It is a great hounour for Pakistan that Trade and Agricultural Ministers of 19 countries from across the world are holding their 31st meeting at Lahore. Their meeting is significant as it comes at a time when the WTO Members are entering their final phase of negotiations for completing the Doha Round.
The Doha Round represents an unusual opportunity of economic development for countries like Pakistan. While estimates for economic benefits of Doha Round vary, it is generally accepted that a successful and ambitious Round could lift 300 million people out of poverty by 2015.
As in case of previous trade liberalization Rounds, such benefits are not shared equally. Those who are better prepared to face the challenges and meet the opportunities stand a better chance of reaping the benefits. As a result of liberalization of our economy over the last few years, for the first time we find ourselves in a comfortable position to seek ambitious results and be able to achieve substantial gains from this Round.
It is this confidence that enabled us to become a part of the Cairns Group which has been striving for over 20 years to achieve a fair and market-oriented agricultural trading system. The Group has an enviable track record of highlighting discriminations faced by the agricultural sector but its key moment has come now through the Doha Round when it can negotiate fundamental reforms by getting rid of all trade-distorting subsidies and achieve substantial improvement in market access.
An ambitious result would have a major impact on our agricultural sector which in turn would be fundamentally important for our economic development and reduction of rural poverty. Agriculture accounts for almost one-fourth of our GDP and provides employment for almost half of our work force. Any gains in this area have a multiplier effect throughout the economy.
Livelihood of our farmers who are engaged in our four major crops, wheat, rice, cotton and sugarcane are seriously impacted through high subsidies and protected markets. Similarly, there are major distortions in the world market for dairy products. Pakistan has the world's 6th largest dairy herd, and it would be a major beneficiary of a successful Round. Just through removal of these distortions, Pakistan may be able to lift as many as 10 million people out of poverty.
While agriculture is the key for this Round, we are looking for removal of barriers and improvement of rules in many other areas which are restricting our access to international markets. We hope that once agriculture is able to open other doors, our industry will greatly benefit from more market access. There will be greater opening of trade in services and there will be free movement of businessmen and other professionals to make use of these opportunities. Trade facilitation would enable quicker movement of goods.
I wish the Cairns Group a very successful meeting and hope that this Conference would bring them closer to achieving their long cherished dream of a fair and market-oriented agricultural system. We hope that once the Doha Round is completed, it would no longer be a competition of treasures of richer countries against developing countries. We will be making a combined effort to achieve the UN Millennium Development Goal of reducing poverty levels by 50%.