Sixty-second General Assembly

Second Committee

14^th Meeting (AM)

FAILURE ON DOHA WOULD DAMAGE LEAST DEVELOPED COUNTRIES MOST, SAYS DELEGATE

AS SECOND COMMITTEE CONTINUES DEBATE ON INTERNATIONAL TRADE, DEVELOPMENT

Failure to successfully conclude the Doha Development Round with a trade deal rooted in development priorities would badly damage the credibility of the World Trade Organization and disproportionately harm smaller and weaker developing countries, particularly the least developed ones, Portugal’s representative told the Second Committee (Economic and Financial) today as it continued its debate on macroeconomic policy questions, including international trade and development.

Speaking on behalf of the European Union, he said a successful conclusion, on the other hand, would make current levels of openness largely irreversible, noting that more progress towards that end had been realized than was generally assumed.  Still, the clock was ticking, and the upcoming resumed talks would be the last chance for success.  All key members must show a spirit of compromise, constructiveness and genuine willingness to commit to an ambitious, comprehensive and balanced agreement.  The European Union had done all it could to maintain the momentum through flexibility on agricultural market access.  It was now up to other key players to make appropriate contributions.

Cuba’s representative said the Doha impasse resulted from a lack of political will on the part of developed countries, adding that the talks should be concluded not to fulfil an artificial schedule, but to fully meet development mandates.  There was a pressing need to reform the multilateral trade system, with the World Trade Organization at its centre, in order to achieve a more just, equitable, inclusive, democratic, predictable and transparent regime for the benefit of the developing countries that comprised most of the Organization’s membership.  Despite their large numbers, the participation of developing countries in international trade was small and market access had improved for only a few of them.

He said that the richest nations, while upholding and proclaiming free trade and advocating deregulation and the elimination of subsidies, imposed the most barriers to trade liberalization.  Trade could only promote development if carried out on the basis of different countries receiving “special and differential treatment”.  Coercive economic measures, unilateral sanctions, and extraterritorial laws and regulations against developing countries continued to hinder trade and investment.  Cuba called for the easing of World Trade Organization accession for developing countries through transparent, flexible and rapid processes, with the necessary technical assistance and without conditions or discrimination.

Mexico’s representative said the Second Committee must send a political message to the Doha negotiators on the urgent need to reach an agreement acceptable to all participants, rather than repeating discussions held by national negotiators.  Mexico invited other delegations to participate in flexible and constructive discussions on subjects that could yield agreement, particularly on the importance of trade as an engine for economic growth and sustainable development.  Demonstrating the possibility of reaching a consensual agreement on those matters was an ambitious, useful and realistic objective that would set a significant precedent in helping to create a development-friendly international trade system.

Australia’s delegate, speaking on behalf of the Cairns Group, said an undistorted, smoothly functioning global trade system was a key ingredient to lifting millions of people out of poverty, yet restrictive market access barriers and high subsidies had for decades compromised the ability of unsubsidized farmers, particularly those from developing countries, to participate in global agricultural trade.  The international community must resolve vital issues in each of the three pillars of agricultural negotiations:  domestic support, export competition and market access.  On export competition, the Doha talks required an agreement to eliminate export subsidies, as well as a plan to reduce export credits and surplus commodities in the guise of food aid.

Indonesia’s representative, speaking on behalf of the Association of Southeast Asian Nations (ASEAN), said World Trade Organization members must adjust their positions to achieve overall objectives and avoid “playing the blame game and vilifying others”.  Developing countries should build national capacities for trade, in order fully to enjoy the benefits of international trade.  The United Nations Conference on Trade and Development (UNCTAD) had a critical role to play in that regard and had already accomplished valuable work.

At the outset of the meeting, Pakistan’s delegate, on behalf of the “Group of 77” developing countries and China, introduced two draft resolutions, the first on the triennial comprehensive policy review of United Nations operational activities for development and the second on South-South cooperation for development.

Also taking part in today’s debate were the representatives of Bangladesh (on behalf of the least developed countries), Benin (on behalf of the African Group), Viet Nam, Russian Federation, Sudan, Japan, United States, Colombia, China, Myanmar, India, Belarus, Singapore, Gambia, Syria, Malawi and Kazakhstan.

The Committee will meet again at 10 a.m. on Monday, 29 October, to conclude its general discussion on international trade and development.

