BRIDGES Weekly Trade News Digest - Vol. 3, Number 27 12 July, 1999

[MichaelP <papadop@PEAK.ORG>]

EVENTS & RESOURCES

EVENTS

For a more complete list of events, please refer to ICTSD's web calendar
at http://www.ictsd.org/html/calendar.htm

WTO Meetings

An updated list of forthcoming WTO meetings is posted at
http://www.wto.org/wto/about/meets.htm. Please bear in mind that dates and
times of WTO meetings are often changed, and that the WTO does not always
announce the important informal meetings of different WTO bodies.

19-20 July: COUNCIL FOR TRADE IN SERVICES.
 For information  contact Nuch Nazeer, WTO, (41-22) 739-5393.

Other Events

22-23 July, Paris: CONSULTATION MEETING ON THE ISSUES RELATIVE TO THE
EU/ACP NEGOTIATIONS ON THE RENEWAL OF THE LOME CONVENTION. Organised by
the Senegal Ministry of Economy, Finance and Planning, and by la Coalition
Mondiale pour l'Afrique, Enda-Tiers Monde and Solagral.
 For information contact the Global Coalition for Africa secretariat, tel:
(1-202) 522-3259, fax: 458-4633/4636.

28-29 July, Costa Rica: WORKSHOP ON BIOSAFETY AND ORGANIC AGRICULTURE.
Organised by Fundacisn AMBIO and the Canadian Institute for Law and
Policy- CIELAP.
 For information  contact Fundacisn AMBIO, tel: (506) 253- 5027/8975, fax:
253-4833, email: funambio@sol.racsa.co.cr

29-30 July, University of the Philippines, Diliman, Philippines:
INTERNATIONAL CONFERENCE ON THE IMPACT OF TRADE LIBERALISATION THROUGH THE
WTO AND APEC. Organised by IBON. The conference aims to highlight issues
for advocacy and to pinpoint areas and topics for research. For
information contact Secretariat, IBON Foundation, Inc., 3/F SCC Bldg.,
4427 Int. Old Sta. Mesa, Manila, Philippines, tel: (632) 713-2729, fax:
716-0108, web: http://www.ibon.org

2-3 August, Geneva: WIPO ROUNDTABLE ON INTELLECTUAL PROPERTY AND
INDIGENOUS PEOPLES. To facilitate an exchange of views among policymakers
and indigenous people concerning more effective application and possible
improvements of the intellectual property system to protect traditional
knowledge.
 For information  contact the World Intellectual Property Organization,
34, chemin des Colombettes, PO Box 18, CH-1211 Geneva 20, tel: (41-22)
338-9111, fax: (41-22) 733- 5428, web: http://www.wipo.int

8-9 November, London: CORPORATE CITIZENSHIP: LINKING CSR BUSINESS
STRATEGIES AND THE EMERGING INTERNATIONAL AGENDA. Organised by the Royal
Institute of International Affairs. The two-day conference will provide an
opportunity to consider the links between business, NGO, national
government and intergovernmental agendas on corporate citizenship.
Conference fee: #1,051.63.
 For information  contact Georgina Wright, The Royal Institute of
International Affairs, Chatham House, 10 St. James' Square, London SWIY
4LE, UK, tel: (44-171) 957- 5700, fax: 321-2045, email: gwright@riia.org

RESOURCES

ENVIRONMENTAL RESPONSIBILITY IN WORLD TRADE. Conference Publication. A
compilation of presentations and conference discussions from the September
1998 conference of the same name. Published by the British Council in
collaboration with the World Conservation Monitoring Centre and the
International Institute for Environment and Development.
 To obtain a copy contact the British Council, 10 Spring Gardens, London
SW1A 2BN, tel: (44-161) 957-7755, fax: 957-7762, email:
general.enquiries@britcoun.org, web: http://www.britishcouncil.org

COLORADO JOURNAL OF INTERNATIONAL ENVIRONMENTAL LAW AND POLICY (University
of Colorado School of Law), Summer 1999. Inter alia, this issue contains
the following articles: Environmental Law in a Transnational World
(Caldwell); The Kyoto Protocol on Climate Change and the Challenges to its
Implementation: a commentary (Nanda); Free Trade and Sea Turtles: the
International and Domestic Implications of the Shrimp-Turtles case
(Sakmar); and Legally Binding Prior Informed Consent (Ross).

