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TWN Info Service
on WTO and Trade Issues (Apr26/15) Yerevan, 24 Apr (D. Ravi Kanth) -- The outgoing and incoming chairpersons of the World Trade Organization's General Council (GC) on 23 April urged member states to focus "work at the May General Council meeting on how to proceed in follow-up to Yaounde" - a reference to the WTO's 14th ministerial conference (MC14), which failed to produce any outcome except a chair's summary, according to people familiar with the development. In an email sent to members on 23 April, a copy of which was seen by the SUNS, the outgoing General Council chair, Ambassador Saqer Abdullah Almoqbel of Saudi Arabia, wrote that the incoming chair, Ambassador Clare Kelly of New Zealand, and he had been "contacted by several delegations about the upcoming General Council meeting of 6-7 May, in particular how it will handle matters in follow-up to MC14 (Yaounde)." The outgoing chair noted, "as many of us [members] have been away from Geneva for most of the period since our departure from MC14, we believe that more time and exchanges would be necessary to fully assess the way forward." "Subject to any developments between now and 5 May, we would therefore consider it useful to focus our work at the May General Council meeting on how to proceed in follow-up to Yaounde," Ambassador Almoqbel said. "For this purpose," the outgoing chair maintained, "immediately after the election of the incoming Chairperson [Ambassador Kelly], a dedicated section of the meeting would be devoted to the Follow-up to MC14 (Yaounde), with a brief report from the TNC chairperson [Ms Ngozi Okonjo-Iweala, the Director-General and chairperson of the Trade Negotiations Committee] and Director-General on recent developments, and a statement by the incoming General Council Chairperson offering her views on the possible way forward." Subsequently, the floor would be opened to members for comments. "This approach could provide an efficient way of addressing all MC14-related issues, without the need for delegations to request separate agenda items for the matters related to MC14," the outgoing GC chair concluded. LACK OF CLARITY The big question is the relevance of the MC14 chair's report, said a trade envoy who asked not to be quoted. "The chair's report of MC14, under the WTO's rules-based system, carries little or no binding effect as none of the issues, including on WTO reforms, were resolved, nor agreed at MC14," the envoy said. The chair's summary (WT/MIN(26)/35), issued by Cameroonian Trade Minister Luc Magloire Mbarga Atangana after MC14, acknowledged that ministers "ran out of time" regarding several outstanding issues - such as the WTO's work programme on electronic commerce and the continuation of the existing moratoriums on customs duties on electronic transmissions and on non-violation and situation complaints under the TRIPS Agreement. Countries have not even agreed on whether to preserve the understandings reached at MC14, despite the DG Ms Okonjo-Iweala's plea at the concluding session to "preserve" the work done in Yaounde and treat it as a basis for further work in Geneva. In her final statement at MC14, the DG said: "In the circumstances, if we decide to move the work to Geneva, we believe that it would be appropriate to preserve the important texts we have developed here, and use them as a basis to finalize agreements in Geneva at the next General Council meeting." The DG made that statement under her own responsibility, said another trade envoy who asked not to be quoted. "There was no decision taken at MC14 and now it is open for members to treat it as a basis or not," the envoy said. The DG also stated: "For clarity, let me list the emerging Yaounde package that we would be bringing back with us." According to Ms. Okonjo-Iweala, the package includes: 1. "The draft Yaounde Ministerial Declaration on WTO Reform and Work Plan that was circulated to you this morning; 2. The draft Ministerial Decision on Electronic Commerce that, as you know, is still missing some important numbers; 3. The draft Ministerial Decision on the Moratorium on TRIPS Non-Violation and Situation Complaints; 4. The draft Ministerial Decision on Fisheries Subsidies; and 5. The LDC package." To recall, the draft Yaounde Ministerial Declaration on WTO Reform and Work Plan states: "DRAFT YAOUNDE MINISTERIAL DECLARATION ON WTO REFORM We recognize the contribution of the WTO to the economic growth of its Members over the past 30 years and that it continues to perform valuable functions. At the same time, we acknowledge that the WTO faces serious challenges that require necessary reform. 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. 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. 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." E-COM MORATORIUM The MC14 draft decision on the e-commerce moratorium issued by the Minister-Facilitator, Senator Kamina Johnson Smith of Jamaica, failed to reflect the divide over the duration of the moratorium on customs duties on electronic transmissions, as Brazil demanded that it should be the normal period of two years as was the case with all previous decisions, while the US initially demanded a permanent moratorium but later settled for a duration of four years. The draft decision issued by the Minister-Facilitator only reflected the US position and not the Brazilian demand. It is well known that the moratorium expired on 31 March 2026. The Minister-Facilitator's seemingly flawed draft decision on the e-commerce moratorium is as follow: "The Ministerial Conference decides as follows: 1. 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. 2. 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. 3. 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. 4. 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. 5. 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." +
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