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Info Service on WTO and Trade Issues (Apr26/01) Yaounde, 1 Apr (D. Ravi Kanth) — A summary issued by the chairperson of the World Trade Organization’s 14th Ministerial Conference (MC14) on 31 March captures the “main points which have emerged from the discussions during this Conference,” but clearly indicates that there were no decisions adopted by members on a multilateral basis due to a lack of consensus, said people familiar with the development. Even though the chair of the conference, Mr. Luc Magloire Mbarga Atangana, Minister of Trade of Cameroon, stated that the conference adopted several decisions, the reality is that these decisions have neither legally binding effect, nor can they be the basis for further negotiations in Geneva, said several participants who asked not to be quoted. In his report (WT/MIN(26)/35), the Cameroonian chair stated that his summary “is not exhaustive, but I hope it captures our discussions over the past four days.” Mr. Atangana said: “We started the Conference on a high note as we celebrated the Entry into Force of the Agreement on Fisheries Subsidies and welcomed three new deposits of instruments of acceptance from Paraguay, Saint Vincent and the Grenadines and Samoa.” On the Electronic Commerce Work Programme and Moratorium, the chair said there is a “draft text of the Facilitator – Honourable Senator Kamina Johnson Smith – which has been circulated and is annexed to this statement.” Acknowledging that the e-commerce moratorium “is set to expire at this Ministerial Conference or by 31 March 2026, whichever is earlier,” the chair said “Ministers worked tirelessly with the assistance of the Facilitator to extend the moratorium and work programme and came very close to achieving an agreement.” However, he said that ministers “ran out of time.” The minister said as MC14 chairperson, he is “recommending that the good progress and momentum that was generated at this Conference be continued in Geneva with a view to arriving at a decision by the next General Council meeting”, which is likely to be held sometime in April. On WTO reform, the MC14 chair said: “Ministers also actively engaged in the WTO Reform Breakout Sessions on Foundational Issues of the WTO including its principles, Decision-making, Past Mandates, Development and Level Playing Field Issues.” The reform deliberations, he said, “also reflected a new way of working”, suggesting that “as a result of our efforts, a revised Declaration and Work Plan on WTO Reform emerged which was circulated and is annexed to this statement.” Although the participating “Ministers affirmed a shared purpose and provided clear time-bound direction towards meaningful and necessary reform,” the chair recommended that “Members continue their work on WTO Reform work with a sense of purpose and urgency with a view to adopting the draft declaration and work plan by the General Council meeting in May 2026.” He gave a word of advice on “advancing substantive, comprehensive, and strategic WTO reform that can strengthen credibility and effectiveness, deliver tangible results, and keep the WTO resilient and responsive to the needs of people across the globe.” However, this does not appear to be factually correct at a time when the WTO has been facing headwinds due to the unilateral reciprocal tariffs imposed by the United States as well as the paralysis of the Appellate Body, where the selection process to fill vacancies at the Body has been repeatedly blocked by the US, said participants familiar with the development. In his summary, the MC14 chair said: “Ministers heard an update from the DSB Chairperson on Dispute Settlement Reform. The DSB Chairperson’s update reflected dispute settlement reform as a priority and recognized that advancing this work after the Conference – when conditions are ripe and all are ready to engage.” The chair said there “was also a rich discussion on the Moratorium on TRIPS Non-Violation and Situation Complaints – which also expires at this Conference – and the LDC Specific Package, the G-90 Agreement- Specific Proposals on Article 66.2 of the TRIPS Agreement, transfer of technology, cost of remittances, and emerging agricultural trade issues.” He encouraged “Members to continue these discussions after this Conference with a view to addressing these important issues.” The chair commended Ministers for adopting the Ministerial Decision on Fisheries Subsidies. He noted that agriculture and fisheries subsidies “remain critically important priority areas for all Members – as a backbone of many economies and essential to food security, livelihoods, jobs, poverty reduction and sustainability.” The chair said that “notwithstanding the divergences in Members’ positions, I was encouraged by Ministers’ firm resolve to redouble efforts to bridge gaps and resume the negotiations taking into account the work undertaken thus far by Members, including during this Ministerial Conference.” On the Investment Facilitation for Development Agreement (IFDA), the chair said that “the promise of the Investment Facilitation for Development Agreement (IFDA) to assist its signatories attract the foreign direct investment to drive growth, productivity gains, job creation, and integration into global supply chains was underscored by many Ministers.” “While incorporation of the IFDA has yet to transpire, MC14 provided the platform for Ministers to move this objective closer to fulfilment,” he added. Surprisingly, on an issue which is outside the purview of the WTO – i.e., the Joint Statement Initiative on digital trade – the chair mentioned that “66 WTO Members – representing around 70% of global trade – have agreed on a pragmatic pathway to bring the Agreement on Electronic Commerce into effect through interim arrangements while work continues toward full incorporation into the WTO legal framework.” However, under the WTO rules there is no such thing as an “interim arrangement” on a procedural and systemic issue where there is no multilateral consensus. Clearly, the chair and also the WTO Director-General Ms. Ngozi Okonjo-Iweala appear to be sowing the seeds of disaffection with the rules, which could further tear apart the WTO and turn it into a “them and us” organization, a trade minister warned. The chair also included in the annexed draft ministerial decision on the e-commerce work program a four-year moratorium on customs duties on electronic transmissions, which only reflects the US demand while Brazil and Turkiye said that they cannot agree to a duration of more than two years. The chair must know that if he includes a duration of four years as proposed by the US, then he has to include the two years as proposed by Brazil and