RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/GC/M/122 
26 February 2010 
 (10-1099) 
General Council 
20 October 2009  
 
 
 
MINUTES OF MEETING 
 
Held in the Centre William Rappard  
on 20 October 2009  
 
Chairman:  Mr. Mario Matus (Chile)  
 
 
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 ......................................12  
3. Non-recognition of rights under Article XXIV:6 and Article XXVIII of GATT 1994 – Communications from Honduras and Guatemala – Statement by the 
Chairman....................................................................................................................... ..........13
 
4. The financial and economic crisis and the role of the WTO – Communication 
from Argentina and Ecuador.................................................................................................15  
5. Accession of developing countries – Comm unication from Gabon on behalf of 
the Informal Group of Developing Countries ......................................................................22  
6. Seventh Session of the Ministerial Conference.....................................................................30  
(a) Statement by the Chairman...................................................................................................... .30 
(b) Election of Officers........................................................................................................... ........30  
(c) Attendance of observers from governments and international intergovernmental 
organizations.................................................................................................................. ...........30  
(d) Trust fund to facilitate the participation of LDCs.....................................................................40  
7. WTO Pension Plan............................................................................................................... ...41 
(a) Annual Report of the Mana gement Board for 2008 .................................................................41  
(b) Election of a member and an alternate to the Management Board – Proposal by the 
Chairman of the General Council .............................................................................................42  
8. Committee on Budget, Finance and Administration - Report on meeting of October 2009 ................................................................................................................... ........42
 
9. Accession of least-developed countries - Statement by Cambodia .....................................43  
10. Statement by the Chairman in connect ion with Administrative Measures for 
Members in  arrears ............................................................................................................. ...44 
 WT/GC/M/122 
Page 2  
 
  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, Chairman of the TNC , said1 that since his last report to the General 
Council, work in the DDA negotiations had been taken up again at the level of the Negotiating 
Groups.  On 22 September, the TNC had held an info rmal meeting to consider the next steps in the 
DDA over the coming months, as well as his report to th e G20 Leaders' meeting in Pittsburgh in light 
of developments that had emerged from the meeting in  L'Aquila and an informal meeting of Ministers 
in New Delhi.  At the informal TNC meeting, after consultations by Chairs of the respective 
Negotiating Groups and his own cons ultations, a comprehensive and structured work programme for 
the next three months had been devised which includ ed participation of Senior Officials each month 
in October, November and Decemb er.  He recalled that many dele gations had stressed that, as good as 
the work programme might be, it would not be suffi cient to lead to results without the political 
engagement and hard bargaining that needed to take place among Members.  That engagement was 
needed at all levels – multilatera lly, plurilaterally and bilaterally.  He pointed out that his message to 
G20 leaders in Pittsburgh, had been that delegations  in Geneva had done what had been asked of 
them.  The road had been mapped out but still needed to be walked.  He had pointed out that there was 
a gap between what Leaders said and where they we re on the questions of containing protectionism 
and concluding the Round.  He had urged them to address this "gap" problem and to give negotiators 
clear instructions that concluding the Round remain ed a priority, if concluding the Round in 2010 was 
to be doable, which he believed it was.  The Stat ement by the Leaders of the G20 had re-affirmed 
their commitment to seeking a conclusion to the DD A in 2010, consistent with the mandate and based 
on the progress already achieved, including with rega rd to modalities.  They had endorsed the work 
programme that had been developed and had instructed  their Ministers to take stock of the situation 
no later than early 2010, taking into account the r esults that would have been achieved by then.  
Leaders had also pledged to remain engaged and re view progress in the negotiations during their next 
meeting. 
3. He provided an update on his recent contacts with Ministers responsible for finance and 
development during the IMF-World Bank annual m eeting in Istanbul, and reported on the LDCs' 
Trade Ministers meeting in Dar-es-Salaam.  In Ista nbul, he had stressed that international trade would 
be key to the recovery and that the successful conclusion of the Doha Round could yield a double 
dividend:  on the one hand, it could play the role of  a global stimulus package;  on the other, it could 
effectively act as the structural re form package that was needed.  It  was the most effective way of 
further constraining protectionist pressures and contributing to growth.  He had also stressed the importance of monitoring trade finance and the need to recapitalize regional development banks, 
given their role in helping the poorest and weakest countries to weather the crisis, together with the 
World Bank and its different institutions.  The mess age coming from the LDCs Ministerial Meeting in 
Dar-es-Salam was one of urgency in concludi ng the Round and delivering on the development 
promises it contained, many of which were of sp ecific interest to the poorest countries.  He also 
pointed out that, at the recent conference organised by the Coalition of Services Industries in Washington, he had had the opportunity to meet with a number of Ministers, who had signalled 
serious engagement reflecting their Leaders' co mmitments at the G20 meeting.  He would be 
travelling to the African Trade Ministers meeti ng in Cairo the following week, which would be 
another important opportunity to discuss the importance to Africa of keeping trade open and 
concluding the Doha Round. 
4. Members were now one month into the work pr ogramme they had collectively devised to be 
able to reach a successful  conclusion by 2010.  It would be fair to say that one had seen some progress 
                                                     
 
1 The Director-General's statement was su bsequently circulated as JOB(09)/143.  WT/GC/M/122 
 Page 3 
 
 
  in areas such as trade facilitation, where Members ha d come well prepared and had worked hard on 
draft textual proposals.  One had also seen serious engagement by Members on templates and scheduling in Agriculture as well as NAMA.  A num ber of Members had also engaged in bilateral 
consultations.  However, it would be difficult to  conclude the Round in 2010 without a serious 
acceleration of the pace. There needed to be real negotiations – not just informal consultations and 
discussions, but real exchanges among Members.  Th is needed to be done in a manner that was 
inclusive and left no interest behind.  Members need ed to ensure greater transparency in bilateral 
discussions so that every Member felt it was part of an overall process.  A number of Senior Officials were in Geneva that week and this was an importa nt factor in joining up the dots of the negotiations 
and ensuring that capitals remained directly engage d in the process.  However, whether it was Senior 
Officials or Geneva negotiators, the key now was to walk the talk.  In addition to the Chairs' 
consultations and small-gr oup meetings taking place that week, he would also hold consultations on 
the key issues of Agriculture, NAMA and Services, toge ther with the respective Chairs and in variable 
geometry, with a view to providing Members with  avenues for engagement.  He would also be 
meeting with a number of Senior Officials and dele gations in town that week.  He intended to hold a 
Green Room meeting on Thursday afternoon and a full transparency session on Friday morning in the 
form of an informal TNC, in order to ensure tr ansparency and inclusiven ess.  When the week was 
over, he hoped Members would have a better sense of the work ahead in November, so that the 
following week of negotiations benefiting from the presence of Senior Officials in Geneva in 
November could register a qualitative change in the negotiating dynamics and progress on substance. 
5. On the monitoring of trade and trade-related me asures adopted by Members in the context of 
the current crisis, the Secretariat had been regular ly providing Members with updates on this matter, 
with the most recent one in July 2009 and a G20-sp ecific one in September 2009.  The Secretariat was 
currently in the process of preparing the next report to the TPRB with the Annual Overview of 
Developments in the Trading System called for in  the TPR mandate.  He would finalize this annual 
report in time for circulation ahead of the Minist erial Conference, for which it would be a useful 
background document.  He also wished to provide  Members with a brief upda te on his consultations 
on the issues of GI extension and the relationshi p between the TRIPS Agreement and the Convention 
on Biological Diversity, which he was holding unde r the mandate given to him at the Hong Kong 
Ministerial Conference.  As foreshadowed at the July Council meeting, he had held another round of 
consultations on 8 October with the same group of delegations, but with a slight adaptation to the 
methodology.  He had invited dele gations to submit suggested draft questions on the two topics, i.e. 
on both TRIPS/CBD and GI extension, which could help guide the discussions.  Questions had been 
received on both topics from all perspectives in the de bate, and these had been or dered in clusters of 
issues.  The 8 October meeting had addressed the firs t two clusters of each topic.  In particular on 
TRIPS/CBD, the discussion had centred on the legal character of misappropriation, and measures, other than the disclosure requirement, to address  misappropriation and benefit-sharing.  On GI 
extension, the discussion had centred on the di fferences between protection under Article 22 and 
Article 23, as well as on the effects of higher prot ection to additional products.  The discussion had 
been highly technical and detailed.  However, differences still rema ined on the substance.  Hence, the 
main observations in his report to the General C ouncil of 28 July remained valid, as did the longer 
description of the state of play that he had made during the open-ended briefing on 27 July.  He was 
working on the schedule for the next round of consul tations which he expected would move through 
the remaining clusters of the qu estions delegations had submitted. 
6. Finally, he wished to look briefly ahead to th e next 40 days or so before the opening session 
of the Seventh Ministerial Conference.  The Ge neral Council Chair would provide Members with a 
comprehensive overview of his recent consultations  on various aspects of the Conference, and he 
wished to thank him in advance for his untiri ng efforts towards ensuring that Members had a 
constructive, efficient and transparent meeting.  Th is Ministerial Conference would be a different sort 
of gathering of Ministers compared to the larg e-scale and week-long cinema-scope events that had 
taken place since 1998.  For a start, this Minister ial meeting, as Members had established a long time WT/GC/M/122 
Page 4  
 
  earlier, was on a separate track from the on-going Do ha Round negotiations.  In other words, it would 
not be a DDA negotiating meeting.  It was hoped that  Ministers would come to Geneva to address and 
interact on a few key themes regarding the WTO and the multilateral trading system – the "big 
picture", so to say.  It was time that Ministers were  given an opportunity to engage in a more wide-
ranging systemic debate and to provi de the WTO with guidance for the next few years.  However, and 
there still seemed to be some confusion on this point, this did not mean that Ministers' statements or 
indeed their discussions could not address the issue of the Round or specific negotiations.  On the 
contrary, it would seem odd if the elephant in the ro om remained nameless.  This was why discussion 
of the Doha Round was specifically foreseen in the themes for the working sessions.  In this specific 
context, the Seventh Ministerial Conference represente d an important platform for Ministers to send a 
strong signal of commitment to concluding the Doha Development Round.  With a bit more than 40 
days and the clock ticking, it was high time that all rolled up their sleeves and got down to business. 
7. All delegations who spoke  thanked the Director-General for his report. 
8. The representative of Colombia
 said his delegation shared the goal of completing the Round 
swiftly and hoped for a high level of ambition and good balance.  The second week of Senior Officials 
meetings was taking place, in line with the workin g plan agreed upon by th e membership.  However, 
Colombia believed that this process was not going sm oothly.  It was clear that the political signals that 
had been transmitted in recent months had not brou ght major progress in the negotiations.  There was 
a major breach between political statements and actual  facts in Geneva and, if delegations were not 
able to change the course of events, there was a risk of not being able to finish the Round in 2010.  He 
reiterated the suggestion his delega tion had made on an earlier occasion that it would be opportune to 
have a working plan for all of the Negotiating Gr oups.  However, in order for this plan to be 
operational, the involvement of decision-makers was needed in addition to the involvement of 
technical representatives.  It was therefore very im portant that the Senior Officials be present in 
Geneva to take the work forward with strong will and determination.  To date, unfortunately, there 
had not been any signs of a true desire for invol vement in the negotiations and a strong commitment 
to complete the Round swiftly.  Colombia was par ticularly concerned about the major players in the 
organization.   
9. Bilateral or plurilateral processes to bring th e negotiations forward were underway.  While 
these discussions were welcome, they had to comply with some basic, fundamental conditions.  First, 
participants in these meetings had to provide info rmation to the membership on their advances in a 
timely fashion and in full detail.  Second, those processes, especially the bilateral ones, upon which 
important decisions depended, needed to have a time frame. They could not be transformed into an end 
in themselves, but had to be an instrument to bring the negotiations forward.  Additionally, it was 
essential to keep the institutional space for negotiations open, even when bilateral processes involving 
some Members were underway.  The TNC had to meet every time there we re Senior Officials 
meetings and his delegation appreciated the Direct or General's announcement that there would be an 
informal TNC meeting at the end of the week.  There was no valid substitute  for full transparency, 
and all Members, irrespective of their size or geogra phic origin, had to take part in the process.  He 
reiterated Colombia's strong commitment to the Round and stressed that this was the time for 
decisions.  Delegations could not be complacent,  but had to grasp the opportunity to bring 
negotiations to an end.  He recalled that the Dir ector-General, in citing Molière two days earlier, had 
stressed that it was not only what one did, but also what one did not do, for which one was 
accountable.   
10. The representative of Hong Kong, China  said that since the last informal TNC meeting, some 
progress had been made in various Negotiating Gr oups, as noted by the Director-General.  In 
Agriculture and NAMA, his delegation welcomed the on-going technical discussions on a number of 
critical issues.  In Services, Members had had anot her round of quite useful discussions on all the key 
pillars of the negotiations.  Headway, albeit small an d slow, had also been made in the other equally  WT/GC/M/122 
 Page 5 
 
 
  important areas of Rules, Trade Facilitation, TR IPS, and Trade and Envir onment.  All these positive 
developments were to be welcomed, but as Colomb ia had just said, Hong Kong, China feared that 
Members had yet to make sufficient progress to ensure that their goal of concluding the Round by 2010 could be achieved.  As the Director-General had said, the road Members had mapped out had to 
be walked.  Political will translated into practice followed by hard bargaining were badly needed, for 
Members to move beyond process and towards an outcome.  However, these had yet to take place, 
and Hong Kong, China looked forward to seeing real e ngagement that week at the Senior Official 
level to find common ground, in order to bring Members a few steps closer to their final destination.  While bilaterals were clearly an integral part of  the process, his delegation would also welcome some 
transparency on how these were progressing.  The political signals sent out from Pittsburgh and New 
Delhi recently were loud and clear in their co mmitment to concluding the Doha Development Round 
by the end of 2010.  Much was now at stake, as th e Doha objectives had yet to be reached after eight 
years – not only the development needs of all Memb ers, but also the credibility of the negotiations 
and the WTO system as a whole. 
11. The representative of Norway
 said that the brevity of the Director-General's report concerning 
progress in the Doha Round was a reflection of reality.  His delegation fully agreed with Colombia 
about the process.  There had indeed been some frustration lately about the process, which Norway 
fully shared.  A complicated end-game depended on hard work and leadership, not the least by major 
players, who possessed the key to solutions in most areas.  This was a good thing, provided the results 
of such negotiations were acceptable to the full memb ership.  The frustration was not due to the fact 
that issues were being discussed in smaller groups  or on the fringes of the negotiations, as all knew 
that not all issues could be negotiated among 153 Me mbers.  This would simply take too long.  
Solutions had to be carved out by those concerned.  Members had chosen certain individuals to chair 
the Negotiating Groups, and expected them to lead, including bringing together those delegations 
needed to get results and solutions to remaining pr oblems.  One main challenge was to bring together 
the right Members in order to get results that c ould be the basis for consensus.  For Norway, the 
frustration was not about not being included in ev ery group.  Norway was not an exporter of bulk 
agricultural products – it did not need to be include d in the discussions on SSM.  However, it needed 
to be included in discussions on sensitive products and quota allocations, in orde r to safeguard a small 
number of agricultural products that  could be grown in a country like Norway.  As a major exporter of 
fish and fish products and with decades of experi ence in fisheries resources management, Norway 
needed to be included in discussions on fisheries subsidies. 
12. Norway agreed to and supported the SOM process described by the Director-General.  It also 
agreed that process was substance and that there w as a need to force Members together in order to 
make them talk.  Indications were that this was now  working – that the process was slowly re-starting.  
There were some sparks of progress in technical mee tings in Agriculture.  This was mainly due to the 
careful and wise way the Chair of the Agricultu re negotiations was managing the process.  Her 
delegation understood that bilatera ls were taking place on sectorals, but there were mixed signals as to 
the possibility of progress.  The NAMA Chair was pos ing provoking, and very good, questions in that 
area.  The Rules Chair was working hard to put stone upon stone in th at area.  The Services Chair was 
struggling to maintain what had been accomplis hed, and the LDC mechanism was progressing.  In 
addition, the main players were actually discussing – hopefully real substance – together at the very 
moment.  The process as such was helpful, and not the problem per se.  The problem was that 
Members were facing a serious transparency an d inclusiveness problem, and she recalled the 
difficulty Members had had in rectifying a similar situation 10 years earlier.  Thus, this situation 
needed to be addressed head on.  The comprehens ive work programme at SOM level for the autumn 
was obviously based on an expectation that movement was possible now – contrary to the past year of 
hibernation.  The repeated signals from world l eaders at the G20 meeting provided good reason to 
believe that this assessment was right.  Unfortunatel y, it had not been possible to move as fast as 
Members had foreseen.  This posed additional ch allenges to the process, and called for careful 
management and adjustments in accordance with de velopments or lack of such on substance. WT/GC/M/122 
Page 6  
 
  13. The main frustration was mainly due to the l ack of information on what was going on, the 
fear of being left out of processes where one's issu es were discussed and decided, and that there was 
supposed to be a Senior Officials process, but wit hout all knowing what the programme was.  This 
could and had to be fixed.  Members needed a tr ansparent process prior to the SOM weeks that would 
allow them to take stock of where they were and what was actually happening in the bilaterals that 
had been described as essential be fore Members could move on.  This process should be based on a 
status report describing what Members could he lpfully do during the week, and a program of 
meetings should be devel oped by the TNC and Negotiating Group Chairs before Members moved into 
this week.  This should be accompanied by updat es during the week and a summing up at the end, as 
well as indications of a plan for the next session.  Through such a process, Members would be able to 
know where they were.  One should ensure that Me mbers were included in processes where issues of 
interest to them were discussed, and that they were  able to engage in discussions on what they could 
do to help the process, instead of venting legitimat e frustration and fear for being left out.  Norway 
believed that the next meeting in November would be better.  However, the process needed to be 
managed carefully.  If Members were still not moving very fast by then, it would be better to know 
that beforehand and adjust the process accordingly,  along the lines of how the Director-General had 
dealt with a possible mini-Ministerial the past autumn. 
14. The representative of Chinese Taipei
 said that since the Direct or-General's announcement of 
the plans for the next two to three months, it had been obvious that all Members, including Chinese 
Taipei, had re-engaged in the technical negotiations in all areas.   These negotiations were proving 
useful.   As the Director-General had pointed out in his report, there had been some noticeable 
progress in certain areas, particularly in Trade Faci litation.  Moreover, the template discussions in the 
Agriculture negotiations were also very encourag ing, as were the similar NAMA template exercises 
held in July.  There was a feeling that both Agriculture and NAMA negotiations had advanced 
technically one more step in providing better clar ity.  Having said that, however, one should not lose 
sight of the fact that the key breakthrough in the DDA negotiations could be made only through 
Members' serious engagement in the discussions on the outstanding issues of the Agriculture and 
NAMA modalities, and the sooner that was demonstrated  the better.  His delegation also wished to 
stress once again how important it was for all negotia ting areas to move forward in parallel, and for 
the Services negotiations, in particular, to progress at  the same pace as Agriculture and NAMA.  Also, 
one should not forget that other areas, such as TRIPS and Rules, were also very much a part of the 
total package under the Single Undertaking.  With respect to the process, his delegation was aware 
that some bilateral meetings between Members had been undertaken.  Although it shared the view that 
bilateral discussions could be helpful on certain  occasions, one had to keep in mind that the 
multilateral approach was still the foundation of the DDA negotiations.  According to a recent WorId 
Bank study, while the global economy was starting to bottom-out, it might take several years for Members to undo the damage caused by the present fi nancial crisis.  The situation was brought into 
clear focus when one saw the financial sectors showing a profit but other sectors still struggling, not 
to mention the high unemployment prevailing in both developed and developing economies.  
Completing the Doha Round might not be the one and only solution to the crisis, but it was certainly 
one of the key elements that could help Members to ge t out of it.  As all were in the same boat in this 
sea of global economic turmoil, a rules-based WTO tr ading regime could at least help to smooth the 
waters and provide some security, which Members'  business sectors desperately needed if they were 
to recover and thrive again.  Under the leadersh ip of the General Council Chair and the Director-
General, his delegation trusted that all would continue to work closel y together to ensure a fair and 
balanced outcome of the DDA in 2010. 
15. The representative of Pakistan
 said the present General Council meeting was being held at a 
very appropriate time, as the SOMs were being held  with a view to providing further momentum to 
the Doha Round and to further close the gaps.  The Director-General's report was not only 
comprehensive, but it had spurred Members into furt her action.  The value of the SOMs was indeed 
great, keeping in mind the fact that these meetings provided an opportunity for blending the wisdom  WT/GC/M/122 
 Page 7 
 
 
  of capitals and the technical work being carried out  by delegations in Geneva.  These meetings also 
provided an opportunity for Members to join heads in finding ways and means to make further progress.  Members were entangled with problems at  three levels – the political, being largely beyond 
their immediate control;  the techno-political, in wh ich Members could at least clear the technical 
backlog while waiting for political clearance;  and las tly, purely technical matters that were Members' 
first priority in Geneva, so as to have the field ready as soon as the political will was there.  Pakistan 
welcomed every opportunity of interaction in any format.  However, it wished to reiterate that 
transparency was of the utmost importance in orde r to make the negotiations truly successful.  This 
applied especially to bilaterals, to confirm that th ese fed into the multilateral process.  His delegation 
joined Norway in saying that the absence of transparency bred  frustration, because there was 
insufficient information on what was going on.  It also went without saying that the Hong Kong 
sequencing also needed to be adhered to, esp ecially given that the WTO was a rule-based 
organization, and no rule be nding should be allowed when it came to decisions of its apex institution.  
He wished to be clear, however, that this was not  to suggest foreclosing the opportunity of mutual 
dialogue with a view to finding appropriate solutions  for bridging the gaps.  He said he had used the 
word "dialogue", while Members were used to us ing the word "engagement".  This was because 
Members had been talking about engagement for a very  long time, without talking about marriage.  It 
was satisfying to note that Members had made si gnificant progress since the summer, and especially 
during the last SOM.  However, it was still not clear if finalizing modalities in the envisaged timeframe was possible with any certainty.  If Member s had to carry out expedited work not only in 
Agriculture and NAMA and other areas requiring attention, they were certainly short of time to carry 
out the required intensive negotiations, extensive tec hnical work and political engagement.  That said, 
however, the pace of work had indeed picked up, which was by no means a small achievement.  He 
assured the Director-General of his delegation's unflin ching support for engaging in constructive work 
towards the earliest completion of the Doha Round. 
16. The representative of Burkina Faso
, on behalf of the C-4 , said that the group hoped for a rapid 
conclusion to the Doha Round.  Numerous initiatives had been taken by the four sponsors of the 
Sectoral Initiative in Favour of Cotton since the Mini sterial meeting in July 2008 to ensure that their 
voice was heard in different international fora and in a number of bilateral meetings – for example, 
the meeting with the new US authorities in Washington from 20 to 23 July 2009, as well as participation in the eighth AGOA Forum held in early August 2009 in Nairobi, where the C-4 Coordinating Minister had had the opportunity to  meet the US Trade Representative to establish 
contact and discuss future prospects.  The C-4 had al so attended the informal meeting of Ministers in 
New Delhi to argue the cotton issue.  Finally, the C-4 Ministers had met in Ouagadougou on 8 October for consultations, following which they had made a declaration calling for the elimination 
of the subsidies that were distorting trade in cotton.
2  As recently as 14 and 16 October 2009, the 
meeting of least-developed countries he ld in Dar Es Salaam had also ta ken account of the concerns of 
the cotton-producing LDCs in its final declaration. 
17. He stressed that these initiatives, that had b een taken by countries classified among the 
poorest in the world, would hardly be justified if the stakes had not been so high.  As the group had 
mentioned before, the cotton industry was dete riorating by the day, and the socio-economic 
difficulties facing the cotton-producing populations were also growing more acute, aggravating the 
poverty and destitution.  This critical situation coul d hardly be attributed to internal structural 
malfunctions.  Each of the countries,  independently or sometimes at th e behest of certain development 
partners, had drastically reformed their cotton indust ry, at great sacrifice, to make it more competitive, 
while some of those partners had failed to reci procate with any significant action to reduce or 
eliminate the massive subsidies they granted to th eir cotton growers, subsidies that destroyed any 
efforts made by the group. 
                                                      
2 Subsequently circulated as TN/AG/SCC/GEN/10 - WT/CFMC/26. WT/GC/M/122 
Page 8  
 
  18. He further pointed out that the decision ta ken collectively by Ministers at the Sixth 
Ministerial Conference in Hong Kong, which called for ambitious, expeditious and specific treatment 
for Cotton, could have been a turning point in deali ng with the issue.  However, four years had gone 
by and he questioned what had really been done that  could be called ambitious , expeditious or specific 
with respect to cotton.  The C-4 wi shed therefore to launch an urgent appeal to Members for a rapid, 
effective and full resumption of the negotiations, incl uding the negotiations on cotton, on the basis of 
the proposals contained in the C-4 submission
3 as well as the additional disciplines appearing in the 
Draft Modalities for Agriculture4.  He invited the Director-General  to circulate, as soon as possible, 
his fourth report on the crisis, and as he had done in  the past, to stress the ne ed for all to speed up the 
negotiating process with a view to completing the Doha Round as soon as possible in order to provide 
some relief from the adverse effect s of the crisis on their economies.  Indeed, if nothing was done in 
the short term, the cotton sector in Africa could well disappear.  In the meantime, he also encouraged 
the Director-General, for the sake of the necessar y coherence between the trade and development 
aspects of the cotton issue, to continue to hold m eetings of the Consultative Framework Mechanism, 
and asked the community of development partners to come to the rescue of the cotton sector in Africa 
by contributing to the safety net.   The C-4 Coordina ting Minister would have an  opportunity to revert 
to this matter on 23 October, at the twelfth meeti ng of the Framework Mechanism.  He pointed out 
that the C-4's preference was to settle the trade aspect, which would provide a more lasting solution 
than the development aspect. 
19. Less than six weeks from the Seventh Ministerial Conference, there was no visible sign of 
any significant progress in the negotiations.  He note d that consultations had resumed in restricted 
circles, but first and foremost there should be more  inclusiveness and transpar ency in the mechanism, 
and priority should be given to a multilateral approach.  In this respect, the C-4 welcomed the 
resumption of the quadrilateral meetings by the Ch air of the Agriculture Special Session.  A first 
quadrilateral meeting held on 28 September had provided the opportunity to make another appeal to 
partners from the European Union and, in particular , the United States to submit concrete and formal 
counterproposals so that levels of  reduction or elimination of domes tic support measures that distorted 
trade in cotton could be negotiate d.  A solution for cotton, based on a systemic approach with 
ambitious results accompanied by clear and precise figures, was needed.  The C-4 reaffirmed their 
flexibility, but also their determination to work  towards narrowing the gap between the different 
positions with a view to finding a satisf actory solution to the Cotton issue.   
20. The representative of Korea  said his delegation hoped that r eal and meaningful progress could 
be made so that Members could conclude the Round by 2010, but like Norway and others, it also felt 
some frustration due to the lack of progress and w ith the way the process had been managed.  Korea 
appreciated the Director-General's efforts to fac ilitate and consolidate the negotiating process but saw 
some difficulties in terms of transparency and inclusiveness.  Korea was aware that a number of 
meetings were taking place in Geneva, but Memb ers should be careful, as the WTO was not a body 
owned by a limited number of Memb ers and all had a stake in the organization.  Members who had a 
direct interest in the issues being discussed should be included in this process.  Korea itself had a big 
stake in agriculture, particularly regarding the outst anding issues.  It also had a strong interest in 
fisheries subsidies and Services.  His delegation was prepared to engage in the process that week in a 
very constructive manner, but could not go along with or accept decisions that had been made in its 
absence, particularly on issues where it had a critical  interest.  Korea hoped that its frustration with 
respect to the process would be properly taken into account in the process ahead. 
21. The representative of Uruguay  supported the statements by Colombia, Norway, Pakistan, 
Korea and Hong Kong, China.  He stressed that his country had always sought to play a constructive 
role in the organization, and to see the glass as half full rather than half empty.  However, currently, 
                                                      
3 TN/AG/SCC/GEN/6. 
4 TN/AG/W/4/Rev.4.  WT/GC/M/122 
 Page 9 
 
 
  the situation of the Doha Round did not allow one to  see the glass as half full.  The gaps between 
political statements and the pace at which the pro cess was moving could not be greater.  There was a 
growing concern among Members with respect to the process, and this in the run-up to a Ministerial 
Conference which did not have as its main objec tive discussing or taking decisions on the Doha 
Round.  It was clear that the moment was not good.  However, there nothing was irreversible.  First, a 
look at the reality was needed, and second, as Colo mbia, Norway and others had said, one should 
immediately seek ways to improve the process.  Hi s delegation supported the point that SOMs should 
not just be small-scale or reduced-size group meetin gs, particularly when those groups were working 
on an agenda which all Members had agreed on in the TNC.  Uruguay therefore supported Colombia's 
proposal that there should be a meeting of the TNC at least every time there was a meeting of Senior 
Officials, and Norway's views on the need for bette r timetabling of official activities of SOMs in the 
future, particularly in November and December. 
22. On the substance of the issues in question, he recalled that reference had been made in the 
TNC on several occasions to the importance of the bilaterals.  Uruguay recognized the importance of these meetings and the need for them, and also that bilaterals had been a subject of Ministerial-level 
debate and Head of State and government-level deba te.  At the same time, Uruguay was interested in 
knowing how these bilaterals were going, what the out comes were, at what rate they were moving 
forward, whether the gaps were larger or smaller and whether the road to walk was easier or more 
complicated.  His delegation wished to know where these bilateral meetings were leading, without 
running contrary to the degree of confidentiality needed in such meetings.  He called on those 
involved in these bilateral meetings to ensure that th e membership was kept up to date on the general 
direction in which they were going, and noted that an opportunity to do so would be provided at the 
TNC meeting announced by the Director-General.  Th at reality did not have to be hidden, and the 
work of all could contribute to progress.  
23. The representative of Turkey
 said his delegation had not antic ipated the powerful statements 
by Colombia and Norway drawing attention to th e process and the lack of transparency.  These 
statements totally reflected Turkey's views on the state of play of the Doha negotiations.  Turkey 
supported the statements by Chinese Taipei, Pakist an, Korea, Uruguay and Hong Kong China, which 
carried the same message of frustration in terms of  process and the lack of transparency and which 
could not be overlooked.  In the interests of time, he would not repeat what had already been said.  
However, there was an urgent need to review th e method of the negotiating process.  Inclusiveness 
was not merely a hypothetical issue, but an attit ude which needed to be implemented at all times. 
24. The representative of Bangladesh  said his delegation fully endor sed the Director-General's 
views.  It thanked the Director-General for having attended the recent LDCs Trade Ministers Conference in Dar-Es-Salaam.  For the sake of brevity , he wished to quote two paragraphs of the LDC 
Ministers' Declaration, which called upon Members to agree on the following: " Operationalize the core principle of Special and Differential Treatme nt (S&DT) and the development dimension of the 
Doha Round of negotiations by gr anting all LDCs more preferentia l treatment than non-LDCs.  
Address the issues of concern to LDCs on a priority basis and to have an 'early harvest' on (i) the 
implementation of the Decision 36 of the Annex F of the Hong Kong WTO Ministerial Declaration;  
(ii) a waiver decision on preferential and more favourable treatment to services and services suppliers of LDCs;  and (iii) an ambitious, expeditious and sp ecific outcome for cotton trade-related aspects, in 
particular the elimination of trade-distorting dom estic support measures and export subsidies, and the 
granting of duty-free and quota-free (DFQF) mark et access for cotton and cotton by-products 
originating from LDCs." 
25. The representative of Egypt
, on behalf of the African Group , expressed the Group's full 
support for the Director-General's efforts to advance the negotiations .  The African Group shared all 
the concerns expressed earlier, especially by Norway, on the negotiating process and the ongoing 
bilateral consultations, and the need for more tr ansparency and inclusiv eness.  The African Group WT/GC/M/122 
Page 10  
 
  noted with cautious optimism the melting of the ice in the negotiations since December 2008.  
Although it welcomed recent efforts at structuring an appropriate negotiating process to re-energize 
the negotiations with a view to concluding in 201 0, the Group was concerned with the emerging new 
structure, in which it did not seem to be fully included, and which seemed not to be in Africa's 
interest.  It was deeply concerned about the poten tial re-sequencing of the Hong Kong decisions, and 
the reopening of the negotiating texts in Agricultu re and NAMA for an evaluation of the modalities to 
determine the ambition level.  Th e Group reiterated that the negotiations should proceed on the basis 
of the approved Doha mandate, the July Framewor k, the Hong Kong Ministerial Declaration and the 
December revised draft modalities in  Agriculture and NAMA, and wished to caution in this regard 
against attempts to reinterpret or  change the existing mandates, or a selective reopening of stabilized 
parts of the modalities, as well as any attempt to de viate from agreed principles in the negotiations.  
Moreover, the Group wished to caution against atte mpts to legitimize the bilateral consultations 
taking place alongside the multilateral track, and to underline that bilateral consultations, however 
useful they might be, could not be a substitute fo r a genuine multilateral process, in view of their 
restrictive nature and their potential to tilt the delicat e balance achieved in the negotiations thus far.  
The Group recognized that bilateral consultations might be, at best, a means to provide greater 
transparency, but these could not be used as an inst rument to assess the level of ambition or negotiate 
greater market access. 
26. In this context, the African Group wished to re-emphasize once again the principles of 
multilateralism, full transparency and the bottom-up approach that should guide Members' approach 
to the negotiations.  Recalling the principle of  the Single Undertaking which underpinned the 
conclusion of the DDA, the Group wished to affirm that only a true and genuine horizontal process to 
determine the overall balance could deliver a mutually acceptable outcome.  It therefore called on Members to guard against any trends to selectively re-sequence issues or to selectively choose certain 
issues for consideration at the horizontal level.  The African Group furthermore requested that the 
agenda of the Senior Officials meeting that had been programmed be fully discussed and consensually 
agreed, and that issues pertaining to the African Group not be sidelined, as the Group had key 
interests in several areas of the negotiations.  Moreover, the Group wished to highlight that no 
significant progress had been achieved in certain key i ssues of vital interest to Africa, and it therefore 
called on all relevant parties to give priority to  resolving these issues.  In this regard, the Group 
supported the statements by Burkina Faso on behalf of the C-4 and by Bangladesh on behalf of the 
LDCs and reiterated its support fo r their demands.  The Group wished to stress once again that for 
Africa, development outcomes in each of the nego tiating areas remained the raison d’être of the 
Round, and Africa would join the consensus only if the Round delivered concrete development 
outcomes. 
27. The representative of th e European Communities
5 said his delegation wished to thank the 
Director-General for his efforts in mobilising trad e finance, for the information he had provided on 
the ongoing TPRB report monitoring protectionism, whic h was a very valuable exercise, and for his 
efforts in facilitating negotiations on the question of  GI extension and TRIPS/CBD to which he had 
referred earlier.  On the Doha Round, the EC shared  the Director-General's analysis of the current 
state of play.  It agreed that here and there since September, some technical progress had been made, and it welcomed that, but it also shared the concer n that if Members were going to conclude the 
Round by the end of 2010, one had not seen a signi ficant acceleration of the work.  The Community 
shared the concern and frustration of a number of  delegations who had spoken that the political 
instruction to intensify and accelerate did not yet seem to have been translated into work on the 
                                                     
 
5 On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on Europe an Union and the Treaty 
establishing the European Community (done at Lisb on, 13 December 2007) en tered into force.  On 
29 November 2009, the WTO received a Verbal Note (WT/L/779) from the Council of the Eu ropean Union and 
the Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 
1 December 2009, the European Union replaces and succeeds the European Community.  WT/GC/M/122 
 Page 11 
 
 
  ground in Geneva.  This situation had to change very soon.  The TNC Chair's report referred to the 
importance of different configurations – of work at  the multilateral, bilatera l and plurilateral levels, 
and a number of delegations at the present meeting had expressed some concern about certain bilateral 
and plurilateral processes taking place, including during that week's gathering of Senior Officials.  
The Community shared the view that any such bila teral processes could not be a substitute for an 
inclusive, transparent, multilateral process, a nd in any case had to be time-bound.  Regarding 
plurilateral meetings, for the sake of transparency he  wished to note that the EC Senior Official had 
organized, the previous day and the present day, informal contacts among a number of Senior Officials, not to negotiate but simply as a good-faith effort to try to identify better where the major gaps were in some of the bigger dossiers – how large those gaps were and what sort of solutions could 
potentially be found to those problems in the negotiati ons with the involvement of the Chairs of the 
Negotiating Groups.  These meetings of Senior Offi cials had brought together the Communities, the 
United States, India, China, Brazil, Malaysia, South Africa, Egypt, Japan, Canada, Australia, 
Indonesia and some of the Chairs.  He trusted that delegations would recognize that these conversations could be useful.  It was easier to have a frank discussion on the Round among ten or 
fifteen people than among 153, but the Community sh ared the view that these discussions in smaller 
groups could not be, and were not  intended to be, a substitute fo r the inclusive and multilateral 
process in which all believed. 
28. The representative of Costa Rica
 said that officials in his capital had sought information about 
the SOMs which were taking place the current week with the aim of preparing the participation of 
Costa Rica.  It appeared that the meetings in Delhi had provided an extra push to the negotiations, 
including to the work of the Senior Officials.  This had been regarded as a call to all Members and 
Senior Officials to express around the negotiatin g table the political will Ministers had been 
expressing publicly.  However, having seen how the pr evious week of SOMs had worked, he had had 
to explain to his capital that the Geneva process see med to be becoming a closed club, to which Costa 
Rica had not been invited, and that therefore, Co sta Rica should not send any Senior Official to 
Geneva.  The fact that delegations such as Cost a Rica – which had always been supportive of the 
Round and continued to show that support, and wished to send their representatives – felt unwelcome 
was symptomatic, particularly because meetings we re also being held on fundamental issues of 
importance to Costa Rica.   
29. Costa Rica had always believed in the importa nce of consultations of different kinds and 
different groupings and, above all, among Members w ith divergent views, so as to give them the 
opportunity to resolve their differences to the benef it of all.  However, the current process was so 
opaque and confused that his delegation had difficu lty following it.  He recalled that an important 
principle which had been followed for many years, including in the GATT, was to include a Member 
that had clearly identified difficulties on any particular  issue in the negotiations on that issue.  This 
required inter-group consultations with varying groupings, depending on the issue under discussion.  
This was a basic principle of fairness and had al ways been the only way to find solutions to the 
different needs and specific concerns of each Member .  It was also the only way of properly forging 
the beginning of consensus.  For that reason, Cost a Rica believed that there were problems with the 
current process, as Members with direct interests in issues were not being included in the discussions.  
In short, there was an absence of transparency.  He stressed that th e role of the institution was not to 
leave any doubt as to the need to apply these principles.  If some Members were not inclusive, it was 
up to the institution to provide that inclusion.  Co sta Rica believed that the TNC, the Secretariat and 
the Chairs of the Negotiating Groups were the guarantors of a negotiation process in which all 
Members should have their interests taken into acc ount.  It was up to them to redouble efforts to 
guarantee that.  On the substance, he recalled th at Costa Rica had expressed its political willingness 
and its availability to continue to work with others in order to move forward in the negotiations.  Even 
the smallest Members should be flexible in the ne gotiations to enable all to move forward towards 
convergence and an ultimately successf ul conclusion of the Round.  WT/GC/M/122 
Page 12  
 
