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TWN
Info Service on WTO and Trade Issues (Feb24/08) Significantly, several mandated issues from MC12 held in Geneva in June 2022 such as the “TRIPS waiver extension”, in which the WTO members have seemingly failed to decide on the extension of the MC12 Ministerial Decision on the TRIPS Agreement to COVID-19 diagnostics and therapeutics, are listed in the last paragraph of the draft ADMD. “Besides, almost every paragraph is still square bracketed, implying there is no convergence/consensus yet,” said people familiar with the discussions. The differences over various issues are laid out in an unofficial room document (RD/GC/29) issued by the chair of the WTO’s General Council, Ambassador Lesiba Athaliah Molokomme of Botswana, on 7 February. The 12-page draft ADMD, seen by the SUNS, indicated text in black colour on issues on which there is convergence, text in blue colour signifying where convergence has not been achieved on the language, and finally text in purple colour like on dispute settlement reform where work is being undertaken in other processes. To start with, paragraphs 1 to 4 of the draft ADMD, in black colour text, on the introduction to the 13th ministerial conference that is coincidentally taking place during the WTO’s 30th anniversary, reaffirmed the 164 trade ministers’ commitment “made at our Twelfth Session to work towards necessary reform of the WTO to improve all its functions and acknowledge the progress made in this regard.” It notes “the work done to date to improve the daily functioning of WTO Councils, Committees and Negotiating Groups with a view to enhancing the WTO’s efficiency, effectiveness, and facilitation of Members’ participation in WTO work.” According to the draft ADMD, trade ministers “instruct the General Council and its subsidiary bodies to continue to conduct this work and report progress as appropriate to the next Ministerial Conference.” DS REFORM Dispute settlement (DS) reform, which is one of the major areas of reform agreed to at MC12, is being placed in square brackets in paragraphs 5 and 6 of the draft ADMD. The DS reform discussions, being conducted by a “volunteer facilitator” (the term coined by the United States) in an informal setting, are yet to address the most important pillar of the Appeal/Review Mechanism. Without knowing whether there will be a robust two-tier dispute settlement system as demanded by a majority of WTO members, the draft ADMD merely says in paragraph 6: “We resolve to preserve and strengthen the ability of the multilateral trading system, with the WTO at its core, to respond to current trade challenges, take advantage of available opportunities, and ensure the WTO’s proper functioning. [We acknowledge that Members have engaged on and explored some of these issues and recognize the need to deepen dialogue.]” The above language suggests that there is very little likelihood of the restoration of the two-tier dispute settlement system at MC13, thus undermining the MC12 mandate, said people familiar with the discussions. DS reform has become a battle between a large majority of WTO members seeking a robust two-tier system on the one side, and one major industrialized country that seems “hell-bent” on diminishing the role of the Appellate Body, on the other, said people who asked not to be quoted. TRADE & INDUSTRIAL POLICY In paragraph 7 of the draft ADMD, which deals with trade and industrial policy, and is allegedly being introduced by the European Union, it appears that there is no agreement yet on the language to be included in this area. Consequently, it remains in square brackets in blue colour text. Paragraphs 8 and 9 of the draft ADMD, which remain in square brackets in blue colour text, deal with a new area called “Trade and Inclusion”, particularly the need to keep global supply chains open without disruptions. Paragraph 9 proposes that: [“We underscore the importance of open, inclusive, resilient, sustainable, diversified and reliable global supply chains, and their role in ensuring that production and trade can more easily recover from crisis and disruptions. We note the work being done in WTO bodies, especially on transparency including information sharing, and welcome efforts to promote the resilience of global supply chains.” SUSTAINABLE AGRICULTURE Paragraph 10 of the draft ADMD contains language in square brackets in blue colour text on “sustainable agriculture”, implying that there is no convergence yet on the language to be inserted on this issue. However, in paragraph 11, it is proposed that: “We reiterate the centrality of the development dimension in the work of the WTO. We recognize that the full integration of developing country Members including LDC Members in the multilateral trading system is important for their economic development and stress the need to make positive efforts so that the gains from trade benefit them in accordance with the Marrakesh Agreement.” POLICY SPACE FOR INDUSTRIAL DEVELOPMENT In paragraphs 12, 13, and 14 of the draft ADMD, which appear as a counter to the EU’s industrial policy, the developing countries, particularly the African Group, seemingly called for policy space for industrial