Agenda Item 10
Regional Cooperation

Statement by
Ambassador Sichan Siv

United States Representative to the
Economic and Social Council

Geneva, Switzerland

July 18, 2003

Madam President,

The upcoming Cancun Ministerial on the Doha Development Agenda is a once-in-a-generation opportunity to act for the benefit of all countries and all people. We have a chance to open new markets for goods and services -- and to spur economic and political progress throughout the developing world. It is a time for all World Trade Organization members to meet the challenge.

We are working actively to deliver the significant liberalization in agriculture that is provided in non-agricultural goods. The United States also has pressed to open services markets, which the World Bank estimates could add $900 billion a year to developing economies alone. These are ambitious proposals. We believe others need to be similarly ambitious. We are willing to work together with others to deliver real benefits to the global economy.

To succeed in this endeavor, all WTO members -- developed and developing countries alike -- must have a sense of mutual responsibility, while recognizing the necessity of special treatment for the poor and most vulnerable. Although some argue that there is no need for developing countries to lower trade barriers, 70% of the tariffs paid by developing countries are to other developing countries. Thus, developing country barriers protect the privileged few, with the price paid by poor consumers, instead of stimulating competitiveness.

While the United States is doing all we can to make WTO negotiations succeed, we are also energizing free trade by pressing forward with free trade agreements. The North American Free Trade Agreement has proved that both developed and developing countries gain from free-trade partnerships. In the past two and a half years, the United States has signed agreements with Jordan, Singapore, and Chile. We are negotiating new FTAs with Morocco and Australia, and will begin negotiations with Bahrain next year. Understanding the importance of promoting intra-regional trade and investment, we are making progress on establishing a Free Trade Area of the Americas. We are also engaged in regional FTA negotiations with the Southern African Customs Union and the Central American Common Market and are undertaking the Enterprise for ASEAN Initiative. These agreements and initiatives will help developing countries realize the gains of regional integration and stronger ties to America and its vast economy and market.

In May 2003, President Bush proposed "the establishment of a U.S.-Middle East free trade area within a decade, to bring the Middle East into an expanding circle of opportunity, to provide hope for the people who live in that region." The agreements we have finalized or are negotiating will serve as models for their neighbors and links in this new chain of regional trade opportunity.

To establish a U.S.-Middle East free trade area, we intend to:

This last element is key to our overall assistance strategy for developing countries. Since 1999, United States trade capacity building assistance has jumped from $370 million to $640 million in 2002. This assistance aims to build human and institutional resources to help developing countries. It will enable them to take better advantage of regional trade opportunities and benefit more broadly from integration into the WTO and the global trading system.

According to the World Bank, free trade in goods and services could help lift 300 million people out of poverty. We all must dedicate ourselves to ensuring success in achieving the goals of Doha. ECOSOC and the rest of the United Nations system have a key role to play in promoting trade as a vector for development and an engine for economic growth.

Thank you, Madam President.