Opinion of the European Economic and Social Committee on "For a WTO with a human face: the EESC's proposals"
Date: 2003-03-26
Institutions: European Economic and Social Committee
Subjects: World Trade Organisation, international trade, liberalisation of trade, social policy

6.6.2003

EN

Official Journal of the European Union

C 133/75

Opinion of the European Economic and Social Committee on ‘For a WTO with a human face: the
EESC’s proposals’

(2003/C 133/16)

On 17 January 2002 the European Economic and Social Committee, acting under Rule 23(3) of its Rules
of Procedure, decided to draw up an opinion entitled ‘For a WTO with a human face’.

The Section for External Relations, which was responsible for preparing the Committee’s work on the
subject, adopted its opinion on 12 March 2003. The rapporteur was Mr Dimitriadis.

At its 398th plenary session on 26 and 27 March 2003 (meeting of 26 March), the European Economic
and Social Committee adopted the following opinion, by 89 votes in favour, two against and one
abstention.

1. Summary

A year on since the Doha Ministerial Conference, the
1.1.
WTO has been seeking solutions to the critical problems
facing its member states and their peoples as a result of
the liberalisation of world trade. With the experience of
multiannual rounds of trade negotiations under the General
Agreement on Tariffs and Trade (GATT) and the guiding
principles based on the decisions taken at the Ministerial
Conferences (Singapore, Geneva (1), Seattle (2), Doha), the WTO
is now facing a moment of decision. The decisions needed must
take account not only of the new circumstances prevailing in
the world economy (problems caused by the liberalisation of
trade, environmental problems, agricultural restructuring, etc)
but also of the reactions of the world community to critical
humanitarian and social problems (social
inequalities, the
spread of poverty, dangerous epidemics, etc.).

1.2.
Since the 4th Ministerial Conference (Doha), which put
sustainable development at the centre of trade negotiations,
and in anticipation of the 5th Ministerial Conference (Cancun,
Mexico), the WTO has been called on to show particular
interest in the least developed countries (LDCs) through the
transfer of resources and technical know-how as regards its
external activities and to do away with gaps in communication
(where these exist) and to allow the introduction of parliamen-
tary supervision while also consulting and informing the
representatives of organised civil society, following the exam-
ple of the UN and the Commission, as regards its internal
operations.

1.3.
The present EESC opinion on the WTO is intended as
a supplement to its previous opinions drawn up in the run-up
to the various Ministerial Conferences which dealt mainly with

the agenda and technical
topics included in the various
negotiating rounds. Its aim is to make a constructive contri-
bution to the global debate and to the Commission’s efforts
currently underway to give this international organisation a
more human face and to satisfy the justified demands of
developing countries and of civil society stakeholders who
accuse it of lacking sensitivity, transparency, adaptability and
flexibility.

1.4.

In order to formalise the above, the EESC proposes:

creating a parliamentary dimension to the WTO,
1.4.1.
despite the difficulties inherent in such a proposal, in order to
widen the democratic debate and to ensure that elected
representatives have substantial involvement in its operations.

1.4.2.
establishing a formal dialogue between the WTO and
the stakeholders of organised civil society as there is a need to
endorse and recognise these stakeholders and to establish a
concrete and structured code of communication.

1.4.3.
establishing a formal dialogue between the WTO and
the other international organisations (UN, World Bank, IMF,
OECD, ILO, etc.) and with regional transnational organisations
so that action can be coordinated to achieve better results and
to avoid conflicting programmes and wasted resources.

( 1) European Parliament Resolution of 18 June 1998 on the Second
Ministerial Conference of the World Trade Organization — OJ
C 210, 6.7.1998.

( 2) European Parliament Resolution of 15 December 1999 on the
Third Ministerial Conference of the World Trade Organization in
Seattle — OJ C 296, 18.10.2000.

1.4.4.
providing ongoing and unbroken support to the
LDCs by transferring resources and technical expertise so that
their participation in WTO processes is both substantial and
fruitful. The Committee recognises as an important factor the
major economic and social disparities which exist among the
LDCs such that the circumstances call for the creation of
clearly distinguished separate categories.

C 133/76

EN

Official Journal of the European Union

6.6.2003

1.4.5.
showing particular sensitivity in handling the critical
issues facing developing countries in relation to poverty (1),
epidemics, the environment and agricultural production where
these affect trade policies and are within the remit of the WTO.

services. This need is met by the WTO, which was established
following lengthy international negotiations with the voluntary
involvement of the overwhelming majority of the world’s
nations.

The EESC emphasises the immediate need to draw up
1.5.
an international strategy leading to balanced development and
prosperity for all nations with particular consideration for the
issues of the environment and working conditions.

The EESC would also stress the need to trace out an

1.6.
international strategy for consumer protection.

2.

International economic situation — economic trends
in the developing and least developed countries

2.1.
The removal of trade and other barriers at global level
has gradually led to the creation of a new order in international
trade with major positive and negative implications. The most
important consequence of this development is without doubt
the increased interdependence of national economies on
international commercial exchanges. This interdependence of
economies, in conjunction with the use of new technological
tools, which have accelerated international trade, intensifies
the need for global trade to be controlled by means of
functioning statutory international organisations. These organ-
isations must cooperate closely with each other, in order to
avoid the implementation of conflicting measures and strategi-
es, especially in regions whose economic development depends
on international assistance and programmes set up by inter-
national organisations.

2.2.
Free market growth and increased trade may bring
long-term benefits globally (2), but the presence of international
organisations and regulations is necessary to avoid the short-
term negative effects of unregulated liberalisation on the
countries with the weakest economies and to stave off isolated
unilateral, bilateral or multilateral regulations that reinstate
boundaries and obstacles to the free movement of goods and

( 1) European Parliament Resolution on eradicating poverty — P5

TA(2002) 0389.

( 2) a) The World Bank estimates that the removal of all trade barriers
will increase global income by USD 2,8 trn and will bring
320m people out of poverty by 2015.

b) European Parliament Resolution on the Communication from
the Commission to the Council and the European Parliament
on the EU’s approach to the so-called WTO Millennium
Round — A5-0062/1999 — OJ C 189, 7.7.2000.

2.3.
Despite all the good intentions (UN Millennium Sum-
mit, UN World Food Summit, UN World Summit on Sustaina-
ble Development) and the various initiatives and programmes
to be found worldwide, one fifth of humanity (3) lives below
the international poverty line (which is set at USD 1 a day) and
this demonstrates the enormity of the challenge facing the
strong players in the global economy and the inadequacy of
the policies developed to date. The desperate living con-
ditions (1) of a large section of the world’s population generate
chain reactions with uncontrollable consequences.

