MC13 to discuss decentralisation of global supply chain: WTO head

ABU DHABI / WAM

The World Trade Orgnisation’s (WTO) Ministerial Conference (MC13) in Abu Dhabi next week will discuss the decentralisation of global supply chains for the first time, aiming for a more inclusive global trade that considers those marginalised in global development, according to WTO Director-General Ngozi Okonjo-Iweala.
During a virtual interview with the Emirates News Agency (WAM) from Geneva, Okonjo-Iweala emphasised that many global private-sector investors are currently focused on the ‘China+1’ model, pairing China with another country like Vietnam, Indonesia, or India.
“We have no problems with that. But we are saying there is also China plus Morocco, China plus Brazil, China plus Senegal, China plus Bangladesh. So, there are many countries that are ripe for investment.”
Okonjo-Iweala urged the investors to help reshape the global supply chains and create employment.
If the world aims to build resilience, she stressed, the private sector has to consider investing in developing countries with the right investment environment as they reshape their supply chains.
By doing so, the director-general emphasised, investors can kill two or three birds with one stone. “You can help deal with the resilience of supply chains. You can help deal with inequality by investing in developing countries. You can help create jobs.”

MC13 and UAE’s values
The UAE will host MC13 from February 26-29 in Abu Dhabi after successfully organising the UN Climate Conference in Dubai in December 2023 (COP28).
Around 164 nations and trading blocs will participate in the Ministerial Conference, the WTO’s top decision-making body.
The WTO chief said, “We are deeply grateful to the UAE for hosting MC13. Standing ready to organise such an important event is testimony of the value the UAE attach to multilateralism and global solidarity at a particularly challenging time.”
The collaboration with the Emirati authorities in the organisation of a meeting that will bring together more than 7,000 people in Abu Dhabi has been extremely positive, she added. “We are convinced that we will find the best political, organisational and logistical conditions to make MC13 a success in every way.”

First-time discussions
Discussing MC13’s agenda, Okonjo-Iweala mentioned the initiation of new dialogues, called deliberative sessions, where, for the first time, the ministers will engage on issues crucial to the contemporary world, including trade and environment, trade and climate change, trade and sustainability, and trade and inclusion.
Okonjo-Iweala explained that global trade has to solve the problems of people who are left at the margins of global development and be inclusive of developing countries, especially women and micro, medium and small enterprises.
She advocates the decentralisation of supply chains, expanding them to developing countries, “what we call re-globalisation” [increased international cooperation and broader integration].
The WTO chief explained that micro, medium and small enterprises create jobs in many countries. Therefore, integrating them into the global supply chain, as many companies are doing now, will help create more jobs and more wealth.
Likewise, many women running those micro, medium and small enterprises have to be included in the value chain. “That’s what we are advocating.”
Moreover, given the vulnerabilities witnessed during the pandemic, she pointed out, the supply chain should be expanded across the globe, without being limited to certain continents or regions. “So, those kinds of conversations on inclusion and sustainability; that is one set of issues we hope to tackle for the first time.”

Celebrating accession of 2 new members
Two least developed countries, Timor-Leste and Comoros, will be acceding to the WTO after an eight-year hiatus without new members, the WTO chief said.
“We have 22 countries in the queue wanting to become members. So, this is a big thing that we need to celebrate.”

Dispute settlement reforms
MC13 will discuss the measures to make reforms into the dispute settlement system, the director-general said, as the ministers had instructed at MC12 to make the reformed system to be fully functional by 2024. “We have started that work.”
She explained that the dispute settlement system consists of two levels. At the first level, a panel adjudicates the cases brought by members, which is currently functioning and dealing with several cases. The second is the appellate body where they can appeal, if they are not satisfied with the decisions made at the first level. That appellate body is not functioning at the moment.
“We need to reform the systems. So, we decided to look at the entire system, both the panel level and the appellate body, to see what needs to be reformed.”
As demanded by developing countries, WTO has been working to make the system more accessible and affordable for them by streamlining the processes and procedures. “We have completed quite a bit of work on that side, and we will bring that to work.”

Digital trade
Talking about the prospective discussion on digital trade, Okonjo-Iweala pointed out that a moratorium on imposing customs duties on electronic transactions has been going on for more than 20 years.
It creates an environment where young people and women can start digital businesses without worrying about customs duties. Ministers will discuss whether to extend the moratorium, she noted.
At plurilateral level [among some members], 90 members are negotiating an e-commerce agreement to try to lay the rules for digital trade. “And this is going on,” she revealed.
The WTO is launching a $50 million (AED183.65 mn) fund for women to help accelerate women’s participation in digital trade, the WTO chief said. An event at MC13 will support the countries in West Africa that are struggling to make their mark in the global cotton market. It aims to help them develop a value chain for processing their product in-country, she added.

Fisheries’ subsidy
Among the negotiations on several important things, the director-general said that part two of fisheries subsidies is crucial. WTO has successfully negotiated part one to stop subsidies that encourage illegal and unregulated fishing. “Now we are looking at subsidies that can encourage overcapacity and overfishing. We hope to complete that.”