SG OXFAM trade negotiations
SG OXFAM trade negotiations 13Jun06
13 Jun 2006 20:23:05
OXFAM CONFERENCE ON TRADE NEGOTIATIONS
AND PACIFIC CIVIL SOCIETY
West Motor Inn, Nadi, Fiji
Tuesday 13 June 2006, 9:00am
Opening Address by Greg Urwin, Secretary General,
Pacific Islands Forum Secretariat
Thank you very much to be here today and to open this important and topical Conference on Trade Negotiations and Pacific Civil Society.
2. A short ten years ago, international trade hardly showed up on the development radar of many in the region, a generalisation which, in large measure, seemed to me to hold good for those in government service, in the private sector or in civil society. Sure, we, of course all knew that we imported our rice and sugar and exported our fish and copra; but for many of us, that really was just about as far as it went. If we were at all involved in development, it was largely a question of securing aid from friendly countries with whom we had had generally longstanding relationships, and who made their decisions sometimes with reference to the recipients and sometimes not.
3. The times have changed considerably, as they have a habit of doing. All of the countries in our island region now devote at least some attention to international trade issues as an important facet of their national development strategies, they have to. In fact, for many of our countries, concerted efforts are being made right now to play 'catch up', as it were, to develop the capacity to address the complex of trade issues that have imposed themselves, either directly or indirectly on the region in the last decade.
4. Why? Well, again, we can look to our own national development history for part of the answer. When our countries emerged from dependency into the brave new world of independent statehood, in many cases particularly among our smaller members it was, in keeping with many colonial models, the government that was usually seen as the source of national development and, at the same time, often the provider of most of the goods and services needed by our communities. Hence, for example, that well-known post-colonial phenomenon, the very large, widely reviled Public Works Dept. Over the years, however, and as elsewhere (indeed often as prescribed by elsewhere ), many governments sought to divest themselves of many of their private sector functions, especially the provision of basic goods and services. This evolution in behaviour throughout the region became framed in the words, the private sector is the engine of economic growth', with governments increasingly, in theory at least, playing a supportive, enabling role.
5. That process of private sector growth has, in itself, been a thing of parts. Over the years, though it has become increasingly clear that our smaller economies can develop only so far and continue to, or in some areas begin to meet the needs of our people on the basis of local markets or of commercial activity on a regional or traditional partner basis only. A number of us are just too small. Nor is aid dependency an adequate answer. The conclusion is, therefore, that if our private sectors are to expand and to generate wealth and improve the standards of living for our people in the ways we wish, even in the largest of our island countries, we can't do it on our own. If we want the range of modern medicines, modern appliances, foodstuffs beyond those we can produce in our own fields and seas, our private sectors must trade.
6. And so in the last decade, the governments, private sectors and I think, an increasing number of people generally in the Pacific have come to recognise the importance of participating in the international economy as best we can if we are to get closer to whatever economic potentials we have. The question really is; given our particular, in some ways extreme position on the global spectrum, how do we best seek to engage in this.
7. With this awareness has come a growing recognition of several important aspects of international trade. First, and most fundamentally, international trade does not take place in a legal vacuum, a world without rules. In fact, just the opposite is the case. Today there are many rules governing virtually every aspect of international trade, and those rules are continually being written or amended through negotiations in different fora. In the process, many are becoming increasingly complex as well. Leaving aside the general issue of whether those rules are inevitably skewed against us, a real question that very complexity makes sustained engagement for countries of our capacities difficult.
8. One has, I think, only to contemplate the multiple layers at which we are seeking to operate. At the global level, of course, the main body for negotiating trade rules is the World Trade Organisation, the WTO. It is within the WTO that the overall rules are set to guide international trade and those rules impact on trade relations at the multilateral, regional and bilateral levels. Below the WTO-level are various arenas in which new trade rules are also being negotiated. Probably the most important and well-known in the Pacific region at the moment are the negotiations currently taking place between the Pacific ACP States ' the Forum Island Countries ' and the European Union of an Economic Partnership Agreement, an EPA. A key component of the EPA, when and if completed, will be new trading arrangements between the PACPS and the EU and those new arrangements must be compatible with WTO rules.
