World Trade (Hansard, 13 June 2003)

§ Ms Hewitt

[holding answer 14 May 2003]The Government fully supports the European Union objectives to seek agreement and a mandate at the Fifth WTO Ministerial at Cancun in September to negotiate new WTO agreements on the four Singapore new issues, including a Trade and Investment Agreement. This was confirmed in the Ministerial conference that I attended in Doha and in the Ministerial declaration adopted by consensus at Doha on 14 November 2001.

Developing Countries regularly emphasis their need for increased flows of Foreign Direct Investment (FDI). However, smaller developing countries do not have the resources to negotiate numerous bilateral investment treaties. It is of course up to developing countries that are WTO members to decide if it is in their interests to sign an investment agreement. However we believe that a WTO multilateral investment framework will benefit developing countries not only because it would make negotiations easier but also because it form the basis of a level playing field for all WTO members. This in turn would help developing countries create the low risk, stable and predictable conditions necessary to attract a larger share of global investment flows. Within the overall agreement developing countries would be able to decide in which areas it is most appropriate for them to schedule commitments.

When seeking agreement to launch negotiations in Cancun, we will ensure that the current proposals for these new issues offer a balanced and flexible approach. We want to make sure that any new obligations for WTO members allow them sufficient flexibility to pursue national development objectives. Any final agreement must include appropriate special and differential treatment for developing countries, and must also ensure that technical assistance and capacity building support is offered to help developing countries prepare for the post-Cancun negotiations.