Trade Ministers at Davos Press for “Meaningful Results” in Bali

Trade Ministers Suggest Easter Stocktaking

Preparations for the upcoming WTO ministerial conference in Bali, Indonesia took centre stage during the annual - and now traditional - informal meeting of trade ministers that was held on Saturday on the sidelines of the Davos gathering.

Ministers from the organisation’s membership are scheduled to gather on the Pacific island from 3-6 December, in a meeting that is being closely watched by the trade community as a place where movement on the stalled Doha negotiations might occur.

The last ministerial - held in Geneva in late 2011 - was widely viewed as a “housekeeping” style exercise, with ministers declaring the Doha Round of trade talks at an impasse and agreeing on a few non-Doha items relating to least developed countries. However, this upcoming meet is being viewed as a chance to move some of the less controversial elements of the Doha talks forward, though WTO members have been cautious to date in placing too much pressure publicly on the Bali preparation process.

With that in mind, members have spent much of the last year trying to whittle down brackets in the draft text of the Doha negotiations on trade facilitation, while also reviewing proposals for possibly advancing a few components from the agriculture and Special and Differential Treatment (S&DT) parts of the Round. Sources have said that the trade facilitation draft text, while still under negotiation, is making progress, with many of the current brackets stemming from just a few areas of disagreement.

The Saturday, 26 January trade ministers’ meeting, hosted by Swiss Economy Minister Johann Schneider-Ammann, brought together over 20 top officials from the organisation’s membership, along with outgoing WTO Director-General Pascal Lamy and current General Council Chair Elin Østebø Johansen of Norway, with the purpose of discussing next steps in the Bali preparation process.

In his concluding remarks following the meeting, Schneider-Amman noted that ministers agreed that the core of any Bali outcome should indeed include trade facilitation, some agriculture components, and items of special interest to developing and least developed country (LDC) members.

Given the importance of time management in preparing for Bali, ministers also agreed on the need for “clarity on the scope of the possible deal as soon as possible,” the Swiss economy minister said. To that end, they suggested that WTO members evaluate at Easter where things stand and whether a “meaningful result” in Bali will be achievable, he added.

EU-US talks

Meanwhile, the prospect of Brussels and Washington launching trade talks this year also featured prominently during the Davos summit, with EU national leaders reiterating their push for the negotiations.

Highlighting the EU’s various bilateral trade efforts - including negotiations with Canada, which are said to be in their final stages, the recent conclusion of talks with Singapore, and the planned launch of discussions with Japan - Cameron particularly stressed the value that a deal with the US could add to the fragile EU economy.

German Chancellor Angela Merkel also reiterated her own support of an EU-US pact during last week’s gathering.

Notably, US Trade Representative Ron Kirk - who is set to leave his role as the US’ top trade official next month - told the New York Times in an interview that his country is indeed interested in such negotiations, and said that his departure should not have any effect on the launch of the talks. However, he explained, such a deal must be able to pass in the US Congress and address possible concerns from domestic farm groups.

The delay in an expected report from a joint EU-US working group - which is meant to include recommendations on whether to begin trade talks - has sparked questions over whether Washington is getting cold feet over the potential pact. However, EU Trade Commissioner Karel De Gucht told Reuters on Friday, the report is essentially ready, minus a few outstanding issues.