afrol News, 14 August - Doha Round should not collapse over issue of special safeguard mechanism in agriculture for developing countries, World Trade Organisation Director General Pascal Lamy told Global Partnership for Development Conference in New Delhi yesterday.

Doha talks stalled when India and United States refused to budge on issue of special safeguard mechanism (SSM), a mechanism that allows developing countries to raise tariffs temporarily, in order to deal with import surges and price falls in farm products.

"It is ironic that talks would stumble over a safeguard measure. Safeguards have been a permanent feature of multilateral trading system," Mr Lamy said.

Safeguards were part of General Agreement on Tariffs and Trade (GATT) 1947, which was developed in Uruguay Round with creation of Safeguards Agreement.

He said although use of safeguards has been limited and has only had a minimal impact on overall trade flows for developing countries, it has always provided a political response to domestic fears about trade opening commitments.

"In fact trade opening in sensitive sectors has often been accompanied by safety nets to reassure constituencies about multilateral commitments to trade opening," he said.

Mr Lamy said global challenges could no longer be met by individual action, adding that collective action was needed for member states to have a sense of ownership in WTO programmes.

He emphasised that Dona round would not collapse, but said experience of global trading community over this issue of safeguards must be put at work, to find a compromise.

WTO Director said floods of imports including those stemming from unfair conditions, needed to be tackled and mechanisms to do so need to be workable.

He also stated that safeguards should not be used to disrupt normal trade for countries that Doha which would be a development round for least developed countries.

"After failure to achieve modalities at end of July, many were voices of those who pleaded for what had been achieved to remain on table, There is now far too much on table, particularly for developing countries, to give up on these negotiations," he said.

Mr Lamy said world is interdependent also indicating that concerted efforts should be applied for a common solution.

"Moving Doha Round to its successful conclusion remains a good test for our collective determination to a global partnership for development, he said.

He said differences in levels of economic development were recognised in WTO and were a part of its reality, adding that no one contested that developing countries and least-developed countries required greater flexibilities if trade and development objectives were to be met.

By staff writer

© afrol News

Related pages and feature

Current afrol News Top Stories