WTO Ministerial Can Send ‘Strong Signals’ to the World: Lamy

Director-General Pascal Lamy, in his report to the General Council on 17 November 2009, said that while the upcoming WTO Ministerial Conference would not be a negotiating session, it would be “a platform for ministers to review the functioning of this house,” including the Doha Round, and an occasion “to send a number of strong signals to the world with respect to the entire WTO waterfront of issues — from monitoring and surveillance to disputes, accessions, Aid for Trade, technical assistance and international governance”।
Thank you Mr Chairman.

Since my last report to the General Council on 20 October, I have met with the Negotiating Chairs and the General Council Chairman on a number of occasions to exchange views on the overall process and to coordinate activities so as to facilitate the work of delegations. You will all have received the organizational fax on 10 November outlining the schedule of meetings during the Senior Officials' Week. The Negotiating Chairs, the General Council Chairman and I are still fine-tuning this programme with a view to ensure predictability, inclusiveness and transparency in the context of an intensive meeting schedule. There may be a few minor changes to the overall schedule of meetings and I intend to outline these at the informal TNC on 23 November.

Before I provide you with a brief overview of the state-of-play and outlook of the negotiating groups, let me pay tribute to the Negotiating Chairs for their work and commitment. The past year has been one of modest, but nevertheless progress in all areas of negotiations, albeit of a different type. In some cases progress has meant a better understanding of positions; in some others, however, there has been tangible progress and we are about to capture this in a draft negotiating text, as is the case with trade facilitation.

Before the year ends, we still have two weeks of Senior Official engagement which need to be used to continue to move the ball forward. What is clear is that if we are to conclude this Round in 2010 as you have pledged to, we will need to take a hard look at where things stand early in the new year and map the road that would lead us to a successful result.
Vidyanand Acharya

ECONOMIC CRISIS EXPOSES FRAGILE GLOBAL FOOD SYSTEM, NEW UN REPORT SAYS

The sharp spike in hunger triggered by the global economic crisis has hit the poorest people in developing countries hardest, revealing a fragile world food system in urgent need of reform, according to a report released today by FAO and the World Food Programme (WFP).

The combination of food and economic crises has pushed the number of hungry people worldwide to historic levels — more than one billion people are undernourished, according to FAO estimates.

Nearly all the world's undernourished live in developing countries. In Asia and the Pacific, an estimated 642 million people are suffering from chronic hunger; in Sub-Saharan Africa 265 million; in Latin America and the Caribbean 53 million; in the Near East and North Africa 42 million; and in developed countries 15 million, according FAO's annual hunger report, The State of Food Insecurity, produced this year in collaboration with WFP. The report was published before World Food Day, to be celebrated on 16 October 2009.

Decade-long trend

Even before the recent crises, the number of undernourished people in the world had been increasing slowly but steadily for the past decade, the report says.

Good progress had been made in the 1980s and early 1990s in reducing chronic hunger, largely due to increased investment in agriculture following the global food crisis of the early 1970s.

But between 1995-97 and 2004-06, as official development assistance (ODA) devoted to agriculture declined substantially, the number of hungry people increased in all regions except Latin America and the Caribbean. Gains in hunger reduction were later reversed in this region as well, as a result of the food and economic crises

The rise in the number of hungry people during both periods of low prices and economic prosperity and the very sharp rises in periods of price spikes and economic downturns shows the weakness of the global food security governance system, FAO said.

"World leaders have reacted forcefully to the financial and economic crisis and succeeded in mobilizing billions of dollars in a short time period. The same strong action is needed now to combat hunger and poverty," said FAO Director-General Jacques Diouf.

"The rising number of hungry people is intolerable. We have the economic and technical means to make hunger disappear, what is missing is a stronger political will to eradicate hunger forever. Investing in agriculture in developing countries is key as a healthy agricultural sector is essential not only to overcome hunger and poverty but also to ensure overall economic growth and peace and stability in the world," he said.

"We applaud the new commitment to tackle food security, but we must act quickly. It is unacceptable in the 21st century that almost one in six of the world's population is now going hungry," added Josette Sheeran, Executive Director of WFP.

"At a time when there are more hungry people in the world than ever before, there is less food aid than we have seen in living memory. We know what is needed to meet urgent hunger needs — we just need the resources and the international commitment to do the job."