  30. The representative of Switzerland
 added his country's voice to those which had expressed 
frustration about the current process.  He stressed that Ministers in New Delhi had not invited 14 
Senior Officials, but all Senior Officials, and this  had to be kept in mind when organizing the work.  
His preliminary conclusion was that a TNC meetin g should be scheduled for the first day of the 
Senior Officials week so that the entire membership  could be informed of what was going to happen.  
As a Negotiating Group Chairman, he had undert aken to hold meetings open to a variety of 
participants during the next Senior Officials week , thus providing an opportunity for all positions to 
be expressed.  He believed that the jewel of th e organization was multilateralism, which made the 
weak strong and the strong civilized, and that this jewel had to be preserved.   
31. 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 
32. The Chairman  recalled that at its meeting in Febr uary and March 2002, the General Council 
took note of a framework and procedures for the conduct of the Work Programme on Small Economies.  In line with the framework and pro cedures, the Work Programme was a standing item on 
the General Council's agenda and the Committee on Tr ade and Development reported regularly to the 
General Council on the progress of work in its Dedicat ed Sessions on this subject.  Ministers at Hong 
Kong instructed the CTD, under the overall responsib ility of the General Council, to continue the 
work in the Dedicated Session and to monitor progress of the small economies' proposals in the negotiating and other bodies.  In December 2006, on the basis of a report by the Chair of the CTD in Dedicated Session, the General Council took note that  Members in that body would continue pursuing 
the substantive work under the Small Economies Work Programme.  He invited Mr. Servansing 
(Mauritius), Chairman of the Dedicated Session of th e CTD, to report on the progress of work in this 
area. 
33. Mr Servansing (Mauritius), Chairman of the Dedicated Session of the CTD
, reported that the 
Committee on Trade and Development had held its 20th Dedicated Session on 12 October 2009.  The 
Dedicated Session had agreed to further update document WT/COMTD/SE/W/22 and had circulated a 
fourth revision to it.  This document now compiled all the proposals made by the SVEs in the various 
negotiating groups and other WTO bodies.  It refl ected the current state of the different draft 
modalities and negotiating texts, and any decisions ta ken thus far on SVE issues.  At the meeting, 
Members had also adopted the Second Report to  the General Council of the CTD in Dedicated 
Session.  He recalled that Ministers at Hong Kong  had instructed the CTD's Dedicated Session to 
continue its work and to report on progress and actions taken to the ne xt Ministerial Conference.  The 
Dedicated Session's report would be circulated in document WT/COMTD/SE/6 and would be forwarded to the General Council for transmission to Ministers meeting in Geneva at the end 
November.  The report was a factual summary of all the submissions and proposals made by the proponents of SVEs since the Sixth Ministerial Conference.  It also had a section on future work 
which stated that the Dedicated Session shall consid er in further detail the proposals contained in the 
various submissions that have b een received to date, examine any additional proposals that Members 
might wish to submit and, where possible, make  recommendations to the General Council on any of 
these proposals. 
34. The representative of Barbados
, on behalf of the SVEs , thanked the Chair of the CTD 
Dedicated Session for his report.  The SVEs commende d the Secretariat for having issued the fourth 
revision of the Small Economies Work Programme co mpilation document, which was used to monitor 
the Work Programme and the implementation of th e Doha and Hong Kong Ministerial Decisions on 
small economies.  It was clear that this Work Programme could not progress unless the Doha Round as a whole moved forward.  The SVEs could therefore only encourage those Members engaged in  WT/GC/M/122 
 Page 13 
 
 
  bilaterals and other efforts to make the necessary co mpromises in the interest of bringing the DDA to 
a conclusion in 2010. 
35. The General Council took note  of the report of 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 
36. The Chairman  recalled that this matter had first been  raised by the delegations of Honduras 
and Guatemala at the Council meeting in December 2004 and that it had subsequently been considered by the General Council at each of its re gular meetings since then, without resolution.  In 
the light of the views expressed at these meetings, and the requests 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 substantial 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 Negotiations under Article XXVIII, 
under which, when a Member renegotiating its Sche dule did not recognize a claim of principal or 
substantial supplying interest, the Member making the claim "may refer the matter to the Council." 
37. At the July General Council meeting, he had re ported to delegations on his most recent 
consultations.  In view of the statements made at  that meeting, he had proposed that the General 
Council revert to this matter at the present meet ing.  The previous day he had held further 
consultations on possible ways to find a solution to  the non-recognition issue.  He had invited to the 
consultations all delegations  who had spoken on this issue at previous meetings of the Council, and 
had made clear that the consultations were without  prejudice to any Member's rights under the WTO.  
While there had been little substantive development overall since the July Council, the consultations 
had proved useful in clarifying both the current stat e-of-play and its ramifications, as well as the steps 
that were intended to be taken in the coming w eeks towards a resolution to the concerns of the 
delegations involved. 
38. The representative of Honduras
 recalled that at previous meetings, he had presented 
Honduras' legal and commercial arguments with regard  to the recognition of its rights as a substantial 
supplier.  The EC had stated that this matter w as included in the renunciation which was part of the 
so-called broad banana agreement.  However, th e broad banana agreement was not enough to re-
establish the rights of Honduras, for the following reasons:  (i) it would take 11 years for the tariff on 
bananas to be reduced to 114 €/mt and the EC clai med that this would solve the issues arising from 
the Bananas III  dispute settlement case as well as all claims related to GATT Articles XXIV and 
XXVIII due to the EC enlargement, and all the right s emanating from Doha;  (ii) the EC considered 
that making reductions up until 2020 or beyond, an d providing the same level of customs duties that 
had been bound for more than 30 years from 1963 to 1994 , would satisfy all the concerns of the Latin 
American countries;  (iii) the EC was not even r eady to guarantee that the reductions, including the 
final customs level of 114 €/mt, would be consolidat ed;  (iv) the EC did not accept to comply in the 
future with its obligations with respect to bananas, despite the nine defeats in Bananas III ;  (v) while 
the EC continued not to recognize the rights of the parties, the latter had to renounce their rights from 
Bananas III , to all claims made in respect of GATT Articles XXIV and XXVIII, to the Doha rights 
pertaining to bananas and to all the Doha-related right s with respect to the list of tropical products.   WT/GC/M/122 
Page 14  
 
  39. He stressed that this was an unbalanced proposal  which posed risks, as it contained provisions 
which could perpetuate EC's non-compliance.  H onduras was still looking for a solution that would 
make it possible to resolve the EC's non-compliance and that would permanently reinstate the commercial rights to which his country was entitle d.  Until an agreement was reached, Honduras 
would continue to maintain the following position:  (i) to reiterate  its demand for recognition of its 
rights as a substantial supplier before the General Counc il;  (ii) to maintain the reservation of its rights 
and interests in Bananas III  in all respects;  (iii) to not accept, in total or in part, the certification of the 
EC's Schedule CXL, or any other lis t that did not re-establish the right s of Honduras.  This issue had a 
systemic aspect that went well beyond the enlarg ements of the EC.  Any solution on bananas could 
not contain a renunciation which would have the e ffect of perpetuating illegal behaviour.  There 
should be a mutually-agreed solution that could make it possible to re-establish the parties' rights and 
bring legal certainty.  
40. The representative of Guatemala
 recalled that his delegation had two types of interest in this 
matter and stressed that the solution depended on the political will of the EC.  The EC also had the obligation of rebuilding a relationship of trust with Latin American countries, as this trust had been 
undermined by the various events following the co nclusion of the negotiations on an agreement on 
bananas in July 2008.  An agreement on bananas woul d bring an end to all the various disputes on the 
matter, including the claims within the framewo rk of GATT Articles XXIV and XXVIII, and the 
possibility to provide a final solution to this matter was in the hands of the EC.  His delegation had a 
mandate to protect Guatemala's commercial and sy stemic interests.  Th erefore, until there was 
compliance by the EC, Guatemala would continue to raise this issue in the General Council and any 
other appropriate body.  
41. The representative of Ecuador
 said his delegation was pleased that under Agenda Item 1 
many delegations had referred to transparency, which had always been an important issue for 
Ecuador.  He reiterated that the banana issue was of  a systemic nature, and one of importance for the 
recognition of the rights of small exporters, in the framework of GATT Articles XXIV:6 and XXVIII.  
He recalled that this matter had always given rise to extended discussion, and that the EC wished to 
resolve the various issues pertaining to bana nas, including the present claim by Honduras and 
Guatemala, in one package.   
42. The representative of Argentina  recalled that his delegation had always supported Honduras' 
and Guatemala's position.  He reitera ted Argentina's interest in this  matter and agreed with Ecuador 
that this issue was of a systemic nature.  He wi shed to underscore two points made by Honduras – the 
legal certainty and the re-establishment of rights – which had to be considered when looking at the 
systemic nature of this issue.  These went we ll beyond the matter under consideration, and it was 
therefore important to look at this in a broader contex t.  It was a pity that such matters had not been 
examined in a more propitious form and with a vi ew to finding pragmatic solutions to these specific 
problems.  The erroneous interpretation of these c oncepts had led to the establishment of dispute 
settlement panels which had also failed on this  question, although [there was juridical 
interpretation??].  The Ministerial Conference woul d be a good opportunity to discuss these types of 
systemic issues, and he hoped other Members thought likewise.  His delegation hoped that this matter 
could be dealt with in a broader context in the future. 
43. The representative of Costa Rica  supported the efforts of Honduras and Guatemala to have 
their rights recognized and, like Ecuador and Argentin a, believed that this was a systemic matter of 
great importance which deserved Members' attention.   He pointed out that very few countries were 
able to achieve ten per cent market share in larg e countries, and that this was a privilege that only 
large exporters enjoyed.  Most Members did not achieve a ten per cent market share in any major 
market in the world.  If this meant that when th ere was a modification of the list of commitments in 
the WTO, the majority of Members did not have th e right to compensation, then something was not 
working.  This discussion had been going on for a long  time and it was important to continue it for the  WT/GC/M/122 
 Page 15 
 
 
  sake of all exporting countries that were suffering prej udice because of the interpretation by some that 
only countries with ten per cent or more market shar e had to be compensated.  This went far beyond 
the banana issue and was of enormous important to  small exporters.  Therefore, a systemic discussion 
on this matter should be held.   
44. The representative of Cameroon thanked the Chair for his efforts to narrow the gap on this 
long-standing issue and recalled his delegation's position.  Apart fro m the legal aspects, the banana 
issue had taken on a particular form, and he belie ved the only way to achieve a lasting solution was 
through negotiation and an inclusive process that w ould guarantee the interests of all parties.  His 
delegation would continue to cooperate to that en d and hoped that a definitive solution would be 
rapidly found. 
45. The representative of the European Communities  recalled that the claims by Honduras and 
Guatemala had been rejected on the grounds of st rictly applying the letter of the relevant GATT 
provisions.  However, he agreed with Guatemala and Costa Rica that there was a bigger systemic 
question, which was whether there w as a need to revisit the provisions of Article XXVIII to shift the 
balance more to smaller suppliers.  This was an open question.  His delegation had indicated in the 
past that it would be ready to e ngage with other Members to look at whether these rules were fit for 
purpose.  With respect to the reference made by so me delegations to the ongoi ng negotiations to reach 
a more comprehensive agreement on trade in bana nas – which would address the specific concerns 
raised by Honduras and Guatemala but would also recognize claims by Costa Rica, Colombia and others and the past disputes in this sector – the EC believed that it was close to reaching such a 
comprehensive agreement with all the interested  MFN banana-exporting countries.  Another meeting 
with interested Members was planned for that day,  and his delegation was reasonably confident that 
these discussions could be drawn to a successful end in the following weeks.  In his delegation's 
assessment, discussions were close to reaching a definitive and comprehensive settlement on bananas 
that would result, among other things, in a bound tariff for bananas in the EC's schedule.  His 
delegation, like others who had spoken on this matter, rema ined committed to reaching a successful 
outcome on this issue. 
46. The General Council took note
 of the statements and agreed to revert to this matter at its next 
meeting. 
4. The financial and economic crisis and the role of the WTO – Communication from 
Argentina and Ecuador (WT/GC/W/609) 
47. The Chairman  said the communication in document WT/GC/W/609 from Argentina and 
Ecuador had been received on 6 Oct ober with the request that this item be placed on the Agenda of 
the present meeting. 
48. The representative of Argentina  recalled that in May, his delegation had submitted a proposal6 
with the intention of contributing to an improveme nt in the capacity of the WTO to respond to the 
economic crisis and in relation to the process initiate d with the submission of the Director-General's 
reports in the framework of the TPRB.  The subm ission proposed that the WTO Secretariat should 
undertake a systematic and comprehensive analysis of  the effects on trade of stimulus packages being 
launched as a response to the crisis, and that this be in cluded in future reports by the Director-General.   
49. The proposal Argentina, together with Ec uador, was presenting at the present meeting 
intended to continue this idea and to enable th e involvement of all Members in determining the 
elements that should be considered in designing th e methodology for such an analysis.  Specifically, 
the submission proposed that the Council Chairman , together with the Di rector-General, should 
                                                      
6 WT/GC/W/602. WT/GC/M/122 
Page 16  
 
  initiate a process of consultations with all Member s and, where appropriate , with other relevant 
international organizations to defi ne the methodology to be used by the Secretariat to undertake this 
analysis.  Since May, certain economic indicators had shown an upturn, and there were indications 
pointing towards the end of the crisis.  In this situation, some were wondering whether it was worth 
beginning an exercise of this type which, when launched, might find that some measures taken in 
response to the crisis were being phased out.  Ho wever, this reasoning wa s erroneous for various 
reasons.  First, there was no certainty that these measures would automatically be phased out at the 
end of the crisis.  There were cases where measures had been taken for specific reasons and had then 
become difficult to remove, in particular when the sectors benefiting from them were able to influence 
decision-making.  Second, even if measures were goi ng to be dismantled, their effects could continue 
to affect trade flows.  Given the scale of these st imulus and bailout packag es, only a comprehensive 
and systematic analysis would enable an understanding  of how trade would be affected by them.  An 
even more important reason related to the future.  In fact, the strengthening of transparency and 
technical work aimed at improving understanding of  the trade effects of assistance packages would 
enable the WTO to be better prepared as an ins titution to undertake analysis of future crises.   
50. He stressed that this initiative did not seek to  determine compatibility of these measures with 
current rules.  Rather, it sought to develop instrume nts to enable all to have a better understanding of 
these measures and their impact on trade.  The initia tive did not suggest that these measures could not 
have had an overall beneficial effect.  For this r eason, the Secretariat's analysis should differentiate 
between measures with a horizontal effect and those which could generate significant sectoral 
distortions.  In this regard, he recalled that th e "Report on G20 Trade and Investment Measures" by 
the OECD, WTO and UNCTAD recognized that within  the assistance packages, there were certain 
elements such as state aid, subsidies and measures to promote consumption or local investment which 
could have the effect of favouring local producti on at the expense of imports, and could also 
negatively affect third countries with regard to the di rection of investment flow s.  He reiterated that 
the proposal sought to orient the work of all Me mbers towards collective action which would, first 
and foremost, improve transparency and also fine-tune  the role of the WTO in international trade.   
51. The representative of Ecuador
 recalled that his delegation had decided to co-sponsor the 
proposal.  This document reflected the membership's  concern about the need to preserve and promote 
the principle of transparency wh ich governed the organization.  Therefore, it contained a proposal 
which was a new initiative from certain developing Me mbers to achieve genuine strengthening of the 
multilateral trading system.  The proposal was based  on inclusive and participative governance, since 
it sought, through the promotion of a constructive de bate among Members, to determine the most 
effective methodology to monitor fiscal stimulus p ackages and financial assistance adopted by certain 
Members in response to the economic and financial crisis .  In the Director-General's last report to the 
TPRB on the economic and financial crisis, he ha d acknowledged that fiscal stimulus packages and 
financial assistance could have the capacity to distort markets and competition and to negatively 
affect developing countries.  This finding corroborated the opinions voiced in other fora , such as the 
UN Commission on the Reform of the International Financial and Monetary System or the Stigliz 
Commission, which recognized that advanced indus trialized countries needed to ensure that their 
fiscal stimulus packages and financial assistance did not distort the economic system or contribute to increased global imbalances, such as had taken plac e through the massive subsidies to their financial 
institutions, which represented a new form of fi nancial protectionism.  As indicated by this 
Commission, the significant financial subsidies a dopted by developed countries could affect the 
efficiency of a free and fair trading system in the same way as protectionist tariffs.  They were even 
more disproportionate, given that only certain de veloped countries had the capacity to grant and 
maintain this type of subsidy, while the majority  of developing countries did not have the possibility 
to implement countercyclical economic programs of  this magnitude.  In addition, as indicated by 
Argentina and as had been concluded in the "Repor t on G20 Trade and Investment Measures", fiscal 
stimulus programmes and financial assistance could c ontain protectionist elements which could give 
rise to beneficial treatment for goods and services  from domestic producers and thereby prejudice  WT/GC/M/122 
 Page 17 
 
