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TWN
Info Service on WTO and Trade Issues (Mar24/09) Abu Dhabi, 4 Mar (D. Ravi Kanth) — Amidst acrimonious developments, the World Trade Organization’s 13th ministerial conference (MC13) concluded in Abu Dhabi on 2 March with significant gains for the industrialized countries, including the extension of the E-commerce moratorium, with the United States and the European Union being the two biggest beneficiaries of the conference. Though the US Trade Representative (USTR) Ambassador Katherine Tai left on 1 March before the proceedings ended, her representatives appear to have ensured that things went as per the US plan, said a participant, who preferred not to be quoted. For the US, the moratorium on customs duties on electronic transmissions appears to have trumped all other issues. Moreover, the failure to agree on a work program for agriculture as well as a permanent solution for public stockholding (PSH) programs for food security is a preferred alternative for Washington, said a South American trade minister, who asked not to be quoted. E-COMMERCE MORATORIUM Indonesia fought hard for the termination of the E-commerce moratorium till the last minute before the adoption of the MC13 decisions/declarations. India, however, merely agreed to the extension of the moratorium as “a friendly gesture” and in deference to the request from the chair of MC13, Dr Thani bin Ahmed Al Zeyoudi, the United Arab Emirates minister-of-state for foreign affairs, said trade ministers, who asked not to be quoted. Due to the sustained efforts of Colombia, the moratorium on TRIPS non-violation and situation complaints was also extended for developing countries for another two years, a quid pro quo for the E-commerce moratorium, said trade ministers familiar with the outcomes. In fact, MC13 appears to have missed the opportunity to get more tangible results for developing countries, but no agreement on the controversial plurilateral agreement on Investment Facilitation for Development (IFD) is the “best result”, said a trade minister, who asked not to be quoted. FISHERIES SUBSIDIES The US and the EU along with their allies were unable to secure an outcome on fisheries subsidies to tackle subsidies contributing to overcapacity and overfishing (OCOF) based on a draft text that is replete with carve-outs for the big subsidizers to continue with their subsidies. For the US, no outcome in agriculture appears to be a preferred alternative in a year of elections where its farm lobbies are already “breathing fire” on the existing interim solution for public stockholding programs, said trade ministers who preferred not to be quoted. In contrast, the EU seemingly put up a show of support for both PSH options such as the adoption of the permanent solution for public stockholding programs for food security or continuing with a work program on the permanent solution, said trade ministers who asked not to be quoted. DEVELOPMENT Even on the central issues in the development dossier, particularly the proposals to improve special and differential treatment, the post-graduation transition at MC13 for LDCs on two existing provisions is too short. The LDCs expected that it will be no longer than 3 years on the remaining provisions listed in Annex 2 on LDC graduation, said a LDC trade minister, who asked not to be quoted. The other LDC-specific issues agreed at MC13 are just the continuation of the current work in several WTO bodies, the minister said. “LDCs expect that post-MC13 discussions will provide some concrete results in their favour,” the minister added. The Declaration on Development is a best endeavour outcome that is rarely respected in the WTO. With a rather misleading title, “Declaration on the Precise, Effective and Operational Implementation of Special and Differential Treatment Provisions of the Agreement on the Application of Sanitary and Phytosanitary Measures and the Agreement on Technical Barriers to Trade”, it merely “instruct(s) officials to continue work in the CTD Special Session, the SPS Committee and the TBT Committee.” However, the WTO Director-General, Ms Ngozi Okonjo-Iweala, who seems prone to make some rather hyperbolic claims, said that the decision was a “win for development, one that will help enable developing countries, especially LDCs, fulfill their WTO commitment, exercise their rights and better integrate into global trade.” DOWNPLAYING THE FAILURE The DG attempted to downplay the major setbacks suffered at MC13 on agriculture and fisheries subsidies, suggesting that the work will continue based on the current texts in Geneva. She said that in the face of a lot of headwinds, it is difficult to secure outcomes. She claimed that there are meaningful results with the agreement on the E-commerce moratorium. On fisheries subsidies, “we came close but on one or two issues there was no agreement,” she said. The DG praised the US for its constructive engagement in the dispute settlement system (DSS) reform discussions. On the e-commerce moratorium, which will come to an end on the first day of the 14th ministerial conference, countries that want to continue with the moratorium can do so, she said. Later, on a question from a reporter about her statement that countries could continue with the moratorium after MC14, the DG gave a different answer. She said, “I think that the membership just agreed to extend the moratorium with very firm dates for its conclusion and I think that’s where the membership wants to go. So I have to abide by what the membership has just decided.” She mentioned the agreement on Investment Facilitation for Development, suggesting that despite the failure to approve the plurilateral agreement at MC13, the work will continue on this issue at the WTO. The EU trade commissioner Valdis Dombrovskis said that the continuation of