News digest - "QazTrade" Trade Policy Development Center" JSC
News digest

News digest

Digest Content

  • Participants in domestic regulation talks conclude text negotiations, on track for MC12 deal
  • Climate, pandemic, e-commerce, inclusivity — Public Forum addresses priorities for reform
  • Panels established to review steel duties in China, food import measures in Panama
  • COVID-19 threatens four ‘lost decades’ for gender equality

Participants in domestic regulation talks conclude text negotiations, on track for MC12 deal

Participants in the negotiations on services domestic regulation concluded text-based discussions at their 27 September meeting, paving the way for conclusion of the negotiations by the 12th Ministerial Conference (MC12) at the end of November. This agreement represents a breakthrough for the negotiations, the coordinator, Jaime Coghi Arias of Costa Rica, noted. The only element pending is the finalization of members’ schedules of commitments, with participants aiming to complete this process by MC12.

Negotiations

The disciplines seek to ensure that domestic regulation procedures for trade in services are clear, predictable and transparent and do not unnecessarily restrain trade. Flexibilities are envisaged to help governments apply the measures and regulate based on their national policy objectives and levels of development.

In the negotiated text, participants agreed to include a provision on non-discrimination between men and women in the context of authorization procedures for service suppliers. This will be the first provision of its kind in a WTO negotiated outcome. Participants further agreed to an optional section with a set of disciplines on financial services, and to a maximum transitional period of seven years for developing countries that need more time to implement individual disciplines for specific services sectors.

The coordinator invited participants to submit updated draft schedules of commitments by 29 October to help finalize the negotiations by MC12, which is to be held from 30 November to 3 December. A total of 34 indicative schedules of commitments have been submitted to the WTO so far, covering 60 WTO members.

Climate, pandemic, e-commerce, inclusivity — Public Forum addresses priorities for reform

Senior representatives from government, business and civil society outlined their views on 29 September on how to make the WTO fit for purpose in today’s world of trade. Addressing the challenges of the COVID-19 pandemic and climate change, making sure WTO rules are adapted to today’s digital economy and ensuring the benefits of trade extend to all were some of the themes which emerged at the Public Forum high-level session on strengthening the multilateral trading system.

In outlining their priorities for reform, participants not only included tackling new issues but also ensuring the WTO can better address matters that have been on its negotiating agenda for years, such as agriculture, disciplines on fisheries subsidies, and special and differential treatment for developing and least-developed countries.

John WH Denton, Secretary General of the International Chamber of Commerce, underlined the importance of restoring a WTO that operates effectively, something which is currently not happening, he said.

Carlos María Correa, Executive Director of the South Centre, stressed the need to overcome the current fragmentation in the international system of trade rules and called for a trade system that is focused on the needs and rights of people. The COVID-19 crisis has shown the world the profound asymmetries that exist in many economic, social and health aspects, he noted. The post-pandemic reality should be an opportunity to create a new system based on equality and solidarity which is truly effective, he added.

United Kingdom Secretary of State for International Trade Anne-Marie Trevelyan said WTO members need to make progress at the WTO’s upcoming 12th Ministerial Conference in three areas: promoting the better functioning of the WTO by getting the negotiating function working again; modernizing existing rules in such areas as health and the environment, e-commerce and women’s economic empowerment; and promoting free and fair trade by tackling market distorting practices and making sure that members take on obligations commensurate with their size and level of development.

“The approaching Ministerial Conference is an ideal moment for us to reflect on the need to address those challenges — in ways that are inclusive, flexible and transparent — and which deliver the results which members want to see,” she said.

Panels established to review steel duties in China, food import measures in Panama

The Dispute Settlement Body (DSB) agreed at its meeting on 27 September to establish two new dispute panels. At the request of Japan, a panel will examine China’s anti-dumping duties on imports of stainless steel from Japan. At the request of Costa Rica, a panel will review measures imposed by Panama on various agricultural imports originating from Costa Rica.

DS601: China — Anti-Dumping Measures on Stainless Steel Products from Japan

Japan submitted its second request for the establishment of a WTO panel to rule on anti-dumping measures imposed by China on stainless steel products from Japan. Japan’s first request for a panel was blocked by China on 30 August.  Japan reiterated its belief that China’s measures are inconsistent with its obligations under the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO’s Anti-dumping Agreement (ADA).

