Digest Content
- Ukraine launches safeguard investigations on sodium hypochlorite and ceramic tiles
- High time for global rules on fishing subsidies, the Director-General and Chair declare on Ocean Day
- Regional online Workshop on Customs Valuation and Transfer Pricing jointly held by WCO and OECD
- Members discuss COVID-19, climate change, digital issues at review of TBT Agreement
- Members approach text-based discussions for an urgent IP response to COVID-19
- Gender equality in poorest nations hinges on post-pandemic policy choices
Ukraine launches safeguard investigations on sodium hypochlorite and ceramic tiles
On 4 June 2021, Ukraine notified the WTO’s Committee on Safeguards that it initiated on 1 June 2021 a safeguard investigation on ceramic tiles.
On 11 June 2021, Ukraine notified the WTO’s Committee on Safeguards that it initiated on 27 May 2021 a safeguard investigation on sodium hypochlorite.
In the notifications of Ukraine as of 4 and 11 June 2021, among other things, contact points, deadlines and procedures for importers, exporters and other interested parties to present evidence are indicated.
Notice of the Decision of the Interdepartmental Commission on International Trade № SP – 494/2021/4411-03 of 24.05.2021 is published in the official newspaper «Uryadoviy Courier» № 103 of June 1, 2021.
Notice of the Decision of the Interdepartmental Commission on International Trade № SP – 494/2021/4411-03 of 19.05.2021 is published in the official newspaper «Uryadoviy Courier» № 100 of May 27, 2021.
Further information is available in G/SG/N/6/UKR/20 and G/SG/N/6/UKR/21.
High time for global rules on fishing subsidies, the Director-General and Chair declare on Ocean Day
Marking World Ocean Day on 8 June 2021, Dr Ngozi Okonjo-Iweala, Director-General, and Ambassador Santiago Wills of Colombia, chair of the fisheries subsidies negotiations, called on WTO members to deliver a long-awaited agreement to curb funding for harmful fishing.
First launched in 2001, WTO discussions on fisheries subsidies were given new impetus in 2015 when the international community made concluding a WTO agreement a target of the UN Sustainable Development Goals. The WTO’s 11th Ministerial Conference in Buenos Aires in 2017 reiterated the call for a fisheries subsidies agreement. Under these mandates, WTO members are working to secure an agreement on disciplines to eliminate subsidies for illegal, unreported and unregulated fishing and to prohibit certain forms of fisheries subsidies that contribute to overcapacity and overfishing.
A new draft of negotiating text was introduced last month in preparation for the virtual meeting of ministers on 15 July 2021.
Regional online Workshop on Customs Valuation and Transfer Pricing jointly held by WCO and OECD
A virtual workshop on Customs Valuation and Transfer Pricing was jointly held by the World Customs Organization (WCO) and the Organisation of Economic Cooperation and Development (OECD) from 31 May to 3 June 2021. More than 70 participants from Customs and Tax administrations of the WCO North of Africa, Near and Middle East region and a number of Europe countries attended the workshop.
Transfer pricing allows for the establishment of prices for the goods and services exchanged between a subsidiary, an affiliate, or commonly controlled companies that are part of the same larger enterprise. Transfer pricing can lead to tax savings for corporations, though tax authorities may contest their claims.
This workshop is the continuation of a series of regional workshops for Customs and Tax administrations as part of joint WCO/OECD efforts to explore the synergies between Customs valuation and transfer pricing. Participants had an opportunity to learn about different methodologies adopted by Customs and Tax administrations to address the issue of transfer pricing and to share their working experience in this regard.
The four-day programme consisted of an overview of the WTO Customs Valuation Agreement, the OECD Transfer Pricing Guidelines, Base Erosion and Profit Shifting (BEPS) Action Plan, and relevant case studies. The WCO facilitator focused on the Customs valuation treatment of related party transactions and instruments adopted by the Technical Committee on Customs Valuation. The OECD facilitator elaborated on the arm’s length principle and its application, comparability analysis and Transfer Pricing documentation.
The WCO and the OECD will continue to cooperate closely in the field of transfer pricing, and provide a platform for exchanges and dialogue between Customs and Tax officials with a view to promoting cooperation and facilitating enterprises.
Members discuss COVID-19, climate change, digital issues at review of TBT Agreement
At a meeting of the Committee on Technical Barriers to Trade (TBT) on 2-4 and 9 June, WTO members discussed 20 proposals submitted under the Triennial Review of the TBT Agreement. The review will now move to a secondphase, with the preparation of a draft report based on the 31 proposals received. Members also discussed 86 specific trade concerns covering environmental products, food and other issues. The aim is to develop a set of recommendations by year-end on how to improve implementation of the Agreement.
