Minister
Boutros Ghali,
Honourable Ministers of Trade and Trade Vice Ministers,
Director-General Al-Mannai,
Excellencies,
Ladies and Gentlemen,
I
should like to welcome you to this Opening Session of the Doha
Development Agenda Advanced Training Programme for Senior Government
Officials from all Arab countries. This Advanced Training Programme,
an important °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ technical cooperation and capacity building activity,
is a joint endeavour between the °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ Secretariat, the Arab Monetary
Fund, and three local partner academic institutions represented here
by the Egyptian Foreign Trade Training Centre, the American University
in Cairo, and Cairo University. This model Advanced Training Programme
is also being brought to 9 other regional centres in the world.
I
should like to thank Egypt, its government and people, for hosting
this course and for placing such excellent facilities at the disposal
of the partner organizations and participants. I should also like to
acknowledge the efforts of Arab leaders to meet the challenge of
development and contribute to peace, security and human welfare
through domestic reform, including trade liberalization. The °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ
Secretariat stands ready to help you as your countries seek to reform,
liberalize and develop.
At
Doha, in November 2001, °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ Ministers launched the most ambitious and
wide-ranging trade negotiations ever. These negotiations include
agriculture, services, non-agricultural goods, the environment, and
°ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ rules (encompassing regional trade arrangements, the Dispute
Settlement Understanding and trade remedies). There are also
negotiations under way to make Special and Differential Treatment
Provisions “more precise, effective and operational” and to
provide the possibility of having cheaper access to certain medicines
for poor countries. In addition, work programmes were established for
possible new framework agreements in investment, competition,
government procurement and trade facilitation. Members are also
examining in depth the links between trade, debt and finance; the
links between trade and transfer of technology; and, the circumstances
of Small Economies. Although staged target deadlines have been set for
specific areas of the negotiations, the overall final deadline for the
completion of the negotiations is 1 January 2005 – approximately 23
months from today. The workload for all countries, but particularly
for the developing and least developed countries, is very heavy. Let
me stress that we must work to the time-frames, if we want to achieve
the set goals and meet the overall time frames.
At
Doha, Ministers acknowledged and reaffirmed the fact that trade is an
engine for development. The overriding objective in the negotiations
is to ensure that trade functions as a tool for development. Improving
human welfare and attaining development goals are the ultimate ends of
government policy. At Doha, for the first time-ever, development
objectives were placed at the heart of a new trade round. This was
made possible for several reasons. The vast majority, if not all °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ
Members, participated fully, constructively and with focus. The broad
spectrum of Members’ interests was represented through sensible and
practical positions by all participating Ministers. Ministers were
committed to the principal objectives of rejecting protectionism,
eliminating trade barriers, stimulating growth, creating jobs,
improving the welfare of their people and, hence, contributing to
peace and security. It was recognized that development, peace and
security are inextricably linked, and that trade has an indispensable
contribution to make because it generates income, creates wealth and
jobs.
To
achieve a similar broad-based and satisfactory conclusion to the on
going negotiations and work programme, by 1 January 2005, I have
continuously urged Ministers to engage with each other, as they did in
setting the agenda at Doha: fully and constructively, and with a
willingness to compromise.
Under
the DDA, Arab countries, as well as other developing countries, have
the opportunity to achieve better market access for their products in
developed countries but also in developing countries to which their
products are exported.
Although
there will be significant benefits from a successful completion of the
negotiations and the work programme, nevertheless, participation
requires major investment in training skilled negotiators, developing
institutional capacity, formulating critical national positions, and
funding the participation of skilled negotiators at the negotiations
themselves. Governments must bear in mind the need to allocate enough
human and financial resources for these purposes in light of the
extensive range of the on going negotiations and the potential
development dividends that will accrue to national economies.
