The war in Ukraine and its global consequences loom over the 12th Ministerial Conference (MC12) of the World Trade Organization (WTO). Trade Ministers from EU Member States and the European Commission will be in Geneva from 12 to 15 June for the event. As a result of the Russian invasion of Ukraine, food security has been added to the already busy agenda.
Consensus decision-making at the WTO has greatly complicated discussions in recent weeks, due to the presence of Russia. De facto, the various texts to be adopted at the MC12 do not mention the war in Ukraine. “If one wants a multilateral declaration, it is impossible to mention this point, as decisions are made by consensus. We have accepted this condition as long as the situation in Ukraine is mentioned elsewhere”, explains a source. This is why the EU is organising an event in support of Ukraine in Geneva before the opening of MC12 on Sunday 12 June.
However, the consequences of the war will be addressed, notably in a ministerial declaration on food security. “The EU has been working hard with the other members to prepare a multilateral package on food security against the backdrop of an emerging food crisis caused by Russia, which is using food and wheat as a weapon of war”, said EU Trade Commissioner Valdis Dombrovskis, who will attend the MC12 meetings. Virginijus Sinkevičius and Janusz Wojciechowski, the European Commissioners for Fisheries and for Agriculture, will also be present.
The declaration is expected to be adopted “relatively easily” at the start of the conference, according to a second source. The text is expected to call for keeping markets open, limiting export restrictions, providing humanitarian aid in case of a food security crisis, and so forth.
A second ministerial declaration is expected to exempt the UN World Food Programme (WFP) from global food export restrictions or bans. However, some members expressed disagreement with the text. This is particularly true for India, a source told EUROPE. New Delhi imposed export restrictions on wheat in May and then on sugar.
Finally, the subject of agriculture includes a third ministerial declaration that sets out a work programme for the reform of the global agricultural system. The latter two statements were still under discussion at the time of writing. Ambassador Gloria Abraham Peralta (Costa Rica), who is chairing the agriculture talks, expressed confidence that an agreement could be reached at MC12.
The fight against illegal and harmful fishing
WTO members have long discussed the fight against illegal and harmful fishing. They will adopt a ministerial declaration to regulate and reduce subsidies that lead to overfishing.
Disagreements remain on differential treatment for developing countries. A majority of members believe that a transitional exemption to the text of 5-7 years would be reasonable, while others, such as India, are calling for 25 years, according to several sources.
For the EU, flexibilities are possible, but fair competition must also be ensured in the long run.
Lifting of patents on Covid-19 vaccines still pending
The framework for a temporary lifting of intellectual property rights on Covid-19 vaccines, which has been pending since October 2020, has still not been agreed at the WTO (see EUROPE 12956/29). At issue is the extent of the flexibilities on patents or the exemption arrangements for developing countries. A compromise had, however, been reached between South Africa, India, the United States and the EU, which had different positions (see EUROPE 12912/9).
Negotiations on the text among all members began in earnest on 6 June, according to Ambassador Lansana Gberie (Sierra Leone), who is chairing these discussions. At the WTO General Council on 7 June, he said he was “cautiously optimistic” about a deal at MC12.
EU wants to start work on WTO reform
Another major project of the MC12 is the reform of the organisation. The ambition is simply to start the work with a view to achieving concrete results by the 13th Ministerial Conference in two years’ time.
The EU believes the role of the WTO must be strengthened by fixing what is not working. The first aspect is the Appellate Body, which has been blocked for several years by the US. For this to happen, real involvement from Washington is necessary, as the European Trade Ministers recalled on 3 June (see EUROPE 12965/5). This commitment is to take the form of a ministerial declaration at the MC12.
Extending the moratorium on e-commerce
Each ministerial conference is an opportunity to renew the moratorium on e-commerce, which consists of not imposing tariffs on electronic transmissions. Members must therefore recommit themselves for two years, but several countries are reluctant. They consider that the moratorium deprives them of an important source of income.
For the EU, however, it would not make sense to apply tariffs on e-commerce at this time. “This would send the wrong message for the digital transition”, says a source. For the time being, consensus has not yet been reached.
In the margins of the MC12
Commissioner Valdis Dombrovskis will co-host a lunch with his counterparts from New Zealand, Kenya and Ecuador on Monday 13 June to discuss the potential climate coalition of trade ministers. This will be an opportunity to launch discussions with a group of countries on the idea announced a few months ago by the Commissioner. The aim at the moment is to launch the coalition next year.
In addition, a delegation of eight MEPs from the Committee on International Trade will be in Geneva on the same day for the Parliamentary Conference at the WTO. This will be an opportunity for them to call for more multilateralism and to promote the reform of the WTO (see EUROPE 12840/19). (Original version in French by Léa Marchal)