THE WORLD TRADE Organization (WTO) meeting in Doha has been hailed as a triumph, both in terms of negotiations and its organization by the Qataris. But it is important to realize that when the 142 WTO members gathered in Qatar, they were only there for talks about talks.
The upshot of all the talking is that the WTO still looks like an organization more concerned with the prosperity of the wealthy First than the struggling Third World. But the balance of emphasis does appear to be shifting slowly, thanks in no small measure to the work done by the Indian government as principal spokesman for Third World interests. Whether the change of focus will be maintained throughout the new round of talks remains to be seen. There have been a few concessions by the rich countries, for instance on the production of generic pharmaceuticals, agricultural subsidies in Europe and US import curbs. However some Third World delegates viewed with alarm the scheduling for the first time of environmental, investment and competition issues on the WTO agenda.
When its comes to pollution, the developed world, principally America is the worst offender and it is in the First World that the environmental lobby is strongest. But Washington is likely to insist that any fixes that are agreed to sort out US energy profligacy and cut its high contribution to global warming, must be applied worldwide. That would be unfair to countries that are just constructing their industrial bases and cannot afford the luxury of advanced environmental technology. America grew wealthy and powerful with minimal environmental controls. Imposing such controls on developing countries will look like an attempt to hold them back economically.
Then there is investment. The First World owns most of the capital the developing world needs to build up its economies. If capital movements are further liberalized, the big buck battalions will buy up countries whose entire stock market value may be equivalent to a few hours trading in London or New York. Worse, many Third World countries still remain crippled by debt and are being forced through humiliating and economically illiterate restructuring, dictated by rule books written in Washington. And finally there is competition. Just as capital will be free to compete, so too will international business. Here in the Kingdom, one of the major concerns of WTO membership is the effect on local business of competition from international firms with infinitely more money, management and trading power. Our concerns are shared by many of the present WTO members.
Free-market economics is preached constantly in Washington and Brussels but the truth is that no single developed country actually operates really free markets. There is always some, often hardly apparent control, which will protect US or European interests. It is in this knowledge that the WTO negotiators must start their new negotiations. The rich countries must be made to adhere themselves to the principles that they wish to impose on others. If this happens, then perhaps in a few years time, the biggest gain to emerge from the trade talks will be that the WTO will finally be seen as an organization truly representing the interests of all trading nations, and not just the top players who wish to preserve their global dominance.
