Sixty-first General Assembly

Second Committee

13^th & 14^th Meetings (AM & PM)

delegates in second committee voice concern over suspension

of doha talks, spreading bilateral, regional trade deals

Speakers also Call for Fair Rules for World Trade Organization Accession

The recent suspension of the World Trade Organization trade negotiations had not only curbed access for developing nations to global markets, but was also leading to the spread of regional and bilateral agreements that isolated the poorest countries even further from the benefits of expanding trade, delegates said today as the Second Committee (Economic and Financial) considered international trade and development.

Delegates stressed the need for a rapid resumption of the Doha Round of talks, which had been devoted to development issues, as well as a speedy and fair conclusion that would eliminate unfair trade practices, especially for agricultural products, which was crucial if developing countries were to generate the revenues that could help pull their citizens out of poverty and achieve the Millennium Development Goals.  The Committee also heard delegates call for more equitable rules regarding accession to the World Trade Organization and for a stronger role for the United Nations Conference on Trade and Development (UNCTAD).

India’s representative said the Doha negotiations should not be about free trade alone -- international commitments must strike an appropriate balance so that individual States retained the policy space they needed to determine what was best for them.  Regarding trade in agricultural products, food security and rural livelihoods had a socio-political dimension in many developing countries, for whom minimizing the vulnerabilities of poor farmers was a priority.  The developed nations’ demands for market access, which displaced low-income and subsistence farmers in developing countries in order to satisfy commercial interests, were, therefore, insupportable.  Indeed, lower overall tariff reduction commitments and special products safeguard mechanisms were a “categorical imperative” for developing countries, which, after all, had more than 50 per cent of the world’s agricultural trade but only 2 per cent of its farmers.

Turning to non-agricultural products, he said developing countries should be able to protect industries that they considered important, in line with the World Trade Organization’s July Framework Agreement that they be allowed to protect sensitive tariff lines in small-scale and employment-intensive sectors.  Also, in order to prevent the piracy of biological material and the misappropriation of traditional knowledge, developing countries had sought amendments to the Trade-Related Aspects of Intellectual Property Rights (TRIPs) Agreement.  On preference erosion, the main responsibility to lower preferential rates to zero and pay attention to rules of origin lay with developed economies.  “Aid for Trade”, too, should be implemented alongside benefits from a successful Doha Round.

Brazil’s representative, speaking on behalf of the Southern Common Market (MERCOSUR), pointed out that agriculture represented around 38 per cent of the employment and more than 50 per cent of the total exports of developing countries.  Over 60 per cent of the people in those countries lived in rural areas and relied on agriculture to survive.  However, distortions in the international agricultural trade made it difficult for those countries to eradicate hunger and poverty.  In addition, insurmountable non-tariff barriers hampered trade flows and jeopardized the economic development of many countries that were unable to compete with farmers in developed economies, among whom were those receiving $1 billion a day in trade-distorting support.

He said that, during the Uruguay Round, developing countries had made important concessions in exchange for the promise that “full disciplines” in agricultural trade would be established in the present round.  That promise had not yet been delivered, however, and in the meantime, developing countries had lowered import tariffs to allow for international competition in manufactured goods in their own markets, without being able to generate satisfactory revenue from their agricultural goods.  Agriculture had been discriminated against and excluded from the rules of free trade for more than 50 years, and its full integration into those rules and disciplines was imperative.

Malaysia’s representative said the proliferation of regional and bilateral trade agreements in the wake of the Doha Round collapse were second-best solutions that placed developing countries at a disadvantage and strengthen protectionist tendencies.  The heart of any trade agreement must be pro-development and result in fairer trade.  It was unfair for developed nations to ask developing countries for concessions that were equal to or more than what they themselves could concede.  Abundant instances of double-standards included subsidies, which were seen as bad when applied to industry, but fine if applied to agriculture.

Pakistan’s representative said that, rather than placing the onus for striking a grand bargain at the World Trade Organization on developing countries, that responsibility rested with the key players.  Furthermore, the commitment to eliminate all forms of export subsidies by 2013, though significant, was not sufficient.  Criteria for reducing subsidies should aim to produce the least distortion possible, and be periodically reviewed and clarified.  Meanwhile, the enormous social and political issues required to liberalize the movement of labour must be openly and honestly addressed.

The United States delegate, however, said the Committee sometimes locked itself into a discussion that missed the main point:  that trade liberalization was a good thing for the country that liberalized, irrespective of the actions of others or the state of the international trading system.  The greatest service the Committee could offer to the poor in developing countries would be to offer the unqualified support for trade liberalization by their Governments.  A good start would be to develop within the United Nations the capacity to advise and help those countries which wished to liberalize their own economies.  The fear of adjustment costs inhibited trade liberalization, but those costs were typically short-term and could be mitigated by social safety nets or other programmes.

The representative of the Republic of Korea, noting that many delegates were concerned about the recent trend towards the increased use of free trade areas, said his country had joined that movement, which was another way for it to prove its commitment to liberalizing and reforming its economy.  However, the Republic of Korea still believed in the primacy of a rules-based multilateral trading system and supported efforts to revive the suspended talks, as well as pursue free trade area negotiations already under way.

Regarding fair accession to the World Trade Organization, Kazakhstan’s representative said his Central Asian nation, now in the final stage of its accession process, hoped to join under terms that did not undermine its basic economic development priorities.  Landlocked countries applying for World Trade Organization membership needed simplified and streamlined accession procedures.

Qatar’s delegate praised UNCTAD for having safeguarded gains made from trade while the representative of Viet Nam said the agency could play a greater role in global trade issues and should highlight thebenefits of open trade by producing more impartial studies on specific trade issues.

Also speaking today were the representatives of South Africa (on behalf of the “Group of 77” developing countries and China), Indonesia (on behalf of the Association of Southeast Asian Nations), Russian Federation, Morocco, Cuba, Bangladesh, China, Senegal, Australia (on behalf of the Cairns Group), Ukraine (on behalf of the Member States of the Organization for Democracy and Economic Development, or GUAM), Saint Vincent and the Grenadines (on behalf of the Caribbean Community), Mozambique (on behalf of the Southern African Development Community), Benin, Zambia, Myanmar, Mali, Uganda, Kuwait, Sudan, Belarus and Libya.

The Permanent Observer for the Holy See also made a statement.

Other speakers included officials of the International Parliamentary Union and the United Nations Industrial Development Organization Office in New York.

The Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), as well as the Managing Director of Common Fund for Commodities introduced the trade agency’s reports for the Committee’s consideration.

In other business,earlier, the Committee heard the representative of South Africa introduce, on behalf of the Group of 77 and China, three draft resolutions on external debt crisis and development; commodities; and the follow-up to and implementation of the outcome of the International Conference on Financing for Development.

