List of tables. charts and boxes Chapter Two-WTO activities Table‖.1 Waivers under Artice IX of the WTO Agreement Tabe‖.2 porters subject to initiations of countervailing investigations, 1 July 2003-30 June 2004 Table 113 Summary of countervailing duty actions, 1 July 2003-30 June 2004 38 Table‖.4 Summary of anti-dumping actions, 1 July 2003-30 June 2004 40 Tabe‖.6 porters subject to two or more initiations of anti-dumping investigations, 1 July 2003-30 June 2004 40 Request for consultations Box IL 1 Background on the Integrated Framework Tabe‖.7 NGo attendance at ministerial conferences Tab|e‖.8 nternational intergovernmental organizations observer status in the wto Tabe‖9 Table ll.10 observer status in certain other bodies Table 1.11 International intergovernmental organizations 676034 Observer status in committees under the plurilateral trade agreements Chapter Three -Organization, Secretariat and budget Table‖!1 Table of regular staff by nationality Tabe‖2 Distribution of staff positions within the WTO's various divisions TableⅢ3 WTO Secretariat budget for 2005 5511 Budget for the Appellate Body and its Secretariat, 2005 Tabe‖.5 Members contributions to the WTO budget and the budget of the Appellate Body, 2005 WTo 10n Anniversary Chart 1 Sector focus of current commitments, November 2004 ommitments of different groups of Members, November 2004 Sector profile of initial offers, November 2004 Chart 3 Content of initial offers (new commitments versus improvements), November 2004 131 Number of trta activities 158 WTO technical assistance- expenditure WTo technical assistance -resources
6)) ,ISTOFTABLESCHARTSANDBOXES #HAPTER4WOn74/ACTIVITIES 4ABLE)) 7AIVERSUNDER!RTICLE)8OFTHE74/!GREEMENT 4ABLE)) %XPORTERSSUBJECTTOINITIATIONSOFCOUNTERVAILINGINVESTIGATIONS*ULYn*UNE 4ABLE)) 3UMMARYOFCOUNTERVAILINGDUTYACTIONS*ULY *UNE 4ABLE)) 3UMMARYOFANTI DUMPINGACTIONS*ULYn*UNE 4ABLE)) %XPORTERSSUBJECTTOTWOORMOREINITIATIONSOFANTI DUMPINGINVESTIGATIONS*ULYn*UNE 4ABLE)) 2EQUESTFORCONSULTATIONS "OX)) "ACKGROUNDONTHE)NTEGRATED&RAMEWORK 4ABLE)) .'/ATTENDANCEATMINISTERIALCONFERENCES 4ABLE)) )NTERNATIONALINTERGOVERNMENTALORGANIZATIONSn/BSERVER3TATUSINTHE74/ASAT*ULY 4ABLE)) )NTERNATIONALINTERGOVERNMENTALORGANIZATIONSn/BSERVERSTATUSINTHE74/ 4ABLE)) /BSERVERSTATUSINCERTAINOTHERBODIES 4ABLE)) )NTERNATIONALINTERGOVERNMENTALORGANIZATIONSn /BSERVERSTATUSINCOMMITTEESUNDERTHEPLURILATERALTRADEAGREEMENTS #HAPTER4HREEn/RGANIZATION3ECRETARIATANDBUDGET 4ABLE))) 4ABLEOFREGULARSTAFFBYNATIONALITY 4ABLE))) $ISTRIBUTIONOFSTAFFPOSITIONSWITHINTHE74/gSVARIOUSDIVISIONS 4ABLE))) 74/3ECRETARIATBUDGETFOR 4ABLE))) "UDGETFORTHE!PPELLATE"ODYANDITS3ECRETARIAT 4ABLE))) -EMBERSgCONTRIBUTIONSTOTHE74/BUDGETANDTHEBUDGETOFTHE!PPELLATE"ODY 74/TH!NNIVERSARY #HART 3ECTORFOCUSOFCURRENTCOMMITMENTS.OVEMBER 4ABLE #OMMITMENTSOFDIFFERENTGROUPSOF-EMBERS.OVEMBER #HART 3ECTORPROFILEOFINITIALOFFERS.OVEMBER #HART #ONTENTOFINITIALOFFERSNEWCOMMITMENTSVERSUSIMPROVEMENTS .OVEMBER .UMBEROF424!ACTIVITIES 74/TECHNICALASSISTANCEnEXPENDITURE 74/TECHNICALASSISTANCEnRESOURCES
