World Bank President Paul Wolfowitz urged the G8 +5 leaders (which includes South Africa) over the weekend to reach an agreement in the faltering Doha round trade talks when they meet in St Petersburg on July 17.
The Doha round has been reeling against the ropes after talks in Geneva in the first week of July ended without a deal, adding to the already negative tone, as these talks have been faltering for five years now. Added to the problems is the fact that the United States’s “fast track” authority to pass trade agreements expires next year.
Wolfowitz sent a letter to the G8 +5 leaders (Brazil, China, India, Mexico and South Africa) urging them to reach an agreement on Friday.
“The upcoming gathering of the G-8 members and the planned outreach session with leaders from China, Brazil, India, South Africa, Mexico, the African Union and international organisations offers a unique opportunity we must take advantage of if we are to make urgently needed progress in the Doha trade talks. With time running out, our collective efforts can make the difference,” said Wolfowitz.
“We can work to lift millions from poverty, boost developing country income, improve global market access and reduce taxpayer and consumer costs for all or allow the whole effort to collapse, with harm to everyone,” he said.
Wolfowitz said good intentions were in generous supply and made the important remark that the US Trade Representative had committed “to do our part” and had pointed out last week that there were plenty of examples of trade rounds that had faltered and ultimately been resurrected.
The major stumbling blocks to the talks have been the fact the US and European Union have been pitted against each other and against developing countries on issues ranging from agriculture to industrial tariffs and liberalisation of the service sector.
Wolfowitz referred to more “good intentions” via a remark by the EU Trade Commissioner: “The EU Trade Commissioner said there is a three way bargain here. The G20 wants steeper cuts in US farm subsidies before accepting required
cuts in industrial goods.
Washington can unlock this by stepping forward with a better offer. If this happens the EU, will at the same time meet them both with a strengthened offer.”
Wolfowitz said while successfully concluding the Doha round would depend on detailed formulas and a painstaking technical process, “there was the opportunity for the leaders gathered in St Petersburg to provide the momentum essential to success”.
“The world’s poorest people, the 1,2-billion living on less than $1 a day, are counting on your good intentions being transformed into decisive action, just as last year when your resolute political leadership launched the historic multilateral debt relief initiative,” he said.
“A pro-development result will yield gains for rich and poor alike. It would be an important step on the path to full liberalisation which could eventually generate $300-billion a year in additional production for the world’s economy. Developing countries could gain by as much as $86-billion alone, dwarfing annual bilateral assistance efforts,” said Wolfowitz.
In conclusion Wolfowitz said: “I urge all participants in the July 17 meeting to come prepared to compromise and commit to success.” – I-Net Bridge