Multilateral
institutions can help contribute to training negotiators and assisting
with the development of national institutional capacity for trade
policy formulation and advocacy. This is why at Doha, °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ Ministers
undertook a massive and unprecedented set of technical cooperation and
capacity building commitments that would enable developing and
least-developed countries effectively participate in the Doha
Negotiations and Work Programme. The commitments were also designed to
assist developing and least-developed countries to exercise the rights
of membership and draw on the benefits of the open, rules-based
multilateral trading system. The °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ Secretariat is responding
concretely to the challenge. Significant progress has been made in
this area. Nonetheless, I must emphasise that the scale of the demand,
the urgency of the needs and the ever-expanding list of priorities on
the part of recipient countries are so huge that the °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ Secretariat
cannot alone fulfil these expectations.
The
purpose of this advanced training programme is to strengthen the
effective participation of Members and Observers in the Doha
Development Agenda Negotiations and Work Programme through policy
analysis, a deeper understanding of the issues and a better knowledge
of the range of options available. In the discussions that underpinned
the Doha paragraphs on technical cooperation and capacity building,
recipient countries were critical of the traditional focus of °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ
technical cooperation and training activities on assisting countries
to “understand” already negotiated and agreed rules, but being
weak on building effective negotiating capacity to establish new
rules. They were right. This training programme is a creative response
to the challenge put to us by Members and Observers to improve on our
technical cooperation and capacity building, by making our activities
more negotiation-relevant. It will focus on real issues at the centre
of the Doha Negotiations and Work Programme. Due to the importance I
attach to this activity, several Chairs of various °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ negotiating
bodies have been invited to participate in this event, and I thank
them for agreeing. May I encourage you to make full use of their
presence here in Cairo, by seeking their views and insights on
relevant negotiating issues.
These
10 advanced intensive 2-week training courses are complemented by the
regular trade policy courses which run for three months and are based
at the °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ offices in Geneva. Because these were so highly regarded,
we took them to two African countries last year: Kenya and Morocco,
for Anglophone and Francophone African countries respectively. Two
more will be held this year before the Cancun Ministerial. We are
looking into the possibility of expanding these trade policy courses
to other regions by 2004 and beyond.
These
training courses form part of the 443 activities in the 2003 °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ
Technical Assistance Plan approved by the membership last November. I
should like to express my gratitude and appreciation to °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ Members,
including Members of the °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ Arab Group who joined in the unanimous
approval of the Plan. I am committed to ensuring that the °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ
Secretariat's relationship with the Arab countries receives the
attention that it deserves. Several steps have been taken, in this
regard.
We
are now dealing with Arab Members and Observers as a group. Distinct
seminars, such as this Advanced Training Programme, are being
organized for the Arab Group in particular. In our 2003 Technical
Assistance Plan, the number of activities for Arab countries has
increased significantly. In 2003, 15 regional seminars will be
organized for Arab countries, in addition to 30 national activities.
Several of these activities will be jointly organized with regional
partners. The principal partners of the °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ in the Arab World are the
Arab Monetary Fund, the United Nations Economic Commission for Western
Asia, and the Islamic Development Bank. We have signed Memoranda of
Understanding with these organizations.
An
overdue measure that has now been taken is the establishment of a
Unit, in the Technical Cooperation Division, dedicated to the Arab and
Middle East Countries. This Unit provides an institutional focal point
for advisory services to Arab delegations. The Secretariat is also
providing active support and advice to the five Arab countries that
are currently in the process of accession to the °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ. Although the
process of accession is based on negotiations between the acceding
country and °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ Members, the Secretariat is providing technical
assistance to facilitate the accession of these countries.
I
would like to assure you of my firm determination and commitment to
effectively implement Secretariat measures to assist Arab countries
and to improve the effectiveness and efficiency of their participation
in the work of the °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ.
Allow
me now to take this opportunity to provide you with a brief summary of
the state-of-play of the negotiations.
I
reported to Members at the last meeting of the General Council on
10-13 December 2002 that my assessment on the state-of-play of the
negotiations was mixed. Although progress has been made on all fronts,
it has been uneven and we have not moved as quickly as we need to. We
were unable to meet the target deadlines for 2002 on TRIPS and Health,
implementation and special and differential treatment. More clarity is
needed in negotiating positions. Such clarity is a necessary
pre-condition to finding compromises and forging consensus. It is
essential that all areas of the negotiations move forward together.
