Freedom to Trade Coalition reaction to latest Draft Declaration

18-12-2005

 

Freedom to Trade Coalition reaction to latest Draft Declaration:

 

Julian Morris, Executive Director of International Policy Network, says “French landowners have successfully held the World to ransom. By blocking rapid removal of agricultural subsidies, the EU has undermined liberalisation in this important area, harming efficient agricultural exporters such as Brazil and Thailand. It has also delayed liberalisation in other key areas, including services – which would have benefited not only the wealthy countries, including France, but also many poorer countries, such as India.” 

Barun Mitra, director of the Liberty Institute in India added “the watered-down agreement to continue negotiations on the General Agreement on Trade in Services fails to push more countries towards a concrete series of timetables for reform. As the agreement stands, Indians’ internationally recognised capacity to provide accounting, banking, IT, legal and telecom services will not realise its full potential.”

 

Comments

[Sarah Press]

Comment on and debate this issue at: http://www.cwt.org/blog/

On June 21st, four major WTO players met in Potsdam, Germany to breathe life in the current round of free trade talks that formally commenced in 2001 in Doha, Qatar. Unfortunately, the talks between leaders of developed nations, the US and EU, and advanced-developing nations, India and Brazil, failed to reach a consensus. Brazil and India were hoping to get a reduction in the subsidies the EU and US give their own farmers that results in artificially cheap food prices relative to agricultural goods grown by poorer developing economies. Meanwhile, wealthy countries were hoping for a cut in relatively high tariffs in many developing nations for example: to gain more access to Brazil and India’s highly protected industry sectors. Representatives for the developed and developing economies just couldn’t agree.

Stalled free trade talks is nothing new. In fact the previous round of formal trade talks that engendered the World Trade Organization – the Uruguay Round - took over six years to complete. Consumers, not only in the US but around the world, stand to loose the most from stalled efforts to reduce border taxes.

Even if trading partners can reach an agreement, time is running out to make the Doha deal a reality. Trade Promotion Authority granted to the Bush Administration is scheduled to expire very shortly, on June 30th. With the Bush Administration lacking the fast-track TPA, Congress will need to approve ro disapprove the deal with a straight up-or-down vote not subject to amendments. So far, Congress has not renewed this fast track authority and Congressional leaders have not seriously signaled their intent to do so.

[Ed]

Their economy dies while they try and protect first world farmers.