WTO: DG & EU Rep. See Limited Outcomes for MC13

Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, forecast that the forthcoming 13th ministerial conference could yield "two or three agreements," notably on harmful fisheries subsidies, a moratorium on customs duties for electronic transmissions, and enhanced flexibilities for developing nations.

In a dialogue with Valdis Dombrovskis, European Commission Vice President, at the European Civil Society event, Okonjo-Iweala also advocated for an agreement on investment facilitation, currently under negotiation by 110 countries on a plurilateral basis.

She initially omitted agriculture in her discussion of expected outcomes at the MC13 but later acknowledged the difficulty of achieving progress in this area. She expressed impatience over the 20-year stalemate in agriculture negotiations.

The challenges in reaching an agriculture agreement stem from divergences on issues like domestic support, solutions for public stockholding programs for food security, and market access. Cotton remains a critical concern for developing countries. Okonjo-Iweala proposed that a “future program” agreement could be a positive step.

Dombrovskis emphasized the importance of establishing an agriculture workstream to be concluded at MC14, scheduled for 2026 in Cameroon, as a significant outcome of MC13.

Both officials concurred on the necessity of finalizing the fisheries subsidies agreement at the conference.

Regarding the moratorium on electronic transmission tariffs, both officials leaned towards a temporary extension. Okonjo-Iweala, maintaining neutrality, suggested Dombrovskis discuss the moratorium with developing countries advocating its termination.

This proposal follows recent appeals from 32 US lawmakers to Katherine Tai, US Trade Representative, for the moratorium’s extension at MC13. Conversely, South Africa has called for its termination, citing disadvantages to local firms in developing countries and impediments to digital industrialization.

Both Okonjo-Iweala and Dombrovskis backed an investment facilitation agreement at MC13, with the EU actively participating in the negotiations. However, some WTO members, like India, oppose such Joint Statement Initiatives (JSIs). The inclusion of the Investment Facilitation for Development (IFD) in the MC13 outcome document remains uncertain.

Regarding fisheries subsidies, Okonjo-Iweala expressed confidence in addressing $22 billion in subsidies to prevent global fish stock depletion. However, last week’s negotiations revealed uncertainty about identifying the top 20 subsidizers. Einar Gunnarsson, fisheries negotiations chair, urged member engagement and admitted challenges in defining the largest subsidizers and the operational aspects of the proposed two-tier discipline system.

Gunnarsson also highlighted the lack of consensus on various aspects, including the differentiation between tiers and the handling of distant water fishing subsidies. Last week’s discussions revealed significant disagreements, indicating challenges in finalizing the fisheries subsidies agreement.