Doha talks are not dead: Lamy

The World Trade Organisation (WTO), was set up 20 years ago with the aim of creating a prosperous…

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http://www.euronews.com/2013/06/26/doha-talks-are-not-dead-lamy
The World Trade Organisation (WTO), was set up 20 years ago with the aim of creating a prosperous and unified global trading block. That has not happened.

Meanwhile unilateral trade agreements – such as the one about to be negotiated between the European Union and the United States – are threatening to make the WTO irrelevant.

Euronews journalist Fariba Mavaddat raised that issue with outgoing World Trade Organisation Director General Pascal Lamy. She also asked about the mark he has left on the organisation after eight years in charge, and where he sees it heading in the future.

*Fariba Mavadda, euronews*: “Mr. Lamy, to what extent do you see yourself, your vision and your policies responsible for the present status of WTO?”

*Pascal Lamy:* “Well, I don’t think my starting point would be the same as yours. Your starting point is that WTO is becoming irrelevant. The amount of world trade is roughly twice what it was 10 years ago. Has this worked for development? Yes. The share of developing countries in international trade, the contribution of trade opening, trade expansion to their own development has been astounding.”

*euronews:* “So why has the Doha round (of trade talks) died a painful death?”

*Lamy:* “I would not agree that the Doha round is dead. In a way, it is deadlocked but not dead. And by the way..

*euronews:* “Then why is it deadlocked?”

*Lamy:* “It is deadlocked because the world has changed very rapidly.”

*euronews:* “Have you changed with the world?”

*Lamy:* “Of course we have contributed to these changes. The main driver of change is technology and development. Trade has its own contribution to that, not least because it is creating efficiencies which then end up into the pockets of people who will become less poor, who can spend more and grow their economy.”

*euronews:* “In 2009, you said that you started a fierce fight against protectionism. Now, more and more we see that regional trade agreements are thriving. The latest and most controversial is the trade negotiations that are going to take place between the European Union and the US – a transatlantic trade agreement. Now, isn’t it by nature, by itself, a protectionist step?”

*Lamy:* “If you look at the sum of these virtual trade agreements, these encompass roughly 80 percent of world trade. And the question is whether this will happen in a convergent way or not. If it does not happen, then it will not work.”

*euronews:* “Shall we talk about transatlantic negotiations?”

*Lamy:* “Transatlantic negotiations are just beginning, but again the beginning of a negotiation is not the end of a negotiation. I know of plenty of trade agreements, the negotiations of which have started and so far have never ended.”

*euronews:* “Transatlantic agreement negotiations started rather badly, with France trying to practice protectionism with regard to its cinema and film industry. Do you think that Mr Barroso, the president of the European Commission, was right in calling France ‘reactionary’?”

*Lamy:* “Frankly speaking, I think it is a big political mistake. It is a serious misunderstanding because it amalgamates two very different issues. One is cultural diversity. The European Union Treaty recognises cultural diversity as a possible obstacle to market opening because the view is that cultural products are just not like socks, shirts or tyres. The other thing is the vision by some that protectionism is a good thing. And I would not amalgamate these two camps. I totally agree with Mr. Barroso that de-globalisation — this notion that protectionism is the way ahead – is a reactionary attitude. Seen from the WTO, countries keep the capacity or not to open their cultural services if they so want. There is no obligation.”

*euronews:* “It looks as if non-tariff issues are potential problems in the negotiations.”

*Lamy:* “I would follow you on this one. It’s not so much that they are a problem. It’s that in today’s world, and in tomorrow’s world of trade expansion, regulatory discrepancies have become, or may become, obstacles to trade, which is why convergence is the main question.”

*euronews:* “This is a big obstacle because in the economic climate that we are in, you can’t help but protect your society.”

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