WTO-MC14: A saving exercise

The World Trade Organization (WTO) as a multilateral institution has been saved, for the time being, but at the cost of doing, and agreeing to do, almost nothing. 'WTO Reforms' was the catchword of 14th Ministerial Conference (MC14). Everyone agreed about the need for Reforms, but there was wide disagreement as regards what Reforms meant, be it in the context of WTO Decision Making Process (consensus based decision making process and founded on the principles of most-favoured nation or MFN, meaning favour one, favour all, and single undertaking meaning nothing is agreed unless everything is agreed), Level Playing Field and how to make Special and Differential Treatment (S&DT) provisions in the various WTO Agreements precise, operational and effective. 

The United States of America (USA) was adamant about 'Meaningful Reforms of the WTO' and about WTO transitioning to a platform for Plurilateral discussions. Most member countries were against 'Plurilateralising' the WTO. Developing country members argued against the concept of 'graduation' from S&DTs (which was supported by USA and a few other members), stressing that success and competitiveness in a particular sector or area does not compensate for structural weaknesses and vulnerabilities of a developing countries and Least Developed Countries (LDCs). 

India took the position of 'no' as regards many issues that were put on the table for discussion though in most cases justifiably so, to secure the interests of developing countries, small farmers and fishing folks and making the S&DTs meaningful. India's position was that 'Investment is not Trade' and thus should not be put on the discussion in the WTO forum. To note, Bangladesh has opted to join the plurilateral on investment which already had the support of 128 WTO members including 91 developing countries and 27 LDCs. Under current WTO rules, plurilaterals can become part of the WTO (Annex 4) if all members agree to this (but the disciplines are to be applicable only for the members who have signed on to it). India and a few other countries exercised the so-called veto power (without the support of all members of the WTO no plurilateral agreement can be part of the WTO Agreement). 

USA was also adamant about making e-commerce taxation moratorium, which has been in place since 1999, permanent. Most countries opposed because the moratorium deprives them of revenue from their e-commerce imports. Developing country interests are primarily defensive here, whereas interests of developed countries, being major exporters of e-commerce services, are offensive. 

Again, majority of members wanted to make TRIPS non-violation complaint moratorium permanent, while the USA and some other members opposed this. The moratorium provides developing countries, and LDCs like ours, to enjoy TRIPS flexibilities without the possibility of being dragged to the WTO Dispute Settlement Body ( on grounds of violating the Treaty). So almost all developing countries supported the proposal for making the moratorium permanent. 

A compromise option ('interim arrangement') was floated by some members suggesting that both the moratoriums be in place for next four to five years (any decision in this regard was to be taken following expiry of the interim arrangement period). But India and few other members strongly opposed this. No agreement could be reached at the end. 

Almost all countries supported the 'LDC  Package' (with a number of support measures towards strengthened global integration of LDC economies). USA was against this (particularly the element in the package supported by the African LDCs that proposed a longer LDC graduation transition period than what is there now: graduation following two successive and successful triennial reviews). 

After much haggling, at 2:00 am on Monday (March 30) morning (the conference was supposed to end at noon on March 29), a bare minimum consensus was arrived at for the MC14 Ministerial Decision. This included improving integration of small economies in multilateral trading system and making S&DTs precise, effective and operational in case of SPS and TBT mostly kicking the can down the road, including referring the all-important WTO Reforms issues and FISH 2.0 to be discussed in the Working Groups in Geneva. Since no agreement was reached as regards to e-commerce taxation moratorium, as of April 1, 2026 countries are free to impose taxes on e-commerce imports.

To note, the WTO-MC14 gave delegations such as that of Bangladesh to hold bilateral as also group-specific meetings and discuss issues of our particular interests. For Bangladesh, the conference was an important opportunity to seek support for the country's request for extension of the preparatory period for graduation from the LDC category, in which support of major blocs, such as the LDC Group, Africa Group and the EU, would be crucial. Bangladesh's Head of Delegation at MC14, the Minister for Commerce, was very active in pursuing the cause, and took active initiatives to advance Bangladesh's interests in connection with the above. One foresees that the current trend of regionalisation of global trade through the variable geometry of regional trading arrangements will strengthen further in the coming days. Against this backdrop, in the coming days, while remaining engaged in the WTO platform, and in the upcoming discussions in Geneva, Bangladesh will need to continue to proactively and aggressively pursue its policy of negotiating free trade and comprehensive economic partnership agreements. 

Professor Mustafizur Rahman is Distinguished Fellow, Centre for Policy Dialogue (CPD). mustafiz223@gmail.com [He was in in Yaoundé, the capital of Cameroon, to attend the four-day conference]