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Info Service on WTO and Trade Issues (Nov23/01) Geneva, 2 Nov (D. Ravi Kanth) — Many members of the World Trade Organization on 1 November flagged their core priorities for the WTO’s 13th ministerial conference (MC13), to be held in Abu Dhabi in February next year, cautioning that the credibility of the trade body is in the balance if it cannot deliver on the mandated issues in areas like TRIPS, agriculture, development, and reform of the WTO’s dispute settlement system (DSS) among others. At an informal General Council (GC) meeting, trade envoys echoed their divergent priorities for the possible deliverables at MC13. Several members like Indonesia, the Africa Group, Brazil, and others suggested that the credibility of the 164- member trade body will be judged on whether or not it can deliver on the mandated issues, said participants who asked not to be quoted. The Africa Group expressed sharp concern at the GC meeting, saying that it is worried that “the longstanding development issues, particularly multilaterally mandated issues of priority interest to the Africa Group risk being relegated to the periphery and being waylaid or hamstrung by new issues that will dilute or overshadow our development priorities.” Significantly, at the meeting, in a written statement, Indonesia condemned in the strongest terms “the senseless and violent attacks carried out by the occupying power [Israel], especially those targeting innocent civilians and important infrastructure in the Gaza Strip.” It called for “an immediate end to irresponsible actions and atrocities, that disregard international humanitarian law and constitute a blatant violation of human rights principles.” The informal GC meeting was apparently convened to discuss the logistics and the process for the next four months, but it soon became a meeting for trade envoys to echo their priorities and substantive issues. At the end, there was little consensus on the way forward on both process/logistics as well as on the substantive issues that were raised again despite the recent Senior Officials Meeting (SOM), a development that seems to have caused disappointment to the DG, said participants, who asked not to be quoted. On the issue of process/logistics, the United States apparently suggested the need to convene another two-day senior officials’ meeting prior to MC13, which is scheduled to take place in Abu Dhabi on 26-29 February 2024. The US is also understood to have said that there should be clarity on the dates to ensure ministers’ participation and stay in Abu Dhabi, implying that a last-minute extension of the event, as had happened at the WTO’s 12th ministerial conference (MC12), held in Geneva last June, must be avoided, said participants, who asked not to be quoted. Several trade ministers, including the US Trade Representative, Ambassador Katherine Tai, and the Chinese trade minister are understood to have left well before the concluding session at MC12, said participants, who asked not to be quoted. At the informal GC meeting, China said that it supports the idea shared by the US and Australia for giving two days to senior officials to discuss key issues so as to “de-dramatize the Ministerial Conference.” India and several other countries appear to have concurred with the US suggestion for convening a SOM on 24-25 February 2024. The European Union appears to have not agreed to the proposal of holding another SOM prior to the actual ministerial meeting, suggesting that ministers should be left enough time to host their bilateral and other meetings, said participants, who asked not to be quoted. China apparently argued for predictability in terms of the actual dates for convening and concluding MC13. It called for starting the formal discussions on the MC13 Ministerial Declaration. NEED FOR ENHANCED TRANSPARENCY AT MC13 Several countries called for enhanced transparency at MC13, particularly in the small group or other such meetings that are expected to be held in Abu Dhabi. It appears that the trade envoy from Mauritius said that at least participants knew where the meetings were held during MC12 in Geneva, but MC13 could pose several difficulties for participants if they are kept in the dark as to where the meetings are being held during MC13, said participants, who asked not to be quoted. Several members, including India, said that the outcomes on the MC13 deliverables should be decided in Geneva so that countries are not taken by surprise at the ministerial conference, said participants who asked not to be q uoted. DG “IRKED” BY COMMENTS Apparently, several comments made at the informal GC meeting on the issue of logistics as well as on the substantive issues made the WTO Director-General, Ms Ngozi Okonjo-Iweala, express her disappointment at the end of the meeting. She listed out past ministerial meetings that were extended beyond the last day, said participants familiar with the discussions. Despite her remarks at the meeting that “with about four months to MC13, every day must count to effectively utilize the political guidance and support we sought from senior officials and ministers to substantially advance our work towards concrete results at MC13,” the DG seemed visibly upset that members had read out their respective priorities for possible deliverables at the meeting, said participants, who asked not to be quoted. Ms Okonjo-Iweala, however, did not suggest what would constitute concrete deliverables that ought to be achieved at MC13, said participants, who asked not to be quoted. The chair of the WTO’s General Council, Ambassador Athaliah Lesiba Molokomme of Botswana, highlighted “reforms” as the top priority, as well as a “reform ministerial”, including the seemingly controversial “reform by doing” package. CALLS FOR DELIVERABLES ON MANDATED ISSUES Many developing countries, including Indonesia, India, the Africa Group, and Brazil among others listed their respective priorities to be addressed at MC13. On dispute settlement reform, China underscored the need for accelerating work on the current dual tracks. It said, “On one hand, members should make necessary improvements on the already-good draft so that a stable text on the less controversial issues could be reached soon.” On the other hand, said China, “focused discussions should be conducted on the more contentious issues, in particular appeal review mechanism, with a view to finding landing zones that could address the interests of all members. Pragmatism and flexibility