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The machinery of government changes to the management of trade policy made in June 2007 are broadly positive, although we have some reservations. The development emphasis, new lines of ministerial responsibility and cross-departmental structures have the potential to improve trade and development policy coherence to the benefit of developing countries. On the other hand, excessive complexity, unclear lines of accountability and new layers of bureaucracy risk undermining any improved coherence resulting from the changes. It remains unclear how the changes will be evaluated for their ability to deliver a trade policy which complements UK development objectives and ensures effective 'joined-up Government'. In essence, there continues to be an unhelpful lack of clarity and transparency over the mechanics of trade policy decisionmaking.
The increase in the number of DFID ministers reflects the new roles and responsibilities that the Department has taken on and is to be welcomed. But given the challenges ahead in international trade, the Trade Policy Minister's brief may be too wide and should be reviewed. The new cross-departmental Trade Policy Unit reporting to him will need clear and responsive leadership at ministerial and official levels if it is to succeed.
The critical issues for the World Trade Organisation Doha Round remain the same as at the time of our last Report in March 2007. The process should either be reinvigorated, with unilateral moves if necessary, or the negotiations should be brought to a close. Time is also rapidly running out for the EU's Economic Partnership Agreement talks with African, Caribbean and Pacific countries. The European Commission has belatedly recognised the need for interim goods-only deals by the end of the year but some countries may simply not be in a position to reach even these by that deadline. The Government must endeavour to ensure that pro-development alternatives are available to countries that request them.
The UK has been too slow to act on recommendations from the Organisation for Economic Co-operation and Development's Anti-Bribery Working Group. Outstanding issues need to be resolved during the forthcoming review by the Working Group. The Government should make a clear commitment that time will be found in this or the next parliamentary session to enact the legislation which the Working Group has been recommending for nearly a decade.
The National Contact Point is a key instrument for national-level implementation of the OECD Guidelines for Multinational Enterprises. The UK Contact Point needs to be a well-resourced, credible body. There are concerns about both the effectiveness and impartiality of the National Contact Point and we will follow closely and with interest the progress of specific test cases.
Further progress both on establishing the Extractive Industries Transparency Initiative as a global standard and towards reaching an internationally agreed definition of conflict resources should be high priorities across relevant Government departments in 2008.
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