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TWN
Info Service on WTO and Trade Issues (Jul23/11) Geneva, 21 Jul (D. Ravi Kanth) — Members of the World Trade Organization on 20 July highlighted differing priority issues to be taken up at the upcoming Senior Officials meeting to be held on 23-24 October, with a majority of members veering around the second wave of negotiations on fisheries subsidies, WTO reform including reform of the WTO dispute settlement system, and agriculture in which a large majority of developing countries are demanding a permanent solution for public stockholding programs for food security, said people familiar with the discussions. At a formal Doha Trade Negotiations Committee (TNC)/informal heads of delegation (HoD) meeting on 20 July, China’s trade envoy, Ambassador Li Chenggang, said unambiguously that “For MC13 [the WTO’s 13th ministerial conference, to be held in Abu Dhabi, in February 2024], our priority issues should be those with clear MC12 [WTO’s 12th ministerial conference held last June] mandate and urgently needed by people, including DS (Dispute Settlement) reform, Fisheries Subsidies, food security, development, etc.” His Australian counterpart is understood to have spoken about agriculture, particularly reduction of domestic support, fisheries subsidies, and WTO reform, said people familiar with the discussions. India apparently raised four issues of highest priority for MC13, including a permanent solution for public stockholding (PSH) programs for food security, fisheries subsidies anchored on the principle of common but differentiated responsibilities, reform of the WTO dispute settlement system, and termination of the current moratorium on customs duties on electronic transmissions. Indonesia, the coordinator of the Group of 33 (G33) developing countries, highlighted the permanent solution for public stockholding programs for food security, the special safeguard mechanism (SSM), fisheries subsidies, extending the MC12 Ministerial Decision on the TRIPS Agreement to COVID-19 diagnostics and therapeutics, and e-commerce among others. The African Group raised several issues concerning development, including the G90’s ten Agreement-specific proposals seeking improvements in special and differential treatment provisions, agriculture including the PSH issue, as well as institutional issues in the reform of the WTO, said people, who asked not to be quoted. The least-developed countries (LDCs) flagged the issue of LDC graduation, agriculture focused on PSH, and the TRIPS issues, said people, who asked not to be quoted. STATEMENTS BY MEMBERS At the formal TNC/HoD meeting, China’s trade envoy, Ambassador Li Chenggang, said that given the frank and solution-oriented discussions and limited time-frame, members must continue “to work hard and focus on the remaining core issues with pragmatic spirits, so that we could move to the text drafting stage after the summer break and finish text-based discussions by the end of 2023.” Indonesia’s trade envoy Ambassador Dandy Iswara said that “our utmost priority is to make the Appellate Body operational as mandated by the DSU (Dispute Settlement Understanding).” He said: “This issue can be resolved in a separate manner, and de-linked with the discussion on the dispute settlement reform as a whole.” The European Union’s trade envoy, Ambassador Joao Aguiar Machado, said: “Restoring a well and fully functioning dispute settlement system in the WTO is the top priority.” He said members “must aim for a landing zone agreement on DSU reform as a deliverable at MC13 and we cannot miss this political opportunity.” He said: “The European Union is keen to see ongoing discussions continue in a result-oriented manner and start a text-based discussion after the summer”. He said that by the time of the Senior Officials meeting in October in Geneva, “technical discussions on the text should be sufficiently advanced to allow for political discussions.” FISHERIES SUBSIDIES On the issue of fisheries subsidies, China said that “with the deepened understanding among members through the well-organized four Fish Weeks, we are looking forward to receiving the new chair’s text, and having text- based negotiation starting from September.” China called on the chair of the Doha fisheries subsidies negotiations, Ambassador Einar Gunnarsson of Iceland, to adhere to “the mandate, and establishing fair and balanced discipline is of vital importance.” China said: “Sustainability criteria should be the core principle for the disciplines, in particular with regard to the subsidies for the fishing activities beyond members’ jurisdiction.” Indonesia issued a strong statement on fisheries subsidies, saying that, “There is a wide call for the agreement to focus on the need to discipline large-scale industrial fishing, who [are] undoubtedly responsible for the depletion of global fish stocks.” The Indonesian trade envoy emphasized that, “It is also important to ensure effective