as would the slate of officers.  What Members needed to do at 
the present meeting was to agree to convene the Mi nisterial Conference and to add this decision to 
other political signals Members would be giving at the present meeting – signals which, acting 
together as a whole, would reinforce vis-à-vis  the international community, economic actors and civil 
society the importance international trade and a multilateral rules-based system had for all. 
69. The Chairman
 recalled3 that the question of the holding of the next Ministerial Conference 
had been the subject of consultations by su ccessive Chairmen of the General Council since 
December 2005, when Ministers in Hong Kong had re quested the Council to hold such consultations 
with a view to determining the date and venue of the Seventh Session.  At the February 2009 
General Council, his predecessor had made a statement on this issue, following consultations he had 
held, and had suggested that clarity was needed on some of the parameters surrounding the holding of 
such an event before any decision could be taken.  Since then, the consultations he had been holding 
on this issue had indicated there was a strong and widespread feeling that a regular Ministerial 
Conference should take place in 2009, given that it had now been almost four years since the most recent Ministerial Conference in 2005.  He wished to stress the word "regular", as it had also become 
clear that this Conference was not intended to be a negotiating session – the DDA negotiations were 
on a separate track.  The intention was simply to fu lfil the Rules of Procedure agreed for sessions of 
the Ministerial Conference, adopted by the Gene ral Council in January 1995.  These, following on 
Article IV of the Marrakesh Agreement Establishing the WTO, provide that "[r]egular sessions of the 
Ministerial Conference shall be held at least once every two years." 
70. In his recent consultations on this matter, he had suggested that the Seventh Session of the 
Ministerial Conference could be based on three guiding principles which he termed "FIT" – Full 
                                                     
 
3 The statement was subsequently  circulated as JOB(09)/48.  WT/GC/M/120 
 Page 25 
 
 
  participation, Inclusiveness, and Transparency – and that for this reason, it should be centred around 
plenary sessions in which all Ministers could particip ate equally.  This idea had seemed to meet with 
widespread approval.  There also  seemed to be wide agreement among Members on setting an overall 
theme for discussion in the Plenary Sessions, which Ministers could address in their statements.  Ideas 
had also been put forward regarding the question of providing sub-themes for the Ministers' 
discussions, and the format in which discussion of these sub-themes could take place.  Taking all 
these points into consideration, it was clear that  one was planning a very different sort of 
Ministerial Conference from the recent past – one where the emphasis would be on transparency and 
open discussion rather than on small-group processes a nd informal negotiating structures.  It also 
followed that the aim need not be to negotiate a Ministerial Declaration, though of course Members 
would have to consider the most effective way of recording the substance of the Ministers' discussions 
and any convergence or conclusions they might reach.  In the light of what he had gleaned from his consultations on these matters, on 11 May he had circ ulated the draft decision contained in document 
WT/GC/W/601.  This draft decision set the dates for the Seventh Session – 30 November to 2 December, its venue – Geneva, a nd its overall theme.  Subsequent  discussion with delegations had 
indicated the need to review the proposed theme, an d after further consultations he had circulated the 
previous day document WT/GC/W/601/Rev.1, pr oposing as a general theme "The WTO, the 
Multilateral Trading System and the Current Globa l Economic Environment".  This document was 
also available outside the room.  The draft decision also established a mandate for the General Council Chairman to undertake all neces sary action to prepare the Seventh Session in 
consultation with Members and in co-operation with  the Director-General and the Swiss authorities. 
71. Regarding the second sub-item, Election of Officers, the Rules of Procedure for Sessions of 
the Ministerial Conference required the election of a Chairperson and three Vice Chairpersons.  As noted in Uruguay's communication, Ministers in Hong Kong had requested the Council to hold consultations on this question, as well as on the ques tion of date and venue.  These requests were very 
much in line with the practice of  the recent past, and on each previous occasion the Council had first 
decided on the question of date and venue, and then taken up the electi on of officers at a later date.  
From his consultations thus far, it was clear that th is latter issue required furt her consideration, and he 
suggested that it be taken up in the consultations  to take place under the mandate provided to the 
General Council Chairman in the draft decision before  Members.  It was also  under this mandate that 
he would be taking up all aspects of the organizati on of the Seventh Session.  Among the points raised 
in his consultations so far which he had just men tioned, he believed that preparing the substantive 
agenda would be central to how Members prepared the format and logistics of the Conference.  
Therefore, this issue was the logical starting point for the consultations he w ould be undertaking with 
Members in the near future.  These consultations w ould be carried out in line with the principles of 
full transparency and inclusiveness, so that Me mbers could together prepare the substance and 
logistics of the Seventh Session in a positive and efficient manner. 
72. Before taking up the draft decision, he wished to  stress a number of points.  There seemed to 
be wide agreement that, given the global economi c environment, this Conference should be a much 
more lean and economical event than in the past .  At the present juncture, holding the sort of 
Conference Members had become accustomed to w ould not only be inappropriate, but would no 
doubt be seen as extravagance.  This departure from past Ministerial Conferences could help 
Members establish a new model of Ministerial- level meeting conducive to good governance and 
overall review of the WTO, and one that was not  inextricably tied to any particular ongoing 
negotiations.  Needless to say, this kind of scal ed-down, no-frills, low-key meeting of Ministers on a 
regular biennial basis would require a similarly radical  change in delegations' approach to this event, 
particularly in terms of the numbers of representatives from each Member attending.  In practical terms, the Conference would take place during a fixed three-day period.  The Opening Ceremony 
would take place on the afternoon of the first da y, with Plenary Sessions taking place over the 
following two days.  A brief Closing Ceremony would th en take place at the end of the third day.  As 
in the past, there would be a time limit on the statements by Ministers, and all the statements would be WT/GC/M/120 
Page 26  
 
  on the record of the Ministerial Session, with the possibility of circulating longer statements where 
necessary.  Also as in the past, the speakers list would be open in advance, as per the normal practice 
for Ministerial Conferences. 
73. The physical space available for the Conference would inevitably be more constrained than in 
the recent past.  This meant, as he had suggested earlier, that Members would have to accept 
limitations in several areas, such as seating in the various sessions, hotel accommodation, and so on.  
It would, therefore, be in everyone's interest if dele gations were kept lean.  In this context, the nature 
of this Conference should be kept firmly in mind – the meeting was not intended as a negotiating 
session, but rather a regular gathering of Minister s to engage in a  br oader evaluation of the 
functioning of the multilateral trading system.  Follo wing the Council's decision on the date and venue 
of the Seventh Session, he would begin his consultations as soon as possible.  As in the past, 
information on the logistics and organization of the Ministerial Conference would be circulated by the 
Secretariat in due course.  Before he proposed that Members adopt the draft decision, he asked 
whether any delegation wished to take the floor. 
74. The representative of Switzerland
 said that in this matter his country was merely a service 
provider.  If Members decided to hold a Ministerial meeting in Geneva, Switzer land would be at their 
disposal to deal with the logistics and to do whatev er was necessary to ensure that the participants 
were comfortable.  It would do everything possibl e to make this Conference – organized by the WTO 
itself – a success.  He wished to stress, as the Director-General had said at the General Council 
meeting on 29-30 April, the absolute necessity that this Ministerial meeting be kept entirely separate 
from the Doha negotiations.  Switzerland hoped that even if it was merely  providing logistical 
services, it would be included in the consultations on  this matter.  In this case, it could agree to the 
draft decision proposed.  
75. The representative of India  said his delegation believed that a rules-based organization had to 
be seen to be adhering to its own rules to continue  to maintain its credibility and relevance in the 
global trading system.  India thus welcomed the d ecision that the Seventh Session would be held from 
30 November to 2 December 2009 in Geneva.  It al so broadly supported the suggestion for the theme 
of the meeting.  In these turbulent times of globa l economic and financial crisis, and steep drop in 
global economic output and trade, this was perhaps the most opportune time to analyze the contribution of the WTO and the multilateral trading system in responding to these crises, as well as 
chart its future course of action which would bring bene fits to all its members.  In this context, his 
delegation proposed that the following four essential areas of future work be included in regard to 
seeking a mandate from Ministers.  First was PTAs, RT As and Rules of Origin.  The proliferation of 
PTAs and RTAs was a fact of life that could not be ignored, notwithstanding their contribution to an eventual liberalization of world trade, as they dilu ted the MFN principle.  There was the possibility of 
inconsistency with GATT Article  XXIV and also the introduction of complex and diverse rules of 
origin.  The WTO could not remain a bystander to this spaghetti bowl of unilateral, multilateral and 
bilateral trade arrangements.  India proposed that th e WTO engage in active efforts to keep PTAs and 
RTAs negotiations as multilateral-friendly as possi ble through the "MFN-ization" of RTAs, by 
evolving general principles for RTAs so that they were the least-prejudicial to GATT Article I:1.  
India recognized that while there had been some useful work done on transparency, more work was 
required on other systemic issues.  The WTO could also consider how the concessions, and 
commitments and reductions of non-tariff measur es undertaken in the context of preferential 
arrangements could be multilateralized. 
76. The second area was Rules of Origin.  The multiplic ity of rules of origin had given rise to a 
situation where the same product had to meet valu e-added criteria in one country, manufacturing or 
processing operational criteria in another, and tariff cr iteria in a third country.  Apart from the fact that 
similar goods were accorded disparate treatment, th e manufacturers/exporters also found it difficult to 
manufacture goods to meet the requireme nts of particular PTAs.  It had been reported that the benefits  WT/GC/M/120 
 Page 27 
 
 
  deriving from the PTAs were not being fully reap ed because of difficulties in complying with the 
rules of origin.  The common declaration attached  to the WTO Agreement on Rules of Origin laid 
down only certain general principles as to how the pr eferential rules of origin were to be framed and 
applied by Members.  For the smooth conduct of  international trade, it was desirable that the 
preferential rules were re-visited so as to make th em user-friendly and less burdensome to traders.  
The WTO should initiate a work programme for harm onization of rules of origin across PTAs, and 
administration of these rules in a consistent, uniform , impartial and reasonable manner.  The third area 
was standards and reducing transition costs, wher e the WTO also had to focus on addressing issues 
with the specific purpose of reducing transition cost s of trade operators.  India was aware that the 
WTO was not a standards-setting body, but it noted with concern that after about a decade, world 
trade was still plagued by Members going it alone – making their own standards, devising their own 
procedures – with little regard for the core principle of the relevant WTO agreements.  Obviously this 
had to change, and a greater thrust had to be given to international efforts. 
77. The fourth area was revitalizing WTO committees.  It was a matter of concern that over time, 
these had stopped being a forum for discussion and deba te on trade issues related to the Committee.  
An immediate revitalizing of these committees an d making them the forum for discussion and 
resolution of specific trade concerns would make them  a body in which to discuss larger trade issues.  
This was essential if the WTO was to retain its re levance.  The last area was the creation of a trade 
information system.  A large number of Members considered that the current WTO notification 
system was of use only for historians.  India proposed  that it be converted into a Web-based integrated 
electronic information system.  This would be an authentic source and valuable tool as a trade 
information system for trade operators, and an analyt ical tool for policy-makers.  These were a few of 
his delegation's initial thoughts.  India remained co mmitted to contributing positively to the successful 
conduct of the Ministerial Conference. 
78. The representative of Kenya  said his delegation welcomed the proposal to convene the 
Seventh Session in Geneva on the dates proposed.  It  wished to underline that this was a statutory 
requirement under paragraph 1 of Article IV of the WTO Agreement, a requirement which Members 
had to fulfil in order to ensure that the multilatera l trading system remained credible and relevant.  
However, Kenya wished to reiterate and underscore  that the agenda and th eme of the Conference 
should be discussed in a transparent and all-inclusiv e manner, in order to ensure that its objectives 
were clear and reflected the economic realities preva iling in the world at present.  His delegation was 
grateful that the Chairman had emphasized the im portance of transparency and inclusiveness, and 
would support him in his endeavours to  ensure the Confer ence was a success. 
79. The representative of Chinese Taipei  thanked Uruguay for its timely and valuable 
contribution to this agenda item.  Strengtheni ng the multilateral trading system was the ongoing goal 
of the organization.  The words, "to develop an  integrated, more viable and durable multilateral 
trading system" were clearly inscribed in the Marra kesh Agreement Establishing the WTO.  This goal 
had become even more relevant to Members' work since the outbreak of the current global crisis.  In 
this regard, the Director-General had explained his desire to do this as his vision for his next tenure, 
which his delegation wished to turn progressively into  reality.  In order for discussions at a three-day 
Ministerial Conference to be as focussed and prod uctive as possible, Members should identify certain 
items in advance under the general theme.  For example, the DDA should still remain clearly in 
Members' sights.  The successful conclusion of an ambitious and balanced DDA was important to the 
credibility of the WTO  and to the strengthening of the multilateral trading system.  While his 
delegation agreed that this regular Session shoul d not be confused with a negotiating one, Members 
should not bury their heads in the sand by not menti oning their strong commitment to this urgent task 
at such a critical juncture.  A corrective and supportive statement coming out of this Ministerial 
Conference would surely give a much-need political push to Members' chance of completing the last 
20 per cent of the DDA marathon and finally crossing the finishing line.  Other possible items for 
discussion under the original general theme might in clude the impact of the current crisis on global WT/GC/M/120 
Page 28  
 
  trade and the response from the WTO, and the re viving and strengthening of the operation of WTO 
bodies, which had been captured by the revised gene ral theme.  Nevertheless, his delegation asked the 
Chairman to take this matter up in his consultati ons with delegations on th e preparations for the 
Seventh Session.  As for procedures and logistics, it would also be appreciated if the Chairman could 
recommend to the Council as soon as possible the fo rmat and the details of arrangements for the 
Conference so that Members could prepare.  Regard ing the election of officers for the Conference, his 
delegation agreed with the Chair's suggestion that he take up this matter in his consultations with 
delegations. 
80. The representative of Angola
 said his delegation wished to raise two important issues.  First 
was the need to establish very clear rules of procedur e for this meeting, given that one of the issues 
already raised was the need to keep the Sevent h Session separate from the Doha negotiations.  Also, 
given that another issue being discussed was how the organization functioned, it was necessary to 
clearly define how the rules on the functioning of the WTO might be affected, in order that participating Ministers could be properly briefed on what these rules would be.  A framework and clearly defined agenda should be established in a dvance so that in the coming months, delegations 
could prepare their Ministers for participation in this Conference.  
81. The Chairman
 said that at the present meeting Members were discussing only the date and 
venue of the Seventh Session.  Once this was agreed , he would convene inform al consultations on the 
possible agenda for the Conference, and Members w ould then have sufficient time to prepare their 
Ministers. 
82. The representative of El Salvador  said he first wished to thank Uruguay for its submission, 
which was very timely and the objectives of which El  Salvador fully shared.  His delegation supported 
the holding of a Ministerial Conference in the course of 2009, bearing in mind those provisions of Article IV.1 of the Agreement Establishing th e WTO relating to the holding of Ministerial 
Conferences, with representatives of all Members, at least once every two years.  Holding the Seventh 
Session in 2009 was important not only because the mo st recent meeting at this level had taken place 
in December 2005, but also because of the curre nt economic and trade scenario, which required 
particular attention on the part of the highest  decision-making organ of this organization.  
Furthermore, like Uruguay, El Salvador saw a distin ction between the holding of a regular Ministerial 
Conference and the meetings that should be convene d in the context of the DDA negotiations, which 
his delegation hoped to see reactivated in the near  future.  Both processes should take place in 
parallel.  El Salvador hoped that the draft decision in document WT/GC/W/601/Rev.1 could be 
adopted with a view to initiating the necessary prep arations for the holding of the Seventh Session, 
bearing in mind the limited time available for its l ogistical organization and the preparation of the 
substance to be discussed at the meeting, which – as the Chairman had said – had to be carried out in 
a transparent and inclusive manner so as to ensure a successful meeting that would help create a 
proper atmosphere for future Ministerial meetings in the context of the DDA. 
83. The General Council took note
 of the statements and adopted  the draft decision in document 
WT/GC/W/601/Rev.1.4 
5. The economic and financial crisis and it s repercussions on trade (WT/GC/W/602) 
84. The Chairman  drew attention to the communication from Argentina in document 
WT/GC/W/602, requesting that this item be placed on the Agenda of the present meeting, and invited 
that delegation to introduce its communication. 
                                                      
4 The Decision was subsequen tly circulated as WT/L/760.  WT/GC/M/120 
 Page 29 
 
 
  85. The representative of Argentina  said the economic crisis had clearly shown the need for a 
rapid and appropriate response on the part of coun tries and international organizations, both at the 
plurilateral and multilateral level.  It was therefor e obvious that the WTO should play a key role in 
this process in its area of specific competence – interna tional trade.  However, in various statements at 
previous meetings, his delegation had wondered to wh at extent the WTO, as an institution, currently 
possessed the tools to take up this challenge.  Argent ina's aim in this communication was to help to 
increase the WTO's capacity to respond to the economic  crisis and its impact on international trade, a 
process which had begun with the presentation of the Director-General's reports and had continued in 
the framework of the TPRB.  In this connection,  the present crisis made it necessary to go beyond the 
monitoring of the measures that had traditionall y been the subject of the work of the WTO 
committees, and to undertake a comprehensive an alysis of the various responses Members had 
devised to meet the crisis.  Work needed to  be done on different fronts – information and 
methodology.  This involved not only having more  and better information, but also using a 
methodology of analysis that would give a clear picture of the impact on trade of the stimulus measures, which did not necessarily come within the scope of the traditional type of measures.  With 
regard to information, the need to improve th e notification procedures had been a long-standing 
concern of Members, and considerable work on this  subject had already been initiated in the various 
regular committees.  It had to be recognized, however , that this crisis had shown the great limitations 
of the WTO to be able to obtain first-hand info rmation on the various measures being applied to 
confront this situation, even though such in formation was available to other international 
organizations.  Since the WTO was the main organi zation dealing with trade, Members had to have 
such information and be able to define the met hod of processing it.  With regard to methodology, as 
explained in the communication, Argentina proposed  that the stimulus packages should receive an 
analysis that was comprehensive, i.e. covering bo th goods and services, provided forecasts, including 
statistical estimates of the impact on trade, was specific – i.e. distinguished between horizontal 
measures and those focused on specific sectors – and was systematized, bringing together all the 
above-mentioned aspects.  It was particularly importa nt that such analysis should be carried out on a 
periodic basis and should enable Members to mon itor the implementation of such measures.  The 
methodology should be devised throu gh consultations between the Secretariat and the Members.  The 
initial aim of Argentina's communication was to impr ove transparency.  It was not intended to make a 
priori judgements on the compatibility of the aid packages with multi-disciplinary rules, but rather to 
develop instruments that would bring a better unders tanding of the impact such measures might have 
on international trade.  This was particularly impor tant for developing countries, which frequently did 
not possess the resources not only to provide aid and stimulus packages, but even to undertake an analysis of the impact such measures could have on multilateral trade in general or on bilateral trade.  
His delegation was ready to discuss the most appropr iate context in which to undertake an analysis 
such as the one suggested in the communication, and looked forward to receiving Members' 
comments, observations and suggestions. 
86. The representative of Mexico
 said his delegation welcomed Argentina's submission and 
appreciated its interest in exploring possibl e courses of action under the Trade Policy Review 
Mechanism.  The objectives set out by Argentina were  interesting, and the Secretariat, acting within 
the limits of its competence and capacity, might seek to extend its analysis to cover the impact on 
trade of the economic stimulus programmes.  Howeve r, having said that, it was clear that without the 
programmes of incentives introduced by those countri es able to do so, the world economy would have 
collapsed in the same way it had in the 1930s.  Sim ilarly, if the mistakes of the Great Depression were 
not to be repeated, such programmes had to be ne utral regarding their impact on trade.  Domestic 
production should not be supported at the expense of external competition, nor should domestic 
employment be promoted at the cost of jobs in  other countries which, observing the rules of the 
multilateral trading system, had established a netw ork of exchanges which in the past had made 
possible the rapid growth of the world economy and which in the current circumstances would make 
possible the recovery of that economy.  In par ticular, sectoral programmes should be managed with 
particular care, since they had a greater potential to distort trade, particularly those which required the WT/GC/M/120 
Page 30  
 
