World Trade Organisation Fourth Ministerial Conference, Doha, Qatar, 9-13 November 2001

Doha, Qatar played host to a 'make or break' Fourth Ministerial Conference of the World Trade Organisation (WTO) from the 9th until the 13th November 2001 which brought together representatives from over 140 countries. The challenge for the representatives was to agree on an agenda for a new round of trade talks after failure at the Third Ministerial Conference in Seattle in 1999. The key issues up for discussion were:

• the environment
• agriculture
• trade-related aspects of intellectual property rights (TRIPS)
• anti-dumping
• the implementation of past agreements.

The European Union, which strongly supports the WTO, also wanted to add other items to the agenda for the new round. These included matters such as competition policy and public procurement, investment, anti-corruption measures, labour standards and a wide range of environmental concerns. However, in order to receive support from developing countries on these issues it was recognised that the EU would have to alter its stance on agriculture.

After much controversy and lengthy debate, the WTO members eventually agreed on a final Ministerial Declaration which will allow for the launch of a new round of global trade talks.

Background

• The World Trade Organisation

The World Trade Organisation is a global international organisation which deals with the rules of trade between nations. It was set up in 1995 as a successor to the General Agreement on Tariffs and Trade. The organisation is based in Geneva, Switzerland and in July 2001 its membership totalled 142 countries, accounting for 90% of world trade.

The WTO's overriding objective is 'to help trade flow smoothly, freely, fairly and predictably'. Its main functions are:

• administering WTO trade agreements
• a forum for trade negotiations
• handling trade disputes
• monitoring national trade policies
• technical assistance and training for developing countries
• cooperation with other international organisations

It has concluded agreements on: customs tariffs; agriculture; textiles; services; intellectual property; anti-dumping; subsidies; emergency safeguards; technical and bureaucratic barriers. Two agreements on civil aircraft and government purchases remain signed by only some WTO members and so these are know as plurilaterals. The WTO also conducts regular reviews of individual countries' trade policies.

The WTO held its Third Ministerial in Seattle from 30 November to 3 December 1999. The key objective at Seattle was to launch a new round of trade talks, to be known as 'The Millennium Round'. However, Ministers failed to reach agreement on an agenda for the new round and the meeting was suspended.

For a more detailed account of the Seattle meeting and a set of useful links look at:

European Sources Online: In Focus: The Millennium Round, December 1999, December 1999

In January 2000, preparation began for the next Ministerial Conference. Director-General Mike Moore and 1999 General Council Chairman Ali Mchumo unveiled a four point plan of confidence building measures designed to get the organisation back on its feet and functioning again after the setbacks at Seattle. As negotiations proceeded, members began preparing in early 2001 for the WTO's 4th Ministerial Conference. The organisation is mandated by the terms of the Marrakesh Agreement to hold its conference every two years. In February 2001 it was agreed to hold the Fourth WTO Ministerial Conference in Doha, Qatar from 9th to 13th November 2001.

• The European Union and the World Trade Organisation

All the Member States of the European Union belong to the WTO, indeed several of them were among the founder-members of GATT. Under Article 113 of the Treaty of Rome the European Commission is able to represent the Member States in international trade negotiations, and has done so in GATT since the Kennedy Round began in 1963. The European Commission operates on the basis of a mandate laid down by the Council of Ministers and in consultation with the Article 113 Committee (following the renumbering of the treaties in the Treaty of Amsterdam this committee is now known as the Article 133 Committee).

At the Fourth WTO Ministerial Conference the European Union was represented by a delegation of some 500 representatives, led by Franz Fischler, European Commissioner for Agriculture, Fisheries and Rural Development and Pascal Lamy, the European Commissioner for Trade.

The negotiating mandate for the EU delegation at Doha was prepared beforehand in the Council of European Union. The General Affairs Council, meeting on 29 October 2001, reaffirmed some of the EU's key objectives for the Doha Conference including the launch of a new round of trade talks, the importance of the developing countries and the flexibility of the TRIPs agreement.

Issues on the Doha agenda

In order to launch a new round of trade talks, several issues needed to be discussed and agreed on at Doha. The five key issues concerned agriculture, TRIPs, implementation, the environment, services, investment and competition policy.

