RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/OV/M/3
29 January 2001
(01-0469)
Trade Policy Review Body
OVERVIEW OF DEVELOPMENTS IN THE
INTERNATIONAL TRADING ENVIRONMENT
Minutes of the Meeting of 7 December 2000
1. Ambassador Iftekhar Ahmed Chowdhury (Bangl adesh), Chairman of the Trade Policy
Review Body (TPRB), welcomed Members of the TPRB and the Director-General to the Annual
Overview of Developments in the International Trading Environment.  He recalled that the TPRB was
one of the three faces of the General Council, and the TPRM was one side of the WTO trinity, aiming
to ensure improved adherence to WTO principles through peer review and open deliberations.  Themany countries that had been reviewed had profited from the exercise, as had participants.  Of
particular note in 2000 was the increased integration of the development dimension into reviews.
2. Annex 3 of the Marrakesh Agreement required th e TPRB to undertake an annual overview of
developments in the international trading environmen t that were having an impact on the multilateral
trading system.  The overview was to be assisted by  an annual report by the Director-General setting
out major activities of the WTO and highlighting significant policy issues affecting the trading
system.  The Director-General's report (hereafter "Report") had been distributed as WT/TPR/OV/6
and Corr.1, and the Director-General's introductory statement was available in WT/GC/41.
3. The Chairman's own view was that implementation continued to be a major issue for the vast
majority of the Membership.  Despite good intentions to adopt policies fully consistent with WTO
obligations, certain Members were experiencing genuine difficulty, underscoring the need for
technical assistance for developing countries in general and least-developed countries (LDCs) inparticular.  A principal goal was the integration of all players, large and small, into the global trading
system, so that each Member could be a viable trading entity.
4. The Chairman concurred with the Director-General's assessment of the past year as one of
"consolidation and challenge" for the system.  Members had worked to improve an already viable
system, and the TPRM could also be improved to better fulfill its mandated role.  The Chairmanwelcomed the views of delegations on the matter.
5. In their interventions, Members of the TPRB thanked the Director-General for his Report and
statement and welcomed his assessment of the state of the trading system and the challenges ahead.
Members also welcomed the opportunity to conduct such an overview exercise.  Members also
thanked the Chairman for his leadership of the TPRB in the course of the past year.
6. The representative of the Czech Republic concurred with the Report's characterization of the
past year as one of stiff challenge and significant opportunity for the WTO.  Although the year had
been very difficult for the institution, the WTO and its values of open, rules-based trade had proved
their strength and relevance to the rapidly changing economic environment.
7. The WTO had continued to deliver considerable benefits.  Progress had been made, not
through any new global liberalization initiative, but through the implementation of past commitments,WT/TPR/OV/M/3
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measures in favor of LDCs and, very importantly, improved WTO working methods to ensure the full
participation of all Members in the multilateral trading system and the better understanding outside
the WTO of the organization's role in the globalized world economy.
8. Among the challenges for the system identified by his delegation was the more promising
avenues for liberalization at the regional or bilate ral levels.  Although remaining forward-looking, the
WTO had failed to contribute more substantially to the growth of e-commerce and to building
capacity worldwide to ensure access to this new source of welfare.  Most of the concerns relating to
the implementation of the existing agreements had yet to be addressed.  These factors, as well as
others and the prospects of the world economy, called for a consensus on the nature and substance of
a new round of multilateral trade negotiations and its early launch.
9. The Report had a few shortcomings.  With respect to implementation, the impression was
given that a number of WTO agreements contained too many transition periods for transitioneconomies which was not the case.  Furthermore, the criteria used to list certain countries' experience
or measures were unclear and obscured the major developments in respective sectors.  Another
limitation was the fact that only countries that were the subject of Trade Policy Reviews during the
review period were covered.  Furthermore, his delegation considered that the section on the mandated
negotiations was missing a reference to intellectual property rights, notably geographical indications.
10. The representative finally indicated that the ov erview of developments in the international
trading environment was too important for the time allotted of a half day immediately preceding the
annual sessions of the General Council, which already had overloaded agendas.  His delegation was
also of the view that reflection should begin on whether the format of the report was suited to a much
broader debate aimed at fostering greater understanding and support for the WTO among politicians,representatives of civil society and business community.
11. The representative of the Republic of Korea noted the key role played by an open multilateral
trading system to the economic growth of Members.   This role was powerfully underlined during the
recent Asian and emerging markets crisis that counted his country as one of the major victims.
Korea's economic recovery over the last two years had been made possible to a significant degree bythe open markets and continued trade liberalization in the world economy.  His delegation therefore
welcomed the robust growth of world trade in the first half of 2000 and was encouraged by the
progress made in a broad range of activities in the WTO, including the implementation review and the
mandated negotiations.  The Report however rightly warned against complacency.
12. His delegation was in particular concerned with the less than satisfactory progress or lack of
meaningful movement in some of the most prominent areas of collective interest to the WTO
membership.  The launch of a new round of multilateral trade negotiations was a case in point, sincefurther trade liberalization and the development of multilateral rules through a new round of
broad-based negotiations was essential to the sustained economic growth of Members.  His delegation
hoped that the call for an early launch of a new round made by the leaders of major economies, most
recently at the APEC summit meeting in Nove mber, would eventually bear fruit in 2001.
13. His delegation was also concerned with the persistent rise in anti-dumping measures, which
major Members of the WTO continued to maintain against a broad range of products, and which were
increasingly being used by developing countries.  The rise in anti-dumping measures was thus no
longer an issue between the developed and developing countries, but a subject that warranted serious
reflection by the whole membership.  Certain provisions of the Anti-Dumping Agreement lacked
clarity or gave excessive discretion to the investigating authorities, which could lead to abuse ofanti-dumping measures for purposes of protection.  Substantially improving the Anti-Dumping
Agreement was a task the Members needed to carry out expeditiously.WT/TPR/OV/M/3
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14. The proliferation of regional trade agreements (RTAs) was another subject meriting attention.
RTAs had positive functions in terms of facilitating trade liberalization among participating countries
and developing the multilateral trading system.  In consideration of these constructive roles, Korea
had undertaken dialogues with several of its trading partners on the possibility of concluding regional
and bilateral trade agreements.  His delegation however agreed with the Report's assessment that theproliferation of RTAs had negative aspects and that, all in all, the WTO was the most effective forum
for market access agreements or for multilateral frameworks of rules on trade-related measures.
15. Among the other valuable observations on the multilateral trading system in the Report, his
delegation appreciated the in-depth treatment of the difficulties facing LDCs and the suggestions for
possible measures the Members could take to assist them.  His delegation also found the succinct
description of the implications of product regulations and standards very pertinent.
16. The representative of Hungary noted that the outcome of the Seattle Ministerial Conference
was a major setback for the WTO and that 2000 was a very difficult and critical year for the
organization, of consolidation and of healing wounds that were, to a large extent, self-inflicted.  His
delegation largely shared the Report's evaluation that the current situation of the WTO was generally
satisfactory, although a number of challenges lay ahead.
17. The Report provided a needed and unique opportunity for WTO Members to collectively take
stock of developments in a given year, with the help of the Director-General, to determine whether an
adjustment was needed to the organization's course .  The Director-General, as the custodian of the
multilateral trading system, had the responsibility and privilege to advise WTO Members on his view
of developments and the most important issues confronting the membership, on the basis of which the
Membership could openly discuss issues and decide on action, if any.  His delegation considered theReport to be somewhat lean on the aspect of evaluation and advice, and encouraged the Director-
General to be more provocative in the coming y ears, confronting the membership with the problems
of the multilateral trading system and the bad "habits" of the members.
