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Trade Liberalisation

Answer

The UK Government will continue to work hard to support the poorest and most vulnerable producers, be it through multilateral negotiations in the World Trade Organisations (WTO) or regional trade agreements such as the Economic Partnership Agreements. In the context of the WTO negotiations, we are firmly committed to ensuring that developing countries are given appropriate flexibility to adjust to trade reforms, i.e. special and differential treatment (SDT). These include proposals for special products in developing countries, which may require protection due to their importance for rural development and food and livelihoods security. They also include proposals for a special safeguard mechanism for developing countries to temporarily protect vulnerable sectors if affected by import surges.In the negotiations poor countries are not being forced to open their market through any trade negotiations, multilateral, bilateral or otherwise. The UK Government believes that developing countries should be allowed to choose the best policies for the poor and the environment. New trade rules made in the WTO have to be agreed by consensus and thus all countries have the right to veto any agreement they do not consider to be in their best interest.The UK Government believes that trade rules should take account of different .countries' development needs. The answer, however, is not greater protectionism in the form of higher tariff barriers as these will limit the opportunities for poor countries to trade with each other, and with developed countries, and thus exclude them further from the benefits of international trade. Instead, we believe that existing and new trade rules should be made flexible enough so that they meet developing countries' needs. This is the policy the Government is pursuing in the WTO.In services such as water, education and health, increasing access, coverage and quality is vital if countries are to reach the Millennium Development Goals. In March 2005, DFID published a policy paper entitled ‘Partnerships for Poverty Reduction: changing aid conditionality', which shows that we are committed to helping Governments of developing countries make their own decisions about how to develop their economies and provide services to their people, based on evidence of what works best in reducing poverty. The policy makes it clear that DFID will not make aid conditional on specific policy decisions by partner Governments or attempt to impose policy choices on them, including in sensitive economic areas such as privatisation or trade liberalisation.DFID also encourages developing countries to make their own decisions about service delivery, including whether or not to open their service sectors to foreign providers. However developing countries are not obliged to accept any request or to open up their services sectors. It all comes down to which option is the most effective in reducing poverty, a decision for Governments of developing countries to make through their own political process.The WTO Ministerial Conference taking place in Hong Kong this week, represents an important opportunity to make a significant contribution to reducing global poverty. The UK Government is working to achieve an outcome that delivers real gains for developing countries, including the poorest.

Secondary information

Type

Written question

Reference

36930; 440 c1888-9W;440 c1888-9W

Session

2005-06

Subjects

Developing countries Import duties Trade Trade agreements

Link

View this Written question on www.publications.parliament.uk