Foreign Affairs and International Trade secretary Amina Mohamed. PHOTO | FILE
At least 164 ministers attending the World Trade Organisation (WTO) forum in Nairobi this week are expected to make major compromises to lay the foundation for a global trade treaty that has eluded the world in the last 14 years.
Foreign Affairs and International Trade minister Amina Mohamed, who is chairing the 10th ministerial conference (MC10), said the global trade ministers have to use the Wednesday’s negotiation session to make key offers after Geneva (WTO headquarters) failed to reach consensus on the Nairobi outcome.
Areas of interest to Africa include financial and technical support for least developed countries (LDCs), agriculture, fisheries, trade in services as well as trade-related aspects of intellectual property rights (Trips).
Only recently, the US angered the African group after it granted its cotton farmers 60 per cent subsidy which will lower the price of the produce, making the African crop uncompetitive.
“As chair of the ministerial conference, I don’t want to be seen as trying to predetermine the outcome but since no consensus was reached in Geneva, it is the compromises to be announced at this forum that will lay foundation for the future of the multilateral system,” said Ms Mohamed.
A total of 40 ministers had arrived in Nairobi by Sunday with another 60 expected Monday. The rest are expected to jet in by Tuesday, ahead of the ministerial negotiation session on Wednesday. The pact on LDCs is generally expected to be finalised in Nairobi.
A cloud of controversy however hangs over subsidies and export of agricultural and fishery products. Also facing resistance is extension of WTO Trips which allows poor countries to produce cheaper generic drugs for chronic diseases without seeking permission from multinationals.
“We expect outcomes in all these areas. We are working hard to ensure that Africa does not lose this opportunity given to them (to host ministerial conference)”.
At least 7,000 delegates, among them 2,500 visitors and 1,500 media representatives are expected in Nairobi for the forum.
Other than agreeing on a pact to ease global trade, the government estimates that Sh2.6 billion will have been spent on the economy by the time the conference ends on Thursday.
Immediate beneficiaries of the forum include the hospitality industry and Kenya Airways which has been named the official airline for the ministerial conference.
The delegates will Monday continue with China Forum which began Sunday.
In a letter sent to the WTO secretariat on Friday, ahead of the MC10, President Uhuru Kenyatta acknowledged that the ministers have the potential give the world a new trade pact to be known as “Nairobi Declaration”.
The objective of the “Nairobi Declaration” is clearly towards finding a possible landing zone and working towards convergence on the issues on the table,” president Kenyatta said in his letter.
“I believe MC10 will serve as the much needed collective effort to achieve consequential results which contribute to the future negotiating function of the WTO and delivering development outcomes for those members who need it most.”
Kenya becomes the first African state to host the WTO ministerial conference. Nairobi is also expected to give the world its first trade facilitation agreement – a pact aimed at easing port and cross-border exchange of goods.
So far, 57 member states, among them Kenya, have signed the treaty which takes effect immediately 108 members (two thirds of WTO states) ratify it.
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