2.4.
The reactions of organised civil society, NGOs and
social partners included, to all the deliberations of the inter-
national organisations illustrate the enormity of the problem
around the world. The message that is starting to be taken
seriously by all the international organisations, and above all
by the WTO, is the need to trace out an international strategy
to promote the balanced development and prosperity of
nations and to secure and deepen democracy throughout the
world. In reality, the difficult current social and economic
circumstances call for international cooperation between the
developed and the developing countries, either through exist-
ing international organisations or by creating new ones where
required.

The liberalisation of markets and of international trade
2.5.
over the last decade has brought some of the least developed
countries (LDC) (4) an opportunity to improve their people’s
income more rapidly than ever in the last 50 years (5). A
number of typical examples highlight the benefits gained by
the developing countries from free trade. The reduction in
trade barriers both to developing countries and LDCs will

(3) World Bank — Annual Report 2002 — Chapter 1 — Meeting the

Poverty Challenge: the World Bank’s Goals and Strategies.

(4) 30 of the 49 least developed UN member states belong to the
WTO; they are the following: Angola, Bangladesh, Benin, Burkina
Faso, Burundi, Central African Republic, Chad, Djibouti, Gambia,
Guinea-Bissau, Guinea-Conakry, Haiti, Lesotho, Madagascar, Mala-
wi, Maldives, Mali, Mauritania, Mozambique, Myanmar, Nigeria,
Rwanda, Sierra Leone, Senegal, Solomon Islands, Tanzania, Tongo,
Uganda, Zaire and Zambia (WT/COMTD/LCD/W/26, 8 Μαy
2002).
Nine even less developed countries are in the process of joining;
they are: Bhutan, Cambodia, Cape Verde, Lao People’s Democratic
Republic, Nepal, Samoa, Sudan, Vanuatu and Yemen (WT/
COMTD/LCD/W/26, 8 May 2002).

(5) European Parliament Resolution on openness and democracy in
international trade A5 — 0331/2001, OJ C 112, 9.5.2002.

6.6.2003

EN

Official Journal of the European Union

C 133/77

bring annual earnings of USD 250 to USD 620 billion from
2002, of which a third will supplement the incomes of the
LDCs (1). The cut in farm subsidies will also increase global
earnings by USD 128 billion a year, of which USD 30 billion
will be transferred to the LDCs.

variability of world prices and the fall
in the prices of
these products over the medium to long term (4). At least
50 developing countries depend on their primary sector for a
third of their export income, and for 40 of them it provides
half their income (5).

2.6.
A group of 18 developing countries, including Bangla-
desh, China, India, Ghana, Nepal, Uganda and Vietnam, have
increased their export levels as a proportion of GDP very
rapidly since 1980. Many experts believe that this has been
due to opening up their markets to international compe-
tition (2), but there are also opposing theories on the subject.

2.7.
The increase in the income of the poorest 20 % of
developing countries is greater than the corresponding increase
in the remaining 80 %. This has been demonstrated in East
Asia, a region that accounts for more than a third of the
population of the developing world. Over the last 40 years,
this region has been transformed from being one of the
poorest regions in the world into its current dynamic form.

Despite the improvement in their economic indicators,
2.8.
these countries still have a long way to go. On the other hand,
it is an undeniable fact that the ratio of the GDP of the top 5 %
richest countries to that of the bottom 5 % poorest on Earth
has risen from 30:1 when the GATT was launched at the end
of the 1940s to 78:1 today. This is even clearer in the social
sector. Their economic growth has not been matched by social
progress or the consolidation and development of democratic
institutions and individual rights. There has been little improve-
ment in the Human Development Indicators that measure
improvements in living conditions, education and life expect-
ancy.

2.9.
The fact that most developing countries’ economies
continue to be directly dependent on farm products (3), coupled
with the major problems of exports in processed agricultural
products, is a basic problem of the international trade and
economic system and has a direct social impact, owing to the

2.10.
The EU is making a very real effort to bring the
developing countries and LDCs into the global economy (6).
The Cotonou Agreement (23.6.2000) drawn up between the
EU and the African, Caribbean and Pacific countries is a major
initiative that combines trade with development, and also
includes a set of trade liberalisation measures (the ‘Everything
But Arms’ initiative), which allows tariff-free exports from all
the LDCs to the EU, with the exception of arms, within the
next few years. Similarly, the review of the European General-
ised System of Preferences (2002-2004) put the emphasis on
tariff reductions for the LDCs and also introduced a real
initiative clause (including penalties) relating to respect for
basic labour and environmental standards.

2.11.
The EU uses every opportunity in multilateral talks to
promote an ongoing course of development for the LDCs. The
International Conference on Financing for Development held
in Monterrey (Mexico) on 18-22 March 2002 was a further
step forward, while the EU and the United States undertook to
earmark an additional 30 billion dollars for development
from 2004, the greatest ever increase in aid to date. This
commitment was also a major challenge and invitation to
the World Summit on Sustainable Development held in
Johannesburg in August 2002, but it proved impossible for
the developed countries to arrive at a clear commitment on
specific measures designed to reduce the North-South divide,
and to establish rules to contribute to sustainable development.

The preconditions for global sustainable development
2.12.
are: the alleviation (or even elimination) of Third World
debt (7), reducing unemployment and applying international
labour standards as an objective target, paying particular
attention with regard to the earth’s ecosystem and the protec-
tion of public health.

( 1) a) WTO — Overview of Developments in the International
Trading Environment — WT/TPR/OV/8-15.11.2002.
IMF and World Bank, Market Access for Developing Country
Exports, Selected Issues, 27 Sept. 2002, p. 5.

b)

( 2) David Dollar, Aart Kraay, ‘Growth is Good for the Poor’, World

Bank.

( 3) European Parliament Resolution on the Communication from the
Commission to the Council and the European Parliament on the
EU’s approach to the so-called WTO Millennium Round — A5-
0062/1999 — OJ C 189, 7.7.2000.

(4) WTO — Annual Report 2002, § 17.
(5) UNCTAD, 2002 — The least-developed Countries Report 2002:
Escaping the Poverty Trap, Part II, Chapter 3. Trade Part II,
Chapter 3-4, UNCTAD, Geneva.

(6) Trade Policy Review of the European Union 2002 — p. 20 Rigged
Rules and Double Standards-trade globalisation and the fight
against poverty — (Comments
from the Commission —
17.4.2002).

