Trade Policy Note Final-rev08 - Development
Trade Policy Note Final-rev08 - Development
Trade Policy Note Final-rev08 - Development
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supported by measures that ensure that the benefits of export growth are shared<br />
equitably, and (c) the protection of food security and rural livelihoods, should set in<br />
play a virtuous spiral of growth, poverty reduction and human development. The<br />
objective of trade negotiations should be the preservation of national policy space<br />
needed for development and achievement of the MDGs, while obtaining<br />
commitments from trading partners supportive of these development objectives.<br />
Preparing a Strategy<br />
A first step would be to review trade policies (i.e. trade in the broad sense of covering<br />
all matters subject to “trade” concessions) to target those most conducive to pro-poor<br />
and pro-development outcomes and the achievement of the MDGs. These can be<br />
divided into those where the maintenance of domestic policy space would seem<br />
crucial, and those where the objective would be to obtain action on the part of other<br />
countries, with the support of policy measures at the national level. <strong>Policy</strong> measures<br />
at the national and international levels would focus on (a) preventing the poor from<br />
bearing the burden of trade disciplines and liberalization and (b) equipping poorer<br />
people to derive maximum benefit from trade and globalization. In both cases, the<br />
achievement of the MDGs would be a central objective.<br />
Governments which have not clearly defined their interests and goals inevitably find<br />
themselves on the defensive in trade negotiations. A pro-development trade policy not<br />
solidly based on a broad national consensus will not be defensible for long in<br />
negotiations, as it will come under pressure from foreign trade negotiators,<br />
multilateral financial institutions and special interest groups within the country. A<br />
solid consensus building exercise should, therefore, be seen as a prerequisite for<br />
effective participation in trade negotiations. This is to preempt the risk of “elite<br />
capture”, where special interests are successful in distorting priorities to serve their<br />
own interests at the expense of other segments of society. This can result in<br />
undermining development strategies and give rise to political conflict. An intensive<br />
consensus building process involving all stakeholders can greatly strengthen the<br />
ability of governments to achieve a pro development, pro-poor outcome in trade<br />
negotiations. A consensus should be reached on a list of priorities to be pursued in<br />
trade negotiations, whether at the multilateral, regional or bilateral level.<br />
This strategy would incorporate pro-poor and pro-development objectives into<br />
national trade legislation and regulation, and anticipate the requests of trading<br />
partners so as to prepare to protect existing pro-MDG programmes and preserve<br />
policy space for future initiatives. A bottom-up pro-poor and pro-development trade<br />
strategy could be devised so as to attain the following goals in domestic policy and<br />
trade negotiations:<br />
Goal A: to protect the most vulnerable segments of the population and to ensure<br />
greater equality within national societies, notably by providing universal access to<br />
basic services , health, education, water and sanitation and energy, and to protect poor<br />
farmers from disruptive surges of imports that could threaten their livelihoods.<br />
Negotiating strategy: to defend national policies and regulations in negotiations<br />
on trade in services and investment, (Sections 6 and 7) and flexibilities in<br />
agricultural trade regimes, (Section 5), and of ensuring access to medicines<br />
(Section 9).<br />
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