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ITEM 3A(VII). INTRODUCTION TO CHINA’S PROPOSAL OF “SMALL STEPS TO MAKE A DIFFERENCE”
China, along with Australia and Thailand, has the honour to introduce the communication entitled “Small Steps to Make a Difference” circulated in WT/GC/W/879/Rev.2. Though it is the first time of this proposal being submitted to GC meeting, as it was circulated before retreat, I assume most of colleagues are quite familiar with it. So I am just going to highlight some key messages in the interest of time.
The proposal gives suggestions on 4 areas for the purpose of improving the WTO’s deliberative function and facilitate members’ participation in WTO’s daily work, especially for small delegations, including LDCs.
l No. 1, on better conducting meetings for better participation. With many suggested measures on the table, we suggest the Secretariat to categorize these measures. Based on it, the Secretariat should be given the discretion to take step on those suggestions which could be implemented within the Secretariat’s mandate and capabilities. In this regard, we are pleased to note that GC chair held discussions with the Secretariat and has recommended 10 horizontal measures for councils and committees to implement.
l No. 2, on Ministerial Conference. We support enhancing Ministerial Conference’s decision-making function by holding inter-sessional Vice-Ministerial level senior official meetings or thematic Ministerial Meetings at appropriate time. To de-dramatize MC, we strongly suggest to hold a Vice-Ministerial level meeting 2-3 days prior to MCs. We are pleased this suggestion has gained broad support among members. We hope it could be agreed and scheduled when we are approaching MC13.
l No. 3, on GC. To improve the discussing efficiency and highlight the decision-making function of General Council, our proposal gives suggestion on the sequencing of agenda items. We suggest that new submission should come first, but submission within the purview of a relevant council or committee should first be taken up and considered in that council or committee. For re-submitted proposals that have not garnered consensus yet, interventions should be limited, and other formats of discussions, such as thematic or informal discussions should be organized when needed.
l No. 4, on external engagement. The proposal emphasizes the importance of enhancing external engagement while adhering to important principles. For example, engagement of external stakeholders is balanced and all voices are heard; the decision-making process should always remain member-driven; when cooperating with other international organizations, the WTO should play the role on its own merits and within its mandate, synergizing rather than duplicating work of other organizations or overburdening WTO’s own agenda.
ITEM 3A. MC12-WTO REFORM
I would like to start by touching upon a general issue. When I saw the agenda, with so many proposals under this item, I can’t help asking what is the best way to address all these proposals? I am sure in the next GC, more proposals will come. How to have well guided discussions? Maybe it is worthwhile to spend time to discuss. Suggestions in our proposal could be part of solution.
Now I come back to the comments on your report and other proposals.
l First, on procedural suggestions. On procedural issues, we strongly suggest to give GC chair and the Secretariat leeway to work on that. China welcomes the list on horizontal measures recommended by the GC chair. It is well-noted that some measures have already been applied by WTO councils and committees, including GC itself. We encourage GC chair and the Secretariat to continue to do so. The table prepared by the Secretariat and its updating are also encouraged.
l Second, on Ministerial Conference, China has co-sponsored the proposal of “Maximizing the Value of Ministerial Conference”. We should de-dramatize MC, at the same time, continue to preserve and enhance its decision-making function. For the annual MC, we believe, when Ministers come to the meeting, they are expecting meaningful discussions and deliverables. Otherwise, they may lose interest in it.
l Third, on African Group’s proposal on Dispute Settlement reform, we always believe that developing member’s participation is important. In the end of the day, as we always believe, a good DS mechanism means “small ones can win cases against big ones”. To bring the DS back to the normal function, ensuring all members can exercise equal opportunity in protecting their rights should be our priority. With the fast-approaching deadline and the heavy tasks ahead, we appreciate the facilitator Mr. Molina’s efforts and leadership. In the meantime, we fully understand the restraint of small delegations. Sometimes, it could also be a challenge to big delegations. In the coming months up to MC13, meeting clash would happen more frequently. Therefore, we encourage chairs and facilitators to have meetings well planned as far as possible.
l Fourth, on EU’s proposal, we are open to having discussions on trade-related emerging issues. However, for some controversial issues, like state intervention, before we decide to establish a dedicated discussion in the WTO, there needs a kind of basic educational exercises through seminars, workshops and other informal formats to build common understanding on the issue we are going to discuss. Such kind of informal exercise will also help us identify appropriate approach for further work. All in all, when we are going to launch discussions on controversial issues, we have to ensure they will be pragmatic, constructive and result-oriented, rather than antagonistic.
