Opeds and Speeches
Developing Countries In Despair Over WTO Preparations For Doha.By Aileen Kwa from Focus on the Global South
Aug 13, 2001
There is a development deficit. The marginalisation
of many developing countries in the global economy is
an attestation to this fact. And this is a true
reality check. It is clear we are in a sate of impasse.
We characterise the situation as discouraging,
discomforting, demoralising and in some instances,
even depressing.
Malaysias Statement at the WTO General Council
Meeting in Preparation for Doha Ministerial Conference
30 July 2001.
The World Trade Organisation conducted a reality
check to assess how close or far apart Members were
in agreeing on a common agenda for the Ministerial in
Doha in November. In preparation for this assessment,
a report on the current state of preparatory work for
Doha was issued by the Chair of the General Council,
Harbinson and WTOs Director General, Moore (Job
(01)/118).
Developing countries, angered by the biased process of
consultations so far, the lack of progress in areas of
interest to them, as well as in disparagement over the
lack of accurate representation in the report on
specific issues, used the opportunity of this reality
check to voice their concerns.
Two main issues were highlighted by developing
countries:
1) There has been no progress at all on implementation
issues any such report by the chair is being overly
optimistic and not factual.
2) That there is no growing consensus on the new round
as the Chair and DGs report seem to suggest.
In private interview, a delegate from Africa said that
the report was not a reality check. We do not think
it reflects what went on in the consultations. It is
quite imbalanced in the way weight is given to one
position over another. Pakistans Ambassador Akram,
in the WTO General Council, said that the report,
reflects a sense of underlying optimism, which we
believe, may not be justified by the realities on the
ground.
Developing Countries Assessment of Reality: Process
Depressing, No Movement on Implementation, No
growing consensus on New Round, No Agreement on New
Issues, No Internal Transparency
Developing Countries Find Preparatory Process for Doha
Depressing:
In general, developing countries expressed frustration
that there really has been no movement in the Doha
preparation on issues of interest to them. The process
so far, has concentrated on trying to get agreement on
new issues (pushed by the EU and now US). while
implementation issues have been subjected to a process
of being increasingly watered down and marginalised.
Malaysia, voiced thatby focussing mainly on the issues that are currently
outside the scope of the WTO, we create the impression
that these are the only main issues that would make or
break the Doha Ministerial Conference Clever drafting
cannot resolve fundamental difficulties and this has
to be recognised It is clear we are in a state of
impasse. We characterise the situation as
discouraging, discomforting, demoralising and in some
instances, even depressing.
Indias Ambassador Narayanan, commenting on DG Mike
Moores opening statement, that without a launch of a
new round, the WTO would be rendered irrelevant said
at the meeting:
I have to say that his argument is not particularly
convincing I am afraid the approach suggested by the
Director General ignores past experience of developing
countries, current realities of power equations and
obvious future risk. It is a matter of some regret for
me that the Director General who has been a close
observer of the way the implementation issues are
handled by the major trading partners for nearly two
years now, should be advising developing countries to
accept new asymmetries and imbalances in order to
remove past asymmetries and imbalances. In this
context, my own assessment is that a new comprehensive
round of negotiations, mainly aimed at removing even
the limited policy space available to developing
countries in area of crucial development interests to
them, will only result in a net additionality to the
existing asymmetries and imbalances.
Ambassador Akram, of Pakistan, commenting on the
process and the report said,
Mr Chairman, we may have spent 35 plenary meetings in
preparing for Doha. But I think if we are frank with
each other, we should admit that we have not moved
very far forward on the road to Doha.
No Movement on Implementation
Implementation issues has been highest on the agenda
of developing countries at the WTO. Implementation
represents the broken promises, and inequities which
have emerged as a result of the Uruguay Round package
for the South for example, in TRIMS, TRIPS,
Agriculture, Textiles, Anti-dumping. Since Seattle,
much time has been spent on some topics under
implementation, but with no results because the
developed countries have been unwilling to yield.
Addressing the inherently biased nature of the WTOs
QUAD-and-Secretariat-driven negotiating process,
Pakistan, criticising the Chair and DGs report said:
Particularly in the area of implementation, it is
impossible to conclude that there are, I quote,
welcome advances or positive developments or some
headway in the process.
On the contrary, there has been an obvious lack of
political will on the part of our major trading
partners even to engage in discussions and
negotiations, much less to respond positively, to the
concerns and proposals relating to implementation. In
fact, virtually no consultations were even convened
with regard to two of the major areas of
Implementation ie Textiles and Anti-dumping.
Akram then posed the questions: Are the major trading
partners politically incapable of responding
positively to the main Implementation concerns of the
developing countries? Some of the news that we read
may indicate that that may be the case. Alternatively,
are they holding back their responses on
implementation issues mainly for tactical reasons, in
order to extract concessions from developing countries
on their ambitions and objectives for Doha?
India also pointed out in their intervention that of
the 97 tirets on implementation issues in the draft
ministerial text for Seattle, decision on 3 tirets
were taken in December 2000.
