Developing states demand quick Doha talks deal

• Attempts to push through a deal in the Doha negotiations collapsed at the mini-ministerial meeting in Geneva last year.
• This was due to lack of consensus between the US and emerging Asian economies such as China, India and Indonesia over agriculture pacts.
• In the run up to the collapsed talks, African states had prepared a demand list of seven points for negotiations with their partners.

Developing countries have renewed pressure for the conclusion of the Doha round of talks, saying the move would help cushion their economies from effects of the on going global financial crisis.

“Concluding the round at this time of the crisis would enhance the much needed confidence in rules-based multilateral trading system, halt the rise of protectionism, and help stabilise the global financial system,” ministers from the African, Caribbean and Pacific (ACP) group of states said in a joint communique.

They said that lack of political goodwill from developed countries had stagnated the talks even when the effects of the financial downturn that originated from the west were already affecting their smaller economies.

“Our concerns are aggravated by the severe financial and economic crisis that originated in the developed economies. It has affected international trade and the impending capacity of developing countries to reap the expected benefit of global trade,” the ministers stated.

With the global financial crisis continuing to bite, many countries are expected to resort to using formal and informal contingency measures to shield their economies from external competition.

“In times of economic crisis, governments face pressure to adopt measures that may restrict trade and there are real dangers that such pressures, if not addressed adequately, can lead to a dangerous escalation,” WTO director general Pascal Lamy warned recently.

The UN Conference on Trade and Development (UNCTAD) similarly raised an alarm over possible distortions to global trade by the numerous stimulus packages that rich nations have been rolling out.

“Akin to subsidies, stimulus packages may effectively create advantages for domestic sectors and put foreign players at a disadvantage,” the agency warned.

UNCTAD said the focus by rich nations on improving domestic economic conditions may result in divestment abroad, and escalate withdrawal of foreign investment from developing countries.

“This also offers the possibility of protectionist pressures arising out of retaliation and the fact that, given the close relationship between trade and investment, barriers to one can affect the entry and operation of the other,” the world trade report warned — explaining the new drive by the ACP group to have the talks concluded.

Attempts to push through a deal from Doha negotiations collapsed at the mini-ministerial in Geneva last year owing to non-consensus between the United States and emerging Asian economies such as China, India and Indonesia over agriculture pacts.

In the run up to the collapsed talks, African states had prepared a demand list of seven points for negotiations with their partners.

Key on the list which was presented by African states in Geneva was the elimination of tariff and non-tariff barriers to trade, as well as other trade-distorting practices in the agricultural sector.

The African group was especially keen on the removal of subsidies to cotton growers in the US, among other agricultural commodities.

Africa also demanded that market access for non-agricultural goods (Nama) be redressed, arguing that there is a need to resolve non-reciprocal preferences in terms of product coverage and the implementation period.