the E-commerce moratorium for another two years is a significant outcome, adding that discussions will continue on IFDA and other issues. The EU, which is the main demandeur of the fisheries subsidies agreement, expressed its disappointment over India blocking the agreement. On the failure to secure the permanent solution for public stockholding (PSH) programs for food security, the Indian commerce minister Mr Piyush Goyal blamed the developed countries for their opposition to deliver on a mandated issue and for their opposition against changing the external reference price that is currently based on 1986-88 prices. They also provided subsidies that contributed to overcapacity and overfishing for the past 50 years resulting in the depletion of their fish stocks, he added. He said that India could not accept a repeat of the Uruguay Round agriculture agreement in OCOF subsidies, Mr Goyal told reporters. However, as a friendly gesture and in deference to the UAE minister and chair of MC13, he agreed to the continuation of the e-commerce moratorium. He said that “the UAE minister requested it personally and he’s a friend, so out of friendship India agreed.” Surprisingly, India did not link the e-commerce moratorium with the moratorium on TRIPS non-violation and situation complaints. At the informal Heads of Delegation meeting, Colombia’s trade minister Mr German Umana asked for extending the TRIPS moratorium, following which it was adopted, the chair of MC13 declared at the meeting. The US, the EU, China, Japan, Korea, and Chinese Taipei seem to be the big losers for failing to conclude the second phase of the fisheries subsidies agreement concerning OCOF subsidies, given the exemptions that were forced in the draft facilitator’s text in order to continue with their OCOF subsidies based on weak provisions. Part of the blame for the collapse of the meeting on the “big-ticket” items and new issues, especially the IFDA was seemingly levied on the Director-General, who was allegedly promoting new issues while paying little attention to the mandated issues like the permanent solution for PSH, said a South Asian delegate, who asked not to be quoted. However, there were some agreements on technical barriers to trade (TBT) and the Dispute Settlement Understanding (DSU), areas in which there are agreed texts. The Abu Dhabi Ministerial Outcome Document is bereft of the new issues, a loss of face for the EU, the United States, and other industrialized countries as well as the DG, said a developing country delegate who asked not to be quoted. The lack of consensus on agriculture is not the first time in the WTO’s trade negotiations, as it had happened at the third ministerial conference in Seattle in 1999, the fifth ministerial conference in Cancun, Mexico, in 2003, the eleventh ministerial meeting in Buenos Aires, Argentina, in 2017, and at the 12th ministerial conference in Geneva in 2022. DAY-LONG DISCUSSIONS ON PSH In a series of parallel meetings on the above issues as well as on the E-commerce moratorium in various configurations, including heads of delegation (HoD) meetings, the revised draft texts in agriculture and fisheries subsidies issued on 1 March morning brought little or no change, said several delegates who asked not to be quoted. Given the entrenched positions, the HoD meeting on agriculture was shifted to a post-lunch session. To overcome the differences, the chair of MC13, Dr Thani bin Ahmed Al Zeyoudi, the minister of state of foreign trade of the United Arab Emirates, and the WTO Director-General, Ms Ngozi Okonjo-Iweala, held a meeting with eight trade ministers/deputies, said delegates familiar with the discussions. At the meeting of the eight countries, India is understood to have said that without a permanent solution for PSH, there would not be any outcome on agriculture for the next 100 years. India also subtly reminded the DG that she could have helped with resolving the issue of the permanent solution for PSH, said delegates who asked not to be quoted. The DG, who visibly took an active role in promoting the controversial plurilateral agreement on Investment Facilitation for Development, said that it is not for her to negotiate on PSH, suggesting that it is for India and other members to resolve the issue, said delegates who asked not to be quoted. The EU trade commissioner, Mr Valdis Dombrovskis, indicated that Brussels is open to option one on the permanent solution for PSH, said delegates familiar with the discussions. At the meeting, the DG seems to have asked the South African minister to see if he can talk to India and Brazil to break the ice. Brazil said that the real difficulties are with the developed countries on domestic support, suggesting that Brazil understands India’s position, said delegates who asked not to be identified. The US Trade Representative Ambassador Katherine Tai, who left Abu Dhabi early morning on 1 March, seems to have opposed the permanent solution, while suggesting continuing work on a permanent solution along with other issues, said delegates who asked not to be quoted. On the tough stance adopted by India on PSH, a US official seems to have suggested that MC13 is an “India party”, implying that India is dominating the proceedings on every issue, according to delegates familiar with the discussions. However, several developing countries pointed the finger at the US for blocking an agreement on PSH, which led to an all-around negative impact on other issues, said a developing country delegate, who asked not to be quoted. In a strong statement, representatives of civil society said: “A ministerial marked by unprecedented repression of civil society has ended in paralysis as it fails to address the multiple economic, climate, and food crises facing billions of the world’s people.” +
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