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Time running out for international trade deal, says WTO boss Time running out for international trade deal, says WTO boss
(34 minutes later)
The World Trade Organisation (WTO) has eight months to prove its has a future, its director-general warned yesterday as he insisted it was time to break out of the "cycle of failures" that have dogged 12 years of its attempts to open up global markets. The World Trade Organisation (WTO) has eight months to prove its has a future, its director-general warned on Tuesday as he insisted it was time to break out of the "cycle of failures" that have dogged 12 years of its attempts to open up global markets.
Roberto Azevedo said it was vital that trade negotiators exploited the limited success achieved last December in Bali and devised a work programme to complete the Doha round of liberalisation talks, which began in November 2001.Roberto Azevedo said it was vital that trade negotiators exploited the limited success achieved last December in Bali and devised a work programme to complete the Doha round of liberalisation talks, which began in November 2001.
In an interview with the Guardian, Azevedo said he could understand why politicians in Europe, North America and Asia were considering cutting bilateral trade deals, but he insisted that it was still possible to make progress with a multilateral package involving all the organisation's 159 members.In an interview with the Guardian, Azevedo said he could understand why politicians in Europe, North America and Asia were considering cutting bilateral trade deals, but he insisted that it was still possible to make progress with a multilateral package involving all the organisation's 159 members.
The European Union and the US are negotiating a trans-atlantic trade and investment partnership, the talks in part motivated by frustration at the impasse in the Doha process. The European Union and the US are negotiating a transatlantic trade and investment partnership, the talks in part motivated by frustration at the impasse in the Doha process.
"They are looking at bilateral deals, for sure. Frankly, I would do the same if I was them. They all want the multilateral negotiations to move forward. What they want is to avoid a repetition of the cycle of failures that we had before.""They are looking at bilateral deals, for sure. Frankly, I would do the same if I was them. They all want the multilateral negotiations to move forward. What they want is to avoid a repetition of the cycle of failures that we had before."
After 12 years of fruitless negotiations, the WTO finally secured agreement in Bali for a package that involved streamlining customs procedures and providing assistance to the world's poorest nations. Azevedo told David Cameron, the British prime minister, in talks in London yesterday that he thought it possible to complete the bulk of the Doha round, which involves opening up trade in agriculture, manufacturing and services. After 12 years of fruitless negotiations, the WTO finally secured agreement in Bali for a package that involved streamlining customs procedures and providing assistance to the world's poorest nations. Azevedo told David Cameron, the British prime minister, in talks in London on Tuesday that he thought it possible to complete the bulk of the Doha round, which involves opening up trade in agriculture, manufacturing and services.
"We have until December to elaborate a work programme. If we are specific enough with the numbers, the methodology and the targets, then we should be in a position to conclude negotiations very quickly," he said."We have until December to elaborate a work programme. If we are specific enough with the numbers, the methodology and the targets, then we should be in a position to conclude negotiations very quickly," he said.
Asked what would happen to the WTO if the Doha talks stalled again, Azevedo said: "It would definitely be challenging. If we cannot resume negotiations and cannot prove that Bali was the beginning of a positive cycle, and not just a fluke – which I don't believe it was – then we have to sit down and think seriously about the future of the system."Asked what would happen to the WTO if the Doha talks stalled again, Azevedo said: "It would definitely be challenging. If we cannot resume negotiations and cannot prove that Bali was the beginning of a positive cycle, and not just a fluke – which I don't believe it was – then we have to sit down and think seriously about the future of the system."
The WTO said that the response to the crash of 2008-09 had been different to that during the depression of the 1930s, when countries put up tariff barriers to guard their domestic markets. But he said protectionism was "mutating", with countries using regulations rather than tariffs and subsidies to keep out foreign competition.The WTO said that the response to the crash of 2008-09 had been different to that during the depression of the 1930s, when countries put up tariff barriers to guard their domestic markets. But he said protectionism was "mutating", with countries using regulations rather than tariffs and subsidies to keep out foreign competition.
Azevedo said the growing importance of the big emerging economies, such as China, Brazil and India, had changed the nature of trade negotiations. It was no longer possible for Europe and the United States to reach an agreement and then expect every other country to sign up to it.Azevedo said the growing importance of the big emerging economies, such as China, Brazil and India, had changed the nature of trade negotiations. It was no longer possible for Europe and the United States to reach an agreement and then expect every other country to sign up to it.
"I am realistic. It will be very hard. It was hard in Bali. When I left Geneva I wasn't sure we were going to make it. I wasn't sure we were going to make it until the very last minute in Bali. That's life in trade negotiations.""I am realistic. It will be very hard. It was hard in Bali. When I left Geneva I wasn't sure we were going to make it. I wasn't sure we were going to make it until the very last minute in Bali. That's life in trade negotiations."