News

News

On the sidelines of the WTO show
Duruthu Edirimuni reporting from Hong Kong
Trade with US favours Lanka
The U.S. trade deficit with Sri Lanka was US$ 1.7 billion in 2003, an increase of US$ 14 million from 2002. According to a WTO Secretariat report on Sri Lanka's trade policies and practices, reforms have gradually shifted towards broad-based economic liberalisation. Equity shares of up to 40 per cent are generally given automatic approval and investors receive national treatment.

Sri Lanka is currently the 104th largest export market for U.S. goods, while the United States is Sri Lanka's largest export market and the destination for US$ 1.8 billion (or 38 percent) of exports, which are predominantly garments.
Sri Lanka's garment industry is heavily dependent on the United States with 63 percent of all garment exports bound for the United States.

New Third World Alliance at WTO
The birth of a powerful new alliance of developing countries — representing four fifths of the world’s population — at the WTO trade talks in Hong Kong last Friday, is seen as a force that could challenge the rich countries at future trade talks.

Trade analysts said this could shift the balance of power at the WTO making it much harder for rich countries to pressure poor countries into accepting unfair trade rules.

The alliance, identified as G110, represents the biggest group of developing countries in trade talks so far and includes countries such as India, Brazil, Kenya and Malaysia and incorporates the G20, G33 and G90 alliances.
These countries hope to find common ground on key issues such as agriculture, services and industrial access.

"If it comes together, this new alliance could mark a radical shake-up at the WTO. It will be much harder for developed countries to push through their demands in these talks if developing countries unite and champion the rights ofthe poor people.

“This group must fight for protection for poor farmers from cheap foreign goods and the safeguarding of jobs, as well as an end to export subsidies and to the privatisation of basic services," said Adriano Campolina Soares, Director of US NGO, ActionAid Americas.

The group is pushing for an early end for all trade distorting subsidies and refusing to accept any privatisation of basic services such as water, education and health.

"Most poor countries have now come together in these trade talks and it could mark a fundamental shift in power at the WTO. Rich countries will find it harder to bully poor countries into signing trade deals that only benefit the interests of big business and multinational corporations. If there is a hope to combat poverty in these talks it rests with this new alliance," Soares told The Sunday Times.

"Poor countries must stand together to resist EU and US arm-twisting and divide-and-rule tactics. The days of rich countries being able to dominate trade talks look as though they are numbered," Aftab Alam Khan, head of ActionAid's trade justice campaign said.

"Rich countries must realise the game has changed. It is important that they respect this new alliance and don't try to split it as they have done
with groups in the past. It is time for them to listen to this strong united voice and not fight against it."

WTO uses AIDS patients
The amendment to the TRIPS-agreement hailed by WTO members has failed to ensure access to affordable medicines, according to international AIDS organisations.

The Global Network of People living with HIV/AIDS said that by making permanent the waiver adopted in August, 2003, WTO is blocking access to affordable medicines for countries with little or no production capacity.
"These countries will be denied the possibility of importing generic drugs from countries with capacity and by removing incentives for manufacturers, generic production of recent and future drugs (including the most needed second-line AIDS treatment) will be strongly discouraged," said Mauro Guarinieri of the Global Network.

He said that health experts worldwide have denounced the TRIPS amendment as a bad deal, which will cripple an effective response to public health needs. "How can a system that requires order-by-order, drug-by-drug, country-by-country procedures be seen as an improvement?"

Top

Back to News