What WTO means to Africa and developing countries

Simply known as WTO to many, these letters mean World Trade Organisation. WTO is the biggest intergovernmental trade organisation in the world with more than 162 (as of November 30, 2015) members world-wide. If you imagine trade as a game that must be fairly played, then you will see why the game of trade must be governed by rules, just like football or any other game. Its 162 member countries are the players in the WTO trade game.

Trade among WTO nations is governed by rules, which determine how the “game” of trade is played. This helps trade to be fair, accessible and beneficial to all its members. The rules also help bring discipline in the game of trade. In fact, when there is a dispute among members/players, those rules are used to resolve the disagreements.

WTO is the only world-wide organisation that makes and implements rules and policies of trade for and between countries. Member states of WTO negotiate, sign and ratify different trade agreements. Its key objective is to help producers of goods and services, exporters, importers, both big and small, to trade and provide services. WTO opens trade to benefit everyone through removing trade barriers. Sometimes, WTO has to put in place trade barriers in order, for example, to protect consumers or prevent the spread of disease. Therefore, WTO affects and impacts all of us in one way or another.

The organisation regulates the way we trade, produce and sell our produce (for example farm exports such as tea, coffee, beans and flowers). It also regulates the way we provide services and its agreements and trade policies govern and regulate access to life-saving medicines and even how we store our food grains. Thus, it regulates all aspects of trade, competition, preferential treatment and facilitation.

Imagine a small fishing village in Lamu, Kisumu or Ukunda and how they depend on fishing to survive. Imagine the tools they use for fishing, mostly artisanal tools, which do not deplete fish stocks. Now imagine a situation where there are no rules, and a wealthy fishing company with huge trawlers coming to that village and fishing everything in one swoop because they have advanced equipment. This would end the livelihood of entire villages.

WTO rules help to regulate this kind of scenario and, where necessary, provide a forum to resolve disputes that may arise from such. WTO also has agreements that give and allow use of patents and copyright agreements to allow for production of generic drugs and medicines that are lifesaving yet inaccessible to countries who cannot afford them. It is not always as rosy as it seems. This is why WTO negotiations are long, technical and sometimes very contentious.

Many ministerial conferences are also riddled with protests and sometimes it is difficult to get an outcome from these meetings. Yet, member states want to see WTO agreements being used to enhance the quality of life of everyone and enable us live in dignity.

WTO is located in Geneva, Switzerland and was established on January 1, 1995. The bulk of its current work comes from the 1986–94 negotiations referred to as the Uruguay Round and earlier negotiations under the General Agreement on Tariffs and Trade (GATT). Member states prefer to reach decisions through consensus, hence the long negotiations. Therefore, in order to ensure consensus among all its many members, WTO’s highest body, Ministerial level, meets every two years to work out trade issues and concerns that members want to see handled and addressed.

These negotiations are usually technical and very tough especially because every member goes to these negotiations to safeguard and advance their interests. Sometimes, the interests of members do not converge and therefore there is a lot of give and take.

It is very important to note that of WTO’s 162 members, more than 117 are developing countries. This is a clear indication that WTO is important to developing countries. Most of these countries lack additional strong trade and regional economic organisations that the more developed countries have.

In this regard, WTO’s guiding principles help open borders, guarantee most-favoured-nation principle and non-discriminatory treatment by and among members, and a commitment to transparency in the conduct of its activities.

In his welcoming statement posted on a website dedicated to the upcoming WTO ministerial conference in Nairobi, President Uhuru Kenya, while welcoming member states, declares that, “the opening of national markets to international trade, with justifiable exceptions or with adequate flexibilities, will encourage and contribute to sustainable development, raise people’s welfare, reduce poverty and foster peace and stability. At the same time, such market opening must be accompanied by sound domestic and international policies that contribute to economic growth and development according to each member’s needs and aspirations.”

WTO celebrated 20 years of existence this year. The organisation was born in Africa, in Marrakesh, Morocco. Yet, it is the very first time that its ministerial conference will be held on African soil. 2015 is a special and unique year for the organisation. It is not just the 20th anniversary of WTO; it is also not just the first time ever that WTO ministerial conference is going to be chaired by a woman, Cabinet Secretary Amina Mohamed; it is not just the first time that the MC is being held in Africa. 2015 is the year when millennium development goals (MDGs) expired and were replaced by Sustainable Development Goals (SDGs), in whose design and development Kenya played a critical role.

In her message to WTO members, Mohamed stated as follows: “I urge members and all relevant stakeholders to continue engaging constructively towards bridging gaps in the negotiations. On our part as a country, we are determined to continue consulting at national, regional, continental as well as global levels with a view to enriching the discussions. We believe that a positive outcome in the MC10 will shape the global trade and investment framework in the post 2015 development agenda, a successor global blueprint to the Millennium Development Goals. It will provide the necessary impetus to stimulate the global economy and enhance trade and investment. Trade and investment provide a solid platform on which countries can lay a firm foundation for employment and wealth creation, improve food security, livelihoods and substantially reduce poverty.”

 

The fact, that WTO MC10 is coming to Africa in 2015, after we have adopted and embraced the 2030 Agenda on Sustainable Development and the Addis Ababa Action Agenda on Financing for Development will be a turning point. An opportunity we cannot afford to miss or squander.

Therefore, the stakes are very high for Nairobi to succeed. Nairobi must succeed for Africa; for all the developing, and even the developed countries. It must succeed because this is 2015, and we need a WTO comprehensive package, an enabler, which will facilitate the realisation of our common sustainable development agenda 2030; the future we all want, a future that must leave no one behind.

The writer is the Deputy Permanent Representative of the Republic of Kenya to the United Nations