ABU DHABI, UAE – Madrid wants the upcoming 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) here next month to address the potential challenges of de-globalization and its impacts on global supply chains, Minister of State for Trade of Spain Xiana Mendez said.
“The main challenges we may have to face in this changing world are the perceived risk of de-globalization and its effect on supply chains, which might lead to protectionism and the weaponization of trade,” she said in an email interview to the Emirates News Agency (WAM) from Madrid.
She was referring to de-globalization, which is the process of diminishing interdependence and integration between nation-states, leading to decline in economic trade and investments.
Protectionism refers to government policies that restrict international trade to help domestic industries.
Weaponization of trade is the use of trade as a strategic or political tool to gain advantage around the world.
UAE’s crucial leadership at MC13
After successfully organizing COP28, the UN Climate Conference in Dubai in December, the UAE is set to host MC13 from 26th to 29th February 2024 in Abu Dhabi.
The ministerial meeting will convene representatives of 164 nations and trading blocs.
MC13 will seek key reforms to the global trading system, including expanding WTO membership, devising stronger dispute resolution mechanisms and adopting digital trade frameworks.
The Spanish minister said the UAE’s leadership will be crucial for WTO members to reach a consensus on substantive issues such as the changes initiated at the previous ministerial meeting (MC12).
She also mentioned other crucial topics such as WTO reforms, new agreements, and agriculture reforms.
Regarding Spanish-UAE trade relations, Mendez said, “As you know the EU is in favor of reaching free trade agreements (FTAs) with regional entities such as the Gulf Cooperation Council, to which the UAE belongs. Spain would be open to further options and to discuss them within the EU framework.”
Spain’s priorities at MC13
The minister emphasized that as an active member of the European Union, Spain will coordinate with other EU member countries to speak with one voice at MC13.
About Spain’s priorities at the ministerial meeting, Mendez stressed that reaching an agreement among all WTO members to allow the re-establishment of the Dispute Settlement System is the top one.
“As a country with a long fishing tradition, another of our top priorities is the preservation of marine fishery resources, and we keep great expectations to achieve the second phase of the fisheries agreement.”
The WTO members should be able to address food security issues and to continue working in the agriculture reforms to have substantial outcomes at the next meeting, she added.
Pivotal global meeting
MC13, a pivotal WTO meeting, aims to address the challenges such as supply-chain disruption, inflation, protectionism, and climate change.
The meeting will also explore ways to boost investments in trade technologies for sustainable and resilient supply chains.
The Spanish minister said all these items in the agenda are relevant for WTO members.
Given the link between trade and industrial policies and the challenges of climate change, she suggested addressing it through multilateralism. This will be beneficial for trade and environment and for developing and developed countries, and especially the most vulnerable and those affected by the climate change, Mendez explained.
The minister advocates modernizing certain aspects of the WTO that will re-establish it as a forum for meaningful trade policy deliberation. “This will enable the WTO to recover the role it has played in the governance of world trade.”
11 CEPAs support global trade
The UAE has taken up the initiative to host MC13, a prominent global meeting, given the country’s increasingly important role as a global logistics hub. The Emirates advocates for a more inclusive global trading system as a champion for increasing engagement of the Global South in international trade.
In 2021, the UAE started forging the Comprehensive Economic Partnership Agreement (CEPA) with major partners worldwide.
The CEPAs aim to establish more open, sustainable and mutually beneficial trading relations by removing barriers to trade in goods and services, simplifying customs procedures and streamlining supply chains.
UAE has concluded CEPA with 11 countries such as India, Indonesia, Israel, Türkiye, South Korea, Cambodia, Colombia, Georgia, Mauritius, Congo-Brazzaville and Costa Rica.
The first four agreements have already come into effect.