
Two
billion extra souls will share our crowded planet within
the next 30 years. We will have to double food production
within 20 years. We face a world of incredible
opportunities and challenges. Trade and trade policy must
play their role as part of a wider development scenario.
We all know that trade on its own is not enough.
We have Members in Geneva who are paying up to nine times
more on debt than on health. We read that more people
died of Aids last year in Africa than in all the civil
wars. A newspaper reported recently that 25% of people in
one African country have AIDs.Trade
is an important element in development: the winners of
today and the lessons of history show this to be true.
Greater integration of developing countries into the
world trading system has been paralleled by an
unprecedented reduction in levels of human poverty. World
Bank figures indicate that over an eleven year period,
from 1987 to 1998, the number of people living on less
than $1 a day in East Asia, for example, plummeted from
418m to 278m. The period between 1990 and 1998 witnessed
a growth in flows of inward foreign direct investment to
developing countries increase from US$20 billion to US$
150 billion. The ratio of exports of goods and services
to GDP has also risen sharply. In east Asia, this ratio
nearly quadrupled from 1980 to 1998. Those who condemn
freer international trade as serving the interests of the
rich at the expense of the poor should perhaps take a
closer look at the evidence.
In
the WTO, development-related issues are at the forefront
of the new work programme which was endorsed by our
General Council on 7 and 8 February. Let me say at
the outset that this work programme is not an end in
itself. It represents an essential set of first steps
back towards the goal of a more ambitious and
wide-ranging trade negotiation round, which I remain
committed to, as I know does Commissioner Lamy.
Let
me take this opportunity to recommend to those of you who
have not yet read his speech of 17 February to the
European Institute in Washington that they do so without
delay. It is as fine an exposition of what we are
collectively trying to do as I have seen, and I would
like to express my appreciation of Pascal's insight into
the problems we face. The days of the Torquay Round are
indeed gone, but the challenges we face now
of diversity and different levels of
development should be the strengths of the
WTO as surely they are its policy imperatives.
The
mandated negotiations in agriculture and services are of
vital importance to the economic future of countries at
all levels of development. In agriculture, improved
market access and reduced competition from richer
countries' subsidies are crucial for most developing
countries, both to develop their present structure of
trade and to diversify into products with potential for
new development.
Services
trade development and diversification can also bring
considerable gains to developing countries, not only in
themselves, but as a precondition for efficiency
enhancing reforms in main infrastructural sectors such as
telecommunications, finance, insurance, and transport.
Liberalization of services trade is thus an essential
ingredient for any successful economic development
policy.
Outside
the mandated agenda, there are four priority areas on
which the Members have agreed that the General Council
Chairman and I should carry out further consultations.
We
are working now on a package of measures to assist the
least-developed countries. As we all know, LDCs account
for less than half of one per cent of world trade, and
get less than 1 per cent of foreign direct investment.
Taken together, they are the most marginalized group of
countries in world trade. They need both free access to
markets - both developed and among their other developing
partners - and, even more importantly, assistance to
build up their institutional and human capacity, and
their infrastructure, to produce and trade a diversified
range of goods and services.
The
European Union has already moved a long way towards
giving free market access for LDCs, and has promised to
give free treatment to "essentially all
products" by 2005. This is a good step. But we must
extend this as far as possible towards all products, and
to all markets: and we must do more to build capacity. I
was disappointed that we could not achieve these two
important results at Seattle. Many of your member States
supported my efforts in major statements last week in
Bangkok at UNCTAD 10. The General Council has asked me to
report positive results in Geneva before Easter.
Lets make sure this is done by then.
The
best response to LDCs' problems should be an integrated
response by all donors and international agencies. We
already have the Integrated Framework for Trade-Related
Technical Assistance, or in short the IF programme. Let's
be honest - at present it's more like the "IF
only". This framework represents an opportunity to
do something really valuable for, and together with,
least-developed countries. Making it work better, in
cooperation with UNCTAD and other organizations, is a
major priority of mine this year. But we also need
support from bilateral donors, including Europe.
