What happened in New Delhi? Any change in the balance of forces?
Last Week met in New Delhi, the trade and foreign affairs ministers of 36 countries. Originally
presented as a G20 meeting, the meeting also brought together the coordinators of most groups that
negotiate within WTO. The results of this meeting are not very clear.
No meaningful steps but developing countries feel “cornered”
The news agency Reuters spoke of the “relaunch” of the Doha Round because developing countries
(ACP, least developing countries, small and vulnerable economies, CARICOM, etc.) have joined the
G33 position represented by Indonesia and the G20 led by Brazil and China to accept the proposal in
December 2008 as a basis for discussion. Strangled by the crisis, and with no resources to mitigate its
effects (unlike the G20), they cling to the only development model they know. As Minister of Foreign
Affairs of Mauritius said "our economies are dependent on trade for their survival”. This is why these
countries have said in New Delhi that they see in the conclusion of the Doha Round a solution to
reinvigorate their economies.
On the other hand, the impressions of many delegates are rather that “nothing has happened.” The
general feeling is that India has organized this meeting to stop being the bad boy of the negotiations.
She expected advances in services from the U.S. and Europe. But as they are struggling with their
economic recession, they can not make any commitments in services. Developed countries intend
to overcome the crisis by relying on the opening of developing countries markets of and vice versa!
Therefore, luckily, there can’t be any move forward. Besides this, the usual points of disagreement (eg
safeguards mechanisms in case of outbreak of imports) have not been discussed.
The United States are not leading
While most parties agree to take the proposal of December 2008 as a basis for discussion (and in New Delhi the countries most affected by the crisis joiged that postion), the United States
tended to stress that this December draft was not “sacrosanct” document. In New Delhi, they have
tried to obtain market openings for different crops (soybean, rice, maize and cotton), but did not
provide any special offer in exchange.
Regarding the U.S. administration, Michael Punke has been proposed by Obama to become the new
U.S. ambassador to the WTO. His nomination must still be approved by the U.S. Senate, but would fill
a key slot on Obama’s trade team. (Obama still has to nominate the head of agricultural negotiations).
Beyond these practical issues, the basic problem is the ambivalence of the U.S. policy. As a candidate,
Barack Obama has stepped on a slim rope between protectionism and free market economy. As a
candidate, Barack Obama walked a fine line between protectionism and free-market ideology. Yet he
hasn’t proceeded with free-trade agreements in the works with South Korea, Panama and Colombia
and has been largely silent on Canadian and Mexican complaints of protectionism. Things are certainly
not ripe as Ron Kirk’s (the new US Trade Representative) was to publish a retraction after announcing
too fast than Obama would explain its trade policy at the summit of Pittsburgh in late September.
Catherine Ashton, (European Union Trade commissioner) herself recognized the difficulties faced at
home by Ron Kirk. “We all know Ron has very little domestic lobby support for the Doha round,’ she
said. ‘There is a sense in which this belonged to the previous administration, and there is not a strong
lobby in favor.” “‘The big issues are health care and climate change. It is hard when you have big issues
domestically to add in more issues”.
Next steps for Doha Round:
– Senior Officials meeting in Geneva September 14 réunion du G20 les 24 et 25 septembre à
Pittsburgh aux Etats Unis
– G20 meeting on 24 and September 25 in Pittsburgh in the U.S.
– Informal meeting of the Group of African WTO members, at the initiative of Egypt around
October 27
Actions and mobilizations of LVC members
The members of La Via Campesina strongly mobilized against the holding of the mini ministerial New
Delhi (see article on website). According to the newspaper, New Delhi had not known a mobilization
of such a magnitude for many years (more than 50,000 protesters in the streets, peasants, workers
and students together). Disappointed by the positions taken by their ministers during these two days,
Indian members of LVC have vowed to intensify their mobilizations at the local, state and national level
until Minister Sharma and the Indian Prime Minister live up to their promises of protecting farmer’s
livelihoods.
For its part, the United States, Via Campesina North America, prepares activities for the next G20
meeting in Pittsburgh.