Did the ministerial conference of the World Trade Organisation (WTO) held in Bali, Indonesia late last year set off a real momentum? Views are divergent. Broadly speaking, while moderates consider it a stepping stone to work on future work programmes, there are stern critics who are in no mood to be assuaged by what they call 'pious intentions' not guaranteeing any concrete course of action. This is in particular references to the issues of the developing economies and least developed countries (LDCs) about providing them a win-win situation for navigating the intricate terrain of global trade. The fact, however, remains that the Bali conference has indeed set grounds for further negotiations in the aftermath of the stalled Doha talks for more than a decade. The WTO director general, Roberto Azevêdo, calls this a momentum. In a meeting last month with European parliamentarians, he asked them to help keep up the momentum.
Having been able to deliver the Bali package with some of the issues of Doha Development Agenda (DDA), the director general sounds more pragmatic these days than he seemed immediately after the WTO Bali Ministerial as the hype of 'success' is gradually receding to the background. The director general has recently said in a matter of fact tone, 'Bali is just the start.'
One need not be cynical at this stage for the simple reason that the post-Bali journey is yet to be launched. The two significant tasks ahead are to implement the decisions reached in Bali, and prepare a clearly defined work programme on the remaining DDA by the end of 2014. Ideally, these tasks are to form the bulk of the WTO's work during the course of the current year. The true significance of the Bali package, and the tangible realisation of its benefits, will only be achieved as a result of the actions that the member-countries of the WTO set into motion in the coming months.
This challenge is particularly critical regarding the agreement on Trade Facilitation, given its scope and the complexity of the commitments in Bali. This decision provides to simplify and modernise customs procedures and make them more transparent, thereby reducing transaction costs. The Agreement also provides for technical assistance to support developing countries and LDCs to implement these reforms, and therefore help them integrate better into global trade. Work has already started in Geneva to ensure the entry into force of the Trade Facilitation Agreement with the first meeting of the Preparatory Committee held on January 31. This Committee is to commence step by step execution of the tasks to ensure entry into force of the Agreement and prepare for its operationalisation.
In this context, it may be encouraging to hear what the WTO DG told the European parliamentarians recently. "Our ability to move the whole of the WTO agenda forward", he said, "hinges on our ability to fulfil those promises to provide timely and effective technical assistance for developing and least-developed countries. To support those countries, the Secretariat (WTO) will continue its needs assessment programme to help identify what support they need, as early as possible." He added further that the WTO would help facilitate interaction between the donors and the beneficiaries. And parliamentarians can help maintain the momentum here.
Trade facilitation was one of the ten ministerial decisions taken in Bali. There were four decisions on agriculture. This is an important pillar of the DDA, which the WTO has been working on since 2001. So, taking the right move on agriculture would be extremely crucial. In fact, any future multilateral engagement will require definite outcomes in agriculture. The decision on cotton, a matter of vital importance to African countries, needs to be worked on. Further talks will be required concerning food security programmes in developing countries, which allow for stockpiling of grains for subsequent distribution to the poor.
Beside these, the Bali package contained a series of development issues, especially a specific package for the LDCs that includes reforms to create export opportunities for the LDC service providers in developed-country markets, improvements in preferential schemes which extend exemption from tariffs and quotas to the LDC exports, and simplification of the accompanying rules of origin towards improving market access opportunities for the LDCs. There was also the decision to introduce a monitoring mechanism to provide for the review and strengthening of special and differential treatment provisions in respect of the LDCs. A move forward in the days ahead would involve concrete progress in the implementation of these decisions.
In order to make headway in these areas, as the WTO director general often urges, there is the need for readiness to be creative and an open mind to new ideas that may allow members to overcome the most critical and fundamental stumbling blocks. This creativity, however, has to be coherent with the DDA mandate. The process must continue to be inclusive and transparent, engaging all members at all stages of the negotiations.
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