CHALLENGES OF ABUDHABI MINISTERIAL CONFERENCE OF W T O

 World Trade Organisation established in 1995 after lengthy debates and discussions on Uruguay round of  negotiations emerged as the legal and institutional foundation of the multilateral trading system. The final Act consists of the rules governing its working the Ministerial decisions and declarations containing  vital agreements on trade in goods, services,intellectual property rights and plurilateral trade. More over it also cater to dispute settlement mechanism and trade policy review system.WTO 's topmost decision making body is the Ministerial Conference which usually takes place every two years .On the other hand General Council is just below the Ministerial Conference that meets several times in a year. WTO 's Dispute Settlement mechanism caters to resolve trade related disputes between the member countries. The 13th Ministerial Conference was  held in Abudhabi during 26th February to 2nd March 2024 in which member countries from diverse levels of development varying geo political conditions discussed crucial subjects ranging from food security, e- commerce, fisheries subsidies,market access, investment facilitation and WTO reforms including the restoration of "WTO's Crown" -the Dispute Settlement system (DSS ).

Indias commece minster claimed that Abudhabi Ministerial Conference has been successful in ensuring the protection of  Indian farmers and fishermen. The Ministerial Conference of WTO  took up very important issues confronting global trade,tarrifs and issues related to -Public Stock Holding (PSH) resolution,Limiting fisheries subsidies, taxation of e-commerce and Dispute Settlement. The policy instruments were applied by the Governments in several countries to meet the needs of the poor people living below the poverty line facing food shortages should not be legally challenged in the WTO's dispute settlement system. PSH issues generally depend on the procurement made to stock - food grains from the farmers at a specific price which is called as Minimum Support Price in India. Grains are procured at a subsidised rate which may lead to the violation of WTO norms.Eventhougmh India along with other developing countries sought a permanent solution to PSH, the developed nations including European Union argued against PSHs, holding them responsible for market distortions.Eventhough India is not facing any immediate threat because of"the peace clause " providing shield to developing countries from legal challenges over subsidies or free distribution of food grains to the poor,experts point out WTO 's inability to address farmer's demand, from  the global South concerning food  security .On the other hand while acknowledging the negative impact of subsidies on fisheries sector, especially the urgency to curb harmful subsidies provided by countries to those engaged in highly mechanised deep sea fishing beyond territorial waters.On the contrary there is a clear case for protecting and safeguarding the food  and livelihood concerns of fisherfolcks using traditional boats and methods for trawling within the territorial waters.  India continues to oppose the  moratorium on  E- commerce transmission on digital products. Most developed countries were attempting to convince India to allow an extension of the moratorium on e- commerce import taxes which will obviously result in huge revenue losses to developing countries. Another attempt led by China with the  support of 120 countries to get it's investment facilitation development pact integrated into the WTO as a plurilateral agreement has been rejected by countries like India and South Africa on the ground that it doesn't have a Ministerial mandate. 

In nutshell hurting the livelihoods and food security of the poor as well as small and marginal farmers could not be completely addressed without providing appropriate subsidies. The livelihood issues of both farmers and fishers by agriculture and fisheries subsidies are very crucial  for countries like India. The Proposals put forward by developed countries including European Union were detrimental to the welfare interest of vulnerable people both in  agriculture and fisheries sectors. The concerted attempt by developed countries to throw non trade issues like climate change, gender development, labour and environmental sustainability have become more distorting than ever before. Unfortunately both PSH and fisheries are not featured in the Ministerial declaration. Despite strong protest from India and other countries Ministerial Declaration of WTO extended moratorium on e commerce for 2years more.Till recently the greatest attraction of WTO has been the existence of an independent Dispute Settlement system which enabled it to  take many just and historic decisions .Unfortunately by putting hurdles on the appointments of new appellate members  by the USA the smooth functioning of WTO dispute settlement system is thwarted at least temporarily. Let us hope that important pending decisions on PSH (minimum support price(MSP))and fisheries subsidies,removal of moratorium on taxing e commerce and most importantly the restoration of"teeth of WTO" "namely the Dispute Settlement system  without altering the basic characteristics and procedures will be followed in true spirit at the earliest preferably on or before the fourteenth Ministerial Conference.Obviously it  will go a long way in promoting multilateral trading system and global development. 

Comments

menondj said…
That gave us a good insight into the trade and WTO. Well written Ravi !
9 March 2024 at 17:36
Anonymous said…
Beautiful presentation 👏
9 March 2024 at 19:25
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