Author: AsiaOne

On Monday, Brazil joined forces with the world’s largest financial climate coalition, the Glasgow Financial Alliance for Net Zero (GFANZ), to support funding for clean energy and environmental restoration projects, including reforestation efforts in the Amazon rainforest.

The Brazilian development bank BNDES will collaborate with GFANZ to mobilise public and private financing for these initiatives, marking a significant step towards green growth.

While specific investment figures and timelines were not disclosed, BNDES President Aloizio Mercadante emphasised the government’s commitment to urgency in implementing the partnership.

President Luiz Inacio Lula da Silva aims to elevate Brazil’s role in global climate leadership, with upcoming events including hosting the Group of 20 and the United Nations COP30 climate summit.

GFANZ co-chair Mark Carney highlighted the program’s broader scope compared to existing initiatives like the Just Energy Transition Partnership (JETP).

The partnership aims to address environmental challenges across the entire economy, emphasizing the expansion of Brazil’s renewable energy sector and large-scale reforestation projects. It includes the “Arc of Reforestation” targeting the restoration of 60,000 square kilometres of Amazon rainforest.

By leveraging the expertise and resources of GFANZ, Brazil seeks to accelerate its transition towards a greener economy while addressing pressing environmental concerns, particularly in the Amazon region.

On Monday, trade ministers from around the world gathered in Abu Dhabi for a World Trade Organisation (WTO) meeting amidst challenges for global trade. Headed by Ngozi Okonjo-Iweala, the WTO aimed for new commerce rules but downplayed expectations due to geopolitical tensions.

More than three decades into its existence, the esteemed global supervisor is the cornerstone of 75% of global trade, working to create accords by consensus.  Okonjo-Iweala urged ministers to intensify negotiations, yet dismissed expectations of a deal on reforming the appeals court.

Concerns arose over India’s absence, while hopes persisted for agreements on fishery subsidies and investment barriers. Two new members, Comoros and East Timor, were set to join, along with potential progress on digital trade tariffs and agricultural rules. India pressed for a permanent waiver of domestic agriculture subsidies.

Ireland’s Minister for Enterprise, Trade and Employment, Simon Coveney, echoed sentiments expressed at the WTO’s 2022 meeting by saying he did not expect major breakthroughs. U.S. Trade Representative Katherine Tai emphasised the need to chart a collective future, not solely focus on several deals. Okonjo-Iweala’s commitment to overtime meetings mirrored her past efforts in Geneva.

European Trade Commissioner Valdis Dombrovskis emphasised the WTO’s significance in a turbulent geopolitical environment with widespread uncertainty.

Prior to the 13th WTO ministerial conference, the G-33, representing countries like India, China, and Indonesia, emphasised the necessity for a lasting solution concerning public stockholding for food security. This coalition dubbed the “Friends of Special Products,” highlights the crucial role of public stockholding in ensuring food security and bolstering rural development, particularly in developing nations.

Comprising 47 member nations, the G-33 advocates for flexibility in agricultural market access. With the commencement of WTO MC13 in Abu Dhabi, trade ministers from 164 countries are set to consider a wide array of topics. These include agriculture, fisheries, and the intersection of trade with sustainable development goals.

In response to the lack of progress in agriculture trade negotiations and unfulfilled mandates from prior conferences, the G-33 has proposed setting up a Special Safeguard Mechanism (SSM) to reduce import surges and price fluctuations. They stress the urgency of a decision on SSM at the forthcoming 14th WTO Ministerial Conference.

Furthermore, the G-33 is open to reviewing the African Group’s proposal on SSM, acknowledging its equitable consideration of developing country interests. Additionally, they emphasised the importance of maintaining special and differential treatment for developing nations within the WTO framework, highlighting the need to address non-trade concerns in agriculture trade negotiations.

On Friday, the UAE and Kenya finalised a comprehensive economic partnership agreement (CEPA), as announced by UAE Minister of Foreign Trade, Thani Al Zeyoudi. Kenya, recognised as East Africa’s economic powerhouse, emerged as one of the initial African nations engaging in bilateral trade discussions with the UAE back in 2022. This initiative aligns with the UAE’s strategic vision of diversifying its economy away from oil dependency.

The non-oil trade volume between the UAE and Kenya witnessed a significant surge, totalling $3.1 billion in 2023, marking a notable 26.4% increase compared to the previous year. Al Zeyoudi highlighted these advancements, emphasising plans for expansive collaborations spanning diverse sectors including food production, mining, technology, and logistics.

Kenya’s Trade Minister, Rebecca Miano, echoed the sentiment, emphasising the importance of the agreement in facilitating Kenyan exports’ access to Asian and Middle Eastern markets. Miano emphasised the agreement’s potential to attract substantial investment inflows, thereby bolstering Kenya’s domestic capacities and capabilities.

The UAE’s commitment to fostering international trade remains unwavering, as evident from its robust economic performance in 2023. The country’s non-oil trade in goods surged to a record-breaking $710 billion, reflecting a substantial 12.6% increase from the previous year and an impressive 34.7% surge compared to 2021.