TRADE ALONE WILL NOT SOLVE ECONOMIC WOES, SAYS UNCTAD SECRETARY-GENERAL

TRADE ALONE WILL NOT SOLVE ECONOMIC WOES, SAYS UNCTAD SECRETARY-GENERAL

Trade and Development Board to Debate Interdependence, Market Access, Africa

(Reissued as received.)

GENEVA, 6 October (UNCTAD) -- World economic problems will not be solved by the multilateral trading system alone, but will require the strengthening of global demand in industrial economies outside the United States, said Rubens Ricupero, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), this morning.  Opening the annual session of the organization's Trade and Development Board (Geneva, 6-17 October), he said that this would redress macroeconomic disequilibria among the large industrial countries and also address the supply constraints of most developing nations.  The importance of trade negotiations has sometimes been oversold, he said, as the most they can achieve is to create export opportunities –- opportunities from which many developing countries are currently unable to benefit because they lack the necessary productive and export capabilities.

A central lesson can be drawn from Asia, whose overall resilience and success is due largely to its sound and quick economic growth and to the growing importance of intra-Asia trade, Mr. Ricupero added.  Those results show the importance of a development strategy focused on the constant diversification and upgrading of the productive sector.  The consequent enhancement of Asia's supply capabilities explained why Asian countries generally had a proactive attitude in trade negotiations.  Clearly, the link between those negotiations and building the productive sector should be at the heart of the international economic debate.  There was no more successful example of development in the past 20 years than China, whose growing economy and pragmatic approach to trade matters compensated for much of the weakness in the world economy.  China had become a major importer from the rest of Asia and other developing regions, and the engine of growth for Asia as a whole.

But while developing countries rely less on developed countries' markets than they did 20 years ago (57 per cent in 2001, versus 69 per cent in 1980), they also account for a growing share of those same countries' exports, demonstrating the increasing interdependence between developed and developing countries, said Mr. Ricupero.  The global economy is suffering from weak global demand and must be stimulated worldwide –- not just in the US and Asia.  Sustainable expansion of trade and financial flows will also require establishing coherence between the global monetary and trading systems.

Mr. Ricupero said that the Board could contribute to the wider post-Cancún debate on the role of trade, discussing areas like commodities and erosion of preferences, which had not been part of the Doha agenda, but which deserved more attention.  Those areas –- along with such other neglected areas as the links between trade and poverty, trade and gender, and trade and culture –- will be discussed at UNCTAD XI, to be held in Sao Paulo, Brazil, from 13 to 18 June 2004, marking the fortieth anniversary of the organization.

      Programme of Work for the Fiftieth Session of the TDB

The Trade and Development Report, 2003 (UNCTAD/TDR/2003), which was released on 2 October, will be the basis for the Board's high-level segment on interdependence, to be held on 7 October with a group of experts (Glauco Arbix, President of the Institute of Applied Economic Research, Brazil; Barbara Fritz, Professor, Institute for Ibero-American Studies, University of Hamburg, Germany; and John Weiss, Director, Asian Development Bank Institute, Tokyo).  This year's report analyses recent trends in trade and financial flows, as well as capital accumulation, productivity, structural change and competitiveness, both globally and in various developing regions, with a focus on Latin America (see press releases UNCTAD/PRESS/PR/2003/94-98).

In its review of developments and issues in the post-Doha work programme of particular concern to developing countries, the Board will take stock on 8 October of the situation arising from developments at last month's World Trade Organization's Ministerial Conference in Cancún.  Discussions may touch on such aspects of the Doha work programme as negotiations on agriculture, non-agricultural products and services; implementation, special and differential treatment, and technical assistance; and the "Singapore issues" (investment, government procurement, trade facilitation and competition policy).  The Board may also consider possible work following the declaration on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and public health.

