|
African delegations leave Cancun with a sense of foreboding
Chandrakant Patel*
The collapse of the Fifth Ministerial meeting in Cancun has spawned
a spate of views to apportion blame, together with speculations
of the ‘if only’ variety (e.g. ‘if only’
the meeting was extended by a few hours etc.) Typical of these,
is the claim in the Financial Times of 18 September that “African
delegates walked out over EU’s demands, even though it (EU)
had just ditched the most contentious of them”. Far from walking
out or “celebrating” the outcome, as some in the Western
media have claimed, African delegations left Cancun with a sense
of foreboding, conscious of the likely negative fallout from an
outcome that totally failed to address any of their concerns. Among
the likely consequences of the collapse, many fear, include increased
pressures on ACP countries in the context of the forthcoming Cotonou
negotiations with the EU, particularly on Economic Partnership Agreements
(EPAs), further pressures towards market opening, including accelerated
liberalization of critical services sectors. Then again, developing
countries have been warned of increased recourse to regional and
bilateral trading arrangements, and the implicit threat of sticks
and promises of carrots.
The fact
is, African and other developing countries went to Cancun expecting
to reach an agreement on modalities for negotiations on agriculture
and begin the long process of reforming this Agreement. African
countries, after all, are the principal victims of the current regime
that has licensed the devastation of the livelihood of their rural
communities, undermined their comparative advantages and distorted
global production and trade. In particular, many in Africa had expected
some progress on the issue of cotton subsidies, although they had
no illusions as to the obstacles and resistance to a meaningful
reform of this invidious regime. In the event, they were confronted
with a text on cotton (Job/150/Rev.2 Para 27) drafted under the
aegis of Mr Supachai, the Director General of WTO (acting as the
Facilitator on Cotton) that outraged many who had worked extremely
hard to make a modest dent in this area of critical importance for
many African countries. The text gratuitously advised African cotton
producers, who have undisputed comparative advantage in this sector,
to ‘diversify’ out of cotton in order to accommodate
the rich and heavily subsidized farmers of EU and the US.
In as
much as consideration of this and many other issues on the Cancun
agenda are now put on hold, there is real concern among many in
Africa that solutions to their problems have been deferred, if not
put off for a long time. In the process to and at Cancun, the overriding
consideration guiding the deliberations in the African and the ACP
groups was the desire to have a positive outcome that would have
been palatable to their domestic constituencies. At the same time
it was repeatedly stated by Minister after Minister in several ACP
meetings that it would be better to have no agreement than to have
a poor one and forced to re-visit the mistakes of the Uruguay Round
and Doha.
Nowhere
was the sense of being marginalized and let down greater than with
respect to the Chairman's text that dealt with the four Singapore
issues. (Job/150/Rev.2 Paras 14-17). Ostensibly prepared under the
name of the Chairman of the Conference, in reality it was the handiwork
of the Canadian Minister Pettigrew (designated as a Facilitator
for the Singapore issues) and his cohorts in the WTO secretariat.
Not only did the text completely ignore the views of a strong majority
of WTO’s membership, but also worse, it linked progress on
issues critical to their livelihood (agriculture and non-agriculture
market access (NAMA)) to Singapore issues, which are of only marginal
concern to the EU’s businesses and public.
The language
for the linkage could not have been clearer: "...modalities
that will allow negotiations on a multilateral investment framework
to start shall be adopted by the General Council no later than [date]
Footnote 1." The footnote in question states “The date
will COINCIDE (emphasis added) with the date for agreeing on modalities
on agriculture and NAMA."
Whilst
the reaction of African delegations (and most of the other developing
countries) were of outrage, the question remains: how could the
Chairman of the Conference and the Canadian Minister, as the Facilitator
for the Singapore issues, have been so mislead or so misread the
sentiments of the overwhelming majority of WTO’s membership
not just on the Singapore issues but also on agriculture, NAMA and
several other issues?
The breathtaking
presumption underlying this text was perhaps the proverbial straw
that broke the camel’s back. It galvanized many in the developing
countries, leading the Minister of Malaysia to write on the afternoon
of the 13 September that “Malaysia cannot support any text
to imply the commencement of negotiations on modalities. Malaysia’s
position is non-negotiable regardless of any move or developments
in the other issues being discussed in the Cancun Ministerial.”
Against this clear statement of an absence of consensus on the one
hand and the alacrity with which the EU (in the Green Room on Sunday)
was ready to jettison at least three of the Singapore issues on
the other, the question still remains: why did the EU, the WTO secretariat
and Pettigrew continue with the strategy of brinkmanship?
The answer
perhaps lies in the culture of hubris, secrecy and denial that characterizes
the methods of work in the WTO and its secretariat. How else could
one explain the arrogant denial of the carefully crafted Doha Ministerial
text on Singapore issues and the need for an explicit consensus
to launch the negotiations?
It was
left to the Chairman of the Conference to remind the Ministers present
in Cancun (at one of the Green Room meetings) that it was indeed
they who had decided in Doha that negotiations will take place after
"the Fifth Session of the Ministerial Conference on the basis
of a decision to be taken, by explicit consensus, at that Session
(i.e. at Cancun) on modalities of negotiations".
The carefully
concocted Chairman's text at Cancun was designed to circumvent the
Doha mandate and decisions, but was so palpable that delegations
saw through it. The extent to which the WTO secretariat went overboard
in drafting Para 14 on Investment is further indicated by its egregious
effort to extend the scope of “... a single undertaking"
(Doha, Para 47) by elevating the concept to the status of a legal
norm and unilaterally christening it as "the Single Undertaking"
(Job 150 Rev/2, Para 14, bullet two).
If the
progenitors of this mischief have once again been exposed as unbiased
advocates of the majors, is it perhaps not opportune for member
states to take the WTO’s management to task and hold it, at
least partly accountable for the denouement in Cancun? Just as lessons
will continue to be drawn from the successes and failures at Cancun,
so will finger pointing and accusations. It is important therefore
that African and ACP countries perspectives about Cancun are documented
before the current hysteria directed at NGOs, among others, (by,
for example, The Economist: Cancun’s Charming Outcome, 20
September 2003) becomes received wisdom.
From SEATINI’s vantage point, several developments stand out
above others.
First, unity, cohesiveness and professionalism were the hallmark
of deliberations in the African and the ACP groups. Several of the
Groups constituents were also active and influential participants
in the Groups of 22 and 33 on agriculture. The unity was sustained
throughout the Conference, despite reports of special deals and
offers to break the cohesiveness of the African Group.
Secondly, the Group's deliberations were characterized by a great
deal of transparency and inclusiveness: those in the ACP Group invited
to participate in the Green Room - both the mini- Green Room of
13/14 September and the larger Green Room of 14 September - provided
detailed briefings to the ACP Group throughout the Conference. Kenya's
Minister participated in both, skillfully defending the position
of the African Group adopted by their Heads of States in Maputo
earlier this summer.
Third, was the perception among the various Chairmen of their respective
roles in the Green Room? All of them - the Chairman of the African
Union, (Mauritius), the Chairman of the LDCs (Bangladesh) and the
Chairman of the ACP (Botswana) acknowledged that their presence
in smaller and selective meetings such as the Green Room on 14 September
was in an ex-officio capacity and as such it was incumbent upon
them to take positions and obtain instructions on the basis of the
deliberations of the entire Group. Accordingly, it was clearly understood
that any decisions to be taken in the Green Room were on an ad referendum
basis, subject to deliberations and approval (or otherwise) by the
whole Group.
