A time for drive in global trade and development<\/p>\n
W. Lewis Amselem, Jakarta<\/p>\n
As Trade Ministers from around the world gather in Hong Kong
\nfor the Sixth World Trade Organization Ministerial, it is
\nimportant to remember what is at stake in these negotiations --
\nnothing less than a once-in-a-generation opportunity to
\ndramatically reduce trade barriers that impede global growth,
\neconomic opportunity and poverty alleviation.<\/p>\n
To maximize the development dividends of these and other
\ninvestments, trade ministers from (host country) and more than
\n145 other WTO members around the world must seize the opportunity
\nof this week's meeting in Hong Kong to advance negotiations and
\nlay a solid foundation for ambitious outcomes across agriculture,
\ngoods and services by the end of 2006.<\/p>\n
According to the World Bank, successful negotiations have the
\npotential to lift tens of millions out of poverty. But the
\nbenefits will be limited without the kind of deep cuts in tariffs
\nthat can open markets and provide meaningful new commercial
\nopportunities. High ambition and a comprehensive approach to
\nprogress in all three core areas are critical to realizing the
\npromise of the Doha Round for the world's poor.<\/p>\n
Each WTO member has a responsibility to make the Doha
\nnegotiations a success for global trade liberalization. Given the
\ndifference between formal tariff obligations under the WTO and
\nthose currently applied on trade in goods, tariff cuts must be
\ndeep to affect the global economy and improve lives. Given the
\ndifferences in our economies, the deal must be comprehensive if
\nwe are to find enough common ground to reach agreement.<\/p>\n
The United States has made ambitious proposals in each of the
\ncore areas of the negotiations -- offering to eliminate
\nagriculture tariffs, export subsidies and trade distorting
\ndomestic support; to cut high tariffs on industrial goods; and to
\nremove barriers to growing trade in services. We are committed to
\nbreaking the deadlock in multilateral talks on agriculture. We
\nstand ready to make meaningful changes in our economic policies.
\nWe have challenged others to match our ambition with bold
\nproposals of their own.<\/p>\n
Improving market access by cutting tariffs in agriculture will
\nbe particularly critical for developing countries. For example,
\nagriculture is the largest employer in African countries,
\naccounting for about 60 percent of the labor force and producing
\nroughly 20% of merchandise exports. But the products of African
\nfarmers are subject to an average world tariff of 62 percent --
\nmore than five times the average U.S. agricultural tariff of 12
\npercent. The World Bank has calculated that nearly two-thirds of
\nthe gains from full trade liberalization would come from
\nagriculture, and 93 percent of those gains would come from
\nreducing tariffs.<\/p>\n
Developing countries have a role to play in delivering on the
\npromise of Doha, and have much to gain from making meaningful
\ncontributions to a successful conclusion of an ambitious and
\ncomprehensive Round. They stand to gain new access to markets in
\nthe developed and developing world. Developing countries conduct
\n45 percent of their trade with other developing countries, but
\nthat trade accounts for 70 percent of the tariffs they pay around
\nthe world.<\/p>\n
The United States is deeply committed to promoting greater
\neconomic growth and to reducing global poverty through the
\npowerful combination of aid and trade. The United States is the
\nworld's single largest provider of trade-related assistance,
\ndonating $1.34 billion in 2005 -- an increase of nearly 50
\npercent since 2004 and more than 100 percent since 2001.<\/p>\n
Those who fear liberalization should remember that the
\nprevious WTO Rounds did not require the immediate elimination of
\nprotections. Nor will the Doha Round. The Framework for
\nnegotiations provides for exempting some products from full
\ntariff reductions, though it will be important to limit these so
\nthat the world sees the strongest possible benefit. The Doha
\nmandate also explicitly states that special and differential
\ntreatment -- ways in which developing countries are provided
\nunique treatment such as less deep reductions and longer phase-in
\nperiods that facilitate their participation in global trade --
\nwill be an integral part of the Doha negotiations.<\/p>\n
On the margins of the G7 ministerial in London, Brazil and
\nIndia indicated they are prepared to move on market access in
\nmanufactured goods and services, as a responsible gesture from
\nadvanced developing countries to reinvigorate the negotiations.
\nSuch leadership should help to break the logjam in the global
\ntrade talks and make the Hong Kong Ministerial and subsequent
\ngatherings more fruitful.<\/p>\n
The breakthrough can only occur if the EU shows similar
\ncommitment. The EU needs to immediately respond with equally bold
\nsteps in its agriculture proposal to reinforce the goodwill of
\nIndia and Brazil. Brussels hinting that an EU revised agriculture
\nproposal will be forthcoming in early 2006 is simply not enough.
\nWhat is needed is a real and realistic offer.<\/p>\n
With high ambition, comprehensive vision and sustained
\ninvestment, but most of all with committed leadership on all
\nsides, the members of the WTO can take advantage of the
\nonce-in-a-generation opportunity the Doha Round represents.
\nNations large and small, rich and poor, from Mexico to
\nBangladesh, from Senegal to Thailand -- will share in the
\nbenefits.<\/p>\n
The writer is Chargi d'Affaires of U.S. Embassy Jakarta.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/a-time-for-drive-in-global-trade-and-development-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }