November 29, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

Tackling Trade

Ahead of the crucial ministerial meeting of the World Trade Organization (WTO) in Geneva next week, its 164 members are trying to thrash out an outcome to show that the multilateral trade agency is still relevant, even as they guard their own interests. The 12th ministerial conference (MC12) of the WTO will take place from November 30 to December 3.

Outcomes sought

  • Curbing harmful fish subsidies
  • Ending farm sops that distort trade
  • Response package to the pandemic

India’s offensive interests

1] Intellectual Property Relaxation

  • TRIPS waiver for vaccines, therapeutics to fight Covid
  • India, South Africa proposed this in 2020
  • 64 WTO members support; Japan, Switzerland and EU oppose
  • Free flow of health services, international telemedicine services, professionals

2] Food Security

  • Allow developing nations food security schemes sans limits, on par with LDCs
  • End trade-distorting farm subsidies above $10 b for 3 years
  • India, developing nations want permanent solution for public stockholding
  • Solution to cover all products without onerous notification obligations
  • Developed countries say no exports from such stocks
  • US, EU, Australia want lower farm subsidies from countries with higher potential to distort global trade
  • India favours ‘support-per-farmer’ rule
  • India wants special safeguard mechanism to protect poor farmers from import surges

3] Fish subsidies

  • Exempt developing nations from subsidy cuts if not doing distant water fishing
  • India’s s favours ‘polluter pays’ and ‘common but differentiated responsibilities’ approach
  • India wants exemption for 25 years

WTO Reforms

  • India, developing nations, LDCs want special and differential treatment
  • US blocks 121-member proposal for 47th time to begin selection process to fill appellate body vacancies
  • EU wants formal role for the private sector in WTO
  • Rich nations favour private sector participation at WTO
  • Developed countries want to do away with WTO consensus principle

Parallel Pl

1] Environment & Sustainability

  • Developed nations want duty cuts on environmental goods
  • Rich nations push for such carbon border adjustment mechanism
  • Green goods and services’ liberalisation to cause revenue loss to developing countries: UNCTAD
  • Rich nations want re-manufactured goods trade, low restrictions
  • Move to make developing nations import-dependent

2] Investment Facilitation

  • China, Brazil, Aus want binding rules allowing foreign investors to enter countries sans regulations
  • India says investment a matter of domestic policy

3] MSMEs

  • Some members want to facilitate SME trade, not covered in existing Doha mandate
    India, Africa fear it might lead to ecommerce creeping in

4] Domestic regulation in services

5] Ecommerce

6] Gender-women empowerment through trade

7] Labour-related issues making way through fish subsidy talks

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