Vatican Releases Guidelines for WTO Summit
In a Nov. 2005 statement on the upcoming WTO ministerial in Hong Kong December 13-18, 2005, the Vatican wrote, “trade rules should be aligned with a wider commitment to human development and to the lifting of living standards of the poor.” The statement went on to outline several key themes that should be a focus of the upcoming meetings in order to ensure pro-poor outcomes.
1. Unequal trading partners should have different requirements.
“Nations involved in the international trade system are far from equal in their economic and human development conditions,” the statement from the Vatican read. Therefore, “Special and Differential Treatment provisions should allow flexibility to developing countries for joining in, or opting out, of proposed rules of the WTO.” It is particularly important that developing countries have this flexibility so that they can pursue their development needs and make social services and basic needs, such as food, health, education, employment, environment, etc. a priority, the Vatican said.
2. Rich countries are obliged to help poor countries develop.
Because developing countries are already far behind in their development, rich countries should “provide developing countries with the finances needed” to improve their competitiveness on the world market, which reflects Catholic Social Teaching’s Option for the Poor. Rich countries should also help provide any technical assistance needed for developing countries to become more competitive in trade.
3. Agricultural agreements will be the “moral and economic litmus test” for a successful meeting.
In its statement, the Vatican called agriculture the “moral and economic litmus test” for a successful meeting because it is “not only crucial for the lives of so many small farmers and their families, but also for the wider economic growth and sustainable development in developing countries.”
Therefore, the Vatican believes:
A. Rich countries must reduce the high tariff barriers that prevent many agricultural products from developing countries from entering into rich countries. The Least Developed Countries (LDCs) should be able to export their products to rich countries without any tariffs or restrictions.
B. Developing countries should “not be required to make commitments incompatible with their economic status and development needs.”
C. Developing countries should be given assistance to meet any new health and security restrictions that are placed on products.
D. Agriculture should be given more support in developing countries, and less in developed countries. [Rich countries often grant billions of dollars of farm subsidies to large domestic producers, which allows agricultural corporations in rich countries to produce cheaply. This puts farmers from developing countries at a disadvantage.]
On Nov. 24, 2005, Pope Benedict XVI expressed concerns about small, rural farmers: “It must not be forgotten that the vulnerability of rural areas has significant repercussions on the subsistence of small farmers and their families if they are denied access to the market,” he said. He asked for “solidarity” in the WTO meetings and for special protection via safeguards for poor, rural families and particularly, rural women and children. Benedict XVI also pointed to “the importance of helping native communities, all too often subjected to undue appropriations aimed at profit.”
4. Developing countries need more access to higher value trade.
One problem that keeps developing countries poor, the Vatican statement acknowledged, is that their exports are often cheap, low-value products. The developing world needs help in increasing production of goods to sell that are higher-value, finished products and will bring more income to their countries. Therefore, “in accord with the duty of solidarity, WTO Member States, especially the developed countries, should promote the transfer of technology and knowledge to the weak economies in order to increase their competitiveness in the world markets,” the Vatican statement read. The developed countries also should not force developing countries to reduce their tariffs on non-agricultural goods from developed countries too quickly.
5. Developing countries need less restrictions on immigration; Rich countries should not force them to change their service market too quickly.
Rich countries often apply strict laws to prevent semi-skilled and skilled workers from poor countries from entering their countries. However, developing countries could benefit from greater freedom of movement for workers.
Secondly, in order “to ensure that their own development priorities and strategies are advanced,” developing countries should “be able to exclude agreed upon service sectors from the negotiations.” For example, water, education and health are often viewed as public goods, provided by the government.
[Forcing poor countries to allow private companies to run these services could make these basic services more expensive for large parts of the population.] Poor countries, the Vatican statement said, should be allowed to focus above all on “the interest of the well-being of its citizens”.
6. The Vatican’s Vision for the WTO
In their statement, the Vatican proclaimed that “justice should be the first virtue of any institution” meaning, for example, “equal rights of benefiting from trade to all Member States and addressing the economic and social inequalities to the greater well-being of the least developed.” In order for this to happen, countries need to work together to promote the interests of the poor above all. “What is needed is an abandonment of special interests that disregard the common good. Special interests need to be overcome by a global solidarity, where the rich and more powerful States recognize and assume responsibility towards the destiny of those who are poor and weak,” the Vatican concluded.
Sources: “Reflections on the Occasion of the Sixth Ministerial Conference of the World Trade Organization, Hong Kong, 13-18 December 2005.” The Holy See. Nov. 2005; “Pope Urges Solidarity as Trade Summit Nears.” Zenit.org. Nov. 24, 2005
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Discussion Questions
1. Why are the poor often the “losers” when “one-size-fits-all” rules are made to regulate international trade?
2. If you were a poor farmer in a developing country, what options would you have in making sure your voice is heard at the upcoming WTO ministerial?
3. At the beginning of the statement, the Vatican stated that, above all, trade rules should be focused on lifting the poor into a better situation. How do the other recommendations in its document support this main goal? How do they suggest changing trade rules to better assist the poor?
4. When making international rules to govern trade, what Catholic Social Teaching principles should help guide decision makers?
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Prayer for the WTO Hong Kong Ministerial Dec. 13-18, 2005
God of the all,
We pray, Lord Jesus:
Be present to the decision makers. The fate of many are in their hands.
Be present to governments of developed countries. Engrain the “option for the poor” in their minds.
Be present to governments of developing countries. Help them to ensure rights for the poor in their countries.
Be present to civil society and faith groups. Make their voices heard at the table of power.
Be present to women and men who own small farms. Give them hope for their futures.
Be present to us. Help us focus on trade as an important way to help those in poverty. Give us a strong voice for justice.
Holy Spirit,
Breathe your presence in to the WTO Hong Kong Meeting, so that the rights of the poor and vulnerable can be respected above all. Amen.
Tags: Anti-poverty strategies