Statement
by H.E. Archbishop Silvano M. Tomasi, Apostolic Nuncio, Permanent Observer of
the Holy See to the United Nations and Other International Organizations in Geneva
at
the 8th Session of
the
Ministerial Conference of the World Trade Organization
Mr Chairman,
1.
The Holy See Delegation extends its
congratulations to the Russian Federation ,
Montenegro , Samoa and Vanuatu
Mr Chairman,
2.
The eighth Ministerial Conference of the WTO
takes place at unprecedented times for the world economy. The recovery from the
financial crisis of 2008 lasted only few months and there are already clear
signs of a slowing down of economic activity in advanced and emerging
economies. If these signs are confirmed, the world risks to plunge in a double
dip recession which could entail prolonged periods of stagnation and high
unemployment.
3.
The economic situation in advanced economies and
in Europe is reason for particular concern.
The debt crisis is forcing several European countries to implement tough fiscal
policies, with the risk of worsening the economic cycle. In these cases the
weakest are penalised the most, in particular young adults, who experience an
unemployment rate at the highest level in decades, and the poor confronted with
a strong increase in inequality in all countries.
4.
Evidence from the recent financial crisis has
shown us that trade has been an effective tool in helping a rapid recovery. Now
the primary challenge WTO faces is to sustain this approach and discourage
countries to give in to the temptation of protectionism that promises to
deliver some illusory short-run benefits while preventing more conspicuous long-term
gains.
5.
An additional burden could be imposed on the
shoulders of the young and of the poor if they are deprived of such an effective tool for improving the
economy as an open trade.
6.
In this context, the Delegation of the Holy See would
like to recall the ethical foundation of trade. Ethics is not an external element of the
economy and the economy does not have a future if it does not take into account
the ethical dimension. The economy functions not only through self-regulation
of the market and much less through agreements limited to reconciling the
interests of the most powerful countries, but it needs also to take into
account that it functions at the service of man. The production of resources
and goods and their strategic management require a sense of ethics and of the common
good since without them the economy becomes naïve, cynical and destined to failure. In fact, every
economic decision has a moral consequence. The economy needs an ethical
perspective centered on the person and able to offer sure points of reference to
new generations. Economic and commercial activities oriented to development
should be able to reduce poverty effectively and to alleviate the suffering of
the most unprotected. On several occasions the Holy See has called attention to
the urgency of a new and profound reflection on the meaning and objectives of
the economy and of a far-sighted revision of the global financial and
commercial architecture in order to correct problems of functioning and
distortions. This revision of international economic rules must be integrated
in the framework of a new global model of development. In reality, it is required
by the planet's ecological state of health, and, above all, by the cultural and
moral crisis of man, and the symptoms have been evident everywhere for a long
time. As Pope Benedict XVI states: “taking care of the needy means not just giving bread to the
hungry, but also letting yourself ponder the causes why the other person
is hungry.” Only with
the acceptance of effective rules that
protect the management of the economy in an ever more interdependent world, our
efforts will be directed toward the pursuit of the common good.
7.
Despite the seriousness of the general economic
condition and despite the strong need for improving trade, we observe that
trade negotiations are at an impasse. This stalemate has lasted for several
years and there is no sign that the current round of negotiations will be
concluded in the near future. There is a concrete risk that the entire Doha
Development Round may end in failure jeopardising all the efforts devoted to
the promotion of development through trade.
8.
However, looking at the work conducted during the
last years, as the "Easter package" clearly shows. significant
progress has been made in several areas, and an agreement can be within reach.
In other critical areas such as agriculture, positions are distant and a
solution does not seem to be close.
9.
During the current year serious attempts have
been conducted in order to reach an agreement on a smaller set of issues - the
so called LDC plus package - in order to
take a step forward toward the implementation of the Doha Development Agenda. Despite
the failure of this new attempt, the Delegation of the Holy See supports the adoption
of a pragmatic approach and the consolidation of the progress made so far. This
option ensures that countries will reap the trade liberalisation benefits that,
in some areas, remain significant. If the opportunity is missed, the poor will
end up paying the highest cost.
10.
The success of the Aid-for-Trade
initiative gives evidence of the potential benefits deriving from trade and, on
the other hand, of the cost of inaction. In fact, lack of decision seems to
turn into an effective tool through which several countries are pursuing
protectionist policies.
11.
Another positive achievement is given by the
group of countries whose accession has so significantly advance that they are
at the threshold of completion. The creation of an "Accessions Commitments
Database" (ACDB) allows Members, acceding governments and the
Secretariat, to rapidly and efficiently retrieve information on
"commitment language", for all completed accessions under Article XII
of the Marrakesh Agreement. Ensuring transparency
and predictability in the accession process remains a key
priority for the Membership and the Secretariat. In this sense my
Delegation, appreciating all the efforts made by the Director General and the
Secretariat, underlines the need for enhanced technical assistance
and capacity building to help LDCs to complete their accession process,
implement their commitments and become integrated into the multilateral trading
system.
12.
One area where progress will deliver significant
and tangible benefits to poor and developing countries is that of the Rules of
Origin (ROO). Negotiations to harmonise non preferential rules of origin were
launched sixteen year ago, but an agreement has not been reached so far. A solution
to this problem will determine a significant step towards a more stable clear
and predictable set of rules for trade talks. Transparency and predictability
are particularly valuable for developing countries which are much penalised by
the complexity of the current set of rules.
13.
Preferential Rules of Origin
(ROO) should be amended in favour of poor countries. Often for these economies,
the potential benefits deriving from the margin of preferences are not captured
because of the presence of strict ROO. In practice ROO go against the
realisation of comparative advantages since poor countries tend to specialise
in very simple activities characterised by low added value. If advanced
economies wish to use trade as an effective tool to lift countries out of
poverty they need to recognise that giving poorer countries a margin of
preference is not enough without rules of origin that allow these economies to
really exploit the preferences.
14.
Mr. Chairman,
after years of standstill, the Ministerial Conference provides an opportunity
to start taking tangible steps toward the implementation of the Doha Development
Agenda. WTO members must "think big" in order to
conclude a broad deal, otherwise the risk of the marginalisation of the
multilateral trading system will become real. A positive conclusion of the Round
will represent a win-win
situation: a chance for
developed countries to strengthen the
confidence in the multilateral trading system, to guard
against the rise of protectionism, and to boost
the global economy while reducing its asymmetries; a chance for newly emerging economies
to lock in those benefits permanently while avoiding new trade arrangements
that may well exclude them; last but not
least, a chance for the poorest developing countries to realize the gains of
the Doha Development Agenda promised long ago.
15.
Mr. Chairman,
To sum up, the human family has not
been created to serve the market, but the market, to serve the human family. If this principle is respected, even
though times are difficult, fear will give way to hope.
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