China said it regretted Japan’s decision to submit its second request. It said it maintains its domestic anti-dumping regime in line with relevant WTO rules, with authorities carrying out transparent, thorough and fair investigations.  China said it was open to further discussions with Japan in order to resolve the matter.

The DSB agreed to the establishment of the panel.  Brazil, Canada, Australia, Korea, the United States, Russia, Viet Nam, the European Union, Saudi Arabia and India reserved their third party rights to participate in the proceedings.

DS599: Panama — Measures Concerning the Importation of Certain Products from Costa Rica

Costa Rica submitted its second request for the establishment of a WTO panel to rule on measures imposed by Panama on various imports originating from Costa Rica, including dairy products, meat products, fish food, strawberries, pineapple, plantains and bananas. Costa Rica’s first request was blocked by Panama at the DSB meeting on 30 August.

Costa Rica reiterated that it has long and prosperous trade relations with its neighbor.  Panama’s decision to ban certain Costa Rican imports over the last two years lacks scientific basis, particularly as there has been no change in the phytosanitary status or risk status of the products in question which would justify Panama’s non-renewal of authorization for the imports, it said.

Panama said the dispute is the result of authorities in Costa Rica failing to initiate authorization and permit renewal proceedings which would allow continued import of the products and which Panama has the right to request.  Panama regrets Costa Rica’s decision to pursue its WTO complaint but is ready to participate in dispute proceedings in good faith.

The DSB agreed to the establishment of the panel.  Brazil, Canada, China, Australia, the United States, Russia, the United Kingdom, the EU, India, Honduras, Nicaragua and Mexico reserved their third party rights to participate in the proceedings.

DS602:  China — Anti-Dumping and Countervailing Duty Measures on Wine from Australia

Australia submitted its first request for the establishment of a panel to rule on China’s anti-dumping duties on imported Australian wine.  Australia claims the measures are inconsistent with various provisions under the WTO’s Anti-dumping Agreement and the General Agreement on Tariffs and Trade 1994.

Australia noted that China was previously Australia’s most important export market for wine, accounting for 37% of total sales, but since the duties were imposed sales have declined significantly and have effectively closed the Chinese market to Australian wine.  Australia has engaged with China on the matter numerous times, both bilaterally and at the WTO, but these efforts, along with dispute consultations held on 9 August, have failed to resolve the matter.  As no concrete steps have been taken to address its concerns, Australia said it was requesting the establishment of a panel.  Australia values its community and economic ties with China and remains open to discuss the matter with China in good faith in order to find a solution.

China said it was not in a position to agree to Australia’s request.  China maintains its domestic anti-dumping regime in line with relevant WTO rules and, especially in this dispute, carried out its investigation in a fair and transparent manner.  To avoid “double remedy,” China decided not to impose countervailing duties on the imports. China noted that Australia has not raised the matter of countervailing duties in its panel request, which China said was a constructive move for the settlement of the dispute.  China believes it is still premature to establish a panel in this dispute and stands ready to further engage with Australia on the matter.

The DSB took note of the statements and agreed to revert to the matter if requested by a member.

Statement by Morocco regarding the panel report in the dispute “Morocco — Definitive Anti-Dumping Measures on School Exercise Books from Tunisia” (DS578)

Morocco made a statement noting that it has commenced discussions with Tunisia in order to resolve their differences over procedural implications stemming from Morocco’s appeal of the panel report in the DS578 dispute proceedings.  Bilateral consultations at the technical level took place on 24 September, and Morocco is hopeful the talks will lead to a friendly solution of the matter.

Tunisia said it was pleased Morocco has agreed to engage in these consultations and proposed that the parties provide members with a status report on the consultations at the next DSB meeting.

The European Union intervened to say this case was another example showing the grave consequences stemming from the continued blockage of new Appellate Body members, which is frustrating the essential rights of all WTO members.  Russia added the continued blockage threatens the system and undermines confidence in the WTO.  Canada renewed its invitation to Morocco and Tunisia to consider becoming party to the multi-party interim appeal arrangement as an alternative means to completing the appeals proceedings.

