Reuters September 5, 2003
Caracas, Venezuela - Venezuela declared
war on Friday against what it called an unfair world trade system and urged
developing nations not to subscribe to any new agreements at upcoming global
trade talks next week.
The world's No. 5 oil exporter made clear
it would take an aggressive stance at September 10-14 World Trade Organization
negotiations in Cancun, Mexico, which aim to lower barriers to world trade.
Venezuela's chief trade negotiator Victor
Alvarez said the world's poorest countries had only a tiny share of world
exports, which were hogged by rich nations: "It's clear who are the
winners and losers of today's world trade system."
"We'll be taking the fight to inside
the WTO," he said.
Alvarez said President Hugo Chavez's
left-wing government would not negotiate over its demand, shared with other
developing countries, that rich industrialized nations end "ruinous
subsidies" for their farm products.
Challenging what he called the
"pro-market fundamentalism" of the United States and other rich
nations, he insisted on the right of Third World states to intervene heavily in
their economies to promote development and fight poverty.
"Venezuela is going to propose that
no new commitments be adopted (at the Cancun talks)," Alvarez said.
"It makes no sense for countries
like ours to add new points to the WTO agenda when there's such a long list of
issues that haven't been satisfied," he added.
Venezuela's apparent spoiling strategy
flew in the face of urgent calls from the United States and Europe for concrete
agreements during the Cancun meeting.
It also reflected repeated verbal attacks
by populist former paratrooper Chavez against world bodies like the WTO, the
International Monetary Fund and the World Bank.
The Venezuelan leader, who is accused by
his foes of trying to introduce Cuba-style communism at home, has pilloried
these organizations as "institutions created by empires to continue
dominating the world."
Echoes of Cuba's Castro Alvarez said
Venezuela's position was shared by major developing nations like Brazil and
India. But it seemed to echo views expressed by Cuban President Fidel Castro, a
friend and ideological ally of the Venezuelan president.
Alvarez presented a 10-point list
dismissing free trade demands by industrialized nations.
For example, he rejected calls for
transnational companies to be given equal treatment with national firms in
bidding for state contracts. "We're not going to negotiate our government
purchases," he said.
While demanding a reduction in the
subsidies of rich nations, Alvarez said developing countries should be given
more time and special treatment, including financing and debt-forgiveness, to
develop their farm sectors to face fierce competition in world markets.
He rejected suggestions that tough
foreign exchange controls adopted by Chavez's government earlier this year and
Venezuela's active membership of the oil exporters' cartel OPEC were against
the spirit of free trade.
Alvarez described these as legitimate protection mechanisms. "They (the rich nations) want us to give away our resources for free," he said.