Caribbean Trade Law and Development

Category: WTO

  • WTO Thirteenth Ministerial Conference: What’s at stake?

    WTO Thirteenth Ministerial Conference: What’s at stake?

    Alicia Nicholls

    All eyes of the trade policy world will be on the United Arab Emirates’ glistening capital city, Abu Dhabi, for the World Trade Organization (WTO)’s Thirteenth Ministerial Conference (MC 13) taking place February 27-29, 2024. Under the chairmanship of His Excellency Dr Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade, WTO members’ trade ministers and other delegates will discuss several key priority areas in hopes of securing a substantive package of outcomes which reinvigorates some confidence and strength to the WTO and the rules-based multilateral trading system which it oversees. This article takes a broad look at some of the major issues being discussed.

    Unlike other major multilateral organisations, the WTO is run by its members. Its highest decision-making body, the Ministerial Conference, comprises all of its members and meets every two years. The main exception to this was the four-year lag between the Buenos Aires Ministerial (2017) and Geneva Ministerial (2022) due largely to the COVID-19 pandemic.

    Similar to the run-up towards the last ministerial (MC 12), pressure exists for achieving concrete outcomes from this Ministerial Conference. Public commentary leading up to the ministerial has ranged the gamut from optimistic to pessimistic, especially since some issues like the TRIPS Waiver extension and agriculture appear far from reaching consensus. Significant discussions and preparatory work by delegations leading up to MC13 seek to ensure, however, that the pessimists are proven wrong. Indeed, ever-optimistic, the WTO’s formidable Director-General, Dr. Ngozi Okonjo Iweala is quoted as stating ““You know it’s always very difficult and seems like it’s not going to work…But we never say never. We are going to get it done.”

    Two new accessions

    On the bright side, the WTO will see two new accessions – Comoros and Timor Leste, the first since 2016 and which will bring its membership from 164 currently to 166. Both Comoros and Timor Leste are least developed countries (LDCs) and small island developing States (SIDS), emblematic of the importance small States in particular attach to the rules-based multilateral trading system despite its flaws. Some twenty-two other countries or separate customs territories are presently in the accession process. This lends credence to the argument that despite its shortcomings, countries still see WTO membership as desirable.

    Fisheries Subsidies Agreement

    Securing the entry into force of the Fisheries Subsidies Agreement, which was adopted at MC12 in 2022, is one priority area, as well as the second round of negotiations under that Agreement. The Agreement establishes binding multilateral rules seeking to discipline harmful fisheries subsidies which have been detrimental to the world’s fish stocks. The Agreement requires two-thirds of the WTO’s membership to deposit instruments of acceptance. Barbados, Dominica and Haiti recently deposited their instruments of acceptance this month. Indeed, Barbados’ Ambassador Matthew Wilson shared a video entitled “The Barbadian Matriarchy of Fishing” to highlight the importance of supporting small-scale and artisanal fishing in Barbados.

    E-commerce moratorium extension

    In place since 1998, the long-standing agreement among Members against imposing customs duties on electronic transmissions is due to expire unless Members agree once again to extend it. This e-commerce moratorium has been controversial as some countries argue that it has been critical for a smooth environment for digital trade. However, some developing countries are concerned about foregone customs revenue.

    Trade and development

    Development-related issues are also key on the agenda, particularly how to operationalize the development flexibilities – Special and Differential Treatment – within the WTO’s agreements. In December 2023, WTO members agreed on a draft decision to be submitted to trade ministers for approval at MC13 on further integration of small economies into the world trading system. Additionally, in January 2024, the Plastics Pollution Dialogue, comprising 76 WTO Members, reached agreement on a ministerial statement to be issued at MC13.

    Incorporation of JSI outcomes into WTO rulebook

    Since the stalemate of the Doha Development Agenda, some WTO members have turned to joint statement initiative discussions as a way to advance rule-making in the WTO in the areas of e-commerce, MSMEs, investment facilitation for development and domestic regulation in services trade. The JSI discussions have been criticized by some members, most prominently India and South Africa, as ‘illegal’ and lacking a formal mandate for the discussions. As such, the recently concluded Investment Facilitation for Development (IFD) Agreement’s incorporation as a plurilateral agreement under Annex 4 of the Marrakesh Agreement remains fraught. It would require consensus, including support from non-parties to the Agreement and from countries which oppose the JSI process. Six CARICOM Member States (Antigua & Barbuda, Barbados, Belize, Dominica, Grenada, Suriname) participated in the IFD Agreement negotiations and are among the 118 WTO members which support the Agreement.

    WTO Reform

    WTO reform has been an important agenda item, but the Doha Development Agenda stalemate and the Appellate Body crisis have reiterated the need to reform the institution’s dispute settlement function. A draft text on dispute settlement reform has elicited much discussion but there appears so far to be no way forward for the resumption of a two-tier system.

    Lots at stake

    Interestingly, the WTO’s MC13 will be taking place at the same time as the 46th Regular Heads of Government Meeting in Georgetown, Guyana, opening on Sunday, February 25. However, it is expected that at least some of CARICOM’s trade ministers will be at MC13, especially given the nature of the issues being discussed.

