WTO Headed for Debacle in Hong Kong?
The
lack of more definite agreements in the recently-concluded July council
meeting raises the possibility of yet another collapse in the forthcoming
WTO talks
By Sonny Africa
IBON
Features
Posted by Bulatlat
Gloom settled on negotiators at the World
Trade Organization (WTO) as its July General Council Meeting ended with
the failure to reach key agreements ahead of the upcoming 6th ministerial
to be held in Hong Kong in December.
Agriculture continued to be the main
hurdle to the talks, as the United States (U.S.) and the European Union (EU)
remained in a deadlock over their massive farm subsidies, with neither
willing to concede even an inch to the other.
Outgoing Director-General Supachai
Panitchpakdi, in his final report as Trade Negotiations Committee (TNC)
chair, summed up the situation as “disappointing but not disastrous” and
insisted that “the picture remains a mixed one overall.”
The lack of more definite agreements
(“first approximations”) on the so-called Doha work program– agriculture,
non-agricultural market access (NAMA), services and “development issues” –
raises the possibility of yet another collapse in negotiations similar to
what happened in past WTO ministerials in Seattle (1999) and Cancun
(2003).
Negotiators now hope to use the Hong Kong
ministerial to adopt the set of rules (”modalities”) needed to reach a
final Doha Round agreement by 2007.
Still, Panitchpakdi tried to put a
positive spin on the failure, claiming that “there has been constructive
engagement and some positive signals and we have narrowed differences,
even if we have not resolved them.” He added, “The situation we are in
makes Hong Kong harder but not impossible.”
Growing popular protest
For activists who gathered at the parallel
General Council of Peoples, however, the stalemate was welcome news.
Unlike the WTO negotiators, the nearly-200 participants from
non-government organizations and social movements ended their meeting with
a clear development consensus: derail the Hong Kong Ministerial, stop the
corporate trade agenda and promote an alternative global trading system
that promotes people’s interests over those of corporations.
The Council closely monitored events at
the WTO meeting even as they remained wary, since progress on global trade
talks inevitably involves setbacks. Even as unity against the WTO grows on
the outside, internally the world’s most powerful governments are
maneuvering within the Organization to ensure that their respective
corporate interests are protected and their profits ensured.
While pointing to the need for “inside and
outside strategies,” Tony Clarke of Canada-based Polaris Institute
stressed the importance of “coordinated actions by the major social
movements to put pressure on national governments in the build-up to Hong
Kong.” Clarke added that it is not enough to have information, analyses
and action, these need to be popularized to reach sectors most affected at
the grassroots.
These mass mobilizations cannot come too
soon, the People’s Council believes, since developed countries are already
maneuvering within the WTO.
First World maneuvering
Regarding negotiations on NAMA, Goh Chien
Yen of Malaysia’s Third World Network said that First World countries will
likely succeed in getting an agreement on further trade liberalization in
industrial goods. “Opposition from the developing countries is weak and
doesn’t seem to be consolidating in the direction of strengthening,” he
said.
The situation in NAMA talks contrasts with
that of agriculture. In agriculture, rich countries such as the U.S., EU
nations and Canada want to keep protecting their respective agriculture
sectors, even from each other. In NAMA, the industrialized countries all
have low industrial tariffs to begin with, and so have a uniform interest
in dismantling high industrial tariff barriers in the developing
countries.
There is a similar danger in the General
Agreement on Trade in Services (GATS). Although only 92 out of the 148 WTO-member
countries have made commitments (“offers”) to liberalize their domestic
services sectors, rich countries are clearly on the offensive in GATS,
believes Marc Maes of Belgium’s 11.11.11, and “looking for ways to speed
up the process.”
Alexandra Strickner of the Geneva-based
Institute of Agricultural and Trade Policy (IATP) revealed that the GATS
negotiating process would likely intensify after the August summer break
“with almost weekly formal and informal meetings.” Strickner warned that
not only GATS but also other negotiating processes will likely be
“fast-tracked with less transparency and greater maneuvering” and that
First World countries will likely “try very, very hard and move very, very
quickly to get something defined by the Hong Kong ministerial.”
Strike three?
Developing countries oppose trade
liberalization under the WTO because of the disastrous effect it has had
on their domestic economies. Industries have been devastated, farmers
driven off their land and jobs have been lost, all to ensure the
mega-profits of transnational corporations. It is clear that trade
liberalization has not improved the people’s welfare and this is why an
increasing number have organized in protest against the WTO.
The WTO has already seen two dramatic
upheavals in the collapse of talks at the Seattle and Cancun ministerials.
A third breakdown is a very real possibility and would represent a clear
victory for the people.
But the collapse of the December
ministerial would not represent a decisive victory against corporate-led
globalization. The reality is that the world’s largest corporations have a
vast array of resources at their command to maintain their stranglehold
over the global economy. Thus, the struggle against globalization - which
has brought disastrous effects on people’s jobs, livelihood, and welfare
worldwide - must persist even if the WTO talks in December falters.
IBON Features / Posted by Bulatlat
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