China on Wednesday said abandoning multilateralism in trade talks were shortsighted and irresponsible, urging members of the world's major trade body to reinforce the Multilateral Trading System (MTS) and highlight its role in addressing development issues around the world.
"The world needs to free itself from the bindings of short term interest and pursue goals that will benefit both the developed and developing countries," Chinese Minister of Commerce Gao Hucheng said during a plenary session of the 10th Ministerial Meeting of the World Trade Organization (WTO) being held in the Kenyan capital Nairobi.
Gao said that the MTS is the choice of history because it has been the main channel for solving trade disputes over the years. "When we face difficulties in trade negotiations, talks of giving up on them are not only short-sighted, but also irresponsible, and will lead to severe retrogression to the multilateral trading system," the minister said.
He said that the MTS is the best mechanism to fight trade protectionism as well as advance free trade. "Through consensus, it has managed to reduce on average the import tariffs by 15 percent," he said. The Chinese minister noted that the MTS provides a framework for transparency in global trade.
In addition, the MTS has made significant contribution to promoting world peace. "The MTS should therefore be solidified and is not replaceable," he stated. According to him, the biggest challenge facing the MTS is the emergence of the regional and other mega trade deals.
The commerce minister stated that the proliferation of many regional trade agreements could lead to an increase in trade costs which is not in the interest of any nation. Gao also urged the WTO members to conclude the Doha Development Round that began in 2001.
"Since its launch 14 years ago, it has been able to achieve multiple outcomes and is a catalyst to growth, especially for the least developed countries," he said.
Gao urged WTO members to remain committed, show more political will and take flexible approaches to the Doha round of talks due to the numerous benefits it will bring. The WTO was founded 20 years ago and its members currently account for 98 percent of global trade.
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