By Guy Sebban

Paris – Time is running out for the Doha Round of negotiations to lower trade barriers throughout the world, an achievement that would especially benefit developing countries but would also add billions of dollars to the world economy.

The ministerial conference of the World Trade Organization in Hong Kong in mid-December offers the last best hope for reaching agreement on how to free up world trade by lowering tariffs and reducing other impediments to the free flow of goods and services, in order for the entire Doha Round to be concluded before the end of 2006.

There has been feverish activity ahead of the Hong Kong ministerial. Ministers from the European Union, the United States, Brazil, India and others have been trying to work out differences on farm trade, which are seen as a major stumbling block to completing the Doha round. Unfortunately, they do not appear to have got very far, and the deadlock remains.

Like ICC, World Bank President Paul Wolfowitz is among those who say that success is critical to improving the lot of developing countries.

He told a news conference during a recent visit to Finland: "Everyone, developing countries and developed countries, is going to have to give a little, everyone, in order to get this process moving forward, which will benefit everyone around the world."

Let us hope for the sake of the hundreds of millions of people who live in the world’s poorer countries that Mr Wolfowitz’s view prevails.

If there is to be agreement in Hong Kong in December, there must be movement soon.

As throughout all previous trade rounds, the International Chamber of Commerce (ICC), speaking for business throughout the world, is campaigning for a successful outcome in the conviction that open markets are essential to the spread of prosperity and higher living standards throughout the world.

All nations stand to gain. But the biggest winners will clearly be the developing countries, which desperately need more open markets, especially for their agricultural products.

We are talking here about the psychology of success. The ability to compete and seize opportunities on world markets will be powerful encouragement to business and stimulate job creation. Such is the motivation behind the ICC campaign, which reached its climax earlier this month with an open letter signed by the Chief Executives or chairmen of over 60 leading companies throughout the world. The letter urged WTO member governments to redouble their efforts to reach agreement at Hong Kong.

“We strongly believe that the WTO-based multilateral trading system is one of the central pillars of international cooperation. Multilateral initiatives to liberalize world trade and improve market access for goods and services are a major driving force for global economic growth, job creation, and wider consumer choice – as well as keeping in check the ever-present threat of protectionism,” the letter said.

“We underline our conviction that a successful Doha Round is vital to enable business to continue to play a leading role in the eradication of poverty and the raising of global living standards.”

Freer markets resulting from a successful Doha round will stimulate economic growth worldwide and serve the ICC ideal of “world peace through world trade”.

Guy Sebban is Secretary General of the International Chamber of Commerce

The article appeared on 16 November 2005 in The Straits Times  http://straitstimes.asia1.com.sg/ .