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.
The Ministerial Conference brought together approximately 4,000 ministers, senior trade officials, and other representatives from 164 WTO member and observer countries, as well as representatives from civil society, business, and the global media. The meeting was originally scheduled for February 26-29, but was extended in a final effort to reach results on various outstanding issues.
The members adopted Abu Dhabi Ministerial DeclarationThere, they pledged to maintain the capacity of the multilateral trading system, with the WTO at its core, and strengthen its ability to respond to current trade challenges.
The Ministerial Declaration emphasizes the centrality of the development dimension to the work of the WTO and recognizes the role that the multilateral trading system can play in contributing to the achievement of the United Nations' 2030 Agenda and its Sustainable Development Goals. It also acknowledged that women's economic empowerment and women's participation in trade contribute to economic growth and sustainable development.
Members recognized the role and importance of services to the global economy, as services generate more than two-thirds of global economic output and account for more than half of all employment. The two leaders urged relevant WTO bodies to review and build on all lessons learned during the COVID-19 pandemic and work to quickly build effective solutions for future pandemics. encouraged them to continue.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade and Chairman of MC13, thanked members for their active engagement during the meeting. He noted that although the delegation would not be able to achieve everything it sought to achieve, the commitments made would further strengthen the multilateral trading system.
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.
WTO extends e-commerce tariff grace period until 2026#whamnewshttps://t.co/s4PFUJm2Pg pic.twitter.com/fxGn6DdlpY
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