Also introducing a draft resolution, on humanitarian assistance to and reconstruction of his country was the representative of the Philippines, while the Liberian delegate introduced a similar draft resolution regarding his country.

The Second Committee will meet again at 10 a.m. tomorrow, Wednesday, 19 October, to hear a panel discussion.

Background

The Second Committee (Economic and Financial) met today to discuss international trade and development.

Before the Committee was the Secretary-General’s report on International trade and development (document A/61/272), which discusses recent developments in international trade since the Sixth Ministerial Conference of the World Trade Organization in December 2005 and their impact on developing countries.

According to the report, world export in goods and services more than doubled between 1980 and 2004.  Positive gains were experienced by China, where exports amounted to about one fifth of the developing-country total in 2005; North Africa, which had the greatest trade expansion; and South-South trade, whose growing intensity resulted in 42 per cent of developing-country exports going to other developing countries in 2003.  Commodity exports like iron, copper and petroleum remain high for Africa and the least developed countries, while services reached $576 billion in 2005 for developing countries overall or nearly 24 per cent of the world total.  But in marginalized economies, the share of world total for goods and services amounted to less than 2 per cent and 1 per cent respectively, leading the report to say that economic development in those countries could not be fostered by trade liberalization alone.

The report goes on to say that the goal of increasing agricultural export revenues for developing countries met with only modest progress at the Sixth World Trade Organization Ministerial Conference.  The European Union sought greater cuts in domestic subsidies for agricultural products, but the United States wanted import tariffs reduced before it would agree to such cuts.  No agreement was reached on the percentage cuts for each tariff.  Nevertheless, countries did agree to phase out agricultural subsidies by 2013 and to end cotton export subsidies by 2006, amid calls from the “Cotton Four” ( Benin, Burkina Faso, Chad and Mali) for a development assistance package to accompany that move.

In terms of market access for other goods, the report says that the World Trade Organization has agreed that developing countries would be subject to "less than full reciprocity" in their reduction commitments, to be calculated through a "Swiss" formula designed to bring about fewer tariff cuts for developing countries as compared to developed nations.  Also, because developing countries face increasingly stringent non-tariff barriers -- often combining environmental, health (including animal health), safety, and social/ labour requirements -- in the export of electrical and electronic goods, textiles and clothing, footwear, fruit and vegetables, the United Nations Conference on Trade and Development (UNCTAD) has embarked on defining non-tariff barriers through its Secretary-General’s Group of Eminent Persons on non-tariff barriers, to help determine when they became discriminatory.  As for services, gains from liberalizing the temporary movement of persons are estimated at $150 billion to $250 billion; that and the cross-border supply of services were identified as areas of interest to developing countries, but liberalization has so far been limited.

The report also says that a decision was taken to grant the least developed countries an additional seven-and-a-half years for the implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).  Concerned that the current system allows indigenous knowledge to be commercialized without the informed consent of developing countries and without the fair sharing of any resulting benefits, developing countries have proposed that the origin of genetic resources and associated traditional knowledge in relevant patent applications must be disclosed under the Convention on Biological Diversity and the World Intellectual Property Organization (WIPO).

As for World Trade Organization membership, Saudi Arabia is the latest country to accede, with Togo awaiting finalization of its accession that leaves 30 countries waiting to be considered for membership.

Other reports before the Committee include the reports of the Trade and Development Board (documents A/61/15, Parts I, II, III and IV) on its thirty-eight and thirty-ninth executive sessions, its twenty-third special session and fifty-third regular sessions, respectively.  At those sessions, Member States heard a report of the Commission on Trade in Goods and Services and Commodities (6–10 February 2006); the report of the Commission on Investment, Technology and Related Financial Issues (6–10 March 2006); the report of the Commission on Enterprise, Business Facilitation and Development (21–24 February 2006); and the report of the fifth United Nations conference to review all aspects of the set of multilaterally agreed equitable principles and rules for the control of restrictive business practices (Antalya, Turkey, 14–18 November 2005).  They also discussed the General Assembly’s call for the United Nations system to assist African countries and the New Partnership for Africa’s Development (NEPAD), among other subjects.

Introduction of Reports

SUPACHAI PANITCHPAKDI, Secretary-General of UNCTAD, introduced the report on international trade and development and on developments in the multilateral trading system (document A/61/272), underscoring the mixed impact of trade on developing countries.  Asymmetry between the multilateral trading system on the one hand and the internal monetary and financial systems on the other aggravated the situation, as did global economic imbalances.  Uncertainty arising from the suspension of the Doha Round was another cause for concern.

He stressed that the causality of the relationship between trade growth and a country’s development was not always clear, but there did seem to be some correlation.  Over the past decade, developing countries’ share of world trade rose from 27 to 34 per cent, while trade increased as a share of their gross domestic product (GDP), from 49 per cent to 65 per cent.  South-South economic relations had been a major positive factor in that process, as well as in increasing investment flows to those countries.  Total outward foreign direct investment (FDI) reached the highest level ever recorded ($133 billion in 2005).

However, trade brought about development only under the right conditions, he said.  In the least developed countries, for example, despite substantial market openness over the past 10 to 15 years, the share of world exports stood at less than 1 per cent in 2004, while their share of FDI was 1 per cent in 2005.  The trade liberalization agenda must be complemented by a trade-for-development programme going well beyond the Doha process.  For example, goods from the least developed countries still did not benefit fully from opportunities to export duty- and quota-free to their principal markets under transparent and simplified rules of origin.  Agricultural exporters in developing countries must continue to wait for a reduction of export subsidies in agriculture, and cotton growers in West Africa saw no immediate action on cotton subsidies.

If the impasse in trade talks persisted, it might encourage a resurgence of protectionism, he said.  Indeed, bilateral and regional trade initiatives with deeper commitments were already proliferating.  The international community must bridge the divide -- putting negotiations back on trace would require World Trade Organization members to show flexibility on market access and on concluding the negotiations in the shortest possible timeframe.  In doing so, it was essential not to lower the ambitions set at the Doha talks, so as to achieve the most gain.  The Second Committee had a unique opportunity to send a strong signal to the international community to bring the Doha Round to an “ambitious and balanced conclusion”.

He said it was important that the Doha Round’s outcome reflect three goals:  to secure substantially increased market access for developing countries, including in trade in services; sufficient policy autonomy or flexibility for developing countries, coupled with universal access to essential services and a strategy to diversify away from commodity dependence; and, in keeping with Doha “ambition”, developing countries must receive quality investment to develop their infrastructure.

Building science, technology and innovation capacity should be an essential part of every country’s development strategy, he said.  As the lead entity for technology-related issues within the United Nations, UNCTAD was currently conducting reviews in collaboration with the United Nations Development Programme (UNDP) and NEPAD to help Governments formulate science and technology policies -- particularly in Africa -- so that their economies became more knowledge intensive and could produce higher value-added goods.  Meanwhile, UNCTAD also supported good corporate governance through its Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting.