 
  imports.  Continuing to apply such subsidies could gi ve rise to further distortions in the market and 
global investment, with negative con sequences for developing countries. 
52. He recalled that the quid pro quo  of the package of rights and obligations that all Members 
had to assume in joining the WTO implied that such stimulus programs should be notified to 
Members so that they could be properly reviewed.  Ecuador, in all transparency, had notified the trade 
measures it had found itself obliged to adopt as a re sult of the effects on its balance of payments 
produced by the current global economic and financia l crisis, a crisis which had not been caused by 
developing countries, but which was the result of speculation.  These measures had been monitored 
and Ecuador had entered into vari ous commitments which it continue d to stand by.  It would be 
illogical to apply double standards.  Those Members whose measures raised the most questions were 
the ones that failed to allow their financial packages , which were huge, to be monitored by the WTO.  
The proposal would enable all to contribute to a better operation of the multilateral trading system and 
would allow for effective cooperation among Members to establish the best means of assessing and 
preventing negative impacts on international trade, wh ich affected in particular the most vulnerable 
Members.  This would be a much needed response to the lack of accountability within the multilateral 
trading system.  Ecuador stood ready to engage c onstructively on the draft decision with a view to 
providing a satisfactory and joint response to uphold the transparency principle, which should guide 
the work of the WTO.   
53. The representative of Bolivia  thanked Argentina and Ecuador for their submission and draft 
decision, which her delegation generally supported.  As Bolivia and other Members had said in the 
past, this issue was a matter of concern.  Concer ns remained about stimulus, assistance and bailout 
packages that various countries ha d been adopting in response to a crisis which their own financial 
systems had created due to a lack of regulation.  Bolivia was concerned about the quantity of resources being used to save these financial institu tions and the fact that this could be highly 
prejudicial to developing countries as a result of the distorting effects on international trade.  It was therefore appropriate for the WTO, through its  competent bodies, to carry out the necessary 
investigations, as proposed by Argentina and Ecuador, in addition to appropriate consultations with 
relevant institutions in the UN system, such as UNCTAD. 
54. The representative of India
 said the issues raised in this proposal were extremely relevant and 
merited serious consideration.  Th e aftershocks of the financial a nd economic crisis were still being 
felt around the world.  As always, the severest impa ct had been on those who were least equipped to 
deal with it.  Exports of LDCs, for example, had gone  down by 43.8 per cent in the first six months of 
the year, compared to 2008.  Clearly the crisis, th e measures adopted by various countries to meet it, 
and the impact on the trade of various countries were pressing issues for analysis.  Much time had 
already been lost, and it was important that the anal ysis was taken up forthwith.  In this connection, 
India also recalled that there was a similar proposal  in the Committee on Trade in Financial Services 
from South Africa and others, seeking a detailed analysis  of the financial crisis and the implications 
for trade in financial services.  It would be usef ul to examine if the i ssues raised in the present 
proposal could also be incorporated in the larger  study that would hopefully be taken up under the 
aegis of the General Council. 
55. The representative of China  said his delegation welcomed and supported the submission by 
Argentina and Ecuador and recalled his delegation's st atement at the General Council meeting in May.  
China understood that this would be a useful exer cise in transparency.  At the May Council, China 
had stated that Members would be able to analyze notifications and would be able to tell whether 
measures were trade-neutral or trading-distorting.  Members would make a clear distinction between 
the two, because there were fundamental differen ces between agricultural subsidies, bailout 
programmes for big banks and bailout programmes fo r major auto companies on the one hand, and the 
stimulus packages for expanding dom estic consumption, raising ener gy efficiency and alternative 
energy to fight climate change, improving people's welf are, education, health care and social security WT/GC/M/122 
Page 18  
 
  network, on the other.  In May, his dele gation had also expressed its openness to ideas on 
operationalizing this practice.  The submission by Arge ntina and Ecuador went in the right direction.  
Therefore, China wished to continue to suppor t it and called on the membership to join in. 
56. The representative of the European Communities
 thanked Ecuador and Argentina for their 
proposal, which the Community agreed touched on extremely pertinent and relevant issues that 
deserved further analysis in the WTO by Members co llectively.  His delegation's starting point on this 
issue was that by and large, one should assume that stimulus programmes first and foremost 
stimulated the global economy, including trade, and th erefore benefited trading partners as well.  Most 
of the stimulus programmes that had been intr oduced had been carefully designed not to be 
discriminatory – for example, the "cash for clunkers " programmes in several EU member States.  The 
Community had notified to the WTO all of the va rious stimulus measures it had taken and had in 
place extremely strict state aid and competition policy rules to ensure that state aids did not distort 
competition, including competition from foreign companies.  The front page of that day's Financial Times newspaper provided an exampl e of this very strict scrutiny by the European Commission of 
European state aid and competition policy rules.  Thus, the Community had a slightly different 
analysis of the issue from that of Argentina and Ecuador.  Nonetheless, there was merit in further 
work on this subject.  The General Council was not the right place to have this kind of analytical discussion, and there was no need to launch a ne w initiative or procedure.  His delegation's  
understanding was that the Trade Policy Review Body  already provided an adequate framework for a 
more in-depth analysis and discussion of the trade impact of various stimulus measures and packages, 
and that a compendium of such measures taken by Me mbers to deal with the financial crisis was being 
prepared as part of the TPRB report.  This would be  featured in future editions of the report, which 
should be discussed in depth by the Members.  T hus, the Community supported the desire to have 
more analysis of the measures referred to in this document, but felt that the TPRB provided a 
framework for that and that Members should not duplicate that work. 
57. The representative of Cuba
 expressed concern about all st imulus programmes, not simply 
those applied, as mentioned by China, with a view  to ensuring the well-being of the population.  He 
believed that the merit of the proposal was that it did not prejudge results, but simply called for detailed analysis and rigorous evaluation of these me asures.  Cuba was also concerned about the way 
resources were being allocated, whic h could give rise to in equalities for developi ng countries.  He 
pointed out that some countries did not have en ough resources to feed its population, and yet 
developed countries were trying to implement massive-scale programmes to provide assistance to 
their financial systems, which he believed was offensive.  Developed countries were trying to 
stimulate their financial system and provide salary top-ups for their bankers, and developing countries 
would have to pay the price for this.  There were ot her types of experience to consider – for example, 
China had its own efficient system to care for the well-being of its people and to employ resources to 
help the majority.  Unfortunately, this was too rare.  Many of the programmes in the developed 
countries simply seemed to favour the banking system  and its elite members.  What Argentina and 
Ecuador were trying to do was to ensure full par ticipation, and this process could be a fundamental 
contribution to the future and coul d enable all to avoid the problem s and negative consequences of the 
current crisis.  This was the right time and the right  organization to make this contribution.  It would 
also give legitimacy and credibility to the tradi ng system, so that unilateral measures affecting 
multilateralism could be avoided.  Cuba strongly supported the pr oposal and its adoption by the 
General Council. 
58. The representative of the United States
 thanked Argentina and Ecuador for their submission.  
The current crisis might be the most costly and disruptive in recent history, though it shared common 
elements with other financial crises, and this cr isis, as with past ones, would undoubtedly provide 
fertile ground for research and analysis for years to  come.  However, his delegation saw at least two 
problems with evaluating policy actions during an ongoing  crisis:  first, the time-distance perspective 
needed to determine the success or failure of a pa rticular response was lacking;  and second, it was  WT/GC/M/122 
 Page 19 
 
 
  difficult, without that perspective, to attempt to quantify the counter-factual – i.e. whether the market 
outcome would have been worse absent the particul ar policy response.  The United States questioned 
whether the WTO had the mandate to undertake this type of work.  Setting that aside, on a more 
practical level, it did not believe that the Gene ral Council was the proper forum to discuss whether 
particular macro-economic and regulatory responses to th e current crisis were appropriate.  It also did 
not believe, while mindful of the excellent work it did, that the Secretariat was in a position to 
undertake a comprehensive analysis of all the ma ny policy responses to a crisis that was still 
unfolding.  A number of international groups had th e responsibility and the resources to undertake this 
type of work, including the G20, the Basel Committe e, the Bank for International Settlements and the 
Financial Stability Board.  The IMF was also worki ng on the effects of the crisis and responses to it 
on the global economy and on individual nations' economies.  As his delegation had said before, the 
United States saw the current situation as an opportu nity to bring a collective commitment of renewed 
energy that would boost the institutional side of the WTO.  In particular, it assumed that, to the extent 
the measures referred to in the paper from Argentin a and Ecuador were trade- related, they could be 
reviewed under the normal transparency procedur es in the relevant committees, including the 
Committee on Subsidies and Countervailing Duties.  Other Committees had already been doing some 
related work.  With respect to the issue of tran sparency, the United States had been very active in 
making interested parties aware of its policy respon ses and the effects of these, as far as it could know 
them.  This included two extensive web sites – www.recovery.gov and www.fin ancialstability.gov.  
The United States would also continue to meet its  notification obligations under the relevant WTO 
Agreements, and encouraged all Members to be equally transparent. 
59. The representative of Australia  thanked Argentina and Ecuador for their contribution to what 
was a very important and interesting discussion.  As  his delegation had said at the May Council, there 
was no question of the importance of the fiscal stimulus packages to successfully addressing the 
financial crises.  There were already efforts at the international level to consider the impact of these 
measures and to discuss how eventually to withdraw them in a manner that supported sustainable 
global growth.  He had in mind in particular, but not only, the G20.  It was of course difficult to argue 
that more analysis of some of these issues would no t be useful, but like others, Australia considered 
that the Director-General currently had a pro cess, to which Australia had been very actively 
contributing, which was assessing the trade-related re sponses of all Members to the current crises, and 
had been doing so in an appropriate and balanced fash ion.  His delegation considered that this was an 
appropriate way to take this work forward. 
60. The representative of Turkey  said that Argentina and Ecuador's proposal on the financial and 
economic crisis and the role of the WTO was rele vant.  At the May Council, when Argentina's 
proposal with the same title had first been discussed, his delegation had made reference to its previous 
statements at various WTO meetings and had reite rated its concerns relating to the asymmetrical 
weight of the stimulus packages over all other measures, in terms of both positive and negative 
externalities.  The G20 Leaders in Pittsburgh,  while calling upon all to  avoid any premature 
withdrawal of stimulus measures, pledged to prep are exit strategies, and when the time was right, to 
withdraw the extraordinary policy support in a coop erative and coordinated manner.  Those packages 
became essential in times of crisis to keep the multilateral trading system functioning, provided they 
were trade-friendly and could be tole rated for a limited period of time as political reality or necessity.  
However, they should not turn into general practi ces in terms of subsidies.  Turkey could go along 
with any decision the membership might take, as long as this issue was discussed in the WTO. 
61. The representative of Brazil  said his delegation supported the basic thrust of the joint 
communication by Argentina  and Ecuador, which it found timely and relevant.  It favoured 
transparency and would facilitate the assessment of  the trade consequences of fiscal and financial 
measures adopted by Members.  In any event, th e proposed exercise should be limited to sectoral 
measures rather than covering overall fiscal measures.   Such overall measures had their role in the 
process of recovery of the economy, as acknowledged by the recent G20 summit.  In terms of  the WT/GC/M/122 
Page 20  
 
  framework for the proposed exercise, it should be  conducted on the same premises as the work under 
the TPRB – namely, the Secretariat should not venture into assessing or verifying the compatibility of Members' measures with multilateral tr ade agreements.  As to the focus of the exercise, the priority in 
the discussion should be measures that involved larger  amounts of resources, as they were more likely 
to generate distortions. 
62. The representative of South Africa
 thanked Argentina and Ecuador for their proposal, which 
was both timely and welcome.  As India had said, th e effect of the present crisis on LDCs was by now 
well documented, and as Africa was home to most LDCs, it was natural to assume the impact it had had on the continent.  According to a recent IMF re port, South Africa would show the lowest growth 
for 2009 on the entire continent, which illustrated the im pact the crisis had had on his country.  From 
a systemic point of view, South Africa saw the proposal as a useful exercise.  The TPRB process, 
while it did have its role, did not extend, in terms of its nature and comprehensiveness, to what his 
country sought as an outcome of the Argentina/Ecuador proposal.  South Africa supported the proposal and looked forward to further progress on it. 
63. The representative of the Bolivar ian Republic of Venezuela
 welcomed the proposal, which he 
said represented an important contribution to the e fforts that had been deployed by the WTO and its 
Members to monitor the effects of the current econo mic and financial crisis and to avoid a worsening 
of its impact on world trade.  The current cris is had shown the need for swift and appropriate 
responses, both for individual countries as well as collec tively.  He recalled that the Director-General 
had proposed an exercise to monitor the effects of  the economic and financial crisis on international 
trade.  Bearing in mind that there were no clear term s of reference to carry out this exercise, in the 
three successive reports of the Director-General  the content had been improving, as well as the 
methodology for their elaboration and discussion.  In comparing the first report to the third one, one could see substantial improvements with respect to  methodology and content-  However, there was 
still room for improvement, so that the report could b ecome an effective tool to monitor the effects of 
the crisis on world trade.  The proposal was very constructive in suggesting that if the monitoring 
exercise was to be effective, trade measures had to be analyzed in more depth, both in terms of their 
compliance with WTO Agreements and their impact on  world trade.  The Director-General's reports 
had provided information about the implementati on of tariff measures, but for other types of 
measures, such as stimulus packages, it had been difficult to get information.  Therefore, it was 
difficult to conduct an in-depth anal ysis because of a lack of methodology and terms of reference.  A 
lot more information was needed about these stimul us packages, which had been phased-in as soon as 
there were signs of the economic and financial crisis , since they were likely to affect world trade.  
Therefore, an in-depth and periodic analysis was needed, which should include both goods and 
services and should provide statistical estimates with r espect to the impact on trade.  Such analysis 
would enable the WTO to be strengthened.  In order for this analysis to be carried out, it was not only 
necessary to improve the research methodology, but al so for Members to provide relevant information 
and necessary data.  Venezuela was in favour of the proposal because it aimed at putting in place 
sound terms of reference for the drafting of reports for the evaluation of the current crisis and its 
effects on world trade. 
64. The representative of Chile
 recalled that his delegation had supported the spirit of the present 
proposal at the May Council meeting.  The discussion he ld at that meeting had also been reflected in 
the reports of the Director-General to the TPRB which, as Venezuela had pointed out, had improved 
in terms of content and analysis.  The proposal pr obably pointed to a weak point of these reports, 
which was the lack of a structured analysis and clear methodology when looking at the effects of 
stimulus programmes and financial support taken in response to the crisis.  The work proposed by 
Argentina was valid, and Chile had no preference that this be carried out in the General Council or in 
the TPRB.  However, there should be some clear premises.  It should be a neutral review, which 
should not prejudge the effects of some programs or, as the proposal at times seemed to do, to imply 
that all stimulus packages were negative.  The an alysis should not question the compatibility of such  WT/GC/M/122 
 Page 21 
 
 
  measures with WTO rules, and Chile supported Arge ntina's statement on this point.  Before 
discussing the methodology for the analysis, it should also be clarified what type of analysis was sought.  He asked if it should be a global analysis of all measures and all pack ages, or sector-based, as 
some Members had suggested, and how to assess me asures having a positive or negative impact.  
Generally, he believed that positiv e measures had a global effect, while negative ones were more 
sector-based.  He wondered if there should be an y compensation between the measures.  Also, the 
timeframe for this exercise should be understood.  The proposal seemed to focus on measures and 
programmes adopted in response to the crisis, and one should be careful not to establish a precedent 
or methodology that would be applied to  other programmes in other contexts. 
65. The representative of the Dominican Republic
 said the proposal had come at the right time, as 
an analysis was needed to be able to arrive at conc lusions and formulate policies to be able to confront 
similar situations in the future.  The proposal was broad.  As Brazil had said, a methodology should be 
established on a sector-by-sector basis and as stressed by Chile, this should be without any bias and 
transparent.  Furthermore, from a general standpoi nt, fiscal and monetary packages had re-established 
a return to growth of the world economy.  Howeve r, these packages had been concentrated in some 
countries which would benefit from these efforts, whil e their application could have an impact on the 
competitiveness of similar sector s in other economies.  This wa s the area where the WTO should 
focus its efforts to evaluate su ch impacts.  The Dominican Repub lic therefore agreed that the 
organization should carry out such sector-based analysis. 
66. The representative of Nicaragua  recalled that, at the last meeting of the TPRB, her delegation 
had shared some ideas about how to sharpen the an alytical capacity of the WTO with respect to the 
current crisis.  Nicaragua, as well as other delegations , had said that the analysis should be deepened 
and made more relevant.  The proposal by Argentin a and Ecuador went in the right direction as it 
would enable a better monitoring of the financing of  trade and of the trade impact of measures taken 
in response to the crisis.  A number of delegations  had shown that they were open to discussing the 
elements in the proposal, either in the General C ouncil or in other bodies of the WTO.  The existence 
of an already agreed methodology should not be an excuse not to improve the analytical capacity of 
the organization.  Any discussion in any other b ody could be complementary and not necessarily a 
duplication. 
67. The representative of Norway  said her country understood and appreciated the concerns 
expressed by Argentina and Ecuador an d had so indicated at an earlier meeting.  Norway agreed that 
there was a need to look carefully into stimul us packages and their impact on world trade and 
international competition, particularly as the exit st rategy that had been on the agenda in the OECD, 
the G20 and elsewhere during the spring seemed lately to have been put on the back burner.  On the 
other hand, like the EU, Norway did not see a need to set up a new entity to make this assessment.  
Members could do the same things proposed in the Argentina/Ecuador paper in the existing process 
under the TPRB. 
68. The representative of Paraguay  stressed that what Argentina and Ecuador were proposing was 
an exercise of transparency and that all delegations  who had spoken were in principle in agreement 
that there was a need to carry out su ch an exercise.  It was of the utmost importance to engage in this 
and to kick off this exercise through a mandate of the most important decision-making body of the organization, the General Council.  It was important that measures taken in response to the crisis did 
not have any repercussions, or if they did, that they  be offset, so that they did not generate further 
crises, which was certainly not the aim of those that had applied them.   
69. The representative of Argentina
 thanked all the delegations that had commented on the joint 
proposal and wished to make some observations.  Fi rst, one point which had been raised repeatedly 
was where the analysis would be carried out and in what body.  His delegation firmly believed that 
one should avoid not looking at what was happeni ng.  Indeed, one of the major objectives of the WT/GC/M/122 
Page 22  
 
  proposal was to move forward.  Second, the analys is could be carried out in the General Council or 
any other body that Members deemed fit, but it had to  be a global analysis.  Third, he was concerned 
about the point made that the WTO did not have  a mandate and that other organizations were 
undertaking such an exercise.  It was worrisome if another organization was doing what the WTO 
should be doing.  No one could say that the WT O had no competence when it came to international 
trade.  If the WTO did not have a mandate, he as ked what organization did, and how the WTO could 
not have a mandate to examine the costs and benefits of measures that had an effect on trade.  Even 
TRIPS was not strictly a trade matter.  One had to be coherent, and if the WTO did not have a 
mandate to look at these packages, it did not have a mandate to talk about TRIPS.  Going down this 
road was not the best strategy to carry out this ex ercise.  It was important to understand that the WTO 
had to examine this issue, and then one could discu ss the analysis and its context.  He was concerned 
about the point that had been made that the Secretariat did not have the capacity to undertake such analysis.  If the Secretariat did not have the capac ity to analyze the commercial effects of what was 
presently happening, he asked what the work of the Secretariat should be in the future.  This also 
showed a lack of respect with regard to the Secret ariat.  It was important to continue consulting and 
some good ideas had been heard, but all had to demo nstrate a certain degree of openness with respect 
to this matter.  The same spirit should be kept for the future, so that the issue could remain on the 
agenda.  His delegation would convene meetings with  all those who had spoken on this matter to see 
how to move forward constructively.  It was an obl igation for all to continue to guarantee that trade 
fell under the auspices of the Agreements of the WTO. 
70. The representative of Ecuador
 recalled the saying "he who hides not, fears not" and believed 
that all Members should be transparent about th eir policies and practices.  In the Committee on 
Balance of Payments, Ecua dor had received a number of lessons on protectionism.  It was surprising 
therefore to see the same delegations that had been  giving such lessons, now using arguments of a 
different nature.  Some were saying that the fi nancial G20 was where these packages should be 
examined.  His delegation could not accept any mandate or any recommendation from the G20.  He 
further stressed that in the UN General Assembly , a declaration adopting the recommendation of the 
Stigliz Commission had been approved.  Members that were calling for coherence should also 
practice what they preached.   
71. The General Council took note  of the statements and agreed  to revert to this item at its next 
meeting. 
5. Accession of developing countries – Communication from Gabon on behalf of the 
Informal Group of Developing Countries (WT/GC/119, WT/GC/W/611) 
72. The Chairman  drew attention to the communication from Gabon on behalf of the Informal 
Group of Developing Countries in document WT/G C/119 requesting that this item be placed on the 
Agenda of the present meeting, and to a subsequent communication from the Informal Group which had been circulated in document WT/GC/W/611. 
73. The representative of Gabon
, on behalf of the Informal Group of Developing Countries , said 
the Group wished to thank the Director-General fo r his exhaustive report on both the substance and 
procedural aspects of the ongoing negotiations.  The Group reiterated its hope that this development-
oriented Round would be brought to a successful conc lusion, and reaffirmed its readiness to work 
with the various Negotiating Group Chairs to achieve this overarching goal.  In the past, the Informal 
Group had customarily raised the question of accessions  under "Other Business".  However, in view 
of the importance of the matter, the Group thought it fitting to include it as an item on the agenda, so 
that Members could give it closer consideration a nd enter into discussion with a view to establishing a 
strategy for resolving the gridlock faced by acceding countries.  The communication contained a 
reminder of the background, the rationale for the pr oposal being made and a conclusion.  Since the 
establishment of the WTO, 25 accessions under Articl e XII of the Marrakesh Agreement had been  WT/GC/M/122 
 Page 23 
 
