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INSULZA NOTES DOHA ROUND MUST SUPPORT DEVELOPING COUNTRIES

Organization of American States OAS Secretary General José Miguel Insulza today expressed deep regret at the failure of the Doha Round of multilateral trade negotiations on agricultural and industrial products under the auspices of the World Trade Organization WTO.

He described the collapse of the negotiations as “all the more unfortunate given the complexity of current international economic slowdown, inflation, financial risks and food and energy crisis,” and warned that this could further effect developing countries and worsen the poverty situation.

Insulza noted that in these times of uncertainty, the world needed a positive outcome to the negotiations. He also warned that the collapse of the negotiations could be a blow to business confidence, and argued that “even if it does not have an effect on trade immediately, it could lead to more protectionism, which is why the breakdown of talks is a setback for most farmers in Latin America and the Caribbean, who were hoping they would find new markets.”

The OAS Secretary General said the failure to find agreement in the negotiations “has dealt a severe blow to the multilateral trade system, and is a particular setback for the developing countries’ prospects and interests that would have stood to benefit from significant tariff reductions to the tune of two thirds of the more than $130 billion that the WTO calculates to be the potential benefits of the negotiations.”

Furthermore, according to Insulza, things are now at a standstill on important issues such as tariff reductions; the dismantling of subsidies behind the distortion of agricultural trade; and agreement on issues such as sugar, ethanol, beef and tropical products.”

Insulza said that, in view of the collapsed negotiations, “interests in developing countries have missed out on an opportunity for better access to industrial products and to agree on a framework for settling pending issues on cotton as well as questions of geography and biodiversity related to intellectual property.”

The OAS chief noted that throughout its existence, the multilateral trade system has experienced complications. That is why “multilateral trade agreements and rules have a special purpose, to ensure that international trade works properly. They also impact opportunities for growth and development in our countries,” Insulza remarked.

Secretary General Insulza said it should be recalled that “the Doha Round seeks to restore balance to trade system rules so as to benefit developing countries. This is a very significant point, and we trust that once conditions are in place to return to the negotiating table, all our governments would put significant effort into revisiting agreements already reached this week and settle the complicated issues that are outstanding.”

Reference: E-300/08