NEW HOPES IN THE WTO

The Greater Caribbean This Week

Luis Noriega

In recent years, the Organisation has been led by Supachai Panitchpakdi of Thailand, who was appointed Director General in September 2001. He has served in one of the most critical phases of multilateral trade negotiations in these times, following the Doha Development Agenda and its Work Programme, which has given some hope to developing countries.

The work agenda resumed last year, after Doha and the failure of the Ministerial in Cancun. Supachai has directed this work based on the reaffirmation of the Declarations and Decisions adopted in Doha and the commitment of all the Members of the Organisation. Thus, the General Council of the WTO agreed to act to establish modalities for work in sensitive areas such as agriculture, “NAMA” or Non Agricultural Market Access, Trade in Services, Trade Facilitation and other matters of interest to all member states.

It is encouraging that there is renewed commitment to include the concerns of developing countries in the Doha Work Programme. The commitment to consider the principles of development in the Doha Agenda has been welcomed. Special and differential treatment of small economies, other development issues and the complexity of the subject of export subsidies and internal support by developed countries in agriculture remain concerns which must be addressed. At least these matters are on the agenda, and there are commitments to discuss them, giving hope of achieving positive results.

Director General Supachai has done intense and complex work with the countries, but unfortunately he has warned that little progress has been made in negotiations to date, in spite of the intense work done by the countries. Time is short, but it is hoped that concrete proposals will be taken to the Ministerial Conference in Hong Kong in December of this year. In his latest report, Supachai reports at least that a better general outlook is envisaged, but that concrete progress is still needed in important areas.

In the middle of this process, Frenchman Pascal Lamy was appointed to the post of Director General of the WTO from 1st September this year. The situation gives rise to some concern, but there have been expressions of hope at his appointment. His task will not be easy, because he will be inheriting a negotiation process which is underway, but which has not achieved the progress expected, and there is little time left until the Ministerial Conference in December.

In his initial statements, Mr. Pascal noted that one of his major concerns is the situation of millions of persons living in poverty who depend on their interlocutors to express their needs in the World Trade Organisation, and that the results of these negotiations threaten their interests. He will have to suggest new formulas for advancing the negotiations, particularly of the most important subjects.

Mr. Pascal has also indicated that his immediate priority is to ensure that trade liberalisation continues to contribute to development and that developing countries are placed within the world trade system. It remains to be seen whether he is able to change the results of a process which Pascal himself considered “medieval”, and therefore proposes to change. I hope that he achieves his laudable aims and our countries are not excluded from the benefits which world trade must provide as one of the pillars of development.