Last but not least, Chair, thank you for also briefly touching on other WTO reform topics. Revitalizing WTO negotiation function has always been an important part of the WTO reform. At the beginning of this month, here, in this CR room, we successfully concluded the text negotiation on Investment Facilitation for Development. This initiative counts over 110 participating WTO members, with more than two-thirds of WTO members, including more than 70 developing members with 20 LDCs. As an inclusive and pro-multilateral initiative, outreach will continue to be our next priority. In the meantime, we will start discussions on the legal incorporation of this Agreement into the WTO legal architecture. In this process, we need intensive technical discussions. But as a development nature agreement, with so many developing members including LDCs who support it, need it, and more other developing members are giving positive consideration to joining it, we don’t see there is any reason that the legal incorporation would be blocked.
ITEM 3B. MC12-WORK PROGRAMME ON E-COMMERCE
China thanks Ambassador Usha Dwarka-Canabady for her efforts in facilitating the e-commerce Dedicated Discussions. Our thanks also go to the African Group for their proposal WT/GC/W/875/Rev.1.
China agrees with the proposal that General Council should play a central role in the whole process. China supports the suggestion of setting the Work Programme as a standing item in relevant bodies. Therefore, we suggest the coordination among CTG, CTS, TRIPs Council, CTD and the Dedicated Discussions should be enhanced to avoid duplication of work.
With members’ intensified engagement in the development-oriented E-commerce Dedicated Discussions during the first half of 2023, China is pleased to see that the MC12 Ministerial Decision has been faithfully implemented, particularly in line with the development dimension. Meanwhile, we recognize the value of the moratorium Dedicated Discussions and the workshop in early June, which helped us better understand its implications. China supports extending the moratorium again, and we encourage all members to work in a constructive and cooperative manner with a view to delivering a positive MC13 outcome, including continuing the moratorium.
China notes that the WTO Secretariat is working on a joint study regarding digital trade with other international organizations, and Moratorium is one of the key issues in this study. China supports this kind of study. China hopes that the analysis would be conducted in a neutral and objective way so as to find common grounds to facilitate further discussions and build consensus.
ITEM 3D. MC12-PARA 24 OF MINISTERIAL DECLARATION ON RESPONSE TO COVID-19 PANDEMIC AND PREPAREDNESS FOR FUTURE PANDEMICS
The MC12 “Declaration on the WTO Response to the Covid-19 Pandemic and Preparedness for Future Pandemics” instructed relevant WTO bodies to continue or initiate work as soon as possible on the basis of Members’ proposals, and for the General Council to undertake a stocktaking exercise of the work by the relevant WTO bodies yearly until the end of 2024.
China welcomes the ongoing pandemic-related work across relevant WTO bodies. We are encouraged that members have tabled proposals at relevant WTO bodies and shared their experiences through thematic sessions. This is very useful. It helps members to better understand the role that WTO has played in response to the pandemic. It also enables members to draw lessons learned from the pandemic and identify possible solutions to get prepared for future pandemics.
The Covid-19 pandemic will not be the last pandemic. We call upon members to continue and step up the work on this matter with a view to formulating possible best practice, guidelines and manual to manage future pandemics. China will continue actively participating in the relevant discussion and make our contribution.
In addition, we recently circulated a proposal on strengthening the resilience and stability of global industrial and supply chains, calling for eliminating Covid-19 pandemic related trade restriction measures to avoid the disruption on global industrial and supply chains. We will elaborate this proposal later under the item 10.
ITEM 6. PROPOSAL FOR WTO SMOOTH TRANSITION MEASURES IN FAVOUR OF COUNTRIES GRADUATED FROM THE LDC CATEGORY
For LDCs’ graduation, we would like to encourage relevant parties to continue working together with a view to reaching consensus on Annex 1 as early as possible. And China is ready to participate in Annex 2 discussion.
ITEM 7. FOOD SECURITY THROUGH AGRICULTURAL REFORM: TOWARDS AGRICULTURAL OUTCOME AT MC13
China thanks those Latin American members for submitting the proposal. Food security of developing members is one of the rising and pressing global challenges today. One of the lessons we learned from the MC12 negotiation is that, taking into account the multiple difficulties we are facing, a substantial food security outcome package with practical ambition might be the most realistic way we should try to achieve. Considering there is only limited time left, we hope members to start this work without any further delay.
