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TWN
Info Service on WTO and Trade Issues (Jul23/16) Geneva, 26 Jul (D. Ravi Kanth) — Pakistan on 25 July proposed a draft ministerial decision at the World Trade Organization that calls for substantial “response measures” and the “needed space” with the requisite policy tools for the developing and least-developed countries to tackle unforeseen multiple crises arising from climate change and the worsening international economic climate, said people familiar with the development. Under the agenda item of “Other Business” at the WTO’s General Council meeting that concluded on 25 July, China, India, Indonesia, South Africa, Egypt, Brazil, Argentina, Nepal, Bangladesh, Sri Lanka, and Bolivia strongly supported Pakistan’s proposal, titled “WTO Action to Assist Developing Countries and LDCs in Crisis Response”. However, some industrialized countries did not support Pakistan’s proposal. In its proposal, Islamabad underscored the need for a “pro-active decision by WTO Members that would allow the needed space for developing countries and LDCs facing a crisis to respond expeditiously and with required policy tools to avoid [the] deepening and spreading of the crisis.” While “such a decision should help members to stay within the WTO rules and not risk violating them,” Pakistan said that the “decision needs to be seen as adjusting to new realities rather than seek typical “carve-outs”.” More importantly, the “WTO needs to keep up with the times and evolving needs of its members,” Pakistan emphasized. Pakistan, which had been ravaged by calamitous floods last year that required tens of billions of dollars in recovery efforts, argued that the proposed decision should ensure that the country that is affected adversely, particularly for the people and its economy, could reduce the possibilities of the spreading of the crisis to other members. “More broadly,” said Pakistan, “this decision will contribute to cushioning the trajectories of implementing the SDGs (Sustainable Development Goals) from the impact of the crises, and thus make the WTO more fit for the purpose of contributing towards the realization of the SDGs.” It proposed a draft ministerial decision on “WTO Action to Assist Developing Countries and LDCs in Crisis Response.” The draft decision is based on the WTO 12th Ministerial Conference (MC12) mandates under the Ministerial Declaration on the WTO Response to the COVID-19 Pandemic and Preparedness for Future Pandemics, specifically paragraph 23 (WT/MIN(22)/31, WT/L/1142), and the MC12 mandate on WTO reform (WT/MIN(22)/24, WT/L/1135, para. 3)” and “building on the principles of predictability and transparency.” The draft decision states: 1. Members agree that, notwithstanding the Articles listed in Annex 1 to this Decision, a developing Member adversely affected by a crisis, may undertake any measures to respond to the crisis, for an initial period of 5 years, while fulfilling the conditions set out below under 5(i) and 5(ii). A developing Member notifying measures under this Decision that continues to be adversely affected by a crisis beyond the initial 5 years may maintain or renew the measures it undertook provided that the conditions set out under 6(i), 6(ii) and 6(iii) are met. 2. For the purposes of this Decision: “Crisis” includes one or more or a series of crises, of domestic or global nature, including but not limited to, climatic and natural disasters, financial and economic crises, health emergencies including public health emergencies of international concern as determined by the World Health Organization (WHO), food-security related crises. “Developing Member adversely affected by a crisis” means a developing Member that has met any one or more of the indicators in Annex 2. 3. Members shall not challenge any measures notified under this Decision through the WTO Dispute Settlement Mechanism or under Article XXIII of the General Agreement on Tariffs and Trade (GATT) or Article XXIII of the General Agreement on Trade in Services (GATS). 4. This Decision is without prejudice to the flexibilities, including Special and Differential Treatment, that Members have under various WTO agreements and rules. Notification and transparency 5. A Member notifying measures under this Decision must: (i) Notify the measures it undertakes in response to a crisis within a period of time that does not extend beyond [3] months from the date of implementing those measures; (ii) Within a period that does not extend beyond one year, the concerned Member shall present to the relevant WTO Committees data concerning one or more of the indicators under Annex 2 pertaining to the impact of the crisis on domestic conditions at the time of implementing the notified measures. 6. Where a Member maintains or renews measures notified under this Decision beyond the initial 5 years: (i) The concerned Member must notify the relevant Committee(s) and submit relevant data on one or more of the indicators listed in Annex 2; (ii) The concerned Member shall be free to maintain or renew the measures for a period that does not exceed an additional [18] months without further action by the concerned WTO bodies; (iii) Where a Member notifying measures under this Decision maintains or renews the measures beyond the initial 5 years, the Member must upon request hold consultations with other Members concerning the measures notified. Monitoring 7. The relevant Committee(s) shall monitor the information submitted under this Decision. In short, the support for Pakistan’s proposal from developing and least-developed countries is significant, while the apparent silence of the industrialized countries, which are allegedly following WTO-inconsistent policies to address sudden crises, is somewhat deafening. +
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