The autonomy of individual Governments to shape their development policies had somewhat narrowed, one reason being that most developing economies were much more open to international trade and finance, he said.  “Aid for Trade” was therefore important.  Also, since international monetary and financial arrangements were not organized around a multilateral rules-based system, the world must find ways to deal with the international capital markets and strike an appropriate balance between domestic policies aimed at improving international competitiveness and, at the same time, avoiding possible retaliation by big trading partners. 

He agreed that energy security posed a “hidden threat” to world economic development, cautioning that the manner in which oil markets were managed and organized in the future should be a major concern to trade and development policymakers everywhere.  Equally important would be making solar and wind energy and biofuels commercially viable.

MOHAMED SALECK OULD MOHAMED LEMINE, President of UNCTAD’S Trade and Development Board, introduced the reports of the Trade and Development Board (documents A/61/15, Parts I through IV), saying that the Board’s debate on interdependence and globalization had taken place under special circumstances as the issue of globalization and the connection between national development strategies and international processes was a priority during the policy dialogue of the Midterm Review of the implementation of the Sao Paulo outcomes.  The 2006 Trade and Development Report covered the question of global partnership and national policies for development.

He said there was wide agreement among delegations on the need for greater coherence between national development strategies and international processes.  While developing countries had the responsibility for their own development, the fostering of an enabling international environment was crucial.  International processes must support and complement national development objectives to help countries diversify away from commodities, stimulate domestic accumulation of technology and foreign investment, improve productivity and build productive capacities.  UNCTAD’s policy analysis and consensus-building work could contribute to global economic processes, including multilateral trade negotiations and the follow-up to the Financing for Development Conference, with the aim of bringing about greater clarity and balance.

Regarding the “Review of Progress in the Implementation of the Programme of Action for the Least Developed Countries for the Decade 2001-2010”, he said it had been stressed that the least developed countries should continue to integrate the Programme of Action into their national policies and strategies.  International policies must include more aid and rebalance the sectoral allocations by increasing, for example, the share of official development assistance (ODA) for physical infrastructure and productive sectors.

On the topic of Africa, he said the Board had encouraged UNCTAD to maintain critical in-depth analysis and provide policy advice on African development with the objective of achieving the Millennium Development Goals and the implementation of NEPAD.  As the United Nations focal point for the integrated treatment of trade and development, UNCTAD made important contributions to the Doha Round and developing countries’ participation in the trade talks.  Regarding assistance to the Palestinian people, the deliberations on the “Report on UNCTAD’s assistance to the Palestinian people” were reflected in the Board’s report and all members of UNCTAD welcomed the Secretariat’s continued efforts to ensure implementation of the Bangkok and Sao Paulo mandates in that area, including the raising of adequate resources for UNCTAD’s technical assistance to the Palestinian people.

Questions and Answers

The representative of Benin remarked that, whatever the status of the Doha Round, Member States still had a commitment to help the least developed countries such as the four cotton exporters ( Benin, Burkina Faso, Chad and Mali).  Did Mr. Panitchpakdi think it was possible for cotton issues to be dealt with separately from other agricultural issues?  What was the future of the integrated framework for capacity-building in developing countries and “Aid for Trade”?

Mr. PANITCHPAKDI replied that, unfortunately, the early elimination of cotton subsidies would only take place with a final agreement on agricultural reform.  However, several development institutions -- the Organization for Economic Cooperation and Development (OECD), the World Bank, UNCTAD and major donors -– were meeting in Benin to determine the pace and direction of that effort.

He went on to say that work was continuing on an enhanced integrated framework and that countries that had completed diagnostic studies on the viability of development-related projects could receive up to $1 million to carry out those projects.  That amount had been thought insufficient and hopefully an enhanced framework would provide more funds.

As for “Aid for Trade”, he said the World Trade Organization Director-General had set up a task force, led by the Ambassador of Sweden, to present proposals to the Organization’s general council so as to determine the substance of that programme -- how wide should its coverage be, for example, and how should the budgetary requirements be determined?  UNCTAD believed that the world should not be waiting for a resumption of the Doha Round to implement Aid for Trade; it should be implemented straight-away.  Also, the programme should not present additional burdens to recipient countries and funds should be disbursed as grants. 

Statements

PETER LE ROUX (South Africa), speaking on behalf of the “Group of 77” developing countries and China, said the suspension of the Doha Round could produce additional protectionist tendencies.  Many developing countries were facing non-tariff barriers, especially trade-distorting technical barriers and standards that went beyond international standards and limited the entry of goods from developing countries into key markets.  Free and equitable trade could provide benefits for developing countries and developed countries should mainstream that principle into their trading policies.  It was imperative to address the fundamental issues of the trading system, such as inequality, by which developed countries had continued to distort global trade by protecting their markets.  The issue of imbalance by which the costs of implementing rules had been far higher for developing countries than the benefits must also be addressed.

He stressed the importance of easing the accession of all developing countries, particularly the least developed countries that applied for membership in the World Trade Organization, in accordance with its criteria, taking into account their development level and bearing in mind paragraph 21 of General Assembly resolution 55/182 and subsequent developments.  The Group of 77 and China called upon developed countries to ensure that the Doha Round’s suspension did not lead to lower ambitions in the development dimension.

REZLAN ISHAR JENIE (Indonesia), speaking on behalf of the Association of Southeast Asian Nations (ASEAN) and associating himself with the Group of 77 and China, expressed deep concern and disappointment at the suspension of the Doha Round.  As a group of developing and least developed countries with open economies, ASEAN attached great importance to those negotiations since they were critical to the region’s economic growth.  The group called on major players to show leadership in bringing the Round to a close and would work with them towards that objective.  ASEAN would also work towards strengthening the Doha Ministerial Declaration’s provisions on special and differential treatment.

As for the region’s own growth, he said exports had risen to $569 billion in 2004 to $646 billion in 2005, with the share of intra-ASEAN trade having grown as well.  Concrete steps were being taken to bring about a free flow of goods within ASEAN and, in December 2006, its leaders would meet to discuss the establishment of an ASEAN Economic Community (AEC).  An ASEAN Framework Agreement on Services was also expected to be endorsed and signed during that meeting.  ASEAN supported the accession of Viet Nam and the Lao People’s Democratic Republic to the World Trade Organization as early as possible, and would continue to support the constructive role that the United Nations played in developing an equitable multilateral trading system.

ALEXANDER ANANIEV ( Russian Federation) said the suspension of the trade talks had sent a negative signal on the future of the global economy and could lead to a resurgence of protectionism.  The Russian Federation supported the Secretary-General’s idea that global trade was a dynamic factor in supporting development and reducing poverty.  The suspension of the Doha Round would affect global efforts to ensure that the global trade system was a just one.

