|
||
|
TWN
Info Service on WTO and Trade Issues (May22/15)
WTO DG appears focused on "Plan B" declarations at MC12 Geneva, 16 May (D. Ravi Kanth) - Amidst the unlikely prospects for concluding decisions on several major issues at the upcoming World Trade Organization' s 12th ministerial conference (MC12), the WTO Director-General, Ms Ngozi Okonjo-Iweala, appears to be working quietly on some "Plan B" declarations on issues such as a package of measures for graduating least-developed countries and on food security, said people familiar with the development. Given that the decisions on these issues may not come through as per their current proposals due to opposition from the major developed and some developing countries, the "Plan B" declarations/decisions could create a "miasma" at M C12, said people familiar with the development. However, in reality, the "Plan B" declarations/decisions would only be tantamount to "kicking the can down the road", perhaps until the WTO's 13th ministerial conference that is scheduled to take place sometime in 2024, said people, who asked not to be quoted. At the WTO's General Council (GC) meeting on 9-10 May, it became clear that outcomes on several issues are going to be difficult to achieve at MC12. Issues that are likely to be difficult to conclude include an interim arrangement for the continuation of the LDCs' unilateral trade preferences for the graduate d LDCs for a period of six to nine years; the much-publicized decision on food security; and the permanent solution for public stockholding (PSH) programs for food security. THE LDC PROPOSAL In their proposal (WT/GC/W/829), the LDCs stated unambiguously that "in December 2020, the LDC Group circulated a draft Ministerial decision on "Trade-related Challenges of the LDCs and Way Forward" (WT/GC/ W/807)." The LDCs argued that "as envisaged in the UN resolutions, the text proposed a formal smooth transition procedure in the WTO, by extending all support measures benefitting LDCs for a period of twelve years after their graduation." "The draft decision also called on Members granting unilateral trade preferences to LDCs to have procedures in place for extending and gradually phasing out their preferential market access scheme after LDC graduation," the LDCs said, adding that their submission has received support from a wide range of WTO Members and remains firmly on the table. It is against this backdrop that the LDCs said that "in light of the limited amount of time available before the 12th WTO Ministerial Conference, it may, however, be difficult to achieve a final consensus on such a package." According to the LDCs, "given the critical importance of this topic and the need to achieve concrete deliverables at MC12, the LDC Group is proposing an interim arrangement for smooth LDC transition by calling on Members granting LDCs unilateral trade preferences, to have procedures in place to extend and gradually phase out their preferential market access scheme for graduated countries over a period of six to nine years." Through the "draft decision", the LDCs said, the Sub-Committee for Least-Developed Countries is to be instructed "to prepare a package of support measures in favour of the LDCs after their graduation and report to the General Council at its first meeting in 2023." The LDCs argued that their proposal "tries to accommodate some of the concerns raised by Members in discussions so far. It clearly states as a principle, however, that any support package must apply automatically, equally, and unconditionally to all graduated LDCs for a uniform period of time after graduation." The LDCs said that agreement on this decision would be an important contribution to remedy the difficult circumstances that graduating LDCs encounter. "It would also represent a concrete contribution of the multilateral trading system t o fostering the advancement of previous UN Resolutions ahead of the UN LDC V Conference scheduled in January 2022, in Doha, Qatar." However, the LDC proposal faced severe opposition from the US and other developed countries at the General Council meeting. The US, for example, said that it cannot agree to any blanket approach and demanded a case-by-case examination, said people, who asked not to be quoted. "PLAN B" OUTCOMES In an apparent attempt to prepare the ground for "Plan B" outcomes, it appears that South Korea has been roped-in to discuss with Bangladesh and Chad, which is the coordinator for the LDCs, on a "smooth transition package in favour of Members Graduating from the LDC [category]." South Korea, in its initiative on the smooth transition package for graduating LDCs, said that "an outcome of a Ministerial Conference would be incomplete if it did not include some tangible measures that address the concerns of Least Developed Countries." Seoul said its "delegation is ready to work constructively with Chad and Bangladesh and other proponents on a deliverable for MC-12 on this subject. " It also highlighted three points regarding the LDC proposal that "we believe might help facilitate convergence." The three points suggested by South Korea include: 1. To instruct the LDC Sub-committee to look at a package of support measures and report to the GC at the latter's first meeting in 2023. Reporting to the first GC next year would be especially apt because it would represent a timely and substantial contribution by the WTO in the run-up to the second part of the 5th LDC Conference scheduled for March next year; 2. The LDC Sub-committee could broaden the scope of discussion relative to what is envisaged in the current proposal, by looking at appropriate periods for extending preferential market access schemes as well. To be sure, duty-free , quota-free (DFQF) schemes are measures unilaterally decided on by Members. But previous WTO ministerial decisions relating to DFQF schemes have helped to catalyze and inform related national decisions. There is little reason why the WTO should not discuss and suggest appropriate time-frames for DFQF extension that would better inform individual national decisions; 3. Building on the second point, Members could flesh out the appropriate extension time-frame of the DFQF scheme by next year's GC, rather than at MC-12, one month from now, as no LDC is scheduled to graduate before December 2023. The interests of LDCs would be better served if the Ministerial Conference instructs the LDC Sub-committee to carefully arrive at a more feasible extension time-frame that willing Members could actually subscribe to. In short, the South Korean initiative effectively postpones any outcome on the interim solution as proposed by the LDCs to next year. Perhaps, it seems to have been made "palatable" to suit the US objections, said a person, who asked not to be quoted. However, it is not clear whether the South Korean LDC initiative will be acceptable to the United States, which opposed the LDC proposal at the GC meeting last week. PSH AND FOOD SECURITY The "Plan B" preparations on the mandated permanent solution for PSH programs and on food security seem to have been "outsourced" to the European Union t o prepare a way out on these two issues, said people who asked not to be quot ed. Apparently, the EU appears to be holding consultations with key members on these two issues, but any likely "Plan B" outcomes in agriculture appear difficult to come by. A large number of developing countries, including India, have demanded that the permanent solution for PSH programs is an imperative at MC12. On the food security proposal tabled by the United Kingdom and supported by 30 other countries, there appears to be considerable opposition from the developing countries, including India and Indonesia among others. INDIA'S INDEFINITE BAN ON WHEAT EXPORTS Meanwhile, India has imposed an indefinite ban on exports of wheat on 13 Ma y. The notification issued by India states that (1) "whereas, there is a sudden spike in the global prices of wheat arising out of many factors, as a result of which food security of India, neighboring and other vulnerable countries is it risk"; and (2) "whereas, the government of India is committed to providing for the food security requirements of India, neighboring and other vulnerable developing countries which are adversely affected by the sudden changes in the global market for wheat and are unable to access adequate wheat supplies". "Therefore," according to the Indian notification, "in order to manage the overall food security of the country and to support the needs of the neighbors and other vulnerable countries," the rules on the export policy on wheat are amended. However, India argued that the export of wheat shall be allowed under the following conditions: A. As a transitional arrangement, export will be allowed in case of shipments where Irrevocable Letter of Credit (ICLC) has been issued on or before the date of the Notification, subject to submission of documentary evidence as prescribed; or B. Export will also be allowed on the basis of permission granted by the Indian government to other countries to meet their food security needs and based o n the request of their governments. Consequently, the "export of wheat" is "prohibited" with immediate effect except for shipments fulfilling the conditions as mentioned above, said India. India has rebuffed criticisms by the G-7 countries against New Delhi's prohibition on wheat exports, saying that it is going to continue with wheat exports to vulnerable countries regardless of the indefinite prohibition.
|
||
