. /.  WORLD TRADE  
ORGANIZATION  WT/MIN(05)/ST/88 
16 December 2005 
 (05-6087) 
MINISTERIAL CONFERENCE 
Sixth Session Hong Kong, 13 - 18 December 2005 Original:   English 
 
  
ICELAND 
 
Statement by HE Mr Geir Haarde
 
Minister for Foreign Affairs  
   Trade is a cornerstone of development.  We are all aware of recent projections  by the World 
Bank and the significant development gains a success ful conclusion to our work could bring about.  
Millions of people could be lifted out of poverty.   My own country has witnessed first hand the 
positive economic effects of trade.  In the course of  a few decades, the Icelandic population has come 
from poverty to enjoy one of the highest living standa rds in the world.  Trade liberalization has been 
crucial in this development.   We not only believe, we know
 that trade works. 
  We therefore welcome the new Members acceding at this time, and we support the timely 
accession of Russia and Ukraine to the Organization.  They are large contributors to world trade and 
we hope to see them as members in the very near future.   Iceland remains strongly committed to the Doha Development Agenda and a fair and 
equitable outcome that will benefit the entire me mbership.  I have recently approved increased 
contributions of Iceland to the Doha Development A ssistance Fund for the next three years.  We also 
plan to further enhance our long-term support for trade-related initiatives in  developing countries. 
  While we all expected to have progressed  farther by now, we should by no means 
underestimate what has already been accomplished.  With hard work and a common purpose we can 
still reach a conclusion by the end of next year. 
 
 In order to do so we have to proceed in parallel across all areas of negotiation and I urge 
Members to engage constructively on all fronts to move the process forward.  Market access for non-
agricultural goods is crucial for developing and developed countries alike and the same goes for the 
burgeoning services sector.  Without ambitious results in these areas, we cannot reach a balanced 
outcome of these negotiations.  Another critical issue is the elimination of trade-distorting fisheries 
subsidies, which is a necessary measure in  support of sustainable development. 
  I would at this juncture wish to recall the va rious contributions of the G10 to the agriculture 
negotiations, to which we uniform ly adhere.  For Iceland, the key words in the agriculture 
negotiations continue to be flexibility, adaptation,  proportionality and respect for the different needs 
of different types of agriculture.  Non-trade concer ns and differences in tariff structures must be taken 
into account and our opposition to the very noti on of tariff capping remains firm.  Different 
sensitivities require flexibility to address the vary ing situations prevailing among the membership. 
  As concerns market access, Iceland already imports more than half of its domestic food 
consumption.  Most of these products enter our market without duty or quantitative restrictions, 
including those products of the greatest significance to  least developed countries.  The level of tariff 
protection afforded to the relatively limited numb er of domestically produced goods is simply a WT/MIN(05)/ST/88 
Page 2  
 
 reflection of economic realities.  In our view, flexibility  must be integral to the selection and treatment 
of sensitive products and in a more general sense  the tariff reduction formula itself.  Only by 
proceeding in such a manner can we guarantee that the benefits of trade reform are universally shared 
between producers and consumers in bot h developing and developed countries. 
 
 As concerns export subsidies, Iceland abolished all such progra mmes in the early 1990s.  This 
is an important concession that cannot be taken for granted without undermining the goodwill of 
Members who have proceeded with re forms ahead of legal obligations. 
  In the domestic support pillar, Iceland has b een prepared to substantially reduce trade-
distorting domestic support provided there is an  acceptable overall balance of commitments. 
Substantial reductions will require significant adjustme nts to our agricultural policies.  In carving out 
the final details, care must be taken not to underm ine reforms that have already been carried out. 
  The Doha Development Agenda is now at a tu rning point.  A positive result is clearly within 
reach.  We can, and should, conclude  the negotiations before the end of  next year.  In order to do so, 
all Members have to proceed in parallel on all fronts.  It is distinctly unhelpful to adhere to demands 
that are clearly beyond the political reach of individual Members.  This is a negotiation
, the results of 
which require joint political owners hip.  We owe it to the people of our countries, developed and 
developing alike, to finish our work expeditiously and in a manner which ensures that the benefits 
of trade liberalization are harvested by all. 
 
 In conclusion, I wish to thank the people a nd Government of Hong Kong for their excellent 
hospitality.  The people of Hong Hong are living testimony to the benefits of free trade.  
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