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Deal offers hope of salvaging globalization
2004-08-03
China Daily
The breakthrough deal the World Trade Organization's (WTO) 147 members struck on Sunday is a needed first stab at marrying fair global trade order with liberalization.
By finally committing rich countries to substantial cuts of trade-distorting farm subsidies, the interim accord, at least for the moment, has saved the Doha Round trade talks from the rising dislocation of globalization.
The Doha Round was launched in the Qatari capital in late 2001 with the aim of giving developing nations greater benefits from trade. Negotiations were originally expected to conclude by January 1, 2005.
However, as the WTO's trade meeting foundered last September in Cancun, Mexico, fears prevailed that there was no chance left to deliver the development promises.
Yet, due to strenuous efforts made by all sides, WTO members on Sunday agreed to extend the negotiations until at least December 2005, while others think 2006 or 2007 more realistic.
Sadly, it took the collapse of trade negotiations in Cancun for the world to recognize the very vulnerability of not only the Doha Round trade talks but also the multinational trading system itself.
The new outcome might, in a sense, imply that collective fear of failure sometimes works.
But trade liberalization, if approached in a fair way, should not be a cause of fear. It is definitely a cause for hope for all countries.
Though discontentment with globalization has conspicuously increased in recent years, past history still points to free trade as one of the most effective ways to reduce global poverty.
The de facto development gap between rich and poor nations which continues to widen is indeed sufficient reason for a thorough review of today's global trade order.
Clearly, it is time for rich nations to take the plunge to allow the tilted playing field to be leveled in developing countries' interests.
Without poor countries' necessary flexibility, nevertheless, no trade talks will bear fruit by simply blaming rich nations for not making due concessions.
Now, the new half-way accord has set needed guidelines for future negotiations. And extension of the negotiation timetable allows us to get our breath back.
Given past failures and the challenges that lie ahead, more efforts will be needed to keep WTO trade talks on track.
Moreover, making Doha a better deal for poor countries should always top all negotiations that are meant to transform development promises into real deeds.
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