China always supports the improvement of food security of developing members through reforming the Article 20 of the AoA, correcting the unfair and asymmetric rules for developing members, which is why we ask to eliminate the AMS beyond de minims to level the playing field in the domestic support negotiation.
Compared to nearly 30 years ago, fundamental changes have taken place in the international agricultural market. As food security and climate change have emerged as the key concerns of members, China is of the view that technical analysis and discussion should be conducted among members on how to define “real distortion” in the current sictuation, how to objectively reform the agricultural sector for better food security and better environment without negatively impacting global gross agricultural production and other members’ food security. Only by reaching consensus on these fundamental concepts in agriculture could we find a way forward.
At the same time, China also underscores the positive and critical role of reasonable outcomes on PSH and SSM in ensuring the food security of developing members.
ITEM 8. PRINCIPLES GUIDING THE DEVELOPMENT AND IMPLEMENTATION OF TRADE-RELATED ENVIRONMENTAL MEASURES
China welcomes the proposal from African Group and their suggestions for improving functions of the CTE.
Today, nobody can deny climate change has become a pressing challenge for humankind. To address this challenge, the WTO cannot be left behind.
In this regard, it is an opportune time to revitalize the CTE. Especially, China supports holding dedicated discussions on trade related environmental measures under the CTE, as such measures become increasingly intertwined, and could have significant impacts on international trade, supply chains and development.
Considering developing members are more vulnerable to the adverse effects of trade related environmental measures compared to developed ones, it is necessary to take into account the interests and benefits of developing members when designing and implementing such measures.
Regarding principles guiding the development and implementation of trade-related environmental measures, China agrees with those suggested in the proposal, such as Common but Differentiated Responsibilities and Respective Capability, Historical Responsibility, and Environmental Impact Assessment. We look forward to more in-depth studies on the integration of such principles and WTO rules from African Group and more discussions in the CTE.
China encourages African countries to actively participate in discussions on various environmental issues with an open and forward-thinking mindset, to advance the UN 2030 Agenda and achieve the Sustainable Development Goals (SDGs).
ITEM 9. POLICY SPACE FOR INDUSTRIAL DEVELOPMENT - A CASE FOR REBALANCING TRADE RULES TO PROMOTE INDUSTRIALISATION AND TO ADDRESS EMERGING CHALLENGES SUCH AS CLIMATE CHANGE, CONCENTRATION OF PRODUCTION AND DIGITAL INDUSTRIALISATION
We would like to join others in thanking African Group’s contribution. On the proposal on rebalancing the agreement of ASCM, China is very much aware of the serious challenges that African countries are facing, such as food security, energy crises, supply chain disruptions, climate change, etc. The development deficits are making the gaps between the developed and developing even wider. That’s why we fully recognize the significance of providing policy space for developing members to pursue social and economic goals.
We've all noticed the recent trend on subsidies. On the one hand, more and more WTO Members stress green development and adopt supportive policies, including subsidies, to promote production and consumption of clean energy. On the other hand, some developed members are granting huge amounts of subsidies to protect and develop certain strategic sectors of their economy. Many of those subsidies are accompanied by protective and distortive measures. In light of these developments, we believe that it is imperative for developing members to defend their policy space within the WTO to prevent further imbalances. If global trade is based on economic power rather than rules, developing members, particularly African countries and LDCs would be the most vulnerable and suffer the most.
China is open to discussions on industrial subsidies in the WTO. The proposal of the African Group is certainly a valuable contribution to this discussion. We would like to promote the development of the global governance system in a fair and reasonable direction, and make concrete contribution to achieving the UN SDGs. Regarding the concerns raised in the proposal, China is ready to have further exchange of views with African Group.
On the proposal on technology transfer, like many others, we recognize the important role of transfer of technologies in addressing global challenges and developing issues, especially for African members. Our Capital is still studying the ideas and elements proposed in the papers. We are willing to enhance information exchange and practices sharing in this regard, and engage in the following discussions in an active and constructive manner.
On the proposal on re-balancing the agreement TRIMS, the proposal provides us a new perspective on analyzing the TRIMS agreement and will enhance members’ understanding and implementation on TRIMS agreement.
We share the view of the proponents that developing members are facing various challenges in the process of industrialization and structural transformation. We believe that WTO should focus more on development and promote more public goods to developing members to address the challenges they face and achieve sustainable development. In this regard, the Investment Facilitation for Development is one of good examples. We urge all members to actively support and join in the IFD Agreement.
