On 17 June 2022, the 12th Ministerial Conference (MC12) of the World Trade Organization (WTO) ended with a series of agreements, some of them historic (see EUROPE 12974/2). The negotiations had been difficult and a lack of consensus had been noted on the subject of agriculture.
A date has been set for the 13th Ministerial Conference (MC13) in February 2023, in Abu Dhabi, where many results are expected, notably on the reform of the Organization. Anticipating difficulties in achieving this, WTO Director-General Ngozi Okonjo Iweala has already convened a meeting of senior officials (deputy ministers or ministers of state, according to the WTO) on 23 and 24 October in Geneva, to make progress on certain issues and “ensure a productive MC13”.
Fisheries subsidies
The MC12 started without any prior agreement between the delegations on the main issues. In the early hours of 17 June 2022, after 3 days and 3 nights of intense discussions, WTO members had nevertheless adopted a decision banning subsidies for illegal, undeclared fishing activities that contribute to overfishing. It took the WTO 17 years to achieve this result.
Twelve months after this key step, ten members, including the EU (see EUROPE 13188/34) officially deposited their instrument of acceptance of the agreement with the Organization. Two thirds, i.e. 109, are needed before the text can finally come into force.
In addition, the agreement commits the members to continuing negotiations on the issues that have not been resolved and to formulating recommendations for MC13. The aim is to extend the text to subsidies that contribute to overcapacity and overfishing. The members had given themselves a maximum of 4 years to have these included in the Agreement.
According to the Icelandic ambassador, Einar Gunnarsson, who is chairing discussions on this subject at the WTO, Fisheries Week, which was held from 5 to 9 June in Geneva, helped to move the work forward. At this session, he called on the delegations to move towards a joint text for the autumn. He hopes to finalise the negotiations in time for the General Council meeting in December.
Pandemic response and intellectual property
On this subject too, the trade ministers managed to overcome their differences and agree on a decision relaxing the rules on intellectual property for Covid-19 vaccines.
However, the decision only applies to vaccines, their components and means of production, and not to diagnostic tools and treatments, as requested by several delegations. By way of compromise, the members have undertaken to decide on a possible extension within 6 months of the adoption of the Agreement, i.e. before 17 December 2022.
Unsurprisingly, the delegations in Geneva were unable to reach agreement on such a decision within the allotted time (see EUROPE 13088/20). Since then, the question has remained open in Geneva and the members do not seem ready to reconcile their positions (see EUROPE 13136/18). Some of them have commissioned internal studies on the extension of intellectual property flexibilities and are awaiting the results.
At a meeting on 8 June, the Thai ambassador to the WTO, who is chairing these discussions, noted that “things had not moved very much in recent months”.
E-Commerce
The moratorium on e-commerce had been given a reprieve: it has been extended until MC13, and no later than 31 March 2024. This allows all digital products transmitted electronically to be exempt from tariffs.
While the EU and other powers such as the United States and the United Kingdom support this measure, many developing countries would like to get rid of it. The moratorium is depriving them of substantial income, they explain.
Here again, discussions are at a standstill, with differences between WTO members still marked.
Agriculture
One year after the failure of negotiations to reform the world agricultural system, the main point of divergence remains the same: public storage of food for reasons of food security.
At a meeting in early May 2023, India maintained its position, which had contributed to the collapse of the discussions at MC12: it has no intention of revising the existing framework on public stocks.
In addition, several groups of member countries are still at loggerheads over the issue of subsidies and safeguard mechanisms for agricultural imports.
WTO reform
The members’ objective is still to have an operational dispute resolution system accessible to all by 2024. However, the members are still not working on a common basis to reform the Organization, and the deliberation system continues to divide them.
The United States continues to refuse to appoint members to the Appellate Body (DSB), blocking its operation despite repeated requests from 129 other members.
On the other hand, some delegations (such as India) have recently refused to use the alternative Appellate Body that allows them to get around the DSB blockage.
In February 2023, the EU submitted proposals to improve the functioning of the WTO in the broadest sense (see EUROPE 13127/6).
The WTO General Council on 3 and 4 May provided an opportunity to discuss this proposal and other texts submitted by several delegations. Progress has been made, with many practical solutions identified by members. They hope to move on to drafting written proposals during the summer, bringing together the various contributions submitted. (Original version in French by Léa Marchal)