Explained | From farm to fisheries, what is at stake for India at WTO's MC13?

The WTO's 13th Ministerial Conference (MC13) will go on till February 29 in Abu Dhabi

The World Trade Organization's 13th Ministerial Conference (MC13) commenced on February 26 in Abu Dhabi, United Arab Emirates (UAE). Over four-days, ministers from across the world will review the functioning of the multilateral trading system and work on the future agenda of the WTO. The conference will be chaired by Thani bin Ahmed Al Zeyoudi, UAE's Minister of State for Foreign Trade.

India's primary task is keeping non-trade issues outside the ambit of the WTO. As MC13 begins, Moneycontrol explains the key priorities for New Delhi at this multi-nation platform.

Food security

India will maintain its stand of refusing to discuss issues related to agriculture at the ministerial-level meeting of the WTO, unless a permanent solution is found to public stockholding for food security.

New Delhi is seeking a permanent solution on public stockholding with better terms than the 2013 Bali peace clause, whereby developing countries were allowed to provide subsidies under public stockholding programmes. A public stockholding programme is a policy tool used by governments to meet food security needs.

While certain WTO members have expressed concerns over India's minimum support price (MSP) scheme for key agricultural products and export restrictions on commodities such as rice, New Delhi maintains that the country has to protect the interests of the poor and vulnerable farmers, and take care of its domestic food security needs.

India, though, is willing to discuss issues around exports bans only if member-nations prioritise resolving the matter of public stockholding for food security. But some countries, like the United States, have indicated that an agreement on this may not be possible at this conference.

Poor fishermen

India will continue to bat for a permanent carve-out for nations that practise low-income fishing in a bid to protect the livelihoods of poor fishermen.

Apart from this, New Delhi will also push for not restricting countries from giving subsidies to fishermen operating within their Exclusive Economic Zone (EEZ).

The WTO Agreement on Fisheries Subsidies, adopted at the previous 12th Ministerial Conference (MC12) on June 17, 2022, prohibited "harmful fisheries subsidies, which are a key factor in the widespread depletion of the world’s fish stocks."

For the agreement to become operational, two-thirds of the members have to deposit their “instruments of acceptance” with the WTO. Members agreed at MC12 to continue negotiations on outstanding issues and to make recommendations by MC13 for additional provisions that would further enhance the agreement. So far, 55 member countries have endorsed the agreement.

India had rejected the text on fisheries subsidy agreed upon after MC12 and is proposing a 25-year moratorium on distant water fishing nations to discourage countries from fishing outside their immediate Regional Fisheries Management Organisation (RFMO).

Non-trade issues

In line with its earlier stance, India will oppose any discussion on what the country considers non-trade issues, including discussions on the environment, MSMEs (micro, small, and medium enterprises), and gender matters at the ministerial conference.

India is of the view that WTO should refrain from negotiating on these issues since there are other multilateral forums, including the United Nations, which are the appropriate platforms to discuss such matters.

Specifically, New Delhi may prefer discussing bilaterally with the European Union (EU) regarding their carbon tax on imports of steel, iron ore, and cement, rather than at MC13. India is already engaged in bilateral discussions on EU's Carbon Border Adjustment Mechanism (CBAM) in a bid to ease matters for the domestic industry.

The CBAM puts a price on the carbon emitted during the production of carbon-intensive goods entering the EU to encourage cleaner production in non-EU countries. This carbon tax requires importers, as of 2026, to purchase certificates equivalent to the carbon price. New Delhi believes any unilateral measures taken to combat climate change should not be a means of unjustifiable discrimination or disguised restriction on global trade.

Digital trade

India will push to end a moratorium on customs duties on digital goods at the ministerial conference, saying that such a leeway tends to benefit a few developed nations. This is again in line with New Delhi's earlier position.

India believes that a country should be free to levy duties given that developing nations are losing around $10 billion in revenues due to this moratorium.

WTO members had agreed not to impose customs duties on digital goods until MC13.

Since 1998, WTO members have periodically agreed to extend the moratorium on the imposition of these customs duties. The last extension was agreed in June 2022 at the WTO's 12th Ministerial Conference. In addition to extending the moratorium until MC13, members, including India, at MC12 agreed to intensify discussions on the scope, definition, and impact of the moratorium.

India is of the view that the country needs to levy customs duties to protect its nascent digital industry. And, since the difference between digital goods and digital services isn't well-defined, New Delhi is not in favour of extending the moratorium further.

"There is no consensus on the scope of the moratorium. Customs duties as a concept are always related to goods, not services. According to some countries, the duties are applicable to services as well. The proponents of the proposal need to explain what the moratorium covers," an Indian government official said during a briefing last week.

WTO disputes

India will pitch for revamping the WTO's appellate body (which settles disputes among member nations), that has been out of action since December 2019 due to a decision by the United States to block appointments of new members to the entity.

The body was established in 1995 under Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes. It is a standing body of seven persons that hears appeals in disputes brought by WTO members. The appellate body can uphold, modify, or reverse the legal findings and conclusions of a panel, and appellate body reports are adopted by the Dispute Settlement Body (DSB), unless all members decide not to do so.

Currently, the appellate body is unable to review appeals given the vacancies. The term of the last sitting member expired on November 30, 2020.

As per India, the appellate body should be independent, rule-based, and its orders automatically binding. New Delhi will push for the same at MC13.

Recently, India's Commerce Minister Piyush Goyal said that issues around the dispute resolution mechanism that have been discussed over the years need to be brought to a conclusion at MC13.

What lies ahead?
At a time when the WTO has been facing questions on its efficacy in representing the needs of developing nations, India is expected to play a key role in voicing the needs of the Global South during the four-day long MC13.

The draft package circulated ahead of the conference has reportedly highlighted issues that India and many other developing countries are opposed to being included in this forum, such as women’s participation in trade, industrial policy, and environment.

As Goyal said on February 23, "India will try to ensure that the guiding principle of the WTO is adhered to, given that there are attempts to include issues that are beyond the ambit of the global organisation."