We are currently conducting a comprehensive review on this proposal, including its 6 detailed suggestions. We look forward to the detailed discussion and will constructively engage with the proponents on this matter.
ITEM 10. INTRODUCTION TO CHINA’S PROPOSAL OF STRENGTHENING THE RESILIENCE AND STABILITY OF GLOBAL INDUSTRIAL AND SUPPLY CHAINS
Firstly, please allow me to present you a figure. Before the meeting, we searched on a widely used searching engine for two keywords, namely, “supply chain connectivity” and “supply chain disruption”. The result was startling. “Supply chain connectivity” took up nearly 3.5 million searches, while “supply chain disruption” took up 5.7 million searches. This highlighted the significance and urgency of initiating discussions on industrial and supply chain issues.
Now I would like to introduce the purpose of this communication. As is noted by all, the global industrial and supply chains have been severely impacted in the recent years. As a result, many WTO Members have been encountering difficulties in their economic growth and trade development. Developing members, especially the least developed country members are the most severely inflicted due to financial, technological and information constraints, and MSMEs bore the hardest hit. What’s even worse, we have no sign of positive reverse to that trend. The business sectors have even depicted supply chain disruptions with wordings like “perpetual storm” “new reality” and so on and so forth.
The disruptions on industrial and supply chains have aroused widespread concern among WTO Members. The Ministerial Declaration on the WTO Response to the COVID-19 Pandemic and Preparedness for Future Pandemics adopted at MC12, has repeatedly called upon trade measures not to create unnecessary disruptions on supply chains. Leaders and Ministers have consistently stated the merit of strengthening supply chain resilience and avoiding trade disruptions at G20, APEC, BRICS and other international fora.
China believes that, maintaining the stability of the global industrial and supply chains, has become an urgent concern for the vast majority of WTO members. Only by working together through multilateral cooperation can we restore the stability of global industrial and supply chains and better promote post-pandemic economic recovery and social development. Our collective effort would also contribute to the objectives enshrined in the Preamble of the Marrakesh Agreement Establishing the WTO, which includes: “expanding the production of and trade in goods and services” and “allowing for the optimal use of the world’s resources”.
To this end, China calls on Members to issue a joint statement at MC13 to send a political signal to the outside world that, WTO firmly supports the resilient and stable running of the global industrial and supply chains and advocates cooperation in 12 potential action areas. Among the 12 areas, some focus on general principles such as articles 1 and 2 on which Members have expressed similar views in several occasions. Some propose more specific cooperation covering trade facilitation, services, technological innovation and cooperation, green and low-carbon development and digital economy. During the drafting of the proposal, China fully takes into account the concerns of developing members and MSMEs. We encourage Members to carry out capacity building and information sharing to help developing members and MSMEs better integrate into the global and regional industrial and supply chains. In this regard, we commend DG for her outreach effort in establishing the Business and Civil Society Advisory Groups. We encourage the Secretariat to strengthen communication with businesses, academia and other international organizations to formulate recommendations on this issue.
China looks forward to the valuable comments and suggestions from all Members. With our collective efforts, China believes that the WTO would play an important role in contributing to the stability and resilience of industrial and supply chains.
ITEM 11/12. ACCESSION OF COMOROS AND TIMOR-LESTE
First of all, China joins others in thanking Ambassador Omar ZNIBER and Ambassador Rui MACIEIRA for their comprehensive and informative report on the accession of Comoros and Timor-Leste respectively, as well as their outstanding leadership and efforts on advancing the accession negotiations. We highly appreciate and are deeply encouraged by the substantial progress achieved on the accessions of Comoros and Timor-Leste, especially that both of them have reached the final stage and could be finalized in MC13.
Today’s meeting reminds me that the latest member acceded to the WTO dates back to 29th July 2016, 7 years ago. While we enjoy mutual benefit and joint development here in the WTO, we should not neglect that there are 24 acceding governments isolated from multilateral trading system and pursuing their WTO membership arduously for many years, most of them are waiting more than two decades, and the majority of them are LDCs.
China is always committed to supporting the WTO accession and providing necessary assistance to acceding governments. In particular, we highly appreciate WTO Secretariat’s persistent efforts in performing China program and organizing the China Round Table on WTO Accessions since 2011.
Looking ahead on the road to MC13, China hopes both Comoros and Timor-Leste could break the ice and inject new vitality to the WTO. Furthermore, we believe the 12th China Round Table to be held on the margins of MC13 could play a constructive role in supporting and facilitating more accessions.
