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Nicola Phillips, IPEG Convenor April 2004 2 IPEG Papers in Global Political Economy no. 15, June 2004 The Politics of Collapse: Development, the WTO and the Current Round of Trade Negotiations Rorden Wilkinson∗ Department of Government, University of Manchester, UK [email protected] In September 2003 representatives of the WTO’s 146 member states1 met in Cancún to discuss progress in the so-called development Round – officially the Doha Development Agenda (DDA) after the preceding meeting which launched the negotiations. The task at hand was difficult: to relieve the deadlock plaguing the trade agenda and in so doing to agree to concessions designed to address the development concerns of the Global South, while placating the North’s desire to begin negotiations on multilateral agreements on investment, government procurement, trade facilitation and competition policy (the so-called Singapore issues). The fault line was agriculture, a notoriously awkward area. All of the usual players were in town: legions of trade officials from the industrial North; significantly fewer representatives from the more numerous countries of the South; protestors; NGOs; press; organising committee officials; on-lookers; and a heavy security presence comprising armed police, co-opted personnel and, most formidably, three Mexican warships. Yet, in spite of comfortable surroundings, relatively good pre-Conference preparation (in Geneva), the security provisions of the Mexican government, the careful management of NGOs within and away from the main conference centre,2 and the efforts of the Conference Chair (Mexican Foreign Minister Luis Ernesto Derbez) and his ‘facilitators’,3 the meeting collapsed in a hail of acrimony and was overshadowed by the suicide of a Korean farmer – Lee Hyung Hae. In the muck slinging that followed, US Trade Representative Robert Zoellick blamed the agitations, politics of protest, and ‘won’t do’ stances of ‘larger developing states’ (principally India and Brazil) for the meeting’s collapse;4 EU Trade Negotiator Pascal Lamy once again ∗ I am grateful for the financial assistance of the British Academy and for the institutional support of the Academic Council on the United Nations System (ACUNS), University of Manchester, the Watson Institute, Brown University, and Wellesley College. The paper draws upon and develops arguments first set out in ‘Crisis in Cancún’, Global Governance, 10: 2 (March 2004) and (co-authored with Amrita Narlikar) ‘Collapse at the WTO: A Cancún post-mortem’, Third World Quarterly, 25: 3 (April 2004). I am grateful to Craig Murphy and Amrita Narlikar for their comments on aspects of this paper. Versions of this paper were presented at the International Studies Association Convention, Montreal 17-20 March 2004, and the Conference on Global Social Responsibility, Wellesley College, 31 April-1 May 2004. 3 labelled the WTO a medieval organisation and warned against expectations of a quick resumption of the EU seat at the negotiating table;5 and sections of the NGO community celebrated the meeting’s significance in the wider battle to resist first world agendas and sink the WTO to the tune of ‘Can’t buy my love’. Were it not for the Conference’s ratification of the accession protocols for Cambodia and Nepal and the agreement of a six paragraph ministerial declaration attesting to ‘considerable’ progress having been made during the meeting, little of consolation would have been salvaged from Cancun.6 In the settling of dust since September, matters seem little better. Hopes that the DDA would be energised by the convening of another ministerial conference relatively soon after Cancún were dashed when it emerged in late February 2004 that the Hong Kong authorities had been unable to agree a date for a meeting, and given the lead time necessary for preparations (an estimated 9 months) the meeting would not take place this year; the most talked about developing country coalition forged in the run up to and during the meeting (the G22) remains intact (albeit with some attrition to a G20) and resolutely steadfast;7 persistent calls from the WTO Director-General, UN officials (including Kofi Annan), and trade ministers across the developed and developing world for serious negotiating to recommence have gone unanswered; US frustration at the intransigence that crystallised in Cancún has been alleviated slightly by progress made in securing bilateral trade deals;8 even Lamy’s efforts to skate over North-South, EU-US tensions in the wake of the meeting have proven unconvincing.9 Indeed, the only common ground that seems to have emerged is that the DDA will not reach a conclusion before the Round’s scheduled 1 January 2005 completion. Yet, amid all the hot air, grandstanding, commentary, protesting, proposals for ways forward, suggestions for institutional reform, and calls for disbanding the WTO that followed the meeting, a deeper and potentially more troublesome problem has been passed over. The problem arises from the answer to one simple question: what if the differences