Beware of new protectionism by developed states: Alatas
JAKARTA (JP): Indonesian Minister of Foreign Affairs Ali Alatas has reproached a new form of protectionism being exercised by developed states which threatens to adulterate the World Trade Organization (WTO).
"The agenda of the World Trade Organization is in jeopardy of being adulterated," Alatas said yesterday.
Opening a seminar on "Latin America and the Caribbean: Economic Outlook and Opportunities" at the Center for Strategic and International Studies, Alatas pointed to the unacceptable linkage of social issues with trade.
"Certain developed countries have manifested a tendency to resort to a new form of protectionism in the guise of linking labor standards and other social and environmental concerns to the issue of trade," he said.
Several developed countries such as Norway are demanding that trade facilities given to a certain country be contingent to that country's record on various social issues.
Proponents of these linkages are demanding it be brought to the WTO's first ministerial meeting in Singapore in December.
Alatas called yesterday for a united stand, particularly from developing countries, against this new protectionism.
"This we cannot accept. For such a linkage would not only threaten to negate the comparative advantage of developing countries, but would also pose the risk of unraveling the hard- won balance of rights, obligations and interests of the parties to the Uruguay Round and the World Trade Organization Final Act," he said.
The minister then asserted it was imperative for developing countries to strengthen their solidarity in international forums. Furthermore, these states must intensify social and economic cooperation.
Through South-South cooperation, he said, countries should further exploit their complimentary attributes which are often hidden and unrecognized.
He added that by doing so, developing countries will strengthen their economic resilience and reduce dependency on the developed states.
"Success of South-South cooperation will also demonstrate that developing countries can contribute significantly to overall global economic progress," he said.
Meanwhile, WTO chief Renato Ruggiero presented Monday an outline draft of a declaration to be put to the WTO's December conference in Singapore reviewing the body's first two years.
The proposals were put to an informal meeting of representatives of WTO member states at the organization's headquarters here, an informed source was quoted by Reuter as saying in Geneva.
Ruggiero's three-part outline covered a political statement on the role of the WTO, the implementation of existing agreements and the post-Singapore work program.
The source said that negotiations would soon begin on the text of the first part pending an informal meeting on Nov. 2.
So far, all delegations consulted had emphasized that implementation issues should be the main focus at Singapore, the source added.
Nearly all had stressed the need to reaffirm the commitments to conclude impending negotiations on financial services, basic telecommunications and maritime transport.
There is also worry that if no concrete results are achieved on the environment, negative outside criticism could result, the source said.
The source also said the WTO's ultimate goal is to achieve a comprehensive set of rules governing a "totally liberalized world trade".
Some delegations preferred to speak of "progressive" liberalization, the source said.
The source said objections were raised to some of the proposals that ministers might make recommendations on, among other things, regionalism, investment, competition and labor standards. (mds)