Background

The Second Committee (Economic and Financial) met today to continue its consideration of international trade and development, under its agenda item on macroeconomic policy questions.

Before resuming its general discussion, the Committee heard the introduction of two draft resolutions.

Introduction of Draft Resolutions

ASAD MAJEED KHAN (Pakistan), speaking on behalf of the “Group of 77” developing countries and China, introduced a draft resolution entitled “Triennial comprehensive policy review of operational activities for development of the United Nations system” (document A/C.2/62/L.4), by which the General Assembly would stress that the purpose of the review was to better deliver more effective and efficient support to developing countries, as well as to strengthen and enhance support for their efforts to achieve the internationally agreed development goals on the basis of their respective national strategies.

He then introduced a draft resolution on “South-South cooperation for development” (document A/C.2/62/L.3), by which the General Assembly would decide to convene, no later than the first half of 2009, a high-level United Nations conference on South-South cooperation on the thirtieth anniversary of the adoption of the Buenos Aires Plan of Action for Promoting and Implementing Technical Cooperation among Developing Countries.

The Committee’s Secretary then drew members’ attention to document A/C.2/62/L.6, headed “Proposed amendments to the General Regulations of the World Food Programme (WFP)”, which notes that the Economic and Social Council, at its July substantive session, had decided to endorse the amendments and recommended that the Assembly approve them.

Statements

FERNANDO VALENZUELA (Portugal), speaking on behalf of the European Union, said trade was a powerful engine for economic growth and probably the external economic policy with the greatest impact on each developing country.  But for trade to be effective there must be sufficient market access and the ability of exported goods and services to compete with local or imported products from other countries.  A successful conclusion to the Doha Round of trade negotiations would make current levels of openness largely irreversible.  But if Doha failed, the credibility of the World Trade Organization would be badly damaged because stakeholders would have failed to show they could produce a trade deal rooted in development priorities.  The costs of such a failure would fall disproportionately on smaller and weaker developing countries, particularly least developed countries.

He said the Doha negotiations had made more progress than people had realized, but it was the last chance for agreement on modalities for a deal.  It was absolutely vital for all key members to show a spirit of compromise and constructiveness, as well as a genuine will to commit to an ambitious, comprehensive and balanced agreement.  The European Union had done all it could to maintain the momentum, by showing genuine flexibility on agricultural market access.  Now other key players must make appropriate contributions.  The clock was ticking and if there was no agreement on modalities, an early conclusion to the Doha Development Agenda would be unlikely.  In the context of global turbulence, that negative signal might have amplified repercussions.  The time had come to find the courage to conclude a deal.

MICHAEL FORSHAW (Australia), speaking on behalf of the Cairns Group, said an undistorted, smoothly functioning global trade system was a key ingredient to lifting millions of people out of poverty.  Yet, restrictive market access barriers and high subsidies had for decades compromised the ability of unsubsidized farmers, particularly those from developing countries, to participate in global agricultural trade.  Failure to conclude the Doha Round would deal a major blow to development, agricultural trade reform and the multilateral trading system.

He said the international community must resolve vital issues in each of the three pillars of agricultural negotiations:  domestic support, export competition and market access.  To begin with, the three largest subsidizers -– the European Community, the United States and Japan –- had to reduce their spending on trade-distorting domestic support.  On export competition, the Doha talks required an agreement to eliminate export subsidies, as well as a plan to reduce export credits and surplus commodities in the guise of food aid.  Regarding market access, Member States should agree on tariff approaches that would break down the barriers hampering agricultural trade development.

R.M. MARTY M. NATALEGAWA (Indonesia), speaking on behalf of the Association of Southeast Asian Nations (ASEAN), said an open, non-discriminatory, rules-based international trading system focused on development would enable millions to escape poverty and gain a higher quality of life.  Unfortunately, that system had not yet been established, despite numerous multilateral trade negotiations.  A positive conclusion to the Doha Round was necessary to achieve that goal.  Strengthening the multilateral trading system was critical to economic growth and development in South-East Asia.  It would also benefit developing countries and least developed countries by ensuring market access through reductions in tariffs, trade-distorting domestic subsidies, and trade barriers.

To break the deadlock in negotiations, World Trade Organization members must adjust their positions to achieve overall objectives and avoid “playing the blame game and vilifying others”, he said.  Developing countries should build national capacities for trade, in order fully to enjoy the benefits of international trade.  The United Nations Conference on Trade and Development (UNCTAD) had a critical role to play in that regard and had already accomplished valuable work.  Aside from the multilateral trading system, there were additional possibilities for improving growth.

