Nairobi, 15/12/2015 (Agence Europe) - After a few ngoma (Swahili) drum rolls, supposed to bring good results (according to local tradition), Kenya's President Uhuru Kenyatta, Trade Minister Amina Mohamed and WTO Director-General Roberto Azevedo declared the 10th ministerial conference of the World Trade Organisation (WTO) officially open in Nairobi on Tuesday 15 November. This is the first WTO ministerial conference to be held on the African continent.
It is a conference for which the expected results - greatly awaited by the African continent, which houses most of the world's least developed countries (LDCs) - remained not only modest on Tuesday (in relation to the ambitions raised by the conclusion of the Bali package at the previous WTO conference at the end of 2013) but also very uncertain (given the persisting deep divisions between the big WTO actors).
Seizing the momentum of the Paris climate agreement. “2015 is a year that has enabled us to express our unprecedented cooperation on a number of urgent issues for humanity. We have agreed on measures which until that point seemed impossible”, Kenyatta said, speaking to over 3,000 delegates from the WTO member countries. A new WTO agreement would be “a result that would enable us to respond to other challenges (Ed: than climate change) - insecurity, inequality and sustainable development”, he said. “We must take inspiration from the breakthrough (at COP21 in Paris). Kenya has prepared the ground well. Now it's up to us to obtain a result”, said Azevedo.
Great hope for African continent. During his opening speech, Kenyatta also underlined the opportunity that the Nairobi conference represented for the African continent's development, and thus for the take-off of world trade as a whole. “Africa is the continent with the weakest participation in world trade and with the youngest population. World trade would gain if more trade was done with Africa. With its potential for strong growth, Africa has shown that it is ready to be included in world trade. It is a continent that is a source of dynamism, youth and optimism. But we need the goodwill and support of the rest of the world to resolve the problems of poverty, insecurity and environmental destruction”, he said.
Kenyatta criticised the “weak progress” on concluding the Doha round, and he attacked the multiplication of bilateral agreements, which are not “very positive for an open multilateral trading system”. “The multilateral system has nothing like it for improving trade”, he said. “The agricultural negotiations are those that interest the African countries most. But the distortions in this sector continue. African farmers cannot compete with the farmers of countries where farmers are heavily subsidised. I ask you then to do your utmost to unlock a positive result. We owe this much to the world and to our young people”, he concluded.
Alongside Kenyatta, Liberia's President Ellen Johnson Sirleaf hailed a “historic day” for the African continent. (Liberia is an African LDC which is due to join the WTO officially on Wednesday 16 November). “I hope for a comprehensive result in Nairobi, which might enable fairer trade for the prosperity of our people. We look forward to a generous Nairobi declaration”, she said.
In a message on behalf of Uganda, which neighbours Kenya, Ugandan Prime Minister Ruhakana Rugunda underlined the importance of “true fair rules” for the citizens of the African continent. “Africa will host discussions on issues that affect it in particular. It accounts for 14% of the world's population and its rate of poverty accounts for 12.7% of the world's population. We have good hope that the promises of the Doha round might become concrete. The conclusion of the Doha round would bring over 360 billion in additional exports in the world per year”, he said.
Mohamed tackles Mike Froman. At the opening ceremony, the chair of the ministerial conference, Kenya's Trade Minister Amina Mohamed, said she expected the Nairobi meeting “to send a strong message that the multilateral trade system works”. “The centrality of the WTO is irrefutable. Nothing can substitute the WTO”, Mohamed underlined, speaking out against the “risk of fragmentation” of the trading system with the proliferation of bilateral agreements. “Multilateralism gives great promises in theory, but also in practice” she added, in a pointed comment to US Trade Representative Mike Froman, who the previous day in the Financial Times had sounded the charge against the Doha round, calling on the world to free itself from Doha's restrictive limits, and arguing in favour of a “pragmatic” approach.
Agricultural section and package for LDCs at centre of discussions.
Crucial questions on the agricultural chapter of the Doha round will be at the centre of discussions in Nairobi this week - the export competition pillar (which aims to remove all forms of subsidy for exports), the special safeguard mechanism (SSM) in agriculture for developing countries (which would enable them to protect themselves against a large and sudden rise in imports of certain products), and the permanent solution for public stockholdings for food security purposes. The preparatory work of recent months on these issues has not, however, enabled the positions of the member countries to come closer.
The ministers will also try to finalise a package for LDCs, including the total exemption from customs duties for their products, a softening on the rules of origin, preferential treatment for services, and the cotton issue.
One of the only points of optimism is the confirmation of an agreement on the review of the WTO information technology agreement (ITA) to extend its scope to 200 new products.
The Nairobi conference could also confirm the extension of the moratorium on customs duties concerning electronic trade.
In addition, the 162 WTO member countries are also expected to approve the accession of two new members - Afghanistan and Liberia.
The EU wants an agreement on the end of support to agricultural exports. In its first package of conclusions to define the margin of negotiation of European Commissioner for Trade Cecilia Malmström, the Council of Ministers of the EU, meeting in Nairobi on Tuesday, hailed “the EU efforts towards a balanced and comprehensive outcome on all forms of export support in agriculture” and urged the WTO member countries “to concentrate on those issues that are realistically achievable in Nairobi”.
Together with Brazil, the EU has tabled a proposal, supported by Argentina, New Zealand, Paraguay, Peru and Uruguay, aiming to remove direct and indirect subsidies to exports for agricultural products by the end of 2018 for developed countries, and by the end of 2021 for developing countries (see EUROPE 11435).
However, the member countries in favour of a positive result at Nairobi on the chapter on export competition do not want to link this issue with other chapters of the agricultural section of the Doha round - the internal support and market access pillars - to which the SSM question belongs, on which the G33 developing countries, led by India, Indonesia and China, would like a result in Nairobi. (Original version in French by Emmanuel Hagry)