International Herald Tribune
April 10 2003
It's multilateralism that makes the world go round
By Maria Livanos Cattaui
Paris, 10 April 2003 -- Governments should start mending the fences broken in the debate over Iraq right now, without waiting for the war to end, because if international harmony is not restored soon, global prosperity - which depends on multilateralism - could suffer.
There can be no Fortress America, no Fortress Europe, in a world in which the fortunes of nations are more tightly intermeshed than ever before. No country or group can go it alone.
The animosities that have flared up over Iraq, especially in the vital trans-Atlantic relationship, have caused profound unease among business leaders, including the executives from all parts of the world who are members of the International Chamber of Commerce.
There is real fear that the international order the United States did more than any other nation to create over half a century ago is being dangerously weakened.
Business is constantly demanding that governments strengthen the global framework of rules that make it possible to invest and trade with confidence internationally. Companies rely on these rules - and the
international institutions that administer them. This kind of multilateralism is a precious asset that should not be squandered.
Unofficial boycotts of French goods in the United States make headlines, but like all such gestures they will quickly fade. Far more important to business is the underlying trust and friendly regard between governments that finds its reflection in productive business relationships.
Good relations between the United States and Europe should be at the core of a wider international comity; the United States and the European Union are the two largest economies in the world, and they increasingly depend on each other. Together, they account for 40 percent of world trade. The
flow of trade between the EU and the United States is running at nearly $1 billion day. Each receives more than half its foreign investment from the other. This hard evidence of interdependence shows the vital interest of both in working together.
When the EU and United States do achieve harmony of purpose, they have a good chance of carrying other governments with them. This was clearly evident in November 2001, when the combined efforts of Robert Zoellick, the U.S. trade representative and Pascal Lamy, the EU trade commissioner,
tipped the balance in favor of going ahead with the Doha round of trade negotiations.
Moving the Doha round forward to a successful conclusion will be far from easy. At stake are the development prospects of three-quarters of the world's population. The developing countries, which form the overwhelming majority of the World Trade Organization's members, will be hard to satisfy.
Agricultural reform is among the toughest issues of all to resolve. At the end of last month, governments failed to meet a deadline for agreeing how to negotiate a fairer deal to enable farmers in the developing world to produce and export more. Without an accord on agriculture, agreement on
other trade issues, such as services - which account for 70 percent of economic activity in the industrial world - would be impossible.
A vital meeting of trade ministers from WTO member countries is only six months away and the entire round is scheduled to be completed in January 2005. Failure does not bear thinking about. The weak world economy urgently needs the stimulus that significant further liberalization of world trade would bring. The poor countries, especially, know that their surest path to prosperity lies in their ability to sell their products in the markets of the rich world.
The WTO is a shining example of multilateralism at work. Member governments accept its authority as the maker and enforcer of the rules of international trade. The WTO has always managed to overcome conflicts among its members and its authority remains intact.
Helping to steer the Doha round to success would be the most dramatic proof the European Union and the United States could offer to showing that the spirit of multilateral cooperation is still alive and well.
The writer is secretary-general of the International Chamber of Commerce
Copyright © 2002 The International Herald Tribune