over agriculture and the so-called Singapore issues are resolved, an agreement is reached, and the negotiations are eventually concluded? This question warrants serious consideration given that the history of international trade negotiations is littered with examples that suggest that Cancún is not unique. Rather, it is merely an expected, albeit frustrating, punctuation of the negotiations. Indeed, and contrary to triumphalist declarations otherwise, it is likely that the Round will be concluded. This paper explores the likely consequences of a conclusion to the DDA. In doing so, it takes issue with two popular assertions: (i) that the collapse of the Cancún meeting represents a victory for developing states; and (ii) that the meeting’s collapse bodes ill for the completion of the DDA. The paper argues that because of the way in which the DDA was set (and in spite of the modifications likely to result from a post-Cancún rehabilitation process), the Round’s conclusion will bring about, at best, a continuation of existing inequalities of opportunity in the WTO’s legal framework and, at worst, their amplification. These inequalities of opportunity relate to the relative benefit that member states are able to derive from a utilisation of concessions made in areas of national economic significance. Moreover, developing countries – the principle losers of such an outcome – will be locked into this framework by a ‘second single undertaking’ which will offer them little room for rectification.10 The paper begins by establishing the case for a likely conclusion to the DDA. It then sets the potential completion of the DDA within the wider institutional evolution of international trade 4 regulation as a means of better understanding the consequences of concluding a further Round of negotiations. Finally, the paper offers some concluding comments on the consequences of a completed DDA as currently constructed. Why the Round will be concluded Before we can explore the potential consequences of a conclusion of the DDA it is first necessary to make the case for its likely completion. Almost as the Cancun meeting collapsed commentators were suggesting that the breakdown of a second WTO ministerial meeting in a few short years signalled the beginning of the end for the WTO (Seattle being the first). Yet accounts such as these fail to appreciate not only the qualitative difference between each meeting’s collapse, but also the nature of trade politics. Moreover, by overlooking the likelihood of a completion to the DDA these accounts fail to appreciate the consequences of such a conclusion. To better understand why the collapse of the Cancún meeting does not forewarn the failure of the development Round we need first to explore briefly the breakdown of the Seattle meeting. The collapse of the Seattle ministerial meeting in late November, early December 1999 marked the culmination of developing country frustrations with pressure from the US and EU to take the trade agenda forward at a time when outstanding issues remained (and, it should be noted, still remain) over the implementation of the results of the previous trade Round (the Uruguay Round – 1986-1994).11 Preceded by poor preparations in Geneva, a politically awkward election of a second (and, as it turned out, third) WTO Director-General, and the continued fall out from the Asian (and spreading) financial crisis, and set against the backdrop of an election year in the US, growing civil concern about the social and environmental consequences of trade liberalisation and surrounded by the first mass demonstrations to accompany a WTO meeting, it was unsurprising that the Seattle meeting ended in disarray. The failure of the Seattle conference was much more significant than the collapse of the Cancún meeting. In Seattle the stakes were higher – to launch a new trade Round; whereas in Cancún, the meeting was designed merely to review progress within an ongoing Round as well as to provide a point of focus for energising the negotiations. The point here is that the collapse in Seattle failed to launch a process, while Cancún merely punctuated an existing process. In this way, Seattle was a critical moment wherein the beginning of a new phase in the development of institutional trade regulation had the potential to emerge; whereas, Cancún is a point within an already emergent phase wherein change has the capacity to take place. It is by recognising the qualitative difference in the relationship of each meeting to the DDA that we can begin to understand why the Round is more likely to reach conclusion than not. Given that the WTO’s members are already locked into a negotiation process, precedent for the conclusion (or not) of the DDA needs to be drawn from previous meetings held during, rather than those launching, Rounds. Here, insight can be found by looking no further than the preceding Uruguay Round. Both the Montreal (1988) and Brussels (1990) meetings of what-was-then the General Agreement on Tariffs and Trade (GATT) negotiations ended in failure (where again agriculture and a desire to push