§ 8. Mr. FlightTo ask the Secretary of State for International Development what representations she has received about the reduction of tariff and non-tariff barriers in developing countries. [8363]
§ Clare ShortDeveloping countries consistently stress the importance that they attach to improved access to European Union markets. That is a priority for the Government. We have made a start by agreeing to extend access to EU markets to the nine least developed countries which do not benefit from the Lomé convention.
§ Mr. FlightLooking at the other side of the coin, it is observable that the least successful developing economies tend to have the most closed external tariff regimes. Are the Government keeping an effective register of the tariff regimes and non-tariff barriers to trade of developing economies? Are they also collaborating with both the International Monetary Fund and the World bank in our aid policy to encourage more open trade policies for those economies which are most in need?
§ Clare ShortThe hon. Gentleman is absolutely right. The thinking on trade in past eras was that weak economies had to protect themselves with high tariffs, but we have seen that that did not lead to development in most of the neediest countries, especially those in sub-Saharan Africa. The evidence is clear that it is beneficial to those economies to open up their markets to trade, but in a phased way which gives them a chance to develop their own capacity.
That theme will be crucial to the thinking that goes into the Lomé renegotiation—a phasing of opening up in a way that enables the poorest countries to develop the capacity to draw in investment and strengthen their own base. Getting that right is one of the major issues of the next period.