06-3559  . /. JOB(06)/231  24 July 2006  
  
INFORMAL TNC MEETING 
AT THE LEVEL OF HEAD OF DELEGATION 
 
Monday, 24 July 2006 
 
Chairman's Introductory Remarks
 
 
  Thanks a lot for coming here today at a very short notice but events have precipitated in the 
last hours and I feel it is essential that we lucidly look together at where we are and what remains of 
our goal of concluding the Round by the end of the year .  I cannot hide the sad truth:  we are in dire 
straits.  
  On 1 July, the TNC requested me to conduct intensive and wide-ranging consultations with 
the aim of facilitating the urgent establishment of modalities in agriculture and NAMA.  I was also 
requested to report to you as soon as possible.  As I stated at the time, my aim in these consultations 
would be to facilitate and catalyze agreement am ong Members, who continue d to remain the main 
actors in the process.   Since then I have undertaken this consultative process as requested, starting with the members 
of the G6 and then progressively widening the circ le of my contacts with individual delegations and 
with groups. 
 
 I also attended the outreach session at the G8 Summit in St. Petersburg, where a number of 
your Heads of State and Government were present.  I was very frank with the Leaders, and told them 
that they needed to revise thei r instructions to you and give you more flexibility. My request for 
flexibilities was twofold:  one, that they improve th e numbers on the table and two, that they agree to 
adjust what they are ready to pay with what they can  reasonably expect for that price.  I also warned 
them that failing this, they risked the very situ ation in which we now find ourselves.  During the 
meeting there were some encouraging signs of add itional flexibility at that highest political level. 
  To follow up on these signals, the G6 Ministers held a meeting here yesterday, chaired by myself with the assistance of the Agriculture and NAMA Chairs.  Th is was a lengthy and detailed 
meeting, but at its conclusion, it remained  clear that the gaps remain too wide. 
  From the discussions over this weekend, it is  clear that the main blockage is on the 
Agriculture legs of the triangle of issues the G6 has been trying to address. Despite some 
improvement on numbers which were informally fl oated and in particular on market access for 
developed countries, the gap in level of amb ition between market access and domestic support 
remained too wide to bridge.  This blockage was such that the discussion did not even move on to the 
third leg of the triangle – market access in NAMA.    The situation is now very serious.  Without  the modalities in Agriculture and NAMA, it is 
now clear that it will not be possible to finish the Round by the end of 2006.  For one thing, the time 
necessary to prepare and finalize the schedules of con cessions is just not there.  Furthermore, while 
discussions among the G6 on a limited number of key issues have been a precondition to further progress, we need always to remember that the G6 does not negotiate for the rest of the membership.  
There are also many other issues than the so-calle d triangle which would remain to be addressed in 
order to reach agreement on full modalities.  Th e timing has always been very tight, but the 
continuing blockage on a few key points means we  have simply run out of time for the rest. 
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 Faced with this persistent impasse, I believe that the only course of action I can recommend is to suspend the negotiations across the Round as a whole to enable the serious reflection by 
participants which is clearly necessary. Time-out to  review the situation, examine available options 
and review positions.  
 In practical terms, this means that all work in all Negotiating Groups should now be 
suspended, and the same applies to the d eadlines that various groups were facing. 
  It also means that the progress made to date on the various elements of the negotiating agenda 
is put on hold, pending the resumption of the negotia tions when the negotiating environment is right.  
Significant progress has been made in all areas of th e negotiations, and we must try together to reduce 
the risk that it unravels.   This is what I will suggest at the General Council meeting on Thursday.  I do not intend to 
propose any new deadlines or a date for resumption of activity in the Negotiating Groups.  This can 
only come when the conditions exist to permit renewed progress, and this means changes in 
entrenched positions. The ball is clearly in your court.  I have discussed this suggestion with the Chairs 
of the Negotiating Groups just before this meeting and they agree with me that this is the best course 
of action at this moment.    In the meantime, I urge you all to use this pe riod of reflection for precisely that – for serious 
and sober reflection on what is at stake here.  We a ll know that this is the most ambitious of all the 
trade rounds over the past 50 years.  In fact, what is already on the table today is potentially worth two 
to three times more than previous rounds, whet her for developed or for developing countries. 
  As I told leaders in St Petersburg, failure of  this Round would be a blow to the development 
prospects of the more vulnerable Members, for whom  integration in international trade represents the 
best hope for growth and poverty alle viation.  This is why it is calle d "the development round":  it is 
intended to be a contribution to the Millennium Development Goals.   Failure, in my view, would also send out a st rong negative signal for the future of the world 
economy and the danger of a resurgence of protectio nism at a time when the pace of globalization is 
weighing heavily on the social and economic fa bric of many countries and when geopolitical 
instability is on the rise. This is only too obvious if one looks today at the international situation out 
there, I mean, outside this room.   All your leaders and governments have repeat edly stressed their desire to conclude the 
Round, and it cannot be acceptable that this commitmen t is not acted upon.  If the political will really 
exists, there must be a way.  But it is not here t oday.  And let me be clear: there are no winners and 
losers in this assembly.  Today, there are only losers.   For my part, I will of course continue my contact s with participants at every level, and I will 
also remain available to all Members, as will the Negotiating Group Chairs, for any contacts you may 
wish to have with us.  My priority as Director-Gen eral will continue to be to defend the integrity of 
the WTO system and to continue to assist  the membership to reach agreement.  
  You can count on me to do everything I can to keep up the pressure for the political movement which would permit a resumption of the ne gotiations.  However, it should remain clear that 
this must come from you, the Members.  It is how you can achieve this movement that I urge you all 
to reflect upon during this time out.   
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