Excellencies, Ladies and Gentlemen,
A very good afternoon to you all
Let me begin by thanking the Permanent Representative of Barbados in Geneva, Ambassador Blackman, for co-hosting this event with the Maldives. I would also like to thank the WTO Director General, Dr. Ngozi Okonjo-Iweala(އެންގޯޒީ އޮކޮންޖޯ-އިވޭލާ) , and United Nations Deputy Secretary General, Ms. Amina Mohammed, for their contribution at today’s meeting. Today’s discussion on Trade, Environment and the focus on a Green Recovery is particularly important and timely as we begin the vaccination process and envision our future beyond the COVID-19 pandemic. I believe we have an esteemed group of panellists here today that will initiate deliberations to continue the dialogue on trade, environment and sustainability within a post pandemic green recovery.
Excellencies, The decision to graduate Maldives from the LDC country category was taken in 1997. However, due to the 2004 Indian Ocean Tsunami, we eventually graduated in 2011. Since then, we have continued to voice our deep concerns about the criteria used for graduation and the lack of importance given to incorporating and emphasising the concept of vulnerability within that criteria. The reality is that, as a small island developing state, we are extremely vulnerable to external environmental, economic and now, pandemic shocks, as we are experiencing now. This, Excellencies, is our lived reality.
As the economy of the Maldives depends almost entirely on the tourism industry and its associated services, it is fair to say that Maldives became a “no-income” country, when our borders closed in March last year.
Without any revenue flowing into the country, we have drained our fiscal resources in our response to the pandemic. While the global economic contraction is projected to be around three percent, the corresponding figure for our economy has been estimated to be as high as twenty percent. For a country like ours, this magnitude of economic loss is devastating.
During the pandemic, not only were our borders closed to tourism, but access to the import of essential food items was an issue of major concern due to the severe disruption in the global supply chains. The Government of Maldives responded by implementing several measures, including amendments to relevant regulations to improve food security and to ensure an uninterrupted supply of essential food items.
Excellencies, As the Director General rightly stated in her inaugural address, “Trade and environmental protection can be mutually reinforcing, both contributing to sustainable development”. Rising temperatures, natural disasters, the degradation of coastal and marine ecosystems and rising sea levels, all directly and negatively impact the livelihood and future wellbeing of people in island economies and coastal states.
SIDS are not adequately equipped to keep up with the rapidly rising incidences of natural disasters. Many industries that SIDS depend on for income and employment are highly reliant on a clean, healthy and a sustainable environment.
As we slowly enter the recovery and rebuilding phase of the pandemic, we must redouble our efforts to encourage international partners and the private sector to support SIDS to fully exploit their potential for renewable energy, improve energy efficiency and reduce dependence on non-renewable, imported sources of energy.
Last December, President Solih announced Maldives’ intention to reach net-zero emissions by 2030. We intend to lead by example. To help us achieve our lofty ambitions, it is time to rethink and readjust the current financial procedures for sustainable and resilient projects.
Even though we continue to receive aid from our international partners, Covid19 has reaffirmed the need for assistance to address the issue of debt. Between 2009 and 2019, the external debt stock of SIDS increased from 29.3 trillion to over 50 trillion US Dollars. Although this rapid increase in debt occurred well before the start of the pandemic, it has further disrupted the economies of SIDS and added to the debt burden.
While initiatives such as the Common Framework for debt treatment beyond the debt service suspension initiative are welcome, more needs to be done. It is imperative to put in place a mechanism which enhances debt relief for countries that are disproportionately affected by the global pandemic. This will be important, not only to enable SIDS to weather the storm, but also to provide an essential impetus to launch our economies on to a trajectory of sustainable recovery.
Excellencies, Promoting sustainable trade practices is crucial as we look towards a green recovery from the current crisis. As a “large ocean state,” fisheries is the lifeblood of the Maldives and our second main source of income. We have been using sustainable and environmentally friendly fishing methods to catch our tuna for centuries. The entire fish catch is used without waste, for consumption and value-addition, such as agricultural fertilizers and raw material exports. For our economy, this is our fall back to generate primary income into the country.
We must work together to establish trade policies to enable global market access for sustainably sourced produce that reflects the true value-added premium in our export markets for sustainably caught fisheries products.
Excellencies, Coastal and island states have advocated for a blue economy as an approach to sustainable development. As SIDS, we are highly dependent on the ocean for our food, employment, and wellbeing. We must work to address equity in access to resources, development of and sharing the benefits from the marine resources, the reinvestment of resources to develop our human capital and alleviating the crippling national debts. We believe that there is great potential for developing countries to realize additional revenue through the sustainable use of marine resources and biodiversity.
Excellencies, Let us make use of this opportunity during the post pandemic recovery and rebuilding phase to revamp our development paradigm. Let us work within the multilateral trading system to redefine and sharpen our focus on trade and investment policies for sustainable and climate-resilient development.
Just as the pandemic cannot be tamed unless we all work in concert and in solidarity, I believe overcoming its devastating economic impacts also require us to work in unity. Let us work together to make our economies more resilient and to build back better and greener, as we continue our journey to achieve the 2030 agenda for sustainable development.
I thank you.