Question Details	Asked By	Asked On
Multilateralism like multicultirism is dead?	paraclete	07/25/06
World trade talks collapse From: Agence France-Presse By Jonathan Fowler in Geneva July 25, 2006 A FIVE-year global effort to liberalise world trade has collapsed in acrimony, driving a stake into lofty ambitions to free global commerce and help developing nations to climb out of poverty. The collapse of talks among six key players from the 149-nation World Trade Organisation drove its chief Pascal Lamy to recommend an indefinite freeze in the faltering negotiations. Mr Lamy later said it was necessary to clear the air and ensure that there was "no ambiguity" about the lack of political will for a deal among key members of the WTO, which sets the rules of global commerce. "The end of a time-out can only come when members are ready to play ball," he said. Brazilian Foreign Minister Celso Amorim said that trading nations could face a long wait before negotiations can resume, because of unresolved differences on farm trade which have dogged the talks. "I don't believe that it will be a matter of weeks. It will certainly be a matter of months, and not maybe very few months," he said. Indian trade minister Kamal Nath had earlier commented: "The round is not dead. But it's definitely between intensive care and the crematorium." The failure by Australia, Brazil, the European Union, India, Japan and the United States to settle their disagreements on trade concessions - despite getting close - was the latest in a series of setbacks to attempts to conclude WTO's Doha Round talks. "We were in a range that, while it was not small, was reachable," Mr Amorim said. The Doha Round, which started in the Qatari capital in 2001, was billed as a move to complete the unfinished business of previous decades of reforms to make trade fairer, particularly in agricultural goods. Launched just two months after the September 11 attacks in the US, it was also seen as a way to rebuild confidence in a world shaken by terrorism and as a once-in-a-generation chance to reduce stark divisions among rich and poor nations. Experts have regularly warned that WTO members may shift their focus back to bilateral trade deals and regional trade accords, which can create a complex web of conflicting interests. The multilateral WTO talks were seen by many as giving developing countries their best shot of a decent deal, because most poor nations tend to be at a disadvantage in bilateral trade negotiations with rich, powerful players. "We've missed a very important opportunity to prove that multilateralism works, and that by working together - which is not easy to do - the nations of this world can solve some of the serious problems we face," Mr Lamy said. The Brazilian and Indian-led G20 grouping of developing countries has increasingly flexed its muscle against the rich during the Doha Round negotiations. Brussels and Washington had previously agreed that they wanted more concessions from the developing world on trade in services and manufactured goods in return for freeing up farm trade. The latest failed talks, however, pitted the US against the EU and powerful emerging nations. Washington found itself under pressure to offer deeper cuts in its contested farm subsidies but countered that its partners should themselves open markets by slashing customs duties on imported agricultural goods. "The United States remains committed to a robust, ambitious and balanced round. Unfortunately our trading partners were more interested in the loopholes than in market access," US Trade Representative Susan Schwab said. EU Trade Commissioner Peter Mandelson hit back, accusing Washington of failing to match moves by other WTO nations. "The United States was unwilling or unable to show any flexibility on the issue of farm subsidies," Mr Mandelson said. Critics say that Washington's subsidies skew trade in favour of US agribusiness. But deeper cuts would have been difficult for Washington to sell domestically ahead of crucial mid-term elections in November, unless US negotiators could show they had obtained more from their counterparts. Mr Nath blamed the uncompromising US stance. "It's very clear that the EU made a movement (on customs duties). Everyone put something on the table except for one country, who said: 'We can't see anything on the table'," Mr Nath said. Negotiators had hoped to hammer out a deal before it became even tougher to reach an agreement. In July 2007, the White House is to lose its fast track authority for trade deals, allowing politicians to recover their right to pick apart international trade treaties, potentially creating new obstacles for any future talks at the WTO. The Doha Round was meant to be completed with a trade deal in 2004. That target was later shifted to December 2006 because of persistent breakdowns.
Clarification/Follow-up by tomder55 on 07/25/06 12:19 pm: the round has been suspended . I for one would not be suprised if they were not resumed in a couple of months . This is not a catastrophy. other rounds of these negotiations were also suspended ;no big deal ;it is part of the process of a very complicated agreement being hacked out . If you want to be cynical then say the process will not die because it is in the best interests of the multi-national corps to keep the process alive.
Answered By		Answered On
tomder55		07/25/06
I think it is unfortunate that the talks have stalled . I'd prefer a world wide trade mechanism than a collection of bilateral agreements and a multitude of trading blocks . Also consider the fact that agreements in the past have tinkered on the brink of collapse before a settlement was achieved . I disagree with the author's reasoning that it is the intractible US position that is causing the stall of progress. There are many issues of contention besides farm subsidies (for the record I would gut US Agri-subsidies if I had my way...why should consumers pay more for propped up produce that can be purchased cheaper from an imported source). But ,the US did offer generous cuts in our subsidies( 60%) in exchange for EU concessions and it was the EU that balked . In many ways the US has trade disadvantages . We are getting ripped for the agri-supports but emerging industrial nations get a pass for their protectionism of their industries ;Brazil and India come to mind . Another issue is the exchange rates of certain Asian currencies . There is still time but it is running short . The US right now has a free-trade friendly President . Congress gave him a virtual blank check to negotiate this round with a Trade Promotion Authority that says Bush can come back with any trade agreement and Congress will not debate the particulars but would only vote it up or down . This authorization expires next June. After that ;trust me ;there are alot more representatives in Congress who lean toward protectionism .If the world continues to stall ,and Bush does not come back with a trade agreement before next June then it is probable that Doha process will collapse.

Additional Options and ratings are only visible when you login!