Wednesday, December 14, 2005

The Doha round in HK

Spiteful quibbling is perhaps the best way to describe the mood that currently pervades the Doha trade talks taking place in Hong Kong. As anti-globalization protestors engage in their usual marches, colourful displays and comical caricatures, their unbridled hatred for anything that even resembles "WTO" blinds them to what is actually happening. The pro-globalization western powers are not exactly a solid negotiating block proponing one constant policy of trade liberalization - in fact, far from it. America continues to push for a narrow focus on agricultural trade reform (which, though politically convenient, is actually the right idea) while the EU refuses to engage unless it can somehow detract attention from its voluminous butter mountains and wine lakes. Progress, it seems, is too difficult to fit into a busy agenda of banter.

All the while developing nations grow increasingly frustrated as the talks show less and less promise of the reform that they desperately want, and need. Can anything be done? Storming out of the talks in a temper tantrum, as Benin has threatened to do over cotton, hardly seems a fitting solution. Or is it? Developing nations are failing to recognize that trade reform is not subject to the whims of the world's largest and wealthiest economies; yes, obviously were the US and EU to reform their trade restrictions with developing nations a great deal could be accomplished. But recent studies, notably by the World Bank, have shown that most of the opportunity for increased economic growth through trade reform lies in "South-South" trading relationships - i.e. in eliminating the restrictions that developing countries have instituted between themselves. If the US and EU are going to misbehave and argue with each other rather than push for real reform, why not let them do so? Developing nations should engage in trade reform with each other regardless, while the US and EU are left twiddling their thumbs.

2 comments:

Anonymous said...

Ahhh Shane me boy, unfortunately you fail to recognize that the anti-globalization protestors in places like Cancun and Hong Kong arent like the ones that were seen during Seattle and Quebec City. These were the people who were really hurting from the decisions of the powerful few. I know that the WTO and World Bank look down onto the world, and not the other way around, but not all of us do. It doesnt matter whether developing countries governments sign this or that, because they too at the end of the day arent the ones effected most by these decisions. By the way those Korean farmers are hardcore, they may actually shut down the talks next time. They got close in Cancun, they nearly did it in Hong Kong. The third time is the charm!

Shane said...

I recognize the differences between rebellious Seattle youth and poor Korean farmers, but that does not play against my principal argument. On the other hand your argument concerning the democratic deficit that might lead to Korean representatives in trade talks misrepresenting the interests of their electorate (or certain segments of it)...well, the Korean farmers can always vote for someone else, can't they?

Merry Christmas and a Happy New Year, you bloody communist. You should start a blog.