State Minister Hosoda Visits the Swiss Confederation (12th WTO Ministerial Meeting)

1. The 12th WTO Ministerial Meeting

(1) Outline

• The 12th WTO Ministerial Meeting (MC12) was held in Geneva, Switzerland from June 12 to 17. As representatives of Japan, State Minister Hosoda, Mr. Takebe Arata, State Minister of Agriculture, Forestry and Fisheries, and Mr. Miyake Shingo, Parliamentary Vice-Minister for Foreign Affairs, attended.
• The WTO Ministerial Meeting is a biennial meeting of trade ministers from WTO members (164 countries and regions). This year's meeting marks the first one in four and a half years since the 11th Ministerial Meeting in 2017, after being postponed several times.
• At the meeting, discussions were held on issues such as the response to the pandemic, food security, and WTO reform. Following the meeting, a Ministerial Declaration was adopted.

(2) Comments by State Minister Hosoda

State Minister Hosoda said the following points in sessions on the themes of challenges facing the multilateral trade system and of WTO reform.

(Challenges facing the multilateral trade system)

• Russia's invasion of Ukraine is an attempt to unilaterally change the status quo by force and is a clear violation of international law. Japan has made clear that this is completely unacceptable and condemns it in the strongest terms, and has imposed strict sanctions so that Russia stops its invasion as soon as possible.
• The recent invasion has caused oil and gas supply sources to be unstable and is a threat to the food security of all countries. The export restrictions for securing goods into the country should be minimum and limited to as few targets as possible. It is important to maintain an open, predictable market free of unfair export controls.
• The WTO has the ability and responsibility to address many issues, such as responses to the pandemic, climate change, and digitalization, in addition to updating the current WTO rules.
• The WTO is the only international organization capable of tying together a world economy divided by Russia's invasion of Ukraine and the spread of COVID-19, and creating international rules in response to changes in the economic environment.

(WTO reform)

• The WTO was established more than 20 years ago, and with the situation surrounding the multilateral trading system having changed significantly, there is no choice but for the WTO to undergo reform in order to respond to modern challenges.
• On strengthening the negotiation function, the method whereby like-minded countries flexibly establish and discuss negotiations should be utilized more actively. In doing so, it is important to ensure openness, inclusion, and transparency to all member states, whether they are developed or developing countries.
• The e-commerce negotiations, which Japan co-chairs, are working to develop rules for digital trade in order to achieve data free flow with trust. In addition to the services domestic regulations agreed to last year, these initiatives will show that the WTO functions effectively in making new rules. Discussions also began on environmental sustainability. The WTO should start discussions on achieving a level playing field at an appropriate time ahead of MC13.
• The dispute settlement system also needs reform as soon as possible. There are concerns that if the WTO remains unable to fully function during the Appellate Body's continued absence, governance of international order under the WTO's rules could be lost. Japan expects that the ministers will work toward restoring the WTO's functions in time for MC13.

(3) Outcome documents

• The outcome document of the 12th WTO Ministerial Meeting (June 12, 2022 )
• Statement by Minister Hagiuda on the 12th WTO Ministerial Meeting (June 17, 2022)

2. Attending the informal ministerial breakfast meeting on trade, climate, and sustainable development

The four co-conveners—Ecuador, the EU, Kenya, and New Zealand—organized an informal ministerial breakfast meeting on trade, climate, and sustainable development held on June 12, where trade ministers of countries committed to combating climate change and related issues gathered.
At the meeting, participants held discussions on how to contribute to the fight against climate change from a trade perspective. State Minister Hosoda pointed out the need to disseminate products and technology that will contribute to combating climate change, and the importance of coordinating policies to expand the green market.

3. Meetings with participating ministers and others

State Minister Hosoda exchanged views with Dr. Ngozi Okonjo-Iweala, Director-General of the WTO; H.E. Dr. Majid Bin Abdullah Al Qasabi, Minister of Commerce and Investment (Saudi Arabia); Ms. Chawe Mpande, Permanent Secretary at Ministry of Commerce, Trade and Industry (Zambia); H.E. Mr. Abdullah bin Touq Al Marri, Minister of Economy (United Arab Emirates); Mr. Bernd Lange, Chair of the European Parliament Committee on International Trade; Senator Tim Ayres, Assistant Minister for Trade (Australia); Ms. Xiana Mendez, Secretary of State for Trade, Ministry of Industry, Trade and Tourism (Spain); and H.E. Ms. Mariam Yalwaji Katagum, Minister of State for Industry, Trade and Investment (Nigeria).
While doing so, he confirmed the outcome of the 12th WTO Ministerial Meeting and cooperation toward the future WTO reform, requested cooperation toward stabilizing the global crude oil market in order to ensure energy security, discussed topics such as strengthening bilateral economic cooperation through economic partnership and investment agreements, and expressed his gratitude for those participating in Expo 2025 Osaka, Kansai.
He also actively exchanged views with Japanese companies doing business in Switzerland on the challenges of developing businesses in other countries.

• 
  Dr. Ngozi Okonjo-Iweala, Director-General of the WTO
• 
  H.E. Dr. Majid Bin Abdullah Al Qasabi, Minister of Commerce and Investment (Saudi Arabia)

• 
  Ms. Chawe Mpande, Permanent Secretary at Ministry of Commerce, Trade and Industry (Zambia)
• 
  H.E. Mr. Abdullah bin Touq Al Marri, Minister of Economy (United Arab Emirates)

• 
  Mr. Bernd Lange, Chair of the European Parliament Committee on International Trade
• 
  Senator Tim Ayres, Assistant Minister for Trade (Australia)

• 
  Ms. Xiana Mendez, Secretary of State for Trade, Ministry of Industry, Trade and Tourism (Spain)
• 
  H.E. Ms. Mariam Yalwaji Katagum, Minister of State for Industry, Trade and Investment (Nigeria)

Related Links

• WTO members secure unprecedented package of trade outcomes at MC12 （June 17, 2022）

Division in Charge

Multilateral Trade System Department, Trade Policy Bureau