WORLD TRADE
ORGANIZATIONWT/GC/W/92
14 July 1998
(98-2784)
General Council
15 July 1998Original:  English
IMPROVING THE TRANSPARENCY OF WTO OPERATIONS
Communication from the European Communities
The following communication has been received on 13 July 1998 from the delegation of the
European Communities with the request that it be circulated to WTO Members.
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The EU strongly supports the statement in the May Ministerial Declaration, in which WTO
Members “recognised the importance of enhancing public understanding of the benefits of the
multilateral trading system in order to build support fo r it and agree to work towards this end.  In this
context we will consider how to improve the transparency of WTO operations.”  Greater transparencyis essential to reinforce the WTO as an institution and strengthen support for the multilateral trading
system.  This issue requires therefore priority attention by all WTO Members.
Transparency essentially implies a policy of open access to information as regards WTO
activities.  Transparency is therefore an essential component of accountability and a necessary
prerequisite for a meaningful process of consultations with organisation of civil society.
Consultations is of course a broader concept, which includes the process through which organisationsof civil society can engage in dialogue with WTO Members on issues of mutual interest.  The main
focus of this submission are immediate steps that could be taken to enhance transparency in the sense
of access to information, although the submission also stresses the importance of making full use of
current avenues for consultation and cooperation with organisations of civil society.  The Community
is also suggesting that the General Council should undertake a review of the adequacy of currentmeans of interaction with NGO’s in order to e nhance the opportunities for consultation and
cooperation with organisations of civil society.  The Community will be presenting further ideas on
how to enhance interaction with organisations of civil society in a future Communication to the
General Council.
1. The need to improve transparency of WTO operations
Since the entry into force of the WTO, steps ha ve been taken to improve the transparency of
WTO operations.  The General Council adopted on 18 July 1996 decisions on “Procedures for the
Circulation and Derestriction of WTO Documents” and on “Guidelines for arrangements on relationswith non-governmental organisations”.  On the basi s of such decisions a number of steps have already
been taken to improve the transparency of WTO operations:
• A large number of WTO documents are now available to the public and access to such
documents has been greatly facilitated through the establishment of the WTO Internet home
page.
 WT/GC/W/92
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• Panel reports are generally unrestricted at the same time in which they are circulated to all
WTO Members.
 
• The Secretariat has developed channels of  communication with a large number of NGOs
representing different interests in civil society.  Of particular interest, as a means of fosteringan interactive dialogue between WTO Members and the broad NGO community, has been the
organisation of symposia on issues such as trade and the environment or trade facilitation.Their informal nature is particularly conducive to an open dialogue in which the particular
interests and concerns of the broad NGO community can be communicated and discussed
with WTO Members.  Such open dialogue contributes not only to a better understanding of
the role and activities of the WTO, but also enriches and strengthens the WTO by providing a
means to draw on the expertise of organisations of civil society.
While all these steps are important, there is a clear need for further improving the
transparency of WTO operations.  Trade policy has a major impact on the livelihood and welfare of
citizens.  It is therefore only natural that WTO activities are a matter of legitimate public interest and
debate.   A deficit of information about WTO activities can only result in public mistrust and
misunderstandings and weaken support for the multilateral trading system.  The authority of the WTO
as an institution would be strengthened, and publ ic support for multilateral trade liberalisation
enhanced, if the WTO were to follow a much broader policy of openness in access to information and
if greater use were to be made of current avenues for interaction with organisations of civil society.
Transparency should be part of a wider communication strategy to convey the benefits of an open
multilateral trading system, explain the functioning and the role of the WTO, as well as the
interactions between trade policy and broader concerns in a global economy.
There is no reason why it should not be possible to adopt, such a policy of greater openness
without impinging on the nature of the WTO as an intergovernmental forum.  The WTO is a member-
driven organisation whose core functions are to provide a forum for negotiations among WTO
Members, monitoring compliance with treaty obligations and providing a mechanism for thesettlement of disputes.  All such functions are essentially intergovernmental in nature.  Governments
are supposed to represent their entire population.  They have the primary responsibility to establish, at
the domestic level, broad consultative processes with organisations of civil society, through which
such organisations can have an input into the process of trade policy formulation, and to develop an
effective communications strategy.
