A number of measures have been implemented by Ministerial Decisions issued at the Tenth Ministerial Conference of the World Trade Organization (WTO) that concluded in Nairobi on 19 December 2015.
Preferences for LDC services
The waiver period during which WTO members (other than less developed countries) may depart from their most favored nation (MFN) obligation under the General Agreement on Trade in Services (GATS) has been extended for a further fifteen years to 31 December 2030. More than twenty WTO member countries have issued notifications granting preferences to services and service suppliers from less developed countries (LDCs). The Ministerial Decision also asks the WTO Trade in Services Council to encourage discussions among member states on technical assistance to increase the capacity of LDCs to participate in trade in services, and has set up a review to monitor the operation of preferences.
Preferential rules of origin
The conference adopted a decision to provide more detail on the methods for determining when a product qualifies as made in an LDC and when inputs from other sources can be combined in determining the origin of the goods. The decision calls on WTO members granting preferences to consider permitting the use of non-originating materials up to 75% of the final value of the product.
The decision also asks preference-granting members to examine the possibility of simplifying the documents and procedures relating to the origin of goods.
Export subsidies
A Ministerial Decision on Export Competition includes a commitment to eliminate export subsidies for agricultural exports. The decision aims to eliminate existing subsidies and prevent any resort to this type of export support in the future.
Under the decision developed countries have made a commitment to remove export subsidies immediately on agricultural exports (apart from a few agricultural products) and developing countries will eliminate agricultural export subsidies by 2018. Developing countries will retain the ability to cover the marketing and transport costs for agricultural exports until the end of 2023 and extended time limits would be granted to the very poorest countries.
Food Stockpiles
A decision on public stockholding for food security purposes commits WTO members to engage in finding a solution to this issue. The Ministerial Conference of 2013 in Bali permitted developing countries to continue food stockpile programs until a permanent solution is to be found in 2017. Without this measure food stockpiling could breach the WTO’s domestic subsidy cap.
Special Safeguard Mechanism
A Ministerial Decision recognizes that developing countries continue to have the right to temporarily increase tariffs to deal with import surges by using a special safeguard mechanism (SSM). Negotiation of the SSM will continue in the Agriculture Committee.
Cotton
A Ministerial Decision on Cotton emphasizes that cotton is important for LDCs. The Ministers have called for cotton to be given duty free and quota free access to markets of developed countries by 1 January 2016. The Ministers acknowledge reforms made by members in domestic cotton policies and call for more efforts in this sector. The Decision mandates developed countries to immediately prohibit cotton export subsidies and this should also be done by developing countries at a later date.
