In Concluding Declaration, Ministers Pledge to Resist Protectionism, Boost Lagging

Poverty Reduction Strategies, as UNCTAD XII Ends in Ghana

 

Accra Accord Outlines Institutional Machinery Needed to Ensure

Sustained Progress by Developing Countries on Level Trading Field

(Received from a UN Information Officer.)

ACCRA, GHANA, 25 April -- Wrapping up the Twelfth Ministerial Meeting of the United Nations Conference on Trade and Development (UNCTAD XII) today in Accra, Ghana, member States pledged to resist protectionism, particularly against goods and services from developing countries, as they tackled the rash of uncertainty plaguing the global economy, including spiralling commodity prices and the slowdown in the industrialized economies.

“The visionaries who created UNCTAD in 1964 –- just as most people on this great continent of Africa were winning their independence –- would have felt vindicated by today’s interconnected world and its globalized economy,” they declared in one of two documents adopted as the Meeting concluded.  “Their founding tenet -– that broad-based and sustainable prosperity cannot be achieved without both trade and development working in harmony in an interdependent world -– has never been more pertinent.”

The Accra Declaration, in concert with the more action-oriented Accra Accord, sets a broad agenda for international efforts to make trade help the progress of developing countries towards prosperity in the four years leading up to UNCTAD XIII.  Member States recommitted themselves to free and fair trade, but also vowed to redress current strategies that have lagged behind in reducing global poverty at the midpoint of the efforts to achieve the Millennium Development Goals by 2015.

Supachai Panitchpakdi, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), said at an afternoon press conference that by working on the details of how best to carry out that pledge during the Meeting, member States had built “development solidarity between the East, the West, the North and the South to improve the quality of life of all human beings”.

The Secretary-General said the inclusion of the World Investment Forum on the sidelines of the Meeting had added a first-time multi-stakeholder forum, providing a “meeting of the minds” of academics, business people and policymakers”, to better direct investment flows towards long-term development.  The Meeting itself, through its nine round tables, general debate and other events, had sharpened the focus on the least developed countries, particularly those in Africa, development-oriented governance, public-private partnerships and better integration into the world economy of those left behind by the first wave of globalization.

He said that, by adhering to the idea that the best way to achieve those goals would be free trade with enhanced anti-poverty strategies, participants concurred with United Nations Secretary-General Ban Ki-moon, who opened the Meeting last Sunday with a call to keep trade open while making it serve to raise “the bottom billion” who remained in squalor despite the boom of the past several years and who were most vulnerable to the current spike in food and energy prices and the economic slowdown.

In the Declaration adopted this evening, delegates stressed the importance of integrated solutions to that challenge: mobilization of additional development finance for commerce-related infrastructure; increased market access for developing countries; and technical cooperation to help diversify their economies.  They also called for an updated, stability-oriented global financial system with enhanced participation by developing countries.

The Accord, which builds upon the outcome of UNCTAD XI held in Sao Paolo, Brazil, in 2004, details the complex interrelationships of national, regional, international and institutional machineries that was needed to make trade free, fair and beneficial to the sustained progress of developing countries.  A more level trading field for developing countries through the Doha Round of negotiations under the World Trade Organization is a major concern of the document, as is adherence to existing rules for an open, equitable, predictable and non-discriminatory multilateral trading system that promotes development.

“All countries must honour their respective commitments on duty-free and quota-free market access for the least developed countries, as provided for in the Ministerial Declaration of the Sixth WTO Ministerial Conference,” the text says.  It strongly urges States “to refrain from promulgating and applying unilateral economic, financial or trade measures not in accordance with international law and the Charter of the United Nations, that impede the full achievement of economic and social development, particularly in developing countries, and that affect commercial interests”.

Ways to enhance growing trade networks between developing countries –- the so-called South-South trade -- are another important consideration, according to the Declaration, which also underscores the need to prioritize the Global System of Trade Preferences among Developing Countries (GSTP), intraregional networks and interregional networks.  The erosion of generalized trade preferences for the least developed countries should be redressed through long-term strategies to diversify economic bases, enhance competitiveness and productive capacity, develop new export opportunities and integrate into the global economy.

These efforts should be accomplished at the domestic level by boosting good governance and transparency, and investing profits from oil and other commodities into production, transport and communications infrastructure for sustainable growth, the document says.  Private sector, institutional and bilateral activity should assist such efforts at the international level.