Triennial Review of the TBT Agreement
The Chair Mr. Laurence Sandral (Australia) commended members for their active engagement, which has resulted in 31 proposals submitted by Brazil, Canada, Colombia, the European Union, the Philippines, Singapore, Chinese Taipei and the United States.
The review process helps the Committee set out its workplan for 2021 to 2024. It starts with members submitting ideas on new work for the Committee. The second phase is to develop a set of recommendations for the new areas of work. Members are expected to finalize this review by the last Committee meeting of the year in November 2021.
The proposals submitted by WTO members address various issues, with transparency featuring strongly across many members’ proposals. Other areas include conformity assessment, accreditation policies, the impact of standards on micro, small, and medium-sized enterprises (MSMEs), e-commerce and online shopping, cybersecurity and digital products (including artificial intelligence), the use of international standards for food regulation, lessons learned from COVID-19, and climate change.
COVID-19 related TBT notifications
The WTO Secretariat reported that 153 TBT-related notifications have been submitted to the WTO since the start of the COVID-19 pandemic. A total of 42 of these notifications were submitted this year. The main objectives of these notifications were to streamline certification procedures to facilitate access to essential medical products; to ensure that medical goods are safe; to make food readily available by relaxing technical regulations; to address COVID-19 risks from international trading of live animals and of animal products; and to provide implementation delays for other regulations due to the constraints imposed by COVID-19.
Most of the TBT measures notified were temporary and trade facilitating. They were mostly related to conformity assessment procedures, such as the use of remote assessment technologies or electronic certification.
Specific trade concerns
Members discussed 86 specific trade concerns, of which 19 were discussed for the first time.
Several of the new concerns address issues related to the environment, with a focus on carbon footprint, the use of recycled input materials, the classification of hazardous chemicals, and plant protection. The products covered include batteries, biofuel, chemicals and pesticides.
On batteries, members discussed how requirements to include recycled materials in battery manufacturing would affect trade, whether businesses should disclose data related to carbon emissions during production, and how the carbon footprint would be calculated.
Members also discussed how biofuel blends and emission limits would affect vehicle exports. Questions were posed on the use of science in classifying hazardous chemicals and concerns were raised that certification procedures to regulate harmful substances in leather products may be burdensome. Members also explained that restrictions on the use of a pesticide may affect the sustainability of agricultural production, exports and farmer income.
Update on e-ping
The Secretariat reported that there are now around 14,000 subscribed users to the TBT/SPS notification alert system ePing. In addition, the Secretariat has been carrying out a range of training activities to respond to requests for capacity building, some in collaboration with ePing partners International Trade Centre and the United Nations Department of Economic and Social Affairs. Recent virtual training programmes have targeted stakeholders in the Bahamas, Bangladesh, Bhutan, St Lucia, South Africa, Vanuatu and Viet Nam.
Viet Nam shared information on the launch of ePing in Vietnamese in April 2021, with the participation of government agencies, associations, MSMEs, universities and related organizations. The initiative aims to facilitate MSMEs’ access to information on product requirements in their export markets.
Technical assistance
The WTO Secretariat piloted its first virtual TBT regional roundtable on 27 May 2021. This event attracted 70 participants from 19 countries. Topics covered included transparency, the triennial review, ongoing work on conformity assessment, COVID-19 and health.
Members approach text-based discussions for an urgent IP response to COVID-19
At the formal meeting of the Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS) on 8-9 June, WTO members moved closer to a text-based process to address the proposals put forward by delegations aimed at improving the international response to COVID-19 and achieving the common goal of providing equitable access to vaccines and other medical products.
They expressed their willingness to engage constructively in a discussion based on two proposals tabled by members, namely the revised proposal for a waiver from certain provisions of the TRIPS Agreement (IP/C/W/669/Rev.1) and the communication from the European Union on urgent trade policy responses to the pandemic (IP/C/W/680).
The co-proponents of the proposal to waive certain TRIPS Agreement obligations stressed that the updated proposal takes into account the existence of virus mutations and new variants which have a significant impact on public health measures. It also underlines the importance of diversifying production and supply to increase access to vaccines and other medical products, and the need to preserve incentives for research and innovation. They explained that the waiver would be in force for at least three years from the date of adoption, mandating the General Council to decide on the date of its termination. While recognizing that intellectual property rights (IPRs) should not stand in the way of ensuring equitable access to vaccines and therapeutics, these members stressed that this can be attained while maintaining IP as the basis for incentivizing investment in innovation, and for licensing technology transfer, so that members can effectively fight new strains of COVID-19 and any future diseases and pandemics.
