Criticised for promoting economic liberalisation at the expense of development goals, the Doha Round took yet another blow during the G4 meeting in Potsdam, Germany when developed and developing countries could not reach an agreement on the issues of agricultural subsidies and tariffs on industrial goods. Find out why activists see this latest breakdown as a signal to bury the trade negotiations.

Nearly six years from its inception, the Doha Development Round still faces a bleak future as it took yet another blow when the discussions among the G4—European Union (EU), Unites States (US), Brazil, and India—broke down amidst persistent divisions on the issues of agricultural subsidies and tariffs on industrial goods. Activists claim that the Doha Development Round has lost its development dimension and became a negotiation on market access.

Representatives of the G4 met in Potsdam, Germany on June 19, 2007 with the aim of bridging existing gaps to boost chances for a broader multilateral agreement. But the intended five-day meeting ended on its third day, June 21, as differences among the representatives proved irreconcilable. 

According to Bangkok-based think tank Focus on the Global South, “the 'promise' of development was never sincere. Centred on market access, the Round simply cannot deliver development to the poorest countries.”

A day after the collapse of Potsdam G4 talks, World Trade Organisation (WTO) Director-General Pascal Lamy, who has not given up hope on meeting the 2007 deadline in wrapping up the Doha negotiations, had hastily convened an informal Trade Negotiations Committee (TNC). Lamy announced that negotiations would resume in Geneva immediately, saying that the Doha Round “is not a negotiation among just four players, it is a collective endeavour among the 150 Members.”

Activists from  Chile, Colombia, Costa Rica, Hong Kong, Mexico, Peru, Singapore, and Thailand argued that “the losses and missed gains associated with a failure or freezing of the [Doha Development Agenda] far outweigh the costs of a less-than-perfect agreement. Concrete shows of flexibility have been scarce even at this late stage of the negotiations.”

Focus on the Global South said that this recent collapse of the negotiations “indicates that it is time [to] bury the deceptively named Doha Development Agenda... [this] latest breakdown is [actually] good news for democracy and the developing world.”

Related article:
“Developing countries continue Doha Round protests” in we! March 2007, No. 1 

Sources:
“The Doha Round – If Truth Be Told” from Focus on the Global South, posted on June 22, 2007, <http://www.focusweb.org/the-doha-round-if-truth-be-told.html?Itemid=92>.
“Doha Round trade talks collapse amid recriminations” from the World Socialist Web Site, posted on June 26, 2007, <http://www.wsws.org/articles/2007/jun2007/doha-j26.shtml>.
“G4 Talks Collapse: What Next for the Doha Rounds?” from DATA (Debt, AIDS, Trade, Africa), posted on June 22, 2007, <http://www.data.org/issues/g4_talks_collapse_20070622.html>.
“G-4 talks in Potsdam break down, Doha Round's fate in the balance once again” from International Centre for Trade and Sustainable Development, posted on June 27, 2007, <http://www.ictsd.org/weekly/07-06-27/story1.htm>.
“Setback for Doha round, G4 talks fail” from The Times of India, posted on June 22, 2007, <http://timesofindia.indiatimes.com/Business/India_Business/Setback_for_Doha_round_G4_talks_fail/rssarticleshow/2140121.cms>.
“Third Collapse of Doha Round: Signal for Burial” from Focus on the Global South, posted on June 22, 2007, <http://www.focusweb.org/third-collapse-of-doha-round-signal-for-burial.html?Itemid=92>.