Another blow for poor households

Several factors have conspired to make the current crisis particularly devastating for poor households in developing countries.

First, the crisis is affecting large parts of the world simultaneously, reducing the scope for traditional coping mechanisms such as currency devaluation, borrowing or increased use of official development assistance or migrant remittances.

Second, the economic crisis comes on top of a food crisis that has already strained the coping strategies of the poor, hitting those most vulnerable to food insecurity when they are down. Faced with high domestic food prices, reduced incomes and employment and having already sold off assets, reduced food consumption and cut spending on essential items such as health care and education, these families risk falling deeper into destitution and the hunger-poverty trap.

Threat challange for Indian Agriculture?

Note-Please read this article(Courtsey- ICTSD) because if this happens as per study and its findings a chaotic situation will emmerge for Indian Agriculture. V Acharya

A global trade deal at the WTO would lead to significant cuts in China’s already-low agricultural tariffs, new ICTSD research shows.

As governments renew efforts to clinch a deal in the ongoing Doha Round of trade talks, the study shows that the draft accord would cut China’s maximum permitted ‘bound’ farm tariffs by around one sixth - despite current rates already being one quarter of the average world tariff level. Because China’s actual applied tariff levels are close to these bound levels, most cuts would translate directly into new market access for exporters.

”China is one of the least protected markets for agricultural products in the developing world,” notes the author of the study, Professor Tian Zhihong of the China Agricultural University.

The study shows that tariff rates would be brought down to 13 percent from an initial average of 15 percent, after accounting for gentler tariff cuts for products deemed to be ’sensitive’ and for those considered important for food security and livelihoods. With 900 million people working in agriculture, and a growing income gap between cities and the countryside, China has emphasised the need to shield key products from cuts.

”China has set the pace in promoting the liberalisation of trade among WTO Members,” argues Tian. “There is therefore relatively little room left for further substantive concessions on special products that are important for food security, farmers’ livelihoods and rural development.”

China will also benefit from clauses permitting countries that have recently joined the WTO to cut tariffs by less - a key Chinese demand after gruelling accession negotiations slashed tariffs on 95 percent of the country’s products to below 30 percent.

As urban incomes in China are over three times higher on average than those in rural areas, the government has recently shifted from taxing agriculture to supporting it. The new draft text could constrain planned spending on cotton, and, if prices are high, on wheat. However, many other payments are likely to be exempt from cuts on the basis that they cause no more than minimal trade distortion.

”WTO regulations will be important factors affecting China’s agricultural policy-making,” the author notes.

The draft text could also reduce barriers to China’s exports - primarily to developed countries, where average tariffs facing Chinese exports would be cut by about one third, from 16 percent to 11 percent. Continued EU and Japanese protection for rice - one of China’s main exports - would probably mean little market access expansion for this product, although tariffs on other key exports such as vegetables could be cut by around one third.

The US has insisted that large developing countries such as China offer more market access for their exports before a draft WTO accord can be signed. Developing countries have argued that this would affect their food security and the livelihoods of small farmers, especially while developed countries maintain extensive trade-distorting subsidies for their domestic producers.

Is Doha Conclusion possible in 2010?

Heads of state from 13 major world economies vowed last week “to seek an ambitious and balanced conclusion to the Doha Development Round in 2010,” just as trade officials at WTO headquarters in Geneva prepared to ramp up their negotiations before the organisation’s annual summer break.

But such high-level promises have been made before. The recent statement from the G8+G5 countries has been preceded by dozens of political vows for a quick end to the global trade talks, which were launched in 2001 to help developing countries prosper through trade. But after nearly eight years of slow progress and missed deadlines in the negotiations, the ongoing economic slump has made a world trade deal - a deal that the WTO’s director-general says would save the global economy more than US$ 130 billion each year - appear more pressing than ever.

The call for a push to conclude the talks emerged from a summit of the G8 countries - Canada, France, Germany, Italy, Japan, Russia, the United Kingdom and the United States - that was held in L’Aquila, Italy last week. The G8 were joined by the G5 major emerging economies - Brazil, China, India, Mexico and South Africa - for talks on the second day of the three-day summit. The declaration was signed by both groups.