 
  concluded.  Currently, 29 countries or separate cust oms territories were in the process of negotiating 
their terms of accession to the WTO, the vast majo rity of which were developing countries.  There 
was also one request for accession which had been  pending since 2001.  Accessions were very 
important for the WTO as an institution and for the multilateral trading system that it oversaw.  They allowed the WTO to fulfil its goal of having univ ersality of membership and bringing the vast 
majority of global commerce under its multilatera l agreements.  Accessi ons strengthened the 
rules-based multilateral trade system, as compliance w ith those rules was expected as from the date of 
membership. 
74. From the perspective of the acceding countries,  WTO membership provided them with an 
excellent instrument for domestic policy, legal and institutional reforms.  Acceding to the WTO 
contributed to cementing economic reforms that mi ght come under attack from domestic protectionist 
interests.  However, for these reforms to be trul y lasting and beneficial to the population of the 
country, WTO accession had to be a welfare-enhanci ng process.  This was why it was important that 
during accession negotiations, the principles of special  and differential treatment and non-reciprocity 
in favour of acceding developing countries and LDCs  be fully complied with.  The accession process 
had worked for countries, as they ha d been successfully integrated in to the global trade and economic 
mainstream after accession to the WTO.  From the perspective of Members, the multilateral trading 
system had contributed to the opening of new ma rkets and to enforcing international rules and 
obligations by the governments of newly-acceded Memb ers.  Nevertheless, it had to be said that the 
process entailed great efforts on the part of acced ing developing countries, and the necessary reforms 
were not always easy to implement.  Problems emerged as well when acceding countries were faced 
with very ambitious requests and expectations fr om existing Members.  There were many other 
reasons, ranging from political instability to the capac ity of the negotiating team, which affected the 
pace and content of accession negotiations. 
75. Given the current dynamics of WTO accessi on negotiations, Members enjoyed a much 
stronger negotiating position than the acceding developi ng countries.  The lack of clear rules for the 
accession process, compounded by the stronger position of Members, might lead to acceding 
countries being faced with demands that went be yond their level of development and current WTO 
rules.  It was also worrying that in many cases,  the obstacles and delays encountered by some 
developing countries in their efforts to join the WTO were not technical in nature, but rather based on 
political considerations and issues that were not re lated to trade or economic policy.  The type of 
problems outlined above, which had been repeatedly  brought to the attention of the General Council 
by the Informal Group, raised serious systemic questions.  The time had come to start a dialogue on 
those issues, as they might affect negatively the development of futu re developing-country Members.  
This dialogue seemed to be necessary, as Member s needed to provide more guarantees that WTO 
accession would be used as an effective tool to initiate reforms in developing economies around the world and to integrate them successfully into the trade mainstream in a manner conducive to 
achieving their development goals.  Acceding deve loping countries had very few opportunities to 
make their views on the accession process known to Memb ers.  Therefore, it was important to provide 
the opportunity to them to voice their comments on the process they were going through.  It was commendable that the issue of accession negotiations had received more attention in the recent past, 
and the Informal Group acknowledged the efforts be ing made by the Chairman of the General 
Council, the Director-General and the Secretariat to improve the general situation of the accessions 
mechanism, but more remained to be done.  Theref ore, it would be beneficial to improve the existing 
institutional mechanisms whereby acceding developi ng countries could express their concerns with 
the process. 
76. The following proposal could lay the groundwork to stimulate a dialogue to understand better 
the problems of the accession process and their implicati ons on future Members:  improve the existing 
institutional mechanisms with th e objective of providing the opportunity to acceding developing 
countries to make their views on the accession pr ocess known to Members, with progress reports WT/GC/M/122 
Page 24  
 
  periodically sent to the General Council.  Future part ners within the organization needed to have the 
chance to talk and exchange experiences and opi nions inside as well as outside the negotiating 
atmosphere of their respective working party mee tings.  Given that the approaching Ministerial 
Conference would be dealing with systemic issues, the accession process and numerous identified systemic concerns needed to be on the agenda of the Conference.  In that context, a first exchange of 
ideas with the acceding countries would seem importan t, in order to provide a necessary input for 
more substantive discussions at the Conference.  As time was of the essence, the Informal Group 
would welcome a quick and positive consideration of this proposal.  In closing, he expressed the 
Groups renewed thanks to the Director-General and the General Council Chair for their unstinting 
efforts on the question of accessions. 
77. The representative of Nigeria
 supported the statement by Gabon for the Informal Group of 
Developing Countries.  The issue of accession nego tiations was a systemic one which should be 
accorded special attention by the membership.  To that end, Nige ria welcomed the spirited efforts 
being made by the Chairman of the General Council, the Director-G eneral and the Secretariat to 
improve the general situation of the accessions mechanism.  It should be recognized that WTO 
accession remained an integral part of the developmen t strategies of most countries aiming to benefit 
fully from the international trading system, all the more so as many Members had successfully 
integrated into the global trade and economic ma instream after accession to the WTO.  However, 
making WTO membership truly universal remained a challenge.  In particular, although joining the 
WTO brought benefits, it was a complex and tortuous  process.  In some c ases, acceding countries 
lacked adequate resources, policies and ins titutions.  Therefore, the process of accession of 
developing countries to the WTO should be consis tent with the WTO Agreements and with these 
countries' developing-country status.  Acceding deve loping countries and LDCs should not be subject 
to excessive demands that went beyond the commitm ents of existing developing-country Members.  
One should also focus primarily on the commercial policies of acceding countries rather than other 
extraneous issues.  It was largely on account of the above that his delegation saw merit in the Informal 
Group's proposal, especially those aspects relating to  the need to improve transparency and the 
existing mechanism, with a view to facilitating th e accession of developing countries and LDCs.  In 
this regard, it was important to provide an opportu nity to acceding developing countries to voice their 
concerns on the process they were going through.  It  was also fair to extend the same opportunity to 
those who might have hands-on experience of the pr ocess to discuss the accession-related rules and 
practices.  Nigeria further urged Members to fu lly and faithfully implement the Guidelines on LDC 
Accession adopted by the General Council on 10 Dece mber 2002.  There was a need for developing 
countries, and LDCs in particular, as well as countri es with economies in transition that were acceding 
to the WTO, to be provided with technical assist ance prior to, during and in the follow-up to the 
accession process, in accordance with their level of development and trade needs.  Accessions were 
very important for the credibility of the WTO as an  institution and for the multilateral trading system 
that it oversaw.  Accessions could and should strengthen the rules-based multilateral trading system.  
Nigeria therefore encouraged Members to be op en-minded and supportive of the Informal Group's 
proposal. 
78. The representative of Viet Nam  said that as a newly-acceded Member, Vietnam was confident 
that the accession process had work ed for Members, including Vietnam.  It had helped his country 
successfully integrate into the global trade a nd economic mainstream.  However, Vietnam had 
observed some systemic problems with the accession process and believed that it was beneficial and 
feasible to improve that process, as outlined in the statement by Gabon for the Informal Group of 
Developing Countries.  The systemic problems fo r accession were twofold.  First, the accession 
process should be clearer, more transparent and pr edictable, both for acceding countries and for other 
Members.  Second, there was a la ck of a platform for all acceding countries to get together with 
interested Members to discuss common issues of ac cession and bring those issues to the attention of 
the General Council or other relevant bodies for possi ble action.  In this regard, Vietnam supported 
the proposal of the Informal Group to launch a process of improving the existing mechanism or  WT/GC/M/122 
 Page 25 
 
 
  creating a new one, if necessary, to address the above -mentioned problems, so that universality of the 
WTO could be better realized. 
79. The representative of Paraguay  supported the document presented by Gabon for the Informal 
Group of Developing Countries and drew the Council' s attention to the situation of landlocked 
developing countries, eight of which were in the accession process.  These countries had special 
vulnerabilities given their geographical situation.  A meeting of trade Ministers of landlocked 
developing countries was taking place in Swaziland,  where the question of accession was one of the 
most important points on the agenda.  His delega tion called upon the organization to make greater 
efforts to facilitate the accession pro cess of landlocked developing countries. 
80. The representative of India  said his delegation attached great importance to the objective of 
universal membership, which the WTO had embraced.  The sustainability of the globalization process 
depended on all countries enjoying the benefits of participating in the rules-based global trading 
system.  Therefore, it was important that the accession process in the WTO be guided purely by objective considerations.  In this respect, non-tr ade or non-economic considerations had no place in 
the process.  He thanked Gabon for introducing the proposals of the Informal Group of Developing 
Countries, which India fully supported.  The pro posal was aimed at improving the institutional 
mechanisms for the accession process and at providi ng opportunities to acceding developing countries 
to make their views on the accession process known to Members.  India remained fully committed to 
extending all possible support to acceding countries in the process of their accession to the WTO. 
81. The representative of China
 associated his delegation with the statement by Gabon for the 
Informal Group of Developing Countries.  This is sue was an important agenda item for the General 
Council as it involved the improvement of the WTO accession process and was fully in line with the 
requirement of transparency, which was a basic prin ciple of the organization.  Acceding developing 
countries should have more opportunities to make th eir concerns and considerations known to all 
Members, with a view to facilitating their early  accession, and the document reflected well the 
problems of the accession process as well as the di fficulties many acceding developing countries 
faced in this process.  On the s ubstance of the issue, Members should refrain from imposing excessive 
demands on acceding developing countries that went  beyond the latter's level of development and 
current WTO rules.  The proposal for improving the existing institutional mechanisms was moderate 
and workable, and China was ready to par ticipate in discussions on it in the future. 
82. The representative of Egypt , on behalf of the African Group , supported the proposal in 
document WT/GC/W/611, expressed the Group's full solidarity with all the African countries 
undergoing the WTO accession process, and urged all Members to facilitate and accelerate the latter's 
accession.  The Group also reiterated that the LDCs in the process of accession should not be 
requested to negotiate concessions and commitments  that went beyond those made by other LDC 
Members of the WTO.  No acceding African deve loping country should be compelled to make 
concessions incompatible with its level of developm ent and that went beyond existing WTO rules.  
The African Group was also in favour of enhanc ing technical assistance for acceding countries and 
believed there was a need to consider the creation of a mechanism to improve systemic transparency 
on accessions. 
83. The representative of South Africa  supported the statement by Gabon for the Informal Group 
of Developing Countries and by Egypt for the African Group.  The proposal sought to increase transparency in the accession process and to empower  acceding countries, which were mostly small, 
vulnerable and least-developed economies, to secure a fair and balanced set of commitments and entry 
into the WTO.  The proposal would also improve the legitimacy and credibility of the rules-based 
trading system. WT/GC/M/122 
Page 26  
 
  84. The representative of Cuba
 supported the statements by Nigeria, Gabon, Egypt and South 
Africa, as well as those who had spoken on behalf of  African and other developing countries in the 
accession process.  Trade could strengthen developmen t, but too often objective considerations were 
not looked at when it came to the full enjoyment and participation of developing countries in WTO work, and this was unacceptable.  Cuba was in favour  of the proposal and believed it was essential to 
make facilities available swiftly so that these countri es could join and enjoy full participation in the 
work of the WTO.  Their accession should be facilita ted in every possible way, and any difficulty or 
obstacle that could slow th is down should be removed. 
85. The representative of Colombia
 thanked Gabon for requesting the inclusion of this item on 
the Council's agenda and the Informal Group of Developing Countries for their submission 
concerning the need for a dialogue on the WTO accessi on process.  His delegation agreed with the 
arguments in document WT/GC/W/611 regarding th e background for accession and its benefits for 
developing countries.  Colombia also agreed with what was said regarding the internal problems in 
the accession process which were affecting countri es going through accession.  Something should be 
done to improve the channels of communication for these countries to expr ess their concerns and 
difficulties.  Colombia respect ed institutional structures, inter alia  because this respect guaranteed the 
durability of any rules-based system, such as that of the WTO.  For that reason, his delegation wished 
to make an appeal to the organization that it seek to enhance, in any possible way, the principles set 
out in the Marrakesh Agreement vis-à-vis  accessions, particularly for developing and least-developed 
countries.  He recalled the observations with resp ect to accessions made by a former WTO Director-
General in 1999:  first, accessions continued to be an important ch allenge for the WTO and should be 
addressed creatively and constructively;  second, the terms and conditions demanded of countries in 
accession should help to maintain the integrity of th e system;  third, the specific commitments entered 
into within the accession process s hould reflect the particular circumstances of each case.  He hoped 
that these observations would feed into the genera l process of reflection and would enable all to 
address this issue seriously in the future. 
86. The representative of Turkey  supported the initiative of making the accession process more 
efficient and transparent for developing countries.  This included accelerating the accession process as 
well as establishing mechanisms to provide an opp ortunity for acceding developing countries to make 
their views known to Members in a more productive manner.  Increasing the effectiveness and giving 
additional impetus to the accession process did not necessarily require a major institutional change, 
and Turkey was ready to continue discussing this issue. 
87. The representative of the United States  thanked the Informal Group of Developing Countries 
for its submission.  He reaffirmed the United States' support for the current accession negotiating 
process, which had evolved over nearly three decades  into a powerful tool for economic development 
and trade capacity-building.  The accession negotiating process was based on consensus, 
implementation of WTO provisions and broadly liberalizing commitments for goods and services 
market access, thus ensuring that new Members ma de appropriate contributions to the balance of 
concessions they received upon accession, and that th is contribution was acceptable to the current 
membership.  His delegation agreed with th e point made in WT/GC/W/611 that accessions 
strengthened the rules-based multilateral trading syst em and provided applican ts with an excellent 
instrument for domestic policy, legal, and institu tional reforms.  Accession to the WTO based on 
implementation of WTO provisions and strong market-access commitments helped build an attractive 
investment environment and provided a strong basi s for further economic growth through increased 
international trade.  Accession to the WTO was wi dely recognized as a valuable indication of a 
developing country's abilities to welcome foreign investment and to promote domestic growth and 
diversification. 
88. The United States disagreed with the assertion that the current process resulted in acceding 
countries being faced with demands that went be yond their level of development and current WTO  WT/GC/M/122 
 Page 27 
 
 
  rules.  A review of the results of the 25 accession negotiations since 1995 demonstrated that the scope 
and level of commitments varied widely with each individual accession, reflecting the economic diversity of the organization as well as the indivi dual economic strengths and weaknesses of each 
applicant.  Transitional arrangements were negotia ted as necessary, both for implementation of rules 
and for market-access commitments.  The periodic re ports of the Secretariat to the Council provided 
adequate opportunity for regular review and dialogue.  In addition, he noted that, with respect to LDC 
accessions, the CTD's LDC Sub-Committee would be taking up this topic as part of its normal 
functions, and the United States looked forward to  participating in that discussion.  Acceding 
countries, whether developing or developed, had ample opportunity to discuss their accessions in 
these fora or bilaterally, and there was no utility in  establishing any further mandatory agenda points 
for that purpose.  In addition, there was already a gr eat deal of transparency in the accession process.  
Accession working parties and documentation were open to any Member or accession applicant delegation interested in the process or in the progres s of any specific applicant.  All legislation was 
available for review, and questions and comments on the applicant's documents were published and 
made available, even to non-Member observers.  B ilateral market-access negotiations were not open, 
as was the case in all WTO negotiations, out of respect for the privacy of the negotiating partners.  
However, the status of the negotiations was repor ted on and was open for discussion at every working 
party meeting, and the negotiating partners were not constrained in their ability to share more detailed 
information with others when they chose to do so .  The United States urged Members having concerns 
about the process to participate in these meetings and to cons ult with recently-acceded Members 
about their accessions.  This would help allay the concerns expressed. 
89. The representative of th e European Communities
 thanked the Informal Group of Developing 
Countries for its proposal, many aspects of which it  considered persuasive and convincing.  His 
delegation shared the view that there could be gr eater transparency in and across accession processes, 
as well as greater inclusiveness and coherence acr oss accessions, and believed that the Informal 
Group had identified some concerns that merited se rious consideration.  The European Communities 
was committed to the accession processes currently  underway and hoped and expected that those 
processes would benefit from as much transparency as possible.  The US statement had highlighted a 
large number of areas in which accession processes were  transparent and had added that improvement 
could be made to the present situation.  He noted that one of the specific concerns raised by the 
Informal Group in the document was that some ac cessions had run into difficulties due to political 
factors.  In this respect, the European Communitie s had never allowed politi cal considerations to 
affect its position on accession processes, and was firm ly convinced that political considerations 
should be kept out of all accessions.  As I ndia had said, accession processes should remain 
exclusively focused on the acceding countries' econom ies and, more specifically, on their trade 
policies.  However, while the Eur opean Communities shared the desire for more transparency and for 
as much coherence as possible between comparable a ccessions, it remained to be convinced that there 
was a fundamental flaw in the system.   
90. While his delegation was ready to explore new ways or new fora in which to address these 
problems, it wished to be clear that in any examination of the way accessions were managed and 
carried out, it should not be assumed that there woul d be any automaticity in the accessions process.  
There could not be a one-size-fits-all, because th e situation of each country was different, and it 
would not be advisable to consider relaxing or lowe ring the basic rules of the WTO in order to make 
accessions easier.  The systemic challenge for accessions was not a problem with WTO rules on 
accession, but a development issue.  It was a cha llenge for developing countries to put in place the 
domestic reform processes necessary to meet WTO ru les, but that process in itself was essential for 
reform and for development and should not in any way be diluted.  Additionally, the European 
Communities did not see the need for the General C ouncil to regularly address accessions or for a new 
forum to be created for that purpose, as proposed in  the document.  Working party meetings were the 
avenue to discuss accession matters.  A discussi on in the General Council on accession issues could 
be held when there was a particular issue that need ed to be addressed.  One could also look at the WT/GC/M/122 
Page 28  
 
  possibility of a periodic annual report by the Directo r-General or by the Chair of the General Council 
on the state of play across the board on accessions, which could lead to a discussion in the General 
Council.  However, the General Council was not the ri ght organ to have a systematic monthly or bi-
monthly discussion on accessions.  He recalled that in the preparations for the Seventh Ministerial Conference, India and a number of other Member s, including the European Communities, had co-
sponsored a proposal on a work programme to be set up in the WTO to look at practical ways to 
improve transparency, efficiency and functioning of  the WTO.  Some of the points made in the 
submission by the Informal Group could be taken up  in that process, which his delegation hoped to 
see launched at or after the Ministerial Conference. 
91. The representative of Ecuador
 supported the proposal by the Informal Group of Developing 
Countries.  In his delegation's view, and as opposed  to other views voiced in the Council, it was 
indeed the absence of clarity in th e rules related to the accession process that was at the heart of the 
proposal, which sought to clarify and improve the process in general.  The accession process should 
be based on technical aspects and should leave aside  any political considerations.  This point needed 
to be considered and taken into account throughou t the debate on this issue.  Ecuador, like other 
developing countries who had spoken on this issue, wa s prepared to participate in discussions to 
clarify the accession process, so that it could be made more transparent and could contribute to 
consolidating the multilateral trading system.  Ec uador called on Members to  work towards these 
objectives.  
92. The representative of Japan  thanked the Informal Group of Developing Countries for its 
work.  However, it was not clear how some of th e actual cases of developing countries' accessions 
could benefit from the proposal.  She stressed that each case was different, had particular 
circumstances and, in some cases, certain speci fic problems.  These specific problems could not be 
addressed in a general way.  She asked how the pr oposal could, in concrete terms, improve actual 
situations in working parties.  Japan was open to  any meaningful discussions which would lead to 
actual improvements in concrete cases. 
93. The representative of Brazil  thanked Gabon for requesting the inclusion of this item on the 
agenda on behalf of the Informal Group of De veloping Countries.  Brazil shared the concerns 
expressed in the submission and associated itself with  the proposal, which was balanced, conducive to 
an improved dialogue among Members, and would also  serve to enhance transparency.  Initiatives 
like this would contribute to a more balanced accession process, in line with acceding countries' 
capacity to contribute. 
94. The representative of Ukraine  thanked the Informal Group of Developing Countries for its 
communication.  Ukraine fully supported accessions as they strengthened th e system.  Ukraine was 
ready to share its recent accessi on experience with acceding countries.  It had travelled a long and 
tough road and knew the price of accession.  Neve rtheless, he stressed that the accession process 
should not depart from the general concept of the WTO as a rules-based organization and that 
acceding countries should not make attempts to suggest new light-weight rules or fast-track accession.  
While Ukraine supported the position that politics should not play a part in accession, it also believed that a lack of capacity, non-implementation of rul es and lack of internal economic reforms mentioned 
in the document should not give rise to a rhetori cal accusation of political pressure on the part of a 
candidate conducting bilateral nego tiations with Members.  Ukraine was concerned about some 
arguments by candidate countries in favour of keepin g higher trade barriers based on the justification 
of the current crisis or temporary economic difficu lties.  There should be a clear distinction between 
cases where there was a particular situation in a deve loping country and where this status was used as 
a pretext to receive a "carte blanche" not to impl ement commitments as a Member.  It was  easier to 
criticize rules than to comply with them.  One ne eded first to follow the rules in order to better 
understand how to improve them.  WT/GC/M/122 
 Page 29 
 
