Day 2 of MC13 began with an Informal Heads of Delegation Meeting, with Geneva-based Ambassadors of WTO Members reporting to Ministers on the agenda items. Two Working Sessions on fisheries subsidies and agriculture saw members make both progress and reversals. Later, these sessions reconvened as convergence-building sessions, seeking to narrow down the major areas of differences among Members.
More working sessions on other important issue areas will be underway tomorrow as negotiators work to build consensus on elements of the Abu Dhabi package and the MC13 Declaration.
In another development, a group of WTO Members committed to implement disciplines on services domestic regulation, which seek to facilitate trade in services by enhancing transparency of services regulatory frameworks.
This outcome marks an important milestone in services trade regulation at the WTO. While these negotiations had been concluded by this group of Members earlier in 2021 (WT/L/1129), this development at MC13 now marks the incorporation of the new rules into Members’ services commitments, effectively translating into their entry into force.
These disciplines will be applied on a Most-Favoured-Nation (MFN) basis, which means that their potential benefits will accrue to the entire WTO membership. It remains open for all WTO Members to implement these disciplines.
Stay tuned for our next bulletin tomorrow.
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CUTS International MC 13 Side Event
CUTS International organised an MC13 Side Event on the topic “Why Should the WTO’s Dispute Settlement System be Put Back on Track?” The event brought together a group of experts to present their thoughts and vision for the future of the two-tiered WTO Dispute Settlement Mechanism (DSM).
The Panel featured speakers from around the world and was moderated by Pradeep S Mehta, Secretary General, CUTS. Experts agreed on the need to preserve an accessible and well-functioning DSM to maintain certainty, predictability and stability in the administration and enforcement of trade rules. However, they cautioned that it would be challenging to restore the two-tiered WTO DSM, given the systemic fractures in the past few years.
Key takeaways:
- The Appellate Body (AB) crisis is a reflection of a more fundamental problem of countries indicating that they will not be constrained by the enforcement of WTO disciplines. It is only one of the manifestations of a larger trend, and the apprehension is that it will affect the entire WTO ecosystem if not resolved.
- Any proposed dispute settlement reforms must be solution-oriented (addressing the existing differences) and should not add more layers to an already complex issue. Reforms must equip the DSM to tackle emergent tensions arising from the proliferation of unilateral measures.
- Reforming the AB must remain central to DSM reform. Alternatives to the two-tiered system and strategies for its realistic reform need to be undertaken in parallel.
- While a well-functioning DSM is ideal for a robust multilateral trading system, there remains immense value in the deliberative function of the WTO even without a two-tiered DSM. The WTO’s functions and its role in global trade must not be seen as a zero-sum game.
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WTO MC 13 Side Event
The WTO organised an MC13 Side Event on “Re-globalising Trade for People and the Planet”, featuring speakers from the WTO Director-General’s Advisory Groups. Pradeep S Mehta, Secretary General, CUTS International, took part in the panel discussion in his capacity as a member of the DG’s Civil Society Advisory Group. The session deliberated on how civil society and businesses can complement governmental efforts to utilise the window for re-globalisation in an era of fragmentation.
Key takeaways:
- Globalisation 1.0 had both benefits and downsides. Course correction is required to ensure that re-globalisation trends are on the right track so that developing and least-developed countries can more fully benefit from the gains from trade.
- Re-globalisation must be underpinned by optimal regulation. Regulation also needs to catch up with the dynamically evolving global ecosystem.
- Trade and the WTO remains an important vehicle for re-globalisation, but trade must be seen as part of a more comprehensive picture. Only then can its power to protect people and the planet be harnessed.
- Any economic policy does not only need to satisfy consumers but also needs to create additional consumers.
- Focused efforts are required to raise the levels of trade participation of women and MSMEs, through greater access to markets, access to finance and reducing digital divides.
- Each stage of globalisation will generate winners and losers, and a new equilibrium is required to ensure that adequate safety nets exist to handhold the most vulnerable sections during periods of economic transition and transformation.
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The Director-General established two Advisory Groups in June 2023, one comprising leaders from the business community and the other bringing together prominent civil society representatives.
The establishment of these groups is part of a strengthened engagement between the WTO Director-General and business and civil society. The two groups provide an informal platform for the exchange of views and discussions with key stakeholders.
WTO Director-General Ngozi Okonjo-Iweala greeting Pradeep S. Mehta, Secretary General, CUTS International and Member of the WTO DG’s NGO Advisory Board.
