Cancun debacle

Bangladesh's focus on quota- and duty-free access of LDCs' products to the markets in the developed world appeared to centre around non-agricultural products. Then the issue of movement of semi-skilled workers, which Bangladesh raised so ardently as the coordinator of the LDCs, failed to evoke the desired response.

The prime reason behind the Cancun talks failing to achieve the desired results is the tough bargain that the developed nations resorted to over farm subsidy. They backtracked on the pledge made in Doha two years ago that subsidies worth $300 billion would be slashed. Obviously, the developing countries went to Cancun hoping that the Doha pledge would be lived up to. But in realty, they had to confront some new questions raised by the rich countries.

Tap here to add The Daily Star as a trusted source

Singapore issues, as they are known, were, in a way, placing fresh burdens on the poor countries. Its contents primarily deal with the facilities and services that foreign investors should get. The treatment of foreign investors by developing countries is the leading clause of Singapore issues. Clearly, the rich countries are looking for more favourable conditions in this area. The second point relates to rules of competition. The third and fourth elements of Singapore issues are transparency in government procurement and trade facilitation. Obviously, as well as retaining control over trade, the rich countries are aiming to have sway over investment in the developing countries.

The issues were tabled when a breakthrough on reduction of farm subsidies looked like an achievable target. The situation changed completely when the world trade leaders were apparently asking for a price, through implementation of Singapore agenda, for the concessions demanded by the poor nations.

The LDCs are believed to have shown a greater degree of solidarity on the whole. But formation of the G-16 and G-21 groups suggests that their approach might have been influenced by special interests in some areas.

Senior officials of the governments will meet in Geneva on December 15 with the purpose of reducing the hiatus between rich and poor countries,

It was agreed to by the parties that new trade guidelines must be in place by January 1, 2004. But it looks like a tall order given the host of complexities, including the tendency to introduce new issues into the negotiation process.