Noting that global leaders at the July Group of Eight (G-8) Summit in St. Petersburg had supported the re-launching of the Round, he welcomed talks on his country’s early accession to the World Trade Organization in accordance with the rules for all members.  The Russian Federation supported the goals of the Doha Round and the prevention of agriculture subsidies.  The removal of subsidies would help the competitiveness of its farmers and agricultural products.  The World Trade Organization membership process should take place on the basis of realistic criteria.

He stressed the important role that UNCTAD played as the United Nations main coordinating body in the trade and development arena, saying it was an important international forum for the liberalization of trade in goods and services.  The Russian Federation was committed to UNCTAD’s mandate as the leading body for reviewing issues of trade and development.

MUNIR AKRAM ( Pakistan), aligning himself with the Group of 77 and China, said the international trade regime had always been weighted against developing countries.  It was heartening, therefore, to see that many developing countries had succeeded in using trade to propel growth and development by building their national capacity for production to a competitive level, often using tariffs and other protection in the early stages of development.  Such policy space must continue to be available to the developing countries even if selectively to enable them to acquire a capacity for production and trade.  Also, the onus for striking a grand bargain at the World Trade Organization trade talks should not be placed on developing countries -- that responsibility rested with the key players.  Significant and equitable liberalization in agriculture was a key to element in the successful conclusion of the Doha Round.

Regarding export competition, he said the commitment to eliminate all forms of export subsidies by 2013, though significant, was not sufficient.  Criteria for reducing subsidies should aim to produce the least distortion possible and be periodically reviewed and clarified.  “Special Products” and “Special Safeguard Mechanisms” should be put in place to allow developing countries to retain much needed flexibility, such as to keep their sensitive sectors out of the ambit of formula cuts.  Meanwhile, the enormous social and political issues required to liberalize the movement of labour must be openly and honestly addressed.

He said special and differential treatment for the least developed countries was designed to ensure that weaker countries were not negatively affected by trade liberalization, especially in their effort to build the capacity for production, raw material processing and enlarged exports.  Hopefully, the Aid for Trade task force would generate the resources needed to help such countries, while the UNDP and Bretton Woods institutions should create a special funding window.  UNCTAD must continue monitoring the contribution of trade to development and examining the impact of the trade-related investment measures (TRIMS) and TRIPS regimes on developing countries.

ZAKIA MIDAOUI ( Morocco), aligning herself with the Group of 77 and China, said international trade and development was a matter of social development.  Global trading rules should ensure that the benefits were distributed to all countries.  As trade became more international, the obstacles had become more apparent and the rules were not sufficiently flexible to ensure the benefits of trade for all.

Non-tariff barriers were a major problem for market access, especially for the products of developing nations, she said.  As customs barriers had been reduced, a new form of barriers had emerged that were more difficult to clarify.  They included techniques such as standards and technical rules, subsidies, countervailing measures, rules of origin and stricter import licence-granting regulations.  An emerging major challenge was to ensure the application of security regulations.

As a net importer of food stuffs, Morocco regretted that food aid had moved to a lower level, she said.  Food security was a complex problem that affected food aid and development.  The suspension of trade talks just delayed efforts to address the deep-rooted reasons behind the trading imbalances and the concerns of developing countries.  Transparency was needed to preserve and expand the trading system.

NGUYEN TAT THANH (Viet Nam), aligning himself with the Group of 77 and China and ASEAN, noted that unilateralism, bilateralism and regionalism rather than multilateralism seemed to be prevailing in today’s world, a situation reminiscent of the politics of global trade whereby interest groups in some countries grasped the upper hand in trade policy at the expense of the public.  Yet Viet Nam’s trade policy had focused on multilateralism and would continue that constructive approach.

The United Nations particularly UNCTAD could play a more important role in global trade issues, he said, adding that it should highlight the benefits of open trade by producing more impartial studies on, for example, the economic costs and benefits of anti-dumping and countervailing duties and other non-trade barriers.  UNCTAD should also asses the impact of numerous free trade areas that were flourishing around the world, which should be considered as supplementary channels and kept within a reasonable framework to ensure a sound multilateral trading system.

NIRUPAM SEN ( India), aligning himself with the Group of 77 and China, said it was no accident that the negotiations launched at Doha were called the “Doha Development Agenda” and not a “market access round”.  Earlier trade talks like the Uruguay Round had not succeeded in unshackling the chains that tied down the family farms, small and marginal producers and services providers in developing countries.  Also, World Trade Organization negotiations should not be about free trade alone:  international commitments must strike an appropriate balance so that individual States retained the policy space they needed to determine what was best for them.

Regarding trade in agricultural products, he said food security and rural livelihoods had a socio-political dimension in many developing countries, for whom minimizing the vulnerabilities of poor farmers was a priority.  The developed countries’ demand for market access, which displaced low-income and subsistence farmers in developing countries to satisfy commercial interests, were therefore insupportable.  Indeed, lower overall tariff reduction commitments and special products safeguard mechanisms were a “categorical imperative” for developing countries.  After all, developed countries had more than 50 per cent of the world’s agricultural trade but only 2 per cent of the farmers, the reason being their huge agricultural subsidies.

Turning to non-agricultural products, he said developing countries should be able to protect industries that they considered important, in line with the World Trade Organization’s July Framework Agreement that they be allowed to protect sensitive tariff lines in small-scale and employment-intensive sectors.  Also, in order to prevent piracy of biological material and misappropriation of traditional knowledge, developing countries had sought amendments to the TRIPS Agreement.  On preference erosion, the main responsibility to lower preferential rates to zero and pay attention to rules of origin lay with developed economies.  Aid for Trade too should be implemented alongside benefits from a successful Doha Round.

LLANIO GONZALEZ ( Cuba) said the unequal and unjust multilateral trade system had continued to hinder the insertion of the poor countries’ economies into the international trading system.  That meant that developing countries held nearly four fifths of the world’s population, yet carried only one third of international trade.  The developed countries, which proclaimed free trade in their speeches, in practice assumed a constant protectionism causing huge losses to the developing countries with grave consequences for their populations and Government efforts to eradicate poverty.

While demanding real tariff reductions from the developing countries, they refused to implement the same approach to their multi-million dollar internal subsidies and agricultural tariffs, he said.  In some cases, those exceeded 1,000 per cent and kept tariff peaks between 350 per cent and 900 per cent for the farm products of interest to developing countries.  The suspension of the Doha Round showed the need for an in-depth reformulation of the multilateral system and the World Trade Organization.  Cuba stressed UNCTAD’s role as the coordinating centre of the United Nations on issues related to trade, finance, technology, investment and sustainable development and supported its efforts to strengthen that work role.

