WORLD TRADE
ORGANIZATIONTN/C/3
23 July 2003
(03-3951)
Trade Negotiations Committee
REPORT BY THE CHAIRMAN OF THE TRADE NEGOTIATIONS COMMITTEE
TO THE GENERAL COUNCIL
The following report is being made by the Chairman of the Trade Negotiations Committee, on
his own responsibility, to the General Council at its meeting on 24-25 July 2003 in the context of thepreparations for the Fifth Session of the Ministerial Conference.
_______________
1. As Members will recall, the Trade Negotiations Committee (TNC) was established by
Ministers in paragraph 46 of the Doha Ministerial Declaration, to supervise the overall conduct of the
negotiations, under the authority of the General Council.  The TNC was also mandated to establish
appropriate negotiating mechanisms as required and supervise the progress of the negotiations.
2. At its first meeting on 28 January and 1 February 2002, and on the basis of proposals made by
the General Council Chairman, the TNC appointed the Director-General in an ex officio  capacity to
chair the TNC until the deadline of 1 January 2005 established in the Doha Declaration.  It also agreed
to a structure for the work it would oversee, comp rising the following bodies:  Special Session of the
Committee on Agriculture, Special Session of the Council for Trade in Services, Negotiating Group
on Market Access, Special Session of the Council for TRIPS, Negotiating Group on Rules, Special
Session of the Dispute Settlement Body, Special Session of the Committee on Trade and
Environment, and Special Session of the Committee on Trade and Development
*.
3. At that meeting, the TNC also endorsed the Principles and Practices set out in the statement
made by the Chairman of the General Council.  The General Council subsequently agreed to the slate
of names for the negotiating body Chairpersons proposed by its Chairman on 15 February.
4. During 2002, the bodies established by the TNC all moved from procedural discussions to
substance.  Good progress was made in all areas, although at different speeds and on differing aspectsof the work.  The TNC met on four further occasions throughout the year, with the Chairman
reporting to each regular meeting of the General Council.
5. Overall, the work of the TNC and its subsidiary bodies intensified considerably in 2003.  The
TNC met on a monthly basis, receiving and discussing regular reports by the Chairpersons on the
work of their groups.  In addition, as Chairman I held a number of informal sessions, aimed at addingvalue to the work of the TNC through more interactive discussions.  At many of our meetings, we
were fortunate to have the presence of senior capital-based officials, in particular at our April
meetings at my suggestion.  On occasion, some of the Chairpersons had to report that deadlines or
target dates had been missed in their areas of work.  We cannot ignore these missed dates and the
                                                     
* This listing is without prejudice to the position of any Member on the nature of the Special Session of
the Committee on Trade and Development.TN/C/3
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disappointment they create, but I have always stressed the need to turn our disappointment into
determination to arrive at a balanced and positive outcome.
6. The TNC has one outstanding procedural issue still before it – observer status for
Intergovernmental Organizations.  I must express my disappointment that we have been unable to find
a solution, even on a provisional basis.  The technical assistance that some of the organizationsconcerned by this are delivering is a very important part of the Doha mandate.  In the Doha
Declaration, the WTO was instructed to work in coordination with other relevant agencies to provide
well-targeted technical assistance programmes, and among the Organizations which were mentioned
in this connection were UNCTAD, ITC, World Bank, and IMF.  The Bretton Woods institutions in
particular have an important contribution to make to supporting the WTO's work, especially
concerning assistance to developing and least-developed countries.  The coherence mandate from
Marrakesh and our cooperation agreements with them provide an agreed framework for ourpartnership.  In line with these agreements, they have observer status in the General Council.  It is
thus regrettable that it has not proved possible so far, despite considerable effort, to reach agreement
to grant them observership in the TNC and its subsidiary bodies.  I urge all Members to review their
positions on this issue, whose resolution would clearly be in the general interest.