 
  95. The representative of Gabon , on behalf of the Informal Group of Developing Countries , 
thanked all delegations that ha d spoken on this item for their support and for their expression of 
willingness to work towards improving the proposal.  The Group wished to conduct this discussion in 
the General Council on a periodic basis, which could be agreed upon at a later stage.  For the Group, it 
was a matter of improving transparency in the accession process, while preserving the rules that 
governed accession in the WTO.  As all Members had said, problems in the process had been 
identified, and it was the Group's view that these  should be discussed and that accession of countries 
that complied with established rules should be facilitated. 
96. The representative of Angola  associated his delegation with the statement by Egypt for the 
African Group.  Article XII of the GATT needed to be clarified, particularly the provisions on 
bilateral negotiations in connection with the accessi on process, as there was a grey area here due to a 
lack of rules.  It was important to clarify this  aspect, as it seemed that excessive bilateral demands 
were being imposed on  acceding countries.  The time  had come to address this matter, perhaps in the 
framework of a WTO reform that could possibly be discussed at the Seventh Ministerial Conference.  
This question should be placed on the agenda of th e Ministerial Conference and should be one of the 
topics of discussion at forthcoming General Council meetings. 
97. The representative of Algeria , speaking as an observer , said this was the first time his 
delegation was taking the floor in the General Counc il, although it had been an observer in the GATT 
and the WTO for more than 20 years.  The Inform al Group of Developing Countries comprised more 
than 90 Members and observers.  Algeria endorsed the statement by Gabon on behalf of that Group, 
and fully supported Egypt's statement for the Africa n Group.  He recalled that his country had been 
engaged in the accession process since 1987 and was therefore the most senior of all acceding 
countries.  The issue of accessions was one of th e rare issues in the WTO for which there was no 
platform for discussion, and the request by the Info rmal Group was simply a call for such a platform.  
In addition to the frustration of feeling left out , acceding countries had no way of communicating to 
Members their views on the accession process and their systemic concerns relating to the ambiguity 
and the lack of clarity and precise rules surrounding it.  As an acceding country that felt left out, 
Algeria wondered how one could r espond to a country that was obliged, as a condition for accession, 
to agree to initiatives such as zer o-for-zero sectoral initiatives, that were still under discussion, and 
how a country could be obliged to give precedence  to the WTO Agreements and to WTO rules over 
international agreements and treaties, when this was contrary to international law.  Acceding countries 
would like to see the trade rules established by the WTO applied.  The proposal of the Informal Group 
was an effort to enhance transparency and to st rengthen the WTO as a rules-based institution, and his 
delegation hoped it woul d receive positive consideration by Members. 
98. The Chairman  noted that some delegations were in favour of the proposal, others were 
lukewarm and others were not in favour at all.  Consequently, Members needed to think together how 
to proceed with the proposal submitted by Gabon on  behalf of the Informal Group of Developing 
Countries. 
99. The General Council took note  of the statements. WT/GC/M/122 
Page 30  
 
  6. Seventh Session of the Ministerial Conference 
(a) Statement by the Chairman 
(b) Election of Officers 
(c) Attendance of observers from governments and in ternational intergovernmental organizations 
100. The Chairman
7 suggested that the three sub-items be ta ken up together and recalled that at its 
meeting in May, the General Council had taken a Deci sion on the date for the Seventh Session of the 
Ministerial Conference, its venue and its overall theme.   The Decision also gave him, as Chairman of 
the General Council, a mandate to undertake consu ltations on organizational and other aspects of the 
Ministerial Conference.  He further recalled that as a result of his initial phase of consultations, it was 
agreed that this Ministerial Conference only, w ithout establishing a precedent, would be chaired by 
the Minister of the Member providing the General Council Chair, therefore the Minister of Chile.  Six 
principles were established, which applied to bo th the Ministerial Conference itself and to its 
preparation.  These principles were:  (i) the whole approach was based on the principle suggested at 
the May General Council meeting, summed up by "FIT" – Full participation, Inclusiveness and 
Transparency;  (ii) in May, it had been agreed to  hold a regular Ministerial Conference, which should 
not be structured around negotiating processes, but instead provide an opportunity for discussion and 
direction at Ministerial level across all WTO's activities;  (iii) it was important not to overload the agenda of the Ministerial Conference;  (iv) the preparatory work should not divert energy and attention from the DDA;  (v) any issue for action or decision by Ministers proposed by Members 
should be developed by them in line with the norma l consensus principle;  and (vi) related to the 
preceding point, any issue for action or decision by Ministers should be agreed well before the 
Ministerial Conference. 
101. He further stressed that, in relation to th ese principles, there had been a "gentleman's 
agreement" that any delegation pursuing an issue fo r decision, but not achieving consensus by Friday 
16 October – the deadline for inscribing items on the agenda  – would not insist on putting a decision 
on the agenda.  With respect to the structure of the Conference, there would be two Working Sessions, 
running in parallel to the Plenary Session.  The Working Sessions would be aimed at providing an 
interactive forum for Ministers, giving them a platform for discussion under two broad sub-themes:  (i) Review of WTO activities, including the Doha Work Programme for the first day; and (ii) The 
WTO's contribution to recovery, growth and deve lopment for the second day.  These sub-themes were 
designed to be broad enough to accommodate any issues Ministers might wish to raise, and should not be further sub-divided.  After the summer break , he had continued his consultations, taking up a 
number of organizational aspects of the Conference  which were still outstanding, as well as some 
issues related to possible substan tive issues for the consideration of Ministers.  These wide-ranging 
consultations had been very productive, and he w as grateful to delegations for their constructive 
attitude and hard work.  With respect to the Electi on of Officers, he recalled that Ministers at Hong 
Kong had requested the General Council to hold c onsultations with a view to determining the 
Chairperson and three Vice-Chairpersons of the Ministerial Conference who would hold office until 
the end of the Seventh Session.  On the basis of his consultations, he proposed that the General 
Council elect the following presiding officers for the Seventh Session: 
                                                     
 
7 The statement of the Chairman was subs equently circulated as JOB(09)/144.  WT/GC/M/122 
 Page 31 
 
 
  Chairperson: H.E. Mr. Andrés Velasco (Chile) 
Vice-Chairs: H.E. Mrs. Doris Leuthard (Switzerland) 
   H.E. Dr. Mari Elka Pangestu (Indonesia)    H.E. Mr. Rachid Rachid (Egypt). 
 
102. The General Council agreed
 to elect the presiding officers for the Seventh Ministerial 
Conference. 
103. With respect to the attendance of obser vers from Governments and international 
intergovernmental organizations, the Chairman  said that, in his consultations, he had suggested that 
past practice be repeated.  This meant that ob servers at the Hong Kong Ministerial Conference8, both 
Governments and IGOs, would be  invited to the Seventh Ministerial Conference, with the 
understanding that any new requests would be cons idered on a case-by-case basis, in line with the 
Rules of Procedure.  In the light of the converg ence around this suggestion, he invited the General 
Council to agree on the procedure. 
104. The General Council so agreed . 
105. The Chairman  reported that there was wide converg ence with respect to the remaining 
organizational points he had taken up  in his consultations.  For the Plenary Session, in view of the 
limited time available overall and in line with the FIT principle, it would be necessary to reduce the 
length of statements from five to three minutes and th at longer statements be circulated.  As for the 
outcome of the Ministerial Conference, there would be a factual and balanced Chair's summary.  All 
the discussions, both in the Working Sessions and th e Plenary Session, would be on the record.  In 
addition, any action taken by Ministers would be reflect ed in the records of the meeting.  With respect 
to the Working Sessions , the common denominator was to u se one discussant per Working Session, 
with the Director-General for the first session and th e Ministerial Conference Chair for the second.  In 
relation to the Date and Venue of the next Minister ial Conference, Ministers would take a decision at 
this Ministerial Conference to hold the next Ministerial Conference at around the same period in 
2011, with Geneva as the default venue, unless an offer was forthcoming from a Member.  This 
decision would be without prejudice to the need  to hold a Special Session of the Ministerial 
Conference to take decisions regarding the adoptio n and implementation of the results of the Doha 
negotiations, as set out in paragra ph 45 of the Doha Declaration.  With regard to the Negotiating 
Group Chairs, their re-appointment would take place in  the General Council, in the February slate of 
names exercise, as per past practice.  The Chairman  said that his statements from the present meeting 
as well as the May and July meetings would form th e basis for a comprehensive Information Note on 
organizational aspects of the Conference, whic h would be circulated to all delegations. 
106. With regard to the mandated substance for the Conference, he recalled that there were two 
points for possible action set out by Ministers at Hong Kong – TRIPS non-violation complaints and E-Commerce, both of which had been under consid eration in their separate tracks of work.  
Consultations on these issues had been undertaken by the Chair of the TRIPS Council, Mrs. Tan, for 
the first issue, and DDG Singh for the second issue.  Their consultations had indicated a consensus on 
placing these issues on the Proposed Agenda for the Ministerial Conference.  In addition, he noted 
that a third item had been suggested for the Agenda, on the basis of a proposal by 18 Members entitled:  "Strengthening the WTO" (WT/MIN(09)/W /1).  In this connection, he thanked the 
delegation of India, the co-sponsors and all those who had collaborated with India for their hard work.  
Since this Ministerial Conference was aimed at be ing more down-scaled and more cost-effective than 
                                                     
 
8 The list of Observer Governments and IGOs invite d to the Hong Kong Ministerial is in document 
WT/MIN(05)/INF/7/Rev.3 under Categories II and III, respectively. WT/GC/M/122 
Page 32  
 
  previous Conferences, it made sense to reduce th e volume of paper it generated, while maintaining 
and improving, as far as possible, delegations' rapi d access to information and texts.  This meant 
improving the electronic means of distributing docume nts.  In addition, he recalled that, as indicated 
in the first Information Note (WT/MIN(09)/INF/1),  the accreditation and registration of participants 
attending the Ministerial Conference was being undert aken online by Delegation Coordinators.  As he 
had been informed by the Secretariat that many de legations had not yet appointed their Coordinators 
and that where Coordinators had been designated,  only a small number of participants had been 
registered, he urged delegations to complete the re gistration of participants promptly and submit their 
official attendance sheet online by 13 November 2009. 
107. The representative of Angola
 recalled that his delegation had said that the upcoming 
Ministerial Conference, like other Ministerial Conf erences, should produce a Ministerial declaration.  
His delegation had a number of concerns with what the Chairman had reported.  First, Angola wished 
to know what the legal status of the Chairman's summary would be;  whether it would be binding;  whether it would be of a general nature;  and how, in a Chairman's summary which was supposed to 
be balanced, decisions would be taken, for exampl e on issues such as TRIPS or electronic commerce.  
There were many grey areas that would not be easy  for the Chairman to summarize.  Also, there 
would be plenary meetings with statements and two working sessions with interactive discussion, and 
he asked how the Chairman expected to summarize these.  The second concern was that his delegation 
wished to be able to discuss th e Chairman's summary before it  was submitted to Members for 
consensus, in order to assess whether the points addressed by Ministers were properly reflected.  
Alternatively, there could be a general political declaration, like a G-20 communiqué, which was not 
binding and had no influence on the future negot iating agenda.  Angola was willing to have the 
Chairman make a summary that was not binding on Members.  However, if it was to be binding, Members should be allowed to negotiate it. 
108. The representative of India
 fully agreed with the Chairman's  proposals for the organization of 
the Conference.  With respect to the proposal c ontained in the document "Strengthening the WTO" 
(WT/MIN(09)/W/1), his delegation had held wide c onsultations with Members and it was clear that 
the large majority of Members supported the proposal.  He continued to hope that this would receive 
the positive consideration of Ministers at the Minist erial Conference.  His delegation considered the 
WTO to be an efficient multilateral organization whic h provided useful services to its Members and to 
the global trading community.  However, trading cond itions in the world continued to change rapidly.  
For example, MFN trade was becoming an exception rather  than a rule.  In order to remain relevant to 
the global trading system, WTO procedures had to continue to evolve.  The continuing preoccupation 
with the Doha Round could no longe r be cited as an excuse for ignoring the many challenges that 
threatened to erode the WTO's relevance.  The li mited objective of the proposal was to establish a 
process to discuss and, hopefully, to address these challenges, as thoughtful deliberation and dialogue 
were the life blood of an organization like the WTO.  A failure to engage in such a process of renewal 
could be costly in the future.  Therefore, he hoped that these issues could soon be discussed in an 
orderly and constructive manner.  It was possible for the WTO to several things at the same time, and 
such a deliberate process should not distract attenti on from the main task at hand, which was the early 
conclusi0on of the Doha Round.  The process his de legation hoped to institute would be under the 
aegis of the General Council, and therefore Memb ers would have full control over the issues being 
raised for discussion.  Once a decision to instal l such a process was taken, it would be for the 
Members to formulate its terms of reference.  His delegation did not envisage the discussions under 
this deliberation process changing or modifying the fundamental principles underpinning the WTO.  
The emphasis would be more on procedures and mechanisms, with the objective of improving 
transparency, inclusiveness and effi ciency.  These issues involved the interests of all Members, and 
India therefore looked forward to the support and in volvement of the entire membership in taking the 
matter forward.  WT/GC/M/122 
 Page 33 
 
 
  109. The representative of Cuba  commended the Chairman on his efforts to provide clarity about 
the Ministerial Conference.  He wondered what th e status of the proposal made by India and co-
sponsored by 17 other delegations would be at the Conference.  Cuba welcomed the proposal and 
believed that India was driven by the need to find a way to strengthen the WTO, and to ensure that it 
could be as democratic as possible and that in terests of developing countries could be better 
represented.  However, there had been no consensu s on the proposal as it stood to examine it in a 
Ministerial context.  Nevertheless, Cuba was in favour of a genuine and legitimate reform of the 
WTO.  He shared the view that the WTO had to pl ay a central role in the multilateral trading system 
and that it had to be able to respond to the need s arising from the present economic situation.  This 
could be possible if the political will existed to look into matters such as making WTO membership 
universal.  However, the proposal contained some aspects that could give rise to administrative reform 
or changes that did not meet the current needs.  C uba was ready to reform the WTO, but to make it a 
more participatory and democratic institution whic h took into account developing countries' needs.  
Efficiency was an interesting business concept, but it did not always mean inclusiveness and 
transparency, and even when ther e was transparency, this might not give rise to full-fledged 
representation.  Improvement did not always mean de velopment, and the wording in the proposal was 
not clear enough with respect to development.  Similarly, effectiveness was good, but it did not 
necessarily mean solidarity or strengthening the demo cratic aspect of the WTO's work.  Cuba was 
ready to engage in this process, but only when ther e was a basis for a truly full-fledged reform of the 
organization.  In particular, clarity was needed on the format of the process, its principles, objectives 
and agenda.   Once an agenda was established, a work programme would have to be discussed.  To 
initiate any deep reform process, clarity on the di rection of the process, its objectives and guiding 
principles was essential.  Cuba appreciated the effort s and hard work India had put into the proposal, 
but unfortunately was not in a position to c onsider that there was a consensus on it. 
110. The representative of Egypt , on behalf of the African Group , sought clarification as to 
whether or not the proposal was now an agenda ite m for the Seventh Ministerial Conference.  The 
most recent consultations held with the Afri can Group had been on the proposal contained in 
document JOB(09)/135.  As the proposal before the General Council at the present meeting was dated 
16 October and a copy of it had been received over the weekend and circulated to the African Group 
only the previous day, it was still under considerat ion.  Therefore, the African Group was not in a 
position to support it at the present time.  He reitera ted his query about whether the proposal was an 
Agenda item for the Ministerial Conference and whether consensus had to be reached on it by 
16 October for it to be placed on the Agenda.    
111. The representative of Chinese Taipei  thanked the Chairman for his report on the organization 
of the Seventh Ministerial Conference.  He al so thanked the co-sponsors of the communication on 
"Strengthening the WTO" and supported the idea th at language for systemic improvements to the 
WTO be included in the Chair's summary at the c onclusion of the Ministerial Conference.  It was 
important to conduct periodic revi ews of the WTO's functioning, efficiency and transparency, and his 
delegation looked forward to any improvements th at had the effect of strengthening the WTO. 
112. The representative of Hong Kong, China  joined others in thanking the Chairman and the 
Secretariat for their efforts on preparations for the Seventh Ministerial Conference.  Hong Kong, 
China, as one of the 18 co-sponsors of the comm unication on "Strengthening the WTO" was also 
grateful to India for its efforts in co-ordinating a nd taking forward the submission.  The benefits of the 
multilateral trading system and the central role pl ayed by the WTO in this respect needed no 
elaboration.  However, in order to ensure that the system, which had so far functioned well, could 
keep up with the rapid changes in the global econom ic environment, continuo us improvements had to 
be sought.  Ways to improve the functioning, effi ciency, inclusiveness and transparency of the WTO 
had to be sought in order to ensure that the organi zation maintained its life and vigour.  It was in this 
context that his delegation had co-sponsored this  submission proposing that Members collectively 
engage in a process to review the existing opera tion of the organisation and consider possible WT/GC/M/122 
Page 34  
 