Abbreviations and symbols Asia-Pacific Economic Cooperation ASEan Association of south-East Asian Nations Central European Free Trade Agreement Commonwealth of Independent States ECU EFTA ee trade association European Union Foreign direct investment Gross domestic Product Gross National Product International Monetary Fund A Latin American Integration Association MERCOSUR Southern Common Market NAFTA North American Free Trade Agreement OECD Organisation for Economic Cooperation and Development terms of trade UNCTAD United Nations Conference on Trade and Development ost, insurance and freight free on board not available The following symbols are used in this publication not applicable o figure is zero or became zero due to rounding s United States dollars Billion means one thousand million Minor discrepancies between constituent figures and totals are due to rounding customs unions, regional and other country groupings: (i)merchandise trade figures do include the intra-trade of free trade areas, Unless otherwise indicated, (O) all value figures are expressed in US dollars: (i) trade figure exports are fo b and merchandise imports are c i.f. Data for the latest year are provisio a customs basis, and (iv)merchandise
!BBREVIATIONSANDSYMBOLS !0%# !SIA 0ACIFIC%CONOMIC#OOPERATION !3%!. !SSOCIATIONOF3OUTH %AST!SIAN.ATIONS #%&4! #ENTRAL%UROPEAN&REE4RADE!GREEMENT #)3 #OMMONWEALTHOF)NDEPENDENT3TATES %#5 %UROPEANCURRENCYUNIT %&4! %UROPEAN&REE4RADE!SSOCIATION %5 %UROPEAN5NION &$) &OREIGNDIRECTINVESTMENT '$0 'ROSS$OMESTIC0RODUCT '.0 'ROSS.ATIONAL0RODUCT )-& )NTERNATIONAL-ONETARY&UND ,!)! ,ATIN!MERICAN)NTEGRATION!SSOCIATION -%2#/352 3OUTHERN#OMMON-ARKET .!&4! .ORTH!MERICAN&REE4RADE!GREEMENT /%#$ /RGANISATIONFOR%CONOMIC#OOPERATIONAND$EVELOPMENT 4/4 TERMSOFTRADE 5.#4!$ 5NITED.ATIONS#ONFERENCEON4RADEAND$EVELOPMENT CIF COSTINSURANCEANDFREIGHT FOB FREEONBOARD NA NOTAVAILABLE 4HEFOLLOWINGSYMBOLSAREUSEDINTHISPUBLICATION NOTAPPLICABLE FIGUREISZEROORBECAMEZERODUETOROUNDING 5NITED3TATESDOLLARS "ILLIONMEANSONETHOUSANDMILLION -INORDISCREPANCIESBETWEENCONSTITUENTFIGURESANDTOTALSAREDUETOROUNDING 5NLESSOTHERWISEINDICATEDI ALLVALUEFIGURESAREEXPRESSEDIN53DOLLARSII TRADEFIGURESINCLUDETHEINTRA TRADEOFFREETRADEAREAS CUSTOMSUNIONSREGIONALANDOTHERCOUNTRYGROUPINGSIII MERCHANDISETRADEFIGURESAREONACUSTOMSBASISANDIV MERCHANDISE EXPORTSAREFOBANDMERCHANDISEIMPORTSARECIF$ATAFORTHELATESTYEARAREPROVISIONAL
Chapter One NERVE
#HAPTER/NE /6%26)%7
Overview Introduction 2004 has been a very active and productive year for the multilateral trading system, both in terms of progress in the Doha Development Agenda(DDA)as well as in the WTOs regular work. These developments have taken place against the backdrop of a much healthier global economy. The DDA was given an important boost with Members' decision in July a package of to concretely advance the which had, until then, been among the most difficult and intractable. The july Decision of the General Council put the DDa firmly back on track after the disappointing outcome to the WTO's Fifth Ministerial Conference in Cancun. With progress in all areas, in particular on agriculture, and a determination on the future treatment of the "singapore issues", the parameters of the negotiations are clearer. The challenge now before Members is to build upon these foundations in order to develop the consensus necessary to conclude