(7) A Genuine Development Agenda for the Doha round of WTO
negotiations, Joint Statement, 28.1.2002, From: Save the children,
(Oafod, Oxfam, Actionaid, Worldvision, Christian Aid, Fairtrade,
Traidcraft § 14.

C 133/78

EN

Official Journal of the European Union

6.6.2003

the developing countries must: a) adopt

2.13.
To achieve the above, the developed countries, which
have the greatest responsibility, must: a) open up their markets
to LDC products, b) transfer resources and know-how to the
developing countries in substantial quantities, and c) help
sensitise and improve representativeness in the workings of
the administrative structures of international organisations.
Meanwhile,
the
principles of transparency, b) establish effective government,
c) adopt the basic principles of democracy, d) eradicate internal
corruption, e) establish fully functional markets, f) take on
board international labour standards and g) set feasible macro-
economic objectives. Trade liberalisation can bring the
LDCs (1) economic progress, provided, however,
the
strong economies take substantive measures that go beyond
the meagre economic aid in the traditional sense that they
already provide and invest in the necessary structural changes,
particularly in basic infrastructure, and that the developing
countries develop their capacity to operate in a competitive
environment through programmes that support entrepreneur-
ship and the development of small and medium-sized business-
es and ensure rules on transparency for the use of international
economic aid so as to combat corruption.

that

2.14.
major advantages in terms of intervention:

As an international organisation, the WTO has many

— It promotes the liberalisation of trade and is an expression
of the desire for international regulation of global com-
mercial activity in the current context of globalisation.

— It is institutionally an intergovernmental-multinational

body.

— The decision-making method it has adopted, which is
based on a consensus of the members (2), or if there is
none, recourse to a vote requiring a broad majority
of members, gives it a major advantage over other
international organisations, such as the IMF or the World
Bank, in terms of democracy.

— The high number of member countries (144) with all
their major economic and social differences encompass
the whole range of the world’s diversity.

— With this structure,

in addition to promoting trade
negotiations and resolving trade disputes, the WTO can
and must aim a) to strengthen the developing countries,
b) to promote the just and fair distribution of work
around the world and c) to introduce standards to protect
the environment and food safety and hygiene, always in
accordance with its rules and strategic objectives.

2.15.
For most of the earth’s population, the benefits of the
reduction in trade protectionism to date have yet to be seen.
For this reason, the protests of civil society organisations
directed against international bodies and especially the WTO,
the main exponent of trade liberalisation, are growing increas-
ingly loud. The challenge for everyone, and especially for the
governments of the developing and least developed countries,
is to make trade and international investment a driving force
for development and the reduction of poverty.

2.16.
The EESC, in its capacity as the main institutional
representative at EU level of civil society organisations, plays
an active role in global dialogue and has taken all the current
messages into account. As a result, it would suggest that the
WTO needs to take on a more human face. This necessity
arises, on the one hand, from the fact that in today’s globalised
economy, international trade agreements have implications for
work, health and the environment, and on the other, from the
fact that any interventions should take place with the approval
and input of civil society, through practical participatory
procedures.

3. Developments in the world trade dialogue (Doha

Development Agenda)

3.1.
The Doha Development Agenda from the 4th Minis-
terial Conference in Doha marked a positive step forward for
the future of world trade and gave some hope for the new
round of negotiations that started in January 2003 and will
last until January 2005, setting as key objectives: a) sustainable
development at the centre of trade negotiations (3); b) sup-
porting growth in the developing countries and the LDCs and

( 1) a) COM(2002) 513 final, 18.9.2002 — Communication from
the Commission to the Council and the European Parliament:
Trade and Development: assisting developing countries to
benefit from trade.

b) Council of the European Union: Trade and Development

Council conclusions, 20.11.2002, No 14514/02.

( 2) Marrakesh Agreement Establishing the World Trade Organisation

— Article IX, Paragraph 1.

(3) If the Doha Development Agenda objectives are achieved, ‘Esti-
mates of the welfare gains from eliminating barriers to merchan-
dise trade — in both industrial and developing countries — range
from USD 250 billion to USD 620 billion annually, with about
one-third to one-half accruing to developing countries’ (IMF and
World Bank, Market Access for Developing Country Exports —
Selected Issues, 27.9.2002, p. 5).

6.6.2003

EN

Official Journal of the European Union

C 133/79

c) tackling the scourge of epidemics in the LDCS. The decision
to supply development aid to foster economic and institutional
progress in the developing countries was in essence the
realisation of preexisting WTO agreements (1). It was also
decided that the TRIPS intellectual property rights agreement
should be applied without preventing Member States from
taking the necessary measures to protect public health (patents
on pharmaceutical products).

In its opinion of October 2001 (2) on the preparations
3.2.
for the Doha conference, the EESC expressed the wish that the
conference do more than Seattle to take into account the
aspirations and problems of the developing countries. The
Committee pointed out that the dialogue on social issues and
the environment comes up against major obstacles owing to
the fact that the developing countries focus their interest on
other issues, such as implementation, development and access
to markets.

In the statement issued after the meeting between
3.3.
Commissioner P. Lamy and representatives of civil society on
14 December 2001, it was noted that, except for the problem
of social questions relating to labour, the Commission’s main
objectives for Doha had been met and that a major decision
had been taken in the context of the Doha Development
Agenda on a commitment to supply technical assistance to the
developing countries and to promote capacity building. This
will be implemented in full cooperation with all the donors
such as the World Bank and UNCTAD, and through the
Community Development Policy and Development Pro-
grammes (3).

3.4.
The EESC welcomes the efforts made by the Com-
mission to persuade the WTO’s General Council to set up a
Global Trust Fund to administer technical assistance to the
developing countries so that they participate fully in nego-
tiations.

The EESC expresses its great concern at the delays
3.5.
occurring in the promotion of
the items on the Doha
Development Agenda and calls on the developed and
developing countries to move immediately towards com-
pletion of the necessary negotiations.

4. The social dimension of trade negotiations

4.1.

Social rights in the workplace

4.1.1.
The consolidation of social rights in the work place
was a subject of discussion for the first time at the Singapore
Ministerial Conference (4) and was reaffirmed at the Doha
Ministerial Conference (5), despite the objections of many
developing countries.

The EESC feels it is necessary to kick-start the global
4.1.2.
debate on social rights and expresses its disappointment at the
lack of interest and negative objections from the developing
countries which emerged at the Doha Ministerial Conference.

4.1.3.
Key point: the ESC feels that the best forum for
addressing labour-related social issues is the ILO, as it also
stated in its opinion on ‘Human Rights in the Workplace’ (6).
The WTO must help to resolve these issues by encouraging
positive measures and incorporating into its rules provisions
to exclude members that breach international labour standards
from the benefits of membership.

