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MC13 entered its business end on Day 3. The schedules of Ministers and their delegations remained packed, with sessions dedicated to dispute settlement reform, development and further consensus building on elements of the Abu Dhabi package and the MC13 Declaration.
It looks unlikely that Members will be able to finalise the work on dispute settlement reform in Abu Dhabi. At MC13, Ministers are likely to recognise the work done so far and reaffirm the MC12 mandate to achieve a fully and well-functioning dispute settlement system accessible to all Members by 2024, tasking their Geneva-based officials to continue discussions.
In effect, the future of the “core features” of the WTO dispute settlement mechanism (DSM), including the appellate process, remains uncertain. No wonder, we at CUTS organised a side event on the scope of revival of the DSM with experts from UK, Zambia, Germany, Switzerland and India. We will continue with this crucial reform in future so that the DSM is restored to its full glory.
Landing zones on agriculture, development and the extension of the moratorium on imposing customs duties on electronic transmissions remained elusive on Day 3. While there is optimism of finding convergence in some areas, results in others are likely to be limited to a recognition of the work done till date and possible outcomes left until the next Ministerial (MC14).
Stay tuned for our next bulletin tomorrow.
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Pradeep S. Mehta, Secretary General, CUTS International with Juan Millan, Deputy General Counsel, USTR at WTO MC13 on 28/02/24. They exchanged pleasantries and discussed issues of interest, including the prospects of reforming the WTO Dispute Settlement Mechanism. |
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IISD Trade + Sustainability Hub - Side Event
Enabling Just Transition: Trade and Industrial Policy-Policy Options for Developing Countries
The topic had a vast canvas, and three experts from NGOs and UN agencies spoke with an active and well informed audience.
Key takeaways:
The last 15 of 23 years have been the hottest that the world has seen. This is due to climate change and therefore the issues are global and not just national, which must be addressed by the international community as one family. Of course, the principle of Common But Differentiated Responsibility and Respective Capabilities to protect developing country interests must be borne in mind, following the SDG principle of "Leaving No One Behind".
Whether one likes it or not, developing countries will have to deal with the emerging issues of trade and environment and many of them are in the process of developing compliant structures. But their need for advanced technologies is a must.
Poverty remains a big problem for the Global South and therefore the holistic agenda of sustainable development, covering environment, equity and economy, must be at the core of any future discussions on trade and environment, which is creating livelihoods and fairer terms of trade.
Debt is another problem for many countries in the Global South which impedes their ability to muster resources to deal with climate and biodiversity harm. This is because their inability to raise finances is very difficult and they lose ratings hence fresh debt is often a problem. Therefore debt redemption must be a priority.
It must be recognised that many countries and the world have been advancing economically despite various handicaps and that is the good news. Many people have come out of the poverty trap, though many poor countries continue to suffer from lack of growth etc. How far the growth is green needs to be verified at a disaggregated level.
Finally, we need to discuss technology and its advancement to deal with the new environmental and health hazards and drawbacks which the world has witnessed and will continue to witness.
Critical Minerals, Geopolitical Rivalries, and Sustainable Development
Panellists deliberated on the issue of over-dependence and single-supplier dependencies in the context of critical minerals. The session reflected on the shift we are witnessing from “big oil” (energy security) to the “big shovel” (critical minerals dependency). It highlighted the nexus between critical minerals, energy security, digitalisation and geopolitics. Geopolitics is trumping geoeconomics in the case of critical minerals.
Panellists discussed the policy trilemma facing critical minerals - accessibility, affordability and sustainability. The development dimension must also be acknowledged while defining what is “critical” and for “who”? An optimistic outlook is that since the discourse is still relatively new, it can be channelised towards a more sustainable direction.
How Can WTO Agriculture Negotiations Contribute to Global Food Security?
This session discussed the multi-dimensional factors affecting food security and the linkages between trade and food security. Panellists recognised that advances in all the seven negotiation pillars under the ongoing agricultural negotiations at the WTO have the potential to promote global food security.
