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EU Trade Commissioner Lamy sent out a daily e-mail update from Cancún. I just received the last one and append all previous letters below.

Erik Wesselius
Corporate Europe Observatory / GATSwatch

PASCAL LAMY'S GOODBYE FROM CANCUN

Goodbye from Cancún

Dear all,

Not much time for letter-writing these last 36 hours, as you will understand... the WTO Ministerial has collapsed. Difficult to believe after all the hard work that so many people put in. I had really thought that a compromise was within reach. So what happened? Saturday night we started discussions on the basis of a new draft text that the chair Mexican Minister Derbez, had put out on the basis of the consultations held over the last few days. You can imagine that I didn't get much sleep that night... Meetings of the whole membership were followed by smaller groups and one-to-one consultations that went on into the small hours.

The next morning, discussions resumed in a windowless room with thirty-something Ministers around the table, representing different caucuses, trying to bridge the gap between the different viewpoints. We first tackled the so-called Singapore issues (I wrote about them in one of my last letters: investment, competition, trade facilitation, government procurement). There was a lot of scepticism, especially from a number of developing countries. In a move to try and break the deadlock, I suggested that we drop two and keep two.

The Chair proposed we drop investment and competition. It was a decision I didn't take lightly, as I continue to think that rules in these areas are good for everybody, and certainly not anti- development: they underpin market opening and help to regulate trade. Of course, I needed to see whether EU Member States were ok with this – after all, I negotiate on their behalf. So, after four hours or so, the meeting was interrupted to give participants the time to consult with their constituencies. EU Member States gave me the go-ahead.

I really thought that we would be able to conclude on that basis, but when we got back into the meeting room, the Minister speaking on behalf of the African Group said that they couldn't accept even the remaining two issues, whereas the Korean Government stood firm on the four... The beauty of unanimity... Derbez declared that there was no agreement and that he would suspend the conference.

Suddenly, it was all over.

The next hours were a frenzy of phone calls back to Brussels, Council meeting, press conferences, interviews, etc. At least I was able to break my bread and banana diet... So here we are now, with the broken pieces of what could have been a big step forward for developed and developing countries alike. I was appalled when I heard that some had been cheering the failure of the conference. I think they didn't realise just how much we have all lost through this failure. I am also struck by the difference between the inside and the outside view of events: some say that the conference failed because rich countries refused to open up farm trade. Well, we didn't even get around to discussing that in the final Ministerial discussion! And if you look at the text on the table, that was a much better deal for developing countries (on agriculture as well as on other issues) than we could have expected even a couple of months ago. And it is just too facile to say that this was all a big North-South confrontation: in Cancun, we saw the emergence of several Souths (the more advanced group of countries in the G-21, the G-90 regrouping the African countries and the least developed ones).

No, I think we need to dig a bit deeper to understand what happened – and to decide where to go from here. That's what I intend to do over the next days and weeks.

But now it's back to Brussels. I have a plane to catch – bye, and I'll be in touch !

PASCAL LAMY'S LETTER FROM CANCUN

Days 6 in Cancún

Dear All

Glad to say I got out for an early-morning run today - good to see some daylight and ventilate the brain a bit after many hours in chilly air-conditioned rooms without windows. Today's likely to be the toughest day yet. Before I plunge in to the next round of meetings, here's a rundown on yesterday.

I spent most of Friday in a trilateral meeting, with the US and the G- 21. All in all, very positive - as you can well imagine, I did have my doubts about how it would go, and came out with the feeling that we really are making headway on the all-important agriculture strand of these negotiations.

Then a meeting with African, Caribbean and Pacific countries, who as I mentioned yesterday, have created their own G, linking up with the African Union and the Least Developed Countries. Anyway, as far as I'm concerned, this kind of new alliance is clear proof that all World Trade Organisation members are now well up to speed on how to use these negotiations to get the outcomes they want. I had bilateral meetings with Indonesia and Pakistan; and saw the facilitators of all the five working groups here: agriculture, Singapore issues, non- agricultural market access, development and the other issues, which include the environment and services.

