archives: WTO InfoIf Cancun meet fails, what next?
Times of Oman Saturday, August 23, 2003
By Palazhi Ashok Kumar
http://www.timesofoman.com/newsdetails.asp?newsid=39240&pn=businessMUSCAT — The stage is set for World Trade Organisation (WTO) ministerial conference in the Mexican resort city of Cancun despite anti-globalisation protests mounting in world's most developed and developing markets.
Over 40,000 people from around the world opposing the prevailing globalisation model have begun gathering in Cancun, preparing to protest the WTO ministerial conference.
With less than 20 days to go for the conference, many developing countries have expressed concerns about the proposed multilateral agreement on investments and a line of other issues. It is welcome that many countries have come open on issues that pose threat to their markets.
Most developing nations, including India had said that they would not be in a position to enter negotiations without a clear picture of the structure and content of each issue.
If the Cancun meet fails, what is next? It's a million-dollar question. Will it be the failure of WTO itself? In fact, several negotiations in the WTO including agriculture, public health and Trips (trade-related aspects of intellectual property rights), industrial tariffs, etc. still remain deadlocked in most markets.
No doubt, the conference (to be held from September 10 to 14) will take stock of progress in negotiations and other work under the Doha Development Agenda. The WTO ministerial declaration in Doha has been a heated issue for many since it was adopted on November 14, 2001. Many have expressed their rejection over the way globalisation is currently unfolding.
The fifth conference will take place in a luxurious convention centre of 19,000 square metres and delegates from the WTO's 146 member-states are expected to be in attendance. It is believed that many developed nations including some of the European Union countries have been striving hard to find ways and means to make the Cancun conference a success, at least to some extent.
Many representatives of the anti-globalisation groups are also expected to take part in the WTO meet itself, where a special session is scheduled for them to voice their opinions to the member states' trade officials. Failure to meet WTO deadlines is not at all a new issue to discuss.
In December last year, Dr Supachai Panitchpakdi, director-general of the WTO had expressed disappointment over the failure by WTO member-governments to meet the year-end deadlines for agreement in negotiations on special and different treatment for developing countries and access to essential medicines for poor countries lacking capacity to manufacture such drugs themselves. Will he be happy this time at Cancun? It is anybody's guess.
It was interesting to receive a copy of a joint letter sent to Dr Supachai by the International Monetary Fund managing director Horst Kohler and the World Bank president James D. Wolfensohn. Kohler and Wolfesnsohn have reiterated the importance of a successful round of multilateral trade talks to developing countries. The letter also reaffirmed the two institutions' commitment to help developing countries adjust to a more open trading environment.
The WTO chief would be very happy to read it in full.
« We strongly believe that a successful conclusion of the Doha round is essential for the world economy and will benefit all countries. A successful WTO round can also contribute significantly towards efforts by the international community to meet the Millennium Development Goals. »
Let's hope so.
« Overall, developing countries have much to gain from a more open multilateral trading system. At the same time, we appreciate that adjusting to a more liberal trade environment may impose costs on some of our member countries — albeit temporarily —as a result of preference erosion, the loss of tariff revenue or other factors, » the letter said.
The two international institutions said they are working to package their support, building on what they are already doing, in order to help countries to implement commitments they make as the Doha Development Agenda proceeds.
« We already have a variety of instruments to meet developing countries' concerns about the impact of trade liberalisation, and we are actively exploring ways to assist countries that request our help. »
The important aspects of IMF and World Bank plans for targeting Doha-related needs are still under consideration, it will have three dimensions: Firstly, « we can work closely with our members to assess the nature and magnitude of any adjustment need. Secondly, « we will assist in designing policies, institutional reform and investment programmes aimed at addressing key obstacles to trade expansion and at managing the impact on affected population groups; and thirdly, « we are examining ways to use and tailor our lending authority to respond to the specific challenges posed by the Doha Development Agenda.
Such lending could take place at the project, sector, and country levels. In the context of coherent country financing plans, « we also aim to provide support in mobilising donor resources. Grants authorised under IDA 13 could also be used, subject to the agreed guidelines. »
So what's IDA (International Develop-ment Association?) It helps the world's poorest countries reduce poverty by providing 'credits', which are loans at zero interest with a 10-year grace period and maturities of 35 to 40 years. These countries face complex challenges in striving for progress toward the international development goals.
« As we emphasised last May at the WTO General Council meeting, we remain fully committed to helping ensure successful completion of the Doha development round. Given the substantial promise for the world's poor we should work together to address the short-term adjustment problems.
« As you embark on the crucial WTO Ministerial meetings in Cancun, we would like to assure you that both our institutions stand ready to support our members in taking full advantage of these opportunities. « As we move over the coming weeks to put in place the various elements of our Doha-related efforts, we look forward to continued engagement with you on these issues, » the letter added.
Though Oman is a full-fledged member of the WTO, the nation has a grace period of three to ten years to really fulfil the requirements of the International Trade Organisation.
However to keep pace with the fast changing global economic scenario, concerted and structured efforts by the private sector are crucial, which could help develop the capabilities of the private sector in terms of productivity and efficiency. Oman's agreement with the WTO is considered to be a vital step in its endeavour to integrate with the world economy. It was on October 10, 2000, the general council of WTO resolved the accession of Oman to the international organisation.
During negotiations, while becoming a WTO member, the Sultanate's major emphasis was directed towards providing reasonable level of protection to the domestic manufacturing and services sectors against strong liberalisation policies of the international organisation.
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