• Agriculture

At the Doha Conference there were two aspects to the debates on agriculture: one of the most important and indeed most controversial issues concerned further liberalisation in agricultural trade; and the other concerned the non-trade aspects of agriculture such as food safety.

In relation to the further liberalisation of agriculture the EU was put under strong pressure from other WTO members at the Doha Conference who called for the phasing out of farm subsidies in a new round of global trade talks. This pressure came particularly from the Cairns Group and other developing countries. Such proposals conflict with the European Union's Common Agricultural Policy and the so-called green boxes and blue boxes.

Franz Fischler, the European Commissioner negotiating on behalf of the European Union in the area of agriculture at the WTO, maintained in a speech at the EU's opening press conference in Doha that the EU would be constructive and was prepared to,

further roll back the trade-distorting elements of EU farm subsidies and to afford special treatment to the developing countries. We are ready for a deal, we are prepared to give and take.

He also pointed out that the EU would be prepared to support the phasing out of export subsidies but only on the basis that such a discipline was applied to all forms of export subsidisation. He cited the example of the outcome in the Uruguay Round where the EU reduced its restitutions to 12% of the EU's farm budget yet the US export credits, the abuse of food aid and price setting via state trading enterprises all escaped from any form of discipline.

However, Fischler struggled to maintain this flexible stance in reality during the conference, as France refused to agree to the phasing out of the EU farm subsidy system. The opposition from the French threatened the collapse of the whole agreement, as the French Trade Minister Francois Huewart pointed out, calling it 'a sort of deal-broker point'. But the president of France main's farmer's lobbying group, Jean-Michel Lemetayeur, reportedly said he, 'would rather the talks collapsed than the EU signed up to a bad deal'.

In the end, France accepted the deal on agriculture for a number of reasons. Firstly, the wording of the final text of the Ministerial Declaration (paragraph 13-14) was altered so that it explicitly stated that the new negotiations were aimed at 'the reductions of, with a view to phasing out, all forms of export subsidies'. Secondly, ministers agreed to grant the European Union a waiver from its non-discrimination obligations, in order to enable it give preferential tariff concessions to the Cotonou agreement. Furthermore, by conceding on the liberalisation of agricultural trade the EU was able to include two of its key issues concerning the environment and sustainable development, and investment and competition policy on the agenda for a new round of world trade talks.

Despite the wording of the final text, other WTO members are clearly keen to keep the emphasis on the phasing out of subsdies. In its ministerial statement on the conclusion of the Doha conference, the Cairns Group welcomed the adoption of the WTO Ministerial Declaration saying,

an important milestone on the path to fundamental agricultural reform has been reached. We now have agreed to negotiate the phase out of all forms of export subsidies

Less controversy surrounded the other aspect of agriculture, its non-trade concerns, which the EU wanted to be put on the negotiating agenda. In the final declaration WTO members agreed to take into account the non-trade concerns in the negotiations provided for under the Agreement on Agriculture.

More information on the EU's position on agriculture and the WTO can be found on the European Commission's DG for agriculture website on a special page on:
European Commission: DG Agriculture: WTO 2001

• TRIPS

The other key controversial issue concerned trade in intellectual property rights (TRIPs). The most controversial aspect of TRIPs at the conference concerned the demands of the developing countries that WTO intellectual property rights on pharmaceuticals and patents should not prevent them from accessing essential medical supplies. The issue has been highlighted because of the huge AIDS epidemic in sub-saharan Africa. Twenty five million people are estimated to have the HIV virus yet only around 25,000 actually receive the drugs that have revolutionised treatment in the west. Developing countries claim that the lack of treatment is due to the drug companies charging prices for AIDS medicines which put them out of the reach of most Africans.

At the Doha conference, members agreed to allow countries to seek a waiver on public health grounds from strict WTO rules which guarantee drug patents for 20 years. While this was clearly a positive step for developing countries and the deal received much positive coverage in the world press some NGO development organisations were less enthusiastic. The World Development Movement pointed out that the Final Declaration (paragraphs 17-19) on TRIPs confirms the existing agreement and it was only necessary to seek confirmation because of 'attacks by the US on the rights of countries to prioritise affordable treatment for health emergencies such as HIV/AIDS'. Notably it was the US who, in recent weeks, threatened to override the patent deal on the anti-anthrax drug, Cipro, even though less than ten people have died from the disease.

