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TWN
Info Service on WTO and Trade Issues (Oct25/10) Geneva, 10 Oct (D. Ravi Kanth) — A senior United States trade official appears to have substantially diluted a draft text for the G20 trade ministers, who are expected to congregate in Gqeberha, South Africa, on 10 October, a move that could further weaken the World Trade Organization (WTO), according to people familiar with the development. During three days of negotiations at a meeting of the G20 Trade and Investment Working Group, the US official overseeing the WTO and other multilateral issues in the Office of the United States Trade Representative, Assistant Secretary Neil Beck, pressed for several nuanced changes regarding the WTO’s role, voicing objections to terms like “protectionism”, special and differential treatment (S&DT) for developing countries, and “food security”, to name a few. The changes proposed by the US appear to have substantially weakened the draft text, which is close to consensus, said people tracking the negotiations. In contrast, China seems to have proposed language on “unilateral and protectionist measures”, insisting that it be part of the text. Although the US and China were expected to discuss issues bilaterally on 9 October, China is apparently waiting for instructions from its capital on the textual changes, which could result in an anticipated tense engagement at the ministerial meeting, said people familiar with the development. The US positions suggest a selective and diminishing commitment to the WTO, reflecting its continued scepticism toward the rules-based system without acknowledging the systemic imbalances that have contributed to its own de-industrialization and the broader structural shifts in global trade, said people familiar with the development. It remains unclear whether the US Trade Representative, Ambassador Jamieson Greer, will participate in the G20 trade ministerial meeting, said a person who asked not to be identified. DG’S BLUEPRINT FOR REFORM Meanwhile, the WTO Director-General, Ms. Ngozi Okonjo-Iweala, appears to be working in tandem with the facilitator overseeing the WTO reform discussions. Documents issued by them on 7 and 8 October suggest an attempt to force upon members their seemingly “biased” priorities while giving short-shrift to the mandated issues, said people familiar with the development. As the two WTO officials address trade ministers during an informal dinner meeting in Port Elizabeth, South Africa on 9 October, the prospects for securing approval for their narrative to advance a change in the practice of consensus-based decision-making and turn the self-designated special and differential treatment (S&DT) into a needs-based framework appear to hang in the balance, said people familiar with the development. In a restricted document (JOB/TNC/127/Rev.1) issued on 7 October, the DG spells out the “possible modalities, substance and way forward”. The DG’s document contains almost the same issues as highlighted in the restricted document (JOB/GC/465) issued by Ambassador Petter Olberg of Norway, the facilitator overseeing the discussions on WTO reform. While the SUNS reported on the facilitator’s document and its broad messages on 9 October, the document prepared by the DG, who is also operating under the Doha Trade Negotiations Committee (TNC) mandate, appears to be under her own responsibility, said people familiar with the discussions. Under item 1, titled “MC14 structure and procedural and organizational matters”, the DG listed the following pointers under “Members’ Views”: * Duration: broad support from the Membership for a short, focused and flexible Ministerial Conference. * Geneva First Principle: finish substantive work in Geneva. Ministers to approve outcomes, not negotiate them. * Cut-off date: only issues with real convergence should be taken to MC14 with a deadline of December to decide on those issues. * Transparency and Inclusivity: all processes should be transparent, inclusive, open, Member-driven and broadly representative of the Membership. * SOM (Senior Officials Meeting): convene Senior Officials Meeting only when necessary to conclude outcomes. * Format of MC14: revert to this once there is clarity on substance by the December cut-off date. In her document, the DG introduced “Political Messaging of MC14,” which appears to set aside the critical message of highlighting the unilateral reciprocal tariffs imposed by the Trump administration. The main messages highlighted by the DG include: (a) Reaffirm the relevance and resilience of the WTO amidst global uncertainty. (b) Underscore the need for repositioning and reform of the WTO. (c) Opportunity to highlight African interests, idea of an “African Package” (agriculture, development and policy space for industrial development). The DG advised members to commence the drafting of the MC14 “Outcome Document” only “when there is a basis for convergence on political messages that might be included as determined by the GC Chairperson following his consultations with members.” Even though the TNC chair is supposed to be acting under the GC chair’s advice as per the decision reached in 2002, the reverse is seemingly happening wherein the TNC chair is advising what the GC chair should do. However, the DG, in her role as the TNC chair, told members that “if there is no convergence by the December cut-off date, look at other approaches to record what happens at the Conference.” SUBSTANTIVE AREAS Under the sub-title “Substantive Areas”, the DG listed several priorities, of which the key deliverable is on “WTO Repositioning/Reform (strong convergence on advancing WTO Reform and need for structured discussions)”. The “Topics/Themes” included in “WTO Repositioning/Reform” include: * Level playing field issues. * Negotiating function reform. – commitments from negotiations by Members including S&DT. – negotiating instruments (multilaterals, plurilaterals, others). – making decision-making more effective. – understanding of and action on previous ministerial mandates. * Monitoring, transparency and failures to comply with notification obligations. * DS reform – important priority for all Members but question of how to harness considerable progress already made. * How to ensure that current WTO agreements remain dynamic and relevant (e.g. ASCM, TRIMs, TRIPS, among others). * Future trade rules (tariffs and NTBs, AI, digital, services, sustainability issues, responsive trade rules for natural disasters and other emergencies). The DG suggested the following process to make progress on these priorities: * Scoping: 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). * Ministerial Guidance: Based on scoping work in Geneva, have a Ministerial conversation at MC14 on WTO Reform and have Ministers endorse scope of reform as well as modalities and timing. * Implementation: 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. Other priorities listed by the DG include: agriculture; fisheries subsidies (bridge remaining gaps in Geneva); E-commerce; incorporation of plurilateral outcomes; development and LDC issues (support for incremental but tangible deliverables); TRIPS Agreement; and WTO accessions. Regarding “agriculture”, the DG wants “all agricultural issues, including PSH [public stockholding for food security purposes in developing countries], domestic support and cotton” to be negotiated in the Doha agriculture negotiating body. On the stalled negotiations on “Fish 2”, which concerns proposed disciplines on subsidies contributing to overcapacity and overfishing, Ms. Okonjo-Iweala suggested the “Negotiating Group on Rules”, with a note in brackets stating: “Many noted domestic efforts to ratify Agreement on Fisheries Subsidies and called for its entry into force by June 2025.” On E-commerce, including the “Work Programme and Moratorium”, the DG proposed dedicated discussions in the General Council on the Work Programme on E-commerce and “Members’ Outreach.” Regarding the controversial “incorporation of plurilateral outcomes”, which allegedly violates the Marrakesh Agreement, the DG is seeking a decision on the “Agreement on Investment Facilitation for Development” and “E-Commerce Agreement” based on “Members’ Outreach.” On “development and LDC issues”- with the caveat of “support for incremental but tangible deliverables” – the DG suggested the following issues: * Policy space for industrial development. * Advancing G90 proposals. * Transfer of technology. * LDC issues (LDC graduation, extension of LDC services waiver, preferential rules of origin for LDCs, DFQF market access for LDCs). * Work Programme on Small Economies. * Support for EIF (Enhanced Integrated Framework) and TACB (Technical Assistance and Capacity-building). Ms. Okonjo-Iweala proposed that these issues be dealt with in the Committee on Trade and Development in Special Session and the regular Committee on Trade and Development, as well as the Sub-Committee on LDCs, Council for Trade in Services, and the Committee on Rules of Origin. An outstanding issue in the TRIPS Agreement has been the “Review of the Implementation of the TRIPS Agreement under Article 71.1”, which is going to be discussed in the Council for TRIPS, the DG suggested. Finally, the Working Parties on Accession would be addressed in the General Council, she said. On facilitating decision-making in light of the December cut-off date, the DG said the issues she proposed “fall into the following four categories [that] could warrant referral to Ministers for decision.” She claimed: “They are all things that would be directed at positioning Ministers to have political level exchanges rather than technical ones and would also give effect to the “Geneva first” idea.” 1. The first category – changing the decision-making as well as the existing self-designated framework for special and differential treatment – “would be that a possible outcome be referred to the Ministerial Conference if it had been agreed by the responsible WTO body.” 2. The second category on agriculture and fisheries subsidies “would be that a possible outcome be referred to Ministers if it would renew or extend an existing WTO mandate or outcome that would otherwise expire.” 3. The third category would be that a possible outcome be referred to Ministers if it were submitted as a report to Ministers by the General Council Chair. 4. The fourth would be that a possible outcome be referred to Ministers if only political decisions remained – that is, if negotiations on technical issues had concluded. On structuring the ministerial agenda, the DG said “the Ministers’ agenda may be structured on the basis of the following refined criteria: 1. First, Geneva agreed outcome. This section could include matters that require only a formal ministerial adoption. 2. Second, issues requiring ministerial guidance. This section could include matters that are rather technically exhausted and require a renewed mandate or other form of a ministerial directive. 3. Third, issues requiring critical political choice. This section could include issues which are technically mature but cannot advance without a political compromise. 4. Fourth, high-impact reform priorities. This section could include matters which Members would agree are central to restoring this organization’s functionality or reform package.” The DG also proposed a timeline for how these negotiations are to be conducted. Regarding meetings, she suggested “Negotiating Group and Regular Body meetings from now until December 2025.” She said that the expectations from these discussions are “further progress work towards convergence; continue work on reform questions; (scoping); and GC Chairperson to consult Members on elements that Members could converge on for a possible MC14 outcome document.” +
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