7. I should also mention that, on 13 May 2003, the General Council held a very useful meeting
to discuss coherence in global economic policy-making and cooperation between the WTO, IMF and
World Bank.  The breadth of the economic and the political stakes that are tied up with the DDA
makes it natural that we should turn to our sister organizations and seek their support in bringing the
negotiations to a successful conclusion and, no less important, in helping with the long-term task of
implementing the results.  I think the support fo r the DDA expressed by the heads of the Bretton
Woods organizations at our May meeting demonstrated a renewed commitment to multilateral
solidarity and cooperation and shared responsibility for solving problems of poverty and
unemployment and I look forward to further strengthening our cooperation.
8. Since 8 May the Chairman of the General Council and I have engaged in an intensive open-
ended preparatory process at the level of Heads of Delegation.  This informal HODs format hasprovided delegations with a means to complement and support work in existing bodies and aims at
facilitating the move towards a more intensive phase of negotiation in the remaining time before
Cancún.  This open-ended informal process is above all an attempt to ensure an optimum combination
of transparency and effectiveness and to contribute to close coordination between General Council
and TNC work.  It has been, and will continue to be, complemented by consultations in a variety of
smaller configurations to address specific issues and problems.  However, as the Chairman and I have
emphasized on several occasions we are using the open-ended HODs forum to report on such
activities in order to ensure the transparency of the process.
9. At its tenth meeting on 10-11 June, the TNC took up two agenda items: reports by the
Chairpersons and statements by delegations.  Under the second agenda item, we were honoured by the
presence of H.E. Blaise Compaoré, President of Burkina Faso, who addressed the TNC on a proposal
for a sectoral initiative in favour of cotton in the negotiations on agriculture.  This proposal wasjointly submitted by Benin, Burkina Faso, Chad and Mali, and H.E. Mr. Maïga, Minister of Trade for
Mali also addressed the meeting on this matter.  I very much hope this submission will find a
constructive response.
10. At the same meeting we had a useful discus sion of a paper by 26 developing countries,
covering a wide range of WTO Members, setting out their shared priorities and objectives for thedifferent areas of the negotiations.  I described this paper as being distinguished by a spirit of
constructive engagement with the trading system as an engine of development.  Inputs of this kind are
very important to help us keep sight of the fundamental issues at stake in this Round.TN/C/3
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11. The June meeting was one of the most constructive TNC meetings held.  Delegations
discussed all the issues before the TNC in some depth, and it was clear from their statements that
much work remained to be done.  I emphasized that the Geneva process had the responsibility to
prepare the ground for Ministers at Cancún by limiting the number of unresolved issues that would
have to be taken up.
12. The TNC held its eleventh meeting on 14-15 July 2003, at which it took up 3 agenda items –
reports by the Chairpersons, overview of the negotiations in relation to the Fifth Ministerial
Conference, and a report on my work on outstandi ng implementation issues under paragraph 12(b).
This was the last TNC scheduled before the Ministerial Conference, and it was therefore a particularly
important meeting.
13. A large number of delegations commented on the Chairpersons' final reports before Cancún,
all of them recognizing that a lot of work would have to be done in the coming weeks.  Some of theChairpersons are continuing in their efforts to reach agreement before the Conference, and everyone is
appreciative of their efforts.  I encouraged delegations also to intensify negotiations among
themselves.  This is a multilevel process where such consultations, supported by close communication
with capitals, can prove of great importance to making progress.
14. At the end of the meeting, I suggested that delegations should be looking to Cancún with the
right kind of expectation.  The principal objective for the Ministerial Conference is to allow Ministers
to take stock of progress so far, make decisions regarding the work programme and provide political
guidance necessary in the period leading up to the conclusion of the Round.  I suggested they should
see Cancún as the foundation upon which to construct the path that will lead to a successful
conclusion of negotiations by 1 January 2005.
