Background
The Eleventh Ministerial Conference took place from the 10th to 13th December 2017 in Buenos Aires, Argentina. The conference was attended by participants from the World Trade Organizations (WTO) Members, international trade organizations such as the United Nation Conference on Trade and Development (UNCTAD), International Trade Centre (ITC), the World Bank, international civil society and media houses among others.
About WTO Ministerial Conferences
The topmost decision-making body of the WTO is the Ministerial Conference, which usually meets every two years. It brings together all members of the WTO, all of which are countries or customs unions. The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements. There have been eleven Ministerial Conferences from 1996 to 2017, usually every two years.
Past Ministerial Conferences and their Venues
Results of the Ministerial Conference
The Conference ended without a Ministerial Declaration. This was because the Ministers were unable to bridge the gap left by the negotiators in Geneva on all the issues under negotiations. However, a number of ministerial decisions were made in the following areas;
I. Ministerial Decision on Fisheries Subsidies – WT/MIN(17)/W/5
II. Work Program on Electronic Commerce – Ministerial Decision –WT/MIN(17)/W/6
III. TRIPS non-violation and situation complaints – Ministerial Decision – WT/MIN(17)/W/7
IV. Work Program on Small Economies – Ministerial Decision – WT/MIN(17)/W/2
V. The creation of the working party on accession for South Sudan.
At the closing, session Chair-Minister Malcorra, issued a Chair’s statement and Director-General Roberto Azevêdo delivered his closing speech.
Effect of a Ministerial Decision vis a vis a Ministerial Declaration
To understand the effects of both, means to draw a difference between the two. The underlying difference between them is in their binding nature. A ministerial decision is not binding among the member states as it lacks the mandatory authority of a Declaration. It simply “recognize … the need” for an action to be done. The simple recognition of the need for an action does not mandate that action; in a Ministerial Declaration, by contrast, Ministers agree that certain action shall be taken.” This observation significantly divides the nature of Declarations and Decisions.
Challenges
The Ministers were disappointed that no results were obtained on the substantive issues under the negotiations. These are in Agriculture, Non Agricultural Market Access (NAMA), Services, Trade-Related Aspects of Intellectual Property Rights (TRIPS), Development, Trade and Environment and WTO Rules. Under the Public Stock holding of food for food security purposes, there was a mandate to conclude a permanent solution by the 11th Ministerial Conference.
The reason for not reaching a declaration as cited by the Kenyan Principal Secretary is;
“…due to the dynamics that have taken place in international trade since the beginning of the Doha Round of Trade negotiations in December, 2001.The international trade dynamics and changes in the global political economy have made some members to review their positions on many issues under the negotiations making it difficult to advance the negotiations under the initial architecture that was agreed. Some members, especially those from developed economies, feel that the current negotiations under the architect agreed in Doha no longer serves their interests, while the developing and least developing country members insist that the promises made to them in Doha must be addressed to remove the current imbalance and distortions in international trade, which favor the developed countries.
Proposed Solutions
As earlier, Argentinian Round, some suggest that it is time to look for alternatives to the WTO. There are a number of solutions proposed in dealing with such situations. They include;
1. Plurilateral Trade Agreements.
A plurilateral treaty is a special type of multilateral treaty. It is a treaty between a limited number of states with a particular interest in the subject of the treaty. The primary difference between a plurilateral treaty and other multilateral treaties is that, the availability of reservations is more limited under a plurilateral treaty.
Such a treaty, although viable to the extent that it offers trade options on certain goods and services, is limited to those parameters agreed upon by such members. The WTO, on the other, hand provides a wide array of possible trading partners, already established trading legal framework and dispute resolution mechanisms.
2. Club of clubs approach
The variable geometry approach could be an option taken. In it, the WTO would operate as a “club of clubs” in which it would provide a home and operating framework for a number of plurilateral groupings. However, this too comes with its concerns. A major concern stems from the way the plurilateral agreements of the 1970s were dealt with in the Uruguay Round. Countries that had not played any role in crafting those agreements later were compelled to accept them under the Uruguay Round’s “single undertaking”. They may fear a similar consequence of accepting a variable geometry approach in the WTO.