  use of domestic resources in the country allocating th em.  Mexico also wished to stress that incentive 
programmes – which were very necessary at these times – also had to be neutral with regard to trade. 
87. The representative of Ecuador
 said his country supported the recommendations in Argentina's  
communication, which should be taken very ser iously by the Council with a view to the 
Director-General implementing them immediately.  Although Ecuador had had no part in, nor did it 
feel committed by, any of the recommendations aris ing from the G-20 meeting, it wished to point out 
again that it had acted with complete transparency  and had continued to duly notify Members of the 
trade measures it had been obliged to adopt on acc ount of the present economic and financial crisis, 
which his country had not caused.  This contrasted  with the information that had come to his 
delegation about the large subsidies granted unila terally by some countries in the belief that 
their million-dollar bank rescue packages, direct sup port to specific industries and the resumption of 
subsidies to their agricultural exports complied w ith WTO rules, thereby accentuating the differences 
in the conditions of competition between Members and,  particularly, with the developing countries.  
All this needed to be very carefully monitored, in much the same way that Ecuador had allowed its 
balance-of-payments measures to be monitored, ev en though the IMF itself had recognized the serious 
economic difficulties his country was experiencing.  At the same time, one was once again seeing 
double standards applied in this organization.  Ecuador understood the impact on the trade of its 
partners in the region as a result of the application of restrictions, and was attempting to meet their 
concerns.  It did not understand that the countries mo st responsible for distortions in world trade in 
agriculture – those that did not comply with DSB recommendations and rulings, which applied 
specific anti-dumping practices condemned on numerous  occasions in the DSB, and which granted 
large subsidies – should show systemic concerns  based on the creation of supposed precedents for 
future cases.  Ecuador once again requested the Dir ector-General to ensure that in addition to the 
recommendations made by Argentina, any monitori ng by the WTO should cover, in particular, the 
following practices:  the long-standing failures to  comply with the recommendations and rulings of 
the DSB that littered the agendas of that body's mee tings;  the trade-related concerns that has also 
occupied for years the agendas of the SPS and TB T Committees;  the indiscriminate application of 
quarantine measures, in particular, to agricultu ral products from developing countries;  and the 
indiscriminate application of anti-dumping measure s, many of which followed on from practices 
systematically condemned in the DSB as illegal. 
88. The representative of Thailand  added his delegation's support to Argentina's proposal. 
Thailand supported Argentina's views that additio nal action should be undertaken by the TPRB, 
particularly in addressing the impact of potentia lly trade-restricting and/ or distorting measures 
adopted by some Members.  Th e Secretariat could help Member s, especially developing-country 
Members, who might not have the relevant data or capacity to effectively assess the impact such measures
 might have on their trade on a regular basis.  This was a good proposal and would help 
strengthen the overall functioning of the WTO and assist many Members in understanding and, as 
appropriate, reacting to policy measures that ha d been borne out of the present global economic 
downturn.  The proposal would enhance greater tran sparency on the use of these measures that stood 
to hurt developing countries more in times of crisis , given their lack of resources to provide the same. 
89. The representative of Norway  said her country appreciated many of the concerns raised by 
Argentina.  A full analysis of possible protectionist  trends could not be focused disproportionately on 
areas with strict notification requirements.  Arge ntina's call for better data and sound analysis had 
merit.  The Director-General's reports were, to a la rge extent, taking this into account.  There had been 
a significant improvement in the second report over the first.  The Director-General's invitation to Members to provide input to the third report specifically highlighted the intention to report on any impact of domestic policy actions, including fiscal po licy and action in support of the financial sector.  
Furthermore, she wished to note that her Gove rnment was actively pursuing counteracting the 
negative effects of the global downturn through fi scal and monetary policies.  The measures were 
aimed at stimulating economic activity thro ugh increasing domestic demand in general.   WT/GC/M/120 
 Page 31 
 
 
  Municipalities were being stimulated to buy and invest more, but not by discriminating between 
suppliers.  Norway's export industries had not been especially targeted, other than through increasing 
their access to credit when credit lines dried up.  This should be seen as a positive contribution to 
keeping trade and trade financing rolling.  Th e said measures had been reported in full to the 
Secretariat prior to the issuance of the latest repor t.  Needless to say, Norway had no objection to 
these measures being subjected to scrutiny and further analysis by the Secretariat and by Members.  
Members had expressed their views on the Director-General's reports in the TPRB, and would no doubt continue to do so in future. 
90. The representative of Canada
 thanked Argentina for having provided a very thought-
provoking paper.  This was the kind of useful i ssue Members should be discussing in the General 
Council.  His delegation had been saying from the beginning that it was important to be transparent 
and to make information available.  Greater tran sparency and understanding of the trade policies and 
practices of Members would contribute positively to their efforts to respond to the global economic crisis.  Canada had been very supportive of the WTO's factual monitoring work and felt it had been helpful in providing a broad overview, particularly  during the present uncertain times.  His delegation 
liked to think this work had help ed keep greater occurrences of prot ectionism in check.  Therefore, 
Canada also saw value in having the WTO analyze tr ade and trade-related tre nds and developments in 
response to the financial and economic crisis.  Howe ver, it hoped this could be carried out in an 
objective fashion and did not become a finger-pointing exercise.  One key objective should be to strive to ensure that specific me asures or countries were not singled out.  All Members were in this 
global economic downturn together, and what would be most useful would be to  have the WTO take a 
positive approach and look at how trade could be used  as an instrument to help the world get out of 
the current recession.  Members need ed to keep in mind that their ultimate goal was to continue to 
work together to stimulate trade and strengthen the in ternational trading system for all.  From a more 
practical standpoint, should it be agreed that the Secretariat would carry out analytical work, he 
wished to emphasize three points:  (i) this would ha ve to include all measures, not just a selective sub-
set;  (ii) one factor that would need to be ta ken into account was that in some cases, announced 
measures were still in the process of being implemente d, and it might take some time to see the full 
effects;  and (iii) Canada trusted the Secretariat would take into account analytical work that was 
taking place elsewhere. 
91. The representative of Turkey
 said he had followed Argentina’s statement with great interest.  
The stimulus packages, which amounted to trillions of dollars, had asymmetrical weight over all other 
measures in terms of both positive and negative extern alities.  However, they had become essential in 
times of crisis to keep the multilateral trading system  functioning, provided they were trade-friendly.  
As Turkey had said at the General Council meeting in February, the stimulus packages being adopted 
by various governments could be tolerated for a limited period as political reality or political 
necessity.  Members should keep in mind that if stim ulus packages turned into general practices, the 
danger of undermining what they had worked so ha rd to achieve would also be a reality.  At the 
TPRB informal meeting on 9 February 2009 when th e Secretariat’s first re port on trade measures had 
been discussed, his delegation had emphasized that the report should not only give a static picture, but 
also provide a dynamic assessment of the link between  the crisis and its influence on protectionist 
policy practices.  It had also said that stimulus packages and programmes should be calibrated in such 
a way that they did not create additional tension over global trade.  Turkey was pleased to see that its 
concerns were also shared by Argentina. 
92. The representative of the European Communities  thanked Argentina for its thoughtful 
communication.  Concerning the EC's general approach  to the issues raised in Argentina's paper, it 
stuck to the pledge of the G-20 London Summit De claration, especially the commitment to refrain 
from raising new barriers to trade and to minimize  any negative impact on trade and investment of 
domestic policy actions.  Further, the EC fully su pported the work done in  the TPRB framework and 
welcomed related initiatives of monitoring and tran sparency of relevant trade measures taken in WT/GC/M/120 
Page 32  
 
  response to the economic and financial crisis.  The EC was concerned about the lack of meaningful 
notifications by many Members.  It therefore supported efforts to improve the timeliness, quality and content of notifications overall, and remained ope n to discussing concrete proposals to that effect.  
However, the present discussion should clearly  take place in the Committee on Subsidies and 
Countervailing Measures, and not in the General C ouncil.  It was not for the General Council to 
prejudge the outcome of that Committee's work.  Ho wever, he recalled that the EC remained most 
concerned about measures having the most direct imp act on trade, such as tariff measures, restrictive 
import licensing, excessive import surcharges, and excessive use of antidumping duties and safeguards to protect boarders.  Regarding subsidies,  the EC was very transparent about its subsidies 
regime, as one could see from the first report of the Di rector-General to the TPRB in January 2009.  It 
had communicated to the Secretariat all the resp ective measures taken by the EC and its members 
States.  Similarly, the EC had regularly and in great detail notified measures concerning trade in 
goods under the Subsidies Agreement, which, unf ortunately, was not true for all Members. 
93. The representative of Zambia
 said his delegation commended Argentina for raising this 
matter.  While the current data showed that Member s had not, to a large extent, applied protectionist 
measures, there was still a need to continue monito ring and studying their effects and implications of 
the fiscal and economic stimulus plans formulated by the more developed countries.  The burden was on those who had developed these stimulus packages to provide the necessary information to the 
WTO on the measures and trade implications, in a ccordance with the spirit of Annex III of the 
Marrakesh Agreement.  The stimulus plans had substantial elements of subsidies and written 
principles of buy- and lend-local.  It was therefor e all the more important that thorough study be done 
of these packages.  Perhaps the l esson for WTO was that there was need for an effective subsidy 
discipline not only in Agriculture.  Perhaps the curre nt situation had taught Members that they might 
need to revisit the idea of having a fair compe tition regime within the WTO.  Indeed, issues of 
subsidies, antidumping, safeguards, etc. had fair competition at their core.  Zambia hoped this issue 
would be taken up in another forum. 
94. The representative of India
 said his delegation fully agreed with the content of Argentina's 
submission and the proposal for analytical work by the Secretariat.  The huge financial support 
programmes and subsidies launched in  several countries as a response to the economic crisis had the 
potential to severely distort global competitive cond itions.  Such distortions would work to the 
disadvantage of developing countries, especially as th e latter did not have the capacity to match such 
support to the various sectors in their economie s currently facing economic slowdown.  Such 
measures had already had negative effects on the economies of developing countries.  Due to the 
increased demand for capital in developed countries, capital was being sucked out of the developing 
countries, raising capital costs and making it more  difficult for developing countries to finance 
development programmes.  To the extent that such measures were being used to build out 
manufacturing industries facing closure, they were also delaying or preventing the shifting of 
manufacturing to more efficient locations, usually in  developing countries.  The buy-local provisions 
in several of such measures created new market-a ccess barriers and hampered global trade flows.  
This issue also highlighted the gaping hole in WTO disciplines in subsidies and services.  If, as was 
generally believed, services were to be the main dr iver for future global trade growth, it was important 
to level the playing field by establishing discip lines on subsidies as early as possible.  Another area 
which should command attention was climate cha nge, which was the foremost environmental 
challenge of the present time.  As part of efforts to combat global warming, it had been suggested in 
certain quarters that trade measures should also be used to reduce greenhouse gas emissions.  The 
trade measures being discussed in various fora  were a carbon tax on imports, purchase of emission 
allowances as a condition of import, levying a co untervailing duty on carbon-intensive products, 
greenhouse-gas performance standards, etc.  There w as an apprehension that efforts to address climate 
change through unilateral trade measures could lead to tit-for-tat trade restrictions.  India therefore 
urged that a robust worldwide programme be taken up to provide relevant information about all such  WT/GC/M/120 
 Page 33 
 
 
  measures and to undertake a rigorous analysis to determine the trade-distorting impact of these 
measures. 
95. The representative of Bolivia  recalled that on various occasions  her delegation had expressed 
doubts as to whether there was a mandate for produc ing additional reports unless their format and 
content had been previously discussed and approved by all Members.  By "additional", she meant 
reports in addition to the report provided for in A nnex 3 of the Marrakesh Agreement relating to the 
Trade Policy Review Mechanism, Section G of wh ich read as follows:  "An annual overview of 
developments in the international trading envir onment which are having an impact on the multilateral 
trading system shall also be undertaken by the TPRB.   The overview is to be assisted by an annual 
report by the Director-General setting out major activities by the WTO and highlighting significant 
policy issues affecting the trading system".  Howeve r, in a constructive spirit, her delegation wished 
to make the following points.  At the two most re cent meetings of the General Council, Bolivia had 
emphasized that the format of such reports, to wh ich it had not agreed, should be subject to terms of 
reference devised by the Members, in order for them to be able to take a democratic and transparent 
decision.  In this connection, her delegation had ma de a series of constructive suggestions that had not 
been fully taken into account in the subsequent vers ions of the report.  One of the main points of 
concern for Bolivia was the failure initially to carry out an evaluation of the rescue measures taken by 
the developed countries, which were the countries res ponsible for the current financial crisis, causing 
the greatest distortions ever known in the market, carrying out a forced nationalization of the costs of the crisis, using the resources of their taxpayers fo r private ends in order to support a few companies 
and, finally, spreading the losses among all countries, in particular the developing countries, although 
without having previously distributed the benefits  among the latter.  Such measures had caused, and 
were continuing to cause, large losses for all co untries and, in addition,  were very probably 
inconsistent with and contrary to  WTO Agreements.  Accordingly, in  such circumstances Bolivia was 
requesting the introduction of a procedure that w ould make it possible to monitor the measures and 
policies implemented by the developed countries to c onfront the global crisis which they had caused.  
The proposals by Argentina met concerns similar to Bo livia's with regard to the measures being taken 
by the developed countries, in particular, those descr ibed in paragraph 4.b of Argentina's submission.  
Such measures were extremely disadvantageous for the developing countries, which were unable to 
respond to this crisis by means of subsidies to thei r producers and farmers, who were placed at a clear 
disadvantage by mechanisms providing subsidies and aid to the exports of the developed countries.  
These measures ended up, generally speaking, by ha ving the most serious and harmful consequences 
for the poorest and most vulnerable. 
96. Accordingly, Bolivia supported Argentina's proposal in document WT/GC/W/602, in 
particular the recommendation to the Director-Gener al relating to the implementation of a programme 
of work to obtain information and carry out the rele vant analysis that would determine the impact of 
the aid measures of the developed countries on trad e, with a view to informing Members of the 
potentially trade-restricting or distorting measure that were being adopted, such as state aids and 
subsidies through fiscal stimulus and financial s upport programmes given to manufacturing industries 
and financial services.  In addition to the criteria se t out by Argentina in paragraph 14 of the document 
that should be taken into account in the preparation of  the work plan of the report – that it should be 
comprehensive, contain forecasts, be specific, sy stematized and periodic – Bolivia requested the 
introduction of two additional elements  that could reinforce this proposal.  First, that different criteria 
be recognized according to the level of developmen t, and second, that these policies and practices of 
the developed countries be analysed, in particular , with regard to their impact on the trade and 
economies of the developing countries.  Regarding the question of transparency, over the years her 
delegation had listened, in various WTO bodies, to  how Members, especially the more developed 
countries, drew attention to this principle.  The time had now come for those developed countries to 
show public opinion the importance of the concept of transparency by practising what they had 
preached on this issue. WT/GC/M/120 
Page 34  
 
  97. The representative of the Philippines
 thanked Argentina for its communication.  His country 
had always believed in the need to better understa nd the impact of measures such as state aids and 
subsidies through fiscal stimulus and financial support programmes adopted as a response to the 
current economic and financial crisis.  It also sh ared the view that ther e needed to be increased 
monitoring by the WTO of these measures which, when appropriate, should include thorough and 
informed analysis by the Secretariat.  Argentin a's communication provided very interesting views and 
suggestions in this regard.  However, as Members c ontinued with this exerci se, both with respect to 
tariff and non-tariff measures that were being reporte d and monitored and with respect to state aid and 
subsidies, the Philippines wished to echo the reminde r that the reports had no legal effect on the rights 
and obligations of Members, nor did they pr ejudge the WTO-consistency of any measures. 
98. The representative of the United States  said his delegation thanked Argentina for its 
submission and appreciated its interest in increased  transparency.  All should be thinking about the 
ways in which monitoring by the WTO could be done  most effectively and be most useful to the 
Members and the public.  His delegation's initial reacti ons were that many, if not all, of the measures 
identified in Argentina's paper were measures that  could be reviewed under the normal transparency 
provisions of the WTO committees, most notably the Subsidies Committee.  However, if it were 
determined necessary to have some additional mon itoring exercise, it would be important that this 
exercise be cast in a framework that was more ba lanced than the framework suggested in Argentina's 
submission, more symmetric in its coverage of Members, and non-prejudicial.  The paper spoke of 
measures habitually used by developed countries, in  particular those with greater economic strength 
or weight.  This did not sound very comprehensive in terms of membership coverage.  Another thing 
his delegation did not understand was what was meant by  "measures habitually used".  Everyone was 
talking about how unique the situation was, so it di d not seem that any Member had been in the habit 
of dispensing trillions of dollars, m onth after month, to support its fina ncial institutions.  He wished to 
point this out as an example of what seemed to  be less than completely neutral wording. 
99. In addition, the submission spoke of notifying and analysing "any actions in support to the 
financial system".  He asked whether Members rea lly wished to cast the net that wide, and whether 
this meant that all Members would notify to the WTO all actions by central banks to promote liquidity, as well as every regulatory action to resolve or recapitalise a financial institution.  For many countries, certainly in the United States, this would involve actions that were applicable to thousands 
of financial institutions.  He asked if this was a doable kind of notification requirement.  He further 
asked if the proposal would require that Members notify the WTO of every change in regulation or 
policy to strengthen the financial system, even when  it applied to all service suppliers – for example, 
new accounting rules.  Members needed to reflect car efully before jumping on the bandwagon of such 
a monumental monitoring exercise.  One reason was that such an exercise would be so broad and 
would require very significant resources from the Secr etariat.  His delegation wished to know whether 
the Secretariat would be able to make a wide ra nge of economic forecasts in an environment where 
policies and economic activities were in such great flux around the globe.  One had to look at the 
analysis of these issues.  This was an extremely co mplicated area, and it was very easy to say that all 
of these programmes were big subsidies programmes.  There were, perhaps, trade-distorting elements in some of these programmes, but at the same time  everyone was complaining about losing liquidity 
and capital flowing out of developing countries.  He asked whether it was believed that if these 
financial institutions collapsed, the situation would be better for anyone .  Thus, there was a balance.  
These were not measures that policy-makers were ha ppy to be implementing.  They were extreme 
measures, and while they might have trade-distorting elements, one needed to be a bit more refined in 
one's approach than to simply say this was all a big subsidy problem.  Members should think very 
carefully about this proposal and its objective befo re agreeing to move ahead with such a complex 
undertaking. 
100. The representative of Cuba
 said his delegation wished to thank Argentina for having 
submitted this important document and to express its support for the proposals contained therein,  WT/GC/M/120 
 Page 35 
 
 
  which had been endorsed by a large number of Me mbers.  Cuba shared the concerns expressed by 
many delegations.  His delegation had frequently read in the press that some countries had prohibited 
their banks from helping their branches in third co untries.  Others had decided to support their 
automobile industries, but only in order to save thei r own factories located on their own territory.  Yet 
others had been encouraging consumers to buy domestically-made products.  Obviously, all these 
approaches would need to be analysed to see if they  were consistent with the WTO agreements.  It 
was not a case of anyone being against protecting and saving jobs, industries, etc., but obviously the 
developing countries did not have the four trillion or more dollars that had already been spent to save 
banks, insurance companies, real estate institutions, automobile industries, and so on, principally in 
the developed countries.  They did not have such funds, but it was certain that their firms would find 
themselves in difficulty, as many already were, their survival would be threatened, and they would be 
bound to encounter in the marketplace the enterprise s of developed countries which, if they had not 
been rescued by public funds, would not have survived and would not be  able to compete.  This might 
well be unfair competition or market distortion.  This required Members' fu ll attention, and Cuba 
sincerely hoped that the Secretariat, in its fort hcoming reports, would be able to provide more 
information on this matter by means of the notifi cations from the Members applying such measures.  
Cuba did not believe that the way out of the cr isis would be through a policy of every man for 
himself.  What was needed was a world Marshall Pl an by means of which not only the enterprises in 
the developed countries would be rescued, but the e normous sums would also be used to help save 
enterprises in the developing countries.  Any other course of action would be a violation of the rules 
of this organization. 
101. The representative of Brazil  said his delegation welcomed Argentina's submission, which was 
a valuable contribution to the ongoing efforts by the WTO and its Members to monitor and preclude 
further aggravation of the impact of the economic a nd financial crisis on trade.  Brazil was in basic 
agreement with the premises of the paper, and had gone on the record to point out that developed 
countries and their treasuries should not resort to measures that further distorted competition in favour 
of their companies and producers.  The situation w as even worse in some ar eas.  In Services, for 
example, there was a legal void in WTO disciplines c oncerning subsidies.  As all were aware, the 
effects of the bail-out packages in the financial sector  were likely to be substantial in forging the post-
crisis scenario.  Brazil also shared Argentina's concerns regarding the implementation of the G-20 
Summit recommendations regarding trade, and Me mbers should strive to improve upon existing 
mechanisms.  There was indeed asymmetry of information among Members affecting, in  particular, 
developing countries regarding the impact of measur es such as state aids and subsidies, including 
agricultural subsidies.  State aids and subsidies we re the measures of choice  of developed countries 
and were likely to be as distorting, if not more so, than the more transparent strictly tariff-based 
measures.  Nevertheless, precisely because the impa ct of those measures was less obvious, there was a 
need for further analysis and scrutiny.  As indicated by Argentina, a role could be played by the 
Secretariat in filling the gap regarding the extent an d impact of those measures.  On the other hand, 
Members should be cautious, particularly bearing in mind that any such exercise could not affect Members' rights under the DSU.  Brazil stood ready to further pursue the issues raised by Argentina, 
in the General Council or in other WTO bodies. 
102. The representative of Australia
 said his delegation welcomed Argentina's submission which, 
as others had noted and the discussion had revealed , was thought-provoking.  Members had generally 
been very supportive of the TPRB process set-up by the Director-General, although frankly there was 
more Members could do in terms of active contribution to this particular proposal, and this needed to 
be considered as well.  In terms of the trade imp act of domestic policy actions, including fiscal policy 
and actions in support of the fi nancial sector, these needed to be examined in a factual and an 
objective manner.  The G-20 leaders in London ha d already committed themselves to minimizing any 
negative impact of such actions on trade and investment.  However, he assumed that no one was 
seriously questioning the need – and it was a need  for both developed and developing countries – for 
fiscal stimulus and financial support programmes in  the current difficult economic circumstances.  WT/GC/M/120 
Page 36  
 
