Public Eye on Davos 2004
Speech by Marianne Hochuli, Berne Declaration (23.01.04)
Yes to inclusive and transparent WTO-talks on a real development agenda – No to an exclusive informal circle in the Swiss mountains
Press conference at “The Public Eye on Davos”, 23 January 2004
Marianne Hochuli, Berne Declaration, Switzerland
The Swiss government has invited trade ministers and uses the World Economic Forum (WEF) as a platform to push the stalled trade talks after the failed WTO ministerial at Cancún. This kind of «Mini-Ministerial» will be an exclusive one, with only around 30 countries (of 148 WTO members) taking part. The Berne Declaration is against forming such an exclusive informal circle in favour of launching an inclusive and transparent negotiating process for finding solutions for developing countries. The surroundings of the WEF, where all the Transnational Corporations try to exercise their influence, is certainly the wrong forum for serious trade discussions.
The main reason for the stalling of the WTO-talks is that the governments of the developed countries have not learnt their lessons and have failed to work towards a development round. Here are some of the most important issues, where solutions have to be found:
Agriculture
Civil society organizations are very concerned that the Cancún Draft Ministerial Declaration, known as the Derbez text, could be taken as a basis for further negotiations instead of the Doha text, which clearly refers to a Doha Development Round. The Derbez’ text does not oblige developed countries to eliminate export subsidies. More than 30 developing countries have been demanding strong and effective special products and special safeguard mechanism because in the developing countries food security and livelihoods of small scale farmers – most of them are women - are threatened by the dumping of subsidized agricultural products. Special products should not be subject to tariff reduction commitments and they should not be subject to restricting conditions. Developing countries must have the opportunity to self-declare their special products regarding food security and rural developments objectives.
Industrial Products
Developing countries have strongly opposed making considerably steeper cuts on higher tariffs. They say WTO-members should respect the Doha mandate on the special and differential treatment as well as the provisions allowing developing countries to make smaller reductions.Tariffs are one of the most important mechanism for most developing countries to protect some of their products against cheap imports, therefore the significance of cuts in tariffs has to be evaluated.
New issues
The main reason why the WTO-Ministerial in Cancún collapsed was the intention of the developed countries to launch negotiations on news issues: on investment, government procurement, competition and trade facilitation. In Cancún developing countries stood together and argued against these news issues, especially against negotiations on investment.
A WTO investment agreement would assign more rights to multinational companies in developing countries without obliging them to adhere to any standards. And an agreement on investment under WTO rules means that all signatory states must respect the three basic WTO principles:
The WTO with its free market credo is an inappropriate body for the promotion of sustainable as well as environment and development friendly investments. Experts in development policy emphasize that investment agreements should promote a development-related regulation of investments. They would need to be flexible enough to accommodate the various needs and conditions of different countries and regions. They should respect the environment. And they should contain provisions that counteract gender inequality.
In December, a joint communication was submitted to the General Council by 45 developing countries on New issues. They demand that all further work on Trade and Investment, Trade and competition Policy and Government Procurement be dropped.
NGO demands
The NGO, present at the Public Eye on Davos conference, repeat the demands of over 100 European civil society groups, which they have made before and after Cancún:
We call on ministers – especially from developed countries –
Marianne Hochuli, Berne Declaration, Switzerland
The Swiss government has invited trade ministers and uses the World Economic Forum (WEF) as a platform to push the stalled trade talks after the failed WTO ministerial at Cancún. This kind of «Mini-Ministerial» will be an exclusive one, with only around 30 countries (of 148 WTO members) taking part. The Berne Declaration is against forming such an exclusive informal circle in favour of launching an inclusive and transparent negotiating process for finding solutions for developing countries. The surroundings of the WEF, where all the Transnational Corporations try to exercise their influence, is certainly the wrong forum for serious trade discussions.
The main reason for the stalling of the WTO-talks is that the governments of the developed countries have not learnt their lessons and have failed to work towards a development round. Here are some of the most important issues, where solutions have to be found:
Agriculture
Civil society organizations are very concerned that the Cancún Draft Ministerial Declaration, known as the Derbez text, could be taken as a basis for further negotiations instead of the Doha text, which clearly refers to a Doha Development Round. The Derbez’ text does not oblige developed countries to eliminate export subsidies. More than 30 developing countries have been demanding strong and effective special products and special safeguard mechanism because in the developing countries food security and livelihoods of small scale farmers – most of them are women - are threatened by the dumping of subsidized agricultural products. Special products should not be subject to tariff reduction commitments and they should not be subject to restricting conditions. Developing countries must have the opportunity to self-declare their special products regarding food security and rural developments objectives.
Industrial Products
Developing countries have strongly opposed making considerably steeper cuts on higher tariffs. They say WTO-members should respect the Doha mandate on the special and differential treatment as well as the provisions allowing developing countries to make smaller reductions.Tariffs are one of the most important mechanism for most developing countries to protect some of their products against cheap imports, therefore the significance of cuts in tariffs has to be evaluated.
New issues
The main reason why the WTO-Ministerial in Cancún collapsed was the intention of the developed countries to launch negotiations on news issues: on investment, government procurement, competition and trade facilitation. In Cancún developing countries stood together and argued against these news issues, especially against negotiations on investment.
A WTO investment agreement would assign more rights to multinational companies in developing countries without obliging them to adhere to any standards. And an agreement on investment under WTO rules means that all signatory states must respect the three basic WTO principles:
 | The first principle relates to market access: domestic markets must be opened to foreign investors. |
| | The second principle involves national treatment: foreign investors must receive the same treatment as domestic companies. In other words, local suppliers may not receive preferential treatment. This point has particular significance for developing countries because it restricts all forms of state support measures. |
| | The third principle – most favored nation status – stipulates that preferential treatment granted to one investor must also be granted to all investors. The most favored nation principle makes it illegal to give preferential treatment to socially or ecologically responsible companies. |
In December, a joint communication was submitted to the General Council by 45 developing countries on New issues. They demand that all further work on Trade and Investment, Trade and competition Policy and Government Procurement be dropped.
NGO demands
The NGO, present at the Public Eye on Davos conference, repeat the demands of over 100 European civil society groups, which they have made before and after Cancún:
We call on ministers – especially from developed countries –
| | to withdraw their support for the start of negotiations on the new issues. |
| | to press for implementation of its previously agreed commitments to reduce subsidised dumping and move towards more sustainable agriculture without extracting further concessions from developing countries in return |
| | to stop engaging in misleading trade-off strategies. |
| | to review and radically reform existing trade rules rather than forcing through a set of negotiatons that most developing countries do not want |