Since food security is ultimately a result of how food systems work, a holistic and comprehensive approach is required to ensure that trade promotes rather than hinders global food security. Domestic policies regulating agricultural production and trade can often have spillover effects on the food security of other countries. Going forward, emerging challenges to food security arising from climate change may also need to be mainstreamed in discussions around trade and food security.
This topic will be the main agenda at the G20 Brasil process (concluding in November, 2024) and therefore one hopes for good directions to enable people from being protected from hunger in the future.
Remaking the Global Trade System for a Sustainable Future: Key Outcomes and Action Items for MC13
This roundtable featured discussions on the Villars Framework for a Sustainable Trade System. The conclusion was that the global trading system is not just about trade liberalisation and market access, but a means for leveraging sustainable development, as espoused in the Marrakesh Agreement.
It asked whether we have done enough to implement a trading system that delivers on sustainable development? The global trading system has seen a rough couple of years, manifested in many countries scaling back and blaming globalisation as their primary malaise. This pushback is particularly due to the institutionalisation of neoliberal policies during the 1980s-90s.
The global trading system requires further reforms that are not just limited to tariff reduction but in a creation of a system that works for the people. It should recognise the overarching commitment to climate change. However, from a developmental perspective, many countries are still tackling poverty and hunger that are more immediate challenges than climate change.
Finally, discussions on sustainable development should also focus not only on economic development parameters but also on social sustainability issues like “well-being.”
Trade Tensions and Climate Change: Obstacles and Solutions
Panellists discussed how trade barriers can adversely impact the achievement of climate targets, through a case study on the United States solar industry. The discussion revolved around the re-emergence of industrial policy through US legislations such as the IRA and the CHIPS Act.
The interaction of trade remedy actions, such as imposition of antidumping and safeguard duty, with imports of intermediate inputs, was another area of discussion. The conversation also focused on the polarised political climate in the United States and its consequent implications for US trade policy. The friction between keeping an open trading system and taking proactive measures to mitigate climate change is real and does not present any easy solutions.
Fostering Trade-related Cooperation on Plastic Pollution: The WTO Dialogue on Plastic Pollution Beyond MC13
The session highlighted global plastic pollution's pervasive impact, exploring how trade policies can aid mitigation. The Dialogue on Plastics Pollution and Sustainable Plastics Trade (DPP) received praise for its ministerial statement at MC13, outlining trade actions.
With 369 million tons of plastics traded in 2021, valued at US$1.2tn, improved waste management and international cooperation are crucial. The panel emphasised the need for harmonised efforts, calling for collaboration between the WTO and various organisations to find comprehensive solutions.
Building Inclusive Policies for Sustainable and Fair Trade: A forum for action and commitment
Panellists highlighted challenges in agriculture and supply chains, stressing a smoother transition to sustainability. Ahead of the EU elections, they discussed regulations' impact on developing countries, advocating for farmer training. Gender inclusivity, child labour, and climate change were also discussed, concluding with a proposal for a visionary "Global Green Deal" to benefit all stakeholders.
Climate Technology and Intellectual Property: A repeat of the access to medicines debate or something new?
The session delved into the intersection of Intellectual Property (IP) rights and climate technology dissemination. Highlighting the pivotal role of technological innovation in carbon emission reduction, speakers emphasised the need for balanced IP to facilitate technology transfer. The discussion underscored the significance of technology in adapting to and mitigating climate change, particularly in the agriculture, water, and energy sectors.
Despite financial constraints in developing countries, investment in new technologies, including carbon capture, is essential. The debate centred on finding a nuanced balance between innovation and transfer, offering policy recommendations like creating climate technology databases and fostering international collaborations to address accessibility and dissemination challenges.
Nature Protection and Just Transition: What role for circular trade facilitation?
Speakers advocated for a circular trade economy, focusing on challenges in recycling, trade, and customs procedures. Emphasising material transparency, competitive sustainability, and circular logistics, they called for policy frameworks, citing Finland's example.
