We must preserve the international trading system
Doha, Qatar, April 24, 2012
The stalemate in Doha Round is leading
to protectionism and proliferation of free trade agreements. Hence,
the international trading system must be preserved and strengthened
to provide stable and predictable trading environment in the face of
global economic crisis. This was the main message of the Round Table
discussion titled “Reflections on the international trading system
and inclusive development”, organized on the 4th day of UNCTAD XIII.
Pascal Lamy, Director General of the WTO stated that tariff
escalation, trade-distorting subsidies, and customs procedures are
still a problem. The list of issues which we had 10 years ago and
the list of issues which we have now are the same.
He also argued that the multilateral trading system is in no need
for reform as the WTO has necessary expertise and procedures. His
advice to countries – in view of the increasing import content of
exports - was to focus on what they need to import so that their
comparative advantage translates into larger value addition.
According to Rob Davies, Minister of Trade and Industry of South
Africa, global value chains are not a new phenomenon. What has
changed is the magnitude of global value chains but the concept
remains the same.
Dr Supachai Panitchpakdi, Secretary General UNCTAD was of the view
that we need to address the 21st century issues and economic
challenges like trade and climate change, trade and food security,
and trade and exchange rates. He raised the question: what is the
scope and appropriate composition of the trading system to
accommodate 21st century economic challenges?
He also cautioned that a very broad-based agenda with Single
Undertaking may be overloading the negotiating capabilities of
countries.
Round Table participants raised and discussed many other issues of
relevance to the health and strength of international trading system
and the ways in which it can and should contribute to inclusive
development.
It was felt that means should be found to make RTAs contribute to
economic and sustainable development. The focus should also be on
strengthening South-South cooperation, and also on integrating EAC,
COMESA & SADC for development cooperation in Africa.
Trade and employment is also emerging as an important 21st century
issue.
“The trading system is indeed at a cross road. Both WTO and UNCTAD
are facing crisis in one way or the other and need to be protected
and promoted”, said Pradeep S Mehta, Secretary General CUTS
International. “Trade is the engine of growth and alleviate
poverty-Therefore the international community must live upto
expectations of people to enable them to get jobs and raise their
living standards”.
A major challenge facing the Multilateral Trading System is unequal
trade barriers. Pradeep Mehta pondered why we can’t address these
inequities on negotiating tables. He also suggested a neutral panel
of scientists to work on rule-making on SPS measures.
According to him, the whole geopolitical and geo-economic system has
changed since the collapsed WTO Ministerial Conference in Cancun,
Mexico in 2003. BRICS have emerged as powerful members of the world
trading system. This is causing much of differences, which can also
be witnessed in the contentious dialogue on the Outcome Text of the
UNCTAD XIIIth event, which is ongoing.
For more information, please contact:
Kshitiz Sharma, Assistant Director CUTS International, +974-55004828 (Doha,
Qatar),
ks@cuts.org |