The International Herald Tribune

November 17, 2001

Something to Celebrate: Doha Serves the World a Trade Tonic

By Maria Livanos Cattaui

PARIS – The decision in Doha to launch new multilateral trade negotiations is something to celebrate in these cheerless times. Despite the global economic downturn, governments turned their backs on protectionism and resolved to open markets still further to promote economic development.

They overcame deep differences, made sacrifices and accepted compromises in the interest of all. That is reason enough to rejoice. In the end, the entire world benefits -- industrialized and developing countries, business and consumers. 

A golden thread running through the Doha ministerial declaration is the World Trade Organization's determination to meet the special needs of developing countries and integrate them fully into the multilateral trading system.

They felt left out in the cold after the Uruguay Round, but this time they succeeded in wielding considerable bargaining power. The United States and the European Union displayed new readiness to accommodate developing countries' priorities.

The developing countries may not have got all they wanted, but they did make significant gains. The agreement to reduce agricultural subsidies with a view to phasing them out altogether was particularly important to them. Equally significant was the decision that WTO intellectual property rules should not prevent member governments from taking measures to protect public health and provide access to medicines.

The ministerial declaration commits ministers "to address the particular vulnerability of least developed countries and the special structural difficulties they face in the global economy."

Many business proposals are to be covered in the coming negotiations. These include further reduction of tariff and nontariff barriers to trade, substantial improvement of market access for agricultural products from developing countries, and a ban on customs duties on electronic transmissions.

On trade facilitation, including customs modernization, business would have preferred the ministers to make a clear statement of their governments' intention to create WTO rules. Instead there was talk about "explicit consensus" and "modalities" before negotiations can start after the next scheduled ministerial meeting two years' hence. The same delays apply to negotiations on competition, investment and government procurement.

Still, the agreement is "broad and balanced," as the WTO director-general had hoped. It offers something for everybody, and that proved to be the secretof success.

Doha was a good beginning, but it was only a beginning of what is likely to be an arduous process over several years. The final declaration supplies ample room for maneuver in the negotiations to come.

If the new development round is to live up to the expectations now generated, the political will that sustained the WTO ministers throughout their Doha labors will need to last much longer. The acid test will be staying power. The rewards will be enormous.

The writer is secretary-general of the International Chamber of Commerce. She contributed this comment to the International Herald Tribune. [Not to be reproduced without the permission of the author.]

Copyright 2001 International Herald Tribune