The WTO has been on the edge of a major crisis over the past months. As spirits producers exporting all over the world, we have always insisted on the need to preserve the essential role of the WTO. We have to make sure our voice is heard when improving the system and making it fit for today’s challenges.
Crisis is no stranger to a system that involves so many players, faced with significant challenges. This time, however, it seems that a fundamental part of the global trade system is at stake. This year, taking part in the WTO Public Forum offered a unique opportunity to reaffirm why, as business, we need a predictable, rule-based trading order.
It is often asked how the WTO impacts on the daily lives of people. Anna Malmhake , CEO of the Absolut company, gave a concrete example of the benefits of the WTO from her country: all Absolut Vodka is made in the very small town of Åhus in Sweden with 10,000 inhabitants. The local economy is essential to the production process; all wheat is sourced from southern Sweden, with personal relationships established between the producers and farmers. Then, 99% of the production is put on ships in Åhus harbour and sent off into well over 140 countries. This is only possible because business can count on stable common set of rules. “It is only because we have this confidence and this predictability that we can afford to innovate and invest” said Anna, and the benefits are shared with the local community.
For us, there are three essential fonctions of the WTO that should be preserved as they offer confidence and stability for the business to trade & invest:
The WTO is and should remain a central place for international rules making. We, as active users of the international trading system, have made detailed proposals on the reform of these key functions of the WTO but also on how to improve the regular work and transparency of the WTO.
To conclude, we want to echo what was said by Anna Malmhake: “We should say thank you to WTO because we don’t say it enough”. We want to extend our gratitude to all those committed to engage reforms to preserve the WTO and make it relevant for today’s challenges. A special thanks goes to Commissioner Malmström and her team for the leadership in this area as they fully understand the importance of safeguarding an international trading system bringing tangible benefits at local level. We count on the strong commitment and leadership of the incoming Commission to achieve the necessary reforms and last but not least, we encourage WTO members to establish advisory committees with international trade experts and end-users to make sure the process of modernisation is inclusive and reflects the reality of trade.
