ISLAMABAD, Dec 19: Developed countries impose on the least developed nations terms for accession to the World Trade Organization (WTO) that make a joke of the organization’s claim to being a rule-based system.
This was observed in a research paper by Ratnakar Adhikari which he presented at the recent SDPI seminar.
These terms, extorted from the least developed countries (LDCs) in violation to the concessions provided to them under the WTO agreements, show that the developed member countries (DMCs) flaunt their concern about uplift of the LDCs only to put up a high moral profile as a camouflage for their rapacious policies towards weaker countries.
Mr Adhikari, who is executive director, Katmandu-based South Asian Watch on Trade, Economics and Environment (SAWTEE), gave the examples of three LDCs, out of which two — Nepal and Cambodia — were admitted to the WTO by the Cancun Ministerial Conference.
The third aspirant, Vanuatu, withdrew after a ‘spine- chilling’ experience of WTO-plus conditions imposed by the DMCs and finding it impossible after six years of negotiations to carry out the destructive changes demanded by them, particularly, the US, Australia and New Zealand.
Six other LDCs have queued up to become member of the WTO, but are facing a great deal of difficulty in fulfilling the onerous obligations placed on them by DMCs. This, in brazen floutation of the mandate of Doha Ministerial Conference to existing members to ensure that the LDCs were granted accession in terms “no less favourable than the existing members”.
The major fallacy, Mr Adhikari remarked, “lies in the WTO rules governing accession” covered by Article XII of the Marrakesh Agreement Establishing the World Trade Organization.
As per this provision, “any state or separate customs territory possessing full autonomy in the conduct of its external commercial relations or for the other matters provided for in this agreement and the Multilateral Trade Agreement may accede to this agreement, on terms to be agreed between it and the WTO”.
No guidance is given on the ‘terms to be agreed’; these being left to the negotiations between the WTO members and the candidate.
Furthermore, Article XII does not identify any concrete steps, nor does it provide any advice when it comes to the procedures to be used for negotiating terms of accession.
For this reason, the provisions of this article are being interpreted by the DMCs as Carte Blanche to impose unreasonable conditions (often known as ‘WTO plus’ conditions) on the acceding countries.
For all practical purpose, he observes, “the accession process has become akin to obtaining membership to a golf club where the existing members decide terms and conditions”.