RESEARCH AND ANALYSIS

Africa and the WTO crisis: What role in future global trade governance?

Collin Zhuawu, PhD candidate with University of Birmingham

 
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If recent arguments that the WTO is in crisis largely because of the biggest traders are deadlocked on a number of issues are to go by, then we are likely to have an incomplete understanding of the real causes for the crisis and possible solutions thereof.  Narrowing the causal factors of the WTO crisis and its solution to the biggest traders is inadequate because it overshadows the contributions from other traders, particularly developing, weaker and smaller traders. As such each player has to take responsibility of its contribution to the WTO crisis and help in resolving it.  A case example is the examinations of the contribution by African countries to the crisis and the possible roles they can play in resolving it.  A more African presence on issues related to multilateral trade liberalisation and the WTO crisis must be acknowledge if we are to fully understand the extent of the crisis. This is important as it allows us to examine the causes of the WTO crisis in totality and address the concerns of all trading partners as we search for a solution.  A half-baked account to the problem will not suffice.

Trade has been viewed as the new productive and growth agenda, contributing to social and economic development.  This, it has been argued can be achieved through reducing trade barriers amongst trading countries through multilateral agreements, to produce similar standards and uniformity across international markets.  It is in this view that the seed for crisis in the WTO multilateral trade liberalisation must be sought as one size does not fit all, particularly in a trading and negotiating environment where there are weak and strong countries.  Different countries and different groups of countries are pushing for different issues, (which is normal) making the bargaining process among 156 members difficult and complex.  Unlike its predecessor the GATT, the WTO is truly multilateral as the previously dominant powers in the GATT have now to negotiate with a large number of emerging powers and weak powers such African countries.    However, these weak powers have used the coalition strategy in the WTO negotiations, leading to changing power configurations owing to growing influence by weaker countries.  African countries have made a contribution to this deadlock through the strategic use of the Africa Group in the WTO negotiations.  Central to their demand is the need to make the Doha Round developmental through the deliverance of outcomes that address the developmental concerns of most African countries.  It is these issues of development which have made bargaining in the WTOP difficult and complex casting doubt on the Doha Round as the way for the future of multilateral trade, particularly as it has widened the North South divide.  For instance while the big powers are prioritising market access to gain access to developing countries markets, developing countries particularly Africa countries  are putting emphasis on having development delivered, especially if the big powers honour implementation issues involving preferential treatment, agricultural subsidies and less than full reciprocity on previously agreed areas. 

There is therefore the need to reform the negotiating process that has proved to be dysfunctional and allow it to take into account not only the concerns of the big powers and emerging powers but developing countries concerns if WTO negotiations are to move forward.   In recent years the total of Africa’s world merchandise trade has increased, signifying the importance of trade for Africa and the world – exports increased by 51 percent between 2009 and 2011 and imports increasing by 36 percent during the same period.  Moreover the Africa Group is the largest strategic group within the WTO and has the number of votes in the WTO that can block decisions and put issues on the table.  Needless to say that the Group has the ability to mediate between the developed countries and emerging countries as they hold the capability of playing one group against the other.  In other words the WTO institution must be made to function for the broader membership other than the developed countries and the emerging economies.  As such there is need to acknowledge the importance of developing countries as significant traders and negotiators in the multilateral trading system.