INTERNATIONAL AND NATIONAL "ORGANIC" STANDARDS IN THE EU. 1998. By Lizzie
Melby Jespersen. Presents text and results of a detailed questionnaire on
international, national and private systems of organic standards in the
European Union. Covers standards for farm conversion, crops and animal
products. 182 pp. Free.
 To obtain a copy contact Jesper Lund-Larsen, General Workers Union,
Kampmannsgade 4, Box 391, DK 1790, Copenhagen, Denmark, tel: (45-33)
97-2406, fax: 97-2402; email: miljoe@sid.dk

 POSITION VACANCY

The Marine Stewardship Council, an independent accreditation and advocacy
organisation for sustainable fisheries that is based in London, England,
is seeking a Director and Deputy Director for its U.S. office, which will
be located in Seattle, Washington. Both positions require experience in
fisheries, an interest in promoting sustainable fishery management in the
Western Hemisphere, and the ability to work closely with the fishing and
retail industries, with environmental, scientific and consumer interests,
with corporate and charitable funding institutions, and some knowledge of
certification and accreditation. Positions close on August 20.
 For more information, please contact the MSC website at www.msc.org.
 To apply, send a resume electronically to Tracy King, or to the Marine
Stewardship Council at 119 Altenburg Gardens, London SW11 IJQ, United
Kingdom.






         Table of Contents                           

- EU Calls For Greater WTO-Labour Co-operation in WTO; India Lashes Out
Against New Round
- Council on TRIPs Addresses Substance of Plant Patenting (27.3(b)) Review
- WTO Accession Update: China, Japan Reach Agreement
- EU And NGOs Meet To Discuss Lome Transparency; Pacific Islands Consider
Post-Lome Arrangements
- Australia, New Zealand Cry Fowl Over U.S. Lamb Decision
- ICC, UN Discourage Trade And Labour, Environment Linkage
- Caricom Leaders Meet; Ecuador Seeks Banana Compensation From EU
- SPS Commmittee Discusses Dioxin, Adopts Report on Monitoring Use of
International Standards
- In Brief
- WTO In Brief
- On the Move
- Events & Resources



EU CALLS FOR GREATER WTO-LABOUR CO-OPERATION IN WTO; INDIA LASHES OUT
AGAINST NEW ROUND

Despite their inability to agree on a new Director-General, WTO Members
are continuing preparations for the Third WTO Ministerial meeting, to be
held 30 November-3 December in Seattle. The end of July had been set as a
date for the end of the "second phase" of Ministerial preparations, and
meeting on 6 - 7 July in Special Session of the General Council (SS-GC),
WTO Members indicated their awareness that time is running out: they fixed
five SS-GC meetings between now and the end of the month! The WTO
Secretariat already has over 70 proposals for the Ministerial Declaration,
and expects more to come in, probably until beyond the end-July cut-off
date.

At the meeting on 7 July, Japan said that while it still favours a
comprehensive approach to negotiations, it would be willing to consider a
so-called "early harvest" approach to the next round of trade talks. The
EU and Japan had to date been the strongest proponents of a
"comprehensive" approach to negotiations - meaning all sectors would be
negotiated as a package, allowing Members to gain concessions in one
sector by making concessions in another. The U.S. argues that a
comprehensive approach can take too long and wants to take a sector-by-
sector approach wherein negotiations would be completed on each issue
separately, rather than waiting for agreement on all issues as a package.

Meanwhile, Japan and Australia last week agreed to work together in the
next trade round to defend their interests against growing U.S.
protectionism in light of recent U.S. actions against lamb and steel (see
related story in this issue). The two sides agreed to work within the Asia
Pacific Economic Co-operation (APEC) forum to build momentum for a new
trade round.

