After rounds of failed ministerial talks, it is time for top
leaders of the major trading nations to weigh in to salvage the
global trade talks, which are on the brink of collapse.
When they meet in St. Petersburg for the G8 summit over the
weekend, the leaders have a chance to show they are not indifferent
to the Doha round and remain committed to the cause of free trade,
the cornerstone of today's global economic system.
Without a resolution from the leaders, it would be a miracle if
the negotiators managed to wrap up the talks by the deadline at the
year's end.
US President George W. Bush and his European counterparts should
be aware that they have a special responsibility to break this
deadlock. The Western economic powers have been the main
beneficiaries of the current international trading system. A
successful Doha round would continue to benefit them as well as
developing nations.
Criticizing developing countries, China included, for not giving
enough would just be another exercise in beating about the
bush.
The rifts seen today between richer and poorer nations on trade
issues date back to the days before the launching of the Doha
round.
To show the world's solidarity after September 11, rich nations
agreed to developing nations' demand about the framework of the
Doha round. That paved the way for the launch of these trade
talks.
Although developed nations finally agreed to put issues such as
agricultural trade barriers on the agenda of the talks, they have
so far failed to show any intention to do anything serious about
this.
Difficulties for the US and some European negotiators to make
concessions come mainly from rising anti-free trade sentiment in
recent years in their countries, as well as pressure from elections
which take place this year in some major trading nations.
Facing such constraints, it was indeed difficult for the
ministers to reach a deal.
It will also be tough for the leaders.
However, it will also be a chance for the leaders to display
their vision, political wisdom and courage.
After all, a deal would be a boon for the world economy as a
whole, although it will not guarantee benefits for everyone.
But a collapse is in no one's interests, as it would lead to a
plethora of bilateral trade arrangements, which have already
created a highly complex web bewildering businesses and putting
weak nations at disadvantage.
It could even pose a threat to the very existence of the World
Trade Organization, which, with its clearly defined rules and
dispute settlement mechanism, plays a crucial role in maintaining
rule of law in world business.
(China Daily July 14, 2006)
