Dáil debates

Thursday, 1 December 2005

World Trade Organisation Negotiations: Statements.

 

2:00 pm

Photo of Pat CareyPat Carey (Dublin North West, Fianna Fail)

The current round of World Trade Organisation trade negotiations was launched four years ago at Doha. At the time, Ministers named it a development round because they wanted to address the concerns of world's poorest countries. They believed and still believe that a successful conclusion to what has become known as the Doha development agenda would be one of the most effective ways to generate economic growth, create potential for development and raise living standards across the world. In this context, the forthcoming meeting in Hong Kong is a vital element in reaching these goals. It offers an opportunity to complete the talks and lay down specific guidelines in terms of market access, trade facilitation and increasing democracy within the World Trade Organisation. It is, therefore, an opportunity we cannot allow to end in failure.

We must ask ourselves whether the development agenda is being delivered. If we are honest with ourselves it is clear that, unfortunately, this does not appear to be the case. Officials from the Department of Enterprise, Trade and Employment, for example, recently suggested to the Joint Committee on Foreign Affairs that development objectives are not being met. To describe this comment as disappointing is an understatement. In a year when world leaders have heard calls from ordinary people to make poverty history it seems we are not living up to our own declared intentions. 2005 was set to be the year that could make a difference for the poorest people of the world, with the G8 summit in July, a UN General Assembly meeting in September and a WTO meeting in December. So far, little appears to have changed. If we are to be the generation which eradicates poverty, however, we must start to make serious progress at the Hong Kong meeting this month.

It will be important at the Hong Kong meeting that development is not treated as separate from the main thrust of the talks or an issue which can be dealt with in a side room. There is no point in offering some concessions in one room while undermining them in another. We must make sure the promises made are promises kept in all parts of the talks, including agriculture and trade in industrial goods and services. More effort needs to be put into the negotiations by the richer nations to ensure we secure an outcome which delivers trade benefits for people around the world, in particular in poorer countries.

At a fundamental level the mandate and mechanisms of the WTO must be revised to ensure the promotion of a trade regime which fosters poverty elimination. To ensure the outcomes of the round enable the poorest countries to gain from the world trading regime policy, governments must ensure trade policies do not exacerbate existing inequalities or impede the achievement of the millennium development goals or implementation of international agreements on human rights, gender equality and labour standards.

The most fundamental objective of the development agenda is to further the integration of developing countries into the global trading system. However, many developing countries have understandable concerns that a multilateral trading system will have severe negative effects on their economies. We must take these concerns seriously and examine the problem from their point of view. For example, the European Union and United States are seeking significant market opening from developing countries for trade in industrial goods. The concern is that if such changes take place, poor countries will no longer be able to use tariff policy to generate employment and other important benefits for their economies. Furthermore, such moves would hinder the development of national industries which are capable of supplying domestic markets and engaging in export.

Issues of concern to developing countries must be prioritised and dealt with on the basis of the "less than full reciprocity" principle. For example, special and differential treatment should be applied to implementation timeframes as it will ensure developing countries can determine that the rate of liberalisation is commensurate with their national development policies. We must set down measures which ensure developing countries can continue to receive development co-operation in the form of preferential market access from industrial countries. The G8 leaders in Scotland stated that developing countries should be able to choose their own economic policies. In Hong Kong, these countries should have the freedom to make such a choice.

While it is important to highlight the coherence between trade and development in a wide development framework, this debate should not focus purely on trade and trade liberalisation. The latter alone is not a panacea for development challenges, particularly in the case of least developed countries. On the contrary, the integration of least developed countries into the global economy will require not only trade liberalisation measures but also measures to fight HIV-AIDS, build trade capacity, attract foreign direct investment, promote agricultural and rural development, support the role of women, especially in agricultural production and, crucially, increase investment in new technologies.

It is widely accepted that issues such as market access, tariffs and subsidies cannot be treated in isolation from deeper development issues such as governance, health, education and economic reform. We must realise that trade liberalisation does not automatically offer a solution to development challenges, particularly in the case of least developed countries which are not able to fully exploit existing trading opportunities because of their low level of overall development. To integrate these countries in the global economy we need to offer them more than an opening of our markets. Increased school enrolment rates, higher quality education, functioning health systems, good governance and sound economic management are basic requirements for their economic development and integration into the global economy.

Ireland's assistance to Ethiopia is relevant to this argument. In Ethiopia I have seen how Irish aid and assistance has pushed for the development of better, more democratic and accountable governance which, in turn, should allow for a better quality of life for the population and an increased ability to do business with the wider world. Beyond the basics, the least developed countries have considerable needs in trade capacity building, an issue certain to arise at the meeting in Hong Kong. These range from transport infrastructure, port facilities, modern customs facilities, export promotion, access to information and communications systems etc.

While many developing countries would clearly benefit from improved infrastructure to facilitate trade, it is essential that requirements for trade facilitation should not place an undue burden on them. Large-scale technical assistance should be provided to help developing countries, particularly least developed countries, upgrade their trade facilities. WTO negotiations on trade facilitation must not require them to invest in costly modern customs equipment and information technology.

At both the EU and WTO levels we must recognise that in view of the difficulties facing developing countries, particularly the least developed countries, their integration into the global economy will require an integrated policy not purely focused on trade liberalisation measures. Measures such as fighting HIV-AIDS, building trade capacity, attracting foreign direct investment, promoting agricultural and rural development, supporting the role of women and increasing investment in new technologies related to agriculture must also be embraced.

This shift in policy must start in Hong Kong. The World Bank president, Paul Wolfowitz, recently wrote: "The Doha development round of trade talks will be judged by one simple test: does it enable people in poor countries to sell more of their goods overseas, creating more jobs and lifting their incomes?" There is still time — just — to achieve this outcome and, in the process, secure future prosperity for all. The Government and EU representatives must go to Hong Kong determined to ensure we secure an outcome which does not undermine development but pushes forward the fight against poverty. We could then be proud of our contribution.

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