COSATU Statement on the way forward in the Doha Round 07 - 01 - 06

COSATU Statement on the way forward in the Doha Round
July 1, 2006

In light of the breakdown in the mini-Ministerial talks at the WTO, it is critical that a constructive way forward be found.

The main cause of the breakdown in talks was the refusal of the countries of the North to accept the implications of their commitment to a developmental round. Any agreement must demonstrably meet developmental needs and avoid imposing further burdens on the poor countries.

We reject the idea that developing countries must accept deep cuts in tariffs in exchange for an end to unfair trade practices in the North. Any solution must protect the ability of poor countries to implement policies to develop their economies and meet the needs of their people. No sustainable solution can involve deepening poverty and unemployment in countries that already suffer from joblessness and hunger. Ultimately, too, any agreement that undermines development in the South will also undermine conditions for working people in the North.

Given the deep divisions between the parties, a successful way forward has to avoid premature tabling of lopsided proposals. Rather, it should ensure inclusive consultation, continuing the kind of bottom-up process initiated in the past few weeks.

Such a process will inevitably be slow, but can do far more to narrow differences than premature efforts to "split the difference," ignoring the serious threat that current proposals of the EU and US pose to equitable and sustainable development in the economies of the South.

It is therefore critical that the parties

• Avoid unrealistically tight deadlines. Clearly, it was a mistake to insist on trying to finalise negotiations this week, when the parties were still far apart from each other.
• Start with broad consultation to identify the needs, concerns and ideas of all the parties.

7 Reject apparent compromises that would undermine the developmental impact of the round. No compromise proposals should be tabled by the Director General until the parties have considerably narrowed their differences through broad, open consultation and discussion.