Below is a 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. Geneva, 15-17 December 2011
Mr Chairman,
The
Holy See Delegation extends its congratulations to the Russian Federation, Montenegro,
Samoa and Vanuatu for their accession to the World Trade Organization.
Mr
Chairman,
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.