But the Doha talks will not have to start from scratch. The leaders said that the negotiations should build “on the progress already made, including with regard to modalities” - the WTO’s term for the framework deals on tariff and subsidy cuts - that officials have been negotiating over the past several years. But the statement also stressed the need to enhance “the transparency and understanding of the negotiating results to date,” a nod to recent calls from Washington, which has insisted that its exporters need greater clarity on how they might be affected by a deal.

The heads of state also called on their trade ministers “to explore immediately all possible avenues for direct engagement within the WTO” and to meet in advance of the next G20 summit, which will be held in the industrial city of Pittsburgh in the US in September. India has already begun preparations to host such a meeting; the gathering is set to take place in New Delhi on 3 and 4 September (see Bridges Weekly, 8 July

Cortsey-Bridges, By Vidyanand Acharya

G 8 to wrap Doha Round?

Leaders from the G8 group of major world economies will commit to wrapping up the WTO’s Doha Round of trade talks as soon as possible, according to a draft communiqué that was seen by Reuters. Absent from that statement, however, is a timeline for the completion of the talks, a point that is being strongly pushed by the G5 group of major developing economies.

But a second draft statement that has been prepared for the G8 plus the G5 does include such a timeframe - it calls for the global trade talks to be concluded before the end of next year.

”Leaders commit to reaching an ambitious and balanced conclusion to the Doha round in 2010, consistent with its mandate, building on progress already made on modalities,” a draft of the G8+G5 statement said, Reuters reported.

The discrepancies between the two drafts are expected to be ironed out in joint talks between the two groups on Thursday.

An announcement on Doha is expected to be made official before the end of the three-day G8 summit that kicked off in L’Aquila, Italy on Wednesday. The G8 countries consist of Britain, Canada, France, Germany, Italy, Japan, Russia and the United States.

The G5 countries - emerging economies Brazil, China, Egypt, India, Mexico and South Africa - were slated to hold parallel talks on Wednesday and will join the G8 leaders for meetings on Thursday.

WTO Director-General Pascal Lamy, who is attending the summit, shied away from assessing the prospects for concluding a global trade deal, which he has long championed as a means to bolster the global economy and forestall a substantial increase in protectionist measures amid the ongoing slump.

”I probably will be able to give you a clearer answer to this question on Friday after the G8 and the G8-plus-5 discussions on trade,” Lamy said on Tuesday, Reuters reported.

Further progress toward a Doha deal could come in early September, when India is planning to host a two-day conference of trade ministers in New Delhi. The ‘mini-ministerial’ will bring together top trade envoys from a select group of 25 to 30 countries, according to a trade official with knowledge of the meeting. While the meeting’s agenda has yet to be finalised, the focus of the gathering will be the Doha Round of trade talks, which have struggled along in fits and starts for nearly eight years without reaching a conclusion. The meeting in New Delhi, set for 3 and 4 September, is intended to build momentum on Doha ahead of a summit of the G20 heads of state to be hosted by the US later that month.

Also on the agenda at this week’s summit in L’Aquila is a proposal to help the world’s hungry.

”We hope to approve an initiative for food security in the world. We will approve about $10-15 billion for all the people in the world who are suffering from hunger,” Italian premier Silvio Berlusconi told journalists on Tuesday, Reuters reported.

Washington is prepared to pledge US$3-4 billion for the plan, and has called on other countries to match that commitment, according to a draft declaration that was seen by Reuters.

NGOs have called on the leaders to prioritise agriculture and food policies that improve the position of small producers and women in their declaration on the matter.

ICTSD reporting; “G8 plus G5 agree to conclude Doha in 2010 - draft,” REUTERS, 8 July 2009; “Berlusconi hopes G-8 to pledge $10-15 billion for food security,” 7 July 2009.

Leaders from the G8 group of major world economies will commit to wrapping up the WTO’s Doha Round of trade talks as soon as possible, according to a draft communiqué that was seen by Reuters. A second draft statement prepared for the G8 plus the G5 group of major developing economies calls for the global trade talks to be concluded before the end of next year.

”Leaders commit to reaching an ambitious and balanced conclusion to the Doha round in 2010, consistent with its mandate, building on progress already made on modalities,” a draft of the G8+G5 statement said, Reuters reported.

The announcements are expected to be made official before the end of the three-day G8 summit that kicked off in L’Aquila, Italy on Wednesday. The G8 countries consist of Britain, Canada, France, Germany, Italy, Japan, Russia and the United States.