9. At the regional level, we already have in place a regional free trade agreement, the Pacific Island Countries Trade Agreement, PICTA, including all Forum Island Countries, and the Melanesian Spearhead Group Agreement providing for free trade within the Melanesian sub-region. Work is underway that may lead to negotiations on the inclusion of trade in services in both of these Agreements. As well, in the years to come there will also be negotiations among Australia, New Zealand and the Forum Island Countries which will have as their object the further development of trade arrangements under the Pacific Agreement on Closer Economic Relations, PACER, and perhaps the fashioning of a broader, more comprehensive settlement which more adequately reflects the totality of these relationships. And finally, of course, countries in the Pacific have bilateral trading arrangements with other countries, both within the region and beyond and will be negotiating new agreements as situations warrant.
10. At the highest level, six Forum Island Countries are either members or have applied for membership in the WTO: Fiji, PNG, Samoa, Solomon Islands, Tonga and Vanuatu. There, as members, they seek to play a role in casting the most important rules governing trade not only between economic giants like the United States and the EU but also smaller countries such as themselves. They also seek to benefit from the trade liberalisation that has taken place among all 150 WTO Members. At the present time, the six Forum Island Countries to which I just referred are working together with other like-minded countries in the Caribbean and Indian Ocean, assisted by the Commonwealth Secretariat, to pursue what is known as the Small Economies Work Programme aimed at influencing the design of WTO rules to take account of the special situations of the small WTO Members and other countries such as those in our region. I won't pretend that any of this is easy, or many of the portents particularly encouraging, but the option of non-engagement seems no option at all.
11. At the lower levels, the Forum Island Countries are also negotiating the rules governing international trade, be they in the context of the EPA, PICTA, the MSG Agreement or even bilaterally.
12. Within these broad considerations, then, what is the purpose of participating in these trade negotiations? Why do we do it? And what has this to do with Pacific civil society? The starting point, perhaps, is that we do not trade simply for the sake of it. We participate in international trade in order to achieve objectives, both narrow (e.g. to sell our surplus produce abroad) and broad (e.g. to develop our agricultural sector and earn money to buy other goods and services). In other words, international trade is a tool we can use to achieve our national objectives.
13. And, to be of benefit to us, international trading activities must be set within a country's national trade policy, and policy that, in turn, is part of a larger national sustainable development strategy. Ideally, trade policy decisions, therefore, are taken in that broader context of a country's overall development strategy.
14. At the present time, few Forum Island Countries have a detailed national trade policy in place, either on its own or as part of a broader national development strategy. It must be said though most recognise the importance of having such a policy and, against the background of their capacity constraints, are working towards that end.
15. And that, it seems to me, is where representatives of a civil society have an important role to play, a role which is, definitely I think, being slowly but more strongly understood in our region. Ultimately, it is for the government of the day to decide on the country's international trade policy, a policy reflecting national policy decisions on, for example, where priority should be given, which sectors should be developed, what resources should be exploited, social considerations and so on. That being said, a well-designed trade policy would also reflect to an appropriate degree the needs, concerns, aspirations of those operating in the private sector. A trade policy that did not consider private sector views would be unlikely to reflect reality on the ground. Similarly, a well-designed trade policy would also take into account the social welfare implications of any policy decision adopted, be it, for example, the likely impact on vulnerable members of society or effects on the country's natural environment.
16. With that in mind, and as the value of consultations on trade issues between the public sector, private sector and civil society becomes more widely perceived, a number of Forum Island Country Governments, assisted by us at the Forum Secretariat, are in the process of establishing consultative mechanisms which include representatives of all three stakeholder groups. These 'Trade Policy Advisory Committees' will have as their role the provision of advice to the Government on national trade policy, including, as appropriate, the approach the Government should take to trade negotiations of importance to the country. It is a process akin to some aspects of the implementation of the Pacific Plan, where we are seeking to support the development of national mechanisms which will allow our member countries to make practical use of the regional initiatives the Plan offers. This business of implementation at the national level is at the heart of it so far as the Plan is concerned making it relevant to nationally developed priorities and so it is with international trade.