  Canada had made a number of useful comments an d suggestions on Argentina's submission.  Among 
these was the need for a selective a pproach and to ensure that Members did not duplicate the work 
done in other multilateral bodies, as there was a great deal of work available, including publicly.  On 
the EC's list of the most trade-distorting measures, it had made a slight oversight in forgetting to 
mention agricultural export subsidies. 
103. The representative of Egypt
 said the issues discussed in Argentina's submission were vital and 
timely for the good functioning of the WTO rules-b ased system, particularly the monitoring exercise 
launched in the light of the unfolding deep global economic crisis.  His dele gation thanked Argentina 
for bringing forward the need to look more closely and analyse aspects of fiscal stimulus and financial 
and economic support programmes both to agricultu re and industry undertaken by Members in 
response to the current global economic downturn.  While Egypt understood the rational behind such 
programmes in such unprecedented times, it had beco me clear they would have long-term effects on 
competitiveness and economic activities around the world.   They would have even longer-term effects 
on restructuring many of these sectors in the future .  Consequently, Egypt welcomed ideas calling for 
robust monitoring and analytical tools within the WTO, and looked forward to the third report by the 
Director-General on the crisis and further analysis  on stimulus packages and financial and economic 
support provided to different economic activities around the world. 
104. The representative of Switzerland  thanked Argentina for its s ubmission in which, together 
with the present discussion, his delegation had foun d one point of agreement and two issues open to 
dispute.  First, Argentina's submission was in line w ith the Director-General's efforts to strengthen the 
monitoring of measures taken by Members, and to  give Members the opportunity to exercise peer 
pressure, which was so necessary.  The first matter of dispute in Argentina's document was the 
ideological attempt to make a distinction, that  was now very artificial, between developing and 
developed countries.  There appeared to be no de finition of which was which.  According to some 
criteria, Switzerland was a developing country, while  according to other criteria it was not.  The 
second discrepancy was the failure to give sufficient a ttention, either in the document itself or in any 
of the statements, to what was essentially a mechanic al issue – any measure taken by Liechtenstein or 
even by Switzerland, given their relative weight, woul d have less effect on their trading partners than 
if such a measure were taken by the United States, th e European Union, Japan, Brazil, India or China.  
Switzerland supported all efforts to strengthen dial ogue on these issues, but this should be done in 
accordance with a certain logic, and not on the basis of totally out-o f-date criteria, since a number of 
emerging economies rightly wished to express their vi ews and have more to say than others at the 
negotiating table. 
105. The representative of the Bolivarian Republic of Venezuela  said he wished to congratulate 
Argentina for having submitted this document, which was an important  contribution to the debate on 
these issues.  Venezuela supported the document, which was timely in its examination of trade 
policies, and had stated its opinion on such policies in  the context of the TPRB.  On that occasion, his 
delegation had observed that greater emphasis was be ing laid on what Arge ntina had described in 
paragraph 4.a of the document, wh ereas less importance had been given to the aspects covered in 
paragraph 4.b.  On that occasion, the Secretariat had been urged to recognize the importance of the 
document for the emphasis it laid on transparency.  Furthermore, it was clear that on repeated 
occasions, Members of the G-20 had insisted on the need to monitor all protectionist measures and 
any action which might distort trade.  Venezuela, li ke India, wished to emphasize that developing 
countries would be able to protect their trade only by means of tariff measures.  The developed 
countries usually did so by another mechanism – what was euphemistically known as stimulus 
measures.  It seemed that ther e was good protectionism and bad protectionism.  Venezuela did not 
regard as truthful all the pronouncements made sinc e the G-20 meeting that the way out of the crisis 
was to lay the responsibility for the current glob al problems at the door of tax havens and 
protectionism.  All knew that the econom ic crisis was not the fault of e ither tax havens or protectionist 
measures.  His delegation underst ood the attitude of the developed countries, even though this might  WT/GC/M/120 
 Page 37 
 
 
  seem contradictory, especially when they had indicated in the Council that it involved protecting jobs 
in their countries.  That was valid.  It was perfectly understandable that the government of a 
developed country should seek to guarantee the live lihood of a worker and his family and to ensure 
that the sources of employment did not dry up.  Ho wever, if such a concern was legitimate for a 
developed country, it was even more so for a devel oping country, which had to use tariff mechanisms 
to protect jobs for their populations liv ing in precarious economic circumstances. 
106. The representative of China  said his delegation welcomed and supported the submission by 
Argentina.  It understood that this was an exerci se for the purpose of transparency, and it would be 
very useful.  Members would be able to analyze notifications, and could te ll whether measures were 
trade-neutral or trade-distorting.  He was certain Members would make a clear distinction between the 
two, because there were fundamental differences be tween agricultural subsidies, export subsidies, 
bailout programmes for big banks, and bailout pr ogrammes for major auto companies, on the one 
hand, and the stimulus packages on expanding domestic  consumption, on raising energy efficiency 
and alternative energy to fight climate change, on improving people’s welfare, on education, on health 
care and on social security network, on the other.  Meanwhile, China was interested, as expressed by 
previous speakers, in how this would be made ope rational, and would welcome more concrete ideas in 
this regard. 
107. The representative of Japan  said her delegation welcomed the thought behind Argentina's 
submission, as transparency was very important and th e analysis would be very useful.  At the same 
time, Members should be careful regarding in which bodies they discussed certain issues like 
subsidies, as well as regarding the capacity of the Secretariat. 
108. The representative of Argentina  expressed Argentina's appreciation for delegations' comments 
on the document it had submitted.  In his initial st atement under this agenda item, he had explained 
that there seemed to be two areas which required hard work by Members – on the one hand, the aspect 
of information and, on the other, the aspect of evalua tion.  With regard to th e question of information, 
he had made clear that the current models for no tification were not the most appropriate for the 
circumstances Members were now experiencing.  They  needed to study this matter and also how to 
process the information they might receive and ought to obtain.  On the other hand, his delegation had 
been very careful, when speaking of the possible methodology for analyzing this issue, in order to make it clear that the methodology should, first and foremost, be determined in consultations between 
the Secretariat and the Members, so that it derived from a decision by the whole membership.  Finally, Argentina had said that it did not regard this exercise as a means of making a priori  
judgements on the compatibility of the aid packages, but  that what basically n eeded to be done was to 
gain a better understanding of the impact of such me asures.  In this connection, several observations 
had been made.  First, Argentina disagreed with the position taken by Switzerland as to whether there 
actually were developed and devel oping countries.  According to the expression that delegation had 
used, these were out-of-date criteria.  Trying to compare the poverty in Switzerland with the poverty 
in 80-90 per cent of the countries represented at th e present meeting required no further comment.  As 
far as his delegation knew – in any case, within this  organization – Members had a clear idea of which 
countries were the developed countries and which were the developing, and he hoped that this 
classification would continue to apply beyond th e next few years and the next negotiations. 
109. With regard to the statement by the United St ates, Argentina's concern was somewhat greater, 
for the following reason.  That delegation had asked what it had to notify in financial services.  In 
response, Argentina drew attention to the provisions  of Article III:3 of the General Agreement on 
Trade in Services relating to transparency:  "Each  Member shall promptly … inform the Council for 
Trade in Services of the introduction of any new, or  any changes to existing,  laws, regulations or 
administrative guidelines which significantly affect trade in services ...."  However, it was not for 
Argentina to tell the United States what it had to notif y.  It was worrying that the United States did not 
know what it had to notify, and was probably not even aware of the impact on trade of the measures it WT/GC/M/120 
Page 38  
 
  was introducing.  This illustrated the great impor tance of discussing and analyzing how to examine 
this issue.  Argentina's second difficulty related to the concept of exceptional measures.  No one 
doubted that Members were going through a situati on in which exceptional measures had been taken.  
However, the fact that the circumstances were exceptional did not justif y collateral damage.  
Members had heard such explanations many times and not just in the present forum.  Apparently, 
since the circumstances were exceptional, it was only of relative importance whether or not Members 
broke their commitments.  His delegation did not be lieve this to be the case, because as Egypt had 
said, the issues being examined would probably have  medium- and long-term consequences, and thus 
for many countries the collateral costs of this ex ercise might be extremely high.  His delegation did 
not wish to discuss at the present meeting – beca use this was not the right time – the issue of 
investment options or investment programmes cancelled by automobile companies in certain 
developing countries on account of the circumstances in which those companies now found themselves.  Thus, the debate had shown once again that there were issues that required analysis.  
However, it had to be focussed on the trade aspects  because of their importance and because this was 
the basic reason the organization had been established.   As he had said, there were some legal gaps 
that Members needed to examine.  They had to ex amine to what extent Members were fulfilling their 
obligations with regard to these no tifications and whether the exercise they were carrying out really 
helped the membership as a whole, or was simply  an exercise solely involving those who had 
obligations to notify under the already existing agreements. 
110. The representative of Switzerland
 said that Argentina had missed the point he had tried to 
make, which was that in a situation were the majo rs were taking measures, all those who were less 
than major were affected.  In this context ther e was no distinction between developing countries or 
industrialized countries.  Second, he wished to reca ll that in 1933, the per capita income of Argentina 
and Switzerland was exactly the same.  Third, the essential aspects of this discussion would come out 
in the next item on the agenda. 
111. The Director-General  said he wished to thank the delegation of Argentina for its contribution, 
which was a good reflection of the Secretariat's view s on two of the matters of substance it raised.  
The first was the need to improve the information obtained, inter alia,  on the stimulus programmes.  
Needless to say that in this area, the better the Members worked, the better the Secretariat worked.  If 
the Secretariat thought there was a need to im prove its information base, it was much more 
convincing for the Members to say this than for the Secretariat.  There rema ined the question of the 
most appropriate channel for notif ications, and here rules had been  adopted by the Members.  The 
Secretariat's role in this respect was to ensure tran sparency within the Secretariat, and this opening up 
process was underway.  This was what had led him to create the Task Force when the crisis had begun to gather momentum, and this was what he  had in mind for the period ahead, i.e. to 
de-compartmentalize, as far as possible, the availabl e expertise, competencies and information within 
the Secretariat.  This would remain within the conf ines of current procedures, obligations and rules.  
Member had to discuss how to improve notifications and how to improve the way they were reflected 
in the WTO database – what the Secretariat fed back to Members from the notifications they 
submitted.  In any case, this was a subject Members would have to revert to, crisis or no crisis, 
monitoring or no monitoring.  In the meantime, one was making do with what one had. 
112. Regarding the second point, he also agreed on the need to further develop the analysis 
accompanying the compilation of facts and informati on.  The second version of the report in April 
reflected progress in comparison with the first ve rsion, as had been clearly recognized during the 
second discussion in the TPRB.  He would make sure that the third version in June was also an 
improvement.  Members should give their feedback an this and, like the first two versions, it would be 
discussed.  These discussions had helped improve each successive version, and this would continue.  
He asked all Members to bear in mind that this ex ercise was being conducted without prejudice to the 
legality of the measures being examined.  It was pa rt of a general principle that was adopted by  WT/GC/M/120 
 Page 39 
 
 
  Members when the trade policy reviews were created, and this general principle on trade policy 
reviews applied to the monitoring towards which Members were now heading. 
113. The General Council took note  of the statements. 
6. Possible further action by WTO Members in response to the financial crisis – 
Communication from Chile, Colombia, Hong  Kong China, Israel, Korea, Malaysia, 
Mexico, Morocco, New Zealand, Norway, Pakistan, Peru, Singapore, Switzerland, 
Thailand and Turkey (WT/GC/118) – Communication from Colombia, Costa Rica, Hong Kong China, Malaysia, Mexico, New Zealand, Norway, Pakistan, Peru, Singapore, Switzerland, Turkey and Uruguay
5 (WT/GC/W/604) 
114. The Chairman  drew attention to the communication from Hong Kong, China on behalf of a 
number of Members, in document WT/GC/118 requesting that this item be placed on the agenda.  He 
also drew attention to the communication from Norway , also on behalf of a number of Members, in 
document WT/GC/W/604, and invited that de legation to introduce its communication. 
115. The representative of Norway , introducing the communication in WT/GC/W/604, said the  
global economy was currently experiencing its worst crisis since the Great Depression.  World trade 
had become one of the victims of the downturn, an d uncertainty still prevailed over its impact as well 
as predicting the future shape of the crisis.  By promoting open markets, non-discrimination and 
transparent trade rules, the multilateral trading system in the GATT/WTO had been conducive to 
improving the national welfare of all Members.  However, the current contraction of the global 
economy and international trade risked sending this su ccessful trend into reverse.  Growth in real 
global output was likely to fall by between one a nd two per cent in 2009, while world merchandise 
trade was forecast to contract by nine per cent.  This would adversely affect the economy of every 
Member.  Therefore, the cosponsors of th e communication in WT/GC/W/604 welcomed the 
Declaration by the leaders of the G-20 in London on 2 April and called on all Members to use their best efforts to minimise the negative aspects of  policy measures necessary to overcome the current 
crisis, and to make every effort  to resist protectionism and promote global trade.  One of the best 
shields against protectionist te ndencies would be the successful conclusion of the DDA.  The 
cosponsors remained committed to reaching an am bitious and balanced conclusion to the Doha 
Development Round, which was urgently needed, by building on the progress already made, including with regard to modalities.  Furthermore, they were committed to the following:  to refrain 
from raising new barriers to investment or to trade in goods and services, imposing new export 
restrictions, or implementing WTO-inconsistent measures to stimulate exports, and extended this 
pledge to the end of 2010;  to mi nimize any negative impact on trade and investment of their domestic 
policy actions, including fiscal policy and action in support of the financial sector – they would not 
retreat into financial protectionism, particularly measures that constrained worldwide capital flows, 
especially to developing countries;  to notify the WT O promptly of any such measures and to call on 
the Director-General to continue to monitor a nd report publicly on their adherence to these 
undertakings on a quarterly basis;  to take, at the sa me time, whatever steps they could to promote and 
facilitate trade and investment. 
116. Recognizing that the current crisis had a disp roportionate impact on the vulnerable in the 
poorest countries, and that they had a collective re sponsibility to mitigate the social impact of the 
crisis in order to minimize long-lasting damage to global potential, the cosponsors also reaffirmed 
commitments made on Aid for Trade and called upon  all the donors involved to commit expeditiously 
to the disbursement of funds earmarked for Aid fo r Trade.  They trusted that other Members would 
see the urgent need to resist resorting to pr otectionist measures and would want to associate 
                                                     
 
5 On 8 June the delegation of Chinese Taipei requested to be added to the list of cosponsors of 
document WT/GC/W/604. WT/GC/M/120 
Page 40  
 
  themselves with these commitments, as well as to jo in forces in order to develop complementary 
initiatives to this effect, together w ith the Members ready to do so.  While this text spoke for itself, 
she wished to reiterate the following.  Recent si gnals from some of the main financial markets 
indicated that the worse part of the crisis might be over and that there was light at the end of the 
tunnel.  Hopefully, this was true, and Members mi ght wonder why this initiative was being taken 
now.  Unfortunately, Norway had to agree with th e Director-General that the after-shock of the 
financial earthquake and the present economic recessi on would continue to be felt in trade as well as 
having a social impact in Members for a long tim e, albeit in different ways and magnitudes for 
individual Members.  This was why Members need ed to work together in the WTO, the main 
organization devoted to trade, in order to help  governments stand up to the mounting pressure for 
protectionism measures which would only make the situation worse.  The communication in 
WT/GC/W/604 was a political declaration with the objective, first, of welcoming the important 
declaration on resisting protectionism and promotin g global trade and investment by the G-20.  The 
text in the submission was true to the G-20 declar ation.  This was because the cosponsors considered 
that it was a good starting point for their work in the WTO.  The second objective was for the 
Members who were cosponsors to join forces with  Members in the G-20 who had already committed 
to these measures.  She noted that after the comm unication had been circulated, Chinese Taipei had 
asked to be added to the list of cosponsors.  Thir d, this was an invitation for others to join as 
cosponsors and/or to support this initiative at the present meeting of the General Council.  The 
communication was a work in progress.  A further ob jective could be to identify additional measures 
to be developed in the WTO as a supplement and fo llow-up to the monitoring mechanism set in place 
by the Director-General. 
117. The representative of Mexico
 said his country was pleased to cosponsor the initiative just read 
out by Norway, was grateful to that delegation for having carried out a large part of this work, and 
also invited other Members to join this initiative.  It would be highly desirable if all Members could 
make commitments to maintain the status quo,  although Mexico understood and respected the 
position of some developing countries which consid ered that the only measures available to them 
were trade-policy measures.  The macroeconomic pr oblems raised by the global recession should be 
solved by means of macroeconomic measures and not  trade measures, whose effect was to distribute 
domestic resources, favouring some less competitive sect ors at the expense of the more competitive.  
The previous day Patrick Messerlin, a well-known French  writer, had published a new article in which 
he stated that according to the ev idence, the number of protectioni st measures introduced had so far 
not been very large, and he had spoken very well of the measures adopt ed by Mexico.  Similarly, as 
the Director-General had said at the present meeting,  a number of indicators appeared to show that the 
global recession had touched bottom.  Mexico hoped this was the case and that the world economy would make a rapid recovery.  However, even  if that was so, unemployment rates, as the 
Director-General had said, would continue to ri se in the next few months, which would increase the 
temptation to use protectionist measures for the sect ors affected.  Distorting measures introduced by 
some were responded to by others, and that was how trade wars began.  Subject to what Brazil would 
say later on this issue, and which Mexico supported,  it was within this context that the support for 
dairy products granted by the European Commun ities, and the announcement of similar measures in 
this sector by the United States, had to be seen.  Th is affected several countries and was especially 
harmful for the developing countries that were producer s.  Furthermore, in bot h cases, it was contrary 
to the commitment made at the G-20 meeting.  His delegation urged the European Communities and 
the United States to eliminate these measures as s oon as possible in accordance with the commitments 
they had made at the G-20 meeting.  For these reasons , Mexico reiterated that it was keen to have the 
discussion of the initiative presented by Norway conti nued, and to have the greatest possible number 
of Members subscribe to it and maintain the standstill or status quo. 
118. The representative of Hong Kong, China
 said the current economic downturn had given rise 
to growing domestic pressure for protectionist m easures.  However, and as he hoped Members would 
agree, it was at this time of crisis that Members ha d to demonstrate their steadfast commitment to free  WT/GC/M/120 
 Page 41 
 
