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China will no longer be seeking special and differential treatment (SDT) at the World Trade Organisation (WTO), opening the door for global trade reform that benefits Barbados and other small island developing states. Chinese Premier Li Qiang announced the move on Tuesday in New York while attending the High-Level Meeting on the Global Development Initiative. The decision was welcomed by Minister of Foreign Affairs and Foreign Trade Kerrie Symmonds and Barbados’ Ambassador and Permanent Representative to the WTO Matthew Wilson. Important step “I see this development as a most important step in the necessary give and take of negotiations, to reform the WTO and create opportunities for significant and tangible reform,” Symmonds said. Wilson noted: “This may unblock some elements in current discussions around the G90 agreement specific proposals, the second part of the fisheries subsidies agreement on disciplining subsidies for over fishing and over capacity; and other ongoing negotiations.” WTO agreements have SDTs, which are provisions to give developing countries special rights, make it possible for developed countries to treat developing countries more favourably than other WTO members, and enable technical assistance. China’s claim to SDT as a developing country has been opposed by the United States (US) in particular, especially given the Asian giant’s rise to become the world’s largest merchandise trader and second largest economy. This was a point made by Symmonds who said: “China’s ability to access special and differential treatment in the several trade disciplines, aligned that country in terms of its entitlements, to small and vulnerable economies like Barbados and the rest of us in CARICOM. “Obviously the size and scale of our economies bears absolutely no relationship to the economic might of China.” The Minister reminded that this “has been a source of contention for other large economies like the United States and had, in my judgement, resulted in an unwillingness to engage flexibly with the wider global community in order to achieve the reforms necessary for the WTO to function effectively”. “Now that China has taken this position we must hope that the other super power will act similarly in the wider international interest and demonstrate some flexibility on the other critical issue, which has led to an installing of the reform process, and that is the question of dispute settlement,” Symmonds said. “For the United States there is an unwillingness to allow any third party to make decisions in matters concerning their national interests. “Effective regulation of global trade rules however do require that there be some effective dispute settlement mechanism, to which all member states can subscribe, and by which all member states will abide,” he added. Wilson, who is based in Geneva, Switzerland where the WTO headquarters is located, said: “For Barbados we welcome this initiative and announcement by China that recognises that while SDT remains a treaty embedded right for all developing countries, it has taken the mature decision to forgo SDT for China in future WTO Agreements. This sends a signal from China that it is willing to take tough decisions to help preserve the multilateral trading system and move negotiations forward.” Reacting to China’s decision, WTO Director-General Dr Ngozi Okonjo-Iweala said in a statement: “This is a pivotal moment for the WTO. China’s decision reflects a commitment to a more balanced and equitable global trading system. “It sends a strong signal of support for WTO reform and will help foster a more level playing field for all members. This move will undoubtedly energise discussions and help us work toward a more agile and effective organisation for the 21st century.” (SC)