This
modality in the conduct of their work represents, in many ways,
among the more positive outcomes of Cancun. It permitted many smaller
delegations (particularly from the Caribbean and the Pacific islands)
to participate and contribute to the deliberations. This gave greater
credibility and voice to their spokesmen in the Green Room. It also
set a much higher standard of inclusiveness and democracy than is
characteristic of WTOs practices and procedures.
If this
working procedure is regularized in all future WTO Ministerial and
Senior officials meetings, (it is after all, normal practice in
the deliberations of the UN and indeed of the EU/OECD with its own
consultation procedures) the majors and the WTO secretariat will
no longer be able to ignore the deliberations and views of the majority
with impunity.
Fourth,
by organizing the conduct of their work in the most transparent
and democratic manner, the African Union and the ACP Groups have
sent a wider message: the credibility and legitimacy of the multilateral
system will be safeguarded only if it is inclusive and participatory.
If these procedures result in ‘unwieldy’ or even ‘UN’
type of meetings and decision-making, that is surely a small price
to pay for ensuring the long term survival of the multilateral trading
system.
Finally,
beyond Cancun, there are important tasks ahead, for the civil society,
for developing country Governments and for national Parliamentarians.
The latter played a critical role in Cancun, not the least of which
was in providing a bridge between NGOs and Governments and between
Southern and Northern legislators. Their continued involvement in
trade negotiations-including regional trade negotiations-represents
a major and welcome departure in the reach of their activities.
Among
the immediate tasks include first, safeguarding the positives from
Cancun. One such positive is the almost certain demise of the Singapore
issues from WTO’s agenda. Whilst this nearly came to pass
in Cancun, it will require vigilance to ensure that the issues do
not metamorphose under some other guise, such as a refurbished TRIMs.
In as much as EU was prepared to dump at least three of the four
Singapore issues from the WTO’s work programme, it is unlikely
that it can now come back and claim any standing whatsoever for
these discredited shibboleths.
Second,
the forced evacuation of the Singapore issues from WTO and the Doha
work programme will now help focus attention on issues of priority
concerns to Africa: agriculture, NAMA, TRIPs and S&D. Third,
is the emergence of G-33 focusing on agricultural problems of smaller
producers seeking special measures to safeguards their rural sectors
and food security. African civil society must ensure that their
own work programmes now complement the efforts of G-33 and of G-21.
Fourth,
the high standards for inclusiveness and democracy set by the African
Group in particular, must be taken as the yardstick for reform of
the WTO’s methods of work. In particular, the practices of
arbitrarily forwarding non-agreed texts in the name of Chairman,
of appointing so-called Facilitators without any consultation, of
convening Green Rooms and mini-Ministerial (and then denying their
existence and activities) and conducting the work of the Conference
without any agreed rules of procedure must stop. Likewise, the practice
of convening WTO Ministerial meetings outside Geneva, the permanent
headquarters of WTO, must also be brought to an end. Meetings outside
Geneva are excessively costly, generally disadvantageous for smaller
countries (who have to grapple without offices, staff, equipment
and resources) and are subject to pressures from host country, seeking
‘success’, often at any cost, as in Doha. Civil society
must be prepared to advise their Governments that efforts by Hong
Kong (China) to host the next Ministerial meeting must be politely
declined on the grounds that they are far too costly and puts them
at a disadvantage vis-à-vis developed countries. Moreover,
the fact that Mr. Stuart Harbinson, (presently with the WTO secretariat
but who was Hong Kong’s Ambassador and Chairman of the General
Council preceding Doha) is responsible for this initiative must
serve as a warning to developing countries about the hidden agenda
behind moves to host the next meeting in Hong Kong (China).
