|
Five months after the squalid failure of the Third WTO Ministerial Conference in Seattle, and four months after
UNCTAD X in Bangkok which provided lubrication for
the squeaks and groans inflicted on the latter,
and given the latest information that Director General of WTO, Mike Moore has a planned 3-4 year program for Africa -
the most laggard of the continents in the
multilateral trading system, I thought I should
make a modest contribution on what is going on in the WTO and how I perceive the future.
To start with, I wish to correct the impression
that may exist among some Africans that that the
lopsidedness of the Uruguay Round Agreement and
the non-transparency manner in which the WTO handles its major events such as the Ministerial Meetings are a
product of the WTO secretariat and its Director
General (DG) in this case Mike Moore. I wish to
state that it is very easy to confuse the WTO secretariat with developed countries. To an ordinary person in the street,
perhaps the secretariat is synonymous with rich
countries. But, who, in fact is the WTO? In
developed countries, when we hear of protests against the WTO, maybe protestors and ordinary citizens understand exactly
what constitutes the WTO. In Africa, not many
people may know. The WTO is Africa, Latin America,
Asia, Europe, North America, and other continents.
It comprises both rich and poor countries. It is our own baby. The secretariat and its DG are not the
WTO.
Africas central problems in the WTO revolve around the imbalances and biases created by rich countries in the
Uruguay Round Agreement (URA). Africas problem
lies in the inability of rich countries to
genuinely make it an equal participant. The Agreement was deliberately made unfair in many ways. For instance, it failed
to recognise the need to create conditions for its
implementation. The Agreement should have come
after necessary conditions for implementation such
as adequate technical assistance, and improved environment were put in place. WTO should have drawn lessons from industry
(its reason
detre) that identification of customer needs and developing a product that satisfies those needs is at the heart of
business. Companies that started with products
first then, selling them have often met with
difficulties. It is like Africas stock markets whose creation was legal-driven instead of
demand-driven.
The WTO discriminates against poor members. This is the core problem. Says former DG, Renato Ruggiero,
Industrialised countries have not lived up to the
spirit of liberalisation (such as textiles), made
excessive use of anti-dumping measures, or failed to respect the principle of special and differential treatment
(S&D). In short, these countries see an
imbalance in the way existing agreements affect
them, and they see this as a problem which needs a
political solution, not just more technical assistance.
Before Seattle, it will be recalled that Moores first task as DG was to sound his wish for rich country
members of the WTO to give not only free but bound
market access for all products from Least
Developed Countries (LDCs), most of whom are in Africa. Since then, he has bravely continued to urge these countries to make
this donation, which he says would not cost them
much. Soon after Seattle, he embarked on a
confidence-building initiative in the WTO on the basis of making improvements on four elements of the organisations
work: market access for LDCs; implementation
issues for developing countries; technical
assistance; and internal transparency of the WTO. In all these elements, the idea was to improve the participation of
developing countries especially LDCs in the WTO
and lay a positive foundation for the forthcoming
negotiations on Agriculture and services this year as well as the next round.
At the General Council Meeting of 3 May 2000, Moore reported on the outcome of the initiative. Although his report
was full of optimism, the reality on the ground is
that many Africans were unhappy with the outcome
of the initiative. Again, this wasnt Moores fault.
In fact, he too was disappointed.
LDCs, Moores central target for rich countries help in the WTO did not get bound duty free and quota-free
market access. Instead, rich countries hid their
shame in the language that theyd provide " market
access by according and implementing tariff-free
and quota-free treatment consistent with domestic
requirements and international Agreement, under their respective preferential schemes for essentially all products originating
in least developed countries." The gist of this is
that domestic measures predominate again over
multilateral measures. It also means absence of
security for market access. "Originating" also has rules of origin implications. In short, LDCs remain where they were
before Seattle over this matter.