18. His delegation welcomed the continuation of the world economic recovery in 2000 from the
downturn in 1997-98.  The growth of world trade in 2000 was expected to reach 10%, matching itsbest annual performance of the last decade.  His delegation also welcomed the encouraging world
economic outlook.  Despite these positive trends, the WTO should not be complacent and let good
news erode the efforts and desire to launch a broad-based round of multilateral negotiations.  As the
IMF had warned, there were significant risks and uncertainties in the world economy and new
liberalization efforts would be useful if imbalances were to unwind in a disorderly manner.  His
delegation shared the view expressed in paragraph 5 of the Report, that the WTO should act as a
check against protectionist 'solutions' to domestic crises.  A decision by WTO Members to move theprocess of multilateral liberalization forward in th e framework of a broad new round would strengthen
this important function and would also give the right signal to economic actors.
19. Economic actors also demanded that the WTO remain forward-looking and responsive to
changes in the world economy.  In this regard, the Report noted the agreements on financial services
and basic telecoms concluded in 1997.  His delegation attached great importance to this feature of theorganization, which explained their support for the WTO's work programme on electronic commerce
and the start of negotiations on investment, competition policy and trade facilitation.
20. His delegation shared the view expressed in the Report that the accession process had the
important consequence of inducing and locking-in domestic reform in new Members.  This lock-in
effect was of particular significance for transition economies, who changed their whole economicapproach/regime in a historically very short period of time.  Against this background, his delegation
urged WTO Members to do their utmost to move forward on the accession of transition economies
under commercially viable terms that would facilitate the smooth completion of the transition process.WT/TPR/OV/M/3
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21. The section of the Report on RTAs failed to address the stalemate that had emerged in the
Committee on Regional Trade Agreements (CRTA) .  Some 220 RTAs had been notified to the
GATT/WTO, the examination of 86 RTAs was under way in the CRTA, but not a single full report
had been adopted in the six years of the Committee's existence.  It was absurd, for example, that the
examination of Hungary's Europe Agreement should take almost twice as much time as thenegotiations of the agreement itself.  This was an issue of great importance, which needed focus and
adequate attention by the Membership.  His delegation considered that the examinations under way
should be expeditiously finalized, to be followed by efforts to clarify the interpretation of the relevant
provisions of the WTO, as part of the agenda of the new round of negotiations.
22. The Report's strong focus on LDCs was welcome.  His delegation agreed that LDCs should
not be only advised to open their markets, but that all Members should take concrete steps to improve
market access by removing all quotas and by eliminating tariffs on products originating in LDCs.Such action was in keeping with the area of operation of the WTO and was the most important
contribution the WTO could make to the noble cause of poverty reduction.  Hungary had provided
duty and quota-free treatment for over twenty  years and urged others to follow suit.
23. His delegation found certain elements missing in the Report.  For example, the section on the
mandated negotiations was missing a reference to those required on intellectual property rights,notably geographical indications.  There was disagreement among the Members on the existence of a
mandate for extending the scope of Article 23 protection, but no disagreement applied to the mandate
in Article 23:4 for the establishment of a multilateral register for geographical indications.  Another
example, in the section on dispute settlement, was th e missing reference to the need for clarification
of the relationship between Articles 21.5 and 22 of the DSU.  This was still outstanding in spite of thepriority given to a solution by the General Council in 1999.  This issue had serious implications on the
multilateral character of the dispute settlement mechanism.
24. His delegation appreciated the efforts of the Director-General and the Secretariat to improve
the image and outreach activities of the WTO.  The best guarantee for this desired improvement was
tangible success achieved in the main area of responsibility of the organization, namely in preservingand improving the rule-based multilateral trading system and in moving trade liberalization forward.
The launching of a new round was necessary to achieve this needed success.
25. The representative of Hong Kong, China noted the usefulness of conducting an overview
exercise each year so that Members could stand back from their daily business and reflect on the
direction to be given to the system.  To stimulate a thought-provoking debate on the issue, a franker
and more provocative assessment of the situation of  the system in the Annual Report of the Director-
General would be particularly useful, along the lines of the opening statement.
26. Four major areas were of particular note to his delegation.  The Report noted the slow pace of
integration of the textiles and clothing sector into GATT 1994, market access having been improved
mainly by the application of growth rates to quotas.  His delegation would however have liked to have
seen a franker and fuller treatment of the effect of the glacial pace of integration of the sector into the
rules of the organization's overall progress.  The dissatisfaction of developing countries withimplementation in this area was among the primary reasons for the lack of agreement on a broader
programme of further trade liberalization in the WTO.  The demandeurs  of a new round had the key
to unlock the door to a new round through more progressive implementation but had not used it
because they were still in thrall to narrow domestic producer interests, stalling for as long as possible
time before having to face market forces, at considerable cost to consumers.
27. Regarding industrial tariffs, his delegation considered that the Report could have noted the
gains to further liberalization in this area.  The theo ry that trade barriers were mainly within borders
rather than at borders was certainly a great exaggeration, which overlooked substantial tariff barriersWT/TPR/OV/M/3
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in key sectors.  In this regard, the Report could have made a reference to Article XXVIII bis of GATT
1994, which states that negotiations directed to the substantial reduction of tariffs can be sponsored
from time to time.
28. Regarding anti-dumping measures, the Report noted the 42% rise in the number of initiations
in 1999 from 1998, although the use of anti-dumping had been more moderate in 2000 to date, as wellas the 1,119 final anti-dumping measures currently in place.  His delegation viewed such measures as
equivalent to the unbinding of tariffs, the scale of which was truly alarmi ng.  Article VI of GATT
1994 defined dumping as little more than a difference in pricing between two markets, an everyday
commercial practice for which there could be countless innocent explanations.  Factors such as the
exporter's market being closed, predatory intent or the interests of consumers were not mentioned.
His delegation recognized that WTO Members had the right to impose anti-dumping measures,
although Article VI was based on concepts that were  out of date and out of tune with the modern
business environment.  Anti-dumping procedures imposed enormous burdens on small and medium-
sized exporting companies all over the world, which they could not assume.  The misery was building
up and would one day surely tilt towards reform, hopefully sooner rather than later.
29. Regarding RTAs, the Report stated correctly that the term "regional" was increasingly a
misnomer.  His delegation accepted the reality of such agreements.  His delegation could supportRTAs whose goals were consistent with WTO provisions and which contributed to multilateral trade
liberalization.  The evidence was however clear that the combination of RTAs with external barriers
such as quotas and high tariffs led to serious trade di version.  The term "preferential" to qualify rules
of origin was also a misnomer, since such rules did not determine or change the origin of products,
but acted as preference-qualifying local content rules.  A high threshold combined with high externalbarriers distorted investment and could be lethal to exports of third country non-parties.  His
delegation supported a work programme in this area.  His delegation also viewed the deadlock on
examinations in the CRTA as attributable to the sorry state of the rules.  His delegation strongly
endorsed the thought in paragraph 112 of the Report that in a globalizing world economy, only the
WTO can provide a fair framework of rules and a truly level playing field.  Regionalism could insome cases be preventing developing countries in particular from enjoying all the benefits of their
comparative advantage, which would be apparent in a more truly globalized trading environment.
30. In conclusion, his delegation found the facts in the Report helpful to understanding trends.
For the future, his delegation encouraged a bolder and plainer statement of where the Members were
undermining or inhibiting the development of a rule-based multilateral trading system.
31. The representative of Uruguay noted the difficulty of the past year in the aftermath of the
Seattle Ministerial Conference, with both challenges and opportunities.  Positive elements included
the launch of the mandated negotiations on agriculture and services on schedule, and the
establishment of a mechanism to deal with issues related to the implementation of the Uruguay Round
Agreements.  A lot however remained to be done to develop and build confidence in the WTO and the
multilateral trade rules.
