World Trade Organisation Talks Collapse– No Deal Better Than A Bad Deal

The Trade Justice Movement believes that 'no deal was better than a bad deal' at the failed WTO talks that collapsed on Tuesday 29 July. The failure rested with the fact that the USA and EU have consistently put their own needs above those of developing countries, particularly in relation to agriculture. Developing countries are to be congratulated for defending the rights of their small scale and subsistence farmers

The Doha round, begun in 2001, was billed as a development round. It was meant to make world markets fairer for poor countries and address the iniquities of previous trade rounds. Yet, if the deal had been signed this week, it would have made life more difficult for small scale and subsistence farmers in developing countries. The USA, for example, suggested that it would limit its subsidies to $14.5bn but it currently provides $7-8bn annually. This would mean that it would not cut its trade distorting subsidies by even a cent. 

In the end, it was fundamentally unfair to ask poor countries to take a hit economically in the name of 'preserving the multilateral system'. The Trade Justice Movement will continue to call on the UK and other governments to urgently put in place a system of international trade rules that can meet the global challenges facing the international community at the beginning of the 21st century: poverty, social injustice and environmental degradation such as climate change.

The EU and USA were keener to secure the $50-$100bn projected to be injected into the world economy by any WTO deal- the vast majority of which would have gone to developed countries. In the end, it was fundamentally unfair to ask poor countries to take a hit economically in the name of 'preserving the multilateral system'.

The Future is Trade Justice

The Trade Justice Movement will continue to call on the UK and other governments to urgently put in place a system of international trade rules that can meet the global challenges facing the international community at the beginning of the 21st century: poverty, social injustice and environmental degradation such as climate change.

Everyone has the right to make a decent living, feed his or her family and protect the
environment. But, at the WTO and elsewhere, the rich and powerful are pursuing trade
policies that put profit before the needs of people and the planet. To end poverty and
protect the environment we need Trade Justice not free trade.

Latest News

Anti development stance of US and EU to blame for WTO talks collapse, ActionAid, 30 July 2008

Doha - No Deal Better than a Bad Deal, Christian Aid, 30 July 2008

Breakdown of trade talks a missed opportunity, Oxfam, 29 July 2008

Trade talks collapse 'welcome', War on Want, 29 July 2008

Analysis on the collapse of the WTO talks, World Development Movement, 30 July 2008

Background
In 2001, developing countries, under significant pressure to show ‘global unity’ following the terrorist attacks on 11 September, agreed to launch a new round of trade talks, on condition that it would focus on development and address the problems created during the previous round of talks (the Uruguay Round). A real opportunity was created for the global community to take a new approach to international co-operation and work to rebalance unfair world trade rules.

As the world’s trade ministers had set off for the World Trade Organisation (WTO) ministerial meeting in Doha, Qatar in November 2001, over 8,000 trade justice campaigners rallied in London publicly launching the Trade Justice Movement and sending a clear message to the UK Government and other rich countries that British people want to see a trade system that benefits the whole world. The wider global justice movement demanded fairer and greener trade rules that would also make the world a safer place.

Over seven years later and hopes that the WTO Doha Round would work for development have been cruelly disappointed. Negotiations had remained in deadlock, whilst pretences that the talks would focus on achieving development outcomes have been dropped for crude horse-trading by the richest and most powerful countries.  

During the seven years since the talks started, we can look back at a series of failed opportunities by the European Union (EU) and the United States (US) to commit to meaningful reforms of their damaging agricultural subsidies. Seven years later, we can look back at a series of excessive and harmful demands by the EU and the US to liberalise developing country markets without consideration for their impact on poor people.

The WTO Doha Round was meant to rebalance the unfairness of the Uruguay Round, not retrench it. The governments of the world should avoid making the same mistake twice. It is unclear what will happen next after the failure of these set of talks.

A massive public campaign for Trade Justice

Since 2001, the member organisations of the Trade Justice Movement have provided shared ways for the public to mobilise in the UK , as campaigns have been doing in other rich countries, so that debate and citizen action increase the pressure on governments to change unjust international trade rules. We act in solidarity with those doing the same in the developing world.

The Trade Justice Movement believes that the combination of assertiveness by developing country governments and global public pressure, in both rich and poor countries, can bring about positive change at the World Trade Organisation (WTO) and elsewhere.

Together with many other campaigning groups internationally, the UK Trade Justice Movement has helped to place the issue of poverty into the heart of the trade debate both in the public domain and at the WTO. This focus on justice has expanded the space for developing countries to take more assertive positions in the negotiations. Leaders of developed countries acting against the interests of the world’s poorest people now know the world is watching when they continue to choose unjust trade policies.  

UK citizens have played their part in this global struggle by regularly taking action on vital trade justice issues. Public pressure has already contributed to important policy changes. For example:

• Rich countries had to withdraw their demands for new WTO agreements on liberalising investment, competition policy and procurement. Developing countries won this fight against the imposition of WTO rules to reduce the power of governments to regulate business and the ability of poor countries to harness investment for their development needs.

• The issue of agricultural dumping and the elimination of export subsidies is now at the top of the trade agenda alongside issues around rich countries aggressively pushing for poor countries to open their markets.   

Hundreds of thousands of supporters of Trade Justice Movement member organisations have campaigned, helping to create massive public pressure in the UK and beyond for trade justice in international trade negotiations at the WTO.

For example, in the UK our campaign has seen:  

• The largest ever lobby of UK Parliament
• The biggest public protest of the last general election  
• Over 225,000 people taking to the streets of Edinburgh ahead of the G8 summit in protest of unfair trade rules
• More than 800, 000 UK voters casting a ‘Vote for Trade Justice’ calling on the UK government to respect poor countries’ right to decide on trade policies to help end poverty and protect their environment.

Amid a backdrop of global protests against one-size-fits-all economic liberalisation, the 150-country WTO talks have stalled repeatedly and seem to have crashed in July 2008..All countries were urged to make painful compromises on tariffs and subsidies in farm and manufactured goods. Poor countries were being asked to liberalise markets with little regard for the impact on poor people and the environment.  

It is clear the offer on the table at the WTO was a bad deal for development – it will do very little to tackle poverty and could cause unemployment and hardship.

The Trade Justice Movement will continue to call on the UK and other governments to urgently put in place a system of international trade rules that can meet the global challenges facing the international community at the beginning of the 21st century: poverty, social injustice and environmental degradation such as climate change.

Everyone has the right to make a decent living, feed his or her family and protect the environment. But, at the WTO and elsewhere, the rich and powerful are pursuing trade policies that put profit before the needs of people and the planet. To end poverty and protect the environment we need Trade Justice not free trade.