NO.084

AUSTRALIA EMPHASISES IMPORTANCE OF SUCCESSFUL TRADE TALKS AT IMF/WORLD BANK

MEETINGS

A central theme at the IMF/World Bank Ministerial meetings in Dubai,

UAE is the urgent need for the speedy resumption of the Doha trade round.

A good Doha outcome is seen as vital for ensuring sustained world growth

and making meaningful inroads into reducing poverty.

Australia emphasised that a key contribution the IMF and World Bank could

make was to actively promote and demonstrate through its research the

economic benefits of trade liberalisation. It is important not to lose

sight of the big issue – the very real benefits that can be gained through

increased trade whilst dealing with the detail of intense trade negotiations.

It is particularly unfortunate that the trade negotiations at Cancun

were conducted in a corrosive “win-lose” atmosphere. The central

point is that all countries stand to gain from trade liberalisation and

that countries that reduce tariffs even without matching responses can

obtain economic benefits from opening their economies. This is the experience

of Australia.

There was agreement at the meetings that while the global economy was

gaining momentum, there were significant risks associated with the unbalanced

nature of the recovery and the deterioration in the fiscal position of

the major economies.

Australia emphasised that the most effective way of promoting the development

of the low-income countries was through good domestic policies and institutions

and an open trading environment. Success with the Doha round would make

a major contribution to nurturing the recovery.

Ministers at the meetings also reaffirmed support for a multilateral

effort to assist Iraq. Australia has received special thanks from Paul

Bremer of the Coalition Provisional Authority in Iraq for its contribution

to this task, in particular the work of Australian Treasury officials

in preparing the first public budget for Iraq since 1979 and developing

the tax structure for Iraq.

DUBAI

22 September 2003

Contact: Niki Savva

02 6277 7340