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1 1 (June 5, 2021)

handle is hein.crs/govednt0001 and id is 1 raw text is: C I $ervne n mrigtho~ ~LI Th ~rn 1414 Updated June 5, 2021 WTO: Ministerial Delay, COVID-19, and Ongoing Issues Overview Due to the Coronavirus Disease 2019 (COVID-19) p andemic, the World Trade Organization (W TO) postponed its 12th Minis terial Conference (MC12) 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 globaltrading 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 operatein 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 othermeetings were suspended, members have attempted to continuesome WTOoperations virtually. The new W TO Director-General (DG) is also getting settled into her newrole. The posthadbeen vacant since fall 2020, after the Trump Adminis tration objected to Nigeria's Ngozi Okonjo -Iweala, the candidate who hadreceived 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 W TO can play a unique role in coordinating global trade responses, which could be criticalin mitigating the global economic and trade downturn in the wake of COVID-19. The WTO has committed to work with other international org anizations to minimize disruptions tocoss- border trade and global supply chains-in particular those central to comb atting the virus-while s afeguarding public health concerns. It has sought to informmembers ofthe imp acts of the p andemic on trade and encouraged themto notify the WTOofany trade -related meas ures 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 sincelifted the temporary restrictions and committed to trade openness. Some Members of Congress have expressed support for ongoing W TO reformefforts, sought clarification on the positions of the Administration, and proposed trade-related legislation in response to COVID-19. MC I2 Delay and Implications After the declaration of COVID-19 as a pandemic, Kazakhs tan, the host for the WTO's MC12, cancelled the planned June 2020 meetings. Following mixed results from the last ministerialin 2017, the United States and other W TO 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 stockof various WiTOreformproposals (see below). Some W TO activities and negotiations continue https ://crs repo virtually. An informalministerial 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 andpostponed 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 criticalto upholding the WTO's legitimacy. The chair has continuedtalks virtually and issuedrevised consolidated negotiated text formembers to reviewand 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 officialposition. F-commerce. Members extended the moratoriumon customs duties on electronic transmissions untilMC12, but it is unclear if the extension will be sustained thereafter, given some developing countries' opposition. Separately, the United States and over 80members are negotiating a plurilateral initiative one-commerce. The co-conveners noted progress on multiple issues and aimto 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 dealon agricultural is sues. Talks have stalled in recent years, but members continue to exchange views on is sues, including public stockholding and specials afeguard mechanisms for developing countries. Given renewed attention to lackof compliance with WTO notification requirements (e.g., on domestic support, export subsidies), some experts see a transparency agreement as a feasible outcome forMC12. Members are also discussing exempting World Food Programme purchases for humanitarian purposes fromexport restrictions. COVID- 9 and WTO Reactions In the wake of COVID-19, the WTO DG emphasized, Maintaining open trade and investmentflows will be critical to protect jobs, prevent supply chain breakdown, and ensure that vitalproducts do not become unaffordable for consumers. The WTO's latest forecast estimates an 8% rebound in glob al merchandise trade in 2021, after falling 5% in 2020-a smaller decline than earlier estimates.While prospects for the recovery in glob altrade have improved, the pandemic continues to pose the greatest threat to the outlook. WTO Agreements and Trade in Medical Prod ucts Several WTO agreements are relevant to health-related policy, such as technical barriers to trade, sanitary and phytosanitary meas ures, services, and intellectual property rights (IPR). Others guide implementation of policies, including the W TO's core principle of nondiscrimination 9

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