Who killed the trade talks?
Mohammad Ali Sattar | Sunday, 3 August 2008
IF talks on international forums fail, it sends out a very appalling indication to the world populace. It is a bad omen for the global economy, be it the tycoons of the First World or the farmers of the Fourth. It is a matter of double concern if any group of people representing their countries fails to reach an agreement relating to economy.
The recent World Trade Organisation (WTO) negotiations in Geneva under Doha round came to a sad end on July 29. Actually the whole exercise which started about seven years back was declared over. The long debates and deliberations during this period never had any positives. It could not create any hope thus far, albeit its continued existence. The reason it was finally abandoned was mainly due to the differences between the US and the G-33 group of developing countries. The US came out stronger than the group is now evident. That the efforts were serious as reports say, to salvage the sinking ship. It sank finally.
This time too the point of acrimony was agriculture. And this time too the US tried its best (or has successfully?) put the blame on the G-33 countries. It has been persuading for deals which are unacceptable to the G-33 members. As usual the US was imposing its conditions. The US endeavour to put its position on top was the problem and finally blew out of proportion. It has sidelined the needs and realities of the developing countries, time and again. The obstinacy of the US and its unwillingness to give mileage to the needy was the immediate cause of frustration and the final break up.
According to reports, the US has blocked a deal that would have resulted in more than $130 billion a year in tariff savings.
So the end came due to the unilateral stand taken by the US. Seldom has it considered giving rooms to the members of the Third World. Agriculture is the mainstay of the world economy and it will remain so for a long long time to come. It still is the strength of the civilization. The man may have reached the moon and other planets, he may have been exploring the space miles from the earth but all his forces and resources come from here - the land.
The US seems to ignore this basic point. While its advanced agriculture gets due share and attention, it is not ready to appreciate the problems faced by others. It continues to act solely on its whims and wishes. It does not have too many economic fronts left to fight against. It has already been playing a key role in these sectors. It can now share its wealth and strength in agriculture with others, mostly who need it.
With the failure of the WTO talks in Geneva, the G-33 should be wake up to the reality. This should make them wiser. At least, they should be wise enough to understand that the US is not with the group of developing countries. The US should also speak out its mind and should not involve itself in such negotiations where they come with predetermined answers.
Why did US actually oppose the moves of G33? It is because they demanded special safeguard mechanisms to protect farmers in the developing world against temporary surges in cut-price imports of cotton and rice. What is in there for blocking it? Protecting subsistence farmers should have been the main aim of the meet. At least, that is what it is meant for.
The US conveniently ignores what it does in its domestic sector. It provides massive subsidies to its farmers (but opposes such moves in other economies) and insists on its own tariff and disturbs the international market pricing. The exercise causes incalculable destitution to the farmers in developing countries.
The outcome of the WTO meeting in Geneva could be a short-term gain for the US, but it could be a situation for the developing countries from where they will emerge stronger in the future.
The recent World Trade Organisation (WTO) negotiations in Geneva under Doha round came to a sad end on July 29. Actually the whole exercise which started about seven years back was declared over. The long debates and deliberations during this period never had any positives. It could not create any hope thus far, albeit its continued existence. The reason it was finally abandoned was mainly due to the differences between the US and the G-33 group of developing countries. The US came out stronger than the group is now evident. That the efforts were serious as reports say, to salvage the sinking ship. It sank finally.
This time too the point of acrimony was agriculture. And this time too the US tried its best (or has successfully?) put the blame on the G-33 countries. It has been persuading for deals which are unacceptable to the G-33 members. As usual the US was imposing its conditions. The US endeavour to put its position on top was the problem and finally blew out of proportion. It has sidelined the needs and realities of the developing countries, time and again. The obstinacy of the US and its unwillingness to give mileage to the needy was the immediate cause of frustration and the final break up.
According to reports, the US has blocked a deal that would have resulted in more than $130 billion a year in tariff savings.
So the end came due to the unilateral stand taken by the US. Seldom has it considered giving rooms to the members of the Third World. Agriculture is the mainstay of the world economy and it will remain so for a long long time to come. It still is the strength of the civilization. The man may have reached the moon and other planets, he may have been exploring the space miles from the earth but all his forces and resources come from here - the land.
The US seems to ignore this basic point. While its advanced agriculture gets due share and attention, it is not ready to appreciate the problems faced by others. It continues to act solely on its whims and wishes. It does not have too many economic fronts left to fight against. It has already been playing a key role in these sectors. It can now share its wealth and strength in agriculture with others, mostly who need it.
With the failure of the WTO talks in Geneva, the G-33 should be wake up to the reality. This should make them wiser. At least, they should be wise enough to understand that the US is not with the group of developing countries. The US should also speak out its mind and should not involve itself in such negotiations where they come with predetermined answers.
Why did US actually oppose the moves of G33? It is because they demanded special safeguard mechanisms to protect farmers in the developing world against temporary surges in cut-price imports of cotton and rice. What is in there for blocking it? Protecting subsistence farmers should have been the main aim of the meet. At least, that is what it is meant for.
The US conveniently ignores what it does in its domestic sector. It provides massive subsidies to its farmers (but opposes such moves in other economies) and insists on its own tariff and disturbs the international market pricing. The exercise causes incalculable destitution to the farmers in developing countries.
The outcome of the WTO meeting in Geneva could be a short-term gain for the US, but it could be a situation for the developing countries from where they will emerge stronger in the future.