World Trade Organisation (WTO) - 2 | Economics Optional Notes for UPSC PDF Download

Council for Trade in Goods (Goods Council)

• The General Agreement on Tariffs and Trade (GATT) is concerned with the regulation of international trade in goods.
• Oversight and management of the GATT agreement fall under the purview of the Council for Trade in Goods (Goods Council), a body composed of representatives from all member countries of the World Trade Organization (WTO).
• The Goods Council is further divided into committees, each dedicated to specific subjects.
  These committees include: 
  a. Agriculture
  b. Market access
  c. Sanitary and Phytosanitary Measures (related to the control of plant diseases, especially in agricultural crops)
  d. Technical Barriers to Trade
  e. Subsidies and Countervailing Measures
  f. Rule of Origin
  g. Anti-Dumping Measures
  h. Import Licensing
  i. Trade-related Investment Measures
  j. Safeguards
  k. Trade Facilitation
  l. Customs Valuation
• It's important to note that each of these committees consists of representatives from all member countries, ensuring broad and inclusive participation in the regulatory and oversight functions related to international trade in goods.

Council for Trade in Services (Services Council)

• Operating under the guidance of the General Council, the Council for Trade in Services plays a crucial role in facilitating the implementation of the General Agreement on Trade in Services (GATS) and advancing its objectives.
• The Council is open to participation by all World Trade Organization (WTO) members and has the authority to establish subsidiary bodies as needed to address specific issues.
• Presently, the Council oversees the work of four such subsidiary bodies, including:
  a. The Committee on Trade in Financial Services: This body engages in discussions concerning trade in financial services, formulating proposals or recommendations for consideration by the Council.
  b. The Committee on Specific Commitments.
  c. The Working Party on Domestic Regulation.
  d. The Working Party on GATS Rules.
• These subsidiary bodies operate under the auspices of the Council for Trade in Services, contributing to the comprehensive management and advancement of objectives related to international trade in services within the WTO framework.

Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS Council)

• The Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS Council) plays a pivotal role in monitoring the implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) within the World Trade Organization (WTO).
• This council serves as a platform for WTO Members to engage in consultations on intellectual property matters and fulfills specific responsibilities outlined in the TRIPS Agreement.
• The TRIPS Agreement establishes minimum standards of protection for various forms of intellectual property, including copyrights and related rights, trademarks, geographical indications (GIs), industrial designs, patents, integrated circuit layout designs, and undisclosed information.
• Furthermore, the TRIPS Agreement sets forth minimum standards for the enforcement of intellectual property rights (IPRs). This includes provisions for civil actions to address infringement, actions at the border to prevent the entry of infringing goods, and, particularly in cases of copyright piracy and trademark counterfeiting, provisions for criminal actions.
• The TRIPS Council, through its activities, contributes to the oversight and advancement of intellectual property standards and enforcement within the WTO framework.

How many WTO Ministerial Conferences (MC) have been held till now?

The first Ministerial Conference (i.e. MC1) was held in Singapore in 1996 and the last one (MC11) was organised in Buenos Aires in 2017. All these MCs have evolved prevailing current global trading system.

Singapore, 9-13 December 1996 (MC1)

• Ministers in charge of trade, foreign affairs, finance, and agriculture from over 120 member governments of the World Trade Organization (WTO) and those in the process of acceding participated in discussions.
• The discussions introduced four key issues, collectively referred to as the "Singapore issues," which were identified as areas where the multilateral body could potentially initiate negotiations.
  These issues include:
  a. Trade and Investment
  b. Trade Facilitation
  c. Transparency in Government Procurement
  d. Trade and Competition
• These Singapore issues represent subjects of significant importance in the context of international trade, with the aim of fostering discussions and potential negotiations to address challenges and opportunities in these areas within the framework of the WTO.

Geneva, Switzerland 18-20 May 1998 (MC2)

• The Ministerial Declaration encompasses several work programs that include addressing issues related to the implementation of existing agreements and decisions, as well as future work outlined in other existing agreements and decisions adopted at Marrakesh.
• The Ministerial Declaration also involves potential future work based on the work program initiated at Singapore.
• Priority areas for the upcoming round of comprehensive negotiations on agriculture have been identified, and they include crucial topics such as market access and addressing export subsidies. These priorities indicate the focus areas for discussions and negotiations within the WTO framework regarding agricultural trade.

Seattle, USA November 30 – December 3, 1999 (MC3)

• The discussions at the meeting revolved around two significant issues. The first issue was whether to initiate a new comprehensive round of negotiations akin to the Uruguay Round or to restrict negotiations to the predetermined "built-in agenda" focused on agriculture and services, as mandated at the last Ministerial.
• The second issue pertained to the content of the negotiations, specifically determining what should be included in the agenda of the meeting.
• Unfortunately, the meeting was unable to find resolutions for both of these critical issues, resulting in a stalemate. The deliberations concluded without reaching an agreement on either starting a new round of negotiations or establishing a ministerial declaration.
• As a consequence, the discussions were suspended, leaving the matter without a consensus on the initiation of a new round of negotiations and without a mutually agreed-upon ministerial declaration.