Some critical questions regarding the market access offer by rich countries arise: What is the meaning of
"essentially all" and the intention behind this
wording? If they wish to exclude some products
from duty/quota free treatment, what would be these products? Would they be confined to those covered by special provisions
within the WTO Agreements, e.g. Transitional
safeguard on textiles, special treatment on
agriculture, or would there be individual lists of
exceptions? Would they adopt one common formula for the duty free treatment, or would there be individual lists? Would there be
a common set of rules of origin? Would these be
designed to take account of the special weaknesses
of LDCs in processing? Would cumulating among LDCs be permitted? Why is binding avoided? Would it be possible to
present various options of achieving security for
the duty/quota free treatment? As WTO is about
rights, what rights does the proposal give to LDCs and what recourse would be available for LDCs if such treatment
were removed unilaterally?
Clearly, LDCs need something new, something long-term, and something with binding rules. They need
something like a protocol, acceptable by
all.
On implementation, major lacuna exists in the rich countries proposal. The proposals on Trade Related
Investment Measures (TRIMS) and Customs Valuation
focus on transitional periods on a case-by case
basis and on the basis of a calendar. Such
requests are not likely to be entertained and if they were, theyd be subjected to a strict timetable for their
elimination. Why shouldnt the transitional periods
be extended for all LDCs without any
pre-conditions of case by case? Why not on the basis of their development, financial and trade needs? Whatd be the adequate
period of extension for LDCs? Should this be
linked to the availability of sufficient resources
to LDCs to effectively implement these agreements?
What about the exemption of LDCs from the application of local
content requirements to support industrial
development?
On Sanitary and Phyto-sanitary (SPS), the package focuses also on extension of transitional period by 3 years.
What effective measures would be taken to
implement Articles 9 and 10 on technical
assistance and special and differential treatment (S&D) to build up capacity of LDCs in respect of transfer of processing
of technology as provided in Article 9 of the SPS
Agreement? Rich countries made this commitment and
therefore it should be implemented in a
fundamental way. Otherwise, today Africa maybe given bound market
access but without adequate standards, rich
countries will still bar these products on the
basis of unilateral measures.
The controversial TRIPS Agreement is not included
in the rich countries proposal. Article 66.2 of
this Agreement provides for rich countries to
provide incentives to their enterprises and
institutions for transfer of technology to LDCs for them to improve their technological base.
Africa should be focusing on making rich countries operationalise developmental-oriented Agreements such as the
TRIPS Agreement. Rich countries implemented TRIPS
ignoring this provision. Further, in spite of
their lacklustre to do so, they are enthusiastic to see that developing countries implement completely TRIPS
within this year for non-LDCs and by year 2006 for
LDCs. When challenged, they have argued that they
have been implementing the provision through bilateral initiatives. But, this is untrue and
deceptive.
Technical assistance is skewed toward serving rich countries interests in the URA. It does not impact negotiation
skills on poor countries. Neither does it on
understanding critical issues of a developmental
benefit in the URA. Instead, it concentrates on
understanding the multilateral trading system such as implementing TRIPS. As one study observes, It is not clear what has
motivated the refusal of the member countries in
recent years to provide even minimal adequate
levels of technical co-operation funding through the regular budget. Money cannot be the real issue, since the amount
involved is so trivial. So, if it is not the
money, what is it that explains the state of the
WTOs technical co-operation budget? It is hard not be suspicious that at least one factor is a desire by many WTO
members to avoid increasing the capacity of the
Sub-Sahara Countries to play an active and
effective role in the WTO.
In terms of the proposal, it calls for another
study of existing technical co-operation.
Technical assistance needs of LDCs have been
identified and quantified and the delivery of technical assistance programmes by WTO as well as with UNCTAD since
1995. What resources can be committed to LDCs? Is
it Swiss Francs 10 million for the regular budget
as suggested during preparations for Seattle Meeting? And which portion would be devoted to LDCs? When would these
be made available and through which forum WTO,
UNCTAD, LDC directly, etc? Shouldnt the rich
countries begin implementation of the Integrated
Framework in some selected LDCs?
To recapitulate the earlier point: these imbalances and many more are not a product of Moore, the Director General
of WTO or his secretariat. Just like the exclusive
greenrooms or lack of transparency in
decision-making in the WTO is not.
