WORLD TRADE WT/L/244
28October 1997
ORGANIZATION(97-4722)
EDINBURGH COMMONWEALTH ECONOMIC DECLARATION
ThefollowingDeclaration,dated25October1997,oftheCommonwealthHeadsofGovernment
Meeting heldinEdinburgh, iscirculated attherequest ofthePermanent Mission oftheUnited Kingdom.
_______________
Promoting Shared Prosperity
Edinburgh Commonwealth Economic Declaration
1. Today 'sglobalized world poses bothopportunities andchallenges. Expanding trade and
investment flows, driven bynewtechnologies andthespread ofmarket forces, haveemerged asengines
ofgrowth. Atthesame time, notallcountries havebenefitted equally from theglobalization ofthe
world economy, andasignificant number arethreatened withmarginalization. Globalization therefore
needs tobecarefully managed tomeettherisksinherent intheprocess.
2. Webelieve thatworld peace, security andsocial stability cannot beachieved inconditions of
deeppoverty andgrowing inequality. Special measures areneeded tocorrect this,andinparticular
tohelptheintegration ofcountries, especially small states andtheLeast Developed Countries, inthe
global economy andaddress theuneven development thatthreatens many countries. Toredress these
problems, webelieve thefollowing broad principled approaches should bepursued:
- theworld economy should begeared towards promoting universal growth andprosperity for
all;
- there must beeffective participation byallcountries ineconomic decision-making inkey
international fora;
- theremoval ofobstacles thatprevent developing countries playing theirfullpartinshaping
theevolution oftheglobal economy; and
- international regimes affecting economic relations among nations should provide benefits for
all.
3. Wealsobelieve thatcommitment tomarket principles, openness tointernational trade and
investment, thedevelopment ofhuman andphysical resources, gender equality, andgoodgovernance
andpoliticalstabilityremainmajorcomponentsofeconomicandsocialprogress;andthatwealthcreation
requires partnerships between governments andtheprivate sector. TheCommonwealth, withitsshared
traditions andglobal reach, isuniquely placed toplayakeyroleinpromoting ashared prosperity
amongst itsmembers.WT/L/244
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Trade
4. Wewelcome theprogress made inrecent years indismantling trade barriers andestablishing
arule-based international trading system. However, significant barriers totradeingoods andservices
remain, andthebenefits oftheexpansion ofworld trade arestillunevenly shared. Wehavetherefore
resolved to:
- Support expansion ofduty-free market access withflexible rules oforigin fortheexports of
theLeast Developed Countries; work forasuccessor arrangement totheLomé Convention
which, without prejudice totheoutcome, gives theACPcountries, particularly small states,
adequate transitional arrangements; andinparticular, encourage theEUandWTO Members
toaccommodate thelegitimate interests oftheACP banana producers andfacilitate the
diversification oftheireconomies;
- strengthenthemultilateraltradingsystem,withintheframeworkoftheWorldTradeOrganization
(WTO), inorder toprevent regional arrangements frombecoming exclusive trading blocs and
provide forthegreatest flowofinternational trade onthebasisofagreed ruleswhich arefair
andequitable; andsupport thefullimplementation oftheUruguay Round Agreements;
- oppose theintroduction ofnewnon-tariff barriers andtheuseofunilateral actions andbilateral
pressures which runcounter tothespirit oftheWTO;
- maintain themomentum towards freertrade through multilateral negotiations, asoutlined in
thebuilt-in agenda andother issues under discussion intheWTO, including progress on
agriculture andfinancial andother services, taking intoaccount theinterests ofallcountries
atdifferent stages ofdevelopment; and
- continue tosupport regional arrangements, consistent withmultilateral liberalization under
theWTO, which promote theeconomic growth oftheirmembers.
Specifically wehavedecided to:
- establish aTrade andInvestment Access Facility under theCommonwealth umbrella toassist
developing countries withtheprocess ofadjusting to,andtaking advantage of,theopportunities
ofglobalization. ThenewFacility willprovide technical assistance tohelpcountries identify
andmanage thepotential economic andsocial impacts oftrade ingoods andservices and
investment liberalization; identify newsources ofrevenue andmarket opportunities; andhelp
countries fulfil WTO requirements. TheFacility willbecoordinated withtheproposed
WTO/UNCTAD/ITC integrated framework fortrade-related technical assistance;
- explore thescope fordeepening trade relationships among Commonwealth members, and
therefore request theSecretariat toreport tous,before the1999 CHOGM, onthescope and
possible systems andmechanisms forimproving tradeamong members oftheCommonwealth,
inwayswhich areconsistent withtheprovisions oftheWTO andregional trading arrangements;
- launch aCommonwealth action programme toremove administrative obstacles totrade by
simplifying andharmonizing customs procedures, disseminating information, andeliminating
bureaucratic andtechnical hurdles;
- examine thegrowing importance of'electronic commerce 'intrade andthedevelopmental
implications oftheuseofcyberspace forcommercial andfinancial transactions; andWT/L/244
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- promote Commonwealth Export Training Centres formanagement training inexporting and
other trade-related skills.
