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1 1 (April 22, 2020)

handle is hein.crs/govdabe0001 and id is 1 raw text is: -c r s c n ...........~ Updated April 22, 2020 WTO: Ministerial Delay, COVID-19, and Ongoing Issues Due to the coronavirus pandemic (COVID-19), the World Trade Organization (WTO) canceled its 12th Ministerial Conference (MC12) planned for June 2020. The biennial meeting, which usually involves active U.S. participation, was widely anticipated as an action-forcing event for the WTO, amid serious challenges facing the multilateral trading system. Some members hoped key results for ongoing negotiations could help preserve the WTO's relevance. In addition, a dispute settlement (DS) crisis continues, with the Appellate Body ceasing to operate in December 2019 and no consensus on solutions. Broader reforms of the institution also remain under active discussion, including some U.S. proposals. While MC12 and other meetings were suspended, members are attempting to continue some WTO operations virtually. The WTO can play a unique role in coordinating global trade responses, which could be critical in mitigating the grim global economic and trade outlook in the wake of COVID-19. The WTO has committed to work with other international organizations to minimize disruptions to cross- border trade and global supply chains-in particular those central to combatting the virus-while safeguarding public health concerns. It has sought to inform members of the impacts on trade and encouraged them to notify the WTO of any trade-related measures taken in response to COVID- 19. The number of countries implementing trade restrictions, including curbs on exports, has increased significantly since the beginning of 2020, raising debate among analysts about the economic and policy rationales and impacts, plus questions about consistency with WTO rules. At the same time, other countries have committed to trade openness. Members of Congress have expressed support for ongoing WTO reform efforts (see H.Res. 746), sought clarification on the Administration's positions, and proposed trade- related legislation in response to COVID-19. MCI 2 Dlay4 and h-np,,icadons After the declaration of COVID-19 as a pandemic, Kazakhstan, the host for the WTO's MC12, cancelled the planned June meetings. Following mixed results coming out of the last ministerial in 2017, the United States and other WTO members had hoped MC 12 would mark a turning point to conclude some negotiations. They also hoped to announce significant progress on multiple initiatives, demonstrating the value of the WTO. MC12 was to serve as a critical forum for taking stock of various WTO reform proposals (see below). A new date for MC12 has not been set, but will likely occur in 2021. Some negotiations and other WTO activities continue in writing and virtually. Members are currently evaluating how those negotiations should proceed and whether these formats can be used to yield binding decisions. Sk)edxOrngokig N k)~~ Fisheries. Members had committed to finish negotiations on fisheries subsidies at MC12, an achievement many view as critical to upholding the WTO's legitimacy. Primarily seeking to limit subsidies that contribute to overcapacity and overfishing, negotiations continue in written exchanges, and the negotiations chair is working to bridge differences. The U.S. has supported equal obligations across members, with minimal flexibilities for developing countries. E-commerce. Members had extended the moratorium on customs duties on electronic transmissions until MC12, but it is unclear if the extension will be sustained, given the opposition of some developing countries. Separately, the United States and over 75 members are actively negotiating a plurilateral initiative on e-commerce. The United States seeks an ambitious, high standard digital trade agreement. The parties had hoped to publish a consolidated text at MC12 to gain momentum and attract new participants. Agriculture. Some observers warned that MC 12 would be deemed a failure without some agreement on agricultural issues. Talks have stalled in recent years, but members continue to exchange views in writing on issues, including public stockholding and special safeguard mechanisms for developing countries. Given renewed attention to lack of compliance with WTO notification requirements (e.g., on domestic support and export subsidies), some experts saw a transparency agreement as a feasible outcome for MC 12. C.'OV I-. 9 w ..,,, d W' T0 R ea,c t iok,,\ In the wake of COVID-19, the WTO Director-General emphasized, Maintaining open trade and investment flows will be critical to protect jobs, prevent supply chain breakdown, and ensure that vital products do not become unaffordable for consumers. In early April, the WTO issued its trade forecast, estimating a plunge in global trade in 2020, ranging from 13% to 32%. A recovery is expected in 2021, but the extent depends on the duration of the pandemic and countries' policy choices. For the latter, the WTO has emphasized the importance of transparency. Several WTO agreements are relevant to health-related policies, such as technical barriers to trade, sanitary and phytosanitary measures, services, and intellectual property rights. Others guide implementation of policies, including through the WTO's fundamental principle of nondiscrimination, as well as rules on subsidies. Specific commitments have contributed to liberalization of trade in medical products: (1) tariff negotiations during the Uruguay Round; (2) a plurilateral Agreement on Pharmaceutical Products, updated in 2011; and (3) the expanded plurilateral Information Technology Agreement in 2015. WTO negotiations and agreements have improved market access for medical products, but barriers remain. An April g ,, ',Ngwq ppmmp mgnowgo 10N ILU

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