17. And if those Trade Policy Advisory Committees are to have a positive impact on the formulation of the country's trade policy and the participation of the country in trade negotiations, they will need to work hard and quickly because negotiations in a number of key areas such as on EPAs are moving fast. Sceptics will say that we risk simply being driven along by such negotiations. It is a risk I, certainly, am very conscious of, although I personally think that risk is lessening as we get deeper into the negotiations. But in circumstances where the external world is going to move on willy-nilly, we surely give ourselves the best chance by working out what exactly it is we want, and what it is we are likely to get out of that external world.
18. Earlier, I offered the truism, one of a number, that international trade is complex. Although not everyone need be an expert on the intricacies of international trade, those wishing to contribute to trade policy formulation do need to treat the policy consultation process seriously, be faithful in presenting the views of their constituents and to recognise that international trade can be a valuable tool to pursue the country's national development objectives.
19. With that in mind, may I close by mentioning some activities being undertaken by the Forum Secretariat which are relevant to trade negotiations and civil society. To assist Forum Island Countries understand not just the basics of international trade but also key developments in the major negotiating arenas to which I referred earlier, the Forum Secretariat has over the last four years been conducting annual national consultations in each of the 14 Forum Island Countries. I am pleased to say that in each case the government concerned has issued invitations to representatives of the private sector and civil society to participate. Where they have participated, it has, I believe, been a valuable, mutually reinforcing experience. I think they may have gone some way to demonstrating that civil society and the private sector are not, in all matters, polar opposites. As long as governments so wish, those consultations will continue in future.
20. The Secretariat will also continue to assist in the establishment and effective operation of Trade Policy Advisory Committees where it is requested to do so.
21. May I say at this point that the formulation of trade policy and a country's approach to trade negotiations involves choices and sometimes trade-offs. While some might argue for the protection of a local industry that produces canned fish, for example, what if cheaper and better quality canned fish could be imported from overseas? Should the local industry be protected? Or what if attracting foreign hotel investment would generate considerable new employment opportunities but result in beach-front property being lost from public use or certain damage to the environment. These are choices that would have to be made in light of all relevant circumstances.
22. On that point, I should say that, in response to a mandate from Trade Ministers to develop a monitoring framework to evaluate the social impact of the regional trade agreement, PICTA, the Forum Secretariat, the Pacific Foundation for the Advance¬ment of Women (PACFAW) and the United Nations Development Fund for Women (UNIFEM) have collaborated in the development of a Social Impact Assessment Training Package.
23. A training package was completed in April 2005, following which a training session on its use was held at the Secretariat in Suva. It was decided that national workshops for government and civil society would be conducted to build awareness of the social impact assessments of multilateral trade agreements and to promote national ownership of the process. Training was undertaken in October 2005 by the Secretariat with funding assistance from the EU in Niue, Nauru, FSM and Palau. UNIFEM has plans to undertake training in Fiji and Samoa this month and in the Republic of the Marshall Islands in July. The Secretariat anticipates being able to undertake training in the remaining FICs after August 2006.
24. Our members have shown a great deal of interest in monitoring the social impacts of trade and indicated that the process should be a partnership between the state, private sector and civil society. On the way forward, it is anticipated that members will appoint a body to act as the focal point for the monitoring process. Technical assistance to develop country-specific frameworks and for the actual monitoring process can be provided by the Forum Secretariat on request.
25. May I conclude by affirming that, within the limits of its available resources, the Forum Secretariat welcomes collaboration with other interested bodies working in the area of international trade and trade negotiations, and wants to work with them actively. I hope we are demonstrating this, not just in this specific area but also, for example, in our efforts to develop our relations with regional non-state actor organisations. Overall, the relationships between civil society and governments in the region still have much developing to do but I hope you might agree that we are moving along. It's an often painful process, but a very necessary one. I wish you every success with the Conference and take great pleasure in declaring it open. Thank you.