are the key words in this solution-sought process.” In a strong statement issued at the meeting, Indonesia said dispute settlement reform must ensure “the restoration of an independent, impartial, and two-tier dispute settlement system with the functioning of the Appellate Body.” It raised concerns about the informal discussions on dispute settlement reform, suggesting that developing countries and LDCs with small delegations cannot effectively and meaningfully participate in the discussions. India also called for credible reform of the DSS (dispute settlement system), including the restoration of the two-tier DSS. The Africa Group said somewhat categorically that it prioritizes “the restoration of a two-tier DSS that is accessible to all and as articulated in our submissions and previous statements.” The Africa Group expressed sharp concern on what it called “the increasing informalisation of the WTO and processes”, cautioning that it “has a dire negative impact on the ability of Africa Group delegations to fully participate in key substantive discussions and decision-making effectively and meaningfully.” TRIPS Indonesia said it aligns with the statement of South Africa, India, and all the co-sponsors of the original TRIPS waiver proposal (IP/C/W/669). It expressed concern over the delay concerning lack of agreement on paragraph eight of the MC12 Ministerial Decision on the TRIPS Agreement, which is mandated to be extended to diagnostics and therapeutics within six months after MC12. Indonesia said, “it is time for the WTO to decide, once and for all, whether WTO can contribute to solving the issue of access, availability and affordability of therapeutics and diagnostics products for COVID-19.” More importantly, “Concluding this issue will not only restore the credibility of WTO as an institution that caters to global cause and common goods, but also, to complement and support the work done by WHO, especially related to pandemic preparedness,” Indonesia said. “The longer we wait, the less hope remains for the world to survive another unprecedented pandemic, especially for people residing in developing members and LDCs,” Indonesia said. India and several other developing countries also emphasized that there should be an outcome on paragraph eight prior to MC13. The Africa Group said that the extension of the MC12 TRIPS Decision in paragraph eight must be concluded by the December General Council meeting. WTO REFORM On WTO reform, Indonesia said that the much-emphasized WTO reform “must address imbalances in existing WTO Agreements” while ensuring “adequate policy space for developing countries and LDCs to implement them.” Indonesia said: “For us, a durable, long-lasting reform can only be achieved when all members can provide contribution and share their interests in an equal manner.” The Africa Group called for a “Development Perspective on Institutional Reforms”, while outlining “core principles that are indispensable for a truly multilateral trading system, such as inclusivity, transparency and development, the preservation of consensus decision-making in line with GATT Article 9, the safeguarding and preservation of special and differential treatment, and preservation of the Member-driven character of the WTO.” The Africa Group also outlined “minimum standards of conduct that must be upheld within WTO bodies, including in the build-up to and during Ministerial Conferences.” “Although we will not list them all in the interests of time, they do all remain fundamentally important to us.” India and other countries also called for preserving the core principles of the Marrakesh Agreement in the proposed WTO reforms. AGRICULTURE For many developing and least-developed countries, credible deliverables on agriculture are imperative at MC13. Apparently, Brazil cautioned that without an outcome on agriculture reform based on Article 20 of the Agreement on Agriculture, MC13 will not go well. Brazil, which leads the Latin American Group, had already called for holistic reform of agriculture based on Article 20. Indonesia said, “True global food security requires nations to ensure their own domestic food security,” a position also shared by India. Indonesia said that “one outstanding issue that remains a priority for Indonesia is agriculture, with a focus on achieving a lasting solution to the Public Stockholding (PSH) issue.” “Failing to progress on the issue of PSH would undermine our response to current and future food crises,” Indonesia said. India also issued a strong statement on the need to agree on an outcome on PSH, which is one of New Delhi’s top priorities. The Africa Group called for “a substantive and meaningful package in agriculture that addresses both the systemic causes of food insecurity as well as the immediate challenges that the NFIDCs and LDCs among us continue to face in the context of ongoing global or geo-economic and geo-political headwinds.” “With regards to the former, the urgency of arresting and correcting the imbalances stemming from the Agreement on Agriculture as relates to subsidies, an outcome on PSH, on SSM and on Cotton remain priorities of the Africa Group,” it said. DEVELOPMENT Many developing countries upped the ante on the issue of development at the informal GC meeting. The Africa Group said that its key priorities that would “constitute the minimum development package prior to or at MC13 must include: a substantive outcome on LDC Graduation, the 10 G90 ASPs [Agreement-specific proposals], an extension of the TRIPS Decision (to be clear, this must be concluded by the December General Council), the development-dimension of the Work Programme on Electronic Commerce (WPEC); and Policy Space for Industrial Development.” “We once more reiterate that the issue of policy space for industrialization is an urgent development priority for the Africa Group on which we expect more concrete outcomes than a commitment to deliberate.” China called for an outcome on the G90 proposal on special and differential treatment. China said, “the Investment Facilitation for Development (IFD) is also a development-related issue,” adding that the IFD Agreement deserves a place in the WTO. On industrial policy, China said before reaching common understanding on what to discuss, how to discuss, and what the expected outcome would be, it cannot support “a so-called dedicated space” by MC13, especially with the worrisome message sent by some members very recently at a certain forum.+
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