    In conclusion, there is a lot riding on MC13. MC13 cannot be divorced from the economic and political context in which it is occurring. For example, the fact that this is a ‘mega-election’ year with elections due in major countries, such as the US and India, for example, mean that there is added pressure on delegations to ensure that MC13 outcomes deliver for their own citizens and are politically palatable for their electorate. It is hoped that whatever the outcomes, they help to strengthen, revitalise and restore some confidence to an institution which, though not perfect, is indispensable for global trade and the wider global economy.

    Alicia Nicholls is an international trade consultant and founder of the Caribbean Trade Law & Development Blog www.caribbeantradelaw.com.

  • OECS WTO members underwent 4th WTO Trade Policy Review this week

    OECS WTO members underwent 4th WTO Trade Policy Review this week

    Alicia Nicholls

    On May 3-5, 2023, the World Trade Organisation (WTO) completed its fourth review of the trade policies and practices of the six Organisation of Eastern Caribbean States (OECS) WTO members. These are Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines. The OECS delegation was led by the Honourable Everly Paul Chet Greene, Minister of Foreign Affairs and Trade of Antigua and Barbuda, and Chair of the OECS Council of Ministers of Trade. The discussant was Her Excellency Ambassador Nadia Theodore, Permanent Representative of Canada to the WTO.

    WTO members, meeting as the Trade Policy Review Body, reviewed the WTO Secretariat’s Report and the reports from the Governments of those six countries. During the meeting, WTO members had the opportunity to seek clarity from the OECS delegation on various issues relating to their trade policies and practices. The Chairperson’s concluding remarks stated that 24 delegations had taken the floor over the two-day meeting and 169 advance written questions from 12 delegations had been submitted for the review.

    According to the chairperson’s concluding remarks, the OECS members were applauded for “the constructive role that the OECS-WTO Members play in the multilateral trading system” despite their small size. They also received praise for their open trade and investment regimes and strong support of environmental action. However, major concerns raised surrounded implementation of commitments under WTO agreements and the backlog in compliance with their WTO notifications. It was pointed out in the Secretariat report that this was likely because of capacity constraints and the fall-out from the COVID-19 pandemic.

    The OECS is a regional intergovernmental organisation and subregional integration movement in the Caribbean region which was formed in 1981 with the signing of the Treaty of Basseterre, subsequently revised. All OECS members are members of the Caribbean Community (CARICOM). Besides the six members mentioned (all six are sovereign States), it also includes a non-sovereign full member, Montserrat. These full members are part of the Eastern Caribbean Currency Union (ECCU) and therefore share a common currency, the Eastern Caribbean dollar. Its associate members are non-sovereigns: British Virgin Islands, Anguilla, Martinique and Guadeloupe.

    The TPR reports are made publicly available and are a rich source of information for trade analysts and potential investors of a country’s trade policies and its general trading and macroeconomic environment. The TPRB chairperson’s concluding remarks are released shortly after. The minutes of the meeting, as well as members questions, are also released about six weeks after the conclusion of the review.

    You can read the report and other documents here.

    Alicia Nicholls, B.Sc., M.Sc, LL.B. is an international trade specialist and founder of the Caribbean Trade Law and Development blog http://www.caribbeantradelaw.com.

  • Barbados’ trade policies up for WTO review next week

    Barbados’ trade policies up for WTO review next week

    Alicia Nicholls

    On October 25 and 27, 2022 Barbados will undergo its fourth trade policy review at the World Trade Organization (WTO). Trade Policy Reviews are part of the WTO’s trade policy review mechanism whereby all WTO members’ trade policies and practices are periodically reviewed. A country’s share in world trade is the determining factor for the frequency of its reviews. Barbados’ three previous trade policy reviews were in 2002, 2008 and 2014. These reviews are a critical part of the WTO’s transparency function.

    WTO members, meeting as the Trade Policy Review Body on October 25 and 27, will review two documents: the WTO Secretariat’s Report and the report from the Government of Barbados. During the meeting, Members will have the opportunity to raise questions and seek clarity from the Barbados delegation on various issues relating to the country’s trade policies and practices. The rules of procedure for the TPRB can be accessed here.

    The TPR reports are made publicly available and are a rich source of information for trade analysts and potential investors of a country’s trade policies and its general trading and macroeconomic environment. The TPRB chairperson’s concluding remarks are released shortly after. The minutes of the meeting, as well as members questions, are also released about six weeks after the conclusion of the review.

    With regard to other CARICOM Member States up for review this year, Guyana had its most recent trade policy review in March and the Dominican Republic’s latest will be in December.

    Alicia Nicholls, B.Sc., M.Sc, LL.B. is an international trade specialist and founder of the Caribbean Trade Law and Development blog http://www.caribbeantradelaw.com.

  • World exports of intermediate goods increased 20% in Q1, says WTO

    World exports of intermediate goods increased 20% in Q1, says WTO

    Alicia Nicholls

    According to a World Trade Organization (WTO) quarterly report released on September 2, global exports of intermediate goods saw a 20% year on year increase in the first quarter of 2021. The WTO report defines intermediate goods as those goods used as inputs in the production of a final product. It noted that “growth was strongest for IG ores, precious stones and rare earths (43 per cent) and food and beverages (22 per cent).”

    Asia was the region which saw the highest percentage growth (28%) in the exports of these goods, mainly due to China. Indeed, China, the US, Germany, Hong Kong (China) and Japan were the top exporters of intermediate goods, according to the WTO report. The first four countries were also the top importers globally, while India was the fifth.

    Access the WTO report here.