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TWN Info Service on Sustainable Agriculture
23 November 2021
Third World Network


Differences persist at WTO on “deliverables” for MC12
Published in SUNS #9465 dated 23 November 2021

Geneva, 22 Nov (D. Ravi Kanth) – With less than eight days left for the WTO’s 12th ministerial conference (MC12), differences persist among members on the issues of fisheries subsidies, agriculture, the WTO’s response to the COVID-19 pandemic, as well as other issues, with “take-it-or-leave-it” decisions likely to be foisted on the developing countries, said people familiar with the negotiations.

At the Trade Negotiations Committee (TNC) meeting on 19 November, the reports presented by the chairs of the Doha fisheries subsidies negotiations, agriculture, and trade and development suggested that there is little progress on the proposed “deliverables” in these areas at MC12, said people, who asked not to be quoted.

The WTO director-general Ms Ngozi Okonjo-Iweala appealed to members to show flexibility for outcomes to be delivered at MC12, which is set to begin in Geneva on 30 November.

She appears to be convinced that whatever outcomes are finalized on all major issues would be beneficial to the multilateral trading system, notwithstanding their potential adverse impacts on the multilateral, inter-governmental organization, as well as the WTO’s rule-book, said a person, who asked not to be quoted.

Apparently, the DG appears to have indicated that MC12 could be extended beyond its deadline for conclusion on 3 December, perhaps expecting that there would be some hard fights on several issues, said a person, after attending the TNC meeting.

In their statements, the chairs of the negotiations on fisheries subsidies, agriculture, trade and development, in particular on strengthening special and differential treatment (S&DT), and in various other committees, offered their respective downbeat assessments, including the possibility of some new texts emerging on both fisheries subsidies and agriculture.

REPORT BY THE FISHERIES CHAIR

The chair of the Doha fisheries subsidies negotiations, Ambassador Santiago Wills from Colombia, said “there are too many areas where progress remains elusive, with a large number of textual suggestions often going in opposite directions and some implying a restructuring of entire Articles.”

“Given the inter-linkages of issues in the text, major proposed changes in one area would require corresponding changes in other areas of the text,” he said, suggesting that “this could end up destabilizing the entire text and we are almost out of time.”

He concluded that “while we are going to work very hard over the weekend and while my intention is to send a text to the General Council next week, that will not signal the end of our pre-MC12 work.”

However, many members and coalitions of countries apparently reiterated their positions on these issues, calling for balanced outcomes that would address their key concerns, said people, who asked not to be quoted.

China’s trade envoy Ambassador Li Chenggang said that “many members have refrained from introducing, or at least insisting on, controversial issues in the discussion of the outcome document”.

The draft outcome document for MC12 issued by the General Council chair, Ambassador Dacio Castillo from Honduras, includes several controversial issues in brackets, implying that there is no agreement yet on any of the issues.

Commenting on the WTO’s response to the pandemic, the Chinese trade envoy said that “a multilateral outcome is critical,” emphasizing that “China sees the importance to have a declaration not only on future actions, but also immediate response. Further, we do hope the concrete outcome on the TRIPS waiver could be delivered.”

China said the chair’s second revised draft text on fisheries subsidies “is a good basis for success”, expressing its readiness to work on the text to reduce the brackets to a minimum.

The Chinese envoy said a draft ministerial statement on the informal plurilateral Joint Statement Initiative (JSI) on investment facilitation was adopted on 18 November.

He also informed members about 59 members having signed the ministerial statement on plastics pollution and environmentally sustainable plastics trade.

STATE OF PLAY IN FISHERIES SUBSIDIES TALKS

Attempts to produce a clean text on fisheries subsidies continued at the WTO on 21 November, with sharp differences having emerged on fuel subsidies, special and differential treatment in the overcapacity and overfishing (OC&OF) pillar, the IUU (illegal, unreported, and unregulated) fishing pillar, and the dispute settlement provisions among others, said people familiar with the development.

