A Promise Not Kept

Few can deny that the wealthiest nations have an edge over poor countries when it comes to trade – and many economists argue that opening US and European markets to agricultural goods from small nations could substantially reduce poverty. The World Trade Organization (WTO) has repeatedly tried to address the inequities since 2001, with its Doha round of talks. Reducing farm tariffs and subsidies along with tariffs on manufactured goods requires agreement of all 149 members of the WTO. Powerful farm lobbies in the US and Europe fight to hang on to their advantages, and European negotiators point to studies that question whether poor farmers would benefit as much as large factory farmers. The WTO must act soon because of an impending deadline in the US that ends the president’s authority to approve trade deals – few analysts anticipate that a polarized US Congress could reach agreement on any trade deal. The failure to reach agreement by the WTO will only increase special two-way and regional trade deals, such as the North American Free Trade Agreement, as well as undermine the WTO’s ability to mediate trade disputes. Weakening the WTO could mean more bullying for the smallest and poorest countries. – YaleGlobal