In trying to address such concerns, a significantly tamer approach is proposed. All WTO members would be welcome at the negotiations, though not compelled to join. This approach presents the following challenges;
• It would seem like an invitation of mischief, when countries with no intention of participation are allowed to stymie or water down efforts to achieve deeper integration through their contributions.
• Further, to forswear any future “single undertaking” incorporation of these plurilaterals into broader WTO rules poses a serious strategic question. Is it better to tackle an issue such as investment rules in a plurilateral setting now if doing so precludes future chances at broader applicability? A second related question concerns linkages between issues in plurilateral agreements. If plurilaterals on investment and services were being negotiated in tandem, for example, could countries trade off concessions in one against the other? And could countries seek enforcement of those concessions through cross-issue retaliation?
• Within the realm of plurilateral considerations, there would be difficult choices to be made about how far subgroups could proceed under the WTO aegis. One consideration would have to be the inescapable competition with the existing proliferation of plurilaterals outside the WTO–bilateral and regional free trade agreements.
Conclusions
The persistent ill-health of the Doha trade talks and the growing nationalist sentiments around the world today pose serious risk to the global trading system and justifies an exploration of new and potentially radical remedies. Of the two discussed here, remaining in the WTO seems like the best option despite signals of it stalling. The variable geometry option of strong plurilateral agreements under the WTO seems the most promising. Such an approach has its own share of problems, but may be preferable to waiting and hoping that a consensus will finally spring up among the 153 nations of the WTO.
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Post date: Mon, Jun 11, 2018 |
Category: General |
By: Edwin Njoroge, |
Background
The Eleventh Ministerial Conference took place from the 10th to 13th December 2017 in Buenos Aires, Argentina. The conference was attended by participants from the World Trade Organizations (WTO) Members, international trade organizations such as the United Nation Conference on Trade and Development (UNCTAD), International Trade Centre (ITC), the World Bank, international civil society and media houses among others.
About WTO Ministerial Conferences
The topmost decision-making body of the WTO is the Ministerial Conference, which usually meets every two years. It brings together all members of the WTO, all of which are countries or customs unions. The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements. There have been eleven Ministerial Conferences from 1996 to 2017, usually every two years.
Past Ministerial Conferences and their Venues
Results of the Ministerial Conference
The Conference ended without a Ministerial Declaration. This was because the Ministers were unable to bridge the gap left by the negotiators in Geneva on all the issues under negotiations. However, a number of ministerial decisions were made in the following areas;
I. Ministerial Decision on Fisheries Subsidies – WT/MIN(17)/W/5
II. Work Program on Electronic Commerce – Ministerial Decision –WT/MIN(17)/W/6
III. TRIPS non-violation and situation complaints – Ministerial Decision – WT/MIN(17)/W/7
IV. Work Program on Small Economies – Ministerial Decision – WT/MIN(17)/W/2
V. The creation of the working party on accession for South Sudan.
At the closing, session Chair-Minister Malcorra, issued a Chair’s statement and Director-General Roberto Azevêdo delivered his closing speech.
Effect of a Ministerial Decision vis a vis a Ministerial Declaration
To understand the effects of both, means to draw a difference between the two. The underlying difference between them is in their binding nature. A ministerial decision is not binding among the member states as it lacks the mandatory authority of a Declaration. It simply “recognize … the need” for an action to be done. The simple recognition of the need for an action does not mandate that action; in a Ministerial Declaration, by contrast, Ministers agree that certain action shall be taken.” This observation significantly divides the nature of Declarations and Decisions.
Challenges
The Ministers were disappointed that no results were obtained on the substantive issues under the negotiations. These are in Agriculture, Non Agricultural Market Access (NAMA), Services, Trade-Related Aspects of Intellectual Property Rights (TRIPS), Development, Trade and Environment and WTO Rules. Under the Public Stock holding of food for food security purposes, there was a mandate to conclude a permanent solution by the 11th Ministerial Conference.
The reason for not reaching a declaration as cited by the Kenyan Principal Secretary is;
“…due to the dynamics that have taken place in international trade since the beginning of the Doha Round of Trade negotiations in December, 2001.The international trade dynamics and changes in the global political economy have made some members to review their positions on many issues under the negotiations making it difficult to advance the negotiations under the initial architecture that was agreed. Some members, especially those from developed economies, feel that the current negotiations under the architect agreed in Doha no longer serves their interests, while the developing and least developing country members insist that the promises made to them in Doha must be addressed to remove the current imbalance and distortions in international trade, which favor the developed countries.
