News Highlights
The 12th WTO Ministerial Conference that was held between 12th June to 16 th June ends.
Ministers from across the world are attending WTO Ministerial Conference to review the functioning of the multilateral trading system, to make general statements and to take action on the future work of the WTO.
India’s Expectation in WTO Ministerial Conference
- India expects the WTO Ministerial Conference would offer solutions to some of the leading issues that are not only important to it but also the world.
- Among many issues that India attaches high importance to, the most critical are e-commerce, fishery subsidy, public stock holding and IPR waiver for COVID 19 vaccine.
Is India’s Expectations fulfilled in WTO Ministerial Conference?
- Digital Trade
- India expects MC12 to deliver a permanent solution to the issue of tariffs on digital trade.
- Discussion on digital trade is stuck in WTO as members are divided on the issue of imposing tariffs on the goods and services traded electronically.
- Set of countries primarily representing developed world favour tariff free digital trade
- Another group, led by India opposes this because developing countries earn more revenue from tariffs than their developed counterparts.
- Keeping this crucial sector outside the purview of tariffs would bring a huge loss to the public exchequer.
- Outcome
- India in Geneva clearly outlined to developed countries that the moratorium on customs duty on digital imports favours them but agreed to an 18-month extension of the moratorium on customs duty on electronic imports.
- Subsidy on fishery and marine products
- It is another pressing issue to be discussed in the MC12.
- India asked the WTO to promote sustainable fishing and push for the renouncement of “irrational subsidies” and overfishing by many countries.
- Currently the prohibition is only for unreported and unregulated fishing
- India’s concern is shared by many African countries, where fishery and marine produce remains a prominent source of income.
- Outcome
- On fisheries, there would be a check on illegal unreported and unregulated fishing in our waters and elsewhere.
- There would be very strict controls on overfished areas so that fish stocks are restored.
- No subsidies to be given for fishing in areas outside EEZ or RFMOs
- For waiving enforcement of several forms of IPRs
- India and South Africa had tabled a proposal in the WTO in October 2020, for waiving enforcement of several forms of IPRs on health products and technologies useful for COVID-19 treatment.
- India anticipates WTO would take this novel decision to waive off the patents from COVID vaccine that would benefit a large section of poor and low income countries around the world.
- Initially India’s proposal has been in deadlock, due to opposition from a few powerful industrialised countries.
- Outcome
- The Trade-Related Aspects of Intellectual Property Rights (TRIPS) decision will boost export, vaccine equity, accessibility & affordability.
- A country can authorise production of vaccines patented elsewhere and there would be no consent required as well as there would be no limit on exports.
- A decision on Diagnostics/Therapeutics would be taken in 6 months.
- Permanent solution on public stock holding programs.
- India, along with the G33 group of developing nations has stepped up pressure at the WTO for a permanent solution on public stock holding programs.
- Public stockholding programs are government schemes to purchase, stockpile and distribute food to people in need.
- WTO prohibits the practice, arguing it as trade distorting.
- India justifies the practice and claims it is crucial to ensure food security.
- WTO relaxed the practice under an interim arrangement called ‘peace clause’, devised in 2013.
- But many countries find it difficult to apply the clause as it necessitates a plentiful amount of notifications.
- India demands a permanent solution and expects MC12 would deliver the same.
- Outcome
- India’s public stockholding program for foodgrains will also continue unhindered
- As regards the World Food Programme (WFP), there would be no export restrictions on WFP purchases for food security in other countries; However, domestic food security will take priority.
World Trade Organisation
- World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations
- Headquarter: Geneva, Switzerland
- The goal of WTO is to ensure that trade flows as smoothly, predictably and freely as possible.
- In simple terms the primary purpose of the WTO is to open trade for the benefit of all.
- Major Roles of WTO
- it operates a global system of trade rules
- it acts as a forum for negotiating trade agreements
- it settles trade disputes between its members
- It supports the needs of developing countries.
- Decision Making Bodies of WTO
- The WTO’s top decision-making body is the Ministerial Conference. Below this is the General Council and various other councils and committees.
- Ministerial conferences
- Ministerial conferences usually take place every two years.
- General Council
- The General Council is the top day-to-day decision-making body. It meets a number of times a year in Geneva.
Source – Economic Times