Last week, the African Group at the World Trade Organization (WTO) again asked for changes to the WTO's rules, saying they want the rules to be fairer for developing countries, especially when it comes to things like government support for green businesses (like solar or wind power) and attracting investments in clean technologies.
They believe the current WTO rules make it harder for the developing countries, especially those in Africa to grow their economies in an environmentally friendly way.
The group made the call at the June 19, meeting of the WTO Committee on Trade and Environment in Geneva where the trade rules body has its headquarters, according to a Geneva-based trade official.
The group, which first flagged this proposal at the General Council meeting last month, said it will present a work plan in July.
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The African Group, a coalition which represents interests of the African countries at the WTO, believes it is necessary to improve WTO rules so that developing countries can have the policy space to pursue green industrialisation.
The trade official told The New Times that the ACP Group, represented by Samoa at the meeting, said in support that such reforms were crucial considering that developed nations have already used "discriminatory" green technology policies such as subsidies, local content requirements, and state aid to enhance their competitiveness.
Unfair rules
The official told this publication that the African Group circulated a paper in May noting that several members underscored the need to rebalance existing trade rules, particularly in the Agreement on Subsidies and Countervailing Measures (ASCM), Trade-Related Investment Measures (TRIMs), and Trade Related Aspects of Intellectual Property Rights (TRIPS), including technology transfer as developing members are constrained from "industrial upgrading."
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The developing countries have often argued at the WTO that they face significant constraints in implementing industrial policy measures to transform their production structures due to among others, existing rules that uphold the status quo.
This situation, the group said last month, it highlights a critical oversight by developed countries that historically used similar measures to advance their industrial development.
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"In response to the reality of unequal distribution of the gains from trade and share in global value chains, there is a need to rebalance and recalibrate the WTO policy toolbox," the trade official said of the group's arguments.
This, he added, is more so given the imperative of addressing contemporary challenges such as mitigating climate change and promoting sustainable development.
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The LDC Group, Brazil, Indonesia, the Russian Federation, India, Pacific Group, and China were also among those that expressed support at the meeting.
Several developed countries said discussions should consider how full and effective implementation of WTO commitment has helped members become part of global supply chains, and how developing countries can leapfrog polluting technologies and adopt cleaner alternatives.
"The African Group said it will formally present a comprehensive submission and a concrete work program at the July 2024 General Council meeting," the official noted.
Members also considered China's proposal on "Advancing Multilateral Discussions on Trade-Related Climate Measures" and India's request to initiate discussions on the role of technology transfer for environmental solutions.
