Doha and the future bl-premium-article-image

Ranabir Ray Chowdhury Updated - September 18, 2011 at 07:11 PM.

There is certainly no link between getting the Doha Round implemented and the future of the WTO itself, which is why no eyebrows are being raised at the laying of the foundation stone for the new building, essentially a renovation of the elegant Centre du William Rappard constructed in the 1920s. Indeed, the infrastructural augmentation of Mr Pascal Lamy's organisation should in fact be seen as an assertion of its determination to get on with the job of getting the Doha Round off the ground andgive the developing world and the emerging economies their rightful place in the sun.

Long struggle

The struggle to make Doha see the light of day has been a long one, extending beyond its first deadline of January 1, 2005. So it is clear that, somewhere, there is very strong opposition to the basic philosophy of the historic agenda signed by members a decade ago. It would appear that, for some countries at least, it is the kernel of the Doha message which is at the heart of the obstruction, which means that there is no chance of any progress being made on the Round unless there is a change of heart to allow more economic space to the newer players .

This is why, as Mr Lamy has himself emphasised, only a political breakthrough can get the Doha Round off the ground. The latest instance of this reiteration came on September 6 in New Delhi where Mr Lamy said that the most important requirement of the moment was “political leadership”. To quote him: “Trade agreements need political leadership both at home and in Geneva. Trade agreements are struck by governments, not by wise men, think-tanks or Directors-General. Leaders must act to convince and spend political capital to make them happen. The time for technical work is long past. It is the hour of politics”. The problem is that the “hour” is turning out to be so extended that there is now a clear danger of the DDA itself losing its relevance.

Danger signal

Importantly, Mr Lamy also hoisted the danger signal that the DDA was becoming too old a document to keep pace with the requirements of a fast-changing international trade scenario. He spoke of a “spirit of realism” which hinted at the possibility that there could be some change in the structure envisioned by the Doha declaration. This is probably what he meant when he said that “we must now seek realistic and creative solutions”. Flexibility was another touchstone which the WTO chief emphasised, especially when he said that “perhaps the way we have been pursuing the Doha deal has been too rigid and with limitations that do not help the politics, adding, “smaller steps that show demonstrable progress might inspire the confidence and trust to weave all topics into a final package”.

So, shall we forget the Doha Round as envisaged in November, 2001 and look towards a scaled down version of it as being the objective of the December ministerial of the WTO? The suspicion is that while the traditionally rich economies will accept this “escape-route” with alacrity, the developing world and the emerging economies may not be equally obliging, and with good reasons.

Published on September 13, 2011 18:31