SIX days and nights in Doha restored the WTO’s unique ability of fusing accord out of discard. The fourth WTO Ministerial Conference laid to rest the ghost of Seattle.
The timing could not have been better because the stakes were unnervingly high: political alienation compounded by economic marginalization erupted in an act of unqualified insanity on September 11; a sharp economic downturn in the major economies spread worldwide like a contagion; a growing sense of international insecurity and unpredictability invited comparisons with the devastating “depression” of the 1930s; and, insidiously gnawing away at the credibility of the world’s trading system was the memory of the debacle at Seattle. Another debacle this time in Doha, would have condemned the WTO to irrelevance.
The pressure for nations to turn their backs on internationalism, to bow to populist protectionist pressures and to walk away clutching their narrow nationalistic priorities was tremendous. But they didn’t. No one did. This time round, ministers from 142 member governments of the WTO had gathered to engage and cooperate, to craft a balanced agenda which would give everyone enough, and no one too little.
“Unlike in Seattle, Africa has been satisfied with all the stages in consultations and negotiating processes in Doha,” said Mr Mustafa Bello, Nigeria’s Trade Minister, speaking on behalf of all the countries of Africa at the closing session on 14th November. “It is our hope and conviction that accepting the declaration will not only revive confidence in the multilateral trading system, but also that we can build on the transparency achieved in the consultation process in Doha in order to safeguard the interests of African countries, the majority of which are least-developed countries and need a functioning multilateral trading arrangement.”
The result is a 2-stage 3-year work programme, including negotiations on market access, rules and institutional reform, with “development” as the lodestar. And if that is not enough, the ministers underpinned this rejuvenated mood of international consensus-making by successfully concluding the membership process of China and Chinese Taipei, by declaring clearly that the rights of poor countries under the WTO rules override drugs patents in the interest of public health, and by solving the decades-old dispute concerning trade in bananas.
The highest immediate priority for developing countries is implementation. About half the original 90 implementation issues raised by developing countries were addressed by a separate Declaration adopted at Doha. Of particular note is the decision on the extension of exemptions for certain small developing countries which allows a longer phase-out period for certain types of export subsidies. The remaining implementation issues will be addressed under the relevant negotiating mandates of the new work programme or in the standing WTO bodies on a priority basis.
In agriculture, developing, countries stand to gain substantial commercial benefits under the negotiating mandate. Currently, according to the OECD, rich countries pay out $1 billion a day to their farmers in agricultural subsidies; that is more than 6 times all development assistance going to poor nations. Negotiations will open markets, and reduce “with a view to phasing out, all forms of export subsidies” and trade-distorting domestic farm support, while taking into account non-trade and development concerns, including through appropriate special and differential treatment in favour of developing countries.
In services, liberalization could mean gains of between 1.6 per cent of the GDP (for India) to 4.2 per cent of the GDP (for Thailand) if tariff equivalents of protection were cut by one-third in all countries, according to the World Bank. Telecommunications, finance, transport and business services have many links to the rest of the economy and raise the productivity of many sectors. Under the Doha agenda, special priority shall be given to the LDCs, and sufficient flexibility to developing countries. Negotiations will liberalize entry of foreign services in as many domestic sectors as governments choose and make it easier to employ foreign workers on temporary contracts.
Another immediate priority for developing countries is market access for industrial goods. The negotiating mandate focuses on reduction or elimination of tariff peaks and tariff escalation, in particular on products of export interest to developing countries, as well as on non-tariff barriers. Here too, the mandate states that “the negotiations shall take fully into account the special needs and interests of developing and least-developed country participants”. Moreover, ministers agreed to capacity-building measures to assist least-developed countries, and committed themselves to “the objective of duty-free, quota-free market access for products originating from the LDCs”. According to the World Bank, complete liberalization of merchandise trade and elimination of subsidies could add US$1.5 trillion to developing country incomes. And reshaping the world’s trading system and reducing barriers to trade in goods could reduce the number of poor in developing countries by 300 million by 2015 and boost global income by as much as $2.8 trillion over the next ten years. On drugs patents and public health, a separate Ministerial Declaration states that the WTO’s agreement on the protection of intellectual property rights (TRIPS) “does not and should not prevent members from taking measures to protect public health,” adding that it should be interpreted and implemented in a manner “supportive of WTO members’ right to protect public health and, in particular, to promote access to medicines for all.” This declaration is a shot in the arm for global efforts to address the public health problems afflicting many developing and least-developed countries, especially those resulting from HIV/AIDS, tuberculosis, malaria and other epidemics.
Developing countries should indeed be proud of their achievements in Doha. they negotiated constructively and in good faith. In these uncertain times, they have helped restore international consensus-making in a key area of global economic cooperation for the benefit of all. As Ms Patricia Hewitt, UK Trade Minister, said in the House of Commons on 15 November: “Nations have come together in Doha to agree a major step forward in the war on poverty, demonstrating that the nations of the world are determined to strengthen security by sharing prosperity. The Doha Development Agenda has involved great willingness from all countries to work together flexibly and constructively to overcome considerable differences.”






