He said the ASEAN economies had grown by an average of 6 per cent in 2006, and were working together more closely to realize the ASEAN Economic Community by 2015 and strengthen cooperation on trade.  The implementation of the Common Effective Preferential Treatment Scheme had contributed to a sustained, positive trend in the region’s trade performance and an increase in exports and imports.  It was clear that international trade must continue to be a powerful engine for growth and, for that reason, it was imperative for Doha to be brought to a successful conclusion with full consideration for developing countries.

TOUHID HOSSAIN (Bangladesh), speaking on behalf of the least developed countries, said that despite continued growth in international trade, least developed countries had not been able to gain effectively from it.  While their share in world merchandise trade had risen from 0.79 to 0.83 per cent in 2006, much of that increase had been due to oil exports.  Many low-income countries, including least developed countries, had adopted sound marcroeconomic policies and relatively open trade regimes, but they had been marginalized in the world economy.  If the current trend continued, the number of people living in extreme poverty would continue to increase. 

He said that in recent years, South-South trade had grown significantly, but least developed countries were increasingly marginalized.  The more industrialized developing countries must therefore open their markets to exports from least developed countries.  An important instrument in that context was the Global System of Trade Preferences among Developing Countries.  The third round of negotiations under that system could further stimulate South-South trade.  Although agriculture was critically important for many least developed countries, the sector remained the most distorted by high border protection, subsidies and volatile prices.  Unless those problems were addressed, a number of least developed countries, particularly those in sub-Saharan Africa, would not be able to achieve the internationally agreed development goals. 

The service sector had huge potential in international trade, and although the share of developing countries had increased from 23 to 24 per cent, that of least developed countries had remained unchanged.  The categories of service providers in which they enjoyed comparative advantage were subject to a variety of restrictions, a problem that deserved immediate global attention.  A successful conclusion of the Doha Round would require a concrete outcome in the services negotiations with special treatment for least developed countries.  Developed countries should liberalize their markets for all categories of service providers from least developed countries.  With the Doha Round at a critical juncture, more support of the international political leadership was needed.

JEAN-MARIE EHOUZOU ( Benin), speaking on behalf of the African Group and aligning himself with the Group of 77 and China, said African countries lacked the infrastructure required to benefit from trade.  Although the continent represented 13 per cent of the world’s population, it had only 3 per cent of international trade, and despite remarkable progress on trade regulations, several African countries still faced internal and external challenges.  The region suffered from a lack of communication equipment and lagged behind in terms of the infrastructure required for freight transportation systems.  The question of energy was also troubling, as were unfair practices like high tariffs, dumping and subsidies.

The New Partnership for Africa’s Development (NEPAD) had identified infrastructure as a crucial component of trade development, he said.  According to the World Bank, improving road systems would cost $20 billion and $1 billion a year for maintenance, but the improvements would promote trade.  The questions of energy and technical assistance should also be addressed.  African countries needed a final agreement on the Doha negotiations, including an effective capacity-building programme, which required considerable investment to improve competitiveness.

Market access would be the greatest asset by far for achieving the Millennium Development Goals, he said.  The Aid for Trade mandate contained in the Hong Kong Ministerial Declaration aimed to help developing countries strengthen their supply and infrastructure capacities so that they could enjoy greater benefits from international trade.  However, Aid for Trade could never replace a successful Doha cycle, and must be added to, rather than replace, the development dimension of Doha.  Aid must be additional, predictable and sustainable, and not subject to conditions.

NGUYEN TAT THANH ( Viet Nam) said the United Nations should play a more proactive role in global trade issues, specifically in guiding the Doha talks to a successful conclusion.  An equitable and balanced outcome of the Doha Round would yield significant global welfare gains.  It was therefore regrettable that the negotiations had reached an impasse and that developed countries, despite the willingness of developing countries to compromise, remained reluctant to cut agricultural subsidies.  Developed countries bore responsibility for breaking the current deadlock and should resist protectionist pressures before it was too late.

