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WT/GC/M/765 November 2002

(02-6079)

General Council15 October 2002

MINUTES OF MEETING

Held in the Centre William Rappardon 15 October 2002

Chairman: Mr. Sergio Marchi (Canada)

Subjects discussed: Page

1. Accession of the Former Yugoslav Republic of Macedonia - Report of the Working Party..............................................................................................................2

2. International Trade Centre UNCTAD/WTO - Report of the Joint Advisory Group on its Thirty-fifth Session ...............................................................................6

3. Iran – Request for Accession .....................................................................................7

4. Report by the Chairman of the Trade Negotiations Committee.............................8

5. Work Programme on Small Economies – Report by the Chairman of the Dedicated Sessions of the Committee on Trade and Development.......................10

6. Work Programme on Electronic Commerce – Institutional Arrangements – Statement by the Chairman......................................................................................10

7. Committee on Budget, Finance and Administration..............................................11

(a) Report of the Committee on its meeting of 5 July ......................................................11

(b) Director-General's Conditions of Service – Statement by the Chairman of the Committee....................................................................................................................11

8. Marrakesh Ministerial Decision concerning the possible negative effects of the reform programme on least-developed and NFIDCs - Report of the Inter-Agency Panel on short-term difficulties in financing normal levels of commercial imports of basic foodstuffs .......................................................................................12

9. Committee on Agriculture – Report on the follow-up to the Committee's recommendations concerning implementation-related issues approved by the Doha Ministerial Conference ...................................................................................14

10. Waivers under Article IX of the WTO Agreement................................................15

(a) Introduction of Harmonized System 1996 changes into WTO schedules of tariff concessions – Requests for waivers.............................................................................15

(i) Argentina - Schedule LXIV .........................................................................................15

(ii) El Salvador - Schedule LXXXVII ................................................................................15

(iii) Israel - Schedule XLII .................................................................................................15

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(iv) Morocco - Schedule LXXXI ........................................................................................15

(v) Norway - Schedule XIV ...............................................................................................15

(vi) Thailand - Schedule LXXIX ........................................................................................15

(vii) Venezuela - Schedule LXXXVI ....................................................................................15

(b) Transposition of schedules into the Harmonized System - Sri Lanka - Schedule VI - Request for extension of waiver .................................................................................16

(c) Zambia - Renegotiation of Schedule LXXVIII - Request for extension of waiver ....16

(d) Review of waivers pursuant to Article IX:4 of the WTO Agreement.........................16

(i) Canada – CARIBCAN, granted on 14 October 1996 until 31 December 2006..........16

(ii) Madagascar – Customs Valuation Agreement, granted on 18 July 2001 until

17 November 2003 ...................................................................................................................16

(iii) Switzerland – Preferences for Albania and Bosnia-Herzegovina, granted on 18 July 2001 until 31 March 2004 ..........................................................................................16

(iv) United States – Former trust territory of the Pacific Islands, granted on 14 October 1996 until 31 December 2006 .....................................................................................16

11. Chairmanship of the Working Party on the Accession of Nepal...........................18

12. Better management of WTO meetings.....................................................................18

1. Accession of the Former Yugoslav Republic of Macedonia - Report of the Working Party (WT/ACC/807/27 and Add.1 and 2)

1. The Chairman welcomed, on behalf of all Members, the delegation of the Former Yugoslav Republic of Macedonia (FYROM), and recalled that in December 1994, the Preparatory Committee for the World Trade Organization had established a Working Party to examine the request by FYROM for accession to the WTO Agreement. The report of that Working Party was now before the General Council for consideration and adoption in WT/ACC/807/27 and Add.1 and 2.

2. Mr. Bryn (Norway), Chairman of the Working Party, said that the Working Party had been established in December 1994, but that its first meeting had been held only in July 2000. In accordance with the guidelines and procedures established under the WTO Agreement, the Working Party had then moved rapidly to hold several meetings during the period from July 2000 to September 2002 to carry out an examination of the foreign trade regime of FYROM. During that period, the accession process of FYROM had maintained and progressively increased its impressive momentum, making this one of the fastest accessions in the history of the WTO. He wished to pay tribute to the authorities of FYROM and to its Minister of Economy, Mr. Besnik Fetai, who had conducted the negotiations with speed and with a dedication which bore almost no comparison. That praise also applied to his team, composed of devoted and committed negotiators who had met all of the challenges of the accession process boldly, rapidly and constructively. FYROM had proceeded with broad-ranging and dynamic reforms aimed at achieving conformity with WTO rules and disciplines. These efforts had been particularly impressive, since the past two years had been a difficult period in the region. He also expressed appreciation to the WTO membership for its flexibility and good will, which were the traditional hallmarks of the GATT-WTO system, and congratulated all concerned on bringing this important accession process to a satisfactory conclusion.

3. The results of these negotiations constituted the complete accession package of FYROM to the WTO Agreement, and were contained in the following documents: the report of the Working Party

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(WT/ACC/807/27), the schedule of concessions and commitments on goods (WT/ACC/807/27/Add.1), and the schedule of specific commitments on services (WT/ACC/807/27/Add.2). The Working Party had adopted these documents at its meeting on 17 September 2002 on an ad referendum basis, thus completing its mandate. Members of the Working Party had noted with appreciation the efforts made by FYROM in putting into place the necessary legislation to implement the WTO agreements by the date of accession to the WTO Agreement. The appendix to the report reproduced the draft decision of the General Council and the draft Protocol of Accession of FYROM to the Marrakesh Agreement Establishing the WTO. In accordance with usual WTO practice, the Protocol of Accession incorporated the specific commitments undertaken by FYROM in relation to matters negotiated in the Working Party.

4. FYROM would be the third constituent of the former Yugoslavia to become a Member of the organization pursuant to Article XII of the WTO Agreement. Accession to the WTO Agreement was an important step in the integration of the countries of that region into the multilateral trading system, thus contributing to the attainment of sustained peace and prosperity in the Balkans. He paid tribute to the continuous efforts, good will and spirit of compromise shown by all in this accession process. The traditional spirit of pragmatism of the WTO had prevailed and had allowed the work to be concluded. The results achieved in the Working Party spoke for themselves.

5. The representative of the Former Yugoslav Republic of Macedonia, speaking as an observer, said that he was pleased and honoured to sign, on behalf of his country, the Protocol for the Accession of his country to the WTO Agreement. He hoped that through its WTO membership, FYROM's economy would adjust to the multilateral trading system and would give an impetus to the production of products for which FYROM had a comparative advantage. Hence, his country expected foreign direct investment to increase. The legislation which his country had enacted and harmonized in accordance with WTO rules and principles, and the liberalization of its customs tariff, provided attractive conditions and security to foreign investors. Accession to the WTO Agreement would provide conditions for FYROM companies to benefit from the challenges and opportunities of the multilateral trading system. The economic development of the country and the living standard of its population would rise. Accession to the WTO Agreement had not been an easy task and had required time, effort and work. As the National Coordinator of the WTO Accession Process, he wished to underline that the accession process had been a challenge. However, with the dedication and work of his team of the Coordinative Body for Accession, FYROM, through a patient and rational approach, had managed to conclude its accession process successfully. He expressed appreciation to Members and to the Chairman of the Working Party for their efforts and cooperation during the accession process. FYROM, as a future Member, would act in a constructive and responsible manner to justify Members' confidence.

