ID :
145207
Fri, 10/08/2010 - 09:28
Auther :
Shortlink :
https://oananews.org//node/145207
The shortlink copeid
MALAYSIAN MINISTER: CHANGING TRENDS IN TRADE LIBERALISATION NEGOTIATION
SINGAPORE, Oct 7 (Bernama) –- Developed countries are now focused on
liberalising trade in services rather than market access for goods in trade
liberalisation negotiations.
In stating this, International Trade and Industry Minister Mustapa Mohamed
also told an international conference here Thursday that other
issues such as sustainability, labour rights and the environment were also
making their way into the negotiation agenda.
"Businesses that want to profit from the global trading system must take
heed of this changing trend in their respective strategies," he said in
his keynote address at the Global Entrepolis @ Singapore 2010, an annual
gathering of international business leaders.
The two-day conference which began Thursday is themed, "Global Trends, Asian
Insights" and organised by the Singapore Business Federation. The conference has
attracted about 600 participants, including 200 from outside Singapore.
According to Mustapa, there was a noticeable shift in the focus of the
various groups within the World Trade Organisation (WTO), who from being focused
heavily on market access for goods are now looking at the liberalisation of
trade in services.
"Developed countries, led by the United States, have stated in no uncertain
terms,that they would like services liberalisation to be the catalyst to revive
the Doha Round," he said.
He believed that this position was driven by the need for developed
country leaders to provide a stronger boost to their recovery.
While many countries in Asia have experienced strong and swift rebounds,
this had not been the case for many countries in the West, he said,adding,the
United States continued to grapple with unemployment of about 9.5 percent.
Mustapa explained that traditionally, governments had been very focused on
lowering barriers to trade in goods, with the WTO ushering in a period of broad
reductions in tariff on many categories of goods.
But now the Doha Round launched 10 years ago had stagnated, he said, with
the goals set out under it, far from being achieved.
He highlighted that developed countries were keen on the services sector
liberalisation because it now accounted for 67 per cent of global economic
output.
"For the Organisation for Economic Cooperation and Development (OECD)
countries, the share is as high as 73 per cent while for developing countries,
it was 45 per cent as of 2006," he said.
He also said developed countries were of the view that considerable progress
had been made in liberalising trade in goods, and the marginal gains from
further liberalisation efforts would be less, when compared to the rewards that
could come from tackling barriers in services trade and investment.
Mustapa said Asia was definitely very much on board with the programme for
greater liberalisation in the services sector.
He cited the Asean Framework Agreement on Services, which aims for the
liberalisation of all 128 services sub-sectors by 2015, as one of the most
significant regional initiatives.
Asean Ministers will be meeting this month to formalise the liberalisation
of another 15 sub-sectors within their timeline, bringing the total number of
liberalised sub-sectors to 80.
Asean has also signed services pacts with its dialogue partners, China,
Australia, New Zealand and South Korea, while negotiations are ongoing with
India and Japan, Mustapa said.
"This is going to create a very dynamic area for services trade in the Asean
region extending to the giant economies of Asia," the minister added.
He also said as a sign of its commitment to reforms and towards an open
economy, Malaysia within the space of two days, decided on two major important
trade initiatives, namely, joining the negotiations on Trans Pacific Partnership
(TPP) Agreement and the launching of the Malaysia-EU Free Trade Area
negotiations.
He added that although these are not going to be easily negotiated
agreements, it showed the willingness of the government to move with global
trends to enhance Malaysia’s competitiveness and allow for private investments
to propel economic growth.
liberalising trade in services rather than market access for goods in trade
liberalisation negotiations.
In stating this, International Trade and Industry Minister Mustapa Mohamed
also told an international conference here Thursday that other
issues such as sustainability, labour rights and the environment were also
making their way into the negotiation agenda.
"Businesses that want to profit from the global trading system must take
heed of this changing trend in their respective strategies," he said in
his keynote address at the Global Entrepolis @ Singapore 2010, an annual
gathering of international business leaders.
The two-day conference which began Thursday is themed, "Global Trends, Asian
Insights" and organised by the Singapore Business Federation. The conference has
attracted about 600 participants, including 200 from outside Singapore.
According to Mustapa, there was a noticeable shift in the focus of the
various groups within the World Trade Organisation (WTO), who from being focused
heavily on market access for goods are now looking at the liberalisation of
trade in services.
"Developed countries, led by the United States, have stated in no uncertain
terms,that they would like services liberalisation to be the catalyst to revive
the Doha Round," he said.
He believed that this position was driven by the need for developed
country leaders to provide a stronger boost to their recovery.
While many countries in Asia have experienced strong and swift rebounds,
this had not been the case for many countries in the West, he said,adding,the
United States continued to grapple with unemployment of about 9.5 percent.
Mustapa explained that traditionally, governments had been very focused on
lowering barriers to trade in goods, with the WTO ushering in a period of broad
reductions in tariff on many categories of goods.
But now the Doha Round launched 10 years ago had stagnated, he said, with
the goals set out under it, far from being achieved.
He highlighted that developed countries were keen on the services sector
liberalisation because it now accounted for 67 per cent of global economic
output.
"For the Organisation for Economic Cooperation and Development (OECD)
countries, the share is as high as 73 per cent while for developing countries,
it was 45 per cent as of 2006," he said.
He also said developed countries were of the view that considerable progress
had been made in liberalising trade in goods, and the marginal gains from
further liberalisation efforts would be less, when compared to the rewards that
could come from tackling barriers in services trade and investment.
Mustapa said Asia was definitely very much on board with the programme for
greater liberalisation in the services sector.
He cited the Asean Framework Agreement on Services, which aims for the
liberalisation of all 128 services sub-sectors by 2015, as one of the most
significant regional initiatives.
Asean Ministers will be meeting this month to formalise the liberalisation
of another 15 sub-sectors within their timeline, bringing the total number of
liberalised sub-sectors to 80.
Asean has also signed services pacts with its dialogue partners, China,
Australia, New Zealand and South Korea, while negotiations are ongoing with
India and Japan, Mustapa said.
"This is going to create a very dynamic area for services trade in the Asean
region extending to the giant economies of Asia," the minister added.
He also said as a sign of its commitment to reforms and towards an open
economy, Malaysia within the space of two days, decided on two major important
trade initiatives, namely, joining the negotiations on Trans Pacific Partnership
(TPP) Agreement and the launching of the Malaysia-EU Free Trade Area
negotiations.
He added that although these are not going to be easily negotiated
agreements, it showed the willingness of the government to move with global
trends to enhance Malaysia’s competitiveness and allow for private investments
to propel economic growth.
