How to Save the Doha Round

Susan Schwab, the US Trade Representative, called for clear “pledges” from major developed and developing countries to negotiate within the range of current draft texts (on agriculture and industrial goods) to deliver the Doha deal. (“How flexibility can salvage the Doha round,” Financial Times, Oct. 4) Schwab observed that the deal is “within reach” but leading members should come out of “comfort zones” for a successful conclusion. She criticized that “some have signaled an unwillingness to negotiate within the text’s ranges or a desire to nullify market-opening commitments through loopholes.” In addition, she implied that the US would desire a “comprehensive” deal including services and other crucial areas, rather than being satisfied with the “Doha-lite.” Despite all this good intention, it seems that the deal would not go further without the U.S.’ genuine offer to substantially cut trade-distorting agricultural subsidies to the level close to last year’s spending (11 billion dollars). Developing countries have demanded a number of low teens. Also, it might be questionable at this point that the Doha negotiators attempt to bite off more than they could chew. The U.S. might want to legalize the zeroing practice in this negotiation. We only have two major, workable draft texts right now: one for agriculture and the other for industrial goods. But, it has truly been a long and winding road before we could achieve only this much. A reasonable deal might be better than no deal. After all, the show must go on.