According to India,
If you take into consideration the fact that most of
the implementation proposals have been on the table
for nearly 3 years now, the fact that these issues and
concerns have to be addressed and resolved latest by
the Doha Ministerial Conference which is barely three
and a half months away, the fact that subsequent to
December 2000 when only three decisions were taken, no
decision has been taken on any implementation-related
proposal
In sum, Indias view was that there is no significant
change in the attitude of the major trading partners. I
would say that the element in your report which
indicates that the progress at this stage in
achieving concrete results has not been as rapid as
might have been hoped is a gross under-statement. In
fact, Indias Ambassador Narayanan went on to say that
we are terribly disappointed and distressed about the
lack of progress in dealing meaningfully with
implementation issues and concerns which have been on
the table for a long time now.
Zimbabwe, speaking on behalf of the African group,
also said that on implementation issues, we can all
agree that more progress will be required before Doha.
Quite frankly, the current situation is far from
satisfactory and challenges us to intensify the search
for urgent and meaningful solutions.
Malaysia also commented that they were very
disappointed that there has not been any substantial
outcome on any of the implementation related concerns,
and we wish to remind Members of the General Council
Decision to resolve these matters at the latest by the
Fourth Ministerial Conference.
No Agreement on New Issues, No Consensus on New Round
The LDCs, fresh from their Minsiterial meetingin
Zanibar, reiterated the position taken there.
Representing the LDCs, Tanzania said that Ministers
considered the so-called Singapore issues that include
investment, competition policy, environment,
transparency in government procurement and trade
facilitation. Given the fact that the issues are
complex, and divergent views exist and that the new
issues are yet to be fully understood, especially
regarding their implications on LDCs development, the
Ministers were of the view that the study process
should continue in the working groups and that time is
not ripe for LDCs to undertake negotiations for
multilateral regimes on these areas.
Pakistan, on the same subject said:>
We note that considerable time has been spent on
consultations relating to some of these issues, and
some of the 35 meetings have been expended on this
exercise; certainly more time on these issues than on
the issues relating to Textiles and Antidumping. But,
we see little prospect of bridging the gap and
reaching consensus on a negotiating mandates for these
issues.
Malaysia also stated in no uncertain terms that they
were not interested in any of the new subjects
investment, competition or trade facilitation. In
fact, on trade facilitation, Malaysia said My
delegation is unable to accept the reports assertion
that there seems to be some degree of acceptance that
a negotiating mandate would probably be that as
outlined in paragraph 25. It was clear from the
consultations that apprehension remained as to whether
new rules were needed.
On behalf of the African group, Zimbabwe in the
meeting, commenting on the Chair and DGs report on
new issues said:
I must say with all frankness that we are
disappointed by the way in which these differences
have been portrayed. For example, on the relationship
between trade and investment your Report says some
members want the work of the working group
prolonged. This reflects a judgement on the time
frame. The issue here is for the Working Group to
complete its task / fulfil its mandate, and not merely
prolonging its existence.
Indias Assessment of Current Situation
Ambassador Narayanan, seemed to voice many developing
countries perceptions of the process so far. He said
that Indias assessment of the current reality was
that
a) Without meaningful results on implementation issues
and concerns, Doha Ministerial is unlikely to succeed
b) There is no great enthusiasm for a comprehensive
round involving a wide variety of new subjects as
proposed by some major trading partners; in fact,
there is considerable amount of resistance;
c) The all or nothing approach is risky in as much
as it is likely to result in nothing rather than
all.
Green Room, Non-transparent Consultations Continue
Mike Moore, referring to the issue of internal
transparency in Doha preparations, said that internal
transparency and participation have been greatly
improved. He backed this statement by stating that 35
plenary meetings of the Council, formal and informal
devoted to the Doha process have been conducted.
Contrary to his assertion, however, Jamaica,
commenting on this Doha process at the informal
General Council meeting held on the 27th July (in
preparation for the reality check) said that they
were very disappointed that they have been left out of
the informal consultations that have been going on.
The truth of the matter is that Green Room
consultations still take place in proliferation. Many
developing country delegates are not invited to the
myriad informals organised each day on different
topics. This lack of internal transparency makes it
much easier for the majors in the WTO to split the
ranks of developing countries when push comes to
shove.
Looming Pitfalls For the South
While developing countries seem to be holding their
ground for the time being, pressures on them are now
intensifying from all sides. According to an Asean
delegate, there will be increasing pressure tactics
from the EU and others. Many African and Latin
American countries do not want the launch of a new
round. However, many rely on Aid and trade
preferences. One call to your boss, to tell your man
to cool off. Thats all it takes. We can expect this
in the days to come.
African countries in particular, will be targeted with
pressures of all forms. The powerful driving the WTO,
afterall, need their compliance to prove that even the
poorest are in agreement. Indeed, the proponents of a
new round have been using Egypt in the North, and
South Africa in the South, to work on their African
colleagues. Kenya in the East and Gabon in the West
have also been targeted to change their positions and
become ring-leaders for a new round.
The battleground has shifted, from Geneva back to
capitals. Unless trade ministers, under pressure from
the powerful countries also feel the heat from civil
society resistance in the next two months, it is
unlikely that they will be able to stand their ground.
With meagre offerings of market openings, aid packages
and more technical assistance, Doha could launch a
limited new trade round, with a mandate that gets
expanded as the round progresses.
One prominent NGO leader from the South, commenting on
this possible eventuality, said that should a new
round be launched, Genoa may just be a daily reality
in Geneva next year.
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