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The OECD workshop on 27 May took the view that there is much to be gained from a completion of the Doha round of negotiations, but that having strong institutions and appropriate flanking policies beyond the field of trade is equally important as they can help to smooth the transition to a more global economy.
Participants on the OECD panel included H.E. Adrian Macey, Ambassador of New Zealand to the OECD, HE Alejandro Jara, Ambassador of Chile to the WTO, Howard Chase, European roundtable of Industrialists. Guy de Jonquières, Trade Editor of the Financial Times, moderated the panel.
Ken Heydon of the OECD discussed the gains from liberalisation of market access in services and in reducing non-tariff barriers. He pointed out that the biggest gains for the South lie in liberalising markets in northern countries, but developing country gains are maximised if they liberalise too. The OECD recommends regulatory reform in its member countries in order to ensure the right mix of policies for facing the challenges of globalisation (and reaping the benefits). These policies need to be accompanied by sound macro-economic management, labour market flexibility, and protection of the environment.
New Zealand’s Ambassador to the OECD Adrian Macey spoke of the high South-South trade barriers which result in developing countries’ trading mostly with developed countries and the gains they would realise if the North were to liberalise its markets further. He, along with Chilean Ambassador to the WTO Alejandro Jara, felt strongly that preferential access to markets causes more harm than good by creating distortions and has had little success in generating export growth.
Howard Chase of the European Round Table argued in favour of the completion of the trade negotiating rounds for the sake of global prosperity. His recipe for achieving strong development combines ethical business behaviour with staff training and dialogue with the local community; reforms in WTO countries and the strengthening of a rules-based international framework in order to lower risks and give consumers a greater choice of goods; market access made possible by governments; trade facilitation; strengthening forward and backward trade for inward investment; and multi-stakeholder participation.
Ambassador Jara viewed successful negotiations as necessary to ensure higher economic growth. He explained that Chile opens up its borders unilaterally, but then negotiates to obtain reciprocity. He warned against viewing the world in terms of North/south, which is not the way the business community look at it. Trade in services is an issue for both the developed and developing countries . Tariffs should not be used as a way to allocate resources, as high tariffs distort exchange rates, and countries will end up exporting less. Preferential treatment is unreliable and often entails conditionality. He would like to see better rules instead, and the elimination of anti-dumping rules as well as the elimination of subsidies in agriculture and in manufactured goods.
For a complete summary of the event, consult the WTO website,
or contact meggan.dissly@oecd.org 33 1 45 24 80 94
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