Digest Content
- Participants on track to conclude negotiations on services domestic regulation at MC12
- Trade Policy Review: Russian Federation
- WTO Deputy Director-General Ellard encourages OACPS members to intensify efforts to bridge gaps in run-up to MC12
- WTO members report on progress in finding landing zones in fisheries subsidies negotiations
- Members review safeguard actions, address increased use of measures
- Panel established to examine Chinese duties on imported Australian wine
- Members exchange views on measures, practices at Anti-Dumping Committee meeting
Participants on track to conclude negotiations on services domestic regulation at MC12[1]
Australia, Canada and the United States submitted their draft services schedules outlining how they will incorporate the new disciplines on domestic regulation for trade in services into their existing commitments at a meeting on the Joint Initiative on Services Domestic Regulation on 25 October. Eleven other participants indicated they were on track to submit their schedules by the 29 October deadline.
Participants concluded negotiations on the new disciplines on services domestic regulation at a meeting of the initiative on 27 September. Contained in the “Reference Paper on Services Domestic Regulation”, the new disciplines developed by the initiative aim to facilitate services trade by mitigating the unintended trade-restrictive effects of measures relating to licensing requirements and procedures, qualification requirements and procedures, and technical standards. Their focus lies on the transparency, predictability and effectiveness of procedures that businesses have to comply with for obtaining authorization to supply their services. The Reference Paper is available by following link https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/INF/SDR/1.pdf&Open=True.
An endorsement by ministers of the final outcome of the negotiations on services domestic regulation is expected for the 12th Ministerial Conference.
A total of 65 WTO members are currently participating in this initiative, accounting for over 90 per cent of world services trade.
Trade Policy Review: Russian Federation[2]
The second review of the trade policies and practices of the Russian Federation took place on 27 and 29 October 2021. The basis for the review is a report by the WTO Secretariat and a report by Government of the Russian Federation.
The second Trade Policy Review of the Russian Federation has allowed to better understand and discuss recent developments regarding trade, economic, and investment policies in the Russian Federation. 57 delegations took the floor, which demonstrates the importance Members attach to the review of the policies and practices of the Russian Federation. 1,017 advance written questions were submitted by Members, with additional questions submitted during and following the first day of meeting.
WTO Deputy Director-General Ellard encourages OACPS members to intensify efforts to bridge gaps in run-up to MC12[3]
Deputy Director-General Angela Ellard participated on 28 October in a virtual meeting of the Organization of African, Caribbean and Pacific States (OACPS) trade ministers dedicated to preparations for the WTO’s upcoming 12th Ministerial Conference (MC12). Speaking on behalf of Director-General, she highlighted the need for members to intensify efforts to reach agreement in several key areas in the time remaining before MC12.
In her presentation, she noted that while significant progress has been made in some areas, a lot of work remains to be done.
In particular, it was noted that given the exceptional time that we all are facing, a central theme of the work is the WTO’s response to the pandemic and that sustainable economic and trade recovery can be achieved only through equitable access to COVID-19 vaccines.
Another important aspect related to the pandemic response is linked to trade-related aspects of intellectual property rights. Many OACPS members attach special importance to the TRIPS Waiver. While many WTO Members have shown a willingness to explore options to reach a balanced outcome, delegations must intensify their efforts if we are to achieve a meaningful outcome.
Negotiations on fisheries subsidies have been going on for far too long and an agreement on fisheries subsidies is long overdue. This is a sector of critical importance to the livelihoods of OACPS members. And the WTO count on all delegations to remain flexible and realistic, so that we contribute towards achieving an important sustainable development target.
With respect to agriculture negotiations, the Deputy Director General said there is a high level of engagement on this matter. However, while there is a clear willingness from all members to achieve something, the priority and ambition levels vary.
Some progress has been made in the past few weeks, but gaps remain on several important pillars of the negotiations, such as Domestic Support, including on cotton, a permanent solution on Public Stock Holding for food security purposes, and a Special Safeguard Mechanism.
In addition, it is necessary to have a frank and open discussion about the WTO we all want – a WTO that is ready to respond to the challenges of the 21st century. In this regard, concrete textual proposals on WTO reform are welcome.
A meaningful reform agenda must strengthen the organization’s three core functions: monitoring, negotiations, and dispute settlement functions. And development should remain a central theme of any reform discussion. Therefore work on WTO reform must move forward in a way that is inclusive and action-oriented, to build a more durable multilateral trading system.
WTO members report on progress in finding landing zones in fisheries subsidies negotiations[4]
Heads of delegations on 29 October 2021 reported progress in their bilateral and small group discussions on fisheries subsidies ahead of the 12th Ministerial Conference (MC12), with many noting a broad willingness across the membership to explore solutions to bridge differing positions.
Over 20 delegations of developed and developing country members, some representing groups of members, took the floor at the meeting of the Negotiating Group on Rules.
Many members noted that their exchanges have been constructive and indicated there was an openness on all sides to look for solutions, with delegations widely affirming their commitment to complete the negotiations by MC12 which will be held from 30 November to 3 December 2021 in Geneva, Switzerland.
