West to be Blamed for Collapse of Cancun 

HARDEV KAUR / Editorial / New Straits Times (Malaysia) 16sep03

Cancun, Mexico—Cancun has failed, EU Trade Commissioner Pascal Lamy said, but others see it as a victory for developing countries which have come into their own and made it clear they cannot be dictated to by anybody.

"It's over," George Odour Ong'wen, a Kenyan delegate said. "The differences were very wide, and it was impossible to close the gap." Thus the five-day world trade talks came to an abrupt end at the Mexican holiday resort of Cancun. Even after overnight "Green Room" marathon talks the differences could not be narrowed and the talks "collapsed".

This is the second time that the current round of talks have ended without achieving what they had intended to do. The first time was in Seattle in 1999 amid violent riots.

As news of the collapse spread through the fortress-like conference venue, several activists accredited to the gathering sang in the lobby, celebrating what they saw as a victory for poor countries. Datuk Seri Rafidah Aziz, Minister of International Trade and Industry said "as usual there was a very wide gap".

The proponents of the New Issues — investment, competition, transparency in government procurement and trade facilitation — failed to listen to differing views. "They kept demanding things that others couldn't deliver," she added.

"Unless they listen to countries, unless they listen to the problems we have in meeting some of the demands of the developing countries, this is what will happen," Rafidah said adding what the developing countries wanted in Cancun was additional time for the clarification process to continue, so that they will be able at some point in future to decide whether they want to have negotiations or not.

This was denied by the developed countries. The blame for the collapse must go to the Western countries, because they insisted on putting their issues first, Yasphal Tondon, a delegate from Uganda, said. While agriculture was thought to be the lynchpin of the talks, in the end it was differences on the New Issues, otherwise known as the Singapore issues, that brought the talks to an abrupt end.

South Korea, Taiwan, Japan and Switzerland had joined the EU pressing for talks on the New Issues. The four issues were not of paramount importance to the US and, realising the ferocity of developing countries' objections, the EU tried to win over the developing countries and said that it was prepared to compromise and launch talks on the single issue of trade facilitation. But Botswana, speaking on behalf of a large group of African countries, said even that was too much. Malaysia, on its part, had made its position very clear that the New Issues were "non negotiable" as there was no "explicit consensus" on them as mandated by Doha.

Indonesian Minister Rini Mariani Sumarno said developing countries do not have the capacity to deal with the new issues. We are still grappling with (WTO negotiations) on agriculture and non-agricultural products.

As Rafidah pointed out, many poor countries would not be able to fathom to what extent any universal rules, for instance on investment, will impact on their domestic rules, regulations and policies on investment.

US Trade Representative Robert Zoellick blamed the collapse on the "very inflexible line" and "rhetoric" of some developing countries. He said: "Today we stalled because of the Singapore issues. ...Whether developed or developing, there were ‘can do' and ‘won't do' countries. The rhetoric of the ‘won't do' overwhelmed the concerted efforts of the ‘can do'. ‘Won't do' led to impasse." But developing countries, which in previous rounds, had been bullied, arm twisted and offered sweeteners, this time did not succumb to the underhand tactics of the rich and powerful.

Trade Ministers have been "pressured, blackmailed", according to Irene Ovonji from Uganda. They have been played out too often and as Rafidah said "we have learnt ...The developing countries have come into their own".

Rafidah bowled over many developing country delegates and civil society representatives described her as "a hero" and attributed the "victory" for developing countries to her negotiating skills and adamant and steadfast stance on issues of importance to poor countries.

The united stance adopted by developing countries in Cancun has proved to be a formidable opposition to the two powerful blocs — US and EU.

"This has made it clear that developing countries cannot be dictated to by anybody." It was not for lack of trying.

President Bush had called leaders of several developing countries including Brazil, Pakistan, South Africa and India. On Saturday the European Union angered powerful developing countries such as India and South Africa, offering concessions on farming in exchange for dropping their opposition to the launch of investment talks.

According to Oxfam, "rich countries over-played their hand and misjudged the strength of feeling and unity of the developing world who want to make trade fair and have a stake in global prosperity".

Blaming other countries, without naming them, Zoellick said some were more interested in flowery speeches than negotiations. He said the larger developing countries too have a responsibility.

"Useful compromise among 148 countries requires a serious willingness to focus on work — not rhetoric," he said adding that decisions required "consensus, but there was none".

The comment appeared to be directed at a group of developing ountries — often known as the Group of 20-plus — that emerged as the major opposition to the US and European positions.

Leaders of that group said they had brought concrete issues to the table that would be the basis for future trade talks. "We emerge from this process stronger than we came into it," Brazilian Foreign Minister Celso Amorim said, while Ecuador's foreign trade minister, Ivonne Baki, added: "It's not the end. It's the beginning." Zoellick said it would now be very difficult for the WTO to meet its self-imposed deadline for concluding a new trade deal by the end of 2004.

"It is hard for me to believe, in the position we are now, that we will be able to finish on time," he added.

But Rafidah pointed out that negotiaitons under the Uruguay Round were extended for two years. What is the hurry here, she asked pointing out that the concerns and views of members, rich or poor, developed or developing, cannot be ignored.

Tandon said the rich countries "should have been faithful to the promise they made at Doha to talk about development. As they did not stick to the promise made in Doha, what is the reason for us to be here?" "The whole point is that Western countries utilised this meeting in order to push their issues." Even so, many developing countries said that they would not abandon the WTO. Brazilian Foreign Minister said it was a setback not to have a result now. But we are optimistic in the long run.We must find ways to move forward, Alec Erwin, South Africa's Trade Minister said.

Zoellick, who had even before the start of the talks in Cancun warned that the US would go on its own, said on Sunday that unless all WTO members were committed to negotiating seriously, the US would press ahead with bilateral and regional trade deals as an altenative to the Doha round. The ministers nevertheless adopted a statement stating that "more work needs to be done in some key areas" to fulfil the roadmap for trade liberalisation starting in 2005 what the WTO adopted at its Doha conference two years ago.

"Notwithstanding this setback, we reaffirm all our Doha declarations and decisions," the ministers said, adding that they instructed officials "to continue working on outstanding issues with a renewed sense of urgency and purpose..." The statement said senior WTO officials would meet again by Dec 15 to try again to further the negotiations, which have been deadlocked since the Doha conference two years ago.

source: http://www.emedia.com.my/Current_News/NST/Tuesday/Columns/20030916080112/Article/ 19sep03