|
||
|
TWN
Info Service on WTO and Trade Issues (May25/15) Yerevan, 9 May (D. Ravi Kanth) — The World Trade Organization’s Director-General, Ms Ngozi Okonjo-Iweala, on 7 May sought responses from members to the document titled “Road to Yaounde MC14 – Possible Modalities, Substance and Way Forward”, which seems to have been prepared under her own responsibility based on her consultations with members, said people familiar with the development. However, the document appears to reveal a “top-down” approach focusing exclusively on a WTO “reforms” package that includes controversial issues such as the continuation of the principle of consensus-based decision-making, the self-designated flexibility for developing countries to avail of special and differential treatment (S&DT), and the conclusion of allegedly WTO-illegal plurilateral agreements such as the joint initiative agreement on electronic commerce and the Investment Facilitation for Development Agreement (IFDA), said people, who asked not to be quoted. At a time when the Trump administration has seemingly turned the multilateral trading system on its head by imposing unilateral tariff measures on WTO members that are being seen as coercive, attempts are now being made to “reform” the WTO in order to make it “palatable” to the United States and other industrialized countries, said people familiar with the development. Though the contents of the document were briefly discussed at a meeting of the WTO Doha Trade Negotiations Committee (TNC) on 7 May, the issues raised in the document appear to undermine the long-pending, unresolved mandated issues, while focusing excessively on “reforms” in an alleged attempt to “whittle down” the Marrakesh Agreement that established the WTO in 1995, said people familiar with the development. Under the rubric of “reforms”, the industrialized countries, especially the US, have been seeking fundamental changes in the way decisions are taken at the WTO on the basis of the “consensus” principle, the self-designated option for developing countries to avail of S&DT, and the reform of the existing binding two-tier dispute settlement system that undergirds the WTO’s enforcement function, among others, said people familiar with the development. At present, there is little or no clarity on the “reforms” and what they entail for the organization, said a trade envoy, who asked not to be quoted. This is more so, when there is growing apprehension among developing countries that the outstanding mandated issues, particularly in agriculture and other areas, would be brushed aside in favour of addressing the elusive reform-related issues, the envoy said. Against this backdrop, the three-page document circulated by the DG at the formal TNC meeting on 7 May, seen by the SUNS, seeks members’ responses on the structure and format of the WTO’s upcoming 14th ministerial conference (MC14), scheduled to be held in Yaounde, Cameroon from 26-29 March 2026. STRUCTURE & FORMAT OF MC14 According to the document, members’ views are sought on three issues: (1) Broad support from the Membership for a shorter (2 days without extension), focused and flexible Ministerial Conference; (2) MC14 formats: incorporate breakout formats, policy panels and Ministerial-level dialogue, particularly on WTO reform. (3) Bring back the traditional plenary sessions to provide Ministers the opportunity to make political statements during the Conference. The above suggestions seem to depart from paragraph 1 of Article IV of the Marrakesh Agreement, which states: “There shall be a Ministerial Conference composed of representatives of all the Members, which shall meet at least once every two years. The Ministerial Conference shall carry out the functions of the WTO and take actions necessary to this effect. The Ministerial Conference shall have the authority to take decisions on all matters under any of the Multilateral Trade Agreements, if so requested by a Member, in accordance with the specific requirements for decision-making in this Agreement and in the relevant Multilateral Trade Agreement.” POLITICAL, PROCEDURAL & ORGANIZATIONAL MATTERS Under the second heading on “Political, Procedural and Organizational Matters”, the DG sought members’ views on several political aspects, including: A. Political messaging from MC14 that reaffirms the relevance and resilience of the WTO amidst global uncertainty; B. MC14 must prioritize WTO reform – including a Reform Declaration that sets out the areas of reform and the modalities; C. MC14 in Africa – opportunity to highlight African interests, idea of an “African Package” (agriculture, development and policy space for industrial development); D. Geneva First Principle – finish substantive work in Geneva, Ministers approve outcomes and not negotiate them; E. Only issues with real convergence should be taken to MC14 with a deadline possibility in October or December to decide on those issues. On the procedural front, the DG sought views on two issues: (i) All processes should be transparent, inclusive, open, Member-driven and broadly representative of the Membership; and (ii) Convene Senior Officials Meeting, if and only when necessary to conclude outcomes. SUBSTANTIVE PRIORITIES As part of “Substantive Priorities (raised by members as priority. Delivery on them at MC14 depends on progress made by Members in Geneva), the DG sought members’ responses on “WTO Repositioning/Reform (strong convergence on advancing WTO reform and need for structured discussions)”. As part of “Substantive Priorities”, the DG provided several “examples of topics/themes”. They include: 1. Level playing field issues. 2. Negotiating function reform – which includes (a) developing country Member status and commitments from negotiations; (b) negotiating instruments (multilaterals, plurilaterals, others); ( c) how to better harness decision- making by consensus (responsible consensus); and (d) understanding of and action on previous ministerial meetings. 3. Monitoring, transparency and failures to comply with notification obligations. 4. DS [dispute settlement] reform – important priority for all Members but question of how to harness considerable progress made. 5. How to ensure that current WTO agreements remain dynamic and relevant (e.g. ASCM, TRIMs, TRIPS, among others). 6. Future trade rules (tariffs and NTBs, AI, digital, services, sustainability issues, responsive trade rules for natural disasters and other emergencies). As part of the process to be followed for addressing the above issues, the DG is understood to have suggested (1) scoping, and (2) Ministerial Guidance. Under “scoping”, the document suggests that “Prior to MC14, Members’ role is to formulate questions that serve to designate and delineate areas and issues for reform and put in place a Member-driven process (recommend that the GC chair designate overall reform Facilitator in consultation with the DG). On implementation, it is being suggested that: “Members to implement Ministerial Guidance from MC14 in the respective workstreams (including with the assistance of high-level thinkers and leaders) for Ministers to consider and bless at MC15”. On “Agriculture (broad importance)”, the document issued by the DG suggests that: “All agriculture issues including PSH [public stockholding programs for food security], domestic support and cotton” be dealt in the Committee on Agriculture in Special Session.” On “Fisheries Subsidies (bridge remaining gaps in Geneva)”, the document indicates: “negotiations on Additional Provisions (Fish 2).” It notes: “Negotiating Group on Rules (Note: Many noted domestic efforts to ratify Agreement on Fisheries Subsidies and called for its entry into force by June 2025 – so far, around 97 countries ratified the Fish 1, while two-thirds of members, roughly 112 members, are required to put the agreement in force).” On “E-commerce”, the document suggests addressing the “Work Program and Moratorium under the supervision of the General Council, including dedicated discussions on the Work Program on E-Commerce.” The DG also highlighted two agreements – the Agreement on Investment Facilitation for Development and the E-Commerce Agreement. However, the DG’s promotion of these two agreements appears to be a “systemic blot”, as there is no ministerial mandate up until now, said a trade envoy, who asked not to be quoted. As regards the long-pending “Development and LDC issues (support for incremental but tangible deliverables)”, the document lists five areas. They include: “(a) Extension of LDC Services Waiver; (b) Support for EIF [Enhanced Integrated Framework] and TACB [relating to Trade Facilitation Agreement]; ( c) Policy Space for Industrial Development; (d) Transfer of Technology; and (e) Advancing G90 Proposals.” The DG’s document also suggests: “Review of the Implementation of the TRIPS Agreement under Article 71.1.” TENTATIVE TIMELINE DG also proposed a “tentative timeline” for meetings, starting with “Members’ meetings in Negotiating Groups, Facilitator on reform workstreams and Members’ work in other configurations” during May-July 2025. The “expectations” from these meetings are: 1. Move forward negotiating work prioritized for MC14. 2. Start reform workstreams to generate reform questions (scoping) of issues under each theme that need to be addressed. 3. Move forward on other work areas for MC14. As part of “General Council and Trade Negotiations Committee (TNC) Meetings” in July 2025, the document suggests that members “take stock of progress in (a) Negotiations, (b) Scoping and Reform Work, and ( c) Other Areas”. According to the document, “members’ meetings in Negotiating Groups, Facilitator on reform workstreams and Members’ work in other configurations” during August-December 2025, must indicate “further progress in negotiating work prioritized for MC14, continue reform workstreams on reform questions (scoping), and move forward on other work areas for MC14.” The document also suggests a Senior Officials Meeting in November 2025 to take stock of progress and provide political guidance as needed on “negotiations”, “scoping of reform work”, and “other areas.” In the final phase of meetings in December 2025, members are being asked to consider: “Decision-making on negotiating files and issues ripe enough to be taken forward to MC14”. According to the document, during January-March 2026, members are being asked to “finalize Geneva work on files to be taken forward as decided in 2025.”
|
||
