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| 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.
Clarification/Follow-up by ETWolverine on 07/25/06 2:19 pm:
Clete,
I happen to agree with you. The other nations wee getting short-shafted by the US over farm subsidies and tax burdens.
On the other hand, the US wasn't getting what it wanted either, which was cheap goods and services and open foreign markets.
Ergo, the WTO was not helping any of the parties get what they want. Therefore, it is a good thing that it broke down. When it is in everyone's interest to come to a deal, they will strike a deal. But why stick with something that isn't working for anyone?
But again, that doesn't mean that multilateralism or multiculturalism are dead. It just means that friendships are good, but business is business. When the business interests coincide, new deals will be struck.
Elliot
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