Media release

5 June 2004 -  MVT41/2004

Developing Countries to Gain From Reducing Trade Barriers

Developing countries have an opportunity to capitalise on trade liberalisation and engage more fully in the current round of multilateral negotiations, Trade Minister Mark Vaile said today at the APEC Trade Minister's meeting in Pucón, Chile.

Mr Vaile launched South-South Trade: Winning from Liberalisation, a new report from the Department of Foreign Affairs and Trade's Economic Analytical Unit.

"Already we have seen developing economies starting to liberalise their trade regimes, with average tariffs of developing countries now around one third of their levels in 1983," Mr Vaile said.

"This has underpinned strong developing country trade growth. Developing countries now account for around one-third of global trade and merchandise trade between developing countries has grown twice as fast as world trade over the past 10 years.

"There has been a major shift to trade in manufactures between developing countries, increasing the potential for further deepening of South-South trade.   However, developing country tariff barriers remain significantly higher on average than those of developed countries and around 70 per cent of the tariffs faced by developing country exporters are applied by other developing countries.   So, considerable gains can still be made through further trade liberalisation."

Mr Vaile said developing countries had much to gain from a commitment to reducing their own trade barriers, especially in terms of the increased South-South trade that greater liberalisation would bring.

"The Doha Development Round offers developing countries the opportunity to integrate more fully into the global trading system, buttress their economic growth and enhance their competitiveness," Mr Vaile said.

"I will encourage APEC Ministers to recognise the benefits that trade liberalisation brings to developing countries in order to promote sustainable economic development.   This is a powerful message to send to Geneva, especially at this time as members strive to reach agreement on a negotiating framework package."

Copies of the report are available from the Department: phone 6261 3114 or e-mail jane.monico@dfat.gov.au.

Media contact:  Matthew Doman (Canberra) +612 6277 7420, Nicole Guihot (departmental) on 02 6261 1555