STI speaks at economic summit
The Secretary for Trade and Industry, Mr T H Chau, today (Thursday) urged governments to get rid of their fixation on getting reciprocal trade benefits and concessions from their trading partners in formulating trade and investment policies.
Mr Chau made the remarks at the Europe/East Asia Economic Summit organised by the World Economic Forum which was being held in Singapore between September 20 to 22.
Commenting on the policies needed to shift from confrontation to constructive competition in international trade, and what European and Asian countries could do to help, Mr Chau said governments must look first for domestic causes for domestic problems, rather than blaming their trading partners.
"Those that run persistent budget deficits should not be surprised to find their global trade balances going into the red. Those with chronic high rates of unemployment should look first at rigidities in their labour markets before blaming others for their woes," Mr Chau said.
Mr Chau argued that in formulating their trade and investment policies, governments must recognised that in a globalised economy it was increasingly artificial and irrelevant to economic realities to label a product with a nationality. Rather, it was the opening up of one's market for trade and investment that could bring real economic benefits.
"Governments should recognise that barriers to trade and investment hurt those who impose them first. Open economies benefit from their openness more than anyone else," Mr Chau said.
Commenting on the actions required to consolidate the success of the Uruguay Round (UR), Mr Chau said World Trade Organisation (WTO) members must focus on building up the authority of the WTO.
"This depends above all on the commitment of members to its fundamental principles," he said.
Equally important are for governments to get on rapidly with the unfinished business of the UR, and with the faithful and preferably accelerated implementation of the UR commitments.
Mr Chau regretted that some UR commitments had only been observed in letter, rather than in spirit, and urged for more initiatives to accelerate, not postpone, the removal of tariff and non-tariff barriers.
Mr Chau will return to Hong Kong on Saturday (September 23).
End/Thursday, September 21, 1995
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