the Round This will require considerable technical work as well as serious political commitment and determination Work has also continued in settling disputes, providing surveillance of Members'trade olicies, and implementing the Uruguay Round agreements By the end of 2004, the total number of cases brought to the WTO's dispute settlement system had risen to 324. Between January 2004 and the end of March 2005, 21 Trade Policy Reviews were conducted. The yea 2004 also saw the end of the ten-year transitional implementation period of the Agreement on Textiles and Clothing which had been agreed as part of the Uruguay Round. This brought to an end more than 40 years of trade restricting textiles quotas. In addition, the WTO Secretariat has continued to intensify its efforts to provide more and varied technical assistance activities as well as to reach out to the wider public. Over the course of the year more than 450 technical assistance activities were undertaken. Efforts have also been made to step up policy coherence with the Bretton Woods institutions. Two General Council meetings were devoted to coherence in 2004 Furthermore the WTO is becoming a more universal organization. Following domestic ratification procedures, Cambodia and Nepal became WTO Members in 2004. This brings the total WTO Membership up to 148. As of 31 December 2004, 28 Governments were actively pursuing accession to the WTO. Coping with an increasingly large and diverse membership is among the major challenges facing the WTO. With this in mind, the Director- General had asked a group of eminent persons to reflect upon the systemic challenges the WTO faces and how this institution could be reinforced and equipped to meet them. In anuary 2005, this group, chaired by Peter Sutherland, released their Report: The Future of the WTO: Addressing Institutional Challenges in the New Millennium. The Report and its recommendations are currently under consideration by WTO Members. Trade developments In 2004, the world economy recorded its In more providing the foundations for an expansion of world trade World GDP grew by 4 per cent and world merchandise trade rose by 9 per cent in real terms. The year 2004 also witnessed a narrowing of the gap between the regional GDP growth rates of the fastest growing and he least dynamic regions between 2003 and 2004. As in recent years, developing Asia and Commonwealth of Independent States( CIS)member countries reported the strongest output growth worldwide, at 7 to 8 per cent. South America's GDP growth accelerated to 6 per cent in 2004, the regions strongest growth since 1986. North America's growth picked up in 2004, reaching 4.3 per cent, which slightly exceeds the global average Provisional data for Africa and the Middle East point to an economic growth in 2004 close to the global avera This would represent a marked improvement against the record of the 1990s. There were some weaker spots, however, on the global economic map. The euro area recorded growth of 2.3 per cent which is only a marginal improvement in economic activity. In Japan, economic growth ground to a halt after the first quarter of 2004 but still gained an average expansion of 2.6 per cent on a year to year basi
