Consultations with the private
sector
The private sector is the ultimate beneficiary of trade
policy, and should be involved as much as possible in
its development and execution. Businesses are often
the most important source of information on other
countries’ trade barriers, apparent violations of trade
agreements, and related matters.
The importance of consultations is easily acknowledged
but not so easily executed. While many countries have
some type of public–private consultative arrangement
in place, relatively few function as well as they ought.
Officials in the public and private sectors of developing
countries often have parallel complaints regarding the
conduct of consultations. Whereas representatives of
the business community may criticize a government
for consulting with them only sporadically, and
doing so only when a policy is in the final stages of
development or adoption, government officials may be
equally unhappy with the input that they receive from
the private sector. Comments may come too late, or
not at all, and business representatives may raise their
objections only after a policy has been implemented.
Dialogue between government and civil society should
ideally be comprehensive, with the public sector being
both informed by and giving actionable information to
firms, industry associations, labour unions, and other
interested parties. Producers, workers, exporters, and
actual or potential investors need to know about any
anticipated changes in the trading environment that
might affect their opportunities or decisions.
These
include not only those steps that the government plans
to take (e.g. the negotiation of a new agreement), but
also information that the government obtains on the
plans of other countries (e.g. if a certain programme
or policy in a partner country is expected to change).
Similarly, it is incumbent upon the business community
to keep the government informed of any developments
that should be taken into account in trade negotiations
or other initiatives. For example, businesses should be
encouraged to inform the government of any existing
or anticipated barriers to foreign markets.
V. TRADE POLICYMAKING INSTITUTIONS 59
Representatives of the private sector may also be
included in delegations to international meetings.
This is a common practice in some countries, and
ensures that policymakers have the benefit of on-thespot information and advice. Many trade negotiations
now include “parallel” events to which representatives
of civil society are invited, ranging from trade fairs to
seminars.
While it is important to foster consultation and
collaboration between the public and private sectors,
it is equally important to ensure that government does
not respond only to the most influential interests.
There is a distinct danger that the most organized
and connected groups in civil society might “capture”
government agencies, such that it is not the agencies
that regulate industry but vice versa. In the field of
trade policy, capture may manifest itself in unbalanced
representation that favours protection over consumer
interests. While it is economically rational for small
numbers of producers to band together in support of
continued protection, there is little incentive for large
masses of consumers to organize in counterpoise to
the protectionists. Skewed representation of interests
can result in equally skewed policies.
These observations point to the need to include a
wide range of civil society groups in consultations. In
addition to groups that represent industries, exporters,
and importers, a government should ensure that it
gives adequate voice to the interests of consumers,
service sectors (including the creative community),
and others whose interests were often overlooked
when trade debates were limited to issues involving
the cross-border movement of goods