At the same time, it should be pointed out that the WTO has a broader political remit than the
GATT.  This is reflected in the establishment of the Ministerial Conference, the new function of
undertaking reviews of the trade policies of WTO Members and the mandate on “coherence in global
economic policy-making”.  Further reflection is needed on how this broader policy-oriented role of
the WTO could be better performed by its Members.  For instance, two areas that may require further
attention are the following:  a) The General Council proceedings could include in between MinisterialConferences, consideration of the coherence between WTO activities and broader trends and concerns
in the global economy.  This would allow the WTO to remain fully sensitive to its broader
environment and contribute towards the fulfilment of its mandate on coherence in global economic
policy-making including cooperation with the Bretton Woods institutions.  b)  The WTO should
become a more powerful tool for transparency, and it must make full use of the opportunities provided
by current proceedings, not least the TPRM, for Members to explain the full range of their trade
related practices and policies in areas of concern to their partners.  Improvements in each of these two
areas require further common reflection since these goals must not be pursued at the expense of the
negotiating effectiveness of the organisation.WT/GC/W/92
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The Community considers that the time has come for the WTO to take further decisive steps
to enhance the transparency of its operations.  The political mandate given by Ministers should be
acted upon as a matter of urgency. In particular, we would propose immediate steps to ensure that:  a)
WTO documents are immediately derestricted and made accessible to the public;  b) documents
pertaining to dispute settlement are, as a general rule, treated as unrestricted and delays in thecirculation and derestriction of panel reports are substantially shortened;  c)  greater and more
systematic use is made of the current avenues for interaction with organisations of civil society.
The Community would wish to underline the importance of rapidly delivering results.  This
should not be a matter of controversy among WTO Members; it should therefore be possible to reach
rapidly a consensus on a set of reforms which are both realistic and ambitious, thereby enhancing the
authority of the WTO as an organisation.  The General Council has a mandate to review theprocedures for the circulation and derestriction of  WTO documents by July of this year.  A decision
to substantially enlarge the current policy of access to documents could therefore be a first immediate
response to the mandate given by Ministers.  In order to facilitate discussion and consensus-building,
a specific proposal is attached to this Communication.   Some of the steps required to enhance
transparency in dispute-settlement proceedings require a change of the Dispute SettlementUnderstanding.  The review of the DSU theref ore provides an opportunity, which should not be
missed, to reach rapid results on this crucial aspect of transparency.  Finally, as regards consultations
and co-operation with NGOs, the Secretariat has already been given a mandate to facilitate such a
dialogue through a number of informal mechanisms.  The General Council should fully support
ongoing efforts by the Director General to improv e contacts with the NGO community.  It should also
review the adequacy of current means of interaction with NGOs in order to enhance the opportunities
for consultation and cooperation with organisations of civil society.
2. Procedures for the Circulation and Derestriction of WTO Documents
The Guidelines adopted by the General Council in July 1996 are already based on the
principle that WTO documents shall be circulated as unrestricted.  This principle is, however, subject
to exceptions specified in an Appendix to the Decision (WT/L/160/Rev1). The procedures applying to
such document generally imply consideration for derestriction six months after the date of circulation
of the document.  Unless a Member objects, documents are derestricted after a certain time limit –
normally sixty days – since the circulation by the Secretariat of a list of documents eligible for
consideration for derestriction.  Any Member may also present a request for the earlier derestriction ofa document, which would then be derestricted within 60 days unless a Member objects.