4.1.4.
The EESC welcomes the Commission Communi-
cation published in July 2001 on labour standards and social
governance in the context of globalisation.

4.1.5.
The EESC firmly supports the work of the ILO and
welcomes the creation of a World Commission on the Social
Dimension of Globalisation, calling on the WTO to collaborate
with it through substantive involvement. The World Com-
mission may help the international community to gain a
greater understanding of the complex problems of globalisa-
tion in the areas of labour and social development.

4.1.6.
Furthermore, the EESC declares its readiness to begin
cooperating formally with the WTO, the ILO and the national
ESCs on current social issues.

4.1.7.
The EESC would stress the need to establish core
labour standards and to promote health and safety standards
in the workplace, during the new round of trade negotiations.
In addition, it emphasises the need for deterrent measures in
the developing countries to discourage child labour.

( 1) Overview of Developments in the International Trading Environ-

ment — § 97 — WT/TPR/OV/8 — 15.11.2002.

( 2) OJ C 36, 8.2.2002.
( 3) Communication — April 2000/Council Conclusions —

10.11.2002.

(4) Singapore Ministerial Declaration.
(5) Doha Ministerial Declaration, Article 8 — WT/MIN(01)/DEC/1-

20.11.2001.

(6) OJ C 260, 17.9.2001, p. 14.

C 133/80

EN

Official Journal of the European Union

6.6.2003

4.1.8.
The EESC will work to set up a permanent consul-
tation procedure between itself and the ILO’s World Com-
mission, on the subject of the ‘social dimension of globalisa-
tion’ and calls on the WTO to give the ILO observer status not
only at its ministerial conferences but also within its other
bodies (1).

4.2.

Trade and the environment

The EESC welcomes international efforts to protect
4.2.1.
the environment in all
its aspects and expresses its strong
desire to see negotiations and programmes speeded up and
consolidated and objections lifted so as to achieve the optimum
result.

4.2.2.
The EESC supports the alignment of international
trade development with the goal of sustainable development,
as viable economic development is one of the three com-
ponents of sustainable development. Major ecological chal-
lenges and important environmental changes at global level
oblige the international organisations to focus their attention
on succeeding in this aim. This is all the more imperative in
view of
the relative progress made at the Johannesburg
Conference on issues relating to environmental protection.

4.2.3.
Key point: the ESC welcomes the fact that the Doha
Declaration (2) includes an agreement between WTO members
to discuss environmental issues affected by trade. The dis-
cussion that followed enabled certain initial conclusions to be
drawn, which will have to be taken up in future, despite the
concerns expressed by various parties.

4.3.

Intellectual property rights and public health

4.3.1.
The major epidemics (HIV/AIDS, malaria) which
continue mainly to afflict the populations of the LDCs and in
particular the countries of Sub-Saharan Africa, are a major
blot on modern culture and divide humanity into those who
have access to basic medical treatment and those who for
economic reasons do not (3).

( 1) European Parliament Resolution on the Communication from the
Commission to the Council and the European Parliament on the
EU’s approach to the so-called WTO Millennium Round A5 —
0062/1999.

( 2) Doha Ministerial Declaration, Articles 31-33 — WT/MIN(01)/

DEC/1-20.11.2001.

4.3.2.

The EESC:

— believes that the right to health is the most valuable and

important human right;

— points out that countries which do not produce medical
drugs are at a major disadvantage in comparison to those
that do;

— welcomes the special statement in the Doha Ministerial
Declaration (4) on the right of states to protect their public
health;

— welcomes the decisions of the TRIPS Council (27.6.2002)
extending protection of intellectual property rights until
2016 for the LDC;

— feels that a flexible global agreement is needed which will
fully meet the LDCs’ public health needs arising from
the spread of epidemics while safeguarding intellectual
property rights so that research and technical develop-
ment is not discontinued;

— emphasises the particular role which the WHO is called
on to play as the relevant body with responsibility for
monitoring and combating diseases which develop into
epidemics threatening large numbers of people;

— believes that there is a direct link between public health
and the reduction of poverty, which is an equally major
problem across the globe;

— agrees with the European Parliament Resolution of
12 February 2003 on generic medicines (p5 — TA-PROV
(2003) 0052/ 12.02.2003);

— believes that new medical discoveries should be more

easily accessible for LDCs.

The EESC supports the Commission’s determined
4.3.3.
efforts to secure agreement among WTO members as soon as
possible laying down: a) the list of states which have the right
to circumvent WTO agreements (5) on the protection of
intellectual property rights for public health reasons, b) an

( 3) More than 15m people die each year from infectious diseases and
40m have HIV/AIDS — many of these people cannot afford the
medicines that would save or prolong their lives — Oxfam News.

(4) Declaration on the Agreement to Protect Intellectual Rights and

Public Health — WT/MIN(01) DEC/2-20.11.2001.

(5) WTO TRIPS Agreement — Article 31.

6.6.2003

EN

Official Journal of the European Union

C 133/81

expanded version of Article 31(f) of the WTO’s TRIPS Agree-
ment allowing insertion of a derogation clause for pharmaceut-
ical products and c) a definition of the term ‘pharmaceutical
products’ (1).

4.4.2.
Key point: the EESC endorses the position of the
Food and Agriculture Organisation (FAO), that improving the
effectiveness of water management systems, improving crop
productivity (more crops per drop) and developing new
sources of water are the key to satisfying the constantly
growing demand for food (3).

The EESC calls on all members of the WTO, especially
4.3.4.
the USA, to lose no time in overcoming the obstacles to
negotiations on amending Article 31(f) of the WTO TRIPS
Agreement and reaching a global agreement.

4.3.5.
On the major subject of the protection of public
health and intellectual property rights, the EESC proposes:
in addition to AIDS/ HIV and malaria, extending the
a)
suspension of protection for intellectual property rights on
drug patents to include other major diseases as proposed by
the Commission, b) extending the list of LDCs from the current
49 to 72, with the exception of China, which has the capability
to produce primary pharmaceuticals, c) doing away with
governmental — political interference with exports of pharma-
ceuticals when the health of a large proportion of
the
population is in danger, d) that the LDCs take tough measures
to address the illegal resale of medicines sold to combat
diseases on international markets at prices that do not reflect
intellectual property rights, and e)
there should be
flexibility in the whole system and in the ways Agreements are
interpreted so that epidemic risks can be addressed effectively.

that

4.4. Balance in world food needs

4.4.1.
Key point: the ESC would stress the need to strike a
balance between the continuing growth of world food needs
and the huge inequality in the distribution of food around the
world (2) and the need for a broader international consensus
on the important issues in agriculture.

