Doha Draft Texts Show Progress But Situation Remains Grave

Doha Round negotiators have met their deadline for the publishing of draft texts, the release of which director general Pascal Lamy has said allows World Trade Organization members to consider the entire Doha package. However, while Lamy praised the scope of the documents, he also warned of the issues continuing to divide negotiators, and labelled the situation "grave".

The release of the texts, on April 21, is in itself a significant achievement, accomplished in the face of considerable timing pressures and in the wake of the well-publicised concerns of not only Lamy himself, but also of prominent economists and political figures around the world. The documents are grouped under eight headings: agriculture, non-agricultural market access, services, intellectual property, environment, development, trade facilitation, and dispute settlement. As Lamy noted, they reflect the work of negotiators over the last ten years, during a process which has been beset by difficulties and dominated both by repeated accusations of narrow interests and by pleas for the finding of a middle ground.

In view of such circumstances, Lamy has commended what he sees as very significant progress, and the efforts made by negotiators. The texts "show a picture which is both impressive and realistic", he said. According to Lamy, the achievements made thus far would allow for substantial benefits on a global scale, providing more trade, and better trade rules, along with opportunities for investment and job creation. The value of what is on the table is clear from the documents, and, were the Round successfully concluded, Lamy believes that, above all, it would offer a powerful signal that the spirit of global trade cooperation remains intact. From Lamy's point of view, the texts bring members closer to this point than ever before.

Nonetheless, despite emphasising what progress has been made, Lamy also highlighted the problems negotiators still face. The stakes are high. Thus, the publication "is realistic in what it reveals about the issues that still divide negotiators and put the successful conclusion of the Round at serious risk". In particular, Lamy judges necessary progress not to have been possible in the discussion of market access for industrial products, which comes under the heading of non-agricultural market access (NAMA). In recent weeks, Lamy has engaged in a series of consultations designed to determine the extent to which differences of opinion exist among key participants on the issue, and the means with which to rectify them.

"The finding of my consultations are clear: there are fundamentally different views on the ambition provided by the cuts to industrial tariffs under the Swiss formula as it currently stands, on whether the contributions between the different members are proportionate and balanced as well as on the contribution of sectorals. I believe we are confronted with a clear political gap which, as things stand, under the NAMA framework currently on the table, and from what I have heard in my consultations, is not bridgeable today".

Lamy acknowledges that the Round will remain incomplete were outstanding issues to remain thus, but it is with the contentious subject of NAMA that he detects the most dangerous obstacle. Here, "the differences today are effectively blocking progress and putting into serious doubt the conclusion of the Round this year. This is a grave situation for the Round and for all of the efforts and aspirations it embodies".

However, Lamy is determined to push forward with the Round, his determination fostered, in part, by what he sees as an overall commitment to its aims. "There is recognition that it cannot just be 'business as usual'. There is also a sense that the answer cannot simply be to 'stop and reboot', since the issues to be addressed in any new Round would necessarily bring us back to the issue which is blocking progress today. We therefore need to reflect actively together as to the next steps".

A grand plenary meeting of the WTO is scheduled for April 29, where the further progress of the Round is to be discussed. Lamy has urged governments to to use the intervening time to reflect upon the situation, to contemplate the consequences of failure, and face the reality of the situation, in order to find a viable way forward.

April 28^th, 2011

Source: tax-news.com