 
  trade.  This was the only way to en sure that international trade, which had been a key engine of global 
economic prosperity, would not be  hampered and would help driv e the global economy back firmly 
on to the road to recovery.  For this reason, Hong  Kong, China had been happy to join others in 
proposing the current agenda item for a discussion on the further actions Members should take in 
staving off protectionism.  His authorities had also signed off on the paper introduced by Norway on 
behalf of the cosponsors.  The communication contained some general commitments, which his 
delegation believed many other Memb ers should be able to undertake at the present stage in order to 
underline their resolve to fight off protectionism.  At the same time, as his delegation had said at the 
last TPRB meeting, Hong Kong, China and the othe r proponents of this agenda item had been 
exploring the feasibility of making more specific and objective standstill commitments.  Obviously, 
the form these complementary specific measures should take would depend on how well Members 
had been faring in warding off protectionism, th e force of which might grow further as Members 
endured the greater socio-economic pain inflicte d by the economic downturn.  Hong Kong, China 
would continue its work on this front and looked forward to the participation of other Members in 
developing initiatives that would help contribute furt her to the collective fight against protectionism. 
119. The representative of Singapore  said that as one of the cosponsors of the communication 
introduced by Norway, Singapore strongly endorsed the call to stand firm on protectionism and to 
promote global trade.  Following on the path of the G-20 leaders at the Washington and London Summits, as well as the APEC leaders in Lima in 2008, this declaration by a group of Members was timely and important.  There was no better time than the present for Members to make a commitment to reject protectionism and renew their pledge to the WTO rules-based multilateral trading system.  
The most severe dislocations of the economic crisis might possibly be behind Members, but there was 
every likelihood that the greatest challenges to open trade lay ahead.  Singapore hoped that in time, all 
Members would be able to join in this initiative.  Against the backdrop of the severe global economic 
downturn, all faced significant domestic political pressures to ameliorate the most immediate and acute effects of the crisis.  Pressures to look inward would be strong and in some cases, even natural.  
There was, however, a fine line between effective measures to help domestic economies, businesses 
and affected populations, and measures that could distor t or restrict international trade.  All Members 
had to resist this slide into protectionism, whic h they knew would only prolong the economic crisis 
and result in unpredictable complications.  In th is regard, Singapore urge d all Members to react 
realistically and positively as they weathered this cr isis.  The economic crisis presented an opportunity 
to undertake pro-trade reforms to build longer- term competitiveness.  Measures undertaken now 
would have enduring c onsequences on Members' respective economies as well as the global economy, 
and would determine whether their economies would su rge ahead or slide behind when the crisis was 
over.  Singapore therefore urged all Members to co sponsor this declaration and, where possible, to 
take on stronger disciplines to unilaterally reject tr ade-restrictive measures.  Actions were ultimately 
stronger than words.  However, in this initiativ e, some common words, especially from the entire 
membership, were better than no words at all.  Further, Singapore looke d forward to a renewed 
commitment from Members to conclude the DDA negotiations, which remained their strongest 
insurance policy against protectionism. 
120. The representative of New Zealand
 said his country was pleased to cosponsor the 
communication in WT/GC/W604.  New Zealand fully endorsed the message of  the G-20's November 
and April Declarations – as indeed all Member s should – that in these challenging economic times 
they had to reject descending into a spiral of reta liatory protectionism.  Like other APEC members, 
following the APEC leaders statement of 22 Nove mber 2008, New Zealand was already committed to 
the standstill arising from the G-20 Washington Declaration until the end of 2009.  The present communication effectively extended that commitment to  the end of 2010, consistent with the G-20 
London Declaration.  By this action it hoped to help support the achievement of the G-20's overall 
objective, as opposed to simply criticising any shortc omings in implementation, and hoped that other 
Members would join it in this initiative
.   That said, the privilege of G-20 membership needed to carry 
with it contingent responsibilities.  The onus was on th e largest and wealthiest of the G-20 to set an WT/GC/M/120 
Page 42  
 
  example in living up to the spirit of the anti-protecti onist message, particularly during such a difficult 
time for the multilateral trading system.  In this co ntext, the recent decision by the United States to 
follow the EU in re-establishing dairy export subsid ies through the DEIP caused real dismay.  It was 
difficult to think of an action by these two key Members that would send a more contrary signal to the 
rest of the membership about their commitment to resisting protectionist impulses.  New Zealand had 
been and remained deeply critical of the EU decisi on to reintroduce dairy export subsidies.  The only 
thing worse than one Member reintroducing such subsidies was that it had now led to another 
Member following suit.  This threatened a type  of tit-for-tat, beggar-thy-neighbour action that the 
membership had stressed needed to be avoided if, as a global community, Members were to avoid 
reliving the 
unfortunat e lessons of history.  His delegation was ve ry interested to hear what others had 
to say about this matter when it was raised under "Other Business", and noted that the measures taken 
by both the EU and the US had been termed as tempor ary.  Some in New Zealand might be tempted to 
say that in the face of those actions, New Zeala nd should not be joining the present communication.  
However, it was doing so, and called on both the European Communities and the United States to 
show leadership in removing these subsidies as soon as possible. 
121. The representative of Ukraine  said it was now absolutely clear that all economies were being 
hit by the current crisis – some already very hard, others less so, although this might be just a matter 
of time.  Since the outbreak of the crisis, Memb ers had seemed united in their awareness that the 
multilateral trading system was now being tested by the unprecedented circ umstances of a global 
downturn.  His country commended and would support any initiative along the lines of the 
G-20 Declaration, or any other initiative under the auspices of the WTO.  However, it called upon 
Members to work together to give these a meani ngful practical dimension.  At present, many 
countries faced the situation that measures taken by Members were being blessed by the statement 
that they were fully consistent with the WTO.  For example, the absence of bindings allowed some 
G-20 members – while not being in breach of WTO ru les – to raise tariffs considerably, de facto 
raising barriers to trade and resulting in their trade partners suffering huge losses.  In some cases they 
had changed tariff levels within a very wide range, which caused damage  to the trade of their partners, 
thus reducing the sustainability of trade and devel opment.  Calls for these countries to play by the 
rules should not mean that double standards were perm itted.  No country would thrive in this crisis, 
and the depth of the global fall would be measured by  the economy that fell the lowest.  There was no 
sense in counting on a speedy recovery on one's own, because like it or not, all were in the same boat.  
Practical steps would be to bind tariffs and in troduce a standstill as of summer 2008, to refrain from 
using those instruments which countries acceding to the WTO in the past decade had had to give up, 
to be extremely cautious with the introduction of  stimulus packages and to distinguish between 
stimulus packages and development packages.  This should not be done merely for the sake of a legal 
exercise or theory – they were strong and much-need ed practical steps that had to be taken now. 
122. The representative of Tanzania , on behalf of the LDC Group , said these countries welcomed 
and supported this important and rele vant proposal by Norway on behalf of the other cosponsors.  It 
was important to recognize that the developing count ries, and LDCs in particular, were the most 
vulnerable of this international fi nancial system in terms of the consequences of the present crisis.  
While the LDCs were still negotiating on the im plementation of duty-free quota-free market access, 
this facility was going to be severely affected, as  trade-financing credit to mitigate supply-side 
constraints would also be impacted negatively.  The flow of remittances and of foreign direct 
investment and overseas development aid which, were important for supporting the economies of 
LDCs, would be negatively affected as well.  More over, the crisis would impact on LDCs' economies, 
as there would definitely be a fall in the prices and volume of their raw materials exports and a decline 
in multi-product trade in the developing countries, particularly LDCs.  As the crisis deepened, if 
protectionist policies were adopted they would ruin  the WTO negotiations in progress.  As a result, 
the DFQF market access offered to LDCs would be put on hold.  Protectionism did not necessarily 
take the form of tariffs, subsidies and quotas.  Imposition of restrictive certification procedures on 
imports, stringent standards and rules of origin coul d also be seen in this light, as the LDCs had been  WT/GC/M/120 
 Page 43 
 
 
  experiencing when exporting to developed countries' markets.  Therefore, developed countries should 
be pressured into avoiding the temptation to use the financial crisis as a pretext for introducing 
protectionist policies, as these were disinvestment factors that would be fatal to the developing countries, including LDCs.  The only viable solution to the crisis was to have a firm commitment to 
the multilateral trading system, including the finalization of the DDA, without further ado, as 
recommended in Norway's document.  In the same vein , the LDCs also appreciated and supported the 
monitoring exercise and the surveillance mechanis m proposal tabled by Argentina in document 
WT/GC/W/602 for identification and detection of in consistencies in policies and measures and to 
make recommendations for remedial action by Member s to arrest such.  Such a mechanism should be 
designed to obtain information and undertake the rele vant analyses in order to determine the impact of 
these measures, not only in the current international situation but also in the medium and long terms.  
The LDCs needed to be supported in their efforts to reverse their current marginalization in world 
trade and to become integrated into the world economy and international trading system.  This 
included the immediate implementation of the Enhan ced Integrated Framework (EIF) and priority to 
benefit from the Aid for Trade initiative, particular ly in financing those issues contained in their 
Diagnostic Trade Integration Study that could not  be covered under the EIF, such as physical 
infrastructure. 
123. The representative of Chinese Taipei
 said his delegation subscribed to the objective of 
resisting protectionism through a collective effort  and collective responsibility.  It welcomed and 
supported the declaration by the G-20 in London, and believed that other Members could make a 
contribution as well, and could minimize the negative impact on trade while pursuing domestic 
policies to overcome the recession.  As Norway had sai d, Chinese Taipei wished to be a cosponsor of  
document WT/GC/W/604. 
124. The representative of Switzerland  said his delegation wished to emphasize how much it 
welcomed this initiative, in which Switzerland had pa rticipated.  For his country, it constituted not the 
end but the start of a process.  According to all th e statements by Members' political authorities, all 
delegations should be united in applauding this st atement, because it reflected the interests of all 
Members.  His delegation therefore called upon all the developed and developing-country Members to 
endorse this statement and to support the effort s that its cosponsors were making to combat 
protectionism.  Members had to strengthen their allies so that the ideas governing the multilateral 
system dominated the short-term interests of a few protectionists.  Switzerland was concerned by the numerous signs around the world of de veloped and developing-country lo bbies that were in favour of 
closing borders.  All knew what ha ppened if countries closed borders – they had found out in the 
1930s.  Another point of concern, which New Z ealand had already mentioned, involved WTO 
flexibilities in respect of the Uruguay Round comm itments.  Switzerland wondered whether it would 
be possible to find a sufficiently strong group of Members that would be prepared, on an autonomous basis, to limit their flexibilities under WTO law.  Hi s delegation hoped this might  be one of the next 
steps taken by all those who were willing.  Su ch "self-nourishment" in conjunction with the 
conclusion of the Doha Round would enable Members to provide the necessary stimulus for recovery 
in export-centred countries like Switzerland.  The preservation of open mark ets and the improvement 
thereof was the most effective remedy against the cu rrent crisis.  He also wished to mention the 
WTO's institutional role in this debate.  It seeme d strange that combating protectionism was a matter 
that had so far been referred to mainly in othe r fora.  Members needed to  adopt a very clear and 
unambiguous stand in order for the message to get acr oss.  The more trade there was, the better all 
would fare. 
125. The representative of Canada
 recalled that Members had already been discussing these 
matters within the WTO in the Trade Policy Revi ew Body, and were in agreement as to the 
importance of keeping markets open during these turbul ent economic times.  Every step that could be 
made to resist protectionism was a step bringing Members closer to restoring economic growth.  
Canada had been one of the G-20 members which had signed onto such a commitment, and would be WT/GC/M/120 
Page 44  
 
  pleased to re-affirm its commitment to resist protecti onism in the WTO.  To this end, Canada would 
also call on all Members to support this initiative.  It viewed this initiative as a positive development 
and thanked the cosponsors of this docum ent for bringing this proposal forward. 
126. The representative of Colombia
 said that as a cosponsor of document WT/GC/W/604, his 
country supported the commitments contained therein.  The adoption of protectionist or trade-
distorting measures, even if consistent with WTO rul es, instead of helping to bring about a solution to 
the crisis only made it worse.  In addition, Colomb ia was convinced that freer trade was part of the 
solution to the crisis and for this reason favoured a rapid completion of the Round in accordance with 
the appropriate level of ambition and balance.  Unfo rtunately, at the most recent informal meeting of 
the Trade Policy Review Body, hid delegation had observed that there had been an increase in the 
number of restrictive trade measures.  Colombia had been badly affected by several protective 
measures taken by countries to which its exports were  directed, and had experienced the crisis through 
its impact on the country's foreign trade sector.  Thus, there had been a significant decrease in its 
exports, owing more to restrictive trade measures th an to the fall in external demand.  The initiative 
taken by the cosponsors of the document was intende d to produce a more direct response by Members 
to the current economic and financial crisis, by actively preventing the dangers of a wave of 
protectionism, of which the Director-General had wa rned on frequent occasions.  So far, the structure 
of the WTO in the form of a body of rules and commitments for market access had proved to be 
robust.  However, the commitments made in the WTO contained flexibilities which, if resorted to, 
could generate a snowball effect with incalculabl e consequences.  Accordingly, through document 
WT/GC/W/604 the cosponsors were calling on the whol e membership not to adopt trade-restrictive 
measures at this time of crisis, and to endorse the document. 
127. The representative of Thailand  said his delegation thanked Norway and the cosponsors of 
document WT/GC/W/604 for their efforts in crafting this well thought-out pape r.  Thailand supported 
this document, which had been proposed by a num ber of small and medium-sized economies.  The 
document was timely, given the current need to st em potential protectionist sentiments that might 
arise due to the current economic crisis, even though some might think this was now past.   While a 
decision from his capital to cosponsor this docum ent had yet been received, Thailand welcomed 
positively the message contained therein.  It appr eciated this initiative and believed that Members 
should consider supporting it.  There was no doubt that Members' common goal remained the conclusion of modalities and a successful out come to the Doha Round negotiations. 
128. The representative of Liechtenstein
 said his delegation welcomed this communication.  As the 
Director-General had said earlier at the present meeti ng, the human and social consequences of this 
crisis were still to come.  Protectionist measures and tendencies went against efforts to overcome the 
crisis, and the successful conclusion of the Doha Ro und would be a decisive contribution to at least 
reduce its consequences.  Therefore, Liechtenstein  fully supported and wished to cosponsor the 
document. 
129. The representative of Brazil  recalled that Brazil had undertaken these commitments under the 
aegis of the G-20 Summit in London, and of course welcomed the adoption of those commitments by 
other countries.  However, his country had seri ous concerns about how some countries which had 
undertaken these commitments had been acting.  Afte r all, the credibility of the commitments hinged 
on the behaviour of the countries which had undertaken  them.  As New Zealand had said, after having 
undertaken the commitments, some Members had intr oduced new export subsidies.  It was difficult 
for his delegation to see how this could be reconc iled with a commitment to refrain from introducing 
"new barriers" to trade.  The fact that these were WTO-consistent subsidies di d not change the nature 
of the measures as new barriers.  Commitments not to implement WTO-inconsistent measures to stimulate exports did not write out the other pledges of the commitment undertaken in London.  The best commitment possible in the WTO was to wo rk to conclude the DDA as soon as possible and 
within the boundaries of the draft modalities papers of December 2008.  WT/GC/M/120 
 Page 45 
 
 
  130. The representative of the Former Yugoslav Republic of Macedonia  said his country had had 
no part in causing the global financial crisis, but its economy had nevertheless been severely damaged 
by its aftermath.  Exports were decreasing and imports were increasi ng, thus threatening his country's 
balance of payments as well as the value of its currency.  His country had an open economy 
dependent on foreign trade, and the WTO rul es-based multilateral trading system was the only 
defence against protectionism.  It was willing to jo in forces with other Members willing to resist the 
temptations of protectionism.  It supported the commitments mentioned in the communication in 
WT/GC/W/604 would be happy to join the list of cosponsors. 
131. The representative of Malaysia  said that as one of the cosponsors of this initiative, Malaysia 
strongly endorsed the statement by Norway and others in the call for Members to refrain from 
resorting to protectionist measures and imposing ne w barriers to trade and investment.  As a global 
organization charged with administering and enforc ing a liberal and balanced trading system, it was 
imperative on all Members at this critical time to assume leadership in restoring economic recovery 
and growth, to resist protectionism, and to prom ote open markets and strengthen their institutional 
capacity to overcome the economic and financial crisis .  It was also important to prove to the world 
that the multilateral trading system embodied by  the WTO was working, and was working well 
enough to overcome the current crisis and promote a balanced and equitabl e global trade regime.  
Trade was of strategic importance to a country lik e Malaysia.  With a limited domestic market, it 
relied substantially on external trade for future growth and economic development.  Thus, it was not 
immune to the current economic cris is, in which it had also suffered  in terms of diminishing trade 
flows and stagnating foreign investment.  Howe ver, despite the challenges facing its economy, 
Malaysia firmly believed that propa gating an open trading environment would be the best way to steer 
Members out of the current economic and financia l plague.  Thus, his Government had recently 
announced the liberalization of 27 services sectors, through which it sought to create a business-friendly environment with the aim of attracting i nvestment and technology, and to perpetuate higher-
value employment opportunities.  Ma laysia urged all Members to s upport this initiative and to send a 
positive signal to the global community – in resisti ng protectionism and promoting an open trading 
environment – that this was the best way overcome the current crisis. 
132. The representative of Pakistan
 said his delegation supported document WT/GC/W/604.  It 
was satisfying to note that there was now greater politi cal recognition of the role of trade in mitigating 
the economic crisis.  The world economy was in the grip of financial crisis and economic recession, 
which had put tremendous pressure on governments to  institute appropriate response mechanisms.  
The crisis had concomitant manifestations of nega tive impact on international trade, due to sagging 
demand, low production, decline in FDI, and sizabl e reduction in export credit, trade finance, and 
development assistance.  In response to this crisis, governments were implementing mitigating 
measures to preserve production and avert erosion of exports, depletion of fo reign exchange reserves 
and negative current-account balances, besides controlli ng the contagion of liquid ity and credit crisis, 
fluctuations in stock markets, and exchange-rate  volatility.  Although many of these measures were 
WTO-consistent in nature and within the permi ssible policy space, they had the potential of being 
protectionist in nature and could precipitate reta liation or trade wars.  These measures could include 
increasing tariffs within permissible bindings, trade remedy measures, providing permissible subsides, anti-competitive measures and several NTMs on health , technical or safety grounds, as well as several 
more mentioned by Tanzania. 
133. On the other hand, while several Members ha d the ability to provide bailout packages and 
stimulus programmes, the developing countries were largely less fortunate in their ability to provide 
such economic cushions and could face undue compe titive pressures.  Poor developing countries were 
facing a burden of decline in exports aggravated by a shortage of credit and trade finance and 
declining investment levels.  Over 90 per cent of international trade involved credit, and the 
developing countries were experiencing a gap of trade of US$100-300 billion annually.  The G-20 had 
made a clear call for preserving global trade and rejecting protectionism.  Members needed to reaffirm WT/GC/M/120 
Page 46  
 
