EUROPEAN COMMISSION'S AGENDA FOR A MILLENNIUM ROUND TO RESUME MAI-TYPE NEGOTIATIONS THROUGH THE WTO.

8 July, 1999

From: Olivier Hoedeman <paxaran@antenna.nl>

Forwarded: press release by DGI of the European Commission. The EC has today launched its final proposal for what should be the EU's position on a WTO Millennium Round (available on the DG1 website). This proposal will now be discussed by the EU governments, who will take a final decision, probably in mid-October. On 19th of July the first discussions on the proposal will take place when the EU's foreign affairs ministers meet in Brussels.

The fact that there is now for the first time a formal proposal brings us into a crucial stage of the campaign against the proposed WTO Millennium Round. The proposal includes all the new issues that have been mentioned over the last months, such as expanding the WTO's powers to investment, public procurement and competition policy.

yours sincerely,
Olivier Hoedeman


Here's the Commission's version of what the proposal is about:


Brussels, 8 July 1999

COMMISSION SETS OUT MILLENNIUM ROUND PRIORITIES

The full text of the Communication which sets out the European Commission's proposals for the New Round of multilateral trade negotiations has been released today and can be found on our Website at:
http://europa.eu.int/comm/dg01/dg1newround.htm The EU Approach to the New Round in pdf format. The press release below explains the background:

The European Commission today set out its proposals for the agenda of the Millennium Round of global trade talks to be launched this November in Seattle.  The Communication – which was requested by the Council of Ministers last month – lays out both the case for a comprehensive round and proposed European Union (EU) priorities. 

A comprehensive round is the best mechanism for breaking down the remaining barriers to trade. It will improve the European economy, foster economic growth worldwide, and ensure the successful management of globalisation.  The Communication stresses the need to achieve greater market access by reducing tariffs and non-tariff barriers and improving market access in the services sector. It also emphasises the importance of developing new rules governing trade and investment, trade and competition, and rules aimed at facilitating trade. 

Negotiations in all these areas should take full account of the needs of developing countries and the objective of sustainable development.  The Communication will now be sent to Member States and the European Parliament.

Sir Leon Brittan, Vice President of the Commission, said:
“Europe was the first to champion a Millennium Round back in March 1996 – and we have progressively persuaded more and more of our trading partners to follow our lead – often in the face of reluctance and procrastination.”

“Comprehensive global trade talks offer opportunities which the narrow sectoral approach never can.  A new round offers benefits not only to Europe, but to all members of the World Trade Organisation. Better trade rules and more market access are good for business, good for growth, and good for jobs.”

“Our approach aims at cutting tariffs across the board, and taking special account of the interests of the developing countries.

"There can be no justification for developed countries maintaining high tariff peaks in sectors such as textiles.  This has gone on too long and must be a major target in the New Round.”

The Communication argues that a comprehensive Round offers the best way to take account of the trade interests of all WTO Members. It sets out an ambitious agenda for the Millennium Round - which should among other things include further liberalisation and rule-making in the fields of agriculture and services, non-agricultural tariffs, investment, competition, trade facilitation, and trade and environment.

The Commission proposes a fourfold agenda.  First, to secure further trade liberalisation and market access, creating better conditions for competitiveness. Second, to promote the further strengthening of the WTO system so that it becomes a truly universal instrument for the management of global trade. Third, to take into account the continued need for special and differential treatment for developing countries in order to promote their development. Fourth, to ensure that the WTO continues to address issues of concern to the broader public, such as environment, health and social concerns.

The Communication argues that the new round should provide benefits for developing countries, particularly the least developed countries. The WTO must ensure that future trade liberalisation and rule making cater for the interests and concerns of developing countries. In particular, the EU has proposed that all developed countries implement, no later than the end of the Round, duty free access for essentially all products from the least developed countries. The Communication also pushes for improved and more effective technical assistance and increased capacity building, including closer co-operation between the WTO, the IMF and the
World Bank.

On the environment, the Communication argues that a central benchmark of the new round should be the WTO's overall objective of sustainable development. Trade and environment policies should play a mutually supportive role in favour of sustainable development.

The Communication sets out a number of specific issues to be addressed in the negotiations to clarify the relationship between trade rules and environmental measures and to improve their interface.  The Communication also stresses how important it is to work with civil society – and the importance in the new round of explaining to the public the benefits of the multilateral system.

The Communication suggests further steps that could be taken to improve WTO transparency.

The Communication calls for the establishment of a multilateral framework of rules governing international investment, with the objective of securing a stable and predictable climate for investment worldwide, while avoiding the mistakes that led to the failure of the investment negotiations in the OECD (MAI).

The Communication also calls for the development of a framework of rules on trade and competition.  The need for such a multilateral framework has also increased as a result of the globalisation of business activities which means that a framework of common rules and principles would reduce unnecessary costs for business arising from the application of different competition laws to the same international transactions.

The EU has been at the forefront of efforts to launch a comprehensive Millennium Round of trade talks. Sir Leon Brittan first called for this in 1996, and EU Member States have unanimously supported it. Over the period 1995-97, the volume of global trade has increased by almost 8% annually, far outpacing the growth in world GDP."

European Commission, DG I Information Unit
Email:
eis@dg1.cec.be
WWW:
http://europa.eu.int/comm/dg01
Fax:   +32-2-296-9854

[ends]

Click your Back button, or

European Commission MAI Index Brian Jenkins HOME