6. The General Council then approved the text of the draft Protocol of Accession of the Former Yugoslav Republic of Macedonia as contained in the report of the Working Party and, in accordance with the Decision-Making Procedures under Articles IX and XII of the WTO Agreement agreed in November 1995 (WT/L/93), adopted the draft decision on the Accession of the Former Yugoslav Republic of Macedonia as contained in the report of the Working Party. The General Council next adopted the report of the Working Party as a whole in WT/ACC/807/27 and Add.1 and 2.

7. The Chairman then welcomed, on behalf of the General Council and all Members, the accession of FYROM.

8. The representative of Argentina said that Argentina had joined in the consensus which had just approved FYROM's accession, and congratulated FYROM on its entry into the WTO. Argentina welcomed the commitments made by FYROM particularly those to the effect that it would not grant new export subsidies and would remove any that it might currently be granting. However, Argentina saw a need to place on record its position with regard to the "ex" positions in the tariff lines for

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cheeses and certain alcoholic beverages included in the Schedule of goods of FYROM (Schedule CLIV, document WT/ACC/807/27/Add.1, Part I-A) – concerning the following tariff lines at the six-digit level: HS 04 06 40; 04 06 90; 22 04 10; 22 04 21; 22 04 29 and 22 08 20 – which were differentiated according to origin or the name of a region. In this connection, her delegation wished to state that Argentina considered that this novel form of tariff classification was not provided for in the current Harmonized System Nomenclature, which took into account exclusively the nature and objective characteristics specific to the set of goods classified, without establishing any differentiation based on origin. For Argentina, the goods included in the tariff lines in FYROM's Schedule were "like products" within the meaning of the GATT 1994 and other relevant WTO instruments, in particular the Agreement on Technical Barriers to Trade. Any tariff differentiation that FYROM wished to apply in future to Argentine products under this classification would be considered a violation of Article I:1 of the GATT 1994. Argentina's consent to FYROM's accession could not be construed as a precedent for accepting similar "ex" positions of tariff lines in other ongoing accession negotiations.

9. The representatives of Norway, Turkey, Paraguay (on behalf of GRULAC), China, Slovak Republic (also on behalf of Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovenia), Croatia, European Communities, Indonesia (on behalf of the ASEAN Members), United States, India, Slovenia, Albania, Kenya (on behalf of the African Group) and the Federal Republic of Yugoslavia (as an observer) welcomed the accession of FYROM and looked forward to working with FYROM in the WTO.

10. The representatives of Norway, Turkey, China, Slovak Republic (also on behalf of Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovenia), Croatia, India, Slovenia, Bulgaria and the Federal Republic of Yugoslavia (as an observer) underlined the importance of their respective relations with FYROM.

11. The representatives of the Slovak Republic (also on behalf of Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovenia), Croatia, Federal Republic of Yugoslavia (as an observer) said that FYROM's accession would contribute to the further strengthening of the multilateral trading system.

12. The representatives of the European Communities, India and Kenya (on behalf of the African Group) thanked the Chairman of the Working Party for his hard work and very professional guidance during this accession process.

13. The representative of Turkey said that his Government commended FYROM for its efforts to conclude the accession process in a short period of time and appreciated FYROM's efforts to liberalize its economy and its trade in order to fully integrate into the multilateral trading system. FYROM's accession to the WTO Agreement would contribute to the well-being of its people as well as to its economic development. It was a further positive step toward the establishment of a free-market economy in the Balkans region, and would contribute to stability and prosperity in that region. His delegation wished to draw attention to the fact that Turkey recognized the country under its constitutional name, i.e., the Republic of Macedonia.

14. The representative of Paraguay, speaking on behalf of GRULAC, said that these countries congratulated FYROM for the efforts made in its accession process. The results of the Working Party spoke for themselves. These countries welcomed FYROM as it embarked on a more effective and efficient integration into the world economy through the WTO multilateral trading system.

15. The representative of China said that, looking at the accession processes of recently acceded Members and the processes of the 30 acceding countries which were still ongoing, one element deserved Members' attention. It was now quite difficult for countries, including for very small

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economies or the least-developed countries, to complete their accession processes. One obvious reason was the lack of clear rules and guidance for accession negotiations. Therefore, in order to facilitate and accelerate the accession processes of the acceding countries, Members should establish guidelines for the accession negotiations.

16. The representative of the Slovak Republic, speaking also on behalf of Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovenia, said that these countries had always attached great importance to the accession of new countries to the WTO, and to making its membership more universal. FYROM's accession was an important contribution to its economic transformation. Becoming part of the multilateral trading system complemented the broader economic policy objectives of FYROM. Integrating into the multilateral trading system would contribute to FYROM's drive for increased economic growth through economic reform, liberalization and diversification. The adoption of WTO provisions and FYROM's commitments to the basic principles of transparency, predictability and rule of law would contribute to the development of a legal framework necessary for its further growth and development.

17. The representative of Croatia said that as a country that had recently joined the WTO, Croatia was aware of how challenging the accession process could be, particularly when it was undertaken in parallel with an economic transition process within the complex world economic situation. However, WTO accession and full adherence to its rules, objectives and principles would have important positive effects on FYROM's economy and would contribute to the reform process and its further integration into global and European trade flows. FYROM's accession would further enhance bilateral economic relations with Croatia, as well as contribute to further developing trade and strengthening stability in the region. He hoped that this accession would provide further impetus for the early accession of other neighbouring countries, which would enable them to further develop their trade within the WTO framework.

18. The representative of the European Communities said that the successful conclusion of the negotiations on FYROM's accession was recognition of the efforts made to transform its economy and to establish a liberal trade régime. The Community particularly welcomed FYROM's efforts to adopt the range of legislative and institutional reforms required to bring it into conformity with the WTO agreements, and its commitments to a liberal, open trading system through the adoption of commercially sound market-access commitments. The Community fully supported the integration of FYROM into the multilateral trading system, which would reinforce stability in this region.

