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TWN
Info Service on WTO and Trade Issues (Apr25/03) Geneva, 2 Apr (D. Ravi Kanth) — The World Trade Organization’s Director-General, Ms Ngozi Okonjo-Iweala, on 1 April told members that they are living in “a very uncertain and very difficult time”, while underscoring the need for an outcome in the stalled Doha agriculture negotiations at the WTO’s upcoming 14th ministerial conference (MC14) in Cameroon in March next year, as it “will have tremendous impact on the outside world.” In this regard, the DG also highlighted that “the current food security situation remains alarmingly fragile.” At a meeting of the Doha agriculture negotiating body, also referred to as the Committee on Agriculture in Special Session (CoA-SS), on 1 April, the DG is understood to have said that “as we speak, we don’t even know what sets of tariffs or other issues may be confronting agriculture, what challenges and the notion that we are not able, under the circumstances, to get some results out of these negotiations – is one that will not be well looked upon,” said several farm trade negotiators, who asked not to be quoted. She apparently said that she prefers to look at “opportunities rather than the negative side”, adding that “I guess I have to share both.” Ms Okonjo-Iweala seemingly said that for her, it is a unique opportunity for members to show that they can actually pull off a good effort and result out of these agriculture negotiations. She said she is very confident, and “that’s why I decided to come bright and early to urge you on,” said people familiar with her statement. The DG, however, seemingly remained stoically silent on the issue of reciprocal tariffs to be announced by US President Donald Trump on 2 April that could have a “tremendous impact” on global trade, turning the multilateral trading system “on its head” while forcing countries to enter into a so-called “imperial round” of trade negotiations, said several people who asked not to be quoted. Even her predecessor, Roberto Azevedo of Brazil, apparently conveyed to the former US Trade Representative (USTR), Ambassador Robert Lighthizer, that he will not allow any attempt to undermine Article 1 of the GATT concerning the non-discriminatory most-favoured-nation (MFN) treatment, said a former trade envoy from Asia, who asked not to be quoted. Instead of issuing a political statement on the reciprocal tariffs that are expected to be unveiled by President Trump on 2 April, the DG, who spoke for more than 30 minutes at the meeting of the Doha agriculture negotiating body, apparently did not utter a single word about the likely dangers arising from the US imposition of reciprocal tariffs, said several people, who took part in the meeting. NEW AGRICULTURE CHAIR Also at the meeting on 1 April, members formally appointed Ambassador Ali Sarfraz Hussain of Pakistan as the new chair of the CoA-SS. Ambassador Hussain said, “An outcome at MC14 [to be held in Yaounde, Cameroon, in end-March 2026] should be a pragmatic step forward.” “With limited time remaining, we must concentrate on what is both achievable and truly meaningful,” the chair emphasized. The DG apparently told the new chair that she has some messages to convey to him, urging him to be “thick- skinned” while possessing endless optimism and remaining firm, said people familiar with the discussions. Although the WTO did not post the DG’s full statement on its website, the DG is understood to have said that members are all present here because they are keen to see “that we have results after so many, many years of agricultural negotiations not moving forward,” said people familiar with the DG’s statement. However, Ms Okonjo-Iweala seemingly did not explain why the talks on the mandated issues in agriculture have remained at an impasse since 2008 when the US walked out of a deal proposed by the former WTO’s Director- General Pascal Lamy, said people, who asked not to be identified. The DG also did not indicate how the US blocked the final text issued by the ministerial chair for agriculture, Ambassador Amina Mohamed of Kenya, at the WTO’s eleventh ministerial conference (MC11) in Buenos Aires, Argentina, in December 2017, said people who asked not to be quoted. In her statement, the DG seems to have said that in the recent consultations she held with members, many countries underscored the need for results in agriculture at MC14, emphasizing that the current global food security situation remains fragile, said people who asked not to be quoted. She cited the example of the UN World Food Programme, which is experiencing dire cuts in food aid, leading to severe food insecurity among around 343 million people. The DG also highlighted the difficulties experienced by the net food importing developing countries (NFIDCs), said people who asked not to be quoted. “But I think there are really mounting expectations from this organization to take action,” the DG is understood to have said, while she appears to have omitted other expectations from her, particularly making a strong political statement on how the reciprocal tariffs to be announced by President Trump on 2 April “will almost kill the multilateral trade organization”, said a trade envoy, who asked not to be quoted. In her statement at the CoA-SS meeting, the DG urged members to “put away” the script that they have been reading for years, indicating that she can quote members’ positions letter and verse, said people who asked not to be quoted. MEMBERS’ RESPONSES It appears that more than 30 delegations took the floor at the meeting, emphasizing the need for an outcome in agriculture at MC14, said people familiar with the discussions. Concurring with the new chair’s call for pragmatism, a US delegate said they very much welcome the idea of pragmatism, adding that they reckon that it is important to underline this thing (pragmatism) as the chair said, according to people present at the meeting. An Indian farm trade delegate said briefly that New Delhi looks forward to constructive engagement on the long-pending mandated issues. Surprisingly, Australia, the coordinator of the Cairns Group of farm-exporting countries, did not take the floor, even as the Australian trade envoy was physically present at the meeting, said a farm trade negotiator from Asia, preferring anonymity. Indonesia, the coordinator of the G33 group of developing countries, apparently also did not make any statement at the meeting, said people familiar with the discussions. It appears that there was no substance in the interventions made by members, as everyone seems to be in a “congratulatory mood”, even though the multilateral trading system appears “to have been put on a deathbed because of the US’ allegedly unilateral reciprocal tariffs, and is now waiting for a postmortem report,” said a trade envoy, who asked not to be quoted. +
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