TradeExperettes Unpack MC13: Achievements, Challenges, Lessons Learned and the Way Forward

Emilie Kerstens, researcher at E3G, a climate think tank in Brussels & Belén Gracia, PhD Candidate, Maastricht University and Director of Editorial Content, TradeExperettes

The 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) ended on a disappointing note: members agreed to renew the moratorium on customs duties on electronic transmissions (the e-commerce moratorium), and there were positive outcomes on issues related to inclusion, and developing countries, but they failed to deliver on key agenda items like agriculture and fisheries subsidies. However, as we reflect on MC13, it is crucial to look beneath the surface and delve into a more nuanced discussion on the achievements and challenges of this Ministerial Conference. In a recent webinar hosted by TradeExperettes, esteemed experts including WTO Deputy Director-General Johanna Hill, Alice Tipping, Director of Trade and Sustainable Development at the Institute for Sustainable Development, and Tiffany Smith, Vice President for Global Trade Policy at the National Foreign Trade Council, provided their insightful reflections on the outcomes of MC13, shedding light on its accomplishments, failures and perhaps most importantly, the path forward. 

MC13 took place in the context of a world facing multifaceted challenges and uncertainty, including inflationary pressures, the threat of economic slowdown, global disruptions in supply chains and geopolitical conflicts. This state of “polycrisis” has fueled political frustrations in a global election year, where more than half of the world’s population will be headed to the ballot box. Johanna Hill, highlighted the significance of this context in understanding the difficulties of navigating global trade dynamics and delivering outcomes at MC13.

Achievements

Despite these challenges, Hill pointed to several noteworthy accomplishments. The inclusion of two new LDC Members to the WTO, Comoros and Timor Leste, reinforces that the WTO stands as a gateway to economic prosperity and stability. Furthermore, strides were made in terms of inclusion, with the first ever WTO negotiated text containing provisions on non-discrimination between men and women - the new disciplines on services domestic regulation - entering into force, and a joint WTO-ITC 50 million USD fund to support women exporters and women led businesses to adopt digital technologies. DDG Hill and Alice Tipping also noted the encouraging outcomes for developing countries, including commitments to improve the graduation of LDCs and strengthen regulatory cooperation to reduce technical barriers to trade.

The extension of the e-commerce moratorium until MC14 or 31 March 2026 - whichever is earlier -  is one of the key achievements to come out of the Ministerial. Tiffany Smith provided insights from the business community, highlighting the rallying of support from industry all over the world behind the e-commerce moratorium. A recent report published by TradeExperettes explores the impacts of this trade policy on women-led or owned businesses, women working in the digital economy, and women’s livelihoods through the collection of anecdotal evidence. The report has contributed to this discussion showing that the e-commerce moratorium has been instrumental in the adoption of digital services by women-led or owned businesses by keeping costs low, creating a level playing field for firms and workers in developing countries, and providing opportunities to participate in international markets.

Challenges

Although MC13 concluded with a decision on dispute settlement reform, it only instructed officials to accelerate the discussion, building on the progress already made, to achieve the objective agreed in MC12 of having a fully and well-functioning dispute settlement system accessible to all members by 2024. The draft consolidated text released ahead of MC13 did not yet address the Appellate Body, arguably the biggest challenge of reforming the dispute settlement system. 

It is also important not to turn our back on the areas where gains were not made. Despite an additional day of negotiations, key outcomes on agriculture and fisheries failed to materialize. Tipping pointed to the global elections, particularly in India, as the source of failure, while Tiffany Smith underscored that, if it had not been the forthcoming elections, something else would have blocked these negotiations, and reflected more broadly on the challenges of consensus-based negotiations. 

Lessons learned and the way forward

Panelists highlighted the importance of shining the spotlight on members that are looking to make progress at the WTO. They pointed to three key plurilateral initiatives on trade and the environment: the Trade and Environmental Sustainability Structured Discussions (TESSD), the Dialogue on Plastics Pollution (DPP), and Fossil Fuel Subsidy Reform (FFSR), and their progress and plans to deliver outcomes by the next Ministerial Conference. Nonetheless, another plurilateral initiative addressing Investment Facilitation for Development saw its hopes of being adopted into the WTO legal framework dashed, as countries like India and South Africa blocked discussions on the finalized agreement from even making it onto the agenda. This raises important questions about the future of other plurilateral and joint statement initiatives (JSI). Using the example of the e-commerce JSI, Smith argued that in view of the flaws of the consensus-based model, JSIs and structured discussions are the only tools available for countries who want to move forward on certain issues.

Smith underscored the importance of maintaining a focus on commonly agreed rules to facilitate global trade at the core of the WTO, opening a discussion about the appropriate forum for discussions on trade and the environment. Speakers agreed that while there may be challenges, such as conflicting perspectives and the overlapping scope of international organizations, the WTO plays a critical role in addressing the trade dimensions of sustainability issues. 

In conclusion, all three panelists emphasized the imperative of continuing to capitalize on the momentum generated at MC13 and working collaboratively to deliver the outcomes that were left on the table, from fisheries and agriculture to dispute settlement reform, as well as determining the status of plurilateral initiatives in the WTO framework. These will be fundamental to seeking progress on key issues like trade and the environment, inclusion and industrial policy.

The views and opinions expressed in this blog are solely those of the original authors and contributors. These views and opinions do not necessarily represent those of TradeExperettes, the TradeExperettes editorial team and/or any or all contributors to this site.