The WTO's 12th Ministerial Conference

The WTO's 12th ministerial conference was held from 12th June to 17th June in Geneva. The Ministerial Conference is the top decision-making body of the WTO. The trade ministers of all member countries are members of this body. The 12th Ministerial Conference was held after a gap of five years, though, the usual gap is of two years. Mr. Piyush Goyal, the Commerce and Industry Minister, represented India in the MC 12. The important decisions were taken on various issues like fisheries subsidies etc. They can be given as follows:

1. Fisheries subsidies – the member countries agreed to remove IUU (Illegal, unregulated, and unreported) subsidies in the fisheries sector. Similarly, the member countries also agreed to stop fishing over-fished stocks. The developing countries including India and the least developed countries (LDCs) were exempted from this commitment for two years, provided that they restrict fisheries subsidies for fishing within and up to their exclusive economic zones (EEZ)up to 200 nautical miles.

2. Moratorium on Electronic Transmission (ET)– the member countries agreed to continue the moratorium on electronic transmission, that is, ET, until the next Ministerial Conference, that is, MC 13 or March 2024, whichever is earlier. Under electronic transmission, the online deliveries of such items as music, software, video games, etc. are covered. Since 1998, no customs duty is being imposed on such deliveries. India and South Africa have been long pressing to remove the moratorium so that they can develop their domestic digital market.

3. Public stockholding of food grains – the discussion on this issue has been postponed until the next Ministerial Conference, that is, the MC 13. This issue is quite important for countries like India which needs higher direct and indirect subsidies to ensure higher production of food grains for food security. The Agreement on Agricultural (AOA) puts a limit of 10% of the agricultural production on such farm subsidies. Under the so-called Peace Clause, this limit is temporarily not working but India and other countries are demanding a permanent solution to this problem associated with food security.

4. TRIPS WAIVER – the member countries agreed to relax the provisions of TRIPS for COVID-19 vaccines for a period of the next five years. Under this relaxation, all eligible members( the developing countries ) may authorise the use of the subject matter of a patent for COVID-19 vaccines without the prior consent of the right holder. It is to be noted that this relaxation does not cover therapeutics and diagnostics. In the time period of next six months, member countries will discuss extending this relaxation to the areas of therapeutic and diagnostics.

Thus, this Ministerial Conference covered multiple issues including a decision on the non-prohibition of exports of food grains for the World Food Program while maintaining the goal of domestic food security.