Fifth,
the civil society appears to have come of age in Cancun. If it was
barricaded and an outsider in Seattle, in Cancun, it was also barricaded
but was part of the process, providing advice and analysis to both
Northern and Southern delegations. They are now seen as a challenge
to international secretariats (both of the WTO and the UN system)
who were expected to help developing countries, in particular with
technical support and objective analysis but have over time been
found by these countries repeatedly to be either misleading in their
advice or failing to provide useful analysis. This has resulted
in developing countries, particularly the smaller ones, to look
to public interest civil society groups for help. Many of the NGOs,
in the North and the South, are also now more equipped technically
and in terms of political development economy, to undertake analysis
and implications of drafts and provide the hard-pressed and smaller
developing country delegations with knowledge-based advice. The
international secretariats, and some of their top officials, now
seem to be uncomfortable with this, and there is a campaign of misinformation
against civil society groups. But international secretariats have
to blame themselves for this state of affairs that by and large
their advice is seen as biased in favor of the majors. Although
an important development and much commented upon, importance of
the civil society cannot and must not be exaggerated.
Finally,
a major challenge for the civil society lies ahead in supporting
African and ACP counties deal with the forthcoming Cotonou negotiations.
The challenges and efforts required in addressing these may well
dwarf those of confronting the WTO. It will require shifting focus
and mobilizing knowledge and expertise in new areas, at least for
some civil society groups, including SEATINI.
*Chandrakant Patel, a national of Uganda, represents SEATINI
in Geneva and was in Cancun with the Uganda Delegation.
top __________________________________
No deal is better than a bad deal
Percy Makombe
At the recently ended 5th
ministerial World Trade Organisation (WTO) meeting in Cancun (10
-14 September), Mexico, there was agreement by the developing countries
that “no deal was better than a bad deal.” Commenting
on the revised draft text, Antigua and Barbuda Minister, Sir Ronald
Sanders summarized the feelings of most developing countries when
he said: “My government has a duty to care for its people.
Were we to accept this document we would deserve our people’s
condemnation. For we would not only have gained no relief for them,
we would have condemned them to a life of perpetual underdevelopment.
And that my delegation will not do. I have to advise that this draft
does not enjoy the support of my government.”
The draft text was described
by NGOs and social movements as “outrageous and offensive”.
While sidelining the views of the majority of WTO members, it gave
prominence to the positions of rich countries and corporate interests.
For instance on the contentious Singapore issues, the text proposed
the start of negotiations directly on trade facilitation and government
procurement and implied the beginning of slow negotiations on investment
and competition. This was despite the fact that 80 countries had
explicitly said no to new issues. Previous language indicating developing
countries’ objections had mysteriously disappeared raising
the question of : “Who wrote the text?”
It was apparent that the
EU and the US while pushing their own agenda of WTO expansion, had
completely ignored development related issues including special
and differential treatment (recognition and acceptance that developing
countries need a separate set of rules from developed nations because
of structural differences). On Agriculture the text still allowed
developed countries to maintain their protectionism – dumping
their subsidized produce on African economies while demanding that
developing countries bring down their tariffs. Proposals by Benin,
Burkina Faso, Chad and Mali for the elimination of subsidies on
cotton fell on deaf ears. The EU and US seemed to be saying negotiate
on our terms or not at all. This was captured in the arrogance of
EU Agriculture Commissioner, Franz Fischler, who proclaimed: “Developing
countries are asking for the moon. If they want to continue in their
space orbit, they will not get the moon and the stars, but rather
empty hands.”
It was therefore not surprising
that the revised text was subjected to attacks by the developing
countries, leading Conference chairperson, Mexican Trade Minister
Luis Ernesto Derbez to say that it may not be possible to reach
an agreement before the Conference ends. As the text was brought
under sharp focus, meetings lasting from 7pm to 1am were convened
in a bid to coerce the developing countries to accept the text.
The all-night negotiations and steamroller tactics from the EU and
US failed to garner acceptance for the battered text.
Adriano Campolina Soares,
head of ActionAid’s international campaign commented that:
“The EU and US leave Cancun in shame, exposed as cheap conmen.
The rich countries have only looked after their own interests and
clearly never had any intention of offering anything of real benefit
to developing countries. If the WTO can do no better than this,
developing countries will simply question why we need it at all.”
