Indian Concern for the 12th Ministerial Conference of WTO

The 12th Ministerial Conference or MC12 of the World Trade Organization (WTO) will be
convened on 12-15 June 2022 in Geneva. The MC 12 was initially scheduled to take place in
June 2020 in Kazakhstan, was postponed after the announcement by Kazakhstan that it would no
longer host this meeting due to the COVID-19 pandemic. Following this, WTO decided new
dates 30 November-3 December 2021 for hosting the conference in Geneva, but it had to
reschedule the meeting again on 12-15 June 2022 due to the outbreak of the Omicron variant of
COVID-19, which led to the imposition of travel restrictions and quarantine requirements in
Switzerland and several other parts of the world (WTO, 2022).The conference is being organised
at a time when the global economy is experiencing an uncertain situation due to various factors
such as crisis in Ukraine, spread of COVID in parts of China, political unrest in South Asia
among others. Many production facilities are still closed leading to disruption in supply chain.

This is a time when the WTO is battling a severe existential crisis on several grounds. The
negotiating arm of the organisation is in jeopardy, having delivered just the Agreement on Trade
Facilitation since its establishment. Negotiations to rebalance the major WTO agreements,
which are conducted under the ambit of the Doha Development Agenda (DDA) since 2002,
came to a virtual standstill after the economic recession in 2008. The preceding Ministerial
Conference held in 2017, could not bring consensus among members on continuing with the
DDA (Dhar, 2021). A growing number of members like USA and EU have started questioning
the ability of the trade body in resolving matters which were hovering for a long time. It is also
criticised by developing countries like China, Turkey for being largely dominated by traditional
economic powers, such as the US and the EU. Members, especially from the developing world,
like India, South Africa China feel that the WTO has largely failed in protecting their interests.
Till date the WTO could not bring any solution to the pressing issues such as permanent
moratorium on e-commerce, trade facilitation agreement, and public stock holding among others.
The WTO could not support India’s appeal to wave off the Intellectual Property Rights (IPR) on
COVID-19 vacancies as it failed to influence its members on this issue. This happened despite
61 WTO members co-sponsored the proposal and nearly two-thirds of the members supported
it.
Despite these concerns, members are still hopeful of resolving issues through discussion under
the ambit of WTO. India also believes in the same and is committed to its promise made to the
trade body.In the forthcoming ministerial meeting, India is expected to play a bigger role and
press several critical issues that matter to its economy.

E-commerce
The issue of e-commerce was introduced in WTO two decade back during 1998 as an agenda of
global trade policymaking under the work program on e-commerce. Subsequently, e-commerce
was defined and the members agreed to continue the ongoing practice of not imposing custom
duties on electronic transmission by signing a temporary moratorium which will be reviewed in
every two years interval (WTO, 1998). The 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. Developing countries blame developed economies of introducing many topics into
the discussion which are not related to e-commerce and diverting the discussion from the core
agenda. They argue that developed countries are trying to manipulate the issue in their favour
which will lead to disaster for the developing nations (Kelsey 2018).

India favours imposition of tariffs as it argues that with the innovation and development in the
electronic industry so many goods like books, music, etc. that were traded physically earlier can
now be traded digitally. And the sector is growing exponentially. Hence leaving this crucial
sector outside the purview of tariffs would make a huge loss in the exchequer. In the upcoming
ministerial meeting, India should bring this important topic and try to find a solution.

Fishery subsidies
Though there is no consensus on the binding disciplines of fishery subsidy, the MC 12 is going
to discuss this issue in detail. The Negotiating Group on subsidies has narrowed down the
differences and proposed several measures for taking care of the concerns of the developing
nations.

India, in a recently circulated proposal, reiterated the issue of Special and differential treatment
provisions (S&DT) mentioned at MC11. India proposed that the prohibition of unreported and
unregulated fishing should not apply to subsidies granted/maintained by developing countries,
including LDCs, for fishing within their territorial waters and their Exclusive Economic Zones
(EEZs) as well as the high seas for a certain period. India added that with regard to fishing within
their EEZs, these members should be entitled to a certain number of years to withdraw or modify
any subsidy for fish stocks that have been declared as overfished by the national authorities,
based on the best scientific evidence available to such members (Rahman and Bhattacharya,
2020).

IPR waiver on COVID-19 vaccine

India would strongly pursue its demand to waive off intellectual property rights on the COVID-
19 vaccine. India has been spearheading the demand for making COVID-19 vaccines accessible
to vulnerable populations in low and middle-income countries (LMICS) by granting patent
waivers for COVID-19 vaccines and therapeutics. India’s demand is aimed at a uniform non-
discriminatory regime for people who have been fully vaccinated. The suspension of global
intellectual property rights of COVID-19 vaccine manufacturers, proposed by India, has been
facing a deadlock. For almost a year, India and South Africa have been urging the WTO
members to suspend certain parts of a global pact on IPR, so that the vaccines and testing
technology for COVID-19 can be shared widely.

Public stock holding

Public stock holding is another pressing issue that India would push during the MC12. India,
along with G33 group of developing nations has stepped up pressure at the WTO for a permanent
solution on public stock holding programmes. Public stockholding programmes are government
schemes to purchase, stockpile and distribute food to people in need. India does it though
offering Minimum Support price (MSP). However, WTO rules prohibit countries to provide
subsidy or buy at a subsidised price as it is trade distorting. India argues it to be a legitimate and
considers it crucial to ensure foods security. Based on the demand from India and other
developing countries WTO allowed the practice under an interim arrangement called peace
clause”, which was devised in 2013. However, countries find it hard to use the clause as it is
subject to numerous notification requirements. India and the others are demanding that a
permanent solution, that would cover all farm products and not involve numerous notifications.
India expects MC12 would deliver the solution to this problem.

Though several questions have been raised about legitimacy or even the necessity of the WTO,
members are still hopeful of resolution of their problems through discussion at the global forum.
Countries are submitting their concerns to the trade body and pressing their respective issues in
the appropriate forum of WTO. Despite having so many hurdles and postponement of the
meeting twice, WTO is convening the ministerial conference next month. It is now up to the
WTO and its key functionaries to take necessary steps so that the members and stakeholders can
continue to have their faith on it and its role in maintaining a rule-based trading system.

Endnotes

1. Kelsey J. (2018). How a TPP-Style E-commerce Outcome in the WTO would endanger the Development
Dimension of the GATS Acquis (and Potentially the WTO). Journal of International Economic Law,
Volume 21, Issue 2, Pages 273–295

2. Rahman M and Bhattacharya D. (2020). In Preparation for WTO MC12: Safeguarding Trade Interests of
LDCs and Securing Trade Interests of Graduating LDCs. UNESCAP

3. WTO (April 25, 2022). Dates fixed for 12th Ministerial Conference in June,
https://www.wto.org/english/news_e/news22_e/mc12_25apr22_e.htm#:~:text=In%20a%20communication
%20forwarded%20to,12th%20Ministerial%20Conference%20(MC12)%20will

4. WTO (May 20, 1998).The Geneva Ministerial Declaration on Global Electronic Commerce,
WT/MIN(98)/DEC/2 (20 May 1998) [The E-commerce Declaration]