UNCTAD COMMISSION CONVENES ON TRADE IN GOODS, SERVICES AND COMMODITIES

The eighth session of the UN Conference on Trade and Development (UNCTAD) Commission on Trade in Goods, Services and Commodities was held in Geneva from 9-13 February. The objective of the session was to "carry out a strategic overview of the international trading system from a development perspective, with special attention to UNCTAD XI's sub-theme of assuring development gains from international trade and trade negotiations". The Commission focused on the following items: market access, market entry and competitiveness; trade in services and development implications; trade, environment and development; and progress on the implementation of previous Commission conclusions, including post-Doha follow-up. Interactive high-level dialogues were held on each of these items. Dani Rodrik and Carlos Correa further gave a special presentation entitled "Key Stakes for Developing Countries in the Post-Doha Trade Negotiations".

Panel on development issues in trade and trade negotiations

A high-level panel on Development Gains, Opportunities, and Challenges in the International Trading System and Trade Negotiations convened on the afternoon of 9 February. Senior representatives from WTO missions in Geneva, including from the EC, the US, India, Brazil, South Africa, and Zambia participated, as did Douglas Gregory of IBM Europe and Michael Finger, currently with the American Enterprise Institute. The participants addressed, inter alia: key challenges affecting developing countries in the international trading system; opportunities and development gains from international trade negotiations; prospects for optimal outcomes of current negotiations; and finally, the main elements of the pro-development policies of developed countries and partners and ingredients for developing country national policies that assure development gains through trade. The speakers supported the 'successful' conclusion of the Doha round as a positive contribution to development, however differences prevailed over the respective panellists' definition of success, as well as how it was to be achieved.

Some common themes brought up included the importance of placing agriculture at the heart of discussions, the need for greater focus on south-south trade, as well as the need for complementarity between international and regional trading arrangements. Supply side constraints were highlighted as an area needing to be better addressed. Participants discussed the importance of maintaining 'policy space' in the face of liberalisation, thought they diverged over its importance, especially vis-à-vis trade-offs with the market access agenda. Some speakers raised concern over the possible resurgence of protectionism via new non-tariff barriers, food safety and other standards (including environmental), and security concerns. The need to achieve a balance between free market and government intervention was echoed by some of the panellists, noting that this was an issue of policy coherence between and within developed and developing countries, as well as international institutions. Some developed country representatives stressed the need for trade-related technical assistance, but the panel's confidence differed over its broader developmental impact.

Environmental goods and services, market-access barriers debated

The high-level panel on Trade, Environment and Development, convening on 12 February, debated the role of environmental goods and services (EGS), as well as developing country capacities to respond to environmental requirements and enhance their competitiveness in this area. Chaired by Dacio Castillo of Honduras, the panel included Geneva-based WTO ambassadors as well as Luisa Elena Guinand Quintero of the Andean Community BIOTRADE initiative and Paulo Ferracioli of the Brazilian National Institute of Metrology, Standardisation and Industrial Quality.

In discussion, a number of developing countries recognised the complexities involved in negotiating a reduction or possible elimination of tariff and non-tariff barriers to environmental goods and services. Participants emphasised that any list proposed on environmental goods had to reflect the special needs and interests of developing and least-developed country participants. While many countries expressed an interest in environmentally preferable products (EPPs) and services with export potential -- such as eco-tourism -- they also expressed wariness about possible criteria based on process and production methods. A number of participants, particularly from Africa, drew attention to the adverse impact of diverse standards on market access for small and medium enterprises (SMEs), and stressed the need for technical and financial assistance.

Rodrik and Correa speak on 'policy space' for development

Also on 12 February, professors Dani Rodrik of Harvard University and Carlos Correa of University of Buenos Aires addressed the UNCTAD Commission on key factors driving development. They highlighted supportive trade policy options, development gains from trade negotiations, and 'spaces' for development policy. Both speakers were emphatic that compared to the one-size-fits-all approach of the 1980s and early 90s, a greater understanding prevailed today of the policy and institutional mix required to promote development. Professor Rodrik stressed the need to promote greater activity by domestic entrepreneurs and domestic investors in the local economy. He also noted that the development benefits of agricultural liberalisation were being vastly overplayed and that mode 4 in the services negotiations (temporary movement of natural persons) offered far better development gains. He warned against trading off policy space for greater market access.

Professor Correa touched on the shrinking spaces available to developing countries as a result of the WTO's Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPs) -- a trend further strengthened in the proliferating bilateral investment (BITs) and intellectual property right (IPR) treaties. He noted that these IPR treaties were presenting an obstacle to innovation. In conclusion, he stressed the need for developing countries to be more proactive on the IPR agenda, as indeed IPRs could help spur innovation if used correctly.

ICTSD reporting.