| Freer trade drives economic development
By Luis de la Calle Pardo, Mexican trade negotiator
Mexico City, 7 November 2001 -Trade openness and economic liberalization are fundamental elements in the development strategy of a country. The active promotion of exports and the attraction of foreign direct investment boost economic growth and are a source of employment. It is not surprising that over the past four decades, every country that has managed to reduce poverty has embraced trade liberalization as the centerpiece of its economic development strategy.
Market openness through clear and transparent rules and disciplines, as well as a multilateral dispute settlement system, give legal certainty to commercial transactions. The World Trade Organization provides the appropriate institutional
framework for the proper development of international trade. For that reason, it is important to advance in the consolidation of the rules and principles of the WTO.
A new round of multilateral trade negotiations is of key importance to move forward liberalization. Mexico fully supports the launching of a new round during the Doha Ministerial for three main reasons:
- Given Seattle's failure to launch a new round, a positive outcome in Doha will rebuild confidence and strengthen the WTO's role as the world's most important negotiation forum;
- A new round will offer the opportunity to truly integrate developing countries into the multilateral trading system;
- In light of the slowdown of the world economy, a new round would allow a more rapid recovery of growth and would halt protectionist pressures.
To be successful, further liberalization in the WTO must consider the interests of all participants. This condition can only be fulfilled through a comprehensive round that ensures that all elements to be negotiated are part of a package.
Among the main issues that a new round of multilateral trade negotiations should address are:
Implementation of the Uruguay Round (UR) Agreements. Full compliance with the UR Agreements is essential for the consolidation of the multilateral trading system and the basis for future liberalization. Any new negotiation in the WTO should tackle the implementation problems of developing countries. This is the only way to create an incentive for those countries to participate in new negotiations.
Non- agricultural goods. Tariff and non-tariff measures applied to non-agricultural goods should be included in the scope of the new round.
Agriculture. It is vital for developing countries to obtain a significant improvement in market access as well as a commitment to eliminate export subsidies and substantially reduce domestic support measures that distort trade.
Dumping. Antidumping measures have been the single most important source of conflict among WTO members, since they are perceived as arbitrary, inefficient, and a tool that impairs negotiated market access. Consequently, there is a need for clarifying and improving such disciplines.
Environmental and labor concerns. Protectionist measures adopted with the excuse of protecting labor or environment are a threat to market access. Labor and environmental concerns need to bee properly addressed, but we should avoid the contamination of WTO agenda by protectionist interests.
Trade has proven to be a useful instrument to alleviate the effects of adverse economic conditions. The current slowdown in the world economy urges us to reaffirm our commitment towards trade liberalization. Doha is an excellent opportunity to send an optimistic message for the future to the international community.
|