In a first major agreement in nine years, the series of trade deals include pledges on food security, balanced outcome fisheries subsidies, and response to pandemics – all issues important to developing countries.
The 164 member countries of the World Trade Organization (WTO) finally sealed a package of deals in the wee hours on Friday in Geneva with India leading the course. The negotiations at the 12th ministerial conference of the WTO were ground out over days of round-the-clock talks. Ministers from more than 100 countries convened at the global trade watchdog’s headquarters in Geneva this week for the first time in more than four years to agree new trade rules, a feat many thought unlikely in an era of high geopolitical tensions.
Note: The body’s 164 members must all agree for new rules to pass, meaning that one member alone can block deals.
In a first major agreement in nine years, the series of trade deals include pledges on food security, balanced outcome fisheries subsidies, and response to pandemic – all issues important to developing countries.
A key decision related to patent waiver on Covid-19 vaccines is also expected soon, with the US yet to officially seal it.
The deal survived last minute hiccups on Thursday night that threatened to derail an outcome on fisheries and TRIPS waiver.
The deal that tested commerce and industry minister Piyush Goyal’s negotiation skills saw several trade-offs between developed and developing countries during the two nights of marathon talks, spilling past the Thursday afternoon deadline.
“All agreements fully agreed and were unanimously signed. Decision on temporary patent (TRIPS) waiver is expected any time soon. We are just waiting for the US approval on it,” said an official source in Geneva.
India defended its right to extend subsidies to its fishermen, with contentious clauses removed from the text at the last minute. In turn, India agreed to an 18-month extension of the moratorium on customs duty on electronic imports that, it argues, favours rich nations.
A formal announcement on all these issues is likely anytime.
According to the people familiar with the matter, for the first time, subsides on overfishing, deep sea fishing, and illegal, unreported and unregulated (IUU) fishing have been addressed through the proposed pact.
“On India’s instance sovereign sights on EEZ (exclusive economic zones) have been firmly established. It is a really big achievement,” sources said, adding principal stakeholders who have benefited from these “historic decisions” taken by the 12th Ministerial Conference of the WTO are fishermen, farmers, food security, multilateralism, and trade and business, particularly digital economy and MSMEs.
The patents waiver and fisheries deal nearly fell through with last minute hurdles and objections by a group of countries. While the UK kept the patents waiver deal on hold for five hours, waiting for an approval from its capital, the US and China took a few more hours to resolve the eligibility issue under the pact. The fisheries agreement nearly slipped through after the African, Caribbean, and Pacific states (ACP) demanded a stronger deal, seeking re-inclusion of the removed portions that mandated curbs on subsidies contributing to overfishing and overcapcacity.
India’s key demand for a permanent solution on public stockholding of foodgrains will now be taken up only in the next ministerial meeting.
The deal on patent waiver on covid-19 vaccines will allow India and other eligible developing countries to manufacture and export vaccines without seeking permission from the original maker and also export that to other needy countries for a period of five years. New Delhi believes it will help its companies set up more manufacturing plants in several countries.
While it will save lives in some of the poorest nations, it could also help Indian companies set up more manufacturing plants in several countries.
According to people aware of the developments, as talks broke down on Wednesday, India took up the facilitator’s role and reached out to several countries, including the US and South Africa, to work out deliverables. Goyal held a slew of bilateral and small group meetings to try and get all countries on board just when the talks looked deadlocked.
According to the revised draft on fisheries text, the two contentious clauses that proposed a ban on overfishing subsidies within seven years have been struck off. India was seeking a transition period of 25 years instead of seven years to withdraw such support. The talks took place against the backdrop of several Indian fishermen travelling to Geneva and holding protests.
The current deal will only cover the elimination of harmful subsidies to stop illegal, unreported and unregulated fishing activities.
In the final leg, India clearly outlined that it would agree to extend the moratorium on customs duty on digital imports if the “ultimate package of MC12″ favoured the interest of India and developing nations.
The agreement says that the current moratorium on customs duty on digital imports will continue till 31 December 2023. So far, the moratorium has been extended every two years since 1998, preventing countries from imposing any tariffs on digital or electronic imports or transmissions.
However, India has limited the extension to only one-and-a-half years this time. “Should the ministerial conference 13 be delayed beyond 31 March 2024, the moratorium will expire on that date unless ministers or the general council take a decision to extend,” read the final text reviewed by Mint.
In agriculture, India has agreed to do away with export restrictions on procurement by the UN World Food Programme on the condition that it will have the flexibility to restrict it if there’s a domestic food security need. India’s other demand for allowing exports from its public stockholdings to countries in need on a government-to-government basis will be discussed along with other agriculture issues in the next ministerial conference.
The last time the WTO took a major trade decision was back in 2013, when it agreed to India’s demand for a ‘peace clause’ on the contentious issue of procurement of public stockholdings.
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