15. The Chairpersons' reports to the July 2003 TNC gave an overview of the work in their groups
since their establishment.  In addition, the Chairs gave their own assessments of the key issues for
future work.  The reports presented at this meeting were contained in the following documents:
Special Session of the Committee on Agriculture: TN/AG/10
Special Session of the Council for Trade in Services: TN/S/10Special Session of the Council for TRIPS: TN/IP/8
Negotiating Group on Rules: TN/RL/6 and Corr.1
Special Session of the Committee on Trade and Environment: TN/TE/7 and Suppl.1
16. In addition, reports by the Chairs of two other bodies established by the TNC are contained in
the following documents:
Special Session of the Committee on Trade and Development: TN/CTD/8
Special Session of the Dispute Settlement Body: TN/DS/9
17. These latter two reports were presented to the TNC at its meetings in March and June,
respectively.  These seven reports are hereby submitted to the General Council for subsequent
transmittal to Ministers at Cancún.
18. I would now like to set out my views on the state of play in each of the areas of work under
the TNC.
Agriculture
19. Progress on agriculture is central to forward movement under the Doha Development Agenda
as a whole.  As noted in the Draft Cancun Ministerial Text, the immediate task ahead in this area ofTN/C/3
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negotiations is to establish modalities for the further commitments.  It is clear that these modalities
must faithfully reflect the Doha mandate.
20. Participants have varying perspectives on how the objectives set by Ministers at Doha are to
be translated into further reform commitments.  Th is is amply reflected in the report of the Chairman
of the Agriculture Committee Special Session (TN/AG/10) which outlines the main issues andquestions on which compromise decisions are required.  The linkages between the various areas under
negotiation in agriculture are so numerous and complex that it is difficult to put emphasis on just
some of the questions and issues referred to in this report without raising questions of balance and
comprehensiveness.
21. In general terms, decisions are required in order to establish the basis on which the tabling of
lists of offers in respect of commitments in th e areas of market access, export competition and
domestic support ("comprehensive draft Schedules") can get underway.  Decisions are also requiredrelated to proposed amendments to the Agreement on Agriculture, either in the form of additional
disciplines to strengthen or clarify and enhance certain provisions, or to modify the Agreement.
22. As evident from the Chairman's report, the work ahead confronts a large number of
participants with the need to make hard choices.  The time has come to make these choices.  In the
extremely brief period remaining, participants need to  work hard to resolve, or at least considerably
narrow down, the issues and questions specified in TN/AG/10, in order to present Ministers with a
manageable agenda in this critical area of our work.
Trade in Services
23. Ministers agreed in Doha that initial offers be submitted by 31 March 2003.  So far, only 30
have been received.  This is a cause for disappointment.  Members who have not yet submitted their
initial offers must redouble their efforts to do so as soon as possible.  It must be ensured that by the
Cancún Ministerial, participants would have fulfilled the instructions received in Doha.  To date, 15
offers have been received from developing-country Members, and others are being prepared.  I amaware of the difficulties faced by developing countries, and particularly the LDCs, with regard to the
technical and human capacity constraints required in preparing an offer.  The Secretariat has made a
significant commitment to providing technical assistance in this regard.  It will continue as far as
resources permit to respond to needs in an efficient a nd flexible manner, with priority to LDCs.  It is
also necessary to adopt the Modalities for the Special Treatment of LDCs in these negotiations as
soon as possible.
24. I would say that we do not yet have a critical mass of offers on the table.  I am also concerned
that the quality of the offers is not sufficiently high as they appear largely to reflect a consolidation of
the status quo.  If the objectives of these negotiatio ns, as set out in Articles IV and XIX of the GATS
as well as the Negotiating Guidelines, were to be met, the quality of initial offers must be improved in
the near future.  As the negotiations aim at achieving higher levels of liberalization of trade in
services, it should be recalled that there shall be no a priori  exclusion of any service sector or mode of
supply and special attention shall be given to sectors and modes of supply of export interest to
developing countries.  In this connection, I should emphasize that the interest which I hear mentioned
most often by developing countries concerns Mode 4.  Looking to the overall guidance needed from
Ministers, and in order to meet the final deadline of 1 January 2005, participants must envisage
landmark dates by which they would submit improved offers and finally revised offers with a view toconcluding the negotiations.
25. On the rule-making side of the services negotiations (domestic regulation, emergency
safeguard measures, government procurement and subsidies), the lack of progress has caused seriousTN/C/3
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concern.  These negotiations have been underway since 1995.  It is important to conclude these
negotiations in accordance with their mandates and within the agreed timeframes.  On safeguards,
every effort must be made to bring the process to a conclusion by the deadline of 15 March 2004.
