Minister Kiviniemi: WTO is not a threat to developing countries' water management

Press release 369/2005
23 November, 2005


Minister for Foreign Trade and Development Mari Kiviniemi received a water appeal, submitted by representatives of the Ecumenical Week of International Responsibility, on Wednesday, 23 November.

"The EU is not trying to gain access to the administration of developing countries' water resources by means of trade political measures, and there is no intention to reduce developing countries' governments' political freedom of action in, for example, the organisation of water services," assured Kiviniemi to the representatives of the Ecumenical Week of International Responsibility, who submitted their water appeal.

"The EU's proposals do not curtail developing countries' right to regulate the administration of water and its distribution between the users. The proposals do not weaken developing countries' governments' opportunities of choosing the best possible form of private participation, applying a reasonable price policy and ensuring the adequacy of water at prices that are affordable also for the poor," said Kiviniemi.

The Minister also commented on the one-sided picture of the World Trade Organization, the WTO, that was conveyed in connection with the campaign. She emphasized that the WTO contributes to the transfer of trade from circles governed by "the rules of the jungle" and "the right of the strongest" to the framework of multilateral regulation. According to her, economic growth enables the promotion of welfare and therefore international trade and the required regulations serve everyone's interests. "Finland's economic development, for example, would not have been possible without foreign trade, and trade has benefited the whole country, not only some companies," reminded Kiviniemi.

"It is clear that, in international negotiations, all countries do not have as strong negotiations positions as others. Therefore developing countries are supported in the building of so-called trade capacity by means of different international arrangements. Developing countries' interests are taken note of in the actual WTO system of agreements in a number of ways, such as by granting longer transition periods or even liberating them from certain responsibilities," said Kiviniemi, clarifying developing countries' position in the WTO negotiations.

"Water is a diminishing natural resource, which is why its equitable and economic use must be addressed more than before. In terms of access to water, the situation is particularly challenging in Africa where the role of water is vital to development. However, the urgency of responding to this challenge has been realised - significant milestones in this issue are, for example, the African Water Ministers' Meeting, the EU Water Initiative and the programmes and fund that have been established in the African Bank for Development," said Minister Kiviniemi to the representatives of churches who submitted the water appeal.

The Ministry for Foreign Affairs is preparing a policy on water issues in development cooperation.

Additional information: Satu Mäki, Senior Adviser to the Minister for Foreign Trade and Development, tel. +358 9 1605 6306.