  their commitment to avoid protectionist measures.  As previous speakers had said, an early successful 
completion of the DDA was the best insurance against protectionism.  It was important to underscore the importance of the bedrock principle of develo pment in the Doha Round and the need for the 
required flexibilities for developing countries.  At th e same time, he wished to emphasize that there 
was also a need to help poor developing countri es by creating adequate financial space through Aid 
for Trade, trade finance, lowering barriers to  their accession, balance-of-payments support, 
development assistance and similar instruments.  As Norway had said, this do cument was a work in 
progress, and Pakistan looked forward to Members joining hands.  The number of speakers under this 
item bore ample testimony to the strength of this pr oposal, and Pakistan expect that other Members 
would also join the cosponsors. 
134. The representative of Turkey
 said that as one of the cosponsors of this document, his 
delegation echoed Norway's statement.  The text s poke for itself.  Regarding protectionism, Turkey 
again reiterated its full support for the TPRB exercise with a view to reporting on the financial and 
economic crisis and related de velopments.  This exercise had made good progress and would 
gradually be perfected.  The world was currently experiencing a tectonic shift in the global economy.  
The current economic breakdown was said to be th e greatest global economic shock since the Great 
Depression.  It was not certain that one had seen the light at the end of the tunnel.  The IMF had 
recently once again scaled down the global economic fo recast to a 1.3 per cent global output decline 
in 2009, while world merchandise trade was forecast to  contract by nine per cent.  As had been the 
case in the 1930s, open trade had once again become a candidate to be the first casualty of the 
economic downturn.  Although its ne gative impact was rather concre te, protectionism was itself an 
elusive phenomenon.  It was not easy to define exac tly and identify various manifestations of this 
threat.  Protectionism could take many forms and disguise itself in different cloaks.  Members should 
be alert against all forms of protectionism and should not repeat historic mistakes.  By encouraging open markets, non-discrimination and global competition, the GATT/WTO system had been 
conducive to the national welfare of all Members duri ng the past 60 years.  Households had benefited 
practically from the continuous opening of world trade.   Thanks to advancing trade and specialization, 
global consumers had easy and affordable access to goods.  The benefit of multilateral trade was not 
an abstract assertion but had become a tangible fact of daily life.  Therefore, Members should 
consider the open and smooth functioning of the inte rnational trade system as an important global 
public good from which all benefited.  Serving a global common interest, the WTO had now become 
an even more important organization.  Members shou ld not let protectionist instincts prevail over the 
collective interest and erode the basis of the WTO mu ltilateral system.  In short, they should not falter 
in resisting protectionist tendencies, and should con tinue to work to strengthen their commitment to 
the multilateral trading system.  To this end, it wa s obvious that the continua tion of Members' practice 
of surveillance and making an extra collective effo rt to successfully conclude the Doha Round were 
important steps. 
135. The representative of Korea
 said that since the outbreak of the financial and economic crisis 
in 2008, Members had by and large resisted tempta tions to resort to protectionism.  The G-20's 
commitment to fight against protectionism and th e peer review mechanism effectively implemented 
by the TPRB had contributed to preventing the repetition of the mistakes made in the 1930s.  
However, with economic recovery still illusive and the subsequent growth in protectionist pressure 
within domestic constituencies, it was clear that all had to remain vigilant to ensure that any new 
barriers to trade were not erected.  In this c ontext, the present communication from 14 Members was 
commendable, and it was in line with the standstill commitment by the G-20 countries in London.  
Korea hoped the WTO could send a strong message to  the international community that it and its 
Members were united in the fight against protectionism in a time of crisis. 
136. The representative of Chile  said his country's reason for requesting inclusion of this item on 
the agenda was to begin a dialogue on possible fu rther action within the WTO in response to the 
crisis, in particular in relation to the measures Members were taking to confront the crisis.  Two  WT/GC/M/120 
 Page 47 
 
 
  examples of such action had been discussed under the previous agenda item.  The first was the 
mechanism for monitoring such measures, which Ch ile had supported from th e beginning.  This had 
shown its usefulness, and successive improvements we re helping to legitimate the mechanism and to 
reaffirm the proper role of the WTO in the crisis .  However, monitoring was not enough.  Chile 
wanted a more thorough discussion of the measures taken, in an attempt to quantify these measures 
and draw lessons that would be of use to Members in the future, and to be able to take decisions in the 
light of that experience, so as to en sure that if similar circumstances were repeated in the future – and 
it was hoped they would not be – Members would not r esort again to such measures, but that if they 
had to, they would take into account what might be called the discipline of good practice.  Chile 
hoped that in December, Ministers would be able to shed more light on this issue.  A second example 
was  transparency.  This was a fundamental obj ective, and Chile supported the discussions taking 
place in various committees to introduce stronger rul es on the timeliness and content of notifications.  
However, unfortunately in some of these subsid iary bodies there was no great desire to go beyond 
what currently existed in the Agreements with rega rd to procedure.  This was another issue that 
Ministers would need to review and take decisions  on.  Regarding standstill, it was a positive sign that 
an important group of Members has decided to re frain from using the rights conferred by the WTO 
Agreements.  They were joining other Members that had taken similar decisions in recent months.  If 
all Members were not only to make this commitment , but actually not take protectionist measures, the 
world would be a better place, but unfortunately th at was not the case, and Chilean exporters were 
being increasingly affected by such measures.  Similarly, production sectors in Chile were being 
confronted by external competition that did not play  by the rules.  This standstill initiative should in 
no way distract Members' attention from the gr eater objective of completing the Round as soon as 
possible with an ambitious and balanced outcome.  That was a guarantee against protectionism, as 
well as offering real opportunities fo r market access and fairer trade – in other words, a greater 
opportunity for development.  That was and continued to be Chile's main priority. 
137. The representative of Israel  said that this was an important discussion on the issue of the 
WTO's collective response to the global financia l and economic crisis.  The WTO was in a unique 
position among international fora to play a central ro le in effectively coping with the crisis on a 
worldwide scale.  Thus, Israel wished to lend its general support to the initiative launched by Norway 
and the cosponsors calling on Members to refrain from raising new barriers to investment or trade in 
goods and services.  His country valued the transp arency exercise led by the Director-General on 
monitoring trade-related developments  linked to the unfolding crisis.  Th is crisis had hit all countries 
– Israel was no exception – and all were trying to find the best way to guide their economies through 
these turbulent times.  In these spec ial circumstances, it was useful for all Members to have a better 
understanding of the impact that new trade measur es taken by their trading partners might have on 
their economies.  The monitoring mechanism under th e TPRB could be an informative exercise to 
ensure that these measures did not escalate out of c ontrol and result in strong protectionism.  At the 
same time, Israel wished to draw attention to  the important role of the WTO committees as a 
framework for transparency and discussion for use by Members on a daily basis.  In addition, it 
wished to point out the policy flexibilities and rights all had under the WTO.  Some measures taken in 
these times of economic and financial predicamen t had not necessarily been taken as a direct 
protectionist reaction to the crisis , and thus should not be dubbed as such in any monitoring exercise.  
Even today, countries retained their right to use the array of measures allowed under the WTO to best 
accommodate their trade needs.  Israel, as a nati on highly dependant on trad e, would continue to 
conduct its trade policy in a conscientious and responsi ble manner.  It remained firmly convinced that 
trade was an essential vehicle to pull countries out of the current global ec onomic slowdown triggered 
by the financial crisis.  Crisis management in te rms of financial packages at the national level was 
probably necessary at present, but the underlying prob lems and objectives needed long-term solutions.  
The timely and successful conclusion of the Doha Round was the most important contribution the WTO could make at the global level in order to faci litate quick and sustainable recovery worldwide.  
Israel remained committed to this end and believe d that any breakthrough in  this respect demanded 
both creative out-of-the-box thinking as well as u tilizing the fruits of the progress already made. WT/GC/M/120 
Page 48  
 
  138. The representative of Cuba
 said his delegation wished to thank the cosponsors for their 
document and also for the explanations they had provided at the present meeting.  Cuba had no 
difficulty in accepting that Members acting individua lly – and he wished to stress "individually" – 
could endorse the document or some of the measures it proposed, but it was very different to say that 
Members supported it or any of its measures by cons ensus.  Clearly, some of the cosponsors and those 
who supported the document needed to bring their acti ons and their behaviour into line with the words 
contained in the document, since some of these countries were among the largest subsidizers, in 
domestic terms, of their agricultural sectors a nd exports, and were among those calling for greater 
flexibilities and exemptions in the Doha Round, so as to protect their agriculture.  It now turned out 
that they were the same countries proposing new co mmitments against protectionism.  From the legal 
point of view, the only binding obligation Members had concerned the bound tariffs contained in the 
schedules of commitments of the Uruguay Round – not  the applied tariffs.  He was referring to the 
subject of the standstill or freeze of the present app lied tariffs.  Thus, it was perfectly legitimate, in 
accordance with the WTO Agreemen ts, to increase the applied tariffs.  The commitment not to 
increase protectionism obviously bound a very small number of participants in the G-20 financial 
summits and would mainly affect the tariffs of developing countries, since the developed countries' 
applied tariffs – which were much higher on agricultu ral products than the tariffs of most of the 
developing countries – were equal or very close to  their bound tariffs.  This idea had emerged at the 
first meeting in Washington, where clearly the greatest  and oldest form of protectionism in the form 
of multi-million-dollar domestic subsidies had not even  been mentioned.  Tariffs were almost the only 
area or policy instrument available to many deve loping countries.  Except in very few cases, they 
could not use subsidies on account of the restricti ons imposed by the WTO Agreements, or on account 
of the fact that they did not have the huge funds ne cessary to subsidize their ag riculture or to rescue 
their banks and enterprises. 
139. In fact, Cuba wondered why the members of the G-20, the co-authors of this document and all 
those who shared some or all of the ideas contained in it had not asked, at the very least, that domestic 
agricultural subsidies be frozen at their 2007 levels, wh ich went back to before the crisis had begun.  
His delegation wished to hear a convincing explan ation of this obvious omission and case of double 
standard.  The idea that applied tariffs should not  be increased was obviously to the benefit of the 
developed countries, which had 60 per cent of world trade in agricultural products, despite being 
industrialized countries, and also 65 per cent of worl d trade in industrial goods, according to the latest 
WTO report in 2008.  Most of the developed c ountries, with only a few exceptions, had maximum 
agricultural tariffs well in excess of 100 per cent and some up to a thousand per cent.  The WTO and 
its Members should concentrate thei r efforts on combating protectionism, but in a real and effective – 
rather than a cosmetic and selective – manner, in pa rticular the various levels of protectionism the 
developed countries applied in the form of agricultura l subsidies, technical barriers to trade, safeguard 
measures, non ad valorem  tariffs, tariff escalation and peaks, tariff quotas and sensitive products, 
which even the current proposals on the table in the Doha Round did not appear to even begin to solve 
completely. 
140. The representative of Australia  said his delegation welcomed the document and the hard work 
undertaken by Norway and the other cosponsors.   Australia, as a G-20 member, strongly supported 
their stance against protectionism in London and had no problems in doing the same regarding the present document.  This was clearly a very welc omed development which it hoped would gain the 
support all Members.  At the end of the day, the best defence against protectionism was the early 
conclusion of an ambitious and ba lanced DDA, and as other speakers had said – in particular Brazil 
and New Zealand – credibility was of crucial importance to any such proposal, and that needed to be 
borne in mind by all Members. 
141. The representative of the United States
 congratulated and thanked the cosponsors of what he 
said was a very constructive initiative.  He noted hi s own country's commitment to abide by the G-20 
pledge and welcomed the fact that the cosponsors of the present document were seeking to expand the  WT/GC/M/120 
 Page 49 
 
 
  range of Members joining that commitment.  Theref ore, the United States supported this initiative and 
urged all Members to do the same.  It looked forwar d to working with the cosponsors on how best to 
promote support for and adherence to this paper. 
142. The representative of China  said his country supported this initiative, which was along the 
same lines as the Declarat ion of the G-20 Summit in London and went in the right direction of anti-
protectionism.  China had stated clearly on vari ous occasions that in a crisis like the present one, 
global cooperation was the only way out, and protecti onism could only make the situation worse.  
China therefore wished to thank the cosponsors of this initiative for having put it forward.  
Meanwhile, it shared the concerns raised by Brazil.   The credibility of this organization was put in 
jeopardy by the behaviour of some major Members.  The most recent application of export subsidies 
on dairy products was a good example.  Everyone knew that export subsidies were the worst form of 
trade-distorting measures in agriculture.  The me asures adopted at the present time sent the wrong 
signal to the world.  The major Me mbers were expected to set good examples for others in the fight 
against protectionism in face of the financial crisis .  China therefore urged the Members concerned to 
reconsider their decisions and a ddress this issue as soon as possible. 
143. The representative of Peru  said that as a cosponsor of document WT/GC/W/604, Peru also 
supported the statements by Norway and the othe r cosponsors, which included Mexico, Chile and 
Colombia.  The reaction to this crisis by protec tionist measures incompatible with WTO rules would 
have harmful effects on the trade on which its peop les depended.  His country too had seen how its 
trade had been affected by the adoption of protecti onist measures, causing harm to its export sectors.  
Consequently, Peru urged all Members to join this  initiative, so as to send a positive message to the 
international community.  It invited other delega tions to support this document, which recommended 
that countries refrain from raising new barriers to i nvestment or trade in goods and services, imposing 
new export restrictions or implem enting WTO-inconsistent measures to stimulate exports, and that 
they extend this pledge to the end of 2010.  It  also called upon donors to support their commitments 
on Aid for Trade.  In view of the fact that the fina ncial crisis would have greater repercussions in the 
developing countries – not least through its social  dimensions – on account of their more limited 
capacity to resist such effects, emphasis should be given to these programmes in support of the 
developing countries.  He expressed Peru's commitm ent to the rapid and successful conclusion of the 
Round, maintaining its level of ambition and ba lance, which was the best defence against 
protectionism. 
144. The representative of the European Communities  said his delegation too welcomed the 
proposal made by a group of Members.  The EC agreed that in the present economic and financial 
crisis, steps needed to be taken to promote and fac ilitate trade and investment.  The EC took note of 
this communication. As all knew, the EC was in favour of a standstill regarding the introduction of 
new trade barriers and to this end had joined the pl edge of the G-20.  It encouraged other Members to 
join similar initiatives banning the introduction of ne w trade barriers.  All knew the EC's position on 
the reintroduction of export subsidies, including th ose for agricultural products, and the EC continued 
to believe that the best remedy to solve this probl em was to conclude the DDA negotiations.  It would 
respond to the criticism raised at the present day's meeting under an "Other Business" item later in the 
meeting. 
145. The representative of Norway   said that a number of the items on the Council's present agenda 
had in different ways been devoted to the role of th e WTO in response to the financial crisis, to recent 
developments and actions by Members and to how to register and analyse what was being done by 
whom, and what to do about it in the WTO.  On beha lf of the cosponsors, she wished to thank all who 
had supported the present initiative.  As other speak ers had said, Norway too hoped that all Members 
would sign onto this initiative which, as Korea had said, would send a strong message from the WTO 
and its Members.  As Hong Kong China had said, th e cosponsors would continue their work in order 
to develop additional measures to curb protectionism, and invited interested Members to participate in WT/GC/M/120 
Page 50  
 
  this work.  The cosponsors would consult on how to  utilize the present momentum and on the possible 
ways forward. 
146. The General Council took note
 of the statements. 
7. Waivers under Article IX of the WTO Agreement 
147. The Chairman  noted that the draft waiver decisions for the matters listed in sub-items 7(a) 
through 7(c) had been taken up for consideration by  the Council for Trade in Goods at its meeting of 
24 March, and those in sub-items 7(d) through 7(f) up at its meeting of 12 May.  For all of these items, the Chairperson of the Goods Council was requir ed to report to the Gene ral Council.  He would 
therefore invite the Goods Council Chair to report on the Council's consideration of these matters in a 
single intervention, and the General Council woul d then take up each draft decision for action 
separately. 
148. Ms. Johansen (Norway), Chair of the Council for Trade in Goods
, reported that the Council 
for Trade in Goods, at its meeting of 24 March 2009,  had approved the three draft waiver decisions 
for three United States' preferential trade progr ammes, namely the Caribbean Basin Economic 
Recovery Act, the African Growth and Opportunity  Act, and the Andean Trade Preference Act.  
These three requests had been under consideration by the Council for the past four years, following a 
mandate the Council had received from the General C ouncil in July 2005 to continue examination of 
these requests.  The Council for Trade in Goods ha d concluded this work at its March meeting and 
had agreed to forward the three draft waiver decisions contained in documents G/C/W/611 and 
Corr.1, G/C/W/612 and Corr.1, and G/C/W/613 and Corr. 1 to the General Council for adoption.  With 
respect to items 7(d), (e) and (f), at its meeting of 12 May 2009, the Council for Trade in Goods had 
approved the draft procedures leading to the verifi cation and certification of Harmonized System 1996 
changes relating to the schedules of 64 Members.  These procedures had been discussed in the Market 
Access Committee and subsequently approved by th e Council for Trade in Goods, which had agreed 
to forward the Procedures, contained in document G/C/W/619, to the General Council for adoption.  
At this meeting, the Goods Council had also appr oved the draft waiver deci sions for Argentina and 
Panama in connection with their introduction of HS 1996 changes into their WTO schedules of tariff 
concessions.  The approved draft decisions were contained in documents G/C/W/616 and G/C/W/617, 
respectively.  The Goods Council had further recomme nded that these draft decisions be forwarded to 
the General Council for adoption.  Finally, the Co uncil for Trade in Goods had also approved the 
extension of the waiver for developing countries to accord preferential tariff treatment for least-
developed countries.  The original waiver was c ontained in WT/L/304.  The draft decision extending 
this waiver was contained in G/C/W/620, which the Council for Trade in Goods had agreed to 
forward to the General Council for adoption. 
(a) United States – Caribbean Basin Economic Rec overy Act – Request for renewal of waiver 
(G/C/W/611 and Corr.1) 
149. The Chairman  drew attention to the draft decision in G/C/W/611 and Corr.1, which provided 
for the renewal of a waiver from the provisions of paragraph 1 of Article 1 a nd paragraphs 1 and 2 of 
Article XIII of the GATT 1994 until 31 December 2014.  He proposed that, in the light of the report 
made above by the Chair of the Goods Council,  and in accordance with the Decision-Making 
Procedures under Articles IX and XII of the WTO Ag reement agreed in November 1995, the General 
Council adopt the draft Decision in document G/C/W/611 and Corr.1. 
150. The General Council so agreed .6 
                                                      
6 The Decision was subsequen tly circulated as WT/L/753.  WT/GC/M/120 
 Page 51 
 
 
  (b) United States – African Growth and Opportuni ty Act – Request for waiver (G/C/W/612 and 
Corr.1) 
151. The Chairman  drew attention to the draft decision in G/C/W/612 and Corr.1, which provided 
for a waiver from the provisions of paragraph 1 of Article 1 and paragraphs 1 and 2 of Article XIII of 
the GATT 1994 until 30 September 2015.  He proposed that, in the light of the report made above by 
the Chair of the Goods Council, and in accord ance with the Decision-Making Procedures under 
Articles IX and XII of the WTO Agreement agreed  in November 1995, the General Council adopt the 
draft Decision in document G/C/W/612 and Corr.1. 
152. The General Council so agreed .7 
(c) United States – Andean Trade Preference Act – Request for renewal of waiver (G/C/W/613 
and Corr.1) 
153. The Chairman  drew attention to the draft decision in G/C/W/613 and Corr.1, which provided 
for the renewal of a waiver from the provisions of paragraph 1 of Article 1 a nd paragraphs 1 and 2 of 
Article XIII of the GATT 1994 until 31 December 2014. 
154.  The representative of Bolivia  recalled that from 2000 onwards, Bolivia had been one of the 
countries benefiting from the preferences granted under the Andean Trade Preference Act and 
subsequently under the Andean Trade Promoti on and Drug Eradication Act (ATPDEA).  These 
preferences had been granted in view of Bolivia's  efforts to combat drug trafficking and the good 
results it had so far achieved in that respect, but had been withdrawn by the former US President on 
15 December 2008 and had not yet been re-established.   The reason that had been given for this action 
was that Bolivia, among other countries, had failed to adhere to its obligations under international 
counter-narcotics agreements, whic h had led to the former US Administration's reviewing the 
continuation of cooperation under that  Act and indeed of any action to combat drugs.  This situation 
had arisen despite the fact that Bolivia's covera ge under the ATPDEA had been extended for a further 
six months by the US Congress in October 2008.  Her country could provide numerous arguments and 
figures to show that Bolivia had successfully and r esponsibly adhered to its obligations to combat 
drug trafficking, and that there were no reasons to justify the suspension of this benefit by the United 
States.  The following were just a few of the figures that had appeared in the 2008 report by the United Nations Office on Drugs and Crime:  Bolivi a accounted for only 10 percent of the global 
potential production of cocaine;  the country had e xperienced one of the smallest increases – five 
percent – in the area used for the cultivation of co ca leaf, while the greatest increase in this respect 
was 27 percent;  in 2007, the number of hectares of coca bush eradicated by Bolivia had risen from 
5,070 to 6,269, an increase of 1,199 hectares;  of all the Andean countries, Bolivia had seen the 
greatest increase in drug seizures and the destruc tion of processing plants.  The fact that 5,901 
laboratories in the region had been destroyed in 200 5 could be put down mainly to the increase in the 
destruction of such establishments in Bolivia and Colombia.  The financial resources Bolivia received 
from the United States to help combat drugs were the lowest in the Andean region and amounted to 
US$66 million.  The above were just a few of the figures that appeared in the aforementioned UN 
report, which Bolivia cited without in any way seeki ng to undermine narcotics control efforts in other 
countries.  On the contrary, Bolivia commended the latter's endeavours in this  regard and hoped that 
its own efforts would be recognized in turn. 
155. The position of the former US Administration could not be justified by either scientific 
criteria or internationally recognized data, and appeared to have been based purely on political 
criteria, without taking into account the principl es of equality and non-discrimination in trade.  
Moreover, it overlooked the purpose of the Act in question, which was to assist the trade and 
                                                     
