Industrial subsidies undermine rules-based international trade by creating unfair competition, agree Europeans and like-minded partners. However, tackling the problem head on at the World Trade Organization (WTO) is not an obvious matter. Several of the organisation’s member countries, led by China, use subsidies to promote their industry on the world stage and do not wish to regulate this practice.
The EU is therefore aware that new international rules in this area are not within reach, and does not expect any major results from the 13th WTO Ministerial Conference (MC13). A start to the work would be welcomed, however. “We need to open up the conversation, the priority is to have a structured discussion at the WTO. At the same time, we can use autonomous measures on the one hand, and cooperate with allied countries on the other”, said Ignacio Garcia Bercero, Director General at the European Commission’s Directorate-General for Trade, at an event on green subsidies organised by MEP Reinhard Bütikofer (Greens/EFA, German).
Europe Jacques Delors political analyst Cláudia Azevedo shared the impression that no major breakthrough is expected at MC13. “Members could at least agree to start discussions, and launch a working channel, for example”, she said.
Other projects for MC13. With two weeks to go until MC13, WTO members still have not been able to agree whether or not to extend the agreement on intellectual property for Covid-19 vaccines to include medicines and diagnostic tools.
As a solution to the deadlock, several delegations, including the EU and Japan, are proposing a WTO recommendation rather than a decision. For South Africa, Mozambique, Indonesia, Bolivia and India, this is not acceptable, as the members were mandated at MC12 to adopt a decision on the extension, not a recommendation.
On the subject of WTO reform, and in particular its dispute settlement body, no concrete result is expected at the end of MC13. For the time being, the members do not even agree on the working method: they are at loggerheads over whether or not to formalise the work, i.e. to put it on the agenda of the dispute settlement body or the General Council.
Discussions are a little more advanced on e-commerce, and there is reason to be more optimistic about the decision to extend the moratorium on e-commerce. Four draft texts are currently on the table, including two to extend the moratorium, which the EU supports.
Finally, phase 2 of the agreement on subsidies that lead to overfishing could be concluded at MC13, according to a source in Geneva. A draft text is due to be sent to ministers shortly. (Original version in French by Léa Marchal)