Twelfth WTO Ministerial Conference all set to begin from 12th June 2022 in Geneva
Twelfth WTO Ministerial
Conference all set to begin from 12th June 2022 in Geneva
Indian delegation led by Shri Piyush Goyal will ensure fair deal for the
country and the developing world
Agriculture, fisheries, WTO reforms, response to pandemic to be the key areas
of negotiations
India to pitch for fair, just and transparent discussions and outcome
The twelfth WTO
Ministerial Conference is all set to begin from 12th June 2022 in Geneva,
Switzerland after a gap of almost five years. The key areas of discussions and
negotiations this year’s conference include WTO’s response to the pandemic,
Fisheries subsidies negotiations, Agriculture issues including Public
Stockholding for Food security, WTO Reforms and Moratorium on Custom Duties on
Electronic Transmission.
Why is it in news?
A strong Indian
delegation at the Conference is being headed by Shri Piyush Goyal, Union
Minister for Commerce and Industry, Consumer Affairs, Food and Public
Distribution and Textiles. India has a vital stake in protecting the interests
of all stakeholders in the country as well as the interests of the developing
and poor nations that look up to the leadership of India at multilateral forums
including WTO.
Highlights
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 and has been engaging in the process of
discussions and negotiations in order to be able to preserve the rights under
the Agreement on Agriculture without undermining the existing Ministerial
mandates.
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 PSH for food security
purposes at the WTO, on 15 September 2021, which had co-sponsorship of 38
Members.
In the negotiations,
improvements are being sought by developing countries over the Ministerial
Decision adopted at the Ninth Ministerial Conference of the WTO in Bali in
December 2013 where Members agreed to negotiate a permanent solution on the
issue of public stockholding for food security purposes by the
11th Ministerial Conference of the WTO. 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.
Consequent to the firm stand taken by India at the WTO, this peace clause was
extended by a decision of the WTO General Council (GC) in November 2014 until a
permanent solution was agreed and adopted. Thus, it was ensured that the ‘peace
clause’ would be available in perpetuity. At the Nairobi Ministerial Conference
held in December 2015, WTO members agreed to engage constructively to negotiate
a permanent solution. India neither wants to link PSH issue with other
Agriculture issues nor a Work Programme as negotiating a permanent solution has
a standalone mandate at the WTO.
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: (i) exemption of foodstuffs purchased for non-commercial humanitarian
purposes by the World Food Programme (WFP) from the application of export
restrictions, and (ii) 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. India has concerns with
making notification requirements burdensome for developing country Members in
view of the sensitivities regarding shortages, price escalations and the
implications of providing advance notice of such measures on the effectiveness
of policies.
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 neighbours 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.
Fisheries are a common
endowment to humanity, a global public common. Therefore, the sharing of such
resources should be equitable and just. Any imbalance in the agreement would
bind us to current fishing arrangements, which may not meet everyone’s future
requirements. 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.
Countries like India
cannot be expected to sacrifice their future policy space because some members
provided considerable subsidies to overexploit fisheries resources and are able
to continue to engage in unsustainable fishing. India needs Special and
Differential Treatment to protect the livelihoods of poor fishers and address
food security concerns of a nation, have the necessary policy space for
developing the fisheries sector, and sufficient time for to put in place
systems to implement the disciplines under Over Capacity and Over Fishing,
Illegal, Unreported Unregulated and Over Fished. India believes that the
fisheries agreement has to be seen in the context of existing international
instruments and the laws of the sea. The sovereign rights of coastal States to
explore and manage the living resources within their maritime jurisdiction,
enshrined in international instruments, must be protected.
Protection of the
environment has been ingrained in the Indian ethos for ages and has been
repeatedly emphasized in various international forums. India is committed to
concluding the negotiations so long as it provides space for equitable growth
and freedom in developing fishing capacities for the future without locking
members into disadvantageous arrangements in perpetuity.
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. At MC11, the moratorium was extended for two years. In the GC
meeting held in December, 2019, Members agreed to maintain the current practice
upto MC 12. At MC12, many WTO members are seeking temporary extension of the
moratorium until MC13. India and South Africa have been making several joint
submissions highlighting the adverse impact of the moratorium on developing
countries and suggesting that a reconsideration of the moratorium is important
for developing countries to preserve policy space for their digital
advancement, to regulate imports and to generate revenue through customs
duties.
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. Prior to
this, in Oct. 2021, the European Union came up with a structure of a Working
Group it is proposing on WTO reforms.
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.
India introduced a
proposal in November 2021 wherein India took the lead to question the proposal
from the European Union and Brazil, both on the process and its objectives. It
did not favor an open-ended exercise on WTO reforms, without first agreeing on
the elements of the reform package. It proposed that the Members first need to
agree on the elements of the reform package, precise nature of the process to
be adopted to carry out the discussions, before the Ministers can agree to
green-light the WTO reform work. India believes that the reform process and its
outcomes should not alter, or in any manner affect, Members’ rights and
obligations under the WTO Agreements and agreed mandates and that the agreed
rules of procedure of the General Council shall apply to the review process.