Then I went to a meeting organised by EU NGOs - a chance to give them my take on where things stand and where the negotiations are going. Big turnout - up to 300 came to this session, with to-the-point questions on all key issues. Took the opportunity to explain what we have in mind on cotton, which to my mind is now occupying the symbolic territory that Access to Medicines took in Doha - an acid test of our commitment to meeting developing countries' expectations in this round. We support the initiative to do something on this issue, within the agricultural strand. So - the EU would like the WTO to propose to its members a sectorial initiative on cotton. This would involve eliminating trade-distorting domestic support, and eliminating export support. I reminded everyone that the EU doesn't have export subsidies for cotton; and we are calling on all WTO members to offer 'Everything But Arms' terms for cotton to Least Developed Countries - duty-free, tariff-free access to their markets.

As expected, lots of interest in the Singapore Issues. Some people are still calling these the New Issues, though they've now been around for six years. At this rate, I look forward to a new lease of life as a New Man in 2009 - maybe a new hairstyle? Anyway, I've said it before and I'll say it again - no unbundling of Investment, Competition, Trade Facilitation, Transparency in Government Procurement. No, we are not trying to sneak Investment in through the back door via the GATS (services) negotiations. No, I don't have a chequebook in my pocket to offer development aid inducements to win more friends for these four issues. We are having reasoned discussions — negotiations, in other words — with all who care to talk to us about them. Are you keeping track of the right jargon to use in trade talk today? 'Decoupling' for agriculture, but 'Unbundling' is the term in vogue for Singapore issues. Yes to decoupling, no to unbundling. It's as simple as that.

Now for a word on how today's likely to play out. First up is my daily meeting with European Members of Parliament. Theme today: Transparency and inter-institutional relations. These so-called governance issues sound dry put like that, but they are crucial in ensuring the legitimacy of what comes out of here.

Then comes the moment we have all been waiting for - the texts that we are expecting from the facilitators. Heads down as we analyse them to make sure they reconcile the positions we've heard fairly. Then I'll discuss them with the Council of EU ministers and the members of European Parliament to shape our overall position.

Watch this space!

Pascal Lamy

PASCAL LAMY'S LETTER FROM CANCUN

Days 5 in Cancún

Dear All,

Didn't get much sleep last night. The ministerial conference has moved into its all-night marathon mode. So I had to skip my early morning jog to save energy for whatever lies ahead and I really don't know when I'll next get my running shoes out.

Started the day with a press conference, side by side with Franz Fischler, the EU Agriculture Commissioner. That was a chance to remind everyone that the EU has made several very significant commitments on agriculture that will benefit developing countries; and we want to encourage other countries to do the same.

For the Least Developed Countries (LDCs) in particular, there's our so-called 'Everything But Arms' initiative, offering the world's poorest nations duty-free, tariff-free access to EU markets for all products except arms (not that we think they would try to sell us those anyway).

Now we're turning our attention to cotton, and we hope that what we have in mind will add to the range of measures with positive effects for developing countries. Just in case you didn't catch that, the Commission plans to present proposals to our Council of Ministers to reform our cotton support system, mainly by breaking the link between production and support. I mentioned this the other day to the West and Central Africans deeply concerned about plunging cotton prices.

Next up was a meeting with ... the G-148! Yes, the World Trade Organisation now has 148 members. Yesterday we welcomed Nepal and Cambodia into our ranks - the first accessions of LDCs since the WTO was created in 1995 (though 30 of the 49 are members pre-dating that). One of the promises we made at Doha was that LDCs would be able to join the WTO with support in completing a simplified procedure that includes technical assistance all the way and doesn't place too heavy a burden on them in terms of concessions and commitments. Now we see the first fruits of this approach, and others will follow suit if all goes well - Buthan, Cap Verde, Ethiopia, Laos, Samoa, Sudan, and Vanuatu.

The day is filling up fast with bilateral meetings on all the hot topics - agriculture, Singapore Issues, non-agricultural market access (that's NAMA to insiders). Working groups are cracking on briskly through the issues. There seems to be a real will to find ways to bring home worthwhile agreements all round.

This afternoon, I'll be a guest at a meeting organised by EU NGOs who are following the business here every step of the way. The topic today: the one they love to hate, the Singapore Issues. I'll tell you how it went tomorrow, all being well.

