Region to fight erosion of trade preferences

Published: Wednesday July 23, 2008

As World Trade Organi-zation (WTO) talks began in Geneva on Monday, the Caribbean made it clear that it would not throw open its doors to free trade simply for the sake of liberalisation.

Director General of the Caribbean Regional Negotiating Machinery (CRNM), Henry Gill, told the Caribbean Media Corporation (CMC) that the region was seriously worried about attempts by Latin America and other WTO interests to rapidly reduce its traditional trade preferences.

Negative effect

"This can have, for economies that have been weaned on preferences, a negative effect, depending on what the nature of the deal is," he said.

"That is why we are being so careful about the issue of preference erosion."

Gill has also rejected suggestions that the WTO talks are doomed, saying that he was anxious for an agreement, particularly in the area of agriculture.

"One of the arguments that has been used is that we are in this situation, with regards to food prices globally, simply because there were blockages to international trade in agriculture.

"So, to unblock all of that, the expectation is that if we could have a successful round, particularly in terms of agricultural liberalisation, this could help the global economy, including our own consumers, but we have to be careful in the middle of that in terms of how this liberalisation is negotiated and eventually effected," he said, adding that countries were working towards an outcome that is balanced between agriculture and other issues.

The CRNM head told CMC that despite the concerns, small, vulnerable countries like those in the Caribbean were also seeing some positive developments and he was hopeful of further progress.

"I think it is important to give an indication that the small and vulnerable economies (SVEs) have come a long way and there is broad recognition of a range of our interests and they have been taken account of, so that is the optimistic note," he said.

Positive disposition

"I don't think anybody has a crystal ball so you can't tell how this one-week process is going to turn out, but the important thing to underline is that there is a positive disposition to move ahead."

Addressing the WTO mini-ministerial meeting, Barbados' Foreign Affairs Minister Christopher Sinckler stressed the need for a development dimension to the ongoing global trade talks.

Sinckler was supported in his call by the Guyanese Trade Minister, Henry Jeffrey, who was also invited to the exclusive WTO Green Room for private discussions.

Jamaica and Suriname were also represented at the talks which have been in progress for the past seven years.


Source: Jamaica Gleaner
http://www.jamaica-gleaner.com/gleaner/20080723/business/business6.html