Effective participation in negotiations

The closer integration of developing countries into the trading system is a dynamic task of the WTO. The special provisions that the WTO Agreements make for developing country interests advance the goal. But the more effective participation of developing countries in the WTO negotiations is itself most likely to bring about the evolution of these provisions in a way that is helpful to developing countries.

Unlike the GATT where multilateral trade negotiations were decided on an ad hoc basis, the WTO Agreements contain specific provision for future multilateral negotiation - the so-called 'built-in' agenda.

• specific provision has been made for new negotiations – to begin before the year 2000 - on progressive liberalization of trade in services under GATS and continuation of the reform process under the Agreement on Agriculture;
• provision has been made for recommendations on improved rules on safeguards, subsidies and government procurement in GATS, on anti-circumvention measures in the context of anti-dumping action and on rules of origin
• the operation of Articles of the Agreements are subject to review, implying the possible renegotiation

Three new issues were identified at the Singapore Ministerial meeting have been included on the WTO work programme, possibly leading to future negotiations

• trade and investment,
• competition policy and restrictive business practices
• transparency in government procurement

Other negotiations on market access issues may take place in response to

• remaining peaks in tariffs - particularly where tariffs have replaced former non-tariff barriers
• the spread of regional agreements
• the accession of new members to WTO

Since the Geneva meeting of Ministers in 1998, a number of other issues have been raised including:

• Electronic commerce
• Trade facilitation

While preparations for a new round are at a preliminary stage, the communiqué from the May 1998 Ministerial Meeting in Geneva would suggest that the agenda will likely focus on four main areas:

• The ‘built-in’ agenda, as described above
• A review of the implementation of certain Uruguay Round agreements, including TRIPS, TRIMs, customs valuation and pre-shipment, which would not necessarily imply new commitments
• Further liberalization of industrial tariffs
• Review of WTO rules, particularly dispute settlement, technical barriers to trade (TBT) and contingency trade measures.

Identifying objectives

What are the sources of information that developing countries might use in establishing negotiating objectives?

Identification of national interests

The identification of national interests is likely to arise from interaction with firms and associations - including foreign investors - in the private sector, directly or using surveys and questionnaires. Recommendations may emerge as a result of research conducted by government agencies or contracted academic or specialized research institutions.

Conferences, business seminars and other activities undertaken with the assistance of multilateral financial institutions or in cooperation with the WTO/UNCTAD International Trade Centre may also provide an opportunity for developing country governments to identify national trade priorities.

Notifications and TPRM

Notifications under the Agreements and the trade policy reviews conducted on a regular basis by the WTO are a source of information on the policies of trading partners.

Developing countries' own trade policy reviews often help governments, their agencies and the 'trade policy community' of business and academic institutions to come to a better understanding of their own trade policy environment. The process of reflection on their own policies and objectives can be a valuable opportunity for identifying new directions and opportunities - whether for negotiated or autonomous changes in trade policies and regulations.

Agreement Committees

Participation in the Committees of the WTO Agreements allows members to develop a detailed understanding of the trading system and of opportunities for improvements in the rules.

Active participation allows members' representatives to develop expertise that not only helps with the development of national objectives but also places them in a position to win key elected roles in the structures created to conduct multilateral negotiations. Members whose representatives play a senior role in the negotiations committees often have an incidental advantage in negotiations due to the superior information that is inevitably available at the 'center of the action.'

Building consensus

The WTO has more than 130 members, each of whom has one 'vote' - although votes are extremely rare. No decisions are taken unless based on a consensus of members' views or - at a minimum - majority support.

Because developing countries comprise a large majority of the membership, it may seem that they would find it easier to build consensus on their objectives. There is certainly some basis for this expectation: developing countries acted effectively in concert to steer several issues of importance to them in the Uruguay Round of negotiations.

But developing countries are not a homogeneous group. Their trade interests vary greatly as does the composition and diversity of their merchandise and services trade, their level of trade dependency, the destination of their exports and the volume and value of their trade. Consequently, only an exceptional issue will engage the interests of all developing country members in the same way. Effort to find points of 'mutual advantage' and careful compromise on objectives may be necessary to win a consensus on any issue, even among developing countries.

It is not necessary, however, to develop a consensus among members or to receive the support of even a large proportion of the WTO membership, to get an issue 'on the agenda' of WTO negotiations. There is likely to be a number of issues or a number of approaches to the same issue jostling for attention at the outset of a negotiation. The support of a relatively small number of members may be sufficient to win any proposal a place on the agenda of the talks.

Since issues on the agenda demand some role in the final 'package' emerging from the negotiations, absence of an initial consensus is not usually a guide to the final success of a proposal in multilateral negotiations.

Role of regional and other groupings

Except for the largest economies, achieving agreement in WTO negotiations requires members who share an objective to work together to build a broad consensus. The most likely source of initial support will be other members of a regional group such as one of the 'free trade' agreements or customs unions.

Members of regional groups are predisposed by their trade relations and shared policy interests to have similar interests. Other members in the same geographic region or whose export profiles are similar are also potential supporters.

Human resource building

Many administrations, developed and developing, find it difficult to maintain strong representation over time. The 'institutional memory' of a Trade Ministry is often embodied in the personal experience of a small number of officials who, due to the shortage of trained and experienced staff may be transferred to other responsibilities. Their successors must start again from 'square one'.

As might be expected, "learning by doing" inevitably provides the best training. Countries that have invested resources in fielding large delegations incorporating large numbers of junior staff have witnessed the dividends. The negotiation of accession to GATT which calls for intense government focus and coordination has proven one of the best "training courses", and left the countries concerned with a skilled team of negotiators.