32. In particular, the Members faced the challenge of achieving significant progress in the
negotiations on agriculture and services.  The results of the review meetings in March 2001 were
crucial in terms of considering a broader agenda for negotiations and reaching consensus it at the
political and technical levels.  Uruguay had a clear and constructive position in this respect,
reaffirmed by the President of Uruguay to the Director-General a few days before.
33. Although the Report contained estimates of 10% growth in world trade for 2000, matching
the highest level achieved in the past decade, not all Members were experiencing the associated
benefits.  For example, exports of agricultural products from developing countries fell by 5% in 1999.
Uruguay, 60% of whose exports are agricultural  products, was among those countries which saw aWT/TPR/OV/M/3
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decline in exports in 1999.  Consequently, as a Member of the WTO, Uruguay considered significant
advances and progress to be essential in the negotiations on agriculture.
34. Accession was another issue of particular relevance to his delegation.  The number of
Members of the WTO was increasing and many countries were in the process of acceding.
Strengthening the multilateral trading system also  implied the accession of new Members to the
WTO's rules and regulations and this was an issue that should be given appropriate consideration.
Dispute settlement was another issue of special relevance to Uruguay, as the proper functioning and
strengthening of the system were central elements of multilateralism, as the increasing recourse to the
system had shown.  His delegation considered the basis of the system should always be preserved and,
where necessary, improved.
35. The representative of Paraguay noted the importance of the overview exercise in terms of
improving the functioning of the WTO, with a view to assist developing countries further.  The rise in
world trade in 1999 and 2000 reflected mainly developments in industrialized countries, since the
trade of developing countries whose production was mainly agricultural was adversely affected by the
closed conditions in markets in the first world.  Agricultural producers in these markets had received
higher levels of subsidies and domestic support.  Barriers to trade for products from developing
countries consisted not only of customs barriers, but also other barriers to trade such as new, morestringent sanitary and phytosanitary measures which made entry to the market increasingly difficult.
36. The objective of the WTO was liberalization and open multilateral trade based on non-
discrimination through the most-favoured-nation prin ciple.  Obstacles to opening up global markets at
the multilateral level had made RTAs increasingly attractive to WTO Members intent upon progress
and development of trade liberalization.  Every Member of the WTO, with only six exceptions, was apartner in at least one RTA, as was shown in the document "Mapping of Regional Trade Agreements"
(WT/REG/W/41) of 11 October 2000.  RTAs were also developing between regions, as Mercosur, to
which his country belonged, was negotiating with the European Union and seeking understandings
with the Andean Community, as well as trying to achieve a free-trade area of the Americas.  The
Director-General had recently stated in Buenos Aires that:  "Regional trade agreements can be a goodthing, as Mercosur has spectacularly demonstrated over the past ten years … intra-Mercosur trade has
jumped from 9% in 1990 to over 20% in 1999".  RTAs should be open and not constitute new barriers
to global trade.
37. Paraguay was also of the view that care should be taken to ensure that agreements not exclude
a small group of developing countries from facilities or privileges granted to a large group of
developing countries, such as was the case of th e ACP-EU Partnership Agreement, which explained
his country's opposition to the extension of the waiver.  In such general agreements, all developingcountries should have the same facilities or receive adequate compensation.
38. Paraguay endorsed the concept of flexibility in the negotiations on agriculture and services for
all WTO Members.  The flexibility should however be reciprocal, on the side of both developed and
developing countries, with not only the latter being called upon to open their markets to industrial and
agricultural products and services.  Developing countries such as Paraguay had markets that wereopen across the board, but reciprocal treatment from the majority of developed countries had not been
received.  His country's progress and development w ould be very rapid if these markets were to be
opened up.  Access to export markets would promote production, not only basic agricultural
production, but also adding value to commodities.  This would lessen the pressure of the population
on the land, which created domestic problems and did not contribute to political stability nor goodgovernance.  Trade liberalization should be made re ciprocal and broad to ensure that it was not only
the small economies of developing countries that were liberalized.WT/TPR/OV/M/3
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39. The great progress made by the WTO in other areas justified the continued support by its
Members, his country included.  The dispute settlement system had proved to be effective and rapid
and had found solutions to trade problems, and could be emulated in regional agreements, such as
Mercosur.  Paraguay also appreciated the technical assistance and training made available to
Members, since such "institution building" made it possible for them to receive a greater share of thebenefits the multilateral trading system made available to its members.
40. With respect to technical cooperation, his country endorsed the Director-General's view of
open markets when he said in Buenos Aires that: "If trade in agriculture was liberalized, this would
triple the ODA received by developing countries".  His delegation had therefore played an active part
in the mandated negotiations on agriculture, participating in the Cairns Group, which had made three
proposals on market access, export competition and domestic support.  Paraguay awaited the initiation
of the mandated negotiations with high hopes.
41. His delegation also wished to draw attention to the progress made on trade facilitation.
Paraguay was of the view that the WTO should look further into the problem than Article V of GATT
1947, as the United Nations has done through the UNCTAD, to seek solutions to problems related to
the transit of goods from countries with no coastline, including financing transport.
42. The representative of Chile noted with satisfaction the favorable state of the world economy,
in spite of the presence of downside risks and the difficult situation of certain countries, notably as a
result of higher oil prices.  The multilateral trading system was contributing to maintaining the health
of the world economy, as was market-opening, whether multilaterally, regionally or bilaterally.
43. His delegation was concerned with the growing level of conflict in the multilateral trading
system.  Although the high number of complaints br ought to the WTO for dispute settlement could be
seen as a sign of confidence in the procedures and their efficacy, the number also indicated a high
degree of conflict.  Furthermore, certain transatlantic disputes had escalated into sanctions due to the
non-implementation of rulings.  His delegation was concerned of a possible trend to non-compliance
with the rules, leading to compensation and sanctions.
44. A second concern was the likelihood that many issues raised in the context of the
implementation exercise were likely to remain un resolved, pending future multilateral negotiations.
A third concern of his delegation, to which the Report had not paid sufficient attention, was decision-
making in the WTO.  The procedures were transparent and worked, but many issues were left
unresolved for long periods of time.  This was notably the case for observership in the WTO for
intergovernmental organizations, an issue which did not concern the rights and obligations of
Members.  Consultations had taken place without a resolution of the matter.  His delegation favoured
the creation of a body to reflect upon decision-making in the WTO.
45. A fourth concern was the 'arms race' that was taking place with respect to the use of anti-
dumping.  A spiral was taking place, affecting all countries.  Such measures were no longer being
applied just in North-South trade, but also between developing countries.  Exports of Chile to a large
number of Latin American countries had been the subject of anti-dumping investigations and
measures.  Many Members were now applying laws that gave free rein to protectionism that was bothselective and discriminatory.  Anti-dumping had to be a central preoccupation of Members in any
future negotiation.  This was also true of sectoral protectionism, such as in textiles and clothing, as
well as support policies to agriculture, of particular concern to Chile.
46. A fifth concern was RTAs.  Chile had been among the most active in signing such agreements
and other Members who had long stayed on the sidelines were also moving to embrace them, notablyJapan and the Republic of Korea, in the latter case, with Chile.  RTAs were consistent with the WTO,
but his delegation was concerned that the mechanisms to examine RTAs and the rules governing theirWT/TPR/OV/M/3
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provisions in the WTO, notably rules of origin, were not fully adequate.  These needed to be part of a
future work programme.  Finally, regarding negotiations on a free trade agreement with the United
States, the Report had misstated the latter's negotiating authority as fast-track.
