Kenya calls for fair trade ahead of WTO conference

Kenyan President Uhuru Kenyatta on Monday called for fair trade and urged the World Trade Organisation (WTO) ministers due to meet in Nairobi on Tuesday to remove agricultural subsidies in rich nations.

Speaking during the Fourth China Roundtable meeting in Nairobi, Kenyatta said trade rules in agriculture must be made fairer, adding that the trade distorting domestic support offered as subsidies by Western countries is negatively affecting Africa's agriculture and industry.

"If we are to industrialize, tariff escalation and peak tariffs should be eliminated. Standards should not be the next frontier of protectionism," he said.

He said the WTO, established on the foundation of non-discrimination, a rules-based global market economy, trade openness, transparency, and the rule of law is a central pillar of global economic governance.

Kenyatta said he hoped this China Round Table will lend support for the ratification of the Trade Facilitation Agreement (TFA) and for its early coming into force so that goods and services can flow more freely amongst countries; and in consequence create employment for the youth entering the job market.

"We need a rules-based Multilateral Trading System that provides space and mutual accommodation for the growth and enhanced welfare of all its members," he said.

President Kenyatta observed that the Fourth China Round Table which he officially opened in Nairobi is a valuable mechanism for strengthening the rules-based multilateral trading system.

He called for the strengthening of the WTO to enable it to fulfill its mandate effectively, saying no economy can exist in isolation.

Kenyatta said the questions and thematic focus of the Nairobi China Round Table establish the right policy context regarding Africa's position in WTO in relation to the international community.

"One of the principal gains from this process has to be the further integration of Least Developed Countries and newly Acceded Members into the Global trade regime," he said.

"National, regional and multilateral policy choices that we make will matter. The choices and positions we take will have consequences," Kenyatta said and emphasised the need for African countries to urgently diversify their economies, re-establish their manufacturing base and integrate into value chains.

He noted that although the continent has registered robust growth, manufacturing was failing and the industrial process weak.

The President said African countries must make the right policy choices and implement them all the way. "The primary responsibility to industrialize is with Africa. We need to deepen and sustain domestic economic, legal, institutional and structural reforms," he said.

He said other members of WTO also have a responsibility to ensure that the global trading system is fairer, noting that trade distorting domestic support was damaging African agriculture and industry.

"I believe that International cooperation is the key to resolving the collective socio-economic challenges that face us all. It is the basis for stability, peace and security," he said.

Foreign Affairs and International Trade Cabinet Secretary Amina Mohammed said the 4th China Round Table and the 10th WTO Ministerial Conference were taking place at an important time when there was growing focus on African Trade performance and policy in relation to the role of the Multilateral Trading System.

She affirmed Kenya's commitment to domestic reforms including those accompanied by capacity building for sustained growth and development.

"Improving competitiveness and integration into the global economy are means of delivering sustainable development and enables us to improve on the quality of lives of our respective populations," she said. Endit