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Statement by H.E. Mr. Sha Zukang, Ambassador of China on item 6:Review of developments and issues in the post-Doha work programme of particular concern to developing countries

Mme President,

The Chinese delegation welcomes the opportunity at TDB to participate in the consideration of item 6: Review of developments and issues in the post-Doha work programme and thanks the Officer-in-Charge of the UNCTAD Mr. Fortin for his presentation. The Chinese delegation fully associates itself with the statements on the item made by Ambassador Correa of Brazil on behalf of G-77 and China and by Ambassador Umer of Pakistan on behalf of the Asian Group and China.

The Chinese delegation attaches great importance to the consideration of this item. As is well known, Doha development agenda and the progress in addressing related post-Doha issues are not only the priority of WTO, but also a subject of great interest to major international conferences, international organizations and agencies. In our view, as a functional organ of the UN in trade and development affairs, UNCTAD should conduct serious discussions about Doha Development Agenda and post-Doha issues and help move the negotiations in the right direction.

Mme President,

We remember well the lively discussion on the same item during the last year's session of TDB following the setback of Cancun Conference. Representatives from over 70 countries and international organizations reaffirmed in their statements the importance of Doha agenda and expressed their concerns over the Cancun setback. It is equally fresh in our memory that it is here that TDB members, in preparation for UNCTAD XI, conducted an enthusiastic and serious exchange of views and discussion on post-Doha issues. The inputs contributed by all parties were so abundant that the number of paragraphs added or revised on the trade sub-theme exceeded the total number of paragraphs of the four sub-themes combined in the original Chairman's text. As we have witnessed, WTO members worked hard day and night at its General Council in July, which culminated in a new framework agreement marking the completion of the unfinished work of Cancun. The agreement injected fresh vitality and hope into the Doha agenda.

All developments have served to show that an equitable, rational and healthy international multilateral trading system in the context of globalization is the need in the interest of all countries for their development. Meanwhile, realization of the development interests of developing countries is an important yardstick of the fairness of the system.

Mme President,

On the subject per se, the Chinese delegation wishes to make the following points.

I. Doha Agenda should contribute to international cooperation and the sharing of gains from globalization.

We hold that Doha Development Agenda is another round of trade negotiations aimed at increasing multilateral cooperation, improving and strengthening multilateral trade system. What's more important is that Doha round has accorded a central place to development, thus providing the developing countries with a new opportunity to participate in the multilateral trade system and integrate into the world economy. The Chinese government believes that the theme or the primary task of today's world is peace, development and cooperation. A just, rational and healthy multilateral trade system can play a unique and important role in creating a better and more stable international environment for economic development. It is by means of negotiations on Doha agenda that WTO can promote a freer environment for trade, a more standard code of conduct and a more equitable trade system. This way, we believe that a successful outcome of the negotiation will also enhance international cooperation and promote world economic development, thus contributing to the realization of goals set forth in the Millennium Declaration.

However, we do not anticipate a smooth sailing on our way to the afore-mentioned goals. There is considerable divergence of views over many issues between developed and developing countries, China included. It is true that the July Package on Doha negotiations reached at WTO on 1 August this year after a process fraught with setbacks and difficulties provides principles and direction for the next stage of negotiations. However, that only represents one step forward and much more important is to translate the framework of principles into substantive details. Everything depends on the next stage of negotiations which could be very difficult.

We are of the view that developed members should demonstrate greater political will; all members have a positive role to play and should continue to participate in the next stage of negotiations with a proactive and pragmatic attitude and work together for the success of the Doha round.

II. Doha agenda should not only reflect but also realize development.

The UNCTAD members stated in the outcome document of UNCTAD XI, Sao Paulo Consensus, that trade was not an end in itself but a means to achieve growth and development. In contrast to the previous GATT, WTO should all the more include development issue on its agenda as an important item to be followed and addressed.