47. The country reports produced by the Secretariat for the TPRM were very useful, were being
circulated more widely, and were now also being used by the business and academic communities.Reports could be even more detailed than was currently the case since the information was so useful,
and Chile endorsed opening TPRB meetings to the press, either directly or by telecast. The
representative also stated that a franker and more provocative tone for the Report would also be useful
given the importance of the Overview exercise.
48. In conclusion, the representative indicated that the multilateral trading system was viable and
was working well, but it had shortcomings which could only be overcome through the launch of a
broad round of multilateral negotiations.
49. The representative of Japan noted with pleasure the recovery path of the world economy since
1999.  It was extremely important for all Members to ensure that the ongoing recovery would
continue and become robust in the years ahead.  In this regard, Japan believed it was essential to
promote structural reform in each member and a steady liberalization of trade and investment.  For
this purpose, his delegation was of the firm view that an early launch of a new round in 2001 wasextremely important.  In this connection, Japan hoped the Members would be able to agree promptly
on a well-balanced and sufficiently broad-based agenda for the next round.
50. The Director-General had referred in his opening statement to a possible erosion of the
multilateral trading system by the proliferation of regionalism.  Japan considered that an early launch
of a new round was the best way to remove any such concerns and misgivings.
51. The representative of Colombia noted the improvements that had been made in 2000, both
with respect to the world economy and in the WTO as an organization.  Implementation continued to
be an outstanding challenge, but there was the prospect of an agreement by the end of the year which
would tend towards a better balance in the rights and obligations of Members.
52. His delegation was concerned by the rising trend in anti-dumping and safeguard actions
taken, as well as the slow pace of integration of textiles and clothing, the rising level of subsidies to
agriculture granted by the Quad countries, and the rise in product regulations and standards,
particularly for food, which could have a considerable impact on market access for developing
countries.  These developments slowed the pace or even delayed entirely the benefits to developing
countries of the multilateral trading system.
53. The "invisible hand" of Adam Smith was among the cherished notions of economists,
according to which the pursuit of individual self-interest ensured the well-being of all.  His delegationdid not however believe that the systemic problem s of the organization could be solved by the
participants' application of the concept to the multilateral trading system.  If developed countries did
not give some thought to the benefits that could be realized from strengthening growth prospects in
developing countries and consolidating their markets,  realizing the benefits of the multilateral trading
system would take much longer.
54. The average tariff of developed countries was 3.7%, and was about 12% in developing
countries, a gap that could be reduced in exchange for better market access in developed countries by
discipline on the use of anti-dumping and safeguards, a reduction of product regulations and standards
on foodstuffs, and a lifting of tariff quotas.  Unfortunately, developing countries were following the
bad example of others by using anti-dumping more frequently.  His delegation hoped that one of theresults of the implementation exercise and the stock-taking exercises for services and agriculture inWT/TPR/OV/M/3
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March 2001 would be the recognition of the need to strike a better balance of rights and obligations in
the system.
55. The representative of the United States noted the rapid and strong recovery of the world
economy from the Asian financial crisis and other disturbances elsewhere.  The commitment to and
respect for open markets shown throughout the crisis had played an important role in the speed ofrecovery.  This was true for a number of countries experiencing severe economic setbacks that by-
and-large had met their Uruguay Round tariff reduction commitments, as well as of countries that had
been recipients of their substantial increase in exports.  In this regard, the Report noted, in its
paragraph 24, that "North America was a major factor in the world trade expansion, accounting for
one half of the increase in global imports."  This confirmed the long-standing commitment of the
United States to more open markets at home as well as abroad.
56. The WTO Secretariat and the World Bank were to be thanked for the two recent studies
lending empirical support to arguments that more open markets contributed to the alleviation of
poverty in low and middle income countries, and were an important contributor to stronger rates of
economic growth in those countries where 85% of humanity resided.  These studies highlighted the
importance to the prospects for global economic well-being that all WTO Members fulfill their
Uruguay Round commitments, press forward with the mandated negotiations, and resolve theirdifferences so that a new round of multilateral trade negotiations could begin very quickly.
57. As to the specific work of the WTO, the Report showed that despite disputes and
disagreements among members that had often dominated the headlines, a great deal had been
accomplished in the course of this year:
• The mandated negotiations on agriculture and services had been launched and a solid
foundation laid for progress through the tabling of concrete proposals by many
delegations.
• Important strides had been made to ensure that the WTO's decision making processes
were both inclusive and efficient.
• A mechanism had been established to consider the implementation-related issues and
concerns that many members had expressed.
• Five new Members had been welcomed, the protocol package with another possible
new Member had been concluded, and impor tant progress had been made on other
accession negotiations.
• The 2°d Triennial Review of the TBT Agreement had taken place, which agreed on
certain principles for international standards development, whose dissemination byMembers and standardizing bodies in their territories should contribute to effective
participation by developing countries.  More generally, with respect to TBT and SPS
measures, the WTO had hosted major information exchanges that provided important
assistance to developing countries to participated in standard-making activities.
• The Committee on Customs Valuation had successfully dealt with requests from
developing countries for the extension of transition periods so that they could be infull compliance with the Agreement on Cu stoms Valuation when these transition
periods ended.
• Very good work has also been done in the Anti-Dumping Committee's Ad Hoc Group
on Implementation, which had adopted a recommendation concerning the periods of
data collection for antidumping investigations, and had made considerable progress inseveral other technical areas, based on a discussion of practical issues and experience.
• Very good progress had been made towards completing the Consolidated Data Base
that, for the first time, would provide access to the tariff schedules of all Members in
electronic format.WT/TPR/OV/M/3
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58. The United States was gratified by the Report's account of the strides made in transparency
and the outreach activities of the WTO.  These were important developments upon which the
Members could and must continue to build.  Her delegation agreed with the Report's conclusion that
more had to be done to improve the world's understanding and appreciation of the WTO's activities.
59. The representative of Canada endorsed the view that rapid world trade and economic growth
was in part due to the past commitments of Member s to open their markets.  These past achievements
could however only carry the world economy so far and new ground had to be broken.  The first
aspect was to make real progress in the mandated negotiations on services and agriculture.  As the
Director-General had stated in his opening remarks, Members needed to ensure that the stock-taking
exercises in March 2001 did not become roadblocks.  The onus was therefore on Members to do the
right thing at that time, both substantively and procedurally.
60. The second aspect was to make real progress on the question of implementation, which had
been a difficult and trying process.  Progress had been made on the question, which now needed to be
locked in and used as a base to build upon.  The third was to ensure fuller participation of all
Members in decision-making.  Here again, progress had been made in the past year, not through new
structures or new procedures, but by ensuring in a pragmatic manner that the views of Memberswould be heard.  Further action was also needed to strengthen technical assistance, the Integrated
Framework, and coherence between the WTO and sister organizations.
61. A fourth area for the Members to consider was greater sensitivity to the concerns of the
public.  The WTO needed to better explain to the public the benefits of trade liberalization and the
merits of launching a new round.  A new round was not an end in itself, but was a means to achievegreater economic prosperity, a top concern around the world.  The WTO therefore needed to consider
how to enhance external transparency to improve the functioning of the organization.
62. Canada was of the view that the benefits from a new round would be maximized through a
broad and balanced agenda of negotiation in which all Members were able to identify their priorities,
whether this was in the area of rules, market access or the establishment of new rules.  There was nogreater challenge for the WTO, but also no greater opportunity.  Finally, his delegation viewed RTAs
as complements to the WTO rather than in compet ition, helping citizens identify the benefits of
market-opening closer to home, where they were perhaps more tangible.  Regionalism therefore
ultimately strengthened the hand of the multilateral trading system and of the WTO.