He said his country was now one of the most open economies in South-East Asia, and its recent accession to the World Trade Organization and subsequent strengthening of trade relations had contributed significantly to overall economic growth rate.  Poverty had been cut by half between 1993 and 2002, and was expected to be cut by another 50 per cent by the end of the year.  If those trends continued, Viet Nam would graduate from low-income developing country status by the end of next year and begin to share more in the benefits and burdens of expanding prosperity.  ASEAN would transform the region into a free-trade zone by 2015, and it looked forward to free-trade agreements with Japan, the European Union and Australia, among others.  Overall, the Government of Viet Nam was dedicated to working cooperatively with the international community to build a fair, equitable and non-discriminatory international trading system for the benefit of all.

TATIANA ZVEREVA ( Russian Federation) said international trade played a key role in development and had contributed to poverty reduction and economic growth.  For its part, the Russian Federation had contributed to and supported the idea of trade as an instrument of development and had already made efforts towards tariff reductions and duty-free policy.  The country had no protectionist policies.

The Doha Round was at a critical stage, she said, adding that her country hoped to give impetus to the negotiations.  The Russian Federation was an observer at the Doha talks and had followed the proceedings closely.  However, when the Russian Federation joined the World Trade Organization, it hoped to take on a full participatory role that would include taking part in discussions and lending its voice to issues of concern to all members.

HASSAN Y. NGOR ( Sudan) said a speedy conclusion of the Doha negotiations was imperative for developing countries, particularly least developed countries, which were anxiously awaiting the translation into reality of the Doha Development Agenda and its promises of duty- and quota-free market access and sharply reduced agricultural subsidies.  Developed countries must demonstrate flexibility in the negotiations so as to preserve the stability, reliability and credibility of the multilateral trading system.

The question of Sudan’s accession to the World Trade Organization and market access for its agricultural goods were two vital and interlinked issues pertaining to the country’s prospects for development.  Having filed for accession in 1994, Sudan appealed strongly for support in its membership bid.  Agriculture was a major sector and the Government of Sudan was implementing a solid reform package to address land reform, free market policies and the removal of trade barriers. 

He said that despite a promising picture, his country faced the daunting task of reconstruction and development.  It needed support from the international community to complement its national efforts, and accession to the World Trade Organization would help.  Since 1997, Sudan had been subject to unilateral economic sanctions, which constituted a flagrant violation of the principles of international law and free trade.  Sudan called upon the international community to uphold those principles.

KENJU MURAKAMI ( Japan) said an early conclusion to the Doha Round was more important than ever, since developing countries must be integrated into the multilateral trading system as equal beneficiaries and participants.  Developing countries needed to build supply-side capacity and trade-related infrastructure and to establish market channels for their products.  Developed countries, for their part, should avoid “one-size-fits-all” approaches to Aid for Trade and instead provide assistance that was aligned with partner countries’ strategies and priorities, while respecting national ownership.

He said his country had promoted, through its Development Initiative for Trade, the export of local goods through the “One Village, One Market” campaign, and had extended loans for the construction of roads, ports and other infrastructure.  In April, Japan had enhanced duty- and quota-free market access to least developed countries by expanding coverage to 98 per cent of their goods, defined at the tariff line level.  Foreign direct investment (FDI) also played a crucial role in achieving sustainable development, so that developing countries could create environments favourable to investment by improving trade-related laws and regulations.  Japan had taken a multilayered approach to supporting developing-country efforts to attract and facilitate investment and private capital, and to enhance trade and investment capacities.

KELLY KNIGHT ( United States) said opening the doors to trade was pivotal to reaching the shared goals of reducing poverty and promoting opportunity and prosperity for all.  Trade and development were inextricably linked, and a global environment that supported the free flow of trade among all of the world’s countries fostered growth, catalysed economies and benefited everyone.  Data showed that countries that opened their doors to trade enjoyed meaningful gains in economic growth.  Those that had experienced that growth must share the best practices so that others might follow in their path.

She said the United Nations could better mobilize its resources, working with the World Trade Organization, the World Bank, the International Monetary Fund (IMF) and regional development banks to provide trade capacity-building at the ground level in countries that had not harnessed globalization to the best of their abilities.  An environment marked by openness to trade was less likely to tolerate costly economic distortions.  Instead it would level the “playing field”, create jobs and foster innovation and entrepreneurship.  Countries could gain entry into the world economy without waiting for the completion of protracted negotiations.  Lowering tariffs, reducing non-tariff barriers to imports and utilizing existing Aid for Trade assistance would play a vital role in helping to achieve that goal.