The need to mainstream circular principles into global trade, ensure inclusivity, empower informal workers, and provide financial support for technology adoption was highlighted. Stakeholder collaboration and consultation were deemed essential for effective circular economy development.
One Speaker raised the issue of Right to Repair, which is an inherent part of the circular economy. Because of poverty, many countries allow the import of second-hand/ per-owned goods such as clothing and automobiles. In the context of trade facilitation, it will be useful to review the combustion import procedures.
Trade’s Contribution to Climate and Sustainable Development Goals
The session centred on linking trade with sustainable development, featuring government reps committed to initiatives like Fossil Fuel Subsidy Reform and the proposed Agreement on Climate Change, Trade, and Subsidy (ACCTS). ACCTS, a progressive trade deal, though yet to be agreed, prioritises tariff removal on environmental goods, liberalising environmental services, ending harmful fossil fuel subsidies, and creating guidelines for voluntary eco-labelling.
New Zealand actively supported FFSR since 2014, proposing a multilateral pathway in ACCTS. Ambassador of Switzerland highlighted their involvement in environmental goods agreements and eco-labelling with Indonesia, emphasising alignment with WTO rules for developing nations.
Closing Plenary: Where Next? Building Trade Cooperation in a Fractured World
The session delved into the future of global trade amidst economic fragmentation, emphasising the vital role of civil societies in promoting international cooperation. The United States' trade policy, influenced by the US-China trade war, has become fragmented and protectionist.
Civil societies should not only pressure governments but also collaborate, offer solutions, and build consensus for effective global cooperation. Strong leadership is essential for countries to address trade fragmentation both internationally and domestically, requiring active engagement with stakeholders and providing policy flexibility.
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India, alongside South Africa, secured a significant breakthrough in domestic service regulations at the World Trade Organization (WTO). With 61 participating members, India objected to the certification of updated General Agreement on Trade in Services schedules, emphasizing adherence to established multilateral processes.
After consultations, the Working Party on Domestic Regulations approved the course of action, affirming India's commitment to WTO's multilateral nature and fair global trade.
Check Out Amar Breckinbridge’s comments on this here: https://www.linkedin.com/
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India has asserted at the 13th WTO Ministerial Conference in Abu Dhabi that farmer subsidies from developed nations are disproportionately higher than those from developing countries, urging a level playing field for low-income farmers.
Emphasising the 11-year delay in finalising a permanent solution to public stockholding (PSH), India proposed addressing PSH first, followed by safeguarding Special and Differential Treatment for developing nations and subsequently discussing reductions in domestic support commitments. The argument highlighted vast differences in subsidies and stressed the critical need for a permanent solution to ensure global food security.
Civil Society Organisations, including Indian farmer groups, decry "heavy-handed" restrictions at the 13th WTO Ministerial Conference in Abu Dhabi, citing detainment, material confiscation, and freedom of speech curbs. Representatives reported incidents to WTO Director General Ngozi Okonjo-Iweala, highlighting unjust detentions and continued repression.
CSOs accuse the WTO of failing to ensure their participation, causing fear among participants from developing countries, who now avoid walking alone in the conference centre. The WTO asserts its commitment to engaging with CSOs and seeks solutions to reported challenges.
Former WTO official expresses gratitude to the WTO Secretariat for hosting a discussion on his recent book, "Revitalizing the World Trading System." The book explores the historical evolution, core elements, and challenges of the multilateral trading system.
Addressing contemporary issues, the author emphasises the importance of global trade amid geopolitical tensions, calls for WTO reform, and expresses optimism about the organisation's future. The book aims to increase awareness and understanding of the WTO's value and contribute to discussions on its reform.
Other Bulletins:
- FES- MONT BLANC TRADE NEWS
- IISD- What's new in sustainable development
- WTO | News - 2024 Press Releases
- Watch live: TradeTech Forum 2024 closing remarks | World Economic Forum (weforum.org)
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