More Effort Needed To Break Doha Impasse

Ministers from major trading powers decided May 27 to redouble efforts for a deal in the stalled Doha round, arguing that opening up global trade would boost the world economy without hitting budgets.

They acknowledged the 8-1/2-year-old Doha round was at an impasse and that serious negotiations – away from the glare of the media and public diplomacy – were now needed to break the deadlock.

Australian Trade Minister Simon Crean said ministers meeting on the sidelines of the Organization for Economic Co-operation and Development forum in Paris had held frank discussions about the difficulties they faced.

“All of the evidence points to the significance of trade and the liberalization agenda that facilitates trade being an important economic stimulus – a stimulus that does not impact upon budgets,” Crean told a briefing after hosting the meeting.

“And we will keep at it. We won’t be deterred simply by the difficulty because the outcome is too important to sustainable economic recovery,” he said.

WTO members launched the Doha round in 2001 to free up world commerce and help poor countries prosper through more trade.

The outlines of a deal are clear: rich countries will remove barriers to their food markets and cut trade-distorting farm subsidies while developing countries, except the poorest, open their markets to more goods and services.

But agreeing an overall package has proven impossible so far, with the United States arguing that big emerging economies such as Brazil, China and India – who have benefited from the last trade opening and are now major players in the global economy – should do more to facilitate a deal.

The United States wants the emerging giants to open up their markets more to goods – from cars to chemicals and services to banking and express delivery – in return for Washington paying farmers less to produce crops such as wheat and soybeans.

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