Digest Content
- Twelfth Ministerial Conference to take place in Geneva in late 2021
- COVID-19 in North and Central Asia: Impacts, Responses and Strategies to Build Back Better
- Panels established to review Indonesian, US trade measures
- WTO members hold February cluster of meetings for fisheries subsidies negotiations
- Pakistan appeals panel report regarding duties on BOPP film from the UAE
- New WTO handbook sheds light on the Technical Barriers to Trade Agreement
- Members discuss TRIPS waiver request, exchange views on IP role amid a pandemic
Twelfth Ministerial Conference to take place in Geneva in late 2021
WTO members have agreed that the organization’s Twelfth Ministerial Conference (MC12) will take place in the week of 29 November 2021 in Geneva, Switzerland. The timing and venue were endorsed at a meeting of the WTO’s General Council on 1 March.
MC12 was originally scheduled to take place from 8 to 11 June 2020 in Kazakhstan’s capital, Nur-Sultan, but was postponed due to the COVID-19 pandemic.
In May 2020, members discussed Kazakhstan’s offer to reschedule the conference to June 2021. Reporting on his consultations with members last December, the chair of the General Council, Ambassador David Walker of New Zealand, said it was no longer realistic to envisage holding MC12 in June this year in light of the current situation. Kazakhstan told members that it shared this assessment.
MC12 will be chaired by Kazakhstan’s Minister of Trade and Integration, Bakhyt Sultanov, as approved by WTO members in December 2019.
The Ministerial Conference, which is attended by trade ministers and other senior officials from the organization’s 164 members, is the highest decision-making body of the WTO. Under the Marrakesh Agreement Establishing the WTO, the Ministerial Conference is to meet at least once every two years.
The Eleventh Ministerial Conference took place in Buenos Aires, Argentina, in December 2017.
Information on accreditation and other arrangements for MC12 will be made available on the WTO website in due course.
More information on the WTO’s Ministerial Conferences is available here: https://www.wto.org/english/thewto_e/minist_e/minist_e.htm
COVID-19 in North and Central Asia: Impacts, Responses and Strategies to Build Back Better
The impacts of COVID-19 threaten to put a hold on progress for the sustainable development agenda and erase gains made thus far in the North and Central Asian subregion. By recognizing that it is not a zero-sum game between enacting COVID-19 recovery measures and achieving the 2030 Agenda, countries can align recovery packages with the principles of sustainable development. This will help countries get through this crisis better and prepare the subregion to handle other impending crises more efficiently.
Countries in the subregion have quickly implemented strict measures to curtail the spread of the pandemic. The rising numbers of infected patients exposed the limited capacity of public health systems in the subregion to accommodate such an upsurge in demand for health-care services. Governments scrambled to overcome the bottlenecks of limited hospital beds, insufficient protective equipment and overstretched health-care personnel, and to procure testing facilities. Existing social protection facilities were built upon to provide support to affected social groups in normal conditions.
However, the rapidly changing pandemic situation and incomplete structural economic transformation increased the challenge of effectively targeting these measures. Inequalities and poverty levels are expected to increase, which will especially impact vulnerable population groups. The average gross domestic product growth rate of the subregion is estimated to be -3.2 per cent for 2020. Vulnerabilities in the economic structure, which is dependent on commodity exports, migrant labour and remittances, and the prevalence of employment in the informal sector, pose challenges for post COVID-19 economic recovery. Trade and transport connectivity, which are essential for the landlocked countries in the subregion, were majorly affected by measures put in place.
The recovery measures and packages have reduced the available fiscal space. Substantial fiscal deficits have already been recorded and are expected to widen further in 2021, adding to sovereign debt which was already a concern for some countries. On a positive note, there was a temporary improvement in air quality in major cities in the subregion as socioeconomic activities were scaled down.
In order for countries to recover effectively from the crisis, this policy brief recommends three areas of subregional cooperation.
- Protect people and facilitate inclusivity in social services – The pandemic highlights the vulnerabilities in social systems across the subregion. Emphasis needs to be placed on public health-care funding, targeting vulnerable population groups and ensuring access to quality education.
