Monrovia – Dogged by a damning international bribery scandal that has eclipsed the workings of the national government in the wake of the Global Witness revelations, Liberia is on the verge of missing out on its recent accession to the World Trade Organization (WTO) amid reports that some elements in the lower house of the national legislature are deliberately delaying the passage of an Act to Ratify the Protocol of the Accession to the WTO for Liberia.
“If Liberia misses the June 15 deadline, it would be not just a major but a catastrophic blow. The United States government, the European Union, particularly Sweden which has reportedly invested some US$7 million in the process will not take lightly, what is supposed to be the signal that Liberia is committed to a business climate that is transparent and predictable” – A Diplomatic Source speaking on condition of anonymity Sunday
Although legislative sources have told FrontPageAfrica that the Committee on Commerce and Trade and other relevant committees have been working during the last a few days to conclude the ratification by Monday or Tuesday but there are fears that any further delay on the WTO ratification by June 15, it could cause embarrassment to the country.
With the country racing against time, there are series of processes required to conclude the ratification process as the lawmakers have to ratify the agreement and forward to the President for signature, later printed into handbill before becoming coming into effect.
In most instances, these processes require considerable amount of time and with about 15 days left to June 15, delay could cost the country dearly.
The Senate on April 21 unanimously voted to successfully pass the act which was sent to the Lower House for concurrence. But more than a month later, the Act is said to be dangling in the corridors of the lower house as the June 15 deadline nears.
It can be recalled that on December 16, 2015, World Trade Center Ministers formally approved Liberia’s membership terms at a special ceremony held at the WTO 10th Ministerial Conference in Nairobi.
The decision meant that Liberia will have until June 15, 2016 to ratify its Protocol of Accession and officially become a WTO member 30 days after it notifies its acceptance to the WTO Director-General.
On February 5, 2016, President Ellen Johnson-Sirleaf submitted to the Liberian Senate on February 5, 2016, the Protocol on (WTO) for possible ratification.
The communication was immediately discussed by the Senate plenary from where it was mandated to forward to the Joint Committee on Foreign Affairs; Commerce, Trade and Industry and Judiciary, Claims, Petition and Human Rights.
Accession Beneficial to Liberia
The Senate, in keeping with its rules, held discussion on the expediency and feasible ratification of the protocol. Members of the joint committee deliberated and scrutinized the said legislation.
Among many things the committee pointed out that the Accession protocol contains Liberia’s commitment on domestic reform, that it entails the enhancement of Liberia business climate to provide a fair transparent and predictable business environment that fosters trade in competitive manner.
The accession and membership into the WTO would grant Liberia immediate access to benefits from the WTO global system which lowers trade barriers through negotiation and applies the principle of non-discrimination resulting in reduced costs of production because imports used in production are cheaper; and reduced prices of finished goods and services, and ultimately a lower cost of living.
Under WTO rules, once a commitment has been made to liberalize a sector of trade, it is difficult to reverse. The rules also discourage a range of unwise policies. For businesses, that means greater certainty and clarity about trading conditions. For governments it can often mean good discipline.
The accession would also make it difficult for government to enforce business Polices out of fear of violating the WTO agreements. Once Liberia is officially declared a WTO member, the prices consumers pay for food and clothing, necessities and luxuries, and everything else in between, will be affected by trade policies
FrontPageAfrica has learned that missing the June 30 deadline could be costly for Liberia as international stakeholders, realizing the benefits that could come Liberia’s way invested heavily in the process to enable Liberia to become a full WTO member. One diplomatic source told FrontPageAfrica Sunday:
“If Liberia misses the June 15 deadline, it would be not just a major but a catastrophic blow.
The United States government, the European Union, particularly Sweden which has reportedly invested some US$7 million in the process will not take it lightly, what is supposed to be the signal that Liberia is committed to a business climate that is transparent and predictable.”
The source added that some US$90 million has been raised to support the WTO Enhanced Framework support to countries like Liberia’s WTO accession bid.
FrontPageAfrica has also learnt that the lower house is also said to be holding up three accompanying laws: The Foreign Trade Laws, the Competition Laws and the Intellectual Property Laws in the Lower House which sends the wrong message to the international community that Liberia is simply not ready to help itself.
In a bid to get to the bottom of the delays, FrontPageAfrica made several attempts to get Representative Charles Bardyl (District #3, River Gee County), Chairman on Commerce & Trade in the Lower House, who declined to respond, saying only that the issue is being processed. When asked what does the process entails, he told FPA legislative reporter, arrogantly and angrily that “it is being processed.”