19. The representative of the United States said that the agreed terms of FYROM's accession were substantial and signalled in concrete terms its determination to reform its economy and establish a strong foundation for future economic growth. FYROM's accession had been accomplished in a relatively short period of time. It was a great achievement and demonstrated FYROM's commitment to the WTO principles. Her Government welcomed FYROM's achievement in light of the strong support the United States had provided for this process, both through technical assistance and through detailed bilateral work with the delegation of FYROM on the terms of accession. The United States looked forward to working with FYROM in the Doha negotiations and in the day-to-day work of the WTO.

20. The representative of India said that his delegation shared the views expressed by China that procedures should be worked out for faster accession in the future.

21. The representative of Slovenia said that the fact that the FYROM was becoming a part of the multilateral rule-based trading system was of particular relevance for South-East Europe as a whole. It sent the right signal and offered an example to be followed by other countries in the region, in particular to Bosnia and Herzegovina, and to the Federal Republic of Yugoslavia. FYROM's accession to the WTO Agreement provided a new perspective for its accession to CEFTA and its

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stronger inclusion in European integration processes. Slovenia had supported FYROM throughout the accession negotiations. This support had been based on Slovenia's knowledge and experience of the progress made by FYROM in all aspects relevant to WTO membership, as well as in other areas of overall structural reforms. He said that FYROM had concluded a Free Trade Agreement with neighbouring countries which was being applied and administered without any major problem.

22. The representative of Albania said that the current approach achieved by FYROM was an important one, which aimed at seeking to mainstream trade policy areas of action into regional development plans. He believed that the efforts of FYROM would yield positive results for its domestic economic development. Albania was confident that the compatibility of FYROM's trade regime with WTO rules, and the Memorandum of Understanding on Trade Liberalization and Facilitation which FYROM had signed with other countries, would both enhance the mutual cooperation among these neighbouring countries.

23. The representative of Bulgaria said that although his delegation would examine Argentina's statement, it did not regard that statement as leading to any legal consequences. He added that Bulgaria recognized FYROM under its constitutional name, i.e., the Republic of Macedonia.

24. The representative of Kenya, speaking on behalf of the African Group, said that every new accession enhanced the profile of the WTO. She hoped that the expectations and commitment of FYROM, as it joined the WTO, would yield the intended results from integration of the country and its people into the multilateral trading system.

25. The representative of the Federal Republic of Yugoslavia, speaking as an observer, said that FYROM's accession gave an impetus to other acceding countries, like his own, which were currently preparing and undertaking important steps to that effect. FYROM's accession would contribute to further stabilizing the overall situation in the region, as well as to improving trade and economic cooperation in the region, to which the Federal Republic of Yugoslavia was endeavouring to contribute fully. His Government was confident that successful cooperation with FYROM and other countries of the region would continue to develop, and wished FYROM prosperity and success in its continued development in the interest of its peoples.

26. The General Council took note of the statements and of the expressions of welcome and support.

2. International Trade Centre UNCTAD/WTO - Report of the Joint Advisory Group on its Thirty-fifth Session (ITC/AG(XXXV)/191)

27. The Chairman recalled that the Joint Advisory Group of the International Trade Centre UNCTAD/WTO (JAG) had held its Thirty-Fifth Session from 15-19 April 2002. The report of the Joint Advisory Group had been distributed in ITC/AG(XXXV)/191. In keeping with customary practice, this report had been considered initially by the Committee on Trade and Development (CTD) at its meeting on 1 July 2002. The report was now before the General Council for formal adoption. At the meeting of the CTD on 1 July, the Chairman of that Committee had indicated that he would report to the General Council on the Committee's discussion of the report.

28. Mr. Rana, Deputy Director-General, speaking on behalf of the Chairman of the Committee on Trade and Development, said that the JAG had held its Thirty-fifth Session on 15-19 April 2002. The report of the JAG had been before the Forty-first session of the CTD on 1 July, and Mr. Girard (Switzerland), Chairman of the JAG, had introduced the report. In the course of the discussion, the issue of translation of the JAG report into Arabic and Chinese had been raised. The ITC Executive Director, Mr. Bélisle, had offered to provide more detailed information on how the requests for translation of the report into additional languages had been dealt with. That information had subsequently been provided by the ITC Secretariat and had been circulated to Members in

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WT/COMTD/40. The CTD had then agreed to forward the report to the General Council, on the understanding that its Chairman would inform the General Council that the translation issue had been raised.

29. The representative of Egypt said that during the course of the JAG meeting, as well as during the CTD meeting, Egypt had underlined the importance of translating documents of that important annual meeting for the dissemination of information on the activities of the ITC. Such information would probably be even more beneficial to small- and medium-sized enterprises than to other participants. For this reason, Egypt insisted on the translation of such documents. This matter had been discussed at the July meeting of the CTD. At the European Communities' request, background information on the proposal to issue the documentation in Arabic and Chinese had been prepared by the ITC and circulated to Members in WT/COMTD/40. Egypt hoped that this information corresponded to the Community's request, and that funds for translation could be obtained.

30. The representative of China expressed gratitude to Deputy Director-General Mr. Rana for his report on behalf of the Chairman of the CTD on the Thirty-fifth Session of the JAG, and congratulated the ITC on the excellent work it had been doing for years in the area of technical cooperation with developing countries for trade promotion. China encouraged the ITC to redouble its efforts in this regard, and invited the WTO to strengthen its support and guidance to this work. With respect to the issue of languages used in JAG official documentation, China believed in equality of working languages and strongly requested, as it had done on more than one occasion, that both Arabic and Chinese be treated on an equal footing with the other four languages. This was not only a matter of principle, but also for the sake of facilitating the participation of Arabic- and Chinese-speaking delegates in the work of the JAG. China looked forward to an early resolution of this problem.

31. The Chairman said he had been informed that the issue of translation of ITC documentation into two additional languages would be taken up for consideration by the Committee on Budget, Finance and Administration at its forthcoming meeting on 18 October in the context of considering the 2003 draft budget. He therefore proposed that the General Council await the Budget Committee's consideration of this issue before reverting to it in the General Council. He wished the Executive Director of the ITC, Mr. Bélisle, and his organization continued success on what had been a very successful life thus far for the ITC.

32. The General Council took note of the report and of the statements, and agreed to the Chairman's proposal.

3. Iran – Request for Accession (WT/ACC/IRN/1)

33. The Chairman drew attention to the communication from Iran in WT/ACC/IRN/1, requesting accession to the WTO Agreement. He recalled that the General Council had last considered this matter at its meeting in July, and had agreed to revert to it at the present meeting.

34. The representative of the United States said that her delegation did not have anything to add to its statement at the July meeting. The issue of Iran's accession to the WTO Agreement was under review by her Government, and her delegation was not in a position to speak to this matter at the present meeting.

35. The representative of Malaysia, speaking on behalf of the Informal Group of Developing Countries, said that Iran's request for accession had been on the agenda of the General Council for some time, and this group of countries believed that it should be given the attention it merited. They hoped that the matter would be resolved in an expeditious manner and urged the United States to provide a positive response to this issue at the next meeting of the General Council.

