Home | WebMail | Register or Login

      Calgary | Regions | Local Traffic Report | Advertise on Action News | Contact

World

Qatar files WTO complaint, challenging trade boycott by its neighbours

Qatar has filed a wide-ranging legal complaint at the World Trade Organization to challenge a trade boycott by Saudi Arabia, Bahrain and United Arab Emirates, according to Qatar's WTO representative Ali Alwaleed al-Thani.

Complaint is first step in formal trade dispute with Saudi Arabia, Bahrain and United Arab Emirates

A Quatari trader looks at share prices on an electronic display at the Doha Stock Exchange. Qatar is reeling from the economic consequences of a trade boycott from Gulf neighbours Saudi Arabia, Bahrain and United Arab Emirates. (Naseem Zeitoon/Reuters)

Qatar filed a wide-ranging legalcomplaint at the World Trade Organization on Monday to challengea trade boycott by Saudi Arabia, Bahrain and United ArabEmirates, according to Qatar's WTO representative Ali Alwaleed al-Thani.

By formally "requesting consultations" with the threecountries, the first step in a trade dispute, Qatar triggered a60-day deadline for them to settle the complaint or facelitigation at the WTO and potential retaliatory trade sanctions.

"The consultation request is to discuss and clarify thelegality of these measures and find a way to bring them intoconformity with their commitments," al-Thani said.

"We have always called for dialogue, for negotiations, andthis is part of our strategy to talk to the members concernedand to gain more information on these measures, the legality ofthese measures, and to find a solution to resolve the dispute."

'Coercive' attempt to isolate Qatar

The boycotting countries have previously told the WTO thatthey would cite national security to justify their actionsagainst Qatar, using a controversial and almost unprecedentedexemption allowed under the WTO rules.

The text of Qatar's complaint sent to each country cites"coercive attempts at economic isolation" and spells out howthey are impeding Qatar's rights in the trade in goods, services and intellectual property.

A view of the Doha, Qatar, skyline in July. Qatar has triggered a 60-day deadline for Saudi Arabia, Bahrain and UAE to settle the Qatari government's complaints or face litigation at the WTO and potential retaliatory trade sanctions. (STR/AFP/Getty Images)

Wide-ranging dispute

The complaints against Saudi Arabia and the UAE run to eightpages each, while the document on Bahrain is six pages.There was no immediate reaction from the three to Qatar'scomplaint, which is likely to be circulated at the WTO laterthis week.

The disputed trade restrictions include bans on tradethrough Qatar's ports and travel by Qatari citizens, blockagesof Qatari digital services and websites, closure of maritimeborders and prohibition of flights operated by Qatari aircraft.

The complaint does not put a value on the trade boycott, and al-Thani declined to estimate how much Qatar could seek in sanctions if the litigation ever reached that stage, which cantake two to five years or longer in the WTO system.

"We remain hopeful that the consultations could bear fruit in resolving this," he said.

Egypt left out

The WTO suit does not include Egypt, the fourth countryinvolved in the boycott. Although it has also cut travel anddiplomatic ties with Qatar, Egypt did not expel Qatari citizens or ask Egyptians to leave Qatar.

Al-Thani declined to explain why Egypt was not included.

"Obviously all options are available. But we have not raised a consultation request with Egypt yet," he said.

Qatar is also raising the boycott at a meeting of the UN International Civil Aviation Organization on Monday, al-Thanisaid.

Many trade diplomats say that using national security as adefence risks weakening the WTO by removing a taboo that couldenable countries to escape international trade obligations.

Al-Thani said governments had wide discretion to invoke thenational security defence but it had to be subject to oversight.

"If it is self-regulating, that is a danger to the entiremultilateral trading system itself. And we believe the WTO will take that into consideration."