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Following is a statement (English only) given by the Secretary for Commerce, Industry and Technology, Mr John Tsang, on "Strengthening the Multilateral Trading System" at the APEC Annual Ministerial Meeting in Busan, Korea today (November 15):
Mr Chairman,
First of all, I would like to thank the government and the people of Korea for hosting this meeting this week in fabulous Busan following a full year of constructive activities with significant achievements in trade and investment liberalisation. We are grateful to you for all the hard work.
Pascal has just given us a candid assessment of the situation in Geneva. I share both his disappointment and his concern. Some of us met at the beginning of the year in Davos where we agreed then that, in order to finish the Doha Round before the end of 2006, it would be prudent to try secure Full Modalities by the sixth Ministerial Meeting in Hong Kong in December. That no longer seems possible, or at least trying to force the pace at this late stage of the game would court disaster.
The current picture seems less than clear, but it is not all bad news. Considerable progress has been made since July, 2004. What is already on the table is both a remarkable and a respectable package of liberalisation. The scope of reforms pledged in agriculture would have been inconceivable only a few years ago. We have had the first across-the-board discussion amongst a group of ministers in Geneva last week. Real numbers have been allowed to hover just above the table. This has helped focus minds on both the potential gains in each area and the likely compromises needed to secure them. The gloves have come off, a little too late perhaps to be sure of nailing down modalities by Hong Kong, but an encouraging change of pace nonetheless.
It would be nice to be able to put a better gloss on things. Instead, I think we should ask ourselves two questions:
First, how do we get the best value out of the Hong Kong meeting; if not full modalities, then what?
And, secondly, how can we in APEC best help move the process forward?
Allow me to sketch out what I believe we need to do in Hong Kong, and you will find that what I shall say should complement what Pascal has set out.
At the risk of stating the obvious, I will start by saying that, whatever adjustment we make to the landing zone in Hong Kong, it is vital that we keep our overall ambition for the Round high. Dumbing-down the deal, settling for a lowest common denominator outcome, helps nobody. Such a deal would be as transparent as the Emperor's new clothes. It would be impossible for any of us to sell to our domestic constituencies. And it would bring the multilateral system into disrepute.
Instead, I believe that we should aim to capture as much as possible of the progress already made. This is vital to ensure that the negotiations move forward after Hong Kong, and not slide back into procedural wrangles.
Secondly, the reports from the Chairs of the Negotiating Groups should help bring to the surface those issues in each area on which ministerial guidance is most urgently needed. I believe, that we should focus our discussions in Hong Kong on a limited number of these issues. The fact that these issues are still blocking progress means that they cannot be resolved by our negotiators in Geneva. We must not shirk our responsibility of helping each other release such hostages.
Which brings me to my third point, timing. We are already out of time. In fact, we have been engaging in over-time. The greater the number of outstanding issues that we can resolve by Hong Kong, therefore, the quicker we will be able to reach the Full Modalities needed to complete this Round. We cannot, in any case, afford to let things slip beyond Spring next year, and we need a clear programme of work to ensure that it does not.
The fourth and last thing that I am convinced that we must do in Hong Kong is to decide on a Development package that Pascal has mentioned earlier in passing, and I would like to spend a few minutes on this.
Development
Colleagues, this is the "Development Round". Yet the focus on agriculture has meant that a number of issues of key concern to developing countries have not received the attention that they deserve. This imbalance of attention has exacerbated the suspicions of developing country members about the commitment of developed countries to this part of the agenda. Commitment to a more clearly articulated package would, I believe, do much to create an atmosphere of confidence and comfort among developing countries, which would be conducive to success.
What then are the possible components of such a package? I will sketch them out very briefly to encourage discussion.
First, unambiguous commitment to Tariff Free/Quota Free market access for products of the Least Developed Countries. I realise that some colleagues may have technical problems with this proposal, problems related to existing preference schemes, but technical problems should be capable of creative solutions.
Second, harvesting as many of the agreement-specific S&D proposals as is possible.
Third, agreement on a longer transition period for Least Developed Countries under the TRIPS and TRIMS agreements.
Fourth, commitment to an Aid for Trade programme, which among other things should be sufficient to enable early implementation of the Trade Facilitation measures on which agreement is already very close.
Fifth, securing a permanent solution to the TRIPS and Public Health issue.
You may have other items to add to this list, including, if it is doable, an early harvest on reduction of cotton subsidies, but I think my list represents the core of what is needed.
Looking Ahead
In conclusion, allow me to re-emphasise how important it is that we keep our ambition for the Round high so that we keep up the pressure on the key protagonists to settle their differences as soon as possible after MC6. This is not the first time that APEC ministers have played this role, but it has never been more badly needed. I trust, therefore, that the statement we put out after this meeting will reflect this continuing high level of ambition as well as setting out in clear terms what we believe we should work for both at MC6 and during the final 12 months of the Round.
I look forward to seeing you all in Hong Kong in a month's time, and working with you to achieve these ends.
Ends/Tuesday, November 15, 2005
Issued at HKT 17:40
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