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Info Service on WTO and Trade Issues (Feb24/27) Abu Dhabi, 27 Feb (D. Ravi Kanth) — Trade ministers on 26 February issued conflicting messages on what needs to be accomplished at the World Trade Organization’s 13th ministerial conference (MC13) in Abu Dhabi, with the United States having underscored the need to ensure that the benefits of trade reached more people, while many developing countries highlighted the unresolved issues revolving around food security. Ahead of the meeting, members submitted their respective statements, which were released on the first day of MC13. The priorities articulated by trade ministers from key industrialized countries as well as developing countries differed sharply in terms of their priorities for MC13. The United States, which is seen to be withdrawing from the multilateral trading system with its active pursuit of industrial policies and policy space, said: “we are a diverse group of economies, and we are facing new challenges – like a worsening climate crisis, rapid technological change, and widening inequality.” The US Trade Representative (USTR) Ambassador Katherine Tai emphasized using “trade as a force for good” in order to ensure that “the benefits of trade reach more people”. Her call at MC13 is “to adapt, modernize, and reform the WTO for the better.” The USTR said that “this week’s gathering is the first real ministerial dedicated to discussing what needs to be done to realize this vision,” without articulating what this vision would be tantamount to, said people familiar with her statement. The US wants members to agree at MC13 “to fundamentally re-orient the global trading system to build our middle classes together and to make sure the WTO remains relevant and effective.” Without mentioning China, the USTR called for “rebuilding the WTO’s ability to negotiate new rules for the new challenges that we face, such as addressing the massive disruptions from non-market policies and practices and reflecting better the interests of our workers.” In a similar vein, she said the goal of dispute settlement reform is “not just to go back to the way things used to be, but rather to provide confidence that the system is fair and to better allow Members to settle their disputes.” The US seems opposed to the restoration of the two-tier dispute settlement system with the Appellate Body as the final body for adjudicating trade disputes on a binding framework, said people, who asked not to be quoted. The US touted the need to “restore transparency as a meaningful norm at the WTO,” arguing that: “Transparency is a precondition to ensuring fairness and accountability in how this Organization operates. Every WTO Member has the responsibility to let others know of their laws and regulations affecting trade.” The US said that transparency is “critical for fair competition and a level playing field for working people everywhere, in developing and developed economies alike – the very people this system should empower and lift up.” However, when it comes to taking decisions on vital issues concerning the reform of the dispute settlement system, the US prefers informal meetings as against formal meetings as demanded by several countries. In her statement, the USTR said: “Trade cannot solve all of our problems, but the WTO has an important role to play in shaping our future,” adding that “a successful ministerial will not be measured by the number of deals made this week – it will be measured by the work of Ministers to craft a forward-looking vision across all levels of development.” The US narrative appears to run counter to the WTO Director-General’s approach that calls for “re-globalization”, including new agreements like the Agreement on Investment Facilitation for Development (IFD). CHINA Citing President Xi Jinping, who recently said that the WTO is “a major pillar of multilateralism and an important platform for global economic governance,” China drew several markers for the Abu Dhabi meeting. China’s trade minister Wang Wentao said that the WTO needs to “put development at the core of its agenda, provide policy space for developing Members, and contribute to the smooth transition of countries graduating from the list of LDCs.” The WTO, according to the Chinese trade minister, “needs to keep an eye on how industrial and supply chain disruptions impact developing Members, and enhance stability and resilience of global industrial and supply chains.” The minister said that the WTO “needs to restore a fully- and well-functioning dispute settlement system, to safeguard Members’ right to defend their own interests.” China said negotiations should be advanced on “topics such as agriculture, food security and fisheries subsidies, to protect the livelihood of small-scale farmers and artisanal fishermen.” Unlike the US, which started the negotiations on the WTO agreement on digital trade in which China was not a member at the time of launching the initiative at MC11 in Buenos Aires, Argentina, in December 2017, China is now calling for accelerating and concluding “negotiations for the joint statement initiative on e-commerce to introduce high-standard rules for global digital trade.” Beijing also wants members to “extend the electronic transmission moratorium to lower digital trade costs”. Given its dominant position on trade in environmental goods and services, China called for liberalizing and facilitating “trade in environmental goods and services, promote circular economy and lower barriers to trade.” Finally, China called for incorporating “the Agreement on Investment Facilitation for Development into the WTO’s legal framework to enable the role of investment in driving growth.” INDIA For India, said Mr Piyush Goyal, the Indian Commerce Minister, “development stands for fight against hunger and undernourishment, upliftment of the poor and distressed masses, ensuring reasonable returns for low income and resource-poor farmers and fishers.” According to Mr Goyal, “the development agenda would remain incomplete without a permanent solution on Public Stockholding (PSH) for food security purposes which is directly related to achieving Sustainable Development Goal of Zero Hunger by 2030.” Emphasizing that the PSH issue is “a long-pending issue since the last few decades and despite having a clear mandate agreed by us in the past MCs,” India said, “a permanent solution on PSH remains an unaccomplished agenda on which we have to deliver in MC13.” Commenting on the draft fisheries subsidies text, India said: “We largely undertake sustenance fishing which addresses hunger, poverty, food and nutrition insecurity of millions of traditional fishers.” “Sustainably harnessing fishing resources is a problem of a magnitude that requires a global consensus, taking into account the interests of disciplined nations like India,” Mr Goyal said. India wants that “Fisheries should be shared equitably, considering the past and being mindful of the future.” He urged ministers “to not repeat the mistakes of the Uruguay Round in Agriculture in the Fisheries agreement.” Commenting on the reform of the WTO, India said that development must remain “at its core, to be decided through a precise, transparent and inclusive process, upholding the basic principles and objectives of WTO, particularly consensus-based decision making and S&DT.” Referring to the ongoing unilateral measures to combat climate change, like the European Union’s carbon-border adjustment mechanism, India said that such measures should “not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade.” India warned that “WTO should not negotiate rules on non-trade related subjects like climate change, gender, labour etc, rather they should be addressed in respective intergovernmental organizations.” The European Union, which wants MC13 to conclude the fisheries subsidies agreement, suggested that progress should be made on several tracks at MC13. Brussels wants members “to work together to fix the dispute settlement system.” It wants MC13 to design “trade policy to meet the new global challenges,” adding that “the 21st century is the digital century – e-commerce is a rapidly growing force in global trade.” The EU wants the moratorium on customs duties on electronic transmissions to be extended. It maintained that “trade rules need to catch up with the realities of today’s world”, suggesting that, “One prime example is the need for updated rules on industrial subsidies, including in the context of climate and sustainability.” In sharp contrast to the EU’s positions, Nigeria said that extreme hunger and poverty need to be tackled. It wants a “correction of imbalances in agriculture.” As opposed to the EU, Nigeria said discussions on “trade and climate change should happen with the mandate of CTE (Committee on Trade and Environment).” +
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