  improvements, whether in the areas of rule-making,  regular monitoring, the operation of committees, 
or any others that were relevant.  In securing a ma ndate from Ministers, such a review could be given 
the necessary political impetus.  Hong Kong, China re mained fully supportive of the inclusion of the 
proposed text in the Chair's summary of the Seve nth Ministerial Conference and looked forward to 
working closely with other Members in carrying out the subsequent review.  His delegation hoped 
that other Members agreed with this view. 
113. The representative of Australia
 congratulated the Chairman fo r his efforts in organizing the 
Ministerial Conference.  India had taken a responsib le approach in putting together its proposal, of 
which Australia was a co-sponsor.  The proposal  was a non-prescriptive one which, as Hong Kong, 
China had said, provided for political impetus to th e process of ongoing reform in the context of the 
WTO.  This was commendable.  The WTO was alr eady an efficient and effective international 
organization, but there was no reason to believe that  it could not do with some further improvement.  
It was not clear to his delegation what the concer ns of others were.  Not achieving consensus on the 
proposal provided a clear message that the proposal went too far, and this made it difficult to be 
confident that the organization was capable of improving itself and going through a process of self-
reflection.  This would be a particularly regretta ble situation given the context in which the WTO and 
other international institutions a nd organizations were.  The question about the Doha Round in this 
respect was a red herring.  No country had been more supportive and had pushed harder for an early 
conclusion of the Doha Round.  Claiming that Minist ers could not endorse, in very general terms, a 
concept of pursuing some form of internal review which could lead to improvements was not credible.  
Australia was comfortable with this proposal rema ining alongside the concept of an early, rapid, 
substantive and developm ent-friendly conclusion of the Doha Round. 
114. The representative of Ecuador  thanked India for its hard work on the proposal, and stressed 
the importance of consensus in this respect.  He re called that his delegation had worked closely with 
India on several other issues of interest to the or ganization, both within the agricultural G-20 as well 
as on IP issues or the relationship between the TRIPS Agreement and the CBD and other issues, and 
that it had a close relationship with India on all these issues.  However, Ecuador was greatly 
concerned about the way the proposal had been  presented.  His delegation had received it on 
16 October, and there had been a lack of informa tion about its objectives and the intention to include 
it on the forthcoming Ministerial agenda. This did no t seem to be consistent with the principle of 
transparency set out in the proposal.  Ecuador also  had difficulties with this "blank check" approach, 
in particular when the proposal was meant to e nhance transparency in the organization and improve 
inclusiveness.  Therefore, his delegation was not in a position to support consensus on this issue and 
agreed with the points made by Cuba  in this respect.  He also reca lled that the gentlemen's agreement 
provided that there should be consensus on an i ssue before it was placed on the agenda of the 
Ministerial Conference, and this was not the case.  With a view to involving the whole membership in 
systemic enhancements of the multilateral trading system, Ecuador was prepared to continue to 
discuss this issue at the most appropriate time.  
115. The representative of China  thanked the Chairman for his e fforts in the preparation of the 
Ministerial Conference.  As a co-sponsor of th e proposal under discussion, China associated itself 
with the statement by India.  In the face of th e rapidly-changing world trade environment, it was 
necessary to initiate a process of discussion in the General Council on ways to preserve and 
strengthen the relevance of the WTO, particularly  in making it more development-friendly.  This 
process should remain transparent, inclusive and con sensus-driven, so that every Member would have 
a sense of ownership.  His delegation looked fo rward to the support and engagement of the 
membership on this matter. 
116. The representative of Honduras  welcomed India's proposal and considered positively the idea 
of establishing a process under the auspices of th e General Council to review and discuss the 
operation, efficiency, inclusiveness and transparency of the organization.  His delegation shared the  WT/GC/M/122 
 Page 35 
 
 
  concerns expressed in the document and hoped that c onsensus could be achieved, so that a process of 
positive discussion that would benefit all Members could be undertaken. 
117. The representative of Bolivia  said that in general, India's proposal was interesting, and there 
was a need to improve various aspects of the multilateral trading system.  However, the upcoming Ministerial Conference was not the best venue to address this issue, nor was it the most appropriate 
time.  Her delegation's preliminary comments, sinc e the proposal had not yet been analyzed in her 
capital, were that the proposal was too open and subj ect to broad interpretation, which was not what 
the organization needed at the current time.  Add itionally, small delegations like Bolivia did not have 
the necessary resources to address all the issues currently under negotiation, and discussions on new 
issues would further burden the agenda.  Finally, sh e stressed that the gentlemen's agreement on the 
Ministerial agenda had to be respected, particularly since the meeting was fast approaching. 
118. The representative of Mexico
 recalled that his delegation was one of the co-sponsors of the 
proposal and hoped that other delegations, such as Ec uador, realized that the proposal was aimed at 
improving the system.  There were three areas in th e system:  First, the negotiations, and in this 
respect he hoped for a swift conclusion of the Doha Round;  the second was the dispute settlement 
system, which was seen by all as an aspect of the multilateral trading system that had been 
successfully maintained despite the crisis and the rise in protectioni sm;  the third was the institutional 
structure of the organization, which represented in  itself a means to preserve the multilateral trading 
system.  In the past, there had been various a ttempts to enhance the WTO – for example, the 
submission by the Warwick Commission, and Mexico be lieved it was the time to look in further detail 
at how to strengthen the WTO.  He wished to reas sure those delegations who had said that this could 
represent a blank check that this was not the case.  What the proponents were trying to do was to 
engage in discussions among all Members with a vi ew to enhancing the ins titution and the multilateral 
system to the benefit of all. 
119. The representative of Switzerland  recalled that his delegation was one of the co-sponsors of 
the proposal, which had been made to re-energize the WTO. 
120. The representative of Uruguay  recalled that his delegation had been one of the first to support 
India's proposal.  The present debate was procedural rather than substantive, and he wished to share 
his experience regarding the way this document had been created.  He recalled that the submission 
had come from a proposal from India concerning modifications to procedures in certain working 
groups, which had been discussed and which Uru guay had welcomed.  Since the proposal had 
required further time and debate, India had ri ghtly called upon the group of countries who had 
expressed their general support for the submission to see how to move these issues forward.  Since 
then, an interesting format had started to take sh ape, which was not clear-cut between developed and 
developing Members.  The group that had emerge d included Members from all regions and of all 
sizes who had came together to look at how this pr ocedure could be improved.   A debate had started 
to take place and the delegations involved had agreed that there was a need to reflect on this issue at 
the Ministerial Conference.  This did not mean seeking an authorization from Ministers, but rather 
having the political opportunity to achieve ownershi p of this process and of the organization as a 
whole.  India's proposal went in that direction.  It was intended to ensure that Ministers could take more ownership of the institution.  The proposal di d not seek to launch a process of reform of the 
system as such, but rather to begin an analysis w ith the aim of improving the transparency, efficiency 
and operation of the organization.  Uruguay would no t propose a reform at the current delicate time, 
but would like to look at the reforms that could be supported by all.  In addition, the proposal was 
positive because it could generate further proposals a nd inputs from the Director-General and other 
Members.  It could be an excellent starting point for this process, to be carried out on the basis of 
consensus, to begin at a Ministerial Conference.  It  could then be reviewed at subsequent Ministerial 
Conferences, thereby giving Members time to see in a step-by-step way what type of changes they 
wished to see in the system.  He regretted that for procedural reasons the proposal was not receiving WT/GC/M/122 
Page 36  
 
  the merit it deserved, and called on those delegations  who had concerns to come to some agreement 
on the proposal to enable it to go forward.  This w ould give Members the possibility to achieve better 
ownership of the organization and would enable th e Ministerial Conference to spark a debate on the 
best way to improve the operational structure of the organization. 
121. The representative of Brazil
 congratulated the Chairman on the outcome of his consultations 
regarding arrangements for the Ministerial Conference.  In relation to the proposal presented by India, 
although Brazil was not an early co-sponsor, it had b een convinced of its merit.  India had clearly 
indicated its objectives in forming the proposal, na mely transparency, incl usiveness and efficiency, 
which were points shared by all.  Brazil, in particular, placed high importance on the reassurances 
provided by India regarding the scope of the pro posal, which would be focussed on procedures and 
mechanisms and was not aimed at affecting the f undamental principles of the WTO.  He regretted 
that, at the present juncture, it had not been possi ble to find consensus among Members, but hoped 
that with further consultations an agreement could be reached.  
122. The representative of New Zealand  joined other delegations in thanking the Chairman for his 
work in organizing the Seventh Ministerial Conferen ce.  He expressed New Zealand's support for the 
proposal by India and associated his delegation with the statement by India and the other co-sponsors. 
123. The representative of th e European Communities  thanked the Chairman and the Secretariat 
for their work and the extensive consultations that had been carried out in preparation for the Seventh 
Ministerial Conference, and supported the elemen ts outlined in terms of the management and 
organization of the Conference.  In addition, he asso ciated his delegation with the statement by India 
regarding the proposal co-sponsored by 18 Member s, including the European Communities.  His 
delegation was not of the view that the WTO was fundamentally flawed, but that like any other 
institution it was capable of further improvement to its functioning, efficiency and transparency in 
order to remain relevant in a rapidly changing gl obal economy.  This was why the EC had decided to 
support the proposal.   It was natural for the organi zation to carry out some self-reflection, and his 
delegation therefore saw merit in the proposal being adopted by Ministers.  The proposal was a 
modest one.  His delegation would not have supported any initiative to fundamentally restructure or 
reform the WTO.  The emphasis was on practical improvements to efficiency, transparency and the 
functioning of WTO committees, and this should not be  too controversial.  It was regrettable that 
some of the delegations that had been critical and the least supportive of the proposal at the present meeting were often the same delega tions who in other respects tended to be the most critical of the 
way the WTO functioned.  He hoped that, after having  listened to the explanations by India, Uruguay, 
Mexico and others at the present meeting, those de legations who had not sup ported the proposal could 
be persuaded to do so soon.  No  delegation liked to be taken by surprise, and there was a legitimate 
concern that time was needed to  examine the proposal.  He hoped there would still be time to further 
discuss the merits of this proposal so that a c onsensus could be achieved within the appropriate 
timeframe. 
124. The representative of Turkey
 thanked India for the proposal, which his delegation had 
decided to co-sponsor and considered timely, ahea d of the Seventh Ministerial Conference.  He 
recalled that his delegation, on various occasions, ha d expressed its wish to see the WTO evolve and 
transform as other UN agencies had done, so as to meet  the challenges of the times.  This required full 
engagement by the whole membership and, in this  regard, he hoped that the proposal would receive 
broad support.  It was time that Members discussed  ways to make the organization more effective, 
and this exercise should also include work after the conclusion of the Doha Round.  As India had 
explained, the proposal was not to seek to overhaul  the whole system, but rather to create a process 
that would enable Members to discuss and review the issues regarding process and mechanism that 
were already of concern, with the primary obj ective of. improving transparency, inclusiveness and 
efficiency.  The proposal was a valid one that woul d pave the way for an effective and transparent 
organization through improvements c onceived in periodic discussions.  WT/GC/M/122 
 Page 37 
 
 
  125. The representative of Nicaragua  recalled that Egypt had raised a question with respect to 
India's proposal that had not yet been answered.  Th e debate on the proposal had shown that there was 
no consensus on it, and she wondered how the sixth principle mentioned by the Chairman in his 
statement would be applied.  She also noted th at one of the co-sponsors had recognized that the 
proposal had not yet been fully discussed and that  Uruguay had hoped that some changes could be 
made so that Members could have more ownership of the work and initiatives of the organization, 
which her delegation fully shared.  She believed that work had to st art with the proposal which was on 
the table, and that for Members to take ownership,  further consultations woul d be required, including 
possibly finding language that c ould accommodate all delegations' con cerns.  This ha d unfortunately 
not happened with respect to the proposal. 
126. The representative of the Dominican Republic  welcomed the proposal, but agreed with the 
concerns expressed by Ecuador about the lack of a search for consensus, so that from the beginning 
the proposal could be inclusive and transparent.  His delegation was in any case convinced by the 
arguments made by Uruguay and by the guarantee s given by Mexico, and therefore supported the 
proposal. 
127. The representative of the Bolivarian Republic of Venezuela  thanked the Chairman for the 
information provided on the Ministerial Conference.  With respect to India's proposal, his delegation had always considered India a leader for devel oping countries and was convinced that the proposal, 
for the very reason that it had come from India, had been made in good faith.  He did not agree with the statement that a group of developing countries that were usually asking for change in the WTO 
was now dissenting on a proposal aimed at reforms.  These countries, including his own, were still in 
favour of change.  However, it s hould not be forgotten that the R ound had to be a development Round 
and that the institution should be reformed so that  it could become more transparent, democratic, 
inclusive and participatory a nd could better promote fair trade.  The proposal was entitled 
"Strengthening the WTO", which was something with which everyone agreed.  However, he could not 
see any reference to strengthening the WTO in the text  of the proposal.  It had been circulated as a 
Ministerial document but there had not yet been the necessary consultations on it.  With only six 
weeks before the Ministerial Conference, he asked if there would be time to thoroughly discuss it, and whether there would be sufficient time for all Members to submit the proposal to their capitals. 
128. On the substance of the proposal, it read that "the WTO needs to periodically engage in a 
process of review of its functioning, efficiency and transparency and consider systemic improvements, as appropriate."  It also referred to "... an appropriate deliberative process to review the 
organization’s functioning, efficiency and transpar ency and consider possible improvements, while 
bearing in mind the high priority we attach to the successful conclusion of the DDA negotiations."  
This text was very general, broad and open.  From it one could argue that everything needed 
reforming, or that the reform would be a perm anent process.  He wondered how long the reform 
would be and what exactly was going to be reformed .  He asked whether it would be the Green Room, 
or the accession process, as th e Informal Group of Developing Countries had proposed, or the 
consensus requirement, or the meetings behind closed  doors, or the surprise factor.  He further asked 
how Members would determine what would actually be reformed.  This was a very delicate matter 
which required careful examination.  He recalled the gentlemen's agreement and stressed that the 
Ministerial Conference should produce the best possible results.  He also recalled that the Ministerial 
Conference would not be linked to the negotiations and that his delegation had already expressed its 
discomfort with India's proposal in a meeting with the Chairman the previous day.  There was clear 
evidence that there was no consensu s on the proposal.  His delegation would be willing to discuss the 
subject of reforms, but with clear rules, a defined mandate and a clear scope and timeline. 
129. The representative of South Africa
 said his delegation's support for the proposal had been a 
spontaneous reaction to what it considered a very co nstructive initiative.  He complimented the work 
undertaken by India and the leadership it had provide d on this issue.  It was not an easy task to WT/GC/M/122 
Page 38  
 
  undertake a project of this kind, which required much determination, but it was the right thing to do.  
The proposal opened up the political space for a real de bate on issues that were hard to improve – the 
functioning and efficiency of the organization and many of the issues that were of concern to several Members over the years.  The debate on accessions at the present meeting and the various issues at 
institutional level that could help improve the acce ssion process was the kind of debate the proposal 
hoped to initiate at Ministerial level.  The pr oposal did not prejudge what issues needed to be 
addressed, as these would have to be discussed and sub sequently identified.  He recognized that in a 
discussion there were always different views, but this  was the nature of democracy.  He appealed to 
Members to seize the opportunity to begin a process in good faith to improve the organization, its 
efficiency and functioning .  The Ministerial Conf erence offered a good opportunity to launch such a 
process. 
130. The representative of Canada
 supported the structure of the Ministerial Conference outlined 
by the Chairman.  With respect to the proposal entitled "Strengthening of the WTO", Canada was 
pleased to co-sponsor this document which had been  initially advanced by India and subsequently 
supported by a wide cross-section of developed an d developing-country Members.  It would be 
disappointing if consensus could not be reached  on what was a very practical and potentially 
beneficial proposal.  Canada hoped that the few delegations that had expressed reservations could 
reconsider their position and support the proposal .  A discussion on strengthening the WTO would be 
appropriate at the Seventh Ministerial Conference,  which was aimed at enhancing and improving the 
functioning of the multilateral trading system.  He  encouraged Members to  assess the proposal based 
on what was written in it rather than viewing it as  a blank cheque, and hoped the process could be 
moved forward.   
131. The representative of Cuba  said his country wished to react to the statement that there was a 
lack of consistency in some Members who said one thing and did another.  While Cuba was 
convinced of the genuine effort on the part of I ndia and other developing countries co-sponsoring the 
proposal, it wondered whether some other Members we re trying to distract public attention from the 
lack of genuine commitment to r eaching the development objectives set  out in the Doha Development 
Agenda.  He also wished to clarify that Cuba did not only disagree about procedural matters with respect to the proposal, but also about its substa nce.  The proposal had positive elements but was a 
long way from enabling the achievement of genuine re form of the organization.  The proposal listed 
principles such as efficiency, effectiveness and tran sparency.  However, in Cuba's view, there were 
other fundamental principles which were missing.  First, there was no mention in the document of the 
importance of inclusiveness to strengthen the organi zation's work.  Second, there was a need for full 
participation in the work of the organization.  Th ird, there was a need to improve and strengthen the 
development and rights-based approach in the activi ties of the organization.  Fourth, social justice 
should be improved.  Also, there was no refere nce to how to address non-discrimination in the 
organization's activities.  The principle of solidarity  was also a very important one, particularly to 
developing and least-developed countries.  How to improve universality should be considered at three 
levels:  universality of the membership of the orga nization, universality in the activities of the various 
fora of debate and negotiations of the organizations, and the universality in the decision-making 
process, which should reaffirm the importance of  consensus for the adoption of decisions.  
Furthermore, the democratic nature of the or ganization and the accountability and follow up of the 
decisions taken should be strengthened.   
132. The representative of Pakistan
 thanked the Chairman for his efforts on arrangements for the 
Seventh Ministerial Conference.  With respect to India's proposal, Pakistan believed it was looking to 
increase the WTO's resilience and capacity to cope with real-world issues by evolving processes and 
procedures in response to the challenges, hence the need for improvements in transparency and 
efficiency.  Pakistan was therefore in agreemen t with the proposal's objectives.  However, it hoped 
that the deliberative process through which this was to be achieved would also be inclusive and  WT/GC/M/122 
 Page 39 
 
 
  transparent, and would draw the parameters of  the processes in a manner that would avoid any 
fundamental modification of WTO principles.  
133. The representative of India  said the discussion at the present meeting had been both 
instructive and constructive.  He wished to especi ally thank those Members who were not yet fully 
convinced that the proposal merited Ministerial attention at the present time, and was grateful to them 
for expressing their confidence in his delegation's bona fides.  No delegation had said that what India 
was trying to do was wrong and that it should desist .  Two points had been made in the discussion.  
One was that the process to which the proposal ha d been submitted had been summary, pre-emptory 
and had not allowed the kind of discu ssion and debate to garner the complete support of all Members.  
The second issue which concerned a number of Members was that the proposal sought to provide a 
"carte blanche" for including all kinds of proposal s inside the WTO, which could distort the balance 
of rights and obligations of Members.  These rema rks should not be summarily dismissed, and he 
wished to provide some clarification.  As far as th e pre-emptoriness of the proposal was concerned, he 
recalled that in the month of June 2009, India had introduced a set of five proposals in the General 
Council.  At that time, wide consultations with almost all Members, including all the developing-
country groups, had been held.  The general fee dback from these consultations had been that the 
proposals contained good ideas, but that time was n eeded to discuss them and deliberate on them in 
consultation with capitals.  In Oc tober, India had been approached by a number of Members who 
believed the proposals should not just wither away and a new process of trying to keep them on the 
table was needed, and that there should be a delib erative process in the WTO which enabled Members 
to hold a debate on these kinds of issues.  Therefor e, India had worked jointly with other Members to 
create an enabling instrument to facilitate a continui ng dialogue on the ways in which the functioning, 
efficiency and transparency of the WTO could be improved.  Based on these consultations, India had 
written to the Chair of the General Council on 8 Oct ober and the proposal had been circulated.  There 
had also been consultations on the proposal on 13 October, in which a number of Members had been 
present, including Egypt for the African Group.  He reca lled that at this meeting, there had been broad 
support for the proposal, although some Members had felt that more consultations were required.  
Based on the comments received, the proposal had been  fine-tuned and then circulated on 16 October.  
While this process might have been pre-emptory, if  Members believed that the message contained in 
the proposal had some resonance and was vital for the organization, they should work together to take 
this message forward, to imbed it in the WTO and to establish a process where they could discuss and 
deliberate on ways in which the WTO could be improved. 
134. It was legitimate to say that the canvass that was being proposed for this process was wide.  It 
was indeed wide, open-ended and not specific, but it was designed to be like that.  The proposal could be compared to a rough block of marble which would need to be worked on.  If Ministers believed the 
proposal was important and necessary for the WTO, then it would be for Members under the aegis of 
the General Council to provide the specificity it lack ed at present.   Members should then discuss and 
deliberate on what the mechanism should be focusing  on, what the terms of reference should be and 
how the process could be taken forward.  In repl y to the concerns expressed by the Dominican 
Republic, he believed that the process would be incl usive, transparent and would involve the entire 
membership so as to craft a particular specificity . With respect to the doubts expressed by Nicaragua 
and the need for a process that would could clarif y those doubts and difficulties, India would be happy 
to participate in that process.  He suggested that  the General Council Chair could lead that process if 
he deemed it appropriate, or that the process could ta ke place in other forms.  He recognized that the 
process should be taken forward by consensus, a nd that the challenge was how to get to that 
consensus.  He hoped that a proper dialogue could take  place so that consensus could be built to take 
the organization forward.   
135. The representative of Egypt
 wished to clarify that the fo cus of his earlier intervention was 
mainly on the process.  There could have been misi nterpretation that his delegation had concerns on 
the substance and that this might not be consistent with the dema nds of the developing countries.  WT/GC/M/122 
Page 40  
 
