Sasi on the start of the new trade round: the WTO’s reputation and credibility are back

The fourth ministerial meeting of the WTO, held in the Qatar capital Doha has reached agreement on the start of a new, broad-based round of negotiations. Foreign trade minister Kimmo Saski, who led the Finnish delegation to the Doha meeting, is satisfied that the reputation and credibility of the WTO has returned following the failure of the Seattle WTO talks. Industrialised and developing countries have shown that they have a common cause in the gradual opening up of world trade and the development of trade regulations in the new conditions of globalization. This is a significant signal of renewed confidence to the world economy, and at present such a signal is extremely welcome politically.

As is always the case with the WTO the end result is the sum of much compromise. According to Kimmo Sasi, all parties have made concessions and bargained over their goals. A close look at the final document of the Doha meeting shows that it is precisely the viewpoints and demands of the developing nations that have received great attention. It is no exaggeration to call the new negotiating round underway the ‘development round’.

Finland has taken part in the Doha meeting as a member of the EU. The outcome of the meeting from the EU standpoint is also Finland’s. The EU has been a conspicuous driving force for the new negotiating round and Finland’s objectives have also been the most ambitious of all. Finland by no means got everything it wanted from Doha, but the results of the meeting have given it a satisfactory answer to its most important questions. Finland has encountered no setbacks. So, for the EU, and for Finland with it, there is good reason to regard the Doha meeting as a considerable milestone in the development of the international trade system.

Sasi stresses that a complicated and multidimensional process of negotiations now lied ahead that will last for the next three years. Doha has laid the basis and given the guidelines for these negotiations, but the results of these will be seen only at the end of 2004 and beginning of 2005 at the earliest. Before that much will happen and many of the current disputes will by then appear remote. What is important is that the international trade system should develop by way of negotiation instead of just drifting forwards depending on a dispute-solving system producing ingle results.

All the main questions directly and indirectly affecting international trade are now starting to be put on the agenda by common effort. Many issues will be put to negotiation, others will be clarified, and when they are some of them may lead to negotiations. On many issues the EU would have been prepared to negotiate a broad agenda, but the Doha meeting showed that there was not yet the preparedness to do so. It is nevertheless clear that the environment, the social consequences of globalization, international investments and strengthening unhindered competition are issues that considerably affect how international trade functions and the kind of results it achieves. The EU has quite rightly raised theses matters and Finland’s job in the future is to ensure that based on the Doha document the preconditions are gradually created for beneficial solutions from all angles, said Sasi.

The EU is the central player in the global economy, so Finland’s interests extent to every aspect of the agenda agreed in Doha. Like other countries, Finland has and will be safeguarding both its defensive interests and offensive interests. On the defensive side, the industrial and agricultural sectors are secured so that Finland is not put under excessive pressure. In light of the Doha meeting, the necessary renewal can be undertaken in a regulated manner. On the offensive side, concerning the so-called ‘new phase’ Finland had hoped for better progress. But Finland has to accept that in a forum like the WTO one has to learn to be content with progress already achieved.

According to Sasi, the developing nations finally broke through at Doha as the main influential group within the WTO. They already showed in Seattle that they were able to apply the brakes. In Doha they were able to steer the whole process in the direction they wanted. This is a new reality of the times to which we all have to adapt, said Sasi. Movement in this direction will undoubtedly gain strength when the full weight of China and Taiwan is soon included. When developing countries strengthen their position in world trade it will not detract from other nations. This is not a zero-sum game. When the cake gets bigger everyone benefits. Our economy and industry just has to be in such condition that we can benefit from growing markets, even though they may be located far away. The last few years have shown that we have prepared for this in many areas, said Sasi.

Non-governmental organizations have been following the activities of the WTO with aversion and even open opposition. In this respect the WTO was severely tested at Doha. It has been asked: is the WTO a forum where all countries can get their voice heard, and does it tend to take account of trade police regulations together with other valued and concerns of society, for example to do with the environment, eradicating poverty, health issues, the rules concerning working life, and human rights? In these respects, too, times are changing. The WTO cannot offer ready-made solutions to these societal questions, but it can take part in contributing to stopping the exacerbation of such problems. The Doha package shows that the WTO is an important instrument for every developing country, which – together with many other actors – can give new vigour to their growth. The TRIPS issues agreed in a separate declaration makes clear that the WTO’s rules are not an obstacle to countries’ efforts to eradicate public health threats. If it were up to us alone to decide, the WTO would now also be strongly behind ensuring sustainable development and control of the social consequences of globalization. We hope that in the coming years still more countries will join us in this approach in this respect, said Sasi.

The government of Qatar deserve special gratitude for the excellent conference arrangements and the great hospitality the delegations enjoyed. The Doha meeting had to be arranged under the shadow of many threats and uncertainties and we can only imagine how much effort the hosts have made to ensure the smooth running of the meeting, and the comfort and security of the participants. Qatar and Doha wanted to become more visible points on the world map because of the WTO ministerial meeting, and in that they have succeeded excellently. Special recognition is also due to the chair of the general council Stuart Harbinson, director Mike Moore and his secretariat, and to the indefatigable ministers. Without them we would not have achieved the final result.

World trade entered a new stage at Doha. A big step has been taken in the long haul towards a more stable and just world, said Kimmo Sasi.