the trade agenda forward figured largely);12 and both were followed by 5 commentaries attesting that the demise of the GATT was nigh.13 But rather than representing fundamental impasses in the negotiations, Montreal and Brussels signalled an emerging feature of trade negotiations: the politics of collapse. It is this feature that has come to be an intrinsic part of way in which international trade regulation under the GATT/WTO has come to evolve. It is also important to note that the Cancún and Seattle ministerial collapses differ in another important regard. Whereas the collapse of the Seattle was followed by a concerted effort to generate support among developing states for the launch of a new Round, much of which involved fixing development as the centre piece of the negotiations, such efforts are likely to be absent from the post-Cancún process. First, developing states are already locked into negotiations through their agreement to the DDA; second, and in spite of differences in the interpretation of the DDA, the postCancún commentary from the major players suggests an on-going and increasingly entrenched frustration with the actions of developing states, a stated desire to ‘reform’ WTO procedures to ensure such events are not a feature of future meetings, and a hardening of resolve among the major players to reach a conclusion.14 Further evidence that the Cancún meeting was merely an instance of the politics of collapse being repeated in the development of the WTO’s system of regulation can be found in the details of the meeting itself. In the immediate aftermath of the Cancún meeting, Conference Chair Derbez came in for considerable criticism for his decision to call the meeting to a close only part way through the final day. Previous conferences have shown that it is not unusual for vigorous negotiating to begin only in the very late stages, and for meetings to be extended as a result. In support of this, it appears that key member states had begun to move away from what appeared to be entrenched positions. The EU, whose position seemed to be set in stone, signalled it was prepared to consider ‘unbundling’ the Singapore issues. This would have left negotiations on the more contentious issues – investment and competition policy – to a later date in return for movement in other areas (largely agriculture).15 Moreover, murmurs from the US team suggested further concessions were also possible, but that to trigger these required a willingness to negotiate to be forthcoming from developing states. The absence of any movement on the latter’s part made what followed almost inevitable. But Derbez’s decision to call the conference to a close was probably not, as some have suggested, the result of his inexperience of chairing such meetings. At least one commentator has argued that Derbez’s decision was, in large measure, part of a negotiating strategy operationalised at the behest of USTR Zoellick to get ‘other players to return [to the negotiations] with more chips’.16 In pursuing this line of argument, Jagdish Bhagwati suggests that Zoellick’s frustration with developing countries during the meeting was fuelled by their refusal to respond to pre-Conference signals and movements made by the US (such as the agreement to a waiver to the TRIPs agreement for generic drugs17 and signals that the US would wind down export subsidies). Zoellick’s resolve was hardened when, in the final moments of the meeting, a walk out was staged by representatives from least-developed, African and Caribbean countries and it became inevitable that the meeting would be abandoned thereby generating pressure to reconvene afresh (and with more chips) at a latter date.18 In the longer term, it is likely that the collapse of the meeting will not be regarded jubilantly by many developing states. While the breakdown of the meeting in Cancún 6 has succeeded in underlining developing country concerns, a more permanent rupture in the negotiations would not bode so well. Although developing countries were able to stand firm in Cancún by forming large coalitions, no such comfort exists outside of the WTO. The current U.S. administration has stated that in the face of a lack of progress in the WTO, it will continue to pursue its trade goals bilaterally.19 In bilateral negotiations, developing states will find it harder to resist pressures to agree to open up markets and to lobby for reductions in U.S. subsidy regimes. Moreover, an increase in bilateral activity (especially if carefully targeted) will inevitably undermine the coherence of developing countries coalitions. Recognition of the vulnerable position in which developing countries find themselves is likely to spur them back to the negotiating table. Finally, one rather basic, but important observation needs to be made. Bargaining is at the root of the international trade regime. Trade negotiations are based on reciprocal exchange. In such situations, the outcomes are only agreed once a perceived balancing of concessions offered and received has been achieved—that is, once a bargain has been struck.20 It is