LLANIO GONZALEZ (Cuba), associating himself with the Group of 77 and China, said the impasse in the Doha Round, resulting from the lack of political will on the part of developed countries, proved the need for an in-depth reformulation of the multilateral trade system, with the World Trade Organization at its centre.  The Doha Round should be concluded, not to fulfil an artificial schedule, but to fully meet development mandates.  There was a pressing need to reform the multilateral trade system in order to achieve a more just, equitable, inclusive, democratic, predictable and transparent system, reflecting the majority of World Trade Organization members -- developing countries.  Cuba supported the facilitation of World Trade Organization accession for developing countries through transparent, flexible and rapid processes, with the necessary technical assistance and without conditions or discrimination.

He said the unequal and unjust multilateral trade system continued to hinder the necessary and indispensable integration of developing-world economies into the current international system of trade relations.  Developing countries continued to have a small participation in international trade, and while some sources showed some improvement in market access, that trend showed the situation of only a few developing countries.  The richest nations, while upholding and proclaiming free trade and advocating deregulation and the elimination of subsidies, imposed the most barriers to trade liberalization.  Trade could only promote development if carried out on the basis of different countries receiving “special and differential treatment”. 

Other negative practices that continued to hinder trade and investment were coercive economic measures, unilateral sanctions, and laws and regulations with extraterritorial character against developing countries, he said.  A case in point was the “brutal and cruel blockade” imposed by the United States on Cuba for more than 47 years, which had visited serious economic and human damage upon the Cuban people.  Cuba stressed the role of UNCTAD as the coordination centre of the United Nations system to address questions of trade, finance, technology, investment and sustainable development.  “It is only through a radical reformulation of the current multilateral trade system and world economic order, along with strong political will by the richest countries in the fulfilment of their commitments, that we will be able to guarantee a just, equitable and democratic international trade system.”

CLAUDIA BLUM ( Colombia) said that since the role of trade as an engine for development was widely recognized in major multilateral political settings, it was staggering that such an indisputable truth could not be fully demonstrated in practice.  The trade engine had operated at half-speed regarding market access for developing-world goods, despite tremendous efforts to adjust developing economies to the demands of the international environment.  While developing countries had taken decided and systematic actions, the response from developed countries had been timid and late.

She said her country had maintained an active engagement in the Doha negotiations, but was still waiting for significant results.  It was essential to devise new ways to overcome the current obstacles, otherwise all countries would lose, having let go of a unique opportunity to bring about historic changes to the trading system, in line with a development approach.

YAO WENLONG ( China) said the continued steady growth of the world economy, the deepening of economic globalization and the intensification of regional economic cooperation in 2006 had brought about new opportunities for the development of all countries.  The share of developing countries in world output had grown to 23 per cent, and their per capita income had risen by more than 5 per cent.  However, there was a clear unevenness of development among countries.  The imbalances in the world economy required urgent solutions.  The international trade environment for the participation of developing countries, particularly least developed countries, had not seen tangible improvements.  The Doha Round had stalled, trade protectionism was on the rise, and trade preferences were at the brink of being eroded.  The international community should create an international trade environment favourable to development, expand tariff- and quota-free market access for least developed countries, and provide them with technical assistance for capacity-building.

Urging a successful and early conclusion to the Doha negotiations, he said that while there would be no winners if they failed, their success would benefit all.  The Doha Round should keep development at its core, take into full account the level of development and capacity of the developing members, and give effective expression to their needs and special concerns.  China hoped the major developed members would eliminate trade-distorting agricultural subsidies and take substantive measures to remove barriers to market access.  UNCTAD should undertake greater responsibilities and play a bigger role.  There was a need to reinforce its three major functions, define the future of its work, make use of its comparative advantages and strengthen its work at the international, regional and national levels. 

He said his Government had, in recent years, vigorously increased imports, continuously reduced tariffs, and expanded tariff- and quota-free access for least developed countries and African States.  China’s economic development would provide opportunities for the development of other countries, and the Government would continue to strengthen mutually beneficial and “win-win” economic and trade cooperation with all countries.

KYAW MOE TUN ( Myanmar) said that even though international trade was a powerful engine for economic growth and development, developing countries would not be able to benefit from it without an open, rules-based, non-discriminating and equitable multilateral trading system underpinned by a development dimension.  The Doha Round was at a critical stage, and an agreement on modalities for agriculture and non-agricultural market access was urgently needed to conclude the Round.  Myanmar urged development partners to demonstrate political will, flexibility and cooperation, and to actively push forward a successful conclusion.

