Doha Round talks to be concluded with a ‘different’ approach: Lamy

The on-going Doha Round of global trade talks will be concluded in phases instead of being a single undertaking and countries need to decide what issues should be part of early harvest and what would come next, said World Trade Organisation Director-General Pascal Lamy.

“It was already decided by trade ministers in the Geneva ministerial that an early harvest approach has to be adopted in the Doha round. This does not mean the round will not conclude. It will conclude with a different approach,” Lamy said in an interview to Business Line .

What needs to be worked out now by all trade ministers is what issues to include in the early harvest and what are the crop of issues that would come next, he said.

The Doha Round of multilateral trade talks, that was launched more than a decade earlier to open up global markets in goods and services, broke down in 2008 when key members including India, the US and the EU disagreed over the level of commitments in agriculture and industry.

The global economic crisis, diverted the world’s attention to sorting out problems on the domestic front and the Doha round got further ignored, Lamy said.

The 13th WTO ministerial conference in Bali, Indonesia, in December will be crucial as attempts would be made to conclude deals in a handful of areas being negotiated within the Doha framework.

A number of developed members, including the US and the EU, are pushing for a trade facilitation agreement to upgrade border infrastructure which, as per WTO estimates, could provide a $1-trillion boost to the world economy.

Developed countries are also trying to expand the information technology agreement that had been signed between 20 countries to include more products and sign a services agreement including a handful of countries.

India, on the other hand, wants developed countries, including the US, to agree to remove its farm subsidies, especially in cotton, and is seeking flexibilities in commitments for all developing countries.

Lamy said the WTO has served the world well in the last few years of economic crisis as it kept protectionist forces at bay.

“Protectionist pressures have remained in check due to the WTO rules and peer pressure,” he said.

Answering questions at a press conference, Lamy said that it was not open trade but improper regulation of the financial sector that had triggered the global crisis. “You can have open trade and proper regulation and closed trade and improper regulation,” he said.

The WTO has to constantly adapt to face new challenges and find solutions, the Director-General concluded.

amiti.sen@thehindu.co.in

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