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Open letter on Trade Policy by Rt Hon Ian McCartney MP, Minister for Trade, Investment and Foreign Affairs July 2006

I am delighted to have taken up the role of UK Minister for Trade, Investment and Foreign Affairs, at a pivotal time for international trade policy.

I wanted to write to give you a clear picture of the Government's approach towards trade policy, setting it in the wider international context, as well as updating you on current priorities.  I intend this to be the first of a series of open letters on topical trade issues.

It is appropriate that this first letter should appear so soon after this year's G8 Summit in St Petersburg, and one year after the 2005 Summit in Gleneagles.  Both summits called for an ambitious pro-development outcome to the Doha Development Agenda (DDA) negotiations to reform the world trading system.

Under the Prime Minister's leadership the G8 countries agreed to massive debt cancellation and $50bn extra aid for the world's poorest countries.  This has allowed some of those countries to spend their money on paying teachers, doctors and nurses their wages - rather than interest payments to "first world" banks.

But progress on improving the international trade rules - the third pillar in tackling poverty around the world - has proved more difficult, despite the best efforts of the UK Government.  Since Gleneagles we have consistently made the case for a deal that will give a sustained boost to the global economy, international development and lift millions out of poverty.  We have worked hard within the EU, particularly during our Presidency, and beyond to persuade others of the economic and moral case for a deal which:

• creates a fairer and freer trading trading system by providing all WTO Members, in particular developing countries, real new market access and secures significant reductions or elimination of unfair subsidies;
• allows developing countries to pace trade reforms in line with their development and poverty reduction strategies;
• is underpinned by significant support for the poorest countries to enable them to take advantage of increased trade opportunities by, for example, building local capacity and improving infrastructure; and
• increases choice and value for money for UK and EU consumers, as they benefit from competitively priced and fair trade products.

Such a deal should also provide new opportunities for UK and EU businesses across the world, both in terms of exports and access to competitive imports.

Time is running out if we are to secure a successful outcome before the US President's "Fast Track" authority (which allows him to present the agreement as a whole to Congress) expires.

At the G8 Summit in St Petersburg earlier this week, world leaders (including several from the developing world) gave strong political backing to a final push to try to secure a positive outcome before the middle of August.  I continue to believe that with political will, imagination and flexibility this should be possible.  The Prime Minister, the Secretary of State Alistair Darling, I and other colleagues in the Government will do all we can to help secure a deal which meets our objectives.  Failure would not only be a missed opportunity to boost the global economy; it would also be a serious blow to the credibility of the multilateral trading system, and raise the risk of a significant upsurge in protectionism.

I look forward to reporting on progress. I am also keen to promote a healthy dialogue with the wide range of people and organisations who take an interest in trade, including development and other NGOs, business organisations, trade unions, consumer groups and many members of the general public.

I take a great interest in the letters I receive on trade policy. I am also keen to hear views in person through the Trade Policy Consultative Forum, which is next meeting on Monday 24 July. You can read more about the Forum on the DTI website link below:
Trade Policy Consultative Forum