Editorial
WTO cuts a deal at long last
Congrats on the achievement!
A global trade deal struck by the 159-member country World Trade Organisation (WTO) since its inception 18 years ago is a historic milestone. It has transformed, and more to the point, salvaged the unwieldy image of the world trade body by putting a consensual document on the table.
The 'Bali package' as it is known has three elements: A sub-package for the LDCs, subsidy and food security, and trade facilitation. The package for the LDC will benefit them in two ways -- provide duty-and quota-free access to products in richer countries from world's poorest nations, and simplification of preferential rules of origin for them. The latter will enable 49 countries to identify products as their own and qualify for preferential treatment in importing countries.
It will let developing countries subsidise their crops to strengthen food security without being worried about legal challenges. But the subsidy will not exceed the 10 percent of the total cost and the waiver will last for four years, if necessary, it could be extended.
The third important keystone is trade facilitation, i.e. measures to cut trade-related red tape and streamline customs and port procedures to ease the movement of goods through national frontiers.
Since, however, the accord is not legally binding it runs a risk of turning into rhetoric unless the architects make a common cause of championing and serving inter-dependence in trade and development across the globe.
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