Statement by China regarding the panel report in the dispute “US — safeguard measure on imports of crystalline silicon photovoltaic products” (DS562)

China sharply criticized the dispute panel ruling in DS562, which was circulated on 2 September and which China appealed on 16 September. China said it is deeply concerned with the systematically harmful findings made by the panel, the first time that a complainant’s case against a safeguard measure has been rejected in its entirety.  The panel report severely deviated from all these jurisprudences and substantially lowered the threshold of imposing safeguard measures, China said. It added that the dangerous signal sent by the panel will lead to the abuse of safeguard measures and thus seriously undermine the rules-based multilateral trading system.

China went on to detail what it said were the serious legal errors contained in the ruling, including a gross misreading of legal requirements for imposing safeguard matters as well as a major misunderstanding of a panel’s proper role in examining trade remedy investigations.  China said safeguards are extraordinary measures for extraordinary situations and cannot be used as a convenient tool for rescuing a domestic industry in bad shape because of its own business decisions and injuries caused by other factors.

The United States said China should focus on what matters.  First, it matters that the WTO panel found the US safeguard to be consistent with WTO rules.  The US welcomes those findings but said the win came at a very high cost, namely the crushing of a thriving US industry by China’s massive non-market excess capacity.  This dispute demonstrates that WTO rules do not effectively constrain China’s damaging non-market behaviour.  Second, it matters that China once again sought to use the WTO dispute settlement system as a vehicle to create new rules that would limit a member’s ability to defend itself from China’s non-market practices. The panel rightly rejected every single one of China’s arguments.

The US said it was disappointed that China has decided to appeal the panel report despite overwhelming evidence of the damaging effects of China’s non-market practices.  The safeguard measure serves to support the US domestic industry’s efforts to adjust to import competition after global excess solar cell and module capacity pushed the industry to the brink of extinction, mainly as a result of excess capacity fueled by China’s non-market practices which are in direct contradiction to its WTO commitments.

China responded that its appeal was not intended to delay the adoption of the dispute report or create new rules but to ensure the interpretation of the WTO rules in a fair and reasonable manner and ensure respect for past jurisprudence.

The EU said the case was yet another example of the grave consequences stemming from the continued blockage of Appellate Body appointments since 2017, which frustrates members’ ability to exercise their rights under WTO dispute settlement procedures.  Canada added that finding a solution to the Appellate Body impasse is of the highest importance.

United States — Continued Dumping and Subsidy Offset Act of 2000 (CDSOA): statement by the European Union

The European Union reiterated its request that the United States cease transferring anti-dumping and countervailing duties to the US domestic industry, arguing that every such disbursement was a clear act of non-compliance with the rulings on this matter. The United States said it has taken all actions necessary to implement the ruling and that, once a member has said it has complied with a ruling, that member should no longer be required to submit status reports on implementation.

European Communities and Certain Member States — Measures affecting trade in large civil aircraft: Implementation of the recommendations adopted by the DSB: statement by the United States

The United States said it placed this item on the agenda of the DSB meeting to highlight that the EU has once again not provided WTO members with a status report concerning implementation of the findings in the large civil aircraft dispute.  The EU said it is not required to submit an implementation status report to the DSB, as dispute proceedings on the matter are ongoing.

Appellate Body appointments

Mexico, speaking on behalf of 121 members, once again introduced the group’s proposal to start the selection processes for filling vacancies on the Appellate Body.  The extensive number of members submitting the proposal reflects a common concern over the current situation in the Appellate Body which is seriously affecting the overall WTO dispute settlement system against the best interest of members, Mexico said for the group.

More than 20 delegations took the floor to reiterate the importance of resolving the impasse over the appointment of new members as soon as possible and re-establishing a functioning Appellate Body. They pledged their support to continue efforts to find a solution acceptable to all.

The United States reiterated it was not in a position to support the proposed decision.  The US continues to have systemic concerns with the Appellate Body, which it has explained and raised over the past 16 years and across multiple administrations.  The US said it believes that WTO members must undertake fundamental reform if the dispute settlement system is to remain viable and credible.  The US said it looked forward to further discussions with members on those concerns and to constructive engagement with members at the appropriate time.  

The chair of the DSB, Ambassador Didier Chambovey of Switzerland, again emphasized that resolving the impasse is of great interest to all WTO members and a matter which also requires political engagement by all members. He said his door remains open to any delegation wishing to discuss the matter.

20th anniversary of the Advisory Centre on WTO Law

Guatemala and Australia made statements commemorating the 20th anniversary of the Advisory Centre on WTO Law (ACWL), which was established in 2001 to assist developing and least-developed countries on all issues relating to WTO law.