Developing countries are finding themselves in a vulnerable situation in the ongoing globalization process. Despite the increasing share of developing countries in the world trade, many development issues have not been effectively addressed in the current multilateral trade system and relevant agreements. As a result, developing countries, the LDCs in particular, are confronted with difficulties and obstacles in their efforts to genuinely integrate into the system. Doha agenda has partially reflected the development needs, hence its name "development round". However, great difficulties remain in realizing the agenda, especially in areas of major development interest to developing countries.

We are of the opinion that Doha negotiations and their outcome should take account of the interests of developing countries and enable developing countries to benefit from the multilateral trade system. Negotiation on any item should be limited to trade-related areas. Assessment of implications for development is a prerequisite for the conclusion of any agreement. Consequently, issues of special interest to developing countries, such as special and differential treatment, dependence on the export of primary products, net food import, food security and rural development, will have to be given attention and addressed at the next stage of negotiation. At the same time, developed members should adopt substantive measures in areas involving the interests of developing countries and take practical steps against trade protectionism, such as eliminating subsidies, opening up their market, reducing tariff escalation, removing tariff peaks and technical barriers.

III. Increase technical cooperation with and assistance to developing countries

Developing members pays a greater price than their developed counterparts in the process of integrating into the multilateral trade system and implementing WTO agreements and corresponding policy adjustments. Furthermore, with the deepening of globalization and increase in the number of items and contents of the trade negotiation, developing countries are faced with numerous burdens and difficulties in terms of human resources, awareness and capacity to participate as well as financial resources.

In order to ensure the full participation of developing countries in the multilateral trade system, capacity building and technical cooperation are increasingly important to them. Cooperation in this field should include in-depth analysis of relevant issues, information on their pros and cons and forecast of medium and long-term trends in light of the real situation of developing countries. It is necessary, through technical cooperation, to increase their negotiating skills and capability and realize effective market access and entry, thus creating a win-win situation in which results of negotiation are shared by all. In this regard, we recommend that other international organizations and agencies related to trade and development in addition to WTO should conduct technical cooperation within their terms of reference and contribute to a fair, transparent multilateral system and full participation of developing countries.

IV. Issues of special interest to China

Agriculture is one of the issues of the greatest concern to most developing countries, including China. We support a target date for the eventual elimination of export subsidy in the framework agreement. We stand for the complete elimination of export subsidy of any kind, substantive reduction of trade-distorting domestic support and provision of implementable special and differential treatment to developing countries.

In the sector of trade in services, developed members should take special account of the sectors and mode of supply (e.g. mode 4) where developing members enjoy a comparative advantage and have export interest. Offers made to developing members in the financial and other sectors should be based on the possibility of their supervisory capabilities.

We welcome the launch of negotiations on trade facilitation which will exert a positive impact on trade among member states and on the world trade. Due to considerable difference in the level of development between developing and developed countries and high adjustment cost, it is necessary for developing countries to receive technical assistance and capacity support in order to prevent losses in the adjustment process.

As a new WTO member, we are concerned with the problems facing new acceded members. Having paid a huge accession price, new acceded members are confronted with new burdens and challenges. Problems besetting new acceded members should be addressed in real earnest at the next stage of negotiations so as to concretize the provisions of principle in the framework agreement.

While actively participating in and helping perfect the multilateral trade system, China will continue to attach importance to regional economic cooperation. China will continue to attach importance to issues related to trade, environment and development and give support to the development of environmental products and services and promotion of sustainable development. China welcomes the integration of trade in textiles and clothing into the multilateral trading system and is opposed to new protectionist measures that impede the normal functioning of trade in textiles and clothing.

Mme President,

The Chinese delegation believes that the success of UNCTAD XI with Sao Paulo Consensus and Sao Paulo Spirit will foster the building of confidence in the multilateral trading system, thus contributing to the Doha agenda. During its 40 years of existence, UNCTAD has provided valuable support to developing countries in their efforts to participate in the multilateral trading system and integrate into the world economy. UNCTAD should stick to this orientation. With the concerted efforts of the entire international community, the day when the millennium development goals are reached will become ever closer.

Thank you, Mme President.

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