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Unit 24 : Multilateralism and WTO

These are generally termed as Singapore issues. The subject of trade facilitation was to be studied in Notes
the Council for Trade in Goods.
Conclusion of Information Technology Agreement was an important decision made during the
Singapore Ministerial Conference based on the proposal brought by developed countries to have an
agreement on zero duty on import of information technology goods.
Geneva Ministerial Conference

The second MC, held at Geneva (Switzerland) during 18–20 May 1998, discussed implementational
concerns of developing and least developing countries that led to establishment of a mechanism for
evaluation of implementation of individual agreements.
The US-sponsored proposals for zero duty on electronic commerce were discussed and an agreement
was reached to maintain status-quo on the market access conditions for electronic commerce for 18
months. The agreement on status-quo actually meant that there would be zero duty on e-commerce
since no country had been imposing duty on this mode of trade. A declaration on global electronic
commerce was also adopted.
Electronic commerce was defined as the mode of commerce in which all operations of trade would be
conducted through the electronic medium; these operations include placing the order, supplying the
product, and making the payment. They also include sale and transfer of goods through electronic
medium, such as music and cinematographic products, architectural and machine drawings and
designs, etc. However, the sale in which goods are physically transferred to the buyer would not be
considered e-commerce.
Seattle Ministerial Conference
The third MC, held in Seattle (US) from 30 November to 3 December 1999, witnessed dramatic changes
in negotiations as the developing countries made intense preparations for the conference unlike in
the previous MCs wherein issues brought in by the developed countries were chiefly discussed. In
Seattle too developed countries tried to push forward new issues, such as investment, competition
policy, government procurement, trade facilitation, and labour standards. However, developing
countries insisted upon priority attention to their proposals as these were related to the working of
the current agreement, before any new issue could be considered. No agreement on the issues could
be arrived at, leading to a total collapse of the MC with a lot of confusion and without any decision.
Doha Ministerial Conference

The fourth MC held during 9–14 November 2001, at Doha in Qatar further built up the divide between
the developed and the developing countries in the WTO. On the one hand, developed countries were
keen on formally pushing forward a new round of multilateral trade negotiations, which would
include the issues of investment, competition policy, transparency in government procurement, and
trade facilitation. On the other hand, there was stiff resistance from developing countries to initiating
a new round as they felt that they were still in the process of comprehending the implications of the
last round, i.e., the Uruguay Round, of multilateral trade negotiations.
Finally a comprehensive work programme was adopted at the end of Doha MC. Although formally
it was not called a new round of negotiations, the work programme had all the attributes of a fresh
round of multilateral trade negotiations. Members decided to work out modalities for negotiations
on the Singapore issues and then start negotiations on the basis of the modality to be agreed by
explicit consensus. It was also agreed upon to make Special and Differential (S&D) treatment for
developing countries more precise, effective, and operational.
The main commitments of the Doha Declaration were.
• To continue the commitment for establishing a fair and market-oriented trading system through
fundamental reform of support and protection of agricultural markets, specifically through
— Substantial improvements in market access
— Reductions of all forms of export subsidies, with a view of phasing them out
— Substantial reductions in trade distorting domestic support

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