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World Development Movement analysis on the collapse of the WTO talks
30 July 2008
Benedict Southworth, director of the World Development Movement said:
“For a while it has been clear that no deal would be better than a bad deal in the Doha trade talks and this is indeed what has played out in the last 24 hours.
“The EU and US have failed to change their hard-ball negotiating tactics in the face of strong resistance from the developing world and it is they who bear the responsibility for the missed opportunity of this so-called ‘development round’. Indeed the rich countries have been aggressive and greedy during these talks and the development needs of poor countries have been completely sidelined, not just in the last nine days, but in the last seven years of discussions.
The final straw…
“The final straw for the talks yesterday was the US ignoring pleas from developing countries to be able to properly protect themselves and their vulnerable producers against sudden import surges. At a time of volatile prices and fluctuating import/export trends, such safeguards are absolutely essential to protect the livelihoods of rural producers in poor countries. Yet the US would not accept that.
“It is right that developing countries, led by India, withstood pressure to resist the bad deal on the table. Nonetheless, many developing countries are right to feel frustrated at the collapse of the talks and the wasted opportunity of the last seven years of the so-called Doha Development Round which has failed to really tackle the inequities in the present trading system.
What it means for cotton farmers in West Africa…
“Cotton farmers in West Africa, for example, have not seen, and probably will not now see, meaningful action from the US to tackle the heavily-subsidised cotton which makes it almost impossible for them to be able to compete.
Aggressive bilateral deals to follow?
“Now that these WTO talks have collapsed, a real fear is that the US and the EU will go forward with their bilateral trade agenda with added zeal. Europe has plans for bilateral trade deals with 34 countries across Asia and Latin America, as well as an aggressive agenda to sign economic partnership agreements with Africa, the Caribbean and Pacific nations. As Peter Mandelson himself has said, a system of bilateral trade agreements means “the large can strong-arm the small”. The EU should not push developing countries into signing unfair bilateral deals.
How to bring development back into the global trade talks…
“Trade negotiators from the developed world now need to recognise some core principles if the multilateral trading system is to be revived and if it is to truly work in the interests of development:
- that the principle of ‘less than full reciprocity’ from developing countries is more important than ever, if trade is to really help countries move out of poverty. Rich countries should expect to make much greater compromises than poor ones.
- that the current food, economic, climate change and oil crises require a fundamental re-think of trade liberalisation and the deregulation of economies and corporations that it entails.
- that all countries, especially poor countries, need maximum policy flexibility and policy space to be able to run their economies in ways which benefit their own people.
What we need for successful trade talks…
“In practical terms, the future of multilateral trade talks could be strong, but only if:
- There is fundamental reform of the processes at the WTO which allow developing countries to be able to fully participate in all the talks which directly them.
- The EU and US fundamentally review their approach to trade and ensure it genuinely meets the needs of global poverty.
- The EU and US commit to far more significant cuts in agricultural subsidies in order to make a tangible difference to farmers in the Global South. The EU and US should not expect a quid pro quo from poor countries on industrial tariffs.
- There is recognition that some areas of the economy including public services like health education, water, should never be part of multilateral trade talks.
“Outside of the present WTO, trade can work for development. In particular, far more emphasis could be placed on south-south trade and a recognition that trade between blocs of similar developing countries can be very beneficial for all concerned.
ENDS
Kate Blagojevic
Press officer, World Development Movement
0207 820 4900/4913, 07711 875 345, Email:
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