(3). There should be a re-orientati

(3). There should be a re-orientation in the operational principles and rules of the WTO so that the development principle is accorded the highest priority. The preamble to the Marrakesh Agreement recognises the objective of sustainable development and also the need for positive efforts to ensure the developing countries secure a share in international trade growth commensurate with the needs of their economic development. The objective of development should become the overriding principle guiding the work of the WTO, and its rules and operations should be designed to produce development as the outcome. Since the developing countries form the majority of the WTO membership, the development of these countries should be the first and foremost concern of the WTO. The test of a rule, proposal or policy being considered in the WTO should not be whether that is "trade distorting" but whether it is "development distorting." Since development is the ultimate objective, whilst reduction of trade barriers is only a means, the need to avoid development distortions should have primacy over the avoidance of trade distortion. So-called "trade distortions" could in some circumstances constitute a necessary condition for meeting development objectives. From this perspective, the prevention of development distorting rules, measures, policies and approaches should be the overriding concern of the WTO. (TWN 2001).

The re-orientation of the WTO towards this perspective and approach is essential if there is to be progress towards a fair and balanced multilateral trading system with more benefits rather than costs for developing countries. Such a reorientation would make the rules and judgment of future proposals more in line with empirical reality and practical necessities. Taking this approach, the goal for developing countries would be to attain "appropriate liberalisation" rather than to come under the pressure of attaining "maximum liberalisation." The rules of WTO should be reviewed to screen out those that are "development distorting", and a decision could be made that, at the least, developing countries be exempted from being obliged to follow rules or measures that prevent them from meeting their development objectives. These exemptions can be on the basis of special and differential treatment.

(4). The next phase of the WTO’s activities should focus on the above three areas, in order that the review of existing rules, the realizing of opportunities in the developed countries' markets, and the re-orientation of the WTO to developing countries' needs and interests, can be carried out. These processes would in themselves be a massive task, requiring the commitment, energy and resources of WTO Members. However this is needed to build a mutually beneficial multilateral trading system.

(5). The proposal to begin negotiations on "new issues" (especially investment, competition, transparency in government procurement) after the next WTO Ministerial Conference in Cancun in September 2003 should be withdrawn as this would not only distract and detract from the tasks of reform detailed above, but also add new heavy obligations onto developing countries and render the WTO system much more imbalanced.

(6). The process of decision-making in WTO must be democratised, made more transparent and enable the full participation of developing countries. At present, the system of participation is flawed. The so-called consensus system enables the developed countries to pressurise developing countries to accept what has been agreed among the developed countries. Moreover, non-inclusive and non-transparent processes are used, especially surrounding the Ministerial Conferences during which the key decisions are taken. For example, at the Singapore Ministerial Conference in 1996, only 30 countries were invited to the "informal" meeting where the major decisions were taken, and the remaining countries were asked to accept the decisions on the last night. At the Doha Conference in 2001, the proposals of a majority of developing countries on key subjects were not included in the drafts of the Declaration, despite their objections. This put them at a great disadvantage. The decision-making processes should therefore be reformed, and the absence of such reform would make it difficult or impossible for the other improvements being suggested to be realised. At the least: (a) All members must be allowed to be present and participate in meetings. (b) The views of all Members must be adequately reflected in negotiating texts. (c) Pressure should not be applied on members to accept views of other members. (d) Adequate time must be given to all members to consider proposals being put forward. (e) The practice of late-night exclusive meetings at Ministerial Conferences should be discontinued.

(7). There should also be a rethinking on the scope of the WTO's mandate over issues and the role of other agencies. It is misleading to equate the WTO with the "multilateral trading system", as is often done in many discussions. In fact the WTO is less than and more than the global trade system. There are key issues regarding world trade that the WTO is not seriously concerned with, including low commodity prices. On the other hand, the WTO has become deeply involved in domestic policy issues such as intellectual property laws, domestic investment and subsidy policies. There are also proposals to bring in other non-trade issues including labour and environment standards as well as investment and competition. The WTO and its predecessor the GATT have evolved trade principles (such as non- discrimination, MFN and national treatment) that were derived in the context of trade in goods. It is by no means assured or agreed that the application of the same principles to areas outside of trade would lead to positive outcomes. Indeed, the incorporation of non-trade issues into the WTO system could distort the work of the WTO itself and the multilateral trading system. Therefore, a fundamental rethinking of the mandate and scope of the WTO is required: Firstly, issues that are not trade issues should not be introduced in the WTO as subjects for rules. Secondly, a review should be made of the issues that are currently in the WTO to determine whether the WTO is the appropriate venue for them (the obvious issue to consider here is IPRs).