Other decisions on the trade in intellectual property rights at the Doha Conference concerned the negotiation of a multilateral system of notification and registration of geograhpical indications for products other than wines and spirits. The EU welcomed this move as it would offer the ability to protect products such as Italian Parmigiano cheese from being pirated in other WTO-countries.

• Implementation

The issue of implementation also divided the rich from the poor countries. This concerns the commitments decided at the WTO which member countries must then implement. Prior to the Seattle Ministerial meeting, the developing countries had tabled 102 issues which they felt should be given priority. These were either commitments which the richer countries had failed to implement or ones that the developing countries themselves were struggling to implement because they either lacked the resources or because they would have adverse impacts on the countries' development. The problems concerning implementation were driving a gap between the developed and the less developed countries with the former calling for a new round but the developing countries less sure because they were concerned how far their resources could be stretched. In the final text of the Ministerial Declaration (Paragraph 12) WTO members agreed to give high priority to the outstanding implementation issues in the future Work Programme and decided that the relevant WTO bodies would report to the Trade Negotiations Committee by the end of 2002 for appropriate action to be taken.

Prior to the Doha conference the European Union had recognised the need for demonstrable progress on implementation issues if the developed countries were going to persuade the less developed to support a new round of trade talks. In its overall assessment of the Doha results, the European Union stated that it felt 'progress had been made and the decisions reached had resolved a number of problems'. In its view,

the Doha declaration meets the demands for negotiations from some developing countries, without risking to unravel the achievements of the Uruguay Round.
European Commission: Memo: MEMO/01/371

However, the World Development Movement was not so complimentary on the progress on implementation issues. In its analysis of the final Ministerial Declaration it pointed out that, while further consideration of these issues is included in the Declaration, only minor adjustments have been made to the way current agreements are implemented. Moreover, the commitment to allow quota free and tariff free access to exports from developing countries 'remained an aspiration'. The analysis goes on to say,

The lack of concrete actions to resolve these problems identified as a matter of the highest priority by developing countries makes a mockery of the concept of the 'Development Round' and calls into question the real commitment of the EU to make trade rules fairer to the poor.

• Environment

One of the EU's main objectives at Doha was to see sustainable development and the environment on the agenda for a new round of negotiations. The EU is playing a leading role in global discussion on the environment and will play a major role in the 2002 World Summit on Sustainable Development which will be held in Johannesburg.

At the WTO conference the EU succeeded in achieving most of its objectives on environment, largely because it conceded in other areas such as agriculture. The final Ministerial Declaration (paragraph 32) calls for increased action in the WTO in favour of sustainable development and the protection of the environment, with WTO members agreeing that one of the overarching goals of the negotiations will be that of sustainable development. The Committee on Trade and Environment (CTE) was also ordered to focus on the effect of environmental measures on market access, the relevant provisions of the TRIPS agreement and the labelling requirements for environmental purposes. The CTE shall present a report on these issues to the Fifth Ministerial Conference. There will also be negotiations on Multilateral Environment Agreements (MEAs) although this was criticised by environmental groups as the wording of the text effectively gives the US a let out clause on agreements they have not signed such as the Kyoto Protocol.

Indeed, groups such as Friends of the Earth criticised the Doha decisions on the environment for not going far enough. David Waskow, the Friends of the Earth trade Policy Co-ordinator said,

The Doha agreement does nothing to keep the WTO from interfering with domestic environmental protections. Once again, the global trade regime missed an opportunity to take significant steps for the environment on this front.

• Investment, Services and Competition Policy

The two issues of investment and competition policywere also subjects which the EU particularly wanted to be added to the agenda for the new round of trade talks. Their proposals were met with hesitation from the developing countries who already felt that the current issues on the agenda stretched their resources to the limit. The differences in the size of resources of the countries was reflected in the size of the delegations: while the EU sent more than 500 representatives, many developing countries could only send a couple and Haiti had no representative at all.

However, by conceding on the liberalisation of agriculture the EU did succeed on getting these issues placed on the agenda for negotiations. Agreement was reached on dates for launching the market access negotiations on services which is expected to bring about considerable market opportunities for EU business.

