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Covenanting for Justice in the Economy and the Earth
World Alliance of Reformed Churches;
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DOHA Development Round of the WTO
Press Release | IGTN Statement | US Role

1) Churches React to Collapse of Trade Talks
"The world must be told that the pursuit of profits for a few at the expense of the marginalized and the poor has paralysed the trade talks," declared Rev. Dr. Mvume Dandala, General Secretary for the All Africa Conference of Churches, "People must come first and trade must be harnessed to serve justice. Trade must have a human face!" [Read the Press Release]

2) WTO Collapse
The collapse of the Doha negotiations creates an important opportunity for those representing the interests of civil society to challenge and influence the current international trading system. [Read the International Gender and Trade Network's full statement on the collapse]

3) US Role in Collapse
"...it was the intransigence of the US which scuttled the talks after newly-assigned US Trade Representative Susan Schwab walked out of the G6 meeting on Monday when it could not accept to cut down its domestic farm support to US$12 billion as proposed by the G20..." [Read the perspective from Asia]

Press Release: For Immediate Release - 25 July 2006
Hope betrayed - churches react to collapse of trade talks

"The world must be told that the pursuit of profits for a few at the expense of the marginalized and the poor has paralysed the trade talks," declared Rev. Dr Mvume Dandala, General Secretary of the All Africa Conference of Churches, "People must come first and trade must be harnessed to serve justice. Trade must have a human face!"

Dandala was speaking as negotiations were suspended in the Doha Development Agenda at the World Trade Organization. Faith-based groups across the globe mourn the final loss of this opportunity to make trade work for people in poverty.

Poor countries desperately needed a fair trade deal so that they could grow out of poverty and not rely on hand outs," said Dr Claire Melamed, senior trade analyst at Christian Aid in the UK. "This tawdry squabbling at the rich world's high table has now put paid to that."

She added, "It is no good flicking a few crumbs of comfort via aid and debt relief front with one hand, while the other is slowly squeezing economic life-blood out of poor countries."

At the launch of the round of negotiations in 2001, WTO members and officials declared that the needs of developing countries would be at the heart of the round. There was, briefly, a hope among many trade justice campaigners that trade could genuinely be put to the service of lifting millions out of poverty. But they noted that it soon became business as usual in haggling between the rich and powerful and have long pointed out that the development dimension has been missing from the negotiations.

"We are not happy about this failure in the Doha Round, but we strongly feel that no deal is better than a bad deal," notes Danuta Sacher, head of policy and campaigns at the German organisation Bread for the World. She explains that in order to protect food security and to fight hunger, a fair deal would mean a high level of protection of the special products of the least developed countries. "We know from our partners that export subsidies and the highly subsidised
food-production in the EU and the US are threatening the daily survival of many poor people."

Campaigners warn that the collapse of the talks, though, may herald harder tactics ahead. Malcolm Damon, director of the Economic Justice Network based in the churches of Southern Africa, says, "The great danger of this collapse at the multilateral level is that it drives vulnerable countries into bilateral negotiations where they can more easily be bullied into accepting a bad deal."

It's a warning echoed by Matt Griffith of CAFOD in the UK: "The WTO allows developing countries the opportunity to stand together for a deal that works for them. In smaller groups they will have less power to stand up to rich countries."

In the lead up to this collapse at the WTO, the talk from the WTO Director General, Pascal Lamy, and negotiators of major developed countries, had been that the Doha negotiations should deliver a goal of "real market access", in apparent disregard that the negotiations were supposed to deliver on development.

"Once again the WTO has shown that it is less concerned about the needs of developing countries than about facilitating market access for their own products," said Clarissa Balan at the World YWCA

The basis of the WTO negotiations has always been a straightforward equation between liberalisation - opening markets - and achieving economic growth. This assumption is questioned by many economists and, furthermore, campaigners highlight, rich countries' rhetoric is not being matched by their actions.

Peter Prove, who heads international affairs and human rights at The Lutheran World Federation, points out that "The sincerity of developed countries' commitment to the free trade agenda has been tested, as they were asked to do what they prevailed upon others to do. The collapse of the talks suggests that what's good for the goose is not so good for the gander."

As the focus shifts to bilateral negotiations, Balan affirms that "As churches and ecumenical communities we need to continue our efforts at promoting trade that is life-centred, where it is people and notprofits that matter."

For more information, contact Sara Speicher, sspeicher@e-alliance.ch, +44 1524 727 651.

