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U.S.
Politics May Curb
WTO Talks
By: Warren Vieth
Los Angeles Times, November 15, 2001
Trade: Limits on
ability to do deals, plus concessions made to secure new round of
negotiations, could hinder any benefits.
DOHA, Qatar -- U.S. Trade Representative
Robert B. Zoellick scored a huge victory for free trade by engineering the
World Trade Organization's agreement Wednesday to launch a new round of
global trade talks.
Now comes another challenge: dealing with domestic politics. The
likelihood that Congress may curb Zoellick's ability to negotiate trade
deals could limit the ultimate benefits of the new round. And concessions
made to secure the agreement could spark opposition from U.S. drug and
steelmakers.
The WTO's 142 members, soon to be 144 with the admission of China and
Taiwan, reached consensus on launching a new round after six days of
difficult deliberations inside a heavily guarded Qatari convention center.
The Doha ministerial, so named because member governments send their trade
ministers instead of underlings, was the first held since the collapse of
similar discussions two years ago in Seattle.
WTO members approved a set of documents specifying the ground rules for
three years of negotiations that, if successful, could produce a sweeping
agreement to further reduce barriers to international trade.
Before they could come to terms on the guidelines, the big industrialized
countries that dominate the WTO had to make several major concessions:
They promised to move faster to reduce agricultural subsidies, a painful
decision for Europe in particular.
They agreed to curb the growing use of anti-dumping rules to block imports
of steel and other products, a touchy issue for the United States.
They endorsed the right of developing countries to override drug patents
to buy low-cost drugs to treat AIDS and other health scourges.
Even after most WTO members had made their peace with the finely parsed
compromises, brinkmanship by France and India almost killed the deal.
Ultimately, they were appeased, although India reserved the right to opt
out of some aspects of the new round.
"Our long days and nights are over," Zoellick told his fellow
trade ministers Wednesday. "By agreeing to launch new global trade
negotiations, we are helping to deliver growth, development and prosperity
throughout the world."
Zoellick is a believer in the bicycle theory of trade expansion: Either
you keep moving forward, or you fall over.
Zoellick pedaled all the way to Doha and back without losing his balance.
The pact he brought back could have big payoffs: for U.S. businesses, more
exports of goods and services; for consumers, bountiful, affordable
imports.
Millions and millions of bicycle riders, all moving forward. Until they
hit the speed bump on Capitol Hill.
None of the bargains struck by Zoellick in Doha requires immediate
congressional approval. But concessions he made on drug patents and
anti-dumping policy will alienate pharmaceutical companies, steelmakers
and their allies in Congress.
And in a twist of political fate, Zoellick's success in Qatar could doom
his top priority on Capitol Hill: legislation authorizing him to negotiate
trade deals that can't be rewritten by lawmakers.
Jeffrey Schott, a trade specialist at the Institute for International
Economics in Washington, said Congress' refusal to give Zoellick the trade
promotion authority wielded by most of his predecessors will limit his
ability to get the most out of the new round.
"When you start engaging in real negotiations, countries are not
going to put their best offers on the table unless they know that
Zoellick's got trade promotion authority in his pocket," Schott said.
"Trade is a very contentious issue in Congress. It divides both
parties," said Sophia Murphy with the Institute for Agriculture and
Trade Policy in Minneapolis. "If you really [antagonize] Congress,
you could make it harder to do things the administration wants to
do."
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