and appropriate SDT (special and differential treatment) as an integral part of the comprehensive agreement.” Indonesia said that it had recently submitted document RD/TN/RL/172, which is its attempt at bridging the differing views through an alternative approach. The EU merely urged all members to complete their ratification of the phase 1 of the Fisheries Subsidies Agreement so that it can enter into force by MC13. FOOD SECURITY On the issue of food security, China said, “In order to reach realistic and substantial outcomes in the next few months, members should be encouraged to contribute with specific ideas and proposals.” Indonesia, which is coordinating the G33 group, said categorically that “it is important to expedite our work and make real efforts to bridge the persisting gap on this issue, especially with regard to PSH”. Indonesia said that “along with proponents, [we] continue to see the importance of text-based negotiations and this should be based on document Job/GC/ 229.” It added that, “This document represents the interests of 80 Members and more than 80% of the world’s population.” On agriculture, the EU expressed concern that “with a few months to go there is still no convergence and no clear candidates for deliverables.” It urged “all Members to step up engagement on selected issues.” The EU’s trade envoy said, “It is clear that not everything will be possible, but it is important to look for deliverables, which strengthen the agricultural pillar and support WTO reform.” The EU said MC13 “should provide guidance on reforming trade-distorting domestic support, including for cotton, as well as on the permanent solution for PSH, given their impact on food security. MC13 could also help provide guidance on reforms of agricultural policies taking account of both trade distortion and environmental sustainability.” The EU also said, “The current food security context requires us to look at a possible food security deliverable that could include advancement on export restrictions and transparency across all pillars.” On development, the EU said, “we are expecting graduated LDCs’ smooth transition can be early harvested.” As regards the G90’s ten Agreement-specific proposals, the EU said that”if we are unable to reach consensus on all 10 deliverables, at least we should harvest some of them.” THE WTO DG’S CALL Earlier on in the meeting, the chairs of the various Doha negotiating bodies presented their assessments, with the chair of the Doha fisheries subsidies negotiations expressing confidence over the manner in which the negotiations are proceeding in his dossier. The chair of the Doha agriculture negotiations also delivered a rather optimistic statement on the recent initiatives being taken up in the negotiations, suggesting that the discussions will be resumed in September on the major issues. The chair of the Doha trade and development negotiating body, however, said that work on the G90’s ten Agreement-specific proposals will be accelerated after the summer break, suggesting that a greater degree of engagement is needed. Following the update reports from the chairs of the Doha negotiating bodies, in a detailed statement at the meeting, the WTO Director-General, Ms Ngozi Okonjo-Iweala, touched largely on the process-related issues for the upcoming Senior Officials meeting on 23-24 October, which is being treated as a stocktaking meeting on what issues could be targeted at MC13. She expects the senior officials to provide the “necessary political push” and “help solve specific problems” to advance work in preparation for the ministerial conference. “If we get this right, it will be a boost for a successful MC13,” Ms Okonjo-Iweala said. The DG noted that the Senior Officials meeting will provide an opportunity “to take stock of where we are” and identify “the challenges, gaps and opportunities.” She laid out the ground rules for the Senior Officials meeting, insisting that capital-based government officials come to Geneva not with “well-known positions”, but with “realistic expectations of what is truly doable” for MC13. Despite her intense lobbying efforts with capitals for ratifying the partial Fisheries Subsidies Agreement, the DG said that she has received “14 instruments of acceptance, putting us close to one-third of what we need for the Agreement to enter into force by MC13”. She said that the ratification by the 14 members, including the EU, which comprises 27 members, “is very encouraging progress, and I truly believe we can do it. … These ratifications send an important signal that members are willing to get this done.” Two-thirds of WTO members need to formally accept the Protocol of the Fisheries Subsidies Agreement for it to come into force. Meanwhile, the WTO deputy director-general Ms Anabel Gonzalez, who is allegedly close to the DG, is apparently leaving her job for greener pastures, said a trade envoy, who asked not to be quoted. +
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