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1 1 (May 15, 2020)

handle is hein.crs/govdamd0001 and id is 1 raw text is: Updated May 15,2020 WTO: Ministerial Delay, COVID-19, and Ongoing Issues Due to the coronavirus pandemic (COVID-19), the World Trade Organization (WTO) canceled its 12' 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 lmultilateral trading system Some members had hopedkey results for ongoing negotiations could help bolster 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. Members will also face selecting new leadership, as WTO Director-General Azev~do announcedplans to stepdown in fall 2020, a year before his term's end. 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 tocross- border trade and global supply chains-in particular those central to comb atting the virus-while safeguarding public health concerns. It has soughtto infonnmembers of the impacts on trade and encouraged themto notify the WTO of any trade-related measures taken in response to COVID- 19. Thenumberof countries imposing 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 ofCongress have expressed support for ongoing WTO reform effort, s ought clarification on the positions of the Administration, and proposed trade-related legislation in response to COVID-19. In May, some Members introduced joint resolutions to withdraw fromthe WTO. After the declaration of COVID-19 as a pandemic, Kazakhstan, the host forthe WTO's MC12, cancelled the planned meetings, offering to host themin June 2021. Following mixed results fromthe last ministerialin 2017, the United States and other WTO members hadhoped MC12 would mark a turning point to conclude some negotiations. They alsohopedto announce significant progress on lmultiple initiatives, demonstrating the value of the WTO. MC12was to serve as a critical forum for taking stockofvarious WTO reformproposals (see below). Some WTO activities continue virtually, including General Councilmeetings, and some staffreturned to offices in mid- May. Members are currently evaluating how negotiations and committee meetings should proceed virtually orin person, and when andhow to hold MC12. 5el ct Orngcnng Neoitcs Of Us. htcrc'& Fisheries. Members had committed to finish negotiations on fisheries subsidies at MC12, an achievement many view as criticalto upholdingthe WTO's legitimacy. The chair attempted to continuetalks to limit subsidies that contribute to overcapacity andoverfishing, buthalted themafter some parties voiced concerns aboutthe virtual participation. The U.S. has supported equal obligations across members, with minimal flexibilities for developing countries. A new U.S. executive order aims to increase enforcement and resources to combat illegal, unreported, and unregulated fishing and promote domestic seafoodproduction. E-commerce. Members hadextendedthe moratoriumon customs duties on electronic transmissions until MC12, but it is unclear ifthe extension willbe sustained, given the oppositionof some developing countries. Separately, the United States and over 75 members are actively negotiating a plurilateralinitiative on e-cominerce. The United States seeks an ambitious, high standard digital trade agreement. The parties hadhoped to publish a consolidated text at MC12, but are insteadholding webinars on specific digital is sues to educate members and attract new participants. Agriculture. Some observers warned that MC12 would be deemed a failure without some agreement on agricultural is sues. Talks have stalled in recent years, but members continue to exchange views in writing on issues, including public s tockholding and special safeguard mechanisms for developing countries. Given renewed attention to lack of compliance with WTO notification requirements (e.g., on domestic support andexport subsidies), some experts saw a transparency agreement as a feasible outcome for MC12. CO .,,, 9ad 'TO Reactions In the wake of COVID-19, the WTODirector-General emphasized, Maintaining opentrade 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 is suedits trade forecast, estimating a plungein globaltrade in 2020, ranging from 13% to 32%. A recovery is expected in 2021, but the extent depends on theduration of the pandemic and countries' policy choices. Forthe latter, the WTO has emphasized the importance of transparency; to date, many members have failed to notify new measures. W'kVT) Agren-§, an ,'a&d T Mdcica' Pr<du. (XhZd3r, Several WTO agreements are relevant to health-related policy, such as technical barriers to trade, sanitary and phytosanitary measures, services, and intellectual property rights. Others guide implementation of policies, including the WTO's core principle of nondiscrimination andrules on A A '2 k yg

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