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IISD Trade + Sustainability Hub - Side Event
Opening Plenary: Can We Find Our Way Back to Cooperation? What to expect – and not expect – of MC13
The exclusively female panel, concentrated on pivotal queries regarding MC13. It was underscored that MC13 serves as a precursor to MC14 amidst global elections, with an anticipation of a restricted impact. Africa's concerns were highlighted, with an expectation that MC13 would tackle matters such as special safeguards and investment facilitation. The conversation also explored the WTO's function in trade and sustainability, recognising the difficulties posed by commodity dependence. The agreement underscored the significance of fairness and policy latitude for member states as crucial for the success of the system.
You’re Not Off the Hook, WTO!: Why fisheries subsidies rules matter more than ever
The discussion emphasised the immediate need to address harmful fisheries management practices, focusing on halting damaging subsidies and preventing overfishing. Neglecting these issues jeopardises fish populations and the livelihoods of millions. Unsustainable fishing, driven by subsidies, leads to ecological disruption and poverty, necessitating the elimination of such subsidies and flexible, community-specific solutions. Sustainable fisheries require restricted areas, smart practices, and alternative livelihoods. The key is political will for meaningful, hybrid reforms supporting long-term fisheries health and community well-being.
Delivering Deforestation-free Global Value Chains: How do we allocate the burden of change?
The Moderator opened the session by addressing global disparities in deforestation-free value chains. The emphasis was placed on alleviating the burden on smallholders in developing nations for forest protection. The lack of multilateral dialogues in reforestation efforts was underscored, while praise was given to smallholders in developing countries for preserving forests despite high-interest rates. The necessity to redefine regulations for equitable benefits was highlighted, and there was an advocacy for remunerating smallholders for effective environmental protection. The session concluded by addressing queries and with reflective key remarks.
The Role of the WTO in Addressing Trade-Related Climate Policy Tensions
The session explored the complex link between trade, climate change, and development, particularly in African nations. Panellists stressed how climate change worsens vulnerabilities in economies relying on raw material exports, urging a re-evaluation of trade policies with considerations like carbon border adjustments. The discussion highlighted climate and economic justice, addressing the disproportionate impact on women and marginalised groups. Technology transfer's crucial role in combating climate change and the need for WTO prioritisation were underscored, emphasising multilateral efforts led by the Africa Group.
Indigenous Peoples and a Fairer Trade System: A path to inclusive prosperity
The Moderator initiated the session by shedding light on social development challenges in Chile, where six million indigenous people, speaking 4000 languages, comprise 5 percent of the global population. The discussion delved into the development of the Amazonas, underlining the lack of inclusivity for Chilean indigenous groups in the WTO. The trade policy report encountered obstacles, and conversations centred around showcasing indigenous talents, integrating scientific technology, and addressing export challenges. The emphasis on Chile's growing global economic role highlighted the necessity for upliftment. The current focus for Chile involves gender inclusivity in trade agreements, encompassing modernised deals.
Digital Trade for Development: From divides to dividends
The session explored challenges and opportunities for developing countries in digital trade. Despite a 25-year-old WTO moratorium on e-commerce, global discussions are now more substantive. Concerns arise if the moratorium is prolonged, impacting trade patterns. Cambodia's entry into a comprehensive economic partnership highlights the potential of e-commerce, but urgent policy action is crucial to address the digital divide, with the least developing countries exporting only 0.2% of digital services in 2022.
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Indian Commerce and Industry Minister Piyush Goyal stressed at the World Trade Organization's (WTO) 13th ministerial council that the WTO should focus solely on trade-related matters, urging climate change, gender, and labour issues to be addressed by respective intergovernmental organisations.
Goyal also called for a resolution on the longstanding matter of public stockholding for food security, emphasising its importance in achieving the sustainable development goal of zero hunger by 2030. He highlighted India's public stockholding programme and faced opposition from developed countries, emphasising the need for a permanent solution. The WTO Director-General urged member nations to be flexible for successful outcomes.
India urges fair competition in agriculture, citing unequal subsidies from developed nations. They suggest a 25-year halt on fishing subsidies outside Exclusive Economic Zones (EEZs) and stress the need for a lasting resolution on public stockholding.
They advocate for fair trade with differentiated responsibilities, Special and Differential Treatment, and protection of sovereign rights.
India urged WTO members at the 13th ministerial conference in Abu Dhabi to address the prolonged issue of public food stockpiles for achieving the goal of zero hunger by 2030. Indian Commerce Minister Piyush Goyal emphasised the need for a permanent solution, separate from non-trade topics like climate change.
He highlighted the unresolved food subsidy cap issue and stressed a global consensus on sustainable fishing. Goyal called for WTO reforms with consensus-based decision-making and special treatment for emerging economies, cautioning against discriminatory measures in combating climate change.
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