WTO - Call for "Action to Assist LDCs in Crisis"

Pakistan has proposed a draft decision for the World Trade Organization’s next ministerial conference that calls for substantial “response measures” and the “needed space” with requisite policy tools for developing and least-developed countries to tackle unforeseen multiple crises arising from climate change and the worsening international economy, WTD has learned.

Under other business at the WTO's General Council meeting that ended yesterday, China, India, Indonesia, South Africa, Egypt, Brazil, Argentina, Nepal, Bangladesh, Sri Lanka and Bolivia strongly supported Pakistan’s proposal titled, “WTO Action to Assist Developing Countries and LDCs in Crisis Response.”

Islamabad underscored the need for a “pro-active decision by WTO Members that would allow the needed space for developing countries and LDCs facing a crisis to respond expeditiously and with required policy tools to avoid deepening and spreading of the crisis.”

While “such a decision should help members to stay within the WTO rules and not risk violating them,” Pakistan said that the “decision needs to be seen as adjusting to new realities rather than seek typical “carve-outs.” More importantly, “WTO needs to keep up with the times and evolving needs of its members,” Pakistan emphasized.

Keeping Crises from Spreading

Pakistan, which has been ravaged by calamitous floods including last year, that required tens of billions of dollars to recover, maintained that the proposed proactive decision would ensure that the country affected adversely, particularly for the people and its economy, could reduce the possibilities of the spreading of the crisis to other members.”

“More broadly,” said Pakistan, “this decision will contribute to cushioning the trajectories of implementing the SDGs (United Nations Sustainable Development Goals) from the impact of the crises, and thus make the WTO more fit for the purpose of contributing towards the realization of the SDGs.”

Pakistan’s proposal says:

1. Members agree that, notwithstanding the Articles listed in Annex 1 to this Decision, a developing Member adversely affected by a crisis, may undertake any measures to respond to the crisis, for an initial period of 5 years, while fulfilling the conditions set out below under 5(I) and 5(ii).

A developing Member notifying measures under this Decision that continues to be adversely affected by a crisis beyond the initial 5 years may maintain or renew the measures it undertook provided that the conditions set out under 6(I), 6(ii) and 6(iii) are met.

2. For the purposes of this Decision: “Crisis” includes one or more or a series of crises, of domestic or global nature, including but not limited to, climatic and natural disasters, financial and economic crises, health emergencies including public health emergencies of international concern as determined by the World Health Organization (WHO), food-security related crises. “Developing Member adversely affected by a crisis” means a developing Member that has met any one or more of the indicators in Annex 2.

3. Members shall not challenge any measures notified under this Decision through the WTO Dispute Settlement Mechanism or under Article XXIII of the General Agreement on Tariffs and Trade (GATT) or Article XXIII of the General Agreement on Trade in Services (GATS).

4. This Decision is without prejudice to the flexibilities, including Special and Differential Treatment, that Members have under various WTO agreements and rules.
5. A Member notifying measures under this Decision must: Notify the measures it undertakes in

response to a crisis within a period of time that does not extend beyond [3] months from the date of implementing those measures.

Within a period that does not extend beyond one year, the concerned Member shall present to the relevant WTO Committees data concerning one or more of the indicators under Annex 2 pertaining to the impact of the crisis on domestic conditions at the time of implementing the notified measures.

6. Where a Member maintains or renews measures notified under this Decision beyond the initial 5 years: The concerned Member must notify the relevant Committee(s) and submit relevant data on one or more of the indicators listed in Annex 2.

The concerned Member shall be free to maintain or renew the measures for a period that does not exceed an additional [18] months without further action by the concerned WTO bodies.

7. Where a Member notifying measures under this Decision maintains or renews the measures beyond the initial 5 years, the Member must upon request hold consultations with other Members concerning the measures notified.

8. The relevant Committee(s) shall monitor the information submitted under this Decision. Some industrialized countries apparently did not support Pakistan's proposal at the GC meeting.