Genuine Commitment and Political Will Needed for Free Trade
23 June 2005
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| "The mechanics of trade are about economics and capital flows, but the engine of trade is political." |
Addressing Commonwealth Ambassadors to the World Trade Organisation (WTO) in Geneva on 21 June 2005 during a two-day visit to Switzerland, the Secretary-General stated: "There is an absence of political momentum, and the momentum that does exist just became seriously complicated by the turn of events in the European Union. There is also an absence of a genuine commitment to a development round -- the very flaw in the WTO negotiations led to the collapse at Cancún. Political leaders are voicing their commitment to pro-poor outcomes in the Doha Development Round, and saying so loud and clear in public arenas. But too many leaders are also still instructing their negotiators in Geneva to pursue at any cost national rather than international objectives."
Mr McKinnon was also concerned about the likely impact of the current political turmoil in Europe on trade negotiations. Recent events, he said, are "likely to lead to more entrenched positions in countries such as France and Germany, particularly on the issue of agricultural trade subsidies."
He noted the UK's bold and commendable step of challenging the European Common Agricultural Policy, which damages the prospects of farmers in the developing world and robs them of their livelihoods.
The Secretary-General commented that the recent agreement by the G7 to write off the debts of the world's poorest countries was commendable. "However, it remains to be seen whether the G8 meeting in Gleneagles in July will take the fundamental and bold steps needed to deliver change on the one issue that can make a significant difference in the lives of people in the developing world -- trade access."
Trade, he said, was a key political issue. "The mechanics of trade are about economics and capital flows, but the engine of trade is political. Some of the main obstacles to creating a level playing field in global trade are political: governments in rich countries are reluctant to face the anger of powerful farming lobbies, whose members have been mollycoddled in government handouts for the past 50 years."
He urged governments to face up to farming lobbies and recognise that "the strong movement to eradicate world poverty is today's key lobby -- and this is the group and the argument on which you don't want to be on the wrong side. There is strong popular support for governments that are committed to increasing aid and opening their markets to developing countries."
CNIS - the Commonwealth News and Information Service Issue 240, 22 June 2005
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