24 Feb 2003
Mr Chairman
We meet in the shadow of grave events.
First, the Iraqi crisis. Based on the most recent reports by the UN weapons inspectors, it has become more urgent for Iraq to demonstrate that it is extending its full and active co-operation in the inspections, and that it is complying with Resolution 1441.
We agree with the UN Secretary-General's message today that Iraq must disarm. If Iraq refuses to meet its disarmament obligations, it could well lead to an outcome that we would all prefer to avoid. We hope that the Iraqi Government will make the right decisions that will lead to a peaceful solution.
At the same time, Singapore believes that all actions in respect of Iraq by the US and others should be in accordance with international law and the relevant resolutions of the Security Council.
In this crisis, we must also not lose sight of the humanitarian aspects. The Iraqi people have suffered enough.
Second, North Korea's decision to withdraw from the Nuclear Non-Proliferation Treaty has serious repercussions on the international non-proliferation regime, and hence on world peace. If North Korea resumes missile tests, this could destabilise the strategic balance in Asia, and trigger a regional arms race.
Third, the deterioration in the security and humanitarian situations in the Occupied Territories in the Middle East has resulted in the deaths of many innocent people. We urge that more be done, and quickly, to bring about a peaceful settlement of this issue.
Just as we recognise the right of Israel to exist within secure borders, Israel, in turn, must recognise the right of the Palestinian people to a homeland of their own.
Fourth, terrorism threatens developing and developed countries alike. None of us can afford to be by-standers in the fight against terror.
The terrorism we are currently faced with misuses Islam to achieve its objectives. It is not easy to counter such religion-based violence. In doing so, we also risk alienating innocent Muslims.
It will take us many years to defeat this global terrorist network.
Mr Chairman
In the context of today's global environment and challenges, how do we revitalise our Movement?
The original international context for NAM no longer exists.
However, the founding principles of NAM remain valid: independence, respect for territorial integrity, mutual non-aggression, sovereign equality, full respect for international law, and non-interference.
What our Movement needs is a new focus for these principles.
While security and geo-politics will always be important to NAM, I believe our Movement should give more focus to economics in the coming years.
Indeed, economic development is the key to our individual and collective futures. Without sustained economic development, we cannot achieve our goals of peace, freedom and progress.
Moreover, without economic power, we will lack strategic weight.
Currently, NAM lacks clout because we are economically underweight. Though numerically, we are 60% of the world's nations, we command only 26% of world GDP. In fact, the combined GDP of the 116 NAM members is only about 90% of the US economy!
Singapore believes that free trade is one of the key ingredients for successful economic development. The World Bank has estimated that the abolition of all trade barriers could lift 320 million people out of poverty.
In this regard, it is very important for NAM to support the Doha Round of WTO negotiations. Let me explain why.
The critical markets for many of us are the developed economies - the US, EU and Japan, among others. These economic powers are forging free trade agreements (FTAs) with selected partners. Many NAM members are left out of this FTA game, because they are too small to attract interest.
We must join this FTA club where we can. But we should also ensure that there is a parallel force that minimises the disadvantage for those developing countries which are not able to join the FTA club. The WTO is this parallel force. Its negotiating rounds narrow the tariff gap between FTAs, which a few countries enjoy, and the multilateral trading regime, which governs trade for the majority of us.
As such, if the Doha Round fails, many developing countries will lose this opportunity to minimise their disadvantage against other countries with FTA privileges. Their exports will continue to suffer significantly higher tariffs.
For instance, exports of textiles and clothing from NAM countries to the US and EU markets encounter peak tariffs of 34.5% and 17% respectively. Agriculture products have even higher peak tariffs, such as 35% for fruits in the US and 30% in the EU. These high WTO rates contrast starkly with FTA rates where the ultimate tariff is 0%.
To sum up, NAM now faces a changed global environment.
But whatever the changes, our Movement must continue to stand for the freedom, respect and dignity that are our due as sovereign nations. And to achieve this, we must be economically strong.
Then the voices of our peoples, who make up half of the human race, will carry more weight on the world stage.
I am confident that under the leadership of Dr Mahathir and Malaysia, the Non-Aligned Movement will be revitalised.