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As Delivered
Item 1. REPORT BY THE CHAIR OF THE TRADE NEGOTIATIONS COMMITTEE AND REPORT BY THE DIRECTOR-GENERAL
For the WTO, the success of MC12 is like sweet rain after a long drought, a good harvest after 20 years of famine. It proved to the world that, as long as we uphold the spirit of solidarity and cooperation, the WTO can still deliver and respond to the global challenges. China would like to pay special tribute to DG for her strong leadership. Our thanks also go to members for their tremendous efforts and contribution.
While still indulging in the joy of success, we fully realize that the way forward could still be bumpy and rocky. In order to seize the momentum, China has three suggestions:
First, cook the hard-won harvest into tasty delicacies by implementing the ministerial mandates. This work should be well organized and structured. China appreciates the Secretariat for circulating the list of implementation matters from MC12 mandates. For the next step, GC and relevant subsidiary bodies should consult with members and make implementation schedule with clear time limits. In addition, early ratification of Fisheries Subsidies Agreement will provide strong impetus for members to negotiate on the remaining challenging issues, like over-fishing and over-capacity (OFOC).
Second, for those longstanding controversial issues, such as domestic support, we have to think out of the box and explore new ways forward, rather than repeat the same failure again and again with the existing ways. For the retreat on Agriculture, we welcome the proposal and hope, through frank discussion, we can have a good basis for moving agricultural negotiations forward. In order to have fruitful discussion, it should give members enough time to reflect and think. So, maybe late fall, the harvest season is a better choice.
Third, as the negotiation on the short reform paragraph in the outcome document was extremely difficult, the implementation of reform is destined to be more challenging. In order to move forward, reform should be based on some common understandings. From China’s point of view, the premise of reform should be preserving the basic principles of the WTO, including MFN and consensus-based decision-making; the aim should be to ensure the WTO’s well-functioning and relevance, including the restoration of Appellate Body; and development issues should always be an integral part of the future reform process.
Item 6. PARAGRAPH 8 OF THE MINISTERIAL DECISION ON THE TRIPS AGREEMENT
On this agenda item, China would like to appreciate efforts made by all during the MC12 making the TRIPS waiver on vaccine, the gateway issue to many for the success of MC12. This outcome is not only helpful for promoting the accessibility and affordability of Covid-19 vaccine, but also demonstrates the good faith and cooperation within this organization.
With regard to the mandate contained in paragraph 8 of the Ministerial Decision, as a Chinese saying goes, “strike the iron while it is hot”, we should maintain the positive spirits and start our work immediately since there are only five months ahead of us.
China thanks the proponents for the room document circulated at the TRIPS Council meeting. We will make better use of summer break to conduct domestic consultations and analysis and be ready for the discussions after summer break with a view to delivering outcome in line with the mandate given by ministers at MC12.
I would like also take this opportunity to associate China with the statement made by Indonesia as G33 coordinator under Item 3 on the PSH.
Item 7. TRADE RELATED CHALLENGES OF THE LEAST DEVELOPED COUNTRIES AND WAY FORWARD
The smooth transition for graduated LDCs is one of the priority issues of the LDC Group. The 829 proposal has taken members’ views into account and shown positive engagement of the LDC Group. It is regretted that no substantial progress was made at MC12.
China will continue to grant preferential treatment to graduated LDCs and support their smooth transition.
As for the engagement post MC12, we call for constructive discussions and proactive engagement from all members. It is essential to ensure greater cooperation and better support every LDC with a view to achieving a sustainable graduation.
China will remain committed to help LDCs fully participate in the global recovery and minimize the negative impact of the COVID-19 pandemic, climate change and the continuing energy and food crises.
Item 8. PROPOSED GENERAL COUNCIL DECISION ON PROCEDURES TO ENHANCE TRANSPARENCY AND IMPROVE COMPLIANCE WITH NOTIFICATION REQUIREMENTS UNDER WTO AGREEMENT
Transparency is crucial for the proper functioning of the WTO. China thanks the US and other cosponsors for circulating this revised proposal with regard to transparency and notification. We welcome cosponsors’ efforts to address members’ concerns, including recognizing capacity constraints and particular technical assistance needs of developing members and LDCs, removing all administrative measures and counter notifications.
We also would like to thank the US and Canada for their bilateral engagement with us and responding our questions on the revised proposal. However, China still has some concerns on the revised proposal. For example, as there is no definition on complete notification, the word “complete” in paragraph 2 could lead to different interpretation and assessment on a member’s implementation of notification. Also on paragraph 3(e) regarding Secretariat’s report on updating the list of notification obligations and the compliance, we wonder here how the Secretariat will report compliance, what criteria the Secretariat is expected to use for assessing the compliance.
China is looking forward to further constructive dialogues with cosponsors on this proposal.
Item 9. STRENGTHENING THE WTO TO PROMOTE DEVELOPMENT AND INCLUSIVITY
We thank the co-sponsors for this renewed proposal. China supports this proposal and shares many views in this proposal on WTO reform.
First, the reform should respond to the development needs of developing members. It is essential to address the development deficit in the existing WTO rules, resolve the difficulties they encounter in their integration into economic globalization and help them respond to the unprecedented multiple challenges, including the pandemic, food security, supply chain disruptions etc. Special and Differential Treatment (SDT) is a treaty-embedded and non-negotiable right for all developing members.
Second, WTO Reform could only succeed with mutual trust and full respect of members’ differences, including diverse historical and cultural backgrounds, different economic models and development paths.
Third, the two-tiered dispute settlement system is essential to ensure security and predictability of the multilateral trading system. We welcome the recent informal discussions on dispute settlement reform led by the US and hope this exercise could help us to have a fully and well-functioning Dispute Settlement System by 2024.
Last but not least, the basic principles of the WTO, such as non-discrimination, openness and consensus-based decision-making should be well preserved.
Reform is never an easy task. The success of MC12 has provided us with an invaluable opportunity for WTO reform. Let us seize the opportunity to build momentum and confidence and work together for a well-functioning WTO.