 
7 The Decision was subsequen tly circulated as WT/L/754. WT/GC/M/120 
Page 52  
 
  economic development of beneficiary countries by en couraging the expansion of trade in legitimate 
products as an alternative to the production and tr afficking of illicit narcotics.  For Bolivia, the 
Andean Trade Preference Act, applied unilaterally  by the US, was of the utmost importance and 
sensitivity in view of its economic, political and soci al implications for the country.  For example, 
under this programme, Bolivia exported manufactured products with a high va lue-added content and, 
in this respect, had recorded significant growth over the past few years.  Around 500 enterprises 
participated in these exports, mainly producing textiles, manufactured wood products, leather and 
jewellery.  The ATPDEA translated into some 25,074 jobs in Bolivia.  Multiplying this figure by the average family size of the work ers involved, it was estimated that 112,833 people relied on these 
exports.  Of total Bolivian exports, excluding gas, 15 .4 per cent went to the United States, Bolivia's 
second largest export destination in 2008.  A third of  the value of these exports, i.e. US$145.7 million, 
enjoyed preferences under the ATPDEA.  These figur es were of great significance to Bolivia, whereas 
it understood that for the United States, only 0.02 per cent of total imports we re of Bolivian origin.  
The former US Administration's arbitrary and unr easoned decision to suspend ATPDEA benefits had 
already caused significant losses in Bo livia, and this discrimination between beneficiary countries had 
to end as soon as possible.  Bolivia had every reason to request that the draft Decision be revised and 
not adopted.  However, as a gesture of goodwill to wards the new US Administration, Bolivia was 
willing to accept the adoption of the waiver request at the present meeting on the understanding that the United States would in turn correct past errors  as a gesture of goodwill towards Bolivia, that the 
waiver obtained would not be used by the United States in a discriminatory manner in respect of 
beneficiary Members, and that in future, it would apply equally to each of those Members when they 
complied with the provisions of the legislation, as was currently the case.  In June, a second meeting 
would be held between Bolivia and the United Stat es, and Bolivia hoped the United States would do 
as it had promised in the Council for Trade in G oods on 24 March and carry out a thorough and fair 
review of the relevant eligibility criteria. 
156. The representative of Colombia
 said his delegation wished to express anticipated thanks for 
the renewal of the waiver for the unilateral tr ade preference mechanism known as the Andean Trade 
Preference Act.  This legislation had been adopted by the United States to help combat illicit drugs in 
the sub-region and had proved extremely useful for a ll of its beneficiaries, enabling them to extend 
and diversify their exports to the United States, generate investments and new forms of production, 
strengthen lawful economic activity in their countries, and create jobs for tens of thousands of people.  
It was hoped that all the beneficiary countries woul d be able to continue to enjoy preferences under 
this mechanism in the future.  In  Colombia's case, it also hoped that the free-trade agreement it had 
negotiated with the United States would be promptly  adopted by the US Congress.  This would then 
gradually replace the ATPA preference s Colombia had enjoyed so far. 
157. The representative of Cuba  said his delegation supported and shared the concerns raised by 
Bolivia.  Like Bolivia, Cuba believed that the ar bitrarily political and unsubstantiated decision taken 
by the former US Administration to suspend be nefits under the Andean Trade Preference Act to 
Bolivia, which had caused considerable losses to  that country, should be rectified.  This 
discrimination between beneficiary countries should end as soon as possible.  Like Bolivia, Cuba also 
believed that the United States should not use this waiver in a discriminatory manner, and that it 
should be applied on an equal basis.  Cuba viewed with optimism the meeting that was to be held in 
June and hoped that on this occasion the decision in  question would be rec tified and both parties 
would find a mutually advantageous solution. 
158. The representative of Ecuador  said his delegation supported Bolivia's statement and hoped 
that the discussions with the new US Administration would be successful and that Bolivia would be incorporated into this programme.  Ecuador wished  to thank the United States and other Members, 
particularly Paraguay, for their actions and unders tanding which had led to the conclusion of this 
matter and which reflected the principle of shared responsibility in combating the serious scourge of 
drug trafficking and illicit drugs, a fight to which Ecuador remained committed.  WT/GC/M/120 
 Page 53 
 
 
  159. The representative of the Bolivian Republic of Venezuela  said that like other delegations, 
Venezuela agreed with the statement by Bolivia,  and hoped that in the s ubsequent consultations, 
Bolivia's concerns would be examined in a positive  light and the two parties would find a mutually 
satisfactory solution. 
160. The representative of the Dominican Republic  urged both the United States and Bolivia to 
resolve their differences at their meeting in June, so  that Bolivia cold once ag ain be included in the 
group of countries that benefited from the Andean Trade Preference Act. 
161. The representative of Peru  said his delegation wished to thank the United States for 
requesting the renewal of the waiver for the applicat ion of the Andean Trade Preference Act which, as 
Colombia had said, had been vital to the benefi ciary countries in that it had brought a series of 
investments, employment, and economic wellbeing to them.  His delegation urged the General 
Council to grant this request.  It also hoped that th e consultations to be held in June between Bolivia 
and the United States would provide an opportunity for in-depth review of the terms and the details of 
renewed application of the Act for Bolivia.  As for Peru, this key instrument was gradually being 
replaced with bilaterally contracted obligations under the recently implemented trade agreement 
between the United States and his country.  Howe ver, it went without saying that the mechanism 
provided by the Andean Trade Preference Act had play ed a major part in Peru's development in the 
past. 
162. The representative of Mexico  said his country supported the continuation of the waiver for the 
Andean Trade Preference Act on the understanding that  this legislation had pr oved beneficial to all, 
both the beneficiaries themselves and the country gran ting the preferences.  Mexico offered its best 
wishes for a successful outcome to the consultations  between Bolivia and the United States, and for 
Bolivia to be able to continue receiving the preferences extended under this Act. 
163. The representative of Brazil  said his delegation wished to express its concern with the issue 
raised by Bolivia.  While it did not wish to minimi ze the implications of the reasons that had been 
invoked to justify this discrimination, it noneth eless hoped the United States could look into this 
carefully in order to avoid a situation of discriminat ion that might or might not be in the interests of 
all the parties involved. 
164. The representative of Argentina  said his country wished to thank the United States for 
maintaining the preference scheme for those countries that needed it most – the African, Caribbean 
and Andean countries.  His delegation had taken pa rt in the negotiation of these waivers, which had 
taken more than two years, and had been able to successfully improve the drafting of the waivers 
thanks to the excellent cooperation from the United Stat es.  There were also other delegations, such as 
Paraguay, which had helped to find a political solution to this matter.  Argentina was therefore glad to 
be in a position to approve these waivers.  It al so welcomed the fact that the United States was 
pursuing talks with Bolivia with a view to reach ing a solution that would allow this country to 
continue benefiting from the Andean Trade Preference Act. 
165. The representative of Chile  said his delegation wished to support the request for this waiver 
and thank the United States for these preferences, bot h for the Andean countries and for the countries 
of the Caribbean and Africa.  Regarding the cons ultations which Bolivia said it would be conducting 
with the new US Administration over the next few weeks, Chile hoped these would produce positive 
results for all of the parties involved. 
166. The representative of Trinidad and Tobago , speaking on behalf of the CARICOM Members , 
said these countries fully supported the renewal of this waiver.  As beneficiaries of similar 
preferences, they understood the value and importa nce of the Andean Trade Preference Act in the 
benefits it provided to members of the Andean Community.  In that context, the CARICOM Group WT/GC/M/120 
Page 54  
 
  was greatly encouraged by the forthcoming dial ogue to be held between the United States and 
Bolivia, which it was hoped would be consistent with the spirit of engagement and dialogue in 
inter-state relations in the west ern hemisphere.  That dialogue, it was hoped, would lay the basis for 
common ground between both sides that would lead to the restitution of Bolivia as a beneficiary under 
this Act. 
167. The representative of Nicaragua
 said his delegation joined those who had supported Bolivia 
with respect to the concern it had raised, and hoped th is situation would be resolved rapidly.  This 
important preference scheme had brought considerab le benefits to the countries concerned, and 
consequently Nicaragua hoped that th e consultations currently underway  would be able to remedy the 
situation. 
168. The Chairman  proposed that, in the light of the report made above by the Chair of the Goods 
Council, and in accordance with the Decision-Ma king Procedures under Articles IX and XII of the 
WTO Agreement agreed in November 1995, the General Council adopt the draft Decision in 
document G/C/W/613 and Corr.1. 
169. The General Council so agreed .8 
170. The representative of the United States  expressed his country's appreciation to Members for 
granting the extensions of the waivers for the A frican Growth and Opportunity Act, the Caribbean 
Basin Economic Recovery Ac t and the Andean Trade Preferences Act.  These preference programmes 
served a very important development objective and were a key element in US efforts to increase the participation of developing countries in the globa l economy and to provide duty-free treatment for a 
broad range of products for these countries.  His delegation would transmit Bolivia's statement to its 
capital. 
171. The General Council took note
 of the statements. 
(d) Procedures leading to the verification and cer tification of Harmonized System 1996 changes 
relating to the schedules of 64 Members – Draft decision (G/C/W/619) 
172. The Chairman  drew attention to the draft decision in G/C/W/619, which set out procedures 
for introducing Harmonized System 1996 changes into  the schedules of concessions of the 64 WTO 
Members listed in the annex to the draft decision.  He proposed that, in the light of the report made 
above by the Chair of the Goods Council, and in accordance with the Decision-Making Procedures 
under Articles IX and XII of the WTO Agreement agreed in November 1995, the General Council 
adopt the draft Decision in document G/C/W/619. 
173. The General Council so agreed .9 
(e) Introduction of Harmonized System 1996 changes into WTO schedules of tariff concessions – 
Requests for extensions of waivers (G/C/W/616 and 617) 
(i) Argentina  
(ii) Panama 
174. The Chairman  drew attention to the draft decisi ons in documents G/C/W/616 and 617 which 
provided for a waiver from the provisions of Article II of GATT 1994 until 30 April 2010 for 
                                                      
8 The Decision was subsequen tly circulated as WT/L/755. 
9 The Decision was subsequen tly circulated as WT/L/756.  WT/GC/M/120 
 Page 55 
 
 
  Argentina and Panama, respectively, to enable th em to implement the HS 1996 changes into their 
schedules of concessions, subject to certain conditions .  He proposed that, in the light of the report 
made above by the Chair of the Goods Council,  and in accordance with the Decision-Making 
Procedures under Articles IX and XII of the WTO Ag reement agreed in November 1995, the General 
Council adopt the draft Decisions in documents G/C/W/616 and 617. 
175. The General Council so agreed .10 
(f) Preferential tariff treatment for least-developed countries – Request for extension of waiver 
(G/C/W/620) 
176. The Chairman  drew attention to the draft decision in G/C/W/620, which provided for the 
extension of a waiver from the provisions of paragr aph 1 of Article I of the GATT 1994, to the extent 
necessary to allow developing-country Members to pr ovide preferential tariff treatment to products of 
least-developed countries, until 30 June 2019. 
177. The representative of Brazil  said his delegation wished to point out that this waiver extension 
was of paramount importance for the further integra tion of LDCs in world trade and the strengthening 
of south-south cooperation in trade.  In the same spirit as Annex F of the Hong Kong Declaration, this 
waiver request was part of a series of initiatives of the WTO that aimed to address the development 
concerns of developing countries and especially the LDCs.  The additional period of 10 years 
requested by the waiver would encourage developi ng countries to establish preferential schemes in 
sectors of priority interest to the LDCs.  Brazil ha d already declared that it would provide preferential 
treatment for LDCs, and was currently examining the legal and administrative steps required to give concrete expression to this commitment.  Members di d not have to wait for the expiration of the new 
waiver to consider more permanent provisions in  favour of LDCs.  Apart from encouraging the 
establishment of trade schemes in favour of LDCs, Members needed to enhan ce the latter's long-term 
prospects and their predictability.  This waiver woul d be another step in that direction, and Brazil 
urged other Members to give positiv e consideration to all requests. 
178. The representative of Tanzania
, on behalf of the LDC Group , said these countries wished to 
thank Brazil, China, India and South Korea for cos ponsoring the request for this waiver extension for 
a further 10 years.  They applauded the Goods Council for having accepted the request and for the 
latter's positive recommendation to the Genera l Council.  The LDCs recognized the proven 
importance of the waiver, which a llowed developing countries to pr ovide preferential treatment to 
LDCs' export products, consistent with the special pr ovisions of the WTO Agreement.  This not only 
promoted increased trading opportunities for LDCs, but  also facilitated expansion of south-south trade 
and development within the multilateral trading sy stem.  The LDCs therefore called upon the entire 
membership to approve the request fo r the waiver extension as presented. 
179. The representative of Nepal  said he wished to associate his delegation with the statement by 
Tanzania for the LDCs.  Nepal also wished to sin cerely thank the cosponsors of the waiver – Brazil,  
India, China and South Korea.  This was a ve ry generous action by these Members which were 
themselves developing countries.  Their initiative in th is direction was due to their deeper realization 
of their international duty and responsibility for the mo st deprived people of the world.  Their efforts 
were highly commendable.  His delegation also requ ested all other developing countries who were in 
a position to do so and who had not yet done so, to follow the exemplary act of these countries.  The LDCs were in dire need of such concessions fro m more developed developing countries, at the 
present critical stage due to current crises, and al so because of their sluggish economic performance. 
                                                     
 
10 The Decisions were subsequently circulated as WT/L/757 and 758. WT/GC/M/120 
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  180. The Chairman
 proposed that in the light of the report made above by the Chair of the Goods 
Council, and in accordance with the Decision-Ma king Procedures under Articles IX and XII of the 
WTO Agreement agreed in November 1995, the General Council adopt the draft Decision in 
document G/C/W/620. 
181. The General Council so agreed .11 
182. The representative of Korea  expressed his delegation's appreciation for Members' support for 
this waiver request.  As one of the cosponsors of the request, Korea was fully  aware of the difficulties 
LDCs faced in the world economy.  As of Janua ry 2009, Korea had offered the LDCs duty-free 
market access for 80 per cent of all national tariff lines, and his country reiterated its willingness to 
continue to expand the product coverage. 
183. The General Council took note  of the statements. 
8. International Trade Centre UNCTAD/WTO – Report of the Joint Advisory Group on 
its Forty-second Session  (ITC/AG/(XLII)/225) 
184. The Chairman  recalled that the Joint Advisory Group of the International Trade Centre 
UNCTAD/WTO had held its Forty-second Session on 10-11 December 2008.  The report of the Joint 
Advisory Group had been distributed in document ITC/AG/(XLII)/225.  In keeping with customary 
practice, this report had been considered initially by the Committee on Trade and Development, at its 
meeting on 11 May, where it had been presented by th e Chair of the Forty-second Session of the Joint 
Advisory Group, Ms. Emina Keco-Isakovic (Bosni a and Herzegovina).  In the absence of the 
Chairman of the CTD, and on his request and beha lf, he invited Mr. Faizel Ismail (South Africa), the 
previous Chair of the CTD, to read his report. 
185. In the absence of the Chairman of the Dedicat ed Session of the CTD, and on his request and 
behalf, Mr. Ismail (South Africa), the previous Chair of the CTD , reported that the Joint Advisory 
Group on the International Trade Centre UNC TAD/WTO had held its 42nd Session on 10 and 
11 December 2008.  The report on that meeting wa s contained in document ITC/AG/(XLII)/225.  The 
Chairperson of the 42nd Session of the JAG, Ms . Keco-Isakovic (Bosnia and Herzegovina), had 
presented the report to the CTD at its meeti ng on 11 May 2009, with a few remarks on the 
proceedings of the JAG meeting.  She had inform ed the CTD that the JAG had been convened to 
discuss the ITC’s Annual Report for 2007 and the preliminary annual report for 2008, the Consolidated Programme Document for 2009, the ITC’ s Strategic Plan for 2009 to 2012, and the ITC 
Strategic Framework.  The Group had also discussed  proposals for ITC governance.  She said that the 
JAG had provided the ITC with useful guidance on  the organization's annual programme of work.  
The Group had expressed strong support for the IT C, and had acknowledged the impact of the 
organization's capacity-building work.  The ITC had been recognized as a "100 per cent Aid for 
Trade" organization, and its role in helping the private sector had been re-affirmed.  The Group had 
endorsed the Consolidated Programme Document for 2009, the Strategic Plan for 2009 to 2012 and the Strategic Framework.  On governance, it had be en decided that the Consultative Committee would 
remain the oversight body for voluntary contribut ions to the ITC Trust Fund, and the JAG would 
remain the policy-making organ of the organization.  A panel on Trade for the Millennium Development Goals had also been convened to exam ine issues of poverty, gender and environment as 
they related to trade.  The panel and the subse quent break-out sessions had showed the diversity of 
actors and their specific needs and expectations for trade-related technical assistance along the 
different stages of the export value chain, and ha d thereby demonstrated ITC’s approach to "Export 
Impact for Good."  Finally, she had informed the CTD of voluntary contributions that had been 
announced at the JAG meeting.  In this regard, she had expressed thanks on behalf of the Group to the 
                                                     