5. Wewelcome therecommendations ofthefirsteverCommonwealth Business Forum heldin
London on22-23 October 1997. Webelieve thattheForum canbeanimportant linkbetween the
private andpublic sectors andfoster vibrant private sector business links. Itshould continue tomeet
every twoyears. Wearealsoarranging tosetupaBusiness Council, under Lord Cairns and
Mr.Cyril Ramaphosa, made upofasmall group ofmajor private sector leaders fromdifferent regions
oftheCommonwealth, aswellasothermechanisms, inconsultation withtheCommonwealth Secretary-
General, toencourage greater private sector involvement inthepromotion oftrade andinvestment.
Inthiscontext, wealsoagree tosupport andstrengthen thework oftheCommonwealth Partnership
forTechnology Management inthiscontext.
Investment
6. Webelieve thatinvestment flows canbring substantial benefits, andthatsound macro-economic
policies andfinancial systems, strong regulatory andsupervisory frameworks andpolitical stability
areessential inencouraging inward flows. Atthesametime, werecognize thatvolatility insuchflows
cangreatly complicate economic management. They alsoremain concentrated inafewregions and
countries. Weagree to:
- encourageinvestmentflowsbyestablishingopenandtransparentinvestmentregimesforbusiness
activity, andbysimplifying bureaucratic procedures andregulations;
- encourage capital exporting countries, where itisprudent, toconsider relaxing restrictions
oninstitutional investors toenable them totakeadvantage ofportfolio diversification
opportunities inemerging andnewmarkets;
- support thedevelopment ofregional andmultilateral arrangements andinfrastructure thattake
intoaccount therealities ofdeveloping countries, andthatcanhelptofacilitate private capital
flows;
- study thelessons tobelearned fromrecent developments incurrency markets andinparticular
onhowcountries canbeprotected fromthedestabilizing effects ofmarket volatility, including
those resulting fromspeculative activities, andhowtheeffectiveness ofexisting earlywarning
systems canbeimproved; and
- support strengthening ofglobal andregional mechanisms tohelpcountries handle capital market
volatility.
Specifically wehavedecided to:
- endorse therecommendations oftheCommonwealth working group ontheroleofnational
andinternational policies inpromoting private capital flows, andcallfortherapid finalization
ofaCommonwealth Code ofGood Practice fornational policies thatattract andsustain private
capital flows;
- welcome thelaunch oftheAfrica Fund, theKulaFund forthePacific, andtheSouth Asia
Regional Fund under theaegis oftheCommonwealth Private Investment Initiative (CPII);
andcallfortheextension ofCPIItoembrace addition regions andsectors;WT/L/244
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- launch aCommonwealth investment promotion programme which will:helpestablish enabling
environmentsforattractingprivateinvestmentflows;encouragethecreationofnewmechanisms
forriskinsurance andguarantees; provide assistance forstrengthening supervisory and
regulatory frameworks; andimprove theflowofinformation oninvestment opportunities;
and
- encourage "smart partnerships" involving theprivate andpublic sectors.
Development
7. Wewelcome theimproving growth prospects inmany partsofthedeveloping world, including
evidence ofrecovery inSub-Saharan Africa. Atthesametime, weremain concerned atthepersistence
ofextreme poverty inmany countries andthelackofcapacity toreduce it.Wehavetherefore agreed
to:
- work tohalve theproportion ofpeople living inextreme poverty bytheyear2015;
- seektoreverse thedecline inOfficial Development Assistance (ODA) flows, recognizing the
roleofODA asanessential instrument ofpartnership fordevelopment andpoverty reduction
indeveloping countries, particularly theLeast Developed Countries andsmall states, andfor
helping tocreate theconditions forincreased trade andinvestment, including skills and
infrastructure development;
- work towards acomprehensive solution ofthedebtproblem, andpursue vigorously therapid
implementation oftheHighly Indebted Poor Countries (HIPC) Initiative, inlinewiththe
Mauritius Mandate, which hastheaimofenabling HIPC countries tohaveembarked bythe
year2000onsecuring asustainable exitfromtheirdebtburden; aswellasconsider extending
suchrelief toother developing countries, including small states, insimilar circumstances;
and
- promote theroleofmicro-credit schemes inreducing poverty through increased assistance
from theinternational community.
