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1 1 (June 10, 2022)

handle is hein.crs/govegxq0001 and id is 1 raw text is: Con gressionaI Research Service Informing the Iegitive diebate since 1914 Updated June 10, 2022 WTO: 12th Ministerial, 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 (MC12) multiple times from June 2020 to June 2022. The biennial meeting, which usually involves active U.S. participation, has been widely anticipated as an action-forcing event for the WTO amid serious challenges facing the global trading system. Some members hope key results for ongoing negotiations could help bolster the WTO's relevance. In addition, a dispute settlement crisis continues, with the WTO's Appellate Body ceasing to operate in 2019, and no consensus on solutions. Broader reforms of the institution also remain under discussion, including some U.S. proposals. While MC12 and other meetings had been suspended during part of 2021, members continued some WTO operations virtually and resumed some in-person. WTO Director-General (DG) Ngozi Okonjo-Iweala, newly appointed in February 2021, has faced the challenge of positioning the organization to advance multilateral cooperation in the wake of the pandemic and the war in Ukraine. As MC12 approaches, she has urged members to bridge differences and deliver results, while laying the groundwork for what we need to do for life after MC12 and moving towards MC 13. Some view the WTO as playing an important role in coordinating international trade responses to help mitigate the global economic and trade challenges exacerbated by the pandemic. The WTO 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 WTO reform efforts (H.Res. 382, S.Res. 101), sought clarification on the Administration's positions, and proposed trade legislation in response to COVID-19. MC 12 Delay and Implications Following the onset of the COVID-19 pandemic, members cancelled the planned June 2020 MC12 meetings. With the emergence of new variants and travel restrictions at the end of 2021, MC12 was further postponed until June 12-15, 2022. With mixed results from the last ministerial in 2017, members look to MC12 as an opportunity for decisions on new rules and taking stock of ongoing negotiations, demonstrating the value of the WTO. The DG summarized potential deliverables in what she characterized as the four pillars plus: fisheries subsidies, agriculture, services, and the WTO response to the pandemic, plus WTO reform and development issues. WTO members have tempered expectations, however, signaling persistent differences may prevent major announcements. In addition, some members have been unwilling to negotiate with Russia, given the ongoing war in Ukraine. 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. Major provisions include prohibition of subsidies contributing to illegal, unreported and unregulated (IUU) fishing, fishing or fishing-related activities regarding overfished stock, and overcapacity and overfishing. Members intensified negotiations in May 2022, but differences remain in particular on the extent of special and differential treatment provisions for developing countries and exceptions for certain subsidies. The United States has generally supported equal obligations across members to limit subsidies, with some exceptions, and also proposed provisions related to forced labor on fishing vessels. See CRS In Focus IF11929. 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' strong opposition. Separately, the United States and over 80 members are negotiating a plurilateral initiative on e-commerce. The parties aim to have a final draft in 2022, but would need to overcome contentious issues, including on cross-border data flows. The United States seeks an ambitious, high- standard agreement. See CRS In Focus IF11194. Agriculture. Some observers have 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 contentious issues, including on 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 MC 12. Members are also discussing exempting World Food Programme purchases for humanitarian purposes from export restrictions. Global food security concerns have heightened following Russia's 2022 invasion of Ukraine due to disruptions to grains and other markets. See CRS In Focus IF11906. COVID.9 and WTO Reactions In the wake of the COVID-19 outbreak, 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 estimated a 10.8%

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