killmicrosoft
02-08-2008, 12:35 AM
Trading away an opportunity
http://www.canada.com/ottawacitizen/news/editorials/story.html?id=ab48af3c-a222-4abe-982c-406f3980230d
African negotiators were seething this week at the collapse of talks to break down global trade barriers. Their disappointment -- and anger -- is understandable.
The world's poorest countries are beginning to recognize, as one African delegate put it, that it must be "through trade, not aid" that they climb out of despair. They had high hopes that an important step would be the so-called Doha Round of trade talks to open markets and end farm subsidies. At a time of increasing food prices and shortages, and general economic uncertainty, many had rightly looked to a favourable trade situation for relief.
While the failure of trade talks is most damaging to the world's poor, it also bodes ill for the developed world, including Canada, which is a trading nation. Had the talks ended well, the accord would have added $50 billion a year to the world economy, according to the World Trade Organization --$100 billion after 10 years.
Amid the breakdown of negotiations -- which had been ongoing for seven years, incidentally -- there emerged some small bright spots. Canadian Trade Minister Michael Fortier announced that Canada will seek bilateral trade deals, notably one with the European Union, which would be a boost to the Canadian economy. Talks on that arrangement are expected to begin later this year.
While Canada and other countries try to pick up some pieces of the failed trade negotiations, there are signs that the end of the Doha Round signals a change in the balance of power between the developed and developing world, and that could shape future talks.
The world's most powerful countries -- notably the United States and the European Union -- are also some of the most protectionist when it comes to agricultural subsidies. Brazil, for example, complains that the U.S. is unfairly blocking the sale of Brazilian ethanol to the U.S. through high tariffs.
Hypocrisy is never attractive. The Americans talk a good game about free markets and open borders, but as Canadians learned during the softwood lumber mess, U.S. governments will engage in anti-trade behaviour in order to pander to domestic political constituencies. Canadian governments have been accused of similar double dealing in the area of agriculture policy.
And so it was that so-called emerging economies such as India and China scuttled the Doha deal, demanding more protection for their own farmers.
The influence of India, China and Brazil at the talks was taken by observers as a sign that no longer can the world's most powerful (that is, western) countries call the shots.
"I have witnessed the emergence of a new world order where all of the world's countries are present and defend their rights," concluded Norway's foreign minister Jonas Gahr Stoere. Brazilian president Luiz Inacio Lula da Silva celebrated the shift in world power. "They have to take us into account," he said.
As the dust settles on Doha, it will become ever clearer that the world's richest nations will be unable to persuade emerging powers that free trade is good for them, if those rich nations don't practise what they preach. There's a fear that protectionism is in the air, which if true is to no one's benefit, rich or poor.
http://www.canada.com/ottawacitizen/news/editorials/story.html?id=ab48af3c-a222-4abe-982c-406f3980230d
African negotiators were seething this week at the collapse of talks to break down global trade barriers. Their disappointment -- and anger -- is understandable.
The world's poorest countries are beginning to recognize, as one African delegate put it, that it must be "through trade, not aid" that they climb out of despair. They had high hopes that an important step would be the so-called Doha Round of trade talks to open markets and end farm subsidies. At a time of increasing food prices and shortages, and general economic uncertainty, many had rightly looked to a favourable trade situation for relief.
While the failure of trade talks is most damaging to the world's poor, it also bodes ill for the developed world, including Canada, which is a trading nation. Had the talks ended well, the accord would have added $50 billion a year to the world economy, according to the World Trade Organization --$100 billion after 10 years.
Amid the breakdown of negotiations -- which had been ongoing for seven years, incidentally -- there emerged some small bright spots. Canadian Trade Minister Michael Fortier announced that Canada will seek bilateral trade deals, notably one with the European Union, which would be a boost to the Canadian economy. Talks on that arrangement are expected to begin later this year.
While Canada and other countries try to pick up some pieces of the failed trade negotiations, there are signs that the end of the Doha Round signals a change in the balance of power between the developed and developing world, and that could shape future talks.
The world's most powerful countries -- notably the United States and the European Union -- are also some of the most protectionist when it comes to agricultural subsidies. Brazil, for example, complains that the U.S. is unfairly blocking the sale of Brazilian ethanol to the U.S. through high tariffs.
Hypocrisy is never attractive. The Americans talk a good game about free markets and open borders, but as Canadians learned during the softwood lumber mess, U.S. governments will engage in anti-trade behaviour in order to pander to domestic political constituencies. Canadian governments have been accused of similar double dealing in the area of agriculture policy.
And so it was that so-called emerging economies such as India and China scuttled the Doha deal, demanding more protection for their own farmers.
The influence of India, China and Brazil at the talks was taken by observers as a sign that no longer can the world's most powerful (that is, western) countries call the shots.
"I have witnessed the emergence of a new world order where all of the world's countries are present and defend their rights," concluded Norway's foreign minister Jonas Gahr Stoere. Brazilian president Luiz Inacio Lula da Silva celebrated the shift in world power. "They have to take us into account," he said.
As the dust settles on Doha, it will become ever clearer that the world's richest nations will be unable to persuade emerging powers that free trade is good for them, if those rich nations don't practise what they preach. There's a fear that protectionism is in the air, which if true is to no one's benefit, rich or poor.