Bring down OECD trade barriers in interests of consumers

Trade across open and stable markets is the key engine for generating the sustainable economic growth needed to combat poverty – the greatest single threat to peace, democracy, human rights and the environment – says Unilever chairman Niall FitzGerald.

As a participant in the OECD Forum on"The Multilateral Trading System – making the Doha Declaration work for all countries", in Paris today (Wednesday May 15), FitzGerald claims poverty can be conquered if there is the will and the commitment. "It should be very clear even to the most complacent citizen in the rich developed world that to defend prosperity you must attack poverty."

"The success of the Doha Round requires the commitment and concrete contributions of those countries that are most successful in world trade – the OECD countries who still spend three times as much on agricultural subsidies as they do on development assistance – to bring down their own trade barriers in the interest of their own consumers and of a fairer world trading system."

He argues that trade liberalisation has already played a key part in improving human development over the past 50 years: average incomes in the developing world have doubled since 1965; life expectancy has improved from an average 47 years to 64 years; one-quarter of the population is illiterate compared with one-half 50 years ago; 8 out of 10 have access to clean drinking water compared with 1:3 30 years ago.

"Obviously a lot remains to be done and done urgently…it will require commitment from the developed world in particular to open its markets and ensure balanced rules. And it will also require commitment from developing countries to pursue a positive agenda that captures these opportunities."

FitzGerald says that leadership in action will be required, through resolution rather than escalation of current disputes, through an inclusive and effective negotiating process, and through timely preparation of offers of concrete trade liberalisation. Trade rules need to put all the main trade sectors on an equal footing. "Political and business leaders in all countries need to focus on the importance of imports to their economies, not only exports."

FitzGerald emphasises five key requirements for the Doha Declaration to deliver tangible results:

1. Delivering sufficient progress and results in the key areas of the agenda at each stage of the Doha timetable. This means:

- keeping to the interim deadlines on issues such as a workable solution for the compulsory licensing of essential medicine (December 2002),

- agreeing on agriculture reduction "modalities" (March 2003),

- tabling services and agriculture offers (the Mexico Ministerial, September 2003).

It also means having a clear picture, by Mexico, of the type of agreements on investment and competition policy that are acceptable and beneficial to developing countries, and proceeding on this basis.

2. Managing the Doha trade-related capacity-building pledges. In a concerted and co-ordinated fashion targeting specific needs, avoiding duplication and keeping within the agreed Doha mandate.

3. Demonstrating leadership, particularly – but not only – by the US and EU in preventing dispute escalations in sensitive areas and avoiding actions that start heading down the "slippery slope" of renewed protectionism.

4. Underpinning action on the trade agenda with action on the sustainable development agenda in other international fora (e.g. ILO, UNEP) and public-private partnerships for development.

5. Underpinning the whole enterprise with sustained advocacy of the benefits of trade liberalisation, increased trade and multilateral trade rules. As well as the "big numbers" there needs to be more emphasis on individual country and regional benefits and opportunities, and on supportive local case-studies.

Speakernotes