63. The representative of Thailand noted her delegation's agreement with the Report's
recommendation to maintain the momentum of liberalization through the mandated negotiations and
guard against increased barriers to trade.  Tariffs on agricultural products were still much higher thanthose of non-agricultural products, especially in the major developed economies.  It was therefore
necessary to push forward the mandated negotiations on agriculture as expeditiously as possible.
64. Her delegation had noted with great concern the increasing trend of product regulations and
standards that could impede market access.  Each government had the right to take sanitary and
phytosanitary (SPS) measures, but these should be applied only to the extent necessary to protecthuman, animal or plant life or health, and not be used as an excuse to protect domestic producers.  A
World Bank study on the European Communities' standards for aflatoxin showed that the risk in
cereals was 2 in 1 billion persons, but following international standards would reduce the market
access for African products by US$700 million.  It was also disheartening that only developed
countries were users of SPS measures since the developing countries lacked the financial andtechnical capacity to do use them.WT/TPR/OV/M/3
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65. Her delegation had also noted that the scope of the application of MFN tariffs by Member
was reduced by RTAs and GSP.  On the latter, the Report noted the conditions of compliance with
labor and environmental standards in the GSP schemes of the European Communities' and the United
States.  Thailand held that these schemes were not in conformity with the fundamental GSP principles
of non-discrimination and non reciprocity as stated in paragraph 5 of the Enabling Clause.
66. Finally, Thailand agreed fully that the member ship needed to work further on implementation
and also to consider a broader negotiating age nda, in addition to proceeding with the mandated
negotiations.  However, one of the most important responsibilities of the WTO was to guard against
increased barriers to trade.
67. The representative of the European Communities noted that the year 2000, which the
Director-General had characterized as one of "challenge and consolidation", was also the year after
Seattle.  This was a year of reflection on the lessons to be drawn from Seattle, on how to make theorganization more inclusive and more transparent, on how to marry effectiveness with the concept of
a Member-driven organization, on how to revise ce rtain working methods, on how to ensure that all
constituents reaped the benefits of an open, rule-based multilateral trading system and felt
comfortable within it, on how the organization could better take account of the needs of developing
countries and in particular the LDCs, and on how to reach out to civil society and the public at large.These were all questions of vital importance to the WTO.  Progress had been made on a certain
number of issues through an unprecedented confidence-building exercise.
68. From reflection and consolidation, his delegation considered it was time for action to tackle
the challenges confronting the trading system.  Members needed to move beyond technical positions
and engage in dialogue to prepare the ground for negotiations on a more comprehensive agenda.  Abroad-based negotiation was needed for each participant to find the necessary trade-offs in a package
for the benefit of all.  The consolidation that had taken place in the year 2000 should have prepared
the Members to commit themselves to the qualitative leap that was now necessary.  The WTO, as a
successor to the GATT, was a forum for negotiations, and not a global framework for reflection and
self-analysis.  An impetus needed to be found to move forward.
69. Among the important tasks of the WTO that lay ahead was to improve the market access for
developing countries, in particular LDCs, and the European Community was strongly committed to
this goal.  Extending the membership of the WTO was also important, although his delegation
regretted that no LDC had acceded since 1995.  Implementation was first and foremost an issue for
LDCs, as was the need for trade-related technical assistance, both issues where the European
Community would continue to address the real conc erns of developing countries.  The recent special
session of the General Council devoted to the issue of amicus curiae  had demonstrated the importance
of updating the rules of the WTO across the board, which should be done by Members, but which
could only be achieved as part of a more comprehensive agenda.  His delegation supported all efforts
to get the organization moving, which was the collective responsibility of all Members.
70. The representative of Bolivia noted the increase of 5.6% in support to agricultural producers
in the OECD area in 1999 stated in the Report, wh ich had a damaging effect on developing countries,
notably smaller economies.  The Report had also that the conclusion of mutual recognition
agreements on conformity assessment was confined to developed countries, also of concern to her
delegation, given the use of SPS measures for protectionist purposes, in many cases.
71. RTAs had become important instruments of integration for developing countries.  Her
delegation saw no contradiction between the multilateral rules and the conclusion of such agreementsat the regional and sub-regional levels.  In fact, such agreements attenuated the effect on developing
countries of difficult conditions of market access in other markets.WT/TPR/OV/M/3
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72. Her delegation also considered that it was difficult for smaller developing countries to see any
benefits from holding a new broad-based round of ne gotiations, given that the benefits of the Uruguay
Round were still being awaited.  Bolivia had implemented an open economy and faithfully respected
its WTO commitments, and hoped that its trading partners would now eliminate protectionist
measures and permit access to their markets.  Finally, her delegation was grateful for the speedierflow of information on WTO activities to developing countries, at the Director-General's instruction,
and hoped that all Members would remain respectful of the need for internal transparency.
73. The representative of India considered there was an absence of clarity on the precise scope of
the overview exercise.  Annex 3 of the Marrakech Agreement stated that the overview should concern
developments in the international trading environment which were having an impact on the
multilateral trading system, a list which could theoretically include a financial crisis, a new major
regional agreement, a sharp increase in oil prices or a severely negative perception on the process ofglobalization.  However, since the WTO had achieved close to universal membership, and covered a
vast array of subjects, the international trading environment could not be isolated from the multilateral
trading system.  This explained the concern of many interventions with the current challenges of the
system rather than with external developments ha ving an impact on the system.  For the future, a
clarification of the scope of the overview would be useful, noting the exercise's importance in givingMembers the opportunity to engage in a collective assessment.
74. A rule-based multilateral trading system was sa id to be generally more important for the
weaker trading partners than for the powerful ones,  which implied that the perspective of developing
countries should be used as a basis for analyzing th e impact of the international trading environment
on the multilateral trading system.  Furthermore, the Preamble to the WTO Agreement recognized theneed for positive efforts designed to ensure that developing countries, especially the least developed
among them, secured a share in the growth in inte rnational trade commensura te with their need for
economic development.  The Preamble also referred to reciprocal and mutually advantageous
arrangements.  Five years after the entry into force of the results from the Uruguay Round, it was
appropriate to examine their impact on the international trading environment.
75. In this regard, the Economist magazine had recently indicated that the share in world trade of
the United States had increased from 15.7 to 17.7% and of the European Union from 34.7 to 38%,
while the share of the rest of the world had declined from 49.6 to 44.3%.  The reasons behind these
trends were obvious although many refused to recognize them.  The fundamental problem was a
complete lack of balance in the commitments unde rtaken by powerful trading entities, on the one
hand, and their partners, on the other hand.  Developing countries were unable to access major
developed countries' markets for products in which they had export capability and competitiveness.
76. Agriculture was an area of high interest to developing countries.  The Report's paragraph 86
noted the rise of 5% in total OECD support to ag riculture in 1999, to an estimated at € 306 billion.
Producer support had been estimated at € 236 billion, of which 45% was allocated by the European
Union, 23% by Japan and 21% by the United States.  These higher levels matched the previous highs
established a decade before during the Uruguay Round.  The Report rightly noted that such policeshad spillover effects on world markets and on the export opportunities of trading partners, many of
which were developing countries.
77. With respect to textiles and clothing, also an area of high interest to developing countries, the
Report's paragraph 77 acknowledged the modest nature  of quota elimination by Canada, the European
Union and the United States.  The quotas they had brought into the WTO from the MFA were stilllargely in place, as was noted in the Report's paragraph 10.  However, the Report's paragraph 79
mixed MFA-inherited discriminatory quotas maintained on textiles and clothing products by major
developed countries, with the fundamentally different non-discriminatory quantitative restrictionsWT/TPR/OV/M/3
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maintained by developing countries on a wide range of products, including textiles and clothing
products, under Article XVIII:B for balance-of-payments reasons.
