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WTO at Hong Kong: An ill-willed consensus!

Hakim Ben Hammouda.

What was the outcome of the recent World Trade Organization Ministerial meeting, which was held in Hong Kong from the 13 to 18 December? Admittedly, the meeting did not end with a note of failure as in Cancun in 2003 or Seattle in 1999. This time the various Ministers of Trade adopted a common text. But, the outcome left a bitter taste. The statements at the end of the meeting by some ministers can confirm this. Peter Mandelson, the European Commissioner for Trade, indicated in his statement that the "results are not sufficient to speak of success. But, it was enough to say that the meeting was not a failure." Celso Amorim, the Brazilian Minister of Foreign Affairs and spokesman of the Group of the 20 which regroups the big developing countries, stressed that "the final document is modest but not insignificant."

Why the feeling of frustration and dissatisfaction, particularly by developing countries? In other words, is this agreement up to the expectation of these countries? Let us recall that developing countries have for years been demanding for a more balanced globalization process, which is the cornerstone of the Doha Round. Nevertheless, since the launch of this Cycle in 2001, a significant gap has existed between what developed countries agreed to, and their specific proposals in the negotiations. This shift was the main reason for the failure of the Cancun Conference, and for the mass rallies against the WTO by civil society and the movement for a better world.

The Hong Kong meeting was meant to come up with methods and frameworks for the negotiations. Consequently it was a significant meeting for developing countries as it guaranteed the engagement of developed countries into concrete modalities of negotiation. And in this point of view, the Conference of Hong Kong has made some progress. On the symbolic issue of cotton, which is vital for some African countries, the United States committed to ending its export subsidies by the end of 2006, and to open their market for least developed countries. The European Union promised that they will phase-out their agricultural exports subsidies by 2013.

But, in the opinion of all, this modest progress for development came at a tremendous cost. Developing countries will pay a huge price for these concessions, as they will have to open their industrial markets to international competitions. This includes liberalization of the service sector where developed countries exert a world monopoly, for example in banking and insurance. However, free movement of labour was not agreed to. Least developed countries were looking to greater access to developed-country markets. The United States limited this access to 97 % of the products so as to avoid competition from some countries in some products, like Bangladesh in textiles. This is the cause of much bitterness and melancholy. A huge price for limited concessions.

Admittedly, the discussions will continue in Geneva to finalize the Doha Round, but these negotiations must correct imbalances in global trade. Which continue to grow and is threatening to empty this Round of its commitment to development.