Outgoing EU Trade Commissioner Sir Leon Brittan last week said the EU
would push for increased co-operation between the International Labour
Organisation (ILO) and the WTO, including giving the ILO observer status
at the WTO, and convening a high-level meeting on trade, globalisation and
labour issues. Sir Leon said the EU would stop short of calling for trade
and labour linkage, acknowledging that no consensus on such linkage could
be reached amid strong opposition from developing countries. The fact that
the EC has published its "Approach to the Millennium Round" is a
significant development. The document is available via the EC's DG-1
website, at http://europa.eu.int/comm/dg01/dg1_t.htm

Sir Leon also acknowledged that the EU would have to make further
concessions on agricultural trade in WTO talks on agriculture. This is no
surprise to a large number of WTO Members that have long warned the EU
that its protectionist farm policies would not stand after the next round.

India's Commerce Minister P. P. Prabhu last week said that India was
misled into signing the Uruguay Round Agreements and it would not be
easily swayed into undertaking a new round. Mr. Prabhu said the
development aspects of the Uruguay Round were "jettisoned even before the
ink was dry on the Marrakech agreement [establishing WTO trade and
development provisions]." Mr. Prabhu said attempts to rename the so-
called Millennium Round of trade talks as the "Development Round" was not
enough to lure India to the negotiating table.

In the WTO itself a possibly interesting development on the issue of
implementation of existing WTO Agreements is the fact that Pakistan seem
to be moving away from complete insistence on discussions of
implementation as a precondition to discussion in a possible new round of
any new issues. Instead, Pakistan indicated last week that implementation
should be put on a separate track and discussed separately from the other
issues on the table. It may also be worth noting that most proposals
received by the Secretariat on the issue of implementation concern
specific imbalances in the Agreements, rather than actual implementation
itself.

  "Envoys draft plans for new talks on freer trade," REUTERS, 7 July 1999;
 "  Japan, Australia agree to seek comprehensive WTO round," KYODO NEWS
INTERNATIONAL, 6 July 1999;
 "  Brittan says EU will have to give on farm trade," REUTERS, 8 July
1999;
 "  EU calls for WTO role on labour standards," KYODO NEWS INTERNATIONAL,
9 July 1999;
 "  EU to push for investment, competition rules at WTO," DOW JONES
NEWSWIRE, 8 July 1999; "Signing WTO pact was a mistake, says Prabhu,"
DECCAN HERALD, 6 July 1999;
 "  Govt says it erred by signing the WTO agreement," ECONOMIC TIMES
(India), 6 July 1999; ICTSD Internal Files.






COUNCIL ON TRIPS ADDRESSES SUBSTANCE OF PLANT PATENTING (27.3(B)) REVIEW

During its meeting on 7-8 July, the TRIPs Council discussed geographical
indications, the rum-trademarks law, Article 27.3(b), non-violation
complaints and electronic commerce.

For the first time, Members addressed substance in their discussion of
Article 27.3(b) of the TRIPs Agreement (which relates to plant varieties
inventions). Members had before them an informal Secretariat paper,
 compiling replies to a questionnaire circulated late last year, on how
countries are applying Article 27.3(b). Developed countries (led by the
U.S. and EU) said the Secretariat document shows a convergence in the way
countries are handling 27.3(b) - either through patents or sui generis law
based on UPOV 1991 and UPOV 1978.

India, supported by a number of other developing countries, expressed
their concern about possible conflict between the commercial orientation
of the TRIPs Agreement and non-commercial traditional knowledge or
indigenous rights, and between the TRIPs Agreement and the Biodiversity
Convention. Australia and Canada described themselves as countries
underdeveloped in biotechnology who nevertheless believe that strong
intellectual property protection is needed to help them develop the
technology. Australia and other developed countries rejected the view that
there is a conflict between TRIPs and the Biodiversity Convention.

