Talks between the US, EU, India and Brazil - the G4 - broke down on June 21st after failure to agree on cuts to tariffs and subsidies. This is the latest ‘collapse’ in a series of breakdowns and re-starts since the current round of WTO talks was kicked off in Doha in 2001.
Background
In 2001, a new round of WTO negotiations was launched in Doha, Qatar. In recognition of the fact that global trade rules and practices were failing poor countries, this round was said to be a ‘development round’ – with the needs and interests of developing countries at its core. However, from their inception, the negotiations have been far from development-focussed. The concerns and interests of developing countries have been increasingly sidelined and the voice of the poorest ignored. Given the lack of progress over the last five years, four key players – the G4 – had resorted to exclusive meetings to try to break the deadlock.
Cause of recent breakdown
The reason for the latest breakdown is the US and EU’s consistent refusal to make the necessary changes to stop the damage caused by their own agricultural subsidies and tariff regimes, while at the same time aggressively demanding that developing countries open up their industrial markets. This failure to take seriously the development mandate that is supposed to be at the heart of these negotiations is a gross betrayal of millions of poor people across the world. The G4 negotiation process in itself has lacked transparency and democracy and didn’t bode well for the rest of the world’s developing countries.
Next steps
Tearfund believes that a multilateral rules-based global trading system is needed to bring about trade justice, but the current rules are not delivering, and what’s currently on the table from the US and EU at the WTO won’t deliver either.
The international community should take the opportunity that this breakdown in the talks presents to allow the Doha Round to come back to its original mandate and build a new set of world trade rules that will bring about sustainable development.