It is a pity that talks on a global trade deal between key World
Trade Organization (WTO) players ended prematurely on Thursday in
Potsdam, Germany.
The failure of the United States, the EU, Brazil and India to
broker an outline deal diminished hopes of WTO officials that an
agreement on trade liberalization could be reached before the end
of 2007.
Theoretically, WTO members still have chance to reach a global
free trade agreement despite the collapse of the crucial talks.
But to save that chance, the key players must demonstrate
greater flexibility out of a comprehensive understanding of the
importance of the new trade deal to themselves as well as the
world.
The Doha Round of trade talks was launched in 2001 with the aim
of helping poor countries' economic development through fairer
trade conditions.
But the talks have progressed slowly and missed several
deadlines due to sharp differences among major players on
agricultural subsidies, tariffs and industrial market access.
Developing countries like India and Brazil have accused the rich
countries of failing to move far enough to curb unfair farm
support.
Meanwhile, developed countries insist that developing countries
should further liberalize their markets for industrial goods and
services as a trade off.
An agreement among the so-called G4 group meeting that could
help other WTO members achieve an outline deal before the WTO's
August break was essential to ensure the latest round of trade
talks concluded in time.
Nevertheless, the talks collapsed because of both sides'
narrowly-defined interests.
As large economies, all these WTO players have already benefited
or will benefit significantly from booming global trade.
As smart negotiators, both sides are keen to squeeze last-minute
concessions.
Unfortunately, while focusing on their specific demands, they
seem to have missed the overall benefits a new trade deal can bring
about for their economies in the long term.
The failure of G4 trade talks once again highlighted the urgency
to save the Doha Round. To achieve meaningful progress, instead of
blaming each other, all trade negotiators should reposition their
stances with a compressive view of free and fair trade.
(China Daily June 23, 2007)
