WTO meet 2022 - A mixed bag for India

The World Trade Organization (WTO) has reached an agreement that aims to reduce harmful subsidies and protect the global fish stocks. It is the first multilateral agreement to place the environment at the core of its operations. The agreement, which is estimated to cost around USD 14 billion annually, will help prevent harmful fishing activities. This agreement prohibits the support for illegal, unreported, and unregulated fishing. It also prohibits the use of subsidies for fishing in overfished stocks. It is a significant step toward curbing the overcapacity and overfishing that have been caused by these activities. The agreement has the potential to contribute to the sustainable development of marine fisheries by providing a positive impact on the livelihoods of around 260 million people. The agreement provides specific provisions to the developing and LDC members, and it allows them to benefit from the various measures that are included in the agreement. As part of the negotiations, a group of members has been tasked with developing a set of rules that will help prevent the use of harmful fishing subsidies. The implementation of the agreement is expected to begin after two-thirds of the membership approves the legal instrument.

WTO RESPONSE TO THE PANDEMIC:

The members of the World Trade Organization (WTO) have adopted a Ministerial Declaration to address the ongoing impact of the COVID-19 pandemic. They also agreed to provide a framework for the development of new vaccines. One of the key components of this declaration is a waiving of certain requirements related to the production of vaccines.

The declaration provides a framework for the development of new vaccines and will help ensure that the availability of medical supplies and components is more predictable. It also supports the efforts to diversify the production capacity of vaccines. It also calls on the relevant agencies of the WTO to carry out studies and work on lessons learned from the COVID-19 pandemic. They will also conduct regular stocktaking exercises to ensure that the measures they adopt are properly implemented. The Ministerial Decision on the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement also provides a framework for members to work together to increase the production capacity of vaccines. Through a targeted waiver, they can take various steps to address the issues related to the production of vaccines. as well as the declaration also provides members with a clearer understanding of the various options, they have available to them in response to the pandemic.

Whereas the outcome of the meeting provides the opportunity for the various agencies and organizations, such as the WHO and the World Health Organization, to make effective use of the available resources. Members also agreed to extend the waiving of certain requirements related to the production of vaccines until December 2022. The decision also provides an opportunity for all developing country members to benefit from the declaration, those with existing production capacity for COVID-19 vaccines are encouraged to opt out. The Tripartite Council of the WTO provides a record of these binding commitments.

FOOD INSECURITY:

The outcome package of the meeting provided the opportunity for the various agencies and organizations, such as the WHO and the World Food Program, to make effective use of the available resources. It also agreed to provide a Ministerial Decision to exempt the WFP from export restrictions and prohibitions. These actions are aimed at addressing the concerns of the international community about the rising food prices and food shortages. The summit acknowledges the importance of the actions taken by the members of the WTO to facilitate trade, which contribute to the improvement of global food security and the resilience of the global markets. It also reaffirms the need for the organization to not impose export restrictions or restrictions in a manner that is inconsistent with its rules. The WFP welcomed the Ministerial Decision, which provides an exemption to the organization from certain export restrictions and prohibitions. It will help it provide critical relief to the most vulnerable people in the world.

E-COMMERCE WORK PROGRAMME:

The members of the WTO also agreed to maintain their practice of not implementing customs duties on electronic transmissions. They will also intensify their discussions on this subject. A moratorium on the implementation of customs duties on electronic commerce will remain in effect until the end of 2023 or if the MC13 is delayed beyond that date. The moratorium, which was first adopted at the Ministerial Conference in 1998, has been renewed every time it has been held. It will help maintain the global digital economy's enabling environment and the millions of jobs that it provides.

WTO REFORM:

The members of the World Trade Organization agreed to carry out a comprehensive review of the organization's core functions to ensure that they are able to respond effectively to the challenges that face the multilateral trading system. This step is part of the organization's efforts to improve its efficiency. The decision to review the organization's core functions demonstrates the widespread recognition that the organization needs to be updated. The members of the organization agreed to carry out a comprehensive review of the organization's core functions to ensure that they are able to respond effectively to the challenges that face the multilateral trading system. They will also organize a review process that will allow them to submit possible reforms to the 13th Ministerial Conference, which will be held in 2023. Members have already submitted various proposals to the organization for possible reforms. Some of these include increasing transparency in the trade measures of governments, reviewing the special treatment that developing countries receive, and reinvigorating the negotiating function of the WTO. The members of the organization agreed to continue their efforts to address the issues related to the functioning of the dispute settlement system of the World Trade Organization. They will also start a process that will allow them to secure a fully functioning system by 2024.

OTHER ISSUES:

The members of the World Trade Organization agreed to carry out a comprehensive review of the organization's core functions to ensure that they are able to respond effectively to the challenges that face the multilateral trading system. They also agreed to launch a work program to identify new obstacles that could affect the implementation of the organization's agreement on phytosanitary and sanitary matters. The members also agreed to maintain their commitment to the organization's work program on small economies, which aims to address the specific challenges that these countries face. They also decided to extend the moratorium on the implementation of certain provisions of the organization's rules on non-violation and situation complaints. These include situations where a government may claim that it has been denied an expected benefit due to the actions of another government.

ISSUES RAISED BY INDIA AT WTO SUMMIT 2022:

As India was able to request a partial patent waiver for its food grains export, its request to allow the country to sell its food grains from its public stockholding was not granted. Existing rules prevent members of the World Trade Organization from exporting subsidized grains. The World Trade Organization's existing rules prevent members from exporting subsidized grains. Doing so could distort the global food prices. Members of the World Trade Organization were also able to avoid imposing export restrictions on certain types of food products purchased by the UN's Food Program.

India has been pushing for a permanent solution to the issue of public stockholding, which is the issue that has been discussed at the Geneva meeting of the organization. The country's top priority at the meeting was to resolve this issue. Currently, agricultural subsidies are capped at 10% of the country's production value. The members of the WTO were also able to maintain their current practice of not implementing customs duties on electronic transfers until the next Ministerial Conference. This is considered to be a significant benefit to the global economy.

The members of the World Trade Organization were also able to maintain their current practice of not implementing customs duties on electronic transfers until the next Ministerial Conference. India has been pushing for an end to the moratorium, which it claims is hindering the country's ability to collect revenue from digital products. Some of these include movies and music streaming, as well as software updates and corporate data flows. While the removal of the moratorium would allow countries to impose tariffs on various types of digital products, such as music and movies, software updates, and corporate data flows. India is one of the several developing countries that has been complaining about the moratorium, which it claims is hindering their ability to collect revenue from digital products. Some of these include 3D printing and artificial intelligence. India has been advocating for the removal of the moratorium, which it says is hindering the country's ability to collect revenue from digital products. It noted that a moratorium would also help developing countries maintain their policy space for their digital development.

Pic Courtesy-Ishant Mishra at unsplash.com

(The views expressed are those of the author and do not represent views of CESCUBE.)