December 2021 

Institute for International Trade

A message from the director

Welcome to our final newsletter for 2021, a most disruptive year.

The build up to the postponed Twelfth Ministerial Conference of the WTO (MC12) occupied much of our attention in the last couple of months. We released two substantive reports, on reforming the treatment of developing countries (SDT), and reforms to agricultural subsidies entitlements – with focus on African interests therein – prior to the mooted start date. While the postponement interrupted our delivery schedule, we were able to lay on webinars to launch each report. We also partnered with the Trade and Investment Research Network (TIRN) to deliver a third webinar on how developing countries could be better incorporated into the many plurilateral initiatives, or Joint Statement Initiatives (JSIs)  proliferating amongst WTO members. And I worked with IIT Visiting Fellow Christophe Bellman to deliver his excellent report on how the WTO can facilitate a circular transition; a report commissioned to us by the International Chamber of Commerce.  This report supported the emerging, and important, work of the Structured Dialogue on Trade and Environment – a topic we will be increasingly engaged in.

You will find links to these reports and webinars below.

But what did the postponement of MC12 portend for the crisis-ridden multilateral trading system? As our reports and initiatives above show, the WTO is alive and well, if operating in a predominantly JSI mode. In keeping with this, Industry Professor Jane Drake Brockman and co-author Anthony Patrick Dela Pena Chua (ABAC Philippines) set out the benefits of the now-concluded Services Domestic Regulation JSI. It makes for interesting reading, and shows what can be achieved when WTO members focus on the economics of trade with a reform mindset, rather than the default mercantilism and hostage-taking that pervades much Geneva practice.

Finally, in a significant European shift Germans transitioned from the Merkel era into the relative unknown, in an increasingly hostile geopolitical environment – as recent Russian manoeuvres in the Ukraine, and China’s coercion of Lithuania, demonstrate. So what to make of the new coalition government’s agenda? Visiting Professor Andreas Freytag explored these issues for us.

I hope you enjoy these pieces, and that your festive season will be both restful and prosperous.

Best regards,

Professor Peter Draper

POLICY & ENGAGEMENT 

Back from the Brink! The WTO gets on with Serious Business.

The World Trade Organization has not had much to celebrate in recent years, as the multilateralism system slid into deadlock and acrimony on many issues. However, progress on the Joint Statement Initiative on Services Domestic Regulation has long been a positive story, that has finally blossomed into fully-fledged success for all Members of the WTO. Read all about this momentous outcome here.

Anthony Patrick Dela Pena Chua is Lead Staffer to both the APEC Business Advisory Council (ABAC) Philippines and the Philippine Services Coalition.

Jane Drake-Brockman is Founder and Director of the Australian Services Roundtable and a co-convenor of the Asia Pacific Services Coalition.

POLICY & ENGAGEMENT 

Can Germany’s New Coalition Modernize the Country to Meet 21st Century Challenges?

Germany has been led by Angela Merkel since 2005, but is now entering a new era with a three-way coalition that promises transformation. As the EU’s leading power, changes in Germany will significantly impact the EU’s approach to international relations, including trade. How will Germany’s new era face into the challenges of the 21st Century? Read this op-ed for insights on a critical moment for Berlin.

Andreas Freytag, Professor and Chair of Economic Policy, Friedrich Schiller University, Jena and Visiting Professor with IIT

Understanding Special and Differential Treatment in the WTO - Working Paper 

SDT acknowledges that countries at different stages of development need different rules to support economic growth. However, since it involves favourable treatment for Developing Countries, and since countries currently self-designate their status as ‘Developing’, the issue of who should have the right to claim SDT is highly contested within the WTO.

This report develops new thinking on this issue, based on a recent global opinion survey conducted on the topic. The report was launched globally on November 22nd 2021.

Peter Draper, Executive Director of the Institute for International Trade at the University of Adelaide

Lisa Hunt, Business Manager of the Institute for International Trade and a Doctoral Candidate at The University of Adelaide. 

Ziyaad Ebrahim, Doctoral Candidate at The University of Adelaide.

The Circular Economy & International Trade: Options for the World Trade Organisation (WTO)

IIT’s new research report for the International Chamber of Commerce addresses a key lacuna in the increasingly central nexus between trade and environment, namely how can the multilateral trading system promote circularity in international trade. Through a focused mixed of diagnosis, analysis, and case-study illumination, the report elucidates the key blockages and proffers pragmatic suggestions for how WTO members could remove them. It is essential reading for those interested in how the trading system can promote environmentally sustainable outcomes.

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