( 1) a) DG Trade: Contribution to the WTO: Communication from
the European Committees and their Member States to the
TRIPS Council Relating to Paragraph 6 of the Doha Declaration
on the TRIPS Agreement and public health, 18.6.2002.

b) WTO TRIPS Council — 16.12.2002 — Draft compromise

decision (Perex Motta text).

c) Letter from Commissioner P. Lamy to the Ministers of the

WTO Member States — 7.1.2003 — 5/6.

d) WTO TRIPS Council — 4.3.2002 (IP/C/W/339).
e) WTO Committee on Trade and Development: The WTO
Work Programme on Special and Differential Treatment —
Communication from the European Committees — TN/CTD/
W/26 — 11.12.2002.

f) WTO Committee on Trade and Development: Monitoring
Mechanism for Special and Differential
(S&D) Treatment
Provisions — Joint Communication for the African Group in
the WTO — TN/CTD/W/23-11.12.2002

5. The need to overhaul the WTO’s operations

5.1. WTO views on its operations

5.1.1.
The WTO has evolved from a forum for technical
trade negotiations into an intergovernmental organisation that
administers global trade policy through the trade ministers of
its Member States. Trade agreements are enforced, on the one
hand, by the trade policy review mechanism, (TPRM) and on
the other through the WTO’s effective dispute settlement
mechanism and, if necessary, the imposition of trade sanctions.
It is therefore absolutely clear that the WTO must operate at
global level in a completely transparent way.

The WTO now maintains that: (4) a) it has made
5.1.2.
adequate progress in the area of transparency since GATT; b) it
has a well-organised web site through which the general public
has access to its documents and decisions; c) it has developed
a serious dialogue with parliamentary representatives, cham-
bers of commerce, workers’ unions and organised civil society
by means of symposia; d) it has established short- and long-
term educational programmes (5) and six-monthly ‘Geneva
Weeks’ to which the poorest of the LDCs are invited to be
informed on international trade developments and the Doha
Development Agenda negotiations, with all their costs covered
by the WTO budget; this programme is also designed to
develop the trade negotiation capacities of LDC representatives;
and e)
the WTO works closely with other international
organisations to promote additional technical assistance for
the LDCs, such as the Integrated Framework (IF), a combined
initiative of the IMF, the International Trade Centre, UNCTAD,
UNDP, the World Bank, and the Joint Integrated Technical

(3) 26th FAO Regional Conference for the Near East, 9-13.3.2002.
(4) Annual Report 2002.
(5) a) WT/COMTD/W/89/Rev. 1, 14.1.2002.

( 2) Doha Ministerial Declaration, Article 13 — WT/MIN(01)/DEC/1-

b) WTO Training Institute, WTO Trade Policy Courses: A

20.11.2001.

proposal for Expansion.

C 133/82

EN

Official Journal of the European Union

6.6.2003

Assistance Programme (JITAP), set up to help the poorest
LDCs take part in world trade negotiations. Despite this, the
WTO administration recognises that there is a need for it to
become more democratic and to assist
the developing
countries in becoming fully involved in its work and decision-
making.

5.2.

The Commission’s views on the WTO’s operations

5.2.1.
Before the Doha Ministerial Conference, the Com-
mission, through Commissioner P. Lamy, set up specialist
study groups with socio-occupational
interest groups and
NGOs and formulated specific proposals for the reform of
WTO procedures and operations, while repeatedly noting the
need for greater technical support to be given to the developing
countries in order for them to develop the capacity to take
part in the procedures. In the Commission’s view, the main
issues requiring immediate attention are transparency, greater
information and publicity and the essential participation of the
developing countries, given that they number 100 of the
144 members. With the start of the new round of negotiations,
the Commission’s proposals for the WTO’s informal oper-
ations and mechanisms in future include the following:

a)

b)

c)

annual open meetings with parliamentarians of WTO
members and the public, as a means of highlighting the
policy issues that affect the trade system;

the development of better consultation procedures to
reach consensus on matters such as transparency and
participation, naturally ensuring that the organisation’s
operations remain effective;

the creation of a small consultative group with no
decision-making powers, to advise the director-general
when required on current
recommendations to the
General Council.

The EESC agrees in principle with the Commission’s views, but
as far as the proposal for the creation of an consultative group
is concerned, it believes that it will first be necessary to
establish the required selection criteria for members, so as to
ensure as far as possible that the selection process is totally
above board and effective with the greatest possible degree of
flexibility, and that the body is then established with clear and
distinct responsibilities.

The EESC wholeheartedly endorses the Commission’s views
and congratulates it on the considerable effort it has put into
giving the WTO a more human face and for establishing a
structured and meaningful dialogue with civil society.

Having repeatedly expressed its views on the issues
5.3.2.
of transparency and the more active involvement of civil
society players in the WTO’s procedures, despite strong
objections from many LDCs, which have a major ‘democratic
deficit’ (1) (2), the EESC believes that the time is ripe for the
process of reforming the WTO’s operations, making for
greater transparency and democracy, while maintaining its
intergovernmental nature.

5.3.3.
One of the most significant issues raised by the
socio-occupational groups and NGOs is the level of external
and internal
transparency in the WTO’s procedures and
operations. Further progress in the area of transparency could
also secure greater efficiency for all WTO members, especially
in decision-making.

On this note, the EESC accepts the following points:

5.3.3.1. Access to WTO documentation and records

5.3.3.1.1.
One of the most serious criticisms levelled at the
WTO, as regards the transparency of its operations, concerns
freedom of access to its documents and the way they are
distributed and circulated. Following an important decision
taken recently by the General Council (3), all WTO documents
are to be made freely available, with the exception of certain
cases where a State may ask for a document’s circulation to be
restricted for a maximum of 90 days.

5.3.3.1.2.
The EESC welcomes this decision and calls on
the General Council to continue to review the issue of greater
transparency in the WTO’s bureaucratic operations.

5.3.3.2. Consultation of civil society — The role of NGOs

External transparency in WTO matters (4) can be
5.3.3.2.1.
achieved primarily at national
level. A dialogue between
national governments and civil society representatives on

5.3.

The EESC’s views on the WTO’s operations

5.3.1.
to the
The EESC has contributed a great deal
Commission’s efforts to set up a structured dialogue with civil
society not only at European level, but also at world level by
promoting dialogue with civil society players in e.g. the
Euromed countries, the ACP countries, Latin America, China,
India, etc.

