KEY POINTS:
The WTO talks were virtually doomed before they started, according to a Wellington business leader who attended the fruitless talkfest in Geneva that ended overnight (NZ time) in frustration once again.
"The deal that was on the table at the WTO was far from perfect, but it was a distinct move in the right direction", claimed delegate Charles Finny of the Wellington Regional Chamber of Commerce.
"No one member would have been happy with all elements. But it was a package that would have seen everyone better off than they would be without it. An agreement would have sent exactly the right signals for the current fragile state of the global economy and the breakdown represents a real set back", Finny said.
"There will no doubt be plenty of finger pointing over the next few days. From my personal observation in Geneva over the first six days of this Round it was clear that calling this meeting with so many complicated issues unresolved was extremely ambitious.
"That it came very close to success was a surprise to many, and reflects good leadership from the WTO Director-General Lamy, and key players such as USTR Schwab, EU Commissioner Mandelson and Brazil's Foreign Minister Amorim.
"For New Zealand it offered the end of agricultural export subsidies, caps on domestic agricultural subsidies, and improved market access for agriculture, fisheries, forestry and manufactures. More work was needed on services but signs there were positive that some forward movement could be achieved also. It is therefore a tragedy that a small number of WTO members were trying to unpick elements of this package.
"We were surprised that the meeting fell down over the issue of the special safeguard mechanism for agriculture. This, in itself, was probably not sufficient reason for such an important negotiation to fail. One member was consistent in its opposition to this package and it is a great shame that another major player chose to join them in recent days.
Mr Finny said the public and private sectors in New Zealand will have to work together to make the best of the situation, until such time as a global agreement is reached.
The New Zealand International Business Forum also expressed its deep disappointment that the WTO meeting had failed to agree on a way forward for the Doha negotiations.
"Failure in Geneva is bad news for everyone" said NZIBF executive director Stephen Jacobi. "Bad for New Zealand because the opportunity to reduce tariffs and export subsidies once again eludes us.
"Bad for the developing world because they need improved access to developed country markets to promote growth and address poverty.
"And bad for the global economy that desperately needs the boost in confidence that conclusion of the Doha round would bring", said Jacobi.
- NZHERALD STAFF