The G5 countries - emerging economies Brazil, China, Egypt, India, Mexico and South Africa - were slated to hold parallel talks on Wednesday and will join the G8 leaders for meetings on Thursday.

WTO Director-General Pascal Lamy, who is attending the summit, shied away from assessing the prospects for concluding a global trade deal, which he has long championed as a means to bolster the global economy and forestall a substantial increase in protectionist measures amid the ongoing slump.

”I probably will be able to give you a clearer answer to this question on Friday after the G8 and the G8-plus-5 discussions on trade,” Lamy said on Tuesday, Reuters reported.

Further progress toward a Doha deal could come in early September, when India is planning to host a two-day conference of trade ministers in New Delhi. The ‘mini-ministerial’ will bring together top trade envoys from a select group of 25 to 30 countries, according to a trade official with knowledge of the meeting. While the meeting’s agenda has yet to be finalised, the focus of the gathering will be the Doha Round of trade talks, which have struggled along in fits and starts for nearly eight years without reaching a conclusion. The meeting in New Delhi, set for 3 and 4 September, is intended to build momentum on Doha ahead of a summit of the G20 heads of state to be hosted by the US later that month.

Also on the agenda at this week’s summit in L’Aquila is a proposal to help the world’s hungry.

”We hope to approve an initiative for food security in the world. We will approve about $10-15 billion for all the people in the world who are suffering from hunger,” Italian premier Silvio Berlusconi told journalists on Tuesday, Reuters reported.

Washington is prepared to pledge US$3-4 billion for the plan, and has called on other countries to match that commitment, according to a draft declaration that was seen by Reuters.

NGOs have called on the leaders to prioritise agriculture and food policies that improve the position of small producers and women in their declaration on the matter.

Courtsey- ICTSD

HOLI

Wish You a Happy and Colourful HOLI

Vidyanand Acharya

POPULATION ISSUES KEY TO FIGHTING POVERTY

POPULATION ISSUES KEY TO FIGHTING POVERTY, OTHER ILLS IN ASIA, UN-BACKED FORUM AGREES

Population policy, reproductive health and gender equality remain central to reducing poverty in the Asia and the Pacific region despite recent economic growth, specialists agreed at a conference convened by United Nations agencies in Bangkok this week.

In the three-day review of progress since the Fifth Asian and Pacific Population Conference (APPC) held in Bangkok in 2002, experts concluded that its plan of Action on Population and Poverty is needed more than ever in light of the global economic crisis and its likely impact on the poor.

Hundreds of millions have been left behind despite the progress made in the fight against poverty over the past few decades, with a quarter of a million women, mostly poor, dying each year in the region as a result of failing maternal health services.

Without swift action, there is little hope of attaining the Millennium Development Goals 

Posted by Vidyanand Acharya

Services Sector in a Globalized Economy

Opening Markets for Trade in Services highlights the key challenges and opportunities for the services sector in a globalized economy. This new book — co-published by the World Trade Organization and Cambridge University Press — focuses on the unilateral action taken by countries across the world as well as the bilateral and multilateral liberalization of trade in services. It explores the challenges, motivations and achievements of the growing number of preferential trade agreements (PTAs) between countries and of the global trade negotiations within the WTO.

The publication includes studies on a wide range of sectors, such as air transport, distribution, audiovisual services, postal services, energy, finance and telecommunications, and on a variety of themes, such as cross-border trade, government procurement and the movement of natural persons. Chapters covering each of these sectors/themes review market and regulatory developments, discuss key negotiating issues and assess the liberalization already achieved by PTAs and WTO negotiations. The book also looks ahead to future opportunities and challenges.
The book also includes case studies on countries as diverse as Australia, Chile, Colombia, Costa Rica, Dominican Republic, India, Singapore, South Africa, Thailand and Uruguay. These case studies aim to shed light on the elements that have shaped bilateral and multilateral negotiations on services. What are the reasons for negotiating bilateral agreements? Why do negotiations lead to such different results? What role is played by national interests? 
Contributors to this volume include WTO staff, negotiators, academics and experts from other international organizations. A foreword has been provided by the WTO's Director-General, Pascal Lamy. (courtsy-WTO)

Posted by Vidyanand Acharya