He says leadership, pragmatism and determination needed to end standoff.
The Doha round of global trade negotiations under the World Trade Organization (WTO) has reached a hiatus yet again, said WTO director general Pascal Lamy.
He urged all member-countries to exhort faith in the multilateral trading system and said it is time governments recognise contributions made by the multilateral trading system during the recent financial crisis through smooth flow of goods and services between countries and peaceful settlement of trade disputes, to capacity building in developing countries. Trade ministers from all 153 member-countries will meet during December 15-17 at the WTO headquarters in Geneva to draw a map for the future to sustain the multilateral trading system.
“I guess it is also time to think seriously about how we can continue to advance global trade opening, how we can progress in updating the existing trading rules. For the moment, we know the Doha round of trade negotiation is deadlocked. To exit this, we need three basic ingredients of leadership, pragmatism and determination,” Lamy said here on Monday, while addressing a gathering at the Indian Institute of Foreign Trade.
At a time when the global economy is still limping towards a recovery and countries are deep under sovereign debts, the multilateral trading system could become the only tool to fight poverty, generate employment and create jobs, said Lamy.
“We cannot give up because the slope is too steep or because it takes too long or because the headlines are negative. We need determination because WTO negotiations are a collective enterprise. We are now preparing the eighth ministerial conference, which will take place in December. I am confident that the WTO members, the stakeholders of this global trading system, will be able to chart a path forward.”
Commerce , Industry and Textiles Minister Anand Sharma, who was present at the event, said while the ongoing financial crisis may lead to more introspection and promote protectionism, it will be counterproductive and will delay the recovery and deepen recession. “Many skeptics on Monday feel the WTO is at a cross-roads and the lack of progress in the Doha round raises questions on the relevance and efficacy of this institution. We must not allow this round to collapse.”
Timely conclusion of the Doha round would not only have strengthened the WTO as a bulwark against protectionism and boost global economy, but would also have signalled the WTO’s firm commitment to development, said Sharma.
The Doha round of trade talks started in November 2001 to enable poorer countries export more by gaining greater access to developed markets, while the latter would reduce their various subsidies that distort global trading rules. The talks have missed several deadlines during the last decade. Last year, during the G-20 meeting it was decided by all countries that the round would be concluded by December this year, which also appears implausible.