TOUFIQ ALI (Bangladesh), aligning himself with the Group of 77 and China, said aid-dependent development and import-substitution policies were no longer the norm, yet some countries that had pursued free-market policies were currently unable to fulfil their expectations, indicating the need for a guiding hand from Governments acting inside a clear policy space.  Among such countries were the commodity-exporting least developed countries, which were becoming increasingly unsustainable, especially in the face of stiffer competition and reduced prices.

He noted that multilateral trade rules, such as the old General Agreement on Tariffs and Trade (GATT) or the present World Trade Organization, were framed by developed countries, which had already used the trading process to achieve development without facing today’s rules.  Indeed, those rules had been designed to help the major traders.  Many believed that the Uruguay Round’s Agreement in Agriculture, for example, amounted to a special and differential provision to support the agriculture of developed countries.  Provisions to assist developing countries were generally unusable.

Countries that wished to use agriculture as a development tool were constrained in what could be done to help their domestic industry, he said, adding that unless the modalities of agricultural and non-agricultural market access were defined, it would be impossible to spell out the development dimensions in concrete terms.  For instance, only when most-favoured-nation (MFN) tariffs come down would the extent of preferential erosion become clear and only then could they be dealt with.  Also, opening just 3 per cent of the OECD labour force to short term service suppliers from developing countries would bring about the equivalent of gains from liberalizing all trade in goods, yet developed countries were reluctant to liberalize the movement of persons, due to non-economic concerns that could be easily overcome through engagement on that issue.

RICHARD TERREL MILLER ( United States) said the Committee sometimes locked itself into a discussion that missed the main point:  that trade liberalization was a good thing for the country that liberalized, irrespective of the actions of others or the state of the international trading system.  According to the World Bank, there was no example in the last half century of a country that had significantly reduced poverty or increased economic growth without significantly increasing its exports.  Less understood was that the easiest and surest path to export growth and poverty reduction did not require negotiations or action by the international community.  It was entirely in the control of developing countries themselves by lowering their tariffs and eliminating non-tariff barriers to imports.

The greatest service that that Committee could offer to the poor in developing countries would be to offer the unqualified support for trade liberalization by their Governments, he said.  A good start would be to develop within the United Nations the capacity to advise and help those countries which wished to liberalize their own economies.  Perhaps such capacity already existed in UNCTAD.  High domestic tariffs that were the wall behind the five supply-side constraints to trade, listed by UNCTAD’s Trade and Development Board, were the place to start.  The fear of adjustment costs inhibited trade liberalization.  But a recent World Bank report that included a review of more than 50 empirical studies of adjustment costs showed that the costs to an economy were very small in relation to the benefits of trade liberalization.  Those costs were typically short term and could be mitigated by social safety nets or other programmes.

LIU ZHENMIN (China), aligning himself with the Group of 77 and China, said the transfer of high-tech and high-value-added manufacturing as well as research and development away from developed countries and the outsourcing of services were the key driving force for a new round of world economic restructuring and the growth of FDI.  But rising protectionism threatened to pose a formidable challenge to that development.  The deadlocked Doha negotiations were also detrimental to the steady development of the world economy and orderly conduct of international trade.  China stood ready to work with others for an early resumption of the trade talks.

He said the mid term review carried out by UNCTAD XI was comprehensive in its assessment of the implementation of the Sao Paolo Consensus, under which UNCTAD would be strengthened and its future direction clarified.  Since its establishment in 1964, UNCTAD had been playing a crucial role in promoting development and China expected it further to improve its policy research and analysis, focusing on new issues facing developing countries.  China hoped to open its banking sector at the end of 2006, in addition to opening its tourism, telecommunications, transport, accounting and legal services industries.  After its accession to the World Trade Organization, China had removed all non-tariff measures and reduced tariffs across the board.  As its economy developed and restructuring deepened, the Chinese market was expected to bring more development opportunities for the rest of the world.

ABOUBACAR S. BARRY ( Senegal), aligning himself with the Group of 77 and China, said the suspension of the Doha talks showed the imbalances of the trading system.  The actual deadlock was a challenge to the multilateral approach that had existed for many years.  It risked creating growing protectionism and barriers to imports.  Senegal’s concern was greatest on the issue of agriculture, which contributed to its production, employment and development and which was the main stumbling block to the Doha talks.  The re-launching of the talks was essential to redressing the imbalances that harmed developing countries.

BRUCE BAIRD ( Australia), who spoke on behalf of the Cairns Group of agricultural trading countries, said the Group had invested heavily in the Doha Round and was deeply disappointed at the talks’ suspension.  It urged World Trade Organization members to re-engage in negotiations.  The fundamental reform of the agricultural markets was as urgent today as it had been at the founding of the Cairns Group 20 years ago.  Farmers around the world urgently needed relief from the costly support and protection in the markets of the major agricultural subsidisers.

He said the European Union, United States, Group of Ten and others with the highest levels of support and protection must make the necessary improvements to their offers on market access and domestic support to create the basis for the early resumption of negotiations.  Work was necessary on market access, especially for sensitive products, domestic support, and export subsidies.  The Cairns Group welcomed the decision in Hong Kong to abolish export subsidies according to a phased schedule, but more work was required.

ALI MCHUMO, Managing Director of the Common Fund for Commodities, said its core business was to combat poverty in commodity-dependent developing countries by ensuring greater productivity, increased income and enhanced export earnings from the commodities forming the base of their economies.  Commodity products from developing countries faced a number of entry hurdles, such as tariffs, stringent technical sanitary and phyto-sanitary standards and subsidies.  Greater market access and fair competition in the world commodity market would inevitably result in growth higher than the gains to be made from trade, inward investment and the assimilation of imported technology.

The Common Fund proposed a half dozen strategic policy recommendations related to international commodities, he said.  That included the implementation of past international resolutions that provided more resources for agriculture and commodity development, as well as the conclusion of the Doha Round to provide improved access for commodities.  The international community should also address the unresolved problem of commodity price decline and commodity diversification and fully support the Arusha Declaration and the Plan of Action on African Commodities, as agreed by ministers of the African Union in November 2005.

ANDRIY NIKITOV (Ukraine), speaking on behalf of the Member States of the Organization for Democracy and Economic Development (GUAM), expressed concern that not all countries had benefited equally from the multilateral trading system and called for work to continue on expanding markets while improving trade rules.  As a key organization for ensuring trade and economic growth, the World Trade Organization had a key role to play in establishing fair and non-discriminatory trade relations while taking into account the needs of transition economies.  The World Trade Organization should be constantly strengthened and it was important to facilitate the accession process for candidate countries and resume trade talks.  As the primary coordinator of United Nations activity on trade-related issues, UNCTAD should reinvigorate its efforts to integrate trade and development in its programmes and to work more closely with the World Trade Organization.