At the heart of Soares comment is the legitimacy crisis faced by
the WTO. Questions have been raised about the lack of transparency
and democracy in the WTO, and these questions still remain if what
happened in Cancun is anything to by. It is still a mystery who
writes and produces draft texts given that the views of the majority
are not reflected.
Cancun demonstrated that
there is strength in numbers. While NGOs were demonstrating outside
the convention hall, people’s movements were marching in the
city center. The African Union, Least Developed Countries, the African
Caribbean and Pacific countries were holding press conferences reiterating
that there would be no movement until there was explicit consensus
on modalities. Led by Brazil, China, India and South Africa the
Group of 21 helped the weak countries to turn the tide against the
bullies. The message was clear – Our World Is Not For Sale.
The temptation after the
success of Cancun is to sit back and have never-ending celebration
parties, but this would be a gross betrayal of the struggle. The
struggle has only just begun. There is going to be a serious backlash
as the EU and US seek to punish those countries considered to have
been too vocal in Cancun. Added to that the EU and US will prioritise
bilateral trade deals. We must already have begun campaigns against
Cotonou and AGOA. These trade arrangements will try to get through
the backdoor what was rejected in Cancun. What is demanded at Cotonou
is more than what is demanded at the WTO. We need not abandon the
campaign against WTO. For now the whole WTO agenda has been referred
back to Geneva, the position should still be that: no to new issues.
All four Singapore issues must be dumped not just two of them as
is being suggested.
As the Africa Trade Network
observed: “The collapse of this Ministerial, following from
that of Seattle for similar reasons, should serve notice to the
rich and powerful countries of the international trade system that
the time is running out for their imposition of their narrow interests
on the rest of the world. It should signal the beginning of a new
way of interaction in international affairs of genuine and mutual
respect.”
Ultimately, the question is: who is best suited to represent the
developing countries’ interests if not the developing countries
themselves?
*Percy Makombe is the Assistant Editor of the Bulletin.
top _______________________________
Vijay Makhan speaks out on WTO
Vijay Makhan is the outgoing
African Union Commissioner for Trade, Industry and Economic Affairs.
In an interview with the Integrated Regional Information Network
(IRIN), just days after returning from the collapsed trade talks
in Cancun, Mexico where he led the AU mission he argues that rich
nations have let down Africa once again despite their repeated promises
and he calls for a radical overhaul of the World Trade Organization
(WTO).
Question:
How do you feel regarding the events in Cancun?
A: To say the least, a bit
disappointed at the way our partners approached the entire negotiations
though we kept ourselves open as the African union to dialogue with
the US, EU and Japan. In fact, they all solicited meetings with
the AU which goes to show the AU member states have a role to play
in these negotiations. So we met with the US trade representative,
Ambassador Robert Zoellick, and also with Pascal Lamy [from the
EU] on a couple of occasions. We made known our positions and so
everybody knew the African position. But what disturbed us was that
it was not taken onboard, so to say. I have my own feeling that
all the facilitation was a question of formality rather than to
inject anything into the final text.
Q: So you
are saying no one was taking Africa’s concern seriously?
A: Well, yes a bit. When
you look at the final conclusion or text coming out from the chairman,
that text had left the position expressed by Africa on many of the
issues, to the side. And that really went to prove that the Cancun
process was more geared towards the developed countries' concerns
yet again as opposed to the concerns of the developing countries.
On top of that, bearing in mind that this round of negotiations
is called a development round, it has to take on board the concerns
and preoccupations, the expectations, the aspirations of the developing
countries. This is what we went to Cancun for but there was no movement.
Q: So what
did you do?
A: We met with all these
people, we kept on telling them ..., but what we did as an African
Union is form a strategic alliance with the group of least developed
countries - since already in Africa you have so many of them - and
also with the African and Caribbean, Pacific countries, and I think
this demonstrated the common idea of purpose of these three groups.
