SITPRO NEWS Trade Facilitation Now!

Chichen Itza
The Mayan ruins of Chichen Itza, Cancún

The World Trade Organisation was faced with frustration last month when the countries represented at the Fifth Ministerial Conference in Cancún failed to reach a consensus that would allow negotiations to move forward.

In his statement at the beginning of the conference Mike O'Brien, UK Minister for Trade, Investment and Foreign Affairs, had challenged delegates to find, "the courage and vision to negotiate a reconciliation of interests - an agreement to deliver for the poor - to master the challenge of globalisation and expand the opportunities for international trade". However, at the conference there was not time for the delegates to work past entrenched national positions.

While the outcome of the Cancún negotiations is a disappointment, especially to all those who have worked so hard to progress the Doha Development Agenda, it has not totally closed the door on progress. Cancún is not the end for the Doha round of WTO negotiations and the debate that took place represents underlying progress on a range of complicated and contentious issues.

SITPRO is particularly frustrated that negotiations on other issues have resulted in a delay to any possible progress on a trade facilitation agreement, despite the large measure of support for these negotiations from WTO member countries. Whilst there are a host of perceptions about what caused the failure, we should focus on constructive reflection to ensure that we follow the most productive way forward. The Roundtable talks that SITPRO undertook this summer with a range of developing countries were successful in identifying a common approach to trade facilitation, and SITPRO will continue to promote a multilateral approach to trade agreements.

At SITPRO's International Trade Conference on 21st October, hosted together with CBI and ICC.UK, the aim is to cover a range of perspectives for the future and discuss how the international community can build on the experience of Cancún. Speakers at this event will include: Clare Short MP, the former Secretary of State for International Development; Dr Vincent Cable MP, the Liberal Democrat Shadow Secretary of State for Trade and Industry; and Richard Greenhalgh, the Chairman of Unilever UK.

The CBI's Director General, Digby Jones, will also be among the speakers. In a statement before the Cancún meeting, at which he was an Official Observer, he explained that a trade facilitation agreement is important to business, saying, "£1 in every £20 spent on trade deals goes into paperwork or pockets and that is why we want to reduce trade red-tape and improve procedures". He also emphasised that the barriers of mistrust between developing and developed countries need to be addressed: "There is a huge amount to play for but the EU and US have got to lead by example. We will never persuade people of the benefits of free and fair trade unless they too share and feel the benefits".

Return to SITPRO News: Issue 47, October/November 2003