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Little takeaways from tiresome WTO MC13

ASJADUL KIBRIA, FROM ABU DHABI | Sunday, 3 March 2024



Graduating LDCs get little to laugh about, nor even guaranteed continuity of market-access privileges, as prolonged parleys at the WTO ministerial ended with late-night declaration encoding developed-developing divide over trade rules.
Extended until midnight Friday, the 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) announced its conclusion formally early hours of Saturday in Abu Dhabi when the whole Arab city was fast asleep.
With a limited number of ministers and delegates, the brightly lighted Abu Dhabi National Exhibition Centre (ADNEC) looked almost deserted while few journalists and civil-society members were seen struggling for decoding the stipulated outcome of the ministerial declaration and decisions adopted by the members.
As there was no consensus among the developed and leading developing countries on two critical issues, agriculture and fisheries subsidies, no deal was reached thereof either.
India and some other developing nations strongly pushed for permanent solutions on public stockholding (PSH) of foods, but to no avail in the end. The United States (US) and the European Union (EU) duo wouldn't budge an inch allowing any compromise on the issue, terming it a trade-distorting measure. Thus, the matter remained unresolved, meaning India should continue to enjoy the so-called 'peace clause' agreed in the Bali ministerial a decade ago.
Indian commerce minister Piyusah Goyal, who actively participated in the negations and fought until the last minute for reaching a permanent solution, talked to journalists informally before the formal closing of the meet. He was of the view that, for India, peace clause is also enough to ensure food security.
The second phase of the fisheries subsidies agreement that provides for a ban on subsidies on overcapacity and overfishing was also not approved due to strong difference among the countries. The first phase of the agreement, adopted at the MC12 in Geneva, prohibits government support for illegal, unreported and unregulated, fishing, the fishing of overfished stocks and fishing on unregulated high seas.
The e-commerce moratorium will, however, continue for two more years despite opposition from India and some other countries. It means there will be no customs duties on electronic transmission during the period. Developed countries heavily backed the moratorium.
On dispute-settlement reform, members agreed to work for 'having a fully and well-functioning dispute- settlement system accessible to all members by 2024.'
The graduating LDCs, including Bangladesh, get three years as an extra time after their graduation to adjust with the WTO rules and provisions regarding the dispute-settlement system. They will also enjoy LDC-specific technical assistance and capacity building provided by the WTO for three years after the graduation.
There is, however, no binding commitment on the continuation of the preferential market access for the graduating LDCs.
"We reaffirm the provisions of special and differential treatment for developing Members and LDCs as an integral part of the WTO and its agreements," says the MC13 declaration.
Special and differential treatment in WTO agreements should be precise, effective and operational, adds the readout.
The WTO Director-General, Okonjo-Iweala, in her concluding remarks, said: "We have worked hard this week. We have achieved some important things and we have not managed to complete others. Nevertheless, we moved those pieces of work in an important way. At the same time, we have delivered some milestone achievements for the WTO and laid the groundwork for more," she added.
At the concluding session, Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the UAE and MC13 Chair, thanked members for their active engagement during the conference.
"There is virtually no agreement on almost anything," said Auckland University Emeritus Professor Jane Kelsey who attended the conference as a guest of the conference chair.
"This follows a pattern of failures over successive ministerial," she told the media in a brief, but highly critical, statement.
"The WTO continues its steady decline, no longer just on life support but nearing death's door," says the swinging readout, incidentally at a time when there have been pleas for rebuilding a world trade system felicitous with current milieus.
The MC13 of the WTO started on Monday with trade ministers and senior officials of 164 members joining. As they had failed to reach consensus on critical issues during these days, the conference extended to Friday.
An eight-member Bangladesh delegation headed by Ahasanul Islam Titu, State Minister for Commerce, participated in the global trade meet. The conference brought together around 4,000 ministers, senior trade officials and other delegates from the WTO's 164 members and observers as well as representatives from civil society, business and the global media.

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[The writer was in Abu Dhabi at the invitation of the Secretariat of the World Trade Organization (WTO) and Friedrich-Ebert-Stiftung (FES), Geneva.]