Another
priority is to improve and regularize the funding of the
WTO's Technical Co-operation activities. I was shocked to
discover that the WTOs core budget for technical
assistance is only half a million dollars, although we
receive additional funds from generous donors, including
many of your member States. But we need a regular budget
sufficient to enable us to plan two to three years ahead
and respond to the increasing demands for technical
assistance programmes, not just
individual projects. We are undertaking a major review of
technical cooperation in its scope and quality
this year and are fully accountable to Members for
what we do. In the light of this I am seeking an extra
10 million Swiss francs for the regular technical
co-operation budget, and I hope you will support this
proposal in capitals.
The
issue that took most time before Seattle was
implementation of the WTO Agreements. Transition problems
with some WTO Agreements are only the most immediate
aspect of the whole complex of implementation-related
issues. None of us can be in any doubt about how
important these issues are, especially - but not only -
to developing countries. The WTO membership as a whole
has shown a real willingness to work constructively
together in order to resolve them.
We
were close to doing so in Seattle. We had on the table a
set of detailed proposals combining immediate action with
the establishment of a mechanism to review implementation
issues. I see a collective willingness among WTO Members
in Geneva to engage in a constructive, sensitive way on
this area.
Lastly,
Members, Ministers and the media have focused on the
issue of the WTO internal procedures for consultation and
decision-making. This became a high-profile issue before
and at Seattle, where a number of developing countries,
especially smaller ones, felt excluded or marginalized.
The culture is changing. Originally the GATT had less
than 30 Members. Now there are usually more than 30 in
the so-called Green Room. There clearly is a problem to
be resolved here, although I should also mention that
many Members have cautioned against a simplistic or hasty
approach. In particular, the consensus principle
which is at the heart of the WTO system - and which is a
fundamental democratic guarantee is not negotiable.
The membership has agreed that consultations should be
held in which all would be able to express their views,
and I have urged all Members who wish to do so to submit
suggestions. We will approach transparency in a most
transparent way. We will do a thorough job. We can lift
our play. We will.
In
the few months since I became Director-General, I have
made it a personal priority to include all our members.
My first visits as Director-General were to meetings of
the G77 and the OAU, and I have put special emphasis on
bringing our non-resident Members - those who do not have
the resources to maintain a permanent mission in Geneva -
more fully into the WTO's work. In October 1999 we held
the first Geneva week for non-resident Members, and this
will be a regular event in future.
Establishing
a relationship with the ACP group here in Brussels, where
many of our non-resident members are present, has also
been an important element in this strategy. I have
visited the ACP headquarters twice in my five months in
the job, the first Director-General to do so. I should
like to congratulate the European Union and the ACP on
having concluded negotiations for the post-Lome trade
arrangements and look forward to receiving notification
of these in Geneva. I also hope that an ACP office can be
opened in Geneva as soon as possible to strengthen our
contacts.
Ironically,
one immediate result of increased participation has also
been increased dissatisfaction. As, for example, the
small island states of the Caribbean are taking a more
active part in the WTO they have found things about our
ways of doing business that they don't like. And they
have a point. No organization can remain unchanging and
unresponsive to changing demands if it wants to stay
relevant. And we are changing. We have 31 applicants
waiting to come inside. Each has its special needs. Their
Governments representing 1.5 billion people want to be
part of the future. We must make sure our work is
inclusive.
This,
then, is our immediate programme of work. It is already
underway in Geneva. Representatives are working hard. We
are travelling and seeking advice. There are also many
contacts going on among Ministers and officials in
capitals to advance it and build on it.
I
count on your support and your suggestions
and your constructive criticism too. I want to go on
working closely with you and with my good friend
Pascal Lamy to ensure that the expression
"Development Round" and the hope it represents
really means something.
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