Regarding non-violation complaints, a group of Central European countries
speaking through Hungary last week developed the argument in favour of
continuing with the moratorium. (See also BRIDGES Between Trade and
Sustainable Development, Year 3, No. 3, p. 7, on the web at:
www.ictsd.org/English/BRIDGES3-3.pdf). They rejected the view that the
TRIPs Agreement is comparable with GATT or GATS, because TRIPs sets
minimum standards of protection whereas the other two agreements deal with
commitments to provide access to import markets. They rejected the view
that allowing non-violation disputes would increase predictability in
trade because the concept of "expected benefits" is much more difficult to
define in intellectual property issue. They called for an extension of the
moratorium, at least in order to allow time to clarify whether or not
non-violation TRIPS cases could benefit the system.

Almost all speakers, including Canada (which submitted the first paper on
this topic several meetings previously) supported the Central Europeans.
The EU supported the call for more time to study the issue. Several said
that non-violation TRIPs cases could not be allowed until there is
consensus on the "scope and modalities" of how these cases would be
treated.

The US took the opposite view, saying non-violation is important for
increasing predictability in all WTO areas. If there is no consensus on
"scope and modalities", the moratorium will still cease at the end of this
year, and the Dispute Settlement Body would have to sort out these issues
if a case is brought, the US said.

Cuba complained about the U.S.' "Section 211" law, (which is now the
subject of a WTO dispute - see related WTO In Brief, this issue). Cuba
repeated its complaint that the law is unilateral action that violates the
TRIPS Agreement, and that the U.S. has failed to reply to questions asking
why the U.S. thinks the law does comply. Cuba said it is considering
seriously what other action it could take. The EU agreed, mentioning the
request for consultations that was receieved by the WTO the next day (8
July). The U.S. said it is not required under the TRIPS Agreement to
explain why its law complies with TRIPS, simply to supply information on
laws and juridical interpretation. It also said it is always happy to
consult with the EU.

The TRIPs Council also discussed a proposed multilateral system for
registering and notifying geographical indications; and e-commerce. On the
latter, the Secretariat supplied a draft report of its discussions to the
General Council. There was some discussion about whether statements made
in the debates were consensus views or not. For instance, developed
countries said that intellectual property protection encouraged electronic
commerce, while India and other developing countries said they lack the
experience to draw that conclusion. A new draft report, reflecting the
both points of view, will be circulated for comment and revision before it
is sent to the General Council later this month.

The next and final TRIPs Council meeting of the year will be in October.

ICTSD Internal Files.






WTO ACCESSION UPDATE: CHINA, JAPAN REACH AGREEMENT

China and Japan on last week reached a bilateral agreement on China's
entry to the WTO. The deal is the first China has reached with any of the
so-called "Quad" of major trade powers (Japan, U.S., EU and Canada), and
provoked cautious optimism that China's WTO bid may regain some momentum.
Chinese officials said however that it was unlikely to resume trade talks
with either the U.S. or EU right away.

According to one Japanese trade official, terms of the China-Japan deal
were weaker than those floated by China last April in its bid to secure an
accession deal with the U.S. The U.S. refused China's offer at that time
for domestic political reasons, and has since demanded more concessions in
the telecomm and agriculture sectors. (See BRIDGES Weekly Trade News
Digest Vol. 3, No. 13-14, 12 April 1999.) According to one trade analyst,
"Washington's floor is now China's ceiling."

Meanwhile, Georgia said last month that it hopes to be admitted to the WTO
by September. Georgian trade officials said tax and customs rules have
already been amended to comply with international trade rules.

 "China WTO deal sealed, US waits," INSIDE CHINA TODAY, "WTO: China and
Japan reach deal," FINACIAL TIMES, 8 July 1999;
 "  Uneasy together," FAR EASTERN ECONOMIC REVIEW, 22 June 1999;
 "  Chine-Japon: oublier le passe," LE FIGARO, 9 July 1999;
 "  China, Japan ministers to meet on WTO accession, AGENCE FRANCE-PRESSE,
8 July 1999;
 "  China says it still wants WTO membership," INSIDE CHINA TODAY, 22 June
1999;
 "  Georgia seeks WTO admission in September," REUTERS, 15 June 1999.