8. Wewelcome theReport oftheChairman oftheCommonwealth Ministerial Group onSmall
States anditsrecommendations foraction based ontheCommonwealth Report, Afuture forSmall
States: Overcoming Vulnerability. Inparticular, weencourage international financial institutions to
review theirgraduation policies, consider broader criteria covering thespecial vulnerabilities oftheir
smaller members, andestablish ataskforce toaddress theconcerns ofsmall states. Weendorse the
recommendations tosetupasmall ministerial group todiscuss small states'concerns withmajor
multilateral agencies andtoreport togovernments ontheoutcome assoonaspossible.
9. Weunderscore theimportance ofgoodgovernance including increased openness ineconomic
decision-making andtheelimination ofcorruption through greater transparency, accountability and
theapplication oftheruleoflawineconomic, financial andother spheres ofactivity. Weendorse
therequest byourFinance Ministers totheCommonwealth Secretary-General toestablish anexpert
group towork onthese issues.
Environment
10. Wehaveashared interest inprotecting ourenvironment, aglobal resource inwhich allcountries
haveastake. Thecosts ofprotecting itshould beborne inaccordance withshared anddifferentiated
responsibilities. Itistherefore incumbent ontheglobal community tostrengthen cooperation toachieveWT/L/244
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sustainable development, sothatwecanprotect ourplanet forfuture generations. Inparticular, we
looktoasuccessful outcome attheKyoto Conference ofParties totheUNConvention onClimate
Change, involving realistic andachievable goals, significant reductions ingreenhouse gasemissions
andrecognition thatweallneedtoplayarole.
Wehavetherefore agreed to:
- endorse theProgramme fortheFurther Implementation ofAgenda 21asagreed bythisyear's
UNGeneral Assembly Special Session, particularly inrespect offreshwater, forest resources
andthetransfer ofenvironmentally sound technologies todeveloping countries. Werecognize
thatnewandadditional resources willbeneeded toimplement theprogrammes andwilluse
ourbestendeavours toprovide these;
- underline theimportance ofasuccessful outcome atKyoto, withallcountries playing their
partwithin theBerlin Mandate, withdeveloped countries pursuing vigorously anoutcome that
would produce significant reductions intheirgreenhouse gasemissions through theadoption
ofaprotocol orother legalinstrument;
- callontheKyoto Conference torecognize that,afterKyoto, allcountries willneedtoplay
theirpartbypursuing policies thatwould result insignificant reductions ofgreenhouse gas
emissions ifwearetosolve aglobal problem thataffects usall;
- callforagreement atKyoto toarrangements tomonitor thereduction ofemissions regularly;
- initiate action intheinternational community tostrengthen disaster relief response and
mechanisms fortheprovision ofurgent andadequate assistance tosmall states thatsuffer the
effects ofnatural disasters which areincreasing infrequency andmagnitude; and
- welcome thecontribution oftheIwokrama International RainForest Programme inGuyana
totheimplementation oftheRioagreements onforests, biodiversity andclimate change, and
agree touseourbestendeavours toincrease resources tosustain theProgramme andcatalyze
further international funding.
Conclusion
11. Inpursuance ofthesecommitments, weagree toenhance theCommonwealth 'sroleinbuilding
consensus onglobal economic issues andonanequitable structuring ofinternational economic relations.
12. Wealsoagree tosustain andwhere possible increase bilateral assistance among ourmembers;
andtoensuretheflowofresourcestotheSecretariatanditsvariousFunds,especiallytheCommonwealth
Fund forTechnical Co-operation (CFTC); andtotheCommonwealth Foundation, Commonwealth
ofLearning (COL) andtheCommonwealth Partnership forTechnology Management (CPTM).
13. Webelieve theCommonwealth canplayadynamic roleinpromoting trade andinvestment
soastoenhance prosperity, accelerate economic growth anddevelopment andadvance theeradication
ofpoverty inthe21stCentury. Weplantopursue thiswithvigour.
Edinburgh International Conference Centre
25October 1997