13 Jun 2006 20:23:05
OXFAM CONFERENCE ON TRADE NEGOTIATIONS
AND PACIFIC CIVIL SOCIETY
West Motor Inn, Nadi, Fiji
Tuesday 13 June 2006, 9:00am
Opening Address by Greg Urwin, Secretary General,
Pacific Islands Forum Secretariat
Thank you very much to be here today and to open this important and topical Conference on Trade Negotiations and Pacific Civil Society.
2. A short ten years ago, international trade hardly showed up on the development radar of many in the region, a generalisation which, in large measure, seemed to me to hold good for those in government service, in the private sector or in civil society. Sure, we, of course all knew that we imported our rice and sugar and exported our fish and copra; but for many of us, that really was just about as far as it went. If we were at all involved in development, it was largely a question of securing aid from friendly countries with whom we had had generally longstanding relationships, and who made their decisions sometimes with reference to the recipients and sometimes not.
3. The times have changed considerably, as they have a habit of doing. All of the countries in our island region now devote at least some attention to international trade issues as an important facet of their national development strategies, they have to. In fact, for many of our countries, concerted efforts are being made right now to play 'catch up', as it were, to develop the capacity to address the complex of trade issues that have imposed themselves, either directly or indirectly on the region in the last decade.
4. Why? Well, again, we can look to our own national development history for part of the answer. When our countries emerged from dependency into the brave new world of independent statehood, in many cases particularly among our smaller members it was, in keeping with many colonial models, the government that was usually seen as the source of national development and, at the same time, often the provider of most of the goods and services needed by our communities. Hence, for example, that well-known post-colonial phenomenon, the very large, widely reviled Public Works Dept. Over the years, however, and as elsewhere (indeed often as prescribed by elsewhere ), many governments sought to divest themselves of many of their private sector functions, especially the provision of basic goods and services. This evolution in behaviour throughout the region became framed in the words, the private sector is the engine of economic growth', with governments increasingly, in theory at least, playing a supportive, enabling role.
5. That process of private sector growth has, in itself, been a thing of parts. Over the years, though it has become increasingly clear that our smaller economies can develop only so far and continue to, or in some areas begin to meet the needs of our people on the basis of local markets or of commercial activity on a regional or traditional partner basis only. A number of us are just too small. Nor is aid dependency an adequate answer. The conclusion is, therefore, that if our private sectors are to expand and to generate wealth and improve the standards of living for our people in the ways we wish, even in the largest of our island countries, we can't do it on our own. If we want the range of modern medicines, modern appliances, foodstuffs beyond those we can produce in our own fields and seas, our private sectors must trade.
6. And so in the last decade, the governments, private sectors and I think, an increasing number of people generally in the Pacific have come to recognise the importance of participating in the international economy as best we can if we are to get closer to whatever economic potentials we have. The question really is; given our particular, in some ways extreme position on the global spectrum, how do we best seek to engage in this.
7. With this awareness has come a growing recognition of several important aspects of international trade. First, and most fundamentally, international trade does not take place in a legal vacuum, a world without rules. In fact, just the opposite is the case. Today there are many rules governing virtually every aspect of international trade, and those rules are continually being written or amended through negotiations in different fora. In the process, many are becoming increasingly complex as well. Leaving aside the general issue of whether those rules are inevitably skewed against us, a real question that very complexity makes sustained engagement for countries of our capacities difficult.
8. One has, I think, only to contemplate the multiple layers at which we are seeking to operate. At the global level, of course, the main body for negotiating trade rules is the World Trade Organisation, the WTO. It is within the WTO that the overall rules are set to guide international trade and those rules impact on trade relations at the multilateral, regional and bilateral levels. Below the WTO-level are various arenas in which new trade rules are also being negotiated. Probably the most important and well-known in the Pacific region at the moment are the negotiations currently taking place between the Pacific ACP States ' the Forum Island Countries ' and the European Union of an Economic Partnership Agreement, an EPA. A key component of the EPA, when and if completed, will be new trading arrangements between the PACPS and the EU and those new arrangements must be compatible with WTO rules.