People started calling them the group of 90 because they formed
90 countries out of 148. I was asked a cynical question what percentage
of trade these 90 countries represent. That is not the issue. The
issue is not about the percentage of trade the issue is about all
those poor people who live in these countries that make up the bulk
of their populations.
And the international community
keeps on spending resources and energy to bring together mega conferences,
to organize mega conferences to address the issues of poverty, poverty
eradication, education for all, all these social issues by a certain
cut-off date, 2015, and yet this is an opportunity that is being
given to the international community to really take concrete action
to meeting those objectives. Yet what we find is hardly any of those
were onboard.
Q: What
was the problem as you see it?
A: The problem was there
was an insistence by the development partners to address new issues.
Again the Singapore issues [Four issues that are: How countries
treat foreign investors, Standards for anti-monopoly and cartel
laws, Greater transparency in government purchasing, which might
help foreign companies win public sector business, and Trade facilitation
- making things like customs procedures simpler. Developing countries
are concerned especially about investment rules, because many want
to retain control over their own key industrial sectors] were brought
up. All the time the Singapore issues [came up] while we were discussing
issues about market access and agriculture, things were being cooked
with respect to the Singapore issues and we are not ready - we have
said that time and time again.
Q: So why
do you think the talks broke up?
A: We are blaming the entire
system. They [the developed nations] did not take on board what
we wanted and these were very minimal things. There was no progress
made on issues like market access, the issue of tariffs. We cannot
play the same kind of games because the playing field is simply
not level. And yet people expect us to commit more than the others
are prepared to commit. On agriculture there was practically hardly
any movement. We should not be forced into giving up our position.
While we were discussing these there was an insistence, a kind of
give and take situation where Singapore issues were going to be
placed on the table. There was an insistence and we could not accept
that. We simply do not have the capacity to do this.
Q: Given
your view do you think the WTO as an organization is useful or important
to Africa?
A: If the trend carries on
this way I think there will have to be a rethink of the workings
or non-workings of the WTO. We simply have to look at the way things
are working. You can’t blame the secretariat because this
is a member-driven process. It is the member states that take the
decisions. The Secretary-General does what the member states expect
him to do, of course; he facilitates issues. So maybe there is need
to do much more in terms how to rationalize that
organization. We are not living in a jungle so therefore we are
respectable people, we are supposed to play the rules of the game,
but the rules have to be the same for everybody. The imbalances
that exist in the rules will have to be addressed and these have
not been touched on at all. Our plate is still full with issues
that have not been resolved.
Q: And
if things don’t change what should Africa do?
A: Well Africa will have
to take a political decision, whether it is worthwhile to stay in
an organization that is not proving its worth. Look at the cotton
producers. We managed to put that item on the agenda and everybody
thought just by putting it on the agenda we would be satisfied.
No. We want the issue to be addressed. It is the solution to that
problem that we want, not just simply someone to come and talk about
cotton and nothing is done. It is not on. I am wondering whether
it is now a case of getting together the larger developing countries,
like Brazil, India, China, South Africa, etc [...] to try and become
a pressure group.
Q: What
does the failure of talks in Cancun mean for the poor of Africa?
A: Cancun did not deliver.
Cancun did not deliver on the promises that are taken on the Millennium
Development Goals, on the way to eradicate poverty, give us more
access for our products which would raise the living standards for
the people of Africa, the peasants, the farmers. No such thing happened.
The subsidy issue was not even addressed. In a world where people
are saying that Africa is a scar on the conscience, to quote Tony
Blair, a scar on the conscience of the world, and yet when you get
a chance to try and heal that scar nothing is done. Nothing is being
done to address that.
Q: You
think pledges by developed countries to help the poor are mere rhetoric?
A: It is rhetoric. Yes we
have to do this, we have to do that, for me so far - and Cancun
has proven it again - it is rhetoric. Now what is going to happen
in the next 14 months, I start having doubts about it because all
these now will have to be negotiated in Geneva. This round is supposed
to come to an end in 2004, yet when we have met and reviewed the
process and what goals have been achieved, it's nothing.
