WTO

Geneva Conference: WTO lacks inspiration

Seventh ministerial conference of WTO was held in Geneva from November 30 to December 2, 2009. This Conference is the highest decision making body of WTO and is held every two year, but due to global financial crisis rules of the international trade have been eclipsed. The last conference was held in Hong Cong four years ago, and it was thought that governments would make this new conference a historic event. But it did not happen. No agreement could be reached on the Doha Round started in 2001. The round is hanging in balance for the last eight years due to not developing an understanding between developed countries and developing countries. Developing countries have been insisting on the reduction of huge subsidies given by the governments of the developed nations against the WTO agreement. On the other hand the developed nations insist on allowing NAMA (non agriculture market access) by the developing countries; this means that the developing nations should reduce or eliminate tariffs on industrial products of the developed countries and then only the developed countries would reduce agricultural subsidies. The developing countries are arguing that the reduction of agricultural subsidies was agreed upon at the time of formation of WTO, but the developed countries are not only violating the agreement but they have instead increased heavily the amount of subsidies given to their farmers. As a result of this, the agricultural products of the developing nations are not able to compete with the subsidized agricultural products of the developed countries. If they agree. To NAMA, their industries would collapse since the developed countries would flood developing countries’ markets with their products.

No agreement could take place between these two opposing positions and the Conference ended without any result. The governments’ representatives consoled themselves by saying that the conference did give them an opportunity to understand each other’s viewpoint.

G-20 nations have expressed hope. They have decided to complete the talks by the end of 2010.