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WTO members tackle protectionism, urge Doha deal
Tue May 26, 2009 2:44pm EDT
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By Jonathan Lynn
GENEVA (Reuters) - A group of exporting countries drummed up support on Tuesday to reach a deal soon in the World Trade Organization's long-running Doha round as the best way to tackle protectionism in the economic crisis.
At a meeting of the WTO's General Council, several more countries signed up to or backed a document originally circulated on May 20 by 13 states, which sponsors hope will eventually be backed by all or nearly all the WTO's 153 members.
"It's a message that we should finalize the round expeditiously because that's the best measure against protectionism," Norway's WTO ambassador, Elin Johansen, who is currently coordinating the effort, told reporters.
The document appeared as negotiators talk of a growing improvement in the political conditions for a new trade deal, even if the economic crisis looks set to sharpen protectionist tensions as output falls and unemployment rises.
The improved political mood, as technical work continues quietly on areas from agriculture and industrial goods to fisheries and trade and environment, is also leading members to seek ways out of the repeated impasses in negotiations that have seen ministerial meetings collapse three years in succession.
The document was originally signed by Colombia, Costa Rica, Hong Kong, Malaysia, Mexico, New Zealand, Norway, Pakistan, Peru, Singapore, Switzerland, Turkey and Uruguay.
On Tuesday it drew support from Tanzania, on behalf of the least developed countries, Ukraine, Thailand, Israel and Taiwan among others, as well as members of the G20 rich and emerging countries such as the United States, Australia, Canada and South Korea, whose April summit pledges it reinforces.
POLITICAL PRESSURES
Tension over protectionism simmered at the meeting as Brazil read a statement on behalf of other developing country farm exporters condemning U.S. dairy export subsidies, and Argentina called for WTO monitoring of protectionist measures to focus more on the trade-distorting impact of stimulus packages.
Earlier WTO Director-General Pascal Lamy told the council that the global trading system would face added political strain as the economic crisis boosts protectionist pressures.
"While, according to some, we may be seeing the bottom of the economic crisis, we have not yet seen its full social impact which will inevitably trigger political pressures on the trade front," Lamy said, according to a text of his speech.
"I believe that the 'stress test' of the multilateral trading system is still to come."
The multilateral Doha talks were launched in late 2001 in the Qatari capital to help poor countries prosper through trade, but have faltered repeatedly.
The most recent stumbling block came last July when the United States sought a deal offering new opportunities for U.S. businesses but big emerging countries like India, Brazil and China insisted on protecting their farmers and young industries.
POLITICAL ENGAGEMENT Continued...
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