The Declaration proposes measures to deepen the resilience of developing economies to shocks such as high commodity prices, natural disasters and global economic downturns, including strengthened macroeconomic management, domestic resource mobilization and enhanced debt sustainability, while calling for transparent, predictable and effective financial regulatory regimes at the international level.  High commodity prices should be seen as an opportunity for commodity producers to boost their productive capacity, particularly in the agricultural sector, and to invest in infrastructure.

With respect to protecting commodity-importing least developed countries, the document welcomes United Nations Secretary-General Ban’s decision to immediately establish a high-powered task force comprising eminent experts and leading policy authorities.  To strengthen UNCTAD in this area, member States urge Mr. Ban to transform the existing Commodities Branch of the International Trade Centre UNCTAD/WTO into an autonomous unit reporting directly to the UNCTAD Secretary-General.  “Through the guidance and leadership of the Secretary-General of UNCTAD, this unit should contribute more effectively to developing countries’ efforts to formulate strategies and policies to respond to the challenges and opportunities of commodities markets,” the text states.

In general, the Accra Accord encourages UNCTAD to strengthen its role as the focal point of the United Nations for the integrated treatment of trade and development and interrelated issues in the areas of finance, technology, investment and sustainable development.  It asks the Conference to examine new and long-standing issues that could foster a better understanding of how to maximize the positive impact of globalization on development.  UNCTAD should enhance its work on the special problems of Africa, the least developed countries, small island developing States and land-locked developing countries, as well as on women and other marginalized groups.

The final two round table discussions, held today, focused, respectively, on reinforcing UNCTAD’s development role, and on strengthening its effectiveness and institutional arrangements.  Moderating those discussions, Mr. Supachai voiced the hope that the overnight agreement on the Accra Accord would pave the way for “clear and frank” consideration of those vital issues.

He said that, although the Ministerial Meeting was ending today, UNCTAD’s efforts to make itself more dynamic and responsive over the next four years were just beginning.  Indeed, it must be more responsive to national, global and multilateral development issues.  “We need to be more on top of things.  It’s good to be admired for our academic and analytical work, but we need to be more action-oriented.”

Citing skyrocketing commodity prices and a possible economic slowdown in major industrialized countries, he said the global economy needed a sense of direction.  A strengthened UNCTAD could help provide a sense of development solidarity, especially around some of the key issues citied by ministers this week, such as deepening interdependence; the fragility of economic growth, chiefly in Africa, which was still too commodity-dependent; lagging efforts to empower women; ensuring good governance; striking a balance between food and biofuel production; and integrating climate change policies into development strategies.

Not all those issues were new, he pointed out, stressing that UNCTAD had indeed analysed a few of them before.  But that did not mean that future meetings should not examine them anew, from different perspectives and in light of new global realities.  With that in mind, UNCTAD was set to strengthen its work and regroup its internal process, not merely for the sake of change, but as part of overall United Nations reform and an effort to make UNCTAD more responsive and effective.  “We still have mountains to climb, but at least we have begun the process,” Mr. Supachai said, assuring delegations that the Conference was prepared to consider all their advice and recommendations.

Panellists in this morning’s round table discussion were Benjamin Mkapa, former President of the United Republic of Tanzania; Hakon Arald Gulbrandsen, Secretary of State for International Development of Norway; José Manuel Salazar, Executive Director for the Employment Sector of the International Labour Organization; George Dragnich, Director for the Office of Economic and Development Affairs at the United States Department of State; and Robert Davies, Deputy Minister for Trade and Industry of South Africa.

Panellists in the afternoon round table were Gonzalo Gutiérrez Reinel, Vice-Minister for Foreign Affairs of Peru; Anna Tibaijuka, Executive Director of the United Nations Human Settlements Programme (UN-HABITAT) and Director-General of the United Nations Office at Nairobi; Andrej Ster, State Secretary in Slovenia’s Ministry of Foreign Affairs; and Ransford Smith, Deputy Secretary-General of the Commonwealth Secretariat.  Margaret Blamberg, Chair of the Committee on Financing for Development for the Conference for Non-governmental Organizations, represented the Civil Society Forum as a discussant.

Closing Plenary

Joe Baido-Ansah, President of UNCTAD XII and Minister for Trade and Industry of Ghana, opened the final plenary of the Meeting and introduced the Accra Declaration.

