ABAC 2021 Supporting the WTO

Summary Presentation by ABAC New ZealandWTO Task Force, 25 February 2021

www.abaconline.org

APEC Business Advisory Council

New DG, new era, big To-Do List

1

Dr Ngozi Okonjo-Iweala

Still no Appellate Body

2

‘Pandemic trade policy’

3

• Supply chains• Essential medical supplies• Essential food supplies• Vaccine production and distribution• Fostering economic recovery

Medical sector export curbs

4Source: Global Trade Alert

Food sector export curbs

5Source: Global Trade Alert

GVCs are critical for vaccines…

6Source: OECD, Using Trade to Fight COVID-19: Manufacturing and Distributing Vaccines, 11 February 2021

…and open markets are critical to global health

7Source: OECD, Using Trade to Fight COVID-19, February 2021 Source: Reuters

Goods trade impact: less bad than feared, but outlook is fragile

8

Source: WTO Goods Trade Barometer, 2021

Services trade: recovery not yet in sight

9

Source: WTO, 2021

Pressures for reform

10

• Process: plurilateral models• Transparency• Dispute settlement: Appellate Body• “Modernisation” (digital, inclusion)• Fish subsidies• Industrial subsidy reform• Unfinished business from Doha Round

(agriculture, services domestic regulation)• Fossil fuel subsidies• Developing country flexibilities

Negotiations or informal talks underway

11

Investment facilitation JSI

WomenSMEs

E-commerceJSI

Servicesdomestic regulationJSI

Agriculturesubsidies

Foodstockholding

Fish subsidies

Keeping the WTO relevant

12

WomenSMEs

E-commerce Servicesregulation

Ag subsidies, Stockholding

Fish subsidies

Permanent Moratorium on Customs duties on e-transmissions

Fossil fuel subsidies

Environmental goods & services

Revive TiSA(market access)

Environmentally-harmful subsidies

Include on formal agenda

WTO Ministerial MC12

• Timing and location are still up in the air – may be in November/December • Not clear if it will be possible to bring together a

big package• Needs to strike the balance between “reform”

issues, pandemic response and longstanding negotiating agenda • Whatever the package, it will be important to try

to preserve WTO credibility