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Info Service on WTO and Trade Issues (Jun22/16) Geneva, 13 Jun (D. Ravi Kanth) — Trade ministers on 12 June voiced divergent views at the World Trade Organization as to what the WTO should address in the face of worsening challenges like the COVID-19 pandemic, the global food crisis, and the climate change crisis. Many countries also sought the restoration of the Appellate Body to ensure the continuation of the impartial and independent enforcement function of the WTO. In a three-minute intervention at the plenary meeting of the WTO’s 12th Ministerial Conference (MC12), China’s trade minister, Mr Wang Wentao, espoused three major priorities. They are: (1) WTO needs to promote steady recovery of the world economy due to the pandemic and other factors; (2) “the WTO reform should both accommodate the changing times and meet the needs of development”, including advancing globalization and reinforce the WTO’s functions and not diminish them by restoring the Appellate Body; and (3) China will continue to safeguard the multilateral trading system with concrete actions. India’s trade minister, Mr Piyush Goyal, said that the WTO should embrace a “people-first trade approach”, arguing that the “Covid-19 pandemic has reinforced once again the need and efficacy of food stockholding for public good.” The Indian minister said the permanent solution for public stockholding programs for food security should be the top-most priority at MC12, adding that “nothing is more important than this for the people of the world.” He highlighted the “One Earth One Health” policy, calling for global solidarity and collective action. “Unfortunately, the WTO could not respond with alacrity” and “we have let down the people of the LDCs and developing countries,” he said. “The rich countries need to introspect!” Mr Goyal said, stressing that “we need to bow our heads in shame for our inability to respond to the pandemic in time.” On fisheries subsidies, he said, “fishing by my country’s traditional fishermen and women is to address hunger, poverty, food and nutrition insecurity, which is largely sustenance fishing.” Mr Goyal said “those nations responsible for depleted fish-stock should assume responsibility, having exploited the oceans for far too long by giving subsidies.” “Fisheries are global public commons and should be shared equitably considering the past and being mindful of future to strike the right balance on the principles of common but differentiated responsibility,” Mr Goyal emphasized. “WTO reform is necessary, keeping development at its core, to be decided through a precise, transparent and inclusive process, upholding the basic principles and objectives of the WTO, particularly consensus-based decision making and S&DT. India strongly believes that the WTO should not negotiate rules on non-trade-related subjects like climate change, gender, etc. which legitimately fall within the domain of other inter-governmental organisations.” Indonesia’s trade minister, Mr Muhammad Lutfi, said that members need to “improve the existing agreements, to address trade imbalances we have been confronting for decades.” “Likewise, we demand to update the WTO rulebooks to fit current trade realities,” Indonesia said, adding that “we must demonstrate that we have an organization that is part of the solution to address multiple crises of our time, in the economy, environment, health, and security.” “It is our responsibility as trade Ministers to solve longstanding issues, as set by all of the WTO members,” the Indonesian minister said, arguing that Indonesia would like “to contribute to this process with a view to advance the agriculture negotiations.” “Given the escalating problem of food [insecurity], we need a policy space more than ever to tackle imbalances in the global trade of agriculture,” the Indonesian minister emphasized. He emphasized the urgency of “members to address crucial issues, including food security, livelihood security, and rural development,” arguing that “we recall our commitment to achieving permanent solutions for Public Stockholding for Food Security Purposes and Special Safeguard Mechanism.” “And to complete this process, we must put the centrality of development and the special and differential treatment at the core of this work,” trade minister Mr Lutfi said. As regards fisheries subsidies, the Indonesian minister said that “we agree that the fundamental principle of the fisheries discipline is to ensure a significant reduction of harmful subsidies, which contribute to overfishing, overcapacity, and IUU Fishing.” “However, most developing countries are far from achieving a level playing field of government support in the fisheries sector,” Mr Lutfi said, adding that “it is necessary to balance the current text that takes into account common but differentiated responsibility.” “Discipline on fisheries subsidies should not abandon the development objective of countries that rely on artisanal and small-scale fisheries for local economy and poverty alleviation,” the Indonesian minister emphasized. Malaysia’s trade minister Dato’ Seri Mohamed Azmin Bin Ali, emphasized that “even as the world is transitioning towards endemicity, we are now presented with a new set of global economic, trade and related issues that warrants urgent and decisive action, particularly, with regard to the imperative of accelerating public health, trade linkages and economic recovery.” Mr Azmin Bin Ali said members should seize this opportunity, adding that “WTO holds the key to accomplish this by providing stability, security and predictability to conduct trade.” The Malaysian trade minister said “MC12 serves as the right platform to reinforce our multilateral cooperation.” He outlined five key challenges: “First, Malaysia welcomes the initiative of having a multilateral outcome on the WTO response to the pandemic, particularly in developing a suitable framework to mitigate the adverse impacts of the pandemic and to be better prepared for future contingencies … In this regard, flexibility and adaptability with regard to the application of trade rules is vital.” “Effective management of the pandemic requires fair, equitable, affordable and accessible vaccines for all,” he said, adding that secondly, “we must not allow the current crisis to be compounded with another tragedy, namely, a global food crisis.” Thirdly, the Malaysian minister said “we need to re-vitalize the negotiating pillars of the WTO by delivering an outcome in agriculture and fisheries subsidies.” Malaysia also called for resolving the impasse at the WTO’s dispute settlement system over the appointment of Appellate Body members. + ——————————————————————————————————————————— WTO:
