RBI Grade B 2022: Know All About WTO and Current Issues PDF Download

RBI Grade B 2022: Twelfth WTO Ministerial Conference started from 12th June 2022 in Geneva. Know All About WTO Structure, Governance, Conference and Current Issues for RBI Grade B 2022, NABARD Grade A 2022 and UPSC 2022.

Twelfth WTO Ministerial Conference started from 12th June 2022 in Geneva

· WTO's Ministerial Conference (MC) happens after every two years. But his time it is happening after around 4 and half years due to Covid. The 11th MC happened in Buenos Aires (Argentina). The 12th MC is starting today in Geneva (12th June to 15th June).

· Ministerial Conference is the top decision-making body in WTO and is represented by member country's trade ministers/officials.

· Indian delegation led by Shri Piyush Goyal will ensure fair deal for the country and the developing world

Agriculture

In the agriculture sector, in May 2022, the DG-WTO, brought three draft texts on agriculture, trade and food security and exemption of the World Food Programme from export restrictions for negotiations. India has reservations about some of the provisions in the draft decisions
An important issue under negotiation at the WTO relates to protection of India’s food grain procurement programme at Minimum Support Prices (MSP).
Such programmes involve purchase from farmers at administered prices and are key to support to farmers and consumers in the country.
WTO rules limit the subsidy that can be provided to such products being procured.
This issue is being negotiated at the WTO by the G-33, coalition of developing countries of which India is a key member, and the African Group which have come together along with the ACP group in submitting a proposal on permanent solution to the issue of public stockholding for food security purposes on 31 May 2022.
India co-sponsored a G-33 proposal for a permanent solution on Public Stock Holding (PSH) for food security purposes at the WTO, on 15 September 2021, which had co-sponsorship of 38 Members.
It was agreed that in the interim, until a permanent solution is reached, Members would exercise due restraint (commonly termed as ‘peace clause’) in raising disputes in respect of public stockholding programmes for food security purposes instituted before 7th December 2013, even if countries exceeded their permissible limits.

Another issue under discussion relates to additional disciplines on export restrictions on agricultural products.

The proponents on export restrictions are seeking outcome on two issues:

exemption of foodstuffs purchased for non-commercial humanitarian purposes by the World Food Programme (WFP) from the application of export restrictions, and
advance notification of export restrictive measures, including improving compliance with existing notification requirements.

Under the provisions of the relevant WTO rules, WTO Members can temporarily impose export prohibitions or restrictions to prevent or relieve critical shortages of foodstuffs or other products essential to the country.

With reference to contributions to WFP, India has been a significant contributor to the WFP over the years and has not imposed export restrictions for WFP procurement, at the same time extending support to neighbors with food supplies.
Blanket exemptions for the WFP is a concern for India in view of domestic food security.

Other areas of discussion in agriculture are issues relating to market access, special safeguard mechanism for developing countries to protect domestic agricultural producers against import surges and sudden price falls, through additional import duties, on the lines of a similar safeguard presently available to many developed and few developing countries.

WTO Fisheries Negotiations

India is keen to finalize the fisheries agreement in the upcoming MC-12 because irrational subsidies and overfishing by many countries are hurting Indian fishermen and their livelihood.
India strongly believes that it should not repeat the mistakes made during the Uruguay Round that allowed a few members unequal and trade-distorting entitlements in agriculture.
It unfairly constrained less developed members who did not have the capacity and resources to support their industry and farmers.

For sustainability, big subsidizers must take greater responsibility to reduce their subsidies and fishing capacities.

Any agreement must recognize that different countries are at various stages of development and that current fishing arrangements reflect their current economic capacities. Needs will change with time as countries develop.
Any agreement will have to provide for balancing current and future requirements to exploit fisheries in marine waters and the high seas.

E-Commerce

In 1998, the General Council (GC) of the WTO established the Work Programme on E-Commerce (WPEC), with an exploratory and non-negotiating mandate, to comprehensively examine all trade-related issues relating to global e-commerce, taking into account the economic, financial and development needs of developing countries.
Under the Joint Statement Initiative (JSI) on E-commerce, launched in 2017, 86 WTO Members are negotiating trade rules on issues such as electronic authentication, non-discriminatory treatment of digital products, free flow of cross-border data, data localization, permanent e-commerce moratorium, online consumer protection, personal data protection, access to source codes.
India believes negotiation on rules and disciplines in e-commerce would be premature given the highly asymmetrical nature of the existing global e-commerce space and lack of understanding on the implications of the multi-faceted dimensions of issues related to e-commerce.
Developing countries need to preserve flexibility to implement policies to ‘catch-up’ with the developed countries in the digital arena.
We first need to focus on improving domestic physical and digital infrastructure, creating supportive policy and regulatory framework and developing our digital capabilities
Accordingly, India has not joined the JSI on e-commerce as we believe that multilateral avenues are best-suited to achieve inclusive and development-oriented outcomes.
WTO members have agreed not to impose customs duties on electronic transmissions since 1998 and the moratorium has been periodically extended at successive Ministerial Conferences.

WTO Reforms

India believes that WTO reforms discussions must focus on strengthening its fundamental principles, preserving Special and Differential Treatment (S&DT) including consensus-based decision making, non-discrimination, special and differential treatment, at this juncture and should neither result in preserving inherited inequities nor should they worsen the imbalances.
Among the reform proposals, the most consequential is the US-EU-Japan trilateral initiative, announced at the MC 11. The US-EU-Japan trilateral initiative, immediately after the postponement of MC 12, on 30 Nov. 2021, came out with a joint statement intending to address concerns relating to non-market practices, existing enforcement tools and developing new rules, as required.
India led the initiative to present a developing country reform proposal (Developing countries reform paper “Strengthening the WTO to promote development and inclusivity” in Aug. 2019 which was co-sponsored by Bolivia, Cuba, Ecuador, Malawi, South Africa, Tunisia, Uganda, Zimbabwe and Oman.
The paper has been revised a number of times with the latest one submitted in Feb. 2022 to keep the reform discussion alive in the run-up to MC12.

WTO response to pandemic

Outcome on WTO’s response to the pandemic is one of the priority items for MC12 which includes TRIPS Waiver proposal.
In June 2021, the GC Chair initiated a facilitator led process with Ambassador David Walker of New Zealand as the facilitator.
He identified six verticals for work in this area – export restrictions; trade facilitation, regulatory coherence, co-operation and tariffs; role of services; transparency and monitoring; collaboration with other organizations; and framework to respond more effectively to future pandemics.
Regarding intellectual property, India seeks: (i) a recognition of the difficulties faced by developing countries and LDCs in utilizing TRIPS flexibilities to address the COVID-19 pandemic, and (ii) a reaffirmation of the TRIPS waiver decision under the responses’ declaration.

About WTO

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.
WTO is an international organization set up in 1995 by replacing the General Agreement on Trade and Tariffs (GATT) under the Marrakesh Agreement.
It is the only global international organization dealing with the international Trade between nations.
Its HQ is located in Geneva, Switzerland.
India is a founding member of the WTO since 1 January 1995 and a member of GATT since 8 July 1948.

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