Monday, July 28. 2008
Posted by Nanne Zwagerman in
International Economics on Monday, July 28. 2008
A short commentary on the Doha Round of WTO negotiations:
The talks being held at this time in Geneva are not making enough progress. The latest compromise text that had been drawn up by Pascal Lamy is opposed by India, and the U.S. is also blaming China for going back on earlier promises, as the Associated Press reports.
[Tuesday Update: The talks have now collapsed in what the Telegraph calls a 'blow to globalisation']
One fascinating element of the talks is the emergence of a core group of 7 WTO members who consulted closely on the new deal. Here's an excerpt from the Bridges daily updates:
Seven of the world's largest trading powers emerged front and centre in the struggling talks at the WTO on Wednesday, meeting all afternoon and late into the night in an attempt to find a way out of the impasse in governments' push for breakthrough deals on agricultural and industrial goods trade. [...]
Australia, Brazil, China, the EU, India, Japan, and the US were discussing non-agricultural market access (NAMA), agricultural market access, and trade-distorting farm subsidies, a source said. This provides a useful mirror for the current balance of power in the world in the trade arena. The absence of Canada is notable. Keep in mind that Russia is not (yet) a WTO member.
Incidentally, the WTO talks don't seem to arouse much interest in the west. Daniel Drezner has a post on the lack of excitement, the conclusion of which could be paraphrased as 'wake me up when the protestors return'. On the other hand, the negotiations still seem to be big news in India.
As the talks were being held in a smaller circle, many ministers had little to do, and so the 'smarter ones' went shopping last week. Reuters reports today that this was a wise choice, too, as many found themselves without enough clean shirts after the talks were extended.
One would almost wonder what the reporters themselves are doing in Geneva. I hear the weather is nice, and Geneva has a wonderful lake.
The seeming lightness of the current negotiations might be caused by the impossibility of actually reaching an agreement. But it could also be a reflection of the fact that either way, the talks themselves will have little effect on the actual current of globalisation, which is being undercut by shifting fundamentals.
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