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36. The General Council took note of the statements and agreed to revert to this matter at its next meeting.

4. Report by the Chairman of the Trade Negotiations Committee

37. The Director-General, Chairman of the Trade Negotiations Committee1, reporting on the TNC's fourth meeting on 3-4 October, said that it had marked the start of a new phase of the negotiations – the phase of substantive engagement. Indeed, this meeting had been the first time that substance itself had been discussed in such detail at the level of the TNC. The prime function of the TNC was to build a sense of the negotiations as a whole, which was vital if Members were to arrive at a balanced package in line with the single undertaking that Ministers had agreed on. In this respect, he believed that the fourth meeting had been a step in the right direction. He wished to thank the Chairpersons of the bodies established by the TNC for their written reports, but especially for their oral interventions at the meeting. Members had made a good start at making the TNC a more interactive forum – this was something he intended to encourage at future meetings. The TNC would be more active as the negotiations advanced, and as its Chairman, he would be an activist. He believed this was what delegations expected of him. He would work closely with the Chairpersons to support and help them where he thought it might be useful, in the interests of advancing progress in the negotiations. He would also be active in consulting with delegations, first of all, as Members prepared for the important issues that would be on the table in December. He would, of course, also work in close cooperation with the Chairman of the General Council, as set out in the TNC's Principles and Practices agreed earlier in 2002.

38. He also thanked delegations for their many constructive statements and suggestions covering a wide range of views, different priorities and concerns. He had listened carefully to everything that had been said at the meeting, and as he had noted in his concluding remarks, the issues of agriculture, special and differential treatment, implementation, and TRIPS and public health stood out as the areas at the forefront of everyone's mind in the period until December. Clearly there were some strongly-held views in these areas and Members would have to work hard to reach consensus. The Chairpersons' reports and the comments by delegations on them had confirmed his impression of their current situation, i.e. Members had got off to a reasonably good start, but much more remained to be done in a very short period of time, and time was running quickly. From the Chairpersons' reports, it was clear that in some areas there was an urgent need to move forward and a shortage of written inputs. He repeated his exhortation to all Members to make the greatest possible effort to submit their remaining papers rapidly – this was essential if they were to meet the deadlines that were coming up fast.

39. Prior to the meeting he had circulated to all participants, on his own responsibility and without prejudice to any participant's position on the issues listed, a revised timeline to Cancún. He had done this because he wanted to make sure that everyone was aware of the key dates and deadlines established so far. He hoped that participants would keep all of them in mind when they considered their tactical and strategic moves as they entered the middle period of the negotiations. It was important that Members met all of the deadlines set out in the timeline. But a deadline was not an end in itself. Deadlines were important because they allowed Members to measure how they were advancing. And all Members knew they had to advance the substance of the negotiations progressively across all areas of the negotiating agenda as a whole. Members had some important deadlines coming up over the next few months, and leaving too much for Cancún, he believed they might make the task of achieving a successful outcome to the negotiations almost impossible.

40. However, he had found it encouraging at the meeting that there was already a widespread sense of the globality of the negotiations, of the need to make progress across a broad front and to build a

1 The statement was subsequently circulated as Job(02)/145.

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balanced overall result. But he encouraged delegations to move rapidly away from defensive positions – there was no longer time to wait for someone else to make the opening move. This was not a zero-sum game. It was certainly about national interests, but it was also about a shared interest in a system which delivered for all its members. Members had a shared responsibility to move these negotiations on to a timely and positive conclusion. Trade was often mentioned as a means to find a way out of the evolving economic uncertainties that the world faced and was likely to increasingly face in the near future. Members could counter these uncertainties only by strengthening predictability, and by achieving what they were supposed to achieve within the time they had been mandated to do so. He wished to mention briefly one administrative matter, namely the issue of scheduling of meetings. In his discussions with the Chairpersons and also with other Members, it had emerged that they were facing some practical problems in this area. This question involved many aspects, such as how to apply the relevant guidelines in a way which helped, not hindered, their work, as well as other purely physical limitations, such as the number of meeting rooms and the availability of interpreters, and the limitations faced by small delegations. In order to address this problem, and in line with the TNC's Principles and Practices, he had decided to ask Deputy Director-General Mr. Abbott to work together with the Chairpersons and with the smaller delegations, in the first instance, to ensure that Members would be in a position to meet their deadlines while also taking into account the constraints those delegations were facing. The coming months would be a busy period for them all, and he was sure that with careful management and appropriate mechanisms, Members could respect their mandate to conduct the negotiations in a transparent manner among participants, in order to facilitate the effective participation of all.

41. The representative of Kenya, speaking on behalf of the African Group, said that as the Director-General had noted in his report, significant progress had been made in some negotiating bodies, and these countries agreed that this was a step in the right direction. Nevertheless, there were other areas where progress had been very slow, and in some cases deadlines had been extended to accomplish the task. A number of these areas were crucial to the African Group, and the overall progress made in negotiations would depend on the outcome in these specific areas. The area of special and differential treatment was one of them. Implementation issues were another. An expeditious resolution regarding Paragraph 6 of the Declaration on TRIPS and Public Health was the third issue, although it did not directly fall under the TNC. The outcome in these areas would determine the pace and level of the negotiations in other areas. The African Group had been told that some of their proposals were either too ambitious and needed to be scaled down, or that they were unrealistic, and these countries were eager to see alternative solutions and proposals to those they had put on the table. Members needed to move away from generalization and get into specifics. The African Group needed to know, for example, the exact levels that some Members considered reasonable and realistic. This was the only way Members could, and had to, strive to move forward. The African Group was ready and willing to engage in meaningful discussions to ensure that Members accomplished their work within the deadlines set and without having to seek any further extension.

42. Another area that needed immediate attention was the number of meetings taking place in the WTO, and the African Group was pleased to hear what the Director-General had said about this matter. Along with the present General Council meeting, there were two informal meetings that were taking place at the same time, one on TRIPS and public health and the other on technical barriers to trade. These issues were extremely important to the African Group, but these countries were not able to cover them effectively because of their limited human resources. The African Group wished to see a situation where the needs and concerns of small and medium-sized delegations were taken into consideration in accordance with the letter and principle of the Doha Ministerial Declaration.

43. The General Council took note of the statement and of the report by the Chairman of the Trade Negotiations Committee.

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5. Work Programme on Small Economies – Report by the Chairman of the Dedicated Sessions of the Committee on Trade and Development

44. The Chairman recalled that at its meeting in February/March, the General Council had taken note of a framework and procedures for the conduct of the Work Programme on Small Economies, under which the Work Programme would be a standing item on the General Council's agenda. The framework and procedures also provided that the Committee on Trade and Development would report regularly to the General Council on the progress of work in its dedicated sessions on this subject.

