China lashed out at the United States at the World Trade Organization’s General Council meeting, charging that Washington’s “tariffs on its trading partners, including China, unilaterally and arbitrarily, blatantly [are] violating WTO rules.”
That sentiment apparently was echoed by the European Union and several other countries, said people familiar with the discussions. Chinese trade envoy Ambassador
Li Chenggang said “the world faces a series of “Tariff Shocks” the United States has “imposed or threatened tariffs on its trading partners, including China, unilaterally and arbitrarily, blatantly violating WTO rules.” These “Tariff Shocks” “heighten economic uncertainty, disrupt global trade, and risk domestic inflation, market distortion, or even global recession.”
He argued that the WTO’s “rules and institutions are a public good for all Members,” insisting that, “No Member has the right to undermine its authority.” Moreover, “the stakes are high for all members, big or small,” the Chinese trade envoy said, adding that “that this critical juncture, as a rule-based organization regulating the global trade, the WTO must have its voice.”
Washington countered by pointing out that China continues to operate as a non-market economic system and charged that it habitually breaches WTO regulations. The United States also criticized China's lack of transparency and its disregard for WTO oversight.
The United States also bemoaned the WTO's current inability to address China’s market-distorting policies, such as unfair subsidies, saying that it significantly diminishes the organization's effectiveness. The United States said that the status quo at the WTO has to change if there is to be progress, said a person who asked not to be quoted.
At the meeting, WTO Director-General Ngozi Okonjo-Iweala is understood to have expressed her grave worries about the ongoing developments triggered by one member, saying it is not in the interest of anyone to destabilize the multilateral trading system, according to the people present at the meeting.
The DG said, “It is imperative that we continue to strengthen the multilateral trading system, ensuring that it remains a source of stability and opportunity for all members.”
“The WTO was created precisely to manage times like these – to provide a space for dialogue, prevent conflicts from spiraling, and support an open, predictable trading environment,” she said.
In her intervention, Ms. Okonjo-Iweala underlined the importance of using the current situation to push ahead with reform of the WTO. “The world has changed. We cannot come here to continue doing the same things we've been doing.”
Also at the meeting, two controversial issues – incorporating the Joint Statement Initiative on electronic commerce and Investment Facilitation for Development – failed to secure consensus, after several members opposed their integration on grounds it would undermine “policy space.”
The proponents of the JSI on ecommerce comprising Albania; Argentina; Australia; Bahrain, Kingdom of; Benin; Brunei Darussalam; Burkina Faso; Cabo Verde; Canada; Chile; China; Costa Rica; European Union; The Gambia; Georgia; Hong Kong, China; Iceland; Israel; Japan; Kazakhstan; Kenya; Korea, Republic of; Kuwait, the State of; Kyrgyz Republic; Lao People's Democratic Republic; Liechtenstein; Malaysia; Mauritius; Mongolia; Montenegro; Myanmar; New Zealand; North Macedonia; Norway; Oman; Paraguay; Peru; Qatar; Saudi Arabia; Singapore; Switzerland; Ukraine; United Arab Emirates; and United Kingdom, made a strong pitch for integrating “the Joint Statement Initiative on Electronic Commerce.”
The United States, which has not joined the agreement though it was a key proponent in launching the negotiations, apparently chose to remain silent, said a participant who asked not to be quoted. The proponents touted the benefits from this agreement recognizing “the importance of global electronic commerce and the opportunities it creates for inclusive trade and development, and the important role of the WTO in promoting open, transparent, non-discriminatory and predictable regulatory environments in facilitating electronic commerce.”
Cameroon, which is hosting the WTO’s 14th ministerial conference next year, piloted the proposal from around 126 countries for incorporating the Investment Facilitation for Development in the Annex 4 of plurilateral agreement in the Marrakesh Agreement that established the WTO in 1995.
Opponents of the proposal to integrate electronic commerce into the Annex 4, several developing countries– South Africa, Indonesia, Turkey and India among others – rejected the proposal on grounds that it would deny their policy space.
As regards IFDA, India, South Africa and Turkie among others opposed the incorporation into Annex 4 of the Marrakesh Agreement on “systemic grounds.” India apparently said that the IFDA, which has been repeatedly rejected by members, should not be included in the GC agenda, said people familiar with the developments
In an apparently sharp rebuke on the opponents to the JSIs, the DG said “oh, I am a bit concerned to see this dynamics here, you don't want multilateral outcomes, you don't want plurilateral outcomes, so what should we do,” said people familiar with the GC proceedings.
While chairs for many WTO bodies were announced, there was also lack of consensus on chairs for subordinate bodies, said people familiar with the developments.
Apparently, Pakistan’s trade envoy Ambassador Ali Sarfraz Hussian is being considered for the chair of the Doha agricultural negotiating committee, which is being referred to as the Committee on Agriculture - Special Session, said people familiar with the development. Earlier, Guayana’s trade envoy was being considered for chair, but some members seem to have opposed the choice.
At the meeting, the United States said that the Asian Group and the Caribbean and Latin American members must resolve the issue, said people familiar with the discussions.
The slate of chairs announced by the outgoing GC chair Ambassador Petter Olberg of Norway are as follows:
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