inevitable, then, particularly given the number of players involved, the complexity and breadth of the issues at hand, and the political pressure to appear to be bringing a good deal back home, that negotiations will periodically breakdown. Indeed, these pressures taken in conjunction with the time and investment already exerted in WTO processes and the perceived benefits from a conclusion to the Round, suggest a deal will inevitably be struck. The potential consequences of the DDA’s conclusion: locking in inequalities of opportunity Having established that it is likely that negotiations will be restarted and the Round will be completed at some future point, we can now move on to consider the consequences of any such conclusion. It is important to note at the outset that the legal provisions that shape the liberalisation process have evolved through time in accordance with the result of a series of political bargains. This means that each new bargain is laid on top of an existing bargain (albeit that some superseding of provisions and modification at the margins occurs). It is also important to note that because of the historical circumstances in which it was fashioned the WTO’s system of regulation is built upon a series of legal agreements that better suit the economic needs of the industrial states, than their developing counterparts. More than that, it is a system of regulation that favours the economic preferences and legal customs of its founding members (‘Contracting Parties’ as they were known under the GATT). It is instructive to note, then, that as each new layer of regulation is added, whether in terms of rules and disciplines in new areas or tariff reductions and other concessions, asymmetries in WTO rules are perpetuated and, depending on the nature of any bargain struck, amplified. In this way, the WTO’s legal framework resembles a poorly-layered cake. This asymmetry cannot, however, be fully appreciated by examining the content of bargains struck at set moments in time (such as exploring the content of the DDA in isolation); it can only be comprehended when set within the context of a wider understanding of the evolution of multilateral trade regulation under the GATT/WTO. To illustrate this, a little historical recap is necessary. 7 The current system of international trade regulation over which the WTO presides builds upon the disciplines first developed under the GATT. Though itself originally intended to be a provisional agreement paving the way for a more extensive system of regulation administered by the International Trade Organization (ITO), the GATT put into place a system of international trade law based upon two principles. These principles – most favoured nation (MFN) and reciprocity – had, in various guises, been at the root of most international commercial agreements since the mid-nineteenth century, and had been utilized to great effect by the principal commercial powers. The GATT also set out to regulate a relatively small segment of commercial activity – trade in goods. More than that, the GATT’s role within a system of economic management designed to facilitate post-war reconstruction at a time when few developing states had achieved formal political independence ensured that the agreement was largely concerned with liberalising trade in those goods deemed central to that task. The narrowness of the GATT’s commercial remit was further constrained early on into its tenure. By the early to mid-1950s, the growing competitiveness of newlyindependent and other developing states in agriculture, and textiles and clothing saw the GATT’s original Contracting Parties seek to exclude these areas from the liberalization process. In the first instance this involved extracting a series of voluntary quotas limiting imports from Japan, Hong Kong, Pakistan and India. However, as such measures ran contrary to GATT rules, codification of these restrictions was sought. Codification came during the Dillon Round (1960-1) with the negotiation of the ShortTerm Agreement on Cotton Textiles. The Short-Term Agreement, in turn, evolved into the 1962 Long-Term Agreement Regarding Trade in Cotton Textiles, and subsequently the 1974 MultiFibre Agreement (MFA – of which there were four incarnations).21 At their root, these Agreements enabled industrial states to offset a decline in competitiveness in the production of textiles and clothing vis à vis their developing counterparts by putting into place a system of regulation predicated on Contracting Parties negotiating bilateral quantitative restrictions or by unilaterally imposing import constraints.22 Comparable to the way in which the MFA and its predecessors removed textiles and clothing from the purview of GATT rules, while at the same time institutionalising a culture of discrimination, was the withdrawal of agriculture as a legitimate target for liberalisation. On the insistence of first the US and then the European Economic Community (EEC), agriculture became exempt from GATT rules on domestic support systems.23 This exemption was consolidated further by the failure of discussions