EU AND NGOS MEET TO DISCUSS LOME TRANSPARENCY; PACIFIC ISLANDS CONSIDER
POST-LOME ARRANGEMENTS

Non-governmental organisations (NGOs), media and EU officials were to meet
in Brussels from 8-10 July for a forum on "Civil Society and Political
Partnership in Lome V," an event organised by Inter Press Service (IPS) in
co-operation with the EU. The forum was to focus on ways to "provide a
timely flow of information and analysis on the [Lome V] negotiations and
their outcome," with prompt dissemination to civil society, private sector
parties, negotiators, international organisations and mass media.

Lome V is the successor trade and aid agreement to the current Lome IV
Convention between the EU and 71 African, Caribbean and Pacific (ACP)
nations. Lome IV is set to expire in February 2000- negotiations for Lome
V began in September 1998.

A number of civil society organisations have pressed EU and ACP officials
for greater involvement in Lome negotiations than has been extended to
them thus far. Despite earlier EU overtures espousing the need for their
presence, European NGOs complain that they have been rebuffed by EU
officials over transparency/civil society participation in Lome. When
pressed on the issue of civil society participation in Lome talks in June,
EU officials said, "a formal and institutionalised approach towards civil
society participation might not prove productive." Further, observers note
that ACP countries are unlikely to support formal civil society
participation, viewing such a process as a loss of power and in some cases
a threat to national sovereignty.

In other news, eight Pacific states in the ACP grouping (Fiji, Kiribati,
Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu), met
last month for a "Workshop on Post Lome Trade Arrangements." Ministers
considered implications of establishing, as proposed by the EU, Regional
Economic Partnership Agreement (REPAs) with each of the ACP regions.
Related issues to be discussed included the wider implications of REPA,
particularly with respect to the region's other trade and aid partners;
whether the region would be required to extend REPA concessions to other
trade partners.

 "NGOs debate future of ACP-EU agreement," IPS, 7 July 1999;
 "  Workshop on Post Lome Trade Arrangements," PACIFIC ISLANDS REPORT, 2
June 1999.






AUSTRALIA, NEW ZEALAND CRY FOWL OVER U.S. LAMB DECISION

The U.S. last week announced it would impose tariff and quota restraints
on imports of New Zealand and Australian lamb for three years. The Clinton
Administration said the action is necessary to protect the U.S. domestic
lamb industry by blocking growth of lamb imports to the U.S. (See BRIDGES
Weekly Trade News Digest Vol. 3, No. 6, 15 February 1999.) The U.S. will
put in place from 22 July a tariff rate quota with imports set at 1998
levels, with approximate volume increases of three percent over initial
levels in the second and third years. The U.S. will levy a 9 percent
tariff on all imports in the first year, decreasing to six and three
percent respectively in the second and third years.

Australia and New Zealand used terms such as appalling, hypocritical and
irrational in criticising the U.S. decision - and warned they would take
the case to the WTO. Australia and New Zealand account for at least 95
percent of all U.S. lamb imports.

The U.S. decision comes just months before WTO Members are set to launch
global trade talks on agriculture - a sector in which the U.S. has
partnered with Australia and New Zealand in calling for increased
liberalisation.
 "  This decision will damage the prospects of an early and successful WTO
trade round. This is a protectionist decision which sends precisely the
wrong signal in the lead-up to the Seattle [WTO] Ministerial," Australian
Prime Minister John Howard said.

Meanwhile, the U.S. last week agreed to suspend its anti-dumping
investigation against Brazilian steel imports after Brazil agreed to cut
shipments of hot-rolled steel to the U.S. U.S steel imports from Japan and
Russia also face anti-dumping investigations. U.S. officials defended
these investigations, arguing that domestic support for free trade must be
bolstered by mechanisms protecting domestic industries from unfair
competition.

 "PM flies into lamb war," THE AUSTRALIAN, 9 July 1999;
 "  Clinton Protects Lamb Producers; Australia, New Zealand Face Tariffs,"
DAILY REPORT FOR EXECUTIVES, 8 July 1999;
 "  U.S. lamb plan could harm next trade round-experts," REUTERS, 8 July
1999;
 "  No rational foundation for lamb decision: Howard," AUSTRALIAN
ASSOCIATED PRESS, 8 July 1999.
 "  U.S., Brazil reach deal to curb Brazilian steel shipments," ASSOCIATED
PRESS, 7 July 1999;
 "  Japan's Nippon Steel Corp. regrets U.S. dumping decision," DOW JONES
NEWSWIRE, 8 July 1999.