9. At the regional level, we already have in place a regional free trade agreement, the Pacific Island Countries Trade Agreement, PICTA, including all Forum Island Countries, and the Melanesian Spearhead Group Agreement providing for free trade within the Melanesian sub-region. Work is underway that may lead to negotiations on the inclusion of trade in services in both of these Agreements. As well, in the years to come there will also be negotiations among Australia, New Zealand and the Forum Island Countries which will have as their object the further development of trade arrangements under the Pacific Agreement on Closer Economic Relations, PACER, and perhaps the fashioning of a broader, more comprehensive settlement which more adequately reflects the totality of these relationships. And finally, of course, countries in the Pacific have bilateral trading arrangements with other countries, both within the region and beyond and will be negotiating new agreements as situations warrant.
10. At the highest level, six Forum Island Countries are either members or have applied for membership in the WTO: Fiji, PNG, Samoa, Solomon Islands, Tonga and Vanuatu. There, as members, they seek to play a role in casting the most important rules governing trade not only between economic giants like the United States and the EU but also smaller countries such as themselves. They also seek to benefit from the trade liberalisation that has taken place among all 150 WTO Members. At the present time, the six Forum Island Countries to which I just referred are working together with other like-minded countries in the Caribbean and Indian Ocean, assisted by the Commonwealth Secretariat, to pursue what is known as the Small Economies Work Programme aimed at influencing the design of WTO rules to take account of the special situations of the small WTO Members and other countries such as those in our region. I won't pretend that any of this is easy, or many of the portents particularly encouraging, but the option of non-engagement seems no option at all.
11. At the lower levels, the Forum Island Countries are also negotiating the rules governing international trade, be they in the context of the EPA, PICTA, the MSG Agreement or even bilaterally.
12. Within these broad considerations, then, what is the purpose of participating in these trade negotiations? Why do we do it? And what has this to do with Pacific civil society? The starting point, perhaps, is that we do not trade simply for the sake of it. We participate in international trade in order to achieve objectives, both narrow (e.g. to sell our surplus produce abroad) and broad (e.g. to develop our agricultural sector and earn money to buy other goods and services). In other words, international trade is a tool we can use to achieve our national objectives.
13. And, to be of benefit to us, international trading activities must be set within a country's national trade policy, and policy that, in turn, is part of a larger national sustainable development strategy. Ideally, trade policy decisions, therefore, are taken in that broader context of a country's overall development strategy.
14. At the present time, few Forum Island Countries have a detailed national trade policy in place, either on its own or as part of a broader national development strategy. It must be said though most recognise the importance of having such a policy and, against the background of their capacity constraints, are working towards that end.
15. And that, it seems to me, is where representatives of a civil society have an important role to play, a role which is, definitely I think, being slowly but more strongly understood in our region. Ultimately, it is for the government of the day to decide on the country's international trade policy, a policy reflecting national policy decisions on, for example, where priority should be given, which sectors should be developed, what resources should be exploited, social considerations and so on. That being said, a well-designed trade policy would also reflect to an appropriate degree the needs, concerns, aspirations of those operating in the private sector. A trade policy that did not consider private sector views would be unlikely to reflect reality on the ground. Similarly, a well-designed trade policy would also take into account the social welfare implications of any policy decision adopted, be it, for example, the likely impact on vulnerable members of society or effects on the country's natural environment.
16. With that in mind, and as the value of consultations on trade issues between the public sector, private sector and civil society becomes more widely perceived, a number of Forum Island Country Governments, assisted by us at the Forum Secretariat, are in the process of establishing consultative mechanisms which include representatives of all three stakeholder groups. These 'Trade Policy Advisory Committees' will have as their role the provision of advice to the Government on national trade policy, including, as appropriate, the approach the Government should take to trade negotiations of importance to the country. It is a process akin to some aspects of the implementation of the Pacific Plan, where we are seeking to support the development of national mechanisms which will allow our member countries to make practical use of the regional initiatives the Plan offers. This business of implementation at the national level is at the heart of it so far as the Plan is concerned making it relevant to nationally developed priorities and so it is with international trade.
