Lamy hails WTO contract on regional trade agreements

11 Jul '06

3 min read

Director-General Pascal Lamy, on 10 July 2006, welcomed the Negotiating Group on Rules' formal approval of a new WTO transparency mechanism for all regional trade agreements (RTAs).

“This decision will help break the current logjam in the WTO on regional trade agreements. This is an important step towards ensuring that regional trade agreements become building blocks, not stumbling blocks to world trade.

It is important to note as well that this breakthrough comes a critical juncture in our broader Doha round negotiations. Hopefully this decision is a good omen for much needed progress in other areas of the talks, such as agriculture and industrial goods trade, where agreement is urgently needed.”

The new transparency mechanism provides for early announcement of any RTA and notification to the WTO.

Members will consider the notified RTAs on the basis of a factual presentation by the WTO Secretariat.

The Committee on Regional Trade Agreements will conduct the review of RTAs falling under Article XXIV of General Agreement on Tariffs and Trade (GATT) and Article V of the General Agreement on Trade in Services (GATS).

The Committee on Trade and Development will conduct the review of RTAs falling under the Enabling Clause (trade arrangements between developing countries).

The transparency mechanism is to be implemented on a provisional basis. Members are to review, and if necessary modify, the decision, and replaceit by a permanent mechanism adopted as part of the overall results of the Doha Round.

More World Trade Organization News... More Textiles News - Switzerland...