Many developing countries, especially
those classified by United Nations as the Least Developed Countries
(LDCs), fail to compete in international markets for various reasons
including unfair trading rules.
Insufficient
investment resources coupled with poor technology are among the hurdles
haunting developing nations to enhance the capacity of the manufacturing
sector to produce high quality goods which could compete in the world
market.
Despite the setbacks, Tanzania is said
to have a better chance of securing unique share to participate
competitively in the global trade provided the right development course
of action is in place.
This was revealed over the weekend by the
candidate for the post of World Trade Organisation (WTO) Director
General, Mr Roberto Azevedo, at a news conference in Dar es Salaam.
Mr Azevedo had earlier met the Minister
for Foreign Affairs and International Co-operation, Mr Bernard Membe, in
a tour aimed at presenting to Tanzania his candidature for the top job
in global trading watchdog.
“Most developing countries including
Tanzania possess vast resources which could be transformed into valuable
goods and services with competitive nature in the world markets,” he
said in an exclusive interview with the ‘Daily News’.
Tanzania, he said, has extensive
opportunities of developing tourism, agricultural and mining sectors
which could place the country in a distinctive position of participating
competitively in the global trade.
WTO is an organisation that intends
to supervise and liberalise international trade. The organization
officially commenced on January 1, 1995 under the Marrakech Agreement,
replacing the General Agreement on Tariffs and Trade (GATT), which
commenced in 1948.
Tanzania is among WTO member countries.
The organisation deals with regulation of trade between participating
countries; provides a framework for negotiating and formalising trade
agreements, and a dispute resolution process aimed at enforcing
participants’ adherence to WTO agreements, which are signed by
representatives of member governments and ratified by their parliaments.
Most of the issues that the WTO focuses
on derive from previous trade negotiations, especially from the Uruguay
Round (1986 - 1994).
The organization is attempting to complete
negotiations on the Doha Development Round, which was launched in 2001
with an explicit focus on addressing the needs of developing countries.
As of June 2012, the future of the Doha Round remains uncertain: the
work programme lists 21 subjects in which the original deadline of
January 1, 2005 was missed, and the round is still incomplete.
The conflict between free trade on
industrial goods and services but retention of protectionism on farm
subsidies to domestic agricultural sector (requested by developed
countries) and the substantiation of the international liberalisation of
fair trade on agricultural products (requested by developing countries)
remain the major obstacles.
These points of contention have hindered
any progress to launch new WTO negotiations beyond the Doha Development
Round.
As a result of this impasse, there has
been an increasing number of bilateral free trade agreements signed. As
of July 2012, there are various negotiation groups in the WTO system for
the current agricultural trade negotiation which is in the condition of
stalemate.
In the annual World Economic Forum (WEF) competitiveness
study for travel and tourism (2011), the country scores a second
position, after Brazil, in the field of natural resources, but out of
139 countries studied, Tanzania’s overall position, however, dropped 12
places from 98 to 110.
Lacking the right course of action which
could put clear direction of the development agenda is among factors
haunting small economies apart from possessing abundant resources.
“It
is high time for developing nations to increase investments in technical
expertise and infrastructure which are necessary tools for setting
development motion to be reflected into stable economic growth and
improved living standards,” he added.
The WTO DG candidate expressed gratitude
for the positive response and support for his move to vie for the post.
The selection process will conclude with a decision by the General
Council no later than May 31, this year where nine candidates will
contest for the WTO post.
Apart from Mr Azevedo from Brazil, others are
Mr Alan John Kwadwo Kyerematen (Ghana) and Ms Anabel Gonzalez (Costa
Rica).
Also in the list are Ms Mari Elka
Pangestu (Indonesia), Mr Tim Groser (New Zealand), Ms Amina Mohamed
(Kenya), Mr Ahmad Thougan Hindawi (Jordan), Mr Herminio Blanco (Mexico)
and Mr Taeho Bark (Republic of Korea).
If elected to the DG post, Mr
Azevedo said would ensure that the Doha negotiations are implemented to
make WTO systems more responsible for the developing countries
especially the LDCs.
When they launched the Doha Round,
ministers placed development at its centre. “We seek to place developing
countries’ needs and interests at the heart of the Work Programme
adopted in this Declaration,” the ministers said.
They continued to say,
“... We shall continue to make positive efforts designed to ensure that
developing countries, and especially the least-developed among them,
secure a share in the growth of world trade commensurate with the needs
of their economic development.
“In this context, enhanced market
access, balanced rules, and well targeted, sustainably financed
technical assistance and capacity-building programmes have important
roles to play”.
The preamble of the Marrakesh agreement states that the
activities by the WTO must aim to raise standards of living and ensure
full employment.
Using resourcefully the scarce resources
for the developing nations was fundamental to participate competitively
in the global trade as way to end abject poverty.
Highlighting the
fact, the Brazilian ambassador to Tanzania, Mr Francisco Luz in his
recent visit to the Tanzania Standard Newspapers (TSN) headquarters said
investment in natural resources and the benefits accrued should be
reflected in improved living standards of the people.
For example, he said Tanzania has a
greater chance to boost its Gross Domestic Product (GDP) to above 20 per
cent due to immense discoveries of gas in the Indian Ocean.
“Economic
growth must create social inclusion,” he said, adding that, “Clear
transparency on the royalties and other gains from gas resources as well
as how the benefits are shared will build public confidence
particularly in Mtwara and surrounding areas.”
The increased investments
in gas consumptions could capacitate low income earners to make use of
it as a source of energy in the first place but also as way of
protecting the endangered environments.
Source: The Daily News, www.dailynews.co.tz, reported by Sebastian Mrindoko in Dar es Salaam
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