With regard to domestic regulation, subsidies and government procurement, every effort must be
made in order to reach completion prior to the conclusion of the negotiations on specificcommitments.
Market Access for Non-Agricultural Products
26. The focus of the Negotiating Group on Market Access will continue to be on the issue of
"modalities" in the lead up to Cancún.  Due to a number of factors, the target date of 31 May 2003 for
agreement on modalities was not met.  However, the Negotiating Group has been working efficientlyand advancing the work on modalities for both tariffs and non-tariff measures.  Thus far, the
discussions on tariff modalities have focused on a harmonizing formula applied on a line-by-line
basis.
27. However, how the parameters in the formula would be defined, as well as some of the inputs,
remain to be agreed upon.  There are clearly different levels of ambition among Members with respectto how deep formula tariff cuts should be, and thus what the parameters would be.  Suggestions have
also been made on using differentiated coefficients and other means to achieve a higher level of built-
in asymmetry in favour of developing countries in the modalities.  Other modalities, in particular a
sectorial approach and supplementary modalities, remain equally on the table and under discussion.
There are differences among the Members on the mandatory aspect of the sectorial approach, andwhether it should be set aside until the formula approach is agreed upon.
28. Special and differential treatment provisions have been treated as an integral part of the draft
elements of modalities, as well as giving special consideration to newly-acceded Members.  There are
still various elements under discussion on how to in corporate these two factors in the modalities, but
there is a general agreement on providing this treatment in the modalities.  Concerns have been raisedby many developing-country participants about the need to preserve the existing margins of
preference for their exports, which is an issue that deserves attention.  I suggest that our approach to
this issue should be multi-faceted, including through cooperation with other agencies, although I
would urge the participants concerned to not let this question overwhelm the other important aspects
of this negotiating area.  On non-tariff barriers (NTBs), work has been intensified, and the basic
framework for addressing NTBs has been presented in the draft elements of modalities and has met
with a general convergence of views.
29. As the Chairman of the Negotiating Group has said, a huge amount of work remains to be
done.  I would warn against complacency with regard to our ability to undertake this work in the time
we have until the end of the Round, and I would encourage negotiators to work at a higher level of
specificity.
TRIPS
30. The task of the Special Session of the Council for TRIPS is to negotiate the establishment of a
multilateral system of notification and registration of geographical indications for wines and spirits by
the Fifth Session of the Ministerial Conference.  These negotiations have thus been foreseen to be an"early harvest" item of the single undertaking.
31. It is clear from the reports that have been rece ived from the Chairman of the Special Session
and also from its documentation that a great deal of important work has been done in clarifying theTN/C/3
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issues and options and in initiating the process of formulating a legal text.  Progress in this latter
regard has been greater on some issues, such as the notification phase of the system, than on others.
In particular, there remains a wide division of views on the key issues of the legal effects that the
registration of a geographical indication should have in individual Members, including on whether
any multilateral mechanism for handling differences regarding the protectability within Members of
individual geographical indications notified under  the system should be provided for, and whether
such legal effects should apply to Members opting not to participate in the system.  The stage has
been reached in the work where it is difficult to make further progress on detailed drafting without
resolution of these key issues relating to the nature of the system to be established.
32. The Chairman has reported that it is his apprec iation that, in the light of the current state of
the negotiations in the Special Session and of the Doha Development Agenda as a whole, delegations
did not as yet feel in the position to be sufficiently flexible on these key issues to warrant him tablinga new text with compromise proposals at this stage.  One compromise proposal has been submitted
and I would join the Chairman in urging delegations to give careful thought to this proposal as well as
to any other options which might lie between the two main sets of proposals on the table.