LENNOX A. DANIEL (Saint Vincent and the Grenadines), speaking on behalf of the Caribbean Community (CARICOM) and aligning himself with the Group of 77 and China, said the Caribbean depended on trade for economic growth and had highly open economies.  CARICOM welcomed the Secretary-General’s report and agreed that small vulnerable economies remained marginalized from the expanding international trading system.  Its small, vulnerable economies were constantly adjusting to the changing international trading environment while remaining compliant with its rules, yet many had not seen significant gains from the virtues of “free trade”.

Expressing disappointment with the suspension of the Doha Round, he called for the resumption of the talks, saying it was important that any outcome not disadvantage the developing countries.  It must produce a more equitable and development-oriented multilateral trading system.  CARICOM was particularly concerned about the effect of the stalled talks on agriculture and reiterated that special products and special safeguard mechanisms should remain vital elements of any outcome on agriculture.

FILIPE CHIDUMO (Mozambique), speaking on behalf of the Southern African Development Community (SADC) and associating himself with the Group of 77 and China, expressed disappointment that the Doha trade talks had been suspended without any indication for resumption.  Since agricultural subsidies and other trade barriers in some developed countries were still preventing poor countries from gaining access to the most important markets, the General Assembly should provide clear guidance to the World Trade Organization on resuming the Doha talks, while placing development at the centre of negotiations.  Leading World Trade Organization members must exercise flexibility in tackling the more contentious matters.

He emphasized the importance of concluding the Doha Round as a single undertaking, as well as the need carefully to address the issues of preferential treatment and Aid for Trade.  The SADC had acknowledged the importance of increasing trade among its member States by adopting a protocol on trade, which would further liberalize intra-regional trade and establish a free trade area by 2008.  Intra-SADC trade had increased from 5 per cent in 1980 to 25 per cent in 2006, and the region was strongly committed to achieving 35 per cent intra-SADC trade by 2008.  Meanwhile, work would continue to address the region’s dependency on a limited number of exports, weak technological capacities and limited access of farmers to credit, among other things.  ODA should be directed to infrastructure development, including through specific incentives to encourage the private sector to participation in such efforts.

PIRAGIBE TARRAGO (Brazil), speaking on behalf of the Southern Common Market (MERCOSUR) and associating himself with the Group of 77 and China, said the suspension of World Trade Organization trade negotiations was deeply regrettable.  Agriculture represented around 38 per cent of the employment and more than 50 per cent of the total export of developing countries.  Over 60 per cent of the population in those countries lived in rural areas and relied on agriculture to survive, but distortions in international agricultural trade made it difficult for developing countries to eradicate hunger and poverty.  Insurmountable non-tariff barriers also hampered trade flows and jeopardized the economic development of many countries which were unable to compete with farmers in developed economies, who were among those receiving $1 billion a day in trade-distorting support.

He said that during the Uruguay Round, important concessions had been made by developing countries in exchange for the promise that “full disciplines” in agricultural trade would be established in the present round.  That promise had not yet been delivered.  In the meantime, developing countries had lowered import tariffs to allow for international competition in manufactured goods in their own markets, without being able to generate satisfactory revenue from their agricultural products.  Member States were reminded that agriculture had been discriminated against and excluded from the rules of free trade for more than 50 years, and it was imperative that it be integrated fully into those rules and disciplines.

FERNANDO M. VALENZUELA, Head of the Delegation of the European Commission, speaking on behalf of the European Union and acceding countries, said that domestic reforms and the mainstreaming of trade in national development strategies were critical, since open markets would bring no benefit without it.  As for the Doha trade talks, the European Union had done all it could to keep the momentum going, showing genuine flexibility on agricultural market access.  It had stood ready to raise significantly its average farm-tariff cut offer provided others were prepared to show similar flexibility in their positions.  The cuts would have been the deepest anyone had ever offered in a multilateral negotiation.

He said there had been, potentially, much on offer for developing countries in the current Round and, hence, a lot to lose:  an enormous increase in market access; the phasing out of export subsidies in agriculture and substantial reduction in trade distorting domestic subsidies in agriculture; much better trade rules, forcing developed members and big developing countries to act fairly towards small countries; an agreement that developing countries would have to make fewer commitments than the developed world; and measures to address preference erosions as well as duty- and quota-free entry for products originating from least developed countries.

The European Union was in favour of implementing duty-free/quota-free entry for least developed countries products by 2008, and had been implementing the “Everything but Arms” initiative since 2001, he said.  It welcomed the reports of the World Trade Organization task force on the integrated framework for capacity-building and on Aid for Trade, and work on those two endeavours should continue regardless of the suspension of trade talks.

FERNANDE AFIAVI HOUNGBEDJI ( Benin) said the Brussels Programme of Action highlighted the specific needs of the least developed countries and the importance of trade as a means to build capacity, thereby helping to eliminate poverty and improve the quality of life.  Strengthening the role of trade for development was an important point for those countries.  It was difficult for the least developed countries to add value to their products as non-tariff barriers, increased costs for producers and the scandalous subsidies of developed countries all hurt them. 

Another challenge was the red tape that increased transaction costs, she said.  The international community must go beyond hollow words and support concrete measures to help the least developed countries, whose goods should be provided with duty-free market access without constraints.  They should be phased in by 2008 and for that reason it was very worrisome that the Doha Round had been suspended.

IRENE TEMBO (Zambia), aligning herself with the Group of 77 and China and the SADC, said she was saddened that the current talks focused on the Doha Development Agenda had stalled, Zambia had expected some of the broad outcomes from Hong Kong, including improved market access in both agriculture and non-agricultural goods; the use of the modalities for the special treatment of least developed countries in the services talks; and the elimination of all export subsidies, including those that distorted the international market for cotton and other agricultural products.   Zambia was deeply concerned that the suspension was indefinite and there was no road map for the way forward, and called for the early resumption of the talks. 

CELSTINO MIGLIORE, Permanent Observer for the Holy See, said that in the last five years, while several military initiatives and operations of vast proportions were undertaken, no substantial progress had been made in reforming international trade.  It would seem that the interests of some developed countries had prevailed over the common good, increasing the already worrisome discrepancy that separated those countries from the developing world.  It had been observed many times that the support of rich countries for their own agricultural sectors amounted to $280 billion per year, amounting to 10 times more than the aid given annually to Africa, and equivalent to the total income of the whole of sub-Saharan Africa.

