Make ‘complex’ WTO accession process easier, members urge

▶ Africa accounts for barely 1% of the digitally delivered services sector

World Trade Organisation members have called for the accession process to be eased to help more countries join the Geneva-based body.

Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, described the process as complex and challenging at the 12th China Round Table on WTO Accessions in Abu Dhabi yesterday.

Wang Wentao, China’s Minister of Commerce, said it prevented the least-developed countries from access to the 164-member body.

The length of time between application and accession has varied from less than three years to more than 15.

Iraq has been waiting for nearly 20 years. Algeria, Comoros, Lebanon, Libya, Somalia, Sudan, Syria and East Timor are also in the process of accession. Comoros and East Timor are expected to be formally accepted in Abu Dhabi.

“Passing through the accession process is a very complex task and they require extensive work,” said Gebremeskel Challa, Ethiopia’s Trade Minister.

“Some of these issues may not be simple and easy to understand when you add constraints. Assessed with limitations of development, human, institutional and infrastructural capacities worsens the challenges of the accession process of least developed countries.”

The Arab region is one of the most under-represented in the WTO. Of the 22 Arab League countries, 13 are members and nine have observer status.

Dr Al Zeyoudi said gaining membership is “complex and challenging”, and although a one-size-fits-all approach was not suitable, the criteria could be “better”.

China has pledged to expand its role in helping least-developed countries join by working more closely with the body’s leadership and devoting greater resources to helping developing countries, Mr Wang said.

“Less developed countries will bolster the international community’s confidence in the multilateral trading system,” he said. “Accession is an important step on the way to becoming part of a globalised economy.”

China was ready to work with WTO members to ensure progress on less developed countries, succession and development, he added.

The future of trade is digital, green and inclusive, according to Ngozi Okonjo-Iweala, the World Trade Organisation’s director general.

Digital trade is one of the fastest-growing segments of trade today and it is expanding at 8 per cent per year, she said during a panel discussion in Abu Dhabi moderated by The National’s Editor-in-Chief, Mina Al-Oraibi, ahead of the WTO’s 13th Ministerial Conference.

Digital trade refers to the production, distribution, marketing, sale or delivery of goods and services by electronic means, according to the WTO.

“Africa has only 1 per cent share of the digitally delivered services sector,” Ms Okonjo-Iweala said. “However, I see this as an opportunity. Countries like Morocco, Egypt, Ghana, Kenya and Nigeria are doing well in digital trade.”

Stressing the need to bridge the digital divide, she said many countries don’t have the infrastructure and almost 55 per cent of sub-Saharan Africa lack access to electricity.

“The regulatory framework for digital trade is non-existent in many countries. We can help with this in partnership with the World Bank.”

The value of digitally delivered services rose by an average of 8.1 per cent annually between 2005 and 2022, outpacing the 5.6 per cent growth of physical goods trade and the 4.2 per cent advance in other services exports, according to the WTO.

Digital trade holds great promise to act as a catalyst for inclusive economic growth and sustainable development, according to a joint WTO-World Bank note last year.

The joint project aimed to identify obstacles to participation in digital trade, recommend policy actions and design interventions financed by the World Bank.

To support African countries’ efforts to harness these opportunities, the WTO and the World Bank joined forces in 2023 and launched the Digital Trade for Africa project. Nine countries are part of the project’s pilot phase.

The global economy will experience a third year of deceleration in growth, which has implications for trade, according to the World Bank.

“Against this backdrop, the growth of digitally delivered services is a glimmer of hope,” said Pablo Saavedra, vice president for equitable growth, finance and institutions global practice at the World Bank. “Digital services have been growing in an accelerated manner. Digital services account for more than half of global service exports and 12 per cent of total exports.”

The growth of digital services in Africa is faster than any other export, he said.

Tackling digital trade in Africa requires a multi-phased approach, Mr Saavedra said.

The first ingredient is connectivity infrastructure and there has been a lot of progress in 3G and 4G, but only 36 per cent of the population in sub-Saharan Africa have broadband access, he said.

“We need to make more progress in integrating electronic payments systems with central bank infrastructure and fast cross-border payments,” he added.

The ecosystem also includes digital identification systems, which are critical to fostering the nascent financial technology industry in Africa, Mr Saavedra said.

By 2030, an estimated 230

I see this as an opportunity. Countries like Morocco, Egypt, Ghana, Kenya and Nigeria are doing well in digital trade NGOZI OKONJO-IWEALA

WTO director general

million jobs in sub-Saharan Africa will require digital skills, he said.

Jean Ngabitsinze, Rwanda’s Minister of Trade and Industry, said the country has the political will and has put in place policies, strategies and tools over the past 30 years to connect to the world.

“Like other countries, we faced problems during Covid-19 surrounding our gross domestic product,” he said. “The motivation was to make sure that we cannot continue to suffer from those shocks, and have solutions to innovate.”

Shadiya Assouman, Benin’s Minister of Industry and Trade, said the country now has paperless public services.

“We have connected … all areas of the country now, right through to the border with Egypt,” she told the forum.

“We have a digital law, with a large part of it focusing on e-commerce. We are now adapting the consumer court to take into account digital trade. We have a large programme of reforms aimed at integrating youth and women into trade.”