Barbados cannot afford to turn its back on multilateralism and the World Trade Organisation (WTO) as the global trading system feels the strain from increased tariffs and other unilateral actions by some countries.
Matthew Wilson, Barbados’ Ambassador and Permanent Representative to the United Nations, WTO and other international organisations in Geneva, Switzerland has made that clear.
He also believes that with the major shift in trade policy by the United States (US), Barbados and CARICOM “need to continue to have this constructive approach to the US, to listen to what their concerns are, and to try to find solutions which cause minimal disruption, but are able to achieve positive deliverables for all”.
Wilson acknowledged the pessimism some people had about the future of the WTO as it prepares to hold the 14th Ministerial Conference (MC14) in Cameroon from March 26 to 29.
He said it is no secret that the WTO has challenges but stressed that the institution “remains such an incredibly important institution for Barbados and other small, vulnerable economies, it is really the seat of global trade negotiations and multilateralism”.
“Small islands like Barbados, we need institutions like the WTO, where we have a seat at the table, where we can engage in the conversations, where there is greater transparency,” he said.
“Where we can discuss some of the new and novel issues like climate change, like small business competitiveness, like plastics pollution, while also still focusing on some fundamentals like services trade and agriculture trade and fisheries subsidies as well.”
Implications
Wilson continued: “I understand that right now, the WTO, like the United Nations, like the whole multilateral system is under some strain because of certain decisions and certain new areas of focus of some major power players, but I think it’s important that we listen to what is being said from member states like the US.
“We work with them to make sure that they maintain an interest in the WTO and in the UN, and we working collaboratively so that we have a system that works for all, that’s able to deal with some of the new and modern issues that are facing us, and that we are able to have a forum where we can sit down and discuss, negotiate and come to a resolution on trade related issues.”
This included “things like the unilateral trade preferences, which have been have been put out there by the US”.
“I think that it’s important that we discuss the implications of these for the multilateral trading system, and that we have a particular accent on transparency and making sure that everybody is able to abide by these rules that we have spent many decades working on together in a spirit of collaboration,” he stated.
Period of disruption
The trade expert, who previously worked at the WTO and the International Trade Centre, both based in Geneva, also commented on the increased tariffs introduced by the US and by some other countries in retaliation, cautioning that a disjointed trade system was unhelpful to Barbados and other countries.
“It has been a period of disruption, and I think that we are all trying to adjust to what seems to be a new reality. We are going to have to find a way to make these unilateral trade decisions live peacefully with the concept of multilateralism,” he suggested.
“We cannot afford to have a disjointed trading system. We have got to have greater understanding of the rules and regulations and greater transparency as well, because it is only through transparency that you can really have
a conversation on the implications and the economic impacts of some of these decisions which are being taken.
“However, I think the Caribbean has played its cards very carefully and strategically with the US.
“If you look at the situation of the proposed tax on Chinese owned vessels in the region, the fact that all of CARICOM in concert with the CARICOM Private Sector Organisation went there singing from the same hymn sheet and from a position of evidence, the region was able to have a constructive dialogue with the US administration about the potential impacts of certain measures.
Returning to concerns about the WTO’s viability, Wilson believes that “everyone wants the WTO to succeed, maybe at different levels and maybe delivering different things, but all of us, I believe, including the US, understands the value of the WTO”.
“And this is why one of the main areas of focus of the upcoming Ministerial Conference, is going to be WTO reform, or WTO repositioning. How can we make WTO more fit for purpose? And this was a discussion that started before some of these issues around unilateral tariffs,” he shared.
“I think a lot of us recognise, including Barbados, that there was a need to pay closer attention to the decision making process, to the levels of inclusiveness and transparency, while also making sure that we maintain certain fundamentals like the consensus decision making pillar, which is incredibly important.”
Alternatives
One major remaining area of divide among WTO members is the inactive appellate body of the dispute settlement system, which the ambassador reminded “has been offline for many years now, for reasons which I think many know, the US’ decision to block the appointment of new appellate board judges”.
“This is something that many of us have been discussing for a long time. I feel like we may have hit a bit of a brick wall, and now it is time for us to see what alternatives are out there, because the legislative pillar of the WTO is fundamental we have to find a way to preserve it and to make sure that WTO plays the role in international adjudication that it was intended to play,” he said.
“But the WTO is also an incredible place to discuss new issues. Barbados, for example, is one of the coconveners of the plastics pollution dialogue. We coordinate the work on small businesses at the WTO.
“We are intricately involved in the work on trade and gender and on e-commerce as well and these are contemporary issues which deserve attention in the WTO. The same for environmental and sustainability issues, including issues around carbon border adjustment measures,” he noted.
Wilson said that “these are all things that are being discussed at the WTO”.
“So, WTO still remains extremely relevant, but I think we all realise that it needs to reposition itself for the 21st century, and the only ones who are able to do that are the member states and this is why this has got to be a deliverable at MC14,” he concluded. (SC)
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