78. The Report's paragraph 73 indicated that tariffs well above the average continued to protect a
number of industries in the Quad and tariff escalation was evident in a number of sectors.  In Japan,
tariff peaks affected footwear and headgear, and in Canada, the European Union, and theUnited States, tariff peaks affected the textiles and clothing sector, on which quotas also applied.
Tariffs on agricultural products were also substantially higher than on other products, notably on
temperate zone products, and subsides were an additional distortion.  It was thus clear that developing
countries were not obtaining market access in products of interest to them.
79. The Report's paragraph 75 suggested the linkage between benefits and adherence to
internationally recognized workers rights or en vironmental standards in the GSP schemes of the
European Union and the United States was valid.  His delegation endorsed Thailand's view that theGSP scheme was required to be generalized, non-reciprocal and nondiscriminatory, and such a
linkage violated its letter and spirit.  Although the linkage was an "incentive" in the scheme of the
European Union, it discriminated between countries on the basis of adherence to certain standards.
He urged the European Union and the United States to give this aspect careful consideration.
80. The Report's paragraph 9 suggested that a differential between bound and applied rates in
certain countries undermined the predictability and security of their trading regimes.  This assertion
ignored certain realities.  In a country like India, there was always a difference between bound and
applied rates.  The Government was able to convince the domestic industry of the merits of tariff
reduction if the level could be increased up to the bound level in case a problem for the domestic
industry emerged.  If the WTO were to take a rigid view and insist there should be no differentialbetween bound and applied rates, countries like India could be discouraged from fast liberalization.
81. With regard to the Report's section on accession, his delegation was of the view that acceding
countries should not be asked to accept obligations inconsistent with their levels of development.
82. With regard to the Report's treatment of services, his delegation was concerned by paragraph
11, which stated that the autonomous liberalization initiatives of many countries had moved policiesin the sector well ahead of commitments, whose benefits could better be assured by binding existing
access conditions.  Autonomous liberalization initiatives had to be given credit without insisting on
their binding.  The Report's paragraph 92 however noted, as India had done repeatedly in the Services
Council, that the scope of access for delivery by mode-4 - natural persons - was severely limited.
83. The Report overlooked the real issues in it's treatment of intellectual property protection.  No
reference was made to the debate in the TRIPS Council on extending protection for geographical
indications to products other than wines and spirits.  No reference was made to the debate outside theWTO on the appropriate balance between public policy objectives and private profits, which had not
been struck in the TRIPS Agreement according to India, supported by the World Bank and UNDP.
84. India endorsed all the points made by the representative of Hong Kong, China on RTAs.
85. His delegation attached great importance to implementation.  The Report's title for the section
was "Implementation concerns addressed", which the establishment of the special mechanism processhad formally done so far.  His delegation however hoped that appropriate decisions to meaningfully
resolve these concerns would be made at the following week's special session.
86. Finally, certain major delegations had referred to a new round in their interventions by using
terms such as "balanced", "broad-based", etc.  His delegation's views on the subject were very well
known and he would not repeat them.  However, in this context, the most striking element of theWT/TPR/OV/M/3
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current international trad ing environment was the lack of parity between what was being preached to
developing countries and what was being practiced by developed countries.
87. The representative of Jamaica noted that despite the difficulty of the year in the aftermath of
Seattle, the WTO had responded to the challenges and the overall health of the trading system was
good.  The Report's upbeat tone was welcome, although his delegation disagreed on certain areas.
88. With respect to world trade developments in 1999, the Report had noted that exports of
developing countries as well as exports of LDCs rose faster than world trade as a whole, which was
welcome.  At the same time, the Report's paragraph 26 noted that office and telecom equipment,
automotive products and chemicals posted strong gains.  When such increases were set against higher
fuel prices, noting as well as the built-in growth factor in trade from the recovery from the financial
crisis in 1997-98, and the concentration of trade growth in certain value-added categories, the Report's
own recognition of a longer-term decline in the share of LDCs in world exports, the picture of worldtrade was much more worrying than was conveyed by the overall figures.  A higher level of data
disaggregation would more accurately reflect the situation of developing countries.
89. The representative noted that buoyant world trade growth made more conspicuous the plight
of those lagging behind, and underscored the need for the international community to be responsive to
the development concern.  The Report was least able to sustain its optimistic tone in areas ofparticular concern to developing countries, such as funding technical assistance, implementation,
accession and market access in sensitive areas such as agriculture and textiles and clothing.
90. The representative considered that the Report's analysis of RTAs was ambivalent, although its
conclusion was that the twin tracks of multilateral and regional liberalization could fruitfully exist
provided the rules of the WTO were respected.  His delegation considered that the importance of bothapproaches and their complementary nature should be recognized.  The resurgence of interest in
RTAs was evidence of their growing desirability and of confidence in their effectiveness in promoting
development and facilitating effective participation in an increasingly competitive global economy.  A
law of nature was that which served no purpose would atrophy.
91. Statistical evidence showed clearly that regional integration had increased the importance of
Latin American and Caribbean economies to each other, in both absolute and relative terms.  Given
the high propensity of developing countries to import, attention should be given to the trade expansion
effects of RTAs, noting that these could also have played a role in world trade growth.  RTAs were of
particular importance to smaller developing countries, which needed economic space to build
domestic capacity to enhance their ability to take advantage of negotiated market access openings at
the multilateral level.  The learning curve at the re gional level was less steep that at the multilateral
level, the data in the Report showing much more limited use by developing countries of trade remedyactions or the dispute settlement procedures.  Much was heard of the level playing field, and
preferences were supposed to upset this ideal geography, but the rules in this regard had to take
account of the differences in resources and capacity.  RTAs treated certain of these issues more
sympathetically and were therefore important building blocks to multilateral participation.  This was
the view of the members of CA RICOM (which numbered 15 and not 13, as stated in the Report).
92. The representative of Australia was troubled by the Report's indication of a rising use of anti-
dumping, both in the number of initiations and the regional spread of users.  The significant use being
made of anti-dumping by developing countries was of considerable importance to the multilateral
trading system, and implied that the "old" trade issues of market access were, as the representative of
Hong Kong, China had noted, very much alive, including contingency protection and industrial tariffs.Dealing with this set of issues had been at the core of the multilateral trading system since its
inception, and should not be lost sight of in discussions of the new and more interesting issues.WT/TPR/OV/M/3
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93. His delegation, like others, was gratified by the start of the mandated negotiations on
agriculture and services in 2000.  The situation of Members was however more difficult than if a
round had been launched in Seattle.  In order for progress to be made on the mandated negotiations,
deep decisions would be required at the end of the stock-taking exercises in March 2001.  Progress in
these negotiations was also linked to progress on other issues of concern to the Members.
94. Another development of some concern to his delegation was the rush to regionalism, given
that MFN had been the fundamental cornerstone of the GATT.  The trend was not unconnected to the
failure in Seattle.  His delegation had noted the interventions of other Members on the subject in the
course of the overview, but the real danger of RTAs for the multilateral trading system arose from the
absence of any disciplines in Article XXIV of the GA TT or in Article VI of the GATS.  This absence
was tolerable as long as RTAs were concluded only by a few Members, which was no longer the case.
Furthermore, a wide variety of RTAs were now being concluded, in terms of issues covered andlinkages made.  His delegation was in particular troubled by the discussion of RTAs that omitted
certain "sensitive" sectors, such as agriculture.  If such incomplete RTAs were concluded, the dispute
settlement system would become even more burdened than was already the case.
95. The rush to regionalism indicated that a new round of negotiations should be concerned with
updating the rules that govern RTAs, as well as other rules, notably anti-dumping, dispute settlementand other areas.  Another challenge posed by the trend was the need for the multilateral trading
system to demonstrate that it could deliver liber alization on an MFN basis.  Such a demonstration
would significantly reduce the incentive of politicians to resort to regional integration.
