Wto Nairobi Agreement

08 Jul Wto Nairobi Agreement

The WTO Nairobi Agreement: What it means for International Trade

The World Trade Organization (WTO) held its 10th ministerial conference in Nairobi, Kenya in December 2015. It was a historic event as it was the first time the WTO had convened in Africa since its inception in 1995. One of the key outcomes of the conference was the signing of the WTO Nairobi Agreement, which aimed to provide a new framework for international trade that would benefit developing countries.

What is the WTO Nairobi Agreement?

The Nairobi Agreement is a collective decision made by WTO member countries to eliminate export subsidies on agriculture products. This will provide a level playing field for all countries, especially developing ones, to compete in the global market. Export subsidies have been used by developed countries to make their products cheaper in the international market, which has been detrimental to the growth of agriculture in developing countries.

The Nairobi Agreement also addresses other issues such as trade facilitation, special and differential treatment, and aid for trade. These are crucial issues that developing countries have been advocating for, as they seek to benefit from the global trading system.

What are the benefits of the Nairobi Agreement?

The Nairobi Agreement is a significant step towards reforming the global trading system. By eliminating export subsidies, it will ensure that all countries, regardless of their level of development, have access to the global market. It will also create a level playing field for farmers in developing countries, who have for a long time been at a disadvantage due to the unfair competition from developed countries.

The Nairobi Agreement also addresses trade facilitation, which seeks to simplify customs procedures and reduce red tape in international trade. This will make it easier for small businesses in developing countries to export their products and benefit from the global market. Trade facilitation will also speed up the movement of goods across borders, reduce transaction costs and increase competitiveness.

The Nairobi Agreement recognizes the special and differential treatment for developing countries. This means that developing countries will be given preferential treatment in the global trading system, which will enable them to catch up with the more developed countries. It will also provide them with the opportunity to grow their economies and reduce poverty.

Aid for trade is also an important aspect of the Nairobi Agreement. This refers to the assistance that developed countries provide to developing countries to help them benefit from the global trading system. This assistance may come in the form of technical assistance, capacity building, and infrastructure development. Aid for trade is crucial as it enables developing countries to overcome the challenges that they face in accessing and benefiting from the global market.

Conclusion

The Nairobi Agreement is a significant step towards creating a fair and equitable global trading system. It will eliminate export subsidies, simplify customs procedures, and provide assistance to developing countries to enable them to benefit from the global market. The Nairobi Agreement has the potential to transform the lives of millions of people in developing countries, by providing them with the opportunity to grow their economies and reduce poverty. It is a historic step towards creating a better world for all.