The following is excerpted from this morning´s statement by UNCTAD Secretary-General Rubens Ricupero to the Trade and Development Board. In his statement Mr. Ricupero takes stock of where the multilateral trading system, the Doha work programme and its development agenda are headed. It was followed by a lively debate in which more than 50 countries participated. The debate represented the first major international discussion of trade issues since last month´s WTO conference in Cancún.
On Cancún: drawing the right lessons
"Given that all countries have much to gain from a successful development-oriented result of the Doha work programme, as well as much to lose from its failure, the Fifth WTO Ministerial Conference should be treated as part of a journey, a continuous journey, and not as a destination missed. Although the impasse at Cancún on key elements of the work programme has led to some frustration and disappointment, we should not allow these to engulf the system or paralyse the process. In fact, it would be very pragmatic to view what happened as a wake-up call, as an opportunity for taking stock of the realities and for constructive soul-searching….
On the multilateral trading system: "there is no alternative"
"There is no alternative to moving forward on the multilateral trading system. This system has become both an emblem and a living example of global economic interdependence and heightened stakes for all countries. It is needed by the developing countries as the best possible shelter against arbitrariness and as a guarantor of fairness and equity in their trade relations. And it is needed by them because trade is an increasingly important determinant of their economic growth and development and of their ability, or inability, to escape the poverty trap.…
"The engagement of developing countries in South-South or North-South regional and bilateral trading arrangements does not in any way reduce the importance of the multilateral trading system to them. It can continue to set strong benchmarks for the terms they can negotiate in these arrangements and can affect their trade with the rest of the world, the nature of competition in global markets and beyond that. There is no substitute for the multilateral trading system if there is to be real convergence of all efforts towards a system that will be open and non-discriminatory….
"Developed countries need the multilateral trading system, too, to engage the developing countries in ever-expanding circles of trade liberalization and openness, so that their economic operators can trade and invest with greater freedom, certainty, predictability and security across borders. The majors also use the system as a form of checks-and-balances vis-à-vis one another, as can be seen by their vigorous use of the dispute settlement mechanism to challenge policies and practices of their OECD peers which they view as injurious to their trading rights and economic interests. Even without developing countries, the multilateral trading system and the dispute settlement mechanism would still be necessary for the developed countries themselves. Despite their involvement in regional and bilateral trading arrangements, the multilateral system is useful for them in attracting non-members and in pursuing such negotiating objectives as TRIPS and the Information Technology Agreement….
"All countries, therefore, have a common interest in the success of the Doha work programme and the realization of its core agenda. It will be good for developing countries if the promise of Doha is fulfilled. It will be good for developed countries, if, as a consequence of the fulfilment of these promises, developing countries grow faster and hence offer new and expanding opportunities for developed and other developing country exports, as they are already doing to a large extent. It will be good for the world economy and a viable multilateral trading system that has established its credentials by making the interests of developing countries central. This triple-win possibility raises the stakes in the negotiations.
"A successful outcome, with a development focus, is in the best interests of developed countries. Future demand growth potential in some of them is likely to level off, reflecting their long-term demographic trends and high degree of consumption saturation. Personally, I believe this has something to do with the fact that in the past two decades, the US economy, where demographics are still growing strong, has performed much better than other parts of the industrial world. Developing countries, on the other hand, collectively constitute a vast reservoir of untapped demand - demand which, if realized, could give exponential impetus to the growth of international trade and expansion of the world economy, with huge welfare effects for developed countries as well. For this potential to be realized, however, significant investments by the international community would be required to build a critical mass of overall development in these countries. This would involve putting in place and strengthening their physical, social and trade-related infrastructure, supply capacities and competitiveness….
Looking forward
"Be faithful to the mandate and to the ambition on core issues where it is clear and unambiguous; and be willing to make specific commitments, down payments and compromises. Strive for a balanced outcome within each negotiating area, bearing in mind the carry-over from the previous rounds and the overall cost/benefit of the spectrum of issues being negotiated.
"Deliver on the development agenda expressed not only in the special and differential issues and implementation issues but also in market access and the level-playing-field issues; and live up to the expectations of the majority of the WTO stakeholders. Try to enhance the inclusiveness, transparency and democracy of negotiating processes, procedures and decision-making, to reflect the burgeoning of democracies around the world that are represented in the growing membership of the WTO.
"Concentrate on the basics of the trade liberalization and border measures agenda, which are far from exhausted, and complete the unfinished business of the previous rounds, starting with the Tokyo Round, especially in agriculture, textiles and clothing, and Mode 4 in services.
"Address the legitimate doubts and concerns of developing countries as to new and more complex issues on which no consensus exists for new WTO disciplines, and for this consensus-building use not only the WTO mechanism but other relevant fora - including UNCTAD, which has well-established expertise in such areas as investment, competition and trade facilitation.
"Treat coherence as an issue that provides for synergies between national and international trade, financial, monetary and technology policies of developed and developing countries. Take into account the implications for the multiple issues that operate at the interface of trade, development and globalization, such as poverty, environment, health, culture, gender, migration, food security and rural development, competition, technology, enterprise, employment and public interest.
"Provide concrete assistance to developing countries in developing, enhancing and diversifying their productive capacities so that they can perceive the concrete benefits they could derive from trade liberalization and the multilateral trading system. This should in fact come first on the list, because it is probably at the root of the reluctance of numerous countries to engage in many areas of the negotiations…. We must address the supply constraints if we do not want to be increasingly frustrated in the trade negotiations.
UNCTAD´s role
"UNCTAD´s commitment to the multilateral trading system and its development vocation is unflinching. Through our research and policy analysis, our intergovernmental consensus-building and our technical assistance and capacity development activities, we seek to play a complementary role in relation to the work programme of Doha. We constantly monitor, refine and help achieve the development goals of the trading system, be it in a multilateral, regional or bilateral context. We provide a forum for substantive work and maturing of issues; we evaluate and try to foster dialogue on a development-friendly interface between trade and other issues; and we help developing countries to acquire greater faith in the ability of the system to deliver development gains by helping them to enhance their productive capacities….
"In preparing for the 11th session of UNCTAD next year in Brazil, we are acting on our conviction that trade negotiations and supply constraints should be addressed hand in hand. Indeed, one of the themes of the conference - "assuring development gains from the international trading system and trade negotiations" - has been and will remain our central mission….
"Cultivate the world"
"The ancient Chinese philosopher, Lao-Tzu, famously said ´Cultivate the world and its power will be universal´. By cultivating development in the world, the multilateral trading system can empower all countries to reap greater benefits. And only by cultivating developing countries´ development today will members of the multilateral trading system be able to benefit from their markets tomorrow. This means treating them not only as static markets but also as dynamic, symbiotic partners in development for all time to come."
The full text of the statement may also be found on the website under SG´s statements.
