RP, 10 developing nations form new trade bloc

HONG KONG – Eleven developing countries including the Philippines are forming a new bloc that will push for greater flexibilities for poor countries negotiating on market access for non-agricultural products. These countries, aside from the Philippines include Argentina, Bolivarian Republic of Venezuela, Brazil, China, Egypt, India, Indonesia, Namibia, Pakistan and South Africa.

This group wants concessions that will enable them to expand their access to markets of the rich countries for their non-agricultural products.

At the same time, they are seeking a longer implementation period for tariff reductions to help their domestic industries cope with the impact of further trade liberalization.

The group of 11 developing countries said they will demand that they be given the flexibility to impose lesser tariff cuts for at least 10 percent of all their non-agricultural tariff lines and the exemption from any tariff cut or binding for at least five percent of all non-agricultural tariff lines.

These provisions being asked are already incorporated in the July 2004 framework established by the WTO negotiators after taking stock of the special needs and interests of developing countries and to provide these nations policy space to address their developmental concerns.

In a joint communiqué addressed previously to the WTO, these countries said the bloc is being established to increase developing nations‚ leverage on non-agricultural market access (NAMA) talks in view of attempts by developed countries to link agricultural negotiations with that of NAMA.

The European Union (EU) for one, has been insisting that it will only pursue its proposals for reducing its trade-distorting support and export subsidies in agriculture if developing nations agree to proposed further tariff reductions and increased greater market access for non-agricultural sectors that include manufacturing products, fuels, mining products, fish and fishery products and forestry products, among others.

"We are opposing attempts being made to reinterpret this agreement by further establishing further conditionalities and changing the balance of the agreement that was reached by all WTO members in the July 2004 framework agreement. We view the numbers currently contained within the brackets of paragraph eight as constituting the minimum percentages required by developing countries," their statement read.

They added that developing countries should have the right to adjust their numbers upwards to enable their economies to manage the adjustment of sensitive sectors and prevent the social disruption caused by job losses and closure of enterprises that would result from further liberalization.

Manuel Teehankee, the Philippines’ permanent representative to the WTO, said the group submitted their position to John Tsang, chairman of the WTO ministerial conference.

"The group’s stand is not to agree to any formula cuts for non-agricultural products if the concessions being asked are not granted but they also want that progress be made on NAMA negotiations," said Teehankee.

He said for the Philippines, the country will push for the exemption of at least five percent of its non-agricultural tariff lines from more tariff cuts or binding.

Several sectors such as the cement, steel and fisheries industries are opposing further tariff cuts because the current applied rates are already quite low and will result in disastrous consequences.