Dead end for WTO talks

Last-ditch talks to salvage a deal in the seven-year Doha round of global trade negotiations broke down dramatically in Geneva on Tuesday night, after India, China and the United States fell out over measures to protect poor farmers.

As recriminations began, the head of World Trade Organisation (WTO) Pascal Lamy warned that the wrangling among the organisation’s leading members had allowed a package worth more than $130-billion (about R973-billion) a year in tariff savings to “slip through their fingers”.

Clinching a deal would have provided a powerful vote of confidence in globalisation from the WTO’s 153 members, in the face of the world economic slowdown.

But after nine gruelling days, Lamy was forced to accept that the US, China and India were still too far apart for a deal.

Negotiators from the major trading blocs were already blaming each other for the failure. Brazilian foreign minister Celso Amorim suggested particular individuals within the G7 were responsible for the failure.


“If I were the coach, I would replace the players and see if a different result was possible.”

The US trade representative, Susan Schwab, said it was “unconscionable” that developing countries were insisting on shielding their farmers.

“In the face of the food price crisis, it’s ironic that the debate came down to how much and how fast nations could raise their barriers to imports of food.”

Kamal Nath, India’s trade minister, said he was representing the position of all the G33 members, who were “concerned about the livelihood of poor and subsistence farmers”, and said he hoped the talks could eventually be revived.

EU trade commissioner Peter Mandelson said it was “heart-breaking” that the talks had failed because of a “small gap in numbers” over when protection for farmers could be triggered.

“But I’m afraid that on this subject, an irresistible force met an immovable object and the rest is history.”

The talks came perilously close to collapse last Friday, but limped into a second week after Lamy tabled a draft agreement and exhorted ministers to keep talking.

But a war of words broke out between the US and key developing countries on Monday and the atmosphere remained sour.

The US objected to the details of a “special safeguard mechanism”, designed to protect farmers in the developing world against temporary surges in cut-price imports of cotton and rice.

Tuesday morning, trade officials scrambled to draw up a compromise that would satisfy both sides. But the US insisted the issue was a matter of principle.

“We’re committed to not going backwards,” a US source said.

Mandelson had come under intense political pressure over promised reforms to Europe’s lavish common agricultural policy.

France’s President Nicolas Sarkozy had demanded an immediate meeting with Mandelson, and rallied a cohort of other countries including Italy and Greece to say they might reject the deal in its current form.

Failure of the Geneva talks is a severe personal blow to Lamy, himself a former EU trade commissioner, who had staked his reputation on securing agreement.

Lamy said he had spent 60 hours trying to reconcile the Indian and American positions. —

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.

Advertising

Eastern Cape schools to only open for grades 3, 6...

The province says the increase in Covid-19 cases has made it re-evaluate some decisions

Malawi celebrates independence day, but the first president left his...

The historical record shows that Malawi’s difficulties under Hastings Banda were evident at the very moment of the country’s founding

Gauteng health MEC Bandile Masuku’s first rule: Don’t panic

As Gauteng braces for its Covid-19 peak, the province’s MEC for health, Bandile Masuku, is putting his training to the test as he leads efforts to tackle the impending public health crisis
Advertising

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday