WTO MEMBERS CONFRONT DOHA DEADLOCK

Brussels, May 5- The achievements of 10 years of negotiations must not be discarded in the face of continuing Doha Round stalemate, World Trade Organization (WTO) delegates have stressed, as director general Pascal Lamy warns of talks teetering on the brink of failure.

Despite the constant possibility of collapse hanging over the head of delegates, the WTO's Trade Negotiations Committee (TNC) successfully produced a collection of draft documents, reflecting the progress of the Round thus far, and meeting the self-imposed deadline of April 21.

The documents are grouped under eight headings: agriculture, non-agricultural market access, services, intellectual property, environment, development, trade facilitation, and dispute settlement. Nonetheless, the achievement was tempered by the latest in a series of strongly-worded warnings from Lamy, who argued that, despite this significant advancement, the situation remained grave as differences among delegates continued to block further headway being made.

In the face of such stark criticism, TNC delegates have now come forward to signal their determination to beat the deadlock and seek a meaningful way out, according to the WTO. At an informal meeting, held on April 29, delegates discussed the challenge facing them in the search for a breakthrough. It was argued that the slim window of opportunity was rapidly narrowing, with a number of speakers highlighting the lost opportunity failure would represent. In particular, the concerns of least-developed and smaller developing countries were voiced, with the WTO reporting that delegates complained of the deadlock preventing such nations from enjoying the gains that are already promised such as duty-free, quota-free market access for least-developed countries in richer markets, and cuts in cotton subsidies in rich countries.

The blame-game was also played, to an extent. The WTO states that representatives of several, as yet unnamed, developing countries continued to complain of the allegedly inflated demands of richer countries. In contrast, other developing and developed states laid culpability at the feet of all members, contending that all must share the responsibility of seeking a viable path to conclusion.

However, according to the WTO, there is the potential of progress being made in the most contested area of the Round - non-agricultural market access (NAMA). The WTO references an alleged compromise deal being discussed between the European Union and, again unnamed, countries on “NAMA sectorals”. The deal would allow for free or near-free trade among those countries representing a large share of world trade, in specific sectors in the NAMA talks, with mention made of forestry and fisheries products, chemicals, machinery and electronics.

Lamy took the opportunity afforded by his speech as chairman of the TNC to reiterate that negotiators face difficult times ahead. While he again praised the work carried out thus far, he made clear that the Round cannot be completed without the issues separating delegates having first been solved through what he anticipates will be "hard bargaining".

Lamy views the NAMA talks as the most significant area of impasse, as he feels that the lack of cooperation here jeopardizes the conclusion of the entire Round, putting it "on the brink of failure". The inability to establish a ground for compromise is "deeply disappointing" to Lamy, but his irritation is also directed at those who he feels do not display discomfort at the situation, suggesting that a belief in the situation eventually rectifying itself is to blame.

Above all, retaining the status quo in the Round is labelled as dangerous by Lamy. In the short-term the WTO will of course continue in its functions, settling disputes among members and carrying out its monitoring duties, but, in the longer-term Lamy senses trouble for the world's trading system. The WTO's rules governing international trade were last updated in 1995, and Lamy sees this as indicative of the need for urgent change. Lamy said, the "failure of the WTO to harness our growing economic interdependence in a cooperative manner risks a slow, silent weakening of the multilateral trading system in the longer term and with this, a loss of interest by political leaders in many quarters, an erosion of the rules-based multilateral trading system, [and] a creeping return to the law of the jungle".

"Completing this task is urgent today, since there are already new issues in the horizon which require our attention. It is difficult to see these new issues being tackled multilaterally if we are not capable of finding a solution to the issues within the Doha Round. In sum, today's stalemate over the Doha Development Round risks damaging the capacity of the WTO to deliver trade opening for the benefit of all, which is its core mission," he added.

In seeking meaningful progress, Lamy highlighted those avenues along which negotiators ought not to head. "I believe three options will not work: Option 1 'business as usual' will not work. Option 2 'stopping and starting from scratch' will not work, since the issues blocking progress today will be the same ones on the agenda tomorrow. Option 3 'drifting away' by wishing the issue would simply disappear will not work either". Essentially, cooperation is required, with a collective responsibility felt by all.

The next TNC meeting is to be held on May 31, and, in the intervening period, Lamy intends to instigate a process of consultation with the membership on the future of the Round. On this date, he is to report back to the TNC on the meetings he holds, and urge Negotiating Groups to continue their work where the relevant Chairs judge it productive.

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