OPENING ADDRESS BY H.E. PROF. GUIDO DE MARCO, PRESIDENT OF MALTA, ON THE OCCASION OF THE CO-ORDINATIVE MEETING OF THE JOINTARAB-EUROPEAN CHAMBER OF COMMERCE

OPENING ADDRESS BY H.E. PROF. GUIDO DE MARCO, PRESIDENT OF MALTA, ON THE OCCASION OF THE CO-ORDINATIVE MEETING OF THE JOINT ARAB-EUROPEAN CHAMBER OF COMMERCE.

It is of great pleasure for me to open this co-ordinative meeting of the Joint Arab-European Chamber of Commerce hosted by the Maltese-Arab Chamber of Commerce, Industry and Agriculture. It gives me particular satisfaction because throughout my political career, I have endeavoured to bridge and overcome psychological and political divides, divides that this tract of sea in particular, the Mediterranean, can embody.

Your meeting in Malta is testimony to a convergence of ideas and interests, to a stable vision for the future from all around this sea, and beyond. Because commerce always thrives in climates of peace and stability; and as a politician, I strove to pursue the legacy of Maltese diplomacy which leads towards the bridging of these real and apparent divides that plague our region, and for that matter, not only our region. Be it on bilateral basis as well as within multilateral fora, Malta always worked towards achieving lasting peace and stability.

Therefore, what better location than Malta to hold a joint Arab-European meeting? The environs and surroundings are characterised by a blend of history and influences that this Island state in the middle of the Mediterranean, has lived throughout the ages. At crossroads of civilisations and at the centre of a sea caressing the shores of the Eurasian and African continental masses, Malta continues to build its bridges to the North and South.

Our pluri-millennial history is rich because of our geo-strategic location. Geo-strategic concerns imply also a degree of commercial acumen. This was the case with the Phoenicians, who traversed the Mediterranean with their purple sails; they had rightly assessed the geographic potential that fate had bestowed on these Islands. Similarly, throughout the ages, conquering civilisations vied for the possession of these rocks for political and commercial reasons; they vied for possession of a unique harbour, lying at the centre of a sea that since the dawn of time was the main route of goods, of peoples, of ideas, of culture.

No longer frontier fortress, the bastions of our cities have become exceptional monuments of history; because today, no physical barrier can halt the unstoppable flow of information that floods our daily lives, even within the privacy of our homes, through the web of the media and information technology. More than ever, we are living in a world that is permeable to outside influences.

If we analyse the rise and fall of civilisations that dwelt in this region, we realise the importance that trade played in advancing particular interests and in increasing the engagement at all levels among peoples. In fact, trade has been one of the major factors of civilization and a means of achieving a veritable "people to people" approach. Trade has been a primary tool for establishing contacts throughout all strata of society through the exchange of goods, services, ideas, ideals, and beliefs. Thus, today, through your activities, you are carrying forward the beacon of history.

Trade is above all necessary to develop stable relations among states. For the more States engage in mutual trade and stronger links are established, the harder it will be to upset those links and lines of communication. When engaged in strong partnerships of trade, it is difficult, improbable, for war to be resorted to.

International commerce usually represents the linking of some of the most enterprising elements in societies, with people seeking the best return for their efforts, with people searching for and exploring the potential of novel and relatively unknown markets. It does require courage. Private enterprise generates work and revolves around the generation of work; most importantly, it instills a culture and ethic of work, so essential to improve the quality of life as well as helping in keeping overall healthy balance sheets in home countries.

Business reflects the particularities of its age and the sociological traits of societies. I believe that you realise that today you are gathered here as a reflection of the desire of peoples from North and South, East and West, to engage in meaningful bonds – social, political, economic and commercial – that advance the unity of this region, surrounding the Mediterranean, as well as with people hailing from farther away.

From a political and sociological point of view, your activities can be viewed within an overall context that break age-old barriers, that overcome prejudices and defeat misconceptions. This is the basis of building a more tolerant culture through the certain kind of education; because yours is a process of learning, a process of seeking common interests and addressing common concerns.

