Adoption of WTO Ministerial Declaration... Fisheries Subsidy Negotiations Concluded After 21 Years (Update)

12th WTO Ministerial Conference Closes... 164 Member Countries Adopt Ministerial Declaration
WTO Reform Accelerates... Discussions to Restore Dispute Settlement by 2024
Fisheries Subsidy Negotiations Also Concluded... Effect Lost if Issues Unresolved Within 4 Years

[Image source=AP Yonhap News]

[Asia Economy Sejong=Reporter Lee Jun-hyung] The World Trade Organization (WTO) adopted a ministerial declaration at the 12th Ministerial Conference held in Geneva, Switzerland. The WTO decided to fully initiate WTO reform through this ministerial conference. The fisheries subsidies negotiations were also concluded after 21 years.

The Ministry of Trade, Industry and Energy announced that the ministerial declaration was adopted at the 12th WTO Ministerial Conference held in Geneva, Switzerland from the 12th to the 17th. The WTO Ministerial Conference is the highest decision-making body of the WTO, attended by trade ministers from all 164 member countries. Originally, the WTO Ministerial Conference is held every two years, but due to the impact of COVID-19, the meeting was postponed twice and was held for the first time in five years since 2017.

The ministerial declaration is the final outcome of the WTO Ministerial Conference adopted with the consent of all WTO member countries. At the 11th Ministerial Conference held in 2017, the adoption of the ministerial declaration failed due to differences in opinions between developed and developing countries. The ministerial declaration adopted at the 12th Ministerial Conference reaffirmed the fundamental principles of the multilateral trading system and emphasized the importance of inclusive trade.

The core issue is WTO reform. The ministerial declaration included content indicating the full-scale initiation of WTO reform. Specifically, through the ministerial declaration, member countries agreed to start work on reforming the three main functions of the WTO: rule negotiations (legislative), implementation and monitoring (administrative), and dispute settlement (judicial). They also agreed to hold discussions to normalize the WTO dispute settlement system by 2024.

The government expects that the restoration of the multilateral trading order will accelerate from this ministerial conference. A government official said, "The adoption of the ministerial declaration is meaningful in that WTO member countries confirmed their willingness for 'policy coordination,'" adding, "It is the result of member countries coming together to overcome the WTO crisis theory and to give momentum to discussions on restoring the multilateral trading system."

On the 14th (local time), Andeok Geun, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy, attended the 12th World Trade Organization (WTO) Ministerial Conference on fisheries subsidies held in Geneva, Switzerland (photo left).
[Photo by Ministry of Trade, Industry and Energy]

The fisheries subsidies negotiations were also concluded after 21 years. Previously, the WTO started negotiations on fisheries subsidies in 2001 to protect fishery resources, but no significant progress was made over the past 21 years due to disagreements among member countries. It is reported that WTO member countries reached an agreement on fisheries subsidies after intense discussions that extended two days beyond the originally scheduled closing day (the 15th) of the ministerial conference.

Under the WTO Fisheries Subsidies Agreement, subsidies prohibited include those related to illegal, unreported, and unregulated (IUU) fishing and overfished species. Provisions related to fuel tax exemptions, distant-water fishing subsidies, and special treatment for developing countries were not reflected in the agreement due to unresolved differences among member countries. Additionally, if more than two-thirds of the 164 member countries fail to agree on these contentious issues within four years after the agreement enters into force, the agreement will lose its effect.

The government expects that the WTO Fisheries Subsidies Agreement will have minimal impact on domestic fisheries subsidies. However, since the contentious issues that were not agreed upon at the ministerial conference are to be negotiated within four years after the agreement’s enforcement, the government plans to actively respond to future negotiations.

This content was produced with the assistance of AI translation services.