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WTO DOHA ROUND AT CRUCIAL JUNCTURE

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GENEVA, Jul 1 2004 (IPS) - The Doha Development Agenda of the WTO is at a crucial juncture: by the end of July we need to secure a framework package for agriculture and industrial products and an accord which better defines how we address cotton subsidies and the so-called Singapore Issues (investment, competition, transparency in government procurement, and trade facilitation), writes Supachai Panitchpakdi, Director-general of the World Trade Organisation. In this article, the author writes that if governments and their constituents lose faith in the ability of the Doha Development Agenda to deliver results we will see a growing imbalance between multilateral and bilateral deal-making. This could shake the foundations of non-discrimination and transparency upon which the multilateral trading system is built. Common ground must be found, and quickly. International business and the global trade machine will certainly not wait for us to move. Discriminatory market access arrangements will become commonplace and the law of the jungle will prevail. The losers every time will be the poorer, developing countries.

The Doha Development Agenda, launched in 2001 by the member countries of the World Trade Organisation (WTO), is at a crucial juncture. By the end of July we need to secure a framework package for agriculture and industrial products, and an accord which better defines how we address cotton subsidies and the so-called Singapore Issues (investment, competition, transparency in government procurement, and trade facilitation). These were among the most difficult areas faced by ministers at our 2003 Ministerial Conference in Cancun. It is clear that without movement on these issues there will be no movement at all.

Though July is not the end of this round of negotiations, agreement on a framework package by this date is indispensable if they are to have a successful outcome. Otherwise significant progress during the remainder of the year will be impossible, which would mean a highly uncertain future for everyone.

All the 147 WTO member countries –which comprise 92 per cent of the world’s population and 95 per cent of world trade — are engaged and starting to show flexibility in key areas. At this stage, our challenge is to translate these general expressions of political commitment into concrete progress.

In agriculture, for instance, we have now on the table an historic offer from the EU to eliminate all export subsidies — a ground-breaking move in an area which has been controversial for many years. Of course, some differences remain, but the important point is that we need all participants to make a real effort to narrow gaps so as to enable deals that are acceptable to all.

Anything which distracts attention from achieving a successful package will be counter-productive and would risk forfeiting the advances made so far. For once we have a real chance to achieve substantial reform in trade in agricultural products, a sector which is very important to many developing countries. Breakthroughs that we only dreamed of just a few years ago could actually become reality if we all work together. A breakthrough in agriculture will unlock the Round.

On the other hand, in agriculture and non-agricultural market access, WTO members are ready to accommodate the different capacities of developing countries. There is also increased understanding that we should not overload the weaker and more vulnerable members. For example, in agriculture, the prevailing view is that less developed countries (LDCs) should be exempt from commitments to reduce tariffs and that the preferential access which developing countries enjoyed in other markets should be taken into account.

Furthermore, in non-agricultural market access, LDCs are not expected to apply any agreed reduction formula to their tariffs or to necessarily take part in any sectoral approach. In both areas there is recognition of the need to meaningfully address the question of erosion of preferences. Moreover, recent signals from major players have also given an indication of their relatively modest levels of expectation from the smaller and more vulnerable developing countries. There is also a growing body of opinion among WTO members that favours including in the July package the important work, which will be ongoing, to make existing special and differential treatment more precise, effective, and operational. We now need a constructive response to strengthen the sense of convergence for a July package.

We should be mindful that there are no guarantees that this window of opportunity will still be open if framework agreements are not secured by July. The global political landscape is continually evolving. Failure to secure a framework agreement may mean the unravelling of commitments made by developed countries to eliminate agriculture export subsidies and other subsidised forms of export competition.

If governments and their constituents lose faith in the ability of the Doha Development Agenda to deliver results we shall, no doubt, see a growing imbalance between multilateral and bilateral deal-making. This could shake the foundations of non-discrimination and transparency upon which the multilateral trading system is built. These core principles not only help level the playing field between developed and developing countries, but also make the international trading environment a more predictable and less complex place to do business.

Common ground must be found, and quickly. Otherwise the world trading system will have failed at some of its most important objectives. International business and the global trade machine will certainly not wait for us to move. Discriminatory market access arrangements will become commonplace and the law of the jungle will prevail. The losers every time will be the poorer, developing countries. (END/COPYRIGHT IPS)

 
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