He said that for the Round to be successful, there was a need for better market access for agriculture, an operational Aid for Trade initiative, a reduction of tariff peaks, duty- and quota-free market access for exports from least developed countries, and trade facilitation.  Myanmar placed high hopes on the successful completion of the Doha negotiations with a genuine development-oriented outcome.

PRASANNA ACHARYA ( India) said the restrictions imposed by developed countries on market access for developing-world products through tariffs, quotas and subsidies detracted from a fair and level playing field for developing countries.  Such restrictions must be eliminated.  It was necessary to create pro-poor trade policies by supporting value-added exports from developing countries instead of perpetuating their role as suppliers of raw materials. 

A development dimension was necessary to conclude the Doha Round and ensure the creation of a non-discriminatory and equitable multilateral trading system, he said.  Progress on agricultural negotiations was crucial, and it was unfair to compare subsistence farmers in developing countries with the subsidized large-scale commercial farming in many developed countries.  Those subsidies had significant implications for food security and rural development in poor countries, and developed countries should demonstrate flexibility in working towards reducing and eliminating them.

It was also unfair to link negotiations on agriculture with those on non-agricultural market access, he continued.  Nascent industrial development in developing countries must not be harmed, and it was important to ensure that the enshrined principles of “less than full reciprocity” and “special and differential treatment” were fully respected.  India stressed the need to create a win-win situation by bringing tangible benefits to developing and developed countries.  There was a need for early action on the Trade-Related Aspects of Intellectual Property Rights (TRIPs).  India also fully endorsed measures to make intellectual property rules fully support the objectives of the Convention on Biological Diversity, particularly with respect to disclosure, prior informed consent and equitable benefit sharing.

VLADIMIR GERUS ( Belarus), calling for a fair and well-balanced world trade system, expressed regret over the stalling of the Doha Development Round and the lack of political will to liberalize market access.  It was essential to balance international trade in favour of developing countries.  Supporting the development of developing countries would help them reduce poverty and enhance social and economic well-being.  Belarus hoped the General Assembly would be able to give new momentum to the Doha Round.  It was reasonable to assume that new World Trade Organization member States would be able to carry out well-targeted policies.

However, many countries had unreasonable demands placed on them, while some World Trade Organization members had taken it upon themselves to block the accession of new members, he said.  Countries attempting to influence others politically were making it difficult for others to achieve the Millennium Development Goals.  The only way to avoid that problem was to ensure just and equitable conditions for countries seeking entry into the World Trade Organization, in line with their financial, trade and development needs.

Expressing his country’s opposition to the use of coercive measures by some countries, he said such actions violated the United Nations Charter and international law.  UNCTAD could play a role in avoiding such problems.  It was to be hoped that, during next year’s UNCTAD XII Conference, countries would take positive steps to benefit the development efforts of developing countries.

LIM AI TENG ( Singapore) said open markets and trade liberalization had helped to make her country what it was today.  Regarding the Doha negotiations, Singapore called for compromise, moderation and flexibility because the stakes were too high to risk failure by championing maximalist positions.  According to the World Bank, a successful Doha conclusion could generate up to $500 billion in income gains for rich and poor countries, and potentially lift 140 million people out of poverty within a decade.  Failure would call the World Trade Organization’s credibility into question and ensure that everyone lost, with developing countries taking the hardest hit.

To move forward in negotiations, developed countries must show leadership and take ambitious steps to ensure real market access for developing countries, she said.  Developing countries should also compromise and show flexibility.  ASEAN had taken an active approach to promoting economic integration, including through the ASEAN Free Trade Area, which could be a building block for broader multilateral trade liberalization.  But more must be done to use the tools of open international trade to eradicate poverty.

TAMSIR JALLOW ( Gambia) said continuing vibrant growth in Asia and the Pacific, Africa’s commodity boom, and the robust trade expansion in Latin America and the Caribbean had given rise to a buoyant global South.  But there remained serious concerns that a greater number of developing countries had not been able to benefit from trade liberalization and globalization.  Since trade and development were partners, development concerns formed an integral part of the Doha Development Agenda, placing the needs and interests of developing and least developed countries at the heart of the Doha work programme.

