Poor countries voice concerns on marginalization

By Riyadi

SINGAPORE (JP): The world's least-developed countries yesterday voiced their concerns that global free trade was marginalizing their economies.

They called on the World Trade Organization (WTO) to help them comply with their free-trade commitments.

Speaking on the second day of the WTO ministerial conference here, Tanzanian Minister for Industry and Trade Abdallah Omari Goda called for immediate international action to reverse the marginalization of least-developed economies.

"We note with concern that the increasing trend of marginalization of the least-developed countries resulting from debt problems, poor terms of trade and supply side constraints in their economies," Goda said.

Goda said some Southern African countries were struggling to meet their WTO obligations.

"We therefore urge the WTO, in its application of rules, to be flexible enough to accommodate efforts being made by developing countries to work towards economic integration," he said.

Goda spoke on behalf of the Southern African Development Community (SADC), grouping Angola, Botswana, Lesotho, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.

Six of the community's 12 members are least-developed countries: Angola, Lesotho, Malawi, Mozambique, Tanzania and Zambia.

Mauritius Minister for Economic Planning, International Trade and Telecommunications K. Purryag said developed countries benefited more from liberalization than developing and least- developed countries.

Least-developed countries in Africa and the Caribbean were geographically isolated with small and vulnerable economies, thus they needed more attention from the WTO, he said at the same session.

Bangladesh Commerce and Industry Minister Ahmed Tofail said at an earlier session that the 48 least-developed countries' share of global trade had shrunk in the 1990s by at least 50 percent in terms of exports and 30 percent in terms of imports.

He said they only had 0.6 percent of global exports and 1 percent of imports, while they had 12 percent of the world's population.

Tofail said the least-developed countries demanded a total write-off of their debts, which stood at US$127 billion in 1994.

Foreign aid

Developed countries should ensure adequate foreign direct investment flows into these countries to offset dwindling foreign aid programs, Tofail said.

Bangladesh is one of the WTO's 29 least-developed member countries.

Tofail, Purryag and Goda all welcomed a proposal by WTO chief Renato Ruggiero that least-developed countries' exports should get zero-percent tariff treatment in developed nations.

Ruggiero also proposed immediate action to help least- developed countries find a stronger voice at the WT0 and better use the system.

Goda held out against new issues such as labor standards, investment treaty, competition policy and government procurement being introduced to the WTO agenda by developed countries.

"SADC member states believe that it would be inappropriate to expand the negotiating agenda of the WTO, partly in view of their current difficulties in implementing the Uruguay Round of agreements.

"We feel that not all member states are fully prepared to address the complex set of issues which some countries have proposed for the Singapore ministerial conference," Goda said.

Despite objections from most developing and least-developed nations, the new issues proposed by developed countries have made their way into the Singapore ministerial conference. (rid)