Under review of progress in the implementation of the Programme of Action for the Least Developed Countries for the Decade 2001-2010, the Board will discuss on 9 October a report on Main recent initiatives in favour of least developed countries in the area of preferential market access:  preliminary impact assessment (TD/B/50/5 and Corr.1).  The report reviews recent such initiatives by the "Quad" countries (Canada, the European Union, Japan and the United States).  It shows that the Least Developed Countries’ (LDCs’) utilization of these preferences has been relatively low and discusses some of the main obstacles to be overcome in order to enhance the effectiveness of market access preferences, rules of origin and non-tariff barriers to trade, agricultural subsidies in developed countries and weak supply capacity in most LDCs.

On 13 October, the Board will consider UNCTAD's latest report on economic development in Africa:  issues in Africa's trade performance (TD/B/50/6 and Corr.1).  The report examines the reasons for Africa's declining share in world trade, the structure and composition of Africa's trade and the associated problems of commodity dependence.  It also looks at the factors influencing both Africa's ability to diversify into more market-dynamic sectors and its competitiveness, even in its traditional exports.  Panellists will contribute to the discussion.

Panellists on Africa:  Michael Atingi-Ego, Director, Research Department, Bank of Uganda, Kampala (Uganda); Professor Raphael Karlinsky, Institute of Development Studies, University of Sussex (United Kingdom);

Professor Ademola Oyejide, Deptartment of Economics, University of Ibadan (Nigeria); and Terry Townsend, Executive Director, International Cotton Advisory Committee, Washington, DC (United States).

On 10 October, the Board will consider the secretariat's report on UNCTAD's assistance to the Palestinian people (TD/B/50/4; see press release UNCTAD/PRESS/PR/2003/92).

Preparatory Process for Eleventh Session of Conference (UNCTAD XI)

Several sessions of the Board will be devoted to preparations for UNCTAD XI.  The conference theme is "enhancing coherence between national development strategies and global economic processes towards economic growth and development, particularly of developing countries".  Discussions will focus on how trade can contribute to development, with a close look at building productive capacity and international competitiveness.  In this context, during the Board's current session, a parallel event will take place on gender and trade (10 October), in the form of an interactive debate.  Gender and trade is one of the issues that will be considered in Sao Paulo next year.

Speakers in the debate on gender and trade: Yolanda Biké (Gabon), Mary Whelan  (Ireland), Rajmah Hussain (Malaysia), Sergio Marchi (Canada), Sabine Meitzel (International Trade Centre), Anh-Nga Tran-Nguyen (UNCTAD), Bernardo Calzadilla (UNIDO), Donna St.-Hill (Commonwealth Secretariat), Daniela Perez Gavidia (International Gender and Trade Network), Janice Goodson Foerde (Women and Development) and Conchita Poncini (Commission on the Status of Women).

The Preparatory Committee for UNCTAD XI, which meets for the first time on 15-16 October, will discuss preparations for the conference.  It will have before it a submission by the Secretary-General of UNCTAD (TD(XI)PC/1).

The conference, which is UNCTAD's main governing body, meets every four years to set the organization's priorities and guidelines for action.  It also serves as a forum for discussing important questions on the international agenda in the area of economics and development.

Composition of the Bureau of the Board

Sha Zukang (China) was elected as President of the 148-member Board for its fiftieth session.  Ten Vice-Presidents were also elected: Michel Adam (Belgium), Youri Afanassiev (Russian Federation); Chitsaka Chipaziwa (Zimbabwe), Djismun Kasri (Indonesia), Melissa J. Kehoe (United States), Mohamed Saleck Ould Mohamed Lemine (Mauritania), Lester Mejía Solis (Nicaragua), Iván Mora Godoy (Cuba), Mitsunori Nanba (Japan) and Dimiter Tzantchev (Bulgaria).  François Léger (France) was elected Rapporteur.

Sessional Committee I, which will review progress in implementing the Brussels Programme of Action for the LDCs, will be chaired by Marc Giacomini (France).

Sessional Committee II, which will examine economic development in Africa, will be chaired by Mohamed Saleck Ould Mohamed Lemine (Mauritania).

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