Global News Journal

Can export bans be challenged at the WTO?

Russia’s ban on grain exports as a heat wave parches crops in the world’s third biggest wheat exporter has raised questions whether such export curbs break World Trade Organization rules. Russia is not a member of the WTO, and it remains to be seen how its new grain policy will affect its 17-year-old bid to join. But other grain exporters, such as Ukraine, which is also considering export curbs, are part of the global trade referee.

WTO rules are quite clear that members cannot interfere with imports and exports in a way that disrupts trade or discriminates against other members. But in practice most WTO rules aim to stop countries blocking imports – shutting out competitor’s goods to give their own domestic producers an unfair advantage.

Death-Defying Doha

Just as the World Trade Organisation is organizing an intensive push to complete the Doha round trade talks, the atmosphere among negotiators is as pessimistic as it ever has been. 

“Gloom” and “frustration” are just two of the more printable words circulating at the WTO’s headquarters by Lake Geneva.

Trade and Mutually Assured Destruction

Former Mexican President Ernesto Zedillo has an original view on protectionism.

Instead of promising not to raise barriers to trade (and quietly ignoring their pledges), leaders should hit back hard with all the legal means available at any country trying to use protectionism to shield itself from the crisis at the expense of others.

What’s next in the Russia-West crisis over Georgia?

The people of South Ossetia and Abkhazia were celebrating on Tuesday after Russian President Dmitry Medvedev signed a decree recognising the independence of the two regions. 

Western leaders responded with harsh words. U.S. President George W. Bush said it increased world tensions and Britain called for “the widest possible coalition against Russian aggression in Georgia,” where the two regions lie. 

But what can the West do to punish Russia or discourage it from any similar acts in the future? 

Military action has never been a realistic option since Russia sent tanks and troops to halt Georgia’s assault on South Ossetia. United Nations sanctions are also out of the question because Russia ihas the right of veto on the U.N. Security Council.

Major powers are also reluctant to do anything that might encourage Moscow to withdraw its help with U.N. sanctions against Iran over its nuclear programme and transit support for NATO forces in Afghanistan. 

Retaliation could involve Russian membership of the big international clubs: excluding Russia from the Group of Eight (G8) top industrial democracies or blocking its bid to join the World Trade Organization (WTO). 

But any action will be carried out with the nagging thought at the back of Western leaders’ minds – Moscow is no longer the economic basket-case of Soviet times and, riding a tide of petrodollars from soaring oil prices, western Europe depends on Russian oil and gas.

Mandelson fends off EU’s back seat drivers

Imagine driving a car with 27 people on the back seat trying to steer. That’s the image Peter Mandelson painted of his role negotiating at the World Trade Organisation on behalf of all European Union countries – some of which are not entirely supportive of the way he is taking things.

Although the EU gave the trade commissioner a negotiating mandate for the crunch talks under way in Geneva, French President Nicolas Sarkozy, hardly Mandelson’s greatest fan, said he would not sign up to the deal on the table.

Not only does Mandelson have to put up with public barbs from the French leader, he also has to report back daily to national EU delegates who have followed him to Geneva to ensure he keeps to the mandate they gave him. In his blog, Mandelson says it will increasingly be the case in the EU that member states will have to learn to keep quiet and let their representative do the talking.

“There is no question that the decision to negotiate collectively in the WTO gives European member states much greater weight in the WTO and the global trading system, but it does require 27 proud diplomatic services to take a back seat to the EU’s negotiators at exactly the moment when every instinct tells them to have a hand on the wheel,” he said.

“It’s a reminder that so much of the modern European experience of foreign affairs will involve developing the habits of coordination that give us a united voice and role in the world.”

The European Commission has been negotiating on behalf of EU member states for many years on big ticket issues like trade and climate change, but with Ireland’s rejection of the Lisbon Treaty to reform the bloc’s institutions and create an EU foreign policy supremo, do Europeans still relish the idea of Brussels representing them on the global stage?

Do you Doha? Cutting through the jargon at the WTO

Where is green beige, 54 the same as 60, and the potato a tropical vegetable? Welcome to the Through the Looking Glass world of the World Trade Organisation.

Although the issues being discussed in Geneva this week could ultimately affect everyone on the planet in terms of their effect on the economy, prices and employment, understanding the jargon of the ‘Doha round’ is reserved for a privileged few who can decipher its twisted language and countless acronyms.

For those like me who are new to covering the WTO, my advice is don’t look for the ‘Green Room’ where ministers and ambassadors are negotiating the trade liberalisation – it’s actually beige. (You’re not allowed in anyway, so steel yourself for hours pacing the hallway downstairs).

Next: know your NAMA from your TRIPS. Almost every aspect of trade is referred to by its acronym. Why say ‘industrial goods’ when you could be talking about NAMA (Non-Agricultural Market Access)? Make sure you know the difference between an LDC (least developed country) and an SVE (small and vulnerable economy), and remember that an MFN (most favoured nation) is nothing of the sort (under WTO rules, all trading partners have to be treated equally. Having MFN status means you are the same as all the others).

Confused? I can highly recommend the European Commission’s online trade glossary.

As for potatoes, they have been considered for inclusion in a list of ‘tropical products’, alongside papaya and coffee, which could be due for a boost from extra tariff cuts. (Potatoes, after all, originated in tropical areas of the Americas, so it’s only logical …)

And when it comes to the numbers, bring a calculator and a sense of humour. When asked whether the European Union was offering to cut its import tariffs by an average of 54 percent, as previously stated, or 60 percent as proposed by European Trade Commissioner Peter Mandelson, French Trade Secretary Anne-Marie Idrac kept a straight face and replied: “54 and 60, c’est la meme chose” (it’s the same thing).