20th August 2008

The world’s poor need Doha, says the World Bank

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The world’s poor need a successful conclusion to the WTO Doha Round, said the World Bank president, Robert Zoellick on 18 August.

Addressing the stalled Round, Zoellick drew his attention to the most vulnerable populations who are expected to be hit the hardest by a failure to conclude a deal on Doha. “Given the high food prices around the world and the need for poor people to lower their cost of food…it would be a mistake for the world economy and harmful for developing countries not to retrieve it,” he said.

Doha Round negotiations were brought to a halt during the WTO Mini-Ministerial meetings held in late July at the institution’s headquarters in Geneva. Despite commitments made by WTO members to conclude the Round by the end of 2008, the mid-summer talks fell far short of an agreement. Failure has been blamed heavily on the US’s objection to Indian proposals that developing nations should boost tariffs on farm products by an additional 25 percent if imports surged by 15 percent; Washington argued for extra duties only if imports rose by 40 percent.

Reconciling developing countries’ needs to protect their farmers with the demands of food exporters, without blocking normal trade is crucial, said Zoellick in his statement where he outlined ideas on how such a compromise might be reached.

“There is too much at stake to let this problem derail a global trade package that could expand economic growth and opportunity by cutting cut subsidies drastically, lowering tariffs significantly, and opening up services markets,” he said.

The statement from the Bank’s president echoes the sentiment of several WTO member countries, who in recent weeks have called for an early resumption of Doha talks.

Indian negotiators signalled a willingness to resume discussions in Dehli last week, where WTO Director General Pascal Lamy was visiting in an effort to kick-start talks yet again. This week the Director General will visit Washington, where it is hoped the US too will express an inclination to return to the negotiating table.

ICTSD reporting; “World Bank suggests limits on disputed WTO farm safeguard,” AGENCE FRANCE-PRESSE, 18 August 2008; “World Bank chief urges resumption of WTO talks,” REUTERS, 18 August 2008.