This snapshot, taken on 03/06/2007, shows web content selected for preservation by The National Archives. External links, forms and search boxes may not work in archived websites.
Douglas Alexander MP - Former Minister of State for E-Commerce and CompetitivenessSpeech to Confederation of Indian Industries |
 |
|
| (Left DTI 29/5/02) | |
Thank you Rob for those kind words, and my good friend Sanjiv for a quite terrifying introduction. It would be remiss of me not to start by paying tribute to Sir Rob and his staff at the High Commission – there can be no higher tribute than to hear Sanjiv describe you as a constant partner. I am delighted to be here in Delhi on my first overseas visit as Minister for E-Commerce and Competitiveness. I recall with pleasure as you do Sanjiv the meeting I had with the CII delegation at my offices in London in July so it is great to be back amongst friends. A great deal has happened in the world since then. We in Britain are determined that wherever and whenever possible we should try and proceed on the basis of "business as usual". But the aftermath of the tragic events of 11 September do not always make that possible. Hundreds of Indian and British citizens died in New York on 11 September. We owe it to them not to allow the terrorists to deflect us from the path of democracy and improving the economic wellbeing of our citizens. When we met in July you encouraged me to get Tony Blair, the British Prime Minister, to visit India. None of us could foresee that he would pay a visit to India in circumstances that none of us could have imagined. But I do know that Tony Blair is extremely grateful for the support he received from your Prime Minister, and I do know that he hopes to return to India before too long for a much more traditional prime ministerial visit. Much binds our two countries: our history, our democratic traditions, and our language. Your mastery of the English language is one of the reasons that has enabled the Indian ICT industry to make such dramatic progress in recent years. But the English language can cause confusion. I saw the following sign in a lift somewhere in Europe: "The lift is being fixed for the next day. During that time we regret that you will be unbearable". A sign in a cemetery in Moscow gave the following somewhat surprising invitation: "You are welcome to visit the cemetery where famous Russian composers, artists and writers are buried daily except Thursday". The more discerning of you will have noticed that I speak English with a very slight Scottish accent. I was, therefore delighted that when your delegation visited the UK in July you managed to make a visit to Scotland. This is not always the case when our friends visit the UK. Too many people still think that Britain is a place in London rather than the other way around. Though, if you will allow me a slight indiscretion, I am told, strictly off the record, that the High Commissioner recently received an enquiry from one of your well known Chief Ministers who has asked for help in arranging a programme to visit the United Kingdom and Scotland. Devolution has taken place, but not that far. I mentioned a minute ago the importance of our bilateral relationship. When I was preparing for this visit I was struck by both the breadth and depth of that relationship. This has grown even stronger over the past decade as the UK and India have benefited from our shared experiences of economic liberalisation and the benefits that have flowed from the government policies that have taken them forward. You are probably well aware of the facts and figures that support the British Government's commitment to India: The British Council's operation in India is larger than anywhere else in the world. In Pune I saw for myself the third largest British Council library in Asia. Our Department for International Development devotes more resources to India than to any other country in the world. And our High Commission has more trade offices in India than any other market in the world. The tone for good bilateral relationships is often set at the political level. I am delighted to be able to tell you that this morning that I had excellent discussions with your IT Minister, Mr Pramod Mahajan and with Mr Rajiv Pratap Rudy from your Commerce Ministry. You will not be surprised to learn that with Mr Ramachandran I raised an issue close to my heart: the need to ease the high level of import duty on Scotch whiskey. My meeting with Mr Mahajan was particularly interesting to me. Our responsibilities overlap in a number of areas, but particularly IT and telecommunications. Our private sector companies are already doing a great deal together on the IT sector and the British government is doing what it can to further enhance that relationship. My role as a minister is to ensure that the right legislative and economic climate exists to allow companies to compete and prosper. Regulation and not interference is our watchword. You will have seen from my CV [heard in the introduction] that I am also the Minister for Competitiveness. This also involves helping to create the right environment for British companies to prosper in the world economy. Many if not most markets across the world are becoming progressively more sophisticated and their people better educated. All these markets are demanding more innovative and higher quality products and services. The British government has recognised that there is scope for continuing to improve the United Kingdom's competitiveness. Our aim, therefore is to close the performance gap between the UK and other major trading nations. As with the ICT sector, it is not the role of government to interfere in the detail of this, that is for the private sector. It is the role of government in this context to help the private sector to succeed by providing an economic framework that is stable and enterprising. That is why the British