Q: So what
should the AU do now?
A: The AU will have to keep
on pushing its position forward and keep that alliance, that historical
alliance that came out of Cancun alive. And I have told our office
in Geneva that they must try and work in tandem with the African,
Caribbean and Pacific countries as well as the least developed countries.
This Item is Delivered to the "Africa-English" Service
of the UN's IRIN humanitarian information unit, but may not necessarily
reflect the views of the United Nations. For further information,
free subscriptions, or to change your keywords, contact e-mail:
Irin@ocha.unon.org or Web: http://www.irinnews.org . If you re-print,
copy, archive or re-post this item, please retain this credit and
disclaimer. Reposting by commercial sites requires written IRIN
permission.
top __________________________________
Editorial:
A New Road Map for the WTO
There will be many who, after
Cancun, would be clamouring for the demise of the World Trade Organisation.
And although this editorial argues otherwise, there are good reasons
why the WTO should go, if things continue the way they have been
ever since it came into existence. The WTO’s wished death
has been the clarion call of many in the global civil society movement,
who see in it Capitalism’s worst abomination, the others being
the World Bank and the IMF. To this trinity goes the dubious distinction
of lording over the developing countries over the last now fifty
years and more. Rhetoric notwithstanding, they are the real authors
of strategies and practices that have kept vast numbers of people
in the South poor whilst a tiny minority in the North is accumulating
wealth to shameful levels.
To these voices is now added
the voice of those in the world of commercial diplomacy who, soberly
and patiently, have been trying their best to work the system. Among
these belong the trade negotiators of the developing countries based
in Geneva, some international experts who have seen through the
hypocrisy and double standards of the WTO but kept on giving their
advice to the developing countries, and a large group of people
in the civil society movement who have hoped against hope that rationality
and good sense will somehow prevail in this organisation. Some of
the frustrations of these groups of sober and generally restrained
voices are reflected in the articles carried in this issue of the
Bulletin. One of them, Vijay Makhan, is the outgoing African Union
Commissioner for Trade, Industry and Economic Affairs. Asked what
Africa should do if things do not change, Makhan said Africa may
have to reconsider “whether it is worthwhile to stay in an
organization that is not proving its worth.”
And that, after nearly a
decade of WTO (1994-2003), must be the verdict of history. The WTO
has not “proved its worth” as far as the developing
countries (DCs) are concerned. On the contrary, the DCs have been
pushed to the brink. Cancun has come at the end of a long and painful
process in which reasonable and fair demands on the part of the
developing countries have been systematically and callously ignored
by the big players and the WTO Secretariat until the inevitable
happened. The developing countries could no longer put up with this
chicanery and perfidy (not strong words, given the context) on the
part of the industrialised countries (ICs). Cancun was a rebellion
of the DCs against the ICs.
So what now? How do we move
forward? The tragedy of the WTO is that it has lost credibility
and legitimacy not only in the eyes of the developing countries,
but also in those of all thinking people in the North who believe
in fair and honest trade. What is even sadder is the fact that the
WTO’s highest officials – the Chairman of the General
Council and the Director General – are both guilty of riding
roughshod over the sensibilities of the developing countries. They
allowed themselves to be pushed around by the big powers, and thought
they could get away with this in Cancun the way their predecessors
did in Doha. Well, they did not. The DCs were driven to the edge
by the brinkmanship diplomacy of the Secretariat of the WTO, no
less than by that of the quad countries – namely, the USA,
the EU, Japan and Canada.
