Written Answers. - World Trade Organisation.
Thomas P. Broughan
Question:
51
Mr. Broughan
asked the
Minister for Foreign Affairs
if he will make a statement on the Government's policy on the position of Africa in the projected new world trade round announced following the joint summit in Lisbon of EU and US leaders; and if he will give details of the Government's policy towards the trade effect on Africa of the Uruguay Round.
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The Tánaiste and the Department of Enterprise, Trade and Employment have primary responsibility for co-ordinating Ireland's policy concerning the World Trade Organisation and the prospects for a new round of global trade negotiations. The Department of Foreign Affairs, at headquarters and through the Permanent Mission of Ireland to the United Nations in Geneva and the Permanent Representation of Ireland to the European Union in Brussels, remains closely involved in the preparation and implementation of this policy.
At the EU-US summit held near Lisbon on 31 May, both sides reaffirmed their conviction that the early launch of a new inclusive new round of WTO trade negotiations would offer a major boost to global economic growth, employment and sustainable development but should address in a balanced way the concerns of all WTO members. Both the EU and the US pledged to build on the constructive work of the last six months and to try to launch such a new round this year. Whether this ambition can be realised remains to be seen.
In a separate statement on the need for accelerated action on HIV-AIDS, malaria and tuberculosis in Africa, the EU and the US acknowledged the special needs of Africa and the need to take special measures to assist with the development needs of the continent.
A recent report entitled "Can Africa Claim the 21st Century", published by the World Bank, indicates that Africa now accounts for less than 2% of world trade. Africa has lost half its share of world markets – equivalent to almost $70 billion a year – since 1970. In addition less than 1% of the huge international flows of foreign direct investment are invested in sub-Saharan Africa.
It is clear that many African countries and particularly the least developed countries in sub-Saharan Africa are increasingly marginalised from the global economy. They are failing to benefit from the trade liberalisation introduced by the Uruguay Round and many do not have the trade capacity to avail of their preferences under the Lomé Convention.
The reasons for the inability of many poor African countries to participate in a globalising international economy are many. They include the corrosive effect of extreme poverty on their economies, conflict, the rapid spread of HIV-AIDS and other infectious diseases such as malaria and tuberculosis, poor governance, unfavourable macro-economic policies, lack of domestic resources for investment, lack of funds for education and health systems, poor institutional capacity in the trade area and over dependence on single commodities. Despite the liberalisation of trade under the Uruguay round, many products from the least developed countries continue to face high tariffs in industrialised markets.
The Government is deeply concerned about the growing income disparity between Africa and the rest of the world which, in part, has arisen because of that continent's low share of world trade. During the recent negotiations on a new partnership agreement between the EU and the African, Caribbean and Pacific States, Ireland argued strongly in favour of the EU's commitment to granting quota and duty free access to essentially all products from the least developed countries to the EU market by 2005. We hope to see this commitment translated into reality as soon as possible.
At the EU-Africa summit meeting in April this year, which was attended by the Taoiseach and Minister of State, Deputy O'Donnell, it was agreed that "a new round of multilateral trade negotiations should take account of the particular constraints of developing countries, including those in Africa, and allow for their smooth and gradual integration into the world economy. In this context, we agree to co-operate so as to ensure that in the framework of multilateral trade negotiations special attention will be paid to products, including processed agricultural products, which are of export interest to developing countries, in particular Africa."
Ireland's commitment to supporting the needs of the developing countries is evidenced in that we were among the first countries to sign, at the WTO ministerial meeting in Seattle last December, an agreement to establish an advisory centre on WTO law for Developing Countries in Geneva. The agreement was signed on our behalf by Minister of State, Deputy Tom Kitt, who led Ireland's delegation at the conference. Ireland thus became a founder member of the centre and we will contribute $2.25 million to it over five years. The centre will provide invaluable advice and assistance for developing countries – in particular the least developed – in defending their trade rights and availing of the dispute settlement mechanisms of the WTO. In supporting this project we have underlined in a practical way our view that the Millennium Trade Round should reflect closely the needs and interests of the developing world and should facilitate the integration of developing countries into the world trade system.