33. It is clear that there remain important differences of view as to the costs and benefits of
different types of notification and registration systems.  This is perhaps not surprising since, given thenarrow focus of the negotiations in the Special Session – on a notification and registration system of
GIs for wines and spirits – and the differing interests of Members, it may be difficult to find an
internal balance within the area.  It is evident that progress in this area, like in all others, is affected by
the overall state of the Doha Development Agenda and in particular by the state of the negotiations on
Agriculture.  Moreover, it would seem that, for many delegations, it may also be difficult to finalizetheir thinking on the amount of flexibility that they w ould be able to show in regard to the notification
and registration system without having a clearer view of how the issue of the extension of GIs will be
handled in the WTO.
34. If the deadline set by the Ministers at Doha for the completion of the negotiations on the
notification and registration system is to be respected, it will be necessary for participants to moverapidly to resolve the key issues and finalize the details of the system.
WTO Rules
35. In the Negotiating Group on Rules, work on Anti-Dumping and Subsidies and Countervailing
Measures, including fisheries subsidies, has focused on the identification, clarification and
preliminary exchange of views on the issues that participants would like to see addressed in thenegotiations.  The work has been highly productive in identifying provisions and issues for
negotiation.  The Group has received numerous submissions from participants suggesting the
clarification and improvement of many different provisions of the Agreements, while many of the
outstanding implementation issues referred to in paragraph 12 of the Doha Ministerial Declaration
have been further pursued through submissions by developing-country participants.
36. In my view, the process of issue identification has been efficient and productive.  Not only
does the Group have a good idea of the range of issues participants would like to address, but
substantial progress has been made in clarifying the scope of the issues, both through oral and written
questions and answers, and in some cases through the submission by participants of more detailed
proposals identifying precise approaches, including proposed text, for addressing issues previously
identified.  Thus, while further issues may well be identified, it is my sense that the greater part of the
issues have been identified.TN/C/3
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37. The active and constructive approach of participants so far provides a basis for optimism that
we will be able to make further progress in our work.  There are however no grounds for
complacency.  For many participants, negotiations on Anti-Dumping and Subsidies and
Countervailing Measures including fisheries subsidies are a critical element in the overall balance of
the Doha Development Agenda.  Given that the negotiations are to be completed not later than1 January 2005, it is evident that the Group will have to accelerate its work after the Cancún
Ministerial Conference, and that it will need to sh ift its emphasis from identifying issues to seeking
solutions.  Resolving issues is of course more di fficult than identifying them, and there are tough
negotiations ahead of us.  All participants must be prepared to show flexibility in all areas of the
Group's paragraph 28 mandate if the trade-offs are to be found which will permit a successful
conclusion of the Group's work.
38. A distinctive dynamic applies to the work of the Negotiating Group on regional trade
agreements (RTAs), which has substantively progressed.  The issue-identification phase has been
practically completed, with issues being broadly structured as primarily "procedural" and "systemic".
39. On procedural questions, the Group is heading to a common understanding on several
elements to improve "RTAs transparency", thanks to the Negotiating Group Chairman's focus on the
four "Ws" of transparency (whether, what, when and where to notify).  Achieving agreement on thiswould constitute a milestone.  Not only would it reactivate the WTO process for reviewing RTAs, but
it would also enhance knowledge of the inter-relations between RTAs and the multilateral trading
system, and ultimately ensure a coherent and convergent development of trade policies at the regional
and multilateral levels.
40. Transparency is a vital element to encourage greater adherence of RTAs with relevant WTO
provisions, but there are also some aspects of these disciplines that may require clarification or
improvement.  On these, more "systemic" issues, the Group has now started its work, which will no
doubt enter into a more substantive phase in the coming months.
41. At Cancún, the Group needs, at the very least, guidance from Ministers to arrive at a decision
on "RTAs transparency" as soon as possible, and to be encouraged to pursue its work on systemicissues with all due speed.  Improving the relationship between RTAs and the multilateral trading
system is a very important element of the Round, and its systemic importance should not be
underestimated.  Regionalism can be a powerful complement to the multilateral system, but it cannot
be a substitute.  I believe that this area of our work deserves a higher level of political attention.