  However, it was not the substance he had referred to.  His question related to the FIT principle and to 
whether the process fitted in that principle.  Egyp t had been consulted on the earlier version of the 
proposal contained in Job(09)/135, which was the last  consultation it had had on this issue.  At that 
time, his delegation had mentioned that the pro posal was still under consideration by the African 
Group.  It was difficult for the Group to be faced with a proposal different from the initial one without 
having had a chance to discuss it.  This was a serious issue for the African Group.   
136. The representative of Nicaragua
 thanked India for the clarification.  However, clarifying 
doubts and discussing an issue was not enough, and for the sake of the efficien cy and effectiveness 
that were being sought, time could have been sav ed if the co-sponsors of the proposal had shown an 
openness to include in the document some lang uage to accommodate the concerns raised by 
Members.  It was important to seek ways to move forward in a concrete fashion. 
137. The Chairman , in response to the question raised by Angola, pointed out that the Chairman's 
summary at the Ministerial Conference would not be  a legal text, nor a binding one, and would be 
done under the responsibility of the Chair of the Conference.  The summary would reflect what took place in the Conference and there would be no further implications.  With regard to the proposal by 
India on strengthening the WTO, and in response to Egypt's question, the Chairman recalled the 
gentlemen's agreement that items for the Ministerial Agenda needed to be ag reed beforehand.  That 
agreement was in force and would continue to be ap plied.  However, this did not mean that Members 
could not move forward and reach consensus on so me issues, which was what had happened at the 
present meeting.  He noted that there had been cl ear signals on the need to review and analyse the 
functioning of the WTO.  Institutions, where they were not fit for purpose, ran the risk of becoming 
irrelevant, and there was a need to ensure that the WTO remained relevant.  Therefore, Members 
would need to continue to analyse and discuss the ope ration of the organization and, if appropriate, to 
engage in further consultations.  However, he pointed out that there was no consensus at present on 
the text as it had been submitted.  He assured Memb ers that he would facilitate the process if there 
was a desire to improve the text. 
138. The representative of Argentina
 recalled that the Chairman had said the deadline for the 
approval of matters to be addressed at the Ministerial Conference was the previous Friday.  Therefore, if the deadline had passed, one could not now cha nge the goal posts.  Regarding the consultations 
mentioned by the Chairman, he asked who would carry these out.  His delegation was somewhat confused about these issues. 
139. The representative of Cuba
 said his delegation would not be opposed to any consultation 
efforts, but that there was no text to serve as a basis for consultations.  What was needed were 
principles to enable a genuinely democratic reform , and this was not the case at the current time.  
Cuba did not wish to be part of a process where li mitations were posed by the text and wished to 
avoid small groups of delegations agreeing on some te xt and forcing the rest of the Members to agree 
on it.  Cuba wished to be part of a participat ory process.  If there was a will to start from the 
beginning again and to listen to all views, Cuba w ould be ready to participate, but this was not the 
case with the text currently on the table. 
140. The General Council took note  of the Chairman's statement and of the statements by 
delegations. 
(d) Trust fund to facilitate th e participation of LDCs 
141. Mrs. Swärd Capra (Sweden), Chairperson of the Budget Committee,  drew the Council's 
attention to the recommendation of the Budget Comm ittee regarding the establishment of a trust fund 
to facilitate the participation of least-developed coun tries in the Seventh Ministerial Conference.  In 
paragraph 25 of its report in WT/BFA/112, the Committee recommended to the General Council that  WT/GC/M/122 
 Page 41 
 
 
  it urge interested donors to indicate to the Secretar iat as soon as possible the level of financial support 
they were prepared to provide. 
142. The General Council took note  of the statement, approved  the Budget Committee's specific 
recommendation in paragraph 25 of its re port in document WT/BFA/112, and urged  interested donors 
to indicate to the Secretariat the level of fi nancial support they were prepared to provide. 
7. WTO Pension Plan 
(a) Annual Report of the Management Board for 2008 (WT/L/771) 
143. The Chairman  drew the Council's attention to the a nnual report of the Management Board of 
the WTO Pension Plan for 2008 in WT/L/771, which was submitted to the General Council in 
accordance with Article 5(d) of the Regulations of the WTO Pension Plan.  
144. Mr. Niggli (Switzerland), Chairman of the Management Board , presented the re port, together 
with the corresponding report of the External Auditor.  He pointed out that 2008 had not been an easy 
year for the Pension Plan, nor had it been a happy year for institutional and private investors generally.  The market value of the Plan's assets had plummeted and had been deeply affected during 
the year, and it would have been easy for the Manage ment Board to take decisions it would later have 
come to regret.  At times like these, it was important  to remember that the Plan was for the long term 
and that it would be inappropriate to take radical short-term measure s in order to respond to abrupt 
fluctuations in markets.  The wisdom of the Boar d in not taking any such action had been borne out 
by the fact that the significant drop in the real va lue of the Plan's assets in 2008 had been followed in 
the first nine months of 2009 by a strong recovery.  It was true that the dec line in asset value had been 
largely driven by the Plan's exposure to equities, as had also been the recovery in 2009.  Independent 
of the extreme market movements in 2008, the Management Board had decided in 2008 to undertake 
a fundamental review of the Plan's investment strate gy, which had been in place for five years, with a 
particular focus on its exposure to the global equity  market.  That review was in full swing, and the 
results would be implemented in 2010.  He further explained that the actuarial deficit emerging from 
the 2007 valuation, which had been due entirely to the adoption of new actuarial assumptions 
regarding longevity in particular, had been corrected  as a result of an increase in the normal retirement 
age to 65 and an adjustment of 1.2 percentage point s in the overall contribution rate.  The consulting 
actuary was satisfied that no further action was require d at this stage.  The next regular valuation was 
due on 31 December 2010.  The Management Board ha d also continued to explore ways in which the 
Plan could be operated more efficiently and at less cost to Members and participants alike.  
Reductions in management fees had been achieved, and the Board was now examining ways in which 
in-service death and disability risks could be managed more effectively.  The Board was also 
constantly looking at ways to improve its govern ance capacity.  He expressed the Board's appreciation 
to the External Auditor for his report on the account s of the Plan for 2008 and his related comments 
and recommendations concerning the functioning of the Plan.  Those recommendations had been duly noted, and appropriate measures would be taken with a view to implementing them.  In terms of the 
evolution of the Plan since its inception, the numbe r of active participants had risen from 509 to 716 
on 31 December 2008 and the number of  beneficiaries from zero to 154.  The Management Board had 
held 65 meetings during the same period, and th e Secretariat had produced over 430 documents for 
the Board's consideration.  
145. The representative of the Dominican Republic
 said his delegation had read the report with 
great attention.  It had been struck by the drop in assets by 37 per cent in terms of real yield.  It was 
true that this had not been a normal year because of the crisis, but the report in 2004 had said that 
investment should take on more risks.  This had me ant a concentration more on the short-term which, 
in the casino-like approach that had been prevalent in  the economy in the past few years, had affected 
the future pension plans of the employees of the organi zation.  He wished to draw attention to this, as WT/GC/M/122 
Page 42  
 
  this was not related to trade but to the assets of th e employees of the organization, and more attention 
should be paid to what was happening in the Pens ion Plan.  The Plan should take a less speculative 
approach and perhaps have less yield but more se curity, for example through long-term operations 
and not in terms of shares whose value was daily ch anging in the market and wh ich were very risky in 
terms of future yields. 
146. The Chairman of the Management Board
 welcomed the interest expressed by the Dominican 
Republic.  He stressed that the fundamental purpose of the Plan was to secure the long-term funding 
of pension liabilities and to ensure that short-term  fluctuations, such as those observed in 2008, did 
not jeopardize the capacity of the Plan to meet its  long-term objectives.  Nevertheless, the Board had 
taken the year 2008 very seriously and was no w in the process of completely reviewing the 
investment strategy.  One of the elements being cons idered was the risk factor  of the investments, and 
the Board was still in the process of dealing with that investment review.  He was confident that once 
the exercise was finished, there would be less exposur e to equity – where most of the drop had come 
from – and that the Plan would be in a pos ition to better deal with the risk factor. 
147. The General Council took note  of the statements and of the Annual Report of the 
Management Board for 2008 in document WT/L/771. 
(b) Election of a member and an alternate to the Management Board – Proposal by the Chairman 
of the General Council (WT/GC/W/608) 
148. 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/608, he had i ndicated that one member and one alternate 
previously elected to the Board by the General Co uncil were no longer available to serve, and that it 
was therefore necessary for the Council to decide  on replacements.  Accordingly, in that 
communication he had proposed the name of two re presentatives who had agreed to have their names 
put forward for election, and had invited delega tions to submit any comments they might have 
regarding the proposed nominations  by 16 October.  As he had received no comments, he proposed 
that the General Council elect Mr. Philip Tissot (United Kingdom) to serve as a member and Mr. 
Rodney Neufeld (Canada) to serve as an alternate on the Management Board for the remainder of the 
Board's term, i.e. until May 2011. 
149. The General Council so agreed . 
8. Committee on Budget, Finance and Administration - Report on meeting of October 2009 
(WT/BFA/112) 
150. The Chairman  drew attention to the report of the Budget Committee in document 
WT/BFA/112. 
151. Mrs Swärd Capra  (Sweden), Chairperson of the Committee on Budget, Finance and 
Administration , said that at its meeting in October, the Committee had reviewed the budgetary and 
financial situation of the Secretariat and the extr a-budgetary funds at the end of September.  The 
Committee had then taken note of the progress made on the building project.  The referendum on the de-classification of land for the new building had been  achieved with an approval rate of 62 per cent.  
However, a lawsuit had been filed at the Cantona l Administrative Tribunal requesting the cancellation 
of the referendum.  The construction permit for the intra-muros works had been requested in July, but 
was now pending due to a request to have the CWR listed as an historic monument.  The funds for the 
intra-muros project were scheduled to be voted on 9 December by the Federal Chamber.  She further 
recalled that the Director-General had presented th e Budgetary and Financia l Report as well as the  WT/GC/M/122 
 Page 43 
 
 
  Report on Extra-Budgetary Funds for 2008 to the Committee and had pointed out that the financial 
year 2008 had ended with an overall surplus of CHF 2.8 million.  The Director-General had announced that the budget proposals for the next biennium would include a request to reduce Members' contributions in 2010 by utilizing CH F 2.8 million of the surplus.  The Committee had 
taken note of the reports and recommended to th e General Council the approval of the transfers 
between budgetary sections as outlin ed in paragraphs 36 and 41 of  document WT/BFA/W/181.  The 
Committee further recommended that the General Council approve the audited accounts for 2008.  
Finally, the first president of the French Court of  Audit, Mr Philippe Séguin, had presented the audit 
report for 2008 at the October meeting.  The financ ial accounts of the organization had been certified 
without any reservation.  The external auditors had highlighted a number of improvements, especially 
in areas related to the reporting of the financial situation, human resources and the building project. 
152. The General Council took note
 of the statement, approved  the Budget Committee's specific 
recommendation in paragraph 15 of its re port in document WT/BFA/112, and adopted  the report. 
9. Accession of least-developed countries - Statement by Cambodia 
153. The representative of Cambodia,  speaking under "Other Business " said that WTO accession 
was a core business of the organization.  It ser ved to strengthen the organization through expanded 
membership that approached universality, improve d welfare for acceded countries and strengthened 
the rules-based system.  The accession of least-d eveloped countries was of vital importance for 
several reasons, and over 40 per cent of current acce ssions were LDC accessions.  The integration of 
LDCs into the global economy through WTO membership would significantly contribute to poverty reduction and the attainment of the Millennium Development Goals.  Their accession would also 
serve to improve the image of the WTO as attentiv e and sensitive to the development concerns and 
priorities of the most vulnerable, and would stre ngthen the development aspects of the multilateral 
trading system.  All LDCs commended the Direct or-General and his staff for the Dialogue with 
Acceding LDCs and WTO Members in May 2009.  This had been a commendable exercise in 
transparency.  While th e accession process had delivered good resu lts, there was considerable scope 
for improvement, particularly with regard to LDC a ccessions.  This was why, together with Tanzania 
as coordinator for LDC Members, a Round Table on the Accession of Least-Developed Countries had been convened in Phnom Penh on 28-29 September 2009.   At the conclusion of the Round Table, 
participants had adopted a Round Table Statemen t on the Least-Developed Countries' Accessions 
which, upon the joint request of Cambodia and Tanz ania, had been circulated  as a document of the 
Ministerial Conference (WT/MIN(09)/1), the Ge neral Council (WT/L/769) and the Sub-Committee 
for Least-Developed Countries (WT/COMTD/LDC/16), eight weeks prior to the Ministerial 
Conference.  In this context, he requested that a process be established by the Chairman of the 
General Council  and the Director-General  to consider and act on the proposals contained in the 
Phnom Penh Round Table statement.  He appealed to all Members to constructively engage on the 
subject of LDC accessions.  As a Member, Cambod ia had acceded through ne gotiations pursuant to 
Article XII of the Marrakesh Agreem ent and fully understood what this entailed.  It also believed that 
all Members and the organization needed to act to provide assistance to enable the accession of the 40 
per cent of candidate countries that were LDCs. 
154. The representative of Zambia
 associated her delegation with the statement by Cambodia.  She 
recalled that this was one of the topics that ha d been discussed by the LDC Group in Dar-es-Salaam 
and emphasized the importance of an accelerated  process of accession for LDCs.  Zambia looked 
forward to the Ministerial Conference having a dditional LDCs accede to the WTO and to an 
accelerated process for those that remained under consideration. 
155. The representative of Yemen , speaking as an observer , thanked Cambodia for hosting the 
Round Table meeting and for following up on its outc ome.  As a focal point on accessions for the 
LDC Group, he confirm that the Sixth LDCs Mi nisterial Meeting in Dar-es-Salaam had fully WT/GC/M/122 
Page 44  
 
  supported the statement by Cambodia.  Therefore, by extension, the Ministers in Dar-es-Salaam 
concurred with the request to consider and act on the proposals contained in the statement.  In the 
LDCs' view, particularly acceding LDCs, the most practical manner was through a constructive dialogue, which could hopefully take place before the Ministerial Conference, so that the outcome of such dialogue could be part of the deliberations of  the Conference.  He also hoped that an advanced 
outcome from such a dialogue could be reached, that the Seventh Ministerial Conference would 
review the status of trade Ministers' commit ments on the acceleration and facilitation of LDCs 
accession and that the General Council would also advance on this matter.   
156. The General Council took note
 of the statements. 
10. Statement by the Chairman in connection wi th Administrative Measures for Members 
in arrears 
157. 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.  Among these 
Administrative Measures was a requirement that, at each meeting of the General Council, the 
Chairman of the Committee on Budget, Finance a nd Administration should provide information with 
regard to which Members are under Administ rative Measures in Categories II through IV. 
158. Mrs Swärd Capra  (Sweden), Chairperson of the Committee on Budget, Finance and 
Administration said that the Members under Categories II through IV of the Administrative Measures 
as at 19 October 2009 were as follows:  Grenada a nd Peru in Category II;  Mali, Nicaragua and 
Senegal in Category III;  and Burundi, Central A frican Republic, Chad, Commonwealth of Dominica, 
Côte d'Ivoire, Democratic Republic of Congo, Dji bouti, Gambia, Guinea, Gu inea-Bissau, Mauritania, 
Niger, Republic of Congo, Sierra Leone and Togo in  Category IV.  Paraguay had recently settled its 
arrears and was therefore no longer subject to Ad ministrative Measures.  Senegal had moved from 
Category IV to Category III. 
159. The Chairman  recalled that under the revised Administ rative Measures, he was also required 
at each Council meeting to request those Members in  Categories III and IV of the Measures to inform 
him, before the next meeting of the General Counc il, as to when their payment of arrears might be 
expected.  In keeping with the Administrative Meas ures, he would report on Members' replies to the 
next meeting of the General Council.  Since the Ju ly General Council meeting, he had been informed 
that Paraguay had liquidated its outstanding contributions in arr ears and that Senegal had made 
payments allowing it to be moved from Category IV to Category III. 
160. The representative of Paraguay  said that his country had, after several years, settled its 
financial obligation towards the WTO, which was a reason for satisfaction.  This was a sign of the 
interest and value Paraguay attributed to the work of the WTO and the fundamental role the 
multilateral trading system played in the development policy of the country.  The effort made to settle 
its arrears was also in line with Paraguay's inter est in receiving more technical cooperation from the 
WTO, in particular with respect to the training of  university students.  Such training would have a 
significant impact on the better integration of Paraguay into world trade. 
161. The General Council took note  of the statements. 
__________