19.04.2021 Views

Life after Doha: Some reflections in the run up to the 9th WTO Ministerial Conference on Bali

This is a book chapter that I wrote for an edited volume commissioned by the World Trade Institute in Berne, University Pelita Harapan and the Economic Research Institute for ASEAN and East Asia (ERIA), both in Jakarta. My chapter discusses how the multilateral trading system came to become intractibly bogged down in the Doha Round and argues that the WTO is still the best organization the world has for tacking a number of increasingly pressing issues. The book in its entirety can be viewed and downloaded at: https://www.eria.org/publications/the-road-to-bali-eria-perspectives-on-the-wto-ministerial-and-asian-integration/

This is a book chapter that I wrote for an edited volume commissioned by the World Trade Institute in Berne, University Pelita Harapan and the Economic Research Institute for ASEAN and East Asia (ERIA), both in Jakarta.

My chapter discusses how the multilateral trading system came to become intractibly bogged down in the Doha Round and argues that the WTO is still the best organization the world has for tacking a number of increasingly pressing issues.

The book in its entirety can be viewed and downloaded at: https://www.eria.org/publications/the-road-to-bali-eria-perspectives-on-the-wto-ministerial-and-asian-integration/

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<str<strong>on</strong>g>Life</str<strong>on</strong>g> <str<strong>on</strong>g>after</str<strong>on</strong>g> <str<strong>on</strong>g>Doha</str<strong>on</strong>g> | <br />

countries -­‐ <str<strong>on</strong>g>in</str<strong>on</strong>g>clud<str<strong>on</strong>g>in</str<strong>on</strong>g>g large develop<str<strong>on</strong>g>in</str<strong>on</strong>g>g countries -­‐ are just much better resourced and thus <br />

better able <str<strong>on</strong>g>to</str<strong>on</strong>g> c<strong>on</strong>sistently field str<strong>on</strong>g teams. 74 Do we blame FIFA for this "<str<strong>on</strong>g>in</str<strong>on</strong>g>justice"? Of course <br />

not. Despite <str<strong>on</strong>g>the</str<strong>on</strong>g>ir resource c<strong>on</strong>stra<str<strong>on</strong>g>in</str<strong>on</strong>g>ts, and <str<strong>on</strong>g>the</str<strong>on</strong>g> myriad of more press<str<strong>on</strong>g>in</str<strong>on</strong>g>g policy priorities that <br />

develop<str<strong>on</strong>g>in</str<strong>on</strong>g>g countries and LDCs face, <str<strong>on</strong>g>the</str<strong>on</strong>g>re are arguably many ways for <str<strong>on</strong>g>the</str<strong>on</strong>g>m <str<strong>on</strong>g>to</str<strong>on</strong>g> be more <br />

effective at <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>WTO</str<strong>on</strong>g> than <str<strong>on</strong>g>the</str<strong>on</strong>g>y have been before and dur<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>Doha</str<strong>on</strong>g> Round. The haphazard <br />

way <str<strong>on</strong>g>in</str<strong>on</strong>g> which <str<strong>on</strong>g>the</str<strong>on</strong>g> Cot<str<strong>on</strong>g>to</str<strong>on</strong>g>n 4 approached this issue is a glar<str<strong>on</strong>g>in</str<strong>on</strong>g>g example: If <str<strong>on</strong>g>the</str<strong>on</strong>g>y had pursued a dual <br />

track of litigati<strong>on</strong> AND negotiati<strong>on</strong>, <str<strong>on</strong>g>the</str<strong>on</strong>g>y would arguably at least be hundreds of milli<strong>on</strong>s of <br />

dollars richer by now, ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than just disg<str<strong>on</strong>g>run</str<strong>on</strong>g>tled. 75<br />