- Digital transformation can contribute to the double bottom line of economic transformation and achievement of social inclusivity. Digitalisation efforts to facilitate connectivity needs to be preceded by equally accessible ICT infrastructures in rural and urban areas. Matters on online privacy and rights require thorough multistakeholder consultations to uphold the fundamental human right of personal privacy.
- Green economy strategies need to be embedded in recovery efforts to ensure long term sustainability. Low carbon systems and infrastructure ought to be prioritized for investments with supporting policies and financing strategies to shape sustainable economies in North and Central Asia.
Panels established to review Indonesian, US trade measures
WTO members agreed at a meeting of the Dispute Settlement Body (DSB) on 22 February to two requests for the establishment of dispute panels: one from the European Union regarding measures in Indonesia restricting exports of raw materials used in the production of stainless steel, and a second from Hong Kong, China regarding US origin marking requirements for goods produced in Hong Kong, China.
DS592: Indonesia — Measures Relating to Raw Materials
The European Union submitted its second request for a panel to rule on Indonesia’s measures relating to raw materials, which include Indonesia’s export prohibition on nickel ore and domestic processing requirements on minerals, in particular nickel ore and iron ore. The EU’s first request for a panel was blocked by Indonesia at the last DSB meeting on 25 January.
Indonesia said it believed the measures at issue were fully consistent with, and justified under, WTO rules and said it was ready to defend the measures before the panel.
The DSB agreed to the establishment of a panel. Canada, China, Russia, India, Ukraine, Japan, the United States, Turkey, Chinese Taipei, the United Kingdom, Singapore, Brazil, and the United Arab Emirates reserved their rights to participate as third parties in the proceedings.
DS597: United States — Origin Marking Requirement
Hong Kong, China submitted its second request for the establishment of a WTO dispute panel regarding new US origin marking requirements for goods imported from Hong Kong, China. Hong Kong, China’s first request for a panel was blocked by the United States at the last DSB meeting on 25 January. Hong Kong,China reiterated its belief that the measure, which took effect on 10 November, is inconsistent with the WTO’s fundamental obligation to provide most favored nation (MFN) treatment to all members as well as various provisions under the WTO’s General Agreement on Tariffs and Trade (GATT), Rules of Origin Agreement and Technical Barriers to Trade Agreement.
The United States said it regretted that Hong Kong, China had decided to move forward with its second request for a panel. The US said the action is based on an Executive Order which determined that the situation with respect to Hong Kong, China constitutes a threat to the national security of the United States. Issues of national security are not appropriate for adjudication in the WTO dispute settlement system, and the WTO cannot, consistent with Article XXI of the General Agreement on Tariffs and Trade 1994, consider those claims or make the requested findings.
The DSB agreed to the establishment of a panel. Canada, Brazil, China, Ukraine, Norway, Korea, India, Singapore, Turkey, Russia, Japan, Switzerland and the European Union reserved their rights to participate as third parties in the proceedings.
DS234: United States — Continued Dumping and Subsidy Offset Act of 2000
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 it was not required to submit a status report. Canada thanked the EU for putting the item on the DSB agenda.
The United States said that once again the European Union has failed to provide a status report to the DSB concerning dispute DS316, the US complaint against government subsidies for the European aircraft manufacturer Airbus.
The EU countered that no status report was required since the dispute proceedings were not concluded. In addition, measures adopted in August 2020 go far beyond what is required to bring the EU into compliance with the ruling. The EU reiterated that it was determined to find a long term solution to the WTO aircraft disputes.
The United States responded that the EU only addressed two of the eight subsidy measures found to be inconsistent with WTO rules in its August announcement and that the amendments made to French and Spanish launch aid loans were marginal and insufficient to withdraw the subsidies.
WTO members hold February cluster of meetings for fisheries subsidies negotiations
Another cluster of fisheries subsidies meetings in WTO was concluded on 19 February 2021. During the week-long series of meetings members discussed special and differential treatment for developing and least-developed country members, rules for how fisheries subsidies disputes should be handled, and provisions relating to subsidies contributing to overcapacity and overfishing.
Following the week-long meetings, the chair of the negotiations, Ambassador Santiago Wills of Colombia reiterated the need for members to start reflecting on an acceptable outcome that could lead to a successful conclusion of the negotiations for the benefit of fish stocks worldwide.
