TWN Info Service on WTO and Trade Issues (Mar21/04)
3 March 2021
Third World Network

US to work with DG and like-minded members on WTO reform
Published in SUNS #9297 dated 3 March 2021

Geneva, 2 Mar (D. Ravi Kanth) – The United States has said that it will “work with World Trade Organization’s Director-General Okonjo-Iweala and like-minded trading partners to implement necessary reforms to the WTO’s substantive rules and procedures to address the challenges facing the global trading system, including growing inequality, digital transformation, and impediments to small business trade.”

Announcing the Biden Administration’s trade policy in Washington DC on 1 March, the Office of the United States Trade Representative (USTR) appears to have subtly suggested the close nexus between the priorities of the USTR and Ms Ngozi, said a trade negotiator, who asked not to be quoted.

The new WTO Director-General Ms Ngozi Okonjo-Iweala has already unveiled her controversial trade initiatives at the General Council (GC) meeting on 1 March that allegedly seeks to promote the priorities of the United States, the European Union, and Japan on industrial subsidies, state-owned enterprises, and special and differential treatment among others.

Without naming the countries/delegations at the first General Council meeting of 2021, she said that “they want action on industrial subsidies, SOEs (state-owned enterprises) and SDT (special and differential treatment),” the three issues that have been exclusively raised by the US, the EU, and Japan.

Based on her assessment of the priorities announced by members at an informal Trade Negotiations Committee (TNC) meeting on 25 February, she said “delegations want the Fisheries Subsidies negotiations concluded, they want Reform of the Dispute Settlement System including Restoration of the Appellate Body.”

Ms Okonjo-Iweala said that “they want action on Agriculture, on market access (largely raised by the US and the Cairns Group of countries led by Australia), Domestic Support, existing mandates such as PSH (public stockholding programs for food security), SSM (special safeguard mechanism for developing countries) and Cotton,” and “Without neglecting the questions raised on the legal status of JSIs (India and South Africa have challenged the legal status of the Joint Statement Initiatives)”, especially e-commerce, services domestic regulation, and MSMEs (micro, small, and medium enterprises).

Without naming Canada and other members of the Ottawa Group, the DG said that “there is a desire to enhance dialogue and action on women in trade.”

Without naming the European Union, Canada, and other members of the Ottawa Group, who are the proponents of the trade and environment sustainability dialogue, Ms Ngozi said “delegations recognize that the issue of Trade and Environment/Climate Change is key and want forward movement on this.”

She said the LDCs emphasized their interests that would “lead to enhancing growth and development including the need for Special and Differential Treatment (which they already have), Services Waiver, Preferential Rules of Origin etc and also review of issues related to graduation.”

It is now clear as daylight from where Ms Ngozi’s priorities are coming from, said a negotiator, who asked not to be quoted.

NEW CHAIRS FOR WTO BODIES

The outgoing GC chair, Ambassador David Walker from New Zealand, is expected to announce the new chairs of the WTO bodies at the ongoing GC meeting.

In his email sent to members on 26 February, the GC chair shared the list of appointments for different WTO bodies.

The new chair of the WTO General Council for 2021 is expected to be Ambassador Dacio Castillo from Honduras.

Ambassador Castillo will have an important role to play in the run-up to the WTO’s 12th ministerial conference likely to be held in Geneva in December, said trade envoys, who asked not to be quoted.

The Swiss trade envoy Ambassador Didier Chambovey is likely to be the chair of the Dispute Settlement Body in which the highest adjudicating body for global trade disputes, the Appellate Body, remains dysfunctional.

Effectively, the WTO’s enforcement function is paralyzed at a time when new trade agreements are going to be negotiated, trade envoys said.

Botswana’s trade envoy Ambassador Dr Athaliah Molokomme is expected to chair the Trade Policy Review Body (TPRB), while the chair of the Goods Council is likely to be Ambassador Lundeg Purevsuren from Mongolia.

Mexico’s trade envoy Ambassador Angel Villalobos is expected to chair the Council for Trade in Services, while the TRIPS Council is likely to be chaired by Ambassador Dagfinn Sorli from Norway.

Pakistan’s trade envoy Dr Muhammad Pircha is expected to chair the Committee on Trade and Development, while the Russian trade envoy Ambassador Dmitry Lyakishev will likely head the Committee on Balance of Payments.

Germany’s trade envoy Dr Bettina Waldmann is likely to chair the important Committee on Budget, Finance and Administration, and the longstanding trade envoy of the Philippines Ambassador Manuel Teehankee will likely chair the Committee on Trade and Environment.

Kenya’s trade envoy Dr Cleopa Mailu is expected to head the Committee on Regional Trade Agreements.

Jamaica’s trade envoy Ambassador Cheryl K Spencer will likely chair the Working Group on Trade, Debt, and Finance, while Vietnam’s trade envoy, Ambassador Le Thi Tuyet Mai is expected to chair the Working Group on Trade and Transfer of Technology.