45. Mr. Rana, Deputy Director-General, speaking on behalf of the Chairman of the Dedicated Sessions of the Committee on Trade and Development, reported on the Committee's activities on this matter. This report was being made pursuant to the decision of the General Council at its meeting on 1 March 2002. The General Council had instructed the Committee on Trade and Development (CTD) to develop a programme of work on small economies through dedicated sessions. It had also been stated that the CTD should report regularly to the General Council on the progress of the work in the dedicated sessions. As had been stated in the first two reports, the CTD had formally begun this work by holding its first dedicated session on 25 April. A second Dedicated Session had been held on 1 July. A number of informal consultations had also been held. The proponents of this Work Programme had requested that the next dedicated session be scheduled to coincide with the "Geneva Week" for non-resident Members and observers. Thus, when the "Geneva Week" had been postponed from the beginning of October to the beginning of November, the third Dedicated Session had also been postponed. Members expected the November meeting to be a productive one. The Secretariat had prepared a paper on small economies. Further research and analysis, which had been requested by the small economies, was being undertaken by the Secretariat to assist Members in their deliberations. This work was expected to be circulated well in advance of the next Dedicated Session. Members would continue their work on fulfilling the mandate in paragraph 35 of the Doha Declaration and the instructions to the CTD given by the General Council on 1 March, at the third Dedicated Session, which was scheduled for 4 November.

46. The General Council took note of the report by Deputy Director-General Mr. Rana on behalf of the Chairman of the Dedicated Sessions of the CTD.

6. Work Programme on Electronic Commerce – Institutional Arrangements – Statement by the Chairman

47. The Chairman recalled that Ministers at Doha had agreed to continue the Work Programme on Electronic Commerce, and had instructed the General Council to consider the most appropriate institutional arrangements for handling the Work Programme and to report on further progress to the Fifth Session of the Ministerial Conference. With regard to future work on e-commerce, the General Council had agreed in December 2001 as follows: First, a further dedicated discussion on cross-cutting issues would be held under the auspices of the General Council early in 2002. Second, the Chairman of the General Council would conduct informal consultations with delegations on the most appropriate institutional arrangements for handling the Work Programme and would report to the General Council after the second dedicated discussion on cross-cutting issues. And third, the General Council would continue to oversee progress made in the four subsidiary bodies involved in e-commerce, i.e., the sectoral Councils and the Committee on Trade and Development, and would keep future work under periodic review, as appropriate.

48. The second dedicated discussion on cross-cutting issues under the auspices of the General Council had been held on 6 May 2002 Subsequently, at the General Council meeting in July, he had invited Members to reflect on the most appropriate institutional arrangements for handling the Work Programme as a whole, with a view to taking a decision on this matter at the present meeting.

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49. Since then, and at his request, former Deputy Director-General Mr. Stoler had held an informal open-ended consultation in September, and had reported to him that Members had been in agreement with maintaining the institutional arrangements that were currently in place, namely, that the Councils for Trade in Services, Trade in Goods and TRIPS, and the Committee on Trade and Development would examine and report on aspects of electronic commerce relevant to their respective areas of competence, and that the General Council would play a central role in the entire process, would keep the Work Programme under continuous review and would consider any trade-related issue of a cross-cutting nature.

50. On the basis of these consultations, he proposed that Members agree to maintain, for the duration of the work until the Fifth Ministerial Conference, the current institutional arrangements for handling the Work Programme on Electronic Commerce as outlined by him.

51. The General Council so agreed.

52. The Chairman then informed the General Council that at the consultations held by Deputy Director-General Mr. Stoler, delegations had also been in agreement with the notional schedule of future dedicated discussions on cross-cutting issues under the auspices of the General Council as follows: 25 October, late December, late February 2003; and the May-June 2003 period.

53. The General Council took note of this information.

7. Committee on Budget, Finance and Administration

(a) Report of the Committee on its meeting of 5 July (WT/BFA/60)

54. Mr. McMillan (United Kingdom), Chairman of the Committee on Budget, Finance and Administration, introducing the report in WT/BFA/60, said that at its meeting on 5 July, the Committee had looked at various administrative up-dates and progress reports, including the status of pledges made and funds received for the Doha Development Agenda Global Trust Fund. It had continued its deliberations on results-based management and possible funding for an agreed staff termination scheme under the existing staff rules. Discussions on both these issues would continue over the next few months and probably into 2003, but certainly in the light of the 2003 Budget Proposal which would be issued in the coming week. The Committee had also heard a report from the delegation of Switzerland on the construction of a new WTO Annex. The process of seeking architectural designs had already started in September 2002 and the building was expected to be completed by December 2007.

55. The General Council took note of the statement and adopted the report in WT/BFA/60.

(b) Director-General's Conditions of Service – Statement by the Chairman of the Committee

56. Mr. McMillan (United Kingdom), Chairman of the Committee on Budget, Finance and Administration, drew attention to his 3 October letter to all delegations drawing their attention to a report he had made to the Budget Committee on 2 October. As he had informed the Committee, he had been holding consultations over the past six months on the subject of the Director-General's salary package. Unlike other WTO staff, the Director-General's salary was not subject to annual review to take account of inflation. It had not been reviewed since the package for the former Director-General Mr. Sutherland was agreed in 1993. He therefore proposed that Members might consider an adjustment to take account of inflation in Geneva since 1993, which would work out at about 10 per cent. He had received no objections to proceeding in this way, but some delegations required that any such adjustment should be made under certain conditions. These were the following: that the base salary within that package, which worked out to Sw F 287,000 per annum,

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and the related pension rights should remain unchanged; that the package would apply without further change for the full term of the present Director-General; and that it would not be reviewed until such time as the Members so decided. He therefore wished to suggest that Members consider an increase of 10 per cent based on the total package of benefits, but without affecting the base salary level. This would thus involve an increase of Sw F 45,650 per annum, applicable from 1 September 2002 until the end of the Director-General's term of office in August 2005. Since sending this letter, he had received a number of confirmations from delegations that they were content to proceed in this way, although clearly some delegations might need time to consider the proposal further.

57. The Chairman proposed that the General Council agree ad referendum to the terms of the Director-General's conditions of service as outlined by the Chairman of the Budget Committee. If no Member indicated any reservations to him by close-of-business on 28 October, the Director-General's conditions of service would be considered agreed and a notice to this effect sent to Members.

