In a major development at the 13th Ministerial Conference (MC13) held in Abu Dhabi, the World Trade Organization (WTO) extended the suspension of tariffs on e-commerce until the 14th Ministerial Conference in 2026.
This decision represents a significant outcome for MC13, which held extensive discussions on key issues shaping the future of global trade.
Under the WTO suspension, countries do not impose tariffs on cross-border e-commerce. Since 1998, WTO members have periodically agreed to extend the suspension period. The last extension was agreed at the last MC in June 2022.
In a separate development, the countries agreed to commit to continuing negotiations in 2024 to resolve the crisis in their dispute resolution system, which has been stalled by the Supreme Court for four years due to U.S. opposition.
This means that many trade disputes remain unresolved because countries can sue for legal nullity and cannot enforce WTO rules.
Indian Minister Piyush Goyal said it was “sad” that countries were blocking the outcome. Although he did not directly refer to the United States, he said that in a meeting with U.S. Trade Representative Katherine Tai earlier this week, he pointed to the lack of progress on amending the WTO's dispute system. .
Mr. Tai said negotiations on this issue were positive and progress was being made. But delegates say they face numerous obstacles and are privately skeptical about making any further progress in a U.S. presidential election year.
In the fisheries sector, countries tried to agree on the second part of the international WTO agreement to curb government subsidies, but the agreement was criticized for encouraging industrial fishing fleets to depopulate the world's oceans. be. The first part will be agreed in 2022 and will enter into force if enough countries ratify it.
Many participants, including USTR's Mr. Tai, viewed this as the item with the best chance of reaching agreement. Environmentalists say it's vital to the world's oceans.
Consultation chairs released a new draft agreement on Friday morning, with some sections still in yellow, indicating areas where agreement has not been reached, such as stipulating a phase-in period for developing countries.