Turkiye, to show that a member-driven multilateral organization like the WTO reflects all the proposals on an equal footing, said a participant who asked not to be quoted. DRAFT E-COM DECISION The annexed Draft Ministerial Decision on the Work Programme on Electronic Commerce is as follows: “The Ministerial Conference decides as follows: We agree to continue to re-invigorate the work under the Work Programme on Electronic Commerce, based on the mandate as set out in WT/L/274, and with a particular focus on its development dimension, taking into account the economic, financial and development needs of developing and least-developed Members. Building on the work undertaken under the Work Programme, we will continue to identify ways to address the digital divide for developing and least-developed Members. In this regard, Members are encouraged to support developing and least-developed Members to effectively participate and tap into growth opportunities in digital trade and the digital economy, including through targeted technical assistance aimed at supporting their efforts to integrate into digital trade. We agree to improve the training and technical assistance provided under the WTO Technical Assistance and Training Plan to assist developing Members, including LDCs, to overcome the challenges they face in matters related to digital trade and we call on Members to increase their contributions to the Global Trust Fund which will be used to deliver targeted technical assistance for that purpose. We agree to continue collaboration with other intergovernmental organizations to enhance coordination to address trade-related opportunities and the challenges related to e-commerce, such as digital infrastructure and emerging technologies. The WTO will continue the existing database that compiles digital-trade-related training and capacity building programmes of international and regional organizations. We agree to maintain the current practice of not imposing customs duties on electronic transmissions until 31 December 2030. Unless Members agree to extend the moratorium and the Work Programme on Electronic Commerce in the 16th Ministerial Conference, or in case the 16th Ministerial Conference is delayed beyond 31 December 2030, the moratorium and the Work Programme should expire on 31 December 2030. In the meantime, Members agree to conduct a focused review of this decision and intensified discussions to seek a common understanding on the scope, definition, and impact of this decision. We agree to deepen dialogue by reviewing existing empirical evidence and gathering additional empirical evidence on the impact of this moratorium on the economies of developing and least-developed Members, and seek a common understanding on the scope and definition.” DRAFT DECLARATION ON WTO REFORM The chair also annexed the “Draft Yaounde Ministerial Declaration on WTO Reform”. The draft states: “While we hold differing views on the challenges and solutions, we commit to work urgently and in good faith following MC14 to advance reforms, recalling the progress and outcomes made in MC12 and MC13.” However, the reform package has seemingly failed to adhere to both the MC12 and MC13 outcomes, which called for reform of all functions – negotiating, implementation and enforcement – which have been reportedly hived off from the reform discussions, said participants who asked not to be quoted. The draft ministerial declaration on WTO reform states: “In this context, we instruct our officials to intensify their work with a view to providing concrete and substantive recommendations for action by MC15. We will undertake a mid-term review in advance of MC15 to assess progress and provide further directions.” The draft ministerial declaration on WTO reform also includes a Work Plan as follows: “WTO Reform Work Plan Decision-Making, Development, including S&DT, Level Playing Field Issues and Foundational issues We note that Members engaged in reform discussions leading up to MC14 in various areas, including the three areas as reflected in the Reform Facilitator’s Reports: Decision-making, Development, including S&DT, and Level Playing Field. We engaged in discussions on these areas at Yaounde and agree that work on these three issues will continue post MC14. We also had discussions on Foundational Issues at MC14 – including systemic issues such as WTO principles and the balance of rights and obligations. Post MC14 discussions will include these issues. Among other things, further context is in the Facilitator’s reports and the reports of the MC14 Minister Facilitators. Dispute Settlement We acknowledge that the WTO Dispute Settlement System is not fully and well-functioning and needs to be reformed. We agree that consultations on dispute settlement reform, under the auspices of the Dispute Settlement Body (DSB), should continue following MC14. Modalities Authority: Work will be conducted under the authority of the General Council. Dispute Settlement Reform will be under the auspices of the DSB. The WTO Reform process shall be Member-driven, open, transparent, and inclusive, and address the interests of all Members. WTO Reform Facilitators for each of the reform areas shall be appointed by decision of the General Council at its next meeting. Failing that, the General Council Chairperson shall appoint Facilitators based on consultations with Members. Facilitators will facilitate discussions based on Members’ submissions and contributions. They shall be accountable, and report regularly, to the General Council. The General Council Chairperson will oversee and coordinate the overall process to ensure coherence across workstreams and avoid scheduling overlaps. The capacity constraints of Members, especially of resource- constrained delegations, will be taken into account in scheduling meetings. Indicative Timelines/checkpoints: Work will resume in April 2026. Progress reports to the General Council will be provided in July 2026, December 2026, July 2027, and December 2027, with senior officials participating as necessary. We will conduct at least one midway review ahead of MC15. The report produced in July 2026 may include, but shall not be limited to, a stocktaking across all identified reform areas. Flexibility: The Work Plan is designed to remain flexible to ensure responsiveness and institutional agility. The identification of any particular issue as a “focus” issue or an otherwise important issue will not be interpreted in any way as limiting the scope of issues Members can address in the reform process or imply any particular sequencing. Moreover, this reform process will be without prejudice to work in any WTO committee or other body.” +
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