The heads of three international organizations on Thursday urged developed countries to take action on adopting new trade policies.

"All countries have an interest in a successful outcome--and all have a duty to promote a broad and balanced agenda. But appropriate action by the developed countries is crucial," said a joint statement released in Washington Thursday.

The statement was signed by Horst Koehler, the managing director of the International Monetary Fund, James Wolfensohn, president of the World Bank and Donald Johnson, secretary-general of the Organization for Economic Cooperation and Development, a Paris-based research group for industrialized nations.

The statement was released one week before the upcoming meeting of trade ministers at Cancan to advance World Trade Organization's Doha Development Agenda.

"We need a decisive break with trade policies that hurt economic development," said the statement. "Donors cannot provide aid to create development opportunities with one hand and then use trade restrictions to take these opportunities away with the other-- and expect that their development dollars will be effective."

The statement highlighted the issue of agriculture, saying " agriculture is of particular importance to the economic prospects of many developing countries, and reforming the current practices in global farm trade holds perhaps the most immediate scope for bettering the livelihoods of the world's poor."

"Yet, developed countries impose tariffs on agriculture that are eight to 10 times higher than on industrial goods. Many continue to use various forms of export subsidies that drive down world prices and take markets away from farmers in poorer countries," said the statement.

It suggested that agriculture supports are even not good for rich countries themselves, saying "agricultural support costs the average household in the EU, Japan, and United States more than a thousand US dollars a year."

The statement said "trade can be a powerful tool for development. To be fully effective, trade policy should be placed firmly within national strategies for development and poverty reduction, and be built on a foundation of good governance."

"But the key challenges now lie with governments," said the statement, adding that all the countries, including rich, middle- income and low-income countries should do their part for successful trade talks and new trade policies.

(eastday.com September 5, 2003)