Akwasi Osei-Adjei, Minister for Foreign Affairs, Regional Cooperation and the New Partnership for Africa’s Development (NEPAD) of Ghana, called the text both topical and timely, saying it reflected key trade and development issues and included broad policy direction to address them.  The Declaration also captured ministers’ common concerns on a number of hot-button issues that had sparked much discussion, such as spiralling food and energy prices, global economic uncertainties, climate change and the impact of all those challenges on developing and least developed countries, especially in Africa.  “The Declaration reflects our collective will to find integrated solutions to these crises,” he said, adding that ministers had also reiterated the commitment to UNCTAD as the United Nations focal point for the integrated treatment of trade and development.

He said that, four years from now, Qatar would host the next UNCTAD Meeting and thanked the Government of that country, stressing that the commitments made in Accra and subsequent efforts over the next four years to strengthen UNCTAD must be translated into concrete actions.  “In this spirit, let us move forward together towards UNCTAD XIII in Qatar.”

In other business, the Meeting approved the report of its Credentials Committee, presented by York Chor Tan ( Singapore), Chair of that body.  It also approved the Report of the Committee of the Whole containing the Accra Accord, which was introduced by that body’s Chair, Petko Dragonov ( Bulgaria).

The Meeting then endorsed a lists of States contained in the annex to General Assembly resolution 1995/19 (document TD/B/INF.211), which includes the membership of UNCTAD and the Trade and Development Board.  It also took note of the reports of the relevant sessions of the Trade and Development Board since UNCTAD XI (document TD/441).

Prior to concluding its work, the Meeting heard a presentation by Oluseye Oduyemi, Director of the Division of Management at UNCTAD, on the financial implications of the Conference’s work.  Darius Kurek ( Switzerland), Rapporteur of the Meeting, introduced the relevant reports before the Meeting, including the Report of UNCTAD XII to the General Assembly (document TD/L.399), which was subsequently adopted by the Meeting.

Closing Statements

UNCTAD Secretary-General Supachai said the Meeting had indeed put out the strong message of resolve for which he had hoped at its opening.  It had been instrumental in addressing some of the most pressing challenges of globalization, including the global food crisis.  The most immediate task, providing emergency relief in that crisis, would be undertaken by the appropriate aid agencies.  But the deliberations at the Meeting had served to highlight some of the key medium- and long-term measures needed to avoid the recurrence of such crises, focusing on rebuilding supply capacity and boosting agricultural output in developing countries.

Befitting an organization that contributed ideas for development, the outcomes of UNCTAD XII were more in the form of new concepts and understandings than new projects, he said.  In that vein, they highlighted the need for international economic integration, not only in quantitative terms -– volumes of exports and investment -– but also in qualitative terms relating to value added, diversification, employment and other goods.  In addition, the concept of an “enabling State” that helped create the conditions for development had been endorsed.

A new vision of partnership between Governments and the private sector was required in the second round of globalization, he said.  Whether it was financial market volatility and contagion, a new agenda for commodities or South-South cooperation, the Meeting had brought about a revision of ideas about the role of the State and a better understanding of what was needed to bring about a more inclusive globalization “with a human face”.

In addition, he said, Member States had agreed to pursue intergovernmental cooperation in the field of commodities and their integration into national, regional and international development and poverty reduction strategies, trade-related policies and instruments, investment and financial policies for accessing financial resources for commodity-based development with respect to official development assistant, “aid for trade” and other sources of finance.

He said the Accord noted the key role of South-South trade and the need for greater South-South cooperation, as well as triangular cooperation with the industrialized North.  Reviewing, in addition, many other ideas stressed at the Meeting and the many initiatives launched, UNCTAD XII had been an important step in moving the international development dialogue forward and strengthening UNCTAD as an institution.  The Conference had emerged reinvigorated and ready to address many new challenges.

In his closing statement, Minister Baidoe-Ansah said Ghana had been privileged to host UNCTAD XII and, despite the “many loose ends” that needed to be tied up and “logistic difficulties” that needed to be resolved prior to and during the Meeting, the dedicated and tactful participants had cooperated, because everyone had been convinced that UNCTAD XII, taking place on African soil, must succeed.

He said more than 4,000 participants had attended the Meeting, including representatives from nearly all United Nations Member States.  The Meeting had hosted some 20 intergovernmental bodies and more than 100 non-governmental organizations.  Many United Nations agencies and other specialized bodies had also participated in the week-long event.  In addition, more than 50 panellists and experts from Governments, academia, civil society and business had taken part in the interactive round table discussions and side events.  “I am happy to report that we have accomplished what we have come here to do […] we were able to rise above individual interests to craft an Accra Accord that reflects the prevailing spirit of consensus,” he said, adding that UNCTAD XII had received widespread media coverage and focused international attention on one of the most complex challenges of the day -- globalization and development.

