Compromise in the Interest of Both Sides

Compromise in the Interest of Both Sides

According to Mr Mike Moore, former Director of the WTO : a country can decide to stand outside world trade institutions, but by accepting challenges to join the common playing field, it can have more chances to develop its economy. For the past 10 years, Vietnam has been trying to gain WTO membership, and should achieve this by the end of this year. During in his recent visit to Vietnam, VIB Forum reporter Thu Huyen asked Mr Mike Moore about the hurdles Vietnam must overcome to attain its goal.

In 2001, you visited Vietnam and forecast that Vietnam would join the WTO in two years. As Vietnam continues to make efforts to become a member of the WTO by the end of 2005, do you believe it’s possible and what are the hurdles that the country faces?

I think that the goal can be achieved. Though Vietnam must overcome many difficulties especially in its initial bilateral negotiations with 10 countries and then possibly a further 130 countries if they also ask for negotiations with Vietnam. In negotiations, everyone is afraid of making concessions and “getting less”. However, I believe that compromise is in the interest of both sides. Partners ask Vietnam to open the market and Vietnam does not want to. From my experience, countries with open economies can achieve the highest living conditions such as Singapore or New Zealand.

Do you think that new members have to make more concessions?

There is a tendency for new members to think that they have to make bigger concessions in their negotiations for WTO membership. Even China, a big neighbour of Vietnam, had many difficulties in joining the WTO. Certainly, it is not easier for Vietnam and other countries when joining the WTO under the same principle.

Joining the WTO not only facilitates trade in the world market but also provides protection by the WTO legal system in cases of commercial disputes. In addition, WTO members can also share common tariff barriers and customs regulations.

What can Vietnam expect from the Doha round?

If Vietnam is a WTO member and has efficient solutions it can get big profits in produce such as coffee from the Doha round. Without participation in Doha or international trade institutions, Vietnamese coffee exporters will encounter many difficulties in the world market, especially due to quotas.