(1) OJ C 368, 20.12.1999.
(2) OJ C 36, 8.2.2002.
(3) WTO — Procedures for the circulation and derestriction of WTO

documents (14.5.2002) — WT/L/452 — 16.5.2002.

(4) G. Marceau and P. Pedersen, Is the WTO open and transparent? A
discussion of the relationship of the WTO with non-governamen-
tal organisations and civil society’s claim for more transparency
and public participation, J.W.T. Vol. 33 No 1, pp. 5-49 (1999).

6.6.2003

EN

Official Journal of the European Union

C 133/83

WTO matters would not only help in securing consensus but
would also convey more information and knowledge to
other stakeholders affected by the WTO’s decisions, such as
businesses, workers, consumers, stock markets, importers and
suppliers. This process of providing information would further
promote globalisation and trade liberalisation. At the same
time, governments would have the opportunity to obtain
significant assistance from the specialised consultative support
of the groups and organisations concerned, such as national
trade and industry associations. Some of the LDCs undoubtedly
have a major ‘democratic deficit’ problem, a very low level of
civil society representation and a virtual absence of consul-
tation between social players and NGOs. The WTO should
follow the same procedure at international level, in conjunction
with international civil society players, taking as its example
the successful cooperation between the Commission and civil
society at European level on WTO matters.

5.3.3.2.2.
The role of NGOs has been the subject of frequent
discussions between WTO members. The WTO has repeatedly
stated that the interests of all a country’s citizens are only
expressed by the official government. However, this restriction
does not exclude relations between WTO members and the
representatives of NGOs (1). The first Ministerial Conference in
Singapore in 1996 was attended by representatives from
108 NGOs. At the Doha Conference, the number of NGO
representatives registered was over 600.

include the social partners,

The EESC highlights the special role played by
5.3.3.2.3.
NGOs (2), which do not
i.e.
employers and workers, in dealing with particularly sensitive
social
issues and recognises that the interests of a state’s
citizens must be represented by some players who are not
dependent on the government of that state. However, essential
requirements for this representation to be genuine and effective
are that the representatives are democratically elected by
significant segments of the population and that their financial
management is transparent.

Having in previous opinions (3) defined the cri-
5.3.3.2.4.
teria of representativeness for NGOs at European level, the

EESC proposes the following criteria which may also be used
in NGO-WTO relations.

— An NGO must: exist permanently at global level, or over

a large part of the planet;

— An NGO must: provide direct access to its members’
expertise and hence rapid and constructive consultation;

— An NGO must: represent general concerns that tally with

the interests of global society;

— An NGO must: comprise bodies that are recognised at
national level as representative of particular interests;

— An NGO must: have member organisations in most of

the WTO member countries;

— An NGO must: provide for accountability to its members;

— An NGO must: have authority to represent and act at

global level;

— An NGO must: be independent and not bound by

instructions from outside bodies;

5.3.3.2.5.
The only official channels giving civil society
access to WTO decisions have so far been the symposia and
congresses held in parallel with the Ministerial Conferences
where the WTO is represented by the accredited economic
diplomats of its member countries. The representatives of civil
society feel that this involvement is too low-key because of the
very long time lapse between Ministerial Conferences and is
still far removed from the day-to-day functioning of the WTO.

5.3.3.2.6.
The EESC agrees with the proposal by the
Commission and the European Parliament that the WTO
should adopt a specific procedure for consultation with the
social partners and NGOs, and offers its services to the
Commission to help achieve this. To ensure the mutual
dialogue has a strong and viable foundation and to create a
reliable institutional framework, it also proposes the establish-
ment of a specific ethical code.

5.3.3.2.7.
The EESC would recommend that civil society
operators have access to the daily running of the WTO by
attending General Council meetings as observers.

5.3.3.3. Access for parliaments and civil society to consul-
tation procedures and the trade policy review mech-
anism (TPRM)

5.3.3.3.1.
The aim of the trade policy review mechanism
(TPRM) (4) (5) according to the founding articles of the WTO,

( 1) Relations between the WTO and NGOs are detailed in Article V:2
of the Marrakesh Agreement and the General Council directives
of 18 June 1996 (WT/L/162).

( 2) International Centre for Trade and Sustainable Development —
ICTSD — Association Schemes and Other Arrangements for
Public Participation in International For a.

( 3) OJ C 125, 27.5.2002.

(4) Agreement establishing the World Trade Organisation, Arti-

cle III (4).

(5) Agreement establishing the World Trade Organisation, Arti-

cle III (3).

C 133/84

EN

Official Journal of the European Union

6.6.2003

is to monitor and contribute to improving members’ com-
pliance with the rules, regulations and commitments contained
in the multilateral trade agreements, and to examine the
repercussions of trade policies and practices for members’
economies and for the multilateral trade system at regular
intervals. In practice, however, a good many problems have
been observed in particular when examining the impact of
trade policies on the member states and the reliability of states’
reports regarding not so much economic as social and
environmental data.

5.3.3.3.2.
The EESC proposes mandatory involvement and
consultation of national parliaments and civil society organis-
ations in shaping the decisions on commercial, political and
national reports submitted under the TPRM before the official
texts are published.

5.3.3.6.

Establishment of a specific code of conduct for
communication with civil society

5.3.3.6.1. Most international organisations, such as the
United Nations, the World Bank, and the Organisation for
Economic Cooperation and Development have, to varying
degrees, mechanisms for consultation with civil society organ-
isations and for the mutual exchange of information. The
WTO claims that it is different from the other organisations in
that its decisions are not simply binding, but are enforced,
sometimes with penalties such as trade sanctions; this argu-
ment does not hold water as other international organisations
have similar procedures such as drafting and monitoring
agreements and settling disputes.

5.3.3.6.2.
The EESC reaffirms the basic principles of the
code of conduct set out in previous opinions (1). Such a code
could also include the following:

5.3.3.4.

Process of informing civil society of progress made
in negotiations

— a clear declaration rejecting any form of coercion and

promoting mutual dialogue;

5.3.3.4.1.
Civil society could be informed of the progress
made in the new round of negotiations by means of a specific
procedure at national or regional level and, of course, through
the WTO secretariat, by means of special open seminars, held
at fixed intervals as required.

5.3.3.5. The role of Economic and Social Councils

The WTO ought to set up a group of interlocutors
5.3.3.5.1.
representing a large portion of civil society. Economic and
social councils, where they exist, are a very good potential
interlocutor for the development of regular cooperation with
the WTO.

