Brazil's trade ambassador wants larger role for poorer nations
'Agriculture should be part of global trading system'
January 12, 2005
By Andile Ntingi
Johannesburg - World Trade Organisation (WTO) members must work towards including agriculture in the global trading system to stimulate trade and enhance economic development in poor countries, Luiz Felipe de Seixas Correa, Brazil's ambassador to the WTO, said yesterday.
Correa is in South Africa to seek South African backing of his candidacy to replace Supachai Panitchpakdi, the current director-general of the WTO.
Panitchpakdi will leave the organisation at the end of August this year and the new WTO boss will take over on September 1.
"One of the biggest challenges facing the global trading system has to do with making development the core of the agenda and also making agriculture part of the global trading system," Correa said.
Correa said the WTO's decision making and dispute resolution roles needed to be strengthened to allow developing nations to have a bigger say.
Developing nations were a majority in the institution, but were finding it difficult to push through their agenda.
"I firmly believe that the WTO should be made a member driven organisation to improve decision making. I also think that it's a misconception that the dispute settlement mechanism always favour the developed nations," said Correa.
"Brazil is a frequent fighter of the system. We have won some decisions and lost some."
In August last year, Brazil won a WTO ruling against the domestic and export subsidies that the EU was paying its farmers to produce excess sugar. This sugar was often dumped in developing markets, undermining international trade.
The decision has forced the EU to reform its sugar industry by cutting the price of sugar in the EU market by 37 percent, forcing its farmers to reduce their production.
Responding to a question regarding the collapse of the WTO because of its members bypassing the multilateral institution and concluding regional and bilateral trade deals, Correa said: "I don't think the multilateral system will collapse as result of separate free trade agreements.
The free trade agreements are not a threat to the system, but have to be integrated into the system and also be harmonised."
Correa said the future of the WTO depended on the Hong Kong round of trade negotiations, which are kicking off late this year.
"I believe the organisation will maintain its central role in the global trading system and that it will be able to enforce rules and generate trade flows among its members," Correa said.
|
|
