Froman, Punke: WTO in crisis over failure on trade facilitation, food stockpiling
July 25, 2014 | 05:24 PM
Trade Representative Michael Froman and Michael Punke, the U.S. ambassador to the World Trade Organization, today expressed disappointment that India has blocked a finalization of a trade facilitation agreement over the issue of food stockpiling, and said the situation has put the WTO and the future of the Doha round of negotiations in danger.
Michael Froman
“We are deeply disappointed that backsliding on trade facilitation has brought the WTO to the brink of crisis,” Froman said in a news release.
“After long and difficult negotiations, ministers in Bali unanimously agreed last December on a package of agreements, including the Trade Facilitation Agreement and an agreement on food stockpiling, each with its own work program and timetable,” Froman said. “A decision to walk away from that package would have serious ramifications on the future of the Doha round.”
The Indian government has said it will not agree to the protocol unless it gets assurances it can increase food subsidies without penalty. Bolivia, Cuba and Venezuela supported India and it appears unlikely the issue can be resolved before a July 31 deadline although negotiations are expected to continue into the weekend, Washington Trade Daily reported.
“Dozens of countries, including the G-20, have sought to provide assurances that we are committed to fulfill all elements of the Bali agreement,” Froman said.
“We have backed up those assurances by contributing actively over the last several months to furthering the food stockpiling discussion and by mobilizing resources to help developing countries meet their trade facilitation commitments.
“It is also important to note that, once the Trade Facilitation Agreement protocol is adopted, each WTO member will have a full year to consider its own domestic decisions regarding ratification of the agreement.
“The current state of play on Trade Facilitation threatens to deal a serious blow to the credibility of the multilateral trading system and to set back the development needs of many countries around the world. We will be consulting with other WTO members on appropriate next steps.”
Michael Punke
“This is a discussion that boils down to a simple question,” Punke said in a lengthy speech to the WTO General Council today. “And though it is simple, the answer each one of us gives will have profound consequences. “
“The question is this: Will Members of the WTO keep their commitments? For all the complexity of issues like trade facilitation and food security, the core issue today us is quite direct.
“It is no use to sugar-coat the consequences of such action or to pretend that there would be business as usual in the aftermath,” Punke said.
“Many members, including developing country members, have noted that, if the Bali package fails, there can be no post-Bali. It’s with regret that we agree with them.
“But it’s not too late to avoid that outcome. The deadline to which we all agreed is July 31. We still have a few days. But while the deadline is fixed and firm, the real issue isn’t time.
“The issue is, will all WTO members keep their commitments? Will all WTO members live by their word? In the next few days we’ll find out. The whole world is watching.”
▪ Office of the U.S. Trade Representative — Statement by Amabassador Michael Punke at the World Trade Organization General Council
“We are deeply disappointed that backsliding on trade facilitation has brought the WTO to the brink of crisis,” Froman said in a news release.
“After long and difficult negotiations, ministers in Bali unanimously agreed last December on a package of agreements, including the Trade Facilitation Agreement and an agreement on food stockpiling, each with its own work program and timetable,” Froman said. “A decision to walk away from that package would have serious ramifications on the future of the Doha round.”
The Indian government has said it will not agree to the protocol unless it gets assurances it can increase food subsidies without penalty. Bolivia, Cuba and Venezuela supported India and it appears unlikely the issue can be resolved before a July 31 deadline although negotiations are expected to continue into the weekend, Washington Trade Daily reported.
“Dozens of countries, including the G-20, have sought to provide assurances that we are committed to fulfill all elements of the Bali agreement,” Froman said.
“We have backed up those assurances by contributing actively over the last several months to furthering the food stockpiling discussion and by mobilizing resources to help developing countries meet their trade facilitation commitments.
“It is also important to note that, once the Trade Facilitation Agreement protocol is adopted, each WTO member will have a full year to consider its own domestic decisions regarding ratification of the agreement.
“The current state of play on Trade Facilitation threatens to deal a serious blow to the credibility of the multilateral trading system and to set back the development needs of many countries around the world. We will be consulting with other WTO members on appropriate next steps.”
“This is a discussion that boils down to a simple question,” Punke said in a lengthy speech to the WTO General Council today. “And though it is simple, the answer each one of us gives will have profound consequences. “
“The question is this: Will Members of the WTO keep their commitments? For all the complexity of issues like trade facilitation and food security, the core issue today us is quite direct.
“It is no use to sugar-coat the consequences of such action or to pretend that there would be business as usual in the aftermath,” Punke said.
“Many members, including developing country members, have noted that, if the Bali package fails, there can be no post-Bali. It’s with regret that we agree with them.
“But it’s not too late to avoid that outcome. The deadline to which we all agreed is July 31. We still have a few days. But while the deadline is fixed and firm, the real issue isn’t time.
“The issue is, will all WTO members keep their commitments? Will all WTO members live by their word? In the next few days we’ll find out. The whole world is watching.”
▪ Office of the U.S. Trade Representative — Statement by Amabassador Michael Punke at the World Trade Organization General Council