Indeed, the underlying thread of the Accra Accord was the resounding consensus that globalization, trade and investment must be people-centred, he said.  It must provide a robust vehicle for mainstreaming the poor, women, children and the most marginalized and vulnerable people in many countries into development.  Particular attention would have to be paid to the situation of the least developed countries.  Finally, the Meeting had affirmed that UNCTAD’s remit had become even more crucial and agreed that the Conference must assist developing countries and transition economies in addressing old and new challenges, while seizing the emerging opportunities of globalization.

Motion of Thanks

The representative of the United Republic of Tanzania delivered a vote of thanks, on behalf of UNCTAD XII, to the Government and people of Ghana, saying that their “enormous efforts and sacrifices” had ensured the Meeting’s success.  She also expressed profound gratitude to Ghanaian President John Agyekum Kufuor and his Government for not only hosting the Meeting, but also providing leadership.  UNCTAD XII was equally grateful for the excellent conference facilities and warm hospitality of the people of Ghana, which truly reflected the spirit of “Akwaaba”.

Statements

The representative of Lesotho, speaking on behalf of the “Group of 77” developing countries and China, said that, while the agreed outcome texts would not please everyone in all respects, they nevertheless reflected the reality that both sides of the development equation needed each other, and that was how it should be.  What mattered now was that everyone have faith in what they had agreed, and that the entire international community join UNCTAD in implementing the Accra Accord and Declaration fully.

The representative of Chad, speaking on behalf of the African Group, said the agreement would pave the way for the strengthening of UNCTAD over the next four years and focusing the international community’s trade and development work ahead.  All of Africa was impatiently awaiting the full implementation of the Accra Accord.

The representative of the Philippines, speaking on behalf of the Asian Group, said the Accra Declaration summed up the work that had taken place over the past week.  The document had given the UNCTAD Secretariat the tools it needed to strengthen the Conference and effectively carry out its work over the next four years.  The Asian Group hoped that the outcome documents would help UNCTAD “chart a new course”, so that it could better implement its mandate to the benefit of developing and least developed countries.

The representative of Bangladesh, speaking on behalf of the least developed countries, praised all negotiating groups for having shown remarkable flexibility in ensuring that the outcome documents reflected the concerns of his delegation.

The representative of Argentina, speaking on behalf of the Group of Latin American and Caribbean States, reminded delegations that with the adoption of the texts, the international community must concentrate on ensuring that trade and development served the interests of sustainable development for all.

The representative of Slovenia, speaking on behalf of the European Union, said that, overall, UNCTAD XII had reached a “balanced compromise”.  The Accra Accord provided a good basis for UNCTAD’s work over the next four years, and the European Union was particularly satisfied with the clear focus on Africa and the least developed countries.  In that respect, the European Union welcomed the increased political attention now being given to commodities, as well as the way in which UNCTAD would be better equipped to address that issue.

He said UNCTAD XII had taken important steps towards strengthening the Conference and enhancing its development role, impact and institutional effectiveness.  On that basis, UNCTAD would now be in a position to use its comparative advantage in the United Nations system to pursue its important mandate with new vigour.

The representative of the Russian Federation, speaking on behalf of “Group D”, welcomed the adoption of the Accra Accord and Declaration, which would set the course of UNCTAD for the next four years.  Hopefully the texts would lead to the strengthening of UNCTAD, especially in assisting countries to build capacity for trade negotiations and strengthening investment potential and productive capacities, export diversification, debt management, trade facilitation and training.  From today, collective efforts should be aimed at implementing the UNCTAD XII outcomes, taking into account the interests of all member States of the Conference.

The representative of Japan announced that, in response to the problems posed by rising food prices, his Government had decided to contribute $100 million in food aid, mainly through the World Food Programme (WFP), and to take up the matter at the next Summit of the Group of Eight (G-8) industrialized countries, so that it could send a robust message on emergency assistance, food productivity, trade and climate change.

The observer for Palestine, speaking on behalf of the Arab Group, welcomed the paragraph of the Accord sympathizing with the Palestinian people, although the text did not satisfy the minimum requirements of Palestinians and the Arab Group.  It was to be hoped that, by the time of UNCTAD XIII, a fair solution would have been found to the situation in the Middle East.

Representatives of India, Mexico, Cote d’Ivoire, Egypt, Chile and the United States also made statements.

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For information media • not an official record