WORLD TRADE  
ORGANIZATION  WT/MIN(09)/ST/106 
2 December 2009 
 (09-6312) 
MINISTERIAL CONFERENCE 
Seventh Session Geneva, 30 November - 2 December 2009 Original:   English 
 
  
COMMONWEALTH SECRETARIAT 
 
Statement Circulated by the Commonwealth Secretariat
 
 
(As an Observer) 
 
  The diverse grouping of 53 Commonwealth countries spans both the globe and the income 
spectrum, and works towards shared goals of democracy and development. This Ministerial 
Conference presents an important opportunity to pr omote the latter goal both through the utilisation of 
the WTO as a catalyst for economic recovery, and the strengthening of the multilateral trade system to 
make it a more effective medium for prom oting lasting growth and development. 
  The 7th Ministerial takes place against the backdrop of an unprecedented global economic 
crisis that has precipitated a seve re and adverse impact on world trad e. Aside from im proved financial 
intermediation at both the national and internati onal levels, a healthier global economy will require 
the fuller integration of hitherto marginalised c ountries and a fairer regulatory environment for the 
conduct of commerce. These objectives will be well se rved by a development-oriented, ambitious and 
balanced conclusion to the Doha Round. In recogn ition of this, at last week’s Commonwealth Heads 
of Government Meeting (CHOGM) in Trinidad and Tobago, Commonwealth countries reaffirmed 
their commitment to active participation in multilate ral trade negotiations and called on all parties to 
demonstrate the flexibility and political will re quired to achieve the Doha 2010 deadline.  
 
The WTO and the global economic crisis 
  The magnitude and pervasiveness of the global economic crisis raises a number of issues that 
Members should be mindful of during this Minist erial. Firstly, whilst a timely and balanced 
conclusion to the Doha Round is optimal, it is important to recognise that the expeditious 
implementation of what has already been largely agr eed would be a real contributor to recovery and a 
particularly significant stimulus for many developi ng countries. Consequently, an ‘early harvest’ on 
key development-centric issues such as Duty-Fr ee Quota-Free (DFQF) market access for Least 
Developed Countries (LDCs) would be beneficial at  this time and warrants serious consideration. 
  Secondly, the crisis has revealed the need  for stronger support for low income countries, 
especially small and vulnerable economies and LDCs.  Such countries are particularly susceptible to 
trade shocks and will require fina ncial and technical assistance to aid their recovery as well as to 
facilitate diversification and the ove rcoming of supply-side constraints necessary for them to benefit 
from the opportunities that trade and multilateral libera lisation yield. Whilst the fulfilment of Aid for 
Trade (AfT) commitments in 2010 will mark a signi ficant contribution in this regard, more is 
required.  To this end, at the CHOGM the Comm onwealth countries called for the sustained delivery 
of increased AfT, post 2010, in line with national de velopment plan priorities of recipient countries. 
Facilitating the achievement of this objective will entail an on-going role for the WTO in terms of 
coordinating the mobilisation of resources am ongst donors and monitoring progress towards the WT/MIN(09)/ST/106 
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  meeting of AfT commitments. Moreover, further understanding of how AfT is working in tandem 
with other financial instruments, in particular tho se offered by the international financial institutions, 
would greatly enhance the AfT Initiative.   Thirdly, whilst a wave of overt protectionism has not hit, recent evidence shows that there has 
been a degree of backsliding in terms of the im position of non-tariff measures in the wake of the 
crisis. As the global vanguard of trade cooperation, the WTO system needs to be on ‘high alert’ to 
avert such a trend. Accordingly, the monitori ng systems of the WTO should provide additional 
surveillance of non-tariff measures.   Long-standing issues within the DDA 
 
