WTO Public Forum Opens Against Gloomy Global Trade Perspectives 27/09/2016 by Catherine Saez, Intellectual Property Watch Leave a Comment Share this:Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Facebook (Opens in new window)Click to email this to a friend (Opens in new window)Click to print (Opens in new window)The 15th World Trade Organization Public Forum, an annual event that brings together stakeholders and members of the public to discuss trade issues, opened today. This year, the focus is on inclusive trade. During the opening session, participants underlined the need for support of micro enterprises, in particular in developing countries. Also today, the WTO released its trade statistics and outlook for 2016, which announced the slowest pace of trade and output growth since the 2009 financial crisis. WTO Public Forum Opening Session According to a WTO press release, the trade statistics and outlook found that world trade will grow more slowly than expected in 2016, expanding 1.7 percent, and missing the expected April forecast of 2.8 percent. The forecast for 2017 is not much brighter, with expected growth between 1.8 percent and 3.1 percent. Falling import demand and slowing gross domestic product growth in several major economies, including in North America, are the reasons for the missed target, according to the release. The WTO Public Forum is taking place from 27-29 September. Opening the Public Forum, this morning, WTO Director-General Roberto Azevêdo commented on the negative perception of trade and globalisation, which could lead to “dramatic consequences.” Trade has been one of the most powerful anti-poverty tools, he said. Some may think that globalisation send job oversees but that is a minor cause of job delocalisation, he said, as some 80 percent of job losses are due to increased productivity and innovation. A study showed that some half of the jobs in developed economies are at risk of moving to automation. Governments must be prepared for that, he said. “In 10 or 20 years, no one can claim they did not know that was coming,” he added. WTO Director General Roberto Azevêdo Domestically, new policies will be required to ensure that global forces work on a more human scale and that governments can help people to adapt to a changing economy, he said. The response needs to be across governments, he added, and must bring in education policies, finance policies, and adjustment support for the unemployed. He underlined the need to have a global response and building trading capacities of developing countries and least developed countries, such as the Aid for Trade initiative. New trade reforms at the WTO are also needed, in particular lower barriers to allow everyone to compete, especially the smaller players, he said. Nigeria Strategy for Diversification Okechukwu Enelamah, Nigerian minister of Industry, Trade & Investment, said WTO is a key institution for global governance, however, he said, much more work needs to be done so that the WTO delivers on development for all its members. Talking about Nigerian economic challenges, he said from the 1970s, the Nigerian economy became increasingly dependent on oil revenues. However, in 2014, the commodity market collapsed, resulting in a systemic shock of the local economy. Nigeria has been undergoing a process of “painful adjustment,” Enelamah said. For example, the country is in the process of making national structural reforms for a modern, integrated, and diversified market economy that will be pro-competition, but regulated for the benefit of public and private interests. Most important is to create an enabling environment, he said, such as the right investment and business climate. He also underlined the need for support of micro, small and medium-sized enterprises. He said the digital economy in Nigeria is one of the fastest growing in the world and it currently accounts for about 10 percent of the nation’s GDP. “We must avoid to be stuck in the past,” he said, urging WTO members to be forward-looking. He called for the WTO to create a platform for the internet economy, supporting micro, small and medium-enterprises, and “providing support for home-grown strategies for domestic policy reforms that are needed to diversify economies.” Malmström: Transparent Trade Negotiations Needed Cecilia Malmström, European Union Trade Commissioner, said very many people in the world today do not feel included in trade. There is increasing debate all across the world about the benefits or the lack of benefits of trade, and there is a growing anti-globalisation movement, and the debate must be taken very seriously, she said. “We need a new kind of trade policy,” she said. A year ago, the EU presented a strategy document called “trade for all,” which is based on three pillars. The first is based on efficiency and making sure that trade actually delivers. The second pillar is about transparency, and how to make sure that people who do not trust policymakers feel included or informed. She called for transparent negotiations in free trade agreements, and for all stakeholders to be included in trade negotiations. The third pillar is about the need to make sure that trade does not mean lower standards, does not take away protection of the environment, or force governments to privatise public services, she explained. “We need to make sure that our trade is responsible, and sustainable,” said Malmström, adding that people want to know how products are made and the conditions in the factories. eBay: Tech Offers Unique Opportunity for SMEs in Global Trade Hanne Melin, director of global public policy for online trading company eBay, said the most powerful mode of connecting for micro, small and medium-sized enterprises is through technology-enabled trade. Many companies selling on eBay are small, and many are remotely based, she said. Micro firms do not usually export, she said, and have limited possibilities to participate in global trade. The current technology which enables small business to engage in global trade as their own company, irrespective of where they are located is unique in history, she said. This ability serves both the local economy and the global market, she added. ICC: Loosen Finance Regulations John Danilovich, secretary general of the International Chamber of Commerce, said trade is not a tool simply for big companies. On trade inclusiveness, he said the inclusion of developing countries in the global economy has already yielded economic gains. He gave China as an example, which he said has tripled its share of the world trade since joining of the WTO in 2001, and Ethiopia’s cut flower industry. “We don’t need to reinvent the wheel,” he said, but revisit basic principles. He cited the WTO Trade Facilitation Agreement as “an incredible” opportunity to remove unnecessary barriers, calling for its ratification and implementation. He also called for businesses to get the finance they need to trade internationally. He called on the G20 to explore “whether implementation of tougher financial regulation has inadvertently stymied the flow of finance to small businesses.” Kenyan Entrepreneur: SMEs Need Support to Ship Products Roy Ombatt, founder of African Born 3D Printer in Nairobi, Kenya, said he is building 3D printers out of electronic waste. He said that a number of micro and small enterprises see problems as opportunities. His project “Happy Feet” started with the aim of helping victims of jigger, a small parasitic insect whose bites provoke foot deformation. People affected cannot wear shoes, and 3D printing could allow the creation of custom shoes, he said. He called for support for micro and small-scale enterprises to be included in international trade. He added that he had to turn down many international orders because he could not find a way to ship the printers. “I am not asking for pity,” he said, but to have a fair chance, and the right support. Annual Trade Report, Focus on SMEs Also today the WTO launched its annual World Trade Report. The report aims to deepen understanding about trends in trade, trade policy issues and the multilateral trading system. The World Trade Report 2016 can be found here [pdf]. In line with the theme of this year’s Forum, the 2016 report is entitled, “Levelling the trading field for SMEs.” Accordingly, the report “examines the participation of small and medium-sized enterprises (SMEs) in international trade, how the international trade landscape is changing for SMEs, and what the multilateral trading system does and can do to encourage more widespread and inclusive SME participation in global markets.” Disproportionate barriers to trade for SMEs are identified and the report puts forward the scope for coherent national and international policy actions to enable effective participation for SMEs. “SMEs can benefit significantly from innovation, and their entry into the market can stimulate innovation in others” the report states. At the launch of the report, Azevêdo said SMEs are responsible for the largest share of employment opportunities in most economies, according to a WTO release. “By enhancing SMEs’ opportunities in the global economy, we can help improve the lives of many individuals and communities,” he said. “If we are to ensure that the global trading system is truly inclusive for SMEs, we must look at the challenges that they face to join trading flows and look at how we can tackle them.” Researcher Alexandra Nightingale contributed to this article. Image Credits: © WTO/Studio Casagrande Share this:Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Facebook (Opens in new window)Click to email this to a friend (Opens in new window)Click to print (Opens in new window) Related Catherine Saez may be reached at csaez@ip-watch.ch."WTO Public Forum Opens Against Gloomy Global Trade Perspectives" by Intellectual Property Watch is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.