WTO - Afrikan Heroes

WTO Commends Ghana’s Digitalisation Agenda

April 28, 2023

Ngozi Okonjo-Iweala, a former managing director at the World Bank and former finance minister of Nigeria

The Director General of the World Trade Organisation, Dr. Ngozi Okonjo-Iweala, has commended Ghana’s robust and visionary efforts to digitalise broad aspects of the country’s economy and the entire E-commerce architecture describing it as the future of trade.

Describing digital trade as the “wave of the future”, DG Okonjo-Iweala, said such vibrant activism by countries like Ghana has informed the WTO to begin negotiating an E-commerce agreement that will decide the rules of digital trade.

The WTO Boss discussed this when she paid a courtesy call on the President of the Republic, Nana Addo Dankwa Akufo-Addo, at the Jubilee House on Tuesday, 25th April, 2023, on the occasion of her working visit to Ghana as part of her maiden tour of Africa, which will also find her visiting Senegal, Cote d’ Ivoire, Kenya, Tanzania and Rwanda.

Interacting with the President, Dr Ikonjo-Iweala said, “total global trade is about 31 trillion dollars. Of that, goods/merchandise trade is 25 trillion and services at 7 trillion. Within those services, digital services trade is growing the fastest, at about half of it, which is 4 trillion. And it’s growing rapidly at 8 percent per annum compared to the goods trade.”

As a result of this encouraging trend, she continued, “we are thinking that this is an area where our countries can benefit, and when we look, Ghana, as we mentioned to the Hon Minister in the morning, seems to be doing well providing some digitally traded services and professional services in business outsourcing.”

“There are many people trading digitally, in Ghana, we met many women today who are online and are doing digital trade, so one of the areas where we are thinking of working with our countries is on this issue of digital trade. We met to look at what are the challenges and constraints and opportunities because on the supply side, we have the International Trade Centre that can work and is working directly with some women here. “

Speaking on WTOs contribution to this, she stated that the organisation can help with issues on certification, quality control of products, breaking into new markets, etc.

Therefore, she continued, “I just wanted to point this out to you that investing in the digital economy is very good because that’s going to be the wave of the future.”

She was quick to add that, WTO is already negotiating an E-commerce agreement that will decide the rules of digital trade and asked Ghana to participate fully towards its formulation.

On related matters of key concern to the Organisation, Dr Ikonjo-Iweala, appealed to Ghana to expedite action towards the ratification of the Fisheries Subsidies Agreement which has found consensus after 21 years.

By this agreement, she stressed, “we were able to do away with 22 million dollars in harmful subsidies that lead to illegal, unreported and unregulated fishing and are actually negotiating a second phase of this agreement to deal with over-fishing and over-capacity.”

She emphasised on the importance of the agreement because 12 million people in Africa depend on fisheries and Africa is losing 2.3 billion dollars from illegal, unreported and unregulated fishing and 3 billion from over-fishing and over-capacity.”

She said the agreement will eliminate the subsidies that the countries give which in turn result in encouraging the bad practices stated above, seek absolute transparency in the declaration of fish numbers and affords any country the absolute right to report cases of bad practices to the WTO tribunal.

She also touched on the global supply chain on issues like COVID 19, debt financing, agriculture with focus on value addition and food security, reforms at the WTO and trade related issues on the environment as well as climate change.

President Akufo-Addo, whilst touching on the establishment of the National Vaccine Institute, emphasised the strong affinity of the Ghanaian towards digitalisation, and the willingness to work on the various areas that require Ghana’s active participation.

He also called for a more intelligent approach to handling the issue of proliferation of plastics in the face of the difficulty of an outright ban.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Making History: How Okonjo-Iweala Became First Woman and First African to Lead WTO

February 15, 2021

With her confirmation as Director General of the World Trade Organisation (WTO), Nigeria’s Ngozi Okonjo-Iweala has become the first woman and first African leader of the world body in charge of global trade matters at a time the organization is going through its most trying period in history. Whether Okonjo-Iweala’s ceiling breaking appointment would give the near-paralysed institution the desperately needed kick-start is left to be seen.

Ngozi-Okonjo Iweala’s tortuous journey to the world trade body was controversial and an interesting piece of geopolitical muscle flexing. Two things worked for her, first she got the support of the majority of members of council of the WTO, second, the failure of President Donald Trump to secure a second term in office. The latter, more than the former, was instrumental to her ascendency to the office, as it saved the WTO from an election process that would have further deepened the fractured organsisation which many believed Trump was bent on fighting.

But with the support of the United States President Joe Biden who strongly swung behind her candidacy shortly after the only other remaining contender, South Korean Trade Minister Yoo Myung-hee, pulled out. Add to this was WTO’s eagerness to conclude the drawn-out process, having been leaderless since Brazilian career diplomat Roberto Azevedo stepped down last August, a year ahead of schedule.

