The governments of the United States, China and the European Union welcomed the package of agreements reached at the XII Ministerial Summit of the World Trade Organization (WTO), held in Geneva, China.
“Today, WTO members took a positive step to protect our fish stocks for future generations by agreeing to the first multilateral trade agreement with the environment at its core,” said Katharine Tai, US Trade Representative.
The 164 members of the WTO achieved a significant multilateral agreement that contributed to the protection of the oceans. The agreement includes a strong ban on subsidies that contribute to illegal, unreported and unregulated (IUU) fishing with unprecedented transparency provisions. Second, it includes an outright ban on subsidies to unregulated high seas fishing.
“This is a historic ban for the most vulnerable areas that lack an established and coordinated fisheries management regime. The provision on overexploited stocks will bring sustainability rules for subsidies regarding the most vulnerable stocks in the first phase of the agreement,” the European Commission said in a statement.
Ministers also agreed on a declaration on the WTO response to the pandemic and preparedness for future pandemics that affirms their commitment to transparency, timely and full exchange of information and restraint in the imposition of export restrictions.
In response to the exceptional circumstances of the Covid-19 pandemic and to address requests from developing countries, ministers agreed to a waiver of certain procedural obligations under the Agreement on Intellectual Property Rights (TRIPS) that allow the manufacture and rapid export of vaccines against Covid-19 without the consent of the patent owner.
At the same time, the agreement maintains a working intellectual property framework with incentives for investment, research and technology transfer.
According to the European Commission, this environment is essential for the development of new vaccines and drugs and should contribute to strengthening the production capacity of African countries.
The ministers committed to carrying out a major reform of the WTO, examining all aspects of its activities. This should strengthen its ability to be a credible forum for negotiations and to monitor developments in world trade policy.
Crucially, there is a commitment to re-establish a fully functioning dispute settlement system no later than 2024.
“At a time of global turmoil and a difficult time when the multilateral trading system is facing serious challenges, the success of the Ministerial Summit marked a crucial and important victory for multilateralism, fully demonstrated the solidarity and cooperation of the members of the WTO and its determination to overcome difficulties together,” China’s Ministry of Commerce said in a statement.
In addition, the WTO extended the moratorium on customs duties on electronic transmissions (the “electronic commerce moratorium”).
Katharine Tai stressed that the agreement, the result of the WTO summit, will reduce trade costs and provide opportunities for small and medium-sized enterprises.
Main agreements reached:
- Prohibition of subsidies that contribute to illegal, unreported and unregulated fishing.
- Absolute prohibition of subsidies to unregulated high seas fishing.
- Commitment to transparency and moderation in the imposition of export restrictions.
- Certain rapid manufacturing and export of Covid-19 vaccines are permitted without the consent of the patent owner.
- A functioning intellectual property framework is maintained with incentives for research and technology transfer.
- Commitment to restore a dispute settlement system by 2024.
- Extension of the moratorium on customs duties on electronic transmissions.
- Commitment to avoid unjustified restrictions on food exports.