The geopolitical conflict between developed and Asian countries has not been resolved by the 162 World Trade Organisation ministers as earlier expected as an outcome of the Nairobi meeting.

The issue of whether emerging economies like China, India, Brazil and South Africa should remain classified as developing countries or be classified as developed countries will be concluded in the next ministerial meeting in 2017.

Developed countries — such as the US and the EU — want rapidly industrialising countries like China, India and Brazil removed from the cluster of developing nations and classified as developed nations so as not to be given the same preferential treatment that African countries want.

At the same time small countries like Burundi in East Africa are expected to move from the list of least developed countries (LDCs) to a new category known as the “small vulnerable countries” so that they can receive more preferential treatment than the LCDs.

“Despite meeting and discussing the issue, members did not agree on whether the emerging economies should now fall under the developed economies. The issue was instead pushed for discussion to the next ministerial but consultations on the matter will remain on course till then,” said a WTO official.

Despite China commanding the single largest share of global trade, it is still ranked among economies such as India, Brazil and South Africa that, despite significant growth, are still not considered “developed.”

Differences between China and the US were witnessed at the Nairobi ministerial conference when China questioned America’s push to abolish the Doha discussions and introduce “new” issues when 162 member countries are finding it difficult to reach a meaningful consensus on several issues including on food security.

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According to the Chinese representatives at the WTO, it was important to ensure that the Doha Round first addresses the rule deficit, development deficit and distortions in global trade. It asked member countries, including the big economies, to show political will and contribute more to the successful conclusion of the Doha Round talks.

Peter Kiguta, East African Community director-general of Customs and Trade said emerging powers like China, India, Brazil, Mexico, Indonesia, Malaysia and South Africa are increasingly becoming a threat to developed countries since they are no longer “policy takers.”

These countries are now increasingly influencing the pattern and scope of international trade, creating new supply and demand pulls and influences on international trade.

“WTO members can no longer ignore the new geopolitics of the world economy and need to address it amicably,” said Mr Kiguta.

China has been emphasising the need to strengthen the WTO and has opposed the trend of proliferation of mega regional trade agreements. Incidentally, China is not part of the Trans-Pacific Partnership, which is made up of the US and 11 other Asia-Pacific countries. It is also not part of the Trans-Atlantic Trade and Investment Partnership — the proposed trade pact between the US and the EU.

Also, the meeting between China and the US to open up more than $1.3 trillion’s worth of trade in technology products collapsed at the meeting in Nairobi.

The world’s two biggest economies failed to reach a deal on the Information Technology Agreement (ITA), which would have eliminated duties on IT products covered by the agreement. Although major exporters of information technology products signed the deal, China was not among them.

READ: WTO signs biggest deal in 19 years