Statement for Australia at the Twelfth Meeting of the United Nations Conference on Trade and Development

Mr Chairman, Excellencies and Distinguished Colleagues

I thank Ghana for hosting the Twelfth session of the United Nations Conference on Trade and Development. I thank Secretary-General Supachai for his strong leadership of UNCTAD.

Mr Chairman

UNCTAD came together because the global community saw the importance of trade to the pursuit of economic development and of ensuring that the benefits that flow from it are shared across humanity. It is an ambition that the Australian Government shares and to which it attaches the highest importance.

My attendance at today’s meeting as a representative of the new Australian Government underlines our enhanced commitment to the success of UNCTAD. We believe integrating developing countries into the global economy is fundamental to the pursuit of sustainable development..

When we last came together, at UNCTAD XI in Sao Paulo, the “Spirit of Sao Paulo Declaration” captured our joint commitment to the eradication of poverty and hunger, and the reform of the global trading system.

Today I reaffirm Australia’s commitment to this task, and outline the challenges we believe need to be tackled in order to achieve this worthy goal.

Mr Chairman

Development strategies must be about lasting reforms that ensure the benefits of global economic growth are shared by the entire world population. Trade reform remains a crucial part of this. Distortions in global markets, particularly agriculture – on which the developing world is so dependent – remain, and their consequences can have serious implications for developing countries

Australia is a strong advocate of trade reform, and as Chair of the Cairns Group, we are at the forefront of efforts to secure a successful conclusion to the World Trade Organization’s Doha Round negotiations. We are working hard for an outcome – that delivers gains in agriculture, industrial products and services – this year.

Trade reform is also necessary for food security, but alone cannot guarantee it. Improvements in agricultural productivity, coupled with policies which reduce poverty and improve food distribution, will do more to improve food security than subsidies or trade restrictive practices.

Mr Chairman

Least Developed Countries often have the greatest difficulty benefiting from trade liberalisation. These countries are typically dependent on traditional commodity exports and are hurt by protection, both at home and abroad.

Recognising these challenges, Australia has provided duty and quota free access for all products from all LDCs since 2003. Australia’s openness to exports from LDCs is comprehensive and unqualified. It does not exclude sensitive sectors or provide any phasing-in arrangements.

We urge other members of the international community to offer comprehensive and unqualified duty and quota free access to LDCs This includes not only developed countries but other middle- and high-income countries.

After all, South-South trade – trade between developing countries– has, according to the World Bank, the potential to deliver gains to developing countries equal to those of North-South liberalisation.

We recognise that LDCs also suffer supply-side constraints that hinder their ability to take advantage of market openings. Countries such as Australia can help development partners by supporting governments as they pursue those reforms that improve productivity and strengthen industries’ ability to compete in the global markets.

Australia will provide over A$300 million this year in Aid for Trade, and is committed to helping partners overcome barriers behind, at and beyond the border that constrain their ability to benefit from global trade.

Mr Chairman

Trade liberalisation and economic growth are important, but they are not the only factors in promoting sustainable development. Development is not simply about boosting national Gross Domestic Product – to be meaningful, it must help people live richer, healthier and more rewarding lives.

Because ultimately development is not about economics – it is about transforming the lives of people.

For growth to be broad-based and inclusive, it must draw on the productive capacity of all members of society, including women. Ensuring both women and men are educated, healthy and have the opportunity to participate in economic and civil society is fundamental to development.

Developing country governments also have a responsibility to promote an enabling environment for development through sound policies and institutions that support trade, investment and business activity, and the opportunities for employment that these bring.

Mr Chairman

Many developing countries are benefiting from trade liberalisation and globalisation. But there are others who still face challenges in achieving sustainable development outcomes. Some of the most persistent challenges are those faced by small and remote economies, such as the islands of the South Pacific.

Many of these countries have made significant progress reforming their economies and creating an enabling environment for business. And yet, they continue to find it difficult to attract foreign investment, so important for knowledge transfer and the development of productive industries. They continue to face barriers to trade from developed and from other developing countries.

Many Pacific Island countries face acute development challenges and few are on track to meet any of their Millennium Development Goals. None are on track to meet all of them.

Australia is increasing its efforts to assist these countries achieve the Millennium Development Goals. The Australian Government has committed to deep and enduring partnerships with Pacific island countries through Pacific Partnerships for Development, which will see us work cooperatively to help small and remote Pacific island countries towards their Millennium Development Goals and to achieve broad-based, sustainable, inclusive economic growth.

Mr Chairman

We ask UNCTAD and the global community to join with Australia in our commitment to ensuring small and remote countries manage the challenges and benefit more significantly from globalisation.

Australia asks you to join with us in our commitment to the successful conclusion of the WTO Doha Round this year. Securing a Doha deal, particularly a deal that significantly improves agricultural market access and dramatically reduces subsidies, will improve the global trading environment and help stimulate the global economy.

The world needs the signal of confidence that a successful conclusion of the Doha round would bring.

And we ask you to join us in our commitment to seeing real progress made towards the Millennium Development Goals by those countries faced with the greatest challenges.

Thank you.