Indian interest in WTO Ministerial Conference

the story So Far: On June 17, World Trade Organization (WTO) member states wrapped up the Twelfth Outing (MC12) of the Ministerial Conference, agreeing to relax patent rules to achieve global vaccine equity; Ensuring food security, subsidizing the fisheries sector and continuing the moratorium related to e-commerce, among others. Together they refer to WTO Director-General Ngoji Okonjo-Iwela as the “Geneva Package”. India saw some successes in MC12 with respect to the above mentioned areas.

What is the WTO Ministerial Conference?

MC tops the WTO organizational chart. It meets once every two years and can decide on all matters under any multilateral trade agreement. Unlike other organizations, such as the International Monetary Fund or the World Bank, the WTO does not give power to a board of directors or any organizational head. All decisions in the WTO are made collectively and through consensus among member countries in various councils and committees. This year’s conference was held in Geneva, Switzerland.

What were the debates about agriculture in MC?

Agreements on this subject are of special importance to India. Referring to its status as a significant contributor to the World Food Program (WFP), India had earlier said that it had never imposed export restrictions for purchases under the programme. It said a sweeping exemption could hamper its work in ensuring food security back home. In such a situation, he will have to fulfill his WFP commitments regardless of his domestic needs. The negotiators agreed that member states would not impose export restrictions or restrictions on food items purchased for humanitarian purposes of the WFP. However, the decision will not prevent member countries from adopting measures to ensure domestic food security.

Negotiators could not reach agreement on issues such as acceptable public stockholding limits for domestic food security, domestic support for agriculture, cotton and market access. The central premise of the agreements was to ensure the availability, accessibility and affordability of food to those in need, particularly in humanitarian emergencies. This encouraged member countries to issue surpluses with available surpluses on international markets in compliance with WTO regulations. In addition, it established an action program for LDCs (least developed countries) and NFIDCs (food importers not developing countries) to come up with measures to help them increase their domestic food security and increase agricultural production.

What about fisheries-related agreements?

India was successful in reaching an agreement on ending subsidies to people engaged in illegal, unreported and unregulated fishing. The only exception to continuing subsidies for highly fish stocks is when they are deemed necessary to rebuild them to a biologically sustainable level. Overfishing refers to over-exploitation of fish faster than they can replenish themselves – currently at 34% according to the Food and Agriculture Organization of the United Nations (FAO). The decline in fish stocks threatens poverty and endangered communities that depend on aquatic organisms for their livelihoods and food security.

In addition, the agreements stipulate that there will be no limit on subsidies given or maintained by developing or less developed countries for fishing within their exclusive economic zones (EEZs).

Has the current ban on electronic transmission been extended?

Member countries agreed to extend the current moratorium on non-imposition of customs duties on electronic transmission (ET) until MC13 – due in December 2023. 105 countries, including the US, UK, Australia, China and Japan, had demanded an extension of the moratorium due to protests from India and South Africa.

Broadly speaking, ET includes online delivery such as music, e-books, films, software and video games. They differ from other cross-border e-commerce in that they are ordered online but not delivered physically.

Supporters had said the postponement would help maintain certainty and predictability for businesses and consumers, especially in the context of the pandemic. On the other hand, India and South Africa, citing data from the United Nations Conference on Trade and Development (which counts the volume of printed matter, music and video downloads, software and video games), submitted that duty-free market access Extending the moratorium resulted in a loss of $10 billion per year globally – 95% of which was borne by developing countries. In addition, he also sought more clarity on what constitutes electronic transmission.

Customs duties have traditionally been used to prevent unwanted surges in imports, allowing nascent domestic industries to remain competitive. Developing countries will need to import equipment and services on a large scale to enhance their digital capabilities. Customs provide the capital flows needed for capacity building and, in turn, seek to address the digital divide – particularly high in low-income and developing countries, exacerbated by the COVID-19 pandemic. It is in this context that India and South Africa sought to preserve the policy space for digital advancement of developing countries so that they can get more revenue from customs duties and thus facilitate greater investment.

What was the discussion on patent exemption?

The Member States agreed to authorize the use of the subject matter of the patent for the production of COVID-19 vaccines by a Member State without the consent of the rights holder. In addition, it asks member countries to waive requirements, including export restrictions, set by WTO rules to supply any number of vaccines to domestic markets and member countries. However, the agreement comes too little, too late for economically poor countries.

Many LDCs have suffered in their efforts to tackle the now nearly three-year-old pandemic due to factors such as the tense balance of payments situation, different levels of growth, financial capabilities and varying degrees of import dependence on those products.

Within the next six months, members are expected to take a decision on expanding the scope of the agreement to cover the production and supply of COVID-19 diagnostics and therapeutics.