MercoPress. South Atlantic News Agency

Group of countries call of a quick Doha round deal to combat protectionism

Lamy warns of the social impact of the current economic crisis

A group of exporting countries called this week for a deal in the World Trade Organization's long-running Doha round as the best way to tackle growing protectionism threats in the economic crisis.

At a meeting of the WTO General Council, several more countries signed up to or backed a document originally circulated on May 20 by 13 states, which sponsors hope will eventually be backed by all or nearly all the WTO 153 members.

“It's a message that we should finalize the round expeditiously because that's the best measure against protectionism,” Norway's WTO ambassador, Elin Johansen, who is currently coordinating the effort, told reporters.

The document appeared as negotiators talk of a growing improvement in the political conditions for a new trade deal, even if the economic crisis looks set to sharpen protectionist tensions as output falls and unemployment rises.

The improved political mood, as technical work continues quietly on areas from agriculture and industrial goods to fisheries and trade and environment, is also leading members to seek ways out of the repeated impasses in negotiations that have seen ministerial meetings collapse three years in succession.

The document was originally signed by Colombia, Costa Rica, Hong Kong, Malaysia, Mexico, New Zealand, Norway, Pakistan, Peru, Singapore, Switzerland, Turkey and Uruguay.

On Tuesday it drew support from Tanzania, on behalf of the least developed countries, Ukraine, Thailand, Israel and Taiwan among others, as well as members of the G20 rich and emerging countries such as the United States, Australia, Canada and South Korea, whose April summit pledges it reinforces.

Earlier WTO Director-General Pascal Lamy told the council that the global trading system would face added political strain as the economic crisis boosts protectionist pressures.

“While, according to some, we may be seeing the bottom of the economic crisis, we have not yet seen its full social impact which will inevitably trigger political pressures on the trade front,” Lamy said, according to a text of his speech.

“I believe that the ‘stress test’ of the multilateral trading system is still to come.”

The multilateral Doha talks were launched in late 2001 in the Qatari capital to help poor countries prosper through trade, but have faltered repeatedly.

The most recent stumbling block came last July when the United States sought a deal offering new opportunities for U.S. businesses but big emerging countries like India, Brazil and China insisted on protecting their farmers and young industries.

Lamy told the WTO membership on Tuesday the political atmosphere in the negotiations had improved this year, even though the economic crisis was getting worse.