Moore's spin on fiasco in Seattle

By BRIAN FALLOW

DARWIN - World Trade Organisation director-general Mike Moore rates the chances of a new round of global talks being launched this year as modest.

But under WTO rules, ministers are obliged to meet again some time next year. "And they would be pretty disappointed to meet for no purpose," he said.

"We failed in Seattle because of fundamental disagreements, because of substance. We didn't fail because of process or protest. We failed because countries could not get close enough on labour, on investment, on competition on implementation, agriculture. We just couldn't get there. It has happened before," Mr Moore said.

He was in Darwin to brief Apec trade ministers on progress since the Seattle fiasco.

One area in which there has been progress is on implementation of the Uruguay Round.

One of the issues which divided developed from developing countries were calls from the latter for more flexibility in implementing commitments to liberalise trade which they had already undertaken in the Uruguay Round.

"What we have is a vehicle only; we have yet to test it on the road. Countries will be able to tell the council of representatives of all WTO members of the difficulties they have.

"Sometimes it's extensions they want, sometimes it is technical assistance.

"But this is not an instrument to unravel the Uruguay decisions. It is about how we can assist countries to comply, and allows the space for flexibility to be given if there is consensus to do so," he said.

"There has been a perception by some that countries just want to renegotiate the Uruguay Round. Well, I just don't believe that is true."

Mr Moore said he was not worried by the growing interest in bilateral and regional free trade agreements.

"There are several hundred bilateral and regional FTAs. The good thing is that every country entering into them says that a multilateral solution is the best answer to these difficulties. And it is. The problem with regional and bilateral deals is that the smaller guy is the most vulnerable and can be left out.

"Everyone wants to do a deal with the big guy, everyone wants to have a go at the American or European or Japanese markets. Which is why I am a multilateralist, because you have to be on the side of the battlers."

Apec's commitment to multilateralism and more open trade was very helpful during the Asian crisis, Mr Moore said.

"The crisis hit, the multilateral system stood firm. The markets of the north remained open. People in this region can pat themselves on the back over what didn't go wrong. It is a credit to the political leadership in the region and it is a credit to the movement Apec has helped create over the years."