Elizabeth Morgan | WTO MC13 – some limited success

The 13th Ministerial Conference of the World Trade Organization (WTO) in Abu Dhabi, United Arab Emirates, February 26 to March 2, 2024, actually marked the 30th anniversary of the establishment of the organisation.

MC13 concluded with the adoption of the Abu Dhabi Ministerial Declaration outlining the work programme, which includes:

• Decisions and declarations on the work programme on small economies;

• Smooth transition support measures in favour of countries graduated from the least developed country (LDC) category;

• Strengthening regulatory cooperation to reduce technical barriers to trade;

• The precise, effective and operational implementation of special and differential treatment provisions of the agreement on the application of sanitary and phytosanitary measures and the agreement on technical barriers to trade;

• Dispute settlement reform;

• Work programme on electronic commerce;

• TRIPS non-violation and situation complaints.

CARICOM’S INTERESTS

The interests of the CARICOM WTO members were set out in the statement to the conference by Hon Hugh Todd, minister of foreign affairs and international cooperation of Guyana. He reiterated CARICOM’s commitment to an open, transparent, equitable, and inclusive rules-based multilateral trading system which effectively and appropriately accommodates the differences of members.

CARICOM’s interests included:

• The situation of small, vulnerable developing economies and their integration into the multilateral trading system. CARICOM continues to support the work programme on small economies.

• Agreement on fisheries subsidies – In keeping with the UN Sustainable Development (UN SDG) Goal 14.6, CARICOM wants to see the conclusion of this agreement to discipline harmful subsides provided by countries, while providing sufficient policy space for small-scale and artisanal fisherfolk, and effective special and differential treatment provisions.

• Agriculture – Reform should address the imbalances in the agreement on agriculture, especially trade-distorting domestic subsidy support and should safeguard the development flexibilities that enhance food security and retain bound tariffs.

• WTO reform – CARICOM supports an open, transparent and inclusive process addressing the interest of all members, and allowing meaningful engagement on contemporary and emerging issues, such as the interface between trade, climate and sustainability, and recognising the need for flexibilities and tools to assist micro, small and medium-sized enterprises to embrace the green transition and improve their competitiveness. Reform should also not undermine special and differential treatment provisions.

• Reform of the dispute settlement system – CARICOM wants a system that is more accessible to small states and does not disadvantage them in the final resolution of the cases.

• Graduation of LDCs – Supports adoption of remaining measures to assist the transition of LDC members graduating from this category.

• Electronic Commerce Work Programme – Supports continuing discussions on e-commerce trade-related issues to help members address the constraints to effective participation in global markets through e-commerce and thus CARICOM supports continuing the moratorium on the application of customs duties on electronic transmissions.

MC13 OUTCOMES

What were the outcomes of interest to CARICOM?

• The work programme on small economies was extended.

• The moratorium for e-commerce was extended for another two years.

• A decision was adopted on the graduation of LDC members.

• There was no progress on fisheries subsidies, as consensus could not be achieved in the negotiations. The agreement also did not enter into force.

• There was no agreement on agriculture which has been a very difficult issue in the WTO since it was established.

Basically, the work on all matters in the WTO work programme will continue over the next two years leading to MC14. It is evident that there are big gaps to be bridged among members – developed, developing and emerging.

DG’S CLOSING REMARKS

In her closing remarks, the WTO Director General, Dr Ngozi Okonjo-Iweala, assessed that the conference achieved some important things and had not managed to complete others, though moving them in an important way. For her, also, there were some milestone achievements for the WTO and the groundwork had been laid for more. She noted that for the first time, ministers engaged in conversations on sustainable development and socio-economic inclusion.

The DG observed that the path to progress is seldom linear. However, the WTO remains a source of stability and resilience in an economic and geopolitical landscape fraught with uncertainties and exogenous shocks. Trade remains a vital force for improving people’s lives, and for helping businesses and countries cope with the impact of these shocks.

Dr Okonjo-Iweala ended her remarks with a quote accredited to Winston Churchill, “success is not final, failure is not fatal; it is the courage to continue that counts”.

Indeed, for the delegates, it is back to the negotiating rooms at the WTO in Geneva. It will be recalled that trade is important to achieving the UN SDGs and resolving some of the many existing global crises would be helpful in further promoting trade, especially at the multilateral level.

Elizabeth Morgan is a specialist in international trade policy and international politics. Email feedback to columns@gleanerjm.com