Collapse of Doha Round of talks not an option this year

By Mark Oloo

As we near the close of the first quarter of the year, there is certainly no end in sight to political setbacks at the Doha Round of global trade talks.

And for the umpteenth time, the World Trade Organisation (WTO) has conceded the nine-year-old talks are in limbo due to suspicion and mischief.

Last week’s statement by WTO Spokesman Keith Rockwell that the talks could end this year, if and only when parties embrace political commitment, could not have come at a better time.

Mr Rockwell admits a deal to open up markets and cut tariffs is elusive because some countries have failed to translate their promises into action at the negotiating table.

His remarks to a reporters’ workshop in London came as countries appeared to increasingly shy off over political and technical barriers to consensus.

For any point of view, however, it is clear efforts to secure a deal at the talks — which began in 2001 in Qatar with a focus to free up world trade and assist poor members by cutting tariffs and subsidies in rich countries —have been overshadowed by wariness.

For several years, trade relations have been in a downward spiral since the negotiations began but negotiators should know this is a make or break year for the Doha Round.

Can’t the Doha Round of trade talks be taken to the next level? This is perhaps the greatest headache even to WTO itself. The G20 group had set 2010 as the target for concluding the Doha Round.

Initially, it was thought there was renewed enthusiasm when the talks were reignited after collapse two years ago following a dispute between the US and Europe, and India and China, on protection for farmers in rich economies and shields for industrial goods from developing nations.

While large economies appear to have the ability to sway the negotiations and delay a deal, it would be fair to give the negotiations a chance and offer a lifeline to world trade.

The countries should have taken advantage of the global readiness to invest political goodwill to strike a deal in a process that would give impetus to global trade.

Negotiators should rise above parochial interests, identify the gaps and tackle hard-line issues surrounding agriculture and industrial goods.

As several countries battle poverty and disease, it is expected gains from the Doha Round will result in a much bigger stimulus package than all bailout plans taken together. This is why it is foolhardy to sabotage the talks.

International pressure

The conclusion of the negotiations is tipped to offer sustenance to global trade through the injection of political energy in the required levels.

What is required is a win-win situation. While some of the rich countries may not be keen enough to realise the much sought after deal, it is hoped international pressure will soon force them to act.

Today, the world is more responsive than it was a decade ago.

Change may not come immediately, but it certainly will.

Unyielding negotiators appear to have undermined the long-standing dream of a free, yet productive, global trade.

This is the time to rise above mischief and pursue value addition towards competitiveness, lower cost of borrowing and enhanced market penetration, especially for low-income countries. Last year’s shrink in global trade by 12 per cent was, for instance, as a result of rising cost of borrowing, fall in consumer demand and changes in global supply management.

As many countries embrace protectionism due to political pressure and effects of the global meltdown, WTO members should seek policy review to put the situation in check. Rockwell admits there has been some slippage with regards to trade policies.

Efforts must also be made to mitigate the effects of the global financial crisis and raise contributions from lender countries towards aid for trade from $30 billion last year.

—The writer is a sub-editor with The Standard

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