UNCTAD to push for better agreements for developing countries

Developing countries have been urged to re-look incentives offered to multinational organizations, in an effort of benefit from the gains of global trade.

The United Nations Conference on Trade and Development (UNCTAD) argues developing countries such as Kenya have for years given preferential treatment to multinationals with little corresponding wealth creation.

In an interview on Citizen Business Centre, UNCTAD Secretary General Dr Mukhisa Kituyi said investors ought to be given greater responsibility in ensuring the economic development of countries where they make most of their profits.

“We are all competing in a race to the bottom. The investor is given all the rights but the government is left with all the obligations. But we are saying it is not sustainable,” Dr Kituyi said.

The 14^th Session of UNCTAD will be held in Nairobi from the 17^th of July, with the conference focusing on how developing countries can position themselves for benefits of global trade.

Dr Kituyi said UNCATD is leading an international call to pressure developed countries as well as multinational firms in eliminating tax shifting.

“We are building a major principal which is transnational corporations should pay the highest taxes in the territories not in the territories they are registered as headquarters,” he said.