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Info Service on WTO and Trade Issues (Oct25/04) Geneva, 1 Oct (D. Ravi Kanth) — World Trade Organization Director-General Ms. Ngozi Okonjo-Iweala on 30 September welcomed the ratification of the Agreement on Fisheries Subsidies, or “Fish 1”, by 114 members. However, the United States and India have indicated that they will not approve the draft text for the second phase of the agreement, or “Fish 2”, which aims to address subsidies contributing to overcapacity and overfishing (OC&OF), according to people familiar with the development. At the Doha Trade Negotiations Committee (TNC) meeting on 30 September, the DG highlighted the ratification of “Fish 1”, which establishes disciplines on subsidies contributing to illegal, unreported, and unregulated (IUU) fishing and subsidies regarding overfished stocks. She suggested that global leaders, including French President Emmanuel Macron, had praised the conclusion of “Fish 1”, said people familiar with the development. “I was heartened by the amount of unwavering support expressed for the WTO,” she declared. “Beyond frequent references to the WTO, leaders consistently emphasized the value they attach to the multilateral trading system for providing stability and predictability to their businesses and consumers,” she continued. “While they acknowledge the challenges we face – and I was not sparing in laying out that those challenges exist and that we must tackle them – they talked about renewed appreciation for our work amid today’s global trade turbulence.” The DG’s rather upbeat remarks stand in stark contrast to the continued unilateral tariffs being imposed by the Trump administration on items such as kitchen sinks, upholstered furniture, timber, and movies under the Section 232 national security provisions, said participants, who asked not to be quoted. They also noted that the DG and the WTO Secretariat have remained silent on these tariffs, which China recently criticized in a paper on stabilizing the global trade in services. Regarding the upcoming WTO’s 14th ministerial conference (MC14), to be held in Yaounde, Cameroon in March 2026, there appears to be a lack of clarity on several issues, particularly on WTO reform. The DG said, “we all agreed that if things are not ripe, we should not take them forward. If we cannot prepare adequately some files here, we shouldn’t expect ministers in the two or three days that they’ll be in Yaound to be able to solve these issues.” “Across all negotiating files, political will and flexibility from every member are essential for substantive progress and meaningful outcomes,” she declared. “FISH 1” Despite ratification of “Fish 1” by 114 members, approximately 50 other countries, including India, have not ratified the agreement. The legally binding nature of “Fish 1” has been called into question after the US and India rejected the draft text (TN/RL/W/285) issued by the former chair of the Doha fisheries subsidies negotiations, Ambassador Einar Gunnarsson of Iceland, on disciplines on subsidies contributing to overcapacity and overfishing, said a legal analyst who asked not to be quoted. Article 12 of the Agreement on Fisheries Subsidies, adopted on 17 June 2022, explicitly states that: “If comprehensive disciplines are not adopted within four years of the entry into force of this Agreement, and unless otherwise decided by the General Council, this Agreement shall stand immediately terminated.” People familiar with the development recalled that Brazil had suggested de-linking “Fish 1” from “Fish 2” to overcome this legal uncertainty. At the TNC meeting, the US stated that “Fish 2”, based on the draft text contained in document TN/RL/W/285, cannot be concluded and cannot be the basis for further discussions, said participants familiar with the discussion. Similarly, India stated that it never accepted the draft text because it failed to address the fundamental concerns that New Delhi had consistently raised, said participants on a background basis. However, several countries, particularly the “Friends of the System” group, including Norway, vehemently supported the draft text as the basis for concluding “Fish 2”, said participants. At one point, Singapore, a member of the “Friends of the System” group, asked the US and India if they had alternative proposals to discuss, said people familiar with the development. In response, India said that it had presented three alternative proposals arguing that the draft text contained “asymmetrical” disciplines, but the chair never responded to its concerns, said participants who asked not to be quoted. The US is understood to have said that members must focus on implementing the “Fish 1” disciplines to gain experience, said participants. Washington primarily opposed the seemingly weak disciplines in the draft text on overcapacity and overfishing, particularly on distant-water fishing, in which China and the EU are allegedly the major participants, said participants who asked not to be quoted. With the General Council meeting scheduled for 6-7 October, it remains to be seen how this legal conundrum will be resolved, the analyst said. WTO REFORM During the discussion on WTO reform, where members maintained entrenched positions on issues like de-linking dispute settlement reform from other matters, the DG seemingly remained defiant on the issue of the Secretariat’s “neutrality”, a concern raised by Paraguay and the US last week, said participants familiar with the discussions. The DG said that regarding concerns about the Secretariat’s “neutrality”, it is doing what some members want it to do, and its work can be discarded by those who do not approve of its initiatives, said people familiar with the development. Last week, during a plenary meeting on WTO reform, Paraguay strongly criticized the devaluing of “neutrality” by the Secretariat, a concern shared by the US. The DG, however, thanked Ambassador Petter Olberg of Norway, the facilitator on WTO reform, for his work. Privately, several countries appear to be disappointed with the facilitator’s work on account of him holding informal discussions with select countries while avoiding open-ended, bottom-up, plenary discussions. Some members have suggested a need for more open-ended meetings instead of the facilitator pushing ideas without revealing its proponents, said participants, who asked not to be quoted. AGRICULTURE Meanwhile, the chair of the Doha agriculture negotiating body, Ambassador Ali Sarfraz Hussain of Pakistan, reported on the outcome of his recent consultations and the 23 September meeting of the negotiating body on agriculture. “The prevailing mood among members is pragmatic,” Ambassador Hussain said, reaffirming his remarks at the 23 September meeting. “Most do not expect a major breakthrough at MC14, as engagement has diminished and negotiations have made little progress since MC13.” He did not indicate why he is not presenting a draft text, said a participant, who asked not to be quoted. Nevertheless, “almost all members expressed the view that agriculture must be part – one way or another – of the broader MC14 outcome,” Ambassador Hussain said. The chair said that options floated by members include an outline for post-MC14 work; a political declaration reaffirming members’ commitment to continue negotiations beyond MC14; the incorporation of key elements on agriculture and food security into a broader MC14 declaration or outcome document; and a package of “early deliverables” to assist the most vulnerable WTO members in addressing food insecurity. He informed members that the African Group and the Cairns Group of farm-exporting countries intend to put forward a new joint proposal for the agriculture negotiations, which “shows some promise of pulling members together in some direction.” On fisheries subsidies, the DG said that while members have different views on what can or cannot be achieved by MC14, virtually all expressed a commitment to move forward and to appoint a new chair to guide the negotiations. Ms. Okonjo-Iweala also said that it “looks certain that trying to focus ministers on delivering a (WTO) reform package for this organization is critical.” +
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