development, said people familiar with the development. The proposed language in paragraphs 13 and 14 states: “We reaffirm the provisions of special and differential treatment for developing country Members including LDCs as an integral part of WTO Agreements. We note the progress [in negotiations] [on existing special and differential treatment provisions. We] [and] underline the [urgency] of continuing work in the CTD (Committee on Trade and Development) SS (special session) and other relevant bodies of the WTO to improve the application of special and differential treatment [as agreed under existing mandates] and report on the progress to the General Council and subsequently to MC14. [We recognize the need for effective coordination of development work in the WTO and recall the role of the Committee on Trade and Development (CTD) to serve as a focal point for consideration and coordination of work on development in the World Trade Organization (WTO) and its relationship to development-related activities in other multilateral agencies.]” TESSD Issues concerning trade and transfer of technology, graduation of the least-developed countries (LDCs) from the LDC category, the Aid for Trade Initiative, the role of MSMEs (micro, small, and medium enterprises) and sustainable development among others were placed in square brackets in paragraphs 15 to 25. In paragraph 25, the proposed language on issues concerning trade and environment has been placed in square brackets. It appears that the WTO Director-General and the EU seem determined to bring in the issue of trade and environment using the chapeau of the Marrakesh Agreement, said people familiar with the discussions. The EU, which is championing the informal Trade and Environmental Sustainability Structured Discussions (TESSD), seems to want to include it in the ADMD through the back door, said people familiar with the discussions. Consequently, the proposed language on this controversial issue in blue colour text in paragraph 25, is as follows: “[We reaffirm the importance of the contribution that the multilateral trading system can make to addressing the global environmental challenges and promoting the UN 2030 Agenda and its Sustainable Development Goals (SDGs) in its three dimensions, insofar as they relate to WTO mandates and in a manner consistent with the Members’ respective needs and concerns at different levels of economic development. In this regard, we will promote cooperation on environmental aspects of trade, innovation, and technology transfer, particularly to developing members and Least Developed Countries (LDCs). Recalling the 1994 Marrakesh Ministerial Decision and subsequent ministerial decisions on trade and environment, the Committee on Trade and Environment (CTE) must continue to promote Member’s engagement on its agenda, including by fostering transparency and structured dialogue on trade-related aspects of environmental measures as well as their effects on market access, organizing the sharing of Members’ practices and experiences, identifying trade policy tools that facilitate trade while contributing to addressing global environmental challenges, revitalizing its procedures, and collaborating with other WTO bodies as appropriate. We recognize the ongoing efforts of the CTE, including hosting Thematic Sessions to allow Members to deepen discussions and explore new topics with inclusivity and transparency, reaching out to the secretariats of international organizations, and learning views from external stakeholders. The CTE will provide a factual report on its activities to the General Council towards MC14, offering recommendations, if needed, that reflect the discussions among Members.]” MC13 DECISIONS/DECLARATIONS In paragraph 26 of the draft ADMD, the proposed decisions/declarations to be issued at MC13 are spelled out in purple colour text, implying that work is still ongoing in different negotiating bodies. Thus, paragraph 26 states: “We acknowledge progress/welcome outcomes as reflected in specific decisions/ declarations/decide or guide on WTO Negotiations: a. Agriculture b. Fisheries Subsidies i. Welcome deposits of instruments of acceptance and thank contributions to Fish Fund ii. Fish 2 c. S&DT d. [catch all messaging on other negotiating areas in Negotiating Groups]” Further, in paragraphs 30 to 31, several other issues are included in square brackets in blue colour text. These issues include: * [Cross-border Telemedicine Services]; * [Cost of Remittances]; * [TRIPS Agreement – Convention on Biological Diversity (CBD)]; * [Trade and Crisis Response]; * [Trade and Debt]. In the last paragraph of the draft ADMD, outcomes arising from specific decisions/declarations/regular work are listed in purple colour text, implying work in progress. The outcomes are as follows: * E-Commerce Work Programme and Moratorium; * TRIPS Non-Violation and Situation Complaints; * Work Programme on Small Economies; * SPS (sanitary and phytosanitary measures); * LDC Graduation – Annex 2; * LDC issues (Preferential Rules of Origin for LDCs, LDC Services Waiver and DFQF market access); * TRIPS Waiver Extension; * Emergency Response to Food Insecurity. +
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