A number of members welcomed the call earlier in the week by the next Director-General, Dr Ngozi Okonjo-Iweala, for the WTO to deliver new fisheries subsidies disciplines as soon as possible in 2021.
The next cluster of fisheries subsidies meetings will be held during the week of 15 March 2021. Members may also meet before then for further consultations.
Pakistan appeals panel report regarding duties on BOPP film from the UAE
Pakistan notified the Dispute Settlement Body on 22 February of its decision to appeal the panel report in the case brought by the United Arab Emirates in “Pakistan — Anti-Dumping Measures on Biaxially Oriented Polypropylene Film from the United Arab Emirates” (DS538).
The panel report was circulated to WTO members on 18 January
Given the ongoing lack of agreement among WTO members regarding the filling of Appellate Body vacancies, there is no Appellate Body Division available at the current time to deal with the appeal.
Further information will be available within the next few days in document WT/DS538/5.
New WTO handbook sheds light on the Technical Barriers to Trade Agreement
A new WTO publication, launched on 22 February, provides an overview of the purpose and scope of the WTO Agreement on Technical Barriers to Trade (TBT Agreement), the types of measures it covers and its key principles. Prepared by the WTO Secretariat, this new edition in the “WTO Agreements” series aims at enhancing understanding of the TBT Agreement.
The TBT Agreement entered into force with the establishment of the WTO on 1 January 1995. It aims to ensure that product requirements in regulations and standards — on safety, quality, health, etc. — as well as procedures for assessing product compliance with such requirements (testing, inspection, accreditation, etc.) are not unjustifiably discriminatory and do not create unnecessary obstacles to trade. The Agreement also emphasizes the importance of transparency and strongly encourages the use of international standards as a basis for harmonizing regulations across WTO members.
The handbook sets out the key principles of the TBT Agreement and discusses how these have been addressed in recent disputes brought under this Agreement. The publication looks into requirements on transparency, a cornerstone of the TBT Agreement, and describes the mandate, role and work of the TBT Committee.
The handbook also contains the full text of the TBT Agreement, as well as a compilation of all decisions and recommendations adopted by the TBT Committee since its creation in 1995.
The publication can be downloaded from the following link https://www.wto.org/english/res_e/publications_e/tbt3rd_e.htm.
Members discuss TRIPS waiver request, exchange views on IP role amid a pandemic
At a formal meeting of the Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS) on 23 February 2021, WTO members continued their discussions on a proposal for a temporary waiver of certain TRIPS obligations in response to COVID-19. While members were unable to reach a decision on the proposal, the discussions highlighted a number of shared understandings on the role of IP amid a pandemic. Delegations also stressed the common goal of providing timely and secure access to high-quality and affordable vaccines and medicines for all.
Members continued to address the proposal by India and South Africa (IP/C/W/669) requesting a waiver from certain provisions of the TRIPS Agreement for the prevention, containment and treatment of COVID-19, which had been circulated on 2 October 2020. It has since been co-sponsored by Kenya, Eswatini, Mozambique, Pakistan, Bolivia, Venezuela, Mongolia, Zimbabwe, Egypt, the African Group and the Least Developed Countries Group.
The waiver would cover obligations in four sections of the TRIPS Agreement — Section 1 on copyright and related rights, Section 4 on industrial designs, Section 5 on patents and Section 7 on the protection of undisclosed information. It would last for a specific number of years, to be agreed by the General Council, and until widespread vaccination is in place globally and the majority of the world’s population is immune. Members would review the waiver annually until termination.
Following up on previous TRIPS Council meetings, delegations exchanged views, asked questions, sought clarifications and provided replies, clarifications and information, including through documents IP/C/W/670, IP/C/W/671, IP/C/W/672, IP/C/W/673 and IP/C/W/674, on the waiver request. However, they could not reach consensus, including on whether it is appropriate to move to text-based negotiations. Members indicated a need for further discussions on the waiver request and views exchanged by delegations as these could provide valuable elements for future discussions and may assist governments to prepare for future pandemics.
Next steps
The IP waiver request by South Africa and India will be on the agenda of the next formal TRIPS Council meeting scheduled for 10-11 March 2021. The chair invited delegations to consider how to organize the Council’s consideration of this issue going forward so that appropriate arrangements can be made.