In terms of competition, a landmark decision was reached to set the objective of establishing a multilateral framework on competition policies. The EU believes this will contribute to the more effective application of domestic regimes and be of benefit to consumers all over the world.

The Doha Declaration marks another unprecedented step by also establishing a multilateral framework aimed at improving the conditions for Foreign Direct Investment Worldwide. All the elements of the investment framework contained in the Declaration are in line with the EU's own agenda in this area.

In both the framework for competition policy and that of investment, the option for developing countries to opt out, an EU proposal, was also included in the Declaration allowing for flexibility in future negotiations.

China and Taiwan become WTO members

Another historic event at the Doha Conference was the welcoming of China and Taiwan as members of the WTO, bringing almost a quarter of the world's population into the multilateral trading organisation. The move means that the WTO now has membership from 144 countries. China itself is the world's most populous nation and is the fifth largest global trader.

From Doha to a New Round

After a controversial Fourth WTO Ministerial Conference which had to overrun into a fifth day for agreement to be reached on a Ministerial Declaration, the Doha Conference has enabled a new round of trade talks to be launched by agreeing on what would constitute the work programme of the round. This will be the first round since the eight year Uruguay Round ended in 1994. As such, it has overcome the setbacks at Seattle and has been heralded a success by many. There have been estimates that a new round of trade talks would lead to the creation of $400 billion dollars of new wealth, of which $150 billion would flow into developing countries.

Certainly the European Union, which was one of the strongest advocates of the new round, feels its objectives have been achieved. Pascal Lamy, speaking at the closing press conference, said,

The Declaration constitutes a solid basis for a new set of WTO negotiations. Call it a round, or whatever you like: it is a very pleasing result
European Commission: Speech: SPEECH/01/538

President of the European Commission, Romano Prodi also welcomed the move saying,

This is the best possible news for efforts to build better global governance. I am also delighted at the crucial and constructive role played by the EU, and by the unity and solidarity shown right trough this process by the Member States, with the Commission as negotiator.
Statement by Romano Prodi on the DG Trade Website

Several European non-governmental organisations have also praised the results of Doha. UNICE and ESF welcomed the decision to launch a new round, saying,

European business' main objective, namely the launch of a new WTO broad-based round of negotiations to be concluded in three years, has been agreed. In the current climate of economic and political uncertainty, this decision is a significant step towards restoring confidence in the multilateral system and strengthening international economic governance. The package agreed meets several of the priorities that European business has been actively pursuing since the Seattle failure.

However, the developing countries have responded with less enthusiasm. They were the main opponents to the launch of a new round and many felt that they were being pushed into signing an agreement because otherwise the WTO would collapse and damage the world economy. A Jamaican delegate, Dr Bernal, reportedly said,

We are made to feel that we are holding up the rescue of the global economy if we don't agree to a new round here.

The World Development Movement also criticised the move to launch a new round especially with only a three year work programme. It said,

Developing countries have repeatedly said that they cannot undertake a massive new work programme, especially given economic crisis in many of the poorest countries. The huge agenda and lack of capacity means commitments would be made without the necessary research, assessment and public consultation.

The Fourth WTO Ministerial Meeting in Doha clearly outlined the differences between the rich and poor countries of the world and highlighted how an organisation which seek to bring countries together can actually create divisions between many countries over a number of issues. The challenge of the new round of trade talks in the third millennium will be to narrow the gaps between the developed and the less developed countries of the world.

Further information within European Sources Online:

European Sources Online: Topic Guides
	What lies ahead in world trade negotiations?
	The external trade policy of the European Union
	The Common Agricultural Policy of the European Union

European Sources Online: In Focus
	04.12.99:	The Millennium Round, December 1999
	19.05.00:	EU successfully concludes negotiations with China on its accession to the WTO
European Sources Online: European Voice
	08.03.01:	Meeting of trade ministers set to launch next WTO round
	22.03.01:	US says early WTO deal will avoid Seattle battle in Qatar
	12.04.01:	First sign of spring brightens hope for new trade round
	17.05.01:	WTO head: 'It's make or break time' for new liberalisation talks
	01.08.01:	Hopes raised for new trade round
	27.09.01:	Drug industry stands alone in property rights crusade
	04.10.01:	No WTO will result in 'law of the jungle', warns UNICE boss
	11.10.01:	Generic drugs talks stall for poor nations
	25.10.01:	Revolutionary drugs that could mean the difference between life and death
	25.10.01:	Price rules patently unfair to the poor
	25.10.01:	Farming chief rounds on plans to end export refunds programme
	31.10.01:	EU-US linchpins crucial to trade summit outcome
	31.10.01:	Commission backtracks on cheap drugs for poor
	08.11.01:	Hopes for WTO deal much greater than in Seattle, says Commission trade chief
	08.11.01:	Doha delegation rejects special safety measures

