The 13th Ministerial Conference (MC13) of the World Trade Organization (WTO)
The 13th Ministerial Conference (MC13) of the World Trade Organization unfolded in Abu Dhabi, UAE, from February 26 to March 2, 2024, bringing together ministers from diverse developmental backgrounds and geopolitical perspectives. The conference delved into a spectrum of critical topics, such as food security, e-commerce, fisheries subsidies, WTO reform, domestic service regulations, and investment facilitation. Despite earnest endeavors to address the pressing challenges in global trade, the conference concluded with limited headway despite extensive deliberations.
Table of Contents
Key Outcomes of WTO’s 13th Ministerial Conference
Accessions
Ministers at the conference unanimously welcomed the accession of two least-developed countries, Comoros and Timor-Leste, into the World Trade Organization (WTO). With this significant development, the organization’s membership now stands at 166, representing an impressive 98% of global trade.
WTO reform
During MC13, ministers actively endorsed advancements in the ongoing WTO reform process, encompassing the organization’s deliberative, negotiating, and dispute settlement functions.
A. Dispute Settlement Reform: Ministers at MC13 conducted a thorough review of the progress made in fulfilling the commitment to reform, highlighting a comprehensive 36-page draft outlining essential reforms to the WTO’s dispute settlement system.
B. Reform of Deliberative and Negotiating Functions: The conference saw ministers expressing their appreciation for the work already undertaken in several key areas:
1. Improving the functioning of WTO Councils, Committees, and Negotiating Groups.
2. Enhancing the overall efficiency and effectiveness of the organization.
3. Facilitating increased member participation in WTO work, signifying a commitment to inclusivity and collaboration.
E-Commerce
During MC13, ministers made a crucial decision to extend the e-commerce moratorium, ensuring its continuity until MC14 or 31 March 2026, depending on whichever comes earlier. This decision reflects the commitment to maintaining the current framework for electronic commerce while providing a timeframe for potential future adjustments or discussions.
TRIPS non-violation and situation complaints
In a decision often associated with the e-commerce moratorium, ministers at MC13 opted to extend the moratorium on “non-violation” and “situation” complaints under the TRIPS Agreement. This extension prevents WTO Members from initiating complaints in dispute settlements related to intellectual property (IP) measures that, while not conflicting with TRIPS obligations, could still undermine the anticipated benefits outlined in the agreement. This strategic move reflects a continued effort to manage and navigate potential disputes in the evolving landscape of international trade.
During MC12, ministers made a significant stride by adopting special rules that expanded the accessibility of compulsory licenses for the production of Covid-19 vaccines. This proactive measure demonstrated a commitment to addressing the global health crisis. Additionally, ministers mandated negotiations during this session to consider the expansion of these special rules to encompass Covid-19 diagnostics and therapeutics.
However, at MC13, ministers acknowledged the work undertaken on this matter and observed the absence of a consensus regarding the extension of the product scope. Consequently, the special rules, initially applied to compulsory licenses for Covid-19 vaccines, will not be extended to cover the production of Covid-19 diagnostics and therapeutics. This decision reflects the complexities and challenges involved in reaching a consensus on crucial global health initiatives within the WTO framework.
Special and Differential Treatment
Ministers at the conference took a significant step by adopting a decision aimed at enhancing the utilization of special and differential treatment (S&DT) provisions, with a particular focus on those outlined in the Agreement on Technical Barriers to Trade and the Agreement on Sanitary and Phytosanitary Measures. This decision underscores a commitment to addressing the diverse needs of member countries and promoting inclusivity in international trade agreements, recognizing the importance of tailored measures to accommodate varying levels of development and capabilities among nations.
Plurilateral agreements and initiatives
Regrettably, at MC13, Members were unable to achieve a consensus on critical issues related to agriculture and food security, as well as the establishment of additional disciplines for fisheries subsidies. This impasse has led to an increasing prominence of plurilateral initiatives, which involve only a subset of the full Membership. The inability to secure unanimity underscores the complexity and challenges inherent in reaching agreements on these crucial matters, prompting a shift towards more targeted and cooperative efforts among like-minded nations.
Sustainability-Related Initiatives
Members have demonstrated collaborative efforts by forming various groupings to address sustainability concerns. The Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade, featuring 78 Members, has been actively engaged in identifying trade and trade-related measures and policies to mitigate plastics pollution. This initiative reflects a shared commitment to environmental responsibility and sustainable practices in international trade.
Additionally, progress reports on Fossil Fuel Subsidy Reform were submitted by 48 Members, indicating a collective dedication to addressing environmental challenges related to fossil fuel subsidies. These collaborative endeavors signify a recognition among Members of the World Trade Organization to actively contribute to sustainable and environmentally conscious trade practices.
Fisheries Subsidies
During MC12, members achieved a significant milestone by concluding the Agreement on Fisheries Subsidies (AFS), which explicitly prohibits the provision or maintenance of subsidies to entities engaged in illegal, unreported, and unregulated (IUU) fishing or the exploitation of overfished stocks. This marked a crucial step towards addressing sustainability and conservation concerns in the global fishing industry.
Building on this achievement, at MC13, ministers acknowledged and welcomed the substantial progress made in the 20 months leading up to the AFS’s impending entry into force. As of March 1, 2024, a noteworthy 71 Members have ratified the agreement, underlining a widespread commitment to combatting IUU fishing and promoting the responsible management of fisheries resources. This collective effort represents a positive stride towards fostering a more sustainable and environmentally conscious approach to global fisheries.
Agriculture and food security
Despite discussions on updating World Trade Organization (WTO) disciplines in agriculture being part of the agenda for Members since 2000, little progress has been achieved. Prior to MC13, there seemed to be a more optimistic outlook, suggesting a potential breakthrough. However, ministers once again encountered challenges and were unable to reach a consensus on crucial aspects, including the scope, balance, and timeline of agriculture negotiations. This persistent difficulty underscores the complexity and sensitivity surrounding agricultural issues in international trade, emphasizing the need for continued efforts to find common ground among Members.
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Written By: Dr. Kumar Ashutosh