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TWN Info Service on WTO and Trade Issues (Jul24/05)
5 July 2024
Third World Network


Trade: Tensions over attempts to undermine institutional structures at WTO
Published in SUNS #10040 dated 5 July 2024

Geneva, 4 Jul (D. Ravi Kanth) — The United States on 3 July seems to have suggested that tensions over process- related issues stalled the progress of several issues at the World Trade Organization, subtly hinting at support for an informal process being conducted by Brazil that has been opposed by many members, said people familiar with the development.

Ever since Brazil launched the informal process to negotiate on its proposal on agriculture following the WTO General Council meeting in May, there has been growing concern among members over the alleged attempts to undermine the institutional structures established under specific ministerial mandates, said people familiar with the development.

At a closed-door roundtable meeting of trade envoys from Australia, Brazil, Chad (the coordinator of the African Group), China, the European Union, India, Japan, South Africa, and the United States at the end of a two-day workshop on agriculture, the US trade envoy Ambassador Maria Pagan appears to have “taken up the cudgels” against concerns expressed by South Africa that institutional structures established under a ministerial mandate must not be undermined, said people familiar with the development.

The South African envoy seemed to have said that institutional bodies are established with an explicit mandate to discuss issues that were agreed during the previous ministerial conferences and if they are not functioning well, then it is for the members to confront the issue head-on, instead of undermining them, said people who asked not to be quoted.

In response, the US suggested that the concerns expressed about the informal process launched by Brazil seem to be overblown, arguing that issues relating to a process must not hinder progress in the negotiations, said people who asked not to be quoted.

Interestingly, the US recently adopted a different position when it came to discussing India’s proposal on the issue of remittances at the Council for Trade in Services (CTS).

At that CTS meeting, the US told India that the issues concerning remittances must be addressed by the Committee on Trade in Financial Services, said people familiar with the development.

The US does not seem to adopt its proverbial saying that “what is good for the goose is good for the gander”, said a person, who asked not to be quoted.

GREEN ROOM MEETING

It appears that the WTO’s Director-General, Ms Ngozi Okonjo-Iweala, is planning to convene a green room meeting on 4 July to discuss agriculture, particularly the Brazilian informal process, which seemingly failed to garner consensus, said people familiar with the development.

Early in the week on 1 July, during the informal meeting to discuss the Brazilian proposal, the DG apparently sat during the proceedings for almost one-and-a-half hours, said participants familiar with the discussions.

During the informal meeting on 1 July, the Brazilian trade envoy is understood to have said that they are fulfilling the DG’s mandate and that she supports the process for successful outcomes at the WTO’s 14th ministerial conference (MC14) in Cameroon, in 2026, said people who were present at the meeting.

A day after the Brazilian informal meeting on agriculture, the African Group presented its proposal to the Committee on Agriculture in Special Session (COASS), the Doha agriculture negotiating body, giving primacy to the COASS, said people familiar with the development.

Several African trade envoys privately said that they are being asked to pay a price to make the ministerial meeting in Africa a success, questioning the allegedly “patronizing” stand being adopted by several countries, including Brazil, said people familiar with the development.

POLITICAL WILL

During the meeting of the trade envoys on 3 July, three phrases – political will, pragmatism, and expediency – were repeatedly used.

India apparently said that members must demonstrate the political will to conclude the negotiations on the permanent solution for public stockholding (PSH) programs for food security as it is a mandated issue that remains unresolved for more than ten years, said people familiar with the development.

India seems to have indicated that the participants need to demonstrate political will to conclude negotiations in the COASS expeditiously without which there will not be progress in other areas, said people familiar with the discussions.

During the meeting of the trade envoys, China is understood to have said that trade is not rational, while Ambassador Pagan suggested that for the US, trade is commercial.

Chad said for Africa, trade is a livelihood issue, said people familiar with the discussions. +

 


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