European Sources Online: Financial Times
	27.03.01:	Gloom descends on trade round's prospects
	28.03.01:	Japan and EU give push to world trade
	11.04.01:	WTO faces challenging time down on the farm
	17.05.01:	Zoellick promises new trade talks
	15.06.01:	Bush and EU leaders agree to launch new round
	20.06.01:	Battle over pharmaceuticals moves to WTO
	23.06.01:	WTO to refine trips accord
	18.07.01:	EU urges full speed on new trade round
	26.07.01:	Juggling act needed for world trade elephants
	30.07.01:	Decision time
	31.07.01:	WTO head tells nations 'to get real'
	01.08.01:	WTO 'makes progress' on Qatar agenda
	02.08.01:	Vital trade round
	03.09.01:	Progress on bid to launch global trade round
	04.09.01:	Doha and the crisis in global trade
	06.09.01:	China hopeful of WTO entry
	07.09.01:	Cairns group fails to dent Brussels' trade round targets
	18.09.01:	China pushes for domestic approval to join WTO
	19.09.01:	Doha summit must go ahead says Lamy
	27.09.01:	Fischler hits at 'shadow-boxing' on agriculture
	28.09.01:	WTO optimistic over agreement on talks
	01.10.01:	Attacks in US lend new urgency to push for free trade
	04.10.01:	EU warning on agriculture in trade round
	05.10.01:	EU stance threatens new trade round
	08.10.01:	EU insists on environment rules
	08.10.01:	EU greenmail
	09.10.01:	WTO draft dismays EU and Cairns group
	26.10.01:	WTO is urged to act on fish subsidies
	31.10.01:	WTO optimism grows as differences narrow
	01.11.01:	Trade round launch 'not at risk' if Doha cancelled
	06.11.01:	Dealing in Doha
	07.11.01:	Hewitt warns French farmers on trade
	08.11.01:	Poll backs need for world trade round
	09.11.01:	To Doha - and beyond
	09.11.01:	Poor countries raise hurdle at WTO
	10.11.01:	Moore spells out danger of failure at WTO talks
	10.11.01:	Developing nations determined to have their voice heard
	12.11.01:	WTO logjam continues over trade round agenda
	12.11.01:	China and Taiwan join world trade body
	13.11.01:	Deal close on medicines and patents
See also:
	14.11.01:	Trade talks falter as France blocks farm subsidy deal
	14.11.01:	WTO agrees to launch new global trade round
	15.11.01:	WTO agrees to launch trade round
	15.11.01:	A deal in Doha
	15.11.01:	Declaration on patent rules cheers developing nations
	16.11.01:	Activists point to flaws in declaration on drug patents
	16.11.01:	Fischler hails Doha meeting as 'a magnificent success'
	16.11.01:	Zoellick wins praise on trade concessions
	21.11.01:	Broken promises to the poor

Further information can be seen in these external links:
(long-term access cannot be guaranteed)

European Commission

• DG Press and Communication
• Press Releases:

• European Commission: Press Release: IP/01/1540
• European Commission: Press Release: IP/01/1541
• European Commission: Press Release: IP/01/1542
• European Commission: Press Release: IP/01/1584

Memos:

• European Commission: Memo: MEMO/01/363
• European Commission: Memo: MEMO/01/371

Speeches:

• European Commission: Speech: SPEECH/01/512
• European Commission: Speech: SPEECH/01/538
• European Commission: Speech: SPEECH/01/506
• European Commission: Speech: SPEECH/01/511
• European Commission: Speech: SPEECH/01/522
• European Commission: Speech: SPEECH/01/525
• European Commission: Speech: SPEECH/01/526

