“Trade is the most powerful tool to lift people out of poverty” – Sir Graham Watson

This statement from Sir Graham Watson MEP, President of the European Liberal and Democratic Reform (ELDR) Party, captures the main message of the recently concluded 5^th ALDE-CALD Summit with the theme “Trade: From Patronage to Partnership”.  Held in the European Parliament on 4-8 June 2012, the biennial meeting’s theme was chosen in light of the unfolding economic crisis in Europe and its potential implications for Asia.

In the opening session, ALDE President Guy Verhofstadt MEP, argued that the economic turmoil is “more of a political crisis than an economic crisis.”  “It is about the inability of “European leaders to take the right decision at the right time”, he added.  Despite the crisis, Liberal International (LI) President Hans van Baalen MEP noted that there is still a reason for optimism when one looks at the international environment.  This optimism can be translated into reality when liberals argue for greater freedom, not less, in the midst of the ongoing crisis.  As what Friedrich Naumann Foundation for Freedom (FNF) Philippines Country Director Jules Maaten said, freedom can be the basis for facilitating greater cooperation amongst countries, particularly in terms of trade.

The first session reiterated that freedom should be the core value when countries trade with one another.  It also highlighted that trade should not only be in terms of goods but also of services.  However, as what European Commissioner for Home Affairs Cecilia Malmstrom pointed out, increasing labor force mobility, while desirable, is not politically feasible at the moment.  This is unfortunate as Asia’s comparative advantage is in terms of labor.  The plight of some Asian countries, as what Cambodian MP Saumura Tioulong argued, is made worse by their position in the international trading regime – where they are relegated to the production of raw materials and low- technology goods.

In the second session, it was pointed out that development should not be the only goal of trade. Trade should also be the means to achieve other objectives such as environmental protection and promotion of labor rights, as noted by European Commission’s Peter Thompson.  ALDE Coordinator for Urgencies Marietje Schaake MEP supported this stance, noting that economic interest should not be separated with the values that we hold dear such as human rights, democracy, rule of law, among others.  In adding such social standards clauses in trade agreements, however, Sri Lankan MP Rajiva Wijesinha warned against the dangers of using these clauses as trade barriers.  He also emphasized the need to ensure that monitoring of the clauses’ implementation should be based on objective assessment.

The third session emphasized the need to promote trade in all fronts, whether through bilateral trade agreements or multilateral trade negotiations.  As the Doha Development Round is stalled, all the panellists in this session agreed that bilateral agreements should be pursued as the second best option. According to them, bilateral agreements are not contradictory to multilateral negotiations, but are actually building blocks to it.

A discussion session was then held where participants from Latin America (ALDELAT) and Africa (ALDEPAC) shared their experiences on trade and compared them with those of Europe and Asia.  The meeting was officially closed by ALDE Vice President Niccolo Rinaldi MEP, who expressed his appreciation for the productive and meaningful discussions on how to make trade mutually beneficial to all concerned.

“Trade is related to other values that we hold dear, particularly human rights and individual empowerment”, CALD Chair Sam Rainsy said.  “In this respect, is not an end in itself, but only a means towards a higher end – the betterment of the individual.”

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This post was written by CALD