World Trade Organization members echoed their differences over the priority issues to be taken up at the upcoming senior officials meetings, with a majority of members coalescing around the second wave negotiations of the fisheries subsidies agreement, reform of the dispute settlement system – including WTO reform and agriculture, WTD has learned.
WTO Director-General Ngozi Okonjo-Iweala told a meeting of the Trade Negotiations Committee that members should make use of the October 23-24 senior officials meeting to “narrow down realistic deliverables” for agreement at the WTO’s 13th Ministerial Conference in early 2024.
She emphasized that acceptance of the Fisheries Subsidies Agreement by two-thirds of the membership is an area where a political push will be essential on the road to MC13.
At the meeting, China’s trade envoy Ambassador Li Chenggang said that “For MC13, our priority issues should be those with clear MC12 mandate and urgently needed by people, including dispute settlement reform, Fisheries Subsidies, food security, development, etc.”
Australia is understood to have spoken about agriculture, particularly reduction of domestic subsidies, fisheries subsidies and WTO reform said people familiar with the discussions.
While a large majority of countries want a permanent solution for public stockholding programs for food security, several members of the Cairns Group, led by Australia, emphasized domestic support, said people familiar with the discussions.
India apparently raised four issues of highest priority for the MC13. They include a permanent solution for public stockholding programs for food security, fisheries subsidies anchored on common but differentiated responsibilities, dispute settlement system reform and termination of the moratorium on electronic transmissions.
Indonesia, the coordinator of the Group of 33 countries, spoke about the permanent solution for public stockholding programs for food security, fisheries subsidies, reform of the dispute settlement system, paragraph eight of the TRIPS agreement to extend the treatment accorded to vaccines to diagnostics and therapeutics and e-commerce among others.
The African Group raised issues on development, including its ten specific proposals seeking improvements in the special and differential treatment, and in agriculture, the PSH issue, as well as the reform of the institutional issues in the reform of the WTO, said people who asked not to be quoted.
The least-developed countries flagged the LDC graduation agreement, agriculture focused on PSH, and the TRIPS issues, said people who asked not to be quoted.
The European Union flagged the reform of the dispute settlement system as its top priority. It called for credible reforms in agriculture and development.
Coming to the specifics of the statements, China’s trade envoy said given the frank and solution-oriented discussions and limited time frame, members must continue “to work hard and focus on remaining core issues with pragmatic spirits, so that we could move to the text drafting stage after the summer break and finish text-based discussions by the end of 2023.”
The European Union’s trade envoy, Ambassador Joao Aguiar Machado said “Restoring a well and fully functioning dispute settlement system in the WTO is the top priority.” He said members “must aim for a landing zone agreement on DSU reform as a deliverable at MC13 and we cannot miss this political opportunity.”
He continued, “The European Union is keen to see ongoing discussions continue in a result-oriented manner and start a text-based discussion after the summer.” He said by the time of the senior official meeting in October in Geneva, “technical discussions on the text should be sufficiently advanced to allow for political discussions. We place, technical discussions on the text should be sufficiently advanced to allow for political discussions.”
Indonesia’s trade envoy Ambassador Dandy Iswara said “Our utmost priority is to make Appellate Body operational as mandated by the DSU.” He said, “This issue can be resolved in a separate manner, and delinked with the discussion on the dispute settlement reform as a whole.”
On fisheries subsidies, China said “ with the deepened understanding among members through the well-organized four fish weeks, we are looking forward to receiving the new chair’s text, and having text-based negotiation starting from September.” China cautioned the chair of the Doha fisheries subsidies negotiations Ambassador Einar Gunnarsson of Iceland to adhere to “the mandate and establishing fair and balanced discipline is of vital importance.”
China said, “Sustainability criteria should be the core principle for the disciplines, in particular with regard to the subsidies for the fishing activities beyond members’ jurisdiction.”
The EU urged all members to complete their ratification of the phase one agreement so it can enter into force by MC13.
Indonesia issued a strong statement on fisheries subsidies saying “There is a wide call for the agreement to focus on the need to discipline large-scale industrial fishing, who undoubtedly responsible for the depletion of global fish stocks.”
The Indonesian trade envoy emphasized that “ It is also important to ensure effective and appropriate SDT (special and differential treatment) as an integral part of the comprehensive agreement.” Indonesia said it had recently submitted document 172, which is its attempt in bridging differing views through an alternative approach.
On food security, China said, “in order to reach realistic and substantial outcomes in the next few months, members should be encouraged to contribute with specific ideas and proposals.”
On agriculture, the EU expressed concern “that with a few months to go, there is still no convergence and no clear candidates for deliverables.” It urged “all Members to step up engagement on selected issues.”
The EU’s trade envoy said, “It is clear that not everything will be possible, but it is important to look for deliverables, which strengthen the agricultural pillar and support WTO reform.”
The EU believes the MC13 “should provide guidance on reforming trade-distorting domestic support, including for cotton, as well as on the permanent solution for the PSH, given their impact on food security. MC13 could also help provide guidance on reforms of agricultural policies taking account of both trade distortion and environmental sustainability.”
The EU also said that “The current food security context requires us to look at a possible food security deliverable that could include advancement on export restrictions and transparency across all pillars.”
Indonesia, which is coordinating the G-33 group, said categorically that “it is important to expedite our works and make real efforts to bridge the persisting gap on this issue, especially with regard to PSH.” Indonesia said “along with proponents continue to see the importance of text-based negotiations and this should be based on document Job/GC/ 229”adding that “This document represents the interests of 80 Members and more than 80% of the world's population.”
On development, the EU said,” we are expecting graduated LDC smooth transition can be early harvested.” As regards the G90 proposal, the EU said “if we are unable to reach consensus on all 10 deliverables, at least we should harvest some of them.
Earlier, the chairs of the different negotiating bodies presented their assessments, with the chair of the Doha fisheries subsidies negotiations expressing confidence at the manner in which negotiations are proceeding in his dossier.
The chair of the Doha agriculture negotiations also delivered an optimistic statement on the recent initiatives taken up in the negotiations, suggesting that the discussions will be resumed after September on major issues.
The chair of the Doha development negotiating body, however, said work on the ten agreement-specific proposals will be accelerated after the summer break, suggesting that a greater degree of engagement is needed.
The DG said she expects the senior officials to provide the “necessary political push” and “help solve specific problems” to advance work in preparation for the ministerial conference. “If we get this right, it will be a boost for a successful MC13,” she said.
Ms. Okonjo-Iweala noted that the senior official meeting will provide an opportunity “to take stock of where we are” and identify “the challenges, gaps, and opportunities.” She laid out the ground rules for the SOM, urging capital-based government officials to come to Geneva not with “well-known positions,” but with “realistic expectations of what is truly doable” for MC13.
Meanwhile, Deputy DG Anabel Gonzalez is apparently leaving her job for greener pastures, said a trade envoy, who asked not to be quoted.
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