§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville):My right honourable friend the Secretary of State for Trade and Industry (Ms Hewitt) has made the following Written Ministerial Statement.
I am today publishing the White Paper on Trade and Investment, entitled Making Globalisation a Force for Good.
This White Paper is being published at a pivotal moment in the history of the international trade agenda. The European Union and the new European Commissioners taking up their posts this autumn will have a vital role in ensuring the benefits of globalisation are delivered in Europe and beyond, notably through the completion of the WTO Doha development agenda.
The White Paper presents a positive vision of globalisation and Britain's approach to trade and the WTO negotiations, to achieving our objectives of boosting prosperity at home and fighting poverty overseas. It explains how countries benefit as much, if not more, from opening their own markets as from persuading others to open theirs.
The White Paper therefore presents a series of challenges to the European Union. In order to thrive in a globalising world, the EU has to redouble its efforts to improve its own competitiveness. At the same time, it needs to look outwards, placing new policies and regulations in a global context. The EU, together with other developed countries, has to reject the mercantilist approach to trade which prizes only exports and inward investment as opposed to international trade and investment as a whole.
32WSSpecifically, it must tackle the continued harmful effects of the common agricultural policy. The EU and other developed countries should commit to eliminate export subsidies, to make further reductions in trade-distorting domestic support and to reduce agricultural tariff peaks towards the maximum levels allowed for non-agricultural products.
The White Paper describes the changing nature of international trade and investment. International trade is moving away from traditional patterns of imports and exports towards a world of global partnerships and joint ventures. Government services to UK companies have to respond to this. I announced in this House on 1 July the new arrangements which we are setting in place for the Export Credits Guarantee Department. The White Paper also sets out the role of UK Trade and Investment—the Government's lead national provider of international trade and investment support for business.
The White Paper sets out how we think international trade and investment can and should work to reduce poverty in the poorest countries. The need to reduce poverty—working towards the millennium development goals—is a key challenge for this Government.
To fight poverty, the EU and other developed countries must tackle the barriers—both tariffs and non-tariff barriers such as excessively burdensome technical regulations—which currently prevent poor countries selling to us.
The evidence shows that the developing countries that have been more successful in fighting poverty tend to be those that have opened their own markets to international trade. But we have learnt that developing countries need to open their markets in a properly sequenced way as part of a broader plan for their economic development and poverty reduction.
In order to benefit from international trade and investment, the poorest countries need to put in place a full range of complementary policies. We need to work with these countries to help them to tackle the key challenges: health, education, the transport and communications infrastructure, good governance and effective social protection.
This White Paper has been produced following widespread consultation with interested parties in the UK. We are grateful to everyone who has helped us and we look forward to continuing a dialogue on these issues.
In the mean time I look forward to working with ministerial colleagues in other countries—both inside and outside the EU—to win the argument against protectionism and mercantilism in international trade. We will take the opportunity of the UK presidencies of the EU and of the G8 next year to take this forward.
I am confident that this White Paper will contribute to pursuing the UK's objectives in the area of international trade and investment.