TWN Info Service on Intellectual Property Issues (Jun22/06)
16 June 2022
Third World Network

WTO: MC12 extended to 16 June due to differences on deliverables
Published in SUNS #9596 dated 16 June 2022

Geneva, 15 Jun (D. Ravi Kanth) -- Sharp differences over the five proposed deliverables for the World Trade Organization's 12th ministerial conference (MC12) have forced the organizers to extend MC12 tentatively by one more day to end on 16 June, said people familiar with the latest development.

At a brief press conference around mid-day on 15 June, Daniel Pruzin, the acting WTO spokesperson, announced that further to the WTO Director-General's remarks at the horizontal heads of delegation meeting that took place evening of 14 June, following her consultations with the chair of MC12, Timur Suleimanov, the vice-chairs, and the minister facilitators, delegations have been informed that MC12 will be extended by one day until Thursday, 16 June, with the closing ceremony "tentatively" scheduled for 3 pm.

Differences on the draft decisions in all five possible deliverables including the WTO's response to the pandemic, particularly the TRIPS component, fisheries subsidies, agriculture, WTO reforms, and the moratorium on levying customs duties on electronic transmissions, are yet to be resolved despite round-the-clock small-group and "green room" meetings, said people, who asked not to be identified.

There is also talk of extending the conference by two days, as hours of discussions on each deliverable show lack of convergence on a few issues in each area.

The situation, comparable to the WTO's tenth ministerial conference (MC10) held in Nairobi, Kenya, in December 2015, on grounds that everyone seems to be waiting for someone to go first, doesn't look terrific, said a person, who preferred not to be quoted.

Following the reports delivered by the facilitators on the fisheries subsidies negotiations, agriculture, the WTO response to the pandemic, including the TRIPS component, WTO reforms, and the e-commerce moratorium, the central message that appears to be emerging is that mixed pressures in each area have led to stymieing the flow of discussions.

On agriculture, the United States has proposed a new text on further strengthening the textual language in the draft text so as to conclude an agreement at the 13th ministerial conference, said people, who asked not to be quoted.

If the proposal by the US and a group of countries were to be accepted, the chances of concluding the permanent solution on public stockholding (PSH) programs for food security may never materialize, said a developing country trade envoy.

However, India, Indonesia, Sri Lanka, and Pakistan have reiterated their demand for the permanent solution for PSH programs in the small-group meetings on 14 June, said people familiar with the development.

FISHERIES SUBSIDIES

The facilitator on the fisheries subsidies negotiations, Trade Minister Mr Damien O'Connor of New Zealand, who seemed to have held more than 60 bilateral meetings and around 5 or six small-group meetings, apparently said he remains optimistic despite continued differences on a small set of issues.

The facilitator is understood to have informed members that the text is stable with delicate balance and any attempt to introduce changes could upset that balance.

Mr O'Connor said differences on a small set of issues raised by some members with figures go outside the current ranges.

It appears that issues like territoriality, forced labour in the fisheries sector, and even non-specific fuel subsidies still lacked convergence.

During one of the small-group meetings late Monday evening, the US, the EU, and Australia among others came down heavily on special and differential treatment (S&DT) provisions, as demanded by India, Indonesia, and Sri Lanka among others.

The US, the EU, and Australia apparently indicated that they cannot accept enhanced S&DT beyond a period of 7 years, said people familiar with the discussions.

Meanwhile, in a strong statement, the Indian trade minister, Mr Piyush Goyal, drew attention to the per capita subsidies granted to fishermen in the big subsidizing countries that were mainly responsible for the global depletion of fish stocks, and the developing countries with two-digit per capita subsidies that are continuing to suffer due to the actions of the big subsidizers.

He said that a period of 25 years of S&DT to continue with the subsidies outlined in paragraph 5.1.1 of the chair's text is an imperative to develop the marine sector in his country with commensurate policy space.

Mr Goyal said India is not a distant water fishing nation, suggesting that the chair's text is asymmetrical.

He said "Distant Water Fishing Nations are provided carve-out under the shelter of conservation and management measures in the draft Ministerial text on fisheries subsidies (Article 5.1.1)."

"The transition period of 25 years sought by India is not intended as a permanent carve-out, it is a must-have for us and for other similarly placed non-distant water fishing countries," the Indian minister added.

Mr Goyal said that "without agreeing to the 25-year transition period, it will be impossible for us to finalize the negotiations, as policy space is essential for the long-term sustainable growth and prosperity of our low income fishermen."

He said "exemption" from "disciplines for the low-income or resource-poor or livelihood fishing particularly again for those nations not involved in long distance fishing up to our EEZ (exclusive economic zone), i.e. 200 nautical miles, is highly essential to provide socio-economic security to these vulnerable communities."

India also said it wants a decision on non-specific fuel subsidies, which has been removed from the draft text by the chair of the fisheries subsidies negotiations, Ambassador Santiago Wills of Colombia. +