The process of picking one of eight candidates to succeed him had been expected to wrap up by November, but the administration of former US president Donald Trump blocked the consensus to appoint Okonjo-Iweala. Though Okonjo-Iweala was not around at WTO’s Geneva headquarters for today’s virtual session and it is not known when she would take up her duties but she is scheduled to hold an online press conference two hours later after her election.

The WTO picks its leaders through consensus-finding, so even though she is the only candidate still in the race — boasting US, EU and African backing — there is always the chance of a spanner being thrown in the works. She will take over an organisation mired in multiple crises and struggling to help member states navigate the severe global economic slump triggered by the coronavirus pandemic.

Okonjo-Iweala argued during the race that she was best placed out of the eight candidates for the post to steer the WTO through the crises. “I am a reform candidate,” she insisted. She has among other things warned that growing protectionism and nationalism have been spurred on by the pandemic and insists barriers need to be lowered to help the world recover.

Even before Covid-19 battered the global economy, the WTO was weighed down by stalled trade talks and struggled to curb trade tensions between the United States and China.

The WTO also faced relentless attacks from Washington under Biden’s predecessor Donald Trump. Among other things, Trump brought the WTO’s dispute settlement appeal system to a grinding halt in late 2019.

Okonjo-Iweala has said her priorities include getting long-blocked trade talks on fishery subsidies across the finish line and breathing life back into WTO’s Appellate Body. She has brushed off claims she lacks experience as a trade minister or negotiator, insisting that what is needed to lead the WTO is not technical skills but “boldness, courage”. She has portrayed herself as a champion against Nigeria’s rampant corruption — saying her own mother was even kidnapped over her attempts to tackle the scourge. But her critics argue she should have done more to tackle it while in power.

A development economist by training with degrees from the Massachusetts Institute of Technology and Harvard, Okonjo-Iweala has also had a 25-year career as a development economist at the World Bank, eventually becoming its number two. She is on the Twitter board of directors and chaired Gavi, the Vaccine Alliance.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

World Trade Organisation (WTO) Should Hear Africa’s Voice—PAFTRAC

September 11, 2020

The preponderance of Agriculture subsidies and non-tariff barriers especially in advanced economies has been highlighted as a specific hindrance to development in Africa. This was contained in a Communiqué following a meeting convened by the Pan-African Private Sector Trade and Investment Committee (PAFTRAC. The Communique which sets out a road map for WTO reform calls for development to be at the centre of WTO reform; Agriculture subsidies and non-tariff barriers highlighted as a specific hindrance to development.

Following a meeting convened by the Pan-African Private Sector Trade and Investment Committee (PAFTRAC) and hosted by the Afreximbank, a communiqué addressed to members of the WTO and the eight candidates who have been shortlisted as the institution’s next Director General was released yesterday calling for a wide range of reforms.

The communiqué was formulated following numerous consultations with PAFTRAC members, its institutional partners, and through a comprehensive survey of the African private sector. Within it, the Committee have highlighted a number of recommendations to ensure the institution is more effective in growing global trade but doing so in a manner that is fair to all.

The communiqué stated that “ignoring the voice of Africa and other emerging economies will have dramatic consequences for and undermine the relevance of the WTO and the rules-based system at a time when multilateralism is already under threat.”

In the opening remarks at the meeting, the President of the Afreximbank stated that “Africa has played an important but largely under-valued role in the global economy.” He cited that Africa’s global share of trade has fallen from 4.4% in 1970 to 2.5% today, whilst the share of Asia has risen from 7.7% to 20% over that same period. “Whilst this is the result of numerous factors, including fragmented markets and persistent supply-side constraints,” he said, “tariff escalations and stringent standards on final goods in developed economies have limited Africa’s potential to move up value chains.”

The communiqué called for the WTO to ensure “that development issues are front and centre of its reform agenda.” They specifically called for African countries to be afforded Special and Differential Treatment that will allow flexibilities and sufficient policy space to support local industries and advance development. The African private sector also emphasised the importance of addressing subsidises and state-aid in developed economies which continue to confine Africa to the bottom of global value chains.With the African Continental Free Trade Agreement (AfCFTA) coming into effect in 2021, they also requested that African integration under the AfCFTA and the establishment of an African Common Market is not undermined by multilateral negotiations.

The organisers called for the voice of the African private sector to be “heard and considered under the multilateral framework,” so that the private sector can not only compete fairly but also grow. Trade, they said, is vital to generate the volume and quality of jobs required to absorb over 17 million young Africans who are entering the labour market every year. PAFTRAC unites African leaders from the private sector and provides a unique advocacy platform bringing together the African private sector and African policymakers to support extra and intra-African trade, investment and pan-African enterprise.

The platform drives pan-African results by providing a framework for private sector engagement in trade and investment issues in Africa, including policy formulation and trade negotiations to support African economies in line with the ambitions of Agenda 2063: “The Africa We Want”. PAFTRAC enhances advocacy and supports policy actions and recommendations of the private sector on trade; and investment issues at the national, trade corridor, regional and multilateral levels.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry