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TRADE: Developing Countries Close Ranks

Gustavo Capdevila

GENEVA, Nov 15 2007 (IPS) - Governments of poor countries in the World Trade Organisation (WTO) made a show of unity the day after the sixth anniversary of the start of the Doha Round of multilateral trade talks.

At least 100 countries of the developing South exhibited ‘’unity, a strong stand, and a willingness to negotiate,’’ said Brazilian Foreign Minister Celso Amorim, the coordinator of the Group of 20 (G20) bloc of developing nations brought together by their special interest in agriculture.

Several joint statements issued Thursday in Geneva by representatives of developing countries reflect their demands in all areas of the Doha Round negotiations, which cover industrial tariffs, services, trade rules and other aspects essential to poor countries, like special and differential treatment and and the implementation of existing commitments of concern to developing countries.

The Doha Declaration, approved on Nov. 14, 2001 in the capital of Qatar by the fourth WTO ministerial conference, launched the talks on trade liberalisation. But the negotiations have ground to a halt.

Differences between rich and poor countries are standing in the way of agreement on the set of rules or “modalities” that would govern the final stage of agriculture talks, when the negotiators decide on the concessions each side is willing to make.

An agreement in agriculture – the centrepiece of the Doha Round, as the developing nations once again pointed out – should facilitate understandings in the rest of the areas. But that remains a vague prospect for the time being, said the negotiators from the poor countries.

Argentine Foreign Minister Jorge Taiana told IPS that the only way the Doha Round deadlock can be overcome is ‘’by means of a more generous offer from the industrialised nations.’’ If that is not forthcoming, no solution is possible, he stressed.

With respect to the chances that the countries of the industrialised North will improve on their proposals, Taiana said ‘’I see it as unlikely, in the short-term.’’

For that reason, he underlined the importance of the talks taking place in Geneva which, he said, have been a ‘’show of unity and coordination among the developing countries.’’

Amorim referred ironically to media headlines in rich countries over the last few days that have mentioned supposed divisions among developing nations and have accused Brazil and India of blocking the negotiations.

The minister suggested that ‘’sceptics and critics’’ take a look at the various documents approved by the developing nations, which defend their common objectives.

Success in the Doha Round was also depicted in the debates among the developing countries as a life raft in the face of the risk of a global slowdown caused by financial crises in the United States and Europe.

“A successful outcome of the Doha Round in the next few months would be an excellent antidote to this uncertainty. We now need an early successful conclusion even more than before,” said Indian Minister for Commerce and Industry Kamal Nath.

But there is another obstacle in the negotiations, said the developing country delegates.

“Regarding the way ahead, we have to acknowledge that the major uncertainty centres around the TPA (Trade Promotion Authority) in the U.S.,” said Nath, referring to the fast track negotiating authority granted to the U.S. president by Congress, under which the legislature can approve or disapprove trade agreements but cannot amend them.

The latest TPA granted by Congress expired in July. For the administration of George W. Bush, who begins his last year in office in January, the request for an extension represents an awkward challenge in an election year, U.S. political analysts have warned.

The United States’ partners in the WTO have expressed uncertainty with respect to an eventual accord reached with U.S. negotiators who lack fast track negotiating authority.

For that reason, “we call upon the U.S. to tell us when this can be expected. This will obviously have a key role to play in the road map towards conclusion (of the Doha Round). We are willing to go along, but it is important that the U.S. now provide us the comprehensive road map,” said the minister from India.

Participating in the deliberations by developing countries this week in Geneva were the G20, the G33, which represents poor countries that are demanding greater flexibility in the trade of special agricultural products that are vital for their rural economies, and Nama-11, (Non Agricultural Market Access), which groups 11 developing countries demanding that industrialised nations respect the principle of special and differential treatment and make greater cuts than developing countries.

Other participants were the ACP Group of former European colonies in Africa, the Caribbean and the Pacific, the 50 Least Developed Countries (LDCs), the African Group, the Small Vulnerable Economies (SVEs), and Cotton-4, consisting of four African countries – Benin, Burkina Faso, Chad and Mali – whose economies depend on cotton and which are demanding fair treatment because of the damages they have suffered as a result of subsidies to cotton farmers in the United States.

The final declaration pledged to “maintain unity and cooperation among developing country groups,” which “reasserted their readiness to engage with other WTO members with a view to achieving an outcome acceptable to all in the shortest possible time.”

After several months of discussions and various meetings between and among the groups, these statements are a sign of “seriousness, coordination and will on the part of the developing countries,” said Taiana.