My MEP Robert Sturdy is co-chair of the WTO inter-parliamentary group and was in Geneva last week for the latest 
Doha trade talks which collapsed.
Heated talks among the six core “Doha round” negotiators – India, Brazil, the US, EU, Japan and Australia – broke up amid recriminations over irreconcilable differences about farm liberalisation. The US continued to argue for big cuts in farm import tariffs to open up markets for its farmers, a demand fiercely rejected by the European Union, Japan and India, which said America had first to go further in offering to cut its huge agricultural subsidies.
The talks, which began in November 2001, will now enter indefinite suspension unless and until a consensus within the WTOs 139 member countries can be found to revive it. I don’t see how this is achievable.
The latest round of talks showed how countries suffering an economic downturn wanted to protect their own interests rather than opening up their markets for trade which would benefit poor and less developed countries. America is one of the countries guilty of this, and with a presidential election looming, it clearly was not going to give anything away that would be detrimental to its citizens.
This Reuters article emphasises the impact cheap Chinese imports has had on America in recent years, how the U.S. trade deficit with China cost 2.3 million American jobs between 2001 and 2007. Even when they found new jobs, workers displaced by job losses to China saw their earnings decrease by an average of $8,146 each year because the new jobs paid less.
It says that free trade is shaping up as a major issue in the November presidential election, especially in closely fought battleground states like Ohio.
In spite of this, the needs of the ACP countries have to be considered in global trade talks and I wonder if Barack Obama wins the presidential election, whether his African roots will make him more sympathetic to the needs of lesser developed countries.
I see the focus of these talks changing too as self-protectionism takes on a new meaning now some countries are imposing export bans on food because of food shortages, a worrying situation which is set to worsen.
So does anyone have any idea how a Doha agreement can be reached between the 139 WTO member countries?
The outcome was not surprising. We are entering a protectionist era and Obama is leading the charge.
Alas Elle,
even in these supposedly sophisticated times we live in, the selfish gene still kicks in when it comes to personal or national interests.
Funny that Britain long stopped being the workshop of the world, and many predicted doom & gloom – yet employment, wealth, wages and national income have continued to grow. Though perhaps house prices in the uk have already shot thru the roof – even when we are talking average incomes.
One thing though, I do think African Countries should be obliged to feed their own people first, before they would presume to export their food produce to Europe as cash crops.
I’ve been a little busy – building work at the villa etc …
had a little bit of a working holiday in July, and little or no time for internet or blogging, but hope to catch up and keep abreast of things going on in my favourite blogs this month.
I am sadly lacking in ideas, I’m afraid Ellee. It’s all so depressing. I fear that global famine of biblical proportions is inevitable within the lifetimes of most alive today.
These sort of things will never reach agreement, Ellee.
It’s not achievable for reasons I outlined in a series of posts. It is fundamentally illogical and these talkfests are never as effective as bilateral attempts.
As much as these rounds are often successful the climate is not right just now. Maybe next year when people are more desperate to give the economy a boost and there is a new US president.
Do note the collapse this time was mainly due to india and china for a change, not EU and US.