JEDDAH, 27 February 2007 — Former Canadian Prime Minister Jean Chretien yesterday strongly pleaded for the rule of law for promoting and protecting international trade.

“In order to have stability in investment, good rules and regulations are required and there should be effective authority to monitor their implementation,” he said addressing the post-lunch session of Jeddah Economic Forum 2007.

The theme of the session was “The Legal Structure Must Keep Up.”

The session was also addressed by Luxembourg Minister of justice and Treasury Luc Frieden and Lt. Gen. (Ret.) Abdulaziz Henaidy, who is in charge of organization and international relations at the Riyadh-based National Human Rights Commission. Alastair Stewart, journalist, broadcaster and presenter, moderated the session.

Chretien, who held his country’s premiership for 10 years from 1993, said Canada had set up an example by setting up rules and implementing them successfully, especially for trading with the United States and Mexico. “The rules work so well that we are able to manage trading with the two countries well. Eighty-one percent of the multi-billion dollar trading among the three countries is free of disputes. Whenever problems come up, we set up review boards and their recommendations are accepted for implementation.”

There is, however, the need for a universal international legal system and reform in the interest of promoting trade among countries and alleviating poverty at the global level. “An independent judiciary which cannot be influenced by political and other external factors must be there or developed,” said Chretien, the Quebec born son of a paper mill machinist who made his mark as a legislator and statesman to rise to the country’s premiership in his 40-year career in public service.

Referring to the rapid pace of globalization that has brought in its wake problems related to security, Chretien said: “Recently, we started tackling all aspects of security within the framework of UN principles. Such security problems are not only related to crime and terrorism, but could be related to even financial irregularities including money laundering. Tackling them could have political overtones affecting international equations. What is also needed is an independent foreign policy.

“Canada is present in Afghanistan in its post-war era, because it suits us and we believe in helping that country in maintaining peace. We decided not to send our forces to Iraq, which has been witnessing regular killings despite the presence of international security forces, because we felt there was no need for it,” he added.

Since 2002, Chretien said, Canada had been working in cooperation with the UN in dealing with issues related to protecting human life and alleviating poverty, and protecting plants and animals.

Chretien laid strong emphasis on respecting and protecting human rights in the process of globalization.

“Priority for rights and laws must be recognized as the basic foundation for all human and economic development,” he said.

Luc Frieden, who in 1994, at the age of 34, was appointed minister of justice and budget, and coordinated Luxembourg’s preparations for the single European currency, wondered whether economic reform should be followed by the legal structure. “In my government’s view, it’s reverse — the legal structure is a key instrument for economic development and reform.”

Frieden, who in June 2004 was reappointed minister of justice responsible for the financial sector and all matters of internal security, said law must develop in a stable environment. “The rule of law is important for businesses to develop so the content of the law is extremely important. In Europe, especially Luxembourg, we use the law as a push factor for economic development,” he said.

“The application of the law is also very important. You need to have international courts alongside national courts for any law to be implemented in an independent manner,” said Frieden who has been a governor at the World Bank since 1998.

“Next, regulations are important so that rules are preserved and complied with, especially now when globalization has made countries interdependable. Indeed, international organizations have a role to play.”

He said: “We in Europe have set up the European Union and thanks to our legal development we have become competitive within the region and internationally. European Court of Justice is headquartered in my country, which sees all international laws complemented by national laws are correctly applied. We must respect general standards and improve our respect for the legal system. That’s why my country has become successful — a country where 150 international banks with their multibillion assets are headquartered.

Both speakers emphasized that legal reform should come first as a key instrument for economic development.