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Economicsthird World ECONOMICS No Third ECONOMICSThird World ECONOMICS No. 729, 16-31 August 2021 World Trends and Analysis No.729 16-31 August 2021 e-ISSN : 27165388 Differences dog WTO membership Trade diplomats at the WTO head into the summer break still divided over a host of negotiating issues ahead of the organization’s Ministerial Conference this November. These faultlines were in evidence during discussions at the final WTO General Council meeting before the recess. l WTO members remain divided at General Council — p2 .......... ALSO IN THIS ISSUE .......... Taxing the billionaire bonanza Central banks must address pandemic challenges The global minimum corporate tax: Not high enough, not fair enough 1 THIRD WORLD CURRENT REPORTS I WTO Third World ECONOMICS No. 729, 16-31 August 2021 Economics Tren d s & A n a l y s i s WTO members remain divided at 131 Jalan Macalister 10400 Penang, Malaysia General Council Tel: (60-4) 2266728/2266159 The most recent meeting of the WTO’s governing body revealed Fax: (60-4) 2264505 persistent differences among member states over issues ranging from Email: [email protected] Website: https://twn.my a COVID-19 intellectual property waiver to preferential treatment for developing countries. by D. Ravi Kanth C O N T E N T S CURRENT REPORTS GENEVA: The members of the World the coordinator of the Ottawa Group. He WTO members remain divided at Trade Organization concluded the last said these documents contained a wealth General Council — p2 General Council (GC) meeting before the of information, adding that so far some summer break on a somewhat sombre and 25 documents had been submitted to the divisive note, failing to converge on the GC. Agri chair’s draft ministerial major agenda items that were discussed, The facilitator said that he would decisions could harm interests of said people familiar with the discussions. hold thematic discussions on export South — p6 These topics included the TRIPS restrictions, trade facilitation, and reforms waiver, the work programme on involving transparency and notifications, Taxing the billionaire bonanza — p9 electronic commerce and moratorium on suggesting that these issues would be imposing customs duties on electronic useful to kick off work when members OPINION transmissions, and the WTO’s response return after the summer break. to the pandemic. He further said that he would Central banks must address WTO Director-General Ngozi discuss operationalizing cooperative and pandemic challenges — p11 Okonjo-Iweala spoke during the 27-28 collaboration agreements, the Director- July meeting on how to remain optimistic General’s recent meetings with Big Analysis and focus on three or four areas. The Pharma and the role of the private sector areas included the fisheries subsidies in ensuring access to medicines to tackle The global minimum corporate tax: negotiations, the agriculture work the pandemic. Not high enough, not fair enough — programme, and special and differential Responding to the facilitator’s p13 treatment. She acknowledged that there report, India’s Ambassador to the WTO were wide gaps and members’ positions Brajendra Navnit expressed concern over remained far apart. She urged members bringing in market access issues as part to accelerate negotiations once they come of the WTO’s response to the pandemic, back in September after the break. said people familiar with the discussions. Ambassador Navnit appears to COVID-19 response have said that there are too many proposed “deliverables”, emphasizing Several developing countries the need to exclude the market access cautioned the facilitator tasked to lead agenda. Such an agenda will deny policy WTO members in finding a multilateral space to developing countries, he is THIRD WORLD ECONOMICS and horizontal response to the COVID- understood to have said. Moreover, the is published fortnightly by the Third 19 pandemic not to bring in market proposed measures impose onerous and World Network (TWN), an independent access issues by including proposals cumbersome obligations that could only non-profit international research and tabled by Singapore and Jamaica, as well serve a few countries in the name of the advocacy organization involved in as from the Ottawa Group of countries pandemic. bringing about a greater articulation of led by Canada, said people familiar with Further, issues like export restrictions, the needs, aspirations and rights of the the development. temporary elimination of tariffs that peoples in the South and in promoting At the GC on 27 July, the GC- becomes a permanent measure, and just, equitable and ecological appointed facilitator, Ambassador David stringent transparency and notification development. Walker from New Zealand, presented an requirements will not address the problem Editor: Chakravarthi Raghavan initial report on his recent consultations of access to vaccines, therapeutics and held with members. He mentioned the diagnostics, nor access to food. Editorial Assistants: Lean Ka-Min, T. Rajamoorthy, Chee Yoke Heong proposal prepared by Singapore and The facilitator’s approach could also Jamaica, as well as that on trade and lead to flight of these finished critical Visit our website at https://twn.my/ health issues as presented by Canada, products to the highest bidder, thereby 2 CURRENT REPORTS I WTO Third World ECONOMICS No. 729, 16-31 August 2021 making them inaccessible to resource- submitted. Notwithstanding the text- worsening pandemic.” poor people all over the world, Navnit is based negotiations, she said that “while He said that “IP rights are not understood to have said. we deal extensively on ‘scope’, ‘duration’, absolute, they are subject to public The Indian envoy stressed that the ‘implementation’ and on protection of interest, and such public interest exists WTO’s response to the pandemic has to information, we must understand that the n ow.” include the TRIPS waiver. He urged the negotiation by itself is not an achievement “The TRIPS waiver should be our facilitator to include the high volume of but rather the outcome of the negotiation way, the members’ way, to uphold public work done on the waiver and food security will be.” interest and the livelihood of so many” due to the growing problem of hunger. Therefore, she said, the African countries, he said. He suggested that a simple, efficient Group calls for “the expediting and Chad on behalf of the least-developed and permanent solution for extending prioritization of solutions-oriented text- countries (LDCs), Bangladesh, Nepal, public stockholding (PSH) programmes based negotiations,” and calls on the Afghanistan and many other developing for food security to new programmes TRIPS Council to “urgently conclude countries supported the call for expediting and new products must remain a major these so as to facilitate the diversification work on the waiver. deliverable at the WTO’s 12th Ministerial of production across different locations India lamented that due to the Conference (MC12), which is due to take and increase production and supply of positions adopted by certain members, place in November. life-saving vaccines and related products. the landing zone on the waiver could It is in global public interest to do so.” not be reached before the summer break. Call for TRIPS waiver “Access to products and technology India is understood to have said that a in the manufacturing of vaccines remains handful of countries continue to oppose During the GC discussion on the critical and the WTO membership must the waiver on grounds that the IP system TRIPS waiver, around 30 out of 39 expeditiously come together to achieve has contributed to innovation and rapid countries that spoke called for an urgent the desired outcome in favour of the development of vaccines. resolution of the issue, according to TRIPS waiver,” she said. The European Union touted the use of people familiar with the discussions. Canbady argued that “the WTO and voluntary licences and the contributions Presenting his report to the GC, the WTO membership need to have a it has made to supporting new technology the chair of the WTO’s TRIPS Council, response to the COVID-19 and the IP hubs in Africa, particularly in South Ambassador Dagfinn Sorli from Norway, [intellectual property] waiver must be a Africa, Senegal and Rwanda. It spoke said that the waiver discussions will be central part of the response.” about BioNTech and Pfizer’s agreement continued in September. The report said She called for “policy coherence and with the South African company BioVac, that there are differences over the issues action coherence globally, involving the saying that there are about 300 companies of duration, scope and other elements of WTO, WHO and other international that have entered into voluntary licensing the proposed waiver. organizations to find real solutions to agreements. South Africa’s Ambassador Xolelwa the global pandemic affecting seriously The EU appeared to issue a subtle Mlumbi-Peter made a strong statement developing countries, including African threat to the waiver proponents, saying on the need for the waiver and why the countries which do not have access to that a waiver could undermine voluntary issue of intellectual property has to be a vaccines and therapeutics.” licensing agreements signed with Big main component of any decision on the “This is a real issue for Africa and Pharma, said people familiar with the WTO’s response to the pandemic. the emotion we heard this morning in discussions. She touched on several issues the intervention of the South African The EU claimed
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