ICC, UN DISCOURAGE TRADE AND LABOUR, ENVIRONMENT LINKAGE

The International Chamber of Commerce (ICC) and UN Secretary-General Kofi
Annan on 5 July issued a joint statement stressing that labour and
environmental issues be left out of a proposed new round of global trade
talks. Meeting in Paris to discuss the so-called Global Compact between
the UN and the private sector to promote human rights, improve labour
conditions and protect the environment - an initiative launched by Mr.
Annan earlier this year, the ICC and the UN Secretary General said the WTO
is not equipped to deal with labour and environmental issues.

"There was agreement that a renewed commitment to open markets and the
effective treatment of labour issues, human rights questions and the
protection of the environment are mutually reinforcing and should go hand
in hand," according to the joint statement.
 "  However, the rules- based multilateral trading system was not designed
to address these non- trade issues. To call on it to do so would expose
the trading system to great strain and the risk of increased protectionism
while failing to produce the desired results." Instead, the two sides
urged "that companies can best promote human rights and improved labour
and environmental standards by the way they conduct their own businesses
and by the spread of good corporate practices."

The U.S. has said it would press for including labour and environment
standards in WTO negotiations. ICC Vice President Richard McCormick said
that the ICC would urge the U.S. to pursue labour and environment issues
through side agreements modelled after those concluded as part of the
North American Free Trade Agreement (NAFTA).

In related news, the ICC on 28 June called for a new broad-based trade
round at the WTO, including talks on services, agriculture and investment.

 "UN Chief, International Chamber oppose linking labour, environment in
WTO system," INTERNATIONAL TRADE REPORTER, 7 July 1999;
 "  World business priorities for a new round of multilateral trade
negotiations," ICC PRESS RELEASE, 21 June 1999;
 "  L'ONU salue le monde des affairs," LE FIGARO, 6 June 1999; 
 "  Joint statement on the global compact proposed by the
Secretary-General of the United Nations," ICC PRESS RELEASE, 5 July 1999.






CARICOM LEADERS MEET; ECUADOR SEEKS BANANA COMPENSATION FROM EU

Leaders from 15 Caribbean countries met 4-7 July  for the Twentieth
Meeting of the Conference of Heads of Government of the Caribbean
Community (Caricom).

Caricom leaders approved a plan to establish a regional Court of Justice
to replace the current Privy Council - the current court of final appeal
for former Caribbean colonies of Britain. Caricom officials said the Court
of Justice would deal with wider issues than the Privy Council, such as
the settlement of trade disputes among Caricom members. Caricom leaders
also approved the membership of Haiti in the regional grouping.

Jamaica's Prime Minister Percival Patterson said also that that Caricom's
approach to upcoming WTO discussions and the renegotiations of the EU-ACP
Lome Agreement would take on a more aggressive posture starting with a
meeting of regional and international experts in Jamaica next month.

Leaders discussed but made little progress toward the establishment of a
Caricom Single Market and Economy (CSME), including a proposal to adopt a
common trade tariff for CARICOM members. The Bahamas voiced strong
opposition to an aspect of CSME relating to free movement of skills and a
common currency.

Also at the meeting, Caricom officials announced they would meet with
Ecuador later this month in Dominica to discuss a common banana export
strategy for the EU market. The two sides are traditional rivals on the EU
banana market: Caricom members benefit from an EU banana import regime
preferential to Caricom exports, which the WTO ruled violates
international trade rules by discriminating against all other producers -
including Ecuador. (See BRIDGES Weekly Trade News Digest, Vol. 3,
No.13-14, 12 April 1999.) Caricom officials said that both Caricom and
Ecuador rely on the European market for their banana exports, and both
sides want Europe to maintain current EU banana import quotas.