Proposed Solutions
As earlier, Argentinian Round, some suggest that it is time to look for alternatives to the WTO. There are a number of solutions proposed in dealing with such situations. They include;
1. Plurilateral Trade Agreements.
A plurilateral treaty is a special type of multilateral treaty. It is a treaty between a limited number of states with a particular interest in the subject of the treaty. The primary difference between a plurilateral treaty and other multilateral treaties is that, the availability of reservations is more limited under a plurilateral treaty.
Such a treaty, although viable to the extent that it offers trade options on certain goods and services, is limited to those parameters agreed upon by such members. The WTO, on the other, hand provides a wide array of possible trading partners, already established trading legal framework and dispute resolution mechanisms.
2. Club of clubs approach
The variable geometry approach could be an option taken. In it, the WTO would operate as a “club of clubs” in which it would provide a home and operating framework for a number of plurilateral groupings. However, this too comes with its concerns. A major concern stems from the way the plurilateral agreements of the 1970s were dealt with in the Uruguay Round. Countries that had not played any role in crafting those agreements later were compelled to accept them under the Uruguay Round’s “single undertaking”. They may fear a similar consequence of accepting a variable geometry approach in the WTO.
In trying to address such concerns, a significantly tamer approach is proposed. All WTO members would be welcome at the negotiations, though not compelled to join. This approach presents the following challenges;
• It would seem like an invitation of mischief, when countries with no intention of participation are allowed to stymie or water down efforts to achieve deeper integration through their contributions.
• Further, to forswear any future “single undertaking” incorporation of these plurilaterals into broader WTO rules poses a serious strategic question. Is it better to tackle an issue such as investment rules in a plurilateral setting now if doing so precludes future chances at broader applicability? A second related question concerns linkages between issues in plurilateral agreements. If plurilaterals on investment and services were being negotiated in tandem, for example, could countries trade off concessions in one against the other? And could countries seek enforcement of those concessions through cross-issue retaliation?
• Within the realm of plurilateral considerations, there would be difficult choices to be made about how far subgroups could proceed under the WTO aegis. One consideration would have to be the inescapable competition with the existing proliferation of plurilaterals outside the WTO–bilateral and regional free trade agreements.
Conclusions
The persistent ill-health of the Doha trade talks and the growing nationalist sentiments around the world today pose serious risk to the global trading system and justifies an exploration of new and potentially radical remedies. Of the two discussed here, remaining in the WTO seems like the best option despite signals of it stalling. The variable geometry option of strong plurilateral agreements under the WTO seems the most promising. Such an approach has its own share of problems, but may be preferable to waiting and hoping that a consensus will finally spring up among the 153 nations of the WTO.
Case Adjournments is one of the key issues that contributes to case backlogs because it reduces the efficiency of courts. An adjournment in a legal setting involves pausing or temporally stopping ongoing proceedings to be continued at a later time, date, or location. It may also indicate the end of the day’s proceedings. Parties involved […]
Introduction In February 2023, the Kenyan government announced its intention to establish a framework that will enable Savings and Credit Cooperative Societies (SACCOs) to extend loans to each other. This inter-Sacco lending framework shall be set up by the Sacco Societies Regulatory Authority (SASRA) and was anticipated to be in effect from August 2023. This […]
While Kenya has long implemented the NHIF (National Hospital Insurance Fund) whose core mandate is to provide medical insurance coverage to all its members and their declared dependants and also to make medical care affordable, enrolment rates, particularly in the voluntary and informal sectors, remain low. Yet, NHIF is the most common type of health […]
Introduction According to the United Nations, Double Taxation Agreements (DTAs) are “bilateral agreements between two countries which allocate taxing rights over income between those two countries thereby preventing double taxation of income. The main objective of DTAs therefore, is to prevent and or eliminate avoidance and evasion of taxes on income and capital by both […]
Courts as Monopolies Access to justice is fundamental in any democratic society, ensuring individuals can pursue their legal rights and seek redress for grievances. However, when courts operate as monopolies, it can have implications for access to justice. Monopolies have exclusive control or dominance over a particular market or industry. Courts are monopolies because they […]