/VERVIEW )NTRODUCTION /VERVIEW )NTRODUCTION HASBEENAVERYACTIVEANDPRODUCTIVEYEARFORTHEMULTILATERALTRADINGSYSTEMBOTH INTERMSOFPROGRESSINTHE$OHA$EVELOPMENT!GENDA$$! ASWELLASINTHE74/SREGULAR WORK4HESEDEVELOPMENTSHAVETAKENPLACEAGAINSTTHEBACKDROPOFAMUCHHEALTHIER GLOBALECONOMY4HE$$!WASGIVENANIMPORTANTBOOSTWITH-EMBERSDECISIONIN*ULY ONAPACKAGEOFMEASURESTOCONCRETELYADVANCETHENEGOTIATIONSINSOMEOFTHEAREAS WHICHHADUNTILTHENBEENAMONGTHEMOSTDIFFICULTANDINTRACTABLE4HE*ULY$ECISIONOF THE'ENERAL#OUNCILPUTTHE$$!FIRMLYBACKONTRACKAFTERTHEDISAPPOINTINGOUTCOMETO THE74/S&IFTH-INISTERIAL#ONFERENCEIN#ANCÞN7ITHPROGRESSINALLAREASINPARTICULAR ONAGRICULTUREANDADETERMINATIONONTHEFUTURETREATMENTOFTHEh3INGAPOREISSUESvTHE PARAMETERSOFTHENEGOTIATIONSARECLEARER4HECHALLENGENOWBEFORE-EMBERSISTOBUILD UPONTHESEFOUNDATIONSINORDERTODEVELOPTHECONSENSUSNECESSARYTOCONCLUDETHE2OUND 4HISWILLREQUIRECONSIDERABLETECHNICALWORKASWELLASSERIOUSPOLITICALCOMMITMENTAND DETERMINATION 7ORKHASALSOCONTINUEDINSETTLINGDISPUTESPROVIDINGSURVEILLANCEOF-EMBERSTRADE POLICIESANDIMPLEMENTINGTHE5RUGUAY2OUNDAGREEMENTS"YTHEENDOFTHETOTAL NUMBEROFCASESBROUGHTTOTHE74/SDISPUTESETTLEMENTSYSTEMHADRISENTO"ETWEEN *ANUARYANDTHEENDOF-ARCH4RADE0OLICY2EVIEWSWERECONDUCTED4HEYEAR ALSOSAWTHEENDOFTHETEN YEARTRANSITIONALIMPLEMENTATIONPERIODOFTHE!GREEMENT ON4EXTILESAND#LOTHINGWHICHHADBEENAGREEDASPARTOFTHE5RUGUAY2OUND4HISBROUGHT TOANENDMORETHANYEARSOFTRADERESTRICTINGTEXTILESQUOTAS )NADDITIONTHE74/3ECRETARIATHASCONTINUEDTOINTENSIFYITSEFFORTSTOPROVIDEMORE ANDVARIEDTECHNICALASSISTANCEACTIVITIESASWELLASTOREACHOUTTOTHEWIDERPUBLIC/VER THECOURSEOFTHEYEARMORETHANTECHNICALASSISTANCEACTIVITIESWEREUNDERTAKEN%FFORTS HAVEALSOBEENMADETOSTEPUPPOLICYCOHERENCEWITHTHE"RETTON7OODSINSTITUTIONS4WO 'ENERAL#OUNCILMEETINGSWEREDEVOTEDTOCOHERENCEIN &URTHERMORETHE74/ISBECOMINGAMOREUNIVERSALORGANIZATION&OLLOWINGDOMESTIC RATIFICATIONPROCEDURES#AMBODIAAND.EPALBECAME74/-EMBERSIN4HISBRINGS THETOTAL74/-EMBERSHIPUPTO!SOF$ECEMBER'OVERNMENTSWERE ACTIVELYPURSUINGACCESSIONTOTHE74/#OPINGWITHANINCREASINGLYLARGEANDDIVERSE MEMBERSHIPISAMONGTHEMAJORCHALLENGESFACINGTHE74/7ITHTHISINMINDTHE$IRECTOR 'ENERALHADASKEDAGROUPOFEMINENTPERSONSTOREFLECTUPONTHESYSTEMICCHALLENGESTHE 74/FACESANDHOWTHISINSTITUTIONCOULDBEREINFORCEDANDEQUIPPEDTOMEETTHEM)N *ANUARYTHISGROUPCHAIREDBY0ETER3UTHERLANDRELEASEDTHEIR2EPORTh4HE&UTUREOF THE74/!DDRESSING)NSTITUTIONAL#HALLENGESINTHE.EW-ILLENNIUMv4HE2EPORTANDITS RECOMMENDATIONSARECURRENTLYUNDERCONSIDERATIONBY74/-EMBERS 4RADEDEVELOPMENTS )NTHEWORLDECONOMYRECORDEDITSSTRONGESTGROWTHINMORETHANADECADE PROVIDINGTHEFOUNDATIONSFORANEXPANSIONOFWORLDTRADE7ORLD'$0GREWBYPERCENT ANDWORLDMERCHANDISETRADEROSEBYPERCENTINREALTERMS4HEYEARALSOWITNESSED ANARROWINGOFTHEGAPBETWEENTHEREGIONAL'$0GROWTHRATESOFTHEFASTESTGROWINGAND THELEASTDYNAMICREGIONSBETWEENAND!SINRECENTYEARSDEVELOPING!SIAAND #OMMONWEALTHOF)NDEPENDENT3TATES#)3 MEMBERCOUNTRIESREPORTEDTHESTRONGESTOUTPUT GROWTHWORLDWIDEATTOPERCENT3OUTH!MERICAS'$0GROWTHACCELERATEDTOPERCENT INTHEREGIONSSTRONGESTGROWTHSINCE.ORTH!MERICASGROWTHPICKEDUPIN REACHINGPERCENTWHICHSLIGHTLYEXCEEDSTHEGLOBALAVERAGE0ROVISIONALDATAFOR !FRICAANDTHE-IDDLE%ASTPOINTTOANECONOMICGROWTHINCLOSETOTHEGLOBALAVERAGE 4HISWOULDREPRESENTAMARKEDIMPROVEMENTAGAINSTTHERECORDOFTHES4HEREWERE SOMEWEAKERSPOTSHOWEVERONTHEGLOBALECONOMICMAP4HEEUROAREARECORDEDGROWTHOF PERCENTWHICHISONLYAMARGINALIMPROVEMENTINECONOMICACTIVITY)N*APANECONOMIC GROWTHGROUNDTOAHALTAFTERTHEFIRSTQUARTEROFBUTSTILLGAINEDANAVERAGEEXPANSION OFPERCENTONAYEARTOYEARBASIS
