The 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) opens on Monday 26 February in Abu Dhabi, for at least 4 days. Expectations have not changed that much since the last ministerial meeting, held in Geneva almost 2 years ago (see EUROPE 12974/2). An overview of the various issues on the ministers’ table, from multilateral agreements to plurilateral initiatives.
Fisheries subsidies
This is surely the issue where members have the most hope of achieving a result. In June 2022, the ministers came to an agreement governing subsidies that contribute to illegal fishing. They did, however, leave one question unanswered: the subsidies that contribute to overcapacity and overfishing. A meeting has thus been arranged at MC13 to settle the issue.
A text was submitted to the ministers last week for them to agree on this ‘Phase II’ of the agreement. It represents a good balance of the discussions that have taken place in recent months, according to the head of the negotiations on this subject, Iceland’s Einar Gunnarsson.
It proposes a two-tier solution: the most developed members should apply strict standards to demonstrate that they have measures in place to ensure that their fisheries subsidies do not contribute to overfishing. Developing and least developed countries (LDCs) would benefit from less stringent rules, including exemptions for small-scale fishing.
A debate is expected to be held on the case of certain developing countries that fish a lot and on a potential transition period for certain developing members as well.
Agriculture
The reform of the world agricultural system is further dividing WTO members. In Geneva in 2022, they failed to agree on a text. Even today, the rules on subsidies, public food storage programmes and export restrictions are problematic.
Failing an overall agreement, the EU hopes at least to identify a roadmap for further work, “in particular on trade distorting domestic support”, according to a senior European official.
Intellectual Property
WTO members managed to reach an agreement at MC12 on the intellectual property of Covid-19 vaccines, but were due to reach a decision on an additional point 6 months later. The 2022 agreement provides flexibilities to WTO rules on intellectual property to manufacture vaccines against Covid-19 and a decision had to be taken to extend these flexibilities to diagnostic tools and treatments against Covid-19.
The WTO delegations did not converge on this issue, and positions remained unchanged between supporters and opponents of extending the agreement. Two reports summarising the state of discussions were submitted to ministers for the MC13. A decision on this matter is no longer expected.
WTO reform
The long-awaited reform of the Organization will not be adopted at MC13. Members agree on the importance of this work, in particular on the need to have a fully functioning dispute settlement body, but there is still a long way to go to agree on the future framework. Even the working method is subject to debate within the WTO. “Significant progress has been made, but it’s clear that we’re not there yet”, admits a senior European official.
At this stage, the EU is hoping for a roadmap outlining the way forward.
As for the EU Council, which is due to adopt conclusions at the start of MC13, the ministers want to stress the importance of “a fully functional dispute settlement system”. In addition, “agreeing on a lasting solution to the current blockage of the Appellate Body is an absolute priority”, say the authors of a preparatory version of the conclusions, which EUROPE has consulted.
The MEPs broadly agree with them on this point, as they indicated in a resolution (see EUROPE 13346/18).
E-commerce
As was the case 2 years ago, the moratorium on e-commerce is likely to be in the news at MC13. The question is whether or not to extend this text, which abolishes customs duties on electronic transmissions.
The EU is arguing for a definitive extension, but some WTO members are opposed. Therefore, a two-year extension would already be good news, according to a senior European official.
For the time being, the ministers will not have a joint text before them, but four proposals from different countries or groups of countries.
Negotiations are also underway at the WTO on a work programme for e-commerce. This covers e-commerce in a broader sense (connectivity, infrastructure, differences between members, etc.).
Facilitating investment
One of the most important plurilateral initiatives concerns investment facilitation. This joint initiative has the support of 122 member countries and aims to develop a global agreement to increase the transparency and effectiveness of investment rules. The main objective is to attract investment, particularly in the least developed countries and developing ones.
The initiative should be formally concluded at MC13, but is not binding, unlike agreements reached by consensus between all members.
Environment
Discussions linking trade and the environment will be given greater prominence at this ministerial meeting in Abu Dhabi. Several groups of countries will be presenting joint initiatives on a range of subjects relevant to environmental protection: plastic pollution, trade and sustainable development, and fossil fuel subsidies.
Membership
Finally, the MC13 should be an opportunity for the Comoros and East Timor to become members of the WTO. The accession packages for these two countries, setting out the criteria for their participation, will be submitted to the ministers, with a view to a formal decision on 26 February, at the opening of the ministerial meeting. (Original version in French by Léa Marchal)