“I am still very hopeful that we’re going to be able to deliver”, said the World Trade Organization (WTO) Director-General, Ngozi Okonjo-Iweala, on the second day of the organization’s 12th Ministerial Conference (MC12) on Monday 13 June. However, the various texts on the table did not reach a consensus on the third day, despite intense discussions between all members in small groups and bilaterally. Several sources did say, though, that a negotiation process has begun that transcends individual issues, in which delegations can compromise on one text if they receive a quid pro quo on another.
Food security
The response to the current food crisis is the issue that seems to be closest to agreement at this stage. Two texts could be adopted: a declaration to limit export restrictions and a binding ministerial decision to exempt the World Food Programme (WFP) from export restrictions.
On the first, broad support from members was noted during the first meetings, with the exception of three members who had reservations about the text. These members were India, Egypt and Sri Lanka, which want to settle the issue of public food stocks at the WTO before committing to export restrictions. They are also concerned about the consequences of the declaration for countries that are net food importers.
The situation is similar for the second text, which is opposed by only two countries: India and South Africa. They question the effectiveness of the WFP in addressing food insecurity and, therefore, the usefulness of exempting the programme from export restrictions.
The facilitator of the negotiations and Kenya’s Trade Secretary, Betty Maina, said she would hold consultations with both countries to convince them. It is no longer a question of going back on the text, she said.
On Tuesday, members also discussed the work programme for a reform of the global agricultural system.
Response to the Covid-19 pandemic
WTO members are expected to reach a declaration on trade and health and a decision on the intellectual property rights of Covid-19 vaccines. Regarding this last text, the most sensitive parts are still open. It is now the details of the beneficiary countries with access to the intellectual property flexibilities that are most debated, according to an EU source.
The text under discussion initially proposed that developing countries should benefit from these flexibilities if they did not export more than 10% of the world’s vaccine doses. China has been opposing this last mention in the text for several weeks, which is, on the other hand, particularly dear to the United States. Washington and Beijing are therefore in discussions to try to reconcile their positions.
As for the scope of the TRIPS waiver, a consensus should not be difficult to find, once the previous issue is settled, according to the same source. While these difficulties are not insurmountable, the time remaining before the scheduled end of the MC12 on 15 June may be too short to reach a consensus, say several sources.
Overfishing
An agreement to remove subsidies that lead to illegal fishing is still a long way off, in the eyes of several delegations. One source describes this outcome as “unlikely” on the third day. After 20 years of negotiations, concerns remain about the text of the agreement, in particular about a transitional period for developing countries. India, for example, is calling for a 25-year period to adapt and implement the elements of the future agreement, while the majority of members agree on a period of 5 to 7 years.
This is why Ms Okonjo-Iweala announced the launch of a voluntary fisheries funding mechanism on 14 June. This fund, financed by donations, should be used to assist developing countries in implementing the agreement on fisheries subsidies. The EU is expected to be among the donors, according to the EU Commissioner for Fisheries, Virginijus Sinkevičius, on 14 June: “The European Commission is prepared to provide a financial contribution [...] we hope that the other WTO members can join us; the more we are, the faster developing countries can fully comply with the agreement”.
The WTO hopes to raise $10 million initially and $20 million later. Ngozi Okonjo-Iweala also said that she had received about $5 million in pledges.
Organisational reform
Members are close to an agreement, according to Jamaica’s Trade Minister, Kamina Johnson Smith, who is leading the discussions. One of the issues that remains open is whether the work on reform should be conducted in the General Council at the WTO or in sub-groups.
E-commerce
A handful of members continue to explicitly oppose the extension of the moratorium on e-commerce. This text abolishes all tariffs on electronic exchanges since 1998 when it was regularly renewed. According to a source close to the discussions, this position, affirmed by three or four members, could be part of the negotiating strategy to obtain concessions on other texts.
Negotiations on the various dossiers continued in Geneva in the evening before tomorrow’s scheduled closure day. The organisers have not yet given any indication of a possible extension of the MC12. At the time of writing, no text had been agreed by all members. (Original version in French by Léa Marchal)