Commission Statement on trade negotiations - regional co-operation - ECOSOC

Mrs. Vice-President,

I have the honour to take the floor on behalf of the European Union. The Acceding Countries Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic and Slovenia and the Associated Countries Bulgaria, Romania and Turkey have aligned themselves to this statement.

Trade can foster growth and poverty reduction and be an important catalyst for sustainable development. Countries that have integrated into the world economy through trade and investment have enjoyed higher economic growth and improvement in many key indicators. Trade openness alone is, however, not sufficient to combat poverty; the extent to which trade contributes to poverty reduction depends on a wider, country-owned poverty reduction strategy for which a combination of sound domestic policies and additional external support is needed. The EU has therefore integrated trade as one of the main priorities of its development policy and is the first donor of trade related assistance.

Multilateral trade negotiations under the WTO Doha Development Agenda, together with bilateral and regional initiatives and support for regional integration among developing countries, are the main vehicles to pursue enhanced market access and improved trade rules. Enhanced market access, particularly in products where developing countries have a comparative advantage, such as agricultural goods and labour-intensive manufactures, is extremely important for helping poor countries benefit from trade. The existence of a rules-based multilateral trading system is key for developing countries' ability to participate in and benefit from international trade. The rules-based system embodied in the WTO substitutes the "rule of law" for the "law of the jungle", which is of particular benefit to smaller nations and developing countries.

Regional integration can contribute to the participation of developing countries in the global economy and help to reinforce the multilateral trading system. North-South integration, can help locking in reforms, give stable access to a large market and facilitate flows of Foreign Direct Investment (FDI). South-South integration can enhance efficiency, increase competition between peers in development, enable economies of scale, increase attractiveness to FDI and secure greater bargaining power. Institutions and capacity building at regional level can bring economies of scale. Last but not least regional integration can contribute to the consolidation of peace and security.

Mrs. Vice-President,

The regional perspective is strongly present in the relations between the EU and many developing regions, such as the Mediterranean countries, Mercosur, or the Central American and Andean Community countries.

In the framework of its negotiations with the African Caribbean and Pacific (ACP) countries on Economic Partnership Agreements (EPAs), the EU promotes an approach that combines the strong points of North-South integration with the positive aspects of regional South-South integration. EPAs are, in the first place, an instrument for development. They shall aim at fostering the smooth and gradual integration of the ACP countries into the world economy thereby promoting sustainable development and poverty reduction. EPAs will be based on existing regional ACP groupings and take account of the particular economic, social and environmental constraints of the ACP and of the capacity to adapt and adjust their economies to the liberalisation process. Most importantly, EPAs will be tightly linked with the EC's development co-operation so as to establish a powerful, mutually supportive trade and development framework.

Thank you, Mrs. Vice-President.

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• EU Presidency Statement - The Commission on Human Rights - ECOSOC (23/7/2003)