17. And if those Trade Policy Advisory Committees are to have a positive impact on the formulation of the country's trade policy and the participation of the country in trade negotiations, they will need to work hard and quickly because negotiations in a number of key areas such as on EPAs are moving fast. Sceptics will say that we risk simply being driven along by such negotiations. It is a risk I, certainly, am very conscious of, although I personally think that risk is lessening as we get deeper into the negotiations. But in circumstances where the external world is going to move on willy-nilly, we surely give ourselves the best chance by working out what exactly it is we want, and what it is we are likely to get out of that external world.
18. Earlier, I offered the truism, one of a number, that international trade is complex. Although not everyone need be an expert on the intricacies of international trade, those wishing to contribute to trade policy formulation do need to treat the policy consultation process seriously, be faithful in presenting the views of their constituents and to recognise that international trade can be a valuable tool to pursue the country's national development objectives.
19. With that in mind, may I close by mentioning some activities being undertaken by the Forum Secretariat which are relevant to trade negotiations and civil society. To assist Forum Island Countries understand not just the basics of international trade but also key developments in the major negotiating arenas to which I referred earlier, the Forum Secretariat has over the last four years been conducting annual national consultations in each of the 14 Forum Island Countries. I am pleased to say that in each case the government concerned has issued invitations to representatives of the private sector and civil society to participate. Where they have participated, it has, I believe, been a valuable, mutually reinforcing experience. I think they may have gone some way to demonstrating that civil society and the private sector are not, in all matters, polar opposites. As long as governments so wish, those consultations will continue in future.
20. The Secretariat will also continue to assist in the establishment and effective operation of Trade Policy Advisory Committees where it is requested to do so.
21. May I say at this point that the formulation of trade policy and a country's approach to trade negotiations involves choices and sometimes trade-offs. While some might argue for the protection of a local industry that produces canned fish, for example, what if cheaper and better quality canned fish could be imported from overseas? Should the local industry be protected? Or what if attracting foreign hotel investment would generate considerable new employment opportunities but result in beach-front property being lost from public use or certain damage to the environment. These are choices that would have to be made in light of all relevant circumstances.
22. On that point, I should say that, in response to a mandate from Trade Ministers to develop a monitoring framework to evaluate the social impact of the regional trade agreement, PICTA, the Forum Secretariat, the Pacific Foundation for the Advance¬ment of Women (PACFAW) and the United Nations Development Fund for Women (UNIFEM) have collaborated in the development of a Social Impact Assessment Training Package.
23. A training package was completed in April 2005, following which a training session on its use was held at the Secretariat in Suva. It was decided that national workshops for government and civil society would be conducted to build awareness of the social impact assessments of multilateral trade agreements and to promote national ownership of the process. Training was undertaken in October 2005 by the Secretariat with funding assistance from the EU in Niue, Nauru, FSM and Palau. UNIFEM has plans to undertake training in Fiji and Samoa this month and in the Republic of the Marshall Islands in July. The Secretariat anticipates being able to undertake training in the remaining FICs after August 2006.
24. Our members have shown a great deal of interest in monitoring the social impacts of trade and indicated that the process should be a partnership between the state, private sector and civil society. On the way forward, it is anticipated that members will appoint a body to act as the focal point for the monitoring process. Technical assistance to develop country-specific frameworks and for the actual monitoring process can be provided by the Forum Secretariat on request.
25. May I conclude by affirming that, within the limits of its available resources, the Forum Secretariat welcomes collaboration with other interested bodies working in the area of international trade and trade negotiations, and wants to work with them actively. I hope we are demonstrating this, not just in this specific area but also, for example, in our efforts to develop our relations with regional non-state actor organisations. Overall, the relationships between civil society and governments in the region still have much developing to do but I hope you might agree that we are moving along. It's an often painful process, but a very necessary one. I wish you every success with the Conference and take great pleasure in declaring it open. Thank you.
