WTO’S MC12 OUTCOMES

This week the WTO concluded its 12^th Ministerial Conference (MC12) in Geneva with significant deliverables. Members finalized or advanced work on the following key themes:

• WTO RESPONSE TO EMERGENCIES. Members agreed on a package of decisions and declarations regarding the WTO’s response to emergencies consisting of (i)emergency response to food insecurity (document WT/MIN(22)/W/17/Rev.1, available here); (ii) COVID-19 Pandemic and preparedness for future pandemics (document WT/MIN(22)/W/13, available here); (iii) World Food Program (WFP) food purchase exemptions from export prohibitions/restrictions (document WT/MIN(22)/W/18, available here); and (iv) a waiver to intellectual property provisions for breach of patent for the production and supply of CODIV-19 vaccines (see further details below). As a general rule, all such emergency measures shall minimize trade distortions and be transparent, temporary and targeted.
• TRIPS WAIVER FOR COVID VACCINES. Members have agreed on a Ministerial Decision on the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement (document WT/MIN(22)/W/15/Rev.2, available here), which allow developing countries to use the ingredients and processes of a patent required for the production and supply of COVID-19 vaccines without the consent of the patent holder, to the extent necessary to address the COVID-19 pandemic. The Decision is valid for 5 years and such measures should be notified to the Council for TRIPS. Developing country Members with existing capacity to manufacture COVID-19 vaccines are encouraged to make a binding commitment not to benefit from such Decision. Within the next 6 months Members shall decide on the extension of this Decision to cover the production and supply of COVID-19 diagnostics and therapeutics.
• WORK ON TRIPS NON-VIOLATION AND SITUATION COMPLAINTS. Members have agreed to continue the examination of the scope and modalities for non-violation and situation complaints under the TRIPS Agreement and make recommendations to the 13^th Ministerial Conference (MC13); and not to initiate such complaints under the TRIPS Agreement until MC13 (document WT/MIN(21)/W/4, available here). These complaints refer to measures – whether or not conflicting with the GATT – or situations that have the effect to nullify or impair any benefit accruing to Members under the GATT.
• E-COMMERCE MORATORIUM EXTENDED FOR 2 YEARS. Members have agreed to reinvigorate the work under the Work Program on Electronic Commerce by intensifying discussions and holding periodic reviews based on relevant reports (document WT/MIN(22)/W/23, available here). The current practice of not imposing customs duties on electronic transmissions is maintained at least until MC13 or 31 March 2024 should MC13 be delayed beyond that date.
• FISHERIES SUBSIDIES AGREEMENT. Members have finalized negotiations on the Agreement on Fisheries Subsidies (document WT/MIN(22)/W/22, available here). The text, which had been in the works since 2001, includes provisions prohibiting subsidies to operators engaged in (i) illegal or unreported fishing; (ii) fishing overfished stock; and (iii) fishing outside the jurisdiction of a coastal Member. Members also agreed on transparency provisions and exceptions for least developed countries (LDCs).
• SPS MINISTERIAL DECLARATION ON RESPONSE TO MODERN CHALLENGES. Members agreed on a Ministerial Declaration (documents WT/MIN(22)/W/3/Rev.3, available here) specifically regarding the role of the SPS Agreement in the face of modern challenges, such as expanding global population, increased pace of innovation, growing importance of sustainable agricultural practices, and others. Members instructed the SPS Committee to further enhance the implementation of the Agreement to better manage issues related to international trade in food, animals, and plants by undertaking a future work program.

On WTO Reform, Members have officially committed to work towards necessary reform of the organization, charging the General Council and its subsidiary bodies to conduct the work, review progress, and consider decisions to be submitted to the next Ministerial Conference. Regarding dispute settlement system, Members  recognized the importance and urgency of addressing current challenges and concerns, including those relating to the Appellate Body, and committed to conduct discussions with the goal to have a well-functioning dispute settlement system accessible to all Members by 2024 (WT/MIN(22)/W/16/Rev.1, available here).

On the lack of agreement on agriculture topics (including public stockholding for food security, domestic support, cotton, and market access), Director-General Ngozi Okonjo-Iweala noted that “members found a renewed sense of purpose: they are determined to keep at it on the basis of existing mandates, with a view to reaching positive outcomes at MC13” (full remarks available here).

Our team has been closely monitoring all topics addressed during MC12 and are available for any clarifications needed in that regard.