The current procedures represented a significant improvement in relation to prior GATT
practices by providing for the earlier derestriction of WTO documents.  The procedures have shown,
however, a number of weaknesses and fall short of what can be expected in terms of transparency ofWTO operations.  Timely information to the public is crucial for the proper understanding of WTO
activities.  Very few WTO documents can be considered to contain genuinely confidential
information, which would justify restriction.  The current procedures moreover have a number of
flaws:
a) The delays for the derestriction of most WTO documents seriously limits their value for
public information.   Apart from traditional practice, there appears to be no rationale for a rule
that makes most documents available to the public, but only after the expiry of an artificial
deadline.  The restricted nature of many WTO documents not only unnecessarily limits public
access to information, but also makes it more difficult for WTO Members to properly explainto domestic constituencies activities in the WTO.
 
b) Requests for early derestriction can result in a selective and partial release of information and
may provoke unnecessary controversy among WTO Members.  A general rule under whichWT/GC/W/92
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most types of WTO documents would be immedi ately derestricted would avoid the risk of
selectivity and ensure an adequate and full reflection of WTO activities.
 
c) A WTO member may indefinitely block derestriction of a WTO document.
The Community considers, therefore, that there are clear benefits in adopting a much broader
policy for the immediate derestriction of most WTO documents.  Access, through the WTO Internet
Home Page, to most current WTO documents would be a major and easy-to-achieve step in
improving transparency.  Such step is all the mo re necessary since WTO intergovernmental meetings
remain, in principle, closed to the public.  In particular, and subject to very limited exceptions, all
submission by WTO Members, Secretariat background notes, minutes of meetings and agendas
should be circulated as unrestricted documents.  The details of the EC proposal are outlined in theannex to this submission.
3. Transparency in WTO Dispute-Settlement
The 1996 Decision on Derestriction only deals partially with the public availability of
documents presented in the context of WTO dispute settlement.  The Decision does not apply to
submissions to a dispute settlement panel, which ar e governed by the relevant provisions of the DSU.
Panel reports are circulated as unrestricted, unless a party to the dispute requests delayed derestriction,
which may not exceed ten days since the date of circulation.  This provision is subject to review
within the context of the review of the DSU.
The review of the DSU provides an opportunity, which should not be missed, to improve the
transparency of the WTO dispute-settlement process.  The Community will present a number of
proposals  to improve transparency in dispute settlement.  Consideration of these proposals should
take place within the context of the DSU review, rather than in the General Council review ontransparency.
4. Consultation and Co-operation with Organisations of Civil Society
On the basis of Article V.2 of the WTO Agreement, the Council established on 18 July 1996,
“Guidelines for arrangements on relations with non-governmental organisations”.  Such guidelines
call upon the Secretariat to “play a more active role in its direct contacts with NGOs”; recommend thedevelopment of a number of modalities for interaction with NGOs, such as symposia on specific
WTO-related issues, and envisage the possibility of participation by the chairpersons of WTO
Councils and Committees in discus sions or meetin gs with NGOs.
The Community is convinced that organisations of civil society are key stakeholders in the
domestic process of trade policy formulation. WTO Members have a primary responsibility to
develop, at the domestic level, procedures for consultation and co-operation through which
organisation of civil society can have an impact on trade-policy making.  This should involve all
organisations of civil society with an interest in trade policy, such as representatives of the business
community, trade unions, consumer groups, environment or development NGOs. Such dialogue couldand should encompass an increasing number of areas of WTO activities which are of mutual interest
for all stakeholders and WTO Members.  At the same time the WTO, as an organisation, should
contribute to greater openness through a comprehensive policy of access to information.  Greater and
more systematic use of opportunities for dialogue and consultations with organisations of civil society
at the multilateral level should complement the dialogue undertaken at the domestic political level.
The guidelines adopted by the General Council in July 1996 entrust the Secretariat with the
organisation of the particular modalities for inte raction with NGOs. They could and should be used
more fully to further such a dialogue and consultations.  The Secretariat should also consider means of
resolving practical problems that may have arisen in the application of the guidelines, such as theWT/GC/W/92
Page 5
requirement for NGOs to undertake a separate registration every time symposia or other means of
interaction are organised.
