This story was filed in Bernama, the Malaysian news agency, at 1640H on 16 September 2003 and was taken from here.

Developed Countries Selfish And Undemocratic, Says Rafidah
From Mikhail Raj Abdullah

CANCUN (Mexico), Sept 16 (Bernama) - Developed countries which retaliate against developing countries following the failure to reach an accord on global trade talks here are both selfish and undemocratic, Minister of International Trade and Industry, Datuk Seri Rafidah Aziz, said here on Monday.

She said: “It shows very glaringly the irresponsible attitude of these countries and the undemocratic approach they are taking towards trade negotiations in the World Trade Organization (WTO) which are supposed to be based on consensus.

“These countries were obviously expecting everyone to just blindly adopt their agenda and give in to their every demand,” she told Malaysian journalists prior to her departure for home after attending the five-day talks which failed to reach a consensus.

“Should any country decide to retaliate against any other trading partner simply because it didn’t see eye to eye during the negotiations in Cancun, countries should unite to ensure the WTO doesn’t allow this to happen.

“We can refer whatever provisions (others take) to WTO rules,” Rafidah said.

The talks ended abruptly after developing countries refused to agree to launch negotiations on modalities on four new issues as they wanted clarification on how these issues would impact their domestic economies.

Developed countries such as the United States, European Union (EU) and Japan, were pushing to launch negotiations for multilateral on investment, competition policy, trade facilitation and transparency in government procurement.

The majors made things difficult for developing countries as they wanted the four new issues to be taken as a single undertaking and link it to earlier agreed negotiations on agriculture, non-agricultural products and services.

On retaliatory statements made after the meeting by the majors especially the US Senate Committee on Finance which oversees international trade that they would take note of countries which supported the new issues and those which did not in formulating free trade agreements, the minister said: “If that is the attitude, then the US will have to go against the whole world because the rejection of negotiations on the new issues was unanimous among developing countries.

“They have to fight against the rest of the world. They are already fighting with the EU and Japan over agriculture, fighting against Cairns Group of Agriculture Countries also on agriculture, so they stand alone if this is their attitude,” said Rafidah.

“You cannot be arrogant simply because you assume yourself to be an economic power (as) economic power is really true when you understand your role in (leading) the global community.”

“You are a power only if you can do that (otherwise) its just a power you ascribe to yourself,” the minister said.

“Of course the world plays up to that hype (but) how can you be a superpower when your deficit is in the trillions.

Also, “your currency is artificially propped up through demands for other currencies to be revalued” or “when you want to make your currency strong by asking the yen to be revalued upwards or the Renmimbi to be devalued.

“Where you find the odds against you, you force others to take action,” said Rafidah.

She said “Why doesn’t the US devalue the greenback and let other people’s currency stay as it should be rather than force other people’s currencies to go up and down to suit its situation, that doesn’t reflect real economic power.”

Asked on China’s position in the WTO and suggestions that it strengthened the position of developing countries when it threw its weight behind them, she said: “China, I am sure, will assume its role proactively as a newly emerging global economic power,” she said.

As for the talks failing and the impact on Malaysia, she said that “there is no big deal.”

“I already expected it to happen as early as last year because of the very adamant positions of major economies not wanting to listen to the problems of developing countries on the new issues,” she said.

“As I said before, it was going to be an expensive holiday by the sea.”

“But the talks will continue in Geneva in the middle of December (at the officials level) until an appropriate time for the next ministerial to revisit this agenda” she said.

“Lets see, at that time, how many positions have changed, (then) we will make the decisions accordingly,” the minister said.
– BERNAMA

  

Posted on September 18th, 2003 by jl
Filed under: ASEAN, Developmental Issues, Intl Trade, WTO