Hong Kong has relied on and benefited from free trade to develop into a regional and international business hub, Chief Executive Donald Tsang told the inaugural session of the Sixth WTO Ministerial Conference yesterday.
Welcoming the delegates to the conference, he urged them to spend some time afterwards in Hong Kong to get a feel for the great city, which former US President Bill Clinton described as a showcase for global interdependence and its benefits.
Secretary for Commerce, Industry and Technology John Tsang said that as the conference chairman, he would play the role of an honest broker and would spare no effort to bridge the differences among the WTO member economies.
Hong Kong is a free and open society accustomed to lively debates and happy to embrace different views, he said, and the government has sought to provide the best possible environment for the conference.
In his inaugural speech, Donald Tsang said the WTO delegates under one roof in Hong Kong this week had the once-in-a-generation chance to enhance the existing international environment.
The conference will help wealth-building across the world on a broader and deeper scale, the CE said, and most important of all, help alleviate poverty for millions of people across the world.
Stressing the importance of the WTO for Hong Kong, Donald Tsang said: "As a small, externally oriented economy with no natural resources other than a magnificent deep-water port, Hong Kong has relied on free trade and an entrepreneurial and hard-working population to transform this once sleepy fishing village into an international and regional business hub.
"As a free trader, our support for multilateral trading goes back a long way, first as a part of the General Agreement on Tariffs and Trade in 1986 and a founding member of WTO in 1995. Our membership did not change after reunification with the motherland in 1997."
Trade liberalization and economic growth is a permanent goal for all, he said, concluding his speech by reminding that "we are at an historic juncture. While I acknowledge in some parts of the world the goal is seen as a threat rather than an opportunity, we must vigorously defend the integrity and effectiveness of the multilateral trading system."
Complex Doha agenda
John Tsang said the Doha Development Agenda negotiations were arguably the most complex and difficult in the history of the world trade body, for they not only took into consideration agricultural produce, but also the reduction and elimination of agricultural subsidies.
"What we are seeking to do is help developing economies integrate more thoroughly into the global trading system so that they too can reap the benefits of free and open trade," he told the delegates.
"Poverty reduction is a priority objective for us all. Trade can stimulate economic growth that is necessary to boost incomes and provide access to food through imports. But we must not neglect the immediate pains of adjustment when protective arrangements come to an end and comfortable subsidies are removed. We should introduce reforms in an orderly manner, compatible with the particular circumstances of individual economies."
Not one to underestimate the magnitude of the difficult task ahead, he said the 44-page draft Ministerial Declaration, agreed on shortly before the conference, was the outcome of a transparent and inclusive process based entirely on members' contributions. "We can see clearly where convergences lie, and where timelines must be set in order to give direction to the process after Hong Kong," he said.
The conference has just four full days or about 100 working hours of serious negotiations.
"We must use this time wisely. The draft text provides a foundation; our task must be built on it. We must agree on a road map for work in 2006. I particularly wish to work with you to secure as many tangible results (as possible) at this meeting," he said.
Democratic but slow
WTO Director-General Pascal Lamy began his speech by conceding that the global trade body's decision-making process was democratic but slow. It's slow because all stakeholders, powerful or weak, rich or poor, have the right to speak, agree and disagree. "Reaching agreements in the WTO is difficult because it's done bottom-up."
Quoting a Chinese proverb meaning "if you don't go into the cave of the tiger, how will you get its cub?" (in other words no venture, no gain), Lamy said taking a bit of risk, a calculated risk, would mean a chance for improved rules for a level playing field, for free and fair trade.
In short, this is the best chance for development, the backbone of the Doha round.
Half way through his speech, about 20 members of US, European and African non-government organizations (NGOs) protested against globalization from the rear of the hall. They raised a big red banner, chanting slogans such as "WTO kills jobs, farmers, people and the environment. Stand by your people". The protest lasted more than 15 minutes but Lamy continued with his speech.
Supachai: Protectionism erodes
UN Conference on Trade and Development Secretary-General Supachai Panitchpakdi said subsidies, tariffs and protectionist policies enjoy some backing in the US and Europe, eroding support for a truly open and global trading system.
Speaking on behalf of UN Secretary-General Kofi Annan, he said trade liberalization had adjustment costs in rich countries, too. But overcoming this political hurdle is essential for the Doha Round to succeed.
"I urge rich countries to make the necessary investment in poor countries' markets. This is not just a question of commercial opportunities. It's about creating the broad environment that is needed to improve the human condition," he said.
About 3,500 guests attended the inaugural session of the conference that ends on Sunday. Among them were 2,800 delegates, 200 NGO representatives and 500 local and overseas journalists.
John Tsang hosted a ministerial lunch for the heads of delegations, trade ministers and consul generals before the inaugural session. The guests were treated to live performances of Chinese music, calligraphy and the art of tea-making.
(China Daily December 14, 2005)
