WEDNESDAY, JUNE 1,1 994
KEEP GUARD AGAINST PROTECTIONISM: GOVERNOR
THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, TODAY (WEDNESDAY) SHARED WITH POLICY-MAKERS ATTENDING THE 21ST PACIFIC TRADE AND DEVELOPMENT CONFERENCE THE ISSUES OF FREE TRADE, HUMAN RIGHTS AND THE ENVIRONMENT.
MR PATTEN SAID MOST ECONOMISTS AND POLITICIANS RECOGNISED THE MERITS OF FREE TRADE.
BUT THE PRESSURES FROM BUSINESS AND THE TEMPTATION OF POLITICAL EXPEDIENCY TO GIVE WAY TO SHORT-TERM, SHORT-SIGHTED DEFENCE OF MISUNDERSTOOD NATIONAL INTEREST THROUGH SUBSIDY AND PROTECTION REMAINS AS STRONG AS EVER, HE SAID.
GATT
"WE REALLY CANNOT RELAX OUR GUARD.'
MR PATTEN SAID THE RECENT SETTLEMENT OF THE URUGUAY ROUND OF NEGOTIATIONS, THE PREPARATIONS FOR THE SETUP OF THE WORLD TRADE ORGANISATION AND THE RENEWAL OF CHINA'S MOST FAVOURED NATION STATUS ALL HAD A MAJOR IMPACT ON DEVELOPMENT AND TRADE IN THE ASIA-PACIFIC.
UNDER THE URUGUAY ROUND AGREEMENT, TARIFF IS TO BE REDUCED BY 30 PER CENT.
THE GOVERNOR SAID THAT WAS A BIG REDUCTION, BUT THE COST OF PROTECTIONIST MEASURES TO CONSUMERS WORLDWIDE WAS ESTIMATED IN 1992 TO HAVE BEEN OVER US$450 BILLION.
"A 30 PER CENT REDUCTION STILL MEANS THAT THE COST OF PROTECTIONISM IS OVER US$300 BILLION," HE SAID.
THE GATT AGREEMENT ALSO PROVIDES THAT THERE SHOULD BE MUCH TIGHTER DISCIPLINES AND CLEARER RULES RELATING TO FAIR COMPETITION, ANTI-DUMPING, SUBSIDIES AND SAFEGUARDS, SO AS TO CURB ABUSE OF SUCH MEASURES.
"THESE AGREEMENTS REFLECT GOOD INTENTIONS, BUT A CONSTANT WATCH ON THE WORKINGS OF THE WORLD TRADE ORGANISATION WILL BE NEEDED TO ENSURE THAT THE PROMISE IS FULFILLED, HE SAID.
TURNING TO HUMAN RIGHTS CONCERNS, MR PATTEN SAID HE WAS CONVINCED THAT TRYING TO PROMOTE HUMAN RIGHTS THROUGH WARNINGS ABOUT TRADE WAS NOT THE BEST WAY OF MAKING PROGRESS.
"ALL TOO EASILY, THE CLAIM OF DEFENDING HUMAN RIGHTS CAN BE USED TO CLOAK PROTECTIONISM.
TH
"THE GREATEST PROSPECT FOR DEVELOPING LONG-TERM, PROFITABLE AND TRUSTING PARTNERSHIPS IN TRADE IS BETWEEN COMMUNITIES THAT TRUST AND RESPECT THEIR OWN PEOPLE,' HE ADDED.
**
EXPANDING ON HIS CONCERN FOR THE ENVIRONMENT, MR PATTEN SAID THE EFFICIENT, RESPONSIBLE USE OF RESOURCES
OF IMPORTANCE TO THE ECONOMICS OF
AND OF
BUSINESSES.
GOVERNMENTS
WAS
FUNDAMENTAL INDIVIDUAL
/DESCRIBING THE