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Meeting of the Working Party on the Accession of China

6 March 1997

Summing Up By the Chairman

I would like to welcome China and all the delegations to this, the third meeting of the Working Party on the accession of China. Today's meeting has been preceded by informal consultations which have taken place during the past two days. These multilateral consultations followed bilateral meetings between China and a number of WTO members. Additional bilaterals have taken place this week and will continue next week.

Participants in the informal multilateral process worked on both the revised annexes submitted by China (WT/ACC/CHN/5) and on the text of the draft protocol itself. The new annexes submitted by China were welcomed by the group and recognized as offering an improved basis for negotiations. With respect to some annexes, in particular Annex 4 on price controls and Annex 6 on export duties, it is my feeling that good progress was made. For others, I am confident that progress can also be made in the course of the next meetings of the Working Party. The present draft annexes of subsidies and statutory inspection continue to present major problems, and a basis for meaningful negotiation in these areas is still to be developed. Measures to be taken to overcome the difficulties in these areas include increased technical support to China in order to develop more satisfactory texts in line with WTO requirements in terms of notification and transparency.

The informal group went through the text of the Draft Protocol with a view to:

-- simplifying the provisions and eliminating redundancies wherever possible;

-- filling in time frames left open, on the basis of proposals introduced since December 1994;

-- confirming consensus which had emerged since that time on some issues; and

-- developing new consensus on resolving other issues.

Among the most notable results of this latest multilateral round I would like to mention, without being exclusive, the basic consensus reached on protocol sections dealing with the right to trade, as well as judicial review, while noting that with respect to this latter issue one point remains outstanding. More generally, there has been substantial progress in developing draft texts on nondiscrimination and non-tariff measures.

Progress made regarding the Draft Protocol during this Working Party meeting should permit us to concentrate in the upcoming sessions on some core issues, such as balance-of- payments, safeguards, transitional review mechanism and price comparability, in addition to finalizing points left to be resolved from discussions in this meeting.

In summing up, the multilateral consultations this week have been especially productive. Significant progress has been made on major issues. Clarifications have also been made which, in my view, should lead to further narrowing of positions and, ultimately, to achieving overall consensus on the conditions of China's accession.

There is a clear need to build on the existing momentum, both in regard to completing the annexes and to resolving the remaining sensitive issues in the Draft Protocol. I trust that the next meeting of the Working Party, which we may be able to schedule for the second part of May, will permit us to register such progress.

This being said, I want to underline that this accession process, as in any WTO accession, means completion of work and agreement on four instruments, specifically, a Draft Protocol with its annexes, a Draft Report of the Working Party, and Schedules on goods and services. We need through sustained bilateral and multilateral discussions to progress on all four fronts so as not to be put in a position where lack of progress on one instrument prevents timely completion of our work. I therefore appeal to the Chinese Delegation and Members of the Working Party to keep this closely in mind.

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