96. The representative of Cuba noted, on implementation, that the major trading entities in the
WTO had still to learn the lesson of Seattle.  When the reasons for the failure in Seattle set out in the
Report's paragraph 1 were set against the meagre results of the consultations, it was clear that the
political will to accept the proposals in paragraphs 21 and 22 of the draft Seattle Declaration was still
missing.  No real progress had occurred in the trade of developing countries since 1995, as noted by
India, Jamaica and other speakers.  In such circumstances, without any remedy for the imbalances of
the Uruguay Round, developing countries were not encouraged to participate in a new round.Implementation was an important matter that had to be resolved before going on to a new round.
97. His delegation disagreed with the World Bank quote in the Report's paragraph 118 that
"As countries become richer, on average the incidence of poverty falls".  Developed countries had
mainly benefitted from recent global economic growth as the gap with poor countries had widened.
In 1998, developing countries, with 85% of the global population, only accounted for 34% of global
exports, less than in 1953 despite a twofold increa se in population.  Revenue in over 100 developing
countries was lower than 15 years ago and there were 1,500 million poor people in the third world.The terms of trade had deteriorated by 1.2%, a figure which placed the purchasing power for a
number of commodities at the levels of three decades ago.  The widening gap between rich and poor
could be seen from the United Nations Human Development Report in 1999, which showed that, in
1960, 20% of the world's population, living in the richest countries, had an income 30 times higher
than the 20% of the population living in the poorest countries, while in 1997 the ratio was 74 to 1.
98. With regard to the process of accession, his delegation supported the proposal of Uruguay to
discuss the matter in the General Council.  The ma rked trend among certain major trading partners to
require greater commitments from candidates was problematical and was a practice that should cease.
99. The full participation of small and poor countries in the dispute settlement procedures was
limited by the costly nature of the process, and efforts should be made in this respect to facilitate their
participation.  With regard to the Report's paragraph 9, his delegation agreed with the delegations
criticising the rise in anti-dumping measures, particularly by developed countries.  Current rules
benefited countries which applied such procedures and should be improved.WT/TPR/OV/M/3
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100. With regard to the Report's paragraph 12, his delegation endorsed the Director-General's
proposal for "increased funding for technical assistan ce in the core budget of the WTO".  The Report's
paragraph 16 contained an appeal to ensure that barriers to trade were not increased, an objective
shared by all delegations.  However, if these reports were to be truly objective, they should include an
examination of the trade restrictions applied by some Members to others, for example trade blockadesand other types of unilateral or extraterritorial measures, together with the measures adopted by
Members to reduce these practices, which were inconsistent with the basic principles of the WTO.
101. The representative of the Philippines noted his forthcoming submission, as Chairman of the
CRTA, to the General Council of the report on the Committee's activities.  The report itself contained
only a few sentences, but  was accompanied by his own personal views and observations on the very
obvious failure of the CRTA after four years of existence, an issue also raised by previous speakers.
Lack of effort was not the cause, since the Committee had worked very hard.  Practical and broadissues had led to the stalemate, which would persist unless the General Council gave the proper
guidelines.  He hoped delegations concerned by the proliferation of RTAs would discuss the matter of
the CRTA when it came up on the agenda of the meeting of the General Council.
102. His delegation welcomed the improved situation and outlook for the world economy in the
aftermath of the crisis in the Asia-Pacific region.  World trade had played a key role.  North America'sstrong demand for office and telecom equipment had helped countries in the region, including his
own, recover from the crisis.  Exports of the Philippines had consistently grown at double-digit rates
of 17 to 18% between 1995 and 1999, attributed to a policy of open trade and investment by his
authorities.  Reaping such benefits was the main  reason for the commitment made by the Philippines
to open markets and open regionalism, both in ASEAN and APEC.  Unfortunately, exports ofdeveloping countries were adversely affected by a number of trade policy trends in key markets,
including tariff peaks, tariff escalation, disgui sed protectionism through SPS and TBT measures, and
the malpractice in GSP programmes in relation to the principles of the Enabling Clause.
103. In spite of the overall positive situation and outlook for world trade, the LDCs found
themselves on the other side of a trade and economic divide.  The efforts of the Director-General andof the Members had faltered somewhat.  Without a strategy to address the divide, the developed
countries could not anticipate the emergence of a large market in LDCs and developing countries.
104. Agricultural products had faced price declines and lower import demand in contrast to the
dynamic performance of world trade in office and telecom products, up by 10% in 1999.  According
to the ITC, trade in the more general category of technology products – office and telecom, medical
and scientific equipment, transport - amounted to US$1,300 billion, about three or four times the
amount of trade in textiles and clothing and twice the amount of trade in agricultural products.  Thevalue of software transacted and e-commerce were very significant.  In short, technology products,
software and e-commerce were the new growth areas for the world economy and world trade.
105. His delegation was concerned by the emergence of another kind of divide, in which the
developed countries would retain their monopoly position in technology products, software and e-
commerce.  Unfortunately, participation in the technology area had a high threshold of competence,
unlike agricultural cultivation, metal working and ot her manufacturing activities.  In this regard, he
welcomed Japan's initiative, at the last APEC summit, to provide US$15 billion to address issues
connected with the "technology and digital divide".  His delegation invited the WTO to consider a
similar initiative to examine skill development and te chnology transfer to disperse the benefits of e-
commerce and information and communication technology, and related market opportunities.
106. The representative of Turkey noted that growth of world trade had continued in 2000, in spite
of the failure of Seattle.  One explanation was of a declining role of the WTO, which was however
inconsistent with high level of demand for accession, confirming the WTO as the focal point of theWT/TPR/OV/M/3
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world trading system.  The continuing rise in world trade was instead due to the positive results from
the Uruguay Round.  Market developments were however faster-paced than developments in the
WTO.  If Seattle had been a success, world trade would have been further stimulated.  The WTO
should be reviewed to keep pace with market developments or regional and bilateral agreements
would assume a leading role, increasing the possibilities of confrontation instead of cooperation.
107. The WTO should identify its shortcomings and seek remedies to them.  There was a growing
awareness among the Members and important work was under way.  A first challenge was to
strengthen the identity of the WTO as an intern ational organization through enhanced internal and
external transparency.  Implementation was another issue of extreme importance, and his delegation
hoped for satisfactory results from the consultations.  On the mandated negotiations, his delegation
did not detect the necessary political will on the part of certain participants to bring them to a
successful end.  At times, even the existence of a mandate had been challenged;  the state of thenegotiations on geographical indications was a case in point.
108. Market access on agricultural products offered to developing countries had decreased as
domestic support policies were used to protect certain major markets.  The multilateral trading system
would not profit from restrictions on market access possibilities offered to developing countries.  With
respect to services, mode 4 issues - access for natural persons - were not receiving the attention theydeserved.  Yet another threat to fair and free trade was posed by anti-dumping and countervailing
measures, increasingly being used among developing countries.  The dispute settlement system was
overloaded.  If Members did not make efforts to overcome ambiguities and loopholes in the system,
the panels and Appellate Body would continue to display an inevitable tendency to fill the gap.  The
representative could continue with the listing of problems, but it was ore important to find the politicalwill to address the issues.  Developments in the real world and an enlarged membership made it
necessary for the WTO to be more forthcoming in rising to these challenges.  A new round was
necessary to address these challenges, which were all interrelated, and reinvigorate the trading system.
109. The representative of Uganda endorsed the priority given in the Report to helping LDCs
move up the development ladder.  The value of any system could be judged according to the way each
of its members was treated;  the value of the intern ational trading system could be seen in the manner
in which LDCs were integrated and enabled to benefit from the system.
