“The incorporation of plurilateral outcomes into the WTO framework should be based on consensus and not impair the existing rights of non parties or cast additional obligations on them. Therefore, I believe necessary guardrails have to be in place before we discuss this subject further,” commerce and industry minister Piyush Goyal said in a video statement issued in the wee hours of Saturday.
Saturday is the third day of the ongoing 14th ministerial conference of the WTO in Yaounde, Cameroon.
“To show that the WTO remains central to global trade, at the same time, we must focus on trade rather than taking up newer issues and trying to expand the ambit of the WTO to subjects that are not a part of the WTO,” Goyal said, adding that “WTO is relevant, and WTO will continue to be very important for global trade and to promote multilateral rules of trade”.
This is on contrast to the US’ claims which said that the WTO needs to change if it intends to have any relevance.
Goyal’s statement assumes significance in the wake of around 120 WTO members pushing to include a China-led proposal to include an Investment Facilitation for Development Agreement (IFDA) in the WTO through a plurilateral route under Annex 4. New Delhi is opposed to this as a 2004 WTO decision bars negotiations on investment facilitation.
“To show that the WTO remains central to global trade, at the same time, we must focus on trade rather than taking up newer issues and trying to expand the ambit of the WTO to subjects that are not a part of the WTO,” he said.Both the US and EU, on separate issues, have suggested interim plurilateral or multilateral basis, including through its application on an interim basis”.
This interim arrangement is in line with the US’ recent proposal on WTO reform where is has suggested “interim plurilaterals”- voluntary and temporary agreements among a subset of members to move forward on specific issues without needing full consensus.
“The past mandates should be delivered on priority a dysfunctional dispute settlement system has deprived members from effective redressal we must restore the automatic and binding dispute settlement mechanism,” Goyal said.
Goyal said the necessary reform of the WTO should be carried out through a transparent, inclusive and member driven process, keeping development at its core while upholding the foundational principles and objectives of the organization,
mainly non discrimination, consensus based decision making and equity. The special and differentiatial treatment (S&DT) should be precise, effective and operational, he reiterated.
Farm, Fish
Highlighting that agriculture is critical to the livelihood of millions, particularly in the developing and less developed countries, Goyal said: “For the global South, a permanent solution on public stock holding for food security purposes, special safeguard mechanism and cotton are long pending mandated issues. We must deliver them on priority”.
The minister said that India remains committed to negotiating a fair and balanced, comprehensive fisheries subsidy agreement, and it has to take care of current and future fishing needs protect the livelihoods of small and marginal fishermen with appropriate and effective S&DT.
Ecommerce, reforms
In in the absence of a common understanding among members on the scope of the moratorium on customs duties, on electric electronic transmissions, and given its potentially significant implications, Goyal said “the continued extension of this moratorium warrants careful reconsideration”.
The multilateral trading system must ensure that innovation development and opportunity are shared equitably among members, particularly when we engage constructively, he said.
“We must all strive to reform the WTO so that it remains responsive,” the minister said, adding that this is key so that it performs in delivering on development, equity and inclusiveness in opportunity for trade and transform to serve the interests of the poor, vulnerable and marginalized sections of society anchored in consensus and multilateralism.