WTO: THE POST-CANCUN CHALLENGE

By IPS Correspondents and - - Reprint | | Print |

This column is available for visitors to the IPS website only for reading. Reproduction in print or electronic media is prohibited. Media interested in republishing may contact romacol@ips.org.

GENEVA, Oct 1 2003 (IPS) - It would behove us now to put behind us the accusations and recriminations about what happened or failed to happen at the WTO Ministerial in Cancun and focus on how best to launch a new phase of negotiations in Geneva by the end of this year, writes Carlos Perez del Castillo, president of the General Council of the World Trade Organisation. The outcome of Cancun has dampened the will of many countries to continue doing their utmost for a multilateral process which, since Doha, has been characterised by one failure after another, the author writes in this article for IPS. Some major trading partners are already talking about alternative ways of achieving free trade. Others have severely questioned the principles and organisation of the WTO and its failure to tailor itself to existing demands. Should we fail to put the negotiating process back on track, not only will the 1 January 2005 deadline for completion of this Round be jeopardised; the relevance of the multilateral trading system itself will be called into serious question. For this reason, a major and decisive new phase will be launched in Geneva this week.

The initial reaction to the outcome of the Cancun Ministerial Conference of the World Trade Organisation (WTO) has to be great disappointment. The WTO lost an unparalleled opportunity to take major decisions, give much-needed momentum to the new round of multilateral trade negotiations, and inject confidence and credibility into the multilateral trading system.

The reasons for the collapse of the talks have been the subject of much comment over the last few weeks by the mass media the world over. What is clear is that everyone now wishes to evade responsibility by pointing fingers.

While it is certain is that we are all to some extent responsible for this outcome, it is also important to realise that we all come out on the losing end, in particular the poorest countries among us which, more than any others, need a multilateral trading system that assists and protects them.

It would behove us now to put behind us the accusations and recriminations about what happened or failed to happen in Cancun and focus on how best to launch a new phase of negotiations in Geneva in order to achieve a successful outcome acceptable to all parties by the end of this year.

I am well aware of the complexity of the task. The outcome of Cancun has dampened the will of many countries to continue doing their utmost for a multilateral process which, ever since Doha, has been characterised by one failure after another. Some major trading partners are already talking about alternative ways of achieving free trade. Others have severely questioned the principles and organisation of the WTO and its failure to tailor itself to existing demands. The little time available to us before December may even prove insufficient to succeed in bringing together the widely divergent positions held by some Members on issues crucial to making headway.

It is clear that the information and coordination gaps which adversely affected the final results will have to be overcome. Likewise, thought must again be given to the political context of these negotiations and to the repercussions of this failure on the global economy, the growth and development of developing countries, multilateralism itself and international cooperation, all of which have been seriously eroded by this process.

We will have to convince the few who are now claiming victory that this setback merely serves to encourage further forms of protectionism, bilateral and regional agreements from which they will probably be excluded, trade relations where the interests of the richest countries will prevail, and worse economic forecasts — all in all, an outlook involving only greater marginalisation and poverty for them and the consequences of which they will come to regret over the next few years.

Should we fail to turn the existing situation around by the end of this year and put the negotiating process back on track, not only will the 1 January 2005 deadline for completion of this Round, and possibly even the very continuation of the Round itself, be jeopardised; the relevance of the multilateral trading system itself will be called into serious question.

For this reason, a major and decisive new phase will be launched in Geneva this week. In accordance with the concepts of transparency and inclusiveness which we have maintained throughout the Cancun preparatory process and which must both endure and be strengthened, we shall embark upon our work with an informal open-ended meeting of the General Council to ensure broad and active participation by all Members.

In spite of the delicate current situation and the huge difficulties which will have to be overcome to breathe new life into these negotiations, we sincerely believe that it is not an impossible mission. There can be no doubt that success will benefit each and every one of us, and I trust in the wisdom and collective good judgement of all Members to seek out common ground with regard to the key issues which still divide us. (END/COPYRIGHT IPS)