Statement by Hon'ble Buddhi Man Tamang, Minister for Industry, Commerce and Supplies and the Head of Delegation of Nepal to the Sixth Ministerial Conference of WTO in Hong Kong on December 17, 2005

As we welcome Saudi Arabia and Tonga as new members in the family of World Trade Organization, it gives us satisfaction to note that WTO has been moving ahead towards becoming a more inclusive organization. We congratulate our new members.

Mr. Chairman,

Nepal looks to the World Trade Organization not only as a vehicle for promoting global trade but also as an institution that ensures fair, just and inclusive trading regime where the concerns and aspirations of all the countries, small and big, rich and poor are well heard and listened. We expect that a fair trading system would help us bring about a structural change in our economy with the promotion of trade which would stimulate growth and help us reduce poverty in our midst. We are still waiting for that development dividend from the successful conclusion of this round. For us, that would be a true measure of the development dimension, which would be able to correct the deficit in the existing international trading structure.

It is a fact that the least developed countries continue to be marginalized from the mainstream of world economy with a declining share in world trade, investment and output. It should be a matter of great concern to all of us. In today’s globalized world, interdependence and inter-connectivity have intensified in an unprecedented manner. We cannot remain aloof from each other. If gains are to be reaped from the multilateral trading system in an equitable manner, there is no denying that the international rules guiding them should incorporate development-friendly provisions and rules which are conducive to promote the share of trade of vulnerable countries thereby reversing the trend of marginalization of the least developed countries. We would like to be part of that globalizing trend, which is inclusive and also caters to the interests of the needy and the poor.

Low level of economic development, structural bottlenecks and grinding poverty has seriously constrained the trading and development capabilities of the LDCs. Many of us are in the very early stage of industrial development process. Despite these inherent impediments and adjustment pains, it must be appreciated that we want to be integrated into the international trading regime. This is so because we are looking at the long-term gains. Therefore, as collectively expressed by the LDCs during their Ministerial meeting in Livingstone, what we are looking for from the international community is not merely the recognition of the fact of our marginalisation, but a meaningful, substantial and substantive market access opportunities for our products. My delegation would like to reiterate our long standing objective as agreed in the Doha Work Programme that all the LDCs should be provided with a binding commitment to the duty-free and quota-free market access for all products with simple and flexible rules of origin. That is the least that is expected from the development round though it is not sufficient. It is well known that many of the LDCs would not be able to compete in the international market because of their supply side constraints. For a country like Nepal the transaction cost is even higher with its natural handicap as a land locked country. Therefore we call for a precise, special and differential treatment due to an LDC, which would help to create a level playing field for us to compete at the global market. Similarly, commitments should be made on the movement of semi-skilled and unskilled labour under mode 4 to give effect to the LDC modalities. It is not understandable to us that there are restrictions and lack of access in the areas where there is a comparative advantage of the countries like ours, even when we have opened many of our services sectors.

In order to help promote supply side capabilities, we would like to see a strong mechanism and substantially enhanced resources for the Integrated Framework to be effective on the ground. We also appreciate the recent initiatives of Aid for Trade and hope the clear involvement of the recipient countries from the conceptual stage for the establishment of their effective operational modalities. Additionality, concretization and multiyear resource allocations are key to the success of such a program. In this context we appreciate the recent announcement of various programs by many developed countries from this forum here and would appreciate receiving more details about their full modalities. We are all aware that it would play a complementary role to the market access opportunities.

But let me once again reiterate here that the effective market access opportunities and strengthening supply side capabilities are twin pillars upon which rests the meaningful integration of the LDCs in the global trading system. Without both of them, we cannot think of any sustainable basis of hope and promise for the least developed countries in this era of cutthroat competition. In our rush, we should not lose sight of the larger picture of the principle of equity, fairness and social responsibility. Gains must be assured to all to make the international trading regime sustainable and meaningful.

We would like to see a balanced and ambitious outcome of this ministerial meeting with clarity and precision in its development contents. We hope that we go back from Hong Kong with a clear and forward looking outcome that is both substantial and substantive, in order to give a strong signal of hope to our people back home. The hope is that the current form of trade liberalization would finally take into account the fundamental principles of equity and inclusiveness. It is time we make sure that WTO fully takes into account the interests and concerns of even the most vulnerable group among its members. Thank you.