WTO reforms, e-commerce, investment facilitation to dominate MC14 talks

WTO's MC14 will see discussions on reforms, e-commerce rules, fisheries subsidies and public stockholding, with India expected to push for policy space and clarity

The World Trade Organisation’s (WTO’s) upcoming 14th ministerial conference (MC14) is set to see intense discussions on key issues, including reforms, e-commerce, fisheries subsidies and the long-pending permanent solution on public stockholding.

 

The 14th MC will be held from March 26-29 at Yaoundé in Cameroon.

 

“This ministerial (conference) is broadly being termed as the reform ministerial (conference) because there are multiple issues that the countries have been nudging. Reform is not expected as an outcome of this ministerial (conference), but as a pathway for reforming WTO. That will be part of the agenda -- what can be the credible pathway, whether we should go towards that pathway and whether the member (nations) should discuss reform as an agenda for coming out with certain solutions, suggestions for the next ministerial (conference),” a senior government official said on Thursday.

 

India expects detailed discussions on the matter related to e-commerce as it is an evolving area of trade – and a matter that has been discussed for 28 years now.

 

Under a WTO moratorium, countries do not impose customs duties on cross-border e-commerce transactions. WTO member nations have periodically agreed to extend the moratorium and have been divided on the issue.

 

Developing countries, such as India, have been battling for policy space to impose customs duties on electronic transmissions, holding that the moratorium has adversely impacted its revenue collections. Developed countries, including the United States (US), Australia, want an extension of the moratorium. During the 13th WTO ministerial conference in 2024, nations agreed to maintain the current practice of not imposing customs duties on electronic transmissions until the next ministerial conference scheduled for next week.

 

Officials in New Delhi believe that there is a need for a clear definition of goods under electronic transmission, the official cited above said.

 

India is also expected to face pressure on the proposal on investment facilitation at the WTO, which has been agreed upon by 128 countries, including 27 countries from the European Union.

 

The China-led IFD proposal aims to enhance the transparency of investment regulations to make countries more efficient and attractive to foreign and national investors. Apart from an attempt to attract more foreign direct investment flows, the idea is also to aim for higher-quality investment at a time when many developing countries are grappling with weak growth, high inflation.

 

India has not joined the agreement and has also opposed it as it will dilute the multilateral nature of the WTO. The group wants to bring the proposal through Annexure-4 of the WTO, under which the proposal would be binding only on the signatory members and not on those who are opposed to it.

 

That apart, the matters related to the fisheries subsidies and the long-pending permanent solution on public stockholding will also be discussed extensively, the official said.