Dispute Settlement
42. Negotiators had aimed to complete the negotiations for the improvement and clarification of
the Dispute Settlement Understanding by 31 May 2003, but unfortunately consensus could not be
reached by the participants in the negotiations.  It is clear from the reports submitted by the Chairman
of the Special Session of the Dispute Settlement Body that considerable progress has been made in the
negotiations.  After conducting an examination of all proposals tabled in the negotiations anddetermining their level of support among participan ts, the Chairman issued a draft text under his own
responsibility for the consideration of particip ants.  While a significant number of participants
indicated that they could accept it as a basis for further work, others expressed conceptual difficulties
with some elements of the text and stated that further work should not only take into account the
Chairman's text, but also other proposals that had been made.
43. Following the lack of agreement to adopt th e Chairman's text, it was agreed that the
timeframe for the completion of the negotiations should be taken up by the General Council.  The
Chairman of the General Council has begun consultations in that regard, and it is my understandingTN/C/3
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that there is a willingness and determination among Members to resume negotiations after the Cancún
Ministerial Conference with a view to building on the significant work done thus far and completing
the negotiations possibly by May 2004, bearing in mind that the negotiations on dispute settlement are
excluded from the single undertaking.
44. As I see it, the main issue which needs to be resolved is the scope of the negotiations.  Given
that the Chairman's text was predicated on the assumption that the negotiations had to be concluded
by May 2003, it might be useful for participants to focus both on the Chairman's text and other
proposals already tabled by participants which, consistently with the terms of mandate given by
Ministers at Doha, could result in an improvement in the operation of the DSU.  The negotiations on
the DSU are crucial and I would urge participants to be as constructive as possible and accommodate
the interests of other participants, so that an agreement could be reached by the timeframe to be
agreed by the General Council.  A strengthened dispute settlement system is in the interests of allMembers and progress in the negotiations should not be linked to progress in other areas.
Trade and Environment
45. On trade and environment negotiations, progress has been made in developing a common
understanding of the paragraph 31 mandate.  Delegations had reached an agreement early on in the
negotiating process that they would start with a preparatory period in which they would examine the
various concepts contained in the mandate, and study participants' submissions and Secretariat
papers.1  Very useful work has indeed been accomplished in this preparatory period – some of it in
close cooperation with UNEP and MEAs – with participants submitting almost 40 papers.Delegations should now use the opportunity of the Cancún Ministerial Conference to reaffirm their
commitment to these negotiations and to begin looking beyond the preparatory phase.
46. On paragraph 31(i), participants have used the preparatory phase to discuss the concept of an
"MEA", and the nature of the "specific trade obligations" (STOs) set out in MEAs.  In looking beyond
this phase, delegations should turn their attention to bringing the various concepts of paragraph 31(i)together in order to address the "the relationship between existing WTO rules and the STOs set out in
MEAs." Divergences on whether there is a need to define certain concepts, and on the scope of MEAs
and STOs, will need to be temporarily put aside, so that focus can be placed on the relationship
between WTO rules and STOs –  for it is that "relationship" that is the focus of the mandate.
47. On paragraph 31(ii), I note that while important headway has been made in identifying
avenues for increased cooperation and information exchange between UNEP, MEA Secretariats and
the WTO, progress has been more limited in the development of criteria for the granting of observerstatus.  My remarks in paragraph 6 (above) on the general issue of observer status are also relevant
here.  Participants should turn their attention soon after Cancún to operationalizing the suggestions
made for the enhancement of information exchange, and should work more rigorously on the criteria
for observer status.  The involvement of the Secretariats of various multilateral environmental
agreements (MEAs) and the United Nations Environment Programme (UNEP) in the work of theCTESS has been a welcome development and I note that a proposal for the Cancún Ministerial
Conference was made for the granting of observer status to certain MEAs and UNEP in the Special
Session of the Committee on Trade and Environment (CTESS), and for consolidating MEA
Information Sessions in the regular CTE.  While no consensus on this proposal has been reached, the
CTESS must use whatever avenue is available to it to cooperate with UNEP and MEAs in the courseof these negotiations.  Such cooperation may be essential to ensuring that a mutually supportive
outcome between trade and environmental policies is reached through the paragraph 31 mandate.