International Gender and Trade Network Statement on the Collapse of the WTO DOHA Negotiations

The indefinite suspension of the WTO Doha negotiations exposed the magnitude of the interest gap between developed and developing countries.
Despite the deceptive call of G8 leaders to resume negotiations and conclude the round, the select group of chosen members called-in to negotiate – EU, U.S., Japan, Brazil, India and Australia (named the G6) – failed to come to a common ground and had no option but to bring all negotiations to a halt. This standstill found an obvious “who’s to blame” member, as the US was not prepared to make steeper cuts in their farm subsides. Although Developing countries negotiators, namely from Brazil and India, declared this as a major setback due to their own domestic and market interests, the fact is that the trade agreements which were at stake did not correspond to the interest of developing countries’ populations.

The current WTO deadlock reveals how the Doha Round, despite being declared on the premise of “food sovereignty” and “rural development”, never was what it proclaimed to be: a “development round”. The round only reaffirmed its blatant bias to serve private interests subordinating the needs of women and men in developing countries to corporate-driven profits. IGTN believes a real development round is one which takes into account the fact that there can be no development without employment, income for local populations, in general, and women in particular. Negotiators should not forget the preamble of the Marrakech agreement: stability, sustainable economic growth and employment. Losing perspective on these issues would mean losing perspective on development, thus undermining it.

The collapse of the Doha negotiations creates an important opportunity for those representing the interests of civil society to challenge and influence the current international trading system. NGOs and social movements should take advantage of this crucial window of opportunity to engage in this challenge, not accepting the “lesser evil” as an option. As it is also important to remember that the current instability of a multilateral trading system, like the WTO, raises concerns as it opens the possibility for the resuming of bilateral FTAs (Free Trade Agreements), which makes negotiations between countries with different development levels much harder and uneven.

It’s time to review past negotiations, analyse the flaws in the WTO system in its entirety and conceive a renovated, truly democratic system, which genuinely promotes fair, gender just and sustainable development. As mentioned before, this international trade policy must be constrained and bound by existing international agreements that promote human rights and women’s rights, ecological sustainability, human dignity and must aim to end poverty and promote well-being.

The US and only but the US…
Excerpted from Naty Bernardino, July 2006, International Gender Trade Network-Asia

Although not expressed on the floor during the WTO General Council meeting, many Members share the view that it was the intransigence of the US which scuttled the talks after newly-assigned US Trade Representative Susan Schwab walked out of the G6 meeting on Monday when it could not accept to cut down its domestic farm support to US$12 billion as proposed by the G20 (led by India and Brazil) or at least to US$15 billion as proposed by the EU. She returned home being hailed as a heroine by almost everyone in Washington who believed that “no deal is better than a bad deal”.

News reports have earlier indicated that the US trade negotiating team is handcuffed by clear domestic priorities and considerations before it could move politically into the negotiations. One is the strong domestic lobby by farm groups against cutting US government farm subsidies whose interests many members of the US Congress including the Bush administration would not risk compromising in view of the upcoming elections in 2008.

Second is the expiration of the US trade promotion authority in June 2007 which provides authority for the Bush administration to negotiate trade deals without the Congress amending or emasculating trade agreements. This is the officially unstated reason for the previous rush by which the WTO wanted to have the Doha Round concluded by the end of 2006. Although such law could be extended by Congress, many analysts think that the Bush administration would not risk its political lot on something that it’s not sure to get from Congress at a time that many of its members would not also risk offending farm lobbies a year before the scheduled US elections in 2008.

Third, the US Farm Bill is set to be re-authorized next year. For the same reasons as above, Bush and majority of the US Congressmen would not want a Doha Deal coming in the way of their “political policy space” to either do little cuts or retain, if not increase their current levels of domestic farm support.

By all indications, the resumption of the Doha talks appears to be heavily dependent on the political decision of the US. It could well be what Lamy referred to as the “ripe political conditions”. Some country negotiators said that if the talks do not continue in five to six months, the impasse may take longer, like from three to four years. Others think that it may continue only after the US elections in 2008.

Download the IGTN July 2006 Bulletin

GENDER AND TRADE RESOURCES INTERLOCKING FEATURES OF TRADE, GENDER AND POVERTY
Liepollo Lebohang Pheko, June 2006 – GENTA

GENTA's presentation on Trade, Gender Poverty at Oxfam's Intraregional workshop in Addis Ababa from the 21st to 24th of June 2006. The paper sets the context of trade, it's transition to “free trade” scenario and what that means in terms of trade agreements. Lebohang then assesses poverty in the context of gender and trade relating it to trade theory, hence developing a gender analysis of trade policies and economic growth its consequences on women and social
development.
Available at the International Gender and Trade Network Web site

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