Monitoring to Respond Ministerial Conference 13th WTO
Every two years the World Trade Organization (WTO) holds a major event called the Ministerial Conference. This meeting is very important because it discusses issues related to trade and investment facilitation in WTO member countries. Apart from that, the issues that will be discussed are also very influential on the lives of the world community. There are now 164 WTO member countries consisting of developed, developing and least developed countries. Including Indonesia which was involved in the 13th WTO Ministerial Conference (KTM) meeting. The 13th KTM will be held on 26-29 February 2024 in Abu Dhabi, United Arab Emirates.
Various Issues Discussed in the MC 13th WTO
In connection with the issues that will be discussed in the 13th WTO KTM, including: 1). WTO reform; 2). Agriculture; 3). Fisheries Subsidies; 4). TRIPS Waiver; 5). Issues in the Joint Statement Initiative such as ecommerce, investment facilitation (IFD) include discussing critical mineral trade.
From the several issues above, in fact all issues are very crucial and important to be monitored by all elements of society. For example, the issue of fisheries subsidies, which was discussed was related to “whether or not it is still permissible” to provide subsidies to small fishermen in developing and less developed countries, including Indonesia. Because, the WTO will make rules to limit subsidies for developing countries without clear exceptions. So, the impact of subsidies that have been given to small fishermen has the potential for restrictions based on WTO rules. If so, it’s dangerous and detrimental, right? Especially for small fishermen who have been dependent on subsidies in the fisheries sector, for example fuel oil (BBM).
Another issue is related to agriculture which is still stagnant. In fact, this agricultural issue has been declared and discussed since 2001 in the Doha Development Agenda (DDA) in Qatar. However, this issue is still very much discussed in each round. There are 3 crucial issues in discussing agricultural negotiations at the WTO, namely first, domestic subsidies (domestic support); second, export restrictions; third, national food reserves (public stockholding). Where these three crucial issues are being pushed by developing and less developed countries which are fighting for the provision of agricultural subsidies and national food reserves to be maintained.
On public health issues, the expansion of the TRIPS Waiver coverage during the Covid-19 pandemic was discussed. The expansion of the TRIPS waiver is not only during the Covid-19 pandemic, but also related to diagnostics and therapy. Including so that access and transfer of technology from developed countries to developing countries can be carried out in the face of the pandemic. So that developing countries are not only consumers but also vaccine producers. However, this issue is still in the process of being discussed, including the issue of expanding the scope of the TRIPS Waiver.
Apart from that, the issue of WTO reform (WTO Reform) will also be discussed in the 13th WTO KTM. Because this is an important issue that has quite strong discussion. What was discussed included the problems of dispute resolution at the WTO Dispute Settlement Body (DSB). Currently there are not enough WTO appeals judges and are not proposed by the United States, making dispute resolution through the appeals level unable to be processed. It is still possible to accept cases at the appeal level, but they cannot be examined and decided due to a shortage of appeal panel judges.
The development will discuss the issue of exit strategy regarding the technical mechanism for resolving WTO disputes, where disputed cases can still be examined and decided even if in the future there is a problem of a shortage of judges. Including discussing the technicalities of dispute resolution times at the WTO.
In the MC 13th, the WTO will discuss the issue of e-commerce, where one of the discussions is related to the lifting of the e-commerce moratorium. Because so far content from digital companies (Big-Tech) has not been taxed, even though many consumers are in developing and less developed countries. Because there is still an extension of the e-commerce moratorium until the MC 13th of the WTO, it still closes the opportunity for developing countries to collect taxes from digital companies in their country’s operational areas. Developed countries still want to continue the e-commerce moratorium. To avoid digital taxes.
What is no less important to monitor is the discussion of investment facilitation for development (IFD). Because the discussion concerns the commitment of WTO member countries in providing the red carpet for foreign investment. Indonesia is one of the countries that supports this discussion initiative regarding investment facilitation because there are regulations for opening up foreign investment through the omnibus law instrument. Including technical matters in the administration of investment receipts via online single submission (OSS). This has great potential for investment liberalization in Indonesia in various sectors. Especially when Indonesia promoted the omnibus law through discussing the IFD at the WTO. Under the pretext that Indonesia wants to attract investment from other countries by rolling out the red carpet as widely as possible without paying attention to the ecological, social and economic impacts in the future.
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Notes:
This is a series of articles updating and monitoring the 13th WTO Ministerial Conference in Abu Dhabi, UAE. Several issues will be discussed in detail in different articles. To get the latest updates, you can visit the website www.igj.or.id. We will publish articles related to trade and investment, especially the impact of WTO policies on the lives of the wider community.
Writer:
Rahmat Maulana Sidik
Executive Director, Indonesia for Global Justice (IGJ)
Office Address:
Jl. Rengas Besar No. 35C, Jatipadang, Pasar Minggu, South Jakarta, DKI Jakarta
Website: www.igj.or.id
Email: Rahmat.maulana@igj.or.id