Monrovia –The flag of the Republic of Liberia will on July 14, 2016 be hoisted at the headhunters of the World Trade Organization (WTO) in Geneva, Switzerland making Africa’s oldest republic the 163rd member of the WTO. This came as a result of the ratification of the Protocol by the National legislature.
As a result of the ratification of the protocol, the Ministry of Commerce and Industry says it is leaving no stone unturned in making preparations for the next phase of the WTO process.
As part of the process, the Ministry on Monday, began a three-day work shop on post-Accession organized by the World Trade Organization, United Nations Conference on trade and development and the Liberian Government.
At the opening of the workshop, Minister Axel Addy said, Liberia successfully deposited the “Instrument of Acceptance” at the WTO on June 14. “I am absolutely pleased to inform you that with this deposit Liberia’s final hurdle for full-fledged WTO membership is removed and we are now poised to become the 163rd Member of the World Trade Organization. Liberia’s flag will be flown at the front of the WTO Building on 14 July 2016 in recognition of the historic membership,” Minister Addy said.
The minister said upon the instruction of President Sirleaf, the negotiating team of the Liberian Government strategically used Liberia’s accession negotiations as an instrument for domestic reforms designed for post-conflict reconstruction, national reconciliation, and to integrate Liberia into the global economy on the basis of the WTO core values of the market economy, good Governance, transparency and the rule of law.
According to Minister Addy, the government believes that the accession has not been treated as an isolated process; but instead, the process is linked to critical domestic reforms and the Agenda for Transformation.
This has been of major importance and continues to be just as important also for post accession, since only through an inclusive process the full economic potential of WTO membership can be achieved, Liberia has indeed remained committed to the multilateral trading system throughout the accession and more recently the post-accession process.
Added Minister Addy: “We have emerged from the accession process hopeful and assured of the confidence placed in the values of the Multilateral Trading System and the fact that they will lead to critical reforms, facilitate the business environment and lead to a fair and healthy competition driving Innovation and economic diversification.”
Liberia’s membership enables the Country to lock in market-oriented reforms domestically and to have credible enforcement mechanisms that otherwise could become subject to reversals under pressure by special interest groups. By committing to the principles of non-discrimination, openness, predictability, transparency and competitiveness, WTO membership will be a path toward a more prosperous Liberia.
The terms and conditions for Liberia’s membership impact Liberia in various ways. For instance, committing to the agreements on Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary measures (SPS), brings along the building up of crucial quality infrastructure based on international standards to ensure safer products for Liberian consumers in order to protect the health and environment of Liberian citizens, animals and plants. By relying on a TBT and SPS infrastructure based on international standards, Liberian companies can become more competitive.
By aligning to new requirements, Liberian products will be more attractive to the International community, which gives Liberian companies access to a bigger International market to market their products.
“The poorest and most exposed Liberian citizens are also those most likely to buy the cheapest products often with the poorest quality. Reforming the quality infrastructure in TBT and SPS through WTO membership will likely lead to gains for them. Likewise, SMEs in agriculture are likely to benefit from these improvements because it will lead to better quality of Crops and livestock.
Minister Addy said Liberia is also poised to see reforms in inspections of goods being shipped to markets where pre-shipment inspection fees will now be specific and related to the services being provided by PSI firms. “Pre-shipment inspection services include inspection, automated trade facilitation procedures and infrastructure as well as issuance of certificate with expertise for valuation and classification will now have to be upgraded,” Minister Addy said.
The minister said those benefiting most from membership will likely be Liberian workers as well as young entrepreneurs. “Simplified rules will make it possible for these economic actors to compete with other bigger players local and foreign who currently dominate our marketplace. Looking forward, we are of the belief these commitments will not only create new opportunities and growth in the private sector, it will enhance our ability to mobilize domestic resources to finance our development agenda.”
The minister continued: “Over the past 10 years, Liberia development partners have supported its development agenda by providing aid. Statistic show that a total disbursed grants hit $471 million in 2013/14 and $553.5 million in 2014/15. At 27% of GDP – one of the highest rates of aid in the world – we also know that this level of aid is not sustainable.”
Minister Addy believes that WTO membership matters for Liberia and has tremendous potential because the country´s rules and laws will be approximated to international standards and likewise will enshrine the rule of law. “It matters because it will, and already has, stimulated Liberia to undertake domestic reforms, to engage in consultations to institute internal policy decisions, while aligning trade policy with Liberia’s broader policies on promoting the domestic private sector, economic transformation and development.
Experts believe that Liberia admittance into the WTO will also improve Modernization through domestic reforms undertaken and underway based on the principles of transparency and predictability of the rules-based Multilateral Trading System which will help create a competitive and favorable business environment for private sector operators, domestic and foreign. Export-oriented operators are also expected to benefit from access to the markets of all WTO Members on equal terms on a Most-Favored Nation (MFN) basis. Hence, the greatest benefits of membership arguably go to MSMEs and consumers, who are typically not able to lobby and negotiate on their own behalf.
Henry Karmo (0886522495) [email protected]