Appointment of appellate body members, reforms to be discussed at WTO meet on May 13-14

Impasse over appointment of members of WTO's dispute resolution appellate body, new matters like e-commerce and reforms in the global trade body would be discussed in a ministerial meeting of 22 member countries being hosted by India on May 13-14 here. The meeting will be attended by six least developed countries and 16 developing countries, including China, Brazil, Saudi Arabia, South Africa, Argentina, Bangladesh, Malaysia, and Nigeria, according to a commerce ministry statement.

The Director General of the World Trade Organization (WTO) Roberto Azevedo would also participate in the meeting. The meeting is being held at a time when the multilateral rule-based trading system is facing serious and grave challenges, the statement said.

"In the recent past, there have been increasing unilateral measures and counter measures by members, deadlock in key areas of negotiations and the impasse in the appellate body, which threaten the very existence of dispute settlement mechanism of the WTO and impacts the position of the WTO as an effective multilateral organisation," it added. The current situation has given rise to demands from various quarters to reform the WTO, the ministry said.

Briefing reporters about the meeting, Commerce Secretary Anup Wadhawan said the participants would discuss all issues which would ensure that WTO remains a functional and effective body. "The discussions will be around resolving appointment of appellate body members, taking forward the agenda which is agreed and the new proposals which are somewhat alarming for developing countries such as this whole issue of special and differential treatment," he said.

The delay in appointment of members in the appellate body of the WTO's dispute settlement mechanism would hamper its functioning. The US has blocked the appointment of these members. The minimum quorum (3) for functioning of this body will end on December 10, after which it will become dysfunctional. The meeting also assumes significance as countries like the US and China are raising import duties against each other's products, creating a trade war like situation and posing a threat to global commerce.

The secretary said all the countries are concerned about this issue as "unilateralism is very very widespread" in the world currently. When asked whether it is the right time to hold such a meeting in the midst of the ongoing general elections, he said this is an opportune time in view of the series of global meetings such as the G20 meet in June.

Developed countries like the US want WTO members to start discussing new issues like e-commerce. However, India is of the view that formal discussions should begin only after consensus is built on them. When asked about the e-commerce matter, the secretary said that WTO members should prematurely not take up issues around which there is no consensus and which are still fully not understood regarding their scope.

Speaking at the briefing, India's Ambassador to the WTO J S Deepak said the aim of the meeting is to develop a common position on some important issues like special and differential treatment (S&DT) to developing countries. A joint statement is likely to be issued after the two-day meeting.

Ministers from Bangladesh, Central African Republic and South Africa have confirmed their participation. Vice ministers, senior officials and ambassadors will be representing other countries. The meeting will also provide an opportunity to developing and least developed countries to build consensus on how to move forward on the WTO reforms, while preserving the fundamentals of the multilateral trading system enshrined in the WTO.

The meet also assumes significance as several countries are raising questions over the relevance of the Geneva-based global trade body. Many countries are also taking protectionist measures, impacting global trade. As part of reforms at the WTO, the US wants the formulation of some guidelines that countries with high economic growth are prevented from taking benefits of S&DT, which is meant for developing and poor nations.

The S&DT allows developing countries to enjoy certain benefits including taking longer time periods for implementing agreements and binding commitments, and measures to increase trading opportunities for them. Currently, any WTO member can designate itself as a developing country and avail these benefits.

The US has submitted its suggestions to the WTO which state that self-declaration puts the WTO on a path to failed negotiations as well as institutional irrelevance. India is of the view that the matter needs to be negotiated comprehensively in the WTO and a consensus-based decision needs to be taken on S&DT.