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Trade can aid development - WTO chief

22nd April 2005

By: Nicola Mawson

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Speaking at the opening of the World Trade Organisation's fifth annual public symposium (WTO) DG Supachai Panitchpakdi said that trade cannot end poverty - but can aid development.

As this year marks the tenth anniversary of the WTO, the forum has been entitled 'WTO After Ten Years: Global Problems and Multilateral Solutions'.

He called on the gathering of political leaders, experts and practitioners to “shape and strengthen the rules-based multilateral trading system so we can all reap the benefits of greater openness and economic integration and manage any associated uncertainties and tensions”.

Broad aims of the WTO include raising incomes, living standards and employment and expanding the production of trade in goods and services.

These need to be tackled while at the same time taking account of the needs of countries at different levels of development and seeking an optimal and sustainable use of the world's resources and protection of the environment.

Some 148 Members, representing more than 90% of world trade have committed to the rules and principles of the WTO.

The WTO has extended the rule of law into the international trade realm.

It has contributed significantly to keeping peaceful and stable trading relations between WTO members.

But Panitchpakdi added that the WTO is not perfect, despite its achievements.

“There is scope for further improving and strengthening the WTO - to make it more attuned to our common aspirations and today's realities.” One such opportunity is through the current round of talks at the Doha Development Agenda.

Attendees will spend the next few days discussing, in more technical depth, issues relating to the market access negotiations and questions such as how to realise the development dimension of the DDA - which cuts across all areas under negotiation.

“Finding a compromise to these, as well as the many other issues in the Doha Work Programme, will be crucial in bringing the negotiations to a successful conclusion.” He said that the challenge facing the symposium is advance all areas of the Work Programme together -crucial because many areas of the negotiations are inter-linked.

2005 is going to be a busy year, as many feel that negotiations need to be tied-up by the end of this year.

This means that, if this target is to be met, major political decisions will have to be taken in December when Ministers will be meeting in Hong Kong.

“Apart from the negotiations, there are also a number of other, longer term systemic challenges facing the multilateral trading system which warrant critical examination,” says Panitchpakdi.

Many of these have been laid out in an independent report.

These include issues such as the impact of preferential trading arrangements on the international trading environment, decision-making in the WTO, and the role of civil society in the WTO's processes.

“The suggestions laid out in the report are now before members for their consideration.”

Panitchpakdi reminded delegates of the urgency of the work that they are now engaged in: “More than one billion people still live below the extreme poverty line of one dollar per day.

“According to the United Nations secretary-general, 20 000 people die from poverty each day.

“Trade is not the answer to all the world's problems, but it can make a powerful contribution to international efforts for development.

“We must ensure this contribution is realised and that the enormous potential of globalisation is harnessed for the benefit of people the world over.”

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