during the Kennedy (1964-7) and Tokyo (1973-9) Rounds designed to bring agriculture back into the fray. The consequences of these early developments had, and continue to have, important ramifications for the trade regime. First, international trade regulation was established around a set of economic and legal principles – MFN and reciprocity – familiar to its founding members, and in which they had considerable experience of utilizing. Second, the arena of commercial regulation was kept artificially small. Agricultural and textile and clothing producers in the industrial states were protected from the growing competitiveness of developing and new independent producers. Producers in industrial states were, nevertheless, able to benefit from negotiated reductions in barriers to trade in manufactured, semi-manufactured, low and high technology goods. The result was to build into the GATT’s evolutionary trajectory ‘first mover 8 advantages’ which forestalled competitive decline while at the same time facilitated expansion in new areas of industrial production.24 Efforts to redress these imbalances were few and far between, and lacking in substance. Part IV of the GATT, introduced in 1966, was lacklustre; and the special and differential provisions that were introduced thereafter were too little to be of significant economic benefit. But there were other problems. The relative lack of export earnings, coupled with fierce competition in emerging sectors, un- and underdeveloped national and local infrastructures, inadequate resources, and absences of expertise and technical knowledge among other factors prohibited developing states from diversifying their economies. Instead, they remained largely dependent on the production of raw materials, agriculture, and textiles and clothing, and benefited only from the limited preferential treatment offered by the GATT and other international agreements. By the time the GATT entered its 8th and final round of negotiations – the Uruguay Round – it had become clear that the General Agreement could no longer maintain its then current form. Pressures, on the one hand, to extend further the remit of international trade regulation and, on the other hand, to reverse the exclusion of agriculture and textiles and clothing as well as extend special and differential treatment resulted in the creation of a much larger legal framework and the establishment of an organisation – the WTO – charged with its administration. The inclusion of agreements on agriculture, and textiles and clothing came as part of a bargain that also included the introduction of rules on services (under the General Agreement on Trade in Services – GATS), on trade-related investment measures (under the Agreement on Trade Related Investment Measures – TRIMs), and on trade-related intellectual property rights (under the Agreement on Trade Related Intellectual Property Rights – TRIPs). Unsurprisingly, each of the new agreements conformed to the now standard GATT model wherein MFN and reciprocity form the core principles; and, the substance of agreements on services, intellectual property and investment measures reflected a negotiated outcome of the legal rules, norms and customs in place in the leading industrial states. More importantly, the bargain reached that concluded the Uruguay Round was to take the form of a single undertaking thereby binding all members to its content. Uruguay was not, however, a panacea. While the inclusion of agriculture, and textiles and clothing rectified existing imbalances, the introduction of new rules in services, intellectual property and investment measures extended the trade agenda further. Not only were the industrial states better suited to taking advantage of these new rules; their ability to utilize the market opportunities presented therein enabled them to develop a competitive advantage over future market entrants. The creation of the WTO had brought with it a new set of first mover advantages. By the time the WTO met to convene its Third Ministerial Meeting in Seattle significant tensions had begun to emerge. Industrial members, particularly the U.S. and the EU, had dug in their heals to forestall any unravelling of their elaborate agricultural subsidy systems and prevent the opening of markets in this area; significant problems had emerged with the implementation of Uruguay Round commitments; and pressure was growing from the U.S. and EU for a further extension in the remit of WTO rules (to include the four Singapore issues) and to launch a new Round, dubbed the 9 ‘Millennium Round’. Moreover, much consternation had emerged over persistent calls by the U.S. and EU to explore the possibility of a linkage between trade and labour standards within the WTO, as well as to expand the participation of civil society organizations.25 Cast within the run up to a U.S. presidential election, and the disruptions caused by mass demonstrations, the meeting collapsed. The tensions that had emerged in Seattle prompted a change of tack in the way in which supporters of a new trade round marketed their aim. The negotiations