The 12th Ministerial Conference (MC-12) of the World Trade Organization (WTO) in June 2022 injected a sense of optimism into the multilateral trade arena, raising hopes for the continued relevance of multilateralism in a world marked by increasing fragmentation. As the WTO prepares for its next gathering, MC-13, scheduled for February 2024 in Abu Dhabi, several critical issues and priorities demand attention and negotiation.
- Dispute Settlement Reform: The WTO’s dispute settlement system has faced challenges since 2019, primarily due to the United States blocking the appointment of members to the Appellate Body. Although technical discussions have taken place, there’s yet to be a formal process for members to fulfill the MC-12 commitment to establish a “well-functioning dispute settlement system” by 2024. The urgency and commitment to delivering on this pledge, reiterated in the G20 New Delhi Declaration, need to be reflected in formal discussions.
- Agriculture: Developing countries have specific concerns related to the rules for agriculture. These concerns include the need for (a) a permanent solution for public stockholding (PSH) for food security purposes and (b) a special safeguard mechanism (SSM) to mitigate the risks posed by agricultural market instabilities. While the 2013 Bali Decision on PSH provided an interim solution, more than 80 developing countries proposed a permanent solution for PSH in the run-up to MC-12, which remains unresolved. The SSM, designed to protect developing countries from import surges, has been under discussion for over a decade.
- The challenge in the lead-up to MC-13 is that the summary of the Senior Officers Meeting (SOM) on agriculture only makes peripheral references to PSH and SSM. Moreover, it blends these specific concerns with broader agricultural reform issues. While addressing issues like market access and trade-distorting domestic support is important, mixing them with PSH and SSM issues may hinder meaningful progress on the latter. It’s crucial that members reiterate their commitment to addressing PSH and SSM promptly and separately from other agricultural reforms.
- Fisheries Subsidies: The Agreement on Fisheries Subsidies, a crucial outcome of MC-12, left two areas for further deliberation at MC-13: disciplines for overcapacity and overfishing. Balancing the interests of coastal areas in developing countries, which rely on fish for both livelihood and food security, with capacity-enhancing industrial fishing is a key challenge. Additionally, addressing fishery activity in the high seas, particularly research on marine genetic resources (MGR), requires a balanced approach. It’s essential to provide policy space for developing countries to develop capacity in high seas fishing through appropriate subsidies to ensure equitable access. This aspect has not yet found consensus in the proposed disciplines.
In the upcoming MC-13, the WTO must navigate these challenges and arrive at agreements that work for all its 164 members. This is critical for preserving the WTO as a truly multilateral institution, rather than a platform exclusive to some members. In the concluding part of this series, other priorities such as WTO reform and e-commerce will be discussed. The outcome of MC-13 will play a significant role in shaping the future of global trade and economic relations.