After nearly five years, trade ministers finally convened for the 12th session of the World Trade Organisation (WTO) Ministerial Conference (MC12) from 12th to 17th June, 2022 at the WTO headquarters in Geneva. This was after the conference was postponed twice in 2020 and 2021 respectively due to the outbreak of the COVID-19 pandemic.
I wish to congratulate the chair of MC12, Mr. Timur Suleimenov, Deputy Chief of Staff and Envoy for International Trade for the President of Kazakhstan, and Dr. Ngozi Okonjo-Iweala, the Director General of the WTO, for presiding over intense negotiations which culminated into the successful adoption of an unprecedented ministerial package to guide the current and future work of the WTO. I also extend my appreciation to the Zambian delegation to the MC12 which was led by Mrs. Chawe Mpande-Chuulu, Permanent Secretary at the Ministry of Commerce, Trade and Industry.
Unlike in the recent past, I am glad that countries rose above diverging interests to secure a global common good. Like Philosopher George Santayana once said, “those who cannot remember the past are condemned to repeat it. Indeed, the spirit and ambiance exhibited, after frantic round the clock negotiations in Geneva, was exemplary and forward looking.
Founded in 1995, the WTO is a 164-nation multilateral body that sets the rules for trade among countries. The Ministerial Conference is the highest decision-making body of the WTO and meets once every two years. In line with the WTO law, decisions are taken by consensus and any member has equal rights to have reservations or veto.
Despite the unprecedented global challenges, which include soaring commodity prices due to the conflict between Russia and Ukraine, trade ministers at successfully concluded a package of decisions covering a number of important areas of current and future WTO work. Zambia engaged at the conference in her individual capacity as well as part of the wider configuration of like-minded countries and groupings which included the Africa Group, the Organisation of African, Caribbean and Pacific States (OACPS), the Group of 33 and the LDC Group. These groups tabled a number of proposals in areas of common interest as outlined below.
In the area of trade and food security, trade ministers made a commitment towards facilitating trade and improving the functioning and long-term resilience of global food and agriculture markets. They also committed to avoiding unjustified export restrictions on food and improving transparency on any export restrictions and prohibitions. This outcome was in line with the position supported by Zambia and other like-minded countries on trade and food security given the on-going food insecurity in various parts of the world due to climate change and conflict.
Trade Ministers were, however, not able to reach consensus on how to address trade distorting support in agriculture and finding a permanent solution to Public Stock-Holding Programmes and Special Safeguard measures. Being a LDC, with a large portion of its population dependent on agriculture, Zambia was keen to see concrete outcomes at MC12 in these 3 areas. This is coupled by the fact that Zambia is among the majority of the countries in the world that are adversely affected by the trade distorting subsidies that a few developed countries provide to their farmers. Zambia’s agricultural products are, therefore, not able to effectively penetrate and compete in export markets despite duty free quota free preference schemes. Negotiations in agriculture trade are expected to continue ahead of MC13 and Zambia will continue to rally alongside like-minded countries and groups to ensure that local farmers are able to effectively compete and effectively participate in global trade.
Further, as one of the countries that met its first triennial review for graduation from the LDC category in 2021, based on the criteria developed and regularly reviewed by the Committee for Development Policy (CDP), a subsidiary advisory body of the United Nations Economic and Social Council (ECOSOC), Zambia was looking forward to a comprehensive LDC package that would guarantee the smooth and sustainable transition of graduated members. The next triennial review will be in 2024 and if Zambia meets the criteria and endorsed by the ECOSOC, it will be recommended for graduation, at the earliest in 2027. While graduation would represent a significant milestone, it would, however, lead to, among others, the loss of access to special and differential treatment provisions in WTO disciplines; withdrawal of unilateral trade preferences in favour of LDCs as well as LDC-specific technical assistance and funding mechanisms. Therefore, while trade ministers at MC12 committed to facilitating smooth and sustainable transition for these Members after graduation from the LDC Category, Zambia will continue to work towards ensuring that member states extend to graduated countries, the trade preferences previously enjoyed due to LDC status.
With regard to reforming the WTO, trade ministers agreed to launch work to update the organization’s rule book under the auspices of the General Council and its subsidiary bodies. The work will look into all aspects of the WTO’s activities with the view to making the organization more relevant and effective. As an LDC, Zambia will be keenly following the work on WTO reforms and has aligned itself with the position taken by the LDC Group that the reforms to be instituted need to consider the capacity constraints of LDCs, and that technical assistance needs to be provided to LDCs to support them in addressing their capacity constraints.
Another important decision taken by trade ministers was the renewal of the e-commerce moratorium until the next Ministerial Conference. This was a critical win for the digital economy particularly for economies like Zambia which is still growing its digital trade infrastructure and recently established a dedicated Ministry mandated to develop policies and strategies on technology and science.
Zambia was among the countries that supported the inclusion of the TRIPS waiver in the comprehensive WTO response to the COVID-19 pandemic and future preparedness. To this end, after lengthy negotiations, member states were able to agree on a WTO response to the COVID-19 pandemic and future preparedness package which also provided a waiver under the TRIPS Agreement, allowing eligible developing countries to authorize the use of certain patented inputs necessary in the manufacture and distribution Covid-19 vaccines without prior consent of the right-holder.
In the area of fisheries negotiations, trade ministers agreed on a set of rules that prohibit the granting or maintenance of subsidies to vessels or operators engaged in illegal, unreported and unregulated (IUU) fishing. The rules will apply to subsidies that are specific to marine wild capture fishing and fishing-related activities at sea, and do not concern aquaculture and inland water bodies.
In conclusion, it is important to highlight that multilateral trade negotiations are complex and require the spirit of give and take to make progress that mutually benefits all members. In that regard, Zambia, will continue to engage in negotiations within the various configurations and groups to which it belongs to ensure that outstanding issues are resolved. The complex and bulky work in these multilateral negotiations calls for utmost attention and participation by all stakeholders, and especially the sacrifice to work round the clock even within short notice so that we can galvanize our interests into national positions that respond to new developments and other possible key emerging issues.
The author is the Minister of Commerce, Trade and Industry (MCTI).
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