This output and trade growth was achieved against the background of sharply higher prices for fuels and many other primary commodities. The decline of FDI flows observed fro 2002 through 2003 was arrested and reversed in 2004. Major exchange rate adjustments in 2004 induded the further appreciation of most European currencies and many Asian urrencies vis-a-vis the US dollar. The euro and the yen, in particular, appreciated on an annual average basis by 9 per cent and 6.5 per cent respectively The lower value of the US dollar against the currencies of major traders combined with the marked rise in the prices for fuels, metals and many agricultural raw materials led to an increase in the dollar prices of internationally traded goods by 10 per cent. Under th combined impact of stronger real trade growth and the marked increase in prices, the dollar value of world merchandise trade rose by 21 per cent, reaching $8.88 trillion dollars. Commercial services exports are estimated to have increased by 16 per cent to $2. 1 trillion The acceleration in the value growth of commercial services trade can be partly attributed to g 0 a balance of payments basis lagged behind that of world merchandise trade and as in the君 previous year the sharp rise in commodity prices again played a major role in this outcome. 2 The doha Development Agenda The Doha Development Agenda saw some very positive advances in 2004 building on the elements that had emerged at and since the WTO's Fifth Ministerial Conference held in Cancun in 2003. The Trade Negotiations Committee and its subsidiary bodies were reactivated in early 2004. A principal objective for the first-half of the year was to take the necessary actions that would re-energize the negotiations. Substantive preparations towards framework-level agreements as part of a broader package to be agreed at the july meeting of the General Council began immediately after the appointment of a new slate of officers for regular WTO bodies, including the General Council and the negotiating bodies in February 2004. Intensive consultations were held by the Chairman of the General Council and by the rector-General as Chairman of the TNc. The challenge was to translate the strong political commitment to the success of the DDa negotiations into concrete action On 8 June 2004 the General Council Chairman announced at an informal meeting at level of Heads of Delegation that the July Decision could cover nine main elements includi consultations both in Geneva and also in capitals, the first draft of the General Council Decision was circulated to Members for their consideration on 16 July 2004 After further consultations and revisions the Decision was further revised and adopted by ling of 31 July Members welcomed the adoption of the July Decision as a breakthrough and said that it would reinvigorate the negotiations and assist Members to achieve the objectives set pha in November 2001. It was stressed that while the July Decision provided important signposts, it was imperative for Members to build on it by continuing to engage intensively and work in a spirit of compromise to advance the negotiating agenda The Framework on Agriculture which was agreed as part of the July package has been a forward in this technically complex and politically sensitive area. It fleshes out the Doha mandate by establishing specific objectives for the negotiations on agriculture and the means to achieve them. While the framework has left many political issues for resolution at the subsequent stage of the negotiations, it already reflects important movements towards convergence in all three pillars of market access, export competition and domestic support, induding the historic commitment to eliminate all forms of export subsidization at a date to be agreed. As part of this agreement, Members achieved a breakthrough in cotton which is so important to cotton farmers in developing countries, particularly least-developed countries in West Africa. For many WTO Members, particularly developing countries, a good market access deal in agriculture, coupled with the elimination of all forms of export subsidization and substantial reductions in trade-distorting support, holds the promise of ample new growth and employment opportunities through trade, including through broadening the avenues for mutually advantageous South-South trade Likewise the framework on non-agricultural market access(NAMA)was to be a stepping stone towards full modalities As discussions on this subject were pursued, it became clear that two approaches were being espoused. There were those Members who sought to keep the Nama text which originated from the second revision of the draft Cancun Ministerial negotiate that text and introduce amendments. The compromise reached ivished to Text( the so-called Derbez text)unchanged. 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