Photo courtesy WTO
Geneva: The issue of WTO reform has been raised by the organization’s members in various World Trade Organization (WTO) bodies in recent years, with many recognizing the need to update rules written more than a quarter of a century ago.
Senior representatives from government, business and civil society outlined their views on September 29, 2021 on how to make the WTO fit for purpose in today’s world of trade. Addressing the challenges of the COVID-19 pandemic and climate change, making sure WTO rules are adapted to today’s digital economy and ensuring the benefits of trade extend to all were some of the themes which emerged at the Public Forum high-level session on strengthening the multilateral trading system.
Carlos María Correa, Executive Director of the South Centre, stressed the need to overcome the current fragmentation in the international system of trade rules and called for a trade system that is focused on the needs and rights of people.
The COVID-19 crisis has shown the world the profound asymmetries that exist in many economic, social and health aspects, he noted. The post-pandemic reality should be an opportunity to create a new system based on equality and solidarity which is truly effective, he added. “The world should be different to the one that COVID-19 found.”
“The multilateral trading system needs to be part of a mechanism which promotes wellbeing globally,” he said. “Trade isn’t an end in itself but an instrument to pursue other superior objectives, including taking into account the interests and needs of the most vulnerable groups in the population.”
Yeo Han-Koo, Trade Minister of the Republic of Korea, highlighted the importance of the digital and high-tech economy to the WTO’s work. From being a country whose main export in the 1960s was wigs, Korea has succeeded in becoming one of the world’s leading exporters, starting with textiles and light electronics, and specializing in automobiles and semiconductors, he said.
The proactive role of the government, the promotion of public-private partnership and a firm commitment to digitalization was the formula for Korea’s success, which could be replicated by developing countries, particularly if WTO members were to finalize an agreement on electronic commerce, he said. “Digital trade rules could really pave the way to bring many other developing countries into this fast track of development.”
“If we keep our focus on innovation and sustain this strong will to turn a crisis into opportunity, then I think we will come out of this crisis stronger than before the pandemic,” he declared.
Otunba Richard Niyi Adebayo, Nigeria’s Minister of Industry, Trade and Investment, said WTO reform should focus on the issues that are central to the interests of developing and least developed countries and that have been the subject of ongoing WTO negotiations for years.
The International Chamber of Commerce (ICC) and the B20 Italy, representing the global business community, highlighted the pressing need for reform of the WTO so that it can meet the challenges of the 21st century. At the session, the ICC and the B20 outlined the priority areas for WTO reform and the need to achieve results focussed on inclusivity and sustainability at the 12th Ministerial Conference (MC12) in late November.
Allowing WTO members to benefit from a fully functioning dispute settlement mechanism was one of the business community’s first priorities. In addition, both the ICC and the B20 highlighted the importance of a strong notification and trade monitoring system, which would allow the WTO to play a central role during the current pandemic and future crises.
At the session entitled “The future WTO work program: Insights from business”, the two organizations urged the WTO to play a key role in ensuring access to effective supply chains and called for the conclusion of negotiations on curbing harmful fisheries subsidies by MC12.
In her opening remarks, DG Okonjo-Iweala said: “Business has a stake in the WTO. The system continues to provide stability and predictability to your operations. It keeps tariff and non-tariff barriers in check and offers avenues to address discrimination against your exports.”
She added: “My message to you is straightforward: we need concrete results at MC12. That is necessary to show that the WTO is back on track, and that it can deliver for members and people relying on trade to drive a strong economic recovery. The support of the business community – and your active engagement with your governments, and in the media – will be crucial to make results at MC12 possible.”
“I encourage you and your constituencies to talk to your governments, support them to be ready to negotiate – and even more importantly, ready to compromise – in favour of a revitalized, reinvigorated WTO.”
John Denton, Secretary-General of the ICC, noted that equitable access to vaccines is critical for business and for economic growth. He warned that the risks of interruptions to global supply chains and global growth will continue until the whole world is vaccinated. He emphasised that the WTO has a vital role to play in helping to achieve this objective.
Denton announced that the ICC has launched a paper entitled “Global Business Priorities for the WTO“. The paper sets out 27 concrete recommendations, under five key priority areas, that the global business community would like Member States to address at the upcoming Ministerial Conference (MC12) and build into a work programme over the next few years. These include WTO reform, trade and health, trade and environmental sustainability, trade and the digital economy, and trade and inclusivity.
B20 Italy Chair Emma Marcegaglia noted that the WTO should play a role in discussions on sustainability and climate change by accelerating the deployment of technologies and services that are a necessity for tackling these challenges.
She said: “Without a strong WTO, we will not achieve what we want – that is, longer-term growth that is more sustainable and more inclusive for the next decade.”
Shinta Kamdani, CEO, Sintesa Group, Co-Chair of the B20 Task Force on Trade and Investment, said that the WTO and the multilateral trading system should empower small businesses and help them integrate into global supply and value chains. For micro, small and medium-sized enterprises (MSMEs) to benefit from opportunities presented by the global economy, the WTO should be reducing non-tariff measures, fostering homogenous standards, facilitating trade via digital means, and facilitating financing for MSMEs to help them trade globally, she noted.
She also underlined the unique challenges facing business in developing countries, such as lack of digital infrastructure, that is preventing them from tapping into digital trade. She also noted that business in developing countries may face difficulties in adapting to environmental sustainability measures.
In summing up, DG Okonjo-Iweala said: “I really look forward to working with the business community on all these issues. You are going to have to be part and parcel of these reforms. I hope we can work hand in hand.”
– globalbihari bureau