5.3.3.5.2.
The EESC calls for greater involvement of the
Economic and Social Councils, in countries where they exist,
in the work of the WTO, and the establishment of similar
bodies in the developing countries where there is a serious
democratic deficit and a lack of social consultation.

— the commitments of the signatory socio-professional
organisations and NGOs to conform to certain rules on
transparency (mission, members, organisation, funding
etc.);

— the commitments of the WTO Secretariat as regards the
organisation of these consultations (reporting and access
to documents, consultations,
information provision,
evaluations, Internet forums etc.). Specifically, the Sec-
retariat could make provision for holding an annual
public hearing;

— an invitation to the representatives of the information
society and NGOs to take part in publicity campaigns, in
studies of situations and challenges, taking on responsi-
bilities in the context of the WTO’s activities, as well as
submitting any useful proposal on matters related to
the WTO’s activities to the WTO bodies, supporting
implementation of the WTO’s commitments and pro-
grammes, useful participation in groups and helping to
identify problems and progress in implementing the
plans;

— an invitation to the WTO member countries to implement
similar arrangements for consultation with the represen-
tatives of civil society and NGOs at European level.

5.3.3.5.3.
The EESC proposes that it take the initiative of
coordinating Economic and Social Councils where these exist
worldwide (e.g. African ESCs, Chinese ESC, etc) on WTO
matters by drawing up joint opinions to be presented at the
Ministerial Conferences as the contribution of civil society.

(1) EESC Opinion on the preparation of the 4th WTO Ministerial
Conference in Qatar: ESC position, points 3.9, 3.9.1, 3.9.2, 3.9.3,
3.9.4, 3.9.5, OJ C 36, 8.2.2002.

6.6.2003

EN

Official Journal of the European Union

C 133/85

5.3.3.7.

Establishment of some kind of parliamentary super-
vision

5.3.3.7.1.
The proposal by the Commission and the Euro-
pean Parliament to establish possible parliamentary super-
vision of trade policies would help to increase WTO trans-
parency and to supply the Member States with more infor-
mation but, most of all, would contribute to making the
WTO’s operations and decision-making procedures more
democratic.

5.3.3.7.2.
Parliamentary supervision would also contribute
to greater understanding of the economic and social impli-
cations of trade policies for each individual member state.

5.3.3.7.3.
The EESC is in favour of introducing a parliamen-
tary dimension to the WTO, despite the inherent difficulties,
as, apart from ministerial conferences, member states are
represented by officials rather than elected representatives in
the work done by the General Council in the intervening
periods. It therefore calls on the EU and the WTO Secretariat
to work to achieve this.

5.3.3.8. Civil society access to the dispute settlement system

Organised civil society has no access to the
5.3.3.8.1.
meetings of the special panels of the Dispute Settlement Body
(DSB) or to the proceedings of the second level of arbitration,
the Appellate Body. As a rule,
these bodies operate in
accordance with the rules of international public law and, as
far as civil society bodies are concerned, there is no reason
why there should not be free access to information on
developments and decisions concerning trade negotiation
disputes as soon as the parties concerned have been informed.

5.3.3.8.2.
Article 13 (1) of the Understanding on rules and
procedures governing the settlement of disputes clearly states
that each panel has the right to seek information and technical
advice from any individual or body which it deems appropriate,
and that confidential information that is supplied to the panel
must not be revealed without the express authorisation of
the individual, organisation or authority that provided it.
Furthermore, the panels can request information from any
relevant source and consult experts to get their views on
certain aspects of
the
contribution of organised civil society has been minimal to
date.

In practice, however,

the matter.

Body are usually experts on international trade law, etc. and
b) often the trade agreements in question have a direct or
indirect impact on social developments, for instance on a
country’s unemployment situation, on the environment, on
health, or on economic development, etc.

The EESC asks the LDCs to put aside their
5.3.3.8.4.
objections to representatives of civil society being involved in
the dispute settlement mechanism and supports the Com-
mission’s position on this matter, which will
increase the
WTO’s transparency and democratic sensitivity.

5.4. Developing the capacity of the developing countries and LDCs

to take part in the WTO’s institutional proceedings

5.4.1. Most of the developing countries and LDCs have a
major or total lack of capacity to take part in the WTO’s
workings, to understand trade policies and their implications
or to be aware of the regulations at regional and national as
well as international level. Furthermore, in spite of substantial
financial assistance from the Commission, they are often
unable to have systematic representation on the WTO’s various
committees and meetings where major topics are negotiated
as, on the one hand, they lack the right people with the
appropriate qualifications and, on the other, they cannot cover
the expense of permanent representations or delegations. The
establishment of the representation office (1) for the African,
Caribbean and Pacific (ACP) countries to support
these
countries in international trade negotiations marks a positive
first step.

The Doha Development Agenda includes a special
5.4.2.
reference to the LDCs’ difficulties in participating in inter-
national trade negotiations and sets a specific timetable of
support measures (2).

5.4.3.
The EESC recommends ensuring that the developing
countries have the financial and human resources to be able to
implement the arrangements adopted.

5.4.4.
In the EESC’s view, there is a constant need for more
WTO appropriations to provide technical support and training
for the LDCs in conjunction with the programmes of other
international organisations, in order to enable them to take
part in the WTO on an equal footing; meanwhile, controls on
the funds made available should also be stepped up to ensure
that they are not wasted and do not fall prey to corruption.

The EESC is in favour of civil society involvement
5.3.3.8.3.
in the dispute settlement mechanism,
to offer advice on
matters that require specialist knowledge such as issues relating
to work,
for the following
reasons: a) the participants in the panels and in the Appellate

the environment and health,

(1) This office has been funded by the EU at a cost of USD 1,4 m.
(2) Doha ministerial decision– support measures — WΤ/ΜΙΝ(01) /

17-20.11.2001.

C 133/86

EN

Official Journal of the European Union

6.6.2003

5.5. Reconciling the full involvement of members and the efficiency

of the WTO’s operations

of implementation, transparency, faster decisions and rulings
from the consultative judicial body, the possibility of submit-
ting observations on an amicus curiae basis, etc.

5.5.1.
The large number of members causes major prob-
lems when it comes to the necessary participation rate and
presence on formal and informal institutional bodies. As well
as institutionalising the reduced Ministerial Conferences, the
EESC proposes setting up bodies with the limited participation
of a manageable number of members, by choosing a selection
and voting model that suits the WTO’s purposes without
compromising the basic democratic principle of one member
— one vote.

5.6.

Establishing institutionalised cooperation with other inter-
national organisations

In the current globalised economic and social con-
5.6.1.
text, it is important to be aware that trade does not happen in
a vacuum and that trade negotiations are influenced by and
influence the decisions and policies of other international
organisations. In the context of effective global cooperation,
WTO cooperation with the other international organisations
is essential.