The chair of the Doha fisheries subsidies negotiations, Ambassador Wills, has intensified the negotiations, but differences remain on the crucial OC&OF pillar where the chair has allegedly provided specific carve-outs to the big subsidizers engaged in industrial-scale fishing that has caused the global depletion of fish stocks.

However, the chair does not seem to have provided symmetrical treatment to the developing countries seeking policy space and robust special and differential treatment as compared to the apparent “kid glove” treatment being accorded to the big subsidizers such as China, the European Union, the United States, Japan, Canada, Korea, and Chinese Taipei among others, said people familiar with the development.

The developing countries including India, Indonesia, South Africa, Nigeria, Pakistan, and several other countries demanded equity between the big subsidizers who caused the problem of global depletion of fish stocks, and those countries that did not cause the rapid depletion of fish stocks, through provision of adequate S&DT based on the principle of common but differentiated responsibilities, as well as the UN Sustainable Development Goal (SDG) 14.6 and the Buenos Aires ministerial decision of 2017, said people, who asked not to be quoted.

In the fast-moving negotiations to produce a clean text with limited brackets, it remains to be seen whether these central issues in the OC&OF pillar will be adequately addressed as per the UN SDG 14.6 and the Buenos Aires ministerial decision, said people, who asked not to be quoted.

The Buenos Aires ministerial decision states: “Building on the progress made since the 10th Ministerial Conference as reflected in documents TN/RL/W/274/Rev.2, RD/TN/RL/29/Rev.3, Members agree to continue to engage constructively in the fisheries subsidies negotiations, with a view to adopting, by the Ministerial Conference in 2019, an agreement on comprehensive and effective disciplines that prohibit certain forms of fisheries subsidies that contribute to overcapacity and overfishing, and eliminate subsidies that contribute to IUU-fishing recognizing that appropriate and effective special and differential treatment for developing country Members and least developed country Members should be an integral part of these negotiations. Members re-commit to implementation of existing notification obligations under Article 25.3 of the Agreement on Subsidies and Countervailing Measures thus strengthening transparency with respect to fisheries subsidies.”

At present, it appears that the brackets around Articles 8 and 9 concerning transparency and notifications, and institutional arrangements in the chair’s second revised draft text issued on 8 November (TN/RL/W/276/Rev.2) are largely being removed, said a negotiator, who asked not to be quoted.

However, the brackets around Article 5, especially Article 5.4 concerning S&DT, Article 3.8 concerning the S&DT provisions, and dispute settlement remain, the negotiator added.

CHINA’S TEXTUAL SUGGESTIONS

On 19 November, China introduced textual suggestions in Article 5.2 on subsidies provided to “fishing or fishing- related activities outside of the jurisdiction of a coastal Member [or a coastal non-Member] and outside the competence of a relevant RFMO/A.”

Essentially, China wants fishing vessels to be subjected to “effective regulation, monitor, surveillance and control by the subsidizing members, and that the requirements under Article 5.1.1 (where all the listed prohibited subsidies are exempted for the big subsidizers) are met”.

China proposed the following language to be inserted in the final text to be issued by the chair: “5.2.1 A subsidy is not inconsistent with Article 5.2 if the subsidizing member demonstrates that the subsidies are not listed in subparagraphs under Article 5.1 and not designed to increase fishing capacity, fishing or fishing-related activities, that the fishing vessels are subject to effective regulation, monitor, surveillance and control by the subsidizing members, and that the requirements under Article 5.1.1 are met.”

China also proposed an addition to Article 8.4(a), which states, “a Member may only invoke Article 4.3, Article 5.1.1, or Article 5.4 in respect of subsidies which it has notified to the [Committee] under Article 25 of the SCM Agreement and Article 8.1 of this [Instrument].”

That addition, according to China, is that “a Member may only invoke Article 5.2.1 if the Member has provided the information called for in Articles 8.1(b)(i) and 8.1(b)(ii) and the demonstration of effective regulation, monitor, surveillance and control of the fishing vessels concerned.”

 


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