HC Deb 11 November 1998 vol 319 cc354-6
3. Ms Tess Kingham (Gloucester)

What steps Her Majesty's Government are taking to assist the Governments of developing countries with their approaches to the World Trade Organisation in the run up to the next round of trade negotiations. [57802]

The Secretary of State for International Development (Clare Short)

The Government are working with a wide range of organisations, including the United Nations Conference on Trade and Development, the World bank and the Commonwealth secretariat, to help to build the capacity of developing countries to prepare for, and participate effectively in, future trade negotiations. It is important for the next trade round that there is agreement and that the developing countries have the capacity to represent their interests. We are helping in the analysis of key trade policy issues and in building policy and negotiating capacity in developing countries.

Ms Kingham

I am encouraged by that reply. Various NGOs, such as War on Want, and several parliamentarians from the developing world have pointed out to me that there is no level playing field in the WTO negotiations. Large players such as the United States and the United Kingdom have ample resources—financial, personnel and research—whereas developing countries often do not. Because they cannot negotiate at the same level, they are disadvantaged.

Our leading player in the WTO negotiations is the Department of Trade and Industry. Have discussions taken place with the DTI or, if not, will my right hon. Friend consider them, to see whether we can build up the capacity of developing nations during the next round of talks?

Clare Short

My hon. Friend raises an important issue. One of the enhanced capacities of my Department—since we became a separate Department—is trade, investment agreement and agricultural reform expertise. My hon. Friend will know that, although there is not a level playing field in the World Trade Organisation, the situation is a lot better than it used to be. It is now a rules-based organisation and the majority of its members are developing countries. If those countries have the capacity to analyse their interests and represent them, they can be a powerful force. That is why we are conducting the training to which I referred in my answer to my hon. Friend's main question.

We are also exploring with others the possibility of establishing a legal centre attached to the World Trade Organisation which would assist very poor countries in exerting their rights under that organisation. The EC is considering an alternative proposal. We have strong relationships with the Department of Trade and Industry, and are taking forward those matters in order to ensure that developing countries secure their rights in the international trading system.

Mr. Ian Bruce (South Dorset)

Can the Secretary of State tell the House what she intends to do to try to help countries that have been affected by the hurricane, such as Honduras, to get their trade back into sensible order? I have written to the Minister about organisations that are working on the ground in Honduras, such as Casa Alianza, which could provide assistance to street children and others. Instead of workers and resources being rushed in, those organisations could receive money and help to rebuild that country following the terrible hurricane.

Clare Short

Honduras is a heavily indebted, poor country, but it had such a good trade performance that it did not qualify for HIPC funding. Sadly, it will now qualify for that assistance because of the deterioration in its economy. There are three phases of assistance. First, we must try to get people out of the mud and stop disease and hunger. Secondly, over a few months, we will start to provide temporary shelter. When things calm down, a mission will go from my Department to central America to offer assistance. Thirdly, there will be long-term reconstruction.

Before we came into the Chamber, the hon. Gentleman gave me some documents about the street children project with which he has been involved. I know that he does much work in that area. I shall consider what we know and what we can do to provide assistance.