                                                     
1 Chair's Report on the 11-12 June 2002 meeting of the CTESS (TN/TE/2).TN/C/3
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48. On paragraph 31(iii), while the CTESS has been observing the progress of work in the
Negotiating Group on Market Access for Non-Agricultural Products, and the Council for Trade in
Services Special Session, it will, in my view, need to become more actively engaged after Cancún.
The CTESS has an important role to play in ensuring that a successful outcome is reached on this part
of the mandate.
S&D Treatment Work Programme
49. On special and differential treatment, as you know, the work of the Committee on Trade and
Development (CTD) in Special Session has been in suspension since February 2003, following
disagreement among Members on the scope of the mandate given by Ministers at Doha and the
understanding reached in the General Council th at the Chairman of the Council would hold
consultations on how to take this important matter  forward.  Since the February General Council, the
Chairman has been undertaking a series of consultations at the level of Heads of Delegations on a
number of the Agreement-specific proposals that have been put forward by developing countries.  The
Chairman has reported regularly both to the General Council and to Heads of Delegations in informal
meetings of the progress that is being made in this area of work.  I am gratified to note that thesediscussions have taken place in a positive atmosphere with a high level of engagement and a
willingness to find solutions to the concerns expr essed by developing countries.  The Chairman will
himself be making a report on these consultations to the General Council.
50. The Chairman has also referred some of the Agreement-specific proposals to relevant
negotiating groups and other WTO bodies with the request that they be considered as soon aspossible, and that a report be made to the last meeting of the General Council before the Cancún
meeting on their status and the progress made to date.  With respect to the other aspects of the work
programme on special and differential treatment, including work on cross-cutting issues, the
establishment of a monitoring mechanism and the incorporation of special and differential treatment
in the architecture of WTO rules, I believe that the CTD in Special Session should be requested topursue its work in these areas and report to the General Council.  In this regard, the Chairman and I
have made a proposal in the draft Ministerial Text circulated last week and I trust that we will be able
to come to agreement to take these elements of th e special and differential treatment work programme
forward.
Implementation-related issues under paragraph 12(b) of the Ministerial Declaration
51. In line with the mandate set out in paragraph 12(b) of the Doha Ministerial Declaration,
reports on work on outstanding implementation issues were presented to the TNC at its December
2002 meeting.  Paragraph 12(b) provides that the outstanding implementation issues for which no
specific negotiating mandate was provided in the Declaration would be addressed as a matter of
priority by the relevant WTO bodies, which would report to the TNC by the end of 2002 forappropriate action.
52. From the nine reports presented under this mandate, it was clear that, despite all the hard
work that had been done, Members did not seem to have reached agreement on definitive solutions on
most of the issues before them.  While the TNC was able to note consensus on one issue in the SPS
Committee, it was unable to agree on appropriate action for the other issues before it.  In the light ofthis, I proposed to undertake consultations on possible next steps for the outstanding issues.
53. At the March 2003 meeting of the TNC, following my consultations I made a number of
proposals with a view to making progress on some of the outstanding issues.  However, it did notTN/C/3
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prove possible to move forward as I proposed, due to procedural difficulties related to the issue of the
extension of the protection of geographical indications.
54. After further consultations, a procedural understanding was reached at an informal Heads of
Delegation consultation on 14 May, which allowed me to undertake consultations on the geographical
indications issue in my capacity as Director-General.  Since then, I have also continued myconsultations on all of the outstanding issues, with the assistance of the Deputy Directors-General,
and I have reported on this work to the July TNC meeting.  In the light of what had been said in our
consultations, I again made proposals on a number of outstanding issues with the hope of moving this
very difficult area of our work forward.
55. Although it was not possible to reach agreement on my proposals at the 14-15 July TNC, I
intend to continue my consultations and to report further.  I call on the cooperation of all Members to
enable us to make whatever progress may be possible in the future.
Overall Assessment
56. As we approach the Ministerial mid-term review of the negotiations, it is timely to recall the
significance of our undertaking.  The negotiations supervised by the TNC cover almost all of worldtrade.  They include areas of fundamental importance to the lives of millions of people, and they offer
a rare opportunity to make a difference for the better.  Improving trading opportunities and the agreed
framework of multilateral rules will make a pow erful contribution to growth and development
prospects for all of the WTO's 146 Members.  This contribution is especially urgently needed at a
time when global economic signals are uncertain at best.