were to be ‘development-centred’ and to be portrayed as a ‘Work Programme’ thereby avoiding associated with the previously touted ‘Millennium Round’.26 Even so, in the run up to the Doha meeting (9-14 November 2001) it was unclear whether the ministerial conference would give its support to a new set of negotiations. However, the events of 11 September 2001, just 2 months before the meeting, cast the proceedings in a different light. Few states wished to be seen to be offering opposition in such a tender political climate. The result was the launch of the DDA. From the point of view of the developing states, agreeing to the DDA was a fundamental error. It firmly married a commitment to revisit the Uruguay Round agreements (coupled with promises to explore the relationship between trade, debt and finance, the plight of small economies, the transfer of technology, technical cooperation and capacity building, and a commitment to review and strengthen special and differential provisions) to the commencement of negotiations in investment, government procurement, trade facilitation and competition policy (and possibly a fifth e-commerce).27 Moreover, the DDA put in place a specific time frame (negotiations would commence on the Singapore issues, subject to minor clarification, after the midterm review of negotiations in Cancún) and the results are to form the basis of a second single undertaking. As a result, the way in which the DDA was crafted ensures that any movement forward on those issues of concern to the South will automatically trigger pressure for a movement forward on those important to the North. It is inevitable then that once the concerns of developing states have been seen to be recognised and concessions promised, negotiations will commence in new areas. Without a subsequent movement to the Singapore issues (and movement on all four may be staggered as a result of Cancún) there will be no formal agreement to, or any subsequent operationalisation of, any provisions that may benefit developing states. Given the situation developing states find themselves in, coupled with the broad-based acceptance of trade liberalisation as an engine for growth among their number, it is highly unlikely that they will wish not to agree in the medium term to a deal that includes the Singapore issues. Conclusion The consequences of adding a further layer onto the WTO’s existing legal framework should the DDA be concluded are significant. On the other hand, many developing states will consolidate their production of agricultural produce, textiles and clothing, and some low technology goods at a rate of profitability directly related to the rate at which agricultural subsidies and tariff barriers are wound down in the U.S., EU, and Japan among others. Little industrial diversification will occur among the poorest or smallest economies as the costs of moving away from established industries and investing in new sectors will be prohibitive. This is irrespective of any massive 10 increase in technical and other assistance. It does not, after all, make good business sense to enable competitors to develop comparative advantages in sectors in which you are competitive. The leading industrial states will nevertheless be able to benefit from any WTO movement into new areas. Not only are these new areas already of key importance to many industrial states, and insignificant to many of their developing counterparts, the consequence of their utilization will be to put in place yet more first mover advantages. The result will be a reinforcement of the comparative advantages of industrial states in a wide, indeed wider, variety of economic areas. One final point should be made. The greater the number of sectors in which an economy has, at a minimum, developed a presence, or at most, established something of a comparative advantage, the better able that economy is to weather periods of economic downturn. While the onset of recession may hurt industrial states, the pain will be exponentially greater in their developing counterparts, with the most vulnerable populations suffering worst. The real problem, should a political settlement be agreed post-Cancún, is that the vulnerability of developing states is likely to be exacerbated. The only way forward to address both this potential danger, and to remove some of the long term inertia plaguing the WTO, is to put in place a moratorium on negotiations in these new areas at least until after the conclusion of the current Round, and concentrate instead on addressing the development dimension of the DDA. The problem for the U.S., EU and remainder of the industrial world, of course, is that to do so would be politically damaging. Moreover, in the context of the way the WTO negotiating machinery works, it would be highly unlikely. But for the most vulnerable, maintaining the present course brings with it far greater risks. Notes 1 Protocols for the accession of Cambodia and Nepal we agreed in Cancún taking the total number of WTO members to 148. 2 See Rorden Wilkinson, ‘ACUNS in Cancún’, ACUNS Informational Memorandum, No. 57 (Autumn 2003), pp. 6-8. 