The 12th Ministerial Conference of the World Trade Organization (WTO) recently concluded, where a broad range of key areas were discussed. This included the WTO’s response to the pandemic, Fisheries subsidies negotiations, Agriculture issues including Public Stockholding for Food security, WTO Reforms and Moratorium on Custom Duties on Electronic Transmission. The conference was significant as it was the first ministerial conference held by the 164-member WTO in nearly five years, due to Covid-19 postponements.
Key Outcomes of the 12th Ministerial Conference
Members of the WTO reaffirmed the foundational principles of the organization and pledged to reform all its functions. They committed to having a well-functioning dispute settlement system accessible to all members by 2024. An agreement was reached to curb harmful subsidies on illegal fishing to protect global fish stocks. The agreement permitted small-scale artisanal fishing subsidies and exempted these farmers from restrictions.
The members also agreed to a binding decision to exempt food purchased by the UN’s World Food Programme for humanitarian purposes from any export restrictions. However, nations would be allowed to restrict food supplies to ensure domestic food security needs, especially with the global food shortages and rising prices triggered by the Ukraine-Russia war.
The long-standing moratorium on custom duties on e-commerce transmissions was extended until the subsequent Ministerial Conference or until 31st March 2024, whichever comes first. From 2017-2020, developing countries lost potential tariff revenue of around USD 50 billion on imports from only 49 digital products due to this moratorium.
A significant outcome was the agreement to temporarily waive intellectual property patents on Covid-19 vaccines without the consent of the patent holder for 5 years, to facilitate domestic manufacturing. However, this waiver has been criticized for being narrow in scope as it does not cover all essential medical tools like diagnostics and treatments.
India’s Stance on WTO Reforms
India is of the view that WTO reforms must focus on strengthening its fundamental principles. India suggested specific reforms for developing countries and took a lead in criticizing proposals by the European Union and Brazil. India was against an open-ended exercise on WTO amendments and asked for a review of the extension on the moratorium on custom duties on e-commerce transactions.
On food security, India asserted that WTO should revisit subsidy rules for government-backed food purchasing programs designed to provide food to poor citizens in developing and underprivileged countries. India wanted guarantees that its public stock-holding program will not be challenged at the WTO as illegal.
About the World Trade Organization
The WTO succeeded the General Agreement on Tariffs and Trade (GATT) and was established in 1995 with the objective of making trade flow smoothly and predictably. With 164 members, it accounts for 98% of world trade. The WTO was developed through a series of trade negotiations, or rounds, held under the GATT. The current set of WTO rules are largely the outcome of the 1986-94 Uruguay Round negotiations, which included a major revision of the original GATT. The WTO Secretariat is based in Geneva, Switzerland.
WTO Ministerial Conference
The WTO Ministerial Conference is the top decision-making body of the WTO. It usually meets every two years and involves all WTO members. Decisions on all matters covered under any multilateral trade agreements can be taken during this conference.
Last Modified: February 15, 2024