World Trade Organisation Shouldn't Be Allowed to Die

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World Trade Organisation Shouldn't Be Allowed to Die

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The Nation (Nairobi)

October 7, 2008

Opinion Article By Philip Kaloki

The future of the world Trade Organisation is in jeopardy and time is now for positive global action to restore confidence among its members.

The failure of the WTO ministerial meetings in Geneva at the end of July this year was sad news especially to developing countries like Kenya.

I had the privilege to represent the country as a member of the Parliamentary Committee on Finance and Trade to the annual session of the Parliamentary Conference on the WTO in Geneva (September 11-12).

The earlier meeting had been expected to come up with the modalities for agriculture and non-agricultural market access, but it didn't happen.

This was the third year running in which efforts to reach a breakthrough failed. Members had in the previous years repeated commitments to conclude the round by the end of 2008, but this now appears to be a pipe dream.

This was indeed, a slap in the face of multilateralism, to which the developing and developed countries subscribe.

The July talks collapsed because of rules governing agricultural trade. There was a tug-of-war between members over special safeguard mechanisms for small-scale agricultural producers in the developing world.

Issues like addressing the concerns of cotton producers in the developing world, industrial tariff reduction commitments and rules of trade in services also stood on the way to realising an acceptable operation.

Kenya, which falls in the bracket of developing countries, has every reason to be worried about the future of the Doha negotiating mandate, and the question in mind is whether it will be possible to preserve its core objectives.

As a country, we cannot close our eyes to the obvious obstacles of a single undertaking. Indeed, good progress was made by the ministerial meeting in July which brought WTO members close to finalising the agreement.

We have had solutions to a very large number of problems which had remained intractable for years. Therefore, I don't see the reason why the Doha rounds cannot be salvaged given goodwill from all members.

So which way forward for the WTO?

To tackle the obstacles that have come its way, the WTO should engage in institutional reforms to help it improve its functioning, and at the same time enhance its accountability and legitimacy.

It should start dealing with inequality. There is no point in the world trade body simply opening up markets and then assuming its role ends there.

It was a feeling of many at the Geneva talks that had the Doha round been accomplished, a lot in terms of equity would have been the result.

Kenya, just like other WTO countries, reaffirms its commitment to the multilateral trading system embodied in the WTO, which contributes to enhanced security, transparency and stability in international trade, and to a better management of globalisation through multilateral rules and disciplines and the judicial settlement of disputes.

In view of the soaring prices of raw materials and agricultural products, a successful conclusion of the Doha Round of talks could be the stabilising factor needed by a world increasingly worried about financial and economic crises.

As the MPs attending the Geneva talks concurred, the Doha round should deliver on development, including duty-free and quota access to all developed country markets, by substantially reducing agricultural subsidies.

It is, of course, difficult for developing countries to achieve these things at the same level considering the fragmented regional and bilateral deals.

But this can be done through institutional reforms aimed at improving its functions while at the same time enhancing its accountability.

This year, it is too late for the WTO to complete the Doha Round. We hope that 2009 will give the world a ray of hope.

The rising cost of food prices affects all parts of the world. But this can find an answer through the Doha Round which can allow supply to adjust to demand.

The WTO should not be left to die. Instead, member states should preserve what has already been achieved and restart the negotiations in July next year.

Prof Kaloki is MP for Kibwezi. He was vice-chairman of Kenya's delegation to the Parliamentary Conference on the WTO in Geneva, Switzerland.

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