OECD Head Says Poor Countries Have Most to Gain From New Trade Round
The Secretary General of the Organisation for Economic Cooperation and Development, Donald Johnston told the French newspaper *** Liberation: *** "launching a new round of negotiations is primarily in the interest of developing countries."
Johnston said that it was "logical" that some developing countries had expressed reluctance toward a new round of multilateral trade talks, which is to be held in November in Qatar.
Malaysia, Pakistan, India and other poor countries have expressed concern about a new round of World Trade Organization (WTO) talks, saying they benefited little from agreements reached at the Uruguay round of talks under the general agreement on tariffs and trade, now the (WTO), and had to pay exorbitant costs to adapt their trade structure to those accords.
Johnston acknowledged that companies from rich countires had penetrated the markets of developing countries but that developed coluntries had limited imports from poor countires in key sectors such as agriculture and textile manufacturing.
Countries in the southern hemisphere were the most reticent regarding a new round of talks, but "a new cycle might bring about reciprocity", he said.
"Protectionist reflexes must be left behind: The policies of industrialized countries aim at protecting jobs, industrial groups (try) to conserve their sector without competition from the south."
Johnston said that some progess had been made in trade discussions to limit the voice of large multinational companies, which were the main beneficiaries of the last round of trade talks. He noted that such companies were largely absent during talks held in seattle.
Three months before the next high-level meetings of the WTO in November, opinions remain sharply divided between developed and developing countires, especially on issues such as agriculture, textile manufacturing and anti-dumping.
The OECD comprises the 30 richest countries in the world.