Recently, the World Trade Organization’s 12th Ministerial Conference was held in Geneva, Switzerland also known as Geneva package.
What is WTO?
- The World Trade Organization is the only international organization that deals with the rules of trade between countries.
- Establishment– It was created in 1995 superseding the 1947 General Agreement on Tariffs and Trade (GATT).
- Members– The WTO is run by its 164 members representing 98% of world trade.
- Headquarters- Geneva, Switzerland
- Decision making– Unlike other organisations, such as the IMF or World Bank, WTO does not delegate power to a board of directors or an organisational chief.
What is the aim of WTO?
To promote free trade, which is done through trade agreements that are discussed and signed by the member states.
What are the Major Outcomes of 12th Ministerial Conference Meeting?
- Curtailing harmful fishing subsidies:
- Multilateral agreement to curb ‘harmful’ subsidies on illegal, unreported and unregulated fishing for the next four years.
- Global Food Security:
- Binding decision to exempt food purchased by the UN’s World Food Programme (WFP) for humanitarian purposes, from any export restrictions.
- WTO members issued a declaration on the importance of trade in global food security and that they would avoid bans on food exports.
- E-commerce transactions:
- ETs consist of online deliveries such as music, e-books, films, software and video games.
- They differ from other cross-border e-commerce since they are ordered online but not delivered physically.
- Covid-19 vaccine production:
- WTO members agreed to temporarily waive intellectual property patents on Covid-19 vaccines without the consent of the patent holder for 5 years so that they can more easily manufacture them domestically.
Issues/Criticisms
- Fishing subsidies:
- Since 2001, member states have been negotiating to ban subsidies that promote overfishing.
- Critics argued that this agreement would only restrict and not eradicate subsidies on illegal fishing.
- E-commerce transactions:
- Developing countries faced the brunt of the financial consequences of this moratorium.
- From 2017-2020, developing countries lost a potential tariff revenue of around $50 billion on imports from only 49 digital products.
- Covid-19 vaccine production:
- Critics argue that The current agreement is a watered-down version of the original proposal made by India and South Africa in 2020.
- They had wanted broader intellectual property waivers on vaccines, treatments and tests.
- It was also criticised for not covering all medical tools like diagnostics and treatments.
Way Ahead
- India has always faced pressure from developed nations, including the US, EU and Canada, to reduce the subsidy it gives to farmers.
- The gaps between the developing and developed members have widened in many areas, emphasising that the special and differential treatment (S&D) must continue.
- India needs to continue taking leadership roles as it has been doing at WTO.
Read more : ‘ONE HEALTH’ APPROACH