Members review safeguard actions, address increased use of measures[5]
During the biannual meeting of the Committee on Safeguards on 25 October, WTO members reviewed safeguard actions taken by fellow members with regard to more than 30 investigations. Several members again reiterated their general concern with the large number of safeguard actions taken and called on members to strictly abide by the Agreement on Safeguards.
Notifications of various safeguard (SG) actions received since the committee’s April 2021 meeting regarding 32 products were reviewed and a number of general issues were raised at the meeting, which was chaired by Ms Mary Lisa Madell (United Kingdom).
Japan, China and Australia reiterated general concern about the large number of safeguard actions taken, while the United States underlined the importance of transparency in legislative notifications. In comments on the safeguard actions reviewed, several members raised concerns about the impact of safeguards on global trade and supply chains and the importance of strictly adhering to WTO disciplines on the use of safeguards. They recalled that this instrument was intended to address emergency situations.
Under the WTO rules, a member may apply measures to imports of a product temporarily (take “safeguard” actions) through higher tariffs or other measures if it determines through an investigation that increased imports of a product are causing or threatening to cause serious injury to its domestic industry. Unlike anti-dumping duties, safeguard measures cover imports from all sources, although imports from developing country members with a small share of imports are exempted through special and differential treatment provisions.
Review of legislative notifications
The committee reviewed notifications of new or amended SG legislation or regulations from India, Mongolia and the United Kingdom and continued its review of the legislative notifications of Cameroon, Ghana, Kenya, Liberia and Zimbabwe.
Specific notification of safeguard actions
Notifications of various safeguard actions from the following members were reviewed by the committee: Costa Rica; the European Union; the member countries of the Gulf Cooperation Council (GCC); India; Indonesia (two investigations); Madagascar (two investigations); Morocco (four investigations); the Philippines (five investigations); South Africa (two investigations); Thailand; Tunisia; Turkey (three investigations); Ukraine (six investigations); the United Kingdom; and the United States.
Six members took the floor in respect of the European Union’s decision to extend its safeguard measure on certain steel products.
Six members took the floor in respect of the United Kingdom’s decision to extend its safeguard measure on certain steel products.
Members welcomed the following decisions to terminate safeguard investigations without the imposition of final measures: the GCC (on certain steel products); India (on solar cells); the Philippines (on motor vehicles, on aluminium zinc sheets and coils, on prepainted galvanized iron and on galvanized iron sheets, coils and strips); South Africa (on sections of iron or non-alloy steel); Thailand (on aluminium foil); and Ukraine (on ceramic tiles and on wires).
Observations by the European Union
The European Union asked for a specific agenda item to make its observations on the investigation by Ukraine on wire and cables, the investigation by Indonesia on articles of apparel and clothing accessories and the investigation by Indonesia on cigarette paper. Ukraine and Indonesia took note of the observations of the European Union and offered their views.
Requests under Article 13.1 of the Safeguards Agreement
The request made by the European Union pursuant to Article 13.1 (e) of the Safeguards Agreement as well as the request made by Ecuador pursuant to Article 13.1 (b) of the Safeguards Agreement were taken up. Members had various comments on the draft documents submitted by the chair on each request, and the chair suggested that the members continue discussing these two requests.
Possible revision to the safeguards notification format
The committee had another round of discussions on Brazil’s proposal regarding certain revisions of the notification format. The chair suggested that members continue discussing this proposal.
Next meeting
The next meeting of the Committee on Safeguards is provisionally scheduled for the week of 25 April 2022.
More background on safeguards is available at https://www.wto.org/english/tratop_e/safeg_e/safeg_e.htm.
Panel established to examine Chinese duties on imported Australian wine[6]
The WTO’s Dispute Settlement Body (DSB) agreed at its meeting on 26 October to establish a dispute panel to examine China’s imposition of anti-dumping and countervailing duties on imported wine from Australia.
DS602: China — Anti-Dumping and Countervailing Duty Measures on Wine from Australia
Australia submitted its second request for the establishment of a panel to examine China’s imposition of anti-dumping and countervailing duties on imported Australian wine. Australia’s first request was blocked by China at the DSB meeting on 27 September.
Australia noted that while it remains ready to engage in bilateral discussion with China, Australia is disappointed that it is not seeing any concrete steps by China to respond to its concerns. As a result, Australia is again requesting the establishment of a panel to examine the matter. Australia values its community and economic ties with China and remains open to further discussions with China, with a view to resolving the issues Australia has raised.
China said it regrets that Australia has decided to submit a second request for a panel. China said it will vigorously defend its legitimate measures in the proceedings and is confident they are consistent with relevant WTO rules. China remains open to further engagement with Australia in good faith, with a view to positively resolving this dispute.
The DSB agreed to the establishment of the panel. Canada, Japan, Brazil, the United States, the United Kingdom, Ukraine, Turkey, Chinese Taipei, New Zealand, Norway, Switzerland, India, Singapore, Russia, the European Union, and Viet Nam reserved their third party rights to take part in the proceedings.
Appellate Body appointments
Mexico, speaking on behalf of 121 members, introduced for the 47th time 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.
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 dispute settlement system can and should better support the WTO’s negotiating and monitoring functions, the US said, adding that it looked forward to further discussions with members on these important issues.