One source told FPA that Rep. Bardyl is strangulating the legislation and reportedly causing delays and playing all kinds of games causing unnecessary delays.
Yet to hold public hearing
Representative Bardyl admitted that his committee is yet to hold public hearing on the act for ratification.
The lawmaker in another response to FPA about the act said although the act is in process but said the committee is yet to hold public hearing on the act.
“Who put you on this WTO stuff because you continue to ask me and I told you it is in process. You are aware that one can only put a bill or act on the floor of Plenary if it has gone through the process of Public hearing. We have not had public hearing so we cannot take it to plenary for action,” he said.
Nothing to Gain, lawmaker says
Another member of the Committee, Representative Worlea S. Dunah, of Nimba County who co-chairs the Committee on Judiciary at the House of Representatives says the lead committee which is the Committee on Commerce has not invited his committee for a hearing.
Representative Dunnah says he believes Liberia has nothing to gain by entering into the World Trade organization. According to the lawmaker, richer member countries are allowed to borrow up to 80% of their GDP but Liberia will be allowed to borrow only 20% of its GDP.
“We will get nothing from acceding to the WTO,” Lawmaker Dunah told FPA.
The Legislature is the last hurdle for Liberia’s admittance into the WTO. Last December, the post-war nation became the eighth member of the Least Developed Countries (LDC) to join the organization since 1995, during the Tenth Ministerial Conference of the WTO in Nairobi, after formal approval by the member Ministers.
The Liberian Senate passed into law an Act to Ratify the Protocol on the Accession to the World Trade Organization (WTO) of the Republic of Liberia. The Act received a unanimous vote to successfully pass and was sent to the House of Representatives for concurrence.
President Ellen Johnson Sirleaf submitted to the Liberian Senate on February 5, 2016 the Protocol on (WTO) for possible ratification. Accordingly, the communication was discussed by plenary of the Liberian Senate and in light of this, the Secretary of the Liberian Senate was mandated to forward to the Joint Committee on Foreign Affairs; Commerce, Trade and Industry and Judiciary, Claims, Petition and Human Rights.
But despite the accession, the post-war nation still has until June 15, 2016 to ratify its Protocol of Accession and become a WTO member; 30 days after it notifies its acceptance to the WTO Director-General.
Speaking in an exclusive interview with FrontPageAfrica a month ago, Mr. Chiedu Osakwe, Director of Accession, World Trade Organization (WTO) said while Liberia’s membership has been sealed, there are still some domestic issues that need to be completed before the country can be officially recognized and benefit from its membership with the trade body, naming legislative enactment as one main aspect.
Said Mr. Osakwe: “ As you know, WTO accession is a law based and a road-driven process, the next step is for the legislature, the parliament in Liberia to ratify a protocol, it’s a jargon, protocol on the accession of Liberia. “
“After they have ratified it – and they have to do that before the end of June, in fact before the middle of June, by the 15th of June they have to and after the parliament ratifies it, the President or the Foreign Minister will sign the instrument”.
“it’s called, the instrument on the acceptance of the protocol of accession of the protocol of Liberia and it will be deposited here. And when it is deposited with the Director General who is the depository, we count from 30 days to zero and they become a member”.
Aid for Trade Support benefit
Mr. Osakwe declared that there are some benefits associated with countries accession to the WTO.
“It will be linked to Aid for Trade support, technical assistance, capacity building in both micro and macro forms. All these are words, but if you want examples, a priority for the government of Liberia, for the President, for the trade minster(Axel Addy) who was the chief negotiator, is to establish a single window, one-stop shop for the investors who will establish in Liberia”, the WTO Director said.
On other countries that are performing well after joining the WTO, Mr. Osakwe named Ethiopia as one country that is now running well over ten years.
“Ethiopia’s process is now running well over ten years or a little bit longer. I can give you the precise date, the calendar date when we’re done. “
“But it’s been running for a while but to put this time factor into perspective from the establishment of the WTO in 1995 to now, twenty-some-years period, we have had 55 applications and working parties. We have concluded 36 working parties, 19 remains in progress”, the WTO official said.
If the House Representatives does not act fast enough in discussing the act and acting, the country could miss the opportunity to fully ascend to the WTO.
Henry Karmo, [email protected]