USTR Portman says WTO open markets key to development

The United States contributes more money to developing countries for trade capacity building than any other country but views opening markets as even more crucial for promoting development, US Trade Representative Rob Portman says.

In yesterday's remarks in Hong Kong on the first day of the World Trade Organization (WTO) ministerial meeting, Portman pressed for reducing barriers to trade in the core areas of agricultural goods, industrial goods and services.

Almost since the WTO negotiations, formally called the Doha Development Agenda, were launched in 2001 they have languished with little progress in all three core areas, held up especially over politically sensitive agricultural trade issues.

"Aid for trade is a supplement to an ambitious result in the round, not a substitute for an ambitious result in the round," Portman said.

He cited evidence from the International Monetary Fund/World Bank's Global Monitoring Report showing that the US economy is the most open to imports from least-developed countries.

"Market access is not something that the developed world wants or that the developing world wants; it is something we should both want," Portman said. "When developing world farmers can sell their products in our markets, and when we can easily export goods and services to developing countries, we both benefit."

Portman said he understands some aid to developing countries is necessary for them to build the capacity for trade -- to have passable roads, working ports, credible legal and financial systems.

"Otherwise, all the market openings in the world cannot help a least-developed country," he said.

The United States is spending $1.34 billion for trade capacity building in 2005, more than any other country and 46 percent more than the previous year, he said, announcing release of a 20-page document about such US assistance, "Participation, Empowerment, Partnership: Seeking Sustainable Results through US Trade Capacity Building."

Portman said the developed countries and the international financial institutions have to get smarter about delivering trade capacity building assistance, especially sharing best practices learned from experience.

Ministers from the 149 WTO member economies at the Hong Kong meeting December 13-18 have turned more attention to development issues as the stalemate over trade issues continues. One likely outcome is an agreement on giving duty-free, quota-free market access to most imports from the least-developed countries.