Remarks at the Commonwealth Business Forum

Date: 22 Nov 2005
Speaker: Secretary-General Don McKinnon
Location: Malta

It is always a pleasure to address activities organised by the Commonwealth Business Council. We have very close and effective working relationships between the Commonwealth Secretariat and the CBC.

It's also always a pleasure because the business community is the most important driver of growth, of investment, and of opportunity in any economy. And it's a community which - even if the polls sometimes tell us they think otherwise - is fundamentally optimistic.

I know we are all looking forward to hearing from Prime Minister Gonzi in a few minutes, but before that, let me make just two observations. One is about global policy that will affect the way each one of you does business in the years ahead. The other is more of a housekeeping matter concerning the CBC.

Doha Round

On the first point, I am talking of course about the Doha Round of negotiations in the WTO - the context in which business is conducted.

You will hear today from Peter Mandelson who joined me in February this year at our Commonwealth Secretariat headquarters. We were launching a year of intensive activity at the political level to secure Commonwealth support for the Doha Round. That activity will culminate at the WTO talks in Hong Kong in two weeks' time.

We started that process because we could see the challenges ahead. We were concerned in particular that the old hands at the WTO would continue their usual negotiating tactics - brinkmanship, closed session trade-offs in the so-called "Green Room", and so on.

(a) that the membership of the WTO has increased and changed, so those sorts of tactics won't work the same way any more. The old hands need to know that;

(b) that unless the developed countries are willing to give more than they get, and offer real development dividends, there is a high risk that developing countries will walk away. They have already done so, as you'll recall at Cancun, and they'll do so again. For them, no deal is better than a bad deal - and I have a great deal of sympathy for that.

And (c), that there is a role for the Commonwealth in driving forward the political agenda, pursuing a high level of ambition.

Frankly, having talked to Pascal Lamy a few days ago and others close to the talks, there is now a high level of despondency and a low level of ambition for the Doha Round. The current WTO Round is unlike any round before and the negotiations are in more serious trouble than ever before.

I know that Peter Mandelson has his hands tied by his EU members. There are others here today and this week in the same boat. I used to be one of those Ministers who did the hand-tying of my delegation.

But developing countries did not get a deal on agriculture in the Uruguay Round - I also know that because I was there. And developing countries should receive more than they are expected to give this time, especially on agriculture, before trade-offs occur in the other areas such as services and rules.

Ladies and Gentlemen, this week is going to be a test of the Commonwealth leadership. If Heads this weekend can come out with a clear political message to their negotiating teams to maintain a high level of ambition - to get figures pencilled into the boxes, and to ensure those figures are significant - then our 53 leaders may be able to give the WTO the shot in the arm it requires at this critical moment. And our organisation will have shown its worth.

We account in the Commonwealth for one fifth of global trade, so we have a legitimate right and a responsibility to show leadership.

I encourage you, as partners in the drive for economic growth and prosperity in the Commonwealth, to add your voice in getting this outcome from this CHOGM.

CBC

The second point I wanted to make briefly was about the Commonwealth Business Council. It was good to meet the Board earlier this year, and it's very good to see so many of you here this morning.

I am especially grateful for the CBC's work in the last few years on the digital divide, working alongside some of our other Commonwealth partner organisations. This year's CHOGM theme, "Networking the Commonwealth for Development", has included a great deal of work in advance to prepare a report on the digital divide.

That report, to be reviewed by Foreign Ministers and Heads of Government later this week, gives us a Commonwealth roadmap. It identifies how we can use IT to improve the lives of individuals and communities in the Commonwealth in practical ways.

Some of you will know that I was mandated at Abuja to have another look at the CBC, to see whether its role fits in with the broader spread of Commonwealth activities today.

I will be reporting to Heads this week on my conclusion that the CBC definitely adds value to the Commonwealth. Therefore, it's business as usual and I look forward to continuing to support that.

So, thank you for inviting me. I look forward to spending more time with you today and tomorrow. And our leaders look forward to receiving the report of this important forum.

Download the speech: Remarks at the Commonwealth Business Forum