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Manufacturers, Exporters, Wholesalers - Global trade starts here.
 
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    It beats aid
YOU NUO
2005-12-12 06:49

Despite all the predictions of the possible outcome, or lack thereof, at the forthcoming WTO ministerial meeting in Hong Kong, global trade talks will have to continue.

At least there is sincerity in all governments' approach to the event, scheduled from December 13 to 18, which should be enough to ensure talks continue to seek common goals.

And more than just sincerity, there is focus. People know the most crucial issue at present is the trade in agricultural products. People also know that for the WTO to retain responsobility, there must be progress in this area.

Nor does there seem to be a lack of rational thinking. There have been plenty of talks on the importance of farm trade. Although it reportedly accounts for only 10 per cent of global commerce, it accounts for nearly all the trading resources of the poorer developing economies. Once they are provided with greater trade access, their entire economic landscape is likely to change, and generate more opportunities. Trade rather than aid is the best way to reduce poverty, and ensure schooling and health care.

An issue that affects the interests of only a small sector in developed countries can affect the entire economy of a developing country. The main difficulty preventing all developed countries from agreeing on the farm trade terms is only one of their domestic politics.

The only question now is how developed countries can look beyond their immediate gains and losses, and manage to balance their farming sectors' interests with the WTO's mission. They need not just to accept the rational, but to make it work.

Protected sectoral interests sap one's own competitiveness and, as the world has seen repeatedly, also lead to an unsafe world. Despite the obstacles that for the time being seem almost insurmountable, the global trade network must expand whether in Hong Kong this year or elsewhere at some other time. Just as Paul Wolfowitz, president of the World Bank, said last week: "if Doha fails, it is the world's poor...who will suffer the most."

China has expressed full support for free farm trade, although it still has a large agricultural sector. There are 600 million or more people living in the countryside half the entire population and many of them still depend on their small plots for all their income.

Since China's accession to the WTO, the pressure of competition from foreign farm products has been on the increase, if not threatening.

At times, some critics have lamented the government's failure to shelter the country's agricultural market. Of course, they fail to see the new opportunities arising from the non-farm sectors, especially export-oriented manufacturing, as a result of China's new WTO status.

But as one of the countries that have gained most from participating in the world market, China is not trying to make a special-case claim. It is determined to stand behind the WTO goals.

It may be painful for any traditional or once-protected industry to adjust to free trade. But since it is bound to happen, and no one in the world can offer an alternative, what is the point of prolonging the pain rather than shortening it?

(China Daily 12/12/2005 page1)

 
                 

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