58. The General Council took note of the statement and so agreed.2

8. Marrakesh Ministerial Decision Concerning the Possible Negative Effects of the Reform Programme on Least-Developed and NFIDCs - Report of the Inter-Agency Panel on short-term difficulties in financing normal levels of commercial imports of basic foodstuffs (WT/GC/62-G/AG/13 and Corr.1)

59. The Chairman recalled that at its meeting on 8 and 31 July, the General Council had undertaken a first consideration of the report of the Inter-Agency Panel on short-term difficulties in financing normal levels of commercial imports of basic foodstuffs. Differing views had been expressed as to whether the Panel had fully completed its mandate. In particular, many delegations had noted that the Panel had not completed a study of the feasibility of an ex-ante financing mechanism for food importers. Differences of view were also expressed on the appropriate way to deal with the Panel's recommendation in this regard. At the same time, an important group of countries, the LDCs, had noted that they needed more time to study the Panel report in depth, and in particular its recommendations. Accordingly, the General Council had agreed to revert to this matter at the present meeting, and to invite the Chairman of the Committee on Agriculture to consult with interested Members on the way forward with regard to following up on the Panels' recommendations – especially with respect to paragraph 168(b) regarding the ex-ante financing mechanism – and to report on the results of these consultations to the General Council at its present meeting.

60. Dr. Farahat (Egypt), Chairman of the Committee on Agriculture, said that in response to the request by the General Council in July, he had held informal open-ended consultations with interested Members regarding the issue of how to proceed with the recommendations of the Inter-Agency Panel report. The main outstanding issue had been the question of what steps, if any, should be taken to give effect to the recommendation by the Panel that the feasibility of an ex-ante financing mechanism aimed at food importers be explored. As a result of these consultations and the formal consideration of this issue at the regular meeting of the Committee on 26 September, he could report the following: First, the Committee recommended that the General Council approve the four recommendations contained in Paragraph 168 of the Inter-Agency Panel report. Second, the Committee recommended, with regard to the recommendations in Paragraph 168(a), (c) and (d), that the General Council authorize its Chairman to write to the International Monetary Fund (IMF), the World Bank and the Integrated Framework Agencies, requesting them to review the Panel report as it related to issues within their competence. Third, the Committee recommended, with regard to the recommendation in Paragraph 168(b) of the Panel's report, that the question of the feasibility of an ex-ante financing mechanism aimed at food importers be pursued by the Committee on Agriculture, on the

2 No reservations having been received by the Chairman, the Director-General's conditions of service were thereby considered agreed. A notice to this effect was circulated to Members in WT/GC/67.

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understanding that a proposal regarding the establishment of an ex-ante financing mechanism would be submitted by the WTO Net Food-Importing Developing Countries (NFIDCs), and that a follow-up report concerning the discussion of the proposal would be submitted to the General Council following the regular meeting of the Committee in November.

61. The representative of Kenya, speaking on behalf of the African Group, said that the Uruguay Round had recognized that the reform process in agriculture would have a negative impact on NFIDCs. The decision that had been expected to address this problem remained merely a hope at the present time. The request by the NFIDCs for the establishment of a revolving fund had been motivated by the non-implementation of the Marrakesh Decision concerning the possible negative effects of the reform programme on this group of countries that included the LDCs. While the Inter-Agency Panel that had been established to look into this issue had found that an ex-post financing facility would not add value in terms of reducing short-term financing difficulties, it had not ruled out the establishment of such a fund. The Panel had gone further and recommended the possibility of an ex-ante financing mechanism. Since the tabling of the report, there had been consultations in which Kenya had been involved. As the Chairman of the Committee on Agriculture had reported, the NFIDCs were working on a proposal for an ex-ante financing mechanism aimed at food importers. The African Group hoped that the next meeting of the General Council would be able to reach a decision on this issue. If this issue were not resolved, it was the intention of the African Group to pursue some cushioning mechanism in the Special Sessions of the Committee on Agriculture. However, they hoped that this would not be necessary.

62. The representative of Senegal said that the work of the Inter-Agency Panel and the consultations held since the submission of its report to the General Council showed clearly that the issue of short-term financing of normal levels of commercial imports of basic foodstuffs needed to be dealt with in further detail under the Doha Ministerial mandate. The Panel had carried out its work in a highly professional manner and Senegal had welcomed its report, but it had to be acknowledged that in relation to the central issue of the feasibility of the fund, the Panel's conclusions called for further work with a view to establishing the practical arrangements for the operation of the fund. The possibility and desirability of setting up such a fund had not been questioned in the report. This was a very sensitive issue which related both to the food security of least-developed countries and NFIDCs as well as to the stability of their balance-of-payments. There was, therefore, no reason at the present stage to raise the question of whether implementation of the Agreement on Agriculture had or had not already led to a rise in commodity prices for these countries. Instead, the right approach was to establish a preventive mechanism so as to ensure that any future difficulty in this area that might be linked to the reform process in agricultural trade would be alleviated. The limitations noted in the Panel's report with regard to the IMF compensatory financing facility and other existing mechanisms made the principle of a new fund all the more relevant. Without prejudging how this fund should operate, it should be characterized by flexibility in responding to emergency situations and, while its terms should be less burdensome than those of the market, it should be efficient enough to ensure its viability in terms of resources. In Senegal's opinion, these were the conditions necessary for it to operate on behalf of the intended recipients and to ensure that these countries became more involved in the reform process. On the basis of these considerations, Senegal was in favour of continuing the Panel's mandate in the light of the new proposals that would certainly be submitted by LDCs and NFIDCs at a later stage. His delegation also wished to note and to support the suggestion by the Chairman of the Agriculture Committee that the information in the Panel's report be given to the World Bank and the IMF and other institutions that were part of the Integrated Framework.

63. The Chairman, in the light of the report made by the Chairman of the Committee on Agriculture, proposed that the General Council take note of the statements and of the report of the Inter-Agency Panel in document WT/GC/62-G/AG/13 and Corr.1, and approve the four recommendations contained in Paragraph 168 of the report. He then proposed, with regard to the recommendations in Paragraphs 168(a), (c) and (d), that the General Council authorize him, as Chairman, to write to the

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IMF, World Bank and the Integrated Framework Agencies requesting them to review the Panel report as it related to the issues within their competence. Finally, with regard to the recommendation in Paragraph 168(b), he proposed that the General Council approve to the recommendation of the Committee on Agriculture that the question of feasibility of an ex-ante financing mechanism aimed at food importers be pursued by the Committee, on the understanding that a proposal regarding the establishment of an ex-ante financing mechanism would be submitted by the WTO net food-importing developing countries, and that a follow-up report concerning the discussion of the proposal be submitted to the General Council following the regular meeting of the Committee in November.

