WTO: Kicking the Can Down the Road at MC-13

The upcoming 13th ministerial conference of the World Trade Organization in Geneva seems to be becoming an event focused on deferring critical issues previously agreed upon during the MC12 ministerial meeting held in July 2022, according to informed sources.

Recent developments within the WTO's Trade-Related Aspects of Intellectual Property Rights Council indicate that there will be no decision to extend the TRIPS-partial waiver to COVID-19 diagnostics and therapeutics.

Similarly, the sixth draft of the ministerial decision on dispute settlement reform, particularly regarding the appeal review mechanism, suggests that the two-tier dispute settlement system, considered the "jewel in the crown," will not be reinstated at MC13, despite the mandate provided in MC12.

Despite these setbacks in realizing MC12-mandated decisions at MC13, it appears that one major industrialized country is determined to secure an outcome regarding the extension of the e-commerce moratorium on customs duties on electronic transmissions at MC13, by any means necessary, according to individuals familiar with the situation.

Even decisions aimed at improving the status of the least-developed countries in the multilateral trading system seem to face challenges due to obstacles posed by major industrialized countries, as reported by a negotiator from a least-developed country.

Furthermore, U.S. lawmakers have been actively influencing matters at the WTO, particularly regarding the continuation of the moratorium on customs duties on electronic transmissions and waiving intellectual property protections for COVID-19 diagnostics and therapeutics.

In the context of the TRIPS Council, there have been ongoing discussions about paragraph eight of the MC12 Decision on the TRIPS Agreement, which pertains to its extension to cover COVID-19 diagnostics and therapeutics. While some Members view this as a deadline for discussions, others argue that it is not a mandate, leading to disagreements and delays.

The co-sponsors of the TRIPS waiver proposal have urged the General Council to extend the decision to therapeutics and diagnostics, emphasizing the need for timely access to these crucial tools for addressing the ongoing COVID-19 pandemic.

In summary, the failure to reach an agreement on paragraph eight of the TRIPS Agreement at MC12 raises questions about the credibility of decisions made at ministerial meetings within the WTO. The conference appears to be focused on delaying critical decisions, which could have significant implications for global trade and public health.