Roberta Piermartini, WTO Senior Economist, introduced five characteristics about natural resources noted in the WTO World Trade Report 2010 – exhaustibility, uneven geographic distribution, dominance of natural resources, externality and market volatility. She concluded that natural resources could only be a blessing when they are well regulated. The panel also noted figures from the World Trade Report that trade in natural resources has grown exponentially and that half of resources are found in countries with low per capita incomes.

Piet van der Walt, Member of Parliament of Namibia, spoke about the problems that a resource-rich developing country like his country is facing. He called for more investment in education, more intra-regional trade in Africa and the use of GATT Article XX to restrict natural resources exports.

Jörg Leichtfried, Member of the European Parliament, explained Norway’s model of using natural resources for social benefits, while noting that oil endowment can also result in underdevelopment of other industries. He advocated parliamentary influence to promote democratic and fair distribution of wealth, a legal system against speculation, etc.

The panel also discussed the role of multinational mining companies, including a new generation of Chinese and Indian companies, and agreed the importance of balance with local small and medium enterprises, regulation and environmental standards. On the topic of whether every country should have access to natural resources, the panel agreed that export policy is not the first best choice to conserve natural resources, and such policy should be implemented carefully. The WTO dispute case on raw material export restriction was mentioned.

During the Q&A session, comments touched on the corruption problem and need for industry upgrading in Africa. Questions were raised about WTO rules on trade restrictions and why the WTO cannot have a new set of rules on natural resources trade. A Chinese delegate commented that China was not unable to use Article XX due to unfair accession commitments.