Separately, Ecuador last week put forward a request for compensation for
lost trade from the EU for its discriminatory banana import regime.
Ecuador is seeking US$200 million annual for lost sales, although it was
unclear as to what time period Ecuador would seek compensation for.
Ecuador said it would not seek retaliatory sanctions at this time.

 "Caribbean leaders open regional summit," AGENCE FRANCE-PRESSE, 4 July
1999;
 "  Politics-Caribbean: reality checks and new resolve as summit closes,"
IPS, 7 July 1999;
 "  Bahamas has doubts on free movement, single currency," THE HERALD (St
Vincent-Grenadines), 9 July 1999;
 "  Caricom and Ecuador to co-ordinate banana export strategies," AGENCE
FRANCE-PRESSE, 7 July 1999;
 "  Ecuador asks EU for compensation in banana issue," WALL STREET
JOURNAL, 6 July 1999.






SPS COMMMITTEE DISCUSSES DIOXIN, ADOPTS REPORT ON MONITORING USE OF
INTERNATIONAL STANDARDS

The WTO's Committee on Sanitary and Phytosanitary (SPS) Measures met on
6-8 July, under the guidance of its new Chairperson, Attie Swart of South
Africa. The SPS Committee considered a range of issues, including the
dioxin situation (following the Belgian chicken contamination scare last
month), observer status, and SPS and developing countries. The Committee
also adopted a report on monitoring of use of international standards.

The question of the difficulty for developing countries in implementing
the SPS agreement is an ongoing issue that has been on the SPS Committee's
agenda for its last few meetings. No conclusion was reached on this issue,
nor is one expected in the near future, although India is expected shortly
to submit a proposal that a database of sanitary measures be set up. SPS
Committee discussions and possible conclusions in this area are linked to
discussions taking place in the General Council's Special Session for
Ministerial Preparations.

The SPS Committee last week approved a report on monitoring use of
international standards, which covers references to situations with which
different Members have been confronted and for which they have found no
adequate or applicable international standard, such as the definition of
"quarantine pest", the frequency of controls to be carried out on bulls in
collection centres, or certification requirements for origin of animals.

In the context of transparency, the US asked why the EU had failed to
notify its ban on antibiotics in feed. The EU said this was a domestic
issue that did not involve a restriction on imports - only on the content
of antibiotics in feed. It agreed, however, that countries should share
information on issues such as this in order to decide how it should be
handled. The Committee is still grappling with how to deal with the SPS
Agreement's requirement that countries be consistent (i.e. not
over-protective for selected sectors) in dealing with safety and risk
issues. One of the questions discussed is whether the Chair's report
should include discussion on measures as well as principles.

The SPS Committee last week also discussed specific situations and
notifications. Brazil expressed displeasure about EU measures affecting
its gelatine exports (related to mad cow disease, BSE) and Argentina
mentioned its problems with Mexico and Korea's import restrictions on
Argentine beef (related to foot and mouth disease). Progress was reported
in discussions between Thailand and the Czech Republic on a Czech ban on
imports of Thai poultry meat.  The Committee received several
notifications from countries who had imposed emergency restrictions on
imports from Belgium and neighbouring countries (and notified the SPS
committee) following the recent dioxin contamination. Switzerland in
particular expressed concern about notifications from Malaysia and
Singapore banning meat and egg products from the whole of Europe,
including non-EU countries.

Requests from a number of international organisations for observer status
remain unresolved. The Committee has agreed on criteria for accepting new
observers but only case by case and meeting by meeting.

The SPS Committee will meet again in November.



ICTSD Internal Files.






IN BRIEF

Ministers from the 16-member South Pacific Forum have endorsed, in
principle, a Free Trade Area (FTA) between Forum Island Countries (FIC),
expected to launch in 2001. Forum countries also agreed to establish a
working group (to be based in Geneva) to develop common positions for a
possible new round of trade negotiations.
 "  Free trade area endorsed in principle by the South Pacific Forum,"
PACIFIC ISLANDS REPORT, 2 June 1999.