57. All regions of the world are now experiencing economic uncertainty and slow economic
growth.  After an average rate of trade growth in the 1990s of 6.7%, global trade experienced a 1%
decline in 2001 and grew by just 2.5% in 2002.  Earl y indications suggest growth in trade volume for
2003 will be little or no better than 2002.  It has become increasingly evident to political and business
leaders the world over that the weak global econom y urgently needs the stimulus that significant
further liberalization of world trade can bring.
58. As I have reported to you over the past several months, our preparations for Cancún have
received powerful external support.  A large number of recent international gatherings such as the G-
8, the meeting of the Heads of State and Government of the African Union, the Caricom Heads of
Government meeting, the African Union Trade Ministers meeting, the LDC Trade Ministers meeting,
the APEC Trade Ministers meeting and the Arab Monetary Fund meeting of Trade and Finance
Ministers, have seen the DDA feature high on the agenda.  These meetings have emphasized theimportance of trade as an engine of growth and development.  In my regular contact with Ministers,
including with Finance Ministers at the IMF/World Bank International Monetary and Finance
Committee meeting earlier this year, I have been  encouraged by their support and commitment to
finishing the Round successfully and on time.
59. We now need urgently to translate this political sense of priority into concrete progress in our
negotiations.  To do this, we must ensure that we have no transmission lags between capitals and their
teams in Geneva.  I hope to see instructions to negotiators here reflect in detail the importance their
political leaders attach to a successful conclusion to the Round.
60. We have now reached the mid-point of the Round, and a considerable amount of effort has
been put into our work by all concerned.  I wish to thank all participants, and most of all theChairpersons of the negotiating bodies, whose relentless efforts to move ahead have been very
valuable.  Progress has been made on all fronts, but overall it is still insufficient.  As I told the JulyTN/C/3
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TNC, we do not yet have a real negotiation.  Too often negotiators have just been waiting for the other
person to show their hand.  However, there are some recent signs of the beginnings of real
engagement, and these must be built upon.
61. The question now is:  What do we need from Cancún?  I suggest we should avoid seeing the
Ministerial in simplistic success-or-failure terms.  Our aim at this Conference is neither to launch theRound nor to conclude it, but rather to give momentum to the final stage of the negotiations.
Ministers will do this through the decisions they are committed to take and the guidance they will
give.  The success of Cancún will make itself fully apparent on 1 January 2005.
62. The General Council Chairman, with my close cooperation, has circulated the first draft
Ministerial Text to help focus the intensive work in the weeks ahead to prepare for Cancún.  This text
reflects the level of ambition established by Ministers at Doha.  It is important to maintain this level of
ambition, but in a specific and concrete manner.  Our text makes it clear that there is an urgent needfor movement in a few key areas, which are clearly apparent in it.  As I have said on previous
occasions, this text cannot provide solutions to the deep differences among participants on these
issues, but it can and should help negotiators to apply their efforts where they are most needed.  We
need intensive, focussed work in these areas, back ed up by the political will to reach the necessary
agreements.
63. Without agreement on these key issues, there is a high risk of immobility overall.  Our work
in the TNC makes it clear that there are some important linkages among issues, not all of them within
the TNC's mandate.  An outcome by the time of Cancún on TRIPS and Public Health, for example,
could help set a positive tone for the Conference overall.  The outcome on agriculture will clearly
influence how far we can go on non-agricultural mark et access, the Singapore issues and some other
issues.  It is probable that none of these issues will move on their own.  We urgently need a positive
synergy among them.
64. The need in the very few weeks remaining before Cancún is to direct all possible negotiating
energy to unblocking the main strategic issues.  I sh all be continuing to work intensively with the
General Council Chairman and delegations to facilitate the building of consensus on a balanced andforward-looking input to Ministers at Cancún, and I know I can count on all participants to do the
same.
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