Delegation from:
The League of Arab States
Represented by:
New Mexico State University
Position Paper for the World Trade Organization
The League of Arab States (LAS) is an active member of this the World Trade Organization (WTO), as are twelve
of its twenty-two member states: Bahrain, Djibouti, Egypt, Jordan, Kuwait, Mauritania, Morocco, Omar, Qatar,
Saudi Arabia, United Arab Emirates (UAE), and Tunisia. The WTO is committed to the ideals of fair and
liberalized trade, as well as global forums for peaceful trade transactions. The LAS is committed to furthering
trade within its Member States and with the help of the WTO the LAS believes the Arab world could be a great
contributor in the world-trade arena.
I. Agricultural Sector Negotiations
Agricultural trade plays an important role in the economy of many LAS member states, including Egypt, Lebanon,
Yemen, and Jordan. The members of the WTO are committed to agricultural trade following the “three pillars” of
the Doha Declaration: market access, exports subsidies, and domestic support. The Doha Work Program is an
essential effort by all developing countries to engage in the global trading system. Though agriculture served as the
primary sector for most countries during early stages of their economic development, industrialization and
globalization have led many countries, especially developed countries, to redirect their focus from agriculture to
other industrial sectors, especially manufacturing, services, and technology. This shift from agriculture-based
industry has generated agricultural trade deficits in many countries. The LAS feels very strongly about the need of
sensitivity in the area of agricultural trade, as this significant shift away from agriculture as the primary economic
sector of most developed states threats to overshadow the concerns of those states whose economies are still driven
by economic production.
In a paper entitled A Dialogue on Globalization, the LAS declared that agriculture trade is a crucial issue for any
progress in the current trade round. During a speech at the first World Arab Competitiveness Meeting on the Doha
Development agenda, WTO Director General Supachai Panitchpakdi declared the need for greater participation of
Arab countries in the multilateral trading system, recognizing agriculture as a vital sector to the overall success of
the negotiations. On November 30th, 2005 the Arab Ministerial meeting of the United Nations Economic and Social
Commission for Western Asia was held with the purpose of preparing for the Sixth Ministerial Conference of the
WTO, held in Hong Kong. Arab Ministers of Trade called for the fulfillment of commitments emanating from the
Doha Work Program with respect to development needs and interests. In this regard the LAS supports the
acceleration of the negotiations on agriculture and cotton. The LAS also reaffirms the Amman Declaration and the
declaration of the African Union trade ministers regarding domestic support, export subsidies, market access, special
and differential treatment, as well as negotiations on cotton.
The LAS proposes that Arab states continue throughout the foreseeable future at current levels of agriculture
exports, while promoting an increase in the importance of developing export industries in the services and
manufacturing sectors. Furthermore, the LAS is greatly concerned with the disadvantage Arab countries currently
have in the agricultural sector when competing with wealthy countries. The LAS firmly believes that an important
way to solve this issue is to increase and maintain a world-wide adequate level of agricultural assistance to countries
and member states involved in agriculture production. Such a system should avoid possible rising prices for
agricultural goods in world markets, which would otherwise create additional financial problems within Arab states
with regards to agriculture negotiations. Moreover, Arab Ministers strongly defend the request of Palestine to attend
future Ministerial Conferences as an observer.
II. Advancing WTO Transparency
From its inception, the WTO has been faced with transparency as an issue of debate and high scrutiny among its
members. After the failure of the WTO conference in Seattle, WA in 1999, the LAS believes along with much of the
world that WTO objectives are in great need of further clarity, noting that the current lack of clarity causes much
strife and discontent for many of the world’s citizens. Those LAS member states who have also participated in
recent WTO negotiations feel very strongly about the need for added clarity and transparency in the organization’s
dealings, and thus the LAS also supports efforts that seek to make WTO infrastructure more transparent. The LAS
also encourages the WTO to continue taking steps in the direction of an increase in informational workshops for
non-WTO members to help explain the complexities of the WTO inner-workings. The LAS advocates increasing the
technical support provided by the WTO for less-developed countries for research and development. On November
30th, 2005, during the United Nations Economic and Social Commission its ministerial conference for Western Asia,
the Arab Ministers of trade emphasized the need for the negotiations to be transparent, and to ensure participation of
all parties in the negotiating process.
In a speech to the WTO General Assembly, the Bahrainian Minister of Commerce and Industry indicated that the
Arab world seeks a comprehensive review of the Uruguay Round negotiations to include implementation of
additional transparency. The LAS calls upon all Arab States to assist the WTO by committing to improving open
negotiations within the Arab world, by adhering to the principles set down in the Greater Arab Free Trade
Agreement (GAFTA). In addition to increased cooperation between Arab states, The LAS also encourages its
members to utilize the tools such as technical support, dispute forums, and the forums provided for trade
negotiations, the WTO has put at our disposal. However, the LAS recognizes that external transparency is
something that is hard to keep in balance without compromising the confidentiality required of sensitive trade
negotiations, especially when dealing with key issues such as computer technologies and the petroleum industry.
III. Invigorating the Trade in Services Mandate
The LAS recognizes that there is an increasing need to improve upon the system of rules and regulations that are in
place in order to ensure that international trade operations occur effectively. The LAS’ main concerns involve:
ensuring fair and legal trading processes to all member states, promoting an increase in economic activity through
guaranteed policy bindings, and encouraging development and trade while achieving trade liberalization. The LAS
firmly believes that cautious liberalization of trade is a vital part of increasing the economic vitality of all of both its
member states in the WTO and on international trade in general.
Arab leaders declared at the UN Economic and Social Commission in 2005 that Arab states are committed to
achieving tangible progress in the negotiations on services through progressive liberalization and completion of the
rules laid down in the General Agreement on Trade in Services (GATS). Furthermore, the LAS reaffirms the
Amman Declaration and the importance attached by the Arab states to strengthening the process of coordination and
cooperation between different regional and geographical groups, especially those of developing countries, and the
willingness of Arab groups to support such cooperation and coordination with a view of achieving significant
benefits for those countries. In addition, the LAS recommends significant changes to GATS, in order to provide for
the increased participation of developing countries in international trade in services, and to address the needs of
small exporters of services, such as marketing, insurance, and banking services in Arab states.
The LAS as well as its Member States have made significant progress in negotiating increased participation in
international trade. The LAS calls for renewed commitment to the Arab Free Trade Area, which will facilitate
economic development and regional integration of trade vital to the Arab trade arena. Therefore, The LAS calls
upon all member states to ensure that the revised offers made cover the service sectors of interest developing
countries, especially Mode 4 in GATS.