Hav<str<strong>on</strong>g>in</str<strong>on</strong>g>g said this, it is important not <str<strong>on</strong>g>to</str<strong>on</strong>g> c<strong>on</strong>clude that <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>WTO</str<strong>on</strong>g> is an organizati<strong>on</strong> that cannot <br />

achieve development outcomes, s<str<strong>on</strong>g>in</str<strong>on</strong>g>ce it can and often does. But it should be borne <str<strong>on</strong>g>in</str<strong>on</strong>g> m<str<strong>on</strong>g>in</str<strong>on</strong>g>d <br />

that development is <strong>on</strong>ly likely <str<strong>on</strong>g>to</str<strong>on</strong>g> become <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>WTO</str<strong>on</strong>g>'s primary focus <strong>on</strong>ce develop<str<strong>on</strong>g>in</str<strong>on</strong>g>g countries <br />

start writ<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>the</str<strong>on</strong>g> work programs for future negotiat<str<strong>on</strong>g>in</str<strong>on</strong>g>g rounds, ra<str<strong>on</strong>g>the</str<strong>on</strong>g>r than lett<str<strong>on</strong>g>in</str<strong>on</strong>g>g developed <br />

countries do this for <str<strong>on</strong>g>the</str<strong>on</strong>g>m (which is what happened at <str<strong>on</strong>g>Doha</str<strong>on</strong>g>). Whe<str<strong>on</strong>g>the</str<strong>on</strong>g>r developed countries will <br />

let develop<str<strong>on</strong>g>in</str<strong>on</strong>g>g countries do this is ano<str<strong>on</strong>g>the</str<strong>on</strong>g>r matter entirely, and will of course depend <strong>on</strong> what <br />

develop<str<strong>on</strong>g>in</str<strong>on</strong>g>g countries are prepared <str<strong>on</strong>g>to</str<strong>on</strong>g> give developed countries <str<strong>on</strong>g>in</str<strong>on</strong>g> return. After all, <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>WTO</str<strong>on</strong>g> is <br />

noth<str<strong>on</strong>g>in</str<strong>on</strong>g>g if not a tit-­‐for-­‐tat organizati<strong>on</strong>, a negotiat<str<strong>on</strong>g>in</str<strong>on</strong>g>g forum, a place where countries exchange <br />

c<strong>on</strong>cessi<strong>on</strong>s. <br />

3.3 Th<str<strong>on</strong>g>in</str<strong>on</strong>g>gs <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>WTO</str<strong>on</strong>g> Does Well <br />

It should be relatively clear <str<strong>on</strong>g>to</str<strong>on</strong>g> most observers that as <str<strong>on</strong>g>the</str<strong>on</strong>g> former Direc<str<strong>on</strong>g>to</str<strong>on</strong>g>r General Mike Moore <br />

liked <str<strong>on</strong>g>to</str<strong>on</strong>g> repeat, <str<strong>on</strong>g>the</str<strong>on</strong>g> dispute settlement system is undoubtedly <str<strong>on</strong>g>the</str<strong>on</strong>g> jewel <str<strong>on</strong>g>in</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> Organizati<strong>on</strong>'s <br />

crown. Compared <str<strong>on</strong>g>to</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> gridlock that <str<strong>on</strong>g>the</str<strong>on</strong>g> GATT system of dispute settlement succumbed <str<strong>on</strong>g>to</str<strong>on</strong>g> <br />

when <str<strong>on</strong>g>the</str<strong>on</strong>g> US tried (unsuccessfully) <str<strong>on</strong>g>to</str<strong>on</strong>g> use it <str<strong>on</strong>g>in</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> 1980s <str<strong>on</strong>g>to</str<strong>on</strong>g> pry open European agricultural <br />

markets that had been closed by <str<strong>on</strong>g>the</str<strong>on</strong>g> Comm<strong>on</strong> Agricultural Policy, <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>WTO</str<strong>on</strong>g>'s dispute settlement <br />

system is a remarkable piece of <str<strong>on</strong>g>in</str<strong>on</strong>g>ternati<strong>on</strong>al treaty mak<str<strong>on</strong>g>in</str<strong>on</strong>g>g and has served its purpose <br />

surpris<str<strong>on</strong>g>in</str<strong>on</strong>g>gly well. Only a limited number of disg<str<strong>on</strong>g>run</str<strong>on</strong>g>tled elements would probably argue that <str<strong>on</strong>g>the</str<strong>on</strong>g> <br />

