EU Statement - High-level Meeting on Least Developed Countries

EU Statement at the Mid-term Comprehensive Global Review of the Implementation of the Programme of Action for the Least Developed Countries for the Decade 2001-2010 by Dr. Benita Ferrero-Waldner, European Commissioner for External Relations and European Neighbourhood Policy, United Nations General Assembly, New York

Madam President,

I am pleased to address the General Assembly on behalf of the European Community to reaffirm our commitment with the implementation of the Brussels Programme of Action. The UN Millennium Summit had called on partners to address the special needs of LDCs and to increase efforts towards the achievement the Millennium Development Goals. Let me assure you that the EC development policy and assistance will continue to strive towards the attainment of the MDGs and to meet all of its commitments at recent major international summits including those made at the Brussels Conference.

As international trade is vital for the development of LDCs and for the eradication of poverty, the EC attaches particular importance to its trade relations with LDCs. We were the first major trading block to commit to duty-free and quota-free access for LDCs exports and we have been fully supporting LDCs in Doha and the implementation of the LDC's agenda work programme in the WTO.

We deeply regret the suspension of the DDA negotiations. This situation could have been avoided, if all Members had shown sufficient commitment and flexibility. The gaps between Members were not unbridgeable. There was a window of opportunity for a reasonable and balanced deal that would have delivered real economic benefits for all Members.

We have done all we could to keep the momentum. Unfortunately, this cannot be said of all Members. We remain convinced that a recalibration of the US's position would enable a fruitful resumption of the talks.

The costs of this suspension of the DDA negotiations are high - and risk being even higher if the talks do not resume soon.

There was already much on offer in the DDA -much more than in previous Rounds - which now risks being lost: real cuts in tariffs in industry and agriculture in all developed and most large developing countries and thus a major boost to world trade; Duty Free Quota Free access to rich countries' markets for the LDCs; greater investment and choice in the provision of services, which are the backbone of modern economies; an ambitious agreement on trade facilitation; and more importantly: fundamental reform of farm subsidies in developed countries, something that ultimately only the WTO can deliver.

Beyond this, there are important political and systemic implications for the multilateral trading system and the cause of multilateralism at large. What we now risk losing is far more significant than the individual issues on which the negotiations have foundered.

In the short term, we should ensure that the poorest developing countries do not fall victim of the current impasse. We should create an early harvest for their benefit, by frontloading a significant development package.

Firstly we should push ahead with the Aid for Trade package because developing countries' capacity constraints remain unchanged.

Secondly we should put in place the new Integrated Framework for technical assistance to trade for the LDCs.

Thirdly the Hong Kong agreement on duty free quota free market access should be fully implemented outside of the Round and possibly improved.

We remain fully committed to the DDA. We remain committed to the case for open markets, progressive trade liberalisation, and stronger multilateral rules, as a trigger for growth and development. In this spirit, we need to look ahead and to rebuild. The EU for its part will do its utmost to secure an early resumption of negotiations and call on its trading partners, in particular the major players, to make the necessary moves to enable negotiations to restart.

| Arriba |

• EU Presidency Statement - Follow-up to major UN conferences and summits in the economic, social and related fields and follow-up to the Millennium Summit  (6/12/2006)
• EU Presidency Statement - Groups of Countries in Special Situations (8/11/2006)
• EU agrees to move ahead with "aid for trade" package  (16/10/2006)
• EU Presidency Statement - High-level Meeting on Least Developed Countries (18/9/2006)
• EU Commissioner Ferrero-Waldner to attend UN General Assembly (18/9/2006)