WORLD TRADE WT/MIN(96)/ST/113
12December 1996
ORGANIZATION(96-5287)
Original: English MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
MALDIVES
Statement byH.E. Mr.Abdul Gayoom Abdulla Yameen
Minister ofTrade, Industries andLabour
Letmeattheoutset congratulate theDirector-General oftheWTO andhisstaffontheoccasion
ofthisfirstMinisterial Meeting. Iwould alsotakethisopportunity toexpress mydelegation 'sdeep
appreciation totheGovernment ofSingapore forthegracious hospitality accorded tous.
Apart fromtheseveral macroeconomic challenges thatneedtobeaddressed inourcountries,
thereareserious constraints facing LDCs inourefforts toexpand trade. Access todeveloped country
markets, totalexclusion fromthebenefits oftrading blocs, supply sideconstraints facing theexporters
inLDCs andthelackofvalue addition bytheexporters ontheirexport products arethemainconstraints
facing LDCs.
Wealsofindourselves inanerawhere official development assistance trickles down toour
countries.Andwhilethedevelopedcountriesbelievethatcapitalflowsshouldbeviaforeigninvestments,
multinational companies donottarget LDCs fortheiroutward investments. While myGovernment
recognizes thesignificance offoreign capital andeconomic integration through foreign investments,
theroleofODA inthistransition cannot beunderscored. Weneed, notonlytechnical andfinancial
assistance, butalsoassistance todevelop ourinstitutional capacity andourhuman resources tobridge
oursupply sideconstraints. Itisduetothese factors thatwefindourselves marginalized further and
further intheglobal trading regime.
TheLDCs share ofworld trade islessthan0.4percentandclearly thiscould notbeathreat
toanycountry. Andyetourexports facemarket access limitations inthedeveloped countries.
Weallagreed atMarrakesh thatmarket access isveryimportant fortheworld trading regime,
andmore so,fortheLDCs, andyetitisapitythatthefewexport products wehave, cannot enjoy
complete market access indeveloped country markets.
Asyouareaware mycountry isoneoftheleastdeveloped island nations. Oureconomy is
small andourexports arefew. Maldives depends onfishing andtourism forourlivelihood. Any
impact onthese twovitalsectors ofoureconomy willhavelasting damage onourcountry.
Wehavehadsuccess indeveloping ourtourism industry. However ourexport sector andthe
manufacturing sector have beenlagging behind. Ourmain industrial export iscanned fish. The
Government hasputalotofemphasis ondeveloping thisindustry andconsequently invested heavily
inthisvitalindustry. However weareatthemoment facing difficulty inexporting canned tunato
ourmajor export markets. Thismarket hasestablished aform ofatotalquota system, distributing
thisquota among canned tunaimporters inthebuying market through alicensing arrangement. We
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fearthatthismechanism might leadtoatotalexclusion ofourexports inthismarket. Ifasingle export
country likeoursfacesuchconstraints onouronlyexport product, whatisthenintheWTO forus?
LDC countries withexport interest totheEUlikemyowncountry, areencouraged bythe
accommodatingremarksbySirLeonBrittanregardingfullermarketaccessandmoretradeliberalization.
Similar sentiments mustbeechoed byallother trading blocs aswell, inorder toenable LDCs access
totheirmarkets. Marrakesh promised totalintegration andtrade globalization -notalienation.
Afurther issue ofconcern tomycountry istherules oforigin criterion. Wewould like
maximum flexibility oftherules.
Iurgetherespective Ministers fromthedeveloped countries totakenoteoftheunique position
weareinandrelaxtherulesoforigin fortheLDCs. TheWTO Members should availtheprovisions
oftheAgreement onTextiles andClothing tograntpreferential dutystatus andtoenhance market access
opportunities totheLDCs.
MyGovernment cannot agree thattrade andlabour should formpartoftheWTO 'snewwork
programme. Taking trade measures insupport ofsocial standards would, wefear,introduce anew
form ofprotectionism against theLDCs. Wearefamiliar withunilateral trade sanctions invoked in
thecontext oflabour rights. LetILOsetthelabour standards. Withregard totheDirector-General 's
proposaltocommenceaworkprogrammeontherelationshipbetweentradeandinvestments,wewelcome
thecommissioning ofthestudy provided thatitisundertaken without anypreconditions orobligations
onWTO Members.
AsLDCs wehavearoletoplayintheglobal economy aswell. Wehaveresolved toimprove
ourmacroeconomic situation. Wehaveallagreed ontheimportance offoreign partners inoureconomic
development. Wehaveaveryliberal foreign investment regime. There isnoincome taxorcorporate
taxinmycountry. Withthepolitical stability wehavehadandtheconsistent public policies wecherish,
weofferaveryconducive investment climate totheforeign investor. While westrive hardtoattract
foreign direct investment, wearenotallequally successful inthisendeavour.
Itismyearnest hopethatthismeeting willaddress theissues oftheLDCs andthrough you
andtheWTO, anaction planisdrawn uptospeedily redress themounting difficulties weface. If
theWTO istostayrelevant andresponsive toitsMembers, itmustintervene tocreate greater market
access opportunities totheLDCs. TheMaldives delegation commends theDirector-General 'sproposal
thattariffs bebound atzeroforLDCs. Wecall,further, fortheelimination ofalltariffs, non-tariffs
andtechnical barriers toLDC exports. Thedeveloped anddeveloping countries have abroader
responsibility towards theLDC integration intotheworld trading regime. LetnotMarrakesh bea
vision thatdivides theWTO. Letusallshare thebenefits ofthismiracle.