Pope Paul VI had said that “freedom of trade is fair only if it is subject to the demands of social justice”, he said.  Indeed, it was not enough for developing countries simply to open their markets.  Special consideration must be given to poor countries with regard to when and how to open their markets to foreign competition.  For example, small family farms needed protection.  For their part, developed countries must honour their commitment to end agricultural dumping.  Country groups, meeting recently in Rio de Janeiro, had issued a joint communiqué in which they had established common criteria for resuming the Doha trade talks.  The crisis of the Doha Development Round hinted at a possible slide towards fragmentation of the international system and the United Nations must establish effective operating connections among the General Assembly, UNCTAD and the World Trade Organization.

DAW AYE AYE SOE ( Myanmar), aligning herself with the Group of 77 and China and ASEAN, said trade had become increasingly important for developing countries by 2004, the export of goods and services made up 49 per cent of their GDP.  For Myanmar, South-South trade, particularly with fellow ASEAN members, was of particular importance and accounted for 89.9 per cent of the total trade volume.

The Secretary-General’s report highlighted the serious negative consequences of the suspension of the World Trade Organization talks, she said.  Myanmar shared the concern that it would lead to a resurgence of bilateral and regional trade initiatives in which developing countries found themselves at a disadvantage.  It could also lead to the continued persistence of trade-distorting agricultural subsidies.

ABDUL RAHIM BAKRI (Malaysia), aligning himself with the Group of 77 and China and ASEAN, said that a collapsed Doha Round would lead to a proliferation of regional and bilateral free trade agreements, which were second-best solutions that would place developing countries at a disadvantage because of inherent power asymmetries between the rich and poor nations.  The collapsed Doha Round would also strengthen protectionist tendencies.  Given that, Malaysia firmly believed that the Doha talks should resume as quickly as possible, and that the burden to re-start those talks lay with the developed countries since their suspension was due to those countries’ unwillingness to agree on agricultural market access in the first place.

Beyond the need to resume the talks, the content of the Round’s outcome must also be addressed, he said.  For Malaysia, the heart of the issue lay in ensuring that any agreement reached was pro-development and resulted in fairer trade.  It was unfair, for example, for developed countries to ask developing countries for concessions that were equal or more than what they themselves could make.  Instances of double-standards abounded:  subsidies were held to be bad when used in industry, but alright in agriculture; private interests were sacred when it came to intellectual property rights, while public interest ran a poor second.  Also, when negotiating World Trade Organization agreements, it was important to remember that they were burdensome for developing countries, not just in legal terms, but also in economic terms.  There was a need to level both the legal and economic playing fields.

N’GOLO FOMBA ( Mali), aligning himself with the Group of 77 and China, noted that global trade was a major factor for development, especially for financing.  At the Financing for Development Conference in Monterrey, the developed countries had promised to allow unlimited access to their markets for products from least developed countries.  Exports had increased as a result, thanks in part also to free trade zones and the harmonization of free trade within those zones.  Mali had integrated the directives of international and regional accords into its laws and experienced some growth as a result.  But integration into the international economy was still very low.  The overall contribution of least developed countries to global trade was 1.8 per cent for goods and 0.5 per cent for services.  That was linked to the major subsidies paid by developed nations to their farmers and the lack of transport infrastructure.  Mali called for the resumption of the Doha Round and the elimination of subsidies, among other things.

BENEDICT LUKWIYA ( Uganda), aligning himself with the Group of 77 and China, said the big question was how to use trade to help those who badly needed to develop their economies.  In Uganda, trade had been integrated into the national poverty eradication action plan, of which the conclusion of the Doha Round was an important part.  Agriculture was the main source of livelihood for more than 80 per cent of the Ugandan population, and it was regrettable that developing countries were prevented from reducing poverty because of trade barriers imposed by rich countries.

He said that in some areas, negotiating positions were no longer far apart, including the remarkable agreement to eliminate all export subsidies by 2013.  The temporary movement of persons and cross-border supplies were another area of export interest to developing countries, as was the need to monitor non-tariff barriers (such as environmental, health, safety and social labour requirements) that were becoming more stringent and complex.  There was a real risk that more countries would go for bilateral and regional initiatives, in which developing countries, especially the least developed ones, had less bargaining power.

BARLYBAY SADYKOV ( Kazakhstan) said his country was strongly committed to regional cooperation and saw its crucial mission as promoting regional economic integration, trade and investment.  Transportation was one of the key factors to successful economic development, and high transport costs undermined the competitiveness of landlocked developing nations as well as their ability to produce at lower costs.  The integration of landlocked developing countries into the global trading system was crucial for their economic growth and development.

Kazakhstan was in the final stage of its accession to the World Trade Organization, which hopefully would create a conducive environment for sustainable economic growth, he said.  The country hoped to join the World Trade Organization under terms that did not undermine its basic economic development priorities.  It required, for example, longer transition periods in several areas and more flexible measures in the agricultural sector.  Landlocked countries applying for World Trade Organization membership should be given an opportunity to use simplified and streamlined accession procedures and engage in facilitated accession negotiations.

KHALID FALEK AL-AZMI (Kuwait), aligning himself with the Group of 77 and China, said that because international trade was the engine of development, the world should create an environment to help developing countries as they struggled to face up to globalization and achieve the Millennium Development Goals.  Kuwait hoped that a fair trading system would allow the least developing countries access to developed world markets while acknowledging their limited role in international decision-making. 

For its own part, Kuwait had created a working group to oversee the country’s transformation into an international financial and trade hub, he said.  Some pioneer projects would focus on infrastructure development, strategic transport, energy and oil.  Through the “Silk Town Project”, worth 150 million dinars, Kuwait would set up a regional centre where the flow of products and technology would be monitored and managed, in line with plans to diversify the country’s revenue sources.  Kuwait had also begun negotiations with the United States, Singapore and the Organization of Gulf States to finalize various free trade agreements.  It had also created a Kuwaiti Fund for Economic Development, from which several developing countries had already benefited.  Although Kuwait had started out as one of the world’s poorest countries, it had achieved many of its development goals.  To help others do the same, Member States must do their utmost to heed all past United Nations agreements.

MOHAMMED AL KUWANI (Qatar), aligning himself with the Group of 77 and China, said that despite an improvement in the global economy, there were far more challenges this year as compared to the last one.  Developed countries continued to support developing countries through ODA while denying access to their markets.  They should not be allowed to call for open markets while at the same time meeting that call in such a selective way.  Liberalization of capital should be coupled with an elimination of restrictions in trade and the movement of persons.

He said the suspension of Doha trade talks was regrettable and expressed the hope that they would resume as soon as possible.  Qatar did not wish the World Trade Organization to fall in importance just because of a suspension in trade talks.  Rather, the multilateral trading system needed strengthening through more open and comprehensive decision-making procedures as well as protection for the special development prerogatives of developing countries.  The World Trade Organization should be made into a universal body by accelerating the membership of acceding countries and removing political barriers to accession, especially with regard to the least developed countries.  UNCTAD deserved praise for safeguarding gains from trade.