Several members expressed their support for the EU’s proposal, which calls for limiting export restrictions, supporting the expansion of production, and facilitating the use of current compulsory licensing provisions in the TRIPS Agreement, particularly by clarifying that the requirement to negotiate with the right holder of the vaccine patent does not apply in urgent situations such as a pandemic, among other issues.
Delegations agreed on the urgent need for this discussion and called on the chair to facilitate an intensive process in various formats. The chair foresees an intensive schedule of meetings and consultations, beginning immediately after the TRIPS Council meeting, echoing the Director-General’s remarks that equitable access to medicines for COVID-19 is both the moral and economic issue of our time. The chair intends to consult members urgently on how the process can be arranged in practical terms, aiming at agreement on a report to the next General Council meeting scheduled for 21-22 July.
Gender equality in poorest nations hinges on post-pandemic policy choices
As policymakers in least developed countries address COVID-19’s social and economic consequences, they must ensure recovery efforts are gender responsive.
32 million more people into extreme poverty although the number of confirmed COVID-19 cases per capita have been lower in least developed countries (LDCs).
Women in these countries have borne the brunt of the crisis, as they work mainly in the hardest-hit sectors, such as tourism, horticulture and textiles.
A new study by UNCTAD and the Enhanced Integrated Framework (EIF) warns that the gender gap in income and overall well-being in LDCs will continue to worsen unless COVID-19 recovery efforts adopt a gender perspective.
Gender-responsive trade policies needed
The study, Trade and Gender Linkages: An analysis of Least Developed Countries, provides recommendations to help LDC governments adopt trade-related polices that are more gender responsive.
EIF head Ratnakar Adhikari said: “We had a long way to go to fix the world’s gender gap, and the pandemic has made the journey even more arduous, especially in the world’s poorest countries, where the challenges facing women are even more dire.”
Export opportunities aren’t gender neutral
The economies of LDCs – a group of 46 countries are highly dependent on a few exports.
For some African LDCs, these are agricultural goods and minerals. For others they’re textiles (most Asian LDCs) or tourism services (small islands).
The worry that women will benefit less than men as trade picks back up lies in the different roles men and women play in LDCs’ main export sectors, the report says.
Held back by subsistence farming
In LDCs, women make up between 41% and 45% of total employment in agriculture, but gender segregation holds them back in subsistence farming due to their traditional role of providing food security for the family.
The report recommends that governments conduct gender value chain analyses in key agricultural export sectors and formulate policies that target the barriers women face.
These include customary laws that prevent women from owning land and other property that would help them get credit.
Formalization can have unintended consequences
Informal work in artisanal and small-scale mining is an important source of income for women in LDCs, especially in Africa. For example, women make up around 75% of workers in small-scale mining in Guinea and 50% in Mali. But they mainly perform tasks that are paid less.
“Women are mostly excluded as license holders and decision-makers in miners’ cooperatives and committees, especially in sub-Saharan Africa, so they’re unlikely to benefit from formalization focused on licenses and cooperatives,” Ms. Zarrilli said.
Better wages, but still less than men
Manufacturing exports are especially important in Asian LDCs, as well as a few African ones, and there has been “a feminization” of jobs in export processing zones (EPZs) – exclusive areas where imported materials undergo some degree of processing before being exported.
In Cambodia, half of employees in these zones are women. And they make up more than 62% of the workforce in Haiti’s EPZs.
While the wages in EPZs are higher than outside the zones – 17% higher in Lesotho, for example – women still hold jobs that are lower on the wage scale, and labour standards are often inadequate.
The report says governments should give more priority to active labour market policies, such as vocational training programmes.
A new approach to tourism
In African and island LDCs, tourism offers women important entrepreneurship and employment opportunities.
In Tanzania, for example, 38% of women don’t have formal contracts. This is the case for 46% of the women working in tourism in Mozambique.
Like manufacturing, the sector is also marked by intense job segregation, with men holding most management and leadership positions while women perform primarily the low-skilled, low-paid tasks, such as housekeeping, kitchen work and waitressing.
“Advancing gender equality goals through the sector would require a tourism model based more on small and medium-sized enterprises,” Ms. Zarrilli said, citing the examples of agri-tourism, eco-tourism and community tourism.