World Business Leaders for Growth Statement on the Results of the WTO Ministerial Meeting in Hong Kong

Washington, D.C. - On Sunday, the WTO Hong Kong Ministerial meeting came to a close. The Ministers succeeded in avoiding the failures of Cancun, but were unable to reach agreement on the frameworks and modalities for the agriculture and industrial tariff negotiations that were among the principal objectives for Hong Kong. We are still in the game, but with a long run ahead of us. A significant amount of work that should have been completed in Hong Kong remains to be done in the year ahead. After the failure of Cancun, Hong Kong at least brought results, but with only one year to go until the 2006 deadline for the close of negotiations, WTO Members must remember that three Ministerial strikes may mean we are out.

The gaps between the positions of key WTO Member countries remain large. When negotiations continue in the months to come, WTO Members must keep in mind that any further delays or compromises on ambition in getting to a final Doha Round agreement will put worldwide economic growth in developed and developing countries at risk and may lead to the ultimate failure of this Round. "Three strikes and you're out" is a rule that clearly applies here. After Cancun and Hong Kong, next year truly is our last best chance to achieve the promise of Doha.

In the next few months, WTO Members and negotiators must focus on achieving real results in each of the key negotiating areas. While some initial results have been achieved in trade facilitation negotiations, tremendous work remains in agriculture, non-agricultural market access, and services. On industrial goods, WTO Members must agree to substantially reduce remaining barriers on all industrial goods, and they should support zero duties in sectors that wish to see tariffs fully eliminated. On services, time is running out and all Members share a responsibility to table proposals and advance negotiations. Members must set out to achieve commercially meaningful progress, including the application of agreed upon benchmarks in certain areas, and a focus on key services sectors that are most ripe for liberalization.

All WTO members, developed and developing countries alike, share a responsibility to make the Doha Round a success. They need to show vision and leadership and a commitment to make political sacrifices where needed. The promise of Doha is one of continued future worldwide growth and economic well being. Failure and further delay or reduced ambitions are results that neither the developed nor the developing world can afford. The coming months present a last chance to save the Round and keep the promise of Doha alive. As World Business Leaders for Growth, we are ready to work hard to support the negotiation of an ambitious 2006 agreement that brings the Doha Round to a truly successful closing. The time for empty words is over. Now is the time for negotiators and all WTO Members to step up to the challenges and successfully deliver on the promise of Doha.

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World Business Leaders for Growth is a coalition of CEO -led business groups that joined forces because as business leaders we know first hand how important trade and investment liberalization is to sustained economic growth for nations at all stages of development. In our policy statement "Advancing the Promise of Doha," we highlighted the benefits of trade liberalization and outlined the key elements needed for successful conclusion of the Doha Round. Our members include the Business Council of Australia, the Business Roundtable, the Canadian Council of Chief Executives, the Consejo Mexicano de Hombres de Negocios, the European Roundtable of Industrialists, and the Nippon Keidanren.

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