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Trade diplomats at the World Trade Organization (WTO)'s ministerial conference in Hong Kong defied pessimistic forecasts by reaching a deal in global trade talks Sunday.
With the agreement, WTO members avoided the debacles in previous meetings in Seattle and Cancun to keep the Doha Round alive. They also helped beat doubts over the future of the multilateral trading system.
Particularly remarkable was that the accord, to a big extent, met demands from developing countries for the talks to live up to the name of a "Development Round."
China, as a developing nation and strong supporter of the multilateral trading system, naturally welcomes the outcome.
A successful WTO meeting on home soil gives additional reason for Chinese, and in particular Hongkongers, to celebrate.
Hong Kong, whose economy hinges very much on the development of free trade, should be proud of hosting a milestone WTO meeting.
It was impossible to make everybody happy, but few members will leave Hong Kong empty-handed.
Industrialized members garnered some concessions for the liberalization of the service sector, where they are strong.
For developing countries, what they obtained in Hong Kong can be seen as a major achievement, if compared to Cancun.
In the Mexican resort city two years ago, many developing nations walked out of the conference accusing a clique of major trade players of stitching up a pact, that hurt the interests of developing nations, behind the backs of the majority of members.
This time, the developing countries came determined to make their voices heard and make a strong case for their interests.
They made it.
WTO members' promise to offer tariff and quota free treatment to the least developed countries, is a meaningful move to provide them trade opportunities, and was agreed to be much better than aid.
Although it also serves the interests of some industrialized economies, the agreement on timetables for dismantling export subsidies on farm products will significantly benefit many developing nations.
Concessions by the US to scrap export subsidies for cotton will also be great news for Chinese cotton farmers. Experts have said the subsidized American cotton has put Chinese cotton growers at a great disadvantage since China opened its agricultural markets with its WTO accession.
China's voice at the conference was bigger than it was at its first appearance at a WTO ministerial conference in Cancun, but it still maintained a low profile.
With its hands full putting into effect its obligations made at its WTO accession, China did not talk loudly in the new round of trade talks.
But it has been firmly with other developing members in all major topics such as demanding that developed countries end market-distorting practices and supporting preferential tariff and quota policies for the least developed nations.
China also defended its interests by clearly stating it will not accept being singled out as an "advanced developing economy," a label that some developed members wants to put also on other nations like India and Brazil. The label was a bid to extract extra concessions from these big developing nations.
A pleasant surprise as it was, the Hong Kong meeting was not the final destination of the Doha Round.
For a round of global talks that involves 149 members, it would be surprising if the talks proceeded smoothly.
The deal in Hong Kong has ignited hope that WTO members can conclude a final free trade treaty next year.
A new test of political will and wisdom is already in sight.
(China Daily December 19, 2005)
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