MAGDI A. MOFADAL (Sudan), aligning himself with the Group of 77 and China, said the suspension of the Doha trade talks implied that trade distortions in agriculture would persist with grave consequences for the least developed countries.  The developed world must demonstrate flexibility in the negotiations, so as to preserve the multilateral trading system.  The Sudan, which was taking serious steps to meet the criteria for joining the World Trade Organization, strongly appealed to that organization’s members to facilitate its accession, having just emerged from conflict.

He said agriculture was the most important sector of the Sudan’s economy, and so opening the markets of developed countries for Sudanese agricultural products would impact positively on efforts by the National Unity Government to eradicate poverty, combat unemployment and achieve balanced regional development.  The latter was vital for the sustainability of peace and the prevention of new conflicts, since the conflict in South Sudan and Darfur were the legacies of unbalanced regional development.  The country was faced with the daunting task of reconstruction and development on a large scale, and one way in which the international community could help was to let the Sudan become a member of the World Trade Organization.

KANG-HYEON YUN ( Republic of Korea) said he preferred to call the current status of the Doha Round as a “suspension of negotiations”, rather than a collapse or breakdown, since that could be self-prophesying.  Any failure of the Round would seriously undermine the multilateral trading system and developing countries would bear the largest cost.  To resume talks, the major players should make the first move.  The current World Trade Organization system had a core negotiating group called the “new Quad” the -- United States, the European community, India and Brazil.  The Republic of Korea understood the sensitivity of the membership of those States, but their collective leadership was the sine qua non for resumption of the talks.

He noted that many delegates were concerned about the recent trend towards the increased use of free trade areas.  The Republic of Korea had joined that trend, but was last on the free trade area front, with the exception of Mongolia.  They were another way for the Republic of Korea to prove its commitment to liberalizing and reforming its economy.  The Republic of Korea still believed in the primacy of a rules-based multilateral trading system and supported efforts to revive the suspended talks as well as pursue free trade area negotiations already under way.

ULADZIMER A. GERUS ( Belarus) said nations were criticizing each other, yet international trade had grown by 6 per cent in 2005.  However, that growth was not even across the board and the growth rates of the developing countries were insufficient to let them achieve the Millennium Development Goals.  The General Assembly should adopt a clear resolution advocating the successful completion of trade talks within the Doha Round, which should balance the needs of all countries.  The decision to suspend the talks, especially on agriculture, threw past progress into question and undermined confidence in the global trading system.

He noted that developing countries faced many demands to carry out new trading obligations and directives.  Fair and equal membership in the World Trade Organization should be established.   Belarus was concerned about the erosion of non-discriminatory trade practices and favoured a return to most favoured nation status.  It also advocated the reduction of tariffs and non-tariff barriers.

ALESSANDRO MOTTER, Liaison Officer, Inter-Parliamentary Union, said that 150 national parliaments had created, in partnership with the European Parliament, a process called the Parliamentary Conference on the World Trade Organization.  Consisting of annual meetings, it brought together hundreds of parliamentarians to oversee and promote the effectiveness of World Trade Organization activities.  On agriculture, the Parliamentary Conference had called for the abolition of export subsidies and the reduction of trade-distorting domestic support in developed countries.  At the same time, it had highlighted special treatment for sensitive and special products as necessary to address non-trade concerns -- food security, land conservation, revitalization of rural society and rural employment, as well as sustainable forestry, illegal logging and fisheries.

He said many members of parliament felt their countries were ill-equipped to deal with the changes and sacrifices associated with trade liberalization.  Many from developing countries said their countries needed more support than was currently available to participate in the global economy without undercutting their fledgling industries and over-exploiting their natural resources.

HASSAN H. BAHLOULI, Senior Adviser, United Nations Industrial Development Organization (UNIDO) Office in New York, said the Agency was currently providing assistance in:  developing competitive manufacturing capability by upgrading product and production quality; promoting conformity with market requirements; and enhancing connectivity to markets through more effective participation in international trade negotiations and streamlining customs procedures.

He said UNIDO was the largest provider of trade-related technical assistance among United Nations agencies, and the leading body on the Inter-Agency Working Group on Trade Capacity Building to improve the coordination and coherence of United Nations agencies in trade capacity-building.  It had helped countries develop internationally recognized certification services, including quality control (ISO 9001), environment protection (ISO 14000), social accountability (ISO 8000) and food safety (ISO 22000).  In cooperation with the World Trade Organization, UNIDO would help cotton farmers develop cotton standards and enhance their product quality to obtain higher profits.  To promote the attractive of developing countries to foreign direct investment, it had used its global subcontracting and partnership network, as well as its worldwide investment and technology promotion offices.

ABDUL MAJID SAAD (Libya), aligning himself with the Group of 77 and China, said global trade was an engine of growth, one of the most important sources of income for developing countries and a means to reduce poverty by providing jobs.  It was worrying that many developing countries saw that their share in global trade was below average and that they could not access world markets in a satisfactory manner.  Tariff and non-tariff barriers blocked access for their goods, particularly in agriculture.  The suspension of the Doha Round talks had sent a negative message and Libya urged their resumption without the focus on narrow interest.

He also supported greater access to the World Trade Organization so that all countries could participate fully in the creation of a fairer international trading system.  Libya stressed the important role that UNCTAD played as an international forum dealing with the vast range of development issues and encouraged the agency to continue its research and studies.  It also supported the efforts of the African Union and NEPAD on trade.

LAKHSHMI PURI, Director, UNCTAD Office in New York, said that all the ideas mentioned during today’s debate had been duly noted, particularly suggestions for strengthening UNCTAD’s role in integrating the treatment of trade and development within United Nations programmes and accords, as well as in related areas such as finance and technology.  The call for more capacity-building work, especially in technical areas, had also been noted, as had the call to maintain UNCTAD’s pivotal role in pushing through Aid for Trade and monitoring trade issues, including those encountered during multilateral trade negotiations and as part of regional trade agreements.

She said that among the new issues highlighted by delegates, and noted by UNCTAD, were the importance of realizing win-win gains in migration.  Several delegates had called for that sector to be liberalized in order to prevent illicit unwanted immigration.  Science and technology were thought to be the new determinants of economic competitiveness with both challenges and opportunities to be had in the “new energy” economy.

There had been frequent references to regional trade agreements, she noted, pointing out, however, that need for an open and equitable multilateral trade system had been stressed, despite the growth of regional agreements.  Indeed, the universal concern over the suspension of the Doha Round had been accompanied by expressions of fear over a return to protectionism and a fragmentation of the international trading system.  Several appeals had been made to the General Assembly to send an urgent message to the World Trade Organization on the need to resume those negotiations and conclude them as quickly as possible.  Also, transition economies and least developed countries alike had asked for help to accede to the World Trade Organization.

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For information media • not an official record