Trade talks collapse

Talks designed to change the face of farming around the world collapsed tonight amid differences between rich and poor nations – the second failure for the World Trade Organisation in four years.

“It’s over,” said George Odour Ong’wen, a Kenyan delegate. “The differences were very wide, and it was impossible to close the gap.”

Developing nations, which had banded together to play a key role in negotiations, wanted to end rich countries’ agricultural subsidies. European nations and Japan were intent on pushing four new issues that many poor countries saw as a distraction.

In the end, it was the diverging agendas of 146 member countries that split delegates beyond the point of repair.

“The blame for the collapse must go to the Western countries, because they insisted on putting their issues first,” said Yasphal Tondon, a delegate from Uganda.

Before the talks collapsed, delegates spent today debating not the key changes to farming policy that they have spent much of the conference negotiating, but instead four proposals about foreign investment and competition.

Delegates said the Europeans agreed to back off on three of the proposals, but insisted they be granted one. That was unacceptable to many developing nations.

The collapse was similar to the downfall of talks in 1999, when street riots and divisions between WTO members sunk attempts to launch a new round of trade negotiations.

The failure in Cancun was a major blow to the WTO, and called into question the organisation’s ability to reach a global trade treaty by the end of next year – a goal WTO members set for themselves at a meeting two years ago in Doha, Qatar.

Argentina’s trade secretary, Martin Redrado, said delegates would have to “pick up the pieces and look for a new consensus.” But he said that would likely not happen until 2005, at the earliest.

“For this, you need political will,” he said. “My reading is, there is no political will.”

Many poor nations were frustrated that officials delayed discussion of agricultural reform. Delegates had hoped to slash subsidies rich nations pay their farmers, making it easier for their farmers to compete in a global economy. They also wanted to lower the tariffs many countries charge for importing farm goods.

Doing so could have dramatically altered farming around the world. Some farmers could have found new markets for their crops. Others would have struggled to compete without the subsidies that keep them in business. Consumers could have got cheaper fruits, vegetables and meat from distant shores.

“No one can feel satisfied with a failure,” Redrado said. “All of us would have better with new rules.”

Others celebrated the collapse.

“Unless they listen to countries, unless they listen to the problems we have in meeting some of the demands of the developing countries, this is what will happen,” said Malaysia’s minister for international trade and investment, Rafidah Aziz.

Advocacy groups, who spent much of the meeting working with developing nations to make sure their voices were heard, celebrated the collapse by singing and dancing in the hallways of the conference centre.