NEW DIRECTOR-GENERAL OF WTO CALLS FOR DEVELOPING COUNTRIES TO COLLECTIVELY PRESS FOR POSITIVE TRADE AGENDA

Press Release
ECO/11
TAD/1895

NEW DIRECTOR-GENERAL OF WTO CALLS FOR DEVELOPING COUNTRIES TO COLLECTIVELY PRESS FOR POSITIVE TRADE AGENDA

BANGKOK, 23 August (United Nations Information Services) -- The new Director-General of the World Trade Organization (WTO), Dr. Supachai Phanichpakdi, told a meeting on the future WTO trade agenda that developing economies should collectively search for ways to strengthen their participation in multilateral trade negotiations and integrate themselves into the global trading system.

He was delivering the keynote speech at the start of a three-day Meeting of Senior Officials on the Future of WTO Trade Agenda and Developing Countries being organized by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the United Nations Conference on Trade and Development (UNCTAD) and the Asian Development Bank from 23 to 25 August at the United Nations Conference Centre in Bangkok.

The meeting is being held in preparation for the Third WTO Ministerial Conference to be held in Seattle, Washington, at the end of this year.

Dr. Supachai, who will serve a three-year term with WTO beginning 1 September 2002, is the Deputy Prime Minister and Minister of Commerce, Royal Thai Government. He urged developing countries to intensify their push for greater market access in developed economies.

"There should be greater attempts on the part of developed countries to lower barriers to agricultural trade through an across-the-board tariff reduction, including the lowering of out-quota tariffs," he said. "Quotas should be expanded and quota management guidelines should be improved in order to create a more transparent trading environment."

He added that increased integration of developing countries into the world economic arena would lead to a significant expansion in international trade and investment. But he also noted that accession could place a significant burden on weak administrative and institutional structures. He called for "sufficient assistance" to be given to developing countries to provide the opportunity to achieve rapid accession.

"One seemingly effective measure is the opening of WTO trade negotiations to acceding countries prior to their formal membership so they

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can prepare themselves to participate more fully and actively in the discussion and negotiations once they are accepted", he said. "It need not be stressed that the increase in the number of active participants can greatly extend the scope of global liberalization and thus strengthen the multilateral trade system."

In his opening statement, Adrianus Mooy, Executive Secretary of ESCAP, said an unprecedented interest in the WTO had seen membership grow to 135 countries with more than 30 developing countries in the process of negotiating their accession. At the same time, however, he noted an unprecedented level of scepticism, open fear and hostility against the WTO and the phenomena it promotes: globalization and liberalization.

Mr. Mooy said, "This has raised important questions on the meaning of fairness and equity and more effective participation of developing countries in the multilateral trading system. There is today more than ever before greater recognition that the world trading system can only be strengthened by assisting developing countries in their integration. Effective participation in the WTO encourages domestic liberalization reform and thereby reaffirms the values on which global trade is based."

Developing countries, he added, continue to experience great difficulties in capitalizing fully on the benefits they had expected to derive from international trade agreements. Mr. Mooy urged developing countries to better understand the issues involved and to identify their interests before undertaking any negotiations in these areas.

"All too often in the past", he said,"common interests gave way to narrowly focused national interests, thus resulting in divided and weak negotiation positions among developing countries. Nevertheless, it is encouraging to note that some action in this direction has already started to take place".

The agenda of the three-day meeting includes discussion on the impact of the Asian economic crisis on trade and liberalization process; built-in agenda and interests of ESCAP developing countries; enhancing the participation of least-developed countries, including accession issues; scope of future trade agenda: various scenarios and development implications; and definition of elements of a positive trade agenda.

Ministers and senior Government officials from Bangladesh, China, Fiji, India, Indonesia, Iran, Kyrgyzstan, Lao People's Democratic Republic, Malaysia, Mongolia, Myanmar, Nepal, Netherlands, New Zealand, Pakistan, Philippines, Russian Federation, Singapore, Sri Lanka, Thailand, Turkey, United Kingdom, United States and Viet Nam, as well as representatives from other United Nations bodies and specialized agencies and representatives from intergovernmental and non-governmental organizations are participating in the meeting. * *** *