'Aid For Trade' Agreement To Help Doha Round Agenda

by Ulrika Lomas, for LawAndTax-News.com, Brussels

04 October 2006

WTO Director-General Pascal Lamy, in his opening remarks to the 53rd Session of the UNCTAD Trade and Development Board last week, said that Aid for Trade is "a key piece" of the trade-development-growth puzzle but stressed that "there is no acceptable alternative to the successful conclusion of the (Doha) Round".

'Trade infrastructure is part of the wider picture of aid for trade, a topic which, in my view, might deserve more of UNCTAD's attention,' said Mr Lamy. 'As you are aware, the task force on aid for trade that we agreed to establish in Hong Kong has finalised its work and its recommendations which will be consider at the upcoming WTO General Council meeting on 10 October.'

'For my part, I have been actively consulting with various partners including the World Bank, IMF, UNDP, bilateral donors and regional development banks pursuant to the mandate given to me in Hong Kong, as recently as during the recent meetings of the World Bank and the IMF in Singapore. These consultations have made it clear that Aid for Trade is a necessary complement to the Doha Round, but not a substitute. Opening up trade multilaterally and strengthening the rules-based trading system are seen by Members as being the most important contribution that the WTO can make to accelerating economic growth, promoting development and reducing poverty.'

Mr Lamy emphasized the unavoidability of a conclusion to the Doha Round: 'Last July, as you know, we decided to suspend the Doha negotiations to allow a period of “time-out” for Ministers to consider how they can each contribute to breaking down the remaining obstacles, particularly in agriculture. I know that serious political reflection has been taking place in capitals since then. I am convinced that the result of this process will be an acknowledgement that there is no acceptable alternative to the successful conclusion of the Round.'

'In the meantime, I believe it is important that we create a space for quiet discussions, hard reflection and discreet bridge building so that positions on agriculture market access and subsidies can be narrowed. Resumption only makes sense if the position of the main players changes. and this will not happen without heavy political lifting at home. While this hopefully takes place, we should advance the Aid for Trade, building on the progress and momentum that clearly exists. I will continue to work closely with others to ensure that the initiative continues to gather momentum as we deepen and widen our coherence activities.'

'My number one objective remains concluding the negotiations. That is what WTO members have been saying in the last weeks, and developing countries have said it more loudly than others. But it is also clear to me that we need to think more creatively about how trade, development and growth can fit together into a coherent whole. Aid for Trade is a key piece of that puzzle. It presents all of us with the major opportunity — and challenge — of translating our promise of greater global cooperation into concrete actions and meaningful results. Let's seize it.'

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