"WTO Says Dispute Among U.S., Emerging Nations Scuttled Deal"

Image Source: Trading Lives

Article source: Bradley S. Klapper, Associated Press via The Washington Post, December 13, 2008.

Excerpt:

The World Trade Organization on Friday said it will fail to secure a new global commerce pact before the end of the year because of a dispute between the United States and emerging economies over agricultural and industrial goods.

The talks were originally planned for this week, but were pushed back to the new year.

The article also notes:

The talks, which were kicked off in Qatar's capital Doha in 2001, have suffered a number of debilitating collapses. Some diplomats, politicians and industry groups had expressed concern that Lamy was forcing through a meeting that stood little chance of success. Negotiating drafts released last weekend showed the WTO's 153 members were divided over the same issues that sank the last major effort, a nine-day summit in July.

That collapse had led many to write off any short-term chances for a deal. But last month in Washington, prompted by the global financial crisis, 20 of the world's industrialized and emerging economies called for an agreement to open up trade in farm commodities and industrial goods by the end of the year.

In Geneva, the United States and emerging powers such as China and India continued to be at odds over an American demand for massive tariff cuts in the global chemicals sector. Those countries also could not agree on a safeguard for poorer countries who fear a sudden flood in farm imports or drop in commodity prices.

Comment: People in developing countries no longer trust the Bush administration's public statements, but focus instead on its actions. I wonder why? Perhaps this is fortunate, as the delay will give the Obama administration economic team the chance to step in to the negotiations. JAD