Bridges Weekly Trade News Digest • Volume 8 • Number 4 • 4th February 2004
Meeting Looks At Making Investment Work For Development
EU HELP DESK TO ASSIST DEVELOPING COUNTRIES ACCESS EUROPEAN MARKET
On 2 February, the European Commission launched a new on-line helpdesk to help developing country exporters access the EU market. Speaking at a news conference held around the launch, EC Trade Commissioner Pascal Lamy urged poorer countries to tell him which subsidies they wanted the EU to dismantle. The EU is under fire from many countries to cut its farm subsidies as part of the WTO’s Doha round of trade negotiations. The helpdesk contains key information on customs duties, customs documentation, rules of origin and trade statistics. According to the EC, a second phase, currently being developed, will widen the range of information to cover product-specific import requirements such as sanitary and phytosanitary requirements. The EU has said it is ready to negotiate on its most highly trade-distorting subsidies, but has warned it cannot jeopardise its farms and rural livelihoods by ending all farm support. "Once we have got a list…to cut subsidies to zero, we are ready to negotiate on all of that list and on the date, so no restrictions," Lamy said. "It is an open offer so sugar and tobacco can be on that list, but we do need to have that list," he added in response to a question whether sugar, of interest to several nations, including major exporter Brazil, would be included.
To access the Helpdesk, see http://export-help.cec.eu.int.
"EU launches on-line helpdesk to foster developing country access to EU markets," EU TRADE NEWS, 2 February 2004; "EU urges poor nations to identify subsidy cuts," REUTERS, 3 February 2004.
On 30 January 2004, India-based non-governmental group Consumer Unity & Trust Society (CUTS) convened a meeting in Geneva, Switzerland, as part of its ‘Investment for Development’ (IFD) project, implemented in collaboration with the UN Conference on Trade and Development (UNCTAD). Participants spent the day discussing some of the findings of the project, which since September 2001 has been examining investment policies, performance and perceptions in seven developing and transition economies. Broadly speaking, the research on Bangladesh, Brazil, Hungary, India, South Africa, Tanzania, and Zambia indicated that despite various regulatory and policy changes undertaken in the 1990s to promote foreign direct investment (FDI), the experiences of the countries has been quite diverse. While a more favourable investment climate ‘generally’ appeared to be a pre-condition for higher inward FDI flows, the net impact of these flows on economic growth and job creation diverged between countries. For example, in the larger developing countries in the study, FDI did create jobs with foreign affiliates, but also carried losses in jobs for domestic firms. For the smaller developing countries, FDI created jobs as well, but impacted domestic industries less (resulting from the lack of development of these industries in these countries). One common theme heard throughout the 30 January meeting was the need for investment policy and regulation to operate not in isolation, but rather as part of a broader and more robust national development strategy.
More details on the project and its outputs can be found at http://www.cuts-india.org/ifd-indx.htm.
ICTSD reporting; "Strategising Investment for Development," CUTS, January 2003.
BUSH LOSING SUPPORT ON INTERNATIONAL TRADE ISSUES
A new study released on 22 January by the Program on International Policy Attitudes (PIPA) shows a number of Americans dissatisfied with the trade policy of the Bush administration. Only 21 percent of those polled said they would be more likely to vote for President Bush because of the way he has dealt with trade issues, while 37 percent indicated they would be less likely to do so. "It’s a clear net negative for the President," Steven Kull, Director of the Center on Policy Attitudes, said of the results. A majority of those polled were critical of the US government’s trade policy, with 53 percent saying "I support the growth of trade in principle, but am not satisfied with the way the US government is dealing with the effects of trade on American jobs, the poor in other countries, and the environment." Furthermore, 61 percent believed the current administration was not paying enough attention to the growth of the overall American economy, a notable increase from 36 percent in 1999. Regarding agricultural subsidies — one of the key stumbling blocks that led to the collapse of talks in Cancun last year — 34 percent of those polled favoured regular annual subsidies for small farmers, while only 9 percent approved of them for large farming business. "Clearly, US policy on farm subsidies is far out of step with the preferences of the American public," Kull noted. "The vast majority of US subsidies go to large farming businesses on a regular annual basis, while only 1 in 10 Americans approves of this." The survey was conducted from 19 December 2003 to 5 January 2004 and included a nationwide sample of 1,896 respondents.
"Americans on Globalization, Trade, and Farm Subsidies," PIPA, 22 January 2004.
SMALL ISLAND STATES ADDRESS SUSTAINABLE DEVELOPMENT, TRADE
Over 300 participants convened on 26-30 January to address progress and challenges to the sustainable development of Small Island Developing States (SIDS), where trade was a recurrent topic. Documents emerging from the meeting, including a ‘Nassau Declaration’, noted that special and differential treatment under the WTO emerged as a priority for SIDS, as access to the benefits of globalisation and integration into the global economy will be limited without these provisions. Countries further noted that inability to effectively participate in multilateral negotiations and weakening economic performance since 1994 threatened sustainable development in their regions. At a panel discussion on liberalisation and globalisation, SIDS called for the adoption of procedures allowing smooth transition from Least-developed Country (LDC) status and an integrated framework of technical assistance and cooperation for trade and development in SIDS to be adopted by the WTO. The group also requested an establishment of special long-term financial mechanisms to facilitate the adjustment of SIDS to the post-Uruguay Round trading environment, the recognition by the WTO to maintain subsidy measures by SIDS, greater attention to the environmental dimensions of trade and continued examination of the trade implications of multilateral environment agreements (MEAs).
Outcomes of the Inter-regional Preparatory Meeting for the Ten-year Review of the Programme of Action for the Sustainable Development of Small Island Developing States (SIDS) will be forwarded for consideration at the 12th session of the Commission on Sustainable Development, which will in turn make recommendations to the International Meeting for the Ten-year Review of the Programme of Action on SIDS, to take place in Mauritius from 30 August to 3 September 2004.
"Summary of the Inter Regional Preparatory Meeting for the 10 Year Review of the Barbados Programme of Action for the Sustainable Development of SIDS". EARTH NEGOTIATIONS BULLETIN, 2 February 2004.