The new geopolitics of trade and the collapse of the mini-ministerial at the WTO
By Jet Hermida on Aug 26, 2008 in Agricultural Researches, Agriculture and Globalization, News Clippings
This article from IGTN suggests that the recent collapse of the WTO mini-ministerial, July 2008, reflects the new geopolitics of the global economy. The emerging economies are approaching trade issues and negotiations differently. Particularly they place more emphasis on supporting women employed in agriculture. There is new conviction among negotiators that poverty and livelihood issues cannot be left to the market to be regulated. These concerns contributed to the collapse alongside the Special Safeguard Mechanism (SSM) issues.
The paper emphasises that the political value of technical issues should not be ignored. Reasons for this and for why the SSM was not the only reason for the collapse include:
- import surges of subsidised products could displace millions of people, giving the SSM major political value
- the G33, the G7 and the G20 could not find a common position in discussions on the SSM
- cotton, a highly politically contentious issue, was due to be discussed after the SSM and was likely to have caused problems
- agricultural market access discussions reflected a political choice that links growth to market access and ‘offensive interests’
In conclusion IGTN note:
- the context of the Uruguay Round no longer exists as the emerging economies now have a voice
- there may be increasing use of the Dispute Settlement Body. Brazil is currently launching a dispute on cotton subsidies
- Members can no longer ignore the new geo-politics of the world economy and need to face the challenges of a changing world
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