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The Doha Débâcle

5 September 2008

The Doha Débâcle

The collapse of World Trade Organization talks in July this year is a severe - perhaps fatal - setback for the Doha world trade round. Restoring momentum will be an arduous task as the breakdown is due to more than just differences between members, but is indicative of the deep institutional problems in the WTO. This is the conclusion of a Chatham House Report, After the Doha Débâcle: What Next for the Global Trade System?

The report highlights the problems facing any future talks and suggests alternatives to trade rounds.

Summary:

  • The troubled history of the Doha trade talks, which suffered their latest breakdown in July 2008, is due to more than differences between members' negotiating positions. It is a symptom of deeper institutional problems in the WTO, as it struggles to adjust to global economic change.
  • At stake are not only prospects for a further push to open world markets, but the primacy of the WTO as the maker and enforcer of the multilateral rules that underpin the international economic order.
  • Although reforms of WTO procedures may be desirable, they will not be enough to restore momentum. WTO members need also to develop a new model of leadership, define a clearer mission for the organization and pursue domestic policies that buttress its role.
  • It is unclear whether governments possess the political energy or commitment required to undertake that effort. But continued drift risks weakening the organization and could, in the longer term, undermine the integrity of the rules-based trade system.

In the conclusion, Guy de Jonquières, author of the paper, notes that Brazil has already said it is considering challenging the legality of US and EU farm subsidies in the WTO, which could potentially prompt retaliatory legal action on other issues. This could lead to further breakdowns in the Doha talks, alternatively threats to the integrity of the WTO could push members into tackling the challenges facing the WTO.

Notes to Editors:

Read After the Doha Débâcle: What Next for the Global Trade System?

Guy de Jonquières is a senior research fellow with the International Economics Programme at Chatham House.

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