The International Practice of the European Communities: Current Survey A. New Generation Trade Issues B. Singapore Ministerial Meeting C. Information Technology Agreement D. Technical Barriers to Trade 1. International Developments Internationally, the highlights of the second half of 1996 were the Singapore Ministerial Meeting and the Information Technology Agreement. A. New Generation Trade Issues In the run-up to the first WTO Ministerial Meeting (9-13 December 1996), much discussion took place both within the Community and within the WTO on the future course of the organization. While the European Community had wanted the meeting to concentrate on stocktaking of the results achieved in the WTO thus far, it also favoured bringing new topics onto the agenda, such as the social clause issue and the environment-trade linkage.4 The first of these was the most sensitive. In July the European Commission issued a paper on the topic.5 It argued for the inclusion of labour standards in the agenda of the Ministerial Meeting and for the creation of a working party in the WTO to discuss the issue. B. Singapore Ministerial Meeting In Singapore the Community achieved only a very qualified success with the inclusion of new trade issues on the WTO's agenda. After protracted negotiations WTO members managed to agree to a Ministerial Declaration. This does not refer to the above 'new issues', other than a passing reference to the importance of core labour standards. However, the Declaration adds that the International Labour Organisation is the proper entity to deal with this matter and, effectively, Asian resistance to the social clause won the day. This is not to say that nothing new came out of Singapore. The most important WTO members agreed to abolish customs tariffs on some 400 pharmaceuticals. The WTO will establish a working group to study the relationship between investment and competition. The most important achievement, however, was the ITA Declaration. C. Information Technology Agreement The Ministers did not manage to sign a finalized agreement in Singapore. However, the main features of the Information Technology Agreement (ITA) have been laid down in the Declaration and the follow-up negotiations have been very successful. The participants in the WTO have agreed to abolish tariffs on information technology products on the most-favoured-nation (MFN) basis by 2000.6 Information technology products include, for example, computers and computer equipment, and virtually all telecommunications equipment. The Decision contains two attachments. The first of these is a list of customs nomenclature (HS) headings which are included in the scope of the deal. The second attachment lists products which are covered wherever they are classified by ITA partners. In the spring of 1997 the ITA partners submitted tariff reduction schedules and it is expected that the ITA will indeed take off as scheduled on 1 July 1997. D. Technical Barriers to Trade The European Commission is preparing the Technical Barriers on Trade (TBT) review. A review of this agreement is foreseen by the WTO Agreement on TBT before the end of 1997.7 The Community considers the 1997 review an important opportunity to improve adherence to the Agreement by other WTO Members. The Community is preparing the review carefully by identifying trade barriers in its major trade partners (see section IV.C below). As part of the preparation process, Commissioners Brittan and Bangemann presented a policy paper outlining the Community's policy in the field of trade and standards.8 Community policy in this field covers four areas: the WTO dimension (implementation of the WTO Agreement on Technical Barriers to Trade);9 the conclusion of Mutual Recognition Agreements (MRA); technical assistance programmes to help developing countries to implement the TBT Agreement; and finally, regulatory cooperation. MRAs are aimed at the mutual recognition of the conformity assessment bodies of the EC and its partners. The texts of the MRA with Australia, New Zealand and Switzerland were finalized. The Commission continues negotiating MRAs with Japan and the United States, and it is further hoped that in the near future an MRA can be finalized with Canada. 4 See Vermulst and Driessen, 'Commercial Defence Actions and Other International Trade Developments in the European Communities XI: 1 January 1996 - 30 June 1996', 7 EJIL (1996) 573. 5 'The Trading System and Internationally Recognized Labour Standards', COM(96)402 as revised. 6 As one very major exception, the Community agreed to abolish tariffs on HS headings 8541 and 8542 (semiconductors and related items) by 1999. 7 Article 15.4 of the TBT Agreement. 8 'Community External Trade Policy in the Field of Standards and Conformity Assessment', Communication to the Commission presented by Sir Leon Brittan in association with Mr Bangemann, November 1996. 9 Hereinafter 'TBT Agreement'.
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