Tepid trade-offs: On the WTO 13th Ministerial Conference (MC13) in Abu Dhabi

The World Trade Organization continues to struggle to foster free and fair trade

The latest meeting of the World Trade Organization’s (WTO) apex decision-making body concluded late on Friday with precious (of great value because of being rare, expensive, or important) little progress on key issues that affect global trade, despite extending deliberations (considering or discussing something) by a day. To be clear, hopes for any significant (important or noticeable) outcomes from the 13th Ministerial Conference (MC13) in Abu Dhabi were not high to begin with. Yet, this was an important moment for the WTO to deliver on its mandate (to give official permission for something to happen) amid an increasingly fractious (easily upset or annoyed, and often complaining) environment for the very rules of trade it seeks to enforce. The intervening period has delivered significant shocks to the global trading architecture such as the ripple effects of conflicts (an active disagreement between people with opposing opinions or principles) in some parts of the world, the disruptions on critical shipment (goods transported together, or the act of transporting them) routes that are expected to linger for long, and recalibrations in supply chains to reduce dependence on single suppliers such as China. An increasing inward-looking tendency among nations has also catalysed isolationist, tariff-heavy trade policies that run adrift (without purpose; aimless) of the WTO’s primary purpose of open trade for the benefit of all. The Abu Dhabi declaration does refer to some of the challenges, such as the need to ensure open, inclusive and resilient supply chains, but there is little of substance (mportance, seriousness, or relationship to real facts) beyond lip service.

Divergences between the WTO’s 164 member-countries persisted on most issues carried forward from Geneva (MC12), including areas of particular interest to India, such as a permanent solution in agriculture for public stock holding to ensure domestic food security or subsidies to the fisheries sector. The WTO Director-General, Ngozi Okonjo-Iweala, has noted that the agriculture deliberations, in the works for over two decades now, have made some progress as there is finally a text to work with that the body will strive to clinch in future parleys. The exemption (special permission not to do or pay something) from customs duties for e-commerce, that India had sought an end to, citing the adverse (having a negative or harmful effect on something) impact on countries’ revenues, will now carry on for at least two more years. Commerce Minister Piyush Goyal has nuanced (made slightly different in appearance, meaning, sound, etc) this outcome stating that India is “not necessarily” fully opposed to them. Prospects for the resuscitation of WTO’s dispute resolution body, rendered defunct for four years, remain bleak, though the Geneva commitment (a promise or firm decision to do something) to revive the vital body by 2024 was reiterated (to say something again, once or several times). A key win for India at the MC13 was its successful efforts with South Africa to thwart an attempt that was led by China and backed by over 120 countries, to introduce an investment facilitation pact into the WTO framework. Going forward, India will have to redouble efforts to retain policy space for sensitive sectors, especially farms. The WTO itself must do much more to stay relevant in an increasingly polarised world. That members find it convenient to tout its failed biennial meetings as successes is a sad commentary (a spoken description of an event on the radio or television that is broadcast as the event happens, or the action of providing this description) on its waning efficacy.

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