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Info Service on WTO and Trade Issues (Sep25/16) WTO:
South rejects plurilateral bid by New Zealand, Norway & Singapore Geneva, 23 Sep (D. Ravi Kanth) -- New Zealand, Norway, and Singapore on 22 September seemingly failed in their attempt to convince the developing and least-developed countries (LDCs) at the World Trade Organization to embrace controversial plurilateral initiatives, while there is mounting opposition from many countries to any changes to the rules, practices, and provisions in the WTO and the Marrakesh Agreement, said people familiar with the development. During a meeting on the WTO reform track on "decision-making" on 22 September, it has apparently become sharply evident that opposition to attempts to change the consensus principle, the bedrock of decision-making in the GATT/WTO, appears to be hardening by the day, said a trade envoy, who asked not to be quoted. However, a group of members, especially the "Friends of the System" group led by Norway, Singapore, and Switzerland among others are trying to find some wiggle room to circumvent the practice of decision-making by consensus in certain specific cases like the controversial Investment Facilitation for Development Agreement (IFDA) and the E-Commerce Agreement (ECA), the envoy suggested. At the meeting, several developing and many least-developed countries sharply decried the proposal from New Zealand, Norway, and Singapore, as they consider it to be akin to "sugar-coating" tactics to persuade countries to join the plurilateral initiatives, even when these countries do not agree with the substantive issues, according to people familiar with the development. Several countries, including India, Pakistan, Turkiye, and Congo, are understood to have severely rebuked Singapore for what were described as petulant remarks directed at nations that raised sharp concerns about their two-page proposal, said a participant who asked not to be quoted. During the meeting to discuss the fundamental changes in "decision-making" - convened by the facilitator, Ambassador Katsuro Nagai of Japan - many members stated that discussions on the issue must be conducted on the basis of proposals submitted by members, rather than on the questions or matrix prepared by the facilitator, the person said. Initially, members focused on a proposal (WT/GC/REFORM/W/11) submitted by New Zealand, Norway, and Singapore, titled "Strengthening inclusivity of plurilateral initiatives." The three countries, who are members of the "Friends of the System" group that propelled the controversial WTO reform discussions, stated that the underlying objective of their proposal "is to address the resource and capacity constraints faced by developing and LDC (least-developed country) Members and ensure that they have access and means to meaningfully participate in the various stages of negotiating, joining and implementing plurilateral initiatives." The three proponents touted their ability to "provide meaningful support to developing Members and LDCs, so that they can better prepare to participate in plurilateral initiatives as soon as possible." The three countries noted that many LDCs that joined the IFDA did not join the controversial E-Commerce Agreement, suggesting that their initiative "envisages the creation of a platform to enable developing and LDC Members to gain easy access to relevant information on the range of resources that are currently available to help them participate in plurilateral initiatives." In short, the thrust of the proposal appears to be aimed at filling an information gap or deficit regarding the value of controversial plurilateral initiatives that were primarily cobbled together to advance the interests of developed countries, said a trade official from Africa who asked not to be quoted. The three countries, particularly Singapore, seemed to suggest that developing countries and LDCs do not understand the substance of the plurilateral initiatives, the African trade official added. SHARP REJECTION In sharp response to the claims made in the proposal, several developing and least-developed countries stated that it is not a lack of understanding of the substance of the plurilateral initiatives, but rather a disagreement with the substance being projected by the proponents, the African trade official said. Congo, an LDC in Africa, which spoke in French at the meeting, rejected the proposal on the grounds that their hesitation is not due to the analytics or substance underlying the plurilateral initiative, but rather their opposition to the very substance of the E-Commerce Agreement (ECA) and other plurilateral initiatives, said an Asian trade official who asked not to be quoted. "So, the framing in the proposal that members do not join plurilaterals because there is an information gap is not correct," the trade official said, adding that the mere provision of a portal or technical assistance would not resolve the problem. The second issue raised by many members revolved around the "neutrality" of technical assistance provided to convince members, said another trade official, who suggested that if proponents provide such assistance, they are bound to have a material interest in advancing their own plurilateral initiatives. Consequently, members formally raised the issue of the "neutrality" of the technical assistance suggested in the proposal. In the face of growing opposition to the proposal, Singapore reportedly took the floor towards the end of the meeting to suggest that countries like India, Pakistan, Indonesia, and Turkiye, among others, invariably tend to raise concerns/objections, the official said. The Singaporean trade representative mentioned Pakistan, which had advocated for providing technical assistance through a neutral source, by asking what Pakistan would do when it goes to buy a Toyota car - an analogy that apparently failed to convince members, the official said. Pakistan took the floor to protest the remarks made by Singapore, stating that it does not appreciate being singled out or categorized in a particular light, the official said. Later, Turkiye and India also intervened to condemn the remarks made by Singapore at the meeting, the official added. The United States reportedly suggested that there should not be any duplication in pursuing plurilateral initiatives, while Canada is understood to have raised several questions regarding the proposal submitted by the three countries, said people familiar with the development. During the discussion on "decision-making", members indicated that the two-minute time slot in the convening notice is too short, and they challenged the facilitator's attempt to guide the discussions based on his own questions, said people familiar with the discussions. On 7 September, the facilitator reportedly sent an email to members posing several questions on both decision- making and plurilateral initiatives. In his email (ICN/GC/Reform/6), the facilitator stated: "Building on our discussions in July, and with a view to deepening our understanding of the issues in a more focused manner, I invite Members, including proponents, to reflect on the following guiding questions." For example, he sought to know from members about the current practice of "decision-making by consensus and what do Members consider to be its essential features?" Many members, however, conveyed their opposition to the questions framed by the facilitator, insisting that discussions must be held on the basis of members' submissions. "So, instead of engaging now with the metrics, it is better that we take out the proposals and engage directly with the members and allow them to respond to the questions and allow other members to ask more questions, if they want," said a member who asked not to be quoted. +
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