Brazil last week reached a two-year bilateral trade agreement with the
Andean Community of Nations (comprised of Colombia, Venezuela, Peru,
Ecuador and Bolivia). The agreement extends preferential tariff treatment
on 3,000 items from 16 August.

 "  Andean Community, Brazil sign tariff agreement," AGENCE FRANCE-PRESSE,
4 July 1999.

Vietnam and Switzerland last week signed a bilateral accord on
intellectual property rights (IPR). As part of the agreement, Switzerland
will fund a co-operation program toward strengthening Vietnam's IPR
legislative and regulatory framework.

 "  Vietnam and Switzerland sign intellectual property rights accord,"
AGENCE FRANCE PRESSE, 8 July 1999.

Australia last month requested that OECD members allow the release of
confidential documents related to negotiations on the Multilateral
Agreement on Investment (MAI). Australia was responding to a Freedom of
Information (FOI) requests for confidential MAI documents relating to
discussion of issues of environment protection, made by the Australian
Conservation Foundation, an Australian environmental organisation.

"Request for de-restriction of confidential OECD documents on investment,"
COMMONWEALTH TREASURY OF AUSTRALIA, 18 June 1999.

The Philippines last month announced it would create a dedicated office
for WTO affairs to deal more effectively with its WTO liberalisation
commitments. The announcement came in response to a critical WTO review of
the Philippine's trade policies.

 "  Philippines Creates WTO Office," WTO WEEKLY HIGHLIGHTS (White & Case,
LLP), 21-28 June 1999.

Association of Southeast Asian Nations (ASEAN) energy ministers met 3 July
and discussed inter alia the importance of strengthening collaboration in
the energy sector to support sustainable growth and regional economic
integration in ASEAN; and the effects of globalisation and liberalisation
on regional energy security. The need to focus on environmental concerns
such as climate change was also underlined, particularly as a way to
facilitate development of renewable energy

"Joint press statement: The Seventeenth ASEAN Ministers on Energy
meeting," 3 July 1999.

Fiji, Tonga, Vanuatu, the Federated States of Micronesia and The U.S. last
month agreed on measures to promote safe trade between the Pacific Islands
region and the U.S. The Pacific Island countries will also develop
mechanisms to facilitate information sharing on pests and on movement of
commodities between the island groups.

 "  Pacific Island nations move to promote safe trade with U.S.," PACIFIC
ISLANDS REPORT, 30 June 1999.






WTO IN BRIEF

Canada last week said it would seek WTO permission to impose retaliatory
tariffs on Australian products in retaliation for Australia's failure to
comply by 6 July with a 1998 WTO ruling against Australia's ban on the
importation of untreated fresh, chilled or frozen salmon (see BRIDGES
Weekly Trade News Digest Vol. 2, No. 42, 2 November 1998).

"International: import ban," FINANCIAL TIMES, 7 July 1999.

On 8 July, the EU requested WTO consultations with the U.S. over a U.S.
law that prevents the U.S. government and courts from recognising any
trademark or name used in connection with property confiscated by
governments unless the original owner has expressly consented. The EU
argues the law violates WTO rules on intellectual property and national
treatment.

 "  EU files for WTO consultations on U.S. Sec. 211 trademark law," INSIDE
US TRADE, 9 July 1999.

The EU, U.S. and Japan from 1 July implemented a WTO commitment to
eliminate tariffs on 642 pharmaceutical and chemical products, including
drugs used for breast cancer, AIDS and diabetes.

 "  U.S., 21 other nations end tariffs on 642 Pharmaceuticals," DOW JONES
NEWSWIRE, 2 July 1999.






ON THE MOVE

Ms. Janet Hall, Counsellor for the U.S. Trade Representative (USTR), has
been designated as the USTR NGO Outreach person for issues related to the
WTO Ministerial Conference to be held in Seattle. She will serve as the
USTR point person on NGO activities and will be part of the US Government
interagency task force working on NGO issues in the context of the
Ministerial Conference. Ms. Hall has many years of experience in the
public and private sectors, and has worked frequently with NGOs. She can
be contacted at JHall@USTR.gov





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