This output and trade growth was achieved against the background of sharply higher prices for fuels and many other primary commodities. The decline of FDI flows observed fro 2002 through 2003 was arrested and reversed in 2004. Major exchange rate adjustments in 2004 induded the further appreciation of most European currencies and many Asian urrencies vis-a-vis the US dollar. The euro and the yen, in particular, appreciated on an annual average basis by 9 per cent and 6.5 per cent respectively The lower value of the US dollar against the currencies of major traders combined with the marked rise in the prices for fuels, metals and many agricultural raw materials led to an increase in the dollar prices of internationally traded goods by 10 per cent. Under th combined impact of stronger real trade growth and the marked increase in prices, the dollar value of world merchandise trade rose by 21 per cent, reaching $8.88 trillion dollars. Commercial services exports are estimated to have increased by 16 per cent to $2. 1 trillion The acceleration in the value growth of commercial services trade can be partly attributed to g 0 a balance of payments basis lagged behind that of world merchandise trade and as in the君 previous year the sharp rise in commodity prices again played a major role in this outcome. 2 The doha Development Agenda The Doha Development Agenda saw some very positive advances in 2004 building on the elements that had emerged at and since the WTO's Fifth Ministerial Conference held in Cancun in 2003. The Trade Negotiations Committee and its subsidiary bodies were reactivated in early 2004. A principal objective for the first-half of the year was to take the necessary actions that would re-energize the negotiations. Substantive preparations towards framework-level agreements as part of a broader package to be agreed at the july meeting of the General Council began immediately after the appointment of a new slate of officers for regular WTO bodies, including the General Council and the negotiating bodies in February 2004. Intensive consultations were held by the Chairman of the General Council and by the rector-General as Chairman of the TNc. The challenge was to translate the strong political commitment to the success of the DDa negotiations into concrete action On 8 June 2004 the General Council Chairman announced at an informal meeting at level of Heads of Delegation that the July Decision could cover nine main elements includi consultations both in Geneva and also in capitals, the first draft of the General Council Decision was circulated to Members for their consideration on 16 July 2004 After further consultations and revisions the Decision was further revised and adopted by ling of 31 July Members welcomed the adoption of the July Decision as a breakthrough and said that it would reinvigorate the negotiations and assist Members to achieve the objectives set pha in