 
11 The Decision was subsequen tly circulated as WT/L/759.  WT/GC/M/120 
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  Governments of China, Denmark, Finland, Ge rmany, the Netherlands, New Zealand, Norway, 
Sweden and the UK.  The CTD  had taken note of the JAG report and had forw arded it to the General 
Council for adoption. 
186. The representative of Mexico  expressed his delegation's appreciation for the JAG's report and 
its presentation in the CTD, at which time Mexico  had had the occasion to comment on it.  Mexico 
wished to support the ITC's proposal on that occasion to continue the consultations among Members 
interested in the creation of an Advisory Board, with the aim of strengthening the ITC's governance.  
Mexico also wished to reiterate its support regarding the successful opening in Mexico in 
October 2009 of a regional office for Latin America.  According to what had been discussed in the 
JAG, this regional office formed part of  broader project for decentralizing the ITC's activities, with a 
view to its working more closely and efficiently with  its clients.  As a result of the efforts by Mexico 
and other countries supporting this initiative, his delegation was convinced that the ITC Executive Director would soon find a solution to the suspen sion – which was hoped would be temporary – of the 
activities of this office.  The ITC could count on the full support of his Government. 
187. The representative of Switzerland
 said his delegation took note with great satisfaction that the 
process of restructuring the ITC had been pu t forward effectively and that a successful 
implementation of its components had been taki ng place over the past months.  Switzerland was 
particularly pleased to see that the ITC's core comp etencies could be further strengthened by means of 
an intensive consultation with stak eholders and, particularly, with beneficiaries.  This conceptual 
fine-tuning would allow the further strengthening of the institutional partnerships with the UN and 
Bretton Woods Institutions, and therefore to position the ITC meaningfully within the international 
aid architecture, based on its comparative advantag e.  The ITC's work was of paramount importance 
in the present difficult economic situation. 
188. The representative of Colombia  said his statement had nothing to do with the substance of the 
issue under discussion, but rather, with the form, and he regretted having to make it.  The document 
his delegation had received entitled "ITC Report of the Forty-second Session of the Joint Advisory 
Group Meeting" was teeming with editorial mistak es.  Documents produced with Members' money 
should at least be done properly, particularly at  a time when all were talking about how scarce 
resources were.  He again regretted having had to make this statement, which could have been 
avoided if those responsible had done their work properly. 
189. The General Council took note  of the statements and adopted  the report of the Joint Advisory 
Group in document ITC/AG(XLII)/225. 
9. Committee on Budget, Finance and Administration 
(a) Report of the Committee on its meeting of March 2009 (WT/BFA/109) 
190. The Chairman  drew attention to the report of th e Budget Committee on its meeting in March 
in document WT/BFA/109. 
191. Ms. Swärd Capra  (Sweden), Chairperson of the Committee on Budget, Finance and 
Administration , said that at its meeting in March, th e Committee had reviewed the budgetary and 
financial situation of the WTO Secretariat and the extra-budgetary funds at the end of February.  The 
Committee had also taken note of the progress made on the building project.  The first stage of the renovation of the Centre William Rappard had star ted and would be conducted in seven successive 
stages, until completion by December 2012.  The resu lts of the architectural competition for the new 
building had been announced in February, and Wittf oht Architekten from Stuttgart had been awarded 
the first prize.  The construction of this CHF 40 million building was due to start in January 2011 and 
be completed by December 2012.  Members had di scussed the risks of referenda at city and/or WT/GC/M/120 
Page 58  
 
  cantonal levels, either of which could consequently delay the proj ect.  The Committee had continued 
to review the corrective actions recommended by the WTO Pension Plan Management Board to 
maintain the actuarial balance of the Plan in the long term.  As some Members had asked for 
additional information on the recommendation, the ite m had been deferred to the following meeting of 
the Committee. 
192. The General Council took note
 of the statement and adopted  the report in document 
WT/BFA/109. 
(b) Report of the Committee on its meeting of May 2009 (WT/BFA/110) 
193. The Chairman  drew attention to the report of the Budget Committee on its meeting in 
May 2009 in document WT/BFA/110. 
194. Ms. Swärd Capra  (Sweden), Chairperson of the Committee on Budget, Finance and 
Administration , said that in May, the Committee had reviewed  the budgetary and financial situation of 
the WTO Secretariat and the extra-budgetary funds at the end of April.  A slowdown in the receipts of Members' contributions had been observed since the start of the year.  However, the Secretariat's present cash situation and budget performance did not  show any specific area of concern.  On the 
on-going building project, a senior official of the Sw iss Department of Foreign Affairs had re-assured 
the Committee of Switzerland's full commitment to  this project and had also confirmed that 
Switzerland would cover any additional rental cost s arising from any delay due to the legislative 
process, in accordance with the signed Memorandum  of Understanding.  The Committee had also 
discussed the difficult parking situation at the WTO induced by the building project.  The Secretariat 
had presented different options to improve the situation during the construction work.  The Committee 
had resumed its review of the corrective ac tions recommended by the WTO Pension Plan 
Management Board to maintain the actuarial balance of the Plan in the long term.  The Chairman of 
the Management Board had provided Members with  additional information on its recommendation.  
However, certain Members had still not been in a position to join the consensus on the 
recommendation.  The Committee would continue its work on this issue. 
195. The Committee had reviewed the recommendation of the Secretariat to begin the 
implementation of the International Public Sector Accounting Standards, often referred to by the 
acronym "IPSAS", at the WTO.  The introduction of these standards aimed to provide public sector 
organizations with a more realistic picture of thei r financial performance and facilitate more efficient 
planning, management and decision-making.  The Co mmittee had reviewed the project plan prepared 
by the Secretariat and recommended that the WTO begin the process of implementing the 
International Public Sector Accounting Standard s (IPSAS) with the objective of issuing IPSAS-
compliant financial statements for the 2012 repor ting period.  Finally, the Committee had reviewed 
the proposal to suspend the application of Admi nistrative Measures for Gabon.  Gabon was the first 
Member to have accepted such a payment scheme in  order to liquidate its arrears.  The Committee 
recommended that in accordance with the Decision of the General Council of 15 May 2006, the 
General Council suspend the application of the Ad ministrative Measures for Gabon, which had agreed 
to, and undertook to abide by, a schedule of instalme nt payments aimed at liquidating all arrears over 
a period of three years starting on 1 January 2010.  The payments had to be received not later than 
31 December of each year, failing which the Administrative Measures would be reinstated.  On a related note, the Committee had also set up a Wo rking Group to review Administrative Measures 
applicable to Members with outstanding contribu tions and to consider the outstanding dues from 
Observers. 
196. Mr. Niggli (Switzerland), Chairman of the Management Board of the WTO Pension Fund
, 
said that as the Budget Committee Chair had said, the action recommended by the Management Board 
to correct the actuarial deficit recorded in the Pension Plan at 31 December 2007 had not yet been  WT/GC/M/120 
 Page 59 
 
 
  endorsed by the Committee.  As Chairman of the Ma nagement Board, he had to say that the resulting 
delay in restoring an actuarial balance to the Plan was a matter of considerable concern.  According to 
the Plan Regulations, the Management Board had, as its prime responsibility, the maintenance of the 
actuarial balance of the Plan.  The recommendati on before the Budget Committee was the result of 
extensive technical studies supported by the Consulti ng Actuary of the Plan.  The Management Board 
had adopted that recommendation by consensus in th e autumn of 2008 after lengthy discussions.  As 
the body with fiduciary responsibility to the Ge neral Council and Plan participants for the 
management of the Plan, the Management Board wa s most anxious that the necessary corrections to 
the actuarial deficit be made as soon as possible.  As required under the Plan Regulations, the Management Board had come forward with a r ecommended course of action for approval by the 
General Council.  The Board remained at the disposal of the Budget Committee for any further 
information or clarification it might require.  He nevertheless wished to emphasize that any further 
delay would only add to the deficit already recorded at the end of 2007. 
197. The General Council took note
 of the statements, approved  the Budget Committee's specific 
recommendations in paragraphs 28 and 29 of its  report in document WT/BFA/110, and adopted  the 
report. 
10. WTO Pension Plan – Election of an alternat e to the Management Board – Proposal by 
the Chairman of the General Council (WT/GC/W/600) 
198. The Chairman  recalled that Article 4(a) of the Regulations of the WTO Pension Plan 
provided, inter alia, for the election by the Genera l Council of a Chairman, four members and four 
alternates to the Management Board of the Pens ion Plan.  In a communication circulated to 
delegations in document WT/GC/W/600, he had indicated  that one alternate previously elected to the 
Management Board by the General Council was no longer available to serve on the Board, and that it 
was therefore necessary for the Council to deci de on a replacement.  Accordingly, in his 
communication he had proposed the name of a repre sentative who had kindly agreed to have his name 
put forward for election as an alternate.  He had also invited delegations to  submit any comments they 
might have regarding the proposed nomination by close-of-business on 20 May.  As he had not 
received any comments regarding the proposed nomin ation, he proposed that the General Council 
elect Mr. Ahmad Mukhtar (Pakistan) to serve as an alternate on the Management Board of the WTO 
Pension Plan for the remainder of the Board's term, i.e. until May 2011. 
199. The General Council took note  of the statement and so agreed .12 
11. Accession of Developing Countries – Statem ent by Gabon on behalf of the Informal 
Group of Developing Countries 
200. The representative of Gabon , speaking under "Other Business" and on behalf of the Informal 
Group of Developing Countries , said he wished to convey the Group's concerns regarding the 
accession of developing countries.  At the outset, the Group welcomed the efforts of the Director-General in this area, and fully concurre d with him that this was an area that deserved 
attention if Members wished to strengthen the multila teral trading system.  The Group also noted that 
the Secretariat had taken a number of initiatives in this area, for example by organizing a dialogue 
with acceding LDCs in the context of Geneva Week , concluding a recent high-level visit to Syria, as 
well as, in general, intensifying wo rk in the accession working parties.  Given the explicit view of the 
Group that accession of developing countries had to follow a legal and non-political process, the Group was also working on this matter and would hol d a special meeting in June to try to come up 
with concrete actions to accelerate the accession of  developing countries.  One of the possible actions 
the Group wished to explore would be the inclusion of a standing item on the agenda of the General 
                                                     
 
12 The Decision was subsequen tly circulated as WT/L/761. WT/GC/M/120 
Page 60  
 
  Council, where Members could be informed about  the state of the different ongoing accession 
working parties and review some of the pendi ng requests for the estab lishment of an accession 
working party.  The Group wished to hear the views of others on this idea and would likely come up with more ideas to explore at futu re meetings of the General Council. 
201. The representative of Ecuador
 said his delegation endorsed the statement by Gabon for the 
Informal Group of Developing Countries.  It was not clear what the problems of the countries 
acceding to the WTO were, and it would be very bene ficial to provide Members with a status report 
on accessions, so they could be aware of where problems lay, particularly regarding the LDCs.  Ecuador also wished to know the status of th e accession processes of Syria and Iran and the problems 
faced by these countries, in order to have a clear idea of what was happening and perhaps find 
remedies.  Political considerations should ultimatel y be left to one side, and the accession processes of 
these countries should move in a juridical and legal direction. 
202. The General Council took note
 of the statements. 
12. United States' export subsidies – Statement by Brazil on behalf of the G-20 
203. The representative of Brazil , speaking under "Other Business" and on behalf of the G-20 , said 
these countries wished to express thei r deepest concern in relation to the recent decision of the United 
States to reintroduce dairy export subsidies, as announ ced by the US Department of Agriculture on 
22 May.  The measure showed the rise of "mur ky protectionism", not directly violating WTO 
obligations and yet potentially weakening the WT O system in a time of economic crisis.  
Protectionism spread quickly.  It was not only about rising tariffs or controlling imports.  
Protectionism also included any form of government in tervention, such as subsidies, which artificially 
tilted the field in favour of domestic enterprises to th e detriment of competitors abroad.  In this case, 
the unsubsidized farmers in the developing world would also be negatively affected.  It was a 
worrisome sign that the US deci sion followed a similar decision by the EC to reintroduce export 
subsidies.  These examples, if emulated by other de veloped countries, would c ontribute to aggravating 
significantly the world economic situation and its ha rdship on the developing world.  In order to 
address these distortions in world agricultural trad e, the G-20 stressed the importance of concluding 
the Doha Round.  It also urged the United States a nd the EC to show leadership in the multilateral 
process of agricultural reform by withdrawing these export subsidies. 
204. Speaking on behalf of Brazil , he said that the reintroduction of these export subsidies was in 
contradiction with the letter and the spirit of the London Summit Declaration of the G-20. 
205. The representative of Ecuador  said his country supported the statement by Brazil for the 
G-20, and wished to stress that protectionist meas ures of this kind aggravated the already distortive 
measures applied in agricultural trade and should be  included in any proposed standstill clause.  For a 
proposal of this type to be supported by the ma jority of Members, it had to include immediate 
commitments – such as the conversion of mixed tari ffs, compound tariffs, matrix tariffs or any other 
kinds of tariffs into ad valorem  tariffs – the immediate cessation of domestic support and subsidy 
payments, a commitment not to use the special agricu ltural safeguard provided for in Article 5 of the 
Agreement on Agriculture, limitation of agricultu ral tariffs to no more than 100 per cent of 
ad valorem  tariffs, minimum utilization of the blue and green boxes, immediate compliance in the 
cases still pending in the Dispute Settlement Body, cessa tion of fisheries subsidies, etc.  If all of these 
measures were included, his country could cons ider a standstill clause in this organization. 
206. The representative of India  said his delegation fully associated with the statement by Brazil 
for the G-20 on the US dairy export subsidies.  These measures made global efforts to end export 
subsidies all the more difficult and complex.  India had consistently raised concerns about 
protectionist pressures and measures, including the impact of trade-distorting subsidies being  WT/GC/M/120 
 Page 61 
 
 
  introduced in the context of the economic crisis.  The trade-distorting impact of these subsidies was 
too obvious to require elaboration.   He noted that such subsidies were easier to introduce than to 
eliminate.  Therefore, it was important that Member s continue to exercise restraint and return to 
competitive conditions by immediate withdrawal of these subsidies as quickly as possible, as a continuation of such subsidies would place the de veloping countries at a serious disadvantage. 
207. The representative of South Africa
 said his delegation had been hi ghly restrained earlier in the 
present meeting in the discussion on protectionism and the US proposals to circumvent the current negotiations on modalities.  It had been restrained because it understood that the impact of the current 
economic crisis on US enterprises, workers and pe ople was a matter of high priority for the US 
Administration – just as it was for South Africa and many developing countries, as thousands of 
workers lost their jobs and industries cried out for governments to come to their aid.  South Africa 
also understood that the change from the Bush to the Obama Administration required a major change in trade policies, and that the current internal review of these policies in the United States was a 
challenging task made doubly hard by the current ec onomic crisis.  His country believed, hoped and 
expected that the new US Administration was genuine ly concerned to introduce into its trade policies 
a commitment to multilateralism, fairness and de velopment.  The US Ambassador, with his 
impressive communication skills, had given many wh o had met him cause to expect nothing less from 
the new Administration when it completed the internal  review of its trade policies.  South Africa had 
been a participant in the G-20 Summit in London and had signed onto the commitments made on 
protectionism.  It applauded the efforts of Norway  and other Members who had individually, as Cuba 
had stressed, wished to associate themselves with  these commitments.  South Africa had signed onto 
these commitments notwithstanding the growing political pressures on its Government to come to the 
aid of its industries and workers that were suffering from the negative effects of the crisis.  However, 
according to some observers, South Africa remained only one of three Members of that group of 
20 Members who had not yet taken measures that went  against the spirit of the commitments made in 
London.  Needless to say, the largest  and wealthiest of the G-20 members had been the first to take 
these measures. 
208. His delegation had also been restrained becau se it recognized that this crisis had taught 
Members about the great interdependence of their economies – all were floating on the same boat, and 
all had a great stake in the restoration of the hea lth of the banking system in the United States and 
other major economies and the recovery of these economies from the deepest recession since the 
1930s.  While South Africa had had no part in crea ting this crisis, its industries and workers were 
suffering the effects, as trade finance, export markets,  investments, remittances and aid were denied to 
the poorest developing countries.  Thus, all had a stake in the earliest possible recovery of the major economies.  South Africa recognized that some of th e measures that had been necessary to take might 
have negative trade-distorting effects and harm the production and exports of other developing 
countries – even developed countries, as Switzerland had pointed out.  As Brazil had said, there was a 
great responsibility therefore on those that had taken these measures to minimize their trade-distorting 
effects and ensure there was no lasting and structural damage to many vulnerable industries in developing countries.  It was for this reason that Argentina's proposal to strengthen the monitoring 
and transparency of these bailout packages was very helpful.  A better understanding of the impact of 
the measures being taken was in the interests of all,  so that policy makers had a better appreciation of 
their impact and the WTO could play its role in en suring transparency and maintaining the stability of 
the rules-based trading system during this time of cr isis.  As China and Ukraine had said earlier in the 
meeting, the WTO needed to distinguish between th ose measures that distorted global trade and those 
counter-cyclical measures that were taken by countr ies to increase flagging demand, to improve their 
infrastructure, to support the livelihoods of th e poorest, and to provide development support to 
industries and workers in developing countries that were on the verge of collapse as they experienced 
the shocks of the current crisis.  In this cont ext, Members should not forget the plight of many 
countries, especially in Africa, that would require a major injection of aid to act as a stimulus to 
prevent further deterioration of their fragile ec onomies and further human tragedy.  The WTO would WT/GC/M/120 
Page 62  
 
  do well to take measures within its grasp to assist th ese economies.  The call by Tanzania for an early 
harvest for LDCs had to be taken further, to explore how all Members could provide duty-free quota-
free market access and a waiver for preferential ser vices exports from LDCs, to address the plight of 
cotton producers, and to provide increased Aid fo r Trade to assist these economies to build their 
supply capacity.  The US actions on the reintroduction of dairy e xport subsidies, following on the 
heels of similar actions taken by the EU, was anot her matter.  These measures had nothing to do with 
the economic crisis.  They distorted trade, harmed  the poorest countries' exports and destroyed poor 
countries' agricultural development.  These measures,  as New Zealand had said, were symptomatic of 
the beggar-thy-neighbor policies that had extended the Great Depression for ten years after 1929.  His 
delegation could not help recalling that this recent ac tion by the United States put into question its call 
for a high level of ambition in the Round by circ umventing the current modalities approach Members 
had taken to the Doha negotiations.  The United States had already obtained significant flexibilities 
for its agriculture sector in the Round, which had continuously lowered the ambition of the Round in 
agriculture, particularly for developed countries, prompting other rich countries like the EU, Japan, 
and Canada to ask for more flexibilities.  The m odalities approach had help ed Members build some 
benchmarks to determine levels of fairness, pr oportionality of commitments and balance within and 
between issues.  It had fostered a multilateral approa ch that had created transparency and legitimacy. 
209. South Africa was not pleased with the current balance in the modalities texts of July and 
December.  The level of ambition in Agriculture ha d been drastically lowered, and the commitments 
being sought from South Africa and SACU in NAMA  were both onerous a nd imbalanced.  Thus, 
South Africa would welcome a fresh approach to the Round by the United States and other 
demandeurs on the substance of the Round and its  development mandate.  However, it cautioned 
those who sought more for their exporters by circum venting the modalities, and who harked back to 
old approaches centered on bilateral leverage and small groups that included only the major exporters 
and excluded others from participating in the archit ecture of the deals.  These approaches were the 
hallmark of the old GATT and had led to the imbala nce and legitimacy crisis the WTO had inherited 
from the Uruguay Round.  South Africa was convinced that the new US Administration would not 
retreat into these obsolete methods of the past.  As President Obama had recognized, "the world has 
changed and we must change with it".  The new US  administration should take the time necessary to 
conduct its internal review.  Sout h Africa looked forward to re-enga ging with the new Administration 
on a new approach, which balanced the United States ' narrow market access interests with the need to 
restore balance in addressing the interests of deve loping countries in the WTO, as the Doha mandate 
had promised, and which focused on the plight of the poorest countries that demanded immediate 
redress and relief.  It was this new approach and leadership that would create the new atmosphere 
required to foster proportionate contributions by a ll, big and small, devel oped and developing.  As 
Members moved towards the next Ministerial Confer ence at the end of 2009, they looked to the new 
US administration to play a leading role in re-building the WTO into a global public good for all. 
210. The representative of Uruguay
 said his country viewed the reopening of the US dairy export 
incentive scheme as a very bad sign, first and foremo st for the market.  These subsidies had not been 
used for several years and the market had begun to assume that such distorting interference was a 
thing of the past.  At the present stage, no one need ed reminding of the harm export subsidies inflicted 
on efficient producers, in particular in developing co untries.  To make matters worse, these subsidies 
were being reintroduced at a time of global econom ic crisis, when any protectionist measure was 
twice as negative.  In this respect, Uruguay shared the concern voiced by Brazil for the G-20 about the 
way in which leading members of the financial G-20 were so easily extricating themselves from their 
recently assumed commitment not to adopt new protec tionist market-distorting measures in times of 
crisis.  Now it was the United States, and the previo us day it had been the EC.  This was not the sort 
of leadership needed from the worl d's two biggest trading partners. 
211. The representative of Cuba  thanked Brazil for having raised this issue.  Cuba agreed with and 
shared the concerns expressed by Brazil, and also associated itself with all the other statements made,  WT/GC/M/120 
 Page 63 
 