5.6.2. WTO cooperation with UNCTAD on establishing
the International Trade Centre (ITC), which is designed to help
the developing countries and transition economies to take part
in world trade, and promotion of the JITAR programme are
useful
initiatives. WTO cooperation with the
World Health Organisation (1), the International Monetary
Fund, the International Telecommunication Union, the World
Bank and the World Intellectual Property Organisation (2) is
also proving particularly useful.

international

5.7. Modifying the dispute settlement system

5.7.1.
On the basis of the experience gained with the
Dispute Settlement Understanding over the last six years, the
WTO accepts that despite its major contribution to solving
trade disputes between the member states, the system needs
improving on a number of counts. At the Doha Ministerial
Conference, the members undertook to start negotiations on
improving and updating the understanding with a view to
concluding them by May 2003.

5.7.2.
The Commission has made specific proposals for the
reform of the understanding, such as the appointment of
delegates to take part in the panels on a permanent basis as
opposed to the current case by case set-up, and on the subjects

it

5.7.3.
Although it supports these proposals, the EESC
would like to point out that, to be fair and effective, a dispute
settlement system should be based on the following principles:
first, that every member state is equal before the law; second,
the possibility of direct and proper access to the dispute
settlement system; and third, compliance with international
law. Nevertheless,
is highly doubtful whether the least
developed countries are able to make proper use of the WTO
system in its current form. Firstly, because the interpretation
and application of the WTO’s various regulations and agree-
ments is becoming increasingly complicated and difficult. The
EESC therefore judges it necessary to further strengthen and
broaden the procedures for providing these countries with
assistance, both financial and in the form of know-how and
education to enable them to analyse, understand and properly
apply all the WTO agreements. Secondly, the chances of these
countries taking part and defending their interests before a
panel or the Appellate Body are at present slim, owing to the
complicated nature of the regulations and the fast pace of the
proceedings. For this reason, the EESC believes that the start-
up in 2001 of the Advisory Centre for WTO Law has filled a
major gap. Already, the services provided by this centre are
starting to bear real fruit (cf. the result of the dispute between
Peru and the EU over the trade description of sardines). In
addition to the EU Member States, which have already offered
considerable assistance for the establishment of the Centre,
the other WTO members should also help in the further
development and reinforcement of the Advisory Centre.

Despite major improvements,

5.7.4.
the WTO’s dispute
settlement system is not sufficiently supportive and accessible
to the developing countries, which are a case apart owing to
their fragile economies and are therefore unable to make the
most of the mechanism’s benefits (3). The reasons for the
developing countries not accessing or using the mechanism
are the following: a) they do not have the domestic mechanisms
for foreign trade that would channel the necessary information
to governments, or require governments that are in violation
of the rules to fall in line, b) there is a lack of awareness at
national
level of the WTO’s regulations, conventions and
mechanisms, c) their public administrations do not have the
necessary knowledge or expertise, d) the political will is often
lacking, e) they cannot afford expert advice.

( 1) WTO Agreements and Public Health — 20.8.2002.
( 2) WT/COMTD/W/102, 16.7.2002.

(3) Enforcing Multilateral Commitments: Dispute Settlement and
Developing Countries — B. Hoeckman — P. Mavroidis,
14.9.1999, The WTO/World Bank Conference on Developing
Countries in a Millennium Round.

6.6.2003

EN

Official Journal of the European Union

C 133/87

5.7.5.
The EESC is concerned at the lack of clarity in a
number of WTO agreements which inevitably leads to appeals
to the dispute settlement mechanism and calls on all parties
involved to strive for clearer agreements.

The EESC is also worried about the immediate and
5.7.5.1.
serious effect which some dispute-settlement cases have on
private third parties (especially SMEs and consumers). The
withdrawal of concessions by a WTO member does not
penalise the state instigating the measure that infringes WTO
rules or its authorities. Instead it is innocent firms which are
penalised, with in some cases their very survival being
threatened. Because WTO law is not directly applicable at the
moment, these firms are virtually unable to seek legal redress
from their state (or community of states) that has been proved
to be acting illegally by the WTO dispute settlement procedure.
This is not compatible with the legal principles in force in the
European Union. In order to gain greater acceptance for the
WTO dispute-settlement machinery and give it a stronger legal
basis, the Commission — working in liaison with the Council
of Ministers in the WTO but also at EU level — should act to
rectify this shortcoming forthwith.

5.7.6.
The EESC proposes the following on the subject of
the dispute settlement system: a) increasing technical and legal
assistance for LDCs, b) speeding up the procedures and in
particular dispute settlement times distinguishing between
cases in terms of their economic importance, where more
minor cases (under USD 1 million) would not be subject to all
the mechanisms, c) further strengthening the Geneva office of
the ACP countries, in order to compensate fully for their
weaknesses, and d) increasing the presence of specialised civil
society representatives on the panels which carry out the initial
investigation of infringements.

Brussels, 26 March 2003.

5.8.

Sanctions

Sanctions are the WTO’s weapon of last resort to
5.8.1.
enforce the rules and procedures agreed, as described in
multilateral and plurilateral trade agreements, and they are
applied when all measures foreseen by the dispute settlement
understanding have been exhausted, and the infringement
continues.

5.8.2.
Imposing sanctions on one or more contracting
States often affects a large group of States while often damaging
trade for third parties or the LDCs.

5.8.3.
It is, however, well known that the imposition of
sanctions as a means of bringing pressure to bear on countries
to comply with the decisions of a panel, the Appelate Body or
the Dispute Settlement Body (DSB), is essentially impossible
for the developing and less developed countries. All these
countries are directly dependent on imports, and the result is
that sanctions are not a viable alternative option. For this
reason, the EESC supports the Commission’s proposal to give
these countries the opportunity to request, under certain
conditions, the immediate payment of compensation or anoth-
er form of compensatory trade advantage other than the right
to impose trade sanctions.

5.8.4.
The EESC is concerned at the increasing use of
sanctions and believes that in trade relations it is preferable to
find a compromise solution to differences rather than using
legal means and sanctions. It calls on the WTO member states
to launch a substantive debate on the sanctions applied under
WTO statutes and the intermediate pre-sanction procedure
proposed by the Commission which will allow a state to offer
compensatory measures in cases of infringement. This debate
must clarify all aspects of sanctions (when and how sanctions
are imposed, and by whom) to secure greater flexibility and
transparency.

The President

of the European Economic and Social Committee

Roger BRIESCH