Surveillance of implementation

The United States presented status reports with regard to DS184, “US — Anti-Dumping Measures on Certain Hot-Rolled Steel Products from Japan”,  DS160, “United States — Section 110(5) of US Copyright Act”, DS464, “United States — Anti-Dumping and Countervailing Measures on Large Residential Washers from Korea”, and DS471, “United States — Certain Methodologies and their Application to Anti-Dumping Proceedings Involving China.”

The European Union presented a status report with regard to DS291, “EC — Measures Affecting the Approval and Marketing of Biotech Products.”

Indonesia presented its status reports in DS477 and DS478, “Indonesia — Importation of Horticultural Products, Animals and Animal Products.”

Other business

China made a statement regarding the composition of WTO dispute panels and the importance of appointing high-quality, independent and neutral panelists.

Next DSB meeting

The next DSB meeting will take place on 26 October 2021.

COVID-19 threatens four ‘lost decades’ for gender equality

            The pandemic has had a disproportionate impact on women and threatens to roll back decades of hard-won progress on the fight against inequalities between women and men.

The COVID-19 pandemic has affected women and men differently due to their distinct roles in economies and societies, so responding to the crisis without first assessing its impact on gender equality jeopardizes efforts to “build back better”, participants at UNCTAD’s first Gender and Development Forum heard.

Women’s employment, for example, fell globally by 4.2% in 2020 compared with 3% for men, as sectors in which women tend to work more – such as tourism – were ravaged by restrictions used to curb the spread of the virus.

Before the pandemic hit, women already faced a 99-year wait before they were expected to enjoy full equality with men. The effects of COVID-19 have increased the wait by almost 40 years to 136, according to estimates by the World Economic Forum.

Insufficient and unsatisfactory

No less than 53 of the 251 SDGs’ indicators make direct reference to gender equality, women. Yet women have not been given a seat at COVID-19 recovery decision-making tables.

For example, of the 225 working groups created to design and implement COVID-19’s life-saving programmes for which data are available, women make up less than a quarter of members and are not represented at all in 12% of the working groups.

The need for a complete reset

The Gender and Development Forum was held virtually and hosted by Barbados as part of UNCTAD’s 15th ministerial conference, set for 3 to 7 October.

It featured over two dozen panel discussions, break-out sessions and cultural events, providing a critical space of debate and reflection on a wide range of issues that affect gender equality, from agriculture to industrial policies, from education and training to labour market needs, from environmental challenges to human rights-based solutions.

UNCTAD15, whose theme is “From inequality and vulnerability to prosperity for all”, will tackle the most pressing challenges facing the world, including the COVID-19 crisis, the climate emergency, growing food insecurity and mounting debt – all of which affect women and girls disproportionately.

The role of trade

Responding to its mandate to assist member states in understanding and addressing the links between trade and gender, UNCTAD hosted a high-level session of the forum on 27 September, entitled “Shaping gender-responsive economies and societies: What role for trade?”.

While free trade has created new opportunities for some women, it has also marginalized others. For example, rural women are often unable to compete with imported products, especially if such products benefit from generous subsidies. And while global trade has brought new formal employment opportunities for women, these are most often “blue collar” jobs.

However, speakers highlighted that governments can help create virtuous circles that empower women and allow them to take advantage of new economic opportunities – by strengthening their financial independence, for example.

Steps in the right direction…but not far enough

The Beijing Declaration and Platform for Action and the Convention on the Elimination of All Forms of Discrimination Against Women make clear calls on governments to ensure their trade policies don’t have adverse impacts on women.

These include multilateral initiatives, such as the Buenos Declaration on Women and Trade signed by 127 members and observers of the World Trade Organization, the inclusion of specific trade and gender chapters in free trade agreements beyond the preamble, and ex-ante assessments of how trade reforms could affect men and women differently.

Beyond a narrow focus

In her closing remarks to the forum, Ms. Grynspan urged policymakers to work more together and to move beyond the narrow focus of increasing women’s participation in trade.

“The final goal should not only be to have more women involved in trade but to ensure that they engage under fair terms, and that countries have the space to put in place policies at the domestic level,” she said.

To ensure that everyone can contribute to UNCTAD15, the Canadian government has donated $200,000 to support the participation of least developed countries, including women in these nations, in the interactive debates and events.


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