Ministers voice divergent positions on key issues in small-group meetings Geneva, 13 Jun (D. Ravi Kanth) – Trade ministers who participated in small-group meetings on 12 June voiced their divergent positions on WTO reform, agriculture, fisheries subsidies, and the WTO response to the pandemic among others, said people familiar with the meetings. In small-group meetings of select trade ministers, India apparently raised a flag against the agriculture chair’s draft text on the permanent solution for public stockholding (PSH) programs for food security, suggesting that this issue was already decided. It expressed concern that the issue is now being linked to the issue of domestic support, said people, who asked not to be quoted. The Indian trade minister Mr Piyush Goyal suggested that it is absurd to attach new conditions to the permanent solution, which were not part of the mandate, said people, who asked not to be quoted. Mr Goyal provided figures about the use of PSH programs. He opposed the draft decision on the World Food Programme (WFP) food purchases that calls on countries to remove export restrictions. The Indian minister said the WFP’s operations of $2 billion are insignificant, suggesting that government-to- government purchases are much higher, according to people, who asked not to be quoted. Indonesia supported the permanent solution for PSH programs, said people, who asked not to be quoted. Apparently, Tanzania, which opposed the draft decision concerning the WFP last week, has now accepted it, according to the facilitator on this issue, Ms Betty Maina, Kenya’s cabinet secretary for industrialization, trade and enterprise development. A former Kenyan trade official from Nairobi told SUNS that Ms Maina has no knowledge about agriculture, suggesting that it is the wrong choice. Ms Maina is being assisted by the controversial chair of the Doha agriculture negotiations, Ambassador Gloria Abraham Peralta of Costa Rica, said trade negotiators. The United States apparently insisted on parity between the work program and modalities for domestic support and market access, said people, who asked not to be quoted. Trade ministers from the Cairns Group of farm-exporting countries said that they are not opposed to the permanent solution but that several questions they had raised have not been answered, the Uruguayan trade minister said. The trade envoy of Thailand, which is a Cairns Group member, said domestic support is the key to resolve many issues in agriculture. India’s trade minister Mr Goyal provided statistics on how PSH programs are being implemented in several countries, and explained why a permanent solution must be concluded at MC12. A senior capital-based trade official from Jakarta supported India’s call for the permanent solution for PSH programs. Several countries also supported the draft decision on an agriculture work program and on the WFP, as well as the draft declaration on trade and food security, said people, who asked not to be quoted. FISHERIES SUBSIDIES On fisheries subsidies, differences surfaced on expected lines, with the US Trade Representative Ambassador Katherine Tai apparently saying that special and differential treatment (S&DT) has been provided in IUU (illegal, unreported, and unregulated) fishing, overfished stocks, and in the overcapacity and overfishing pillar, said people familiar with the development. The EU’s proposal of a duration of 7 years for S&DT or until 2030 was incorporated by the chair of the fisheries subsidies negotiations, Ambassador Santiago Wills of Colombia, while ignoring the demands raised by India, Indonesia, and Sri Lanka among others. India argued that the period of 25 years for special and differential treatment to ensure policy guidance is “non-negotiable”, according to people present at the meeting. Indonesia and Morocco also supported India’s demand, saying it is important for millions of their fishermen/women engaged in fishing-related activities. India and Indonesia are understood to have flagged the issue of fishing activities for developing countries to be extended till the 200 nautical mile limit, said people familiar with the development. Several members supported the chair’s text and his explanation of the main elements, but some other members seem to have severely questioned the structure as well as the alleged “biases” in the text, said people familiar with the development. WTO REFORMS Ministers also differed on the perspectives as well as the language proposed in the document tabled by the General Council (GC) chair Ambassador Didier Chambovey of Switzerland. Opposing the chair’s formulation, India said that it wants a rigorous vetting of all the proposals by the WTO’s General Council and all subsidiary bodies. Differences also manifested in the WTO’s response to the pandemic and the TRIPS waiver, SUNS was told. If the developments on day one of MC12 are any indication, the following three or four days could prove to be challenging in terms of progress in all areas, said people, who asked not to be quoted. +
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