Africa would do better to target these issues at
the rich countries. They must set objectives in
terms of priorities; create a strategy to achieve
them and make a case and presentation to their
rich trading partners. This could be done even before the mandated issues and definitely the next round take place. Yes,
multilateral negotiations take place in the WTO in
Geneva. But, dialogue can be done in capitals of
rich countries.
Moore can effectively act as a broker. He intends
to visit many African countries. Indeed, he must
be given all the necessary support. Africa should
allow him to talk to all relevant people from
heads of states to ordinary businessmen and women who wish to
benefit from WTO rules. It is necessary for him to
sensitise heads of states to issues of WTO. We all
know that most African leaders have put these
issues at the back seat. By talking to heads of states, it might help
to put multilateral rules on the political agenda
in Africa. It might help to mainstream trade
policy into the overall national strategies, which
is lacking at the moment. It is up to Africans themselves to be
smart and get out of Moore something valuable.
Africa needs Moore as much as Moore needs
it.
Moore could be thanked for his efforts on market access and capacity building through technical assistance for
LDCs. But, he could also be assisted to understand
that these efforts need to be harmonised with
technology-focused efforts as highlighted in some of the WTO Agreements. Africas problem is the lack of supply capacity
to produce products and services that can sell
abroad. Market access and technical assistance
without actions on productive capacity are not
enough. As Moore might have learnt when he was in Africa: in Africa,
a meal is only complete if it has relish
and ugari, fufu,
or nshima.
Africa, made it clear in its proposals to the third WTO Ministerial Meeting that rich countries should
opperationalise Agreements such as those cited
above. And they should hammer this point again to
Moore. They should help Moore to help them identify Agreements in the WTO that will improve their supply base. That is what
basically all these Agreements talk about but are
not translated into action. Clearly, there must be
a honest way of honouring obligations in an
integrated and co-ordinated manner by rich countries that can help Africa get back on the road again. But, this does not preclude
WTO from starting to improve Africas situation
through its core business such as market access,
implementation and compliance. Africa must make the point that beyond the usual implementation in the jargon of
the WTO, there is another dimension. That is
supply-focused.
I have strong reasons to place my hopes in Moore. Moore has with him a team of competent and experienced people.
In his Personal Assistant, Mr. Patrick Low, a
Kenyan-born British, with a long experience in the
WTO at Director level, Moore can enjoy a sense of
brilliant advice on technical issues of WTO. Low is a frank and open person who often talks to African diplomats in Geneva
candidly. For the first time in the history of the
WTO and its predecessor (GATTS), Moore has
appointed an African as one of his four Deputy Director Generals. This is a record for Africa. Mr. Ouedraogo Ablasse is former
Minister of Foreign Affairs of Burkina Faso, an
LDC without a presence in Geneva. In addition, he
comes with a record of experience of the United Nations. Having worked at the UNDP, he knows how technical assistance
programs should be delivered to benefit Africa.
Africa will expect him to leave a print of good
work in the WTO. Africa looks forward to working with him.
Moore becomes the first DG of the WTO and its predecessor - the GATTS to go to Africa to be specific he
went to the country and city in which this article
is being published - headquarters of the
Organisation for African Unity (OAU) where he met
African Ambassadors, the Secretary General of the OAU and many other Africans. He must be given similar chance to meet African
heads of states. This may sound trivial. But, for
him as a person, this is how far he can go.
Addressing the real issues remains the chief
responsibility of Africans themselves and their rich trading
partners with Moore as a broker. Again, he needs
help to push Africa up-front. Africa must
proactively involve Moore in their affairs at the WTO. They must present proposals that he can market to members
particularly the "inner circle" as someone calls
the rich countries that control the WTO. He may
fail on securing multilateral market access but he
might succeed on others. Id be the first to condemn him if out of ten concrete, reasonable and different proposals given to him
he came back and told Africa that he failed all.
But, the man must be given chance
first.
Transmitted 13 June 2000
|