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1 1 (March 31, 2021)

handle is hein.crs/govecvy0001 and id is 1 raw text is: Congressional Research Service 0 Updated March 31, 2021 WTO: Ministerial Delay, COVID-19, and Ongoing Issues Overview Due to the Coronavirus Disease 2019 (COVID-19) pandemic, the World Trade Organization (WTO) postponed its 12th Ministerial Conference (MC 12) until November 2021. 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 global trading system. Some members had hoped key results for ongoing negotiations could help bolster the WTO's relevance. In addition, a dispute settlement 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 have attempted to continue some WTO operations virtually. The new WTO Director-General (DG) is also getting settled into her new role. The post had been vacant since fall 2020, after the Trump Administration objected to Nigeria's Ngozi Okonjo-Iweala, the candidate who had received the majority of WTO member support. The Biden Administration supported her candidacy, removing a major obstacle to her official appointment on February 15, 2021. The WTO can play a unique role in coordinating global trade responses, which could be critical in mitigating the global economic and trade downturn 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 of the pandemic on trade and encouraged them to notify the WTO of any trade-related measures taken in response to COVID-19. The number of trade restrictions, including curbs on exports, increased significantly during 2020, raising debate about the policies' economic impacts and consistency with WTO rules. At the same time, other countries have since lifted the temporary restrictions and committed to trade openness. Some Members of Congress have expressed support for ongoing WTO reform efforts, sought clarification on the positions of the Administration, and proposed trade-related legislation in response to COVID-19. MC 12 Delay and Implications After the declaration of COVID-19 as a pandemic, Kazakhstan, the host for the WTO's MC12, cancelled the planned June 2020 meetings. Following mixed results from the last ministerial in 2017, the United States and other WTO members look to MC12 as a turning point to conclude some negotiations and announce significant progress on multiple initiatives, demonstrating the value of the WTO. The delayed MC12 may serve as a critical forum for taking stock of various WTO reform proposals (see below). Some WTO activities and negotiations continue https://crsreport virtually. An informal ministerial was held virtually in January 2021 and members, including the United States, expressed an urgent need to move forward with finalizing the new DG selection and postponed MC12. Select Ongoing Negotiations of U.S. Interest Fisheries. Members had committed to finish negotiations on fisheries subsidies by MC12, an achievement many view as critical to upholding the WTO's legitimacy. The chair has continued talks virtually and issued revised consolidated negotiated text for members to review and debate. The United States had supported equal obligations across members to limit subsidies that contribute to overcapacity and overfishing, with minimal flexibilities that some developing countries have been demanding. The Biden Administration has not yet taken an official position. E-commerce. Members extended the moratorium on customs duties on electronic transmissions until MC12, but it is unclear if the extension will be sustained thereafter, given some developing countries' opposition. Separately, the United States and over 80 members are negotiating a plurilateral initiative on e-commerce. The co-conveners noted progress on multiple issues and aim to deliver clean text proposals on ten areas before summer. The United States seeks an ambitious, high-standard agreement. Agriculture. Some observers warned that MC12 would be deemed a failure without some deal on agricultural issues. Talks have stalled in recent years, but members continue to exchange views 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, export subsidies), some experts see a transparency agreement as a feasible outcome for MC12. Members are also discussing exempting World Food Programme purchases for humanitarian purposes from export restrictions. COVID-19 and WTO Reactions In the wake of COVID-19, the WTO DG 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. The WTO's latest forecast estimates an 8% rebound in global merchandise trade in 2021, after falling 5% in 2020-a smaller decline than earlier estimates. While prospects for the recovery in global trade have improved, the pandemic continues to pose the greatest threat to the outlook. WTO Agreements and Trade in Medical Products Several WTO agreements are relevant to health-related policy, such as technical barriers to trade, sanitary and phytosanitary measures, services, and intellectual property rights (IPR). Others guide implementation of policies, including the WTO's core principle of nondiscrimination

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