DDG Ellard outlines progress on WTO negotiating and reform priorities at APEC ministerial

Excellencies,
Ladies and gentlemen,

I first would like to thank Minister León, Minister Schialer, and Peru for their extraordinary hospitality and for steering our valuable discussions. I send greetings from Director-General Okonjo-Iweala, who is in Baku for COP29 meetings.

The explosive economic growth in the APEC region is firmly supported and catalyzed by the rules-based multilateral trading system, with the WTO at its heart. APEC economies have been steadfast champions of a strong WTO. I am deeply grateful for your commitment to ensuring that the WTO remains relevant, adaptable, and resilient in addressing both current and future trade challenges.

As APEC leaders recognize, reforms are necessary to improve all of the WTO’s functions.

Your delegations in Geneva are working diligently to achieve key negotiating outcomes, reform the dispute settlement system, and enhance the functioning of the Organization to benefit all its Members.

Let me outline several priorities.

First, Members have achieved remarkable progress in the “second wave” of fisheries subsidies negotiations. Through tremendous efforts and constructive engagement, Members have successfully moved a long way from wide-ranging positions to a point of a highly mature text.  Although we haven’t reached consensus yet, we came closer than ever at MC13 and the July General Council meeting.  In his communication of 13 September, Chair Amb. Gunnarsson of Iceland expressed the view that the vast majority of Members see the possibility to conclude this year on the basis of the latest text (TN/RL/W/279), with some additional adjustments in three specific and well-socialized areas, plus the transition period. However, a few vocal Members have expressed skepticism, with one continuing to question the basic approach of the negotiations.

At this point, the question is whether Members have the political will to finish by December. I encourage you and your leaders to work with those not yet fully on board – high political engagement is the only way we will succeed.  If we do not, the concern is that the effort may drift and the existing text may become unstable. . But it is still possible to achieve an outcome, and I hope to work with you to make it happen.

The second priority is the entry into force of the Agreement on Fisheries Subsidies concluded at MC12. We need 111 Members to deposit their ratifications. We now have 86, with 25 remaining. More than half of APEC Members have already done so — thank you for your leadership. I urge the remaining ones to do so swiftly, so that this Agreement can begin delivering benefits to our oceans and people. For developing WTO Members, acceptance makes them eligible for assistance under the Fish Fund once the Agreement enters into force, and I should thank the APEC Members who have contributed to the Fund.

Third, dispute settlement reform stands as a top priority on the WTO agenda, with a Minister-set deadline for completion by the end of 2024. The facilitator of the formal process, Ambassador Usha Dwarka-Canabady of Mauritius, is working with six expert-level co-convenors selected by Members to address key outstanding issues, particularly appeal/review and accessibility. Drafting is already underway in areas with high convergence, while technical discussions continue on more complex issues. Members are working with dedication to meet the year-end goal, and I am deeply grateful to all of you for your commitment to this crucial work. But we have only one month left. 

In the meantime, the WTO continues to be the primary forum for resolving trade disputes. We’ve seen an uptick in negotiated solutions. Dispute settlement proceedings are underway in 6 disputes, and there are 12 ongoing consultations. At the same time, more than 30 disputes are pending before a non-functioning Appellate Body.

Fourth, agriculture is a key priority for many Members. As you know, following MC13, Brazil initiated a process aimed at adopting a decision at the July General Council, to provide clear guidance and a timeline for negotiations leading up to MC14. In the absence of consensus on this draft decision, Members considered appointing facilitators to guide negotiations in the seven relevant areas, but consensus has remained out of reach. Given the urgency, the Chair has encouraged Members to continue engaging in various configurations to explore options for bridging the persistent gaps.

Our fifth priority is finding a way to incorporate the Investment Facilitation for Development (IFD) Agreement into the WTO rulebook. The IFD Agreement currently has 126 WTO Members as parties, including 90 developing and 27 LDC Members. It aims to foster sustainable development by improving the investment climate through greater transparency and predictability and to facilitate investment flows, particularly to developing and LDC Members. I congratulate the APEC Members participating in the IFD Agreement, especially the two co-coordinators, Chile and Korea, on this significant achievement. We also express appreciation to those who are not participating but support integrating the Agreement into the WTO rulebook.

Sixth, significant progress has been made in the Joint Initiative on e-commerce, in which most APEC economies participate, particularly with the stabilized text circulated in July. Congratulations to the co-convenors – Australia, Japan, and Singapore – for their hard work and leadership. It is essential that we maintain high-level engagement to finalize this text and move to its incorporation into the WTO framework. This will be a key milestone for the WTO and global trade given the significance of digital trade for growth and development.

Furthermore, engagement continues under the multilateral Work Programme on Electronic Commerce, as outlined in the MC13 Decision, to be completed by the next Ministerial Conference. It is now up to Members to engage meaningfully and present concrete recommendations for MC14.

On the moratorium on collection of duties on digital transmissions, I encourage you to engage in an open dialogue and explore elements that could help establish a common ground to advance on this issue. The moratorium expires on 31 March 2026 or MC14, whichever is earlier. On 9 December, we will hold a dedicated discussion on this topic.

Lastly, I would be remiss not to mention that as we speak today, COP29 is underway in Azerbaijan. Trade-focused discussions are taking place during Climate Finance, Investment, and Trade (FIT) Day. The WTO Secretariat is supporting these deliberations on trade and climate through knowledge products and events co-organized with other international organizations. We are committed to helping you, our Members, integrate trade into your climate policies. Through the WTO Committee on Trade and Environment, Members are addressing key issues in sustainable energy transitions and climate-related trade measures. Ongoing initiatives also focus on circularity and plastic pollution. The Secretariat is fostering Member engagement and development of domestic policies on environmental goods and promoting decarbonization standards in sectors like steel and renewable hydrogen.

Excellencies, APEC’s leadership is indispensable to strengthen the multilateral trading system and the WTO, as well as to advance the vital initiatives I have outlined. Your continued guidance, leadership, and commitment are crucial to ensuring that we can navigate the challenges and drive the collective progress needed to benefit all WTO Members and their people. But please remember that the relevance, capacities, and effectiveness of the WTO cannot be taken for granted.  It’s in your hands.

Thank you for your unwavering support.

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