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.
India is currently
engaged in deliberations with various members and groups to build a consensus
for a balanced outcome on all the aforesaid elements to address the concerns of
all members. India has concerns on additional ‘permanent’ disciplines in
the WTO agreements to respond to the pandemic. India does not want to conflate
the challenges of pandemic to areas like market access, reforms, export
restrictions, and transparency. India wants that the WTO response needs to
address supply side constraints for the WTO’s response to pandemic and outcomes
be credible.
Regarding intellectual
property, India seeks: (i) a recognition of the difficulties faced by
developing countries and LDCs in utilising TRIPS flexibilities to address the
COVID-19 pandemic, and (ii) a reaffirmation of the TRIPS waiver decision under
the responses’ declaration.
India is a founding
member of the WTO since 1 January 1995 and a member of GATT since 8 July 1948.
India believes in a transparent and inclusive multilateral trading system and
we are committed to work to strengthen the WTO. There is a need to preserve the
basic principles of the WTO, including, non-discrimination, consensus-based
decision making and special and differential treatment to the developing
countries.
Shri Rao Inderjit Singh to inaugurate “Exhibition on ESG - CSG Best Practices” by IICA as part of Iconic Week celebrations of Ministry of Corporate Affairs under Azadi ka Amrit Mahotsav tomorrow
Shri Rao Inderjit Singh to inaugurate “Exhibition on ESG -
CSG Best Practices” by IICA as part of Iconic Week celebrations of Ministry of
Corporate Affairs under Azadi ka Amrit Mahotsav tomorrow
As a part of the Azadi ka Amrit
Mahotsav’s (AKAM) Iconic Week celebrations of the Ministry of Corporate Affairs
(MCA), India Institute of Corporate Affairs (IICA) will be organising various
activities to commemorate the 75 years of India’s Independence, the glorious
history of its citizens, its diversified cultures and the many key
achievements.
Why is it in news?
Shri Rao Inderjit Singh, the
Minister of State for Corporate Affairs will be the Chief Guest and Shri Rajesh
Verma, Secretary, Ministry of Corporate Affairs (MCA) will preside over the celebrations.
As part of the AKAM celebrations,
IICA is organising an “Exhibition on ESG - CSG Best Practices” in collaboration
with NITI Aayog, Department of Public Enterprises (DPE) and UNICEF wherein
renowned organisations Pan-India with impactful CSR are participating to
showcase their Best Practices. The exhibition would present a unique
opportunity for various stakeholders of the ESG / CSR ecosystem to be abreast
of the latest developments happening in these domains. The case studies will
also be published in the book/compendium for disseminating to multiple
stakeholders.
Highlights
IICA is also organising three Panel
Discussions on:
·
Impactful CSR towards strengthening
ESG
·
Financial Inclusion and Literacy for
Women
·
Corporate Governance: Evolving
Vision for India
Eminent Speakers from
Industry/Corporate and Education will be speaking during the panel discussion.
About IICA
The India Institute of Corporate
Affairs (IICA) working under the aegis of Ministry of Corporate Affairs has
been established as a think-tank to advance thought leadership in the Indian
business environment through research, capacity building and advocacy efforts.
The Institution also serves to provide a holistic strategic approach to all
issues relating to corporate affairs impacting their governance, regulatory,
policy, structural issues keeping the current trends affecting the business
ecosystem.
PM shares ‘8 Years of Reforms’ for widespread prosperity and encouraging entrepreneurship
PM shares ‘8 Years of
Reforms’ for widespread prosperity and encouraging entrepreneurship
The
Prime Minister, Shri Narendra Modi has shared details of reforms during
the last 8 years in the field of ‘Ease of Doing Business’ and for spreading
widespread prosperity and encouraging entrepreneurship. He shared a MyGov
tweet thread and articles from his website and Namo App.
The
Prime Minster tweeted:
“Guided
by the principle of ‘Reform, Perform and Transform’ the Government of India has
brought in several reforms which have furthered ‘Ease of Doing Business.’ At
the same time, many outdated laws which slowed growth have been removed. #8YearsOfReforms”
“Extensive
reforms for widespread prosperity and encouraging entrepreneurship.
#8YearsOfReforms”
PM shares ‘8 Years of Reforms’ for widespread prosperity and encouraging entrepreneurship
PM shares ‘8 Years of
Reforms’ for widespread prosperity and encouraging entrepreneurship
The
Prime Minister, Shri Narendra Modi has shared details of reforms during
the last 8 years in the field of ‘Ease of Doing Business’ and for spreading
widespread prosperity and encouraging entrepreneurship. He shared a MyGov
tweet thread and articles from his website and Namo App.
The
Prime Minster tweeted:
“Guided
by the principle of ‘Reform, Perform and Transform’ the Government of India has
brought in several reforms which have furthered ‘Ease of Doing Business.’ At
the same time, many outdated laws which slowed growth have been removed. #8YearsOfReforms”
“Extensive
reforms for widespread prosperity and encouraging entrepreneurship.
#8YearsOfReforms”