3 The five facilitators – the so-called ‘Friends of the Chair’ – were: George Yeo Yong-Bong (agriculture – Singapore); Henry Tang Ying-yen (non-agricultural market access – Hong Kong); Mukhisa Kituyi (development – Kenya); Pierre Pettigrew (Singapore issues – Canada); and Clement Rohee (miscellaneous issues – Guyana). 4 Robert Zoellick, ‘America will not wait for the won’t do countries’, Financial Times, 22 September 2003. 5 Pascal Lamy, final press conference to the Cancún Ministerial Meeting, 14 September 2003; Jagdish Bhagwati, ‘Don’t Cry for Cancún’, Foreign Affairs, Jan/Feb 2004, 83: 1. 6 WTO, ‘Final Ministerial Statement of the Cancún Ministerial Conference’, adopted 14 September 2003 WT/MIN(03)/20 (23 September 2003). 7 See G20 Ministerial Communiqué from the 11-12 December 2003 Brasilia meeting available at: http://commerce.nic.in/wtodec2003.htm#h2; On the G22 and other coalitions in action during the Cancún meeting see Amrita Narlikar and Diana Tussie, ‘Bargain together in Cancún: developing countries and their evolving coalitions’. Available at: http://www.flacso.org.ar/areasyproyectos/areas/ri/esiei/tussie/docs/G20.pdf 8 For example, signing free trade agreements with Chile and Singapore, concluding the US-Central America Free Trade Agreement (CAFTA) and a free trade agreement with Australia, and pursuing a Middle East Free Trade Area (MEFTA) and Enterprise for ASEAN initiative as well as laying the foundations for negotiations with Panama, Colombia, Morocco and Bahrain among others. See the statement by Robert B. Zoellick, US Trade Representative, before the Committee on Ways and Means, US House of Representatives, 11 March 2004, pp. 3, 7-9. 9 Pascal Lamy, ‘Trade Crisis’, speech to the European Institute, Washington, 4 November 2003. 11 10 A single undertaking refers to the requirement that all member states accept and are bound by (albeit with lengthier implementation schedules and other minor modifications for developing countries) the results of the negotiations. The single undertaking was an innovation of the Uruguay Round which sought to move away from the ‘à la carte’ system in operation under the GATT. 11 See Rorden Wilkinson, ‘The WTO in Crisis: exploring the dimensions of institutional inertia’, Journal of World Trade, 35: 3 (June 2001). 12 John H. Jackson, The Jurisprudence of GATT and the WTO: insights on treaty law and economic relations, (Cambridge: Cambridge University Press, 2000), p. 375. 13 J. Michael Finger, ‘That old GATT magic no more casts its spell (how the Uruguay Round failed)’, Journal of World Trade, 25: 1 (February 1991), pp. 39-53. 14 Instructive in this regard is the continued importance attached by the current US administration to pursue its trade objectives multilaterally as well as regionally bilaterally See Zoellick’s statement to the Committee on Ways and Means, March 2004. 15 Lamy confirmed what had been rumoured to have been a change in the EU’s position in his final press conference to the meeting. See Pascal Lamy, ‘Final Press Conference closing the WTO 5th Ministerial Conference’ 14 September 2003, available at: http://europa.eu.int/comm/commissioners/lamy/speeches_articles/spla190_en.htm 16 Bhagwati, ‘Don’t Cry for Cancún’. 17 This relates to the 30 August 2003 decision to allow countries producing generic copies of patented pharmaceutical products under compulsory licences to export the product to ‘eligible’ importing countries (that is, least-developed members and any other members that have previously notified the Council of the TRIPs) that are experiencing a natural emergency or other circumstances of extreme urgency or in cases of public non-commercial use previously held up by US resistance. See WTO Document, ‘Implementation of paragraph 6 of the Doha Declaration on the TRIPs Agreement and Public Health’, WT/L/540 (1 September 2003). 18 Zoellick, ‘America will not wait for the won’t do countries’. 19 See Zoellick, ‘America will not wait for the won’t do countries’; also Bhagwati, ‘Don’t Cry for Cancún’. 20 See Rorden Wilkinson, Multilateralism and the World Trade Organisation, (London: Routledge, 2000), pp. 47-9, 100-114. 21 Bernard Hoekman and Michel Kostecki, The Political Economy of the World Trading System: From GATT to WTO, (Oxford: Oxford University Press, 1995), p. 207. 22 See John H. Jackson, The World Trading System: Law and Policy of International Economic Relations, (London: MIT Press, 1998), second edition, p. 207-9. 23 Tim Josling, ‘The GATT: Its Historical Role and Importance to Agricultural Policy and Trade’, in Hans J. Michelmann et al (eds.), The Political Economy of Agricultural Trade and Policy, (Boulder: Westview Press, 1990), p. 157. 24 Robert O. Keohane, Power and Governance in a Partially Globalized World, (London: Routledge, 2002), p. 253. 25 Wilkinson, ‘The WTO in Crisis’, pp. 414-417. 26 WTO, ‘Doha Ministerial Declaration’, adopted 14 November 2001 WT/MIN(01)/DEC/1 (20 November 2001). 27 See WTO, Doha Ministerial Declaration, WT/MIN(01)/DEC/1, 20 November 2001. 12
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