By Africa Links 24
Published on 2024-01-30 08:19:07
At the 50th anniversary celebration of the origins of the international trade system in 1998 in Geneva, Nelson Mandela emphasized the need for developing countries to be fully included in the World Trade Organization (WTO) in order to ensure that their economies develop. This message continues to be relevant as the WTO prepares for its 13th biennial Ministerial Conference in Abu Dhabi, UAE, from 26-29 February.
Currently, 44 African countries are members of the WTO, with nine others holding “observer status,” and only two not affiliated with the organization at all. African countries account for 27% of full WTO members, a majority of which joined before China became a member in 2001.
Despite their membership, Africa’s share of world exports has decreased from 4.8% in 1973 to 2.7% in 2023. The continent’s share of world imports has also declined from 3.9% in 1973 to 2.9% in 2023, leading to a persistent trade deficit. The rules and negotiations within the WTO have heavily influenced this imbalance, as they have not adequately represented the interests of African countries.
The WTO’s negotiation structure, in which countries are represented with one voice, has failed to address the imbalances in negotiation powers. Many African countries are unable to fully participate due to budget constraints. Additionally, the dispute system within the WTO has disproportionately impacted African countries, as they have been involved in only 2% of cases and very few have been resolved. Intellectual property rules and regulations regarding food and health have also posed challenges for African countries.
The upcoming WTO Ministerial Conference in Abu Dhabi presents an opportunity for Africa to address these issues and to shape the global trade system to better serve African interests. Reforms to the dispute resolution system and addressing trade barriers in agricultural markets will be major considerations during the conference. Additionally, African countries can work collectively to advocate for a shift in the WTO’s decision-making processes.
Furthermore, the implementation of the African Continental Free Trade Area (AfCFTA) does not negate the need for reform within the WTO. African countries should continue to push for changes within the World Trade Organization that better serve their interests. The future of Africa’s trade relations with the global market depends on the ability to effect meaningful reforms within the WTO.