 
  in particular that of South Africa, which was qu ite thorough and comprehensive.  A long discussion 
had also taken place earlier in the present meeting on the proposals by Argentina and by a group of "standstill" countries.  In this respect, despite the fact that under this standstill, both the EC and the 
United States had associated themselves once again with the proposal emanating from the G-20 in 
London, it would appear that double standards of the "do as I say, but not as I do" variety were being 
applied.  In view, and in support, of the impr essive sentiment prevailing at the present meeting – 
where many Members were suggesting that steps be  taken to prevent protectionist measures while 
negating such calls by introducing measures of th eir own – he would conc lude by endorsing the 
statement by Ecuador. 
212. The representative of China
 said his delegation fully associated  with the statement by Brazil 
for the G-20.  As his delegation had said under ite ms 5 and 6 of the present meeting's agenda, export 
subsidies were the most trade-distorting measures  in agriculture.  Most of the Members speaking 
under these agenda items earlier in the meeting had expressed the willingness to follow the G-20 
standstill commitments in the current crisis.  The major Members should set an example of how their 
actions matched their words, but one was seeing ex actly the opposite.  This was very worrisome.  
China urged the United States and the EC to w ithdraw the measures as soon as possible and to 
faithfully implement the G-20 standstill commitments. 
213. The representative of Australia , on behalf of the Cairns Group , said the Group was extremely 
disappointed by the recent US decision to reintrodu ce dairy export subsidies.  This was a backwards 
step.  This unfortunate decision followed that of th e EU to reintroduce export refunds for a number of 
agricultural products, which the Cairns Group ha d similarly condemned in its statement of 
27 January 2009.  Regrettably, the United States had not heeded the call for economies to resist 
domestic pressures to retaliate with their own e xport subsidies.  The United States and EU had to 
show better leadership, particularly during the curre nt time of global financia l and economic crises.  
Both had argued that they would not exceed thei r WTO commitment levels on export subsidies, but 
this was not the point.  If other economies followed the example set by the Unites States and the EU 
and raised tariffs and domestic support and export subsidies towards their maximum WTO 
commitment levels, this would undermine the ef fectiveness and credibility of the WTO system.  
Subsidy wars only drove prices even lower, ther eby delaying economic recovery further.  They 
punished those trying to compete without the help of subsidies, and particularly damaged unsubsidized farmers in developing countries, jeopa rdising their agricultural production, food security 
and their most competitive export sectors.  The Cairns Group therefore called on the United States and 
the EU to review their decisions with a view to withdrawing these export subsidies within the shortest 
timeframe.  Both needed to specify a clear and early  date for the removal of these subsidies, in order 
to help restore confidence in agricultural market s.  In the meantime, the Group called on the United 
States and the EU to exercise the ut most restraint in the use of these export subsidies, and to avoid 
markets where they would have the biggest impa ct on unsubsidized producers.  The US and EU 
decisions also underscored the importance of secu ring a balanced and amb itious conclusion to the 
Doha Round as soon as possible.  Members had alr eady agreed – as a result of strong pressure from 
the Cairns Group and others pushing for the real refo rm of international agriculture – to completely 
eliminate export subsidies by 2013 as part of an overall trade deal.  Cairns Group Ministers were meeting in Bali in June to explor e how to advance the Doha Round negotiations on Agriculture.  They 
would also use this meeting to address the issue of export subsidies and to reinforce the importance of 
not resorting to trade protectionist measures at this difficult time for the global economy. 
214. The representative of the United States
 recalled that the previous week his country had 
announced allocations under its dairy export incentive programme for the period through 
30 June 2009.  Even though this was completely allowed under WTO rules and US obligations in the 
WTO, the decision had not been taken lightly.  The United States had not used this programme for the 
past five years.  However, recently there had been  a sharp reversal in the outlook for global dairy 
markets and for the US market.  International prices and trade volumes had dropped sharply.  For WT/GC/M/120 
Page 64  
 
  example, US exports of non-fat dry milk for the period January-March 2009 had been 75 per cent 
lower in value and 52 per cent lower in volume than  for the comparable quarter in 2008.  The EU's 
reintroduction of subsidies on dair y products had had a price-suppressing effect and threatened to 
displace the United States from a number of its traditional markets in Asia, North Africa and the Middle East.  In operating the programme, the United States would make every effort to minimize the 
impact on non-subsidising forei gn suppliers.  Among such efforts,  it would consider limiting the 
quantity of subsidized products that entered a speci fic geographic market in order to minimize market 
disruption.  The United States wished to emphasize that its measured response was fully consistent 
with its WTO commitments and had been crafted to  keep the US domestic dairy industry from being 
artificially displaced by subsidies in certain key markets.  It was prepared to sit down with EU 
representatives to discuss the deactivation of th ese dairy export subsidy programmes.  Regarding 
South Africa's statement, he wished to correct a misunderstanding – the United States had not suggested circumventing modalities.  It had, however , raised the question of how best to use the full 
range of modalities that had been agreed upon in  order to complete the Doha Round successfully. 
215. The representative of the European Communities
 said the present agenda item was about 
measures taken by the United States, but the EC had been mentioned in the same breath, and his 
delegation wished to make some observations.  Firs t, he wished to touch on the suggestion made 
earlier in the meeting and again now that the US d ecision on its export subsidies had been taken in 
some way as a reaction to the EC measures.  That li nkage was inappropriate and misplaced, to put it 
diplomatically.  The US introduction of export subsidies, exercising a right it had in the WTO, was its decision alone, although the EC and the United States both no doubt regretted the latter's having had 
to take that decision.  Regarding the EC's expor t refunds for some diary products, which had been 
mentioned by a number of delegations, he wished to  make a few observations for the record.  First, 
the EC had reapplied its export refunds for dairy products as a response to an already significant 
decrease in world market prices in the face of lower demand.  This was not a new measure, let alone a 
new programme, but rather recourse to an existing market management mechanism which the EC had 
not had to use in the immediately preceding period .  The re-invocation of this mechanism had been 
caused by a decrease in demand coupled with a very  substantial increase in production and supply to 
the world market by New Zealand, the United St ates, Argentina and Brazil.  Notwithstanding the 
reintroduction of these export refunds, the EC had managed to keep its pr oduction unchanged and had 
actually reduced deliveries to the world market.  The drop in world prices had continued and had had 
nothing to do with the reintroduction of EC export refunds.  In addition, during the period 2007-2008 
the EC had reduced its refunds to zero for a numbe r of products including cereals, wheat, rice, butter 
and skimmed milk powder.  The EC had not seen th e same levels of reduction in relation to, for 
example, US Government-supported export credit progr ammes.  In addition, there were dairy export 
monopolies in the southern hemisphere which them selves played a crucial role regarding world 
market prices.  The EC was not happy with having  had to reintroduce its export refunds for some 
diary products, and would have pref erred not to have taken this acti on, but the market situation had 
made it unavoidable.  Although the EC did not necessar ily share the assessment and analysis of these 
measures expressed by the other G-20 members, Braz il and the Cairns Group, it could certainly share 
their sentiment and their stress on the importance of concluding the Doha Round as soon as possible in order to bring Members to a situation in which export subsidies would be a matter of history. 
216. The representative of Argentina
 said his delegation had not intended to take the floor, as it 
fully associated itself with the statements by Brazil for the G-20, to which Argentina belonged, and by 
Australia for the Cairns Group, to which it also be longed.  However, Argen tina was the fifth largest 
exporter of dairy products after the European Uni on, New Zealand, the United States and Australia.  
Neither New Zealand nor Australia had granted the subsidies that were under discussion at the present 
meeting.  Argentina's exports would perhaps be better placed if it were not for that situation.  In any 
event, his delegation wished to highlight that Arge ntina had not only a systemic interest, but a clear 
commercial interest, because it too suffered from being displaced in certain markets – in North Africa, 
for example – by certain subsidies.  His delegati on welcomed the US explanation of the reason the  WT/GC/M/120 
 Page 65 
 
 
  measures had been taken, as well as the intentio n previously declared by the US Secretary of 
Agriculture to seek to minimize the effects or impa ct of such measures.  The United States had said 
that it could not or should not be artificially displaced  in certain markets.  Neither the United States, 
nor Argentina, nor any other country should be placed  in this situation, a nd his delegation welcomed 
the US intention to initiate a dialogue with the EC with a view to reaching some kind of solution.  
Argentina noted that the EC had also explained th e reason for its reintroduction of the measures that 
were currently causing Argentina problems, as a re sponse to lower prices on the market for dairy 
products, lower demand, and increased production by cer tain competitors, including Argentina.  This 
had obviously given rise to a chain reaction, which was what his delegation had been repeating since 
2008 when the crisis had broken.  In spite of political statements, ce rtain measures had been taken that 
had already produced a chain reaction.  Thus, it would be helpful if the EC could enter into a dialogue 
with the United States on this topic. 
217. The representative of Brazil  said that as indicated by the discussion thus far, this was a very 
sensitive issue.  Brazil was not convinced by the argument that the reintroduction of these payments 
did not contradict the G-20 Summit Declaration because this was not a new measure or a new 
programme, but rather merely the reintroduction of payments that had been made earlier and were 
now being paid again because the market had changed.   That very same argument could be made with 
regard to tariffs.  Brazil's tariffs were at a particular level at present, but they had not always been at that level.  They had been higher and had been going down.  Brazil could easily raise those tariffs 
back to where they had been a fe w years earlier, and could say this was just the administration of 
tariff measures, that market conditions had changed a nd that therefore it was merely bringing the level 
back to where it had been earlier.  If one accepted th is interpretation of the commitments taken by the 
G-20, those commitments were essentially meani ngless.  Thus, Brazil was not convinced that the 
payments at issue did not contravene the commitm ents undertaken by the G-20 leaders, and again 
reiterated its strong call for the United States and th e EC to withdraw these subsidies immediately. 
218. The representative of Mexico
 said the discussions thus far appeared to reflect a problem 
between exporting countries.  Mexico was one of the world's leading importers of dairy products, had 
free trade agreements with the United States and th e European Union, and had milk producers that 
were being affected by low prices, not only because of current market conditions but also as a result 
of export subsidies.  Export subsidies were the chie f instrument distorting global agricultural trade.  
His delegation agreed with what Brazil had just said and was convinced that the G-20's commitment 
was a commitment not to use measures even though th ey were permitted in the WTO.  It was also 
clear that if Members started behaving in this fashi on, there would be no end to it.  He apologized for 
prolonging the discussion but thought it was important to point out that this was a problem not only for producers and exporters in exporting countries, but also for importers and producers in importing 
countries. 
219. The representative of Australia
 said that, regarding the impact of the justification used by both 
the EC and the United States for the reintroduction of  their programmes, it had already made its points 
concerning the US Dairy Export Incentive Programme  and its reintroduction and the fact that, as 
Argentina had said, while there was a systemic i ssue here, there were also some real commercial 
concerns for both developed and developing countries.  However, his delegation also had a more 
general problem.  The US and EC  arguments seemed essentially to be that the programmes were 
existing ones, that there was clear evidence of ma rket disruption as shown by a significant loss of 
export value or fall in export volume, and that th erefore one had the right to justify reintroducing 
export subsidies on dairy products.  The problem with that argument was that there were one or two 
areas of manufactured goods of particular export in terest to both the United States and the EC where 
there were clearly existing programmes where tariff s were not up to their maximum WTO level – the 
applied level was below the bound level – where there was demonstrated market disruption associated 
with a fall in export volumes and a loss of export value.  It was not clear what argument the United 
States and the EC would make if other countries were  to take similar actions  with respect to their WT/GC/M/120 
Page 66  
 
  manufactured exports.  His delegation did not wish to  enter a debate on this now, but this seemed to 
be very slippery grounds on which to try to ju stify reintroducing export s ubsidies on dairy products. 
220. The representative of Egypt
 said this was a clear example of how these vicious circles of 
protectionism could be triggered very easily.  On e Member took a step, others reacted and then one 
entered a vicious circle that would lead to a ki nd of snowball effect.  Egypt was particularly 
concerned that international comm itments had been undertaken by major trading powers and were 
now being slowly eroded by measures here and there.   This would lead to a situation where weaker 
trading partners would feel more pressure from thei r constituencies because of their inability to deal 
effectively with the effects of the crisis on employment and economic ac tivities, and would lead 
Members in a direction all wanted to avoid, as ha d been said in many different WTO fora.  Perhaps 
the United States and the EC should get together and talk about how to mitigate the particular measure 
that had been taken.  However, Egypt was more concerned by the possible proliferation into other 
areas of the world trading system, which would clearly  be a step in the wrong direction.  This was a 
real danger, which all should work to avoid as much  as possible.  Egypt shared the concerns expressed 
by Brazil for the G-20 as well as Brazil's subsequent statement. 
221. The General Council took note  of the statements. 
13. Appointment of the Deputy Directors-General – Statement by the Director-General 
222. The Director-General , speaking under "Other Business ", informed the Council that he had 
decided to retain the current four Deputy Directors- General in their current position for a further term.  
During the past four years, this had been a strong team that had served the organization and the Members with dedication and vision.  Together th ey had worked to advance the interests of the 
multilateral trading system.  As one prepared to move  into what he hoped would be the last miles in 
the Doha Round, and after careful reflection, he ha d wished to privilege experience and safeguard 
continuity.  He looked forward to working with th is team, which was now clearly his team, and with 
all Members in the months and years to come, and to  continue in the same c ooperative and team spirit 
to strengthen the multilateral trading system. 
223. The General Council took note
 of the statement. 
14. Chairmanships of the Working Parties on the Accession of Afghanistan, Iraq, Lao PDR 
and Samoa 
224. The Chairman , speaking under "Other Business ", informed Members that following 
consultations with Members of the Working Party and the authorities of Afghanistan, and in keeping 
with usual WTO practice, it had been agreed th at Mr. Boudewijn Van Ee nennaam (Netherlands) 
would serve as Chairman of this Working Party, replacing Mr. De Jong (Net herlands) who had left 
Geneva and was no longer available to serve in this  capacity.  Following consultations with Members 
of the Working Party and the authorities of Iraq, an d in keeping with usual WTO practice, it had been 
agreed that Mr. Omar Hilale (Morocco) would serve  as Chairman of this Working Party, replacing 
Mrs. Uribe (Colombia) who had left Geneva and w as no longer available to serve in this capacity.  
Following consultations with Members of the Worki ng Party and the authorities of Lao PDR, and in 
keeping with usual WTO practice, it had been agre ed that Mr. Zhang Xiangchen (China) would serve 
as Chairman of this Working Party, replacing Mr. Go sper (Australia) who had left Geneva and was no 
longer available to serve in this capacity.  Las tly, following consultations with Members of the 
Working Party and the authorities of Samoa, and in keeping with usual WTO practice, it had been agreed that Ms. Kumi Sato (Japan) would serve as  Chairperson of this Working Party, replacing 
Mr. Suzuki (Japan) who had left Geneva and was no longer available to serve in this capacity.  On 
behalf of the General Council, he wished to thank Mrs. Uribe and Messrs De Jong, Gosper and Suzuki 
for having served as Chairpersons of these Working Parties.  WT/GC/M/120 
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  225. The representative of Morocco  expressed his pleasure and honour at having been appointed to 
chair the Working Party on the Accession of Iraq .  This appointment also demonstrated the 
confidence Members had in his country  and acknowledged Morocco's role in  this organization.  It also 
reflected Morocco's privileged relationship with its fr iend and sister country, Iraq.  He wished to point 
out how important the successful conclusion of these accession negotiations was for Iraq, not only 
because it was at a particular juncture in its hi story, but because it needed this accession to gain 
stability, to enhance its development and above all to  reintegrate into the global economic and trading 
system.  The WTO's support for Iraq's accession was also a strong sign that the international community was in favour of Iraq's full reintegration into the global economic system.  He assured the 
Members that Morocco, and he personally, would make  every effort not only to ensure that the 
Working Party's work resumed as soon as possible, but to work together to gr ant Iraq's wish that it 
might accede to the organization within the shor test possible time-frame.  He would count on the 
support of DDG Jara and the Director of the Accessions Division to help him in this mission, and was sure that their support and assistance, and the prof essionalism of their teams, would make his mission 
easier. 
226. The General Council took note
 of the statements. 
15. Administrative Measures for Members in arrears 
227. The Chairman , speaking under "Other Business ", recalled that at its meeting in May 2006, the 
General Council had approved a recommendati on from the Committee on Budget, Finance and 
Administration regarding revised Administrative Measures for Members in arrears (WT/BFA/86).  
Among these Administrative Measures was a requirement that at each meeting of the General C ouncil, 
the Chairman of the Committee on Budget, Fina nce and Administration s hould provide information 
with regard to which Members were under Administ rative Measures in Ca tegories II through IV. 
228. Ms. Swärd Capra  (Sweden), Chairperson of the Co mmittee on Budget, Finance and 
Administration , said the Members under Categories II through IV of the Administrative Measures as 
at 25 May 2009 were as follows:  Grenada and Peru  in Category II;  Mali, Nicaragua, Paraguay and 
Zimbabwe in Category III;  and the following Memb ers in Category IV:  Burundi, Central African 
Republic, Chad, Commonwealth of Dominica, Cô te d'Ivoire, Democratic Republic of Congo, 
Djibouti, Gambia, Guinea, Guinea-Bissau, Mauritani a, Niger, Republic of Congo, Senegal, Sierra 
Leone and Togo. 
229. The Chairman  then recalled that under the revised Administrative Measures he was also 
required at each Council meeting to request t hose Members in Categories III and IV of the 
Administrative Measures to inform him, before the next meeting of the General Council, as to when 
their payment of arrears might be expected.  In keeping with the Administrative Measures, he would 
report on Members' replies to the next meeting of the General Council.  Since the February Council 
meeting, he had been informed that Gabon ha d accepted a payment scheme, which the General 
Council had just approved under Item 9 of the presen t meeting, and that Malawi had liquidated its 
outstanding contributions in arrears. 
230. The General Council took note  of the statements. 
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 WT/GC/M/120 
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  ANNEX 
 
Statement by Mr. Mark Muller, Ge neva State Councillor in charge of
 
the Department of Constructions  and Information Technologies  
 
 
 I am very happy to be here today and to take the floor on be half of the State Council of the 
Republic and Canton of Geneva.  The WTO is a ke y organization for Geneva and we are honoured to 
have its headquarters in our city.  It plays a uni que role in maintaining and strengthening the global 
trading system, and it fully contributes to the overa ll effort by international Geneva to promote a 
safer, more prosperous and more just world.  Such  values are equally dear to the Geneva and Swiss 
authorities.  Your organization has established many close links in its cooperation with the other 
international organizations located in Geneva as  regards environmental issues and human rights, 
among other things.  The growth of the WTO, especia lly in terms of the number of Members, is the 
best testament of the organization's importance to the international community.  You may rest assured 
that the host canton's authorities are determined to support that growth.  Thanks to outstanding 
collaboration between the WTO Secretariat, the Swiss Confederation and the Canton of Geneva, we have a high-quality project that will enable your orga nization to benefit from a unique site suited to its 
foreseeable needs in terms of space and security, here at the Centre William Rappard.  Every 
precaution has been taken in order to ensure perfect  integration of this high-quality project in the 
magnificent park to which the citizens of Geneva are deeply attached, and to guarantee that the 
general public will continue to have access to the lakeshore and pathways.  I recently demonstrated 
that this would be the case – thanks to the temporar y staking-off of the future security perimeter – at a 
press conference at which I was accompanied by th e Permanent Representative of Switzerland to the 
United Nations Organization in Geneva, Ambassador Dante Mar tinelli, and the WTO Director-
General's Deputy Head of Cabinet, Mr. Victor do Prado. 
 
 As you know, Switzerland has a federal system of semi-direct democracy, meaning that policy decisions are submitted to numerous aut horities operating at several levels.  The 
decision-making process may appear long and tedious but it ensures broad consultation of the circles 
concerned and the population at large.  This system  has existed in this country for more than 160 
years and has allowed us to live in peace and harmon y.  We respect it and are attached to it, even 
though sometimes things do not move forward as swiftly  as we would like.  In the specific case of the 
extension of the Centre William Rappard to the current parking lot and the establishment of the 
security perimeter your organization requires, the Ca nton of Geneva has to adopt a law modifying the 
purpose for which the land involved is to be used.  In accordance with current procedures, the draft 
law has been submitted for prior consideration by the commune concerned, namely the City of 
Geneva.  On 1 April 2009 the City's parliament i ssued a favourable opinion, on which the citizens of 
the City of Geneva will be voting if 4,000 signa tures are collected in the municipal referendum 
initiated by those who object to the project.  The deadline for the collection of signatures expires 
today, 26 May.  If the requisite number of signatur es is reached and the signatures are validated, a poll 
will be held in the City of Geneva, probably on 27 September 2009.  In any event, the final decision 
will then lie with the Canton and its parliament, or the citizens of the Canton of Geneva if a cantonal 
referendum is launched and accepted.  In this c onnection, it should also be noted that cantonal 
elections will be held this coming autumn and that  some parties are using their objection to the WTO 
extension for political ends.  As regards the de -zoning request which has been submitted, you have 
seen that it has not entailed any suspension of th e work already under way.  I know that the WTO 
attaches considerable value to the objects th e Centre William Rappard contains.  The major 
investigation and restoration works conducted by your organization in close cooperation with the 
International Labour Organization bear witness to th is.  The library's wood panelling, the frescoes, the 
sculptures and the ceramic panels will all be preser ved.  The de-zoning request will be processed in 
conformity with the law.  You have undoubtedly noted that the authorities concerned at federal, 
cantonal or communal level have ta ken a public stand in favour of the WTO extension project and  WT/GC/M/120 
 Page 69 
 
 
  have stressed its importance for Geneva, in par ticular during press conferences held on 23 March and 
7 May 2009.  Both the City and the Canton of Gene va are firmly resolved to pursue this endeavour, 
and the State Council will do its utmost to see that  this project takes shape within the scheduled 
time-frame.  We would like the work to be complete d by 2012.  This remains a realistic goal.  The 
Canton of Geneva welcomes the close cooperation and communication it has established with your 
organization's Secretariat, to which I extend sincere thanks. 
 
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