Thus the very leaders who
should put the WTO back on the tracks – the chairman of the
GC and the DG – are now lame ducks. They cannot hold their
necks up and guide the negotiations as honest brokers. One irony
of this is that the next Ministerial is supposed to take place in
Hong Kong (China), the home of the Chairman of the GC. He carries
around his neck a bag of shame from Cancun. He cannot possibly provide
the kind of leadership that is needed in Hong Kong. If the DG and
the GC Chairman were responsible officials in a domestic (national)
context, then political decency and propriety would have required
them to resign their positions. Alas! This is not likely to happen
in the WTO. The WTO must plod along with them. The imagery of two
lame ducks pulling the WTO cart up the Hong Kong hill should excite
the imagination of a skilled cartoonist.
Perhaps time has come, as
suggested in the article by Patel, that the WTO no longer goes to
exotic places for its Ministerials. Let all negotiations take place
in Geneva itself. What is so secretive about the WTO that it must
conspiratorially run to remote places like Doha and Cancun? If the
objective is to bring the smaller developing countries to inaccessible
corners of the world - far from the maddening crowds! – where
they can be subjected to humiliating pressure, then Cancun has shown
that this objective has deluded the conspirators. The Seattle train
was stopped at least partly by thousands of sheep lying on its tracks,
and the locomotive could not move. But Cancun train could not move
because the driver himself stopped the locomotive when he saw that
the third class passengers had revolted against the nobility riding
in the luxury first class compartments. This happened even when
the nobility gratuitously (sic!) offered to the Third Estate pieces
of cake in the form of two (or three) of the Singapore issues. Imagine
the chagrin of the nobility when the riff-raff refused to accept
the (gratuitous) offering! Cancun was a rebellion of the Third Estate.
So places like Cancun and Doha can no longer provide the refuge
for the conspirators of the WTO. There is nowhere to hide; so they
may as well have the negotiations openly in Geneva. This is a serious
suggestion, and the developing countries must put it forward as
one of their proposals before the GC Chairman and the DG call the
mandated meeting before 15 December 2003.
By the same token the Mini-Ministerials
must go. They are highly undemocratic and secretive, and they played
a significant role in undermining the trust between the WTO’s
more powerful members and the smaller ones that are excluded from
these Mini-Ministerials. To be sure, there is the problem of decision-making
in an unwieldy body of 148 members. But the answer to this is not
to hide in the nooks and cracks of the world in an exclusive, conspiratorial
manner, and then expect decisions taken there to be miraculously
accepted by the excluded. And who says that the WTO’s decisions
are more significant for the subsidised 200,000 cotton farmers of
the United States than they are to the two million cotton peasant
farmers of Uganda? Why should Idaho or South Dakota (or wherever
they grow cotton in America) be represented in the Mini-Ministerials
but not Uganda or Mali?
Having said all this, SEATINI
believes that the WTO should be preserved. And the reason is not
the “threat” by the industrialised countries that they
will now put the developing countries under even greater pressure
under bilaterals and regionals, such as Cotonou, AGOA and the Free
Trade Area of the Americas. They are doing that in any case. The
WTO was in no way an alternative to Cotonou or AGOA or FTAA. In
fact, the WTO was an “add on” on top of the bilaterals
and the regionals. The industrialised countries were having it both
ways – at the WTO as well as in the bilaterals and regionally.
What had become indefensible
about the WTO is that the big players refused to play by the very
rules they created at Marrakesh. The WTO was supposed to be a rule-based
and member-driven organisation. Instead it became a Chairman-driven
organisation, run at the behest of a self-selected coterie of states
that systematically excluded the bulk of the members from democratic
decision-making. That is where the problem began. The WTO put a
hierarchy where the privileged farmers of Bordeaux and South Dakota
would have a greater voice than the impoverished peasants of Mali
and Mexico. The WTO has become an unjust society where the rich
are protected at the cost of the poor. The world needs a multilateralised
trading system, yes, but it must be one where the human life of
the poor in Uganda or the Philippines has the same value as that
of the rich in France or the US of A. If this basic human principle
is not acknowledged, then yes, the WTO must go.top
Yash Tandon
Editor and Director, SEATINI
|