This will provide an overall picture of the balance of gains and
concessions under the Single Undertaking. We cannot tempt failure by
procrastinating, engaging in trade brinkmanship, or holding out for
last minute deals.
At
this moment, let me focus on a few areas of critical importance for
the membership.
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Technical
Cooperation and Capacity Building: Significant progress has
been made in the area of technical cooperation and capacity
building. The implementation of the 2002 TA Plan, which was
approved by the Membership on 6 March 2002 as part of the
implementation of the Doha commitments, was satisfactory and
positive. The 2003 TA Plan continues to implement the Doha
commitments, and builds on the achievements of the 2002 TA Plan.
As I reported to °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ Members in the General Council last month, my
judgement is that the progress made on Technical Cooperation and
Capacity Building since Doha has been significant and positive,
enabling beneficiary countries to effectively engage in the on
going negotiations. The Membership shared my assessment. I also
emphasised my firm commitment to design a °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ technical
cooperation and capacity building programme that will endure and
serve the Membership well beyond the Doha negotiations.
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Least
Developed Countries: substantive progress has been made, at
three levels, to help integrate Least Developed Countries into the
Multilateral Trading System, in accordance with the Doha mandate.
First, a °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ Work Programme for LDCs was adopted by the Membership
on 12 February 2002. Second, much progress has been made with
regard to the Integrated Framework for the LDCs. This is the
mechanism for assisting LDCs to mainstream trade into their plans
for national economic development and strategies for poverty
reduction. Djibouti, Mauritania, Yemen, members of this Arab
Group, are currently beneficiaries. Discussions are underway
amongst agencies, donors and the LDCs on the extension of the
Integrated Framework to more LDCs. I will be meeting with other
Heads of Agencies in a few months time and will report to Members,
thereafter. Third, in a historic decision, Members agreed to
guidelines to facilitate LDCs’ accession to the °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ.
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Agriculture:
The vast majority of delegations have made clear that without
progress on agriculture, overall progress in the negotiations will
not be possible. This is a critical area for most developing and
least developed countries. For these countries, the real gains of
the DDA negotiations lie in substantial reductions in trade
distorting subsidies. Since the agriculture negotiations began,
there has been unprecedented participation from Members. Nearly
all of whom have submitted proposals. This includes the proposals
from the African Group and from other Members represented here.
The DDA sets a deadline of end-March for establishing modalities
for reductions in support and protection. At this stage, the
positions of different Members and their reasons for having them
are clear. The review of these positions is set out in the
Overview Paper by the Chairman that was circulated last year. This
overview sets out the very wide differences between different
participants. Some want radical reforms, some are much less
ambitious and some want flexibility to address specific issues. To
bridge these gaps will require a considerable effort by all. In
the short time left to the end of March, all participants in the
agriculture negotiations will have to show flexibility and
compromise to achieve a result in line with the DDA;
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Services:
The services negotiations are proceeding on two fronts: market
access and rule-making. In general, one could say with confidence
that the negotiations on Services have been advancing in a
satisfactory manner. The adoption of the negotiating Guidelines,
in March 2001, and their further endorsement by Ministers in Doha,
has given the negotiations a clear sense of direction. The
Guidelines lay heavy emphasis on promoting the development
objectives of the developing countries and giving due respect for
national policy objectives. They also state that each Member of
the °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ has the right to chose the sectors in which it wishes to
take commitments. Also, as I am sure you are aware, the dates
decided by Ministers for the submission of initial request by 30
June 2002 and initial offers by 31 March 2003 have provided the
negotiating process with clear landmarks to aim for. On market
access, since last July, Members have actively started bilateral
negotiations on the basis of initial requests. The process is
continuing and will no doubt intensify with the submission of the
initial offers by the end of March this year. Much work will need
to be done. Some progress has also been made on the rule-making
side, although there are issues that still need to be resolved,
where political decisions will be required by Members. Members are
continuing their work in the areas of domestic regulation,
safeguards, government procurement and subsidies. With the
exception of the subject of safeguards, which has a deadline of 15
March 2004. All negotiations on rule making issues should conclude
prior to the conclusion of the negotiations on market access;
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We
cannot lose sight of the fact that the services negotiations are a
part of a broader negotiating agenda. Linkages with other areas,
notably agriculture, are a reality. However, we must ensure that
such linkages are used in a positive manner. Achieving more
progress in services could no doubt be conducive to registering
progress in agriculture.