November 2001. It was stressed that while the July Decision provided important signposts, it was imperative for Members to build on it by continuing to engage intensively and work in a spirit of compromise to advance the negotiating agenda The Framework on Agriculture which was agreed as part of the July package has been a forward in this technically complex and politically sensitive area. It fleshes out the Doha mandate by establishing specific objectives for the negotiations on agriculture and the means to achieve them. While the framework has left many political issues for resolution at the subsequent stage of the negotiations, it already reflects important movements towards convergence in all three pillars of market access, export competition and domestic support, induding the historic commitment to eliminate all forms of export subsidization at a date to be agreed. As part of this agreement, Members achieved a breakthrough in cotton which is so important to cotton farmers in developing countries, particularly least-developed countries in West Africa. For many WTO Members, particularly developing countries, a good market access deal in agriculture, coupled with the elimination of all forms of export subsidization and substantial reductions in trade-distorting support, holds the promise of ample new growth and employment opportunities through trade, including through broadening the avenues for mutually advantageous South-South trade Likewise the framework on non-agricultural market access(NAMA)was to be a stepping stone towards full modalities As discussions on this subject were pursued, it became clear that two approaches were being espoused. There were those Members who sought to keep the Nama text which originated from the second revision of the draft Cancun Ministerial negotiate that text and introduce amendments. The compromise reached ivished to Text( the so-called Derbez text)unchanged. While there were others wh was to indlude a new paragraph 1 to that original text to give an overall level of comfort
/VERVIEW 4HE$OHA$EVELOPMENT!GENDA 4HISOUTPUTANDTRADEGROWTHWASACHIEVEDAGAINSTTHEBACKGROUNDOFSHARPLYHIGHER PRICESFORFUELSANDMANYOTHERPRIMARYCOMMODITIES4HEDECLINEOF&$)FLOWSOBSERVEDFROM THROUGHWASARRESTEDANDREVERSEDIN-AJOREXCHANGERATEADJUSTMENTS ININCLUDEDTHEFURTHERAPPRECIATIONOFMOST%UROPEANCURRENCIESANDMANY!SIAN CURRENCIESVIS Ì VISTHE53DOLLAR4HEEUROANDTHEYENINPARTICULARAPPRECIATEDONAN ANNUALAVERAGEBASISBYPERCENTANDPERCENTRESPECTIVELY 4HELOWERVALUEOFTHE53DOLLARAGAINSTTHECURRENCIESOFMAJORTRADERSCOMBINEDWITH THEMARKEDRISEINTHEPRICESFORFUELSMETALSANDMANYAGRICULTURALRAWMATERIALSLEDTO ANINCREASEINTHEDOLLARPRICESOFINTERNATIONALLYTRADEDGOODSBYPERCENT5NDERTHE COMBINEDIMPACTOFSTRONGERREALTRADEGROWTHANDTHEMARKEDINCREASEINPRICESTHE DOLLARVALUEOFWORLDMERCHANDISETRADEROSEBYPERCENTREACHINGTRILLIONDOLLARS #OMMERCIALSERVICESEXPORTSAREESTIMATEDTOHAVEINCREASEDBYPERCENTTOTRILLION 4HEACCELERATIONINTHEVALUEGROWTHOFCOMMERCIALSERVICESTRADECANBEPARTLYATTRIBUTEDTO THERECOVERYINTRAVELEXPENDITURE!SINHOWEVERCOMMERCIALSERVICESTRADEMEASURED ONABALANCEOFPAYMENTSBASISLAGGEDBEHINDTHATOFWORLDMERCHANDISETRADEANDASINTHE PREVIOUSYEARTHESHARPRISEINCOMMODITYPRICESAGAINPLAYEDAMAJORROLEINTHISOUTCOME 