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Bali summit invigorated World Trade Organisation, says Roberto Azevêdo Bali summit invigorated World Trade Organisation, says Roberto Azevêdo
(about 4 hours later)
The obituaries were being written, the epitaph readied for the headstone. With negotiations deadlocked, the sense in Bali earlier this month was that the World Trade Organisation was just several hours and one fresh stalemate from irrelevance. The obituaries were being written, the epitaph readied for the headstone. With negotiations deadlocked, the sense in Bali this month was that the World Trade Organisation (WTO) was several hours and one fresh stalemate away from irrelevance.
Two weeks later the WTO's director-general, Roberto Azevêdo, is in bullish mood as he gives his first big set-piece interview since ministers from 159 countries signed off on a modest package of reforms to the global trading system.Two weeks later the WTO's director-general, Roberto Azevêdo, is in bullish mood as he gives his first big set-piece interview since ministers from 159 countries signed off on a modest package of reforms to the global trading system.
Where once there was concern that the WTO would become a Geneva museum piece, his talk now is of using Bali as the springboard to complete the Doha round of trade liberalisation talks.Where once there was concern that the WTO would become a Geneva museum piece, his talk now is of using Bali as the springboard to complete the Doha round of trade liberalisation talks.
Asked whether the WTO has been reborn in the past fortnight, he replies: "I wouldn't say reborn because it wasn't dead. But it has been reinvigorated that's for sure."Asked whether the WTO has been reborn in the past fortnight, he replies: "I wouldn't say reborn because it wasn't dead. But it has been reinvigorated that's for sure."
Azevêdo, a Brazilian career diplomat before taking over at the WTO in September, says a deal centred on improving customs procedures has provided "the belief and the confidence that we can do business".Azevêdo, a Brazilian career diplomat before taking over at the WTO in September, says a deal centred on improving customs procedures has provided "the belief and the confidence that we can do business".
Trade experts say a dose of realism is needed. After 12 years of stalemate, ministers in Bali managed to pick the low-hanging fruit from the Doha agenda – an ambitious programme named after the Qatar city where it was launched in 2001. The bulk of the negotiations – complex and intensely political – remains to be completed. But now that the WTO has got its mojo back, a relieved Azevêdo insists further breakthroughs are possible. Trade experts say a dose of realism is needed. After 12 years of stalemate, ministers in Bali managed to pick the low-hanging fruit from the Doha agenda – an ambitious programme named after the Qatar city where it was launched in 2001. The bulk of the negotiations – complex and intensely political – remain to be completed. But now that the WTO has got its mojo back, a relieved Azevêdo insists further breakthroughs are possible.
"The pressure was incredible. Everybody knew what the consequences of failure would be. It would cost the system dearly. I was relieved but there was also a sense of incredible responsibility because the question now is 'What next?'. "The pressure was incredible. Everybody knew what the consequences of failure would be. It would cost the system dearly. I was relieved but there was also a sense of incredible responsibility because the question now is 'What next?'
"This is the beginning of the road. The road only gets tougher from here. So my emotions were relief, happiness, but at the same time feeling that there was a lot of hard work ahead.""This is the beginning of the road. The road only gets tougher from here. So my emotions were relief, happiness, but at the same time feeling that there was a lot of hard work ahead."
Azevêdo, 56, explains why Bali did not join the long list of failed WTO summits in the 20 years since the last multilateral deal was signed 20 years ago. Firstly, there was recognition that agreement on the entire Doha agenda, which involves agriculture, manufacturing and services, was a non-starter. Azevêdo, 56, explains why Bali did not join the long list of failed WTO summits in the 20 years since the last multilateral deal was signed. Firstly, there was recognition that agreement on the entire Doha agenda, which involves agriculture, manufacturing and services, was a non-starter.
"We identified a problem, that we were not in a position to conclude the Doha round in the way we had been negotiating before, so we tried to do it in a different way. There was a reality check where we looked at areas that were promising and doable.""We identified a problem, that we were not in a position to conclude the Doha round in the way we had been negotiating before, so we tried to do it in a different way. There was a reality check where we looked at areas that were promising and doable."
Secondly, he found a way of conducting the talks that avoided alienating the bulk of the membership.Secondly, he found a way of conducting the talks that avoided alienating the bulk of the membership.
"Things changed changed several weeks before Bali, particularly in the process", said Azevêdo. "That was important. We would normally have a mechanism where we negotiate in small formats, then that outome is multilateralised to the rest of the membership on a take it or leave it basis. We changed that a little bit. "Things changed several weeks before Bali, particularly in the process," said Azevêdo. "That was important. We would normally have a mechanism where we negotiate in small formats, then that outcome is multilateralised to the rest of the membership on a take it or leave it basis. We changed that a little bit.
"It doesn't mean we didn't have meetings of small groups, but we changed the participants to include those that had particularly difficulties in each issue. It was not a club that was deciding everything. We had all the interested parties in the inner circle, and this included big countries and small countries, developed countries and developing countries. It didn't matter what the size was: what mattered was the degree of sensitivity."It doesn't mean we didn't have meetings of small groups, but we changed the participants to include those that had particularly difficulties in each issue. It was not a club that was deciding everything. We had all the interested parties in the inner circle, and this included big countries and small countries, developed countries and developing countries. It didn't matter what the size was: what mattered was the degree of sensitivity.
