TWN Info Service on WTO and Trade Issues
20 September 2021
Third World Network
www.twn.my

WTO DG says failure at MC12 not an option, urges a “Plan B”
Published in SUNS #9420 dated 20 September 2021

Washington DC, 17 Sep (D. Ravi Kanth) – The World Trade Organization (WTO) director-general Ms Ngozi Okonjo-Iweala apparently said at a virtual G33 trade ministerial meeting on 16 September that failure at the WTO’s 12th ministerial conference (MC12) is not an option, urging the ministers to settle for a “Plan B” type of agreement, said people familiar with the development.

As fears of a likely collapse of MC12, to be held in Geneva from 30 November, appear to be growing with each passing day due to lack of convergence on many issues, including on fisheries subsidies, the DG seems to be prepared for any outcome by hook or crook, said a G33 official, preferring anonymity.

Apparently, the DG pleaded with the G33 ministers that they should be flexible at arriving at any outcome at MC12 to ensure that the WTO remains relevant in the current turbulent COVID-19 pandemic and trade environment, the official said.

With the understanding that members are opposed to the hybrid (in-person and virtual) approach in conducting the ministerial conference, and with the knowledge that a virtual meeting will only enable trade ministers to merely make statements and not agree on any decision, the DG is now banking on in-person meetings with several conditions, said people who asked not to be quoted.

The underlying rationale for the in-person meeting is also that many ministers will not be able to attend the four-day meeting because of the worsening COVID-19 health and economic crises and the rising wave of “local sanitary conditions.”

Those absentee ministers will be made to virtually participate in the meeting, said people, suggesting that even though the meeting is not officially held in hybrid format, it is going to be held in that format.

Several members are genuinely concerned about the in-person meeting with umpteen limitations when many trade ministers will not be able to attend the meeting.

Members are also fearful of the possibility of “rigged” decisions being taken in meetings held in such difficult circumstances.

The only possibility that an in-person ministerial meeting may not take place at all is if the COVID-19 situation worsens in Switzerland and Europe, said people familiar with the ongoing development.

LETTER FROM DG, KAZAKHSTAN TRADE MINISTER & GC CHAIR

On 6 September, the WTO DG, Kazakhstan’s trade minister Mr Bakhyt Sultanov, and the GC chair, Ambassador Dacio Castillo from Honduras, wrote a letter to members saying that due to the shift of venue of MC12 from Nur Sultan, the capital of Kazakhstan, to Geneva, “in order to comply with local sanitary regulations (in Geneva) and to reduce as much as possible the risk of spreading infections during the conference, the size of the delegations will need to be strictly limited.”

Accordingly, the letter stated that “access to the MC12 venues will be granted to a maximum of four representatives per delegation, while meetings will be restricted to the Head of Delegation plus one accompanying person, or two delegates.”

“Additionally, the WTO secretariat will put in place a series of practical measures to ensure the safety of MC12 participants, such as temperature control of all attendees at the entrance of the premises, mandatory wearing of masks and hand disinfection, social distancing, systematic sanitization of all places.”

The letter, seen by SUNS, states further that “given the impossibility to foresee the evolution of the COVID-19 pandemic until the dates of MC12, we may be compelled to adapt the approach and format described above. Should this be the case, delegations will be informed immediately.”

It states: “Today, the multilateral trading system is confronted with unprecedented challenges, and thus we find ourselves at a crucial moment for global trade and multilateral cooperation that requires political will, constructive engagement and dialogue. We sincerely hope that positive outcomes of the Conference will help to restore the trust of the international community in the multilateral trading system.

“We strongly believe that no efforts should be spared to ensure that MC12 delivers concrete and meaningful outcomes.”

INFORMAL GC MEETING

Meanwhile, in a separate development, the General Council (GC) chair Ambassador Castillo convened an informal meeting on 16 September to discuss the outcome document that is normally issued at the end of a ministerial meeting.

The GC chair apparently said many members wanted an outcome document with two parts. The first part focuses on the current state of the multilateral trading system, particularly the pandemic, and the second part deals with the ministerial decisions.

However, due to the paucity of time, some members have suggested skipping discussions on the first part due to intense meetings in other areas. Still there is no clarity on the outcome document, said people, who asked not to be quoted.

At the informal GC meeting, the GC-appointed facilitator on the WTO’s response to the pandemic, Ambassador David Walker from New Zealand, reported on his consultations with members on 15 September as well as in the first week of September.

At the 15 September meeting, the facilitator said he discussed two issues such as the WTO’s collaboration with other intergovernmental organizations for working together to address the COVID-19 pandemic and a framework agreement to address future pandemics. However, he did not provide any details of his consultations.

Earlier this month, the facilitator had discussed the issue of export restrictions on which members presented conflicting views.