dispute settlement system needs a radical shake<str<strong>on</strong>g>up</str<strong>on</strong>g> bey<strong>on</strong>d a bit of t<str<strong>on</strong>g>in</str<strong>on</strong>g>ker<str<strong>on</strong>g>in</str<strong>on</strong>g>g at <str<strong>on</strong>g>the</str<strong>on</strong>g> marg<str<strong>on</strong>g>in</str<strong>on</strong>g>s, as <br />

is currently go<str<strong>on</strong>g>in</str<strong>on</strong>g>g <strong>on</strong> <str<strong>on</strong>g>in</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> negotiati<strong>on</strong>s <strong>on</strong> DSU reform. Although <str<strong>on</strong>g>the</str<strong>on</strong>g>re have been a small <br />

number of cases that have shown what <str<strong>on</strong>g>the</str<strong>on</strong>g> limits of <str<strong>on</strong>g>the</str<strong>on</strong>g> dispute settlement system are <str<strong>on</strong>g>in</str<strong>on</strong>g> <br />

forc<str<strong>on</strong>g>in</str<strong>on</strong>g>g countries <str<strong>on</strong>g>to</str<strong>on</strong>g> make changes that are politically difficult for <str<strong>on</strong>g>the</str<strong>on</strong>g>m, overall, it is probably <br />

74 The FIFA World C<str<strong>on</strong>g>up</str<strong>on</strong>g> has <strong>on</strong>ly ever been w<strong>on</strong> by <str<strong>on</strong>g>the</str<strong>on</strong>g> follow<str<strong>on</strong>g>in</str<strong>on</strong>g>g eight nati<strong>on</strong>al teams: Brazil, Italy, Germany, Argent<str<strong>on</strong>g>in</str<strong>on</strong>g>a, Uruguay, <br />

France, Spa<str<strong>on</strong>g>in</str<strong>on</strong>g>, England; LDCs appear <str<strong>on</strong>g>to</str<strong>on</strong>g> qualify quite <str<strong>on</strong>g>in</str<strong>on</strong>g>frequently, but have started <str<strong>on</strong>g>to</str<strong>on</strong>g> do so more comm<strong>on</strong>ly over <str<strong>on</strong>g>the</str<strong>on</strong>g> last 2 <br />

decades; see: David Arscott , The World C<str<strong>on</strong>g>up</str<strong>on</strong>g>, A Very Peculiar His<str<strong>on</strong>g>to</str<strong>on</strong>g>ry, Salariya, 2012. <br />

75 Brazil doggedly litigated aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st <str<strong>on</strong>g>the</str<strong>on</strong>g> US cot<str<strong>on</strong>g>to</str<strong>on</strong>g>n subsidies and refused <str<strong>on</strong>g>to</str<strong>on</strong>g> simply let <str<strong>on</strong>g>the</str<strong>on</strong>g> US off <str<strong>on</strong>g>the</str<strong>on</strong>g> hook, so that <str<strong>on</strong>g>in</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> end, <str<strong>on</strong>g>the</str<strong>on</strong>g> <br />

US ended <str<strong>on</strong>g>up</str<strong>on</strong>g> agree<str<strong>on</strong>g>in</str<strong>on</strong>g>g <str<strong>on</strong>g>to</str<strong>on</strong>g> pay USD 147.3 milli<strong>on</strong> <str<strong>on</strong>g>to</str<strong>on</strong>g> Brazilian cot<str<strong>on</strong>g>to</str<strong>on</strong>g>n farmers, a most unusual remedy for <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>WTO</str<strong>on</strong>g>; see: Randy <br />

Schnepf, Brazil's <str<strong>on</strong>g>WTO</str<strong>on</strong>g> Case Aga<str<strong>on</strong>g>in</str<strong>on</strong>g>st <str<strong>on</strong>g>the</str<strong>on</strong>g> U. S. Cot<str<strong>on</strong>g>to</str<strong>on</strong>g>n Program, C<strong>on</strong>gressi<strong>on</strong>al Research Service, 2010, at: <br />

www.fas.org/sgp/crs/row/RL32571.pdf (visited <strong>on</strong> 2 August 2013). <br />

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