Your work is an invaluable source of wealth, in many respects, for the Euro-Arab region. However, set against, or should I say within, the background of globalisation, your work assumes an even greater importance as it constitutes the backbone of the drive towards adapting structures and methodologies for facing ever-changing circumstances. In the past few decades, we have witnessed great changes which have been established at a very brisk pace. The result of all this is that we are practically living in a different world.

After the Second World War, there was a recognition that international trading links had to be strengthened – isolationism and protectionism did not make either economic nor political sense. After the end of the Cold War, this cry was vindicated. Great advances, although not devoid of controversy, were made through the establishment of the World Trade Organization, now poised to embark on another comprehensive round, addressing the most sensitive issues. All this is a sign of the times.

The rise of exports on a global scale, the rise in the amount and quantity of foreign investments, the rise of powerful multinationals, the effect of a shrinking global village thanks to the media and the Internet have made of our world one in which an effective international trading system must be established.

As the Secretary-General of the United Nations states in his report to the upcoming Millennium Assembly:

"This is the world of globalisation – a new context for and a new connectivity among economic actors and activities throughout the world. Globalisation has been made possible by the progressive dismantling of barriers to trade and capital mobility, together with fundamental technological advances and steadily declining costs of transportation, communication and computing. Its integrative logic seems inexorable, its momentum irresistible."

Its integrative logic seems inexorable, its momentum irresistible.

This is the new framework, the new reality, within which states and individuals alike have to work. In many senses this is a brave new world of new and unequalled opportunities, of unprecedented economic growth and higher standards of living. It is not however a reality devoid of perils of insecurity and vulnerability to market forces resulting in higher risks of social disintegration especially where economies fail to come to terms with the invisible hand of global economics. This is the reality of the ‘haves' and ‘have nots', a world of wealth creation and another world of bare survival.

The process of globalisation has resulted in a gradual but sure retreat of the functions of national governments; and rightly so. But it must not be an excuse for absenteeism, because, especially given the Darwinian laws of survival prevailing in international economics, Governments have to retain the responsibility of providing infrastructure necessary for societies to function. The role of government and international institutions is as crucial today, if not more so, in order to ensure a more equitable distribution of wealth and providing that necessary safety net for the weakest. Thus, a balance of power between the political and the economic forces has to be struck. This is in the political and economic interest of politicians, the business community, and the rest of society alike.

Gathered here today are business people coming from different cultural and economic backgrounds. Your work in a regional context is an attempt which reaches far beyond that of mere economics. The creation of a Free Trade Zone among 14 Arab countries determined to do so, is in essence a potential instrument for building stability. For together with the creation of freedom in trade comes the freedom of exchange in ideas and experiences. This can be that further coagulant which may be key in turning this region of ours into one of peace and stability.

In breaking down the barriers of protectionism and imbalances in trade, we are addressing the very root of social well-being; we are addressing the root of misunderstanding and intolerance.

This was one of the key concepts which was pursued in those fora which aim to break down trade barriers: the discussions in the World Trade Organization, the creation of a free trade area among Arab states, on-going discussions between the European Union and the Gulf Co-operation Council for the creation of a free trade agreement, and within the context of the Euro-Mediterranean Process – all these are initiatives which touch on the Mediterranean and those states which comprise it and lie beyond it.

The EuroMed Process, in particular, provides us with model arrangements that could be further developed to enhance co-operation. Within the framework of existing Association Agreements, European countries and their Mediterranean partners already co-operate in several areas of mutual interest, such as the free movement of goods, competition rules, customs and taxation. The objective set out in the Barcelona process is clear: to create a Euro-Mediterranean area of shared prosperity.

I believe there are no boundaries for the sharing of prosperity.

Today you have an important task: it is a meeting which is to co-ordinate your efforts conscious of the developments in all these overlapping initiatives. The membership in each instance may be different, however the basic objectives remain the same – to break down barriers, to enhance opportunities for investment and to build a climate of stability and freedom in the international and regional trading systems.

The establishment of partnerships and systems of co-operation whether on the South-South, North-South, or East-West axes, is always an exercise at enhanced stability. Your own work today is no exception. In seeking to co-ordinate your efforts, your ultimate aims will be those which are shared by the international community – to establish a fair, free and stable international environment.