 The Commonwealth is also concerned with  a number of unresolved long-standing issues 
within the Work Programme of the Doha Develo pment Agenda (DDA). Firstly, agriculture, the 
fulcrum upon which the Round pivots, is of critical  importance to developing countries where it is 
closely intertwined with food security, livelihoods and development. Hence, a strongly development-
oriented conclusion to the Round necessitates a fa r-reaching and equitable outcome from agricultural 
negotiations.   Secondly, capturing the benefits of trade liberalisation requires that labour and capital flow from previously protected import-competing industr ies into expanding export industries. However, 
many developing countries currently lack the res ources, infrastructure and institutions to adjust 
quickly enough to the liberalisation of their markets to maximise the benefits, and mitigate the costs, that liberalisation entails. In recognition of this , negotiations on Non-Agricultural Market Access 
(NAMA), as well as on agriculture, should strive to provide sufficient flexibility for developing 
countries to implement their development strategies , and AfT should be utilised to ensure that 
liberalisation benefits all countries. Moreover, it is important to recognise that the benefits of tariff 
cuts will be curtailed or even negated by the ma intenance of, or introduc tion of new, non-tariff 
measures (NTMs). Consequently, market-access discussions need to be accompanied by a concerted effort to address not only tariffs but also NTMs.   Thirdly, the liberalisation associated with a successful end to the Round will induce 
preference erosion to the detriment of a number of preference-beneficiary developing countries, 
especially where it pertains to sen sitive products such as bananas a nd sugar. Mitigating and balancing 
these losses is a thorny issue, however, it is clear that affected countries w ill need flexibilities (e.g. 
sufficient time and assistance) to address the challe nges that multilateral liberalisation will engender.  
 
 Fourthly, of critical importance to the inclusiv eness of the DDA is the relative lack of ability 
of some low-income countries to fully participat e in trade negotiations. Many countries face human 
resource and financial limitations that impede th eir capacity to establish well-staffed, well-equipped 
and internationally mobile negotiating teams. Whilst the Commonwealth Secretariat and other 
agencies provide some funding and technical suppor t in this regard, it is imperative that these 
countries are not marginalised during negotiations. 
  
 It should be stressed that the primacy of the development purpose of the DDA must not be overlooked when addressing the above issues. Acco rdingly, adequate provision for Special and 
Differential Treatment for developing countries, esp ecially LDCs, should permea te the outcome of the 
Round.  
 
Future of the WTO 
 
 At a more fundamental level, the bel eaguered progress of the Doha Round further 
underscores not only the difficulty and complexity of  multilateral negotiations, but also the limitations  WT/MIN(09)/ST/106 
 Page 3 
 
 
  of WTO procedures and practices which points to the need for improvements in its role as a forum for 
inclusive negotiation and rule making. Consequent ly, the proposal put forward by several Members 
that the General Council initiate a deliberative pro cess to review the activities of the WTO is most 
timely. Relative to the GATT of the immediate post-war period, WTO membership has tremendously expanded and diversified. Accordi ngly, the future of multilateralism requires the WTO system to be 
dynamic and adaptable to the multiplicity of interests inherent within this new membership structure, 
as well as the exigencies of the modern world. It can be hoped that, by undertaking a far-reaching 
review, the WTO system will be strengthened and be tter placed to respond to the needs of its diverse 
membership.   The WTO and climate change 
 
 In looking forward it is clear that the amb it of the WTO circumscribes a range of issues 
pertinent to addressing climate change and its cost s. Accordingly, the WTO has a responsibility to 
play a supportive role in contribut ing to global efforts to address c limate change. Ensuring a fair and 
transparent outcome on trade and environment issu es within the WTO is of key importance to a 
number of developing countries who face the dual pr oblem of being the most likely to suffer from the 
effects of climate change, and being the most expo sed to potentially trade-distorting measures aimed 
at addressing it. Of particular concern are the cha llenges faced by small island developing states, other 
SVEs and LDCs whose economies are highly trade de pendent, with that trade being based in climate 
vulnerable sectors such as agriculture, fisheries and tourism.  These countries need support in 
diversifying their economies away from climate-vulne rable sectors, they need trade policy and trade 
infrastructure that is climate-friendly, and they need access to technologies which will support their 
transition to low-emission and climate adapted growth.   
Conclusion 
 
 Throughout this Ministerial, it is important that WTO Members are cognisant that the commitments they made regarding the Millennium Development Goals dictate that they address the 
needs of LDCs, landlocked developing countries and small island developing states as well as develop 
further an open, rules-based, predictable and non- discriminatory trading-system under the auspices of 
establishing a global partnership for development. He nce, it is hoped that, in addition to identifying 
trade remedies to the current ec onomic difficulties, this Ministerial looks beyond the immediate 
imperatives to come up with concrete and specifi c proposals, measures and strategies that can help 
make the WTO system more supportive of lasting gr owth, development and pr osperity. This system 
must strive to be sufficiently flexible and equita ble as to accommodate the diversity of interests it now 
represents whilst promoting fairness,  inclusiveness and transparency.  
 
 The Commonwealth is committed to supporting the fuller and more benefici al participation of 
all countries in global trade. Central to the achieveme nt of this objective is the effective functioning of 
the multilateral trading system. It is hoped that th is vision, shared by a ll WTO Members, will echo 
throughout the coming discussions of this Ministerial.  
 
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