Trade talks end with no agreement
World Trade talks in Doha collapsed yesterday, after the US, China and India failed to agree a compromise on the kind of import tariffs poorer countries could raise on farm products.
According to a spokesman for European trade commissioner Peter Mandleson, the failure of the talks was a “massive blow to confidence in the global economy”.
Despite a marathon stint of talks, which lasted nine days, an agreement to lower the tariffs and subsidies that hinder international trade was not reached.
The meeting had been working on a compromise that would have let poorer countries sell more produce to rich ones while giving the developed world greater access to markets in developing countries.
US trade representative Susan Schwab was devastated by the breakdown, saying that the negotiators had been “so close” to a deal on Friday, before talks became fraught over the weekend.
Negotiators had been hoping for a deal on farm subsidies so the beleaguered World Trade Organisation talks could be saved. They were launched in 2001, but have repeatedly failed amid divisions between rich and poor nations.
According to Graeme Leach, chief economist at the Institute of Directors, the breakdown could lead to protectionism in the economy.
“It’s not good news. You’ve got a democratic congress pushing for protectionism and a weaker world economy. That could lead to more protectionist measures in 2009 and 2010,” he said.