The Peterborough - Kawarthas Chapter of The Council of Canadians
Campaigns: Fair Trade
WTO Is Running Out of Excuses and Time
Council of Canadians trade update − May 2006
World Trade Organization (WTO) negotiators have again failed to come up with specific written proposals to present to member countries. They missed the April 30th deadline set at the Hong Kong ministerial, and a proposed spring meeting of ministers has been cancelled.
Negotiations in the three key contentious areas − services (GATS), industrial tariffs (NAMA) and agriculture− have hardly progressed since the last ministerial meeting in Hong Kong in December 2005. Once again, rich countries are asking for major concessions from developing countries even though the Doha Development Round is supposedly dedicated to levelling the playing field for poorer countries.
Pascal Lamy, Director General of the WTO, has mentioned that a full ministerial meeting could take place in July. Some say it will take place earlier in June. Either way, it would be the last chance to come to an agreement and conclude the Doha Development Round by the end of 2006. The U.S. administration could lose its Trade Promotion Authority (TPA) in 2007. The TPA − formerly known as “Fast Track” − prevents Congress from making amendments to trade deals and limits them to a yes or no approval. If the Bush administration loses the TPA, it will be difficult, if not impossible, to get new trade deals approved by a very protectionist Congress.
If negotiators can’t close the gap − and nothing would indicate that they can − three scenarios are possible:
- Ministers could acknowledge the failure of the Doha development round and call for a moratorium on new negotiations for a certain period of time (a two year break has been suggested).
- Ministers could sign a face−saving document that resolves nothing, but allows the negotiations to go forward at a snail’s pace over the next few years.
- Pascal Lamy could try to break the deadlock by drafting a text himself. This has been done before. Arthur Dunkel, Director General of the GATT (WTO’s predecessor) broke a deadlock in the Uruguay round by drafting an agreement on his own in the early 1990s. It became known as the “Dunkel draft” and led to the creation of the WTO.
- The third option, although possible for some, would require approval from the EU and the U.S. Both are facing considerable political opposition at home and don’t seem in the mood to make big compromises at the WTO. U.S. trade representative Robert Portman has been moved to another post in the Bush administration and many see this as a sign that the WTO is no longer a priority for the U.S. government.
Where does all this leave us? It is still a little early to claim victory because a lot of negotiating will take place between now and July. We must remain vigilant because our government continues to be a big proponent of more liberalized trade at the WTO. In fact, Canadians have a lot to lose in these negotiations and there is every indication that our government is willing to compromise in order to move things along.
The EU and the U.S. have asked that State Trading Enterprises (STEs) be eliminated. That would do away with the Canadian Wheat Board and perhaps supply management of dairy poultry and eggs. At a time when our farmers are struggling to make ends meet, this would be a devastating blow. Furthermore, our government is pushing other countries hard to liberalize their public services, insisting that this will not compromise our own public programs. We know better.
The Council of Canadians has long denounced the WTO’s corporate free trade agenda and called for the negotiations to be derailed. As the WTO sinks under the weight of its contradictions, we call only hope no last minute shenanigans will bring back its buoyancy.
Jean−Yves LeFort, Trade Campaigner
