Barbados Addresses Potential Protectionist Threats in Global Trade Discussion at World Economic Forum

Barbados is set to challenge potential protectionist measures by larger nations, as Minister of Foreign Affairs and Foreign Trade Kerrie Symmonds warned on Friday that new tariffs could severely harm the country’s access to international markets.

Symmonds told a mini-ministerial conference of the World Trade Organisation (WTO) at the World Economic Forum in the Swiss city of Davos of the need for fairness in global trade to protect small and emerging economies.

Newly elected as coordinating chair for the 78-nation African Caribbean and Pacific (ACP) group in the WTO, Symmonds touched on the sensitive issue of tariffs, one of the major talking points at Davos.

Symmonds warned that protectionist measures will stymie the opportunity for domestic businesses to be successful.

The minister, who described the discussions as very productive, represented the ACP as it met with the WTO in Davos to plan strategically for its next year of business. It was a groundbreaking moment for Barbados, which for the first time was invited to participate at that level of planning.

“The next issue is of course, the question of tariffs; and we all know that that has been an issue raised by the United States in the way in which tariffs can and will be used in the future. But equally, there is a life beyond tariffs . . . and there are some fundamental things that the World Trade Organisation is doing, and that we are committed to making sure that we can continue to achieve, even as we try to ensure that there is fairness in the international system,” he told Barbados TODAY.

“The way in which we use tariffs is important, especially to small and micro and emerging economies such as ours in Barbados because of the fact that we don’t want a new form of protectionism to arise,” he insisted.

Symmonds acknowledged that while Barbados appreciates countries would have their nationalistic interests, it is vitally important that protectionism does not exclude Barbados from international markets and stymie the opportunity for businesses to be successful.

He said that some crucial developmental issues were also discussed, including the future of the WTO.

The foreign trade minister highlighted the importance of greater transparency in the rules process and a stronger commitment to upholding those rules.

The status of micro, small and medium-sized enterprises was also high on the agenda.

The digital divide, where some states have access to technology and technological advances while others do not, received the attention of the meeting as well.

“That is something that, again, we are discussing ways and means of trying to correct. And I made the point that it is not an easy task, because 260 million people from countries like Barbados and African states and developing south were unable to even attend school in the year 2020 and 2021,” he said.

Symmonds said while some countries are talking about artificial intelligence and making great strides to make their economies more competitive, there is still a need to make sure the basics are right.

Dispute settlement was also discussed, Symmonds said. He said it “has been a major issue here with the World Trade Organisation for some time, and that is because the United States has not wanted any third party to make decisions that impact its national interests and its own national direction”.

He continued: “We take the position, and certainly I take the position as foreign minister, that it is critical for any type of commercial activity anywhere in the world, that if there is a dispute, that there must be a sound way of resolving that dispute. And the World Trade Organisation is now trying to work around this impediment where, for a long time, we have had a void. There is no satisfactory resolution to disputes and conflicts, and that must be corrected.”

He said whether it is rectified through mediation or conciliatory means, is to be decided as part of the ongoing process and will be prioritised for Barbados.

Symmonds said: “With regard to special and differential treatment, we heard the happy news from China today that they, relating to matters of development, are not going to be insisting on treatment of a special and differential nature; and I think that that sends a signal to the world, that they are not going to equate themselves to a small or developing economy as has been the case for some time, but really now taking a more mature posture and saying ‘look, we will lead by example, and that we recognise that we are an economy of some scale and some capacity and therefore we are going to act as such’.”

The foreign affairs minister said he hopes that others who have scale and capacity recognise that excluding small states from their markets and making life more difficult than it need be, is not the best way to go.

emmanueljoseph@barbadostoday.bb