With recent signings of bilateral agreements and completion of some set targets, Seychelles finally looks poised for its much-anticipated accession to the World Trade Organisation (WTO). 

While the country looks back on what may be described as a long and daunting process which has already taken 18 years, common questions are still asked by many, such as: 

•    What is the WTO? 

•    Why are we joining the WTO?

•    What are its implications on the Seychelles' business sector and on civil society? 

What is the WTO?

The World Trade Organisation is simply an international inter-governmental organisation that deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. It was established on January 1, 1995 by the Uruguay Round negotiations (1986 - 1994). 

The multilateral trading system is governed by two fundamental principles; the Most Favoured Nation (MFN) Principle, which states that there is to be no discrimination between trading partners, and the National Treatment Principle, which provides that there is to be no discrimination between foreign and local products once these products are on the local market. 

Why are we joining the WTO?

The WTO currently stands at 159 members, accounting for 97% of the world's total trade. For a small island state such as Seychelles, the decision to join such a massive organisation rests on whether or not Seychelles is able to take part and benefit in a globalised world. However, the idea that Seychelles may thrive from global trade through the WTO has no shortage of skeptics and critics, given the costs associated, such as the costs related to the accession process, costs of preparing the local stakeholders to the globalised world, and costs of ensuring that local businesses are competitive enough to not only survive but thrive. 

Seychelles is highly dependent on trade for its survival, hence the only alternative to WTO membership is to continue facing the unpredictable forces of trade in isolation.

 The WTO offers a “member driven” trading mechanism which is predictable and transparent, and the rules of the WTO system are agreements resulting from negotiations among member governments.

 WTO membership strengthens and reinforces domestic policies and laws, it guarantees transparency and predictability, provides access to global forums and, moreover, it will allow Seychelles to engage more effectively in addressing its trade-related needs, such as attaining technical assistance for trade facilitation.

What are the implications of WTO membership on Seychelles?

The concept of non-discrimination appears in both underlying principles of the WTO; that is, Most Favoured Nation and National Treatment.

 Upon acceding to the WTO, Seychelles will be bound by both of these principles. However, this does not in any way imply boundless free trade at any cost. It is true that the principles of the WTO system is for countries to lower their trade barriers and to allow trade to flow more freely, however, how low those barriers become is subjected to negotiations among member states. It is a matter of bargaining with the other members, a matter of giving and receiving, or otherwise known as request and offer. 

For instance, joining the WTO does not mean that every services sector is completely open for foreign trade, nor will there be any list of exempted services, what there will be is a positive list called the Services Offer. The Services Offer is a list of services sectors, put together by trade officials, which indicates the sectors that Seychelles is willing to allow for entry. It is only the sectors committed to on the list that is open for WTO trade according to the protocol determined by the WTO’s General Agreement on Trade in Services (GATS). For example, if Seychelles feels a certain sector is not competitive enough to survive, then Seychelles has the right to omit this sector on the Services Offer. 

Why an 18-year accession process?

Seychelles initially requested membership to the WTO on May 31, 1995, and unfortunately made very little progress up till 2007.

 In 2008, Seychelles re-initiated its accession process, and by 2010, had submitted offers in both Goods and Services, and also established a Working Party. Now more than ever, Seychelles finds itself somewhat better-equipped to take on the challenge of the accession process, in comparison to 1995. 

 A glance at our economy as a whole shows that over the past decade our economy has matured, and now comprises a very strong tourism industry, an established fisheries sector and we are showing substantial potential in many other areas. 

The accession process may have been lengthy, but it has allowed Seychelles the opportunity to better prepare for WTO membership. Currently, Seychelles is in its final stages of accession, whereby it has already signed bilateral agreements with Canada, European Union, Mauritius, Oman, South Africa, Switzerland, Thailand and Japan.

What does the future have in store? 

The stage is set, and, provided the current pace is maintained, Seychelles looks ready to transition its hard work and commitment into full WTO membership and thereafter benefit from the protections and benefits of globalised trade.

Contributed by the Trade Division of the Ministry of Finance, Trade and Investment

With a very strong tourism industry, an established fisheries sector and the fact that we are showing substantial potential in many other areas, Seychelles is somewhat better-equipped now to take on the challenge of the WTO accession process.

Forrás: www.nation.sc