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More Political Impetus Needed For Successful Talks On Development Round

10 February 2005

Trade Meeting
Commonwealth Secretary-General Don McKinnon Speaking at the opening of a one-day High Level Trade Seminar held at the Commonwealth Secretariat in London on 7 February 2005.
Commonwealth Secretary-General Don McKinnon said sustained political impetus is needed for a deal to be reached on the Doha Development Round that will benefit all countries, including developing states, through a free and fair trade regime. 

Speaking at the opening of a one-day High Level Trade Seminar at the Commonwealth Secretariat in London on 7 February 2005, the Secretary-General stated: "We want to see progress and commitment driven at the highest political level. Trade is one of the most effective tools in the fight against global poverty. And by reducing poverty, by tackling the growing gap between the rich and the poor, we pave the way to a more stable world. Negotiators must be aware of these security implications."

Mr McKinnon said that helping to promote regional prosperity will contribute to regional peace. "European leaders, after the Second World War, understood this very well: with the establishment of the European Economic Community, they decided to link their economies together through trade so they wouldn't go to war again. By further integrating our economies and developing closer trade relationships, we can reduce the risk of political, religious and ethnic conflict."

The Secretary-General noted that the loss of trade preferences for some Commonwealth countries could have a serious impact on their exports and he urged developed countries to take this issue into consideration, particularly at the forthcoming World Trade Organisation (WTO) Ministerial Conference in Hong Kong in December 2005. 

"I believe that any consensus on trade that can be achieved in our diverse group of countries will help advance trade negotiations in a significant way in the wider WTO forum. This is why I will be taking the Commonwealth message on trade myself to Brussels, Geneva and Washington. I will also be looking to secure a very strong outcome on the Doha Round when the 53 Commonwealth Heads of Government meet in November, just before the Hong Kong ministerial meeting. And then at Hong Kong itself, I intend to convene a meeting of Commonwealth trade ministers to drive forward our agenda and determination to get development dividends from the Round." 

Reiterating the commitment of the European Union to tackle development issues in the next round of trade talks, the EU Commissioner for Trade, Peter Mandelson, told the meeting: "I want to help make the year 2005 a landmark year for the world's poor, in which trade is put at the service of development." 

The Commissioner for Trade then announced that the European Commission is proposing a 20 per cent increase in the budgets of both the 10 million-euro WTO support facility and the 20 million-euro Economic Partnership Agreement (EPA) Support Facility funded out of the European Development Fund. These facilities have assisted the African, Caribbean and Pacific countries and regional economic groupings with their negotiations within the WTO and EPA frameworks. 

Douglas Alexander, the UK Minister of State for Trade, Investment and Foreign Affairs, stressed the importance of creating a trading environment which removes the obstacles poor countries face in exporting their products and ensuring that all countries benefit from a rules-based system. He said that putting in place a framework of national and regional development and trade strategies for liberalisation is important and there is a need to build countries' capacity to trade. 

Mr Alexander stated: "The Commonwealth is uniquely placed to understand the needs of developed and developing countries alike and to work together to ensure that we reach an agreement which benefits every country."

Ambassador Trevor Clarke, the Barbados Permanent Representative to the WTO, said the current round of trade negotiations should be "a round in which all developing countries whose share of world trade remains insignificant, should be spared the burden of any additional commitments and be allowed enhanced market access."

Kamalesh Sharma, India's High Commissioner to the UK, stressed that the potential of world trade to reduce poverty must be realised. He said: "The problem is not so much that international trade is inherently opposed to the needs and interests of the poor, but that the rules that govern it need to promote and advance them." 

The next stage in this initiative will see the Commonwealth Secretary-General meeting the European Commission in Brussels next month.

 

 

CNIS - the Commonwealth News and Information Service Issue 221 9 February 2005

 

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