What is the role of the WTO in addressing Trade related Climate Policy Tensions?
What is the role of the WTO in addressing Trade related Climate Policy Tensions?
Climate change is deepening existing vulnerabilities and inequalities, disproportionately affecting vulnerable countries and communities around the world.
As the debate on climate change rages especially in view of the increasing use of unilateral measures under the garb of environmental measures to address climate, the role of the World Trade Organisation (WTO) in addressing trade related climate policy tensions cannot be ignored.
On the sidelines of the recently concluded WTO Thirteenth Ministerial Conference held in Abu Dhabi, UAE, SEATINI Uganda and Third World Network Africa under the umbrella of Africa Trade Network (ATN) held a session themed; ‘‘Role of the World Trade Organization in Addressing Trade Related Climate Policy Tensions’’ at IISD’s Trade and Sustainability Hub on 27th February 2024.
In her opening remarks, Ms Jane Nalunga, Executive Director at SEATINI Uganda stressed that African economies are mainly based on Agriculture and 60% of Africa’s merchandise trade, exports and revenues are from raw materials. However, Agriculture in Africa is mainly handled by small scale producers who still rely on the weather and nature in terms of seasons that is; the rainy and the dry seasons with very limited irrigation.
Some countries claim to be supporting multilateralism, but they are implementing unilateral measures such as the Carbon Border Adjustment Mechanism (CBAM) and some countries are negotiating Free Trade Agreements (FTAs) with the EU with dedicated trade and sustainable development (TSD) chapter encompassing provisions on protection of the environment, labour rights and climate change.
“The nexus between Trade and climate change is very important because trade can be a solution to address the climate crisis. On the other hand, unregulated trade can also cause climate change because of the green-house gas emissions which have been the major cause of climate change,” she added.
Ms Faith Lumonya , the Economic Justice and Climate Action Programme Lead at Akina Mama wa Afrika noted that when we discuss the need to address the climate crisis, we need to emphasize the root causes rather than address the symptoms. Climate action must be contextual and applicable so that we can address this crisis.
It was also observed during the session that land grabs in Africa are while many countries cannot produce food for their own people but produce cash crops to satisfy international markets.
The speakers also noted that African countries have witnessed a massive erosion of policy space. Which started with the adoption of Structural Adjustment Programs and these same programs based on liberalisation have been logged under the World Trade Organisation.
The discussion brought forth a question for everyone to ponder upon; Climate Change for several years of implementing trade policies, what have we done to address challenges in the agriculture sector and climate change related effects?.
“We have had a number of discussions around the CBAM and some of the people are telling us that it’s not about carbon reductions but it’s about levelling the filed for producer in Europe not taken advantage of”, she highlighted.
Additionally, Mr. Rangariria Machemedze, A Policy Analyst on Trade Related issues, SEATINI Uganda noted that they are seeing land grabs for productions of crops while many developing countries cannot produce food for their own people but produce cash crops to satisfy international markets.
“Will the World Trade Organization right the wrongs from that past that we are now suffering from? He questions. Developing nations can not regulate the unsustainable production practices of companies engaged in a race to bottom.
Ms. Jane emphasized the need for policy spaces at a bilateral level for example the European Union is negotiating a number of agreements and they are talking about export restrictions. We need such policy tools so that we can add value to them. She also added that there is need for the WTO to work closely with the United Nations Climate Change to ensure there are complementarities and Climate Action at the national level to be supported by the multilateral trade system.
As a way forward, it was agreed that there is need to go back to multilateralism especially based on the original objectives of the WTO embedded in the Marrakesh Agreement if the institution is to deliver.
