Higher interest rates also attract more capital flows, thus again, in a curious variant of the Dutch disease, accentuating the very problem that we were, in the first place, trying to resolve. As you see, there are no straight-forward solutions – every solution raises a fresh problem. Volatile capital outflows pose similarly complex policy choices.
The negotiations will certainly seek improved access and greater security for this type of trade. This issue is also relevant to the ongoing work on electronic commerce. Now, what can we do to ensure successful conclusion of these negotiations? There is much that can be done, especially in creating conditions favourable to further liberalization.