SPEECHES
January 27, 2005
DAVOS, Switzerland
2005/5
CHECK AGAINST DELIVERY
NOTES FOR AN ADDRESS BY
THE HONOURABLE JIM PETERSON,
MINISTER OF INTERNATIONAL TRADE,
AT THE WORLD ECONOMIC FORUM
“THE PATH TO HONG KONG: FAILURE IS NOT AN OPTION”
I remain optimistic about what the world can achieve in Hong Kong in December 2005.
There is significant political will behind it. We agreed to the July Package in Geneva
and that was a big step.
Canada is among the most open nations in the world. We have a huge resource base
and a knowledge-based economy. As a trading nation, we want a world that is open to
trade and investment. That means we need an ambitious result that includes revised
rules and improved market access for goods and services.
We believe the Hong Kong conference must be a “development round” for two reasons.
First, there is a global imperative to address the needs of developing countries and
trade is key to development. Trade and development go hand in hand.
Second, as Cancun and Geneva have demonstrated, if there is no buy-in from the
developing world, there will be no agreement. Developing countries need liberalization,
but there are concerns about trade preference erosion and revenue loss.
This isn’t about North versus South or developing versus developed; just think what the
Doha round can do for inter-developing country trade.
A recent UNCTAD [United Nations Conference on Trade and Development] report
speaks to the importance of trade liberalization for developing countries. I encourage
you to review it. Revenue loss is a big issue: 70 percent of developing country tariff
revenue comes from other developing countries’ exports.
As some have correctly pointed out, trade-related technical assistance and capacity
building are critical, but the WTO [World Trade Organization] cannot go it alone. Our
efforts here need to be complemented by those of the World Bank and the IMF
[International Monetary Fund].
When it comes to liberalization, some believe there should be categories of countries
such as developed, developing and least developed. Others propose even more
categories, arguing that not all developing countries are at the same level of economic
development. This theoretical debate will never be resolved and here’s why.
We believe that the highest level of development will come from the highest level of
trade liberalization. That is to say, every country must contribute to liberalization
according to its own ability and role in the global trading system.
Geneva was a success because of leadership. U.S. Trade Representative Robert
Zoellick’s letter last year and European Union Trade Commissioner Pascal Lamy’s
offering on export subsidies are examples of the critical initiatives that got things back
on track.
Admittedly, it is true that fear will have to be managed. Fear of failure and fear of being
blamed for failure. It is also true that failure is not an option.
Here before us is the opportunity to address the large U.S. domestic subsidies and
enormous EU subsidies.
Without Doha, we will lose this opportunity and developing countries will lose the most.
It is Canada’s view that failure is not an option.
Thank you.
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