Ottawa-Despite some key handicaps, the World Trade Organization (WTO) remains an important component of the international trading system, says the Canadian Agri-Food Trade Alliance (CAFTA).

While weakened by decisions by numerous countries such as the United States and India, 75 per cent of world trade still occurs under its rules, CAFTA said in a commentary following its participation in the recent 13^th WTO Ministerial Conference (MC) in Abu Dhabi.

“The WTO system and rules are an integral part of the international trading system,” it said. “Two new members joined the WTO at this MC, some 30 are in the queue, and no country has ever left.

“The real question is whether the WTO can play an important role in changes to the system. If plurilateral agreements are not negotiated inside the WTO, the real action will take place elsewhere, in regional and bilateral agreements.”

CAFTA attended with a delegation from members organizations — the Canola Council of Canada, Canadian Canola Growers Association, Cereals Canada, Canadian Cattle Association and Grain Growers of Canada - to show support for the global rules-based trading system and Canadian negotiators’ efforts to protect it.

Little was expected to come from the MC with the U.S. and India in election years and the rising geopolitical tensions making agreements unlikely. “Senior officials, including in Canada, were not expecting liberalizing progress, setting a lower bar of ‘avoiding backsliding’ or ‘holding the line’ against increased protectionism. By this limited measure, MC 13 can be considered a success.”

Without any progress in talks in recent years, agriculture negotiations went nowhere. “Not only were they unable to agree on issues of substance, but they were also unable to agree on an agenda or work plan on how to advance towards MC14,” CAFTA said. “Ministers were unable to reach agreement on how to proceed with negotiations on agriculture.”

That was mainly due to India’s insistence on a permanent solution to the public stockholding issue, which many countries oppose. A peace clause agreed to in 2013 shields India from any legal ramifications for breaching its limits on allowable farm subsidies used in its public stockholding program. “The building of food stocks is permissible under WTO rules, but India is accused of purchasing rice from farmers at inflated levels through its Market Price Support system which leads to greater production. The rice reserves are later exported, distorting markets.”

There was no consensus on a possible solution to the issue before the end of the conference and the issue will be revisited at the next MC, CAFTA said.

The Cairns Group of agricultural exporting countries including Canada expressed its disappointment in that result. “This has come at a time of critical challenges to the global trading system, including in relation to food security, development and the environment.”

Meanwhile WTO Director-General Ngozi Okonjo-Iweala urged WTO members to build on the work done so far and to finish it for the next conference.

The dispute settlement negotiation ended with only an agreement to conduct discussions to produce a full dispute settlement system by the end of 2024. Proposals focused on increased emphasis on arbitration and mediation rather than referring to the WTO's Appellate Body, which is not functional due to a U.S. refusal to appoint judges.

This news article was prepared for National Newswatch