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TWN
Info Service on WTO and Trade Issues (Jul25/29) Geneva, 25 Jul (D. Ravi Kanth) – Several countries remain sharply concerned over the World Trade Organization Director-General’s alleged attempts to de-link the Agreement on Fisheries Subsidies (“Fish 1”) from the “second wave” of the agreement, or “Fish 2”, containing additional provisions dealing with subsidies contributing to overcapacity and overfishing, at an upcoming special General Council (GC) meeting in September, said people familiar with the development. At the General Council meeting that concluded on 23 July, the DG, Ms Ngozi Okonjo-Iweala, said that, “I am working closely with the Chair of the General Council to explore the possibility of convening a Special General Council meeting after the break – one where we can formally receive the remaining instruments and officially mark the Agreement’s entry into force.” She declared that it will “be a historic and momentous occasion, and I hope it will also inject renewed energy into the organization and into our ongoing negotiations,” indicating that her “door remains open – day and night – to receive your instruments.” In her concluding remarks delivered at the GC meeting, Ms Okonjo-Iweala said that “we are nearly there”, emphasizing that “we need to push for the objective of getting all Members to ratify the Agreement by MC14.” “Even those who cannot make it to the historic occasion, you have another chance to receive your blue flag.” GROWING CONCERNS Several countries remain sharply concerned over the DG’s apparent “game plan” to do away with the legal requirement to conclude “comprehensive disciplines” within four years after the entry into force of the Agreement on Fisheries Subsidies (“Fish 1”), said people familiar with the development. The mandate on fisheries subsidies as set out in the ministerial decision adopted at the WTO’s 11th ministerial conference (MC11) in Buenos Aires, Argentina in December 2017, unambiguously stated that: “1. Building on the progress made since the 10th Ministerial Conference as reflected in documents TN/RL/W/274/Rev.2, RD/TN/RL/29/Rev.3, Members agree to continue to engage constructively in the fisheries subsidies negotiations, with a view to adopting, by the Ministerial Conference in 2019, an agreement on comprehensive and effective disciplines that prohibit certain forms of fisheries subsidies that contribute to overcapacity and overfishing, and eliminate subsidies that contribute to IUU-fishing recognizing that appropriate and effective special and differential treatment for developing country Members and least developed country Members should be an integral part of these negotiations.” Paragraph 4 of the MC12 ministerial decision on the Agreement on Fisheries Subsidies of 17 June 2022 states: “Notwithstanding Article 9.4 of the Agreement on Fisheries Subsidies, the Negotiating Group on Rules shall continue negotiations based on the outstanding issues in documents WT/MIN(21)/W/5 and WT/MIN(22)/W/20 with a view to making recommendations to the Thirteenth WTO Ministerial Conference for additional provisions that would achieve a comprehensive agreement on fisheries subsidies, including through further disciplines on certain forms of fisheries subsidies that contribute to overcapacity and overfishing, recognizing that appropriate and effective special and differential treatment for developing country Members and least developed country Members should be an integral part of these negotiations.” Yet, the ministerial mandate is being seemingly revoked by the DG and several South American countries, as well as the so-called “Friends of the Fish” group, said trade envoys, who asked not to be quoted. Furthermore, Article 12 of the Agreement on Fisheries Subsidies, adopted on 17 June 2022, explicitly states: “If comprehensive disciplines are not adopted within four years of the entry into force of this Agreement, and unless otherwise decided by the General Council, this Agreement shall stand immediately terminated.” While the prospects of ratification of the “Fish 1” Agreement by 111 countries, or two-thirds of the WTO membership, are within reach in the next couple of weeks, the same is not the case with the “Fish 2” Agreement, which is unlikely to be concluded by the WTO’s 14th ministerial conference (MC14), to be held in Yaounde, Cameroon in March 2026, said trade envoys familiar with the development. In the absence of “comprehensive disciplines” covering both the “Fish 1” Agreement dealing with subsidies contributing to illegal, unreported, and unregulated (IUU) fishing and regarding overfished stocks and the “Fish 2” Agreement dealing with subsidies contributing to overcapacity and overfishing, the “Fish 1” Agreement will appear to have no legal status, unless members are able to agree on the proposed “Fish 2” Agreement within four years of the entry into force of “Fish 1”, as per Article 12 of the Agreement on Fisheries Subsidies, said people familiar with the development. Though it has been made clear that “Fish I” is only a partial agreement, the DG along with several South American countries and members of the “Friends of the Fish” group seem determined to bring “Fish I” into force, while seeking a new mandate for “Fish 2” before MC14, said several trade envoys, who asked