World Trade Organization (WTO) New Round
(Negotiating schedule after the Doha Ministerial)

26 December 2001

Background

November 1999: Third Ministerial Conference, Seattle, USA. Failure to launch a new round of multilateral trade negotiations.

Major countries, including Japan, took various initiatives to facilitate the early launch of the new round.

November 2001: Fourth Ministerial Conference, Doha, Qatar. Agreement to launch a new round of WTO multilateral trade negotiations.

Assessment of the negotiations

(1) With regard to the negotiating agenda for the new round, most of Japan's views were duly reflected into the broad-based agenda. These include further trade liberalization and strengthening of trade rules such as disciplines on anti-dumping measures.

(2) The new round is scheduled to last for three years, scheduled to be concluded on 1 January 2005. The conduct, conclusion and entry into force of the outcome of the negotiations shall be treated as a part of a single undertaking.

Outlook

(1) It has been decided that the first Trade Negotiations Committee (TNC) meeting will be held by the end of January 2002. This TNC will supervise the overall negotiations, and it is expected that the framework for negotiations and their basic timeline will be discussed on this occasion. Once the basic framework is agreed, substantive discussions will begin.

(2) At the Doha Ministerial, there had been no agreement to initiate negotiations on such issues as investment, competition, trade facilitation and transparency in government procurement, which are known as the Singapore issues. It was decided at the Doha Ministerial to continue the ongoing studies on all these issues, and the negotiations to take place at the Fifth Ministerial, with explicit consensus. The key is to make sufficient progress in the studies so as to commence negotiations on these issues at the Fifth Ministerial.

(3) It is necessary to swiftly confer and decide on the timing for the Fifth Ministerial Conference, which is scheduled to be held in Mexico.

Key Areas of the Negotiations

(1) Agriculture: In March 2002, work on the second phase of negotiations will be concluded (note: the negotiations on agriculture and service sectors began at the beginning of year 2000). During this second phase, WTO Members have concentrated their work to clarify the content of each other's negotiating proposals, which have already been submitted in the first phase. In the subsequent phase, it is expected that discussions will take place on modalities (which include various approaches to determine tariff levels). This discussion will continue until the end of March 2003, and the primary focus of the negotiations will be on what modalities should include and how they should be decided.

(2) Services: Based on various areas of interests expressed by the WTO Members in the negotiation to date, a review will be conducted on such areas as disciplines on domestic regulations and safeguard measures. In the meantime, negotiations on specific commitments by each member will take place. Each member will submit their initial request in June 2002. Based upon this request, a first offer will be made by the middle to end of March 2003.

(3) Rules (Anti-dumping, Subsidies etc.): The discussions will aim to set the negotiating framework as well as to identify specific issues that should be dealt in the negotiations such as ways to determine injury caused by dumped imports.

(4) Trade and Environment: As the European Union strongly requested the issue to be included in the negotiating agenda for the new round, it was decided at the Doha Ministerial Conference to place trade and environment as a part of the negotiations. However, no agreement exists concerning the framework and schedule for negotiations for trade and environment at this point. Difficult negotiations are therefore expected to take place on this matter, requiring a delicate balancing act of interests and concerns held by various trading partners including developing members.

(5) Investment and Competition: A primary focus will be placed on how to address the concerns expressed by developing members (many developing members are still hesitant in participating in negotiations on these issues). When discussing the issue of investment and competition, it is important to take into account differing interests held in each respective region. (For instance, African countries appear to be more keen about effective ways in which capacity-building can be implemented in these areas, whereas many Asian countries seems to be more interested in clarifying the need of establishing investment rules, rather than enhancing capacity-building.)

(6) Capacity Building: It is vital to enhance the level of capacity related to trade particularly among developing Members so as to promote their active participation in the trade negotiations. In order to facilitate the implementation of WTO agreements and their obligations, it is also necessary to expand capacity building in such areas as human resources development.