Why is WTO part of the Problem?

Christian Häberli, WTI | 9 December 2024

MATS has repeatedly posited that WTO and, across the lake, the World Economic Forum are fiddling on the roofs of Geneva while Rome (FAO), New York (UN) and Paris (Climate Agreement) are burning. Umpteen “conversations” in 6 trade and 6 climate Ministerial Conferences produced NOTHING. COP29 in Baku did not even address agriculture, and earlier attempts (Koronivia + FAO) led NOWHERE. There are no agrifood sustainability standards. The WTO glass today is not half-full, it is broken: MFN tariffs remain prohibitively high. No clear rules for food dumping or food aid, export credits, risk insurance, export state trading. Poor countries refuse protecting small farmers against dumping (despite available safeguards). And African trade is impeded: food export restrictions and SPS measures without scientific justification are proliferating – against EAC and AfCFTA rules and principles. The only light in the WTO tunnel is the fact that this is the only treaty limiting trade distortions. Nonetheless, trade distortion entitlements of rich countries remain immense: EU = €60bn, JAP + US = $30bn. Worst, for MATS: no adjudicator and no delegate has acknowledged that WTO rules prohibit discrimination between two cows with different methane outputs, while Paris prescribes differentiation for two otherwise like products: an existential problem that tariff, tax, or subsidy reductions will not even begin to solve! Put crudely and simply, WTO refuses to negotiate agrifood trade and investment disciplines, and UNFCCC refuses climate mitigation standards.

Christian Häberli is a Fellow of the World Trade Institute (WTI). The WTI is one of the 14 MATS partners and plays a key role in producing deliverables such as discussion paper on the political economy on trade regimes and discussion paper on the feasibility of changes in trade regimes. In addition, WTI has conducted the MATS/Ukraine project “Repairing Broken Food Trade Routes Ukraine – Africa”. For more info about WTI activities here.