not to be quoted. It appears that the US might support the DG’s “game plan” on bringing the “Fish 1” Agreement into force while re-working the “Fish 2” Agreement, given its concerns that the proposed agreement does not address substantial disciplines on subsidies contributing to overcapacity and overfishing to curb fishing in the high seas by China and others, said people familiar with the development. In the bilateral free trade agreement concluded with Indonesia on 22 July, the US included a provision that Jakarta “accept and fully implement the WTO Agreement on Fisheries Subsidies, and combat illegal, unreported, and unregulated fishing and illegal wildlife trade.” India has not ratified the “Fish 1” Agreement while blocking the “Fish 2” Agreement on account of alleged asymmetrical disciplines concerning subsidies contributing to overcapacity and overfishing, said people familiar with the development. “SUMMER PAUSE” In her remarks at the General Council meeting that concluded on 23 July, the DG said that “regarding the strategic summer pause in the negotiations on additional provisions [the “Fish 2″ Agreement], let me reaffirm that I have heard your views from last week’s meeting.” Ms Okonjo-Iweala said she is “encouraged by the strong support expressed by many of you – including various groups – to move forward and get this done.” “At the same time,” the DG maintained that, “I believe there is value in using the summer break to reflect thoughtfully on why we have not gotten it done and how best to advance these negotiations, building on the highly advanced work so far that has been done under the leadership of Ambassador Einar Gunnarsson (Iceland) as NGR [Negotiating Group on Rules] Chair while we address the outstanding concerns of those who have expressed concerns and considering the current negotiating environment.” The outgoing chair of the Doha fisheries subsidies negotiations, Ambassador Einar Gunnarsson of Iceland, has made it known that two countries (indirectly hinting at India and the US) are seemingly blocking the “Fish 2” Agreement, as reported in the SUNS. “Therefore,” the DG said at the GC meeting, “I shall not rush on the issue of the appointment of the new NGR Chair immediately even though some of you have come to me to request that we move on this.” The DG urged members to “take the summer to reflect and when we come back, I will consult with the GC Chair on how to move forward on this matter … I am not saying that we are not doing it.” “I am just asking Members to reflect a little bit using the summer break on how we best advance and generate the political will to move forward,” she said. WTO REFORMS On WTO reforms, the DG said that “both business and civil society representatives clearly understand what is at stake,” adding that they “emphasized the importance of the work that Petter [Olberg of Norway] is facilitating with Members, and I was struck by the depth and practicality of their suggestions.” The DG, however, did not mention that there were deep divisions among members on WTO reforms, particularly on what she called “deep reforms”. “I take this opportunity to remind Members that this is an intergovernmental organization but who trades there is very important,” she said, suggesting that “when we lose sight of the fact that businesses trade and this organization has the rules that underpin the ability to trade, that is when we err.” She reminded members that “the people out there trading and representing ordinary people are very important to listen to,” in an apparent reference to the US concerns that the “globalists” are not concerned with the ordinary people, said a trade envoy, who asked not to be identified. According to the DG, “progress requires real engagement, a willingness to advance your own priorities, but the flexibility to also accommodate priorities of others,” in somewhat toned down remarks as compared to her rather sharp statements made at the Doha Trade Negotiations Committee (TNC) meeting on 15 July. She said, “therefore, as we approach the summer break, I invite you to reflect on how we can collectively ensure movement on the negotiating files – and this includes the Joint Statement Initiative files such as the IFDA [Investment Facilitation for Development Agreement] that was just discussed that can benefit poorer WTO Members without harming others.” The DG said “we cannot have a jam on multilateral negotiations moving forward and a jam on plurilateral negotiations moving forward.” In line with the demands made by the members of the “Friends of the System” group, China, and the US concerning consensus-based decision-making at the WTO, the DG said, “you need to seriously think about the negotiating function and how you want it to move forward.” “Without this reflection and thought, we risk arriving in December with nothing credible that we can take to Ministers to consider,” she warned. Without mentioning the irreparable damage being caused by the unilateral tariffs imposed by the US, the DG said, “In these uncertain times, they are looking to the WTO not as a source of stagnation or lack of action but as a source of stability, predictability and revitalization – of looking for something new to deliver to those that are waiting for it. Let’s not lose sight of that.” +
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