I see my diary is peppered with 'G'-meetings - and there's a new kid on the block, the G-21, or is it G-22? Hard to tell. What I can see, though, is that they don't like the G-25 (that's us) plan on agriculture. The NGOs, who are active on all issues, seem to have developed a special liking for the G-21 and are busy trying to swell their ranks. Strange bedfellows, if you ask me, but it all makes life interesting. And later today, a new G-X has emerged, bringing together the African, Caribbean and Pacific countries, the least developed countries as well as the African Union. I leave you to figure out to just how many that adds up.... I'm a party animal, and my favourite group round here is... the G-148.

That's all for now. I'll be in touch to let you know how it all goes...

Pascal Lamy

PASCAL LAMY'S LETTER FROM CANCUN

Days 3 and 4 in Cancún

Sorry, no time to write yesterday, but I'm grabbing a few minutes now for a few lines.

As I got up, I was devastated to hear the news about my good friend Anna Lindt's death in Stockholm, on this of all days, when the anniversary of 9/11 is in our thoughts. Such desperation can only make us all the more determined to seek an outcome that gives hope to the world's poorest countries in our negotiations at this World Trade Ministerial over the next few days.

The opening ceremony was an opportunity for everyone to express his or her hopes and concerns. For my part, I said we had to make sure we did not re-create the North-South confrontation scenarios of the 1970s and 1980s. The lines of division in our debates are not so clear cut. If the Doha Development Agenda is to live up to its name, as I believe it must, we have to be responsive to the concerns of others, whatever hemisphere they inhabit. I said loud and clear that we are open to doing so, and ready to go the extra mile to achieve that.

Yesterday, I met ministers from West and Central African countries deeply worried about the low levels to which cotton prices had sunk on world markets, and about the role of subsidies in the main producing and exporting countries in this sad state of affairs. Let's be honest - the EU does indeed grant aid to its cotton producers - but they account for such as small fraction of world production, around 2 %, that they really have no impact on world prices. All the same, the European Commission is about to put forward proposals to reform that support system, mainly by breaking the link between production and support. In Europe this support goes to producers in rural areas in Greece and Spain. And the EU is fully committed to reducing trade-distorting subsidies in the negotiations taking place here. We are also proposing that no less that half of developing country exports should be at zero duty. We call on all others to join us in supporting these proposals in the agreement on agriculture.

And then I heard that a Korean farmer had committed suicide during a demonstration here: terrible human tragedy; cast a shadow over today.

I ended my day at a dinner with the Consumers Choice Council, where I put in a word for the consumer's right to choose quality products from all over the world - quality guaranteed by fair trade, labeling and eco and organic production. But also geographical indications. I know many people think this is a European hobby-horse, and is mainly about our gourmet food. I can't deny I am partial to a good Bordeaux or Parmesan cheese. But just think of Basmati rice, Blue Mountain coffee, Jasmine rice, or even oriental carpets. But I stopped short of tasting the best known Mexican GI, tequila, knowing what awaited me today! Our objective is to ensure when consumers buy these prestige products, they get what they pay for and the market doesn't get eroded by free-riders offering 'Roquefort style' cheese or 'Parma- type ham' - an unfair competition to producers of the original products.

All of which has given me an appetite for what lies ahead today: real negotiations started at 10 am.

We also welcome into the WTO family two new members: Cambodia and Nepal, the first Least Developed Countries to join since the creation of the WTO in 1995. The WTO will be getting stronger and richer through their membership and active participation.

Enough for today. I'll be in touch again soon.

Pascal Lamy

For the text of Pascal Lamy's opening speech at the WTO 5th Ministerial Conference:
http://europa.eu.int/comm/commissioners/lamy/speeches_articles/spla188_en.htm
For the text of the speech on cotton:
http://europa.eu.int/comm/commissioners/lamy/speeches_articles/spla189_en.htm

PASCAL LAMY'S LETTER FROM CANCUN

Day 2 in Cancun

Tuesday. The days starts early with the sun rise at around 6am. I do my usual half hour jogging; good thing is that I have changed the streets of Brussels for heavily built coastal line of Yucatan.

For the EU, today it is "Sustainable Trade Day". In company with WTO Director General Supachai Panitchpakdi, I will be introducing this event which brings together negotiators and civil society. The aim is to identify new ideas and policies to enrich the contribution trade policy makes to sustainable development.

I will also be speaking at two other conferences which demonstrate that the days when trade was the preserve of technical experts are long gone. The International Trade Union Confederation's meeting provides an opportunity to discuss how international trade rules can be designed to ensure that globalisation is of benefit for all. The WTO Parliamentary Conference sees some 300 Parliamentarians from all round the world, meeting to ensure that their constituents' views are clearly understood by the negotiators. I very much welcome the support the European Parliament has already given for the EU's line, which strengthens my hand as a negotiator. As trade policy increasingly involves choices about how to articulate interest and values, effectively different visions of how societies should be organised the input of elected Parliamentarians becomes ever more important.

After a morning of meetings, the afternoon sees a press conference - a chance for both Franz Fischler and myself to put across the EU's position to the world's media and respond to their questions. A key is that contrary to some perceptions - the WTO is not divided between industrialised and developing countries or between North and South. Instead there is a shifting web of alliances according to the issue.

I continue my round of bilateral with other delegations. I saw Bob Zoellick, Ernesto Derbez, our Mexican host and Arun Jaitley yesterday. I am seeing my Brazilian counterpart Celson Amorim today as well as a number of other colleagues from Hong Kong to Kenya.

At the practical level, preparations for the formal opening are continuing with the press room being painted, cables being connected and new mobile phone numbers being exchanged (even modern technology can fail!) Everything needs to be ready for the opening ceremony tomorrow. And, after yesterday's relatively leisurely start for the Commission delegation - with the daily meeting at 08.00 - today saw what will be the standard 07.00 morning meeting.

For more information on the issues discussed today:
- Pascal lamy's speech at the Sustainable Trade Day
http://europa.eu.int/comm/commissioners/lamy/speeches_articles/spla184_en.htm
- WTO Parliamentary Conference
http://www.ipu.org/splz-e/cancun.htm
- International Trade Unions Confederation meeting
http://www.icftu.org/displaydocument.asp?Index=991218301&Language=EN

PASCAL LAMY'S LETTER FROM CANCUN

Not your usual charter flight for a Sunday

Of all the charter flights that left Europe this summer, it seems safe to assume that this was one of the few to have little groups discussing the latest WTO rulings, to have people scrutinising briefing papers already highlighted in various florescent shades, and yet still to have some time to discuss how to spend any spare time in Cancun. Yet the Commission's charter flight to the WTO Ministerial Conference followed this model.

Right from the airport it was clear that this was no normal charter - music from demonstrators, briefing packs from Oxfam, and anti-bad deals packages from campaigners - causing an anxious moment when the check-in desk says "has any one given you anything to take on the flight?" And on the plane MEPs, Commission officials, people from national governments, journalists and NGO representatives were intermingled. A rare charter - when you recognise a high proportion of people and are able to tease those travelling in a superior class rather than just having to suppress jealously. But the privileged replied that the atmosphere was much livelier in steerage.

Day one in Cancun

It is Monday 8 September and the trade ministers, parliamentarians, trade unions and civil society are gathering for the 5th World Trade Organisation Ministerial Conference.

Today a number of Central and West African countries are raising the awareness of participants to the problem caused by the decline in the world cotton prices. A combination of factors such as price competition from synthetic fibres, world-wide production and consumption patterns, production-linked subsidies and trade barriers is negatively affecting a number of Central and Western African countries for which cotton is an important export item.

Both my colleague EU Farm Commissioner Franz Fischler and myself have expressed our sympathy for this problem, which we believe should be part of our overall discussions to further open farm trade in the Doha Development Agenda.

The impact of the EU on world cotton prices is minor: the EU produces less than 3% of the world production; Europe has no duties or quantitative restrictions for cotton imports from African countries and the world's 49 poorest countries. The EU is a price-taker and not a price-maker: Since the EU is not a net exporter of cotton, but the largest importer of cotton world wide, it has little, if any, influence on world prices.

EU domestic subsidies for European cotton growers are subject to a production ceiling: when the quantity is exceeded, the amount of the support is decreased. The support provided by the EU is mostly destined for small cotton growers in rural areas in Greece and Spain.

Tomorrow is "sustainable trade day"

We are also preparing ourselves for tomorrow, which we have decided to devote to "sustainable trade". We in Europe see the strengthening of the relation between trade and sustainable development as a fundamental aspect of trade policy. Opening trade is not an end in itself, but a means to bettering the living conditions of people around the world, without jeopardising future generations. It is good that we all keep this in mind just before we start the negotiations proper on the 10th.