The General Council should therefore:  a) Fully support ongoing efforts by the Director
General to improve communication to and contacts with  organisations of civil society;  b) Review the
adequacy of current means of interaction with NGOs in order to enhance the opportunities for
consultation and co-operation with organisations of civil society, including through the organisation
of symposia and other informal means of dialogue with NGOs on relevant WTO-related issues. The
Committee on Trade and Environment has provided a good model in this respect.  It should be
stressed that WTO Members have direct responsibility to consult all interested stakeholders in the
development of their trade policies.  The General Council could, in the run up to the 1999 Ministerial,
provide a forum for an exchange of views and experiences among WTO Members on the wider issueof developing an effective communications strategy with interested stakeholders.  The Community
will further present ideas on these issues in a future submission to the General Council.WT/GC/W/92
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ANNEX
Proposal for Revision of the Procedures for
the Circulation and Derestriction of Documents.
The Decision adopted by the General Council on 18 July 1996 is already based on the
principle that WTO documents shall be circulated as unrestricted.  Exceptions are set out in an
appendix which lists certain categories of WTO documents for which derestriction is subject to
special procedures.
On the basis of experience, and the call by Ministers to consider means of improving
transparency in WTO operations, it is proposed that certain types of WTO documents be removed
from the exception list and be therefore circulated as unrestricted documents.  As a general principle,
procedures for delayed derestriction should only apply to those particular WTO activities where there
is a strong case for maintaining a period of confidentiality, while an issue is subject to consideration
by WTO bodies.  In particular, it is proposed that the following types of documents be removed fromthe exception list:
a) Documents Submitted for Circulation by a WTO Member:  All such documents should be
circulated as unrestricted, including those which are currently classified as working
documents.  On an exceptional basis, a Member may indicate to the Secretariat that adocument be circulated on a restricted basis.  In such case, however, the document should be
automatically derestricted after the expiry of a period of time (e.g. 6 months).
 
b) Secretariat Background Notes:  Such notes are intended to provide factual information and
not to represent the collective views of WTO Members.  All such notes should therefore be
circulated on a non-restricted basis.  There may be exceptional cases in which a WTO body,
when requesting the Secretariat to prepare a background note, considers it essential that the
note be initially considered on a confidential basis.  This may be allowed, as an exception to
the general rule of derestriction, provided that a maximum time period (e.g. 6 months) is
established for its automatic derestriction.
 
c) Minutes of Meetings:  Minutes are prepared under the responsibility of the Secretariat and
provide essential information about WTO activities.  Minutes should therefore be circulated
on an unrestricted basis.  As noted below, exceptions would be made for a limited number of
WTO bodies which, by their very nature, require a certain degree of confidentiality in
proceedings.
 
d) Meeting Agendas: These should be immediately derestricted.
The proposals for immediate derestriction above would not affect certain categories of
documents, for which current procedures would continue to apply.  This is the case for:
• Working documents of a draft nature, such as decisions and proposals.  (Consideration
could be given to procedures to facilitate earlier derestriction of such documents after theexpiry of a reasonable period of time.
• Documents in the Secret/series (i.e. documents relating to Article XXVIII negotiations,
including processes initiated pursuant to Article XXIV:6);WT/GC/W/92
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• Documents relating to Working Parties on Accession (Documents submitted by the
acceding country could be subject to earlier derestriction if the acceding country soindicates to the Secretariat);
• Documents relating to Balance-of-Payments consultations;
• Documents relating to the Budget Committee.
Documents relating to the Trade Policy Review mechanisms would also continue to be
subject to current procedures, which already provide for derestriction upon the expiry of the press
embargo thereon.
Panel reports should be immediately derestricted upon their circulation to all WTO Members.
Other aspects relating to transparency in WTO dispute settlement should be considered within the
framework of the DSU review.
It should be noted that procedures for derestriction only apply to official WTO documents.
The procedures do not apply either to the Plurilateral Trade Agreements, although the Community
would favour their adoption by the competent bodies.
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