64. The General Council so agreed.

9. Committee on Agriculture – Report on the follow-up to the Committee's recommendations concerning implementation-related issues approved by the Doha Ministerial Conference (G/AG/14)

65. The Chairman recalled that in paragraph 2 of the Doha Ministerial Decision on Implementation-Related Issues and Concerns, Ministers approved a recommendation that the Committee on Agriculture, following its regular meeting in September 2002, should report to the General Council on: (i) its examination of possible means to improve the effectiveness of the implementation of the Marrakesh Decision regarding net food-importing developing countries; and (ii) the implementation of Article 10.2 of the Agreement on Agriculture. Ministers had also endorsed a decision by the Agriculture Committee to keep under review the submission, by Members administering tariff quotas, of addenda to their notifications to the Committee in accordance with the decision of the General Council regarding the administration of tariff rate quota regimes in a transparent, equitable and non-discriminatory manner. The Committee had reported to the General Council on these matters in G/AG/14.

66. Dr. Farahat (Egypt), Chairman of the Committee on Agriculture, in introducing the report, said that he wished to highlight a few points of the report adopted at the regular meeting of the Committee on 26 September. The first issue covered by the report was the implementation of Article 10.2 of the Agreement on Agriculture, which concerned the development of internationally agreed disciplines on export credits and related facilities. A two-track procedure had been adopted to make progress on this issue. In the regular meetings of the Committee, the focus of this work had been on the implementation of Article 10.2, whereas the negotiations in the Special Sessions of the Committee had focused on the proposals on export credit practices. The issue of the implementation of Article 10.2 had been a standing item on the regular Committee's agenda. In an effort to enhance its expertise in the area of export credit practices, the Committee had held a seminar with expert representatives from the OECD Secretariat to help delegations familiarize themselves with concepts in the area of export credits. To improve transparency, the Committee had invited Members to complete and submit to the Committee a questionnaire concerning export credit programmes and related facilities. With respect to the implementation issues in the context of the Marrakesh NFIDC Decision, the Committee's focus had been on questions related to the NFIDC Inter-Agency Panel, and here he would refer to his statement under agenda Item 8 of the present meeting. Finally, the Committee would continue to invite and review the addenda to Members' notifications on their tariff quota administration, in an effort to improve the transparency and equity of tariff quota regimes, particularly for the benefit of the developing countries.

67. The representative of Brazil said that his delegation reiterated its call for the complete elimination of all forms of export subsidies in agriculture in the shortest period of time. During the Uruguay Round, Members had undertaken, under the Agreement on Agriculture, to "work toward the development of internationally agreed disciplines to govern the provision of export credits, export credit guarantees or insurance programmes and, after agreement on such disciplines, to provide export credits, export credit guarantees or insurance programmes only in conformity therewith." This set of

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disciplines had not yet been developed in the WTO, which was the appropriate forum for the negotiation of "internationally agreed disciplines on export credits." Thus, Article 10.2 of the Agreement on Agriculture remained unimplemented. This was, of course, an implementation issue and as such should be treated in accordance with the Doha work programme in the Special Sessions of the Committee on Agriculture. At the same time, Brazil believed that the Committee on Agriculture had a role to play in the discussions of export credits and welcomed the recent initiatives taken by the Committee on the existing domestic support programmes on export credits, export credit guarantees or insurance programmes Members might have. Brazil trusted that this exercise would be of benefit to all Members. His delegation appreciated the recent submissions to the Committee by the United States and other Members on their domestic programmes and looked forward to further discussion of this issue in accordance with the report of the Chairman of the Committee on Agriculture.

68. The representative of Argentina said that his delegation's position on this issue was very similar to that of Brazil, and in the interests of saving Members' time, he would simply support the statement just made by Brazil.

69. The General Council took note of the statements and of the report by the Committee on Agriculture in G/AG/14.

10. Waivers under Article IX of the WTO Agreement

(a) Introduction of Harmonized System 1996 changes into WTO schedules of tariff concessions – Requests for waivers

(i) Argentina - Schedule LXIV (G/L/559, G/C/W/409 and Corr.1)

(ii) El Salvador - Schedule LXXXVII (G/L/563, G/C/W/413 and Corr.1)

(iii) Israel - Schedule XLII (G/L/560 and Corr.1, G/C/W/410 and Corr.1)

(iv) Morocco - Schedule LXXXI (G/L/568, G/C/W/417)

(v) Norway - Schedule XIV (G/L/562, G/C/W/412 and Corr.1)

(vi) Thailand - Schedule LXXIX (G/L/564, G/C/W/414 and Corr.1)

(vii) Venezuela - Schedule LXXXVI (G/L/561, G/C/W/411 and Corr.1)

70. The Chairman drew attention to the requests from Argentina, El Salvador, Israel, Morocco, Norway, Thailand and Venezuela for a waiver for the introduction of Harmonized System 1996 changes into WTO schedules of tariff concessions, and to the related draft Decisions.

71. Mr. Supperamaniam (Malaysia), Chairman of the Council for Trade in Goods, reporting on the Council's consideration of these requests, said that at its meeting on 2 October the Council had agreed to the requests by Argentina (G/L/559), El Salvador (G/L/563), Israel (G/L/560 and Corr.1), Morocco (G/L/568), Norway (G/L/562), Thailand (G/L/564), and Venezuela (G/L/561) and had recommended that the draft decisions in the relevant documents be forwarded to the General Council for adoption.

72. The General Council took note of the report and, in accordance with the Decision-Making Procedures under Articles IX and XII of the WTO Agreement agreed in November 1995 (WT/L/93),

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adopted the draft Decisions in G/C/W/409 and Corr.1, G/C/W/413 and Corr.1, G/C/W/410 and Corr.1, G/C/W/417, G/C/W/412 and Corr.1, G/C/W/414 and Corr.1 and G/C/W/411 and Corr1.3

(b) Transposition of schedules into the Harmonized System - Sri Lanka - Schedule VI - Request for extension of waiver (G/L/565, G/C/W/415/Rev.1)

73. The Chairman drew attention to the request from Sri Lanka for an extension of the waiver previously granted in connection with its establishment of a new Schedule VI (G/L/565), and to the related draft decision in G/C/W/415/Rev.1.

74. Mr. Supperamaniam (Malaysia), Chairman of the Council for Trade in Goods, reporting on the Council's consideration of this request, said that at its meeting on 2 October the Council had agreed to the request by Sri Lanka and had recommended that the draft decision in G/C/W/415/Rev.1 be forwarded to the General Council for adoption.

75. The General Council took note of the report and, in accordance with the Decision-Making Procedures under Articles IX and XII of the WTO Agreement agreed in November 1995 (WT/L/93), adopted the draft decision in G/C/W/415/Rev.1. 4

(c) Zambia - Renegotiation of Schedule LXXVIII - Request for extension of waiver (G/L/567, G/C/W/416)

76. The Chairman drew attention to the request from Zambia for an extension of the waiver previously granted in connection with the renegotiation of its Schedule LXXXVIII (G/L/567), and to the related draft decision in G/C/W/416.

77. Mr. Supperamaniam (Malaysia), Chairman of the Council for Trade in Goods, reporting on the Council's consideration of this request, said that at its meeting on 2 October the Council had agreed to the request by Zambia and had recommended that the draft decision in G/C/W/416 be forwarded to the General Council for adoption.