Around 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, and pledged their support to continue efforts to find a solution acceptable to all. Several delegations said members should take the occasion of the WTO’s upcoming 12th Ministerial Conference (MC12) to agree on a work programme for resolving the Appellate Body impasse.
For the 121 members, Mexico again came back to say that the fact a member may have concerns about certain aspects of the functioning of the Appellate Body cannot serve as pretext to impair and disrupt the work of the DSB and the dispute settlement in general. It said that there was no legal justification for the current blocking of the selection processes, which is causing concrete nullification and impairment of rights for many members.
The chair of the DSB, Ambassador Didier Chambovey of Switzerland, emphasized that resolving the impasse requires political engagement by all members. He expressed hope that members will be able to find a solution to this matter as soon as possible. The chair of the General Council, Ambassador Dacio Castillo of Honduras, continues to consult on this matter in the context of preparations for MC12, and reports on his consultations to all members, Ambassador Chambovey noted. He added that his door remains open to any delegation wishing to contact him on this matter.
United States — Continued Dumping and Subsidy Offset Act of 2000 (CDSOA): statement by the European Union
Both the European Union and the United States referred to their statements made at previous DSB meetings under this item.
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 noted that the US and the EU reached an “Understanding on a cooperative framework for Large Civil Aircraft” in June and that it looks forward to engaging with its EU partners on creating a more level global playing field in this sector. The EU referred to its previous statements under this item.
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
Tunisia made a statement noting that it held further consultations with Morocco on 21 October in order to resolve their differences over procedural implications stemming from Morocco’s appeal of the panel report in DS578: “Morocco — Definitive Anti-Dumping Measures on School Exercise Books from Tunisia.” Tunisia said it submitted a proposal to Morocco in advance of consultations, and Morocco had promised to reply with its own proposal by the end of the week. Tunisia said it remains committed to finding a solution to the dispute as soon as possible.
Morocco reiterated its commitment to resolving the matter based on a mutually acceptable solution as soon as possible.
Next DSB meeting
The next DSB meeting will take place on 29 November 2021.
Members exchange views on measures, practices at Anti-Dumping Committee meeting[7]
The WTO’s Committee on Anti-Dumping Practices met on 27 October to review WTO members’ latest notifications of new, amended or previously reviewed anti-dumping laws and regulations as well as reports on anti-dumping actions.
The Committee reviewed new notifications of legislation submitted by Colombia, India and the United Kingdom. It continued its review of the legislative notifications of Cameroon, Ghana, Kenya, Liberia, Peru, and Saint Kitts and Nevis.
As is the usual practice in the Committee, delegations raised questions about the actions of other members in reviewing their semi-annual notifications on anti-dumping actions: the initiation of investigations, the imposition of provisional and final anti-dumping measures, and the review of existing anti-dumping measures.
With respect to the semi-annual reports covering the period 1 January — 30 June 2021, 45 members notified the Committee of anti-dumping actions taken in this period, while 14 reported no new anti-dumping actions in this period. The Chair of the Committee, Mr Ahmed Al-Sulaiti of Qatar, urged members that had not submitted reports of actions to do so promptly. The Chair also promoted the newly updated handbook as a good guide to members’ notification obligations as well as the technical assistance available for members through the WTO Secretariat.
Questions were raised by several delegations regarding actions contained in the semi-annual reports submitted by Brazil, Canada, China, Egypt, the European Union, India, the Republic of Korea, Philippines, South Africa, Thailand, Ukraine, the United Kingdom and the United States.
In addition to the semi-annual reports, the WTO’s Anti-Dumping Agreement requires members to submit without delay — on an ad hoc basis — notifications of all preliminary and final anti-dumping actions taken. Ad hoc notifications reviewed during the meeting were received from Argentina, Australia, Brazil, Canada, China, the Dominican Republic, the European Union, India, Indonesia, Japan, Kazakhstan, the Republic of Korea, the Kyrgyz Republic, Mexico, New Zealand, Pakistan, Philippines, the Russian Federation, South Africa, Chinese Taipei, Turkey, Ukraine, the United Kingdom and the United States.
In this connection, questions were raised regarding notifications submitted by Argentina and Ukraine.
The Russian Federation placed a separate item on the agenda entitled “United States — Examination Whether to Continue to treat the Russian Federation as a Market Economy Country for the Purposes of Anti-Dumping Duty Law”.
Next meeting
The next meeting of the Committee is scheduled to take place in the week of 25 April 2022.
[1] https://www.wto.org/english/news_e/news21_e/serv_25oct21_e.htm
[2] https://www.wto.org/english/tratop_e/tpr_e/tp516_e.htm
[3] https://www.wto.org/english/news_e/news21_e/ddgae_28oct21_e.htm
[4] https://www.wto.org/english/news_e/news21_e/fish_29oct21_e.htm
[5] https://www.wto.org/english/news_e/news21_e/safe_25oct21_e.htm
[6] https://www.wto.org/english/news_e/news21_e/dsb_26oct21_e.htm
[7] https://www.wto.org/english/news_e/news21_e/anti_27oct21_e.htm