110. The report emphasized, in its paragraph 12, the importance of macroeconomic stability.  To
this end, LDCs had engaged in far-reaching structural adjustment, liberalization, and adoption of
outward-oriented policies in the past decade, expecting integration to follow and the benefits of the
multilateral trading system to be realized.  This had not proved to be the case, as shown in report after
report.  As noted in the Report's paragraph 114, LDCs accounted for 10.4% of the world's population
but their share in world exports had declined from 0.7% in 1990 to 0.5% in 1999.  The Report noted
the research published by the WTO Secretariat and the World Bank indicating that openness to trade
improved growth prospects.  The LDCs had carrie d out their reforms and would continue to do so.
111. These efforts needed to be matched by a more supportive external environment through
enhanced market access, as the High-level Meeting on LDCs had confirmed.  His delegation thankedall Members, developed and developing, having pledged to improve market access, as noted in the
Report's paragraphs 124 to 126, and encouraged them to continue doing so.  To take advantage of
market access opportunities, LDCs needed to address supply-side constraints.  To this end, the High-
Level Meeting had established the Integrated Framework (IF) which, after three years, had little to
show for itself.  The IF had been the subject of review by the heads of agencies, which had been ableto rethink the process and propose improvements, which would hopefully make the IF work.
112. The representative noted the longstanding concern with coherence in the WTO, for which
concept the IF was said to be a test case.  Development partners claimed the IF to be solely concernedWT/TPR/OV/M/3
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with coherence.  On their side, LDCs had expect ed the IF to be about coherence with a view to
address the identified lacuna or financial problems.  It was not their expectation that resources would
be mobilized to this end, and agencies had been inst ructed to mainstream such activities in their own
budgets.  However, many agencies had the objective of zero growth in their budget or reductions, and
LDCs found this discouraging for the prospect of any support.  His delegation looked forward to auseful discussion on how to carry forward the IF in the context of the evaluation that had been made.
113. The representative supported other speakers disappointed that no LDC had acceded since
entry into force of the WTO.  The LDCs had proposed that the accessions of LDCs be fast-tracked,
and they would not be required to undertake a higher level of commitment than other Members.
114. On market access, SPS and TBT measures needed to be addressed if LDCs were to access
markets and benefit from diversification.  Notifications of such measures had increased, while the
technical assistance required by LDCs to meet new standards had not been forthcoming.  This wasanother concern which he hoped the General Council would address.
115. The representative of Venezuela noted the still perceptible effects of Seattle, both on those
who wanted the conference to succeed and those who wanted it to fail.  A continuing concern was a
possible weakening or even a failure of the system.  This was in particular the case of countries such
as his own, who had invested heavily in the creation of and participation in a multilateral tradingsystem that was fair and predictable.  Still, there was collective faith in the system and confidence had
been rebuilt, notably through discussions on implementation issues.  A successful process would
further boost confidence, since this was an area where divisions among the Members remained.
116. His delegation attached importance to efforts to improve the understanding of the benefits of
the WTO.  Certain countries had lagged in the realization of these benefits, but others had realizedthem, as indicated by reports of growth in world trad e.  However, falling into the trap of believing that
all was well and growth rates were permanent and secure was also to be avoided.  Major elements of
the system needed attention, of particular interest to developing and least-developed countries,
notably market access for their products in developed markets.  His delegation also welcomed the
interest in accession, which was a sign of confidence in the system, although resolving the issues overimplementation was the key to maintaining and rebuilding confidence.
117. His delegation attached, like other delegations, great importance to the TPRM.  However, his
delegation had reservations on the change proposed by Chile, to open meetings of the TPRB, since
Members were engaged in internal deliberations that could be of some delicacy.
118. The representative of Pakistan noted the following areas of concern in the Report and the
Director-General's introductory statement:  (a) the increasing recourse to anti-dumping measures;  (b)
the slow pace of elimination of quotas in the textiles and clothing sector;  (c) the continued increase inthe level of support measures in agriculture;  (d) the continued proliferation of regional and bilateral
trade agreements;  and (e) the low level of participation of LDCs in the world trading system.  His
delegation considered the situation to be disturbing, especially when seen in conjunction with the
difficulties Members were experiencing in resolv ing the matter of implementation, leading to the
further marginalization of certain countries.  Certain speakers had called for a broad-based andbalanced agenda for further multilateral negotiations, but delegation was convinced that discussions
could not advance very far until meaningful solutions could be found to existing imbalances and
asymmetries in agreements, going beyond the Report's paragraph 35.  This was essential to build
confidence and create a conducive atmosphere and conditions in which developing countries would
not be marginalized and would gain the benefits of the multilateral trading system, which wereprojected at the time of the conclusion of the Uruguay Round, but had yet to materialize.WT/TPR/OV/M/3
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119. His delegation had reservations on the substance and language of the sentence in the Report's
paragraph 79, which stated:  "Pakistan maintains quotas on textiles and clothing products under the
cover of the balance-of-payments provisions of GATT 1994".  The terms "under the cover of" were
extremely disturbing as the notion of genuine balance-of-payments difficulties was transformed into a
disguised usage or abuse of a facility, which was not the case.  The relevant Committee had noted and
endorsed Pakistan's adverse balance-of-payments position, and the terms "under the cover of" were
therefore not suitable and should be amended.  The sentence also suggested that quotas only applied
to textiles and clothing products, which was not the case, as several other products were also
concerned.  Pakistan was implementing a phase-out schedule submitted to the Committee.
120. The representative of Tanzania noted that the representative of Uganda had, in his
intervention, already taken up a number of points her delegation had wished to make regarding LDCs
and she would therefore confine her intervention to a few vital points.  The first was that the overallpositive situation of world trade growth in 1999 masked the fact that LDCs were not participating in
the benefits from the system, as should be the case.  The LDCs accounted for 10.4% of the world's
population, but existed in dire poverty.  The LDCs were therefore asking the international community
to assist them in moving from marginalization to integration.
121. With regard to confidence-building measures, th e LDCs were asking for results, including on
implementation, where the imbalances in the results of the Uruguay Round needed to be rectified.  On
technical assistance, the LDCs were asking for a substantial increase in resources, to be part of the
WTO's regular budget.  As Uganda had pointed out, the review of the IF was over and LDCs hoped
the donor community would join the six core agenci es in coming forth with the resources needed to
implement the programme.  On market access, LDCs were seeking the removal of all barriersaffecting their exports in order to enable their effe ctive participation in the multilateral trading system.
This was very important to Tanzania, which was highly indebted, using more than 40% of its meagre
export earnings to service its debt, leading to a vicious cycle of debt and poverty.
122. RTAs were building blocks for the multilateral trading system.  Such agreements were
important to attract investment and create trade, and should therefore be supported by the system.  Herdelegation was frustrated by the fact that no LDCs had acceded to the WTO since entry into force.
The door appeared to be closed to LDCs and the representative urged it to be opened.  Lack of
progress had also been experienced on the request for observership for the Organization of African
Unity, noting that 29 WTO Members and 33 LDCs were also members of the OAU.  Facilitating
observership for the OAU would also be of assistance to African countries and to LDCs.
123. The Chairman noted the fruitful discussion of developments in the international trading
environment based on the large number of interventions.  Speakers had commented on the Report and
the Director-General's introductory statement, and had also expressed their own views and
observations on trends.  Many speakers had noted the smooth functioning of the TPRM.
124. The Director-General thanked the delegations for their constructive comments on the Report
and his introductory statement.  These contributions were very useful and would be taken into account
in preparing for the exercise in 2001.  In particular, he welcomed the invitation to be moreforthcoming of his personal views on matters of concern to Members.
125. The Chairman closed the meeting.
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