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Dept for International Development

Answer

Mr. John Taylor: To ask the Secretary of State for International Development what measures the Government are taking to make the eradication of poverty the primary aim of world trade rules. [93732] Clare Short: World Trade Organisation (WTO) rules need to apply to all members. But they must also be achievable by developing countries, with realistic implementation schedules and targets. New rules require the right balance between standardisation and flexibility. For rules to be strong and binding, they need to have enough flexibility to meet the varying needs of the WTO membership and to recognise that WTO members are at different stages of development. Without flexibility, new WTO agreements will be stuck at the lowest common denominator. This will lead to richer members making agreements amongst themselves outside the WTO and without consideration for the impacts on developing countries. The term special and differential treatment is used to describe special provisions for developing countries in existing WTO agreements1. Many developing countries complain that in the Uruguay Round the application of special and differential treatment and the treatment of different country circumstances were haphazard and that longer implementation deadlines for developing countries were decided arbitrarily. There needs to be a better application of flexibility in designing future WTO rules. Appropriate flexibility should be integrated systematically into WTO agreements, rather than added on as an afterthought. Special and differential treatment reforms will eventually link into the poverty reduction strategies. Thus the integration of trade policy reform is essential if poor people are to benefit from trade liberalisation. In addition to special and differential treatment, the UK has been supporting the Integrated Framework. The Integrated Framework has two aims: to identify trade capacity building and technical assistance needs in least developed countries to which the multilateral agencies and donors can then make a coordinated response; and to mainstream trade into least developed countries poverty reduction strategies, so that pro-poor trade policies are included in a consistent manner in a country's overall development strategy. The Integrated Framework is based on the principle of country ownership and partnership. It is now being implemented in 14 least developed countries and eventually will be extended to Low Income countries. Ultimately the Integrated Framework should cease to be necessary as trade becomes successfully integrated into poverty reduction strategies. 1 These are in the form of (1) provisions aimed at increasing trade opportunities, (2) provisions that call upon WTO members to safeguard the interest of developing countries, (3) flexibility of commitments, (4) transitional time periods, and (5) technical assistance.

Secondary information

Type

Written question

Reference

93732; 398 c750-1W;398 c748-9W

Session

2002-03

Subjects

Developing countries Poverty Trade Trade agreements World Trade Organization Foreign trade

Link

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