Ignoring developing countries needs causes Doha demise

30 July 2008

The failure of industrialised countries to consider the concerns of developing countries made the collapse of the WTO Doha round inevitable, says CID Executive Director David Culverhouse.

The US refused to accept WTO Director-General Pascal Lamy's proposal for a ‘Special Safeguard Mechanism' which allowed an increase in tariffs by developing countries seeking food security when surges in imports threaten local production. This would have only occurred when ‘demonstrable harm' to food and livelihood security and rural development was occurring. Even then any action would have been subject to expert review.

"Clearly, developing countries are not going to accept trade rules that prevent them developing and threaten the survival of the small farmers their economies depend on," says Mr Culverhouse.

"Rich countries must accept trade agreements that allow poorer countries opportunities to get a fairer deal in world trade."

"Even if agreement over the Special Safeguard Mechanism had been reached, other issues looked likely to prevent agreement."

"The recent US farm bill reinstated cotton subsidies already ruled illegal by the WTO, and major African producers of cotton were suggesting this made a Doha deal unacceptable unless cuts were forthcoming," he says.

"While this may mean the Doha round is history, developing countries need to be given more control over any future trade negotiation processes so that discussions over issues of most concern to developing countries are not left off the agenda, or delayed until the last minute," says Mr Culverhouse.


For more information contact David Culverhouse, CID executive director.
Phone 04 496-9615, mob 021 708-288
E-mail: david@cid.org.nz