government is putting in place policies and programmes to help businesses innovate and succeed, particularly as we face the challenges of the rapid developments in the knowledge drive economy. Mention of the right economic climate brings me to the question of the WTO and the new round of talks that are due to take place in Doha next month. In a recent weeks governments across the world, including India and the United Kingdom, have shown resolve not to let the terrible events of 11 September undermine the global economy. It is more important than ever to resist a slide into protectionism and boost international confidence. We must give support to the multilateral trading system and the WTO at this difficult time. At the WTO Ministerial in Doha next month, 142 countries will have the opportunity to show their commitment to trade liberalisation and a more transparent and inclusive global system. Since 1980 World Trade has grown on average at a rate of 5% a year, double that of the growth in world incomes. Developing countries which have benefited most from growth in world trade and income are those that have opened their borders to trade and followed sustainable domestic economic policies. A new round of WTO talks aimed at further trade liberalisation stands to benefit both developed and developing countries. It will open markets and bring exciting new opportunities for business. It has been estimated that such a round could increase world income by $400bn a year. The WTO provides a rules-based system for world trade negotiations. This approach, where decisions are made by consensus, allows developing countries (who make up two thirds of the WTO membership) to voice their concerns. Multilateral liberalisation has the potential to deliver greater economic gain than bilateral or regional initiatives. And countries that are not already in strong regional blocks are likely to gain proportionally more from a multilateral round. Tariff liberalisation is important but not the whole story. Agreement on clear basic principles for investment and competition will encourage inward investment and help maximise the benefits of it. Global FDI flows rose to 1.3 trillion dollars in 2000, but are expected to drop significantly in 2001. This emphasises the need for countries to adopt or maintain open, stable and predictable investment regimes. Aims that would be underpinned by a WTO investment agreement. It is true that some developing countries face genuine difficulties in implementing commitments made under the agreements from the Uruguay Round. Where developing countries are committed to implementation but face these difficulties, we will support flexibility on deadlines and well-targeted technical assistance to assist with the necessary reforms. We will work with developing countries and development agencies to help build trade policy capacity in both national capitals and in Geneva which will be essential if poorer countries are to protect and promote their interests in a new Trade Round. The UK Government is committed to doubling its support in this area from £15m over the last three years to £30m over the next three years. The trading system must be made more fair, more inclusive and more user friendly for business. The British Government believes that the best way to aim at that is to launch a broad based round which will allow all members of the WTO to bring their interests and concerns to the table. As a member of the EU, that is what we shall press for at the Doha meeting. On Thursday I travel to Bangalore to visit the IT.COM trade fair, where a number of British companies will be taking part in order to look for opportunities in the Indian market. A large number of British companies already have strong links with Indian IT companies. I have already visited some and met representatives of others. I am looking forward to meeting more of them in Bangalore. But I am also looking forward to visiting two of your leading IT companies there: Infosys and Wipro. I mentioned my responsibilities also included the telecommunications sector. And I know that Mr Mahajan has also recently taken over responsibility for this sector. The reasons for the IT and Telecommunications sector being the responsibility of one minister are becoming increasingly obvious. As with the IT sector before it, the telecommunications sector is rapidly globalising, with technology becoming ever quicker. This is leading to telecommunications, IT and broadcasting technologies converging. As a result, data, video and voice traffic is being carried by wire, fibre, radio and internet and they are all being accessed by PC, TV, mobile or fixed telephony. Exciting times indeed, but it is important that we keep pace with these developments. I am keen that we should do even more together on the telecommunications front to enhance what is already happening in the IT sector. I would like to conclude by coming back to our bilateral relationship, but concentrate on the trade element of it. Our trade relationship is healthy. But there is no room for complacency. Last year our bilateral trade grew by some 28% and is now worth $5 billion. But there is still room for improvement. Trade Partners UK and InvestUK are here to help British and Indian companies to develop a mutually beneficial relationship. British companies and Indian companies are investing increasingly in one another's countries. As a principal partner in the Indo British Partnership the CII plays a key role in further developing that relationship. I look forward a continued and growing relationship and hope very much that I will be able to meet you again when the CII delegation comes to the United Kingdom (and Scotland) next summer. I will now be happy to try and answer your questions. |
|
|
|
|
Other speeches by Douglas Alexander MP - Former Minister of State for E-Commerce and Competitiveness
(the following are available from the archive) |
|
