International Economy: Trade Chief To Get Tough With Doha Laggards

25 January, 2004

News and Updates

Supachai Panitchpakdi, director-general of the World Trade Organisation, will take a more aggressive approach to chivvy governments into making progress in the stalled Doha world trade talks.

He said that unless WTO members' negotiators showed more flexibility, he would go over their heads and deal directly with their ministers.

He threatened to name, in front of other WTO members, countries that were dragging their feet and to take the initiative in proposing agreements.

'I am meeting different countries every day and will telephone their ministers if I cannot get answers from their delegations in Geneva,' he said at the weekend. 'I may have to go on the record more often and say: 'I have posed this question and I have received no answers'.'

His activist approach marks a break with his previously mild-mannered style, which has led to criticisms that he has failed to provide firm direction and leadership. One official said Mr Supachai was determined to show that 'from now on, there will be less Mr Nice Guy'.

The WTO head's tactics are expected to arouse controversy. His job has no formal powers and its effectiveness depends on maintaining good working relations with WTO ambassadors, who jealously guard their right to take all important decisions.

However, Mr Supachai said the Doha talks would be paralysed if negotiators did not quickly receive and act on clear instructions from national capitals. 'Not enough countries are giving real indications about their flexibility,' he said. 'If I do not get this flexibility, I cannot move.'

He hoped to build on the momentum injected into the Doha round since Robert Zoellick, US trade representative, urged governments two weeks ago to return to the negotiating table. Mr Zoellick's initiative was welcomed by trade ministers from almost 20 countries at a meeting in Davos at the weekend.

Mr Supachai was pleased by the ministers' statements of renewed commitment to the round, which has been stalled since the failure of the WTO's ministerial meeting in Cancn in September. They must give their negotiators clear instructions and be ready to become personally involved in the talks in March or April, he said.

Mr Supachai said governments could agree by summer a framework for completing the Doha negotiations provided there was sufficient political will. 'I am willing to do it, I think it is do-able. We don't need months and months,' he said.

Meanwhile, India has hinted privately that it is reconsidering its refusal to lower its high farm trade barriers, which the US insists must be cut if the round is to make progress.

Although they are tentative, the signals are regarded as significant because India faces elections in April, in which its 600m farmers will be an important political force.