4HE$OHA$EVELOPMENT!GENDA 4HE$OHA$EVELOPMENT!GENDASAWSOMEVERYPOSITIVEADVANCESINBUILDINGON THEELEMENTSTHATHADEMERGEDATANDSINCETHE74/S&IFTH-INISTERIAL#ONFERENCEHELD IN#ANCÞNIN4HE4RADE.EGOTIATIONS#OMMITTEEANDITSSUBSIDIARYBODIESWERE REACTIVATEDINEARLY!PRINCIPALOBJECTIVEFORTHEFIRST HALFOFTHEYEARWASTOTAKETHE NECESSARYACTIONSTHATWOULDRE ENERGIZETHENEGOTIATIONS3UBSTANTIVEPREPARATIONSTOWARDS FRAMEWORK LEVELAGREEMENTSASPARTOFABROADERPACKAGETOBEAGREEDATTHE*ULYMEETING OFTHE'ENERAL#OUNCILBEGANIMMEDIATELYAFTERTHEAPPOINTMENTOFANEWSLATEOFOFFICERS FORREGULAR74/BODIESINCLUDINGTHE'ENERAL#OUNCILANDTHENEGOTIATINGBODIESIN&EBRUARY )NTENSIVECONSULTATIONSWEREHELDBYTHE#HAIRMANOFTHE'ENERAL#OUNCILANDBYTHE $IRECTOR 'ENERALAS#HAIRMANOFTHE4.#4HECHALLENGEWASTOTRANSLATETHESTRONGPOLITICAL COMMITMENTTOTHESUCCESSOFTHE$$!NEGOTIATIONSINTOCONCRETEACTION /N*UNETHE'ENERAL#OUNCIL#HAIRMANANNOUNCEDATANINFORMALMEETINGATTHE LEVELOF(EADSOF$ELEGATIONTHATTHE*ULY$ECISIONCOULDCOVERNINEMAINELEMENTSINCLUDING AGRICULTURECOTTONNON AGRICULTURALMARKETACCESSDEVELOPMENTAND3INGAPOREISSUES !FTERVERYINTENSIVECONSULTATIONSBOTHIN'ENEVAANDALSOINCAPITALSTHEFIRSTDRAFTOFTHE 'ENERAL#OUNCIL$ECISIONWASCIRCULATEDTO-EMBERSFORTHEIRCONSIDERATIONON*ULY !FTERFURTHERCONSULTATIONSANDREVISIONSTHE$ECISIONWASFURTHERREVISEDANDADOPTEDBY -EMBERSINTHEEVENINGOF*ULY -EMBERSWELCOMEDTHEADOPTIONOFTHE*ULY$ECISIONASABREAKTHROUGHANDSAIDTHAT ITWOULDREINVIGORATETHENEGOTIATIONSANDASSIST-EMBERSTOACHIEVETHEOBJECTIVESSETIN $OHAIN.OVEMBER)TWASSTRESSEDTHATWHILETHE*ULY$ECISIONPROVIDEDIMPORTANT SIGNPOSTSITWASIMPERATIVEFOR-EMBERSTOBUILDONITBYCONTINUINGTOENGAGEINTENSIVELY ANDWORKINASPIRITOFCOMPROMISETOADVANCETHENEGOTIATINGAGENDA 4HE&RAMEWORKON!GRICULTUREWHICHWASAGREEDASPARTOFTHE*ULYPACKAGEHASBEENA MAJORSTEPFORWARDINTHISTECHNICALLYCOMPLEXANDPOLITICALLYSENSITIVEAREA)TFLESHESOUTTHE $OHAMANDATEBYESTABLISHINGSPECIFICOBJECTIVESFORTHENEGOTIATIONSONAGRICULTUREANDTHE MEANSTOACHIEVETHEM7HILETHE&RAMEWORKHASLEFTMANYPOLITICALISSUESFORRESOLUTIONAT THESUBSEQUENTSTAGEOFTHENEGOTIATIONSITALREADYREFLECTSIMPORTANTMOVEMENTSTOWARDS CONVERGENCEINALLTHREEPILLARSOFMARKETACCESSEXPORTCOMPETITIONANDDOMESTICSUPPORT INCLUDINGTHEHISTORICCOMMITMENTTOELIMINATEALLFORMSOFEXPORTSUBSIDIZATIONATADATETO BEAGREED!SPARTOFTHISAGREEMENT-EMBERSACHIEVEDABREAKTHROUGHINCOTTONWHICHIS SOIMPORTANTTOCOTTONFARMERSINDEVELOPINGCOUNTRIESPARTICULARLYLEAST DEVELOPEDCOUNTRIES IN7EST!FRICA&ORMANY74/-EMBERSPARTICULARLYDEVELOPINGCOUNTRIESAGOODMARKET ACCESSDEALINAGRICULTURECOUPLEDWITHTHEELIMINATIONOFALLFORMSOFEXPORTSUBSIDIZATION ANDSUBSTANTIALREDUCTIONSINTRADE DISTORTINGSUPPORTHOLDSTHEPROMISEOFAMPLENEW GROWTHANDEMPLOYMENTOPPORTUNITIESTHROUGHTRADEINCLUDINGTHROUGHBROADENINGTHE AVENUESFORMUTUALLYADVANTAGEOUS3OUTH 3OUTHTRADE ,IKEWISETHEFRAMEWORKONNON AGRICULTURALMARKETACCESS.!-! WASTOBEASTEPPING STONETOWARDSFULLMODALITIES!SDISCUSSIONSONTHISSUBJECTWEREPURSUEDITBECAMECLEAR THATTWOAPPROACHESWEREBEINGESPOUSED4HEREWERETHOSE-EMBERSWHOSOUGHTTOKEEP THE.!-!TEXTWHICHORIGINATEDFROMTHESECONDREVISIONOFTHEDRAFT#ANCÞN-INISTERIAL 4EXTTHESO CALLED$ERBEZTEXT UNCHANGED7HILETHEREWEREOTHERSWHOWISHEDTO NEGOTIATETHATTEXTANDINTRODUCEAMENDMENTS4HECOMPROMISEREACHEDWASTOINCLUDEA NEWPARAGRAPHTOTHATORIGINALTEXTTOGIVEANOVERALLLEVELOFCOMFORT