78. The General Council took note of the report and, in accordance with the Decision-Making Procedures under Articles IX and XII of the WTO Agreement agreed in November 1995 (WT/L/93), adopted the draft decision in G/C/W/416. 5

(d) Review of waivers pursuant to Article IX:4 of the WTO Agreement

(i) Canada – CARIBCAN, granted on 14 October 1996 until 31 December 2006 (WT/L/185, WT/L/483)

(ii) Madagascar – Customs Valuation Agreement, granted on 18 July 2001 until 17 November 2003 (WT/L/408)

(iii) Switzerland – Preferences for Albania and Bosnia-Herzegovina, granted on 18 July 2001 until 31 March 2004 (WT/L/406, WT/L/482)

(iv) United States – Former trust territory of the Pacific Islands, Granted on 14 October 1996 until 31 December 2006 (WT/L/183, WT/L/484)

3 These Decisions were subsequently circulated as WT/L/485 – Argentina; WT/L/486 – El Salvador; WT/L/487 – Israel; WT/L/488 – Morocco; WT/L/489 – Norway; WT/L/490 – Thailand; and WT/L/491 – Venezuela.

4 The Decision was subsequently circulated as WT/L/492.5 The Decision was subsequently circulated as WT/L/493.

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79. The Chairman recalled that in accordance with Paragraph 4 of Article IX of the WTO Agreement, "any waiver granted for a period of more than one year shall be reviewed by the Ministerial Conference not later than one year after it is granted, and thereafter annually until the waiver terminates." The following waivers were before the General Council for review: (i) Canada – CARIBCAN (WT/L/185); (ii) Madagascar – Customs Valuation Agreement (WT/L/408); (iii) Switzerland – Preferences for Albania and Bosnia-Herzegovina (WT/L/406); and (iv) United States – Former Trust Territory of the Pacific Islands (WT/L/183). The Decisions on the waivers for Canada, Switzerland and the United States provided that an annual report should be submitted by these Members on the operation or implementation of the waivers, with a view to facilitating the annual review by the General Council under Paragraph 4 of Article IX of the WTO Agreement. The reports from these delegations had been circulated in WT/L/483, 482 and 484, respectively.

80. The representative of Paraguay said that his delegation wished to state the following for the record under this sub-item, and specifically regarding the extension of the waiver Decisions regarding Canada's obligations under Article I:1 of the General Agreement (WT/L/185), Switzerland's preferences for Albania and Bosnia Herzegovina (WT/L/406 and the United States measures for the former trust territory of the Pacific Islands (WT/L/183). Developed countries had the [faculty – his word] [ability/capacity] of granting facilities and privileges to developing countries. This was an act which depended entirely on their own free will. In other words, it was a matter of choice for developed countries. However, for this special and differential treatment to be fair, once it was adopted it had to be in line with the binding rules and provisions governing the granting of such special treatment. Paraguay wished to point out that the Enabling Clause established these rules in a clear and binding manner. Nevertheless, Paraguay understood that there had to be flexibility. It accepted the principle of flexibility, but could not accept that the principle of flexibility should be applied to some in a manner that injured others. Should this occur, the developing-country Member affected could choose among a number of options. These were the following: (a) opposing the extension, so that there was no flexibility; (b) receiving acceptable compensation for minor injury, so that flexibility could take place; or (c) the developed-country Member could extend the same treatment to the injured country.

81. This position was not based on any wish to oppose for the sake of opposing, or to obtain compensation at any price for each and every one of the WTO waivers. What Paraguay was seeking to avoid was that the benefits or advantages granted to some developing countries were to the detriment of Paraguay, which faced enormous difficulties at the present time because it was land-locked, meaning it did not have access to deep-water ports or third markets even within its region. If this were not the case, it would have no difficulty in being flexible and approving waivers, as, for example, in the case of those granted to least-developed countries. This was a valid opportunity for displaying the flexibility to which Paraguay was referring. The basis of this flexibility was that none of the waivers requested and being applied by Canada, Switzerland or the United States should raise barriers, distort Paraguay's foreign trade or create undue difficulties for it. Paraguay congratulated Canada, Switzerland and the United States on the decision that had been adopted, which tended towards the goal of developing fairer multilateral trade by increasing the participation of the beneficiary countries in international trade and thereby improving their development possibilities. He reiterated that this was how Paraguay viewed the compatibility and balance between the principles of flexibility and of non-discrimination, in accordance with WTO rules and provisions, in the framework of fair, equitable and predictable trade.

82. The General Council took note of the statement and of the reports in documents WT/L/482, WT/L/483 and WT/L/484.

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11. Chairmanship of the Working Party on the Accession of Nepal

83. The Chairman, speaking under "Other Business", said that following consultations held on his behalf by the Accessions Division of the Secretariat, and upon their recommendation, he wished to inform delegations that Mr. Girard (Switzerland) had agreed to Chair the Working Party on the Accession of Nepal, replacing Mr. Farrell (New Zealand) who had left Geneva and was no longer available to Chair the Working Party.

84. The General Council took note of this information.

12. Better management of WTO meetings

85. The Chairman, speaking under "Other Business", said that he wished to raise this matter at the present meeting in order to give delegations time to reflect on it before the meeting of the General Council in December. At a number of meetings recently, and also at the Retreat for Permanent Representatives over the past weekend, one very prominent topic had been the sheer volume of meetings that delegations and the Secretariat had to deal with, and the need to manage this in the most efficient way possible. He recalled that the Director-General himself had referred to this at the meeting of the TNC earlier that month, and he was certain that delegations would welcome the fact that the Director-General had requested one of his Deputies to look into this question in consultation with delegations, as appropriate. There was, of course, a wider need to think creatively and work cooperatively to lighten the burden on all, as one entered what would be an even busier period ahead. Some very useful creative thinking had already been done, for example, by the Chairman of the TRIPS Council, who had surveyed delegations recently on how to increase the efficiency in the conduct of meetings of that body. As General Council Chairman, he was committed to improving the efficiency of General Council meetings. For the December meeting of the General Council therefore, where there was a very heavy agenda, he was considering encouraging delegations to show discipline and cooperation in limiting the length of their interventions. He asked that, in the period between now and the December General Council, delegations think about this in the context of making that meeting more efficient and thus lightening the burden on all. Some ideas to consider included: (i) circulating the texts of lengthy statements of position and making short oral statements drawing attention to the main points; (ii) not making lengthy interventions in order simply to agree with other delegations; and (iii) where all members of a group shared a common position, arranging for one representative to speak on behalf of the group. He intended to be quite proactive in December in urging delegations to be brief and focussed and to avoid unduly long debates, in the interests of equity and fairness to others.

86. The General Council took note of the statement.

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