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TRIPS
and Public Health: although there has been a significant shift
in the position of negotiations, the negotiations have not been
concluded, and the end-of-year deadline was missed. However, I
believe that the existing difficulties are technical in nature and
possible to resolve.
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Special
and Differential Treatment: The work programme on Special and
Differential Treatment as mandated by the Ministers at Doha, is
continuing with Members having made nearly 85 proposals to make
the existing provisions more precise, effective and operational. A
number of important cross-cutting issues have also been raised.
There are some fundamental differences amongst Members, but I am
hopeful that we would be able to make progress before the next
reporting deadline of 11 February 2003. I shall be reporting on
the situation as it evolves.
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Singapore
Issues: As you already know, important decisions will be taken
at Cancun, in September, on the launch of negotiations in
investment, competition policy, trade facilitation, and
transparency in government procurement.
Let
me conclude by briefly emphasising five key points:
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First,
we are all acutely aware of the difficult global economic
circumstances we find ourselves in. Several factors are negatively
affecting growth. These include a decline in commodity prices;
fall in tourism receipts; persistent drought in parts of North
Africa including this region; the alarming impact of HIV/AIDS; and
the weakness in global demand, which is affecting world exports.
Moreover, global uncertainty and regional tensions affect economic
performance, including trade. Under these circumstances, I urge
trade ministers to focus on the contributions that trade can make
to development, to peace and to security. Trade is a vital nexus
point. The exchange of goods and services brings countries
together. The Multilateral Trading System and in particular the
Doha Development Agenda offer all countries the unique opportunity
to engage in trade negotiations for development, peace and
security. This opportunity should not be missed;
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Second,
the challenge facing Arab and other developing countries is to
restore economic growth and create jobs, while maintaining
macroeconomic stability, persevering with domestic economic
reforms, and ensuring that trade is mainstreamed or integrated
into economic policies and strategies for poverty reduction. The
real benefits of trade liberalization are mainly realized if trade
is placed firmly within the context of a domestic reform agenda. I
need not underscore the simple but powerful truth that trade
reform and liberalization cannot stand-alone. It must be supported
by appropriate domestic policies for the full benefits to be
realized;
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Third,
I would like to praise the courage shown by many of your countries
in pursuing domestic policy reform. These reforms have either been
self-initiated or are based on structural adjustment programmes. I
encourage your countries to maintain the impetus of these reforms.
The global economy is a very competitive one. Competition is the
basis for rapid progress that yields benefits for citizens and for
the improvement of individual welfare;
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Fourth,
I would like to confirm to Ministers that the °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ Secretariat will
continue to support the efforts of Arab countries with focused and
properly targeted technical assistance and capacity building.
Beyond this, I will also work very closely and in coordination
with other core multilateral agencies to ensure that the advice,
support and assistance we provide is coordinated and coherent, and
will contribute to your national development objectives. I remain
confident that working together, we shall continue to improve the
meaningful integration of Arab countries into the multilateral
trading system and the global economy;
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Fifth,
the 5th °ÄÃÅÁùºÏ²Ê¹ÙÍø×ÊÁÏ Ministerial Meeting in Cancun is eight months away. To
ensure that we have a successful Ministerial Meeting, I appeal to
Ministers to fully and proactively engage in the process. I
believe that a successful ministerial meeting is one where the
outcome is balanced, with positive results for strengthening
global demand, increasing growth, and at the same time generating
benefits for all our Members. I believe that such an outcome is
possible with engagement by Ministers steering the process and
directing their trade negotiators in Geneva. I urge Ministers to
implement the commitments they undertook at Doha and re-affirmed
by their Heads of State and Government at the Johannesburg World
Summit on Sustainable Development (WSSD) in September 2002.
I
look forward to the opportunity, I believe that we will shortly have,
for an exchange of views on issues of mutual interest.
Thank
you for your kind attention.