It was critically important to create a trading system that was sensitive to the aspirations of developing countries, and to ensure their sustainable and beneficial participation in international trade, he said.  It was also imperative to enhance market access and entry, reform agricultural policies and effectively implement the principles of special treatment, supported by an ambitious and operational Aid for Trade partnership.  Concerned about the impasse in the World Trade Organization’s trade negotiations, Gambia called upon developed countries to demonstrate the flexibility and political will necessary for progress, and for the urgent facilitation of accession for all developing countries.

He urged the donor community to provide the resources needed for UNCTAD to deliver effective and demand-driven assistance to developing countries and condemned unjustifiable coercive measures, including unilateral sanctions against developing countries.  The international community should denounce such measures.

CLAUDE HELLER ( Mexico) said the United Nations remained the ultimate universal discussion forum, and the Second Committee’s dynamic work on development issues created an opportunity to deliver a call to the outside world regarding the urgent need for a conclusion to the Doha Round that was acceptable to all participants.  The main objective of the Committee’s discussions should be to work on a political message to deliver to the Doha negotiators, rather than repeating the discussions held by national negotiators.

He invited other delegations to participate flexibly and constructively in discussions that emphasized subjects upon which agreement could be reached, particularly the importance of trade as an engine for economic growth and sustainable development.  Demonstrating the possibility of reaching a consensual agreement on those matters was an ambitious, useful and realistic objective that would set a significant precedent for moving forward in the construction of an international trade system that favoured development.

OSAMA ALI ( Syria) said it was imperative to successfully conclude the Doha Development Round, and developed countries must realize their responsibilities in that regard.  It was unfair for the latter to demand that developing countries make equal or greater concessions than they offered.  Greater flexibility was needed in the Doha negotiations in terms of agricultural market subsidies and non-agricultural market access.  Syria was committed to a fair trading regime through economic reform and liberalization of its foreign trade.  It was also committed to economic and export diversification and to improving product quality.  The country had modernized its banking centres to make them more attractive for savings and investment.   Syria was also improving the quality of services provided by existing public banks, with an emphasis on promoting human capital and scientific and technical expertise.

Still, Syria continued to face obstacles in its bid to join the World Trade Organization due to the political motivations of powerful, influential States, he said.  Having applied for World Trade Organization membership on 22 October 2001, and having reaffirmed that application in 2004, its request had yet to be included on the organization’s agenda.  The World Trade Organization membership process should not be politicized, and Member States must adhere to General Assembly resolution 61/186, which emphasized the need to facilitate the accession of developing countries.  The Secretary-General’s report on unilateral political or economic coercion against developing countries included information about measures imposed against Cuba, Republic of Korea, Lebanon, Myanmar, the Occupied Palestinian Territory, Syria and Zimbabwe.  The report also discussed the impact of those measures.  The United States had enforced an export embargo and tough restrictions on some Syrian national banks in May 2004, and they were still in effect.

STEVE MATENJE ( Malawi) said official development assistance (ODA) played a crucial role in helping developing countries achieve the internationally agreed development targets.  However, aid had declined over the years, and developed countries should fulfil their promises so as to enable Malawi and other least developed countries to achieve the Millennium Goals by 2015.

He said the potential for developing countries to achieve sustainable economic growth lay in their ability to participate equitably in the global trading system.  That was particularly true for Malawi, which had an agro-based economy.  The agricultural sector accounted for about 38 per cent of the gross domestic product and more than 90 per cent of overall export earnings.  About 80 per cent of the country’s workforce was engaged in that sector, and at least 80 per cent of its agricultural produce came from small farms.  Since Malawi’s trade was intricately linked to agriculture, market access for agricultural commodities was a major concern for the country.

Expressing great concern over the impasse in the Doha negotiations because of its negative impact on his country’s ability to speed up its economic growth and development, he called for an early resumption of the talks so that Malawi could achieve the Millennium Goals by the 2015 deadline.  The Doha Round should remain focused on agriculture and development.

ARMAN ISSETOV ( Kazakhstan) said that resolving problems of trade and development was a precondition for achieving economic growth.  Qualitative progress must be made on market access for agricultural produce from developing countries, while least developed countries needed duty- and quota-free access.  Special treatment for certain States should be more specific and concrete in nature.

He said meetings like the 2003 Almaty International Ministerial Conference, held in Kazakhstan, took into special consideration landlocked and transit developing countries, as well as others with special needs.  The creation of shared economic spaces and customs unions was essential in helping developing countries overcome the negative impact of globalization.  Belarus, Kazakhstan and the Russian Federation belonged to a regional customs union.

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