The WTO’s Ministerial Conference (MC)- UPSC Current Affairs 

Context

The WTO's 12th Ministerial Conference (MC12) took place from 12 to 17 June 2022 at WTO headquarters in Geneva. The Conference was co-hosted by Kazakhstan. It was originally scheduled in June 2020, but the conference was postponed due to the COVID-19 pandemic. 

About the Conference

The Ministerial Conference (MC) is at the very top of WTO’s organisational chart. It meets once every two years. This year’s conference (MC12) took place in Geneva, Switzerland.

• Unlike other organisations, such as the IMF or World Bank, WTO does not delegate power to a board of directors or an organisational chief. 
• All decisions at the WTO are made collectively and through consensus among member countries at varied councils and committees. 

Major Issues discussed in MC12

• Food grains export prohibitions: Countries including India are banning export of food grains such as wheat. There are apprehensions that such measures will further worsen the food crisis in poor countries.
• Subsidies for Fishery: Many countries are providing subsidies for overfishing and unsustainable fishing industries. India vouched for putting limits on such subsidies.  
• E-commerce: Unlike physical trade of goods and services, e-commerce buying and selling has no mechanism of imposing custom duties. Due to the digital divide, this unregulated trade works in favour of developed countries and causes huge losses to underdeveloped and developing countries. 
• Patent Relaxations: COVID19 Pandemic affected everyone across the globe. However, due to scientific advancements and availability of financial resources, developed countries were able to find out vaccines earlier than poorer countries. Now, since these medical inventions are protected under patent laws, LDC and developing countries are not able to reproduce them causing a huge impact on innocent populations.  

Key Takeaways from MC12

Agriculture

• Negotiators agreed that member countries would not impose export prohibitions or restrictions on foodstuffs purchased for humanitarian purposes of the WFP. However, member countries can adopt measures for ensuring domestic food security.
• The central premise of the agreements was to ensure availability, accessibility and affordability of food to those in need, especially in humanitarian emergencies. 
• It instituted a programme to come up with measures to help LDCs (least developed countries) and NFIDCs (Net Food Importing Developing Countries) enhance their domestic food security and bolster agricultural production.

Fisheries

• There would be no limitation on subsidies granted or maintained by developing or least developed countries for fishing within their exclusive economic zones (EEZ).
• India successfully managed to carve out an agreement on eliminating subsidies to those engaged in illegal, unreported and unregulated fishing leading to overfishing.
• Overfishing refers to exploiting fishes at a pace faster than they could replenish themselves.
• Declining fish stocks threaten to worsen poverty and endanger communities that rely on aquatic creatures for their livelihood and food security.

Electronic Transmission (ET)

• Member countries agreed to extend the current moratorium on not imposing customs duties on electronic transmission (ET) until MC13 scheduled to take place in December 2023. 
• Majority of the countries which includes the US, the UK, Australia, China and Japan among others, had sought an extension of the moratorium, with India and South Africa being in opposition.
• Broadly, ETs consist of online deliveries such as music, e books, films, software and video games. They differ from other cross border e­commerce since they are ordered online but not delivered physically.
• The data from the UN Conference on Trade and Development submitted that extending duty free market access due to the moratorium resulted in a loss of $10 billion per annum globally, 95% of which was borne by developing countries. 
• Developing countries are at a disadvantaged position due to lack of digital advancements.

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Patent Relaxations

• Member countries agreed on authorising the use of the subject matter of a patent for producing COVID­19 vaccines by a member country, without the consent of the rights holder. Further, it asks member countries to waive requirements, including export restrictions, set forth by WTO regulations to supply domestic markets and member countries with any number of vaccines. 
• Several LDCs have suffered in their efforts to combat the now nearly three-year-old pandemic, owing to factors such as a stressed balance of payments situation, different levels of development, financial capabilities and varying degrees of import dependence on those products.
• Within the next six months, members are expected to decide on increasing the scope of the agreement to cover the production and supply of COVID­19 diagnostics and therapeutics as well.

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