Trade justice hangs in the balance

-17/12/05

An increasingly fractious impasse continue


Trade justice hangs in the balance

-17/12/05

An increasingly fractious impasse continues at the vital World Trade Organisation (WTO) talks in Hong Kong, writes John McGhie for Christian Aid, the UK-based international development agency.

Friday 16 December 2005 was slated as the day during which a draft ministerial text would emerge and form the basis for an agreement It was meant to be a day when the European Union and the US put their latest version of a text on the liberalisation of services on the table.

There was even hope that the long discussed deal on market access for the poorest member nations would finally appear.

But by midnight Hong Kong time, there was no real deal, nothing on services or Non Agricultural Market Access. All that finally emerged were two pages of a text on agriculture that only showed how little agreement has been reached and how far ambitions have now been scaled down.

One of the main agricultural issues concerning all countries is that of subsidies. The latest draft failed to resolve differences on two counts. First, there is no agreement on an end date for export subsidies. Second, there is an uneasy compromise on the issues of food aid and state trading enterprises – two ways that rich countries also subsidise their food exports to the developing world.

Observers are saying that the text is so contentious it is unlikely to remain in its current form for long. Discussions will continue through the night and all tomorrow.

The only issue that was really interesting British journalists was the latest outburst from Peter Mandelson, Europeís trade Commissioner.

If confirmation were needed that these talks had reached rock bottom, Mr Mandelson provided it. Emerging from behind closed doors, he stated to the world’s press that negotiations were going backwards. Some people, he said ñ could he possibly have been referring to the Americans? ñ had lost sight of strategic objectives as they made short term tactical decisions.

While he was still confident of an agreement at some point in the current Doha Round ñ scheduled to end next year ñ it was hard for the Commissioner to see progress in Hong Kong. He was not amused.

Was this all bluff from the master of spin, designed to prod the Americans into a concession? Or was it, as many here believe, a true representation of the stasis, not just on the surface, but throughout the talks.

One positive result today, however, was the formal joining forces of the smaller developing countries of the G90 group with the larger developing economies of the G20. This means that the likes of Brazil, India and South Africa are now aligned with the poorest nations. This, observers believe, will help guard against the EU and the US picking off smaller countries one by one, or enticing the larger developing nations away with specific offers.

[Also on Ekklesia: Poor countries unhappy at British trade talks tactics 17/1/05; World Trade deal only worth one cent a day says Christian Aid; Christian Aid laments receding trade talk hopes; Christian Aid warns of trade talks walk-out after leak; Thousands call for just global trade in mass lobby of Parliament; Christian Aid says European Union is bullying the global poor; Santa tells Tony Blair to Make Poverty History; Chancellor warns Christians that global justice will take a long haul; UK chancellor to address Christians in run up to WTO talks]


Trade justice hangs in the balance

-17/12/05

An increasingly fractious impasse continues at the vital World Trade Organisation (WTO) talks in Hong Kong, writes John McGhie for Christian Aid, the UK-based international development agency.

Friday 16 December 2005 was slated as the day during which a draft ministerial text would emerge and form the basis for an agreement It was meant to be a day when the European Union and the US put their latest version of a text on the liberalisation of services on the table.

There was even hope that the long discussed deal on market access for the poorest member nations would finally appear.

But by midnight Hong Kong time, there was no real deal, nothing on services or Non Agricultural Market Access. All that finally emerged were two pages of a text on agriculture that only showed how little agreement has been reached and how far ambitions have now been scaled down.

One of the main agricultural issues concerning all countries is that of subsidies. The latest draft failed to resolve differences on two counts. First, there is no agreement on an end date for export subsidies. Second, there is an uneasy compromise on the issues of food aid and state trading enterprises – two ways that rich countries also subsidise their food exports to the developing world.

Observers are saying that the text is so contentious it is unlikely to remain in its current form for long. Discussions will continue through the night and all tomorrow.

The only issue that was really interesting British journalists was the latest outburst from Peter Mandelson, Europe’s trade Commissioner.

If confirmation were needed that these talks had reached rock bottom, Mr Mandelson provided it. Emerging from behind closed doors, he stated to the world’s press that negotiations were going backwards. Some people, he said – could he possibly have been referring to the Americans? – had lost sight of strategic objectives as they made short term tactical decisions.

While he was still confident of an agreement at some point in the current Doha Round – scheduled to end next year – it was hard for the Commissioner to see progress in Hong Kong. He was not amused.

Was this all bluff from the master of spin, designed to prod the Americans into a concession? Or was it, as many here believe, a true representation of the stasis, not just on the surface, but throughout the talks.

One positive result today, however, was the formal joining forces of the smaller developing countries of the G90 group with the larger developing economies of the G20. This means that the likes of Brazil, India and South Africa are now aligned with the poorest nations. This, observers believe, will help guard against the EU and the US picking off smaller countries one by one, or enticing the larger developing nations away with specific offers.

[Also on Ekklesia: Poor countries unhappy at British trade talks tactics 17/1/05; World Trade deal only worth one cent a day says Christian Aid; Christian Aid laments receding trade talk hopes; Christian Aid warns of trade talks walk-out after leak; Thousands call for just global trade in mass lobby of Parliament; Christian Aid says European Union is bullying the global poor; Santa tells Tony Blair to Make Poverty History; Chancellor warns Christians that global justice will take a long haul; UK chancellor to address Christians in run up to WTO talks]