• DG Trade

• EU, World Trade and the WTO

• DG Agriculture

• Agriculture and the WTO
• WTO 2001

Council of the European Union: General Affairs Council

• 29.10.01General Affairs Council: Extract from Press Release

European Parliament

• Report to the European Parliament on European Community Activities in the WTO 1999

Eurostat:

• The EU figures for the Doha Conference Qatar, 9-13 November 2001

International Organisations

World Trade Organisation

• Homepage
• Summary of 14 November meetings
• WTO Trade Topics
• The Fourth WTO Ministerial Conference

• Ministerial Declaration
• Doha Briefing Notes
• Statements from member countries
• Statements from observer countries and observer organisations

United Nations Environment Programme (UNEP)

• Homepage
• UNEP's preparations for the Fourth WTO Ministerial Conference: Meeting Summaries
• UNEP's preparations for the Fourth WTO Ministerial Conference: Environmental Issues
• 15.11.01: Environmental Issues make Significant Progress at Key Trade Talks
• Synthesis Paper: Economic Reforms, Trade Liberalisation and the Environment: a Synthesis of UNEP Country Projects
• Synthesis Paper: Enhancing Synergies and Mutual Supportiveness of Multilateral Environmental Agreements (MEAs) and the WTO

The Cairns Group:

• Homepage
• 14.11.01: Ministerial Statement at the 4th WTO Ministerial Conference Doha, Qatar
• 09.11.01: 23rd Ministerial Meeting, Doha, Qatar

Non- Governmental Organisations

WTOwatch.org

• Homepage
• News Bulletin
• Fast Facts
  • Qatar Ministerial background
  • World Trade Organisation
  • WTO and Free Trade
  • WTO and Agriculture
  • WTO and Labour
  • WTO and the Environment
  • WTO and Sovereignty

Global Exchange

• Global Economy
• Global Economy: The World Trade Organisation
• 14.11.01: Global Exchange statement on Qatar trade talks
• 14.11.01: Top 10 reasons to opppose the World Trade Organisation
• WTO News Updates

IISDnet (Website of the International Institute for International Affairs)

• Focus on the World Trade Organisation
• IISD's WTO Papers

Friends of the Earth International

• 14.11.01: New WTO Trade Talks threaten environmental protection
• Friends of the Earth International Position Paper for the 4th WTO Ministerial Conference

Friends of the Earth Europe

• 22.09.01: WTO Position Paper for the meeting with EU Trade Commissioner Pascal Lamy
• 07.11.01: WTO Ministerial in Qatar: EU position threatens development, environmental sustainability and democracy
• 30.10.01: Developing countries and civil society groups stunned by WTO draft declaration
• SoS! - World Trade Organisation (WTO) !
• Call for the European Union to withdraw its proposal for a new and comprehensive round of trade negotiations in the World Trade Organisation

World Forum on the WTO, Beirut, 6-8 November 2001

• Homepage
• 08.11.01: Final declaration: No to a Doha Agenda

World Development Movement

• 12.11.01: Doha: It's déjà vu all over again
• 13.11.01 Draft Ministerial Declaration condemned as 'insult to the world's poor'
• 14.11.01: Analysis of the Final Ministerial Declaration of the 4th Ministerial Conference of the WTO in Doha
• 14.11.01: Who forgot to put development in the development round?

UNICE

• UNICE and the New WTO Round Homepage
• UNICE and the WTO
• WTO working groups
• Latest News
• UNICE Speeches on the WTO
• UNICE Press Releases on the WTO
• UNICE Fact sheets on the New WTO Round
• WTO Issues
• UNICE Position Paper: WTO Agricultural Negotiations (July 2001)

News

BBC News Online
	11.11.01:	Taiwan joins China in WTO
	12.11.01:	WTO breakthrough on medicines
	13.11.01:	WTO confirms drugs deal
	15.11.01:	WTO deal gets mixed reaction

Further and subsequent information on the subject of this In Focus can be found by an 'Advanced Search' in European Sources Online by inserting 'World Trade Organisation' in the keyword field.

Helen Bower
Compiled: 23 November 2001

The Fourth Ministerial Conference of the World Trade Organisation (WTO) took place in Doha, Qatar from the 9-13 November 2001.

The five key issues on the agenda concerned agriculture, TRIPs, implementation, the environment, services, investment and competition policy