Moving multilateral trade talks forward

The much awaited post-Bali trade talks are facing a major setback as the World Trade Organisation (WTO) is stuck with one of the key trade deals it drafted at the Bali Ministerial conference last December. This comes as a shock following the conclusion of the negotiations at Bali that saw the Bali Package as potentially capable of resuming the stalled Doha talks. The WTO director general in his recent statements sounded optimistic that the post-Bali talks would be able to take all stake-holders on board towards implementing the various trade deals agreed at Bali. But things have taken an undesirable turn at the very outset.
One of the key deals of the Bali Package -- trade facilitation - failed to draw consensus (on the basis of single undertaking) last week among the 160 WTO-members, leaving prospects of future negotiations on an 'uncertain new ground'. The draft of the trade facilitation agreement meant to streamline, standardise and ease global customs procedures, was scheduled to be finalised within the deadline of July 31, 2014. This was decided at the Bali conference. Director General Roberto Azevedo stated in the clearest terms that the negotiations did not pave the way for a solution that would allow bridging the gap among the member-countries. Throughout the past week, Azevedo held talks with coordinators of regional groups within the WTO to try to find a way forward but without success. Rifts between members, particularly over demands from India for early materialisation of decision on stockpiling of food, had, as the reports said, threatened to scuttle the long-sought deal. India is refusing to ratify the deal, because it is unhappy with other trade negotiations over both food stocks and farm subsidies. This has already sparked criticism from the European Union (EU) and a group of 25 developed and emerging countries. The US has warned that the blockage could threaten wider future talks on Doha round. The US Secretary of State, John Kerry, on a recent visit to New Delhi, had earlier said he was hopeful that differences between India and much of the rest of the world could be resolved. India had insisted that, in exchange for signing the trade facilitation agreement, it must see more progress on a parallel pact giving it more freedom to subsidise and stockpile food grains than is allowed under the WTO rules. It got support from Cuba, Venezuela and Bolivia.
Trade facilitation was one of the ten ministerial decisions taken in Bali. It provided to simplify and modernise customs procedures and make them more transparent, thereby reducing transaction costs. The agreement also looks forward to technical assistance in supporting the developing economies and least developed countries (LDCs) to implement such reforms and thus help them integrate better into global trade. Work had started in Geneva to ensure enforcement of the Trade Facilitation Agreement at the first meeting of the Preparatory Committee held on January 31 last.
The impasse in the talks at this stage must not, however, be considered the end of the road. While India may have grounds to see visible moves in materialising its demand on food stock-piling, efforts to conclude the trade facilitation deal are critically important for improving the capacity of the developing countries to integrate themselves into the global trade regime. Hence this should figure prominently in the course of follow-up discussions, as was pledged at the Bali conference. Talks should, therefore, resume soon.