"Once there was understanding in a small group each issue was discussed in an open format. It was painstakingly slow because of the number of countries. The common wisdom was that open ended meetings were no go. We proved that wrong.""Once there was understanding in a small group each issue was discussed in an open format. It was painstakingly slow because of the number of countries. The common wisdom was that open ended meetings were no go. We proved that wrong."
Finally, the sense of crisis helped to concentrate minds."Before we left for Bali, a delegation of small countries came to me and said whatever happens don't let this thing drop. It was a very clear message from them. There was a lot of instinct involved, determining what would work and when. Some times I had the solution to the key problem but I didn't provide it. I knew that if I gave the solution too early they would shred it apart but that if waited until the 11th hour in Bali they would take it." Finally, the sense of crisis helped to concentrate minds. "Before we left for Bali, a delegation of small countries came to me and said whatever happens don't let this thing drop. It was a very clear message from them. There was a lot of instinct involved, determining what would work and when. Some times I had the solution to the key problem but I didn't provide it. I knew that if I gave the solution too early they would shred it apart but that if we waited until the 11th hour in Bali they would take it."
The WTO's critics fall into two camps. There are those who see it as an organisation dedicted to delvering for Western multinationals at the expense of poor people. Conversely, there are those so frustrated by the snail-like pace of WTO talks that they are seeking to cut bliateral deals such as the EU-US trade partnership. The WTO's critics fall into two camps. There are those who see it as an organisation dedicated to delivering for western multinationals at the expense of poor people. Conversely, there are those so frustrated by the snail-like pace of WTO talks that they are seeking to cut bilateral deals such as the EU-US trade partnership.
Azevêdo rejects both criticisms. "For the first time there was a package on the table that was supported by large, medium, small and the smallest countries. Everyone. They all wanted a deal."Azevêdo rejects both criticisms. "For the first time there was a package on the table that was supported by large, medium, small and the smallest countries. Everyone. They all wanted a deal."
He added that the transpacific and transatlantic trade deals being discussed involved countries where markets were already pretty much open.He added that the transpacific and transatlantic trade deals being discussed involved countries where markets were already pretty much open.
"The big frontier involves the big emerging players – China, India, Brazil. They are the people you want to do business with and it is here at the WTO that you are going to get them round the table.""The big frontier involves the big emerging players – China, India, Brazil. They are the people you want to do business with and it is here at the WTO that you are going to get them round the table."
At Bali's conclusion of the meeting, ministers gave Azevêdo 12 months to piece together a road map for the conclusion of the Doha Road. At Bali's conclusion of the meeting, ministers gave Azevêdo 12 months to piece together a road map for the conclusion of the Doha round. So how long has he got to finish the job?
So how long has he got to finish the job? "Not 12 years," he said. "I am not going to take bets about how long it will take. But the world changes really rapidly, in terms of business, politics and culture. You can't have a system that takes two to three decades to respond. It has to be quicker than that but I am not going to be specific because that would put a sword over my head."
"Not 12 years. I am not going to take bets about how long it will take. But the world changes really rapidly, in terms of business, politics and culture. You can't have a system that takes two to three decades to respond. It has to be quicker than that but I am not going to be specific because that would put a sword over my head." Some say Doha is like Jarndyce and Jarndyce, the never-ending court case in Dickens' Bleak House. So will the talks ever be concluded? "I hope so in some shape or form. Developing countries want it. Developed countries want it."
Some say Doha is like Jarndyce V Jarndyce, the never-ending court case in Dickens' Bleak House. So will the talks ever be concluded? "I hope so in some shape or form. Developing countries want it. Developed countries want it." New terms of trade: pledges that will open borders
The package of measures agreed by the WTO in Bali has three main elements:
Trade facilitation
This is a binding pledge by all WTO countries to make it easier for goods to cross borders. It involves simplifying customs procedures, removing red tape and rooting out corruption. Hailed by the WTO as one of the biggest reforms since it was founded in 1995, benefits to the global economy have been estimated at between $400bn (£244bn) and $1tn. Poorer countries will be given time and financial help to improve infrastructure and training.
Food security
Talks in Bali almost foundered owing to US pressure on India to stop stockpiling subsidised grain. New Delhi said the domestic support was needed to feed India's poor. A "peace clause" was agreed in which India was allowed to keep its regime in place but only the basis that the agreement was temporary, with a permanent deal to be concluded within four years.
Help for the least developed countries.
Many Western countries have already agreed duty-free and quota-free access to their markets for goods from more than 30 of the world's poorest countries. Those that have not done so for at least 97% of products "shall seek" to improve product coverage. In addition, there will be simplified "rules of origin" for the world's poorest countries. The WTO says these will help the least well off countries identify products as their own goods, making it easier to get preferential treatment in importing countries.
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