Doha, Qatar 9-13 November 2001 (MC4)

• Agriculture: Special and differential treatment for developing countries will be an integral component across all negotiation aspects. This approach aims to address the unique developmental needs of these countries, including considerations for food security and rural development.
• Services: The negotiations on trade in services will be conducted with the objective of fostering economic growth for all trading partners and supporting the development of both developing and least-developed countries. Acknowledgment is given to the work initiated in January 2000 under Article XIX of the General Agreement on Trade in Services (GATS) and the numerous proposals submitted by members across various sectors and horizontal issues, including the movement of natural persons.
• Market Access for Non-Agricultural Products: The negotiations will fully consider the special needs and interests of developing and least-developed countries. This includes the possibility of adopting less than full reciprocity in reduction commitments, in alignment with the relevant provisions of Article XXVIII bis of GATT 1994.
• Transparency in Government Procurement: Recognizing the rationale for a multilateral agreement on transparency in government procurement and the necessity for heightened technical assistance and capacity building in this domain, it has been agreed that negotiations will proceed based on a decision to be taken through explicit consensus.

Cancún, Mexico 10-14 September 2003 (MC5)

The main task was to take stock of progress in negotiations and other work under the Doha Development Agenda.

Hong Kong, 13-18 December 2005 (MC6)

• WTO member economies set a goal to achieve a preliminary agreement on the liberalization of agricultural trade, primarily focusing on reducing subsidies and addressing other pertinent issues during a meeting with the aim of concluding the Doha Round in 2006.
• Following intense negotiations, WTO Members formulated an interim package for the Doha Round, including:
  • Set deadlines for eliminating agricultural export subsidies by 2013 and cotton export subsidies by 2006.
  • Mandated that duty and quota-free access for at least 97% of products originating from the least developed countries (LDCs) be provided by 2008.
• Concerning non-agricultural market access (NAMA), Members adopted the "Swiss formula," requiring more substantial cuts in higher tariffs. The decision was made to establish modalities for tariff reduction by April 30, 2006.
• The Swiss Formula, proposed by the Swiss Delegation to the WTO, suggested a method for reducing tariffs on non-agricultural goods (NAMA) for both developed and developing countries. It involved different coefficients for these two groups, aiming to implement steeper cuts on higher tariffs compared to lower tariffs.
• This meeting had the potential to serve as the final step in the Doha trade talks initiated in 2001, marking a critical juncture in the negotiation process.

Geneva, Switzerland 30 November - 2 December 2009 (MC7)

• The theme of the Conference is “The WTO, the Multilateral Trading System and the Current Global Economic Environment”.
• Unlike previous Conferences, this meeting was not a Doha Round negotiating session, but rather a chance for Ministers to reflect on all elements of WTO's work, exchange ideas and extend guidance on the best way forward in the years to come.

Geneva, Switzerland 15-17 December 2011 (MC8)

• The Conference approved the accessions of the Russian Federation, Samoa and Montenegro.
• It adopted a number of decisions on intellectual property, electronic commerce, small economies, least developed countries’ accession, a services waiver for least developed countries, and trade policy reviews.
• It reaffirmed the integrality of special and differential treatment provisions to the WTO agreements and their determination to fulfil the Doha mandate to review them with a view to strengthening them and making them more precise, effective and operational.

Bali, Indonesia 3-6 December 2013 (MC9)

• The Conference successfully adopted the "Bali Package," a set of decisions designed to achieve several objectives, including streamlining trade, providing developing countries with more options for ensuring food security, and enhancing trade for least-developed countries, thereby contributing to broader development efforts.
• The Bali Package represents a subset of issues from the larger Doha Round negotiations.
• In addition to the adoption of the Bali Package, the Conference approved the accession of Yemen as a new member of the World Trade Organization (WTO), further expanding the organization's membership.

Nairobi, Kenya 15-19 December 2015 (MC10)

The conference resulted in the adoption of the "Nairobi Package," comprising a series of decisions addressing agriculture, cotton, and issues related to least-developed countries (LDCs). The key components include:

Agriculture:

• Special Safeguard Mechanism for Developing Country Members: Designed to provide a safeguard mechanism for developing countries in agriculture.
• Public Stockholding for Food Security Purposes: Pertains to measures related to public stockholding for ensuring food security.
• Export Competition: Addresses issues related to export competition in agriculture.

Cotton:

• Acknowledges the critical importance of cotton to various developing economies, particularly the least-developed among them.
• Calls for developed country Members and those developing countries willing to do so, to provide duty-free and quota-free market access for cotton produced and exported by LDCs, starting from January 1, 2016.

LDC Issues:

• Preferential Rules of Origin for Least Developed Countries: Focuses on rules of origin preferences for LDCs.
• Implementation of Preferential Treatment in Favour of Services and Service Suppliers of Least Developed Countries: Addresses the implementation of preferential treatment for services and service suppliers from LDCs.
• Increasing LDC Participation in Services Trade: Aims to enhance LDC participation in services trade.

The decisions made in Nairobi build upon the 2013 Bali Ministerial Decision on preferential rules of origin for LDCs. The "Nairobi Package" is seen as a tribute to the host country, Kenya, and is expected to deliver commitments that particularly benefit the poorest members of the organization.

Buenos Aires, Argentina 10-13 December 2017 (MC11)

The Conference ended with a number of ministerial decisions, including on fisheries subsidies and e-commerce duties, and a commitment to continue negotiations in all areas.

Geneva, Switzerland 12-17 June 2022 (MC12)

• Kazakhstan was originally scheduled to host MC12 in June 2020 but the conference was postponed due to the Covid-19 pandemic.
• The key areas of discussions were WTO’s response to the pandemic, Fisheries subsidies negotiations, Agriculture issues including Public Stockholding for Food security, WTO Reforms and Moratorium on Custom Duties on Electronic Transmission.